[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1733 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1733

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 SENATE OF THE UNITED STATES

                            October 14, 1999

Mr. Fitzgerald (for himself, Mr. Leahy, Mr. Lugar, Mr. Harkin, and Mr. 
Craig) introduced the following bill; which was read twice and referred 
        to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 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. PURPOSES.

    The purposes of this Act are--
            (1) to protect the integrity of the food stamp program;
            (2) 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 the portability;
            (3) to enhance the flow of interstate commerce involving 
        electronic transactions involving food stamp benefits under a 
        uniform national standard of interoperability and portability; 
        and
            (4) to eliminate the inefficiencies resulting from a 
        patchwork of State-administered systems and regulations 
        established to carry out the food stamp program

SEC. 3. 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) Definitions.--In this subsection:
                    ``(A) Electronic benefit transfer card.--The term 
                `electronic benefit transfer card' means a card that 
                provides benefits under this Act through an electronic 
                benefit transfer service (as defined in subsection 
                (i)(11)(A)).
                    ``(B) Electronic benefit transfer contract.--The 
                term `electronic benefit transfer contract' means a 
                contract that provides for the issuance, use, or 
                redemption of coupons in the form of electronic benefit 
                transfer cards.
                    ``(C) 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.
                    ``(D) 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.
                    ``(E) 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 or wholesale food concern approved under this 
                Act.
                    ``(F) 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.
                    ``(G) Smart card.--The term `smart card' means an 
                intelligent benefit card described in section 17(f).
                    ``(H) 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 the card that is in another State.
            ``(2) Requirement.--Not later than October 1, 2002, the 
        Secretary shall ensure that systems that provide for the 
        electronic issuance, use, and redemption of coupons in the form 
        of electronic benefit transfer cards are interoperable, and 
        food stamp benefits are portable, among all States.
            ``(3) Cost.--The cost of achieving the interoperability and 
        portability required under paragraph (2) shall not be imposed 
        on any food stamp retail store, or any wholesale food concern, 
        approved to participate in the food stamp program.
            ``(4) Standards.--Not later than 120 days after the date of 
        enactment of this subsection, the Secretary shall promulgate 
        regulations that--
                    ``(A) adopt a uniform national standard of 
                interoperability and portability required under 
                paragraph (2) that is based on the standard of 
                interoperability and portability used by a majority of 
                State agencies.
                    ``(B) require that any electronic benefit transfer 
                contract that is entered into 30 days or more after the 
                regulations are promulgated, by or on behalf of a State 
                agency, provide for the interoperability and 
                portability required under paragraph (2) in accordance 
                with the national standard.
            ``(5) Exemptions--
                    ``(A) 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), the State agency from 
                complying with the requirements of paragraph (2), if 
                the State agency--
                            ``(i) establishes to the satisfaction of 
                        the Secretary that the State agency faces 
                        unusual technological barriers to achieving by 
                        October 1, 2002, the interoperability and 
                        portability required under paragraph (2);
                            ``(ii) demonstrates that the best interest 
                        of food stamp benefit households and of the 
                        food stamp program would be served by granting 
                        the waiver with respect to the electronic 
                        benefit transfer system used by the State 
                        agency to administer the food stamp program; 
                        and
                            ``(iii) specifies a date by which the State 
                        agency will achieve the interoperability and 
                        portability required under paragraph (2).
                    ``(B) Smart card systems.--The Secretary shall 
                allow a State agency that is using smart cards for the 
                delivery of food stamp program benefits to comply with 
                the requirements of paragraph (2) at such time after 
                October 1, 2002, as the Secretary determines that a 
                practicable technological method is available for 
                interoperability with electronic benefit transfer 
                cards.
            ``(6) Funding.--
                    ``(A) In general.--In accordance with regulations 
                promulgated by the Secretary, the Secretary shall pay 
                100 percent of the costs incurred by a State agency 
                under this Act for switching and settling interstate 
                transactions--
                            ``(i) incurred after the date of enactment 
                        of this subsection and before October 1, 2002, 
                        if the State agency uses the standard of 
                        interoperability and portability adopted by a 
                        majority of State agencies; and
                            ``(ii) incurred after September 30, 2002, 
                        if the State agency uses the uniform national 
                        standard of interoperability and portability 
                        adopted under paragraph (4)(A).
                    ``(B) Limitation.--The total amount paid to State 
                agencies for each fiscal year under subparagraph (A) 
                shall not exceed $500,000.''.

SEC. 4. STUDY OF ALTERNATIVES FOR HANDLING ELECTRONIC BENEFIT 
              TRANSACTIONS INVOLVING FOOD STAMP BENEFITS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Agriculture shall study and report to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate on alternatives for 
handling interstate electronic benefit transactions involving food 
stamp benefits provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 
et seq.), including the feasibility and desirability of a single hub 
for switching (as defined in section 7(k)(1) of that Act (as added by 
section 3)).
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