Senate Bill 251 Summary

• Creates restrictions on temporary assistance for needy families (TANF) electronic benefit transfer card use, prohibiting purchases at liquor stores, casinos, adult entertainment establishments, and items primarily marketed for adults 18+ or not in children's best interests, with violators required to reimburse the department.

• Establishes penalties for merchants accepting TANF funds for prohibited items including alcoholic beverages, lottery tickets, and tobacco products: fines up to $500 for first offense, $500-$1,000 for second offense, and minimum $1,000 for third or subsequent offenses.

• Replaces references to outdated "food stamp coupons" and "ATP cards" with current "public assistance benefits" and "electronic benefits cards (EBT cards)" terminology throughout fraud statutes.

• Enhances criminal penalties for unlawful receipt, conversion, and transfer of public assistance benefits: class A misdemeanor for amounts under $500; class D felony for amounts $500+; class C felony for second or subsequent felony offenses; mandatory minimum 120 days incarceration unless full restitution paid within 30 days.

• Reduces public assistance fraud hotline hours from 16 hours daily to 8 hours per business day and requires the department to study analytical fraud detection methods with a report due December 1, 2013.