HLS 12RS-528 REENGROSSED
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Regular Session, 2012
HOUSE BILL NO. 95
BY REPRESENTATIVES HENRY, ADAMS, ARNOLD, STUART BISHOP, BROWN,
HENRY BURNS, CHAMPAGNE, GAROFALO, GISCLAIR, GREENE,
HAVARD, HENSGENS, HILL, HODGES, HOFFMANN, HOLLI S, LEOPOLD,
LIGI, LOPINTO, LORUSSO, MACK, JAY MORRIS, PUGH, PYLANT,
REYNOLDS, RICHARD, SEABAUGH, TALBOT, THOMPSON, AND WHITNEY
WELFARE: Prohibits Family Independence Temporary Assistance Program (FITAP)
benefits from being drawn at ATMs, utilized for the purchase of alcohol or tobacco,
and remitted at gaming establishments and sexually oriented businesses
AN ACT1
To amend and reenact R.S. 46:231.13 and 450.1(B)(6) and (C)(3) and to enact R.S.2
46:231(15) and (16), 231.2.1, and 450.1(C)(4) and (5), relative to aid to needy3
families; to provide for the Family Independence Temporary Assistance Program;4
to prohibit certain uses of Family Independence Temporary Assistance Program5
benefits; to provide limitations on retailers participating in the cash assistance6
electronic benefits transfer system; to provide for definitions; to authorize7
promulgation of rules; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 46:231.13 and 450.1(B)(6) and (C)(3) are hereby amended and10
reenacted and R.S. 46:231(15) and (16), 231.2.1, and 450.1(C)(4) and (5) are hereby enacted11
to read as follows: 12
§231. Aid to needy families; definitions13
As used in this Subpart, unless the context clearly requires otherwise:14
* * *15
(15) "Gaming establishment" means any establishment which provides16
gaming activities which are subject to regulation by the Louisiana Gaming Control17
Board.18 HLS 12RS-528 REENGROSSED
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(16) "Sexually oriented business" means any commercial enterprise which1
has as its primary business the offering of a service or the sale, rent, or exhibit of2
devices or any other items intended to provide sexual stimulation or sexual3
gratification to the customer.4
* * *5
§231.2.1. Prohibition on use of benefits; exceptions6
A. Notwithstanding any federal law, regulation, or rule to the contrary, the7
department shall develop and maintain such policies as are necessary to ensure the8
following:9
(1) That no FITAP assistance is used in any transaction in a gaming10
establishment or sexually oriented business.11
(2) That no FITAP assistance issued on an electronic benefits transfer card12
is drawn in the form of cash from an automated teller machine or a retailer.13
(3) That no FITAP assistance is remitted at any retailer for the purchase of14
any of the following:15
(a) An alcoholic beverage as defined in R.S. 14:93.10(3).16
(b) A tobacco product as defined in R.S. 14:91.6(B).17
B. Nothing in this Subpart shall prohibit the remittance of FITAP assistance18
for the purpose of obtaining a cashiers check, certified check, or money order.19
* * *20
§231.13. Retailer fees for access Access to cash assistance benefits at retailers;21
prohibition on obtaining cash; penalties22
Retailers A. No retailer participating in the cash assistance electronic23
benefits transfer system are not prohibited from charging or assessing a fee against24
cash assistance recipients who are accessing benefits for the sole purpose of25
obtaining cash. Such fee shall not exceed the retailer's normal and customary check26
cashing fee assessed against the general public. Retailers shall not establish27
maximum limits for recipient access to cash assistance benefits. shall allow a cash28
assistance recipient to obtain cash through the use of an electronic benefits transfer29 HLS 12RS-528 REENGROSSED
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card, or to remit cash assistance for the purchase of any prohibited item as provided1
in R.S. 46:231.2.1.2
B. Any retailer participating in the cash assistance electronic benefits3
transfer system who violates a provision of this Section shall be subject to the4
following penalties:5
(1) A retailer who allows cash assistance to be used for a purpose prohibited6
pursuant to the provisions of this Section shall be disqualified from participation in7
the cash assistance electronic benefits transfer system for a period not to exceed six8
months.9
(2) A retailer who allows cash assistance to be used for a purpose prohibited10
pursuant to the provisions of this Section, and the ownership of the retail11
establishment approved of or was involved in the conduct of the violation, shall be12
disqualified from participation in the cash assistance electronic benefits transfer13
system for a period not to exceed one year.14
* * *15
§450.1. Electronic authorization and distribution of public assistance benefits and16
services17
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B. The contract program selected to provide the electronic issuance system19
shall include but not be limited to:20
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(6) Provision, installation, and maintenance of automated teller machines,22
point of sale terminals, printers, and personal identification number "PIN" pads in23
the parish offices, in retail establishments which accept food stamps, and in other24
appropriate locations of participants in the program.25
C. The contract program shall also:26
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(3) Provide that the cash back provisions of the electronic issuance system28
shall not allow the merchant to charge the recipient reasonable and customary29
charges for the provision of provide any cash back services.30 HLS 12RS-528 REENGROSSED
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(4) Ensure that no gaming establishment or sexually oriented business as1
defined in R.S. 46:231 participates as a merchant in the electronic issuance system.2
(5) Ensure that no FITAP assistance is remitted at any participating retailer3
for the purchase of any of the following:4
(a) An alcoholic beverage as defined in R.S. 14:93.10(3).5
(b) A tobacco product as defined in R.S. 14:91.6(B).6
* * *7
Section 2. The Department of Children and Family Services shall promulgate, in8
accordance with the Administrative Procedure Act, all rules necessary to implement the9
provisions of this Act before February 1, 2013.10
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Henry HB No. 95
Abstract: Prohibits Family Independence Temporary Assistance Program (FITAP) benefits
from being drawn at ATMs, utilized for the purchase of alcohol or tobacco, and
remitted at gaming establishments or sexually oriented businesses.
Present law provides that the Family Independence Temporary Assistance Program (FITAP)
is the cash assistance program for needy families of this state established pursuant to the
Federal Welfare Reform Act of 1996.
Proposed law provides the following definitions:
(1)"Gaming establishment" means any establishment which provides gaming activities
which are subject to regulation by the La. Gaming Control Board.
(2)"Sexually oriented business" means any commercial enterprise which has as its
primary business the offering of a service or the sale, rent, or exhibit of devices or
any other items intended to provide sexual stimulation or sexual gratification to the
customer.
Proposed law provides that the Dept. of Children and Family Services (DCFS) shall ensure
that no FITAP assistance is used in any transaction in a gaming establishment or sexually
oriented business. Provides that DCFS shall ensure that no FITAP assistance issued on an
electronic benefits transfer card is drawn in the form of cash from an automated teller
machine or a retailer. Provides further that no FITAP assistance shall be remitted at any
retailer for the purchase of an alcoholic beverage or tobacco product.
Proposed law provides the following penalties for violations by retailers of proposed law: HLS 12RS-528 REENGROSSED
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(1)A retailer who allows cash assistance to be used for a purpose prohibited by
proposed law shall be disqualified from participation in the cash assistance electronic
benefits transfer system for a period not to exceed six months.
(2)A retailer who allows cash assistance to be used for a purpose prohibited by
proposed law, and the ownership of the retail establishment approved of or was
involved in the conduct of the violation, shall be disqualified from participation in
the cash assistance electronic benefits transfer system for a period not to exceed one
year.
Present law provides that retailers participating in the cash assistance electronic benefits
transfer (EBT) system are not prohibited from charging or assessing a fee against cash
assistance recipients who are accessing benefits for the sole purpose of obtaining cash.
Proposed law amends present law to provide that no retailer participating in the cash
assistance EBT system shall allow a cash assistance recipient to obtain cash through the use
of an electronic benefits transfer card.
Proposed law deletes present law which provides that the contract program selected by
DCFS to provide the electronic benefits issuance system shall install and maintain automated
teller machines in DCFS parish offices, in retail establishments which accept food stamps,
and in other appropriate locations of participants in the program.
Present law provides that the contract program selected by DCFS to provide the electronic
benefits issuance system shall ensure that such system allows the merchant to charge the
recipient reasonable and customary charges for the provision of cash back services.
Proposed law amends present law to provide that such system shall not allow a merchant to
provide any cash back services.
Proposed law provides that the contract program selected by DCFS to provide the electronic
benefits issuance system shall ensure that no gaming establishment or sexually oriented
business as defined in proposed law participates as a merchant in the system. Provides that
such contract program also ensure that no FITAP assistance is remitted at any participating
retailer for the purchase of an alcoholic beverage or tobacco product.
Proposed law provides that DCFS shall promulgate, in accordance with the Administrative
Procedure Act, all rules necessary to implement the provisions of proposed law by Feb. 1,
2013.
(Amends R.S. 46:231.13 and 450.1(B)(6) and (C)(3); Adds R.S. 46:231(15) and (16),
231.2.1, and 450.1(C)(4) and (5))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Health and Welfare to the
original bill.
1. Added provision to proposed law which prohibits remittance of FITAP assistance
to any retailer for the purchase of an alcoholic beverage.
2. Made technical change.
House Floor Amendments to the engrossed bill.
1. Deleted definition of liquor store from proposed law.
2. Eliminated a liquor store, as defined in proposed law, as a place where the use
of FITAP assistance would be prohibited. HLS 12RS-528 REENGROSSED
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3. Added provision to proposed law prohibiting remittance of FITAP assistance to
any retailer for the purchase of a tobacco product.
4. Provided that nothing in present law or proposed law shall prohibit the
remittance of FITAP assistance for the purpose of obtaining a cashiers check,
certified check, or money order.
5. Provided the following penalties for violations by retailers of proposed law:
(a)A retailer who allows cash assistance to be used for a purpose prohibited
by proposed law shall be disqualified from participation in the cash
assistance electronic benefits transfer system for a period not to exceed
six months.
(b)A retailer who allows cash assistance to be used for a purpose prohibited
by proposed law, and the ownership of the retail establishment approved
of or was involved in the conduct of the violation, shall be disqualified
from participation in the cash assistance electronic benefits transfer
system for a period not to exceed one year.
6. Added requirement that DCFS shall promulgate all rules necessary to implement
the provisions of proposed law before Feb. 1, 2013.
7. Made technical changes.