PUBLIC LAW 104-193—AUG. 22, 1996 110 STAT. 2325 "(B) TIMELY IMPLEMENTATION.— Each State agency is encouraged to implement an electronic benefit transfer system under subpsiragraph (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 standsird 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) in paragraph (2)— (A) by striking "effective no later than April 1, 1992,"; (B) in subparagraph (A)— (i) by striking ", in any 1 year,"; and (ii) by striking "on-line"; (C) by striking subparagraph (D) and inserting the following: "(D)(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 the date Effective date, of enactment of this clause, 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) in subparagraph (G), by striking "and" at the end; (E) in subparagraph (H), by strifing the period at the end and inserting "; and"; and (F) by adding at the end the following: "(I) procurement standards."; and (3) by adding at the end the following: "(7) REPLACEMENT OF BENEFITS.— Regulations issued by Regulations, 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 paperbased 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.—I f 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
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