[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Pages S15152-S15153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  ELECTRONIC BENEFIT TRANSFER INTEROPERABILITY AND PORTABILITY ACT OF 
                                  1999

  S. 1733, passed during today's session, follows:

                                S. 1733

       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 
     Interoperability 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. INTEROPERABILITY 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) Interoperability 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) Interoperability.--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 210 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; and
       ``(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) Contracts.--The requirements of paragraph (2) shall 
     not apply to the transfer

[[Page S15153]]

     of benefits under an electronic benefit transfer contract 
     before the expiration of the term of the contract if the 
     contract--
       ``(i) is entered into before the date that is 30 days after 
     the regulations are promulgated under paragraph (4); and
       ``(ii) expires after October 1, 2002.
       ``(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), 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 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).
       ``(C) 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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