NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
September 7, 2004

Revised IM 4952

TO:		County Social Service Directors
Economic Assistance Policy Regional Representatives
Economic Assistance Policy Quality Control Reviewers

FROM:	Blaine Nordwall, Director, Economic Assistance Policy
		Mike Schwindt, Director, Child Support Enforcement
		David Zentner, Director, Medical Services
 
SUBJECT:	Electronic Payment Card (EPC) – Child Support Enforcement and Temporary Assistance for Needy Families

PROGRAMS:	Child Support Enforcement, Food Stamps and Temporary Assistance for Needy Families (TANF)

RETENTION: 	Until Manualized

EFFECTIVE:	September 13, 2004 for new cases and October 1, 2004 for ongoing cases.

The North Dakota Department of Human Services has determined that issuing Visa branded debit cards enhances self-sufficiency by expanding TANF clients’ knowledge of banking systems and avoidance of check loss while being cost-effective compared to the cost of printing checks.  Debit cards provide a fast, secure, and efficient method of distributing TANF benefits while ensuring recipients a convenient and safe way to access their money.

The electronic payment card is a prepaid debit card that will replace the TANF check process starting with new applications processed on or after September 13, 2004 and ongoing cases starting with the October 2004 regular issuance.  The exception to the prepaid debit card is protective payee situations. Protective payee cases will continue to receive TANF benefits by check.

Child Support Enforcement
The electronic payment card will also be available to Child Support Enforcement customers. It is anticipated the enrollment card process will take place the same time the TANF electronic payment card is rolled out.  Child Support Enforcement customers will have the option of receiving payments through the electronic payment card or by direct deposit.

Only the first child support payment received will be in the form of a check.  Thereafter, the customer will have to select to receive payments through the electronic payment card or direct deposit.  The electronic payment card rules and procedures from U.S. Bank are the same as the electronic payment card for TANF.

Electronic Benefits
1.	Upon authorization of a TANF benefit for new applications or a new child support card enrollee, two processes occur.
 
a.	Recipient information that includes the primary individual’s name, social security number, address, and telephone number are transmitted each working day to US Bank at 9:00 p.m.  A Visa card is printed and is delivered within three to five U.S. Mail days from the date the case is authorized for new cases or when a new card is required.  Total time, from transmission of card account information to receipt of card by recipient, averages five business (U.S. Mail) days.

b.	When a benefit is authorized for a household, the benefit amount is electronically deposited to the debit card.   Funds are transferred onto accounts on all days other than Saturdays, Sundays, and federal holidays.  It takes 24 hours for the funds to transfer to the TANF recipient’s account from when those funds are transmitted to U.S. Bank.  The transmission will occur after 9:00 p.m. on workdays.

2.	Upon authorization of a TANF benefit for ongoing cases for regular issuance, the funds are transferred the second to the last working day of the month and will be available the first working day of each month.

3.	Upon authorization of a TANF underpayment or supplement, the funds are transferred to the TANF recipient’s account. It takes 24 hours for the funds to transfer to the TANF recipient’s account from when those funds are transmitted to U.S. Bank.  Example – If benefit information is transmitted Friday night, the funds will be available to the recipient by 8:00 a.m. on Tuesday.
  
Electronic payment cards will contain the name of the primary individual in the household.  Households receiving benefits from TANF that elect to receive Child Support Enforcement payments via EPC will receive an electronic payment card from each program.  The TANF card will have a white star on its face to distinguish it from the Child Support card.

Closing a TANF case does not invalidate the electronic payment card.  The funds on the card remain available and the card remains valid upon TANF case closure.

TANF households will receive information on the use of the card, fees related to the card, and privacy information upon receipt of the card from U.S. Bank.  

Child Care Assistance

Since TANF payments are not counted for childcare, this will not have an impact on Child Care Assistance program policy. 

Food Stamps

The following policy was changed as a result of the Electronic Payment Card (EPC).

Income Only in Month Received 430-05-50-15-20

For households initially approved for both food stamps benefits and TANF at the same time, the initial TANF grant must be considered when prospectively determining the initial month of food stamp eligibility and benefits if it can be reasonably anticipated during the initial month. 
 
The initial TANF grant must be anticipated for the initial month of food stamp eligibility if authorization of initial month's TANF benefit is made prior to the last three five working days of the month.
 
Example:
A household applies for both TANF and food stamps on May 20 September 20, 2004 and is authorized for initial month's TANF benefit in the amount of $300 on May 30 September 30. The initial TANF grant of $300 cannot be anticipated for May September because TANF authorization was not completed prior to the last three five working days of May September.  Therefore, the May September TANF grant is not used to determine initial May September food stamps. 
If TANF authorization is completed on May 26 28 before September 24 instead of May 30 September 30 the $300 initial TANF grant is used as anticipated income for May September.
The October TANF benefit must be anticipated when working October food stamp benefits.   
Unearned Income 430-05-50-20-10
The timeframe under item number 12 – Child Support Income changed as follows:
If child support is received via check, direct deposit or electronic payment card (EPC), the worker must allow three five working days for posting to the financial account in determining when the income was received.

LIHEAP

Providing TANF benefits via the electronic payment card will not impact LIHEAP policy.

Medicaid

The electronic payment card does not affect current Medicaid policy.  TANF income is disregarded as income for Medicaid (MC 510-05-85-30).   For Child Support purposes when prospectively budgeting, the information on the FACSES ledger can be used, as it is the best information available to estimate Child Support received or paid for the next month.  When processing a month after the fact, such as processing an application, one of the three prior months, or making any retroactive adjustment to a case, Medicaid policy still requires the use of actual Child Support income received.

If you have any questions regarding this IM, please contact your Regional Representative.