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“ELECTRONIC BENEFIT TRANSFER INTEROPERABILITY AND PORTABILITY ACT” mentioning the U.S. Dept of Agriculture was published in the Extensions of Remarks section on pages E63 on Feb. 2, 2000.
The publication is reproduced in full below:
ELECTRONIC BENEFIT TRANSFER INTEROPERABILITY AND PORTABILITY ACT
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speech of
HON. EVA M. CLAYTON
of north carolina
in the house of representatives
Monday, January 31, 2000
Mrs. CLAYTON. Mr. Speaker, I rise today to join with my colleagues in support of the electronic Benefit Transfer Interoperability and Portability Act of 1999. This legislation will enable food stamp shoppers to redeem their nutrition benefits electronically in authorized stores located beyond the borders of their states. The need for this legislation is significant.
According to a recent study conducted by Benton International on behalf of the National Automated ClearingHouse Association (NACHA), there were 1,685,857 interstate food stamp transactions during a six-
month period. If we assume that interstate food stamp transactions existed nationwide for the entire year of 1999, the projected annual nationwide volume of food stamp interstate transaction would be 5.7 million. Although the vast majority of food stamp recipients spend their benefits at retailers close to home, the Benton study proves that a significant number of shoppers need the flexibility to shop at stores across state lines, which is a program benefit enjoyed without restrictions under the previous coupon redemption system.
When the U.S. Department of Agriculture Food and Nutrition Service
(FNS) replaced food stamp coupons with ``Electronic Benefit Transfer'' cards, program participants and retailers experienced enormous difficulty since there was lack of uniformity among state EBT equipment. Furthermore, FNS incurs additional costs to implement its regulation requiring States to equip authorized food retailers, upon request, with EBT-only terminal. For example, using a leasing fee of
$21.50 per month per terminal, the annual cost of the government for EBT-only terminal deployment nationwide may range from $25,000 to 75,000. Even with the EBT-only terminal, the different designs and procedures in state equipment continued to prevent shopping in other states.
S. 1733 is a practical legislative solution to these problems. First it gives the Secretary of Agriculture the authority to develop a national uniform standard of interoperability based on the ``QUEST'' rules which were developed by retailers, State Food Stamp Program Administrators, and the Food and Nutrition Service under the guidance of the NACHA EBT Council. Although the QUEST rules are being used by a majority of the states, this legislation gives the Secretary authority to make the changes needed to fit the goal of the Food Stamp Program.
Also, S. 1733 limits the annual costs of switching and settling fees at $500,000.00. This is a positive change from the original draft of this legislation because the federal government should not finance new technology utilized by retailers.
From the outset, the Administration has worked tirelessly to ensure the success of the Food Stamp Program's conversion to electronic benefit delivery, and I offer my continued commitment and support in making sure that this critical nutrition assistance is provided efficiently and effectively.
Mr. Speaker, I urge all of my colleagues to support this legislation.
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