[Congressional Record Volume 146, Number 7 (Wednesday, February 2, 2000)]
[Extensions of Remarks]
[Page E63]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    ELECTRONIC BENEFIT TRANSFER INTEROPERABILITY AND PORTABILITY ACT

                                 ______
                                 

                               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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