senate Bill S7385

Relates to processing of public assistance through the use of electronic benefit transfers by private entities

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 14 / May / 2014
    • REFERRED TO SOCIAL SERVICES
  • 29 / May / 2014
    • 1ST REPORT CAL.1026
  • 02 / Jun / 2014
    • 2ND REPORT CAL.
  • 03 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Prohibits private entities which process public assistance benefits through the use of electronic benefits transfers from using the name of the state of New York or holding themselves out as a state agency.

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Bill Details

Versions:
S7385
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Social Services Law
Laws Affected:
Amd ยง21-a, Soc Serv L

Votes

6
0
6
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Social Services committee vote details

Sponsor Memo

BILL NUMBER:S7385

TITLE OF BILL: An act to amend the social services law, in relation to
processing of electronic benefit transfer cards

PURPOSE: To prohibit any person, firm, or corporation which is not an
agency or contractor of New York from providing a service related to the
processing of electronic benefit cards from using the words New York in
various forms for enumerated purposes.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends social
services law to prohibit any person, firm, or corporation which is not
an agency, contractor, or instrumentality of New York state and which
provides or offers to provide any service related to the processing of
electronic benefit transfers of public assistance from advertising or
any other purpose using the words New York, New York State, or State of
New York, or abbreviation. Further would prohibit the use of any offi-
cial emblem or insignia. This section also makes it a misdemeanor to
deceive or mislead the public by using these enumerated items. Section 2
is the effective date.

JUSTIFICATION: Current law allows for the prohibition of entities from
using certain terms related to advertising ex: the United Nations.
Recently a company has been attempting to sell and market EBT card read-
ers in Western New York under the guise of a deceptive name. This prac-
tice of attempting to deceive businesses into purchasing these devices
is problematic and should be prohibited. The recently enacted public
assistance integrity reform act placed limits as to where these EBT
cards could be used, it now makes sense to ensure that companies with
questionable business practices such as using a purposefully deceiving
name cannot take advantage of unsuspecting businesses who may believe
they are dealing with New York state, or an approved subsidiary of New
York state.

PRIOR LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This bill shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7385

                            I N  S E N A T E

                              May 14, 2014
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Social Services

AN ACT to amend the social services law, in relation  to  processing  of
  electronic benefit transfer cards

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 21-a of the  social  services  law  is  amended  by
adding a new subdivision 3 to read as follows:
  3.  IT  SHALL  BE  UNLAWFUL  AND IS PROHIBITED FOR ANY PERSON, FIRM OR
CORPORATION WHICH IS NOT AN AGENCY, CONTRACTOR OR INSTRUMENTALITY OF NEW
YORK STATE AND WHICH PROVIDES OR OFFERS TO PROVIDE ANY  SERVICE  RELATED
TO  THE  PROCESSING OF ELECTRONIC BENEFIT TRANSFERS OF PUBLIC ASSISTANCE
UNDER THIS CHAPTER TO ASSUME, ADOPT OR USE AS, OR AS A PART OF A  CORPO-
RATE,  ASSUMED  OR  TRADE  NAME,  FOR  ADVERTISING  PURPOSES, OR FOR THE
PURPOSES OF TRADE, OR FOR ANY OTHER PURPOSE, THE WORDS "NEW YORK",  "NEW
YORK  STATE"  OR "STATE OF NEW YORK", OR AN ABBREVIATION THEREOF; OR ANY
OFFICIAL EMBLEM OR  OTHER  OFFICIAL  INSIGNIA  THEREOF;  NOR  SHALL  ANY
PERSON,  FIRM  OR  CORPORATION,  WITH  INTENT  TO DECEIVE OR MISLEAD THE
PUBLIC, FOR ANY OF SUCH PURPOSES, ASSUME, ADOPT OR USE  ANY  SUCH  NAME,
DESIGNATION OR STYLE, OR SIMULATION THEREOF WHICH MAY DECEIVE OR MISLEAD
THE  PUBLIC  AS TO THE TRUE IDENTITY OF SUCH PERSON, FIRM OR CORPORATION
OR AS TO THE OFFICIAL CONNECTION OF SUCH  PERSON,  FIRM  OR  CORPORATION
WITH  THE  STATE  OF NEW YORK OR ANY AGENCY THEREOF. A VIOLATION OF THIS
SUBDIVISION SHALL BE A MISDEMEANOR.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15166-01-4

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