2013 -- S 0821

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LC02151

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

     Introduced By: Senators Bates, Hodgson, Algiere, Ruggerio, and McCaffrey

     Date Introduced: April 04, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

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hereby amended by adding thereto the following section:

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     40-6-8.1. Prohibited uses of electronic benefit transfer cards. -- (a) Notwithstanding

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any provision of the general or public laws to the contrary, eligible recipients of direct cash

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assistance shall not use direct cash assistance funds for the purchase of alcoholic beverages,

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lottery tickets or tobacco products. An eligible recipient of direct cash assistance who makes a

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purchase in violation of this section shall reimburse the department for such purchase.

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     (b) Notwithstanding any provision of the general or public laws to the contrary, an

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individual or store owner shall not accept direct cash assistance funds held on electronic benefit

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transfer cards for the purchase of alcoholic beverages, lottery tickets, or tobacco products. An

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individual or store owner who knowingly accepts electronic benefit transfer cards in violation of

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this section shall be punished by a fine of not more than five hundred dollars ($500) for the first

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offense, a fine of not less than five hundred dollars ($500), nor more than one thousand dollars

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($1,000) for the second offense, and a fine of not less than one thousand dollars ($1,000) for the

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third or subsequent offense.

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     (c) The department is hereby empowered and shall maintain policies and practices as

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necessary to prevent cash assistance provided under this chapter from being used in any

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electronic benefit transfer transaction at:

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     (1) Liquor stores;

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     (2) Casinos as defined by chapter 41-9.1;

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     (3) Gambling facilities as defined by chapter 41-9;

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     (4) Retail establishments which provide adult-oriented entertainment in which performers

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disrobe or perform in an unclothed state for entertainment as defined in the social security act,

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section 42 U.S.C. 608(a);

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     (5) Adult bookstores or adult paraphernalia stores;

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     (6) Firearms dealers licensed under section 11-47-39;

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     (7) Tattoo parlors; manicuring shops, or esthetic shops as defined in section 5-10-1; or

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     (8) Rent-to-own stores, jewelry stores, or on cruise ships.

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     (d) Such establishments shall not accept electronic benefits transfer cards. A store owner

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who knowingly allows a prohibited electronic benefit transfer transaction in violation of this

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section shall be punished by a fine of not more than five hundred dollars ($500) for a first

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offense, by a fine of not less than five hundred dollars ($500) nor more than two thousand five

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hundred dollars ($2,500) for a second offense, and by a fine of not less than two thousand five

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hundred dollars ($2,500) for a third or subsequent offense.

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     (e) A store owner who knowingly violates this section and who also possesses a license

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to sell alcoholic beverages under chapter 3-7 shall be referred to the appropriate licensing

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authority for possible disciplinary action pursuant to title 3.

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     (f) A store owner who knowingly violates this section, and who also possesses a license

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to sell lottery tickets under chapter 42-61 shall be referred to the director of the state lottery for

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possible disciplinary action.

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     SECTION 2. This act shall take effect upon passage.

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LC02151

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

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     This act would prohibit the use of direct cash assistance funds held on electronic benefit

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transfer cards for the purchase of alcoholic beverages, lottery tickets, or tobacco products. The act

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would further provide for penalties for violations of the act.

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     This act would take effect upon passage.

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LC02151

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