SACRAMENTO – In a straight party-line vote, this week the Senate Human Services Committee killed a bill to prohibit the use of Electronic Benefit Transfer (EBT) cards to purchase alcohol and tobacco. Democratic Senators Loni Hancock (D-9), Carol Liu (D-21), Roderick Wright (D25) and Leland Yee (D-8) voted against the bill while Republican Senators Tom Berryhill (R-14), Tony Strickland (R-19) and Bill Emmerson (R-37) voted in favor of the restrictions.
EBT cards function similarly to debit cards in that they can be used at ATMs and many retail establishments to access Food Stamps and cash aid (CalWorks formerly known as AFDC) benefits. Last year a Los Angeles newspaper exposed perceived abuses by welfare recipients who used their EBT cards at Indian gaming casinos, strip clubs, and cruise ships as well as out-of-state casinos. Then-Governor Arnold Schwarzenegger signed an Executive Order prohibiting California casinos from accepting the cards. However, the order did not address use of welfare benefits to purchase alcohol and tobacco.
In February of this year, Senate Republican Leader Bob Dutton (R-31) introduced Senate Bill 417 to prohibit use of EBT cards to purchase tobacco and alcohol. The bill could not prohibit withdrawal of cash that could then be used to purchase the products. Welfare recipients can make several cash withdrawals each month with no service charge. However, according to Dutton, the bill would have "move(d) California closer to making sure that those who receive welfare use those taxpayer funds as effectively and efficiently as possible."
“These funds are designed to help the neediest in California meet their basic requirements of providing food, clothing and shelter,” Senator Dutton said. “I doubt there’s not a taxpayer in this state who believes purchasing alcohol or tobacco with welfare money constitutes a basic need and should be allowed.”
“You would think a simple common sense reform like trying to make sure taxpayer money is not used for the purchase of alcohol and tobacco would find bi-partisan support,” Senator Dutton said.
Welfare-to-Work time limits, which limits parents to receiving cash aid in California for more than five years, have resulted in almost 50 percent of CalWORKS benefits being issued to parents for children only. There are no enforceable restrictions as to how the money can be used.
“With over half of the caseload consisting of ‘child-only’ cases, it is unconscionable to allow designated caregivers the ability to purchase tobacco and alcohol products on behalf of a minor,” Senator Dutton said. “I was quite frankly surprised that Democrats believe that this practice should continue. I remain committed to continue working on real reform measures, like SB 417, to ensure that all taxpayer money is used as it is intended,” Senator Dutton stated.
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