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 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 the
food stamp program.
(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:
(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.
IC 12-13-14-2
Power of division to implement EBT program for food stamp
assistance; 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 for
implementation by the division of an EBT program in Indiana
for food stamp 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) food stamp 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.
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
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 food stamp
benefits or Aid to Families with Dependent Children (AFDC)
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.
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.
(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 benefits through automated teller machines or
point of sale terminals; retailers eligible for participation in EBT
system; penalties
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 division may approve or deny participation in the EBT
system by a retailer that is not a food retailer.
(c) The division may not approve participation by a retailer or
financial institution in the EBT system for distribution of cash
assistance under the Title IV-A assistance program through an
automated teller machine or a point of sale terminal located on the
premises 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 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.
(d) An establishment described in subsection (c)(1) through (c)(6)
shall post a sign next to each automated teller machine or point of
sale terminal located in the establishment 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.
(e) An:
(1) establishment that does not post the sign required under
subsection (d); or
(2) individual who attempts to use an automated teller machine
or 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 this
section.
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 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
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
Farmer's market point of sale terminals
Sec. 13. (a) Before January 1, 2010, the division shall implement
a program that provides a farmer's 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.
(b) Notwithstanding subsection (a), the director of the division of
family resources may limit, to a number not less than twenty (20), the
number 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 who
sells food at a farmers' market.
This subsection expires July 1, 2010.
As added by P.L.96-2009, SEC.1.