Electronic Funds Transfer Account Improvement and Recipient Protection Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Funds Transfer Account 
Improvement and Recipient Protection Act''.

SEC. 2. PROTECTIONS FOR RECIPIENTS OF FEDERAL PAYMENTS MADE BY 
              ELECTRONIC FUNDS TRANSFER.

    (a) In General.--Section 3332 of title 31, United States Code, is 
amended by redesignating subsections (h), (i), and (j) as subsections 
(i), (j), and (k), respectively, and by inserting after subsection (g) 
the following:
    ``(h)(1) The head of each Federal agency that makes Federal 
payments in the form of retirement payments or benefit payments shall 
include, in any explanatory notices to payees regarding those payments 
and with each such payment that is mailed, written notice informing the 
person regarding the requirements and protections of this section, 
including--
            ``(A) information regarding how to obtain electronic funds 
        transfer, including information regarding the account to be 
        established by the Secretary under subsection (j)(2);
            ``(B) a toll-free telephone number and postal address for 
        obtaining additional information; and
            ``(C) instructions regarding how to obtain or change an 
        account at a financial institution pursuant to this section.
    ``(2) At a minimum, each person entitled to receive particular 
Federal payments may elect whether or not to receive those payments by 
electronic funds transfer to an account established by the Secretary 
under subsection (j)(2)--
            ``(A) at any time in the 180-day period beginning on the 
        date on which those payments are first available by electronic 
        funds transfer through such an account; and
            ``(B) at any time in a 60-day period each year that shall 
        be specified by the head of the agency that administers the 
        payments.
    ``(3) The application of Federal laws providing consumer and other 
protections with respect to amounts of Federal payments made by 
electronic funds transfer pursuant to this section shall not be 
affected by--
            ``(A) the commingling of those amounts with amounts of 
        State payments made by electronic funds transfer under State 
        law; or
            ``(B) the receipt of the Federal payments through 
        electronic funds transfers made by a State.
    ``(4)(A) A financial institution, contractor with a financial 
institution, or other authorized agent designated under subsection (g) 
by a recipient to receive Federal payments by electronic funds transfer 
through an account established by the Secretary under subsection 
(j)(2)--
            ``(i) shall not impose a fee for any transaction by the 
        recipient with respect to those payments that exceeds the 
        national average (as determined and published by the Secretary) 
        of fees charged to all consumers for similar transactions; and
            ``(ii) shall allow the recipient to engage in 5 such 
        transactions each month without charge.
    ``(B) Any violation of subparagraph (A) shall, for purposes of 
sections 915 and 916 of the Electronic Funds Transfer Act (15 U.S.C. 
1693m and 1693n), be treated as a violation of that Act.
    ``(C) This paragraph shall apply only to transactions occurring 
after the effective date of regulations issued by the Secretary of the 
Treasury implementing this paragraph.''.
    (b) Regulations.--The Secretary of the Treasury shall issue 
regulations implementing the amendment made by subsection (a).

SEC. 3. REPORT ON IMPLICATIONS OF YEAR 2000 COMPUTER PROBLEMS FOR 
              ELECTRONIC FUNDS TRANSFER REQUIREMENTS.

    (a) In General.--Not later than December 31, 1998, the Secretary of 
the Treasury, acting through the Financial Management Service, shall 
report to the Congress on the implications of the year 2000 computer 
problem for implementation of requirements under Federal law that 
Federal payments shall be made by electronic funds transfer.
    (b) Contents.--The report shall include information regarding--
            (1) corrections being made to Federal agency computer 
        programs;
            (2) Federal agency plans for solving potential problems for 
        recipients of Federal payments; and
            (3) whether delaying implementation of electronic funds 
        transfer requirements would help or hinder resolution of year 
        2000 computer problems with respect to electronic funds 
        transfers.
    (c) Year 2000 Computer Problem.--In this section, the term ``year 
2000 computer problem'' means any problem which prevents information 
technology from accurately processing, calculating, comparing, or 
sequencing date or time data--
            (1) from, into, or between--
                    (A) the 20th and 21st centuries; or
                    (B) the years 1999 and 2000; or
            (2) with regard to leap year calculations.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of the Congress that the Commissioner of Social 
Security and the Secretary of Veterans Affairs should ensure that 
personnel of their agencies who are responsible for receiving telephone 
inquiries regarding receipt of Federal payments administered by that 
agency are fully trained to provide information regarding all 
alternatives for receiving those payments by electronic funds transfer 
or other means.

Summary: Electronic Funds Transfer Account Improvement and Recipient Protection Act - Amends Federal law to mandate that the head of each Federal agency that disburses retirement or benefit payments give the recipient written notice of available consumer protections with respect to electronic funds transfer, including the right to elect whether or not to receive those payments by electronic funds transfer to an account established for the recipient by the Secretary. Prohibits the agent designated to receive a recipient's transfers from imposing a transaction fee exceeding the national average charged to all consumers for similar transactions. Requires such agent to permit five such transactions each month without charge. Treats violations of such requirements as violations of the Electronic Funds Transfer Act. Directs the Secretary of the Treasury, acting through the Financial Management Service, to report to the Congress on the implications of the year 2000 (Y2K) computer problem for implementation of Federal requirements that Federal payments be made by electronic funds transfer. Expresses the sense of the Congress that the Commissioner of Social Security and the Secretary of Veterans Affairs should ensure that personnel of their agencies are fully trained to respond to telephone inquiries regarding all alternatives for receiving Federal payments by electronic funds transfer or other means.