1. (a) Participating retailers must comply with all applicable regulations in 7 CFR Parts 274 and 278, and this chapter.
2. (b) A retailer or third-party processor and the retailer management EBT contractor must execute a written agreement adopted in compliance with 7 CFR §274.12(h)(6).
3. (c) Retailer participation in the EBT system is voluntary. An FNS-authorized retailer must notify the retailer management EBT contractor in writing that it wishes to decline participation in the EBT system.

4. (d) Retailers suspended or terminated as redeemers of food stamp benefits, for any reason, must:

   1. (1) immediately notify the retailer management EBT contractor; and
   2. (2) cease using the EBT system to redeem food stamp benefits. Upon notification of suspension or termination by a retailer, the retailer management EBT contractor will discontinue connection to the retailer.

5. (e) Before implementing EBT, the retailer management EBT contractor must provide a retailer's employees with training in the processing of EBT program transactions, including:

   1. (1) operation of the equipment if supplied by the retailer management EBT contractor; and
   2. (2) notifying the retailer in advance of the retailer's scheduled time for in-person training; or
   3. (3) in lieu of in-person training, retailers may receive training by phone or by mail.

6. (f) Access to the EBT system is granted:

   1. (1) after training has been completed in person, by phone, or by mail; and
   2. (2) when system testing has been approved.

7. (g) A retailer must not subject any 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:

   1. (1) race;
   2. (2) color;
   3. (3) national origin;
   4. (4) age;
   5. (5) sex;
   6. (6) disability;
   7. (7) religious belief; or
   8. (8) political belief.
8. (h) 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.

Source Note:The provisions of this §372.1703 adopted to be effective March 17, 2004, 29 TexReg 2661; transferred effective April 1, 2004, as published in the Texas Register July 2, 2004, 29 TexReg 6359.