CHAPTER 14. ELECTRONIC BENEFITS TRANSFER
IC 12-13-14
Chapter 14. Electronic Benefits Transfer
IC 12-13-14-1
Definitions
Sec. 1. (a) As used in this chapter, "automated teller machine"means an electronic hardware device owned or operated by or onbehalf of a financial institution or retailer that is capable ofdispensing currency and responding to balance inquiries through theuse of a magnetic stripe card issued by or on behalf of the divisionfor distribution of assistance through an EBT system as described inthis chapter.
(b) As used in this chapter, "commission" refers to the electronicbenefits transfer commission established by this chapter.
(c) As used in this chapter, "Department" refers to the UnitedStates Department of Health and Human Services.
(d) As used in this chapter, "EBT program" means an electronicbenefits transfer program.
(e) As used in this chapter, "financial institution" means a bank,trust company, savings institution, credit union, or any otherorganization:
(1) whose principal business activity is providing banking orfinancial services to the public; and
(2) that is organized, supervised, and authorized to do businessin Indiana under IC 28 or Title 12 of the United States Code.
(f) As used in this chapter, "food retailer" means a retailer that:
(1) sells food items to consumers; and
(2) has been authorized under 7 CFR 278 to participate in thefood stamp program.
(g) As used in this chapter, "person" includes any individual orentity described in IC 6-2.5-1-3.
(h) As used in this chapter, "point of sale terminal" means anelectronic hardware device that is:
(1) used at a retailer's place of business where consumers payfor goods or services; and
(2) capable of:
(A) initiating a request for authorization of a purchase oftangible personal property;
(B) disbursing currency from an account;
(C) initiating a balance inquiry for an account; or
(D) distributing assistance through an EBT system asdescribed in this chapter.
(i) As used in this chapter, "primary business" means more thanfifty percent (50%) of the gross retail income (as defined inIC 6-2.5-1-5) attributable to the location or premises where thebusiness is located.
(j) As used in this chapter, "retailer" means a person that, in theordinary course of business:
(1) sells or transfers tangible personal property; or
(2) provides or performs services for compensationto consumers.
(k) As used in this chapter, "Secretary" refers to the Secretary ofthe United States Department of Agriculture.
As added by P.L.15-1996, SEC.2. Amended by P.L.257-1997(ss),SEC.10.
IC 12-13-14-2
Power of division to implement EBT program for food stampassistance; contract with vendors; rules
Sec. 2. The division may do the following:
(1) Under:
(A) 7 U.S.C. 2016(I); and
(B) 7 CFR 272, 274, 276, 277, and 278;
make an application for approval from the Secretary forimplementation by the division of an EBT program in Indianafor food stamp assistance.
(2) If required at any time by federal law or regulation, make anapplication for approval from the Department forimplementation by the division of an EBT program in Indianafor assistance under the Title IV-A assistance program asprovided in 42 U.S.C. 601 et seq.
(3) After receiving approval from the Secretary and, if required,the Department, implement a fully functional and operatingEBT program under this chapter to provide an alternativemethod of delivering:
(A) food stamp assistance; and
(B) assistance under the Title IV-A assistance program inIndiana.
(4) Contract with vendors for supplies and services toimplement an EBT program according to IC 5-22-17.
(5) Adopt rules under IC 4-22-2 to implement the EBT program.
As added by P.L.15-1996, SEC.2. Amended by P.L.257-1997(ss),SEC.11; P.L.49-1997, SEC.44; P.L.2-1998, SEC.37.
IC 12-13-14-3
Electronic benefits transfer commission; members; terms;vacancies; chairperson; no reimbursement for expenses
Sec. 3. (a) The electronic benefits transfer commission isestablished.
(b) The commission consists of eight (8) members appointed bythe secretary of family and social services as follows:
(1) Two (2) employees of the office of the secretary of familyand social services.
(2) Two (2) members of the Indiana Grocers and ConvenienceStore Association, nominated by the chief executive officer ofthe Indiana Grocers and Convenience Store Association forconsideration by the secretary of family and social services.
(3) Two (2) members of the Indiana Bankers Association,nominated by the chief executive officer of the Indiana BankersAssociation for consideration by the office of the secretary of
family and social services.
(4) Two (2) persons representing recipients of food stampbenefits or Aid to Families with Dependent Children (AFDC)benefits. One (1) person shall be nominated by the Indiana Foodand Nutrition Network, and one (1) person shall be nominatedby the Indiana Coalition for Human Services for considerationby the secretary of family and social services.
(c) The terms of office shall be for three (3) years. The membersserve at the will of the secretary of family and social services. Avacancy on the commission shall be filled by the secretary of familyand social services in the same manner the original appointment wasmade.
(d) The secretary of family and social services shall appoint theinitial chairperson from among the members of the commission. Thecommission shall meet on the call of the chairperson. When thechairperson's term expires, the commission shall elect a newchairperson from among the membership of the commission.
(e) The division shall provide staff needed for the commission tooperate under this chapter.
(f) The commission members are not eligible for per diemreimbursement or reimbursement for expenses incurred for travel toand from commission meetings.
As added by P.L.15-1996, SEC.2. Amended by P.L.1-2009, SEC.101.
IC 12-13-14-4
Recommendations of commission to division on implementation ofstatewide EBT program
Sec. 4. The commission shall make recommendations to thedivision and advise the division on the following issues:
(1) Implementing a fully functional and operating EBT programstatewide.
(2) How Indiana's EBT program implemented under this chaptercan be administered in accordance with:
(A) federal requirements under 7 U.S.C. 2016(i); and
(B) federal regulations under 7 CFR 272, 274, 276, 277, and278.
(3) Whether to implement the National Automated ClearingHouse Association guidelines to the extent that the guidelinesare not inconsistent with federal law.
(4) Whether to implement the federal electronic funds transferrules.
(5) Whether the division should seek a waiver from theSecretary that would allow retailers to identify check-out lanesthat are equipped to handle EBT transactions.
(6) Providing retailer and recipient training.
(7) Creating an EBT program in Indiana that is compatible withEBT programs in other states to the extent possible.
(8) Rules necessary to provide adequate financial safeguardsand other protections for recipients.
(9) Any other issues concerning the establishment and operation
of an EBT program.
As added by P.L.15-1996, SEC.2. Amended by P.L.257-1997(ss),SEC.12.
IC 12-13-14-4.5
Distribution of cash benefits through automated teller machines orpoint of sale terminals; retailers eligible for participation in EBTsystem; penalties
Sec. 4.5. (a) Except as provided in this section, the division maydistribute cash assistance benefits to a person who is eligible forassistance under the Title IV-A assistance program though anautomated teller machine or a point of sale terminal that is connectedto the EBT system.
(b) The division may approve or deny participation in the EBTsystem by a retailer that is not a food retailer.
(c) The division may not approve participation by a retailer orfinancial institution in the EBT system for distribution of cashassistance under the Title IV-A assistance program through anautomated teller machine or a point of sale terminal located on thepremises of any of the following:
(1) A horse racing establishment:
(A) where the pari-mutuel system of wagering is authorized;and
(B) for which a permit is required under IC 4-31-5.
(2) A satellite facility:
(A) where wagering on horse racing is conducted; and
(B) for which a license is required under IC 4-31-5.5.
(3) An allowable event required to be licensed by the Indianagaming commission under IC 4-32.2.
(4) A riverboat or other facility required to be licensed by theIndiana gaming commission under IC 4-33.
(5) A store or other establishment:
(A) where the primary business is the sale of firearms (asdefined in IC 35-47-1-5); and
(B) that sells handguns for which a license to sell handgunsis required under IC 35-47-2.
(6) A store or other establishment where the primary businessis the sale of alcoholic beverages for which a permit is requiredunder IC 7.1-3.
(d) An establishment described in subsection (c)(1) through (c)(6)shall post a sign next to each automated teller machine or point ofsale terminal located in the establishment informing a potential userthat the automated teller machine or point of sale terminal may notbe used to receive cash assistance benefits under the Title IV-Aassistance program.
(e) An:
(1) establishment that does not post the sign required undersubsection (d); or
(2) individual who attempts to use an automated teller machineor point of sale terminal to access cash assistance benefits under
the Title IV-A assistance program in violation of subsection (d);
commits a Class C misdemeanor.
(f) The division shall adopt rules under IC 4-22-2 to carry out thissection.
As added by P.L.257-1997(ss), SEC.13. Amended by P.L.91-2006,SEC.10.
IC 12-13-14-5
Retailer participation
Sec. 5. A retailer participating in the EBT program in Indiana isnot required to make cash disbursements or purchase equipment.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-6
Equal treatment of retailers
Sec. 6. Retailers within a defined market area shall be treatedequally.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-7
Retailer liability for fraudulent EBT transaction
Sec. 7. A retailer participating in the EBT program may not beheld liable for a loss incurred due to a fraudulent EBT transactionprovided the retailer did not participate in the fraud.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-8
Payment to retailer by contractor; penalty payments; systemfailure
Sec. 8. (a) An approved transaction must be paid to the retailer notlater than the end of the second business day in which a financialinstitution is open for business to the public following the approvalof the transaction.
(b) Failure by the contractor to pay the retailer in accordance withsubsection (a) will result in penalty payments being paid by thecontractor to the retailer.
(c) If there is a system failure, off-line transactions will beauthorized and guaranteed up to an amount to be determined by thedivision. The retailer must comply with the division's rules foroff-line transactions.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-9
Retailer and recipient training; credit
Sec. 9. The division shall provide retailer and recipient trainingstatewide. A retailer who uses its own equipment for training shallreceive a training credit to offset the retailer's cost.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-10 Retailer not considered contractor
Sec. 10. A retailer participating in the EBT program in Indianamay not be considered as a contractor for supplying services orsupplies in connection with Indiana's EBT program.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-11
Required components of EBT program
Sec. 11. The Indiana EBT program must be designed:
(1) for recipient portability; and
(2) to ensure compatibility with other states;
to the extent possible.
As added by P.L.15-1996, SEC.2.
IC 12-13-14-12
Retailer fees for processing transactions; review of fees
Sec. 12. The division shall negotiate a fee structure with theIndiana Grocers and Convenience Store Association for retailers inexchange for processing the division's EBT transactions. Retaileragreements entered into between the state and retailers shall considerappropriate fees that are consistent with existing market practices,and consider costs incurred by the participating retailers for capitalexpenditures and ongoing operating expenditures. The division shallreview and adjust the fee if necessary or appropriate.
As added by P.L.15-1996, SEC.2. Amended by P.L.257-1997(ss),SEC.14.
IC 12-13-14-13
Farmer's market point of sale terminals
Sec. 13. (a) Before January 1, 2010, the division shall implementa program that provides a farmer's market administrator or a retailerwho sells food at a farmers' market with a wired or wireless point ofsale terminal that is connected to the EBT system.
(b) Notwithstanding subsection (a), the director of the division offamily resources may limit, to a number not less than twenty (20), thenumber of wired or wireless point of sale terminals that are:
(1) connected to the EBT system; and
(2) issued to a farmer's market administrator or a retailer whosells food at a farmers' market.
This subsection expires July 1, 2010.
As added by P.L.96-2009, SEC.1.