2016 Indiana Code
TITLE 12. HUMAN SERVICES
ARTICLE 13. DIVISION OF FAMILY RESOURCES
CHAPTER 14. ELECTRONIC BENEFITS TRANSFER
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<![CDATA[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 on
behalf of a financial institution or retailer that is capable of
dispensing currency and responding to balance inquiries through the
use of a magnetic stripe card issued by or on behalf of the division
for distribution of assistance through an EBT system as described in
this chapter.
(b) As used in this chapter, "commission" refers to the electronic
benefits transfer commission established by this chapter.
(c) As used in this chapter, "Department" refers to the United
States Department of Health and Human Services.
(d) As used in this chapter, "EBT program" means an electronic
benefits transfer program.
(e) As used in this chapter, "financial institution" means a bank,
trust company, savings institution, credit union, or any other
organization:
(1) whose principal business activity is providing banking or
financial services to the public; and
(2) that is organized, supervised, and authorized to do business
in 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
SNAP.
(g) As used in this chapter, "person" includes any individual or
entity described in IC 6-2.5-1-3.
(h) As used in this chapter, "point of sale terminal" means an
electronic hardware device that is:
(1) used at a retailer's place of business where consumers pay
for goods or services; and
(2) capable of:
(A) initiating a request for authorization of a purchase of
tangible personal property;
(B) disbursing currency from an account;
(C) initiating a balance inquiry for an account; or
(D) distributing assistance through an EBT system as
described in this chapter.
(i) As used in this chapter, "primary business" means more than
fifty percent (50%) of the gross retail income (as defined in
IC 6-2.5-1-5) attributable to the location or premises where the
business is located.
(j) As used in this chapter, "retailer" means a person that, in the
ordinary course of business:
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(1) sells or transfers tangible personal property; or
(2) provides or performs services for compensation;
to consumers.
(k) As used in this chapter, "Secretary" refers to the Secretary of
the United States Department of Agriculture.
As added by P.L.15-1996, SEC.2. Amended by P.L.257-1997(ss),
SEC.10; P.L.210-2015, SEC.36.
IC 12-13-14-2
Powers of division for administration of SNAP and EBT program
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 for
implementation by the division of an EBT program in Indiana
for SNAP assistance.
(2) If required at any time by federal law or regulation, make an
application for approval from the Department for
implementation by the division of an EBT program in Indiana
for assistance under the Title IV-A assistance program as
provided 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 operating
EBT program under this chapter to provide an alternative
method of delivering:
(A) SNAP assistance; and
(B) assistance under the Title IV-A assistance program in
Indiana.
(4) Contract with vendors for supplies and services to
implement 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; P.L.210-2015,
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 is
established.
(b) The commission consists of eight (8) members appointed by
the secretary of family and social services as follows:
(1) Two (2) employees of the office of the secretary of family
and social services.
(2) Two (2) members of the Indiana Grocers and Convenience
Store Association, nominated by the chief executive officer of
the Indiana Grocers and Convenience Store Association for
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consideration 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 Bankers
Association for consideration by the office of the secretary of
family and social services.
(4) Two (2) persons representing recipients of SNAP benefits
or TANF benefits. One (1) person shall be nominated by the
Indiana Food and Nutrition Network, and one (1) person shall
be nominated by the Indiana Coalition for Human Services for
consideration by the secretary of family and social services.
(c) The terms of office shall be for three (3) years. The members
serve at the will of the secretary of family and social services. A
vacancy on the commission shall be filled by the secretary of family
and social services in the same manner the original appointment was
made.
(d) The secretary of family and social services shall appoint the
initial chairperson from among the members of the commission. The
commission shall meet on the call of the chairperson. When the
chairperson's term expires, the commission shall elect a new
chairperson from among the membership of the commission.
(e) The division shall provide staff needed for the commission to
operate under this chapter.
(f) The commission members are not eligible for per diem
reimbursement or reimbursement for expenses incurred for travel to
and from commission meetings.
As added by P.L.15-1996, SEC.2. Amended by P.L.1-2009, SEC.101;
P.L.210-2015, SEC.38.
IC 12-13-14-4
Recommendations of commission to division on implementation of
statewide EBT program
Sec. 4. The commission shall make recommendations to the
division and advise the division on the following issues:
(1) Implementing a fully functional and operating EBT program
statewide.
(2) How Indiana's EBT program implemented under this chapter
can 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, and
278.
(3) Whether to implement the National Automated Clearing
House Association guidelines to the extent that the guidelines
are not inconsistent with federal law.
(4) Whether to implement the federal electronic funds transfer
rules.
(5) Whether the division should seek a waiver from the
Secretary that would allow retailers to identify check-out lanes
that are equipped to handle EBT transactions.
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(6) Providing retailer and recipient training.
(7) Creating an EBT program in Indiana that is compatible with
EBT programs in other states to the extent possible.
(8) Rules necessary to provide adequate financial safeguards
and 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 assistance through automated teller machines
or point of sale terminals; exclusions; disabled access in prohibited
locations; penalties; rules
Sec. 4.5. (a) Except as provided in this section, the division may
distribute cash assistance benefits to a person who is eligible for
assistance under the Title IV-A assistance program though an
automated teller machine or a point of sale terminal that is connected
to the EBT system.
(b) The following establishments shall post a sign next to each
automated teller machine or point of sale terminal located on the
premises informing a potential user that the automated teller machine
or point of sale terminal may not be used to receive cash assistance
benefits under the Title IV-A assistance program:
(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 Indiana
gaming commission under IC 4-32.2.
(4) A riverboat or other facility required to be licensed by the
Indiana gaming commission under IC 4-33.
(5) A store or other establishment:
(A) where the primary business is the sale of firearms (as
defined in IC 35-47-1-5); and
(B) that sells handguns for which a license to sell handguns
is required under IC 35-47-2.
(6) A store or other establishment where the primary business
is the sale of alcoholic beverages for which a permit is required
under IC 7.1-3.
(7) An adult entertainment establishment.
(c) An:
(1) establishment that does not post the sign required under
subsection (b); or
(2) individual who attempts to use an automated teller machine
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or point of sale terminal with a sign posted as required under
subsection (b) to access cash assistance benefits under the Title
IV-A assistance program in violation of subsection (b);
commits a Class C misdemeanor.
(d) The owner, vendor, or third party processor of an automated
teller machine or point of sale terminal shall disable or have disabled
access to electronic cash assistance benefits in a location described
in subsection (b) unless the location has been approved by the federal
Food and Nutrition Services. The division shall provide assistance to
an owner, vendor, or third party processor under this subsection. A
person that violates this subsection commits a Class B infraction.
(e) The division shall adopt rules under IC 4-22-2 to carry out this
section.
As added by P.L.257-1997(ss), SEC.13. Amended by P.L.91-2006,
SEC.10; P.L.3-2012, SEC.2; P.L.197-2013, SEC.6.
IC 12-13-14-5
Retailer participation
Sec. 5. A retailer participating in the EBT program in Indiana is
not 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 treated
equally.
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 be
held liable for a loss incurred due to a fraudulent EBT transaction
provided 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; system
failure
Sec. 8. (a) An approved transaction must be paid to the retailer not
later than the end of the second business day in which a financial
institution is open for business to the public following the approval
of the transaction.
(b) Failure by the contractor to pay the retailer in accordance with
subsection (a) will result in penalty payments being paid by the
contractor to the retailer.
(c) If there is a system failure, off-line transactions will be
authorized and guaranteed up to an amount to be determined by the
division. The retailer must comply with the division's rules for
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off-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 training
statewide. A retailer who uses its own equipment for training shall
receive 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 Indiana
may not be considered as a contractor for supplying services or
supplies 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 the
Indiana Grocers and Convenience Store Association for retailers in
exchange for processing the division’s EBT transactions. Retailer
agreements entered into between the state and retailers shall consider
appropriate fees that are consistent with existing market practices,
and consider costs incurred by the participating retailers for capital
expenditures and ongoing operating expenditures. The division shall
review 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
Farmers' market point of sale terminals
Sec. 13. The division shall implement a program that provides a
farmers' market administrator or a retailer who sells food at a
farmers' market with a wired or wireless point of sale terminal that
is connected to the EBT system.
As added by P.L.96-2009, SEC.1. Amended by P.L.13-2013, SEC.45.
IC 12-13-14-14
Investigation of fraud by state excise police
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Sec. 14. The state excise police may investigate allegations of
fraud within the EBT program, including investigations of the
following persons:
(1) Applicants.
(2) Recipients.
(3) Retailers that participate in the EBT program.
(4) Individuals who sell or purchase access to cash assistance
benefits in violation of any federal or state law or regulation.
As added by P.L.197-2013, SEC.7.
IC 12-13-14-15
Replacement of EBT cards; procedure
Sec. 15. (a) As used in this section, "EBT card" has the meaning
set forth in 470 IAC 6-0.5-1.
(b) The replacement process established under this section applies
until federal rules are adopted establishing a replacement EBT card
process that supersedes or nullifies the process established by the
division.
(c) The division shall establish a process for a recipient to follow
in order to receive a replacement EBT card. The process must
include contact with the division for replacement if the individual
requesting replacement of the EBT card has previously requested a
replacement EBT card at least four (4) times in the preceding twelve
(12) month period.
(d) The division may hold replacement of an EBT card if the
recipient seeking replacement of the EBT card does not follow the
procedure established by the division under subsection (b).
As added by P.L.197-2013, SEC.8.
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