Sec. 4022. National gateway
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/bill/115/hr/2/ih/section-4022A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 7 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016 ) is amended— in subsection
(d)by striking benefits by benefit issuers and inserting benefit issuers and other independent sales organizations, third-party processors, and web service providers that provide electronic benefit transfer services or equipment to retail food stores and wholesale food concerns, , and by adding at the end the following: For purposes of this section: The term independent sales organization means a person or entity that— is not a third-party processor; and engages in sales or service to retail food stores with respect to point-of-sale equipment necessary for electronic benefit transfer transaction processing. The term third-party processor means an entity, including a retail food store operating its own point-of-sale terminals, that is capable of routing electronic transfer benefit transactions for authorization. The term web service provider means an entity that operates a generic online purchasing website that can be customized for online electronic benefit transfer transactions for authorized retail food stores. Subject to paragraph (5), the Secretary shall establish a national gateway for the purpose of routing all supplemental nutrition assistance program benefit transfer transactions (in this subsection referred to as transactions unless the context specifies otherwise) to the appropriate benefit issuers for purposes of transaction validation and settlement. The Secretary shall— ensure that protections regarding privacy, security, ease of use, and access relating to supplemental nutrition assistance benefits are maintained for benefit recipients and retail food stores; ensure redundancy for processing of transactions; ensure real-time monitoring of transactions; ensure that all entities that connect to such gateway, and all others that connect to such entities, meet and follow transaction messaging standards, and other requirements, established by the Secretary; ensure the security of transactions by using the most effective technology available that the Secretary considers to be appropriate and cost-effective; and ensure that all transactions are routed through such gateway. Each State agency shall ensure that all of its benefit issuers connect to such gateway. A State agency may opt to require its benefit issuer to route cash transactions through such gateway, subject to terms established by the Secretary. Before the Secretary implements in all the States a national gateway established under paragraph (2), the Secretary shall conduct a feasibility study to assess the feasibility of routing transactions through such gateway. The feasibility study conducted under subparagraph
(A)shall provide, at a minimum, all of the following: A comprehensive analysis of opportunities and challenges presented by implementation of such gateway. One or more options for carrying forward each of such opportunities and for mitigating each of such challenges. Data for purposes of analyzing the implementation of, and on-going cost of managing, such gateway. One or more models for cost-neutral on-going operation of a national gateway. Other criteria, including security criteria, established by the Secretary. The Secretary shall complete the feasibility study required by subparagraph
(B)not later than 1 year after the date of the enactment of the Agriculture and Nutrition Act of 2018 . Not later than 1 year after the date of the completion of such study, the Secretary shall complete the nationwide implementation of a national gateway established under paragraph
(2)unless the Secretary determines, based on such study, that more time is needed to implement such gateway nationwide or that nationwide implementation of such gateway is not in the best interest of the operation of the supplemental nutrition assistance program. If the Secretary makes a determination described in subparagraph (D), 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 the basis of such determination. Any information collected through such gateway about a specific retail food store, wholesale food concern, person, or other entity, and any investigative methodology or criteria used for program integrity purposes that operates at or in conjunction with such gateway, shall be exempt from the disclosure requirements of section 552(a) of title 5 of the United States Code pursuant to section 552(b)(3)(B) of title 5 of the United States Code. The Secretary shall limit the use or disclosure of information obtained under this subsection in a manner consistent with section 9(c). There are authorized to be appropriated $10,500,000 for fiscal year 2019, and $9,500,000 for each of the fiscal years 2020 through 2023, to carry out this subsection. Not more than $1,000,000 of the funds appropriated under this paragraph may be used for the feasibility study under paragraph (5)(B). Benefit issuers and third-party processors shall pay fees to the gateway operator, in a manner prescribed by the Secretary, to directly access and route transactions through the national gateway. The Secretary shall ensure that fees are collected and used solely for the operation of the gateway. Fees shall be established by the Secretary in amounts proportionate to the number of transactions routed through the gateway by each benefit issuer and third-party processor, and based on the cost of operating the gateway in a fiscal year. The Secretary shall evaluate annually the cost of operating such gateway and shall adjust the fee in effect for a fiscal year to reflect the cost of operating such gateway, except that an adjustment under this subparagraph for any fiscal year may not exceed 10 percent of the fee charged under this paragraph in the preceding fiscal year. . The 1st sentence of section 9(c) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2018(c) ) is amended by inserting contracts for electronic benefit transfer services and equipment, records necessary to validate the FNS authorization number to accept and redeem benefits, after invoices, .
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