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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1135 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1135

  To improve the Commodity Distribution Programs of the Department of 
  Agriculture, to Reform and Simplify the Food Stamp Program, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

 Mr. Roberts introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
  To improve the Commodity Distribution Programs of the Department of 
  Agriculture, to Reform and Simplify the Food Stamp Program, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This title may be cited as the ``Food Stamp Program and Commodity 
Distribution Act''.

                    TITLE I--COMMODITY DISTRIBUTION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Commodity Distribution Act of 
1995''.

SEC. 102. AVAILABILITY OF COMMODITIES.

    (a) Notwithstanding any other provision of law, the Secretary of 
Agriculture (hereinafter in this subtitle referred to as the 
``Secretary'') is authorized during fiscal years 1996 through 2000 to 
purchase a variety of nutritious and useful commodities and distribute 
such commodities to the States for distribution in accordance with this 
title.
    (b) In addition to the commodities described in subsection (a), the 
Secretary may expend funds made available to carry out the section 32 
of the Act of August 24, 1935 (7 U.S.C. 612c), which are not expended 
or needed to carry out such sections, to purchase, process, and 
distribute commodities of the types customarily purchased under such 
section to the States for distribution in accordance to this title.
    (c) In addition to the commodities described in subsections (a) and 
(b), agricultural commodities and the products thereof made available 
under clause (2) of the second sentence of section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c), may be made available by the Secretary 
to the States for distribution in accordance with this title.
    (d) In addition to the commodities described in subsections (a), 
(b), and (c), commodities acquired by the Commodity Credit Corporation 
that the Secretary determines, in the discretion of the Secretary, are 
in excess of quantities need to--
            (1) carry out other domestic donation programs;
            (2) meet other domestic obligations;
            (3) meet international market development and food aid 
        commitments, and
            (4) carry out the farm price and income stabilization 
        purposes of the Agricultural Adjustment Act of 1938, the 
        Agricultural Act of 1949, and the Commodity Credit Corporation 
        Charter Act;
shall be made available by the Secretary, without charge or credit for 
such commodities, to the States for distribution in accordance with 
this title.
    (e) During each fiscal year, the types, varieties and amounts of 
commodities to be purchased under this title shall be determined by the 
Secretary. In purchasing such commodities, except those commodities 
purchased pursuant to section 110, the Secretary shall, to the extent 
practicable and appropriate, make purchases based on--
            (1) agricultural market conditions; and
            (2) the preferences and needs of States and distributing 
        agencies.

SEC. 103. STATE, LOCAL AND PRIVATE SUPPLEMENTATION OF COMMODITIES.

    (a) The Secretary shall establish procedures under which State and 
local agencies, recipient agencies, or any other entity or person may 
supplement the commodities distributed under this subtitle for use by 
recipient agencies with nutritious and wholesome commodities that such 
entities or persons donate for distribution, in all or part of the 
State, in addition to the commodities otherwise made available under 
this title.
    (b) States and eligible recipient agencies may use--
            (1) the funds appropriated for administrative cost under 
        section 109(b);
            (2) equipment, structures, vehicles, and all other 
        facilities involved in the storage, handling, or distribution 
        of commodities made available under this title; and
            (3) the personnel, both paid or volunteer, involved in such 
        storage, handling, or distribution;
to store, handle or distribute commodities donated for use under 
subsection (a).
    (c) States and recipient agencies shall continue, to the maximum 
extent practical, to use volunteer workers, and commodities and other 
foodstuffs donated by charitable and other organizations, in the 
distribution of commodities under this title.

SEC. 104. STATE PLAN.

    (a) Each State seeking to receive commodities under this title 
shall submit a plan of operation and administration every four years to 
the Secretary for approval. The plan may be amended at any time, with 
the approval of the Secretary.
    (b) The State plan, at a minimum, shall--
            (1) designate the State agency responsible for distributing 
        the commodities received under this title;
            (2) set forth a plan of operation and administration to 
        expeditiously distribute commodities under this title in 
        quantities requested to eligible recipient agencies in 
        accordance with sections 106 and 110;
            (3) set forth the standards of eligibility for recipient 
        agencies; and
            (4) set forth the standards of eligibility for individual 
        or household recipients of commodities, which at minimum shall 
        require--
                    (A) individuals or households to be comprised of 
                needy persons; and
                    (B) individual or household members to be residing 
                in the geographic location served by the distributing 
                agency at the time of application for assistance.
    (c) The Secretary shall encourage each State receiving commodities 
under this title to establish a State advisory board consisting of 
representatives of all interested entities, both public and private, in 
the distribution of commodities received under this title in the State.
    (d) Each State agency receiving commodities under this title may--
            (1) enter into cooperative agreements with State agencies 
        of other States to jointly provide commodities received under 
        this subtitle to eligible recipient agencies that serve needy 
        persons in a single geographical area which includes such 
        States; or
            (2) transfer commodities received under this title to any 
        such eligible recipient agency in the other State under such 
        agreement.

SEC. 105. ALLOCATION OF COMMODITIES TO STATES.

    (a) In each fiscal year, except for those commodities purchased 
under section 110, the Secretary shall allocate as follows:
            (1) 60 percent of the such total value of commodities shall 
        be allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 60 percent of 
        such total value as the number of persons in households within 
        the State having incomes below the poverty line bears to the 
        total number of persons in households within all States having 
        incomes below such poverty line. Each State shall receive the 
        value of commodities allocated under this paragraph.
            (2) 40 percent of such total value of commodities shall be 
        allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 40 percent of 
        such total value as the average monthly number of unemployed 
        persons within the State bears to the average monthly number of 
        unemployed persons within all States during the same fiscal 
        year. Each State shall receive the value of commodities 
        allocated to the State under this paragraph.
    (b)(1) The Secretary shall notify each State of the amount of 
commodities that such State is allotted to receive under subsection (a) 
or this subsection, if applicable. Each State shall promptly notify the 
Secretary if such State determines that it will not accept any or all 
of the commodities made available under such allocation. On such a 
notification by a State, the Secretary shall reallocate and distribute 
such commodities as the Secretary deems appropriate and equitable. The 
Secretary shall further establish procedures to permit States to 
decline to receive portions of such allocation during each fiscal year 
as the State determines is appropriate and the Secretary shall 
reallocate and distribute such allocation as the Secretary deems 
appropriate and equitable.
    (2) In the event of any drought, flood, hurricane, or other natural 
disaster affecting substantial numbers of persons in a State, county, 
or parish, the Secretary may request that States unaffected by such a 
disaster consider assisting affected States by allowing the Secretary 
to reallocate commodities from such unaffected State to States 
containing areas adversely affected by the disaster.
    (c) Purchases and distributions of commodities under this title 
shall be made by the Secretary at such times and under such conditions 
as the Secretary determines appropriate within each fiscal year. All 
commodities so purchased and distributed for each such fiscal year 
shall be delivered at reasonable intervals to States based on the 
allocations and reallocations made under subsections (a) and (b), and 
purchases made to carry out section 110, before the end of such fiscal 
year.

SEC. 106. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF COMMODITIES.

    (a) In distributing commodities under this title, excluding those 
commodities distributed in accordance with section 110, the State 
agency, under procedures determined by the State agency, shall offer, 
or otherwise make available, its full allocation of commodities for 
distribution to emergency feeding organizations.
    (b) If the State agency determines that the State will not exhaust 
its allocation of commodities under this title through distribution to 
organizations referred to in subsection (a), its remaining allocation 
of commodities under this title shall be distributed to charitable 
institutions described in section 113(3) not receiving commodities 
under subsection (a).
    (c) If the State agency determines that the State will not exhaust 
its allocation of commodities under this title through distribution to 
organizations referred to in subsections (a) and (b), its remaining 
allocation of commodities under this title shall be distributed to any 
eligible recipient agency not receiving commodities under subsections 
(a) and (b).

SEC. 107. INITIAL PROCESSING COSTS.

    The Secretary may use funds of the Commodity Credit Corporation or 
funds available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), to pay the costs of initial processing and packaging of 
commodities to be distributed under the program established under this 
title into forms and in quantities suitable, as determined by the 
Secretary, for use by the individual households or eligible recipient 
agencies, as applicable. The Secretary may pay such costs in the form 
of Corporation-owned commodities equal in value to such costs. The 
Secretary shall ensure that any such payments in kind will not displace 
commercial sales of such commodities.

SEC. 108. ASSURANCES; ANTICIPATED USE.

    (a) The Secretary shall take such precautions as the Secretary 
deems necessary to ensure that commodities made available under this 
title will not displace commercial sales of such commodities or the 
products thereof. The Secretary shall submit to Congress by December 
31, 1997, and not less than every two years thereafter, a report as to 
whether and to what extent such displacements or substitutions are 
occurring.
    (b) The Secretary shall determine that commodities provided under 
this title shall be purchased and distributed only in quantities that 
can be consumed without waste. No eligible recipient agency may receive 
commodities under this title in excess of anticipated use, based on 
inventory records and controls, or in excess of its ability to accept 
and store such commodities.

SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    (a) Purchase of Commodities.--To carry out this title, there are 
authorized to be appropriated $260,000,000 for each of the fiscal years 
1996 through 2000 to purchase, process and distribute commodities to 
the States in accordance with this title.
    (b) Administrative Funds.--(1) There are authorized to be 
appropriated $40,000,000 for each of the fiscal years 1996 through 2000 
for the Secretary to make available to the States for State and local 
payments for costs associated with the distribution of commodities by 
eligible recipient agencies under this title, excluding costs 
associated with the distribution of those commodities distributed under 
section 110(b). Funds appropriated under this paragraph for any fiscal 
year shall be allocated to the States on an advance basis dividing such 
funds among the States in the same proportions as the commodities 
distributed under this title for such fiscal year are allocated among 
the States. If a State agency is unable to use all of the funds so 
allocated to it, the Secretary shall reallocate such unused funds among 
the other States.
    (2)(A) Each State shall make available in each fiscal year to 
eligible recipient agencies in the State not less than 40 percent of 
the funds received by the State under paragraph (1) for such fiscal 
year, as necessary to pay for, or provide advance payments to cover, 
the direct expenses of eligible recipient agencies for distributing 
commodities to needy persons, but only to the extent such expenses are 
actually so incurred by such recipient agencies.
    (B) As used in this paragraph, the term ``direct expenses'' 
includes--
            (i) costs of transporting, storing, handling, repackaging, 
        processing, and distributing commodities incurred after such 
        commodities are received by eligible recipient agencies;
            (ii) costs associated with determinations of eligibility, 
        verification, and documentation;
            (iii) costs of providing information to persons receiving 
        commodities under this title concerning the appropriate storage 
        and preparation of such commodities; and
            (iv) costs of recordkeeping, auditing, and other 
        administrative procedures required for participation in the 
        program under this title.
    (C) If a State makes a payment, using State funds, to cover direct 
expenses of eligible recipient agencies, the amount of such payment 
shall be counted toward the amount a State must make available for 
direct expenses of recipient agencies under this paragraph.
    (3) States to which funds are allocated for a fiscal year under 
this subsection shall submit financial reports to the Secretary, on a 
regular basis, as to the use of such funds. No such funds may be used 
by States or eligible recipient agencies for costs other than those 
involved in covering the expenses related to the distribution of 
commodities by eligible recipient agencies.
    (4)(A) Except as provided in subparagraph (B), to be eligible to 
receive funds under this subsection, a State shall provide in cash or 
in kind (according to procedures approved by the Secretary for 
certifying these in-kind contributions) from non-Federal sources a 
contribution equal to the difference between--
            (i) the amount of such funds so received; and
            (ii) any part of the amount allocated to the State and paid 
        by the State--
                    (I) to eligible recipient agencies; or
                    (II) for the direct expenses of such recipient 
                agencies;
        for use in carrying out this title.
    (B) Funds allocated to a State under this section may, upon State 
request, be allocated before States satisfy the matching requirement 
specified in subparagraph (A), based on the estimated contribution 
required. The Secretary shall periodically reconcile estimated and 
actual contributions and adjust allocations to the State to correct for 
overpayments and underpayments.
    (C) Any funds distributed for administrative costs under section 
110(b) shall not be covered by this paragraph.
    (5) States may not charge for commodities made available to 
eligible recipient agencies, and may not pass on to such recipient 
agencies the cost of any matching requirements, under this title.
    (c) The value of the commodities made available under subsection 
(c) and (d) of section 102, and the funds of the Corporation used to 
pay the costs of initial processing, packaging (including forms 
suitable for home use), and delivering commodities to the States shall 
not be charged against appropriations authorized by this section.

SEC. 110. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) From the funds appropriated under section 109(a), $94,500,000 
shall be used for each fiscal year to purchase and distribute 
commodities to supplemental feeding programs serving women, infants, 
and children or elderly individuals (hereinafter in this section 
referred to as the ``commodity supplemental food program''), or serving 
both groups wherever located.
    (b) Not more than 20 percent of the funds made available under 
subsection (a) shall be made available to the States for State and 
local payments of administrative costs associated with the distribution 
of commodities by eligible recipient agencies under this section. 
Administrative costs for the purposes of the commodity supplemental 
food program shall include, but not be limited to, expenses for 
information and referral, operation, monitoring, nutrition education, 
start-up costs, and general administration, including staff, warehouse 
and transportation personnel, insurance, and administration of the 
State or local office.
    (c)(1) During each fiscal year the commodity supplemental food 
program is in operation, the types, varieties, and amounts of 
commodities to be purchased under this section shall be determined by 
the Secretary, but, if the Secretary proposes to make any significant 
changes in the types, varieties or amounts from those that were 
available or were planned at the beginning of the fiscal year the 
Secretary shall report such changes before implementation to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation shall, to the extent that the Commodity Credit 
Corporation inventory levels permit, provide not less than 9,000,000 
pounds of cheese and not less than 4,000,000 pounds of nonfat dry milk 
in each of the fiscal years 1996 through 2000 to the Secretary. The 
Secretary shall use such amounts of cheese and nonfat dry milk to carry 
out the commodity supplemental food program before the end of the 
fiscal year in which such amounts are provided.
    (d) The Secretary shall, in each fiscal year, approve applications 
of additional sites for the program, including sites that serve only 
elderly persons, in areas in which the program currently does not 
operate, to the full extent that applications can be approved within 
the appropriations available for the program for the fiscal year and 
without reducing actual participation levels (including participation 
of elderly persons under subsection (e)) in areas in which the program 
is in effect.
    (e) If a local agency that administers the commodity supplemental 
food program determines that the amount of funds made available to the 
agency to carry out this section exceeds the amount of funds necessary 
to provide assistance under such program to women, infants, and 
children, the agency, with the approval of the Secretary, may permit 
low-income elderly persons (as defined by the Secretary) to participate 
in and be served by such program.
    (f)(1) If it is necessary for the Secretary to pay a significantly 
higher than expected price for one or more types of commodities 
purchased under this section, the Secretary shall promptly determine 
whether the price is likely to cause the number of persons that can be 
served in the program in a fiscal year to decline.
    (2) If the Secretary determines that such a decline would occur, 
the Secretary shall promptly notify the State agencies charged with 
operating the program of the decline and shall ensure that a State 
agency notify all local agencies operating the program in the State of 
the decline.
    (g) Commodities distributed to States pursuant to this section 
shall not be considered in determining the commodity allocation to each 
State or priority of distribution under sections 105 and 106.

SEC. 111. COMMODITIES NOT INCOME.

    Notwithstanding any other provision of law, commodities distributed 
under this title shall not be considered income or resources for any 
purposes under any Federal, State, or local law.

SEC. 112. PROHIBITION AGAINST CERTAIN STATE CHARGES.

    Whenever a commodity is made available without charge or credit 
under any nutrition program administered by the Secretary for 
distribution within the States to eligible recipient agencies, the 
State may not charge recipient agencies any amount that is in excess of 
the State's direct costs of storing, and transporting to recipient 
agencies the commodities minus any amount the Secretary provides the 
State for the costs of storing and transporting such commodities.

SEC. 113. DEFINITIONS.

    As used in this title:
            (1) The term ``average monthly number of unemployed 
        persons'' means the average monthly number of unemployed 
        persons within a State in the most recent fiscal year for which 
        such information is available as determined by the Bureau of 
        Labor Statistics of the Department of Labor.
            (2) The term ``elderly persons'' means individuals sixty 
        years of age or older.
            (3) The term ``eligible recipient agency'' means a public 
        or nonprofit organization that administers--
                    (A) an institution providing commodities to 
                supplemental feeding programs serving women, infants, 
                and children or serving elderly persons, or serving 
                both groups;
                    (B) an emergency feeding organization;
                    (C) a charitable institution (including hospitals 
                and retirement homes and excluding penal institutions) 
                to the extent that such institution serves needy 
                persons;
                    (D) a summer camp for children, or a child 
                nutrition program providing food service;
                    (E) a nutrition project operating under the Older 
                Americans Act of 1965, including such projects that 
                operate a congregate nutrition site and project that 
                provides home-delivered meals; or
                    (F) a disaster relief program;
        and that have been designated by the appropriate State agency, 
        or by the Secretary, and approved by the Secretary for 
        participation in the program established under this title.
    (4) The term ``emergency feeding organization'' means a public or 
nonprofit organization that administers activities and projects 
(including the activities and projects of a charitable institution, a 
food bank, a food pantry, a hunger relief center, a soup kitchen, or a 
similar public or private nonprofit eligible recipient agency) 
providing nutrition assistance to relieve situations of emergency and 
distress through the provision of food to needy persons, including low-
income and unemployed persons.
            (5) The term ``food bank'' means a public and charitable 
        institution that maintains an established operation involving 
        the provision of food or edible commodities, or the products 
        thereof, to food pantries, soup kitchens, hunger relief 
        centers, or other food or feeding centers that, as an integral 
        part of their normal activities, provide meals or food to feed 
        persons on a regular basis.
            (6) The term ``food pantry'' means a public or private 
        nonprofit organization that distributes food to low-income and 
        unemployed households, including food from sources other than 
        the Department of Agriculture, to relieve situations of 
        emergency and distress.
            (7) The term ``needy persons'' means--
                    (A) individuals who have low incomes or who are 
                unemployed, as determined by the State (in no event 
                shall the income of such individual or household exceed 
                185 percent of the poverty line);
                    (B) households certified as eligible to participate 
                in the food stamp program under the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.); or
                    (C) individuals or households participating in any 
                other Federal, or federally assisted, means-tested 
                program.
            (8) The term ``poverty line'' has the same meaning given 
        such term in section 673(2) of the Community Services Block 
        Grant Act (42 U.S.C. 9902(2)).
            (9) The term ``soup kitchen'' means a public and charitable 
        institution that, as integral part of its normal activities, 
        maintains an established feeding operation to provide food to 
        needy homeless persons on a regular basis.

SEC. 114. REGULATIONS.

    (a) The Secretary shall issue regulations with one hundred and 
twenty days to implement this title.
    (b) In administering this subtitle, the Secretary shall minimize, 
to the maximum extent practicable, the regulatory, recordkeeping, and 
paperwork requirements imposed on eligible recipient agencies.
    (c) The Secretary shall as early as feasible but not later than the 
beginning of each fiscal year, publish in the Federal Register a 
nonbinding estimate of the types and quantities of commodities that the 
Secretary anticipates are likely to be made available under the 
commodity distribution program under this title during the fiscal year.
    (d) The regulations issued by the Secretary under this section 
shall include provisions that set standards with respect to liability 
for commodity losses for the commodities distributed under this title 
in situations in which there is no evidence of negligence or fraud, and 
conditions for payment to cover such losses. Such provisions shall take 
into consideration the special needs and circumstances of eligible 
recipient agencies.

SEC. 115. FINALITY OF DETERMINATIONS.

    Determinations made by the Secretary under this title and the facts 
constituting the basis for any donation of commodities under this 
title, or the amount thereof, when officially determined in conformity 
with the applicable regulations prescribed by the Secretary, shall be 
final and conclusive and shall not be reviewable by any other officer 
or agency of the Government.

SEC. 116. RELATIONSHIP TO OTHER PROGRAMS.

    (a) Section 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 2013(b)) 
shall not apply with respect to the distribution of commodities under 
this title.
    (b) Except as otherwise provided in section 107, none of the 
commodities distributed under this title shall be sold or otherwise 
disposed of in commercial channels in any form.

SEC. 117. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

    (a) The Secretary, or a designee of the Secretary, shall have the 
authority to--
            (1) determine the amount of, settle, and adjust any claim 
        arising under this title; and
            (2) waive such a claim if the Secretary determines that to 
        do so will serve the purposes of this title.
    (b) Nothing contained in this section shall be construed to 
diminish the authority of the Attorney General of the United States 
under section 516 of title 28, United States Code, to conduct 
litigation on behalf of the United States.

SEC. 118. REPEALERS; AMENDMENTS.

    (a) The Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note) 
is repealed.
    (b) Amendments.--
            (1) The Hunger Prevention Act of 1988 (7 U.S.C. 612c note) 
        is amended--
                    (A) by striking section 110; and
                    (B) by striking section 502.
            (2) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (7 U.S.C. 612c note) is amended by striking 
        section 4.
            (3) The Charitable Assistance and Food Bank Act of 1987 (7 
        U.S.C. 612c note) is amended by striking section 3.
            (4) The Food Security Act of 1985 (7 U.S.C. 612c note) is 
        amended--
                    (A) by striking section 1562(a) and section 1571; 
                and
                    (B) in section 1562(d), by striking ``section 4 of 
                the Agricultural and Consumer Protection Act of 1973'' 
                and inserting ``section 110 of the American Commodity 
                Distribution Act of 1995''.
            (5) The Agricultural and Consumer Protection Act of 1973 (7 
        U.S.C. 612c note) is amended--
                    (A) in section 4(a), by striking ``institutions 
                (including hospitals and facilities caring for needy 
                infants and children), supplemental feeding programs 
                serving women, infants and children or elderly persons, 
                or both, wherever located, disaster areas, summer camps 
                for children,'';
                    (B) in subsection 4(c), by striking ``the Emergency 
                Food Assistance Act of 1983'' and inserting ``the 
                Commodity Distribution Act of 1995''; and
                    (C) by striking section 5.
            (6) The Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 612c note) is amended by striking section 
        1773(f).

       TITLE II--SIMPLIFICATION AND REFORM OF FOOD STAMP PROGRAM

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Food Stamp Simplification and 
Reform Act of 1995''.

  Subtitle A--Simplified Food Stamp Program and State Assistance for 
                             Needy Families

SEC. 202. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP PROGRAM AND STATE 
              ASSISTANCE FOR NEEDY FAMILIES PROGRAM.

    Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C. 2013(a)) is 
amended--
            (1) in the first sentence, by striking, by striking 
        ``Act,'' and inserting ``Act--'';
            (2) beginning with ``the Secretary is authorized'', 
        redesignating it as paragraph (1); and
            (3) by adding the following new paragraph:
            ``(2) At the request of the State agency, a State may 
        operate a program, within the State or any political 
        subdivisions within the State, in which households with one or 
        more members receive regular cash benefits under the program 
        established by the State under the Temporary Assistance for 
        needy Families block grant may, as provided in section 24, may 
        be issued monthly allotments following the rules and procedures 
        established by the State under the Temporary Assistance for 
        Needy Families block grant or this Act.''.

SEC. 203. SIMPLIFIED FOOD STAMP PROGRAM.

    (a) The Act (7 U.S.C. 2011 et seq.) is amended by adding the 
following new section:

``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) Where a State elects to operate a program under section 
4(a)(2) within the State or any political subdivisions within the 
State, except as provided in subsection (h), households in which all 
members receive regular cash benefits under the program established by 
the State under the Temporary Assistance for Needy Families block grant 
shall be automatically eligible for the food stamp program and benefits 
shall be determined under the rules and procedures established by the 
State or political subdivision under the Temporary Assistance for Needy 
Families block grant or this Act, subject to subsection (h).
    ``(b) In approving a State plan to carry out such program, the 
Secretary shall certify that the average food stamp benefit level per 
household participating in the program under this section for the State 
or political subdivision in which such program is in operation is not 
expected to exceed the average level of food stamp benefits per 
household that received benefits under part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) in such area in the preceding 
fiscal year, adjusted for any changes in the thrifty food plan under 
section 3(o). The Secretary shall compute the permissible average level 
of benefits per household each year for each State or political 
subdivision in which such program is in operation and may require a 
State to report any information necessary to make such computation.
    ``(c) Where average allotments provided by the State under such 
program exceed the permissible level of benefits per household for the 
State or political subdivision in which the program is in operation, 
the State or political subdivision shall repay the Secretary the value 
of the allotments in excess of the average level of benefits per 
household in the State or political subdivision.
    ``(d) The administrative costs for households in such program shall 
be shared in accordance with section 16, except that the Secretary 
shall pay an amount equal to 60 percent of all these administrative 
costs.
    ``(e)(1) A household against which a penalty is imposed (including 
disqualification) for noncompliance with the program established by the 
State under the Temporary Assistance for Needy Families block grant, 
except as provided in paragraph (2), shall have the same penalty 
imposed against it (including disqualification) in the program 
administered under this section.
    ``(2) Where the penalty for noncompliance with the program 
established by the State under the Temporary Assistance for Needy 
Families block grant is a reduction in benefits in such program, the 
household shall not receive an increased allotment as a result of a 
decrease in the household's income (as determined by the State under 
this section) to the extent that the decrease is the result of such 
penalty.
    ``(3) Any household disqualified from this program under this 
subsection may, after such disqualification period has expired, reapply 
for food stamp benefits under this Act and shall be treated as a new 
applicant.
    ``(f) Where a State or political subdivision, at its option, 
operates a program under this section for households that include any 
members who do not participate in the program established by the State 
under the Temporary Assistance for Needy Families block grant, the 
Secretary shall ensure that the State plan provides that household 
eligibility shall be determined under this Act and benefits may be 
determined under the rules and procedures established by the State 
under the Temporary Assistance for Needy Families block grant or this 
Act, and provides that an equitable distribution of benefits among all 
household members.
    ``(g)(1) At the election of the State, the State may use the sums 
that would otherwise be allotted to households participating under this 
section for the purposes of paying such households cash assistance 
where a member of such household is employed as provided by paragraph 
(2).
    ``(2) The State, in electing to provide cash assistance under 
paragraph (1), at a minimum shall require--
            ``(A) the household has earned income of at least $350 per 
        month;
            ``(B) the source of such earned income is a private sector 
        employer, as determined by the State; and
            ``(C) the household has received such earned income from 
        the same employer for three consecutive months.
    ``(3) If a State that makes the election described in paragraph (1) 
informs the Secretary of the households receiving cash assistance under 
this subsection that participate in the program under this subsection--
            ``(A) the Secretary shall pay to the State an amount equal 
        to the value of the allotment that the household is eligible to 
        receive under this subsection;
            ``(B) the State shall provide such amount to the household 
        as cash assistance in lieu of the allotment that the household 
        would receive but for the operation of this subsection;
            ``(C) the amount of cash assistance received under this 
        subsection shall be considered as the value of an allotment 
        provided to the household; and
            ``(D) the household shall not receive an allotment from the 
        State agency for the period during which the member continues 
        to receive cash assistance under this subsection.
    ``(4)(A) A State that makes the election in paragraph (1) shall 
increase the cash benefits provided to households under this subsection 
to compensate for any State or local sales tax that may be collected on 
purchases of food by any household receiving cash benefits under this 
subsection, or the Secretary determines on the basis of information 
provided by the State agency that the increase is unnecessary on the 
basis of the limited nature of the items subject to the State or local 
sales tax; and
    ``(B) the State pays the cost of any increased allotment.
    ``(5) After the operation of the program under this subsection for 
two years, the State shall conduct and provide the Committee on 
Agriculture of the House of Representatives, the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, and the Secretary a 
written evaluation on the impact of cash assistance under this 
subsection.
    ``(h) Notwithstanding the provisions of this Act, in operating such 
program, the State or political subdivisions may follow the rules and 
procedures established by the State or political subdivisions under the 
Temporary Assistance for Needy Families block grant or this Act, except 
that the State or political subdivisions shall follow--
            ``(1) section 7 (a)-(g), issuance and use of coupons;
            ``(2) section 8(a), value of allotment, except that the 
        household's income may be determined under the program 
        established by the State under the Temporary Assistance for 
        Needy Families block grant;
            ``(3) section 8(b), allotment not considered income or 
        resources;
            ``(4) section 11 (a), (c)-(d), and (n), administration;
            ``(5) under section 11(e), the State shall follow 
        paragraphs (8), (12), (17), (19), (21), (26)-(27);
            ``(6) section 11(e)(10) or a comparable provision 
        established by the State under the Temporary Assistance for 
        Needy Families block grant; and
            ``(7) section 16, administrative cost-sharing and quality 
        control, except as provided in subsection (c).''.
    (b) Section 11(e) of the Act (7 U.S.C. 2020(e)) is amended 
inserting at the end the following new paragraph:
            ``(26) the plans of the State agency, at the election of 
        the State, for operating a program under section (4)(a)(2), 
        including--
                    ``(A) the rules and procedures to be followed by 
                the State to determine benefits;
                    ``(B) whether the program operated by the State 
                under section 4(a)(2) will include households including 
                members who do not participate in the program 
                established by the State under the Temporary Assistance 
                for Needy Families block grant; and
                    ``(C) the method by which the State or political 
                subdivision will carry out a quality control system 
                under section 16(c).''.

SEC. 204. CONFORMING AMENDMENTS.

    (a) Section 8 of the Act (7 U.S.C. 2017) is amended by striking 
subsection (e).
    (b) Section 17 of the Act (7 U.S.C. 2026) is amended--
            (1) by striking subsection (i);
            (2) by redesignating subsections (j), (k), and (l) as 
        subsections (i), (j), and (k), respectively.

                     Subtitle B--Food Stamp Program

SEC. 205. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.

    (a) Section 5(d)(11) of the Act (7 U.S.C. 2014(d)(11)) is amended--
            (1) by striking ``(A)''; and
            (2) by striking ``or (B) under any State or local laws,'' 
        and all that follows through ``or impracticable to do so,''.
    (b) Section 5(e) of the Act (7 U.S.C. 2014(e)) is amended to read 
as follows:
    ``(e)(1) Standard and Earned Income Deductions.--
            ``(A) In computing household income, the Secretary shall 
        allow a standard deduction of $134 a month for each household, 
        except that households in Alaska, Hawaii, Guam, and the Virgin 
        Islands of the United States shall be allowed a standard 
        deduction of $229, $189, $269, and $118, respectively.
            ``(B) All households with earned income shall also be 
        allowed an additional deduction of 20 percent of all earned 
        income (other than that excluded by subsection (d) of this 
        section and that earned under section 16(j)), to compensate for 
        taxes, other mandatory deductions from salary, and work 
        expenses, except that such additional deduction shall not be 
        allowed with respect to earned income that a household 
        willfully or fraudulently fails (as proven in a proceeding 
provided for in section 6(b)) to report in a timely manner.
    ``(2) Dependent Care Deduction.--The Secretary shall allow 
households, a deduction with respect to expenses other than expenses 
paid on behalf of the household by a third party or benefits paid to 
the household, directly or indirectly, under the Temporary Assistance 
for Needy Families block grant, amounts made available and excluded for 
the expenses under subsection (d)(3), the maximum allowable level of 
which shall be $200 a month for each dependent child under two years of 
age and $175 a month for each other dependent, for the actual cost of 
payments necessary for the care of a dependent when such care enables a 
household member to accept or continue employment, or training or 
education which is preparatory for employment.
    ``(3) Excess Shelter Expense Deduction.--
            ``(A) The Secretary shall allow households, other than 
        those households containing an elderly or disabled member, with 
        respect to expenses other than expenses paid on behalf of the 
        household by a third party, an excess shelter expense deduction 
        to the extent that the monthly amount expended by a household 
        for shelter exceeds an amount equal to 50 percent of monthly 
        household income after all other applicable deductions have 
        been allowed.
            ``(B) Such excess shelter expense deduction shall not 
        exceed $231 a month in the forty-eight contiguous States and 
        the District of Columbia, and shall not exceed, in Alaska, 
        Hawaii, Guam, and the Virgin Islands of the United States, 
        $402, $330, $280, and $171 a month, respectively.
            ``(C) Notwithstanding section 2605(f) of the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)), a State 
        agency may allow a deduction for heating and cooling expenses 
        only to the extent that the household still incurs out-of-
        pocket heating or cooling expenses in addition to any payment 
        received under, or costs paid on its behalf, the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.). 
        For purposes of the food stamp program, assistance provided 
        under the Low-Income Home Energy Assistance Act of 1981 shall 
        be considered to be prorated over the entire heating or cooling 
        season for which it was provided. A State agency shall allow a 
        household to switch between any standard utility allowance and 
        a deduction based on its actual utility costs at the end of any 
        certification period and up to one additional time during each 
        twelve-month period.
            ``(D) In computing the excess shelter expense deduction, a 
        State agency may use a standard utility allowance in accordance 
        with regulations promulgated by the Secretary, except that a 
        State agency may use an allowance which does not fluctuate 
        within a year to reflect seasonal variations.
                    ``(i) An allowance for a heating or cooling expense 
                may not be used for a household that does not incur a 
                heating or cooling expense, as the case may be, or does 
                incur a heating or cooling expense but is located in a 
                public housing unit which has central utility meters 
                and charges households, with regard to such expense, 
                only for excess utility costs.
                    ``(ii) No such allowance may be used for a 
                household that shares such expense with, and lives 
                with, another individual not participating in the food 
                stamp program, another household participating in the 
                food stamp program, or both, unless the allowance is 
                prorated between the household and the other 
                individual, household, or both.
    ``(4) Homeless Shelter Deduction.--The Secretary shall allow 
households in which all members are homeless but are not receiving free 
shelter throughout the month a shelter expense deduction for the 
expenses that may reasonably be expected to be incurred by such 
households, but such deduction shall not exceed $139 a month.
    ``(5) Elderly and Disabled.--The Secretary shall allow households 
containing an elderly or disabled member, with respect to expenses 
other than expenses paid on behalf of the household by a third party, 
to--
            ``(A) an excess medical expense deduction for that portion 
        of the actual cost of allowable medical expenses, incurred by 
        elderly or disabled members, exclusive of special diets, that 
        exceed $35 a month; and
            ``(B) an excess shelter expense deduction to the extent 
        that the monthly amount expended by a household for shelter 
        exceeds an amount equal to 50 percent of monthly household 
        income after all other applicable deductions have been allowed.
State agencies shall offer eligible households a method of claiming a 
deduction for recurring medical expenses that are initially verified 
under the excess medical expense deduction provided for in subparagraph 
(A), in lieu of submitting information or verification on actual 
expenses on a monthly basis. The method described in the preceding 
sentence shall be designed to minimize the administrative burden for 
eligible elderly and disabled household members choosing to deduct 
their recurrent medical expenses pursuant to such method, shall rely on 
reasonable estimates of the member's expected medical expenses for the 
certification period (including changes that can be reasonably 
anticipated based on available information about the member's medical 
condition, public or private medical insurance coverage, and the 
current verified medical expenses incurred by the member), and shall 
not require further reporting or verification of a change in medical 
expenses if such a change has been anticipated for the certification 
period.
    ``(6) Child Support Deduction.--Before determining the excess 
shelter expense deduction, the Secretary shall allow all households a 
deduction for child support payments made by a household member to or 
for an individual who is not a member of the household if such 
household member was legally obligated to make such payments, except 
that the Secretary is authorized to prescribe by regulation the 
methods, including calculation on a retrospective basis, that State 
agencies shall use to determine the amount of the deduction for child 
support payments.''.
    (c) Section 11(e)(3) of the Act (7 U.S.C. 2020(e)(3)) is amended by 
striking ``Under the rules prescribed by the Secretary, a State agency 
shall develop standard estimates'' and all that follows through the 
second period.

SEC. 206. VEHICLE ALLOWANCE.

    Section 5(g)(2) of the Act (7 U.S.C. 2014(f)(2)) is amended by 
striking ``a level set by the Secretary, which shall be $4,500 through 
August 31, 1994,'' and all that follows through the end of subsection, 
and inserting ``$4,550.''.

SEC. 207. ELIGIBILITY OF ALIENS.

    (a) Section 5 of the Act (7 U.S.C. 2014) is amended--
            (1) by striking subsection (i);
            (2) by redesignating subsections (j) through (m) as 
        subsections (i) through (l), respectively; and
            (3) by changing all references in the Act to reflect the 
        amendment in paragraph (2) wherever they occur.
    (b) Section 6(f)(2) (7 U.S.C. 2015(f)(2)) is amended--
            (1) in subparagraph (B), by inserting ``, and such alien 
        has fulfilled the residence requirements, and has an 
        application pending, for naturalization under the Immigration 
        and Nationality Act, or is a veteran (as defined in section 101 
        of title 38, United States Code) with a discharge characterized 
        as an honorable discharge (or is spouse of such alien), or is 
        on active duty (other than active duty for training) in the 
        Armed Forces of the United States (or is the spouse or 
        dependent child of such alien)'' before the semicolon;
            (2) in subparagraph (D), by inserting ``for five years 
        after such entry'' before the semicolon.

SEC. 208. WORK REQUIREMENTS.

    (a) Section 6(d) of the Act (42 U.S.C. 2015(d)) is amended--
            (1) in paragraph (1)(A)(i), by inserting ``or refuses to 
        participate in any State job search program'' after ``by the 
        Secretary'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``part A of'' after ``work 
                        registration requirement under'';
                            (ii) by striking ``that is comparable to a 
                        requirement of paragraph (1)'';
                    (B) by inserting ``or'' before ``(E)''; and
                    (C) by striking ``; or (F) a person between the 
                ages of sixteen and eighteen who is not a head of a 
                household or who is attending school, or enrolled in an 
                employment training program, on at least a half-time 
                basis''; and
            (3) in paragraph (4), to read as follows:
            ``(4)(A) Except as provided in subparagraphs (B), (C), and 
        (D), an individual shall not be denied initial eligibility but 
        shall be disqualified from the food stamp program if the 
        individual has not been employed a minimum of twenty hours per 
        week, or did not participate in a workfare program established 
        under section 20, within 90 days of certification of 
        eligibility.
            ``(B) The provisions of subparagraph (A) shall not apply in 
        the case of an individual who--
                    ``(i) is under eighteen or over fifty years of age;
                    ``(ii) is certified by a physician as physically or 
                mentally unfit for employment;
                    ``(iii) is a parent or other member of a household 
                with responsibility for the care of a dependent;
                    ``(iv) is participating a minimum of 20 hours per 
                week and is in compliance with the requirements of--
                            ``(I) a program under the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.);
                            ``(II) a program under section 236 of the 
                        Trade Act of 1974 (19 U.S.C. 2296); or
                            ``(III) another program for the purpose of 
                        employment and training operated by a State or 
                        local government, as determined appropriate by 
                        the Secretary; or
                    ``(v) or would otherwise be exempt under subsection 
                (d)(2).
            ``(C) The Secretary may waive the requirements of 
        subparagraph (A) in the case of some or all individuals within 
        all or part of State if the Secretary finds that such area--
                    ``(i) has an unemployment rate of over 10 percent; 
                or
                    ``(ii) does not have a sufficient number of jobs to 
                provide employment for individuals subject to this 
                paragraph. The Secretary shall report to the Committee 
                on Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate on the basis in which the Secretary made 
                this decision.
            ``(D) An individual who has been disqualified from the food 
        stamp program by reason of subparagraph (A) may reestablish 
        eligibility for assistance by--
                    ``(i) becoming employed for a minimum of twenty 
                hours per week during any consecutive thirty-day 
                period; or
                    ``(ii) participating in a workfare program 
                established under section 20 or a comparable workfare 
                program established by the State or local government 
                during any consecutive thirty-day period.''.
    (b) Section 16 of the Act (7 U.S.C. 2025) is amended--
            (1) by striking subsection (h);
            (2) by redesignating subsections (i) and (j) and 
        subsections (h) and (i), respectively; and
            (3) by changing all references.
    (c) Section 17 of the Act (7 U.S.C. 2026), as previously amended, 
is amended--
            (1) by striking subsection (d);
            (2) by redesignating subsections (e) through (k) as 
        subsections (d) through (j), respectively; and
            (3) by changing all references in the Act to reflect the 
        amendment in paragraph (2) whenever they occur.

SEC. 209. COMPARABLE TREATMENT OF DISQUALIFIED INDIVIDUALS.

    Section 6 of the Act (7 U.S.C. 2015) is amended by adding at the 
end the following new subsection:
                            ``(i) An individual who is a member of a 
                        household who would otherwise be eligible to 
                        participate in the food stamp program under 
                        this section who has been disqualified from the 
                        program established by the State under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.) shall not be eligible to 
                        participate in the food stamp program during 
                        the period such disqualification is in 
                        effect.''.

SEC. 210. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) Section 7(i) of the Act (7 U.S.C. 2016(i)(1)) is amended--
            (1) in paragraph (1), to read as follows:
                    ``(A) State agencies are encouraged to implement an 
                on-line electronic benefit transfer system in which 
                household benefits determined under section 8(a) or 
                section 24 are issued from and stored in a central data 
                bank and electronically accessed by household members 
                at the point-of-sale.
                    ``(B) Subject to paragraph (2), a State is 
                authorized to procure and implement an electronic 
                benefit transfer system under the terms, conditions, 
                and design that the state deems appropriate.
                    ``(C) The Secretary shall, upon request of a State, 
                waive any provision of this Act prohibiting the 
                effective implementation of an electronic benefit 
                transfer system under this subsection.'';
            (2) in paragraph (2), by striking ``for the approval''; and
            (3) in paragraph (3), by striking ``, the Secretary shall 
        not approve such a system unless''.
    (b) The Act (7 U.S.C. 2011 et seq.), as previously amended by this 
Act, is amended by adding at the end the following new section:

``SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    ``(a) Upon fully implementing an electronic benefit transfer system 
which operates in the entire State, a State may, subject to the 
provisions of this section, elect to operate a low-income nutrition 
assistance program in lieu of the food stamp program established under 
this Act.
    ``(b)(1) Each State that meets the requirements of this section and 
elects to receive such grants, shall receive each fiscal year under 
this section the sum of--
            ``(A)(i) the total dollar value of all benefits issued 
        under the food stamp program by the State during fiscal year 
        1994; or
            ``(ii) the average for each fiscal year of the total dollar 
        value of all benefits issued under the food stamp program by 
        the State during fiscal years 1992 through 1994; and
            ``(B) the total amount received by the State for 
        administrative costs under section 16(a) for fiscal year 1994 
        or the average for each fiscal year of the total amount 
        received for fiscal years 1992 through 1994.
    ``(2) If the Secretary approves the plan submitted by a State under 
subsection (c), the Secretary shall pay to the State at such times and 
in such manner as the Secretary may determine, the amount to which the 
State is eligible under subsection (b)(1).
    ``(c) To be eligible to receive a grant under this section, a State 
shall submit for approval each fiscal year a plan of operation 
specifying the manner in which such a program will be conducted by the 
State. Such plan shall--
            ``(1) certify that the State has implemented a statewide 
        electronic benefit transfer system in accordance with section 
        7(i);
            ``(2) designate a single State agency responsible for the 
        administration of the nutrition assistance program under this 
        section;
            ``(3) assess the food and nutrition needs of needy persons 
        residing in the State;
            ``(4) limit the assistance to be provided to the purchase 
        of food and describe the persons to whom such assistance will 
        be provided;
            ``(5) assure the Secretary that assistance will be provided 
        to the most needy persons in the State and that applicants for 
        assistance shall have adequate notice and fair hearings 
        comparable to those required under section 11 of this Act;
            ``(6) provide that, in the operation of the nutrition 
        assistance program, there shall be no discrimination on the 
        basis of race, sex, religious creed, national origin, or 
        political beliefs; and
            ``(7) include other information as may be required by the 
        Secretary.
    ``(d) Payments made under this section to the State may be expended 
only in the fiscal year for which such payments are distributed, except 
that the State may reserve up to five percent of the grant received 
each fiscal year to provide assistance under this section in subsequent 
years: Provided, That such reserved funds may not total more than 20 
percent of the total grant received under this section in any fiscal 
year.
    ``(e) The State agency shall keep records concerning the operation 
of the program carried out under this section and shall make such 
records available to the Secretary and the Comptroller General of the 
United States.
    ``(f) If the Secretary finds that there is substantial failure by a 
State to comply with the requirements of this section, regulations 
issued pursuant to this section, or the plan approved under subsection 
(c), then the Secretary shall take one or more of the following 
actions:
            ``(1) Suspend all or part of such payment authorized by 
        subsection (b)(2) to be made available to such State, until the 
        Secretary determines the State to be in substantial compliance 
        with such requirements.
            ``(2) Withhold all or part of such payments until the 
        Secretary determines that there is no longer failure to comply 
        with such requirements, at which time the withheld payment may 
be paid.
            ``(3) Terminate the authority of the State to operate the 
        low-income nutrition assistance program.
    ``(g)(1) States which receive grants under this section shall 
provide for--
            ``(A) a biennial audit, conducted in accordance with the 
        standards of the Comptroller General, of expenditures for the 
        provision of assistance under this section; and
            ``(B) not later than 120 days of the end of each fiscal 
        year in which an audit is conducted, a report to the Secretary 
        containing the findings of such audit.
States shall make the report of such audit available for public 
inspection.
    ``(2) Not later than 120 days after the end of each fiscal year, 
each such State shall prepare an activities report comparing actual 
expenditures for such fiscal year for assistance under this section 
with the expenditures for such fiscal year predicted in the plan 
submitted in accordance with subsection (c)(1) of this section. Such 
State shall make the activities report available for public inspection.
    ``(h) Whoever knowingly and willfully embezzles, misapplies, 
steals, or obtains by fraud, false statement, or forgery, any funds, 
assets, or property provided or financed under this section shall be 
fined not more than $10,000 or imprisoned for not more than five years, 
or both.

SEC. 211. VALUE OF MINIMUM ALLOTMENT.

    Section 8(a) of Act (7 U.S.C. 2017(a)) is amended by striking ``, 
and shall be adjusted on each October 1'' and all that follows through 
the end of the subsection, and inserting a period.

SEC. 212. INITIAL MONTH BENEFIT DETERMINATION.

    Section 8(c)(2)(B) of the Act (7 U.S.C. 2017(c)(2)(B)) is amended 
by striking ``of more than one month'' after ``following any period''.

SEC. 213. IMPROVING FOOD STAMP PROGRAM MANAGEMENT.

    (a) Section 13(a)(1) of the Act (7 U.S.C. 2022(a)(1)) is amended--
            (1) in the fifth sentence, by inserting ``(after a 
        determination on any request for a waiver for good cause 
        related to the claim has been made by the Secretary)'' after 
        ``bill for collection'';
            (2) in the sixth sentence, by striking ``1 year'' and 
        inserting ``2 years''.
    (b) Section 14(a) of the Act (7 U.S.C. 2023(a)) is amended--
            (1) in the sixth sentence, by striking ``(including 
        determinations as to whether there is good cause for not 
        imposing all or a portion of the penalty)'';
            (2) by adding at the end the following new sentence: 
        ``Notwithstanding the administrative or judicial review 
        procedures set forth in this subsection, determinations by the 
        Secretary concerning whether a State agency had good cause for 
        its failure to meet error rate tolerance levels established 
        under section 16(c) are final.''.
    (c) Section 16(c) of the Act (7 U.S.C. 2025(c)) is amended--
            (1) in paragraph (1)(C)--
                    (A) by striking ``national performance measure'' 
                and inserting ``payment error tolerance level''; and
                    (B) by striking ``equal to--'' and all that follows 
                through the first period and inserting the following: 
                ``equal to its payment error rate less such tolerance 
                level times the total value of allotments issued in 
                such a fiscal year by such State agency. The amount of 
                liability shall not be affected by corrective action 
                under subparagraph (B).'';
            (2) in paragraph (3)(A), by striking ``120 days'' and 
        inserting ``60 days (or 90 days at the discretion of the 
        Secretary)'';
            (3) in the third sentence of paragraph (6), by inserting 
        ``shall be used to establish a payment-error tolerance level. 
        Such tolerance level for any fiscal year will be one percentage 
        point added to the lowest national performance measure ever 
        announced up to and including such fiscal year under this 
        section. The payment-error tolerance level'' after ``The 
        announced national performance measure''; and
            (4) by striking paragraphs (8) and (9).

SEC. 214. WORK SUPPLEMENTATION OF SUPPORT PROGRAM.

    (a) Section 11(e) of the Act (7 U.S.C. 2020(e)), as previously 
amended by this Act, is amended by adding at the end the following new 
paragraph:
            ``(27) the plans of the State agency for including eligible 
        food stamp recipients in a work supplementation or support 
        program under section 16(i).''.
    (b) Section 16 of the Act (7 U.S.C. 2025), as previously amended by 
this Act, is amended by adding at the end the following new subsection:
    ``(i) Work Supplementation or Support Program.--(1) At the election 
of the State, the State may use the sums that would otherwise be 
allotted to participants under this Act for the purposes of providing 
and subsidizing or supporting jobs under a work supplementation or 
support program established by the State under the Temporary Assistance 
for Needy Families block grant.
    ``(2) If a State agency of a State that makes the election 
described in paragraph (1) informs the Secretary that an individual who 
is participating in such work supplementation or support program is a 
member of a household that participates in the food stamp program--
            ``(A) the Secretary shall pay to the State an amount equal 
        to the value of the allotment that the household is eligible to 
        receive under this Act;
            ``(B) the State shall expend such amount in accordance with 
        its work supplementation or support program in lieu of the 
        allotment that the household would receive but for the 
        operation of this subsection;
            ``(C) for purposes of--
                    ``(i) sections 5 and 8(a) of this Act, the amount 
                received under this subsection shall be excluded from 
                household income and resources; and
                    ``(ii) section 8(b) of this Act, the amount 
                received under this subsection shall be considered as 
                the value of an allotment provided to the household; 
                and
            ``(D) the household shall not receive an allotment from the 
        State agency for the period during which the member continues 
        to participate in the work supplementation program.
    ``(3) No person shall be excused by reason of the fact that such 
State has a work supplementation or support program from any work 
requirement under section 6(d), except during the periods in which such 
individual is employed under such work supplementation or support 
program.
    ``(4) For purposes of this subsection, `work supplementation or 
support' shall mean a program in which, as determined by the Secretary, 
public assistance, including any benefits provided under a program 
established by the State under the Temporary Assistance for Needy 
Families block grant and the food stamp program, is provided to an 
employer to be used for hiring a public assistance recipient.''.

SEC. 215. EFFECTIVE DATES.

    (a) Except as provided in subsections (b) and (c), this Act and 
amendments made by this Act shall take effect on October 1, 1995.
    (b) The amendments made by section 207 shall take effect on October 
1, 1996.
    (c) The amendments made by section 213 shall take effect on October 
1, 1994.
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