Ala. Admin. Code r. 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transactions, the amount withdrawn and/or used; for unauthorized FA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.
Notes
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.
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