By: Louis J. Terminello, Esq. and Brad Berkman, Esq.
Gov. Ron DeSantis recently announced plans for Florida to become the first state in the country to amend its Temporary Assistance for Needy Families (TANF) State Plan to prohibit a long list of nonessential purchases using public assistance funds. The restriction applies to Temporary Cash Assistance (TCA) benefits distributed through Electronic Benefit Transfer (EBT) cards. Florida is working with the federal government on the change and expects to submit a formal request for approval soon.
“Florida has become the first in the nation to set guardrails on our TANF State Plan to stop these taxpayer-funded benefits from being used to purchase inappropriate, luxury, and non-essential goods and services,” Gov. DeSantis said in a statement. “Taxpayer-funded assistance should help families put food on the table, keep the lights on, purchase clothing, provide for their children and overcome barriers on the path toward independence.”
While federal and state law already bar EBT cards from being used for alcohol purchases, gambling and transactions at adult entertainment venues, casinos, gaming facilities and bingo halls, the proposed amended TANF State Plan would block TCA funds from being used to purchase the following:
- Tobacco and vaping products
- Drugs and other intoxicants
- Adult material
- Video games
- Entertainment tickets and theme park admissions or subscriptions
- Streaming and other entertainment subscriptions
- Tattoos, spa services and tanning bed sessions
- Psychic and fortune-telling services
Though there is no published data regarding the percentage of TCA funds used to purchase the above items, a generous interpretation of the proposal suggests that the state is attempting to shore up loose ends that may exist in the current program.
Theme park operators, entertainment venues, and tobacco and vape retailers that currently accept EBT-linked payments should begin reviewing point-of-sale systems and merchant category coding now, ahead of formal DCF guidance. Businesses in these categories may need to update payment-processing agreements once Florida’s plan receives federal approval, particularly given that entertainment tickets and theme park subscriptions are explicitly named in the proposed restrictions.
Our Hospitality, Alcohol and Leisure Industry practice group is closely tracking this development. Clients with questions about how these changes may affect point-of-sale operations or payment processing agreements should reach out today.
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