Prohibits private entities which process public assistance benefits through the use of electronic benefits transfers from using the name of the state of New York or holding themselves out as a state agency.
TITLE OF BILL: An act to amend the social services law, in relation to processing of electronic benefit transfer cards
PURPOSE: To prohibit any person, firm, or corporation which is not an agency or contractor of New York from providing a service related to the processing of electronic benefit cards from using the words New York in various forms for enumerated purposes.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends social services law to prohibit any person, firm, or corporation which is not an agency, contractor, or instrumentality of New York state and which provides or offers to provide any service related to the processing of electronic benefit transfers of public assistance from advertising or any other purpose using the words New York, New York State, or State of New York, or abbreviation. Further would prohibit the use of any official emblem or insignia. This section also makes it a misdemeanor to deceive or mislead the public by using these enumerated items. Section 2 is the effective date.
JUSTIFICATION: Current law allows for the prohibition of entities from using certain terms related to advertising ex: the United Nations. Recently a company has been attempting to sell and market EBT card readers in Western New York under the guise of a deceptive name. This practice of attempting to deceive businesses into purchasing these devices is problematic and should be prohibited. The recently enacted public assistance integrity reform act placed limits as to where these EBT cards could be used, it now makes sense to ensure that companies with questionable business practices such as using a purposefully deceiving name cannot take advantage of unsuspecting businesses who may believe they are dealing with New York state, or an approved subsidiary of New York state.
PRIOR LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: This bill shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7385 IN SENATE May 14, 2014 ___________Introduced by Sen. GRISANTI -- 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 processing of electronic benefit transfer cards THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 21-a of the social services law is amended by adding a new subdivision 3 to read as follows: 3. IT SHALL BE UNLAWFUL AND IS PROHIBITED FOR ANY PERSON, FIRM OR CORPORATION WHICH IS NOT AN AGENCY, CONTRACTOR OR INSTRUMENTALITY OF NEW YORK STATE AND WHICH PROVIDES OR OFFERS TO PROVIDE ANY SERVICE RELATED TO THE PROCESSING OF ELECTRONIC BENEFIT TRANSFERS OF PUBLIC ASSISTANCE UNDER THIS CHAPTER TO ASSUME, ADOPT OR USE AS, OR AS A PART OF A CORPO- RATE, ASSUMED OR TRADE NAME, FOR ADVERTISING PURPOSES, OR FOR THE PURPOSES OF TRADE, OR FOR ANY OTHER PURPOSE, THE WORDS "NEW YORK", "NEW YORK STATE" OR "STATE OF NEW YORK", OR AN ABBREVIATION THEREOF; OR ANY OFFICIAL EMBLEM OR OTHER OFFICIAL INSIGNIA THEREOF; NOR SHALL ANY PERSON, FIRM OR CORPORATION, WITH INTENT TO DECEIVE OR MISLEAD THE PUBLIC, FOR ANY OF SUCH PURPOSES, ASSUME, ADOPT OR USE ANY SUCH NAME, DESIGNATION OR STYLE, OR SIMULATION THEREOF WHICH MAY DECEIVE OR MISLEAD THE PUBLIC AS TO THE TRUE IDENTITY OF SUCH PERSON, FIRM OR CORPORATION OR AS TO THE OFFICIAL CONNECTION OF SUCH PERSON, FIRM OR CORPORATION WITH THE STATE OF NEW YORK OR ANY AGENCY THEREOF. A VIOLATION OF THIS SUBDIVISION SHALL BE A MISDEMEANOR. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15166-01-4