WHAT IS EBT (ELECTRONIC BENEFITS TRANSFER) AND HOW DOES IT WORK?
As part of federal welfare reform laws enacted in 1996, Congress required all states to change the way they distribute food stamp benefits. Instead of giving recipients food stamp coupons, all states are required by October 2002 to switch over to an Electronic Benefits Transfer (EBT) system for distributing benefits. 7 U.S.C. 2016(I)(1). Essentially, food stamp recipients will use an electronic debit card system instead of paper coupons to purchase food. California will be one of the last states to switch over to an EBT system. In 1997, the California Electronic Benefits Transfer Act was passed as part of the CalWORKs welfare reform legislative package. Welf. & Inst. Code 10065 et seq. The Act requires California to develop a statewide EBT system for distributing food stamp benefits and, at the option of individual counties, cash assistance and other welfare benefits. Welf. & Inst. Code 10069. Pilot EBT programs have already been implemented in San Bernardino and San Diego Counties, wi