I

104TH CONGRESS

1ST SESSION H. R. 1485

To exclude certain electronic benefit transfer programs established by State

or local governments from provisions of the Electronic Funds Transfer Act.

IN THE HOUSE OF REPRESENTATIVES

APRIL 7, 1995

Mr. VENTO introduced the following bill; which was referred to the Committee

on Banking and Financial Services

A BILL

To exclude certain electronic benefit transfer programs established by State or local governments from provisions

of the Electronic Funds Transfer Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Electronic Fund

5 Transfer Amendments of 1995’’.

6 SEC. 2. ELECTRONIC BENEFIT TRANSFERS.

7 Section 904 of the Electronic Fund Transfer Act (15

8 U.S.C. 1693b) is amended—

9 (1) by striking ‘‘(d) In the event’’ and inserting

10 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS
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1 OTHER THAN CERTAIN FINANCIAL INSTITU2 TIONS.—

3 ‘‘(1) IN GENERAL.—In the event’’; and

4 (2) by adding at the end the following new

5 paragraph:

6 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC7 TRONIC BENEFIT TRANSFER PROGRAMS.—

8 ‘‘(A) EXEMPTION GENERALLY.—Except as

9 provided in subparagraphs (B) and (C), the

10 Board may not, under paragraph (1), make any

11 disclosure, protection, responsibility, or remedy

12 established under or pursuant to this title appli13 cable to an electronic benefit transfer program

14 established under State or local law, or admin15 istered by a State or local government.

16 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

17 INTO RECIPIENT’S ACCOUNT.—Subparagraph

18 (A) shall not apply with respect to any elec19 tronic funds transfer under an electronic benefit

20 transfer program for deposits directly into a

21 consumer account held by the recipient of the

22 benefit.

23 ‘‘(C) CONDITION RELATING TO EMER24 GENCY SERVICES.—Subparagraph (A) shall not

25 apply with respect to an electronic benefit
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1 transfer program which involves the payment of

2 benefits to a recipient through the use of a

3 debit card unless the Board determines that, in

4 the event of a report by the recipient of the loss

5 or theft of the card—

6 ‘‘(i) sufficient emergency services are

7 available for the recipient while the report

8 is under investigation or until a replace9 ment card is made available to the recipi10 ent; and

11 ‘‘(ii) under no circumstances would

12 the recipient be liable for losses incurred

13 with respect to the card after such report

14 is made.

15 ‘‘(D) RULE OF CONSTRUCTION.—No provi16 sion of this paragraph may be construed as af17 fecting or altering the protections otherwise ap18 plicable with respect to benefits established by

19 Federal, State, or local statute.

20 ‘‘(E) ELECTRONIC BENEFIT TRANSFER

21 PROGRAM DEFINED.—For purposes of this

22 paragraph, the term ‘electronic benefit transfer

23 program’—

24 ‘‘(i) means a program under which a

25 Government agency distributes needs-test-
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1 ed benefits by establishing accounts to be

2 accessed by recipients electronically, such

3 as through automated teller machines, or

4 point-of-sale terminals; and

5 ‘‘(ii) does not include—

6 ‘‘(I) any program established for

7 the purpose of enforcing the support

8 obligations owed by absent parents to

9 their children and the custodial par10 ents with whom the children are liv11 ing; or

12 ‘‘(II) employment-related pay13 ments, including salaries and pension,

14 retirement, or unemployment benefits

15 established by Federal, State, or local

16 governments.’’.

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