Michigan senator seeks EBT card restrictions

Michigan State Sen. Rick Jones, R-Grand Ledge, said he plans to introduce legislation to ban the use of state-issued electronic benefits transfer (EBT) cards at strip clubs and liquor stores in Michigan. "It is an obscene use of tax dollars meant to feed hungry children and provide the necessities of life," Jones said in an April 29, 2013, statement. "Booze and strip clubs need to be off limits to welfare money."

Jones told SellingPrepaid that Michigan's EBT card program for the Michigan WIC Bridge Card lacks oversight, with casinos reporting EBT cards being used to gamble away tens of thousands of welfare dollars, while college students without financial needs can sign up for the program and receive $200 a month loaded on the cards.

Jones cited the Middle Class Tax Relief and Job Creation Act of 2012, a new federal law that requires states to prevent EBT cards from being used at "ATMs located in casinos, gaming establishments, liquor stores, or any establishment that provides adult-orientated entertainment in which performers disrobe or perform in an unclothed state for entertainment."

Jones said Michigan could be fined 10 percent of the yearly Temporary Assistance for Needy Families funds it receives from the federal government for noncompliance with the regulations. He noted that the Michigan Department of Human Services, which implements the state's EBT card program, is in support of Jones' plan. "It's gonna happen," he said.

In June 2012, Michigan passed into law an act sponsored by Jones that mandates Michigan's DHS to work with ATM providers to create and implement a way of blocking Bridge Card users from withdrawing cash from ATMs. Michigan's Bridge Card program is managed by Xerox Corp.-owned prepaid card program manager and processor Affiliated Computer Services Inc.

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