Rep. Cusack on EBT Reform

The Department of Transitional Assistance announced Wednesday that it will crack down on welfare recipients with high EBT card balances and those who accumulate thousands of dollars in food stamps.

Cash assistance recipients with balances above $1,500 will be notified to see if they still need assistance, and EBT cards with balances exceeding $2,500 will be closed, according to a summarization of the department's announcement by the Boston Herald. 

The Herald also reported that the DTA will begin contacting recipients of the federal Supplemental Nutrition Assistance Program – commonly known as food stamps – with balances greater than $5,000.

In addtion, Gov. Deval Patrick now has before him legislation passed by the House and Senate that would reform the EBT system. In a letter released Tuesday afternoon, Braintree's Rep. Mark Cusack discusses the House-passed bill. See the full letter below.

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Over the past few weeks, I along with a majority of the members of the Massachusetts House of Representatives passed legislation that would institute significant reforms to the electronic benefit transfer (EBT) system and the Department of Transitional Assistance (DTA).  

EBT reform has been a top priority of the House and with this legislation the House is affirming its commitment to stopping fraud.

This law will safeguard statewide programs that provide integral support to vulnerable segments of the population, while simultaneously implementing strong, targeted policies that establish oversight of the DTA and requires thorough verification procedures.  It will root out anyone abusing public benefits, something that is not happening now.  

Specifically, the legislation that I voted for requires the following reforms of the EBT program:

• Requires the EOHHS to establish a computerized integrated eligibility system
(IES) to monitor eligibility requirements  by cross checking the social security numbers of applicants and recipients with information from several state and
federal databases before funds are dispersed in order to avoid duplication and 
fraud;

• Requires the EOHHS to file an annual status report on the IES that includes 
specifics regarding the number of people disqualified from public assistance 
following a discrepancy identified by the IES

• Establishes a  Bureau of Program Integrity within the EOHHS to monitor and 
correct deficiencies in the programs administered by the office;

• Allows for the sharing of tax return information with agencies that provide benefit programs;

• Requires the DTA to consider the financial value of business assets, proof of 
income or assets of unverified applicants, and the assets or income of responsible 
relatives when determining eligibility;

• Requires that the assets and income of immigration sponsors be considered when determining and applicant’s eligibility for assistance and requires the discovery of undisclosed business assets and income or assets of responsible relatives or immigration sponsors to be potentially disqualifying;

• The DTA must establish a procedure for the proper use of social security 
number alternatives, create a system to verify school attendance, and execute an agreement with the federal government to become a state law enforcement bureau in order to coordinate fraud enforcement efforts

• Requires a photo to be placed on the EBT card for each eligible household 
member over the age of 18 to deter fraud;

• Establishes a state verification and eligibility task force that consists of the 
State Auditor, Attorney General, Inspector General, Treasurer, and Secretary of 
Administration and Finance that coordinates efforts with the Bureau of Program 
Integrity;

• Requires the development of a system in which the DTA will work with state and local law enforcement agencies in order to utilize fingerprinting comparisons in instances of trafficking and fraud;

• Increases the potential fines on retailers who violate EBT prohibitions;

• Increases recipient and retailer education;

• Requires business to apply online to accept EBT cards at point of sale;

• Prohibits out-of-state EBT card use, except in state contiguous to Massachusetts;


• Establishes an online payment system for rent and utilities and outlines gradual 
implementation;

• Requires the DTA to submit its annual report to the House and Senate 
Committees on Ways and Means on or before November 1


In 2011 and 2012, I voted to ban the use of EBT cards in tattoo parlors, nail salons, casinos, and strip clubs, as well as prohibited the use of EBT cards in transactions for alcohol, lottery tickets, tobacco, firearms, professional services, admission to performances, travel services, health clubs, jewelry, rental of goods or property and payment of taxes or bail. 

It is also now a crime for a person to knowingly transfer, acquire, alter, or possess an electronic benefit transfer card or access device in any manner not authorized by state or federal law.  Penalties for such offenses vary from fines to jail time based upon the cash value of benefits being trafficked.  The state lottery commission and the alcoholic beverage control commission may suspend or revoke the license of any business owner who is found to have knowingly violated this statue.  

I understand that it appears simple to make applicants produce a Social Security number and stop the use of self declaration when applying for public assistance, but there is a federal statute that will not allow us to do so.  Our housing authorities rely heavily on federal funding that we cannot jeopardize by mandating Social Security numbers be given.  Also, to make these exemptions means that the domestic violence and expectant mother exemptions would be 
eliminated.  

Like many of you, I am very upset by the recent reports of rampant fraud and abuse coming from out state agencies.  It is vital that we rid our system of waste and only allow those who qualify and need our assistance to receive benefits.  These changes will do that.  They provide proper oversight and will get these departments back on track.  In short, I have taken every responsible step to correct EBT abuse and I am committed to seeing that these reforms are 
implemented.