208.00.14 Ark. Code R. 001
The Middle Class Tax Relief and Job Creation Act of 2012 (Pub. L. 112-96). Section 4004 of the Act requires States (but does not require Tribes) to prevent the use of Temporary Assistance for Needy Families (TANF) assistance in electronic benefit transfer (EBT) transactions at specified locations. In particular, the law requires States receiving TANF grants "to maintain policies and practices as necessary to prevent assistance provided under the State program funded under this part from being used in any electronic benefit transfer transaction in any liquor store; any casino, gambling casino, or gaming establishment; or any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment," The law defines an electronic benefit transfer transaction as "the use of a credit or debit card service, automated teller machine (ATM), point-of-sale (POS) terminal, or access to an online system for the withdrawal of funds or the processing of a payment for merchandise or a service."
The State Plan also must include an explanation of how the State plans to ensure that (1) recipients of the assistance have adequate access to their cash assistance, and (2) recipients of assistance have access to using or withdrawing assistance with minimal fees or charges, including an opportunity to access assistance with no fee or charges, and are provided information on applicable fees and surcharges that apply to electronic fund transactions involving the assistance, and that such information is made publicly available.
The Department of Workforce Services will implement the following steps to restrict the use of TANF EBT cards at the specified establishments. These steps include:
Step One - Establishment Identification
Step Two - Federal Restrictions - Merchant Notification step Three - Federal Restrictions - Participant Notification Step Four - Federal Restrictions - Staff Notification Step Five - Development of Program Policies Step Six - Development of EBT Transactions Monitoring
The implications for restricting TANF benefit access at inappropriate locations is a reduction in the number of cash access locations available to EBT cash recipients. This is especially true in rural locations that have very few alternatives for cash access.
While use of or access to TANF benefits in an EBT transaction is limited as described above, the department is also required by federal law to ensure TANF participants have adequate access to their cash benefits. "Adequate access" to TANF benefits is determined on a case-by-case basis and may vary depending on individual participant strengths and barriers, including access to transportation.
When a TANF client expresses concern with access to their cash benefits or a worker determines a TANF participant does not have adequate access to benefits, the department will take reasonable steps to ensure adequate access for the participant.
Currently, TANF participants may use an ATM two times per month for free. Some ATMs and retailer POS terminals may surcharge your account. A surcharge is different from a transaction fee and may or may not be charged by a bank or retailer each time the TANF participant utilizes their card to access their cash benefits. There will be a warning about this fee. TANF participants do not have to pay the fee if they choose not to get their cash at locations where the fee is charged.
Some ATMs and most retailer POS terminals do not surcharge. TANF participants are encouraged to find a location that does not surcharge.
After the second cash withdrawal, TANF participants are charged a transaction fee . If they do not have a sufficient remaining balance in their account to pay this fee, the transaction will be denied.
208.00.14 Ark. Code R. 001