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Subject: Families First EBT Location Restrictions

Policy 23.12 Date of Last Review: 07/29/2026 Effective Date: 10/15/2023 Date of Next Review: 07/29/2029 RDA: SW22 Page 2 of 4 Customer Sanction Any Families First customer who participates in an EBT transaction in any restricted location shall be subject to the following penalties if found guilty of an illegal transaction in an administrative hearing: 1. For a first (1st) or second (2nd) violation(s), the Families First customer will be required to reimburse the amount of the purchase at a Point of Sale (POS) device or the amount of the cash withdrawn and used from an ATM or other online system. 2. For third (3rd) or subsequent violation(s): a. The Families First caretaker will be required to reimburse the amount of the purchase at a POS device or the amount of the cash withdrawn and used from an ATM or other online system; b. The caretaker will be permanently ineligible to use an EBT card for the purpose of accessing their Families First cash benefits; and c. A protective payee will be designated to access and manage the Families First benefits. d. A caretaker found guilty of a third (3rd) or subsequent violation will continue to be included in the assistance unit (AU), and the violation will not result in a reduction in the Families First grant. 3. Any illegal EBT transaction will be classified as an overpayment and as an illegal use violation that will result in the initiation of collection proceedings. Merchants of Restricted Locations It is illegal for any person or business entity, whether owned or leased, to knowingly accept public assistance benefits from an EBT card for the purchase of any goods or services in the following locations: 1. Liquor stores; 2. Gambling, casino, and/or gaming establishments; 3. Adult Cabarets; or 4. Tobacco discount and/or retail stores. Merchant Notification of the Law Merchants who may be impacted by changes in EBT usage restrictions will be notified in writing when a new restricted category is added to the EBT card. Merchant Penalties Merchants found in violation of knowingly accepting public assistance benefits from an EBT card in prohibited locations will be subject to the following penalties: 1. The first (1st) violation will result in a civil penalty of one thousand dollars ($1,000). 2. The second (2nd) violation within five (5) years of the first violation will result in a civil penalty of twenty-five hundred dollars ($2,500).