The Gaming Commission will continue to identify prohibited locations subject to its oversight and will direct such entities to block the EBT cards at the restricted locations. The Gaming Commission conducts periodic reviews of its licensees to ensure compliance with law, and enforces compliance through its authority to sanction a regulated party or to limit, suspend or revoke a licensee’s license.
Liquor Stores and Adult-Oriented Entertainment Venues with Liquor Licenses:
The Full Board of the New York State Liquor Authority (SLA) approved an advisory on January 3, 2014 that was posted to the SLA website on January 17, 2014 that provided information to the entities SLA regulates that sell liquor regarding the steps involved in blocking purchases from EBT accounts in their liquor stores (see Attachment 1, SLA Advisory #2014-1). The advisory was revised to reflect proposals in the New York State Executive Budget for State Fiscal Year 2014-15, and was reposted to the SLA website on January 28, 2014 (see Attachment 2, SLA Advisory #2014-3). The revised advisory was directed not only to liquor stores, but also to wine stores, on-premises licensees providing adult entertainment, and “C” beer wholesalers selling beer at retail. The SLA has issued this advisory to all licensees impacted by the federal legislation. The Advisory provides instructions with respect to blocking the use of EBT cards at those licensed premises. In addition to issuing licenses to manufacture and sell alcoholic beverages, the SLA is also responsible for enforcing the laws and regulations governing licensees. New York State is identifying prohibited locations specified in P.L. 112-96 and is monitoring compliance through analysis of transactions in our EBT data warehouse. New York State will also conduct regular targeted sample reviews.
Vendor Restricted Cash:
In the State of New York, public assistance recipients have limited cash assistance for which general item or service purchases can be made. New York’s current practice of vendor restriction significantly reduces the amount of cash assistance that is authorized on EBT cards. Through vendor restriction, a portion of a recipient’s cash assistance is paid directly to the vendor (e.g. landlord, utility company) on behalf of the household to meet basic living needs. Currently, 69 percent of all public assistance dollars are issued via a restricted payment. In addition, 81
percent of all public assistance households have at least a portion of their grant vendor restricted, and 89 percent of all assistance paid goes to households with at least a partial restriction. Such “vendor restriction” is consistent with the purposes of TANF and serves to promote the integrity of the program. Additional Policies and Practices
Quest Operating Rule Change:
OTDA is a member of the National Automated Clearing House Association (NACHA). NACHA is planning to amend the rules that govern EBT transactions in states, such as New York, that comply with the “Quest” operating rules. The Quest operating rules currently require all merchants, acquirers and processors in a participating Quest state to accept transactions from all EBT cardholders, including out-of-state cardholders. On January 17, 2014, NACHA provided OTDA with draft language that would prohibit terminals located on the premises of the venues identified in P.L. 112-96 from initiating