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Code · STATUTE-COMPILATIONS · Middle Class Tax Relief and Job Creation Act of 2012 · Sec. 4004

Sec. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF PROGRAMS

792 words·~4 min read·/statute-compilations/comps-13851/sec-4004

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 4004 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: > > #### “(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— > > > ###### “(I) > > 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; or > > > ###### “(II) > > any other establishment that offers casino, gambling, or gaming activities incidental to the principal purpose of the business. > > > ###### “(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 such Act (42 U.S.C. 609(a)) is amended by adding at the end the following: > > #### “(16) Penalty for failure to enforce spending policies > > > ##### “(A) In general > > If, within 2 years after the date of the enactment of this paragraph, 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)Additional State Plan Requirements Section 402(a)(1)(A) of such Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the following: > > ###### “(vii) > > Implement policies and procedures as necessary to prevent access to assistance provided under the State program funded under this part through any electronic fund transaction in an automated teller machine or point-of-sale device located in a place described in section 408(a)(12), including a plan to ensure that recipients of the assistance have adequate access to their cash assistance. > > > ###### “(viii) > > Ensure that recipients of assistance provided under the State program funded under this part have access to using or withdrawing assistance with minimal fees or charges, including an opportunity to access assistance with no fee or charges, and are provided information on applicable fees and surcharges that apply to electronic fund transactions involving the assistance, and that such information is made publicly available.” > . ###
(d)Conforming Amendment Section 409(c)(4) of such Act (42 U.S.C. 609(c)(4)) is amended by striking “or (13)” and inserting “(13), or (16)”.
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cites case law
Sec. 4004
SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF PROGRAMS
U.S.C.§ 608
U.S.C.§ 2012
U.S.C.§ 609
U.S.C.§ 602
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