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:
(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)
Maryland’s DHS operates an electronic benefits transfer system under agreement with the United States Department of Health and Human Services and pursuant to United States Department of Agriculture regulations. A TANF grant is typically paid via the electronic benefits transfer system. The Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112–96), provides that individuals and families who are receiving federally funded cash assistance may not use an electronic benefits transfer card for any purpose at a liquor store, adult entertainment venue, or gambling casino.
Maryland provides all applications and customers the opportunity to receive their assistance through multiple channels such as direct deposit, paper check, and Electronic Benefits Transfer cards. Benefits on EBT cards are available for use at any location that accepts card payments as well as any ATM machine. Applications and recipients are also provided with the number to call in the event their EBT card is lost, stolen, or destroyed. This number can be found on the DHS website and approval notices as well as the customer portal website.
The state of Maryland provides penalties for non–compliance with program requirements that include the suspension of the use of the cash access portion of the card for specific time periods. Effective October 1, 2014, all TANF applicants and recipients are required to sign an acknowledgement that they understand the prohibition against using their electronic benefits transfer cards at an establishment whose primary purpose is gambling, the sale of liquor, or an adult entertainment venue where individuals or groups disrobe for an audience.
Customers who violate the prohibition against using their cards at unauthorized locations will receive a warning notice that a subsequent violation may result in the use of their electronic benefits transfer cards for cash assistance benefits being suspended. Customers who have twice violated federal law and state policy prohibiting the use of EBT cards at unauthorized locations will no longer have their cash assistance payments put onto their electronic benefits transfer cards. While the cards will still be active for use at Food Supplement Program retailers for those recipients, DHS will deliver cash assistance payments by direct deposit or check. Suspension of the card for cash benefits is for a minimum of one year for the second violation and permanently for a subsequent violation after electronic benefits transfer use has been reinstated.