Senator Maria Chappelle-Nadal Co-Sponsors Bill to Reduce Public Assistance Fraud & Abuse

Jefferson City — Sen. Maria Chappelle-Nadal, D-University City, is co-sponsoring legislation designed to reduce instances of fraud and abuse for recipients of temporary assistance for needy families (TANF). Senate Bill 215, sponsored by Sen. Will Kraus, R-Lee’s Summit, and co-sponsored by Sen. Chappelle-Nadal, prohibits TANF recipients from using any electronic benefit transfer (EBT) funds in any liquor store, casino or other gaming establishment, any adult-oriented business, any place of amusement or entertainment recreation, and games or athletic events.  The measure also prohibits the use of public assistance funds to purchase alcoholic beverages, tobacco products or lottery tickets. Violators would be required to reimburse the Department of Social Services.

“Missouri taxpayers who are providing assistance to help low-income families, single parents and others make ends meet must be reassured those tax dollars are not being used frivolously,” Sen. Chappelle-Nadal said. “Public assistance is meant to help struggling families put food on the table and to provide shelter, clothing and other basic necessities.  Liquor, cigarettes and lottery tickets do not qualify under any circumstance, and taxpayers have a right to know their dollars are being spent wisely.  These types of fraud and abuse undermine the whole rationale for helping needy families.”

  Under SB 251, individuals, store owners and other establishments that accept TANF cash transfers on EBT cards may not allow those funds to be used to purchase the items prohibited in the legislation.  Those who knowingly violate the act face a $500 fine for the first offense and up to a $1,000 fine for subsequent offenses. 

TANF recipients who violate the provisions of SB 251 may be charged with a Class D misdemeanor, unless the face value of the EBT card is less than $500, in which case the offense becomes a Class A misdemeanor.  Those found guilty of unlawfully using or receiving public assistance benefits could face up to 120 days in the Department of Corrections unless full restitution is made to the state of Missouri within 30 days of the execution of sentence.

  “This bill is simply an attempt to make sure that the people who are receiving public assistance are using that money properly and in accordance with state law,” Sen. Chappelle-Nadal said.  “We are not singling out TANF recipients for drug testing or any other discriminatory idea that lawmakers have considered in previous sessions.  When we provide tax credits to businesses to create or retain jobs, we expect those businesses to be accountable and to use those tax dollars responsibly.  The same principle should apply to public assistance.”

To provide a measure of accountability, SB 251 requires the Department of Social Services to establish and maintain a statewide toll-free hotline, to be operated eight hours each day during the work week, to receive complaints of suspected public assistance fraud. 

The Senate Judiciary and Civil and Criminal Jurisprudence Committee will hold a public hearing on Senate Bill 251 Monday night upon adjournment of the Missouri Senate.