PUBLIC LAW 104-193—AUG. 22, 1996 110 STAT. 2347 "(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT TRANSFER SYSTEMS. — "(A) DEFINITION OF ELECTRONIC BENEFIT TRANSFER SYSTEM. —In this paragraph, the term 'electronic benefit transfer system'— "(i) means a system under which a government agency distributes needs-tested benefits by estabhshing accounts that may be accessed by recipients electronically, such as through automated teller machines or point-of-sale terminals; and "(ii) does not include employment-related pay- ments, including salaries and pension, retirement, or unemployment benefits established by a Federal, State, or local government agency. "(B) ExEMFnON GENERALLY.— The disclosures, protections, responsibilities, and remedies established under this title, and any regulation prescribed or order issued by the Board in accordance with this title, shall not apply to any electronic benefit transfer system established under State or local law or administered by a State or local government. "(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S ACCOUNT.— Subparagraph (B) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer system for a deposit directly into a consimier account held by the recipient of the benefit. "(D) RULE OF CONSTRUCTION. —No provision of this paragraph— "(i) affects or alters the protections otherwise applicable with respect to benefits established by any other provision Federal, State, or local law; or "(ii) otherwise supersedes the application of any State or local law.". TITLE—MISCELLANEOUS SEC. 901. APPROPRIATION BY STATE LEGISLATURES. 42 USC 601 note. (a) IN GENERAL,—Any funds received by a State under the provisions of law specified in subsection (b) shall be subject to appropriation by the State legislature, consistent with the terms and conditions required under such provisions of law. (b) PROVISIONS OF LAW. —The provisions of law specified in this subsection are the following: (1) Part A of title IV of the Social Security Act (relating to block grants for temporary assistance for needy families). (2) The Child Care and Development Block Grant Act of 1990 (relating to block grants for child care). SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED 21 USC 862b. SUBSTANCES. Notwithstanding any other provision of law. States shall not be prohibited by the Federal Government from testing welfare recipients for use of controlled substances nor from sanctioning welfare recipients who test positive for use of controlled substances.
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