§450.1. Electronic authorization and distribution of public assistance benefits and services

NOTE: Subsection A eff. until Oct. 1, 2027. See Acts 2025, No. 478.

            A. The office of children and family services, Department of Children and Family Services, and the Louisiana Department of Health shall contract for the development and implementation of an electronic issuance system for the authorization and distribution of benefits and services provided by public assistance programs. Such programs shall include but not be limited to issuance of benefits and services of the Supplemental Nutrition Assistance Program and the Family Independence Temporary Assistance Program (FITAP), and shall require that all recipients who participate in programs for which benefits and services are authorized and distributed through the system shall obtain benefits through the electronic issuance system, subject only to the exceptions necessary for the effective functioning of the programs.

NOTE: Subsection A as amended by Acts 2025, No. 478, eff. Oct. 1, 2027.

            A. The Louisiana Department of Health and Louisiana Works shall contract for the development and implementation of an electronic issuance system for the authorization and distribution of benefits and services provided by public assistance programs. Such programs shall include but not be limited to issuance of benefits and services of the Supplemental Nutrition Assistance Program and the Family Independence Temporary Assistance Program (FITAP), and shall require that all recipients who participate in programs for which benefits and services are authorized and distributed through the system shall obtain benefits through the electronic issuance system, subject only to the exceptions necessary for the effective functioning of the programs.

            B. The contract program selected to provide the electronic issuance system shall include but not be limited to:

            (1) An electronic reporting and inventory system that complies with federal and state reporting requirements.

            (2) Plastic cards for program clients.

            (3) Training of department personnel.

            (4) Instructions for recipients on how to use the system.

            (5) Instructions for retailers and other participants in the program on how to use the system.

            (6) Provision, installation, and maintenance of automated teller machines, point of sale terminals, printers, and personal identification number "PIN" pads in the parish offices, in retail establishments which accept Supplemental Nutrition Assistance Program benefits, and in other appropriate locations of participants in the program.

            C. The contract program shall also:

            (1) Provide merchants the option to utilize commercial point of sale terminals provided by a third-party processor to interface with the electronic benefits transfer (EBT) provider selected by the department.

            (2) Provide for reimbursement by the EBT provider selected by the department of any and all costs incurred by the merchant in the processing of benefits under the electronic issuance system for public assistance programs for telephone monthly service charges and supplies for retailers utilizing the state-provided EBT equipment.

            (3) Provide that the cash back provisions of the electronic issuance system shall allow the merchant to charge the recipient reasonable and customary charges for the provision of cash back services.

            D.(1) The program shall provide for and shall maximize participation of the federal government and of the private sector, particularly merchants and financial institutions who may provide access to the program, in the funding and implementation of the program.

            (2) The program shall further provide for increased controls to reduce or prevent the fraudulent obtaining of public assistance benefits and services.

            Acts 1990, No. 1050, §1, eff. July 27, 1990; Acts 1993, No. 900, §1, eff. June 23, 1993; Acts 1995, No. 685, §1, eff. June 21, 1995; Acts 1997, No. 860, §1; Acts 1997, No. 1483, §1; Acts 2000, 1st Ex. Sess., No. 120, §§1, 2, eff. April 19, 2000; Acts 2018, No. 206, §5; Acts 2025, No. 478, §12, eff. Oct. 1, 2025, §13, eff. Oct. 1, 2027.

            NOTE: Acts 1995, No. 685, §2 provides that the Act has retroactive application to December 1, 1994.