DAR File No. 43482

Workforce Services, Employment Development

Section R986-200-250

Unauthorized Spending of TANF Financial Assistance Benefits

Notice of Proposed Rule

(Amendment)

DAR File No.: 43482
Filed: 01/15/2019 02:56:50 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new section is to identify unauthorized uses of Temporary Assistance to Needy Families (TANF) financial assistance benefits that may constitute an Intentional Program Violation.

Summary of the rule or change:

The Department of Workforce Services (Department) administers the State's TANF public assistance programs, including the Family Employment Program (FEP) and Family Employment Two Parent Program (FEPTP). These programs provide financial assistance to eligible families. Financial assistance is intended to provide for the individual's or household's basic needs. In February 2012, Congress passed, as part of the Middle Class Tax Relief and Job Creation Act of 2012, the Welfare Integrity and Data Improvement Act, which requires all states to maintain policies and practices as necessary to prevent TANF financial assistance from being used in any electronic benefit transfer transaction in: 1) liquor stores; 2) casinos, gambling casinos, or gaming establishments; and 3) adult-oriented entertainment establishments in which performers disrobe or perform in an unclothed state for entertainment (codified in 42 U.S.C. Sec 608(a)(12)). In the 2013 General Session, H.B. 209 prohibited recipients of financial assistance under TANF from accessing benefits through an electronic benefit transfer in a place that exclusively or primarily sells intoxicating liquor, allows gambling, or provides adult entertainment where performers disrobe or perform unclothed (codified in Subsection 35A-3-302(10)). This proposed section further restricts recipients from spending financial assistance on intoxicating beverages or tobacco products, regardless of location. Such unauthorized spending may be considered an Intentional Program Violation.

Statutory or constitutional authorization for this rule:

• Section 35A-3-302
• 42 U.S.C. Section 506

Anticipated cost or savings to:

the state budget:

There is no expected fiscal impact to state revenues or expenditures. There are no additional state employees or resources needed to oversee this proposed section because the changes are not expected to impact existing state practices or procedures. These changes will not increase workload and can be carried out with existing budget.

local governments:

This proposed section is not expected to cause any costs or savings to local governments because TANF programs are federally-funded programs that do not rely on local governments for funding, administration, or enforcement.

small businesses:

This proposed section is not expected to cause any costs or savings to small businesses because these are federally-funded programs and there are no fees or costs associated with these proposed changes. The Department has considered whether this proposed section will have a measurable negative fiscal impact on small businesses and has determined that it will not have a negative fiscal impact.

persons other than small businesses, businesses, or local governmental entities:

The persons that may potentially be affected by these amendments will be benefit recipients and businesses patronized by those recipients. This proposed section is not expected to cause any costs or savings to persons other than small businesses, businesses, or local government entities because these are federally-funded programs and there are no fees or costs associated with this proposed new section.

Compliance costs for affected persons:

This proposed section is not expected to cause any compliance costs for affected persons because this proposed section does not create any new eligibility or administrative requirements for TANF recipients or any other affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

After a thorough analysis, it was determined that this proposed new section will not result in a fiscal impact to businesses.

Jon Pierpont, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Workforce Services
Employment Development
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Amanda McPeck at the above address, by phone at 801-517-4709, by FAX at , or by Internet E-mail at ampeck@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/04/2019

This rule may become effective on:

03/11/2019

Authorized by:

Jon Pierpont, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2019	FY 2020	FY 2021
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

After a thorough analysis, it was determined that this proposed section will not result in a fiscal impact to businesses because these are federally-funded programs and there are no fees or costs associated with this proposed section.

 

The executive director of the Department of Workforce Services, Jon Pierpont, has reviewed and approved this fiscal analysis.

 

 

R986. Workforce Services, Employment Development.

R986-200. Family Employment Program.

R986-200-250. Unauthorized Spending of TANF Financial Assistance Benefits.

(1) TANF financial assistance benefits may not be accessed through an electronic benefit transfer, including through an automated teller machine or point-of-sale device, in an establishment in the state that:

(i) exclusively or primarily sells intoxicating liquor,

(ii) allows gambling or gaming, or

(iii) provides adult-oriented entertainment where performers disrobe or perform unclothed.

(2) TANF financial assistance benefits may not be used to purchase beer, intoxicating beverages, cigarettes, or tobacco products.

(3) Unauthorized spending of TANF financial assistance benefits may constitute an Intentional Program Violation. See Section R986-100-117.

 

KEY: family employment program, SNAP

Date of Enactment or Last Substantive Amendment: [August 31, 2018]2019

Notice of Continuation: September 2, 2015

Authorizing, and Implemented or Interpreted Law: 35A-3-301 et seq.