Prohibits automated teller machines or point of sale terminals in certain locations from accepting electronic benefit transfer cards for cash withdrawals.

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S5861-2011 Actions

• Jan 4, 2012: REFERRED TO SOCIAL SERVICES
• Jul 20, 2011: REFERRED TO RULES

S5861-2011 Memo

BILL NUMBER:S5861

TITLE OF BILL:
An act
to amend the social services law and the banking law, in relation to
prohibiting automated teller machines or point of sale terminals in
certain locations from accepting electronic benefit transfer cards for
cash withdrawals

SUMMARY OF PROVISIONS:
The Social Services law is amended by adding a
new section 14-4-h calling for the Office of Temporary and Disability
Assistance (ODTA) to insure that electronic benefit transfer cards
issued by and through the agency are not used to access
state-provided cash benefits form any automated teller machines or
point of sale terminals in gambling establishments; psychics; bail
bond establishments; bingo halls; cruise ships; tattoo parlors; or
any business providing services that have been deemed inconsistent
with the intent of the office of temporary and disability assistance.

The banking law is amended by adding a new section 9-v prohibiting the
use of electronic benefit transfer cards at automated teller machines
in certain locations. Electronic benefit transfer cards issued by
and through ODTA are not used to access state-provided cash benefits
Form any automated teller machines or point or sale terminals in
gambling establishments; psychics; bail bond establishments; bingo
halls; cruise ships; tattoo parlors; or any business providing
services that have been deemed inconsistent with the intent of the
office of temporary and disability assistance.

JUSTIFICATION:
Electronic benefit transfer cards issued by OTDA are
done so because that individual and/or family has demonstrated
hardship that qualifies them for assistance with living expenses. It
has been determined that these cards have the potential to be used to
make cash withdrawals at gambling establishments, psychics, bail bond
establishments, bingo halls, cruise ships, tattoo parlors, etc. Such
action is a misuse of state provided assistance and abuse of
assistance provided through tax-payer money through ODTA. This bill
seeks to mitigate abuse of ODTA electronic benefit Funds by
prohibiting access of electronic benefit cash funds to be withdrawn
at ATM locations within the aforementioned establishments throughout
the state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

S5861-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5861

                         2011-2012 Regular Sessions

                              I N  SENATE

                                July 20, 2011
                                 ___________

  Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
    printed to be committed to the Committee on Rules

  AN ACT to amend the social services law and the banking law, in relation
    to prohibiting automated teller machines or point of sale terminals in
    certain locations from accepting electronic benefit transfer cards for
    cash withdrawals

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1. The social services law is amended by adding a new section
  144-b to read as follows:

    S 144-B. PROHIBITION OF THE USE OF ELECTRONIC BENEFIT  TRANSFER  CARDS
  IN  CERTAIN LOCATIONS. THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE
  SHALL INSURE THAT  ELECTRONIC  BENEFIT  TRANSFER  CARDS  ISSUED  BY  AND
  THROUGH  THE  AGENCY TO FACILITATE THE DELIVERY OF ASSISTANCE MAY NOT BE
  USED TO ACCESS STATE-PROVIDED CASH BENEFITS FROM  ANY  AUTOMATED  TELLER
  MACHINES  OR  POINT  OF  SALE TERMINALS IN THE FOLLOWING LOCATIONS:  (A)
  GAMBLING ESTABLISHMENTS; (B) PSYCHICS; (C) BAIL BOND ESTABLISHMENTS; (D)
  BINGO HALLS; (E) CRUISE SHIPS; (F) TATTOO PARLORS; OR (G)  ANY  BUSINESS
  PROVIDING SERVICES THAT HAVE BEEN DEEMED INCONSISTENT WITH THE INTENT OF
  THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE.
    S 2. The banking law is amended by adding a new section 9-v to read as
  follows:

    S  9-V. PROHIBITION OF THE USE OF ELECTRONIC BENEFIT TRANSFER CARDS AT
  AUTOMATED TELLER  MACHINES  IN  CERTAIN  LOCATIONS.  ELECTRONIC  BENEFIT
  TRANSFER CARDS ISSUED BY THE STATE TO FACILITATE THE DELIVERY OF ASSIST-
  ANCE  MAY  NOT  BE  USED TO ACCESS STATE-PROVIDED CASH BENEFITS FROM ANY
  AUTOMATED TELLER MACHINES OR POINT OF SALE TERMINALS  IN  THE  FOLLOWING
  LOCATIONS:    (A)  GAMBLING  ESTABLISHMENTS; (B) PSYCHICS; (C) BAIL BOND
  ESTABLISHMENTS; (D) BINGO HALLS; (E) CRUISE SHIPS; (F)  TATTOO  PARLORS;
  OR  (G) ANY BUSINESS PROVIDING SERVICES THAT HAVE BEEN DEEMED INCONSIST-
  ENT WITH THE INTENT OF THE OFFICE OF TEMPORARY  AND  DISABILITY  ASSIST-
  ANCE.
    S 3. This act shall take effect immediately.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04103-03-1