MEMORANDUM

DISCUSSION:

The purpose of this memorandum is to introduce manual revisions that incorporate the requirements of Senate Bill 251 (2013) which created 208.024 Revised Statutes of Missouri (RSMo) effective August 28, 2013. This law prohibits use of TA benefits on an Electronic Benefit Transfer (EBT) card at certain establishments and restricts items that may be purchased at any establishment. This memorandum reviews the restrictions and penalties for the participant using the TA EBT card and the establishment's penalties for knowingly accepting the TA EBT card.

208.024 RSMo prohibits use of Temporary Assistance benefits issued on an EBT card in any liquor store, casino, gambling casino, or gaming establishment, retail establishment which provides adult-oriented entertainment where performers disrobe or perform in an unclothed state, or 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 interests of the child or household. TA benefits are to be used to care for the children in the household. 

Communicate to applicants and participants their rights and responsibilities under the Food Stamps 1120.005.10 Explanation of Rights and Responsibilities, TA 0105.025.15.05 Temporary Assistance Program Explanation, and/or MO HealthNet 0105.025.05 INTERVIEW PROCEDURES.  208.024 RSMo heightens the importance of stating to TA participants benefits are to be used to care for the children in the household. 

Eligible TA participants who make an EBT purchase in violation of this section must reimburse the Department of Social Services for such purchases, and individuals, store owners, or proprietors that knowingly accept TA EBT cards in violation of this section shall be punished by a fine.

TA participants are prohibited from using their TA EBT card, and individuals, store owners, or proprietors are prohibited from accepting TA EBT transactions in the following establishments:

• liquor stores,
• casinos,
• gambling casinos,
• gaming establishments,
• adult oriented entertainment in which performers disrobe or perform in an unclothed state, or
• any places primarily marketed for or used by adults eighteen or older

The following items are prohibited for purchase with an EBT card:

• lottery tickets,
• alcohol,
• tobacco products, and
• any item that is primarily marketed for or used by adults 18 or older and/or is not in the best interest of the child or household.

TA participants who make an EBT purchase in violation of this statute shall reimburse the Department of Social Services for such purchase through the claim process.  A memorandum on the claims process to require reimbursement for purchase in restricted locations or of restricted items will be issued soon. If reports of inappropriate use of TA are received on August 28 or after, please use current local processes for claims referrals.

Using the TA EBT card in a prohibited location or to purchase prohibited items is a misuse of TA. If the TA payee demonstrates an inability to manage funds by not using the TA benefits in the best interest of the child(ren), then TA benefits can be paid directly to a provider (creditor), or an alternate (protective) payee may be determined.

Any business establishment or individual that knowingly accepts TA EBT cards in violation of 208.024 RSMo may be punished by a fine of:

• Not more than $500 for the first offense.
• Not less than $500 or more than $1,000 for the second offense.
• Not less than $1,000 for the third or subsequent offense.

The Family Support Division does not have any authority to enforce penalties on retailers or business establishments. If reports are received of retailers accepting TA EBT in violation of 208.024 RSMo, refer the report to the Investigation Unit at, DLS.ReportFraud@dss.mo.gov, telephone 877- 698-0760 Monday through Friday from 8:00 am to 5:00 pm.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.
• Review these restrictions and penalties when informing all TA applicants/recipients of their rights and responsibilities.

AC/dh