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:
The Commonwealth has enacted a state law to prohibit the use of cash assistance, including TAFDC, in electronic benefit transfer (EBT) transactions at liquor stores, casinos, gambling casinos or gaming establishments, and retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment, as well as other establishments not identified in Section 408(a)(12). Retailers face fines from $500 for a first offense, $500 to $2500 for a second offense and not less than $2500 for a third offense. See M.G.L. c. 18, § J. In addition, the Commonwealth has prohibited the use of cash assistance held on EBT cards to purchase alcoholic beverages, lottery tickets, gambling, adult oriented material or performances and other items and services. See M.G.L. c. 18, § I. Parents or caregivers who violate the purchasing provisions must pay the Commonwealth back for the prohibited purchase. For a second offense, the parent or caregiver is disqualified from benefits for two months and must pay the Commonwealth back for the prohibited purchase. For a third offense, the parent or caregiver is disqualified from benefits permanently and must pay the Commonwealth back for the prohibited purchase.
Posters are displayed in all local offices informing families of the prohibited establishments and purchasing restrictions. The application for TAFDC benefits includes a penalty warning informing families of prohibited items and services as well as the penalties for violations. At application and redetermination, all families applying for or receiving TAFDC are provided a brochure that includes information on prohibited establishments, prohibited purchases and penalties. Retailers are notified about the law and its penalties. Local law enforcement agencies are notified about retailers who are found to have violated such law. In addition, the Department offers posters and training for retailers on the restrictions.
In an ongoing effort, the Department continues to work with its EBT vendor on blocking the use of EBT cards in prohibited establishments. The Department and its vendor are jointly researching potential prohibited establishments. The Commonwealth provides its EBT vendor with a final list of prohibited establishments monthly; the EBT vendor blocks the designated establishments’ Point of Service (POS) device and ATMs on site.