[Congressional Record Volume 143, Number 80 (Tuesday, June 10, 1997)]
[Senate]
[Page S5464]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FAIRCLOTH (for himself and Mr. Shelby):
  S. 874. A bill to amend title 31, United States Code, to provide for 
an exemption to the requirement that all Federal payments be made by 
electronic funds transfer; to the Committee on Finance.


                electronic benefits transfer legislation

  Mr. FAIRCLOTH. Mr. President, I am pleased to introduce legislation 
today that would modify the mandatory EBT legislation that was passed 
in 1996.
  Mr. President, in 1996, the Congress amended the Federal Financial 
Management Act of 1994--as part of the Omnibus Appropriations Act of 
1996, Public Law 104-134--to require that all Federal payments after 
January 1, 1999, be made by electronic funds transfer.
  The legislation I am introducing today would provide an exemption 
from that requirement for Social Security and veterans benefits, except 
that a recipient may send written notification to the agency head 
authorizing that such payments be made electronically. Thus, the 
legislation makes it optional for the vast majority of Federal 
beneficiaries, particularly retirees.
  This would affect nearly 20 million Social Security recipients who 
still receive their check through the mail. Also, nearly 40 percent of 
veterans benefits are still by mail.
  Mr. President, I have found that many retirees are unaware of this 
requirement, and do not desire to have their checks electronically 
deposited.
  Mr. President, these are not welfare checks. The Government should 
not force retirees to accept this mandate.
  In fact, AARP testified before the House Government Reform and 
Oversight Committee last year, stating that ``AARP believes that direct 
deposit of federal payments should remain optional for current payment 
recipients.'' Further, AARP has found that Social Security recipients 
receiving checks by mail were clustered in a handful of States, 
including my home State of North Carolina.
  Mr. President, many people worked all of their lives for these 
benefits. They have the right to receive them. Many people served their 
country for these benefits. The very notion that they will be told 
where their benefits are being sent is abhorrent. Further, it has even 
been suggested that benefits could be withheld if persons do not choose 
a bank to receive a check.
  Mr. President, this is wrong. I am not opposed to direct deposit, but 
I am opposed to it being forced on people. I would urge the Senate to 
act soon on this legislation.

                          ____________________