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MS 1020

(1) Volume 1 – General Administration MS 1020 – R. 8/1/26 – OMTL-703 Trafficking and Retail Fraud

A. Trafficking is the act of:

1. Buying, selling, stealing, or exchanging Supplemental Nutrition Assistance Program (SNAP) benefits, SNAP Electronic Benefit Transfer (EBT) cards, card numbers, Personal Identification Numbers (PIN), or manual vouchers for cash or consideration other than eligible food either directly, indirectly, in complicity or collusion with others, or acting alone;

2. Attempting to buy, sell, steal, or otherwise affect an exchange of SNAP benefits issued and accessed via EBT cards, card numbers, and PIN, or by manual voucher and signatures, for cash or consideration other than eligible food, either directly, indirectly, in complicity or collusion with others, or acting alone;

3. [Exchanging an EBT card and/or card information or SNAP benefits for firearms, ammunition, explosives, or controlled substances. The Office of Inspector General (OIG) identifies and refers all cases involving firearms, ammunition, explosives, or controlled substances to the Kentucky State Police (KSP);]

4. Purchasing a product with SNAP benefits that has a container requiring a return deposit with the intent of obtaining cash by discarding the product and returning the container for the deposit amount, intentionally discarding the product, and intentionally returning the container for the deposit amount;

5. Intentionally reselling or exchanging eligible food purchased with SNAP benefits for the purpose of obtaining cash and/or other considerations; or

6. Retailers knowingly purchasing products originally purchased with SNAP benefits in exchange for cash or considerations other than eligible food.

B. Trafficking hotline referrals are sent from OIG to the Integrity and Analysis Section (IAS). IAS will refer trafficking hotline referrals for individuals to Regional Claims Workers (RCW) for investigation. If EBT account transactions indicate trafficking or misuse of benefits, follow the trafficking procedures outlined in D of this section, or MS 1025 for EBT misuse. The claim is only entered on the Benefit Recovery module when one of the following requirements has been met:

1. The recipient signs and dates form FS-80A (TR), Voluntary Waiver of SNAP Administrative Disqualification Hearing (ADH); 2. An Intentional Program Violation (IPV) is granted by an ADH;