Citations Affected: IC 12-13.
Synopsis: Electronic benefits transfer law. Allows the electronic
benefits transfer commission ("commission") to review proposed
contracts of the division of family and children ("division"). Requires
the division to implement commission recommendations, except under
specified circumstances. Requires the division to pay a fee of $0.06 per
approved electronic benefits transfer transaction to retailers
participating in the EBT program who use their own equipment.
Requires the division to review the amount of the fee every two years.
Requires the commission to review and make recommendations
concerning a state program administered by the office of the secretary
of family and social services through which the state uses electronic
transfers to transfer benefits or money. Requires the division to
implement a staggered distribution schedule for EBT program benefits.
Effective: July 1, 2004.
January 12, 2004, read first time and referred to Committee on Commerce and Consumer
January 22, 2004, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
SECTION 1. IC 12-13-14-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 4. (a) 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.
(10) Reviewing and making recommendations as required by section 13 of this chapter concerning a state program through which the state uses electronic transfers to transfer benefits or other money to another person.
(b) The division shall approve and implement a recommendation made by the commission under subsection (a) unless the recommendation:
(1) violates state or federal law;
(2) violates the National Automated Clearing House Association guidelines;
(3) results in the electronic benefits transfer program being incompatible with other state EBT programs; or
(4) is fiscally infeasible.
(c) The division may not enter into a contract under this chapter unless the commission has reviewed the contract. The commission shall keep the terms of a proposed contract confidential.
SECTION 2. IC 12-13-14-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 12. (a) Except as provided in subsection (b), 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. pay a
retailer who participates in the EBT program and uses the
retailer's own equipment a fee of six cents ($0.06) for each
(b) The division shall review the amount of the fee every two (2) years and
adjust increase the fee if necessary or appropriate.
SECTION 3. IC 12-13-14-13 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 13. The commission shall review
and make recommendations to the division concerning the
implementation of a state program administered under the office
of the secretary through which the state uses electronic transfers
to transfer benefits or other money to another person.
SECTION 4. IC 12-13-14-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. (a) Not later than January 1, 2005, the division shall implement a staggered distribution schedule of benefits for the EBT program based on the first letter of the recipient's last name. The division may use the same schedule that is used in the distribution of food stamp benefits if the food stamp distribution occurs on a staggered schedule.
(b) The division shall implement the distribution schedule required by subsection (a) in a manner that minimizes the impact on EBT program recipients.