MEMORANDUM

DISCUSSION:

The purpose of this memorandum is to inform staff that Senate Bill 251 (SB 251) increases penalties for Food Stamp, Temporary Assistance (TA), and MO HealthNet fraud. The enactment of this legislation heightens the importance of communicating to applicants and participants their rights and responsibilities under the Food Stamps, TA and MO HealthNet programs.

SB 251 amends RSMo 578.375 to 578.389. Effective August 28, 2013, these provisions make unlawfully:

• Receiving/Using,
• Converting, or
• Transferring

public assistance benefits (which includes Food Stamps, TA, and MO HealthNet), or electronic benefit transfer (EBT) cards with a value of $500 or more a class D felony for the first offense. A second felony offense will result in a class C felony. If the value is less than $500 it will be a class A misdemeanor for the first offense and a class D felony for the second offense.

Additionally, those found guilty of felony unlawfully receiving, converting, or transferring public assistance benefits or EBT cards shall serve 120 days in the Department of Corrections unless such person pays full restitution within 30 days of the date of execution of the sentence. If they are placed on probation for the offense they cannot be released from probation until full restitution has been paid.

Include information on these fraud provisions when providing the 0105.025.15 Explanation Required of All Programs for MO HealthNet and TA, and the 1120.005.10 Explanation of Rights and Responsibilities for the Food Stamp program.

SB 251 also enacts restrictions on locations where TA EBT cards may be used and on items that may be purchased using a TA EBT card. Existing federal law restricts use of TA EBT in casinos, liquor stores, and adult entertainment establishments. See Income Maintenance memorandum IM-24 One-time Notice to Temporary Assistance Participants dated 2/28/13.

SB 251 adds that TA EBT shall not be used:

• for the purchase of:
  • Alcoholic beverages
  • Lottery tickets
  • Tobacco products
    OR
• for any transaction in any place, or for any item that is primarily marketed for or used by adults eighteen or older and/or is not in the best interest of the child or household.

These restrictions are effective August 28, 2013.

Additional memorandums will be issued in August with manual and form revisions to implement this legislation. Until those are available, see Income Maintenance memorandum IM-46 Important Information about Electronic Benefit Transfer (EBT) Transactions Form dated May 7, 2013, and use the IM-3EBT form at applications and other participant contacts to inform applicants and participants of appropriate use of the EBT card.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

AC/jo