Bill may limit benefits card

Published 10:24 am Monday, March 28, 2011

Minnesota residents who use EBT (Electronic Benefits Transfer) debit cards could encounter some restrictions under a bill making its way through the State Legislature.

The bill, part of the Health and Human Services omnibus finance bill, would limit cash withdrawals from EBT cards to $20 per month. It would also prohibit retailers from accepting a card without first seeing photo identification. The bill does not make any changes to the EBT food stamp program.

Mower County Human Services Director Julie Stevermer said the bill’s restriction on cash withdrawals could hurt those who withdraw money for rent and other bills each month.

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“Some individuals do not qualify for bank accounts for whatever reason, so that’s how they pay their bills — in cash,” Stevermer said.

Human Services financial specialist Mary Lang agreed that the cash restrictions are a concern.

“The intention of the grant is rent and utilities, so if they can’t take out cash, how can they pay rent and utilities?” Lang said.

Stevermer is also concerned about communities in state border areas, since the legislation would also limit EBT card use to Minnesota. Minnesotans whose nearest stores are across the border in Iowa, Wisconsin or South Dakota, may encounter problems.

However, the photo identification requirement of the bill could help decrease fraud.

Lang said she has seen cases in which someone sells their EBT card and then requests a replacement from the county. If everyone was required to show photo identification when using their cards, selling them would essentially be pointless.

Another requirement of the bill could benefit Mower County specifically, Lang. Under the bill, the state residency requirement for EBT eligibility would be increased from 30 to 90 days.

Lang said many people move to Mower County because of the availability of low income housing, leaving less housing open to those who have lived in the county and paid taxes here their whole lives.

“The bill would keep the resources for the people in the county that need them, and it prevents people from abusing the subsidized housing,” Lang said.

However, Lang and Stevermer both said the bill could use some more thought before it gets passed and potentially signed into law.

“I support pieces of the bill, like that it assists in limiting some of the fraud,” Stevermer said, “but there’s components that have not been thought through.”

Rep. Jeanne Poppe, DFL-Austin, was not immediately available for comment.