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

                                          966

                              2013-2014 Regular Sessions

                                   I N  S E N A T E

                                      (PREFILED)

                                    January 9, 2013
                                      ___________

       Introduced  by  Sen.  LIBOUS -- read twice and ordered printed, and when
         printed to be committed to the Committee on Social Services

       AN ACT to amend the social services law, in relation to prohibiting  the
         sale  or  purchase of alcoholic beverages, tobacco products or lottery
         tickets with public assistance benefits  and  prohibiting  use  of  or
         access  to  such  benefits  in  a casino, liquor store or adult enter-
         tainment facility; and to amend the state finance law, in relation  to
         establishing the public assistance integrity fund

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

    1    Section 1.  Short title. This act shall be known and may be  cited  as
    2  the "public assistance integrity act".
    3    S  2.  The  social  services law is amended by adding two new sections
    4  147-a and 147-b to read as follows:
    5    S 147-A. PENALTIES FOR THE PURCHASE OR SALE  OF  ALCOHOLIC  BEVERAGES,
    6  TOBACCO  PRODUCTS OR LOTTERY TICKETS WITH PUBLIC ASSISTANCE BENEFITS. 1.
    7  FOR THE PURPOSES OF THIS SECTION,  "PUBLIC  ASSISTANCE  BENEFITS"  MEANS
    8  MONEY  OR  PROPERTY  PROVIDED DIRECTLY OR INDIRECTLY THROUGH PROGRAMS OF
    9  THE FEDERAL GOVERNMENT, THE STATE OR ANY POLITICAL SUBDIVISION  THEREOF,
   10  AND ADMINISTERED BY THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE OR
   11  SOCIAL SERVICES DISTRICTS.
   12    2.  NO  RECIPIENT  OF  PUBLIC ASSISTANCE BENEFITS SHALL USE ALL OR ANY
   13  PORTION OF SUCH BENEFITS FOR THE PURCHASE  OF  ANY  ALCOHOLIC  BEVERAGE,
   14  TOBACCO   PRODUCT  OR  LOTTERY  TICKET.  ANY  PERSON  WHO  VIOLATES  THE
   15  PROVISIONS OF THIS SUBDIVISION SHALL UPON THE FIRST  SUCH  VIOLATION  BE
   16  DISQUALIFIED  FROM  RECEIVING  PUBLIC  ASSISTANCE  BENEFITS  BY MEANS OF
   17  DIRECT CASH PAYMENT OR ELECTRONIC BENEFITS TRANSFER ACCESS DEVICE FOR  A
   18  PERIOD  OF  ONE  MONTH,  UPON  A  FINDING  OF A SECOND SUCH VIOLATION BE
   19  DISQUALIFIED FROM RECEIVING  PUBLIC  ASSISTANCE  BENEFITS  BY  MEANS  OF
   20  DIRECT  CASH PAYMENT OR ELECTRONIC BENEFITS TRANSFER ACCESS DEVICE FOR A

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05269-01-3

       S. 966                              2

    1  PERIOD OF THREE MONTHS, AND UPON A FINDING OF A THIRD OR SUBSEQUENT SUCH
    2  VIOLATION  SHALL  BE  PERMANENTLY  DISQUALIFIED  FROM  RECEIVING  PUBLIC
    3  ASSISTANCE  BENEFITS BY MEANS OF DIRECT CASH PAYMENT OR ELECTRONIC BENE-
    4  FITS TRANSFER ACCESS DEVICE.  SUCH PERSON SHALL HAVE THE RIGHT TO A FAIR
    5  HEARING PURSUANT TO SECTION TWENTY-TWO OF THIS CHAPTER.  NOTWITHSTANDING
    6  ANY  PROVISION  OF  THIS  CHAPTER  OR  ANY OTHER LAW TO THE CONTRARY, NO
    7  APPLICANT FOR PUBLIC ASSISTANCE BENEFITS SHALL BE APPROVED UNLESS HE  OR
    8  SHE  ATTESTS  TO THE FACT THAT ALCOHOLIC BEVERAGES, TOBACCO PRODUCTS AND
    9  LOTTERY TICKETS ARE PRODUCTS WHICH ARE PROHIBITED FROM  BEING  PURCHASED
   10  WITH  SUCH  BENEFITS PURSUANT TO THIS SECTION. SUCH ATTESTATION SHALL BE
   11  IN A FORM PRESCRIBED BY THE COMMISSIONER  OF  TEMPORARY  AND  DISABILITY
   12  ASSISTANCE.
   13    3.  NO PERSON ENGAGED IN RETAIL SALES, OR ANY AGENT OR EMPLOYEE THERE-
   14  OF, SHALL SELL OR OFFER FOR SALE ANY ALCOHOLIC BEVERAGE, TOBACCO PRODUCT
   15  OR LOTTERY TICKET TO ANY OTHER PERSON IN EXCHANGE FOR OR  FOR  CONSIDER-
   16  ATION  OF  PUBLIC ASSISTANCE BENEFITS BY MEANS OF AN ELECTRONIC BENEFITS
   17  TRANSFER ACCESS DEVICE. ANY PERSON WHO VIOLATES THE PROVISIONS  OF  THIS
   18  SUBDIVISION  SHALL BE SUBJECT TO A CIVIL FINE OF ONE HUNDRED DOLLARS FOR
   19  THE FIRST SUCH VIOLATION, A CIVIL FINE OF FIVE HUNDRED DOLLARS  FOR  THE
   20  SECOND  SUCH  VIOLATION  WITHIN ANY FIVE YEAR PERIOD OF TIME, AND UPON A
   21  FINDING OF A THIRD OR A SUBSEQUENT VIOLATION WITHIN ANY FIVE YEAR PERIOD
   22  OF TIME THE LICENSE, PERMIT  OR  CERTIFICATION  ISSUED  TO  SUCH  PERSON
   23  PURSUANT  TO  THE  ALCOHOLIC BEVERAGE CONTROL LAW, AND/OR ARTICLE TWENTY
   24  AND/OR ARTICLE THIRTY-FOUR OF THE TAX LAW SHALL BE SUSPENDED.
   25    4. IN ANY PROCEEDING BROUGHT AGAINST THE OPERATOR OF A RETAIL BUSINESS
   26  ENGAGED IN RETAIL SALES, PURSUANT TO SUBDIVISION THREE OF  THIS  SECTION
   27  WHEN  THE UNLAWFUL SALE WAS MADE BY AN AGENT OR EMPLOYEE OF THE OPERATOR
   28  OF SUCH BUSINESS, IT SHALL BE AN AFFIRMATIVE DEFENSE IN  FAVOR  OF  SUCH
   29  OPERATOR THAT, AT THE TIME OF SUCH ALLEGED VIOLATION, THE BUSINESS OPER-
   30  ATOR CAN AND DOES PRODUCE PROOF THAT THE AGENT OR EMPLOYEE WHO COMMITTED
   31  SUCH  VIOLATION  COMPLETED  A  TRAINING  PROGRAM ESTABLISHED PURSUANT TO
   32  SUBDIVISION FIVE OF THIS SECTION.
   33    5. A.  THE COMMISSIONER OF TEMPORARY AND DISABILITY  ASSISTANCE  SHALL
   34  PROMULGATE RULES AND REGULATIONS THAT WOULD DEVELOP AND ESTABLISH CRITE-
   35  RIA FOR TRAINING PROGRAMS ON THE PROHIBITION ON THE SALE AND PURCHASE OF
   36  ALCOHOLIC  BEVERAGES,  TOBACCO  PRODUCTS AND LOTTERY TICKETS IN EXCHANGE
   37  FOR PUBLIC ASSISTANCE BENEFITS. SUCH TRAINING MAY BE GIVEN AND  ADMINIS-
   38  TERED  BY  SCHOOLS;  OTHER  ENTITIES  INCLUDING TRADE ASSOCIATIONS WHOSE
   39  MEMBERS ARE ENGAGED IN THE RETAIL SALE OF ALCOHOLIC  BEVERAGES,  TOBACCO
   40  PRODUCTS  AND/OR  LOTTERY TICKETS; AND NATIONAL AND REGIONAL FRANCHISORS
   41  WITH AT LEAST FIVE FRANCHISES IN THE STATE WHICH ENGAGE IN THE SALES  OF
   42  ALCOHOLIC BEVERAGES, TOBACCO PRODUCTS AND/OR LOTTERY TICKETS. THE OFFICE
   43  OF TEMPORARY AND DISABILITY ASSISTANCE SHALL PROVIDE FOR THE ISSUANCE OF
   44  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  TRAINING PROGRAMS ON THE
   45  PROHIBITION ON THE SALE AND PURCHASE  OF  ALCOHOLIC  BEVERAGES,  TOBACCO
   46  PRODUCTS  AND/OR LOTTERY TICKETS IN EXCHANGE FOR PUBLIC ASSISTANCE BENE-
   47  FITS. CERTIFICATES OF APPROVAL MAY BE REVOKED BY THE OFFICE OF TEMPORARY
   48  AND DISABILITY ASSISTANCE FOR FAILURE TO ADHERE  TO  THE  COMMISSIONER'S
   49  RULES AND REGULATIONS. SUCH RULES AND REGULATIONS SHALL AFFORD THOSE WHO
   50  HAVE  BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTUNITY FOR A HEARING
   51  PRIOR TO  ANY  DETERMINATION  OF  WHETHER  SUCH  CERTIFICATE  SHOULD  BE
   52  REVOKED.   THE COMMISSIONER OF TEMPORARY AND DISABILITY ASSISTANCE SHALL
   53  ADOPT RULES TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION,  INCLUDING
   54  MINIMUM  REQUIREMENTS  FOR  THE CURRICULUM OF EACH SUCH TRAINING PROGRAM
   55  AND THE REGULAR TRAINING OF AGENTS AND EMPLOYEES HOLDING CERTIFICATES OF
   56  COMPLETION OR RENEWAL CERTIFICATES.

       S. 966                              3

    1    B.  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION,  THE  OFFICE  OF
    2  TEMPORARY   AND   DISABILITY  ASSISTANCE  IS  EMPOWERED  TO  REQUIRE  IN
    3  CONNECTION WITH AN APPLICATION THE SUBMISSION  OF  SUCH  INFORMATION  AS
    4  SUCH  OFFICE  MAY  DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL
    5  REPORTS  IT  DEEMS  NECESSARY TO BE MADE BY ANY APPLICANT OR CERTIFICATE
    6  HOLDER; TO CONDUCT INVESTIGATIONS, TO REQUIRE MAINTENANCE OF SUCH  BOOKS
    7  AND  RECORDS AS SUCH OFFICE MAY DIRECT; AND TO CANCEL, REVOKE OR SUSPEND
    8  FOR CAUSE ANY CERTIFICATE PROVIDED FOR IN THIS SUBDIVISION.
    9    C. EACH ENTITY AUTHORIZED TO GIVE AND ADMINISTER A TRAINING PROGRAM ON
   10  THE PROHIBITION ON THE SALE AND PURCHASE OF ALCOHOLIC BEVERAGES, TOBACCO
   11  PRODUCTS AND LOTTERY TICKETS IN EXCHANGE FOR PUBLIC ASSISTANCE  BENEFITS
   12  SHALL  ISSUE CERTIFICATES OF COMPLETION TO ALL PERSONS ENGAGED IN RETAIL
   13  SALES, AND THE AGENTS AND EMPLOYEES THEREOF  WHO  SUCCESSFULLY  COMPLETE
   14  SUCH  APPROVED TRAINING PROGRAM. SUCH ENTITY SHALL REGULARLY TRANSMIT TO
   15  THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE THE  NAMES,  ADDRESSES
   16  AND  DATES  OF  ATTENDANCE OF ALL SUCH PERSONS, AGENTS AND EMPLOYEES WHO
   17  SUCCESSFULLY COMPLETE AN APPROVED  TRAINING  PROGRAM.  SUCH  TRANSMITTAL
   18  SHALL  BE IN A FORM AND MANNER PRESCRIBED BY SUCH OFFICE.  A CERTIFICATE
   19  OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO  GIVE
   20  AND  ADMINISTER  A  TRAINING  PROGRAM  PURSUANT  TO  THIS SUBDIVISION TO
   21  PERSONS ENGAGED IN RETAIL SALES, AND THE AGENTS  AND  EMPLOYEES  THEREOF
   22  SHALL  NOT  BE  INVALIDATED  BY A CHANGE OF EMPLOYER.  ATTENDANCE AT ANY
   23  COURSE ESTABLISHED PURSUANT TO THIS  SUBDIVISION  SHALL  BE  IN  PERSON,
   24  THROUGH  DISTANCE  LEARNING  METHODS OR THROUGH AN INTERNET BASED ONLINE
   25  PROGRAM.  EACH CERTIFICATE OF APPROVAL, RENEWAL AND  COMPLETION  THEREOF
   26  SHALL BE ISSUED FOR A PERIOD OF THREE YEARS.
   27    S  147-B.  PROHIBITION OF USE OF PUBLIC ASSISTANCE BENEFITS IN CERTAIN
   28  FACILITIES. 1. FOR THE PURPOSES OF THIS SECTION:
   29    A. "ELECTRONIC BENEFIT TRANSFER TRANSACTION" MEANS THE USE OF A CREDIT
   30  CARD OR DEBIT CARD  SERVICE,  AUTOMATED  TELLER  MACHINE,  POINT-OF-SALE
   31  TERMINAL  OR  ACCESS  TO AN ONLINE SYSTEM FOR THE WITHDRAWAL OF FUNDS OR
   32  THE PROCESSING OF A PAYMENT FOR MERCHANDISE OR A SERVICE.
   33    B. "CASINO" MEANS ANY CASINO, GAMING ESTABLISHMENT OR GAMBLING CASINO,
   34  BUT SHALL NOT INCLUDE:
   35    (I) ANY RETAIL STORE WHICH  SELLS  GROCERIES  INCLUDING  STAPLE  FOODS
   36  (WITHIN  THE  MEANING  OF  SECTION 3(R) OF THE FOOD AND NUTRITION ACT OF
   37  2008 (7 U.S.C. 2012 (R)), AND WHICH ALSO OFFERS OR IS LOCATED WITHIN THE
   38  SAME BUILDING OR COMPLEX AS CASINO, GAMBLING OR GAMING ACTIVITIES; OR
   39    (II) ANY OTHER ESTABLISHMENT THAT OFFERS CASINO,  GAMBLING  OR  GAMING
   40  ACTIVITIES  INCIDENTAL  TO THE PRINCIPAL PURPOSE OF THE BUSINESS OF SUCH
   41  ESTABLISHMENT.
   42    C. "LIQUOR STORE" MEANS ANY RETAIL ESTABLISHMENT WHICH EXCLUSIVELY  OR
   43  PRIMARILY  SELLS  ALCOHOLIC  BEVERAGES.  SUCH TERM SHALL NOT INCLUDE ANY
   44  GROCERY STORE WHICH SELLS BOTH  ALCOHOLIC  BEVERAGES  AND  STAPLE  FOODS
   45  (WITHIN  THE  MEANING  OF  SECTION 3(R) OF THE FOOD AND NUTRITION ACT OF
   46  2008 (7 U.S.C. 2012 (R)).
   47    D. "PUBLIC ASSISTANCE  BENEFITS"  MEANS  MONEY  OR  PROPERTY  PROVIDED
   48  DIRECTLY  OR  INDIRECTLY THROUGH PROGRAMS OF THE FEDERAL GOVERNMENT, THE
   49  STATE OR ANY POLITICAL SUBDIVISION  THEREOF,  AND  ADMINISTERED  BY  THE
   50  OFFICE  OF  TEMPORARY  AND  DISABILITY  ASSISTANCE  OR  SOCIAL  SERVICES
   51  DISTRICTS.
   52    2. NO RECIPIENT OF PUBLIC ASSISTANCE BENEFITS SHALL  BY  MEANS  OF  AN
   53  ELECTRONIC BENEFIT TRANSFER TRANSACTION WITHDRAW OR USE SUCH BENEFITS IN
   54  ANY   LIQUOR  STORE,  CASINO  OR  RETAIL  ESTABLISHMENT  WHICH  PROVIDES
   55  ADULT-ORIENTED ENTERTAINMENT IN WHICH PERFORMERS DISROBE OR  PERFORM  IN
   56  AN  UNCLOTHED  STATE  FOR  ENTERTAINMENT.  ANY  PERSON  WHO VIOLATES THE

       S. 966                              4

    1  PROVISIONS OF THIS SUBDIVISION SHALL UPON THE FIRST  SUCH  VIOLATION  BE
    2  DISQUALIFIED  FROM  RECEIVING  PUBLIC  ASSISTANCE  BENEFITS  BY MEANS OF
    3  DIRECT CASH PAYMENT OR ELECTRONIC BENEFITS TRANSFER ACCESS DEVICE FOR  A
    4  PERIOD  OF ONE MONTH, UPON A FINDING OF A SECOND SUCH VIOLATION SHALL BE
    5  DISQUALIFIED FROM RECEIVING  PUBLIC  ASSISTANCE  BENEFITS  BY  MEANS  OF
    6  DIRECT  CASH PAYMENT OR ELECTRONIC BENEFITS TRANSFER ACCESS DEVICE FOR A
    7  PERIOD OF THREE MONTHS, AND UPON A FINDING OF A THIRD OR SUBSEQUENT SUCH
    8  VIOLATION  SHALL  BE  PERMANENTLY  DISQUALIFIED  FROM  RECEIVING  PUBLIC
    9  ASSISTANCE  BENEFITS BY MEANS OF DIRECT CASH PAYMENT OR ELECTRONIC BENE-
   10  FITS TRANSFER ACCESS DEVICE.  SUCH PERSON SHALL HAVE THE RIGHT TO A FAIR
   11  HEARING PURSUANT TO SECTION TWENTY-TWO OF THIS CHAPTER.
   12    3. THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE  SHALL  ESTABLISH
   13  AND  IMPLEMENT  RULES  AND  REGULATIONS PROHIBITING RECIPIENTS OF PUBLIC
   14  ASSISTANCE BENEFITS, BY MEANS OF ANY ELECTRONIC BENEFIT TRANSFER  TRANS-
   15  ACTION, FROM WITHDRAWING OR USING ANY SUCH BENEFITS IN ANY LIQUOR STORE,
   16  CASINO  OR  RETAIL  ESTABLISHMENT  WHICH  PROVIDES ADULT-ORIENTED ENTER-
   17  TAINMENT IN WHICH PERFORMERS DISROBE OR PERFORM IN  AN  UNCLOTHED  STATE
   18  FOR ENTERTAINMENT.
   19    S  3.  The  state finance law is amended by adding a new section 85 to
   20  read as follows:
   21    S 85. PUBLIC ASSISTANCE INTEGRITY FUND. 1. THERE IS HEREBY ESTABLISHED
   22  IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND  THE  COMMISSIONER  OF
   23  TAXATION  AND  FINANCE A SPECIAL REVENUE FUND TO BE KNOWN AS THE "PUBLIC
   24  ASSISTANCE INTEGRITY FUND".
   25    2. THE PUBLIC  ASSISTANCE  INTEGRITY  FUND  SHALL  CONSIST  OF  MONIES
   26  RECEIVED  BY  THE STATE FROM FINES AND FEES IMPOSED PURSUANT TO SECTIONS
   27  ONE HUNDRED FORTY-SEVEN-A AND ONE HUNDRED FORTY-SEVEN-B  OF  THE  SOCIAL
   28  SERVICES LAW, AND ALL OTHER MONIES APPROPRIATED, CREDITED OR TRANSFERRED
   29  THERETO FROM ANY OTHER FUND OR SOURCE.
   30    3. MONIES OF THE PUBLIC ASSISTANCE INTEGRITY FUND, FOLLOWING APPROPRI-
   31  ATION THEREOF, SHALL BE SOLELY MADE AVAILABLE TO THE OFFICE OF TEMPORARY
   32  AND  DISABILITY  ASSISTANCE FOR EXPENDITURE FOR THE COSTS OF SUCH OFFICE
   33  ASSOCIATED WITH THE PREVENTION OF MISUSE OF PUBLIC  ASSISTANCE  BENEFITS
   34  INCLUDING,  BUT  NOT LIMITED TO, ADMINISTRATION, OVERSIGHT, TRAINING AND
   35  ENFORCEMENT RELATED ACTIVITIES.
   36    S 4. This act shall take effect  February  22,  2014;  provided  that,
   37  effective immediately, any actions necessary to implement the provisions
   38  of  this  act  on  its  effective date are authorized and directed to be
   39  completed on or before such date.