§ 40-6-8.1. Prohibited uses of electronic-benefit-transfer cards. (a) The department shall adopt rules prohibiting purchases with cash-assistance funds held on electronic-benefit-transfer cards in venues as described in this section.

(b) The department is hereby empowered, and shall maintain policies and practices as necessary, to prohibit cash assistance provided under this chapter from being used in any electronic-benefit-transfer transaction at:

(1) Liquor stores (holding solely a retailers class A license);

(2) Casinos or at facilities that conduct casino gaming as defined in chapter 61.2 of title 42;

(3) Gambling facilities as defined by chapter 9 of title 41;

(4) Retail establishments that provide adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment as defined in the Social Security Act, 42 U.S.C. § 608(a).

(c) Eligible recipients of direct-cash assistance, who use cash assistance funds held on electronic-benefit-transfer cards in such establishments, shall, for a first offense, have their cash assistance reduced for one month by the portion of the family's benefit attributable to one parent, in accordance with rules and regulations promulgated by the department; for a second offense, have their cash assistance reduced for three (3) months by the portion of the family's benefit attributable to one parent, in accordance with rules and regulations promulgated by the department; and for a third offense, shall be disqualified from the direct-cash-assistance program for a period of one year.

(d) A store owner who commits fraud against the department of human services by violating § 11-41-34, and who also possesses a license to sell alcoholic beverages under chapter 7 of title 3, shall be referred to the appropriate licensing authority for possible disciplinary action pursuant to title 3.

(e) A store owner who commits fraud against the department of human services by violating § 11-41-34, and who also possesses a license to sell lottery tickets under chapter 61 of title 42, shall be referred to the director of the state lottery for possible disciplinary action.

History of Section. (P.L. 2016, ch. 377, § 1; P.L. 2016, ch. 499, § 1.)