Sec. 4104. Improvements to electronic benefit transfer system
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Section 7 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016 ) is amended— in subsection (f)(2)(C), in the subparagraph heading, by striking and inserting Interchange ; and Prohibited in subsection (h), by striking paragraph
(13)and inserting the following: In this paragraph, the term switching means the routing of an intrastate or interstate transaction that consists of transmitting the details of a transaction electronically recorded through the use of an EBT card in 1 State to the issuer of the card in— the same State; or another State. No interchange fee shall apply to an electronic benefit transfer transaction under this subsection. No fee charged by a benefit issuer (including any affiliate of a benefit issuer), or by any agent or contractor when acting on behalf of such benefit issuer, to a third party relating to the switching or routing of benefits to the same benefit issuer (including any affiliate of the benefit issuer) shall apply to an electronic benefit transfer transaction under this subsection. The prohibition under subclause
(I)shall be effective through fiscal year 2022. . Section 7(f)(5) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016(f)(5) ) is amended by adding at the end the following: A farmers’ market or direct marketing farmer that is exempt under paragraph (2)(B)(i) shall be allowed to operate an individual electronic benefit transfer point of sale device at more than 1 location under the same supplemental nutrition assistance program authorization, if— the farmers’ market or direct marketing farmer provides to the Secretary information on location and hours of operation at each location; and the point of sale device used by the farmers’ market or direct marketing farmer is capable of providing location information of the device through the electronic benefit transfer system; or if the Secretary determines that the technology is not available for a point of sale device to meet the requirement under subclause (I), the farmers' market or direct marketing farmer provides to the Secretary any other information, as determined by the Secretary, necessary to ensure the integrity of transactions processed using the point of sale device. . Section 7(h) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016(h) ) is amended by adding at the end the following: Not later than 18 months after the date of enactment of this paragraph, the Comptroller General of the United States (referred to in this paragraph as the Comptroller General ) shall evaluate for each electronic benefit transfer system of a State agency selected in accordance with clause (ii)— any type of fee charged— by the benefit issuer (or an affiliate, agent, or contractor of the benefit issuer) of the State agency for electronic benefit transfer-related services, including electronic benefit transfer-related services that did not exist before February 7, 2014; and to any retail food stores, including retail food stores that are exempt under subsection (f)(2)(B)(i) for electronic benefit transfer-related services; in consultation with the Secretary and the retail food stores within the State, any electronic benefit transfer system outages affecting the EBT cards of the State agency; in consultation with the Secretary, any type of entity that— provides electronic benefit transfer equipment and related services to the State agency, any benefit issuers of the State agency, or any retail food stores within the State; routes or switches transactions through the electronic benefit transfer system of the State agency; or has access to transaction information in the electronic benefit transfer system of the State agency; and in consultation with the Secretary, any emerging entities, services, or technologies in use with respect to the electronic benefit transfer system of the State agency. The Comptroller General shall select for evaluation under clause (i)— with respect to each benefit issuer that provides electronic benefit transfer-related services to 1 or more State agencies, not fewer than 1 electronic benefit transfer system provided by that benefit issuer; and any electronic benefit transfer system of a State agency that has experienced significant or frequent outages during the 2-year period preceding the date of enactment of this paragraph. Not later than 2 years after the date of enactment of this paragraph, the Comptroller General shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report based on the evaluation carried out under subparagraph
(A)that includes— a description of the types of entities that— provide electronic benefit transfer equipment and related services to State agencies, benefit issuers, and retail food stores; route or switch transactions through electronic benefit transfer systems of State agencies; or have access to transaction information in electronic benefit transfer systems of State agencies; a description of emerging entities, services, and technologies in use with respect to electronic benefit transfer systems of State agencies; and a summary of— the types of fees charged— by benefit issuers (or affiliates, agents, or contractors of benefit issuers) of State agencies for electronic benefit transfer-related services, including whether the types of fees existed before February 7, 2014; and to any retail food stores, including retail food stores that are exempt under subsection (f)(2)(B)(i) for electronic benefit transfer-related services; the causes of any electronic benefit transfer system outages affecting EBT cards; and potential solutions to minimize the disruption of outages to participating households. Not later than 18 months after the date of enactment of this paragraph, the Secretary shall review for each electronic benefit transfer system of a State agency selected under clause (ii)— any contracts or other agreements between the State agency and the benefit issuer of the State agency to determine— the customer service requirements of the benefit issuer, including call center requirements; and the consistency and compatibility of data provided by the benefit issuer to the Secretary for appropriate oversight of possible fraudulent transactions; and the use of third-party applications that access the electronic benefit transfer system to provide electronic benefit transfer account information to participating households. The Secretary shall select for the review under clause
(i)not fewer than 5 electronic benefit transfer systems of State agencies, of which— with respect to each benefit issuer that provides electronic benefit transfer-related services to 1 or more State agencies, not fewer than 1 shall be provided by that benefit issuer; and not more than 4 shall have experienced significant or frequent outages during the 2-year period preceding the date of enactment of this paragraph. Based on the study conducted by the Comptroller General of the United States under paragraph (15)(B) and the review conducted by the Secretary under subparagraph (A), the Secretary shall promulgate such regulations or issue such guidance as the Secretary determines appropriate— to prohibit the imposition of any fee that is inconsistent with paragraph (13); to minimize electronic benefit system outages; to update procedures to handle electronic benefit transfer system outages that minimize disruption to participating households and retail food stores while protecting against fraud and abuse; to develop cost-effective customer service standards for benefit issuers, including benefit issuer call centers or other customer service options equivalent to call centers, that would ensure adequate customer service for participating households; to address the use of third-party applications that access electronic benefit transfer systems to provide electronic benefit transfer account information to participating households, including by establishing safeguards consistent with sections 9(c) and 11(e)(8) to protect the privacy of data relating to participating households and approved retail food stores; and to improve the reliability of electronic benefit transfer systems. Not later than 2 years after the date of enactment of this paragraph, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes a description of the effects, if any, on an electronic benefit transfer system of a State agency from the use of third-party applications that access the electronic benefit transfer system to provide electronic benefit transfer account information to participating households. . Section 9 of the Food and Nutrition Act ( 7 U.S.C. 2018 ) is amended— in subsection (a)(1)— in the fourth sentence, by striking No retail food store and inserting the following: No retail food store ; in the third sentence, by striking Approval and inserting the following: Approval ; in the second sentence— by striking food; and
(D)the and inserting the following: “food; any information, if available, about the ability of the anticipated or existing electronic benefit transfer equipment and service provider of the applicant to provide sufficient information through the electronic benefit transfer system to minimize the risk of fraudulent transactions; and the ; by striking concern;
(C)whether and inserting the following: “concern; whether ; by striking applicant;
(B)the and inserting the following: “applicant; the ; by striking following:
(A)the nature and inserting the following: “following: the nature ; and in the matter preceding clause
(i)(as so designated), by striking In determining and inserting the following: In determining ; and in the first sentence, by striking (a)(1) Regulations and inserting the following: Regulations ; in subsection (a), by adding at the end the following: Before implementing clause
(iv)of paragraph (1)(B), the Secretary shall issue guidance for retail food stores on how to select electronic benefit transfer equipment and service providers that are able to meet the requirements of that clause. ; and in subsection (c), in the first sentence, by inserting records relating to electronic benefit transfer equipment and related services, transaction and redemption data provided through the electronic benefit transfer system, after purchase invoices, .
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