Located in:
- Temporary Assistance for Needy Families (TANF)
States that include TANF in the Combined State Plan must outline how the State will meet the requirements of section 402 of the Social Security Act including how it will:
(OMB Control Number: 0970-0145)
g. Implement policies and procedures as necessary to prevent access to assistance provided under the State program funded under this part through any electronic fund transaction in an automated teller machine or point-of-sale device located in a place described in section 408(a)(12), including a plan to ensure that recipients of the assistance have adequate access to their cash assistance (section 402(a)(1)(A)(vii) of the Social Security Act)
Current Narrative:
- Colorado has policies and procedures to prevent access to assistance through electronic benefit transfer transactions in an automated teller machine or point-of-sale device located in casinos, liquor stores, and retail establishments which provide adult-oriented entertainment.
(A) Legislation. Colorado State Legislature passed a law addressing the Prohibited Uses of Public Assistance Benefit Cards. This law addressed the use of Colorado Works benefits provided to a client on a Colorado EBT card account (Section 26-2-104 (2) (a)). The enacted Statute outlines that: Clients cannot access their EBT cash benefits from an ATM located at licensed gaming establishments; in-state simulcast facilities; commercial bingo facilities; stores that sell firearms; or retail establishments licensed to sell malt, vinous, or spirituous liquors.
(B) Rule. Colorado State Regulations have been revised to reflect prohibited locations, and includes increasing penalties when misuse occurs. County departments are required to discuss this information with the client during the eligibility interview and when the EBT card is issued.
(C) Education.
Clients. Information about establishments where EBT transactions are prohibited is provided to clients at the eligibility interview and when the client requests to receive cash benefits on an EBT card. This information is also posted in County Department Human/Social Service offices. Clients are also given an informational brochure. This brochure informs clients:
- Which types of transactions involve no fees or charges;
- Which types of transactions involve fees and/or surcharges; and
- Where they can access or withdraw their cash benefits (POS terminals at retail locations statewide and ATM machines).
The State requires clients to sign a disclaimer upon issuance of the EBT Card indicating they are aware of and understand the usage restrictions.
Colorado has three options for clients to receive their cash assistance: Colorado EBT card, direct deposit into a bank account, and enrolling in the KeyBank branded debit card. The KeyBank card provides the client more options for accessing cash; including online bill pay, while offering better opportunities for managing their money. The client can obtain their cash anywhere MasterCard is accepted.
County Staff. Caseworkers and county administrators have and will continue to receive information about the law. New and existing caseworkers will be consistently trained in providing accurate information to EBT card recipients. Compliance is monitored during the County Management Evaluations conducted by the State department.
(D) Monitoring. Monitoring will consist of running quarterly EBT usage reports to track businesses including marijuana shops allowing this activity. Businesses allowing this activity will be notified that they are out of compliance with Public Law 112-96, Section 4004 and of the specific steps to take to come into compliance.
Individuals’ transactions are also examined at least quarterly. Individuals who use prohibited ATMs are contacted by the State department and provided information about the appropriate use of EBT cards. Repeated inappropriate usage will result in disabling the card and requiring personal interaction with the county department for additional assessment, education and/or exploring access issues.
(E) Automated Prevention. Colorado’s EBT vendor implemented a new automated prevention strategy July 1, 2014. It flags transactions at prohibited businesses based on goods or services it provides using a “merchant category code.” When a client attempts an EBT transaction at a point of sale (POS) device or ATM located in one of these businesses, the transaction will be denied.
Fraud: Colorado reviews information from CBMS, interfaces with other systems, and fraud investigations to limit the amount of fraud and abuse in the program. Questionable cases are reviewed through a county investigation to certify the accuracy of the information, and determine if the client committed an Intentional Program Violation (IPV) or fraud. IPVs are processed by the county and are resolved by obtaining a "Waiver of Intentional Program Violation", through an administrative disqualification hearing, or through referral for civil or criminal action in a State or federal court. An IPV is committed when an individual makes a false or misleading statement or fails to disclose any action intending to mislead or conceal any eligibility factor on any application or other written communication. Fraud is subject to criminal action and must be proven beyond a reasonable doubt.