HR 2709 IH

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.

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.

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 Interoperabilty and Portability Act of 1999'.

SEC. 2. INTEROPERABILTY 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) INTEROPERABILTY AND PORTABILITY OF ELECTRONIC BENEFIT TRANSFER TRANSACTIONS-

`(1) REQUIREMENT- To protect the integrity of the food stamp program, 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 such portability, to enhance the flow of interstate commerce involving electronic transactions involving food stamp benefits under a uniform national standard of interoperability and portability, and to eliminate the inefficiencies resulting from a patchwork of State-administered systems and rules used to carry out the food stamp program, systems that provide for the electronic issuance, use, and redemption of coupons in the form of electronic benefit transfer cards shall be interoperable, and food stamp benefits shall be made portable, among all the States not later than October 1, 2002, in compliance with paragraph (3) and subject to paragraph (4).

`(2) COST- The cost of achieving the interoperability and portability described in paragraph (1) shall not be imposed on any food stamp retail store, or any wholesale food concern, approved to participate in the food stamp program.

`(3) RULES- The Secretary shall issue and put into effect, not later than December 31, 1999, rules--

`(A) adopting a uniform national standard of interoperability and portability described in paragraph (1) that uses the standard of interoperability and portability adopted by a majority of the States; and

`(B) requiring that any electronic benefit transfer contract that is entered into after December 31, 1999, by or on behalf of a State agency shall provide for the interoperability and portability that is described in paragraph (1) and that complies with such standard.

`(4) EXEMPTIONS--

`(A) EXISTING CONTRACTS- With respect to an electronic benefit transfer contract in effect on July 22, 1999, paragraph (3)(B) shall not apply until the expiration date specified in such contract as so in effect.

`(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), such State agency from complying with the requirements of paragraph (1) if such State agency--

`(i) establishes to the satisfaction of the Secretary that it faces unusual technological barriers to achieving by October 1, 2002, the interoperability and portability described in paragraph (1);

`(ii) demonstrates that the best interest of food stamp benefit recipients and of the food stamp program would be served by granting such waiver with respect to the electronic benefit transfer system used by such State agency to administer the food stamp program; and

`(iii) specifies a date certain by which such State agency will achieve the interoperability and portability described in paragraph (1).

`(5) FUNDING- Beginning on the effective date of this subsection, the Secretary shall pay 100 percent of the fees for switching and settling interstate transactions--

`(A) incurred after such date and before October 1, 2002, in States that use the standard of interoperability and portability adopted by a majority of the States; and

`(B) incurred after September 30, 2002, in States that use the uniform national standard of interoperability and portability adopted under paragraph (3)(A) by the Secretary.

`(6) DEFINITIONS- For purposes of this subsection:

`(A) ELECTRONIC BENEFIT TRANSFER CONTRACT- The term `electronic benefit transfer contract' means a contract that provides for the issuance, use, or redemption of coupons issued in the form of electronic benefit transfer cards.

`(B) INTEROPERABILTY- 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.

`(C) 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.

`(D) 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 approved under such Act.

`(E) 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.

`(F) 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 such card who is in another State.'.