Senate passes Libby's bill for welfare reform, accountability at cash register

Posted: April 15, 2016 | Health and Human Services, Senator Haskell, Senator Libby
Sen. Nate Libby, D-Lewiston.

Sen. Nate Libby, D-Lewiston.

AUGUSTA — The Senate on Friday passed a bill to ban the use of welfare cash to buy alcohol, tobacco, lottery tickets and other products that don’t help low-income families pull themselves out of poverty.

The bill was sponsored by Sen. Nate Libby, D-Lewiston. Its passage is the result of more than 16 months of negotiations between Sen. Libby, lawmakers on both sides of the aisle, and Gov. Paul LePage’s office. It was passed by the Senate in a unanimous vote.

“This bill finally gives Mainers what they’ve wanted: Meaningful welfare reform the focuses assistance on helping families get out of poverty while ensuring accountability at the cash register,” said Sen. Libby. “Taxpayer dollars shouldn’t be used to buy these sorts of products, and Mainers have been surprised to know these kinds of purchases weren’t prohibited before. I want to thank my colleagues for committing to work past our differences and, finally, reach a compromise.”

The bill, as amended, includes the following provisions:

  • the immediate ban on the use of welfare cash to purchase tobacco, liquor, gambling activities, lottery, bail, firearms, vacations, adult entertainment and tattoos;

  • the implementation of technology to block the use of EBT cards to purchase prohibited items, utilizing existing point-of-sale technology, following a study involving retailers and the Department of Health and Human Services;

  • the use of tough but fair penalties including restitution for knowing violations of the product purchase ban, ranging from up to three months of suspended benefits on the first offense and up to 24 months of suspended benefits on third and subsequent offenses; and

  • the hiring of one additional welfare fraud investigator in the Attorney General’s office.

“We’ve heard loudly and clearly that Maine people are skeptical that our welfare system is capable of preventing abuse,” said Sen. Anne Haskell, D-Portland, the lead Senate Democrat on the Health and Human Services Committee. “By implementing these commonsense rules, we can restore credibility to our welfare system and eliminate suspicion in the checkout aisle.”

The bill faces additional votes in the House and Senate. Gov. Paul LePage has indicated his support for the amended version of the bill.

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