**NUTRITION PROGRAMS**

**Subtitle A-Food Stamp Program**

Sec.4001.Renaming of food stamp program.

Sec.4002.Establishment of food and nutrition program.

Sec.4003.Eligible households.

Sec.4004.Eligibility disqualifications.

Sec.4005.Issuance and use of program benefits.

Sec.4006.Nutrition education.

Sec.4007.Grants for simple application and eligibility determination
systems and improved access to benefits.

Sec.4008.Civil money penalties and disqualification of retail food
stores and wholesale food concerns.

Sec.4009.Collection and disposition of claims.

Sec.4010.Quality control system.

Sec.4011.Employment and training program.

Sec.4012.Reductions in payments for administrative costs.

Sec.4013.Research, demonstration, and evaluations.

Sec.4014.Authorization of appropriations.

Sec.4015.Consolidated block grants for Puerto Rico and American Samoa.

Sec.4016.Benefits for community food projects.

Sec.4017.Conforming amendments to renaming of food stamp program.

**Subtitle B-Commodity Distribution**

Sec.4021.Commodity distribution programs.

Sec.4022.Distribution of surplus commodities to special nutrition
projects.

Sec.4023.Emergency food assistance.

**Subtitle C-Miscellaneous**

Sec.4031.Seniors farmers' market nutrition program.

Sec.4032.Purchase of fruits and vegetables for school nutrition
programs.

Sec.4033.Survey of foods purchased by school food authorities.

**NUTRITION PROGRAMS**

**Subtitle A-Food Stamp Program**

**SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.**

\(a\) [short title]{.smallcaps}.-The first section of the Food Stamp Act
of 1977 (7 U.S.C. 2011 note; Public Law 88--525) is amended by striking
"Food Stamp Act of 1977" and inserting "Food and Nutrition Act of 2007".

CONGRESSDOC

\(b\) [program.-]{.smallcaps}The Food and Nutrition Act of 2007 (7
U.S.C. 2011 et seq.) (as amended by subsection (a)) is amended by
striking "food stamp program" each place it appears and inserting "food
and nutrition program".

**SEC. 4002. ESTABLISHMENT OF THE FOOD AND NUTRITION PROGRAM.**

\(a\) [nutrition education.-]{.smallcaps}Section 4(a) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2013(a)) is amended in the first
sentence by inserting "and through an approved State plan, nutrition
education" after "an allotment".

\(b\) [food distribution program on indian
reservations]{.smallcaps}.-Section 4 of the Food and Nutrition Act of
2007 (7 U.S.C. 2013) is amended by striking subsection (b) and inserting
the following:

"(b) [food distribution program on indian reservations]{.smallcaps}.-

"(1) [definition.-]{.smallcaps}Approved Service Area.-The term 'approved
service area' means non-reservation areas, that, with the approval of
the Secretary, are serviced by a State agency or tribal organization
that administers the program under this subsection for the purpose of
providing nutrition benefits to Native Americans.

"(2) [in general]{.smallcaps}.-On request of a tribal organization, the
Secretary shall make commodities available for distribution on Indian
reservations and approved service areas pursuant to the provisions of
this Act.

> "(3) [distribution]{.smallcaps}.-
>
> "(A) [In general]{.smallcaps}.-Except as provided in subparagraph (B),
> the Secretary shall provide to an appropriate State agency commodities
> for distribution, pursuant to an approved plan of the State agency, to
> each Indian reservation and approved service area.
>
> "(B) [exception]{.smallcaps}.-If the Secretary determines that a
> tribal organization can effectively and efficiently administer the
> distribution of commodities on an Indian reservation, the tribal
> organization shall be considered a State agency for purposes of the
> distribution of commodities, and the Secretary shall provide to the
> tribal organization commodities for distribution, pursuant to an
> approved plan of the tribal organization, to households on the Indian
> reservation and approved service areas.

"(3) [eligibility]{.smallcaps}.-

> "(A) [In general]{.smallcaps}.-No household shall be eligible to
> participate simultaneously in-
>
> "(i) the food and nutrition program under this Act; and
>
> "(ii) the food distribution program on Indian reservations under this
> subsection.
>
> "(B) [approval of plans]{.smallcaps}.-The Secretary shall not approve
> a plan for distribution of a State agency or tribal organization under
> paragraph (2) if the plan provides for simultaneous participation by
> any household in-
>
> "(i) the food and nutrition program under this Act; and
>
> "(ii) the food distribution program on Indian reservations under this
> subsection.
>
> "(C) [disqualified participants]{.smallcaps}.-The Secretary shall
> ensure that an individual who is disqualified from participation in
> the food distribution program on Indian reservations under this
> subsection is not eligible to participate in the food and nutrition
> program under this Act, and that an individual who is disqualified
> from participation in the food and nutrition program under this Act is
> not eligible to participate in the food distribution program under
> this subsection.

"(4) [Administrative expenses]{.smallcaps}.-

> "(A) [cost reimbursement]{.smallcaps}.-The Secretary is authorized to
> pay such amounts for administrative costs of the distribution of
> commodities on Indian reservations and approved service areas as the
> Secretary finds necessary for the effective administration of the
> distribution by a State agency or tribal organization.
>
> "(B) [authorization]{.smallcaps}.-
>
> "(i) [in general]{.smallcaps}.-For fiscal year 2008, the Secretary
> shall make available for administrative expenses incurred in carrying
> out the food distribution program on Indian reservations under this
> subsection \$31,900,000 from funds made available to carry out the
> Food and Nutrition Act of 2007.
>
> "(ii) [adjustment]{.smallcaps}.-For fiscal year 2009 and subsequent
> fiscal years, such funds shall be adjusted in accordance with
> subparagraph (C).
>
> "(C) [adjustment.]{.smallcaps}-The annual adjustment of funds under
> subparagraph (B)(ii) for any fiscal year, shall reflect the percentage
> change between --
>
> "(i) the value of the index for State and local government purchases,
> as published by the Bureau of Economic Analysis of the Department of
> Commerce, for the 12-month period ending June 30 of the second
> preceding fiscal year; and
>
> "(ii) the best estimate that is available as of the start of the
> fiscal year of the value of such index for the 12 month period ending
> June 30 of the previous fiscal year."
>
> "(D) [allocation]{.smallcaps}.-The Secretary shall allocate funds made
> available for administrative expenses incurred in carrying out the
> food distribution program on Indian reservations under this subsection
> among tribal organizations and State agencies participating in the
> program-
>
> "(i) based on the number of households served by the tribal
> organizations and State agencies under the program, and any other
> criteria the Secretary may determine appropriate; and
>
> "(ii) in fiscal year 2008 at levels that are not less than the level
> of administrative expenses the tribal organization or State agency
> received in fiscal year 2007.

**SEC. 4003. ELIGIBLE HOUSEHOLDS.**

\(a\) [in general]{.smallcaps}.-Section 5 of the Food and Nutrition Act
of 2007 (7 U.S.C. 2014) is amended-

\(1\) by striking the section designation and heading and all that
follows through "(a) Participation" and inserting the following:

**"SEC. 5. ELIGIBLE HOUSEHOLDS.**

"(a) [requirements.-]{.smallcaps}

"(1) [In general]{.smallcaps}.-Participation"; and

> \(2\) in subsection (a)-
>
> \(A\) by striking the second sentence and inserting the following:

"(2) [recipients of other federal benefits]{.smallcaps}.-Except as
provided in section 3(i)(4) and subsections (b), (d)(2), and (g) of
section 6, notwithstanding any other provision of this Act, a household
shall be eligible to participate in the food and nutrition program if
each member of the household receives-

> "(A) cash benefits in the form of ongoing basic needs benefit payments
> for financially needy families under a State program funded under part
> A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);
>
> "(B) cash benefits in the form of supplemental security income from a
> program established under title XVI of that Act (42 U.S.C. 1381 et
> seq.); or
>
> "(C) aid to the aged, blind, or disabled under title I, X, XIV, or XVI
> of the Social Security Act (42 U.S.C. 301 et seq.);"; and
>
> \(B\) in the third sentence, by striking "Except for sections 6,
> 16(e)(1), and section 3(i)(4), households" and inserting the
> following:
>
> "(3) [recipients of state and local benefits]{.smallcaps}.---Except as
> provided in sections 3(i)(4), 6, and 16(e)(1), a household"; and
>
> \(C\) in the fourth sentence, by striking "Assistance" and inserting
> the following:

"(4) [applications]{.smallcaps}.-Assistance".

\(b\) [exclusion of combat-related military pay from countable
income]{.smallcaps}.----Section 5(d) of the Food and Nutrition Act of
2007 (7 U.S.C. 2014(g)) is amended by adding at the end the following:

"(19) any additional payment received under chapter 5 of title 37,
United States Code, by a member of the United States Armed Forces
deployed to a designated combat zone for the duration of the member's
deployment if the additional pay is the result of deployment to, or
while serving in a combat zone, and the additional pay was not received
immediately prior to serving in the combat zone.".

\(c\) [dependent care deduction]{.smallcaps}.-Section 5(e)(3)(A) of the
Food and Nutrition Act of 2007 (7 U.S.C. 2014(e)(3)(A)) is amended by
striking ", the maximum allowable" and all that follows through "other
dependent,".

\(d\) [exclusion of retirement accounts from countable financial
resources]{.smallcaps}.-

> \(1\) [In general]{.smallcaps}.-Section 5(g)(2)(B)(v) of the Food and
> Nutrition Act of 2007 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by
> striking "or retirement account (including an individual account)" and
> inserting "account".

\(2\) [mandatory and discretionary exclusions]{.smallcaps}.---Section
5(g) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is amended
by adding at the end the following:

"(7) [exclusion of retirement accounts from countable financial
resources]{.smallcaps}.-

> "(A) [mandatory exclusions]{.smallcaps}.-The Secretary shall exclude
> from financial resources under this subsection the value of any funds
> in a plan, contract, or account, described in sections 401(a), 403(a),
> 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code
> of 1986 and the value of funds in a Federal Thrift Savings Plan
> account as provided in section 8439 of title 5, United States Code.
>
> "(B) [discretionary exclusions]{.smallcaps}.-The Secretary may exclude
> from financial resources under this subsection the value of any other
> retirement plans, contracts, or accounts that have been determined to
> be tax qualified retirement plans, contracts, or accounts under the
> Internal Revenue Code of 1986.".

\(e\) [exclusion of education accounts from countable financial
resources]{.smallcaps}.-Section 5(g) of the Food and Nutrition Act of
2007 (7 U.S.C. 2014(g)) (as amended by subsection (d)) is amended by
adding at the end the following:

> "(8) [exclusion of education accounts from countable financial
> resources]{.smallcaps}.-
>
> "(A) [mandatory exclusions]{.smallcaps}.-The Secretary shall exclude
> from financial resources under this subsection the value of any funds
> in a qualified tuition program described in section 529 of the
> Internal Revenue Code of 1986 or in a Coverdell education savings
> account under section 530 of that Code.
>
> "(B) [discretionary exclusions]{.smallcaps}.-The Secretary may also
> exclude from financial resources under this subsection the value of
> any program or account included in any successor or similar provision
> that may be enacted and determined to be exempt from tax under the
> Internal Revenue Code of 1986.".

**SEC. 4004. ELIGIBILITY DISQUALIFICATIONS**.

\(a\) [disqualification for sale of food purchased with food and
nutrition benefits]{.smallcaps}.-Section 6 of the Food and Nutrition Act
of 2007 (7 U.S.C. 2015) is amended by adding at the end the following:

"(p) [disqualification for sale of food purchased with food and
nutrition benefits]{.smallcaps}.-Any person who has been found by a
State or Federal court or administrative agency to have intentionally
sold any food which has been purchased using food and nutrition benefits
provided under this Act shall be ineligible for benefits under this Act
for such period of time as the Secretary shall prescribe by
regulation.".

\(b\) [disqualified participants]{.smallcaps}.- Section 6 of the Food
and Nutrition Act of 2007 (7 U.S.C.2015) (as amended by (a) of this
subsection) is amended by adding at the end the following:

"(q) No individual shall be eligible to participate in the food and
nutrition program under this Act who is disqualified from participating
in the food distribution program on Indian reservations in accordance
with section (4)(b)(3)(C) of this Act.".

**SEC. 4005. ISSUANCE AND USE OF PROGRAM BENEFITS**.

\(a\) [in general]{.smallcaps}.-Section 7 of the Food and Nutrition Act
of 2007 (7 U.S.C. 2016) is amended---

> \(1\) by striking the section designation and heading and all that
> follows through "subsection (j)) shall be" and inserting the
> following:

**"SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.**

"(a) In General.-Except as provided in subsection (j), EBT cards shall
be";

\(2\) in subsection (b)-

> \(A\) by striking "(b) Coupons" and inserting the following:

"(b) Use.-Benefits"; and

> \(B\) by striking the second proviso in its entirety;
>
> \(3\) in subsection (c)-
>
> \(A\) by striking "(c) Coupons" and inserting the following:

"(c) Design.-

> "(1) [In general]{.smallcaps}.-EBT cards";
>
> \(B\) in the first sentence by striking "and define their
> denomination"; and
>
> \(C\) by striking the second sentence and inserting the following:
>
> "(2) [Prohibition]{.smallcaps}.---The name of any public official
> shall not appear on any EBT card.";
>
> \(4\) by striking subsection (d);
>
> \(5\) in subsection (e)-
>
> \(A\) by striking "coupons" each place it appears and inserting
> "benefits"; and
>
> \(B\) by striking "coupon issuers" each place it appears and inserting
> "benefit issuers";
>
> \(6\) in subsection (f)-
>
> \(A\) by striking "coupons" each place it appears and inserting
> "benefits";
>
> \(B\) by striking "coupon issuer" and inserting "benefit issuer"; and
>
> \(C\) by striking "section 11(e)(20)" and everything that follows and
> inserting "section 11(e)(19).";
>
> \(7\) in subsection (g)-
>
> \(A\) by striking paragraph (1);
>
> \(B\) in paragraph (2), by striking "(2) The cost" and inserting the
> following:
>
> "(2) [Cost]{.smallcaps}.---The cost of documents or systems that may
> be required by subsection (i) may not be imposed upon a retail food
> store participating in the food and nutrition program."; and
>
> \(C\) by adding at the end the following:
>
> "(3) [devaluation and termination of issuance of paper
> coupons]{.smallcaps}.-
>
> "(A) [coupon issuance]{.smallcaps}.-Effective on the date of enactment
> of *farm bill 2007*, no State shall issue any coupon, stamp,
> certificate, or authorization card to a household that receives food
> and nutrition benefits under this Act.
>
> "(B) [ebt cards]{.smallcaps}.-Effective beginning one year from the
> date of enactment of *farm bill 2007*, only an EBT card issued under
> subsection (i) shall be eligible for exchange at any retail food
> store.
>
> "(C) [de-obligation of coupons]{.smallcaps}.-Coupons not redeemed
> within one year from the date of enactment of *farm bill 2007* will no
> longer be an obligation of the Federal government and shall not be
> redeemable.";
>
> \(8\) in subsection (h)(1), by striking "coupons" and inserting
> "benefits";
>
> \(9\) in subsection (j)-
>
> \(A\) in paragraph (2)(A)(ii), by striking "printing, shipping, and
> redeeming coupons" and inserting "issuing and redeeming benefits"; and
>
> \(B\) in paragraph (5), by striking "coupon" and inserting "benefit";
> and
>
> \(10\) in subsection (k)-
>
> \(A\) by striking "coupons in the form of" each place it appears and
> inserting "program benefits in the form of"; and
>
> \(B\) by striking "a coupon issued in the form of" each place it
> appears and inserting "program benefits in the form of".

\(b\) Conforming Amendments.-

> \(1\) Section 3 of the Food and Nutrition Act of 2007 (7 U.S.C. 2012)
> is amended---
>
> \(A\) in subsection (a), by striking "coupons" and inserting
> "benefits";
>
> \(B\) by amending subsection (b) to read as follows:

"(b) "Benefit" means the value of food and nutrition assistance provided
to a household by means of an electronic benefit transfer under section
7(i), or other means of providing assistance, as determined by the
Secretary.";

> \(C\) in subsection (c), in the first sentence, by striking
> "authorization cards" and inserting "benefits";
>
> \(D\) in subsection (d) by striking "or access device" and everything
> that follows and inserting a period;
>
> \(E\) in subsection (e)-
>
> \(i\) by striking "coupon issuer" and inserting "benefit issuer"; and
>
> \(ii\) by striking "coupons" and inserting "benefits";
>
> \(F\) by adding at the end the following:

"(v) EBT Card.-The term 'EBT card' means an electronic benefit transfer
card issued under section 7(i).";

> \(G\) in subsection (i)(5)(D) by striking "coupons" and inserting
> "benefits"; and
>
> \(H\) in subsection (t) by inserting "including point of sale
> devices," after "other means of access".

\(2\) Section 4(a) of the Food and Nutrition Act of 2007 (7 U.S.C.
2013(a)) is amended---

> \(A\) by striking "coupons" each place it appears and inserting
> "benefits"; and
>
> \(B\) by striking "coupons issued" and inserting "benefits issued".

\(3\) Section 5(i)(2)(E) of the Food and Nutrition Act of 2007 (7 U.S.C.
2014(i)(2)(E)) is amended by striking ", as defined in section 3(i) of
this Act,".

\(4\) Section 6(b)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2015(b)(1)) is amended-

> \(A\) in subparagraph (B), by striking "coupons or authorization
> cards" and inserting "program benefits"; and
>
> \(B\) by striking "coupons" each place it appears and inserting
> "benefits".

\(5\) Section 7(j)(5) is amended by striking "coupon" and inserting
"benefit".

\(6\) Section 8 of the Food and Nutrition Act of 2007 (7 U.S.C. 2017) is
amended in subsection (b), by striking ", whether through coupons,
access devices, or otherwise".

\(7\) Section 9 of the Food and Nutrition Act of 2007 (7 U.S.C. 2018) is
amended---

> \(A\) by striking "coupons" each place it appears and inserting
> "benefits"; and
>
> \(B\) in subsection (a)-
>
> \(i\) in paragraph (1), by striking "coupon" and inserting "benefit";
> and
>
> \(ii\) in paragraph (3), by striking "coupons, or to redeem,".
>
> \(8\) Section 10 of the Food and Nutrition Act of 2007 (7 U.S.C. 2019)
> is amended---
>
> \(A\) by striking the section designation and heading and all that
> follows through "Regulations" and inserting the following:

**"SEC. 10. REDEMPTION OF PROGRAM BENEFITS**.

"Regulations"; and

> \(B\) by striking "coupons" each place it appears and inserting
> "benefits".
>
> \(9\) Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020)
> is amended---
>
> \(A\) in subsection (e)-
>
> \(i\) in paragraph (15), by striking "when using its authorization
> card in order to receive its coupons" and inserting "when receiving
> benefits"; and
>
> \(ii\) in paragraph (19), by striking "that," and all that follows
> through "paragraph;" and inserting "that eligible households may be
> required to present photographic identification cards in order to
> receive their benefits.";
>
> \(B\) in subsection (h), by striking "coupon or coupons" and inserting
> "benefits";
>
> \(C\) by striking "coupon" each place it appears and inserting
> "benefit"; and
>
> \(D\) by striking "coupons" each place it appears and inserting
> "benefits".

\(10\) Section 13 of the Food and Nutrition Act of 2007 (7 U.S.C. 2022)
is amended by striking "coupons" each place it appears and inserting
"benefits".

\(11\) Section 15 of the Food and Nutrition Act of 2007 (7 U.S.C. 2024)
is amended-

> \(A\) in subsection (a), by striking "coupons" and inserting
> "benefits";
>
> \(B\) in subsection (b)(1)-
>
> \(i\) by striking "coupons" each place it appears and inserting
> "benefits";
>
> \(ii\) by striking "coupons or authorization cards" and inserting
> "benefits"; and
>
> \(iii\) by striking "access device" each place it appears and
> inserting "benefit";
>
> \(C\) in subsection (c), by striking "coupons" each place it appears
> and inserting "benefits";
>
> \(D\) in subsection (d), by striking "Coupons" and inserting
> "Benefits";
>
> \(E\) in subsections (e) and (f), by striking "coupon" each place it
> appears and inserting "benefit"; and
>
> \(F\) in subsection (g) by striking "coupon, authorization cards or
> access devices" and inserting "benefits"; and

\(12\) Section 16(a) of the Food and Nutrition Act of 2007 (7 U.S.C.
2025(a)) is amended by striking "coupons" each place it appears and
inserting "benefits".

\(13\) Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026)
is amended-

> \(A\) in subsection (a)(2), by striking "coupon" and inserting
> "benefit";
>
> \(B\) in subsection (b)(1)-
>
> \(i\) in subparagraph (B)(v)-
>
> \(I\) by striking "countersigned food coupons or similar"; and
>
> \(II\) by striking "food coupons" and inserting "EBT cards; and
>
> \(ii\) in subparagraph (C)(i)(I) by striking "coupons" and inserting
> "EBT cards"; and
>
> \(C\) in subsection (j), by striking "coupon" and inserting "benefit".

\(14\) Section 21 of the Food and Nutrition Act of 2007 (7 U.S.C. 2030)
is amended---

> \(A\) in subsection (d)(3)-
>
> \(i\) by striking "food coupons" and inserting "benefits"; and
>
> \(ii\) by striking "food stamp benefits" and inserting "program
> benefits".

\(15\) Section 22 of the Food and Nutrition Act of 2007 (7 U.S.C. 2031)
is amended---

> \(A\) by striking "food coupons" each place it appears and inserting
> "benefits";
>
> \(B\) by striking "coupons" each place it appears and inserting
> "benefits"; and
>
> \(C\) in subsection (g)(1)(A), by striking "coupon" and inserting
> "benefit".

\(c\) Conforming Cross-References.-

\(1\) [In general]{.smallcaps}.---

> \(A\) [Use of terms]{.smallcaps}.---Each provision of law described in
> subparagraph (B) is amended (as applicable)-
>
> \(i\) by striking "coupons" each place it appears and inserting
> "benefits";
>
> \(ii\) by striking "coupon" each place it appears and inserting
> "benefit";
>
> \(iii\) by striking "food coupons" each place it appears and inserting
> "benefits";
>
> \(iv\) in each section heading, by striking "food coupons" each place
> it appears and inserting "benefits";
>
> \(v\) by striking "food stamp coupon" and "food stamp coupons" each
> place they appear and inserting "benefits"; and
>
> \(vi\) by striking "food stamps" each place it appears and inserting
> "benefits".
>
> \(B\) [Provisions of law]{.smallcaps}.---The provisions of law
> referred to in subparagraph (A) are the following:
>
> \(i\) Section 2 of Public Law 103--205 (7 U.S.C. 2012 note).
>
> \(ii\) Section 1956(c)(7)(D) of title 18, United States Code.
>
> \(iii\) Titles II through XIX of the Social Security Act (42 U.S.C.
> 401 et seq.), .
>
> \(iv\) Section 401(b)(3) of the Social Security Amendments of 1972 (42
> U.S.C. 1382e note).
>
> \(v\) The Robert T. Stafford Disaster Relief and Emergency Assistance
> Act (42 U.S.C. 5121 et seq.).
>
> \(vi\) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez National
> Affordable Housing Act (42 U.S.C. 8011(d)(2)(A)(i)(II)).

\(2\) [Definition references]{.smallcaps}.-Any reference in any Federal,
State, tribal, or local law (including regulations) to a "coupon",
"authorization card", or other access device provided under the Food and
Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be
a reference to "benefits" provided under that Act.

**SEC. 4006. NUTRITION EDUCATION**

Section 11(f) of the Food and Nutrition Act of 1977 (7 U.S.C. 2020(f))
is amended to read as follows:

"(f) [nutrition education]{.smallcaps}. --

"(1) [in general.]{.smallcaps}-State agencies may implement a nutrition
education program for individuals eligible for food and nutrition
benefits that promotes healthy food choices consistent with current
Dietary Guidelines.

"(2) [delivery of nutrition education]{.smallcaps}.-State agencies may
deliver nutrition education directly to eligible persons or through
agreements with the Cooperative State Research, Education and Extension
Service, including through the expanded food and nutrition education
under section 3(d) of the Act of May 8, 1914 (7 U.S.C. 343(d)), and
other State and community health and nutrition providers and
organizations.

"(3) [nutrition education state plans]{.smallcaps}.-State agencies
wishing to provide nutrition education under this subsection shall
submit a Nutrition Education State Plan to the Food and Nutrition
Service for approval. The plan shall identify the uses of the funding
for local projects and conform to standards set forth by the Secretary
in regulations or guidance. State costs for providing nutrition
education under this subsection shall be reimbursed pursuant to section
16(a) of this Act.

> "(4) [notification.-]{.smallcaps} Whenever practicable, State agencies
> shall notify applicants, participants, and eligible program
> participants of the availability of nutrition education under this
> subsection.".

**SEC. 4007. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION
SYSTEMS AND IMPROVED ACCESS TO BENEFITS.**

Section 11(t)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2020(t)(1)) is amended by striking "2007" and inserting "2012".

**SEC. 4008. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.**

Section 12 of the Food and Nutrition Act of 2007 (7 U.S.C. 2021) is
amended---

\(a\) by striking the section designation and heading and all that
follows through "(a) Any approved" and inserting the following:

**"SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.**

"(a) Disqualification.-

> "(1) [In general]{.smallcaps}.-An approved";

\(b\) in subsection (a)-

> \(1\) in the first sentence by striking "\$10,000 for each violation"
> and everything through the end of the sentence and inserting
> "\$100,000 for each violation.";

\(2\) in the 2nd sentence-

> \(A\) by striking "Regulations" and inserting the following:

"(2) [Regulations]{.smallcaps}.-Regulations"; and

\(B\) by striking "violation and " and inserting "violation of,";

> \(C\) by inserting a comma after "disqualification of";
>
> \(D\) by striking "a retail store" and inserting "and the assessment
> of a civil money penalty against, a retail store";

\(3\) in subsection (b)-

> \(A\) by striking "(b) Disqualification" and inserting the following:

"(b) Period of Disqualification.-Subject to subsection (c), a
disqualification";

> \(B\) in paragraph (1) by striking "of no less than six months nor
> more than five years" and inserting "not to exceed five years";
>
> \(C\) in paragraph (2) by striking "of no less than twelve months nor
> more than ten years" and inserting "not to exceed ten years";
>
> \(D\) in paragraph (3)-
>
> \(i\) in subparagraph B)-
>
> \(I\) by striking "coupons or trafficking in coupons or authorization
> cards" each place it appears and inserting "program access devices or
> benefit instruments or trafficking in program access devices or
> benefit instruments" ; and
>
> \(II\) by inserting "or a finding of the unauthorized redemption, use,
> transfer, acquisition, alteration or possession of program benefits or
> access devices" after "concern" the first time it appears; and

\(ii\) in subparagraph (C) by striking "; and" and inserting a period;

> \(E\) in paragraph (4)-
>
> \(i\) by striking the period at the end and inserting "; and"; and
>
> \(ii\) by striking "coupons" and inserting "benefits";
>
> \(F\) by redesignating subsection (c) through (g) as subsections (d)
> through (h), respectively; and
>
> \(G\) by adding a new subsection (c) that reads as follows:

"(c) In addition to a disqualification under subsection (b), the
Secretary may assess a civil monetary penalty of up to \$100,000.";

> \(4\) in subsection (d) (as redesignated in paragraph (3)(F)), by
> striking "(c) The action" and inserting the following:
>
> "(d) [treatment of disqualification and penalty
> determinations]{.smallcaps}.---
>
> "(1) [Review]{.smallcaps}.-The action";

\(5\) in subsection (e) (as redesignated in paragraph (3)(F)) by
striking "coupons" in each place and inserting "benefits";

> \(6\) in subsection (g) (as redesignated in paragraph (3)(F)) by
> striking "food coupons" and inserting "benefits"; and
>
> (7), by adding a new subsection (i) that reads:
>
> "(i) The Secretary shall, in consultation with the Inspector General
> of the Department of Agriculture, provide for procedures by which the
> processing of program benefit redemptions for certain retailer food
> stores and wholesale food concerns may be immediately suspended
> pending administrative action to disqualify such a firm. Under the
> procedures prescribed pursuant to this subsection, if the Secretary,
> in consultation with the Inspector General, determines that a retail
> food store or wholesale food concern is engaged in flagrant violations
> of this Act or the regulations issued pursuant to this Act, unsettled
> program benefits that have been redeemed by the retail food store or
> wholesale food concern may be suspended and, if the program
> disqualification is upheld, subject to forfeiture pursuant to section
> 12(g). Should the disqualification action not be upheld, program funds
> being held by the Secretary shall be released to the retailer. The
> Secretary shall not be liable for the value of any interest on funds
> suspended under this subsection.".

**SEC. 4009. COLLECTION AND DISPOSITION OF CLAIMS**.

Section 13(b)(4) of the Food and Nutrition Act of 2007 (7 U.S.C.
2022(b)(4)) is amended-

> \(1\) by striking "A State agency" and inserting the following:
>
> "(A) [In general]{.smallcaps}.-Except as provided in subparagraph (B),
> a State agency"; and
>
> \(2\) by adding at the end the following:
>
> "(B) [over issuances caused by systemic state errors]{.smallcaps}.-
>
> "(i) [in general]{.smallcaps}.-If the Secretary determines that a
> State agency over issued benefits to a substantial number of
> households in a fiscal year as result of a systemic error by the State
> agency, the Secretary may prohibit the State agency from collecting
> these over issuances from households.
>
> "(ii) [information reporting by states]{.smallcaps}.-Every State
> agency shall provide to the Secretary all information requested by the
> Secretary concerning the issuance of benefits to households by the
> State agency in the applicable fiscal year.
>
> "(iii) [final determination]{.smallcaps}.-After reviewing relevant
> information provided by a State agency, the Secretary shall make a
> final determination-
>
> "(I) whether the State agency over issued benefits to a substantial
> number of households as a result of a systemic error in the applicable
> fiscal year; and
>
> "(II) as to the amount of the over issuance in the applicable fiscal
> year for which the State agency is liable.
>
> "(iv) [establishing a claim]{.smallcaps}.-Upon determining under
> clause (iii) that a State agency has systematically over issued
> benefits to households as described under clause (i), the Secretary
> shall establish a claim against the State agency equal to the value of
> the over issuance caused by the systemic error;
>
> "(v) [administrative and judicial review]{.smallcaps}.-Administrative
> and judicial review, as provided in section 14, shall apply to the
> final determinations by the Secretary under subclauses (I) and (II) of
> clause (iii).
>
> "(vi) [remission to the secretary.-]{.smallcaps}
>
> "(I) [determination not appealed]{.smallcaps}.-If the determination of
> the Secretary under clause (iii) is not appealed, the State agency
> shall, as soon as practicable, remit to the Secretary the dollar
> amount specified in the claim under clause (iv).
>
> "(II) [determination appealed]{.smallcaps}.-If the determination of
> the Secretary under clause (iii) is appealed, upon completion of
> administrative and judicial review under clause (v), and a finding of
> liability on the part of the State, the appealing State agency shall,
> as soon as practicable, remit to the Secretary a dollar amount subject
> to the findings of the administrative and judicial review.

"(vii) [alternative method of collection]{.smallcaps}.-

> "(I) [in general]{.smallcaps}.-If a State agency fails to make a
> payment under clause (vi) within a reasonable period of time, as
> determined by the Secretary, the Secretary may reduce any amount due
> to the State agency under any other provision of this Act by the
> amount due.
>
> "(II) [accrual of interest]{.smallcaps}.-During the period of time
> determined by the Secretary to be reasonable under subclause (I),
> interest on the amount owed shall not accrue.
>
> "(viii) [limitation.]{.smallcaps}-Any liability amount established
> under section 16(c)(1)(C) shall be reduced by the amount of the claim
> established under this subparagraph.".

**SEC. 4010. QUALITY CONTROL SYSTEM**.

Section 16(c) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(c))
is amended---

\(a\) in paragraph (1)-

> \(1\) in subparagraph (D)(i)(II), by inserting "except as provided in
> clause (iii) of this subparagraph" before "require";

\(2\) by adding at the end of subparagraph (D) the following:

"(iii) STATES IN LIABILITY STATUS FOR A THIRD CONSECUTIVE FISCAL YEAR.
--

"(I) [in general.]{.smallcaps}- If a liability amount has been
established for a State agency under subparagraph (C) for a third
successive fiscal year, the Secretary shall hold the state responsible
to pay the entire liability amount for that fiscal year.

"(II) [alternatives to full payment not available]{.smallcaps}.-The
alternatives provided under clause (i) to full payment of the amount
determined owed by a State agency under subparagraph (C) shall not apply
to this clause."; and

\(2\) by inserting after paragraph (9) the following:

"(10) [penalty for negative error rate]{.smallcaps}.-

> "(A) [definitions]{.smallcaps}.- In this paragraph:
>
> "(i) [affected state agency]{.smallcaps}.-The term "affected State
> agency" means a State agency that maintained, for 2 consecutive fiscal
> years, a negative error rate that is more than 50 percent higher than
> the national average negative error rate, as determined by the
> Secretary.
>
> "(ii) [negative error rate]{.smallcaps}.-
>
> "(I) [in general]{.smallcaps}.-The term 'negative error rate' means,
> for a state agency in a fiscal year, the ratio of, with respect to the
> fiscal year-
>
> " (aa) actions erroneously taken by the State agency to deny
> applications, or to suspend or terminate benefits of a household that
> is currently participating in the Food and Nutrition Program; to
>
> "(bb) the total number of actions taken by the State agency to deny
> applications, or to suspend or terminate benefits against households
> that are currently participating in the Food and Nutrition Program.
>
> "(II) [exclusions]{.smallcaps}.-The following errors may be measured
> for management purposes, but shall not be included in the negative
> error rate calculated under subclause (I)-
>
> "(aa) errors resulting from the application of new regulations
> promulgated under this Act during the first 120 days from the required
> implementation date for such regulations; and
>
> "(bb) errors resulting from the use by a State agency of correctly
> processed information concerning households or individuals received
> from Federal agencies or from actions based on policy information
> approved or disseminated, in writing, by the Secretary or the
> Secretary's designee.
>
> "(iii) [national average negative error rate]{.smallcaps}.-The term
> "national average negative error rate\" means the sum of the products
> of -

"(I) each state agency's negative error rate established under clause
(ii); multiplied by

"(II) that state agency's proportion of the total negative caseload for
the fiscal year as calculated under the quality control sample at the
time of the notifications issued under subparagraph (C), as determined
by the Secretary.

> "(B) PENALTY AMOUNT.-For fiscal year 2008 and each subsequent fiscal
> year, the amount of the penalty for an affected State agency shall be
> equal to 5 percent of the amount otherwise payable under subsection
> (a).

"(C) [information reporting by states]{.smallcaps}.-

> "(i) [in general]{.smallcaps}.-Every State agency shall expeditiously
> submit to the Secretary data concerning the operations of the State
> agency in each fiscal year sufficient for the Secretary to establish
> the State agency's negative error rate and penalty amount.
>
> "(ii) [relevant information]{.smallcaps}.-The Secretary may require a
> State agency to report any factors necessary to determine a State
> agency's negative error rate.
>
> "(iii) [information not reported]{.smallcaps}.-If a State agency fails
> to report information required by the Secretary, the Secretary may use
> any information, as the Secretary considers appropriate, to establish
> the negative error rate of the State agency for the applicable year.
>
> "(iv) [national average error rate]{.smallcaps}.\--If a State agency
> fails to report information required by the Secretary, the Secretary
> may use another measure of a State's negative error rate developed
> under clause (iii) to establish the national average negative error
> rate.

"(D) ANNOUNCEMENT OF ERROR RATES.-

> "(i) [case review]{.smallcaps}.-Not later than May 31 of fiscal year
> 2008 and each subsequent fiscal year, the case review and all
> arbitration of State-Federal differences on negative error cases for
> the previous fiscal year shall be completed.
>
> "(ii) [determination and announcement]{.smallcaps}.-Not later than
> June 30 of fiscal year 2008 and each subsequent fiscal year, the
> Secretary shall, for the previous fiscal year-
>
> "(I) determine-

"(aa) final negative error rates;

"(bb) the national average negative error rate; and

"(cc) penalty amounts;

"(II) notify affected State agencies of the penalty amounts;

> "(III) provide a copy of the notification under subclause (II) to the
> chief executive officer and the legislature of the affected State; and
>
> "(IV) establish a claim against the State agency for the monetary
> penalty amount assessed against the State agency.
>
> "(E) [review]{.smallcaps}.-
>
> "(i) [in general]{.smallcaps}.-For any fiscal year, if the Secretary
> imposes a penalty amount against a State agency as provided under
> subparagraph (D)(ii), the following determinations of the Secretary
> shall be subject to administrative and judicial review as provided
> under section 14-

"(I) the final negative error rate of the State agency;

> "(II) whether the negative error rate of the State agency exceeds 50
> percent of the national average negative error rate; and

"(III) the monetary penalty amount assessed against the State agency.

"(ii) [determination not reviewable]{.smallcaps}.-The national average
negative error rate announced under this paragraph shall not be subject
to administrative or judicial review.

> "(F) [payment of penalty amount]{.smallcaps}.-
>
> "(i) [in general]{.smallcaps}.[-]{.smallcaps}Upon completion of
> administrative and judicial review under subparagraph (E), an affected
> State agency shall pay to the Secretary the penalty amount designated
> under subparagraph (D)(ii), subject to the findings of the
> administrative or judicial review, by September 30^th^ of the fiscal
> year in which the claim has been issued to the State agency.
>
> "(ii) [alternative method of collection]{.smallcaps}.-
>
> "(I) [in general]{.smallcaps}.-If a State agency fails to make a
> payment under clause (i) by September 30^th^ of the fiscal year in
> which the claim has been issued to the State agency, as determined by
> the Secretary, the Secretary may reduce any amount due to the State
> agency under any other provision of this Act by the amount of the
> monetary penalty established under subparagraph (D)(ii).
>
> "(II) [accrual of interest]{.smallcaps}.-Interest on the amount owed
> shall not accrue, as is otherwise provided under section 13(a)(2),
> until after September 30 of the applicable fiscal year.".

**SEC. 4011. EMPLOYMENT AND TRAINING PROGRAM**.

Section 16(h)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2025(h)(1)) is amended by striking "2007" each place it appears and
inserting "2012".

**SEC. 4012. REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.**

Section 16(k)(3) of the Food and Nutrition Act of 2007 (7 U.S.C.
2025(k)(3)) is amended by striking "2007" each place it appears and
inserting "2012".

**SEC. 4013. RESEARCH, DEMONSTRATION, AND EVALUATIONS**.

\(a\) [cash payment pilot projects]{.smallcaps}.---Section
17(b)(1)(B)(vi) of the Food and Nutrition Act of 2007 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended by striking "2007" and inserting "2012".

\(b\) [nutrition education and promotion initiative to address
obesity]{.smallcaps}.---Section 17 of the Food and Nutrition Act of 2007
(7 U.S.C. 2026) is amended by adding at the end the following:

"(k) [nutrition education and promotion initiative to address
obesity]{.smallcaps}.-

"(1) [In general]{.smallcaps}.-The Secretary shall establish a
demonstration program, to be known as the 'Initiative to Address Obesity
Among Low-Income Americans' (referred to in this subsection as the
'Initiative'), to develop and implement solutions to reduce obesity in
the United States.

> "(A) [selection]{.smallcaps}.-The Secretary shall solicit and
> competitively select demonstration proposals for strategies to address
> obesity among low-income Americans.
>
> "(B) [evaluation]{.smallcaps}.-The effectiveness of these strategies
> shall be rigorously evaluated to assess the impact on overweight and
> obesity among low income persons.
>
> "(C) [dissemination]{.smallcaps}.- Evaluation results shall be shared
> broadly to inform policy makers, service providers, other partners,
> and the public in order to promote wide use of successful strategies.
>
> "(D) [demonstration strategies]{.smallcaps}.-Demonstration strategies
> may include-
>
> "(i) providing incentives to households that receive food and
> nutrition assistance to purchase fruits and vegetables from retail
> food stores participating in the food and nutrition program; and
>
> "(ii) increasing the use of farmers markets by households that receive
> food and nutrition assistance.

"(2) [Grants]{.smallcaps}.---

> "(A) [In general]{.smallcaps}.-In carrying out the Initiative, the
> Secretary may enter into competitively awarded contracts or
> cooperative agreements with, or grants to, public or private
> organizations or agencies as defined by the Secretary, for use in
> accordance with subparagraph (D).
>
> "(B) [application]{.smallcaps}.-To be eligible to receive a contract,
> cooperative agreement or grant under this paragraph, an organization
> shall submit to the Secretary an application at such time, in such
> manner, and containing such information as the Secretary may require.
>
> "(C) [selection criteria]{.smallcaps}.- Demonstration proposals shall
> be evaluated against publicly disseminated criteria that include-
>
> "(i) identification of a low-income target audience that corresponds
> to persons living in households with incomes at or below 185 percent
> of the poverty level;
>
> "(ii) incorporation of a scientifically-based strategy that is
> designed to improve diet quality through more healthful food
> purchases, preparation and/or consumption;
>
> "(iii) a commitment to a demonstration plan that allows for a rigorous
> outcome evaluation, including data collection; and
>
> "(iv) other criteria, as determined by the Secretary.
>
> "(D) [use of funds]{.smallcaps}.-
>
> "(i) [prohibition.]{.smallcaps}-Funds shall not be used for projects
> that limit the use of food and nutrition benefits.
>
> "(ii) [monitoring and evaluation]{.smallcaps}.-The Secretary may use
> funds provided for the Initiative to pay costs associated with
> monitoring, evaluation, and dissemination of the Initiative's
> findings.

"(3) [funding]{.smallcaps}.-For each of fiscal years 2008 through 2012,
the Secretary shall use up to \$20,000,000 made available under section
18(a)(1) to carry out the activities specified in this subsection. No
new grants shall be made under this subsection after September 30,
2012.".

> \(c\) Section 17 is further amended by adding a new paragraph (j) as
> follows:

"(j) [Pilot program for employed recipients]{.smallcaps}.---

"(1) [Establishment]{.smallcaps}.---The Secretary shall establish a
pilot program in which not more than 3 States reimburse the cost of
certain work-related expenses of employed members of households
participating in the food and nutrition program in accordance with this
subsection.

> "(2) [requirements]{.smallcaps}.-
>
> "(A) [eligible expenses]{.smallcaps}.-
>
> "(i) [in general]{.smallcaps}.-The Secretary shall review and approve
> State plans for expenses eligible for reimbursement under this
> subsection.
>
> "(ii) [allowable expenses]{.smallcaps}.-Allowable expenses shall
> include, as determined appropriate by the Secretary, the cost of-
>
> "(I) uniforms;
>
> "(II) professional licenses; and
>
> "(III) tools.
>
> "(iii) [prohibition]{.smallcaps}.-
>
> "(I) [child care costs]{.smallcaps}.-The cost of child care shall not
> be eligible for reimbursement under this subsection.
>
> "(II) [work related expenses]{.smallcaps}.-The costs of work-related
> expenses for participants who are receiving benefits under a State
> program funded under part A of title IV of the Social Security Act (42
> U.S.C. 601 et seq.) shall not be eligible for reimbursement under this
> subsection."
>
> "(B) [Timing]{.smallcaps}.-The Secretary may establish the period of
> time during which a household shall be eligible to receive
> reimbursement under this subsection.
>
> "(C) [Term]{.smallcaps}.-A State shall provide reimbursement pursuant
> to this subsection for a period of not more than 3 years.
>
> "(3) [Federal share]{.smallcaps}.-The Federal share of the cost of the
> program under this subsection-
>
> "(A) shall be 50 percent; and
>
> "(B) shall not exceed \$3,000,000.".

\(2\) [Funding]{.smallcaps}.-Section 16(h)(1) of the Food and Nutrition
Act of 2007 (7 U.S.C. 2025(h)(1)) is amended by adding at the end the
following:

> "(F) [Pilot program for employed recipients]{.smallcaps}.-In addition
> to the allocations under subparagraph (A), from funds made available
> under section 18(a)(1), the Secretary shall allocate not more than a
> total of \$3,000,000 for the period of fiscal years 2008 through 2011
> to carry out the pilot program under section 17(j). No new grants
> shall be made under section 17(j) after September 30, 2011.".

**SEC. 4014. AUTHORIZATION OF APPROPRIATIONS**.

Section 18(a)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2027(a)(1)) is amended in the first sentence by striking "2007" and
inserting "2012".

**SEC. 4015. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN
SAMOA.**

Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C.
2028(a)(2)(A)(ii)) is amended by striking "2007" and inserting "2012".

**SEC. 4016. BENEFITS FOR COMMUNITY FOOD PROJECTS**.

Section 25 of the Food and Nutrition Act of 2007 (7 U.S.C. 2034) is
amended in subsections (b)(2)(B) and (h)(4) by striking "2007" each
place it appears and inserting "2012".

**SEC. 4017. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP PROGRAM**.

\(a\) In General.-

\(1\) Section 5(h)(2)(A) of the Food and Nutrition Act of 2007 (7 U.S.C.
2014(h)(2)(A)) is amended by striking "food stamp disaster task force"
and inserting "food and nutrition disaster task force".

> \(2\) Section 6 of the Food and Nutrition Act of 2007 (7 U.S.C. 2015)
> is amended---
>
> \(A\) in subsection (d)(3), by striking "eligible for food stamps" and
> inserting "eligible to receive food and nutrition benefits";
>
> \(B\) in subsection (g), by striking "food stamps" and inserting "food
> and nutrition benefits";
>
> \(C\) in subsection (j), in the subsection heading, by striking "Food
> Stamp" and inserting "Food and Nutrition"; and
>
> \(D\) in subsection (o)---
>
> \(i\) in paragraph (2), by striking "food stamp benefits" and
> inserting "food and nutrition benefits"; and
>
> \(ii\) in paragraph (6)---
>
> \(I\) in subparagraph (A)---
>
> (aa) in clause (i), by striking "food stamps" and inserting "food and
> nutrition benefits"; and
>
> (bb) in clause (ii)-
>
> (AA) in the matter preceding subclause (I), by striking "a food stamp
> recipient" and inserting "a member of a household that receives food
> and nutrition benefits"; and
>
> (BB) by striking "food stamp benefits" each place it appears and
> inserting "food and nutrition benefits"; and
>
> \(II\) in subparagraphs (D) and (E), by striking "food stamp
> recipients" each place it appears and inserting "members of households
> that receive food and nutrition benefits".
>
> \(3\) Section 7 of the Food and Nutrition Act of 2007 (7 U.S.C. 2016)
> is amended---
>
> \(A\) in subsection (i)-
>
> \(i\) in paragraph (3)(B)(ii), by striking "food stamp households" and
> inserting "households receiving food and nutrition benefits"; and
>
> \(ii\) in paragraph (7), by striking "food stamp issuance" and
> inserting "food and nutrition benefits issuance"; and
>
> \(B\) in subsection (k)-
>
> \(i\) in paragraph (2), by striking "food stamp benefits" and
> inserting "food and nutrition benefits"; and
>
> \(ii\) in paragraph (3), by striking "food stamp retail" and inserting
> "food and nutrition benefits retail".

\(4\) Section 9(b)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2018(b)(1)) is amended by striking "food stamp households" and inserting
"households that receive food and nutrition benefits".

> \(5\) Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020)
> is amended---
>
> \(A\) in subsection (e)-
>
> \(i\) in paragraph (2)-
>
> \(I\) in subparagraph (A), by striking "food stamp offices" and
> inserting "food and nutrition offices"; and
>
> \(II\) in subparagraph (B)-
>
> (aa) in clause (iii), by striking "food stamp office" and inserting
> "food and nutrition office";
>
> (bb) in clause (v)(II), by striking "food stamps" and inserting "food
> and nutrition benefits"; and
>
> \(cc\) in clause (vii), by striking "food stamp offices" and inserting
> "food and nutrition offices";
>
> \(ii\) in paragraph (14), by striking "food stamps" and inserting
> "food and nutrition benefits";
>
> \(iii\) in paragraph (16), by striking "food stamps" and inserting
> "food and nutrition benefits"; and
>
> \(iv\) in paragraph (25)---
>
> \(I\) in the matter preceding subparagraph (A), by striking
> "Simplified Food Stamp Program" and inserting "Simplified Food and
> Nutrition Program"; and
>
> \(II\) in subparagraph (A), by striking "food stamp benefits" and
> inserting "food and nutrition benefits";
>
> \(B\) in subsection (f)-
>
> \(i\) in paragraph (1)-
>
> \(I\) by striking "food stamps" and inserting "food and nutrition
> benefits"; and
>
> \(II\) by striking "food stamp offices" and inserting "food and
> nutrition offices"; and
>
> \(ii\) in paragraph (2)(B), by striking "food stamp participants" each
> place it appears and inserting "participants in the food and nutrition
> program";
>
> \(C\) in subsection (k), by striking "may issue, upon request by the
> State agency, food stamps" and inserting "may provide, on request by
> the State agency, food and nutrition benefits";
>
> \(D\) in subsection (l), by striking "food stamp participation" and
> inserting "food and nutrition program participation";
>
> \(E\) in subsections (q) and (r), in the subsection headings, by
> striking "Food Stamps" each place it appears and inserting "Food and
> Nutrition Benefits";
>
> \(F\) in subsection (s), by striking "food stamp benefits" each place
> it appears and inserting "food and nutrition benefits"; and
>
> \(G\) in subsection (t)(1)---
>
> \(i\) in subparagraph (A), by striking "food stamp application" and
> inserting "food and nutrition program application"; and
>
> \(ii\) in subparagraph (B), by striking "food stamp benefits" and
> inserting "food and nutrition benefits".

\(6\) Section 12(a) of the Food and Nutrition Act of 2007 (7 U.S.C.
2021(a)) is amended in the first sentence by striking "food stamp
households" and inserting "households receiving food and nutrition
benefits".

\(7\) Section 14(b) of the Food and Nutrition Act of 2007 (7 U.S.C.
2023(b)) is amended by striking "food stamp allotments" and inserting
"food and nutrition benefits".

> \(8\) Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025)
> is amended---
>
> \(A\) in subsection (a)(4), by striking "food stamp informational
> activities" and inserting "informational activities relating to the
> food and nutrition program";
>
> \(B\) in subsection (c)(9)(C), by striking "food stamp caseload" and
> inserting "the caseload under the food and nutrition program"; and
>
> \(C\) in subsection (h)(1)(E)(i), by striking "food stamp recipients"
> and inserting "households receiving food and nutrition benefits".

\(9\) Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026)
is amended---

> \(A\) in subsection (a)(2), by striking "food stamp benefits" each
> place it appears and inserting "food and nutrition benefits";
>
> \(B\) in subsection (b)-
>
> \(i\) in paragraph (1)-
>
> \(I\) in subparagraph (A), by striking "food stamp benefits" and
> inserting "food and nutrition benefits"; and
>
> \(II\) in subparagraph (B)-
>
> (aa) in clause (ii)(II), by striking "food stamp recipients" and
> inserting "food and nutrition program recipients";
>
> (bb) in clause (iii)(I), by striking "the State's food stamp
> households" and inserting "the number of households in the State
> receiving food and nutrition benefits"; and
>
> \(cc\) in clause (iv)(IV)(bb), by striking "food stamp deductions" and
> inserting "food and nutrition program deductions";
>
> \(ii\) in paragraph (2), by striking "food stamp benefits" and
> inserting "food and nutrition benefits"; and
>
> \(iii\) in paragraph (3)---
>
> \(I\) in subparagraph (A), by striking "food stamp employment" and
> inserting "food and nutrition program employment";
>
> \(II\) in subparagraph (B), by striking "food stamp recipients" and
> inserting "food and nutrition program recipients";
>
> \(III\) in subparagraph (C), by striking "food stamps" and inserting
> "food and nutrition benefits"; and
>
> \(IV\) in subparagraph (D), by striking "food stamp benefits" and
> inserting "food and nutrition benefits";
>
> \(C\) in subsection (c), by striking "food stamps" and inserting "food
> and nutrition benefits";
>
> \(D\) in subsection (d)-
>
> \(i\) in paragraph (2)-
>
> \(I\) in subparagraph (A), by striking "food stamp allotments" each
> place it appears and inserting "food and nutrition benefits"; and
>
> \(II\) in subparagraph (C)(ii), by striking "food stamp benefit" and
> inserting "food and nutrition benefit"; and
>
> \(ii\) in paragraph (3)(E), by striking "food stamp benefits" and
> inserting "food and nutrition benefits";
>
> \(E\) in subsections (e) and (f), by striking "food stamp benefits"
> each place it appears and inserting "food and nutrition benefits";
>
> \(F\) in subsection (g), in the first sentence, by striking "receipt
> of food stamp" and inserting "receipt of food and nutrition benefit";
> and
>
> \(G\) in subsection (j), by striking "food stamp agencies" and
> inserting "food and nutrition program agencies".

\(10\) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act of 2007 (7
U.S.C. 2027(a)(3)(A)(ii)) is amended by striking "food stamps" and
inserting "food and nutrition benefits".

\(11\) Section 21(d)(3) of the Food and Nutrition Act of 2007 (7 U.S.C.
2030(d)(3)) is amended by striking "food stamp benefits" and inserting
"food and nutrition benefits".

\(12\) Section 22 of the Food and Nutrition Act of 2007 (7 U.S.C. 2031)
is amended---

> \(A\) in the section heading, by striking "food stamp portion of
> MINNESOTA family investment plan" and inserting "food and nutrition
> benefits portion of MINNESOTA family investment project";
>
> \(B\) in subsections (b)(12) and (d)(3), by striking "the Food Stamp
> Act, as amended," each place it appears and inserting "this Act"; and
>
> \(C\) in subsection (g)(1), by striking "the Food Stamp Act of 1977(7
> U.S.C. 2011 et seq.)" and inserting "this Act".

\(13\) Section 26 of the Food and Nutrition Act of 2007 (7 U.S.C. 2035)
is amended---

> \(A\) in the section heading, by striking "simplified food stamp
> program" and inserting "simplified food and nutrition program"; and
>
> \(B\) in subsection (b), by striking "simplified food stamp program"
> and inserting "simplified food and nutrition program".

\(b\) [conforming cross-references]{.smallcaps}.-

\(1\) [In general]{.smallcaps}.-Each provision of law described in
paragraph (2) is amended (as applicable)---

> \(A\) by striking "food stamp program" each place it appears and
> inserting "food and nutrition program";
>
> \(B\) by striking "Food Stamp Act of 1977" each place it appears and
> inserting "Food and Nutrition Act of 2007";
>
> \(C\) by striking "Food Stamp Act" each place it appears and inserting
> "Food and Nutrition Act of 2007";
>
> \(D\) by striking "food stamp" each place it appears and inserting
> "food and nutrition benefit";
>
> \(E\) by striking "food stamps" each place it appears and inserting
> "food and nutrition benefits";
>
> \(F\) in each applicable title, subtitle, chapter, subchapter, and
> section heading, by striking "food stamp" each place it appears and
> inserting "food and nutrition benefit";
>
> \(G\) in each applicable subsection and appropriations heading, by
> striking "Food Stamp" each place it appears and inserting "Food and
> Nutrition Benefit";
>
> \(H\) in each applicable heading other than a title, subtitle,
> chapter, subchapter, section, subsection, or appropriations heading,
> by striking "food stamp" each place it appears and inserting "food and
> nutrition benefit";
>
> \(I\) in each applicable title, subtitle, chapter, subchapter, and
> section heading, by striking "food stamps" each place it appears and
> inserting "food and nutrition benefits";
>
> \(J\) in each applicable subsection and appropriations heading, by
> striking "Food Stamps" each place it appears and inserting "Food and
> Nutrition Benefits"; and
>
> \(K\) in each applicable heading other than a title, subtitle,
> chapter, subchapter, section, subsection, or appropriations heading,
> by striking "food stamps" each place it appears and inserting "food
> and nutrition benefits".

\(2\) [Provisions of law]{.smallcaps}.---The provisions of law referred
to in paragraph (1) are the following:

> \(A\) The Congressional Budget Act of 1974 (2 U.S.C. 601 et seq.).
>
> \(B\) The Balanced Budget and Emergency Deficit Control Act of 1985 (2
> U.S.C. 900 et seq.).
>
> \(C\) The Hunger Prevention Act of 1988 (Public Law 100--435; 102
> Stat. 1645).
>
> \(D\) The Food Stamp Program Improvements Act of 1994 (Public Law
> 103--225; 108 Stat. 106).
>
> \(E\) Title IV of the Farm Security and Rural Investment Act of 2002
> (Public Law 107--171; 116 Stat. 305).
>
> \(F\) Section 2 of Public Law 103--205 (7 U.S.C. 2012 note).
>
> \(G\) Section 807(b) of the Stewart B. McKinney Homeless Assistance
> Act (7 U.S.C. 2014 note; Public Law 100--77).
>
> \(H\) The Electronic Benefit Transfer Interoperability and Portability
> Act of 2000 (Public Law 106--171; 114 Stat. 3).
>
> \(I\) Section 502(b) of the Agricultural Research, Extension, and
> Education Reform Act of 1998 (7 U.S.C. 2025 note; Public Law
> 105--185).
>
> \(J\) The National Agricultural Research, Extension, and Teaching
> Policy Act of 1977 (7 U.S.C. 3101 et seq.).
>
> \(K\) The Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et
> seq.).
>
> \(L\) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
>
> \(M\) Section 8119 of the Department of Defense Appropriations Act,
> 1999 (10 U.S.C. 113 note; Public Law 105--262).
>
> \(N\) The Armored Car Industry Reciprocity Act of 1993 (15 U.S.C. 5901
> et seq.).
>
> \(O\) Title 18, United States Code.
>
> \(P\) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
>
> \(Q\) The Internal Revenue Code of 1986.
>
> \(R\) Section 650 of the Treasury and General Government
> Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law 106--58).
>
> \(S\) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
>
> \(T\) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
>
> \(U\) Title 31, United States Code.
>
> \(V\) Title 37, United States Code.
>
> \(W\) The Public Health Service Act (42 U.S.C. 201 et seq.).
>
> \(X\) Titles II through XIX of the Social Security Act (42 U.S.C. 401
> et seq.).
>
> \(Y\) Section 406 of the Family Support Act of 1988 (Public Law
> 100--485; 102 Stat. 2400).
>
> \(Z\) Section 232 of the Social Security Act Amendments of 1994 (42
> U.S.C. 1314a).
>
> (AA) The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
>
> (BB) The Richard B. Russell National School Lunch Act (42 U.S.C. 1751
> et seq.).
>
> \(CC\) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
>
> (DD) The Older Americans Act of 1965 (42 U.S.C. 3001 et seq.).
>
> (EE) Section 208 of the Intergovernmental Personnel Act of 1970 (42
> U.S.C. 4728).
>
> (FF) The Robert T. Stafford Disaster Relief and Emergency Assistance
> Act (42 U.S.C. 5121 et seq.).
>
> (GG) The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621
> et seq.).
>
> (HH) Section 658K of the Child Care and Development Block Grant Act of
> 1990 (42 U.S.C. 9858i).
>
> \(II\) The Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
> seq.).
>
> (JJ) Public Law 95--348 (92 Stat. 487).
>
> (KK) The Agriculture and Food Act of 1981 ( 95 Stat. 1213).
>
> (LL) The Disaster Assistance Act of 1988 (102 Stat. 924).
>
> \(MM\) The Food, Agriculture, Conservation, and Trade Act of 1990 (104
> Stat. 3359).
>
> (NN) The Cranston-Gonzalez National Affordable Housing Act (104 Stat.
> 4079).
>
> (OO) Section 388 of the Persian Gulf Conflict Supplemental
> Authorization and Personnel Benefits Act of 1991 (105 Stat. 98).
>
> (PP) The Food, Agriculture, Conservation, and Trade Act Amendments of
> 1991 (105 Stat. 1818).
>
> (QQ) The Act of March 26, 1992 (106 Stat. 90).
>
> (RR) Public Law 105--379 (112 Stat. 3399).
>
> (SS) Section 101(c) of the Emergency Supplemental Act, 2000 (114 Stat.
> 528).

\(c\) References.-Any reference in any Federal, State, tribal, or local
law (including regulations) to the "food stamp program" established
under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.) shall
be considered to be a reference to the "food and nutrition program"
established under that Act.

Subtitle B-Commodity Distribution

**SEC. 4021. COMMODITY DISTRIBUTION PROGRAMS**.

Section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7
U.S.C. 612c note; Public Law 93--86) is amended in the first sentence by
striking "2007" and inserting "2012".

**SEC. 4022. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION
PROJECTS.**

Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C.
1431e(2)(A)) is amended in the first sentence by striking "2007" and
inserting "2012".

**SEC. 4023. EMERGENCY FOOD ASSISTANCE**.

\(a\) Definitions.---Section 201A of the Emergency Food Assistance Act
of 1983 (7 U.S.C. 7501) is amended-

\(1\) in paragraph (3), in the matter preceding subparagraph (A) by
striking "organization" inserting "organization, including a community
based or faith based organization,";

\(2\) in paragraph (4) by striking "organization" the second time it
occurs and inserting "organization, including a community based or faith
based organization,"; and

\(3\) in paragraph (6) by striking "organization" and inserting
"organization, including a community based or faith based
organization,".

\(b\) State Plans.-Section 202A of the Emergency Food Assistance Act of
1983 (7 U.S.C. 7503) is amended by striking subsection (a) and inserting
the following:

"(a) Plans.---

"(1) [In general]{.smallcaps}.-To receive commodities under this Act, a
State shall submit to the Secretary an operation and administration plan
for the provision of benefits under this Act.

"(2) [Updates]{.smallcaps}.-A State shall submit to the Secretary for
approval an amendment to a plan submitted under paragraph (1), in
instances when the State proposes to make changes in program operations
or administration that are described in the plan.".

\(c\) Federal and State Responsibilities.-Section 203B of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7505) is amended-

> \(1\) by striking the second sentence in paragraph (a);

\(2\) by redesignating subsections (b), (c), and (d) as (d), (e) and
(f); and

\(3\) by amending subsections (b) and (c) to read as follows:

"(b) State agencies shall establish criteria for determining the ability
of organizations applying for participation to-

> "(1) distribute commodities in a timely manner;
>
> "(2) provide adequate storage facilities;
>
> "(3) maintain inventory records;
>
> "(4) distribute commodities to all designated areas;

"(5) limit the distribution of commodities to those individuals and
organizations eligible to receive them; and

> "(6) provide services to organizations at no cost or for a nominal
> fee.

"(c) The State agency shall, after conducting an open competition,
select organizations for a 3-year period to participate in the program.
In selecting from among qualified organizations, the State agency may
consider the effectiveness of each organization to distribute
commodities provided under this Act based on---

"(1) past performance of the organization in providing comparable
services, including how effectively the organization provided such
services;

"(2) information provided by the organization in response to the
solicitation;

> "(3) the capacity of the organization to serve those eligible;

"(4)the ability of the organization to meet the standards set forth in
subsection (b);

"(5) the proposed budget and plan of the organization to maintain strong
fiscal controls and cost effective fiscal management; and

"(6) the organization's plan to coordinate activities with other local
organizations providing similar services.".

\(d\) Reauthorization.---Section 204(a)(1) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended in the first
sentence by striking "2007" and inserting "2012".

**Subtitle C-Miscellaneous**

**SEC. 4031. SENIORS FARMERS' MARKET NUTRITION PROGRAM**.

Section 4402 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 3007) is amended---

\(1\) in subsection (a), by striking "2007" and inserting "2012";

> \(2\) by redesignating subsection (c) as subsection (e); and
>
> \(3\) by inserting after subsection (b) the following:

"(c) [Exclusion of Benefits in Determining Eligibility for Other
Programs]{.smallcaps}.-The value of any benefit provided to any eligible
Seniors Farmers' Market Nutrition Program recipient under this section
shall not be considered to be income or resources for any purposes under
any Federal, State, or local laws.

"(d) [Prohibition on Collection of Sales Tax]{.smallcaps}.-The State
shall ensure that no State or local taxes are collected within the State
on purchases of food with coupons distributed under the Seniors Farmers'
Market Nutrition Program.".

**SEC. 4032. PURCHASE OF FRUITS AND VEGETABLES FOR SCHOOL NUTRITION
PROGRAMS**

Section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1755) is amended by inserting at the end a new subsection (f) that reads
as follows:

"(f) [purchase of fruits and vegetables for school nutrition
programs]{.smallcaps}.-

"(1) [in general]{.smallcaps}.-In addition to any other assistance
provided under any other provision of law, including commodity
assistance provided under this section and assistance provided under
sections 4 and 11, beginning with fiscal year 2008, and for each
subsequent fiscal year, the Secretary shall use \$50,000,000 of funds
made available under section 3 of this Act to provide fruits and
vegetables to States participating in the school lunch program under
this Act."

"(2) [amount of assistance]{.smallcaps}.-The total commodity benefits
provided to a State under paragraph (1) shall be calculated based on the
number of lunches served in the second preceding school year and shall
be in addition to the value of commodity benefits offered to each State
under subsection (b).

"(3) [Department of Defense]{.smallcaps}.- The Secretary may make a
portion of the amount specified in paragraph (1) available to the
Department of Defense for the procurement of fruits and vegetables.".

**SEC. 4033. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES**.

Section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1755) (as amended in section 4034) is amended by inserting at the end a
new subsection (g):

"(g) [Survey Required Every Five Years]{.smallcaps}- For fiscal year
2008, and for every fifth fiscal year thereafter, the Secretary of
Agriculture shall initiate a nationally representative study of the
foods purchased during the school year by school authorities
participating in the National School Lunch Program.

> "(1) [report required]{.smallcaps}- Upon completion of the study, the
> Secretary shall submit to Congress a report describing the results of
> the study under this subsection.

"(2) [funding]{.smallcaps}-For fiscal year 2008 and every fifth fiscal
year thereafter, the Secretary

shall use not more than \$3,000,000 of funds made available under
section 3 to carry out

the study required by this subsection.".