§ 2016. — Issuance and use of coupons.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2016]
TITLE 7--AGRICULTURE
CHAPTER 51--FOOD STAMP PROGRAM
Sec. 2016. Issuance and use of coupons
(a) Printing
Coupons shall be printed under such arrangements and in such
denominations as may be determined by the Secretary to be necessary, and
(except as provided in subsection (j) of this section) shall be issued
only to households which have been duly certified as eligible to
participate in the food stamp program.
(b) Approved food stores; receipt of cash in change for coupons used to
purchase food
Coupons issued to eligible households shall be used by them only to
purchase food in retail food stores which have been approved for
participation in the food stamp program at prices prevailing in such
stores: Provided, That nothing in this chapter shall be construed as
authorizing the Secretary to specify the prices at which food may be
sold by wholesale food concerns or retail food stores: Provided further,
That eligible households using coupons to purchase food may receive cash
in change therefor so long as the cash received does not equal or exceed
the value of the lowest coupon denomination issued.
(c) Design of coupons
Coupons issued to eligible households shall be simple in design and
shall include only such words or illustrations as are required to
explain their purpose and define their denomination. The name of any
public official shall not appear on such coupons.
(d) Coupon level inventories; monitorship; monthly operations report
The Secretary shall develop an appropriate procedure for determining
and monitoring the level of coupon inventories in the hands of coupon
issuers for the purpose of providing that such inventories are at proper
levels (taking into consideration the historical and projected volume of
coupon distribution by such issuers). Such procedures shall provide that
coupon inventories in the hands of such issuers are not in excess of the
reasonable needs of such issuers taking into consideration the ease with
which such coupon inventories may be resupplied. The Secretary shall
require each coupon issuer at intervals prescribed by the Secretary, but
not less often than monthly, to send to the Secretary or the Secretary's
designee, which may include the State agency, a written report of the
issuer's operations during such period. In addition to other information
deemed by the Secretary to be appropriate, the Secretary shall require
that the report contain an oath, or affirmation, signed by the coupon
issuer, or in the case of a corporation or other entity not a natural
person, by an appropriate official of the coupon issuer, certifying that
the information contained in the report is true and correct to the best
of such person's knowledge and belief.
(e) Delivery and control procedures
The Secretary shall prescribe appropriate procedures for the
delivery of coupons to coupon issuers and for the subsequent controls to
be placed over such coupons by coupon issuers in order to ensure
adequate accountability.
(f) State issuance liability
Notwithstanding any other provision of this chapter, the State
agency shall be strictly liable to the Secretary for any financial
losses involved in the acceptance, storage and issuance of coupons,
including any losses involving failure of a coupon issuer to comply with
the requirements specified in section 2020(e)(20) \1\ of this title,
except that in the case of losses resulting from the issuance and
replacement of authorizations for coupons and allotments which are sent
through the mail, the State agency shall be liable to the Secretary to
the extent prescribed in the regulations promulgated by the Secretary.
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\1\ See References in Text note below.
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(g) Alternative system or documents; costs
(1) If the Secretary determines, in consultation with the Inspector
General of the Department of Agriculture, that it would improve the
integrity of the food stamp program, the Secretary shall require a State
agency--
(A) to issue or deliver coupons using alternative methods,
including an automatic data processing and information retrieval
system; or
(B) to issue, in lieu of coupons, reusable documents to be used
as part of an automatic data processing and information retrieval
system and to be presented by, and returned to, recipients at retail
food stores for the purpose of purchasing food.
(2) The cost of documents or systems that may be required pursuant
to this subsection may not be imposed upon a retail food store
participating in the food stamp program.
(h) Staggered issuance procedures
(1) The State agency may establish a procedure for staggering the
issuance of coupons to eligible households throughout the month. Upon
the request of the tribal organization that exercises governmental
jurisdiction over the reservation, the State agency shall stagger the
issuance of benefits for eligible households located on reservations for
at least 15 days of a month.
(2) Any procedure established under paragraph (1) shall not reduce
the allotment of any household and shall ensure that no household
experiences an interval between issuances of more than 40 days. The
procedure may include issuing a household's benefits in more than one
issuance.
(i) Electronic benefit transfers
(1) In general.--
(A) Implementation.--Not later than October 1, 2002, each State
agency shall implement an electronic benefit transfer system under
which household benefits determined under section 2017(a) or 2035 of
this title are issued from and stored in a central databank, unless
the Secretary provides a waiver for a State agency that faces
unusual barriers to implementing an electronic benefit transfer
system.
(B) Timely implementation.--Each State agency is encouraged to
implement an electronic benefit transfer system under subparagraph
(A) as soon as practicable.
(C) State flexibility.--Subject to paragraph (2), a State agency
may procure and implement an electronic benefit transfer system
under the terms, conditions, and design that the State agency
considers appropriate.
(D) Operation.--An electronic benefit transfer system should
take into account generally accepted standard operating rules based
on--
(i) commercial electronic funds transfer technology;
(ii) the need to permit interstate operation and law
enforcement monitoring; and
(iii) the need to permit monitoring and investigations by
authorized law enforcement agencies.
(2) The Secretary shall issue final regulations that establish
standards for the approval of such a system. The standards shall
include--
(A) defining the required level of recipient protection
regarding privacy, ease of use, and access to and service in retail
food stores;
(B) the terms and conditions of participation by retail food
stores, financial institutions, and other appropriate parties;
(C)(i) measures to maximize the security of a system using the
most recent technology available that the State agency considers
appropriate and cost effective and which may include personal
identification numbers, photographic identification on electronic
benefit transfer cards, and other measures to protect against fraud
and abuse; and
(ii) effective not later than 2 years after August 22, 1996, to
the extent practicable, measures that permit a system to
differentiate items of food that may be acquired with an allotment
from items of food that may not be acquired with an allotment;
(D) system transaction interchange, reliability, and processing
speeds;
(E) financial accountability;
(F) the required testing of system operations prior to
implementation;
(G) the analysis of the results of system implementation in a
limited project area prior to expansion; and
(H) procurement standards.
(3) In the case of a system described in paragraph (1) in which
participation is not optional for households, the Secretary shall not
approve such a system unless--
(A) a sufficient number of eligible retail food stores,
including those stores able to serve minority language populations,
have agreed to participate in the system throughout the area in
which it will operate to ensure that eligible households will not
suffer a significant reduction in their choice of retail food stores
or a significant increase in the cost of food or transportation to
participating food stores; and
(B) any special equipment necessary to allow households to
purchase food with the benefits issued under this chapter is
operational--
(i) in the case of a participating retail food store in
which coupons are used to purchase 15 percent or more of the
total dollar amount of food sold by the store (as determined by
the Secretary), at all registers in the store; and
(ii) in the case of other participating stores, at a
sufficient number of registers to provide service that is
comparable to service provided individuals who are not members
of food stamp households, as determined by the Secretary.
(4) Administrative costs incurred in connection with activities
under this subsection shall be eligible for reimbursement in accordance
with section 2025 of this title, subject to the limitations in section
2025(g) of this title.
(5) The Secretary shall periodically inform State agencies of the
advantages of using electronic benefit systems to issue benefits in
accordance with this subsection in lieu of issuing coupons to
households.
(6) This subsection shall not diminish the authority of the
Secretary to conduct projects to test automated or electronic benefit
delivery systems under section 2026(f) of this title.
(7) Replacement of benefits.--Regulations issued by the Secretary
regarding the replacement of benefits and liability for replacement of
benefits under an electronic benefit transfer system shall be similar to
the regulations in effect for a paper-based food stamp issuance system.
(8) Replacement card fee.--A State agency may collect a charge for
replacement of an electronic benefit transfer card by reducing the
monthly allotment of the household receiving the replacement card.
(9) Optional photographic identification.--
(A) In general.--A State agency may require that an electronic
benefit card contain a photograph of 1 or more members of a
household.
(B) Other authorized users.--If a State agency requires a
photograph on an electronic benefit card under subparagraph (A), the
State agency shall establish procedures to ensure that any other
appropriate member of the household or any authorized representative
of the household may utilize the card.
(10) Applicable law.--Disclosures, protections, responsibilities,
and remedies established by the Federal Reserve Board under section
1693b of title 15 shall not apply to benefits under this chapter
delivered through any electronic benefit transfer system.
(11) Application of anti-tying restrictions to electronic benefit
transfer systems.--
(A) Definitions.--In this paragraph:
(i) Affiliate.--The term ``affiliate'' has the meaning
provided the term in section 1841(k) of title 12.
(ii) Company.--The term ``company'' has the meaning provided
the term in section 1971 of title 12, but shall not include a
bank, a bank holding company, or any subsidiary of a bank
holding company.
(iii) Electronic benefit transfer service.--The term
``electronic benefit transfer service'' means the processing of
electronic transfers of household benefits, determined under
section 2017(a) or 2035 of this title, if the benefits are--
(I) issued from and stored in a central databank;
(II) electronically accessed by household members at the
point of sale; and
(III) provided by a Federal or State government.
(iv) Point-of-sale service.--The term ``point-of-sale
service'' means any product or service related to the electronic
authorization and processing of payments for merchandise at a
retail food store, including credit or debit card services,
automated teller machines, point-of-sale terminals, or access to
on-line systems.
(B) Restrictions.--A company may not sell or provide electronic
benefit transfer services, or fix or vary the consideration for
electronic benefit transfer services, on the condition or
requirement that the customer--
(i) obtain some additional point-of-sale service from the
company or an affiliate of the company; or
(ii) not obtain some additional point-of-sale service from a
competitor of the company or competitor of any affiliate of the
company.
(C) Consultation with the federal reserve board.--Before
promulgating regulations or interpretations of regulations to carry
out this paragraph, the Secretary shall consult with the Board of
Governors of the Federal Reserve System.
(j) State option to issue benefits to certain individuals made
ineligible by welfare reform
(1) In general
Notwithstanding any other provision of law, a State agency may,
with the approval of the Secretary, issue benefits under this
chapter to an individual who is ineligible to participate in the
food stamp program solely as a result of section 2015(o)(2) of this
title or section 1612 or 1613 of title 8.
(2) State payments to Secretary
(A) In general
Not later than the date the State agency issues benefits to
individuals under this subsection, the State agency shall pay
the Secretary, in accordance with procedures established by the
Secretary, an amount that is equal to--
(i) the value of the benefits; and
(ii) the costs of printing, shipping, and redeeming
coupons, and other Federal costs, incurred in providing the
benefits, as determined by the Secretary.
(B) Crediting
Notwithstanding section 3302(b) of title 31, payments
received under subparagraph (A) shall be credited to the food
stamp program appropriation account or the account from which
the costs were drawn, as appropriate, for the fiscal year in
which the payment is received.
(3) Reporting
To be eligible to issue benefits under this subsection, a State
agency shall comply with reporting requirements established by the
Secretary to carry out this subsection.
(4) Plan
To be eligible to issue benefits under this subsection, a State
agency shall--
(A) submit a plan to the Secretary that describes the
conditions and procedures under which the benefits will be
issued, including eligibility standards, benefit levels, and the
methodology the State agency will use to determine amounts due
the Secretary under paragraph (2); and
(B) obtain the approval of the Secretary for the plan.
(5) Violations
A sanction, disqualification, fine, or other penalty prescribed
under Federal law (including sections 2021 and 2024 of this title)
shall apply to a violation committed in connection with a coupon
issued under this subsection.
(6) Ineligibility for administrative reimbursement
Administrative and other costs incurred in issuing a benefit
under this subsection shall not be eligible for Federal funding
under this chapter.
(7) Exclusion from enhanced payment accuracy systems
Section 2025(c) of this title shall not apply to benefits issued
under this subsection.
(k) Interoperability and portability of electronic benefit 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 chapter through an electronic
benefit transfer service (as defined in subsection (i)(11)(A) of
this section).
(B) Electronic benefit transfer contract
The term ``electronic benefit transfer contract'' means a
contract that provides for the issuance, use, or redemption of
coupons in the form of electronic benefit transfer cards.
(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
chapter.
(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 2026(f) of this title.
(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 electronic 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 February 11, 2000, the Secretary
shall promulgate regulations that--
(A) adopt a uniform national standard of interoperability
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 contract
that is entered into 30 days or more after the regulations 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.
(5) Exemptions
(A) Contracts
The requirements of paragraph (2) shall not apply to the
transfer of benefits under an electronic 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 promulgated 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 barriers
to achieving by October 1, 2002, the interoperability 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 electronic benefit transfer system used by
the State agency 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 requirements of paragraph (2) at such time after
October 1, 2002, as the Secretary determines that a practicable
technological method is available for interoperability with
electronic benefit 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 chapter for switching and settling
interstate transactions--
(i) incurred after February 11, 2000, and before October
1, 2002, if the State agency uses the standard of
interoperability and portability adopted by a majority of
State agencies; and
(ii) incurred after September 30, 2002, if the State
agency uses the uniform national standard of
interoperability and portability adopted under paragraph
(4)(A).
(B) Limitation
The total amount paid to State agencies for each fiscal year
under subparagraph (A) shall not exceed $500,000.
(Pub. L. 88-525, Sec. 7, Aug. 31, 1964, 78 Stat. 705; Pub. L. 91-671,
Sec. 5, Jan. 11, 1971, 84 Stat. 2050; Pub. L. 93-86, Sec. 3(m), Aug. 10,
1973, 87 Stat. 248; Pub. L. 93-125, Sec. 1(k), Oct. 18, 1973, 87 Stat.
450; Pub. L. 94-339, Sec. 2, July 5, 1976, 90 Stat. 799; Pub. L. 95-113,
title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 967; Pub. L. 97-98,
title XIII, Sec. 1312, Dec. 22, 1981, 95 Stat. 1285; Pub. L. 97-253,
title I, Secs. 162, 190(c)(2), Sept. 8, 1982, 96 Stat. 778, 787; Pub. L.
99-198, title XV, Secs. 1518, 1519, Dec. 23, 1985, 99 Stat. 1578; Pub.
L. 100-435, title II, Sec. 203(b), Sept. 19, 1988, 102 Stat. 1657; Pub.
L. 101-624, title XVII, Secs. 1728, 1729(a), Nov. 28, 1990, 104 Stat.
3788, 3789; Pub. L. 103-225, title I, Sec. 102, Mar. 25, 1994, 108 Stat.
107; Pub. L. 104-193, title VIII, Sec. 825(a), Aug. 22, 1996, 110 Stat.
2324; Pub. L. 105-18, title VII, [(a)], June 12, 1997, 111 Stat. 216;
Pub. L. 106-171, Sec. 3, Feb. 11, 2000, 114 Stat. 3; Pub. L. 107-171,
title IV, Sec. 4110, May 13, 2002, 116 Stat. 309.)
References in Text
Section 2020(e)(20) of this title, referred to in subsec. (f), was
redesignated section 2020(e)(19) of this title by Pub. L. 104-193, title
VIII, Sec. 835(1)(D)(i), Aug. 22, 1996, 110 Stat. 2330.
Amendments
2002--Subsec. (i)(2). Pub. L. 107-171 redesignated subpars. (B) to
(I) as (A) to (H), respectively, and struck out former subpar. (A) which
read as follows: ``determining the cost-effectiveness of the system to
ensure that its operational cost, including the pro rata cost of capital
expenditures and other reasonable startup costs, does not exceed the
operational cost of issuance systems in use prior to the implementation
of the electronic benefit transfer system;''.
2000--Subsec. (k). Pub. L. 106-171 added subsec. (k).
1997--Subsec. (a). Pub. L. 105-18, title VII, [(a)(1)], inserted
``(except as provided in subsection (j) of this section)'' after
``necessary, and''.
Subsec. (j). Pub. L. 105-18, title VII, [(a)(2)], added subsec. (j).
1996--Subsec. (i). Pub. L. 104-193, Sec. 825(a)(1), inserted subsec.
heading.
Subsec. (i)(1). Pub. L. 104-193, Sec. 825(a)(1), added par. (1) and
struck out former par. (1) which read as follows:
``(1)(A) Any State agency may, with the approval of the Secretary,
implement an on-line electronic benefit transfer system in which
household benefits determined under section 2017(a) of this title are
issued from and stored in a central data bank and electronically
accessed by household members at the point-of-sale.
``(B) No State agency may implement or expand an electronic benefit
transfer system without prior approval from the Secretary.''
Subsec. (i)(2). Pub. L. 104-193, Sec. 825(a)(2)(A), struck out
``effective no later than April 1, 1992,'' after ``regulations'' in
introductory provisions.
Subsec. (i)(2)(A). Pub. L. 104-193, Sec. 825(a)(2)(B), struck out
``, in any 1 year,'' after ``does not exceed'' and ``on-line'' before
``electronic benefit''.
Subsec. (i)(2)(D). Pub. L. 104-193, Sec. 825(a)(2)(C), added subpar.
(D) and struck out former subpar. (D) which read as follows: ``system
security;''.
Subsec. (i)(2)(I). Pub. L. 104-193, Sec. 825(a)(2)(D)-(F), added
subpar. (I).
Subsec. (i)(7) to (11). Pub. L. 104-193, Sec. 825(a)(3), added pars.
(7) to (11).
1994--Subsec. (h)(1). Pub. L. 103-225 inserted second sentence and
struck out former second sentence which read as follows: ``The State
agency shall establish such a procedure for eligible households residing
on reservations.''
1990--Subsec. (h). Pub. L. 101-624, Sec. 1728, amended subsec. (h)
generally. Prior to amendment, subsec. (h) read as follows: ``The State
agency may implement a procedure for staggering the issuance of coupons
to eligible households throughout the entire month: Provided, That the
procedure ensures that, in the transition period from other issuance
procedures, no eligible household experiences an interval between coupon
issuances of more than 40 days, either through regular issuances by the
State agency or through supplemental issuances.''
Subsec. (i). Pub. L. 101-624, Sec. 1729(a), added subsec. (i).
1988--Subsec. (h). Pub. L. 100-435 struck out par. (1) designation
and par. (2) which read as follows: ``For any eligible household that
applies for participation in the food stamp program during the last
fifteen days of a month and is issued benefits within that period,
coupons shall be issued for the first full month of participation by the
the [sic] eighth day of the first full month of participation.''
1985--Subsec. (g)(1). Pub. L. 99-198, Sec. 1519, substituted
``shall'' for ``may'' in provisions preceding subpar. (A).
Subsec. (h). Pub. L. 99-198, Sec. 1518, added subsec. (h).
1982--Subsec. (f). Pub. L. 97-253, Sec. 190(c)(2), substituted
reference to section 2020(e)(20) of this title for former reference to
section 2020(e)(21) of this title.
Subsec. (g). Pub. L. 97-253, Sec. 162, added subsec. (g).
1981--Subsec. (f). Pub. L. 97-98 substituted ``strictly liable'' for
``responsible'' and inserted provision including any losses involving
failure of a coupon issuer to comply with the requirements of section
2020(e)(21) of this title, except that in the case of losses resulting
from the issuance and replacement of authorizations for coupons and
allotments sent through the mail, State agency liability be to the
extent prescribed in regulations.
1977--Pub. L. 95-113 substituted revised provisions relating to
issuance and use of coupons for provisions relating to value of the
coupon allotment which are now covered by section 2017 of this title.
1976--Subsec. (d). Pub. L. 94-339 designated existing provisions as
par. (1) and added pars. (2) to (7).
1973--Subsec. (a). Pub. L. 93-125 substituted ``for households of a
given size unless the increase in the face value'' for ``for value''.
Pub. L. 93-86 substituted provisions relating to determination of
semiannual adjustments in face value of coupon allotment for provisions
relating to determination of annual adjustments in such allotment.
1971--Subsec. (a). Pub. L. 91-671 substituted provision for issuance
of coupon allotment in such amount as the Secretary determines to be the
cost of a nutritionally adequate diet, adjusted annually to reflect
changes in prices of food published by Bureau of Labor Statistics for
prior provision for issuance in such amount as will provide households
with an opportunity more nearly to obtain a low-cost nutritionally
adequate diet and inserted ``any'' before ``households''.
Subsec. (b). Pub. L. 91-671 substituted provisions respecting
charges to households for coupon allotments representing reasonable
investment on part of the households, issuance of coupon allotments
without charge where monthly income is less than $30 for a family of
four, and election of coupon allotment with a lesser face value than the
face value authorized to be issued for prior provision for a charge
determined to be equivalent to normal expenditures for food.
Effective Date of 2002 Amendment
Amendment by Pub. L. 107-171 effective Oct. 1, 2002, except as
otherwise provided, see section 4405 of Pub. L. 107-171, set out as an
Effective Date note under section 1161 of Title 2, The Congress.
Effective Date of 1990 Amendment
Amendment by section 1728 of Pub. L. 101-624 effective and
implemented first day of month beginning 120 days after publication of
implementing regulations to be promulgated not later than Oct. 1, 1991,
and amendment by section 1729 of Pub. L. 101-624 effective Nov. 28,
1990, see section 1781(a), (b)(2) of Pub. L. 101-624, set out as a note
under section 2012 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-435 effective Jan. 1, 1989, except with
regard to those States not implementing section 203(a) of Pub. L. 100-
435 (amending section 2017 of this title), see section 701(b)(3)(B) of
Pub. L. 100-435, set out as a note under section 2012 of this title.
Effective Date of 1982 Amendment
Amendment by Pub. L. 97-253 effective Sept. 8, 1982, see section
193(a) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-98 effective on earlier of Sept. 8, 1982, or
date such amendment became effective pursuant to section 1338 of Pub. L.
97-98, set out as a note under section 2012 of this title, see section
192(b) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Amendment by Pub. L. 97-98 effective upon such date as Secretary of
Agriculture may prescribe, taking into account need for orderly
implementation, see section 1338 of Pub. L. 97-98, set out as a note
under section 2012 of this title.
Effective Date of 1977 Amendment
Section 1301 of Pub. L. 95-113 provided that the amendment made by
that section is effective Oct. 1, 1977.
Report on Electronic Benefit Transfer Systems
Pub. L. 107-171, title IV, Sec. 4111, May 13, 2002, 116 Stat. 309,
provided that:
``(a) Definition of EBT System.--In this section, the term `EBT
system' means an electronic benefit transfer system used in issuance of
benefits under the food stamp program under the Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.).
``(b) Report.--Not later than October 1, 2003, the Secretary of
Agriculture shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
``(1) describes the status of use by each State agency of EBT
systems;
``(2) specifies the number of vendors that have entered into a
contract for an EBT system with a State agency;
``(3)(A) specifies the number of State agencies that have
entered into an EBT-system contract with multiple EBT-system
vendors; and
``(B) describes, for each State agency described in subparagraph
(A), how responsibilities are divided among the various vendors;
``(4) with respect to any State in which an EBT system is not
operational throughout the State as of October 1, 2002--
``(A) provides an explanation of the reasons why an EBT
system is not operational throughout the State;
``(B) describes how the reasons are being addressed; and
``(C) specifies the expected date of operation of an EBT
system throughout the State;
``(5) provides a description of--
``(A) the issues faced by any State agency that has awarded
a second EBT-system contract in the 2-year period preceding the
date of the report; and
``(B) the steps that the State agency has taken to address
those issues;
``(6) provides a description of--
``(A) the issues faced by any State agency that will award a
second EBT-system contract within the 2-year period beginning on
the date of the report; and
``(B) strategies that the State agency is considering to
address those issues;
``(7) describes initiatives being considered or taken by the
Department of Agriculture, food retailers, EBT-system vendors, and
client advocates to address any outstanding issues with respect to
EBT systems; and
``(8) examines areas of potential advances in electronic benefit
delivery in the 5- to 10-year period beginning on the date of the
report, including--
``(A) access to EBT systems at farmers' markets;
``(B) increased use of transaction data from EBT systems to
identify and prosecute fraud; and
``(C) fostering of increased competition among EBT-system
vendors to ensure cost containment and optimal service.''
Congressional Statement of Purpose
Pub. L. 106-171, Sec. 2, Feb. 11, 2000, 114 Stat. 3, provided that:
``The purposes of this Act [amending this section and enacting
provisions set out as notes under this section and section 2011 of this
title] 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
administrative 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 patchwork
of State-administered systems and regulations established to carry
out the food stamp program.''
Study of Alternatives for Handling Electronic Benefit Transactions
Involving Food Stamp Benefits
Pub. L. 106-171, Sec. 4, Feb. 11, 2000, 114 Stat. 6, provided that:
``Not later than 1 year after the date of enactment of this Act [Feb.
11, 2000], 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 transactions
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)(1) of that Act [7
U.S.C. 2016(k)(1)] (as added by section 3)).''
Suspension of Staggered Issuance of Food Stamp Coupons
Pub. L. 102-237, title IX, Sec. 908(a)(1), Dec. 13, 1991, 105 Stat.
1886, as amended by Pub. L. 103-11, Sec. 1, Apr. 1, 1993, 107 Stat. 41;
Pub. L. 103-205, Sec. 1, Dec. 17, 1993, 107 Stat. 2418, provided that no
State agency be required to implement 7 U.S.C. 2016(h)(1), regarding
staggering of issuance of food stamp coupons, until Mar. 15, 1994, and
directed Secretary of Agriculture to issue final regulations requiring
staggered issuance of coupons no later than Dec. 1, 1992, prior to
repeal by Pub. L. 103-225, title I, Sec. 104(a), Mar. 25, 1994, 108
Stat. 107.
Food Stamp Coupons, Cost Increase Suspension
Pub. L. 94-4, Feb. 20, 1975, 89 Stat. 6, provided that
notwithstanding the provisions of 7 U.S.C. 2016(b), the charge imposed
on any household for a coupon allotment under this chapter after Feb.
20, 1975, and prior to Dec. 30, 1975, could not exceed the charge that
would have been imposed on such household for such coupon allotment
under rules and regulations promulgated under this chapter and in effect
on Jan. 1, 1975.
Section Referred to in Other Sections
This section is referred to in sections 2014, 2019, 2024, 2026,
2027, 2035 of this title.
