EBT cards at strip clubs, liquor stores and casinos? It’s still OK here in NM

A bill aimed at curbing abuse of Electronic Benefit Transfer cards sailed through the state House of Representatives and two Senate committees but was never heard on the Senate floor in the just-completed 60-day legislative session.

And that could mean a loss of an estimated $5.5 million in Temporary Assistance for Needy Familes (TANF) funding for New Mexico by early next year.

The EBT debit cards are given to the needy to pay for necessities. But as first reported by Jim Scarantino of New Mexico Watchdog, some recipients have made withdrawals from liquor stores, casinos, bars, smokeshops and even strip clubs.

Not only is such use a waste of taxpayers’ money, it’s a violation of federal law.

Responding to nationwide reports of similar abuses, Congress in February 2012 restricted the use of TANF money at strip clubs, liquor stores and casinos.

The sponsor of the bill, HB 12, was Rep. Nate Gentry, R-Albuquerque, who said he’s worried that now that the legislation died, the state may not get in compliance by the deadline — which is mid-February of 2014 — and the $5.5 million could disappear.

“We would have to get (a new bill) passed with an emergency clause” next year, Gentry told New Mexico Watchdog Thursday.

“Some people have said we can get in compliance by getting a regulation promulgated by the Human Services Department,” Gentry said, “but I don’t know if that’s good enough (for the federal government).”

The Human Services Department oversees the distribution and tracking of EBT cards.

New Mexico Watchdog left a voicemail message with the department. As soon as we get a response, we’ll post it.

In a statement during the session, Gov. Susana Martinez said she would sign the bill if it landed on her desk.

“Cash assistance is designed to help feed struggling families, not for entertainment,” Martinez spokesman Greg Blair said. “Tightening the rules for EBT use in order to comply with federal requirements is only common sense.”

But why didn’t the bill get heard?

HB12 was passed through its final committee hearing on March 11 — five days before the legislative session ended.

Sen. Michael Sanchez, D-Belen, is the Senate Majority Leader and determines which bills are heard on the Senate floor. HB12 was on the Senate calendar in the final days of the session but was never taken off the table. In a 9-1 vote, Sen. Sanchez was the only member of the Senate Judiciary Committee to vote against HB12.

New Mexico Watchdog left a voicemail message with Sanchez Thursday as well. Again, as soon as we get a response, we’ll post it.

Although the percentage of withdrawals from EBT cards in New Mexico at places such as liquor stores and strip clubs is small, EBT abuse has been a national problem.

In the state of Washington, for example, in 2010 an investigation by a Seattle TV station revealed that 13,000 welfare recipients took out millions at casinos. The investigation prompted the state to initiate a crackdown that reduced that number to less than 100.