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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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HR 3567 RFS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Welfare Integrity Now 

3 for Children and Families Act of 2012’’ or the ‘‘WIN for 

4 Children and Families Act’’. 

5 SEC. 2. SPENDING POLICIES FOR ASSISTANCE UNDER 

6 STATE TANF PROGRAMS. 

7 (a) STATE REQUIREMENT.—Section 408(a) of the 

8 Social Security Act (42 U.S.C. 608(a)) is amended by add9 ing at the end the following new paragraph: 

10 ‘‘(12) STATE REQUIREMENT TO PREVENT UN11 AUTHORIZED SPENDING OF BENEFITS.— 

12 ‘‘(A) IN GENERAL.—A State to which a 

13 grant is made under section 403 shall maintain 

14 policies and practices as necessary to prevent 

15 assistance provided under the State program 

16 funded under this part from being used in any 

17 electronic benefit transfer transaction in— 

18 ‘‘(i) any liquor store; 

19 ‘‘(ii) any casino, gambling casino, or 

20 gaming establishment; or 

21 ‘‘(iii) any retail establishment which 

22 provides adult-oriented entertainment in 

23 which performers disrobe or perform in an 

24 unclothed state for entertainment. 

25 ‘‘(B) DEFINITIONS.—For purposes of sub26 paragraph (A)— 


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1 ‘‘(i) LIQUOR STORE.—The term ‘liq2 uor store’ means any retail establishment 

3 which sells exclusively or primarily intoxi4 cating liquor. Such term does not include 

5 a grocery store which sells both intoxi6 cating liquor and groceries including staple 

7 foods (within the meaning of section 3(r) 

8 of the Food and Nutrition Act of 2008 (7 

9 U.S.C. 2012(r))). 

10 ‘‘(ii) CASINO, GAMBLING CASINO, OR

11 GAMING ESTABLISHMENT.—The terms ‘ca12 sino’, ‘gambling casino’, and ‘gaming es13 tablishment’ do not include a grocery store 

14 which sells groceries including such staple 

15 foods and which also offers, or is located 

16 within the same building or complex as, ca17 sino, gambling, or gaming activities. 

18 ‘‘(iii) ELECTRONIC BENEFIT TRANS19 FER TRANSACTION.—The term ‘electronic 

20 benefit transfer transaction’ means the use 

21 of a credit or debit card service, automated 

22 teller machine, point-of-sale terminal, or 

23 access to an online system for the with24 drawal of funds or the processing of a pay25 ment for merchandise or a service.’’. 


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HR 3567 RFS

1 (b) PENALTY.—Section 409(a) of the Social Security 

2 Act (42 U.S.C. 609(a)) is amended by adding at the end 

3 the following new paragraph: 

4 ‘‘(16) PENALTY FOR FAILURE TO ENFORCE

5 SPENDING POLICIES.— 

6 ‘‘(A) IN GENERAL.—If, within 2 years 

7 after the date of the enactment of the WIN for 

8 Children and Families Act, any State has not 

9 reported to the Secretary on such State’s imple10 mentation of the policies and practices required 

11 by section 408(a)(12), or the Secretary deter12 mines, based on the information provided in 

13 State reports, that any State has not imple14 mented and maintained such policies and prac15 tices, the Secretary shall reduce, by an amount 

16 equal to 5 percent of the State family assist17 ance grant, the grant payable to such State 

18 under section 403(a)(1) for— 

19 ‘‘(i) the fiscal year immediately suc20 ceeding the year in which such 2-year pe21 riod ends; and 

22 ‘‘(ii) each succeeding fiscal year in 

23 which the State does not demonstrate that 

24 such State has implemented and main25 tained such policies and practices. 


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1 ‘‘(B) REDUCTION OF APPLICABLE PEN2 ALTY.—The Secretary may reduce the amount 

3 of the reduction required under subparagraph 

4 (A) based on the degree of noncompliance of 

5 the State. 

6 ‘‘(C) STATE NOT RESPONSIBLE FOR INDI7 VIDUAL VIOLATIONS.—Fraudulent activity by 

8 any individual in an attempt to circumvent the 

9 policies and practices required by section 

10 408(a)(12) shall not trigger a State penalty 

11 under subparagraph (A).’’. 

12 (c) CONFORMING AMENDMENT.—Section 409(c)(4) 

13 of the Social Security Act (42 U.S.C. 609(c)(4)) is amend14 ed by striking ‘‘or (13)’’ and inserting ‘‘(13), or (16)’’. 

Passed the House of Representatives February 1, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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