Chapter DHS 252

DHS 252.18   Liability for lost benefits.

DHS 252.19   Fraudulent activity.

DHS 252.20   Confidentiality.

DHS 252.21   EBT system security.

DHS 252.22   Resolution of disputes.

DHS 252.23   Conversion to coupons.

DHS 252.25   Expungement.

DHS 252.26   QuestJ standards.

DHS 252.27   Future programs.

Ch. DHS 252 Note Note: Chapter DWD 14 was renumbered ch. HFS 252 under s. 13.93 (2m) (b) 1., Stats., and corrections were made under s. 13.93 (2m) (b) 6. and 7., Stats., Register January 2003 No. 565. Chapter HFS 252 was renumbered chapter DHS 252 under s. 13.92 (4) (b) 1., Stats., and corrections made under s. 13.92 (4) (b) 7., Stats., Register January 2009 No. 637.

DHS 252.01 DHS 252.01 Authority and purpose. This chapter is promulgated under the authority of s. 49.797 (7), Stats., for the purpose of administering an electronic benefit transfer (EBT) system for delivery of food stamp benefits, as an alternative to issuing food stamp coupons.

DHS 252.01 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.02 DHS 252.02 Definitions. In this chapter:

DHS 252.02(1) (1) “Authorized buyer” means an individual designated by a food stamp group to have access to the food stamp account as a secondary cardholder on behalf of the group.

DHS 252.02(2) (2) “Card issuer” means the entity designated by the department to issue EBT cards and maintain the card issuance data base.

DHS 252.02(3) (3) “Coupon” means any coupon, stamp, type of certificate, authorization card, cash or check issued in lieu of a coupon, or access device, including an electronic benefit transfer card or personal identification number issued pursuant to the provisions of the Food Stamp Act of 1977, as amended, for the purchase of eligible food.

DHS 252.02(4) (4) “Department” means the department of health services.

DHS 252.02(5) (5) “EBT” or “electronic benefit transfer” means an electronic system that allows a recipient on-line access to their food stamp benefits through the use of a POS device at an FNS-authorized retailer, thereby authorizing the electronic payment of federal funds to the retailer to settle the approved purchase of eligible food items.

DHS 252.02(6) (6) “EBT account” means an account established by the department or its EBT vendor on behalf of the food stamp group.

DHS 252.02(7) (7) “EBT vendor” means the entity that is, or is teamed with, a financial institution or fiscal intermediary that the department has contracted with to provide EBT services.

DHS 252.02(8) (8) “Economic support (ES) agency” means a county department of social services or human services, a W-2 agency or a tribal agency which administers economic support programs, including food stamps.

DHS 252.02(9) (9) “FNS” means the food and nutrition service, a subdivision of the United States department of agriculture that has administrative responsibility for the food stamp program.

DHS 252.02(10) (10) “Food stamp act” means the food stamp act of 1977 as amended, 7 USC 2011 to 2036.

DHS 252.02(11) (11) “Food stamp group” means those persons whose financial eligibility for food stamps is determined together.

DHS 252.02(12) (12) “Food stamp payee” means an individual designated by a responsible member of the food stamp group to receive an EBT card and have access to the food stamp account on behalf of the food stamp group.

DHS 252.02(13) (13) “Food stamp regulations” means the regulations of the US department of agriculture found in title 7, chapter II of the code of federal regulations.

DHS 252.02(14) (14) “Group living arrangement” has the meaning given in 7 CFR 271.2 and is a public or private nonprofit residential setting that serves no more than 16 residents and is certified by a regulating state or local agency.

DHS 252.02(15) (15) “IPV” or “intentional program violation” has the meaning given in 7 CFR 273.16(c), and shall consist of having intentionally: a) made a false or misleading statement, or misrepresented, concealed or withheld facts, or b) committed any act that constitutes a violation of the food stamp act, the food stamp program regulations, or any state statute relating to the use, presentation, transfer, acquisition, receipt, possession or trafficking of coupons, authorization cards or reusable documents used as part of an automated benefit delivery system (access device).

DHS 252.02(16) (16) “Manual transaction” means a purchase of eligible food items at an FNS authorized retailer that does not use a POS device.

DHS 252.02(17) (17) “On-line” means immediate access, via the EBT card, to benefit information stored in a central computer database for the purpose of authorizing electronic food stamp transactions at the point of sale.

DHS 252.02(18) (18) “PAN” or “primary account number” is the number on the EBT card that is linked to the food stamp account established on behalf of the food stamp group.

DHS 252.02(19) (19) “PIN” or “personal identification number” means a secret number assigned to the cardholder for use in conjunction with the EBT card to access benefits in a secure manner.

DHS 252.02(20) (20) “Primary person” means the person whose name is listed first on the application form as the person applying for food stamps for his or her household.

DHS 252.02(21) (21) “POS” or “point of sale” means the place in a retail food store where consumers pay for goods and services.

DHS 252.02(22) (22) “POS terminal” means an electronic hardware device used at the point of sale which is connected to the computer system of a third party processor or the EBT vendor and is designed to record, forward and obtain approval for electronic transactions.

DHS 252.02(23) (23) “Retail food store” has the meaning given in 7 CFR 271.2.

DHS 252.02(24) (24) “Settlement” means the exchange of information that produces the transfer of funds from one entity to another, completing a financial transaction.

DHS 252.02(25) (25) “Supermarket” means a type of business having annual gross sales of $2 million or more.

DHS 252.02 Note Note: The type of business is selected by the retailer on the Food Stamp Program Application for Stores (FNS 252).

DHS 252.02(26) (26) “Third party processor” has the meaning given in 7 CFR 274.12 (i) (5).

DHS 252.02 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99; CR 04-040: am. (3) and (15) Register November 2004 No. 587, eff. 12-1-04; correction in (4) made under s. 13.92 (4) (b) 6., Stats., Register January 2009 No. 637.

DHS 252.03 DHS 252.03 Mandatory participation. All food stamp households in Wisconsin shall participate in the EBT system. The department shall ensure access to the EBT system for special needs groups such as the elderly and disabled.

DHS 252.03 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.04 DHS 252.04 Card issuance.

DHS 252.04(1) (1) When a food stamp group has been determined eligible for food stamps at the economic support agency, the department shall provide an EBT card which allows the food stamp group to access food stamp benefits in its EBT account. The department shall authorize the card issuer to issue the EBT cards. The card issuer shall mail the card to the food stamp group. The department shall also require economic support agencies to maintain temporary card issuance capability for emergency issuances. A statement of nondiscrimination shall be included in the mailer that is sent with the card. The department may require a special activation procedure for cards to assure that the rightful food stamp group receives the card.

DHS 252.04 Note Note: This provision varies from federal food stamp regulations in 7 CFR 274.12(i)(6)(i)(B) as allowed by a waiver approved by the U.S. department of agriculture.

DHS 252.04(2) (2) The card shall physically resemble a financial transaction card similar to a debit card. It shall contain a primary account number (PAN) and the address of the office where it can be returned if found or no longer in use. The card, as distinguished from the EBT system, may be used by another program for benefit or service access supported by the other program’s computer system. The card is the property of the state of Wisconsin.

DHS 252.04 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.05 DHS 252.05 PIN selection. The department shall provide for PIN selection by the cardholder. The department shall allow the PIN to be changed if the cardholder requests it. The department shall provide instructions on use of the card with the PIN, including how to change the PIN if the cardholder wishes to do so.

DHS 252.05 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.06 DHS 252.06 Primary cardholder. The department shall provide one designated EBT card and PIN to the primary person or a designated payee to access the food stamp account. The primary person’s or designated payee’s name and signature shall be on the permanent EBT card. For residents of drug and alcohol treatment centers and group living arrangements, the department may issue the card to a person employed by the facility who is designated as the food stamp payee.

DHS 252.06 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.07 DHS 252.07 Secondary cardholder. The department shall provide a card and PIN to an individual designated by the food stamp group as an authorized buyer. The authorized buyer’s name and signature shall be on the permanent EBT card. The PAN shall be different from that of the primary cardholder but shall be linked to the same food stamp account. There shall be a limit of one secondary cardholder per food stamp group.

DHS 252.07 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.08 DHS 252.08 EBT card and PIN security.

DHS 252.08(1) (1) Recipient responsibility. The recipient is responsible for protecting the security of his or her EBT card and PIN. Benefits will not be replaced if they are lost or stolen after the recipient gives the card and PIN to another person. The recipient shall report a lost or stolen card or compromised PIN to recipient customer service. When the recipient reports one of these events, the EBT vendor shall immediately disable card access to the food stamp account. The department may require that the recipient sign a card and PIN security responsibility statement prior to issuance of benefits via EBT.

DHS 252.08(2) (2) Retailer responsibility. The retailer is authorized to accept the EBT card presented with a valid PIN.

DHS 252.08 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.09 DHS 252.09 Training.

DHS 252.09(1) (1) Provision of training. The department shall provide training on the use of the EBT system to benefit recipients; advocates for benefit recipients; appropriate county, state, and tribal governing body employees; and food retailers. The department shall involve representatives of the affected groups in the design of the training.

DHS 252.09(2) (2) Recipients.

DHS 252.09(2)(a) (a) The department shall train recipients and their representatives on the use of the EBT system and EBT card prior to receipt of benefits via EBT. Recipient training shall include: information on unlimited transactions, access to account balances, transaction receipts, availability of benefits, issuance and replacement of cards and PINs, security of cards and PINs, the recipient’s responsibilities for reporting lost or damaged EBT cards, accessing customer service, stale account handling, benefit availability, manual transactions, access to retail stores and dispute resolution procedures.

DHS 252.09(2)(b) (b) The department shall provide an informational pamphlet to all EBT households as part of its training efforts. The department intends to make client training material available in retail stores, community centers, and other designated areas.

DHS 252.09(2)(c) (c) The department shall make an informational EBT video available for viewing at EBT training sites and each economic support agency.

DHS 252.09(2)(d) (d) The department shall provide one to one training in the use of EBT equipment for accessing benefits and obtaining account balance information if requested by the recipient or if any recipient is identified as having actual or potential problems using the EBT system.

DHS 252.09 Note Note: This provision varies from federal food stamp regulations in 7 CFR 274.12(g)(10)(ii) as allowed by a waiver approved by the U.S. department of agriculture.

DHS 252.09(2)(e) (e) The department shall provide training for bilingual households and for households with disabilities as prescribed by state and federal law. Written materials shall be provided for bilingual households as prescribed in 7 CFR 272.4(b).

DHS 252.09(3) (3) Client advocates. The department shall make the training provided to recipients available to client advocates.

DHS 252.09(4) (4) Food retailers.

DHS 252.09(4)(a) (a) The EBT vendor shall provide training to food retailers and their staff if the vendor has vendor-installed POS equipment. Training shall includes technical instruction on the specific EBT equipment in the retailer’s store, manual procedures, and customer service contact numbers. The department shall make one to one training available at retailer request.

DHS 252.09(4)(b) (b) The EBT vendor shall provide information to retailers using owned or leased POS equipment on manual, customer service and settlement procedures for internal training use.

DHS 252.09(5) (5) Staff training. The department shall provide training to state and local agency staff on topics such as training recipients on the use of the EBT system; installation, operation, and use of any administrative equipment; card issuance and PIN selection equipment; use of the vendor’s administrative system; dispute resolution procedures; system security; and recipient and retailer customer services.

DHS 252.09 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.10 DHS 252.10 Retailer owned or leased POS equipment.

DHS 252.10(1) (1) Fee payment. During the first 2 years of EBT operations, the department shall pay a fee of $.08 per food stamp purchase and merchandise return transactions, and balance inquiries conducted on POS terminals owned or leased by retailers which have signed an agreement with the EBT vendor to use such equipment. The department shall require that the vendor disburse the fee on a monthly basis through a deposit separate from the daily settlement deposits.

DHS 252.10(2) (2) Study to determine actual costs. During the 2 year period, the department shall commission a study by an independent entity to determine actual EBT costs incurred by retailers and any offsetting savings from the elimination of paper food coupon handling. In signing the vendor agreement, the retailers shall affirm their intent to cooperate with the independent entity in gathering relevant cost data. The department shall elicit the assistance of representatives of the retailer community, financial institutions, state and local agencies and others in guiding the conduct of the study.

DHS 252.10(3) (3) Continuation of a fee. Based on the study results and other relevant factors, the department shall determine by the end of the 2 years if a transaction fee shall continue to be paid and, if so, at what amount. The department shall publish its decision in the Wisconsin Administrative Register. If, for reasons directly attributable to actions of the department or its agents, the department cannot make the decision by the end of the 2 years, it will continue to pay the fee at the established rate until publication of the decision in the register.

DHS 252.10 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99.

DHS 252.11 DHS 252.11 Vendor deployment of EBT-only POS equipment. The department will afford all authorized retailers, including non-traditional retailers, the opportunity to participate in the EBT system. By federal regulation, the department may not require authorized retailers to pay costs essential to and directly attributable to EBT system operations as long as the equipment or services are provided by the EBT vendor or its agent and are utilized solely for food stamp benefit issuance. If the vendor or agent must provide equipment to a retailer to afford the opportunity to participate in the EBT system, the following criteria shall apply:

DHS 252.11(1) (1) Pos terminals.

DHS 252.11(1)(a) (a) The retailer must have $100 or more per month in food stamp redemption activity and have the capability to support operation of the terminal.

DHS 252.11 Note Note: This provision varies from federal food stamp regulations in 7 CFR 274.12(h)(4) as allowed by a waiver approved by the U.S. department of agriculture.

DHS 252.11(1)(b) (b) The following POS terminal deployment formula, as specified in 7 CFR 274.12(h)(4)(ii), will be followed: 1) When food stamp redemption activity is 15% or more of total food sales, the retailer shall have POS terminals for all checkout lanes. 2) When food stamp redemption activity is less than 15% of total food sales, designated supermarkets shall have one POS terminal for every $11,000 in monthly redemption activity up to the number of lanes per store. All other retailers shall have one POS terminal for every $8,000 in monthly redemption activity. A retailer whose redemption activity qualifies for 3 or more EBT-only POS terminals may request an additional POS terminal for use by clients to check their food stamp balance if the terminal is located in a designated area of the store and is available for self-service use by clients.

DHS 252.11(2) (2) Manual transaction capability. The department shall provide manual transaction capability to retailers who do not qualify for a POS terminal. Refer to s. DHS 252.12 (3).

DHS 252.11(3) (3) Telephone lines. A retailer with average food stamp redemptions of at least $5000 per month may request a dedicated telephone line for exclusive EBT use and the EBT vendor shall install such a line. In providing retailers access to the vendor’s system, the EBT vendor shall comply with the regulations in 7 CFR 274.12, as amended and clarified by FNS.

DHS 252.11 History History: Cr. Register, August, 1999, No. 524, eff. 9-1-99; correction in (2) made under s. 13.92 (4) (b) 7., Stats., Register January 2009 No. 637.

DHS 252.12 DHS 252.12 Access to benefits.

DHS 252.12(1) (1) Access by recipient. The department shall provide the capability for the cardholder to access the appropriate food stamp account in retail food stores authorized by FNS within the Wisconsin EBT project area.