Louisiana bans welfare benefits usage at lingerie shops, jewelry stores – The Times

State welfare officials are tightening the reins on how residents can use cash benefits they receive from assistance programs.

Louisiana’s
Department of Children and Family Services (DCFS) issued an emergency rule
Thursday (March 20) that would eventually ban the use of welfare benefits at
jewelry stores, lingerie shops and other establishments that don’t allow customers under 18 years of age.

The
move comes a week after NOLA.com | The Times-Picayune reported Gonzales-based
lingerie store Kiss My Lingerie had been allowing its customers to pay for
adult specialty items with
their Electronic Benefits Transfer (EBT) card for eight months.

“We
want to ensure that these federal assistance benefits are used appropriately
and not at locations that do not help a family meet basic needs,” said
DCFS Secretary Suzy Sonnier. “This rule will not affect families who
currently use the program as intended, which is to provide food, shelter and
clothing for families.”

Under
the new rule, violating recipients would have their benefits stalled
for 12 months on the first offense, 24 months on the second and permanently on
the third. State officials said DCFS will rely on retailers and the public to
help report any suspected fraud, and will also randomly review
monthly transactions for possible use at any of the prohibited locations.

Regulations
cover the Family Independence Temporary Assistance Program, commonly known as
welfare benefits, and the Kinship Care Subsidy Program.

Cash benefits are loaded onto the EBT card, also known as the Louisiana
Purchase card. The Louisiana
EBT website says that residents can purchase cleaning products, pet
food and paper products with their EBT cards, and that some grocery stores
allow residents to get cash back from a transaction. However, under a March 2013 DCFS ruling, it became illegal to use cash benefits for tobacco, alcohol, lottery tickets, casinos and adult
entertainment. 

According to the
Louisiana EBT website, residents receiving cash benefits can also redeem
from ATMs displaying the Quest logo, although they may have to pay a surcharge.
Stores, however, must apply to the federal government to be able to accept EBT
cards as a form of payment.

According to DCFS, there are less than 10,000 people who get the cash
benefits, compared with 835,000 who use the EBT card strictly for the food
benefits.

State
Representative Chris Broadwater is partnering with DCFS to draft new
legislation supporting the emergency rule and allowing DCFS to fine
retailers who don’t follow the guidelines.

State officials say EBT
cards can no longer be used at:

• Any retail
  establishment that provides adult-oriented entertainment in which performers
  disrobe or perform in an unclothed state for entertainment purposes or adult
  bookstores or adult paraphernalia and any sexually oriented business
• Any nail salon
• Any tattoo, piercing,
  or commercial body art facility
• Any jewelry store
• Any amusement or
  video arcade
• Any bail bonds
  company
• Any nightclub, bar,
  tavern, or saloon
• Any cruise ship
• Any psychic business
• Any establishment
  where persons under age 18 are not permitted

******

Renita D. Young is
a business reporter based in Baton Rouge. Email her at ryoung@nola.com or call
504.352.2548. You can also keep up with all of her local updates on Twitter @RenitaDYoung and
through NOLA.com Baton Rouge
on Facebook.

Share and Enjoy