Enacts the "public assistance integrity act" to prohibit sale or purchase of alcoholic beverages, tobacco products or lottery tickets with public assistance benefits

Summary of provisions

Section 1 -- Amends Social Services Law by adding two sections:

Section 147-a, which defines "public assistance benefits"; prohibits the purchase or sale of alcoholic beverages, tobacco products or lottery tickets with public assistance benefits; establishes penalties for violation; directs the commissioner of temporary and disability assistance to develop and establish criteria for training programs on prohibition of the sale of such items to be administered by certain entities, establish criteria for applying issuing, revoking and renewing certificates of approval and completion for training programs.

Section 147-b, which prohibits the withdrawal and use of public assistance benefits in certain facilities.

Section 2 -- Amends state finance law establishing the Public assistance integrity fund, containing monies received from fines and fees established in Section 1.

Section 3 -- Effective date.

Existing law

No law exists protecting public assistance cash benefits from being either used to purchase alcohol, tobacco or lottery tickets, or withdrawn or used in any liquor store, casino or establishment providing adult-oriented entertainment.

Justification

Public assistance is designed to help needy families provide care for their children, promote job preparation and achieve self-sufficiency.

While Food Stamps benefits provide help low-income working people, seniors, the disabled and others feed their families, Temporary Assistance programs, like Family Assistance (FA), which is federally funded through Temporary Assistance for Needy Families, provides additional cash assistance to help pay for housing and energy costs, paper products, school supplies and other expenses.

This cash assistance is increasingly administered to these families through Electronic Benefit Transfer (EBT) Cards.

Currently, no state law protects public assistance cash benefits from either being misused to purchase alcoholic beverages, tobacco or lottery tickets or withdrawn from Automatic Teller Machines (ATMs) at locations such as liquor stores, casinos or establishments providing adult-oriented entertainment.

Obviously, the majority of families and individuals receiving public assistance use the assistance responsibly to help care for their families, but it is also evident that abuse does occur.

Constituents from across our Senate District, NY have logged complaints about misuse of public funds for items including liquor, alcohol, tobacco and lottery tickets.

Additionally, a recent report from WNYT in Albany examined records from 11 counties and showed tens of thousands of dollars in cash assistance had been withdrawn from ATMs located at adult entertainment clubs, OTBs, liquor stores and beverage and tobacco retailers.

Similar reports have resulted in other states, including Arizona, California, Colorado, Indiana, Massachusetts, Minnesota, Missouri, Pennsylvania and Washington, to enact restrictions on the use of public assistance.

The "Public Assistance Protection Act" would prohibit misuse in compliance with Section 4004 of the federal Middle Class Tax Relief and Job Creation Act of 2012, signed by President Barrack Obama on February 22, 2012, requiring states to maintain policies and practices as necessary to prevent public assistance provided through federal programs from being used in any electronic benefit transfer transaction in any liquor store or casino.

Current law protects assistance through Supplemental Nutrition Assistance Program (SNAP), and the "Public Assistance Protection Act" extends that protection to cash assistance with the aims of ensuring this much-needed assistance does indeed help the needy families for which it was intended.

Fiscal implications

Minimal.

Effective date

This act shall take effect on February 22, 2014; provided that any actions necessary to implement the provisions are authorized and directed to be completed on or before such date.