NY A05135

Prohibits recipients of public assistance benefits from purchasing alcoholic beverages, tobacco products, or lottery tickets, with escalating penalties: one-month disqualification for first violation, three-month disqualification for second violation, and permanent disqualification for third or subsequent violations from receiving direct cash payments or electronic benefits transfer access.

Requires all applicants for public assistance benefits to attest that alcoholic beverages, tobacco products, and lottery tickets are prohibited purchases under this law.

Prohibits retail sellers from selling alcoholic beverages, tobacco products, or lottery tickets in exchange for public assistance benefits via electronic benefit transfer, with civil fines of $100 for first violation, $500 for second violation within five years, and license/permit suspension for third violation within five years.

Prohibits recipients from using electronic benefit transfer transactions to withdraw or use public assistance benefits at liquor stores, casinos, or adult entertainment facilities, with the same escalating disqualification penalties as other violations.

Establishes the Public Assistance Integrity Fund to collect fines and fees from violations, with revenues dedicated to the Office of Temporary and Disability Assistance for administration, oversight, training, and enforcement activities.