II 112th CONGRESS 1st Session S. 943 IN THE SENATE OF THE UNITED STATES May 11, 2011 Mr. Hatch (for himself and Mr. Baucus) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL 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 2011 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 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. . (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 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).