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Carrell introduces legislation to combat fraud and abuse

January 23, 2011 By Ben Sclair

Sen. Mike Carrell, R-Lakewood, has introduced three bills intended to combat fraud, abuse and waste within state-run public-assistance programs. Carrell’s measures are part of a package of legislation unveiled at a Thursday news conference, which included bills from Sens. Joseph Zarelli, R-Ridgefield, and Don Benton, R-Vancouver.

Senate Bill 5327 would limit the use of Electronic Benefit Transfer cards to locations where the benefit of the child receiving the assistance is paramount. The measure would make the use of EBT cards at certain adult-oriented locations a gross misdemeanor.

“There is evidence of EBT cards being used at firearm dealers, liquor stores, tattoo parlors, tobacco outlets, and strip clubs,” Carrell said. “These cards are supposed to be used for the benefit of children – not adults – and children are not using these cards at strip clubs or to buy alcohol. We need to make certain the funds are being used in a manner intended by taxpayers.”

Carrell has also proposed Senate Bill 5329, which would create a special-investigations department within the state auditor’s office. Currently, all authority for fraud and abuse investigations related to state Department of Social and Health Services programs lies within DSHS. This measure would allow the state auditor to handle all cases of fraudulent activity, ensuring they are investigated thoroughly and, if necessary, referred to the appropriate authorities.

In another effort to combat fraud, Carrell has proposed randomly auditing taxpayer-subsidized daycare providers working with the Working Connections child care program. Senate Bill 5331 would require regular auditing of daycare facility attendance records to ensure each facility is receiving appropriate funding. Thirty percent of licensed facilities and 50 percent of unlicensed facilities would be audited each year.

“Each biennium the state spends 102 million dollars on subsidies for unlicensed child care providers,” Carrell said. “Currently, we have no way of ensuring the integrity of these programs. Random auditing would allow the state to ensure that the funds are being appropriately allotted to each facility.”

SB 5327, SB 5329 and SB 5331 have been referred to the Senate Human Services and Corrections Committee.

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Comments

  1. Evelina Schmauder says

    January 24, 2011 at 6:22 am

    Thank you Senator Mike Carrell!
    There is so much fraud, abuse and waste in the DSHS system.
    Thank you,
    Evelina Schmauder
    Early Learning Child Care Provider

  2. John Arbeeny says

    January 24, 2011 at 8:35 am

    Hi Mike!

    Just read the bill and gambling establishments are also on the list. Any idea of how much money from the EBT cards has been lost to the prohibited establishments? Does the State keep a record of all transactions on each EBT card similar to personal credit cards?

    Thanks for your efforts to keep the system honest.

    John Arbeeny

  3. Malcolm Russell says

    January 24, 2011 at 11:59 am

    Many people make the right choices and don’t abuse the system, but fraud, misuse and abuse are still much too rampant. As is the intention with these bills, we must focus these limited resources on those that need it the most.

    Washington state just figured out that it over-paid more than $20 million in ineligible health benefits through it medical coverage plan… so is it possible we are wasting or losing even more money by way of EBT abuse?

    Did you know that a person can be earning as much as $17.60/hour and still qualify for EBT or food stamps. It just depends on how big you CLAIM your family is and how many long-term “guests” you CLAIM you have living in your house, and you don’t even necessarily have to be here legally to receive money through the program. That is a lot of trust, and thus a lot of potential for abuse.

    We should feel for all who have needs, but we need to verify and if the state can’t take care of ALL of the needy – then we must focus our resources on the MOST needy of our citizens first. I am suspicious that our state food stamp EBT program is too big, too open and too easy to game given our state budget right now. Thank you Senator Carrell…

  4. patricia says

    February 2, 2011 at 12:47 am

    as a cashier for walmart at the first of the month we would see hispanic people bring in 5-7 ebt cards and buy 1 thing get $100.00 cash back pull out another card samething then another card and so on.what also burns me up they all drive nice cars brand new ones,gold watches,rings, necklaces.I even seen grown men buying crab with there foodstamps.DSHS needs to watch what they buy families need to buy good health food not see how much junk they can buy and get mad at us becuase energy drinks wont ring up as food thats covered by EBT.

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