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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3567 Engrossed in House (EH)]

112th CONGRESS
  2d Session
                                H. R. 3567

_______________________________________________________________________

                                 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.

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

SECTION 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''.

SEC. 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.

            Attest:

                                                                 Clerk.
112th CONGRESS

  2d Session

                               H. R. 3567

_______________________________________________________________________

                                 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.
```