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North Carolina

52 APPENDIX A Electronic Funds Transfer

Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96) amends the Social Security Act, adding a requirement for states receiving TANF grants to “maintain policies and practices necessary to prevent assistance provided under the State program funded under this part from being used in any electronic benefit transfer transaction in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for establishment.” The new requirements aim to ensure that cash assistance is used in a manner consistent with the purposes of TANF and to serve to promote the integrity of the program and the responsible stewardship of public funds.

There are currently two methods of issuance for Work First payments, electronic funds transfer (EFT), or electronic benefit transfer (EBT) card. This allows benefits to be provided in a timely manner, reduces theft and fraud, and eliminates the need to pay check-cashing fees. The methods of issuance are direct deposit to the individuals’ checking or savings account or EBT card. Direct deposit allows for the monthly Work First cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. EBT is an electronic system that allows recipients to access their benefits with a plastic card, like a bank card.

Procedures and Strategies

In accordance with federal law, the Division is required to develop policies and procedures to prevent access to Work First cash assistance payment through electronic fund transactions at casinos, liquor stores, and establishments providing adult-oriented entertainment. The Division is also required to ensure recipients have adequate access to their cash assistance, and ensure recipients incur minimal fees or charges when using or withdrawing cash assistance funds.

For compliance, the Division implemented an education campaign for all Work First program applicants and recipients for compliance with the federal law. There was mass mailing to all Work First recipients regarding the transition to electronic payments in English and Spanish text. The electronic benefits brochure was revised and is distributed at initial application, eligibility review, and upon participant request. Work First applications are completed onsite at the local agency unless reasonable accommodations are required. The brochure explains the EBT payment process including; transaction restrictions for Work First cash assistance, related fees and access schedules. The Public Assistance Rights and Responsibilities Form, which is given to all applicants and recipients, has been revised to include language regarding EBT use restrictions. A Frequently Asked Questions (FAQ) about Electronic Benefits document was developed and is posted on the Division of Social Services public website for public viewing. The online FAQ reflects the EBT brochure’s information which is always accessible for public viewing and agency use . The Division collaborates with state and local agencies which regulate gaming, adult entertainment and liquor stores. The agencies are the North Carolina Alcohol Beverage Control (ABC) Commission, the local ABC Boards, North Carolina Public Safety and the Tribal Gaming Commission. Letters were mailed to the aforementioned regulatory and