Legislative Column for the Week of Monday, Feb. 25, 2013
Fighting Food Stamp and EBT Fraud
 

JEFFERSON CITY — Early in the legislative session, I introduced a bill to prohibit the use of Missouri-issued electronic benefits transfer, or EBT, cards from use in other states. The reality is that abuse of these benefits has become a serious problem. According to information provided by the Missouri Department of Social Services, in a one-month period in 2011, $362,682 in Missouri EBT cash benefits were withdrawn outside of the state. In the same time period, $3,521,974 in food purchases were made out-of-state. While many of these purchases were made in border states, cash benefits were withdrawn from ATMs in all 50 states and in places as far away as American Samoa and the Virgin Islands. In one state alone, EBT beneficiaries from Missouri purchased $139,763 worth of food, and withdrew $20,981 from ATMs.

The solution I am proposing in Senate Bill 128 is very simple; Missouri beneficiaries of EBT cash funds would not be able to withdraw these benefits in places like Alaska, Hawaii, and California. Instead, the hard-earned tax dollars of Missourians, who are paying for this program, would have to stay in Missouri, spent for their intended purpose, and go to business owners and establishments in our own back yard.

The other portion of my bill would restrict food stamp purchases in Missouri for healthy food and beverages only. I don’t want additional government intrusion into the private lives of citizens, and typically believe that the best government is that which governs least. However, our country’s taxpayers continue to spend more and more on the food stamp program. Today, nearly 50 million people are on food stamps. To the extent possible, I want to make sure our tax dollars are spent wisely and for healthy foods, not a six-pack of Coke. With so many drawing benefits and receiving their health care through the state or federal government, we should encourage good health care decisions. Taxpayers should not give up their hard-earned wages to pay for soda pop, candy and cookies. There are much better options at the grocery store, and Senate Bill 128 would be a step toward fixing a broken system.

Another concern I have is that these benefits, intended to help our most vulnerable, are spent at places they shouldn’t. Media outlets have reported that EBT purchases were made at resort communities in Honolulu and the Virgin Islands. Benefits were even withdrawn at Vegas casinos, a Kansas City strip club, a four-star hotel, and an adult bookstore. The problem is that these purchases are allowed under current law, and we have no provision in law to restrict where these cards are used. One of my colleagues is sponsoring legislation, Senate Bill 251, that would address this problem. Senate Bill 251 would not allow EBT transactions at any liquor store, gambling casino or adult-oriented business. The bill would also impose strict penalties for welfare fraud. The people of the 29th District should be able to trust that their tax dollars are spent wisely and for the right reasons. I plan to support this legislation and hope to work with my colleagues to approve it before the close of session.

As always, I welcome your ideas, questions and concerns about Missouri government. You may contact me at the State Capitol as follows: (573) 751-1480; david.sater@senate.mo.gov; or by writing to Sen. David Sater, Missouri State Capitol, Room 433, Jefferson City, MO 65101.