HR 3567 RFS
‘‘(i) LIQUOR STORE.—The term ‘liq-
uor store’ means any retail establishment 
which sells exclusively or primarily intoxi-
cating liquor. Such term does not include 
a grocery store which sells both intoxi-
cating 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 ‘ca-
sino’, ‘gambling casino’, and ‘gaming es-
tablishment’ 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, ca-
sino, gambling, or gaming activities. 
‘‘(iii) ELECTRONIC
BENEFIT
TRANS-
FER 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 with-
drawal of funds or the processing of a pay-
ment for merchandise or a service.’’. 
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HR 3567 RFS
(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 imple-
mentation of the policies and practices required 
by section 408(a)(12), or the Secretary deter-
mines, based on the information provided in 
State reports, that any State has not imple-
mented and maintained such policies and prac-
tices, the Secretary shall reduce, by an amount 
equal to 5 percent of the State family assist-
ance grant, the grant payable to such State 
under section 403(a)(1) for— 
‘‘(i) the fiscal year immediately suc-
ceeding the year in which such 2-year pe-
riod ends; and 
‘‘(ii) each succeeding fiscal year in 
which the State does not demonstrate that 
such State has implemented and main-
tained such policies and practices. 
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HR 3567 RFS
‘‘(B) REDUCTION
OF
APPLICABLE
PEN-
ALTY.—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 INDI-
VIDUAL
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 amend-
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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