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Welfare recipients misusing cash withdrawals?

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    Report: EBT cards used in vice venues

  • Duration 3:07
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-- -- They see who knew you could spend welfare money as strip clubs turns out recipients can collect cash from their taxpayer funded or is it any AT and even those though even those in liquor stores and X rated -- and -- -- New York City assembly member Nicole.

-- -- attack guess -- upset about this and actually trying to enact some change.

Let's explain if you can there's there's a difference -- change.

Food stamps and then these ATM sort of cards that welfare recipients are seen as harsh restrictions yes.

Right now in New York food stamps are restricted you cannot use and to purchase cigarettes alcohol.

Any type of tobacco products a lottery tickets so what this legislation that we're trying to pass in Albany would do is extend that.

To those cash allowances which are alike electronic benefit transfer cards almost -- TM card.

That provides cash allowance which is supposed to be used for -- there.

Clothing real basic needs now how -- review or was it -- -- to -- -- -- post story with that on the front page over the weekend.

Well you know it's something that the post has been talking about for some time they've actually did a couple of reports on this in the past which is why you we started to put forth legislation on the issue we actually -- legislation prior but.

The issue is also that we stand to lose a 120 million dollars in federal funding.

If we do not comply with this but 2014 because it is something that under the middle class tax relief act.

Those signs into law by President Obama 2012.

We need to comply with a 2014.

It just seems like a no brainer to the average American citizens that.

You know why would there be these kinds of loopholes when we're facing such -- huge deficit in this country and and people are really upset about fraudulent activity -- You know I come from a district that has been devastated by hurricane sandy and certainly any -- comes into New York State is something that we need.

Desperately to make sure it's being used properly.

People who are temporary assistance we need to make sure they can get the funds -- really -- and how to do that unless we eliminate waste.

And you also want to get it on the on the merchants whether to strip club or with -- say these places they're -- they should be actually responsible and they should be legally liable.

Yet that this legislation would provide.

A provision for civil penalties for both the seller.

And the buyer as well as prevent ATMs that are locating casinos.

Liquor stores or.

Adult entertainment facilities to accept these EDT carts.

So it ends you know we're we don't try to do is prevent facilitating the money right where do you you suspect that they'll be a fight from from -- something.

Well I'll tell you in the state -- it passed a bipartisan support.

And so we'll have to see what happens -- -- I think it's certainly something that you know I in my colleagues in the Republican conference will be pushing for.

And I also think it's something that we can call on the governor to include in his.

Budget which comes out in February usually they said we reset the scene -- of office of temporary and disability assistance for comment.

We have not heard back we'll share with even if it's later in the week when we do.

Our rights Nicole now -- tactics didn't -- -- right well thank you Republican for you Brooklyn thanks so much thinking.

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