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 estab-
lished by State or local governments from provisions
of the Electronic Funds Transfer Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Electronic Fund
Transfer Amendments of 1995’’.
SEC. 2. ELECTRONIC BENEFIT TRANSFERS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION GENERALLY.—Except as
provided in subparagraphs (B) and (C), the
Board may not, under paragraph (1), make any
disclosure, protection, responsibility, or remedy
established under or pursuant to this title appli-
cable to an electronic benefit transfer program
established under State or local law, or admin-
istered by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
consumer account held by the recipient of the
benefit.
‘‘(C) CONDITION
RELATING
TO
EMER-
GENCY SERVICES.—Subparagraph (A) shall not
apply with respect to an electronic benefit
transfer program which involves the payment of
benefits to a recipient through the use of a
debit card unless the Board determines that, in
the event of a report by the recipient of the loss
or theft of the card—
‘‘(i) sufficient emergency services are
available for the recipient while the report
is under investigation or until a replace-
ment card is made available to the recipi-
ent; and
‘‘(ii) under no circumstances would
the recipient be liable for losses incurred
with respect to the card after such report
is made.
‘‘(D) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as af-
fecting or altering the protections otherwise ap-
plicable with respect to benefits established by
Federal, State, or local statute.
‘‘(E) ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this
paragraph, the term ‘electronic benefit transfer
program’—
‘‘(i) means a program under which a
Government agency distributes needs-test-
ed benefits by establishing accounts to be
accessed by recipients electronically, such
as through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include—
‘‘(I) any program established for
the purpose of enforcing the support
obligations owed by absent parents to
their children and the custodial par-
ents with whom the children are liv-
ing; or
‘‘(II) 
employment-related 
pay-
ments, including salaries and pension,
retirement, or unemployment benefits
established by Federal, State, or local
governments.’’.
Æ