REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS.

SEC. 4111. REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS. (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; and116 STAT. 310 (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.