[106th Congress Public Law 171]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ171.106]
[[Page 114 STAT. 3]]
Public Law 106-171
106th Congress
An Act
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. <<NOTE: Feb. 11, 2000 - [S. 1733]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Electronic
Benefit Transfer Interoperability and Portability Act of 2000. 7 USC
2011 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Electronic Benefit Transfer
Interoperability and Portability Act of 2000''.
SEC. 2. PURPOSES. <<NOTE: 7 USC 2016 note.>>
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.
[[Page 114 STAT. 4]]
``(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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline. Regulations.>> 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.
[[Page 114 STAT. 5]]
``(5) Exemptions.--
``(A) Contracts.--The requirements of paragraph (2)
shall not apply to the transfer 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.''.
[[Page 114 STAT. 6]]
SEC. 4. STUDY <<NOTE: Deadline. Reports. 7 USC 2016 note.>> 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)).
Approved February 11, 2000.
LEGISLATIVE HISTORY--S. 1733:
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CONGRESSIONAL RECORD:
Vol. 145 (1999):
Nov. 19, considered and passed
Senate.
Vol. 146 (2000):
Jan. 31, considered and passed
House.
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