[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2709 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2709

To amend the Food Stamp Act of 1977 to provide for a national standard 
of interoperability and portability applicable to electronic food stamp 
                         benefit transactions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 4, 1999

   Mr. Goodlatte (for himself, Mr. LaHood, Mr. Moran of Kansas, Mr. 
  Calvert, Mr. Bachus, Mr. Simpson, Mr. Martinez, Mr. Goode, and Mrs. 
   Emerson) introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To amend the Food Stamp Act of 1977 to provide for a national standard 
of interoperability and portability applicable to electronic food stamp 
                         benefit transactions.

    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 Benefit Transfer 
Interoperabilty and Portability Act of 1999''.

SEC. 2. INTEROPERABILTY AND PORTABILITY OF FOOD STAMP TRANSACTIONS.

    Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is amended 
by adding at the end the following:
    ``(k) Interoperabilty and Portability of Electronic Benefit 
Transfer Transactions.--
            ``(1) Requirement.--To protect the integrity of the food 
        stamp program, to ensure cost-effective portability of food 
        stamp benefits across State borders without imposing additional 
        administrative expenses for special equipment to address 
        problems relating to such portability, to enhance the flow of 
        interstate commerce involving electronic transactions involving 
        food stamp benefits under a uniform national standard of 
        interoperability and portability, and to eliminate the 
        inefficiencies resulting from a patchwork of State-administered 
        systems and rules used to carry out the food stamp program, 
        systems that provide for the electronic issuance, use, and 
        redemption of coupons in the form of electronic benefit 
        transfer cards shall be interoperable, and food stamp benefits 
        shall be made portable, among all the States not later than 
        October 1, 2002, in compliance with paragraph (3) and subject 
        to paragraph (4).
            ``(2) Cost.--The cost of achieving the interoperability and 
        portability described in paragraph (1) shall not be imposed on 
        any food stamp retail store, or any wholesale food concern, 
        approved to participate in the food stamp program.
            ``(3) Rules.--The Secretary shall issue and put into 
        effect, not later than December 31, 1999, rules--
                    ``(A) adopting a uniform national standard of 
                interoperability and portability described in paragraph 
                (1) that uses the standard of interoperability and 
                portability adopted by a majority of the States; and
                    ``(B) requiring that any electronic benefit 
                transfer contract that is entered into after December 
                31, 1999, by or on behalf of a State agency shall 
                provide for the interoperability and portability that 
                is described in paragraph (1) and that complies with 
                such standard.
            ``(4) Exemptions--
                    ``(A) Existing contracts.--With respect to an 
                electronic benefit transfer contract in effect on July 
                22, 1999, paragraph (3)(B) shall not apply until the 
                expiration date specified in such contract as so in 
                effect.
                    ``(B) Waiver.--At the request of a State agency, 
                the Secretary may provide 1 waiver to temporarily 
                exempt, for a period ending on or before the date 
                specified under clause (iii), such State agency from 
                complying with the requirements of paragraph (1) if 
                such State agency--
                            ``(i) establishes to the satisfaction of 
                        the Secretary that it faces unusual 
                        technological barriers to achieving by October 
                        1, 2002, the interoperability and portability 
                        described in paragraph (1);
                            ``(ii) demonstrates that the best interest 
                        of food stamp benefit recipients and of the 
                        food stamp program would be served by granting 
                        such waiver with respect to the electronic 
                        benefit transfer system used by such State 
                        agency to administer the food stamp program; 
                        and
                            ``(iii) specifies a date certain by which 
                        such State agency will achieve the 
                        interoperability and portability described in 
                        paragraph (1).
            ``(5) Funding.--Beginning on the effective date of this 
        subsection, the Secretary shall pay 100 percent of the fees for 
        switching and settling interstate transactions--
                    ``(A) incurred after such date and before October 
                1, 2002, in States that use the standard of 
                interoperability and portability adopted by a majority 
                of the States; and
                    ``(B) incurred after September 30, 2002, in States 
                that use the uniform national standard of 
                interoperability and portability adopted under 
                paragraph (3)(A) by the Secretary.
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) Electronic benefit transfer contract.--The 
                term `electronic benefit transfer contract' means a 
                contract that provides for the issuance, use, or 
                redemption of coupons issued in the form of electronic 
                benefit transfer cards.
                    ``(B) Interoperabilty.--The term `interoperability' 
                means a system that enables a coupon issued in the form 
                of an electronic benefit transfer card to be redeemed 
                in any State.
                    ``(C) Interstate transaction.--The term `interstate 
                transaction' means a transaction that is initiated in 1 
                State by the use of an electronic benefit transfer card 
                that is issued in another State.
                    ``(D) Portability.--The term `portability' means a 
                system that enables a coupon issued in the form of an 
                electronic benefit transfer card to be used in any 
                State by a household to purchase food at a retail food 
                store approved under such Act.
                    ``(E) Settling.--The term `settling' means 
                movement, and reporting such movement, of funds from an 
                electronic benefit transfer card issuer that is located 
                in 1 State to a retail food store (or wholesale food 
                concern) that is located in another State, to 
                accomplish an interstate transaction.
                    ``(F) Switching.--The term `switching' means the 
                routing of an interstate transaction that consists of 
                transmitting the details of a transaction 
                electronically recorded through the use of an 
                electronic benefit transfer card in 1 State to the 
                issuer of such card who is in another State.''.
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