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May 12, 2014

Maine blocks EBT cards at dozens of locations

The state has begun blocking Electronic Benefit Transfer cards at over 40 locations as part of a 2012 law seeking to crack down on welfare and food stamp abuse.

The Maine Department of Health and Human Services is expected to block EBT card transactions at ATMs in more than Maine 200 liquor stores, strip clubs, bars and other retail locations by August, according to a press release from Gov. Paul LePage’s office today.

The measure, signed into law by the governor two years ago this month, bars EBT use at retail establishments that receive more than 50% of its revenue from liquor sales, gambling and adult-oriented entertainment. Under the law, using an EBT card at a prohibited location will be considered an intentional program violation in a three-strikes-you’re-out system.

First- and second-time offenders will receive one- and two-year suspensions from the state’s EBT program, respectively, while third-time offenders will face permanent suspension.

“This initiative is designed to protect public funds by blocking inappropriate and illegal use of state and federal welfare benefits,” LePage said in the release. “To think these dollars may have been spent on liquor and adult entertainment is incomprehensible, and this administration will not tolerate it.”

Locations already blocked include PT’s Showclub, Foreplay Sports Pub and Styxx in Portland; Diamond’s Gentlemen’s Club in Bangor; and Joka’s Discount Beverage in Waterville.

The DHHS has a contract with EBT vendor Xerox to process the work for about $92 per ATM location that is blocked. Xerox is used for similar work in California and Massachusetts.

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