Changes approved by the Senate committee may have left the program too minimal to have a meaningful impact.
The state signed a $1 billion contract with the company in 2006 but canceled the contract three years later.
Food stamp recipients have been unable to fill out proof-of-eligibility forms online for two weeks because of a problem with the site.
Rep. Jud McMillin (R-Brookville) has pushed for legislation the past two years requiring welfare recipients to be drug tested.
Legislators considered measures this week that would mandate drug testing for some welfare recipients and give certain schools "family friendly" designations.
The proposed legislation requires all recipients of welfare dollars to take a written test that determines if they’re likely to abuse drugs.
The judge who heard counter lawsuits filed by the state of Indiana and IBM says neither party deserved to win.
Attorneys made their closing arguments in court regarding the dispute between the state and IBM, which was hired to remodel Indiana's welfare system.
After five weeks of testimony, the lawsuit between the state and IBM is drawing to a close.
The trial State of Indiana v. IBM began Monday. Governor Mitch Daniels will not testify in the case.