TPP OMB Appendix B- Legal Authority

OMB Control No.: 0584-XXXX

Expiration Date: XX/XX/XXXX

Appendix B. Legal Authority

Section 4011 of the Agricultural Act of 2014 (P.L. 113-79; “2014 farm bill”) ended the provision of EBT equipment and services free of charge to retailers participating in SNAP. Retailers that previously received EBT equipment and payment processing services free of charge are now required to procure equipment and services independently. Since the passage of the Agricultural Act of 2014, the number of vendors offering EBT equipment and services to SNAP retailers has grown, but little is known about their business practices, including the services offered, pricing structure, and contractual agreements. These changes in the program requirements provide the impetus for this study.

Figure 1: Excerpt from the Agricultural Act of 2014, Section 4011.

USDA Food Nutrition Service

Third-Party Processor Services, Fees, and Business Practices