California welfare recipients no longer enjoy cash benefits from ATM machines

California welfare recipients no longer enjoy cash benefits from ATM machinesState officials have said that California welfare recipients can no longer withdraw cash benefits from ATM machines at gentlemen's clubs.

The Los Angeles Times has reported that machines in 17 clubs were on a list of approved sites for using welfare debit cards, posted on a state Web site. Between January 2007 and December 2009, about $12,000 in welfare benefits was withdrawn at those clubs.

The newspaper also said that Gov. Arnold Schwarzenegger ordered the club machines taken off the list the day after reporters inquired about them.

A spokeswoman, Lizelda Lopez, said in an e-mail to the Times on Tuesday that the Department of Social Services has "taken steps to deactivate ATMs in adult entertainment clubs."

Last week, the Times reported that ATMs in about half of California's casinos were on the approved list, prompting an order by Schwarzenegger to have them removed. The governor also ordered the department to re-examine its entire list of authorized ATMs.

It has also been reported that at least two strip club managers told the Times the club ATMs are provided by and serviced by independent companies.

Merle Matias, manager of Sam's Hofbrau in Los Angeles, said, "If there's a way that the ATM can reject their card if they're on welfare, I'm really and truly all for that. I don't think it will affect us at all." (With Inputs from Agencies)