I

104TH CONGRESS

1ST SESSION H. R. 1698

To amend title 31, United States Code, to require electronic funds transfer

for all Federal payments by 2001 to promote efficiency and economy

in the disbursement of Federal funds and to eliminate crime incident

to the issuance of Treasury checks.

IN THE HOUSE OF REPRESENTATIVES

MAY 24, 1995

Mr. LIGHTFOOT (for himself, Mr. HOYER, Mr. CLINGER, Mr. VISCLOSKY, and

Mr. HORN) introduced the following bill; which was referred to the Committee on Government Reform and Oversight

A BILL

To amend title 31, United States Code, to require electronic

funds transfer for all Federal payments by 2001 to promote efficiency and economy in the disbursement of Federal funds and to eliminate crime incident to the issuance

of Treasury checks.

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 ‘‘Mandatory Electronic

5 Funds Transfer Expansion Act of 1995’’.
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1 SEC. 2. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

2 Section 3332 of title 31, United States Code, popu3 larly known as the Federal Financial Management Act of

4 1994, is amended—

5 (1) by redesignating subsection (e) as sub6 section (h), and inserting after subsection (d) the

7 following new subsections:

8 ‘‘(e)(1) Notwithstanding subsections (a) through (d)

9 of this section, all Federal payments to a recipient who

10 begins to receive that type of payments on or after Janu11 ary 1, 1996, shall be made by electronic funds transfer.

12 ‘‘(2) The head of a Federal agency shall, with respect

13 to Federal payments made or authorized by the agency,

14 waive the application of paragraph (1) to a recipient of

15 those payments upon receipt of written certification from

16 the recipient that the recipient does not have an account

17 with a financial institution or an authorized payment

18 agent.

19 ‘‘(f) Notwithstanding any other provision of law (in20 cluding subsections (a) through (e)), all Federal payments

21 made after January 1, 2001, shall be made by electronic

22 funds transfer.

23 ‘‘(g) Each recipient of Federal payments required to

24 be made by electronic funds transfer shall—
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1 ‘‘(1) designate 1 or more financial institutions

2 or other authorized agents to which such payments

3 shall be made; and

4 ‘‘(2) provide to the Federal agency that makes

5 or authorizes the payments information necessary

6 for the recipient to receive electronic funds transfer

7 payments through each institution or agent des8 ignated under paragraph (1).’’; and

9 (2) by adding after subsection (h) (as so redes10 ignated) the following new subsections:

11 ‘‘(i) The Secretary of the Treasury may prescribe reg12 ulations that the Secretary considers necessary to carry

13 out this section.

14 ‘‘(j) For purposes of this section—

15 ‘‘(1) The term ‘electronic funds transfer’ means

16 any transfer of funds, other than a transaction origi17 nated by cash, check, or similar paper instrument,

18 that is initiated through an electronic terminal, tele19 phone, computer, or magnetic tape, for the purpose

20 of ordering, instructing, or authorizing a financial

21 institution to debit or credit an account. The term

22 includes Automated Clearing House transfers, Fed

23 Wire transfers, transfers made at automatic teller

24 machines, and point-of-sale terminals.

25 ‘‘(2) The term ‘Federal agency’ means—
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1 ‘‘(A) an agency (as defined in section 101

2 of this title); and

3 ‘‘(B) a Government corporation (as defined

4 in section 103 of title 5).

5 ‘‘(3) The term ‘Federal payments’ includes—

6 ‘‘(A) Federal wage, salary, and retirement

7 payments;

8 ‘‘(B) vendor and expense reimbursement

9 payments; and

10 ‘‘(C) benefit payments.’’.

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