"Sec. 1   RCW 74.08.580 and 2002 c 252 s 1 are each amended to read as follows:
     (1) Any person receiving public assistance is prohibited from using electronic benefit cards or cash obtained with electronic benefit cards:
     (a) For the purpose of participating in any of the activities authorized under chapter 9.46 RCW;
     (b) For the purpose of parimutuel wagering authorized under chapter 67.16 RCW; ((or))
     (c) To purchase lottery tickets or shares authorized under chapter 67.70 RCW;
     (d) For the purpose of participating in or purchasing any activities located in a tattoo, body piercing, or body art shop licensed under chapter 18.300 RCW;
     (e) To purchase cigarettes as defined in RCW 82.24.010 or tobacco products as defined in RCW 82.26.010;
     (f) To purchase any items regulated under Title 66 RCW; or
     (g) For the purpose of purchasing or participating in any activities in any location listed in subsection (2) of this section.
     (2) On or before January 1, 2012, the businesses listed in this subsection must disable the ability of ATM and point-of-sale machines located on their business premises to accept the electronic benefit card. The following businesses are required to comply with this mandate:
     (a) Taverns licensed under RCW 66.24.330;
     (b) Beer/wine specialty stores licensed under RCW 66.24.371;
     (c) Nightclubs licensed under RCW 66.24.600;
     (d) Contract liquor stores defined under RCW 66.04.010;
     (e) Bail bond agencies regulated under chapter 18.185 RCW;
     (f) Gambling establishments licensed under chapter 9.46 RCW;
     (g) Tattoo, body piercing, or body art shops regulated under chapter 18.300 RCW;
     (h) Adult entertainment venues with performances that contain erotic material where minors under the age of eighteen are prohibited under RCW 9.68A.150; and
     (i) Any establishments where persons under the age of eighteen are not permitted.
     (3) Violation of subsection (1) of this section constitutes a gross misdemeanor.
     (4)(a) The department shall notify, in writing, all recipients of electronic benefit cards that any violation of subsection (1) of this section could result in civil or criminal legal proceedings and, for recipients, the forfeiture of all cash public assistance, and for business establishments, the temporary suspension of their business license.
     (b) Whenever the department receives notice that a person has violated subsection (1) of this section, the department shall notify the person in writing that the violation could result in civil or criminal legal proceedings and, for recipients, the forfeiture of all cash public assistance, and for business establishments, the temporary suspension of their business license.
     (c) The department shall assign a protective payee to the person receiving public assistance who violates subsection (1) of this section.

NEW SECTION.  Sec. 2   A new section is added to chapter 66.24 RCW to read as follows:
     The board shall immediately suspend the license of a business that has been issued a license under RCW 66.24.330, 66.24.371, or 66.24.600 if the board receives information that the business has not complied with RCW 74.08.580(2). If the licensee has remained otherwise eligible to be licensed, the board may reinstate the suspended license when the business has complied with RCW 74.08.580(2).

Sec. 3   RCW 66.16.041 and 2005 c 151 s 6 are each amended to read as follows:
     (1) The state liquor control board shall accept bank credit card and debit cards for purchases in state liquor stores, under such rules as the board may adopt. The board shall authorize contract liquor stores appointed under RCW 66.08.050 to accept bank credit cards and debit cards for liquor purchases under this title, under such rules as the board may adopt.
     (2) If a contract liquor store chooses to use credit or debit cards for liquor purchases, the board shall provide equipment and installation and maintenance of the equipment necessary to implement the use of credit and debit cards. Any equipment provided by the board to a contract liquor store for this purpose may be used only for the purchase of liquor.
     (3) It is the board's responsibility to ensure that the equipment used by the contract liquor stores to accept debit or credit cards complies with the requirements of RCW 74.08.580(2) with regard to point of sale machines.
     (4) It is the contract liquor store's responsibility to comply with the requirements of RCW 74.08.580(2) pertaining to the use of EBT cards in ATM machines located on the contract liquor store premises. The board shall immediately suspend the contract it has with the contract liquor store if it receives information that the store has not complied with RCW 74.08.580(2). The board may reinstate the suspended contract when the contract liquor store has complied with RCW 74.08.580(2).

NEW SECTION.  Sec. 4   A new section is added to chapter 18.300 RCW to read as follows:
     The department shall immediately suspend any license under this chapter if the department receives information that the license holder has not complied with RCW 74.08.580(2). If the license holder has remained otherwise eligible to be licensed, the department may reinstate the suspended license when the holder has complied with RCW 74.08.580(2).

NEW SECTION.  Sec. 5   A new section is added to chapter 18.185 RCW to read as follows:
     The director shall immediately suspend any license issued under this chapter if the director receives information that the license holder has not complied with RCW 74.08.580(2). If the license holder has otherwise remained eligible to be licensed, the director may reinstate the suspended license when the holder has complied with RCW 74.08.580(2).

Sec. 6   RCW 9.46.410 and 2002 c 252 s 2 are each amended to read as follows:
     (1) Any licensee authorized under this chapter is prohibited from allowing the use of public assistance electronic benefit cards for the purpose of participating in any of the activities authorized under this chapter.
     (2) Any licensee authorized under this chapter shall report to the department of social and health services any known violations of RCW 74.08.580.
     (3) Any licensee authorized under this chapter is required to comply with RCW 74.08.580(2). If the licensee fails to comply with RCW 74.08.580(2), its license shall be immediately suspended until it complies with RCW 74.08.580(2). If the licensee remains otherwise eligible to be licensed, the commission may reinstate the license once the licensee has complied with RCW 74.08.580(2).

NEW SECTION.  Sec. 7   This act takes effect January 1, 2012."