Electronic Benefit Transfer Interoperability and Portability Act of 2000
PL 106-171 (S.1733), enacted 02/11/2000

PUBLIC LAW 106-171—FEB. 11, 2000 
114 STAT. 3 
Public Law 106-171 
106th Congress 
An Act 
To amend the Food Stamp Act of 1977 to provide for a national standard of 
interoperability and portability applicable to electronic food stamp benefit trans-
actions. 
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 
Interoperability and Portability Act of 2000". 
SEC. 2. PURPOSES, 
The purposes of this Act are— 
(1) to protect the integrity of the food stamp program; 
(2) to ensure cost-effective portability of food stamp benefits 
across State borders without imposing additional administra-
tive expenses for special equipment to address problems 
relating to the portability; 
(3) to enhance the flow of interstate commerce involving 
electronic transactions involving food stamp benefits under a 
uniform national standard of interoperability and portability; 
and 
(4) to eliminate the inefficiencies resulting from a patch-
work of State-administered systems and regulations established 
to carry out the food stamp program. 
SEC. 3. INTEROPERABILITY 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) INTEROPERABILITY AND PORTABILITY OF ELECTRONIC BEN-
EFIT TRANSFER TRANSACTIONS.— 
"(1) DEFINITIONS.—In this subsection: 
"(A) ELECTRONIC BENEFIT TRANSFER CARD.—The term 
'electronic benefit transfer card' means a card that provides 
benefits under this Act through an electronic benefit 
transfer service (as defined in subsection (i)(ll)(A)). 
"(B) ELECTRONIC BENEFIT TRANSFER CONTRACT.—The 
term 'electronic benefit transfer contract' means a contract 
that provides for the issuance, use, or redemption of cou-
pons in the form of electronic benefit transfer cards. 
Feb. 11, 2000 
[S. 1733] 
Electronic 
Benefit Transfer 
Interoperability 
and Portability 
Act of 2000. 
7 u s e 2011 note. 
7 u s e 2016 note. 
114 STAT. 4 
PUBLIC LAW 106-171—FEB. 11, 2000 
Deadline. 
Deadline. 
Regulations. 
"(C) INTEROPERABILITY.—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. 
"(D) 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. 
"(E) 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 
or wholesale food concern approved under this Act. 
"(F) 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. 
"(G) SMART CARD.—The term 'smart card' means an 
intelligent benefit card described in section 17(f). 
"(H) 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 the card that is in another 
State. 
"(2) REQUIREMENT.—Not later than October 1, 2002, the 
Secretary shall ensure that systems that provide for the elec-
tronic issuance, use, and redemption of coupons in the form 
of electronic benefit transfer cards are interoperable, and food 
stamp benefits are portable, among all States. 
"(3) COST.—The cost of achieving the interoperability and 
portability required under paragraph (2) shall not be imposed 
on any food stamp retail store, or any wholesale food concern, 
approved to participate in the food stamp program. 
"(4) STANDARDS.—Not later than 210 days after the date 
of enactment of this subsection, the Secretary shall promulgate 
regulations that— 
"(A) adopt a uniform national standard of interoper-
ability and portability required under paragraph (2) that 
is based on the standard of interoperability and portability 
used by a majority of State agencies; and 
"(B) require that any electronic benefit transfer con-
tract that is entered into 30 days or more after the regula-
tions are promulgated, by or on behalf of a State agency, 
provide for the interoperability and portability required 
under paragraph (2) in accordance with the national 
standard. 
PUBLIC LAW 106-171—FEB. 11, 2000 
114 STAT. 5 
"(5) EXEMPTIONS.— 
"(A) CONTRACTS.—The requirements of paragraph (2) 
shall not apply to the transfer of benefits under an elec-
tronic benefit transfer contract before the expiration of 
the term of the contract if the contract— 
"(i) is entered into before the date that is 30 days 
after the regulations are promulgsited under paragraph 
(4); and 
"(ii) expires after October 1, 2002. 
"(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), the State agency from complying with the 
requirements of paragraph (2), if the State agency— 
"(i) establishes to the satisfaction of the Secretary 
that the State agency faces unusual technological bar-
riers to achieving by October 1, 2002, the interoper-
ability and portability required under paragraph (2); 
"(ii) demonstrates that the best interest of the 
food stamp program would be served by granting the 
waiver with respect to the electi-onic benefit transfer 
system used by the State agenc-y to administer the 
food stamp program; and 
"(iii) specifies a date by which the State agency 
will 
achieve the interoperability and portability 
required under paragraph (2). 
"(C) SMART CARD SYSTEMS.—The Secretary shall allow 
a State agency that is using smart cards for the delivery 
of food stamp program benefits to comply with the require-
ments of paragraph (2) at such time Jifter October 1, 2002, 
as the Secretary determines that a prEicticable technological 
method is available for interoperability with electronic ben-
efit transfer cards. 
"(6) FUNDING.— 
"(A) IN GENERAL.—In accordance with regulations 
promulgated by the Secretary, the Secretary shall pay 100 
percent of the costs incurred by a State agency under 
this Act for switching and settling int<jrstate transactions— 
"(i) incurred after the date of enactment of this 
subsection and before October 1, 2002, if the State 
agency uses the standard of interoperability and port-
ability adopted by a majority of State agencies; and 
"(ii) incurred after September 30, 2002, if the State 
agency uses the uniform national standard of interoper-
ability and portability adopted under paragraph (4)(A). 
"(B) LIMITATION.—The total amount paid to State agen-
cies for each fiscal year under subparagraph (A) shall not 
exceed $500,000.". 
114 STAT. 6 
PUBLIC LAW 106-171—FEB. 11, 2000 
Deadline. 
SEC. 4. STUDY OF ALTERNATIVES FOR HANDLING ELECTRONIC BEN-
ReP2^^ 
EFIT TRANSACTIONS INVOLVING FOOD STAMP BENEFITS. 
7 u s e 2016 note. 
Not later than 1 year after the date of enactment of this 
Act, the Secretary of Agriculture shall study and report to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the Senate 
on alternatives for handling interstate electronic benefit trans-
actions involving food stamp benefits provided under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.), including the feasibility 
and desirability of a single hub for switching (as defined in section 
7(k)(l) of that Act (as added by section 3)). 
Approved February 11, 2000. 
LEGISLATIVE HISTORY—S. 1733: 
CONGRESSIONAL RECORD: 
Vol. 145 (1999): Nov. 19, considered and passed Senate. 
Vol. 146 (2000): Jan. 31, considered and passed House.