Overview
Title
To amend the Food and Nutrition Act of 2008 to require the promulgation of cybersecurity and digital service regulations relating to the use of EBT cards under the supplemental nutrition assistance program, and for other purposes.
ELI5 AI
H.R. 7585 wants to make special cards used for buying food safer from bad guys by adding little computer chips to them and using safe machines to pay. It also wants to make sure people can quickly get new cards if theirs gets lost or broken without having to pay extra money.
Summary AI
H.R. 7585, titled the “Enhanced Cybersecurity for SNAP Act of 2024,” seeks to improve the security of Electronic Benefit Transfer (EBT) cards used in the Supplemental Nutrition Assistance Program (SNAP). The bill requires the implementation of new cybersecurity and digital service regulations to protect these cards from fraud, including the transition to chip-enabled cards and ensuring secure online and mobile payment options. It also mandates timely replacement of damaged or fraudulent cards, prohibits replacement fees in certain circumstances, and requires retailers in SNAP to have chip-enabled payment terminals. Additionally, the Secretary of Agriculture must report on trends in SNAP benefit theft and the effectiveness of cybersecurity measures.
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AnalysisAI
General Summary of the Bill
The bill in question, titled the “Enhanced Cybersecurity for SNAP Act of 2024,” seeks to update and improve the cybersecurity and digital service infrastructure of Electronic Benefit Transfer (EBT) cards under the Supplemental Nutrition Assistance Program (SNAP). Introduced in the House of Representatives, the bill mandates that all states update their EBT systems to incorporate modern cybersecurity measures. Key requirements include adopting chip-enabled technology, improving user interfaces for EBT accounts, and ensuring timely transactions notifications. The bill also stipulates specific regulations for the issuance and replacement of EBT cards and introduces requirements for retailers to use chip-enabled payment terminals.
Significant Issues
One core issue addressed in the bill is the cybersecurity of EBT cards. By mandating chip-enabled technology and other cybersecurity standards, the bill aims to protect against fraud; however, this proposal involves significant costs and logistical challenges for states responsible for implementing these updates. Additionally, the deadlines given in the bill for adopting these technologies may strain state resources and budgets, especially where financial support or assistance is not clarifed.
Moreover, the bill requires states to provide replacement cards within three business days in cases of damage, loss, or fraud, which could impose logistical and financial burdens on different state governments. The bill also lacks explicit funding mechanisms to support these changes or compensate for the prohibition of replacement fees for specific cases, such as fraud or card malfunction.
Another central issue is related to the condition placed on retailers participating in SNAP. Retail food stores will need to comply with chip-enabled payment terminal requirements, a move that might impose financial burdens, particularly on smaller or rural retailers. The timeline for compliance is also a concern, given the short turnaround time for acquiring and setting up the necessary technology.
Broad Impact on the Public
The intent behind the bill is to enhance the security of public assistance programs and protect beneficiaries from fraud. By securing EBT transactions, the bill aims to ensure that SNAP recipients can safely access their benefits without fear of theft or fraud. However, the implementation challenges and financial burdens outlined might delay these benefits or could see states reallocating resources to meet new demands, potentially affecting other state services.
If successful, adopting chip-enabled technology can bring a higher level of security and efficiency to SNAP transactions across the country. On the flip side, burdens imposed on states and retailers could slow down or complicate the rollout, leading to possible service disruptions or increased administrative costs.
Impact on Specific Stakeholders
For state governments, the directives in the bill present both opportunities and challenges. While enhancing the integrity of food assistance programs is advantageous, the absence of detailed funding provisions to support implementation could lead to considerable financial and administrative strain.
Retailers, particularly smaller stores and those in rural areas, might face hurdles as they strive to meet the new payment terminal requirements. Without financial assistance from the federal government, these entities could experience financial distress or even risk being excluded from participating in the SNAP program, which could reduce access to food in underserved areas.
For SNAP beneficiaries, especially in Puerto Rico, measures to improve card security promise an enhanced user experience, helping to prevent unauthorized transactions and ensuring timely access to benefits. However, implementation hiccups in rolling out new technology might temporarily hinder access to assistance, particularly if information outreach and technical support lag behind necessary updates.
In summary, the bill proposes much-needed security updates to federal nutrition assistance programs, yet it must carefully balance technological improvements with practical implementation logistics, support, and potential financial burdens on states and program participants.
Issues
The requirement for each State to upgrade to chip-enabled EBT cards and the prohibition on magnetic stripe cards within specific timeframes could impose significant costs and logistical challenges on States, potentially creating budgetary issues. (Section 2)
The prohibition on password and PIN complexity requirements that deviate from NIST standards may restrict States’ ability to implement their own security measures, possibly limiting cybersecurity effectiveness. (Section 2)
The requirement for retailers to use chip-enabled payment terminals as a condition of SNAP participation might create financial burdens on small retail food stores, possibly leading to exclusion or hardship. The timeline for compliance of 180 days may be too short for certain retailers. (Section 5)
The obligation for States to collect and report detailed data on user interface availability and cybersecurity measures may introduce onerous reporting burdens, affecting resource allocation. (Section 2)
Providing replacement EBT cards within 3 business days could lead to logistical challenges, resulting in inefficiencies or increased administrative costs. Moreover, no explicit funding or resources are mentioned to support these changes, which could result in financial strain. (Section 3)
The introduction of a grant program for upgrading to chip-compatible payment terminals potentially favors certain entities over others, especially in areas with limited grocery access, which could lead to unequal distribution of resources. (Section 2)
The bill lacks a detailed impact assessment or cost analysis, which could lead to unexpected budgetary implications for state agencies, especially in dealing with the costs of prohibited collection of replacement charges. (Section 4)
The complexity and detailed nature of the language specifying user interface requirements could lead to compliance challenges for States, potentially causing confusion and implementation issues. (Section 2)
The requirement for regular updates and reviews every five years could lead to challenges if not managed transparently, with risks of regulatory capture. (Section 2)
The definition of 'chip-enabled' and other technical terms used without clear context in the bill might cause ambiguity or misinterpretation, necessitating cross-referencing additional documents. (Sections 2 and 5)
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill states that it can be called the “Enhanced Cybersecurity for SNAP Act of 2024.”
2. Enhanced cybersecurity for EBT cards Read Opens in new tab
Summary AI
The section outlines new cybersecurity requirements for Electronic Benefit Transfer (EBT) cards, mandating updates like chip-enabled technology to prevent fraud. It also introduces user-friendly interfaces for managing benefits, requires States to issue timely transaction alerts, and establishes a grant program to help retailers upgrade their payment systems for chip cards.
3. Ensuring no loss of access to benefits due to EBT card damage, loss, or fraud Read Opens in new tab
Summary AI
The proposed amendment to the Food and Nutrition Act of 2008 requires states to replace damaged, lost, or fraud-affected EBT cards within three business days of a request. States must offer the option for in-person card collection but cannot mandate it.
4. No replacement fees for certain EBT cards Read Opens in new tab
Summary AI
The proposed amendment to the Food and Nutrition Act of 2008 specifies that state agencies cannot charge fees for replacing EBT cards if the replacement is due to card malfunction, suspected fraud by someone outside the cardholder's household, card expiration, or regulatory requirements, starting 60 days after the Enhanced Cybersecurity for SNAP Act of 2024 becomes law.
5. Requirement for retailer use of chip-enabled payment terminals as a condition of SNAP participation Read Opens in new tab
Summary AI
The proposed amendment requires that retail food stores and wholesale food concerns must have chip-enabled payment terminals in order to participate in the Supplemental Nutrition Assistance Program (SNAP). This must be implemented within 180 days after relevant regulations are finalized.
6. Report Read Opens in new tab
Summary AI
The Secretary of Agriculture is required to deliver a report within one year about the security of EBT cards used in Puerto Rico. This report will cover how well these cards can resist being cloned and may offer suggestions for preventing fraud, with the possibility of including a classified section for sensitive information.
7. Conforming amendments Read Opens in new tab
Summary AI
The given section of the bill amends Section 501 of the Consolidated Appropriations Act, 2023, by removing and reorganizing several parts. It simplifies the language used in certain subsections and removes specific references to streamline the text.