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Iowa’s TANF State Plan: Attachments

(b) Each State must provide the following information on the TANF program: (10) A comprehensive description of the state's policies and practices to prevent assistance (defined at § 260.31(a) of this chapter) provided with federal TANF or state TANF MOE funds from being used in any electronic benefit transfer transaction in any: liquor store; casino, gambling casino or gaming establishment; or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment. Reports must address: (i) Procedures for preventing the use of TANF assistance via electronic benefit transfer transactions in any liquor store; any casino, gambling casino, or gaming establishment; and any retail establishment which provides adult- oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment;

Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96) required states to implement and maintain policies and procedures to prevent electronic benefit transfer (EBT) transactions of TANF benefits at specified types of businesses, and to submit a report describing these policies and procedures to the Secretary of Health and Human Services, no later than February 22, 2014. Pending federal regulations further clarifying state requirements, the Office of Family Assistance (OFA) for the Administration for Children and Families (ACF) advised states to “formulate policies and implement requirements in section 4004 of P.L. 112-96 based on its reasonable interpretation of these requirements.” (TANF Q&A March 2013).

Iowa’s reasonable interpretation of section 4004 emphasizes recipient responsibility and accountability. This interpretation is expressed in changes to state law enacted during the state’s 2013 legislative session. See Exhibit 1 for actual language. Briefly, this legislation makes compliance with the prohibition a condition of continued eligibility for TANF cash assistance and violation of this condition a fraudulent practice. The legislation incorporates federal definitions whether in law or regulation for the prohibited locations and authorizes the Iowa Department of Health and Human Services (Iowa HHS), the state TANF agency, to implement additional measures if required by federal regulations, and to adopt administrative rules as necessary.

Iowa HHS adopted administrative rules to implement the statutory changes. These rules provide that if Iowa HHS receives a detailed complaint or otherwise suspects that TANF benefits have been accessed by EBT at a prohibited location, a referral will be made to the state’s Department of Investigations, Appeals and Licensing (DIAL) to investigate. If the DIAL determines that benefits were accessed at a prohibited location, the household will be canceled and ineligible for a period of three months for a 1st violation and six