SR 15-12 Dated 09/15

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases:

·      policy and procedures for monitoring an Electronic Benefits Transfer (EBT) card for trafficking or other suspicious activity when a Food Stamp household requests a fourth EBT card within a 12-month period; and

·      new DFA Form 77G, How To Use Your NH EBT Card, its associated instructions, DFA Form 77G(i), and its Nepali and Spanish translations, DFA Forms 77G(Ne) and DFA Form 77G(Sp).

BACKGROUND

On February 7, 2014, the Food Stamp Program was reauthorized as a part of the Agricultural Act of 2014 (PL 113-79). In guidance to states about proposed rule changes to 7 CFR 274.6 to implement the Act, Food and Nutrition Service (FNS) wrote the following:

FNS established the minimum threshold of four cards within a 12-month period on the basis of an analysis of SNAP EBT electronic transaction records. FNS found that shopping behavior appeared consistent when compared to the average until a household requested its fourth replacement card. Transaction activity indicates that, after the fourth replacement card, a household’s shopping behavior is three times more likely to be flagged as potential trafficking by FNS’ fraud detection system. Trafficking is the exchange of benefits for cash or other consideration, as defined at 7 CFR 271.2, and is the most egregious Program violation. Furthermore, FNS found during the period of January 2012 through December 2012, approximately 98 percent of participating households had three or fewer EBT cards, with most (79 percent) utilizing only one card throughout the year. This further reinforces that most requests for replacement cards are legitimate and when they occur, it is most likely to replace a lost or damaged card. Since so few households request four or more replacement cards and those that do have such markedly different transaction activity as to indicate a higher likelihood of potential trafficking, FNS chose to define a minimum threshold, and to consider requests beyond four cards within a 12-month period to be considered excessive and a potential indicator of trafficking.

POLICY

Replacement EBT cards are mailed to a Food Stamp household, or available for pick up instead, if requested, within two business days following the household’s report of a lost, stolen or damaged EBT card. In accordance with 7 CFR 274.6(b)(6), upon the Food Stamp household’s fourth request for an EBT replacement card within a 12-month period, the EBT Administrator or designee will:

·      alert the Food Stamp household that the household’s EBT account is being monitored for potential suspicious activity by sending the household the attached client letter. Enclosed with the letter will also be:

-     DFA Form 77G, How To Use Your NH EBT Card, in case the reason for the excessive requests for EBT cards is due to the household’s confusion about how to use their EBT card; and

-     DFA Form 77U, It Takes a Village, in case the reason for the excessive requests for EBT cards is due to the EBT card holder’s need for additional services, such as mental health, substance abuse, or shelter services, and this need is impacting the household’s ability to retain their EBT card;

·      monitor the recipient’s EBT account for potential trafficking or other suspicious activity; and

·      refer the case to the SIU if trafficking of Food Stamp benefits or other fraudulent activity is suspected.

Note: This policy does not apply to clients who only receive cash benefits via EBT.

Per 7 CFR 271.2, trafficking means exchanging (buying, selling, stealing, or trading), or attempting to exchange Food Stamp benefits, including the EBT card or EBT card PIN, for cash or for anything other than eligible food, or knowingly using, transferring, acquiring, altering, selling, or possessing Food Stamp benefits in any manner not authorized by the Federal Food Stamp Act. This includes:

·      whether the individual is acting alone, acting with others, directly taking or attempting to take the action, or indirectly taking or attempting to take the action, and whether the individual is taking or attempting to take the action in person or online through websites and social media;

·      exchanging firearms, ammunition, explosives, or controlled substances for Food Stamp benefits;

·      purchasing a product with Food Stamp 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; or

·      purchasing a product with Food Stamp benefits with the intent of obtaining cash or anything other than eligible food by reselling the product.

Federal penalties for trafficking Food Stamp benefits, per 7 CFR 273.16(b), apply. Trafficking Food Stamp benefits:

·      may result in a 12-month, 24-month, or permanent ban from getting Food Stamp benefits. If the amount involved in the trafficking is more than $500, the ban is permanent.

·      may result in a 24-month or permanent ban if the trafficking involves controlled substances.

·      may result in a permanent ban if the trafficking involves ammunition, firearms or explosives.

NEW HEIGHTS SYSTEMS PROCEDURES AND IMPLEMENTATION

Currently there are no New HEIGHTS processes associated with this policy. The report that is generated by NH’s EBT contractor (EBTMS206-2) is monitored by the NH’s EBT Administrator or designee who then mails the attached client letter and informational pamphlets to those Food Stamp households who have requested a fourth EBT card within a 12-month period. The EBT Administrator or designee then continues to manually monitor the household’s EBT account for potential trafficking activity or other suspicious activity, and refers the case to the SIU if trafficking of Food Stamp benefits or other fraudulent activity is suspected. If a referral to SIU is made, SIU staff may contact the household’s DHHS case worker for follow-up information.

If a Food Stamp household calls DHHS upon receiving the attached letter and is concerned about the trafficking information contained in the letter, engage the client in a conversation as to the reasons why they are struggling with retaining their EBT card. Provide information for obtaining an Authorized Representative or make referrals to community services, as dictated by the household’s response.

DESCRIPTION OF NEW FORM 77G, How To Use Your NH EBT Card

New DFA Form 77G, How To Use Your NH EBT Card, is a one-page, 4 panel, double-sided client informational pamphlet. The form is used to provide general information about the recipient’s EBT card and how to use this card to retrieve Food Stamp, Financial Assistance to Needy Families (FANF), State Supplement Program (SSP), and Nutritional Supplement for Working Families (NSWF) cash benefits. It is:

·      Provided to the public upon request; and

·      Inserted in the letter to every Food Stamp household who has requested four EBT cards in a 12-month period, along with DFA Form 77U, It Takes a Village.

This new form has been translated into Nepali and Spanish and instructions for the form were created accordingly.

DFA Form 77G is available in the DHHS Warehouse and can be ordered using current forms reordering procedures, via the Quarterly Forms Order (QFO). The Nepali and Spanish versions of the form can be ordered by contacting the Supervisor of the Policy Development Unit. The form and its translations are also available electronically, for Department staff only, on the Lotus Notes Family Services Database, and available to the public on the following websites: www.dhhs.nh.gov/dfa/apply.htm and www.dhhs.nh.gov/dfa/ebt.htm.

POLICY MANUAL REVISIONS

Revised Food Stamp Manual Topics

PART 711 REPLACING EBT CARDS OR PINS

Section 711.01 Excessive EBT Replacement Card Notification

Section 711.03 Definition of Trafficking Food Stamp Benefits

Section 713.03 Disqualification Periods

IMPLEMENTATION

The policy released in this SR is effective September 18, 2015.

CLIENT NOTIFICATION

No special client notification is planned or needed.

TRAINING

No special training is planned or needed.

FORMS MANUAL POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at www.dhhs.nh.gov/DFA/publications.htm, effective September 28, 2015. Additionally, this SR, and printed pages with posting instructions, will be distributed under separate cover to all internal hard copy holders of the Food Stamp and Forms Manuals.

DFA/JBV:s