New law to restore credibility to welfare system takes effect Friday
AUGUSTA — A new state law barring the use of cash welfare benefits to purchase alcohol, tobacco, lottery tickets and other items will take effect on Friday, July 29.
“Democrats and Republicans couldn’t have been further apart on this issue when I first introduced this bill,” said Sen. Nate Libby, D-Lewiston, who sponsored the bill and negotiated the final compromise enacted into law. “I worked on this law for two years, until we finally passed a tough, but fair, reform that works for taxpayers and welfare recipients alike.”
Sen. Nate Libby, D-Lewiston.
Libby’s law bans the use of cash welfare benefits on tobacco, liquor, gambling activities, lottery, bail, firearms, vacations, adult entertainment and tattoos. It also charges retailers and the Department of Health and Human Services to study how existing technology at the cash register can be used to block the use of EBT cards on prohibited products, the same way it blocks the use of food stamps on disallowed purchases. DHHS and the retailers will report their findings to the Legislature, so that action can be taken to prevent abuse before it can take place.
It also establishes even-handed penalties, including restitution, for those who knowingly violate the new product purchase ban, ranging from up to three months of suspended benefits on the first offense up to 24 months of suspended benefits on third and subsequent offenses.
“We know Mainers have been skeptical of the welfare system’s ability to prevent abuse,” Sen. Libby said. “This law restores that lost credibility. By preventing the use of cash benefits on beer and cigarettes, we’re ensuring more money is available for families to put food on their tables, clothes on their children’s backs and heating oil in the tank.”
The law was enacted unanimously in the Senate, and with broad bipartisan support in the House of Representatives. It was signed into law by Gov. Paul Lepage on April 16. As non-emergency legislation, its effective date was set at 90 days after the Legislature adjourned.
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