Sec. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS
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## SEC. 825 ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS ###
(a)In General Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)) is amended— ####
(1)by striking “ (i)(1)(A) Any State ” and all that follows through the end of paragraph
(1)and inserting the following: > > ### “(i) Electronic Benefit Transfers > > > #### “(1) In general > > > ##### “(A) Implementation > > Not later than October 1, 2002, each State agency shall implement an electronic benefit transfer system under which household benefits determined under section 8(a) or 26 are issued from and stored in a central databank, unless the Secretary provides a waiver for a State agency that faces unusual barriers to implementing an electronic benefit transfer system. > > > ##### “(B) Timely implementation > > Each State agency is encouraged to implement an electronic benefit transfer system under subparagraph
(A)as soon as practicable. > > > ##### “(C) State flexibility > > Subject to paragraph (2), a State agency may procure and implement an electronic benefit transfer system under the terms, conditions, and design that the State agency considers appropriate. > > > ##### “(D) Operation > > An electronic benefit transfer system should take into account generally accepted standard operating rules based on— > > > ###### “(i) > > commercial electronic funds transfer technology; > > > ###### “(ii) > > the need to permit interstate operation and law enforcement monitoring; and > > > ###### “(iii) > > the need to permit monitoring and investigations by authorized law enforcement agencies.” > ; ####
(2)in paragraph (2)— #####
(A)by striking “effective no later than April 1, 1992,”; #####
(B)in subparagraph (A)— ######
(i)by striking “, in any 1 year,”; and ######
(ii)by striking “on-line”; #####
(C)by striking subparagraph
(D)and inserting the following: > > ##### “(D) > > > ######
(i)> > measures to maximize the security of a system using the most recent technology available that the State agency considers appropriate and cost effective and which may include personal identification numbers, photographic identification on electronic benefit transfer cards, and other measures to protect against fraud and abuse; and > > > ###### “(ii) > > effective not later than 2 years after the date of enactment of this clause, to the extent practicable, measures that permit a system to differentiate items of food that may be acquired with an allotment from items of food that may not be acquired with an allotment;” > ; #####
(D)in subparagraph (G), by striking “and” at the end; #####
(E)in subparagraph (H), by striking the period at the end and inserting “; and”; and #####
(F)by adding at the end the following: > > ###### “(I) > > procurement standards.” > ; and ####
(3)by adding at the end the following: > > #### “(7) Replacement of benefits > > Regulations issued by the Secretary regarding the replacement of benefits and liability for replacement of benefits under an electronic benefit transfer system shall be similar to the regulations in effect for a paper-based food stamp issuance system. > > > #### “(8) Replacement card fee > > A State agency may collect a charge for replacement of an electronic benefit transfer card by reducing the monthly allotment of the household receiving the replacement card. > > > #### “(9) Optional photographic identification > > > ##### “(A) In general > > A State agency may require that an electronic benefit card contain a photograph of 1 or more members of a household. > > > ##### “(B) Other authorized users > > If a State agency requires a photograph on an electronic benefit card under subparagraph (A), the State agency shall establish procedures to ensure that any other appropriate member of the household or any authorized representative of the household may utilize the card. > > > #### “(10) Applicable law > > Disclosures, protections, responsibilities, and remedies established by the Federal Reserve Board under section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) shall not apply to benefits under this Act delivered through any electronic benefit transfer system. > > > #### “(11) Application of anti-tying restrictions to electronic benefit transfer systems > > > ##### “(A) Definitions > > In this paragraph: > > > ###### “(i) Affiliate > > The term ‘**affiliate**’ has the meaning provided the term in section 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k)). > > > ###### “(ii) Company > > The term ‘**company**’ has the meaning provided the term in section 106(a) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1971), but shall not include a bank, a bank holding company, or any subsidiary of a bank holding company. > > > ###### “(iii) Electronic benefit transfer service > > The term ‘**electronic benefit transfer service**’ means the processing of electronic transfers of household benefits, determined under section 8(a) or 26, if the benefits are— > > > ###### “(I) > > issued from and stored in a central databank; > > > ###### “(II) > > electronically accessed by household members at the point of sale; and > > > ###### “(III) > > provided by a Federal or State government. > > > ###### “(iv) Point-of-sale service > > The term ‘**point-of-sale service**’ means any product or service related to the electronic authorization and processing of payments for merchandise at a retail food store, including credit or debit card services, automated teller machines, point-of-sale terminals, or access to on-line systems. > > > ##### “(B) Restrictions > > A company may not sell or provide electronic benefit transfer services, or fix or vary the consideration for electronic benefit transfer services, on the condition or requirement that the customer— > > > ###### “(i) > > obtain some additional point-of-sale service from the company or an affiliate of the company; or > > > ###### “(ii) > > not obtain some additional point-of-sale service from a competitor of the company or competitor of any affiliate of the company. > > > ##### “(C) Consultation with the federal reserve board > > Before promulgating regulations or interpretations of regulations to carry out this paragraph, the Secretary shall consult with the Board of Governors of the Federal Reserve System.” > . ###
(b)Sense of Congress It is the sense of Congress that a State that operates an electronic benefit transfer system under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in a manner that is compatible with electronic benefit transfer systems operated by other States.
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Sec. 825
ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS
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