Ala. Admin. Code r. 660-2-2-.41

Current through Register Vol. 43, No. 1, October 31, 2024

Section 660-2-2-.41 - Unauthorized Electronic Benefits Transfer (EBT) Transactions And Unauthorized FA Expenditures

(1)Legal Basis

(a) Federal law requires states to prevent assistance provided under the FA Program from being used in any EBT transaction in liquor stores, gambling establishments, and strip clubs. State law prohibits the withdrawal or use of benefits in an EBT transaction in a retail establishment the primary purpose of which is the sale of alcoholic beverages, a casino, a tattoo or body piercing facility, a facility providing psychic services, or an establishment that provides adult oriented entertainment in which performers disrobe or perform in an unclothed state (strip clubs). Use of the EBT card in any of the locations listed to access benefits and/or to purchase merchandise/goods or services is referred to as unauthorized EBT transactions.

(b) Use of any portion of the FA benefits whether in cash or an EBT transaction to purchase alcoholic beverages, tobacco products or lottery tickets is also prohibited. Purchase of any of these items is referred to as unauthorized FA expenditures. Actions taken to prevent unauthorized EBT transactions and to prevent unauthorized FA expenditures include client education about the spending restrictions and financial penalties for noncompliance.

(2) Penalties for Noncompliance

(a) For the first instance of noncompliance, the assistance unit will be disqualified from receiving benefits for a one month period.

(b) For the second instance of noncompliance, the assistance unit will be disqualified from receiving benefits for a three month period.

(c) For the third instance of noncompliance, the assistance unit may continue to receive benefits if otherwise eligible but the grantee relative is permanently disqualified from receiving benefits as a grantee relative and if included in the assistance unit is permanently disqualified to be a member of the assistance unit. Payment to the assistance unit will be made to another relative living in the home or other protective payee pursuant to Department operating guidelines. The disqualified grantee relative may continue to receive benefits for other eligible assistance unit members for a temporary period while appointment of another grantee relative/protective payee is being processed.

(d) In addition to penalties in (a)-(c) above the recipient must reimburse the Department as follows: For unauthorized EBT transactions, the amount withdrawn and/or used; for unauthorized FA expenditures, the amount of the purchase. Reimbursement in the full amount must be made before the assistance unit can again receive benefits following a period of disqualification as described in (a) and (b) above or before another relative living in the home or a protective payee can be approved to receive as described in (c) above.

(e) Disqualifications defined herein may not run concurrently with any other program sanctions or disqualifications.

(3) Definitions

(a) Unauthorized EBT Transaction- Use of an EBT card to withdraw FA benefits or process a payment for the purchase of merchandise/goods or services from an ATM or POS device physically located in a liquor, wine or beer store, gambling establishment, strip club, tattoo or body piercing facility or a facility providing psychic services.

(b) Liquor, wine or beer store - Any retail establishment selling exclusively or primarily alcoholic beverages.

(c) Gambling establishment- A retail establishment offering casino, gambling or gaming activities as the primary purpose of the establishment.

(d) Strip Club - Any retail establishment providing adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.

(e) Tattoo or body piercing facility - Any retail establishment selling exclusively or primarily tattoo or body piercing services.

(f) Psychic services facility - Any retail establishment selling exclusively or primarily psychic services.

(g) Unauthorized FA expenditures- Use of any portion of the benefits whether in cash or an EBT transaction for the purchase of alcoholic beverages, tobacco products or lottery tickets.

(h) Alcoholic beverages - Any alcoholic, spirituous, vinous, fermented, or other alcoholic beverage or combination of liquors and mixed liquor, a part of which is spirituous, vinous, fermented, or otherwise alcoholic, and all drinkable liquids, preparations or mixtures intended for beverage purposes, which contain one-half of one percent or more alcohol by volume, and shall include liquor, wine and beer.

(i) Tobacco products - Any product that contains tobacco such as cigars, cigarettes, pipe and chewing tobacco and associated paraphernalia.

(j) Lottery ticket - Any ticket purchased for a game of chance such as instant lotteries, general lotteries and lotto operated by a state government.

Ala. Admin. Code r. 660-2-2-.41

New Rule: Filed November 5, 2013; effective December 10, 2013.

Amended by Alabama Administrative Monthly Volume XXXII, Issue No. 12, September 30, 2014, eff. 10/16/2014.

Author: Melody Armstrong

Statutory Authority: Social Security Act, Title IV-A; 45 C. F. R. 262 and 265; State Plan for Title IV-A; P.L. 112-96; Code of Ala. 1975, Title 38.