[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1485 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1485

To exclude certain electronic benefit transfer programs established by 
  State or local governments from provisions of the Electronic Funds 
                             Transfer Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 1995

  Mr. Vento introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To exclude certain electronic benefit transfer programs established by 
  State or local governments from provisions of the Electronic Funds 
                             Transfer Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Fund Transfer Amendments 
of 1995''.

SEC. 2. ELECTRONIC BENEFIT TRANSFERS.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) State and local government electronic benefit 
        transfer programs.--
                    ``(A) Exemption generally.--Except as provided in 
                subparagraphs (B) and (C), the Board may not, under 
                paragraph (1), make any disclosure, protection, 
                responsibility, or remedy established under or pursuant 
                to this title applicable to an electronic benefit 
                transfer program established under State or local law, 
                or administered by a State or local government.
                    ``(B) Exception for direct deposit into recipient's 
                account.--Subparagraph (A) shall not apply with respect 
                to any electronic funds transfer under an electronic 
                benefit transfer program for deposits directly into a 
                consumer account held by the recipient of the benefit.
                    ``(C) Condition relating to emergency services.--
                Subparagraph (A) shall not apply with respect to an 
                electronic benefit transfer program which involves the 
                payment of benefits to a recipient through the use of a 
                debit card unless the Board determines that, in the 
                event of a report by the recipient of the loss or theft 
                of the card--
                            ``(i) sufficient emergency services are 
                        available for the recipient while the report is 
                        under investigation or until a replacement card 
                        is made available to the recipient; and
                            ``(ii) under no circumstances would the 
                        recipient be liable for losses incurred with 
                        respect to the card after such report is made.
                    ``(D) Rule of construction.--No provision of this 
                paragraph may be construed as affecting or altering the 
                protections otherwise applicable with respect to 
                benefits established by Federal, State, or local 
                statute.
                    ``(E) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the term 
                `electronic benefit transfer program'--
                            ``(i) means a program under which a 
                        Government agency distributes needs-tested 
                        benefits by establishing accounts to be 
                        accessed by recipients electronically, such as 
                        through automated teller machines, or point-of-
                        sale terminals; and
                            ``(ii) does not include--
                                    ``(I) any program established for 
                                the purpose of enforcing the support 
                                obligations owed by absent parents to 
                                their children and the custodial 
                                parents with whom the children are 
                                living; or
                                    ``(II) employment-related payments, 
                                including salaries and pension, 
                                retirement, or unemployment benefits 
                                established by Federal, State, or local 
                                governments.''.
                                 <all>