SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Food Stamp Flexibility Act of 
1995''.

SEC. 2. FOOD STAMP BLOCK GRANT PROGRAM.

    The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended to 
read as follows:

                              ``definition

    ``Section 1. This Act may be cited as the `Food Stamp Act'.

                              ``definition

    ``Sec. 2. In this Act, the term `State' means each of the several 
States, the District of Columbia, the Commonwealth of Puerto Rico, 
Guam, the Virgin Islands of the United States, and the reservations of 
an Indian tribe whose tribal organization meets the requirements of 
this Act for participation as a State agency.

                       ``purpose; implementation

    ``Sec. 3. (a) Purpose.--The purpose of this Act is to strengthen 
individuals by helping them move from dependence on government benefits 
to economic independence by consolidating Federal assistance to the 
States for food assistance to the needy into a single grant for such 
purpose, thereby giving States maximum flexibility to--
            ``(1) require beneficiaries who are parents to ensure that 
        their school-age children attend school;
            ``(2) require minors who are beneficiaries to attend 
        school;
            ``(3) require parent beneficiaries to ensure that their 
        children receive the full complement of childhood 
        immunizations;
            ``(4) limit the amount of time beneficiaries may receive 
        assistance;
            ``(5) require beneficiaries not to use illegal drugs or 
        abuse other drugs;
            ``(6) deny assistance to illegal aliens;
            ``(7) require individuals who sponsor the residency of 
        legal aliens to support those they sponsor; and
            ``(8) involve religious and charitable organizations, 
        voluntary associations, civic groups, community organizations, 
        nonprofit entities, benevolent and fraternal orders, 
        philanthropic entities, and other groups in the private sector, 
        as appropriate, in the provision of services and assistance to 
        needy individuals with the funding States receive under this 
        Act.
    ``(b) Implementation.--This purpose shall be implemented in 
accordance with conditions in each State and as determined by State 
law.
                          ``payment to states

    ``Sec. 4. (a) State Mandates for Work by Beneficiaries.--
            ``(1) Requirements for work.--As a condition of receiving a 
        payment of funds under this Act, a State shall require each 
        adult member of any family receiving assistance from a State 
        under this Act to work, as defined by State law. Any individual 
        who fails or refuses to work, and any member of such 
        individual's family residing with such individual, shall not be 
        eligible for assistance from funds provided to the State under 
        this Act.
            ``(2) Exception.--Paragraph (1) shall not apply in the case 
        of an individual who is over sixty-two years of age.
    ``(b) Amount.--
            ``(1) In general.--Each State shall, subject to the 
        requirements of this Act, be entitled to receive quarter 
        payments for fiscal years 1996, 1997, 1998, 1999, and 2000 in 
        an amount equal to 25 percent of the annual amount determined 
        under paragraph (2) for such fiscal year for carrying out the 
        purpose described in section 3.
            ``(2) Annual amount.--The annual amount determined under 
        this paragraph is equal to--
                    ``(A) in fiscal year 1996, 100 percent of the 
                amount received by a State in fiscal year 1994, or 100 
                percent of the average of amounts received by the State 
                in fiscal years 1992, 1993, and 1994, whichever is 
                greater, under this Act; and
                    ``(B) in each fiscal year thereafter, 100 percent 
                of the amount received by a State in the preceding 
                fiscal year under this Act (as in effect in such 
                preceding fiscal year),
    ``(c) Funding Requirements.--The Secretary of the Treasury shall 
make quarterly payments described in subsection (b)(1) directly to each 
State in accordance with section 6503 of title 31, United States Code.
    ``(d) Expenditure of Funds; Rainy Day Fund.--Amounts received by a 
State under this Act for any fiscal year shall be expended by the State 
in such fiscal year or in the succeeding fiscal year, except for such 
amounts as the State deems necessary to set aside in a separate account 
to provide, without fiscal limitation, for unexpected levels of 
assistance during periods of high unemployment or other events which 
cause an unexpected increase in the need for food assistance to needy 
individuals. Any amounts remaining in such segregated accounts after 
fiscal year 2000 shall be expended by a State for the purpose described 
in section 3 of this Act as in effect in fiscal year 2000.
    ``(e) Prohibition on Use of Funds.--Except as provided in 
subsection (f), a State to which a payment is made under this section 
may not use any part of such payment to provide medical services.
    ``(f) Authority To Use Portion of Grant for Other Purposes.--
            ``(1) In general.--A State may use not more than 30 percent 
        of the annual amount paid to the State under this Act for a 
        fiscal year to carry out a State program pursuant to any or all 
        of the following provisions of law:
                    ``(A) Part A of title IV of the Social Security 
                Act.
                    ``(B) Title XVI of such Act.
                    ``(C) Title XIX of such Act.
            ``(2) Applicable rules.--Any amount paid to the State under 
        this Act that is used to carry out a State program pursuant to 
        a provision of law specified in paragraph (1) shall not be 
        subject to the requirements of this Act, but shall be subject 
        to the requirements that apply to Federal funds provided 
        directly under the provision of law to carry out the program.
               ``administrative and fiscal accountability

    ``Sec. 5. (a) Audits; Reimbursement.--
            ``(1) Audits.--
                    ``(A) In general.--A State shall, not less than 
                annually, audit the State expenditures from amounts 
                received under this Act. Such audit shall--
                            ``(i) determine the extent to which such 
                        expenditures were or were not expended in 
                        accordance with this Act; and
                            ``(ii) be conducted by an approved entity 
                        (as defined in subparagraph (B)) in accordance 
                        with generally accepted auditing principles.
                    ``(B) Approved entity.--For purposes of 
                subparagraphs (A), the term `approved entity' means an 
                entity that is--
                            ``(i) approved by the Secretary of the 
                        Treasury.
                            ``(ii) approved by the chief executive 
                        officer of the State; and
                            ``(iii) independent of any agency 
                        administering activities funded under this Act.
            ``(2) Reimbursement.--
                    ``(A) In general.--Not later than 30 days following 
                the completion of an audit under this subsection, a 
                State shall submit a copy of the audit to the State 
                legislature and to the Secretary of the Treasury.
                    ``(B) Repayment.--Each State shall pay to the 
                United States amounts ultimately found by the approved 
                entity under paragraph (1)(A) not to have been expended 
                in accordance with this Act plus 10 percent of such 
                amount as a penalty, or the Secretary of the Treasury 
                may offset such amounts plus the 10 percent penalty 
                against any other amount in any other year that the 
                State may be entitled to receive under this Act.
    ``(b) Additional Accounting Requirement.--The provisions of chapter 
75 of title 31, United States Code, shall apply to the audit 
requirements of this section.
    ``(c) Reporting Requirements; Form, Contents.--
            ``(1) Annual reports.--A State shall prepare comprehensive 
        annual reports on the activities carried out with amounts 
        received by the State under this Act.
            ``(2) Content.--Reports prepared under this section--
                    ``(A) shall be for the most recently completed 
                fiscal year;
                    ``(B) shall be in accordance with generally 
                accepted accounting principles, including the 
                provisions of chapter 75 of title 31, United States 
                Code;
                    ``(C) shall include the results of the most recent 
                audit conducted in accordance with the requirements of 
                subsection (a) of this section; and
                    ``(D) shall be in such form and contain such other 
                information as the State deems necessary--
                            ``(i) to provide an accurate description of 
                        such activities; and
                            ``(ii) to secure a complete record of the 
                        purposes for which amounts were expended in 
                        accordance with this Act.
            ``(3) Copies.--A State shall make copies of the reports 
        required under this section available for public inspection 
        within the State. Copies also shall be provided upon request to 
        any interested public agency, and each such agency may provide 
        its views on such reports to the Congress.
    ``(d) Administrative Supervision.--
            ``(1) Role of the secretary of the treasury.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall supervise the amounts received under this Act in 
                accordance with subparagraph (B).
                    ``(B) Limited supervision.--The supervision by the 
                Secretary of the Treasury shall be limited to--
                            ``(i) making quarterly payments to the 
                        States in accordance with section 4(c);
                            ``(ii) approving the entities referred to 
                        in subsection (a)(1)(B); and
                            ``(iii) withholding payment to a State 
                        based on the findings of such an entity in 
                        accordance with subsection (a)(2)(B).
            ``(2) Other federal supervision.--No administrative officer 
        or agency of the United States, other than the Secretary of the 
        Treasury and, as provided for in section 6, the Attorney 
        General, shall supervise the amounts received by the States 
        under this Act or the use of such amounts by the States.
    ``(e) Limited Federal Oversight.--With the exception of the 
Department of the Treasury as provided for in this section and section 
6 of this Act, no Federal department or agency may promulgate 
regulations or issue rules regarding the purpose of this Act.

                     ``nondiscrimination provisions

    ``Sec. 6. (a) No Discrimination Against Individuals.--No individual 
shall be excluded from participation in, denied the benefits of, or 
subjected to discrimination under any program or activity funded in 
whole or in part with amounts received under this Act on the basis of 
such individual's--
            ``(1) disability under section 504 of the Rehabilitation 
        Act of 1973 (29 U.S.C. 794);
            ``(2) sex under title IX of the Education Amendments of 
        1972 (20 U.S.C. 1681 et seq.); or
            ``(3) race, color, or national origin under title VI of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
    ``(b) Compliance.--If the Secretary of the Treasury determines that 
a State, or an entity that has received funds from amounts received by 
the State under this Act, has failed to comply with a provision of law 
referred to in subsection (a), except as provided for in section 7 of 
this Act, the Secretary of the Treasury shall notify the chief 
executive officer of the State and shall request the officer to secure 
compliance with such provision of law. If, not later than 60 days after 
receiving such notification, the chief executive officer fails or 
refuses to secure compliance, the Secretary of the Treasury may--
            ``(1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            ``(2) exercise the powers and functions provided under 
        title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
        seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 
        1681 et seq.); or section 505 of the Rehabilitation Act of 1973 
        (29 U.S.C. 794a), (as applicable); or
            ``(3) take such other action as may be provided by law.
    ``(c) Authority of Attorney General; Civil Actions.--When a matter 
is referred to the Attorney General pursuant to subsection (b)(1), or 
if the Attorney General has reason to believe that an entity is engaged 
in a pattern or practice in violation of a provision of law referred to 
in subsection (a), the Attorney General may bring a civil action in an 
appropriate district court of the United States for such relief as may 
be appropriate, including injunctive relief.
    ``nondiscrimination and institutional safeguards for religious 
                               providers

    ``Sec. 7. (a) Purpose.--The purpose of this section is to allow the 
participation of religious and charitable organizations as providers of 
assistance funded under this Act, on the same basis as any other 
provider, without impairing or diminishing the religious character or 
freedom of such organizations.
    ``(b) Nondiscrimination.--Religious organizations are eligible as 
providers of food assistance to needy individuals as provided for under 
this Act. Neither the Federal Government nor a State receiving funds 
under this Act shall discriminate against an organization which is or 
applies to be a provider of assistance on the basis that the 
organization has a religious mission or purpose.
    ``(c) Religious Character and Freedom.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any religious organization participating as a provider of 
        assistance funded under this Act shall retain its independence 
        from Federal, State, and local governments, including such 
        organization's control over the definition, development, 
        practice, and expression of its religious beliefs. Such an 
        organization may select, employ, promote, discipline, and 
        dismiss its clerics and other ecclesiastics, directors, 
        officers, employees, and volunteers on the basis of religion, a 
        religious belief, or a religious practice. However, a religious 
        organization shall not deny needy individuals the benefits of 
        any assistance funded under this Act on the basis of religion, 
        a religious belief, or refusal to participate in a religious 
        practice.
            ``(2) Additional safeguards.--Neither the Federal 
        Government nor a State shall require a religious provider of 
        assistance to--
                    ``(A) alter its form of internal governance, or 
                form a separate, nonprofit corporation to receive and 
                administer the assistance funded under this Act; or
                    ``(B) alter real estate or facilities used to 
                provide such assistance, including but not limited to 
                the removal of religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to be a provider of food assistance 
        funded under this Act.
            ``(3) Fiscal accountability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any religious organization providing 
                assistance funded under this Act, shall be subject to 
                the same regulations as other providers to account in 
                accord with generally accepted auditing principles for 
                the use of such funds provided under this Act.
                    ``(B) Limited audit.--Religious organizations may 
                segregate Federal funds provided under this Act into 
                separate accounts, and then only the financial 
                assistance provided with those funds shall be subject 
                to audit.
    ``(d) Compliance.--A religious organization which has its rights 
under this section violated may enforce its claim by asserting a civil 
action for such relief as may be appropriate, including injunctive 
relief or damages, in an appropriate district court of the United 
States against the entity or agency that commits such violation.
    ``(e) Rights of Beneficiaries of Assistance.--
            ``(1) In general.--If a beneficiary has a bona fide 
        objection to the religious character of the organization or 
        institution from which the beneficiary is receiving assistance 
        funded under this Act, each State shall provide such 
        beneficiary a certificate, redeemable with any other provider 
        of assistance funded under this Act, for services the value of 
        which is no less than the value of the funding received by the 
        religious provider from a State to provide assistance funded 
        under this Act for such individual.
            ``(2) Prohibition on providing cash in exchange for 
        certificates.--No provider of assistance funded under this Act 
        shall provide a beneficiary a cash amount in exchange for a 
        certificate provided for under paragraph (1).

SEC. 3. CONFORMING AMENDMENTS TO THE BUDGET ACT.

    Section 255(h) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 905(h)) is amended by striking ``Food stamp 
programs (12-3505-0-1-605 and 12-3550-0-1-605);'' and inserting ``Food 
Stamp Act;''.

SEC. 4. EFFECTIVE DATE.

    The amendment made by this Act shall take effect on October 1, 
1995.
Food Stamp Flexibility Act of 1995 - Amends the Food Stamp Act of 1977 to restructure the existing food stamp program as a block grant program with a State mandate for work by beneficiaries.
Food Stamp Flexibility Act of 1995