(a) To participate in the EBT system, a retailer must be:
  (1) currently authorized by the U.S. Department of Agriculture to participate in SNAP; or
  (2) a nonfood (not Food and Nutrition Service-authorized) retailer that provides TANF cash-back, and receives no more than 10% of its gross revenue from entertainment.
(b) A retailer must represent and warrant that the facility in which a point-of-sale terminal is or will be located complies with all applicable building and zoning codes and ordinances.
(c) A retailer or third-party processor:
  (1) must represent and warrant that it validly exists and is in good standing under the laws of the jurisdiction of its organization and the State of Texas;
  (2) must not have been debarred from contracting by any unit of the federal government or any unit of a state government; and
  (3) must not be delinquent in making State of Texas franchise tax payments, if the retailer or third-party processor is a for-profit corporation.
(d) A retailer must comply with all applicable regulations in 7 CFR Parts 274 and 278, and this chapter.
(e) A retailer or third-party processor and the retailer management EBT contractor must execute a written agreement with HHSC adopted in compliance with 7 CFR §274.12(g)(6).
(f) Retailer participation in the EBT system is voluntary. A Food and Nutrition Service-authorized retailer must notify the retailer management EBT contractor in writing that it wishes to decline participation in the EBT system.
(g) A retailer that is suspended or terminated as a redeemer of SNAP benefits, for any reason, must:
  (1) immediately notify the retailer management EBT contractor, whereupon the retailer management EBT contractor will discontinue connection to the retailer; and
  (2) stop using the EBT system to redeem SNAP benefits.
(h) The retailer management EBT contractor provides a retailer's employees with training, in person, by phone, or by mail, in the processing of EBT program transactions, including operation of the equipment if the retailer management EBT contractor supplies the equipment. Employee training is completed before the retailer accepts EBT program transactions. If the retail management EBT contractor is providing in-person training, the retailer management EBT contractor notifies the retailer in advance of the scheduled time for in-person training.
(i) Access to the EBT system is granted:
  (1) after the training in subsection (h) of this section has been completed; and
  (2) when system testing has been approved.
(j) A retailer must not subject a client, employee, or applicant to actions that are discriminatory in nature or refuse to process a client's EBT program transaction on the grounds of race, color, national origin, age, sex, disability, religious belief, or political belief.
(k) A retailer redeeming TANF benefits by providing cash-back on a no-purchase-required basis must maintain a sufficient amount of cash on hand to accommodate cash-back transaction volumes.
(l) A retailer must not ask a client to reveal the client's personal identification number.

Source Note: The provisions of this §372.1702 adopted to be effective September 1, 2009, 34 TexReg 5361