IIB 112th CONGRESS 2d Session H. R. 3567 IN THE SENATE OF THE UNITED STATES February 2, 2012 Received; read twice and referred to the Committee on Finance AN ACT To amend title IV of the Social Security Act to require States to implement policies to prevent assistance under the Temporary Assistance for Needy Families (TANF) program from being used in strip clubs, casinos, and liquor stores.

1.

Short title

This Act may be cited as the Welfare Integrity Now for Children and Families Act of 2012 or the WIN for Children and Families Act.

2.

Spending policies for assistance under State TANF programs

(a)

State requirement

Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is amended by adding at the end the following new paragraph: (12)

State requirement to prevent unauthorized spending of benefits

(A)

In general

A State to which a grant is made under section 403 shall maintain policies and practices as necessary to prevent assistance provided under the State program funded under this part from being used in any electronic benefit transfer transaction in— (i)any liquor store; (ii)any casino, gambling casino, or gaming establishment; or (iii)any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment. (B)

Definitions

For purposes of subparagraph (A)— (i)

Liquor store

The term liquor store means any retail establishment which sells exclusively or primarily intoxicating liquor. Such term does not include a grocery store which sells both intoxicating liquor and groceries including staple foods (within the meaning of section 3(r) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(r))). (ii)

Casino, gambling casino, or gaming establishment

The terms casino, gambling casino, and gaming establishment do not include a grocery store which sells groceries including such staple foods and which also offers, or is located within the same building or complex as, casino, gambling, or gaming activities. (iii)

Electronic benefit transfer transaction

The term electronic benefit transfer transaction means the use of a credit or debit card service, automated teller machine, point-of-sale terminal, or access to an online system for the withdrawal of funds or the processing of a payment for merchandise or a service. . (b)

Penalty

Section 409(a) of the Social Security Act (42 U.S.C. 609(a)) is amended by adding at the end the following new paragraph: (16)

Penalty for failure to enforce spending policies

(A)

In general

If, within 2 years after the date of the enactment of the WIN for Children and Families Act, any State has not reported to the Secretary on such State's implementation of the policies and practices required by section 408(a)(12), or the Secretary determines, based on the information provided in State reports, that any State has not implemented and maintained such policies and practices, the Secretary shall reduce, by an amount equal to 5 percent of the State family assistance grant, the grant payable to such State under section 403(a)(1) for— (i)the fiscal year immediately succeeding the year in which such 2-year period ends; and (ii)each succeeding fiscal year in which the State does not demonstrate that such State has implemented and maintained such policies and practices. (B)

Reduction of applicable penalty

The Secretary may reduce the amount of the reduction required under subparagraph (A) based on the degree of noncompliance of the State. (C)

State not responsible for individual violations

Fraudulent activity by any individual in an attempt to circumvent the policies and practices required by section 408(a)(12) shall not trigger a State penalty under subparagraph (A). . (c)

Conforming amendment

Section 409(c)(4) of the Social Security Act (42 U.S.C. 609(c)(4)) is amended by striking or (13) and inserting (13), or (16).

Passed the House of Representatives February 1, 2012. Karen L. Haas, Clerk.