Bill to ban use of welfare money on alcohol, cigarettes stalls in La. Senate committee

BATON ROUGE, La. (AP) — A proposal to prohibit welfare recipients from spending their assistance dollars on alcohol or cigarettes and to prevent them from withdrawing their assistance as cash was put on hold Monday by the Senate Finance Committee.

The House-backed bill would follow federal legislation passed in February that restricts how recipients can use the money from the Family Independent Temporary Assistance Program. But some lawmakers balked at the price tag of the proposal.

Rep. Cameron Henry proposed a ban on using the electronic benefits card, which functions like a debit card, at ATMs or banks as well as for liquor, gambling establishments or sexually-oriented businesses  such as strip clubs.

The federal legislation prevents welfare money from being used at those establishments but doesn’t restrict money from being withdrawn as cash.

Henry, R-Metairie, said his proposal puts Louisiana ahead of the curve because the federal legislation doesn’t have to be implemented for another two years.

But an estimated $454,000 cost to upgrade the system used to monitor card usage had lawmakers debating the usefulness of a bill that targets only a small percent of transactions.

“I’m just looking at this from a fiscal standpoint. It just seems like we’re getting ready to spend half a million dollars, and the numbers just don’t seem to warrant it. Am I missing something?” asked Sen. Fred Mills, R-Breaux Bridge.

http://www.wwltv.com/news/local/Bill-to-ban-use-of-welfare-money-on-alcohol-cigarettes-stalls-in-La-Senate-committee-152335455.html