Union Calendar No. 39

104TH CONGRESS

1ST SESSION H. R. 1135

[Report No. 104–77]

A BILL

To improve the commodity distribution programs of

purposes.simplify the Food Stamp Program, and for otherthe Department of Agriculture, to reform and

MARCH 14, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 39

104TH CONGRESS

1ST SESSION H. R. 1135

[Report No. 104–77]

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

MARCH 6, 1995

Mr. ROBERTS introduced the following bill; which was referred to the

Committee on Agriculture

MARCH 14, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on March 6, 1995]

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Food Stamp Reform

3 and Commodity Distribution Act’’.

4 TITLE I—COMMODITY

5 DISTRIBUTION PROVISIONS

6 SEC. 101. SHORT TITLE.

7 This title may be cited as the ‘‘Commodity Distribu8 tion Act of 1995’’.

9 SEC. 102. AVAILABILITY OF COMMODITIES.

10 (a) Notwithstanding any other provision of law, the

11 Secretary of Agriculture (hereinafter in this title referred

12 to as the ‘‘Secretary’’) is authorized during fiscal years

13 1996 through 2000 to purchase a variety of nutritious and

14 useful commodities and distribute such commodities to the

15 States for distribution in accordance with this title.

16 (b) In addition to the commodities described in sub17 section (a), the Secretary may expend funds made available

18 to carry out the section 32 of the Act of August 24, 1935

19 (7 U.S.C. 612c), which are not expended or needed to carry

20 out such sections, to purchase, process, and distribute com21 modities of the types customarily purchased under such sec22 tion to the States for distribution in accordance with this

23 title.

24 (c) In addition to the commodities described in sub25 sections (a) and (b), agricultural commodities and the prod26 ucts thereof made available under clause (2) of the second
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1 sentence of section 32 of the Act of August 24, 1935 (7

2 U.S.C. 612c), may be made available by the Secretary to

3 the States for distribution in accordance with this title.

4 (d) In addition to the commodities described in sub5 sections (a), (b), and (c), commodities acquired by the Com6 modity Credit Corporation that the Secretary determines,

7 in the discretion of the Secretary, are in excess of quantities

8 needed to—

9 (1) carry out other domestic donation programs;

10 (2) meet other domestic obligations;

11 (3) meet international market development and

12 food aid commitments; and

13 (4) carry out the farm price and income sta14 bilization purposes of the Agricultural Adjustment

15 Act of 1938, the Agricultural Act of 1949, and the

16 Commodity Credit Corporation Charter Act;

17 shall be made available by the Secretary, without charge

18 or credit for such commodities, to the States for distribution

19 in accordance with this title.

20 (e) During each fiscal year, the types, varieties and

21 amounts of commodities to be purchased under this title

22 shall be determined by the Secretary. In purchasing such

23 commodities, except those commodities purchased pursuant

24 to section 110, the Secretary shall, to the extent practicable

25 and appropriate, make purchases based on—
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1 (1) agricultural market conditions;

2 (2) the preferences and needs of States and dis3 tributing agencies; and

4 (3) the preferences of the recipients.

5 SEC. 103. STATE, LOCAL AND PRIVATE SUPPLEMENTATION

6 OF COMMODITIES.

7 (a) The Secretary shall establish procedures under

8 which State and local agencies, recipient agencies, or any

9 other entity or person may supplement the commodities dis10 tributed under this title for use by recipient agencies with

11 nutritious and wholesome commodities that such entities or

12 persons donate for distribution, in all or part of the State,

13 in addition to the commodities otherwise made available

14 under this title.

15 (b) States and eligible recipient agencies may use—

16 (1) the funds appropriated for administrative

17 cost under section 109(b);

18 (2) equipment, structures, vehicles, and all other

19 facilities involved in the storage, handling, or dis20 tribution of commodities made available under this

21 title; and

22 (3) the personnel, both paid or volunteer, in23 volved in such storage, handling, or distribution;

24 to store, handle or distribute commodities donated for use

25 under subsection (a).
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1 (c) States and recipient agencies shall continue, to the

2 maximum extent practical, to use volunteer workers, and

3 commodities and other foodstuffs donated by charitable and

4 other organizations, in the distribution of commodities

5 under this title.

6 SEC. 104. STATE PLAN.

7 (a) A State seeking to receive commodities under this

8 title shall submit a plan of operation and administration

9 every four years to the Secretary for approval. The plan

10 may be amended at any time, with the approval of the Sec11 retary.

12 (b) The State plan, at a minimum, shall—

13 (1) designate the State agency responsible for

14 distributing the commodities received under this title;

15 (2) set forth a plan of operation and administra16 tion to expeditiously distribute commodities under

17 this title in quantities requested to eligible recipient

18 agencies in accordance with sections 106 and 110;

19 (3) set forth the standards of eligibility for recip20 ient agencies; and

21 (4) set forth the standards of eligibility for indi22 vidual or household recipients of commodities, which

23 at minimum shall require—

24 (A) individuals or households to be com25 prised of needy persons; and
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1 (B) individual or household members to be

2 residing in the geographic location served by the

3 distributing agency at the time of application for

4 assistance.

5 (c) The Secretary shall encourage each State receiving

6 commodities under this title to establish a State advisory

7 board consisting of representatives of all interested entities,

8 both public and private, in the distribution of commodities

9 received under this title in the State.

10 (d) A State agency receiving commodities under this

11 title may—

12 (1)(A) enter into cooperative agreements with

13 State agencies of other States to jointly provide com14 modities received under this title to eligible recipient

15 agencies that serve needy persons in a single geo16 graphical area which includes such States; or

17 (B) transfer commodities received under this title

18 to any such eligible recipient agency in the other

19 State under such agreement; and

20 (2) advise the Secretary of an agreement entered

21 into under this subsection and the transfer of com22 modities made pursuant to such agreement.
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1 SEC. 105. ALLOCATION OF COMMODITIES TO STATES.

2 (a) In each fiscal year, except for those commodities

3 purchased under section 110, the Secretary shall allocate

4 the commodities distributed under this title as follows:

5 (1) 60 percent of the such total value of commod6 ities shall be allocated in a manner such that the

7 value of commodities allocated to each State bears the

8 same ratio to 60 percent of such total value as the

9 number of persons in households within the State hav10 ing incomes below the poverty line bears to the total

11 number of persons in households within all States

12 having incomes below such poverty line. Each State

13 shall receive the value of commodities allocated under

14 this paragraph.

15 (2) 40 percent of such total value of commodities

16 shall be allocated in a manner such that the value of

17 commodities allocated to each State bears the same

18 ratio to 40 percent of such total value as the average

19 monthly number of unemployed persons within the

20 State bears to the average monthly number of unem21 ployed persons within all States during the same fis22 cal year. Each State shall receive the value of com23 modities allocated to the State under this paragraph.

24 (b)(1) The Secretary shall notify each State of the

25 amount of commodities that such State is allotted to receive

26 under subsection (a) or this subsection, if applicable. Each
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1 State shall promptly notify the Secretary if such State de2 termines that it will not accept any or all of the commod3 ities made available under such allocation. On such a noti4 fication by a State, the Secretary shall reallocate and dis5 tribute such commodities as the Secretary deems appro6 priate and equitable. The Secretary shall further establish

7 procedures to permit States to decline to receive portions

8 of such allocation during each fiscal year as the State deter9 mines is appropriate and the Secretary shall reallocate and

10 distribute such allocation as the Secretary deems appro11 priate and equitable.

12 (2) In the event of any drought, flood, hurricane, or

13 other natural disaster affecting substantial numbers of per14 sons in a State, county, or parish, the Secretary may re15 quest that States unaffected by such a disaster consider as16 sisting affected States by allowing the Secretary to reallo17 cate commodities from such unaffected State to States con18 taining areas adversely affected by the disaster.

19 (c) Purchases of commodities under this title shall be

20 made by the Secretary at such times and under such condi21 tions as the Secretary determines appropriate within each

22 fiscal year. All commodities so purchased for each such fis23 cal year shall be delivered at reasonable intervals to States

24 based on the allocations and reallocations made under sub-
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1 sections (a) and (b), and or carry out section 110, not later

2 than December 31 of the following fiscal year.

3 SEC. 106. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF

4 COMMODITIES.

5 (a) In distributing the commodities allocated under

6 subsections (a) and (b) of section 105, the State agency,

7 under procedures determined by the State agency, shall

8 offer, or otherwise make available, its full allocation of com9 modities for distribution to emergency feeding organiza10 tions.

11 (b) If the State agency determines that the State will

12 not exhaust the commodities allocated under subsections (a)

13 and (b) of section 105 through distribution to organizations

14 referred to in subsection (a), its remaining allocation of

15 commodities shall be distributed to charitable institutions

16 described in section 113(3) not receiving commodities under

17 subsection (a).

18 (c) If the State agency determines that the State will

19 not exhaust the commodities allocated under subsections (a)

20 and (b) of section 105 through distribution to organizations

21 referred to in subsections (a) and (b), its remaining alloca22 tion of commodities shall be distributed to any eligible re23 cipient agency not receiving commodities under subsections

24 (a) and (b).
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1 SEC. 107. INITIAL PROCESSING COSTS.

2 The Secretary may use funds of the Commodity Credit

3 Corporation to pay the costs of initial processing and pack4 aging of commodities to be distributed under this title into

5 forms and in quantities suitable, as determined by the Sec6 retary, for use by the individual households or eligible recip7 ient agencies, as applicable. The Secretary may pay such

8 costs in the form of Corporation-owned commodities equal

9 in value to such costs. The Secretary shall ensure that any

10 such payments in kind will not displace commercial sales

11 of such commodities.

12 SEC. 108. ASSURANCES; ANTICIPATED USE.

13 (a) The Secretary shall take such precautions as the

14 Secretary deems necessary to ensure that commodities made

15 available under this title will not displace commercial sales

16 of such commodities or the products thereof. The Secretary

17 shall submit to the Committee on Agriculture of the House

18 of Representatives and the Committee on Agriculture, Nu19 trition, and Forestry of the Senate by December 31, 1997,

20 and not less than every two years thereafter, a report as

21 to whether and to what extent such displacements or substi22 tutions are occurring.

23 (b) The Secretary shall determine that commodities

24 provided under this title shall be purchased and distributed

25 only in quantities that can be consumed without waste. No

26 eligible recipient agency may receive commodities under
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1 this title in excess of anticipated use, based on inventory

2 records and controls, or in excess of its ability to accept

3 and store such commodities.

4 SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

5 (a) PURCHASE OF COMMODITIES.—To carry out this

6 title, there are authorized to be appropriated $260,000,000

7 for each of the fiscal years 1996 through 2000 to purchase,

8 process, and distribute commodities to the States in accord9 ance with this title.

10 (b) ADMINISTRATIVE FUNDS.—(1) There are author11 ized to be appropriated $40,000,000 for each of the fiscal

12 years 1996 through 2000 for the Secretary to make available

13 to the States for State and local payments for costs associ14 ated with the distribution of commodities by eligible recipi15 ent agencies under this title, excluding costs associated with

16 the distribution of those commodities distributed under sec17 tion 110. Funds appropriated under this paragraph for any

18 fiscal year shall be allocated to the States on an advance

19 basis dividing such funds among the States in the same pro20 portions as the commodities distributed under this title for

21 such fiscal year are allocated among the States. If a State

22 agency is unable to use all of the funds so allocated to it,

23 the Secretary shall reallocate such unused funds among the

24 other States in a manner the Secretary deems appropriate

25 and equitable.
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1 (2)(A) A State shall make available in each fiscal year

2 to eligible recipient agencies in the State not less than 40

3 percent of the funds received by the State under paragraph

4 (1) for such fiscal year, as necessary to pay for, or provide

5 advance payments to cover, the allowable expenses of eligible

6 recipient agencies for distributing commodities to needy

7 persons, but only to the extent such expenses are actually

8 so incurred by such recipient agencies.

9 (B) As used in this paragraph, the term ‘‘allowable

10 expenses’’ includes—

11 (i) costs of transporting, storing, handling, re12 packaging, processing, and distributing commodities

13 incurred after such commodities are received by eligi14 ble recipient agencies;

15 (ii) costs associated with determinations of eligi16 bility, verification, and documentation;

17 (iii) costs of providing information to persons

18 receiving commodities under this title concerning the

19 appropriate storage and preparation of such commod20 ities; and

21 (iv) costs of recordkeeping, auditing, and other

22 administrative procedures required for participation

23 in the program under this title.

24 (C) If a State makes a payment, using State funds,

25 to cover allowable expenses of eligible recipient agencies, the
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1 amount of such payment shall be counted toward the

2 amount a State must make available for allowable expenses

3 of recipient agencies under this paragraph.

4 (3) States to which funds are allocated for a fiscal year

5 under this subsection shall submit financial reports to the

6 Secretary, on a regular basis, as to the use of such funds.

7 No such funds may be used by States or eligible recipient

8 agencies for costs other than those involved in covering the

9 expenses related to the distribution of commodities by eligi10 ble recipient agencies.

11 (4)(A) Except as provided in subparagraph (B), to be

12 eligible to receive funds under this subsection, a State shall

13 provide in cash or in kind (according to procedures ap14 proved by the Secretary for certifying these in-kind con15 tributions) from non-Federal sources a contribution equal

16 to the difference between—

17 (i) the amount of such funds so received; and

18 (ii) any part of the amount allocated to the

19 State and paid by the State—

20 (I) to eligible recipient agencies; or

21 (II) for the allowable expenses of such recip22 ient agencies;

23 for use in carrying out this title.

24 (B) Funds allocated to a State under this section may,

25 upon State request, be allocated before States satisfy the
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1 matching requirement specified in subparagraph (A), based

2 on the estimated contribution required. The Secretary shall

3 periodically reconcile estimated and actual contributions

4 and adjust allocations to the State to correct for overpay5 ments and underpayments.

6 (C) Any funds distributed for administrative costs

7 under section 110(b) shall not be covered by this paragraph.

8 (5) States may not charge for commodities made avail9 able to eligible recipient agencies, and may not pass on to

10 such recipient agencies the cost of any matching require11 ments, under this title.

12 (c) The value of the commodities made available under

13 subsection (c) and (d) of section 102, and the funds of the

14 Commodity Credit Corporation used to pay the costs of ini15 tial processing, packaging (including forms suitable for

16 home use), and delivering commodities to the States shall

17 not be charged against appropriations authorized by this

18 section.

19 SEC. 110. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

20 (a) From the funds appropriated under section 109(a),

21 $94,500,000 shall be used for each fiscal year to purchase

22 and distribute commodities to supplemental feeding pro23 grams serving women, infants, and children or elderly indi24 viduals (hereinafter in this section referred to as the ‘‘com-
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1 modity supplemental food program’’), or serving both

2 groups wherever located.

3 (b) Not more than 20 percent of the funds made avail4 able under subsection (a) shall be made available to the

5 States for State and local payments of administrative costs

6 associated with the distribution of commodities by eligible

7 recipient agencies under this section. Administrative costs

8 for the purposes of the commodity supplemental food pro9 gram shall include, but not be limited to, expenses for infor10 mation and referral, operation, monitoring, nutrition edu11 cation, start-up costs, and general administration, includ12 ing staff, warehouse and transportation personnel, insur13 ance, and administration of the State or local office.

14 (c)(1) During each fiscal year the commodity supple15 mental food program is in operation, the types, varieties,

16 and amounts of commodities to be purchased under this sec17 tion shall be determined by the Secretary, but, if the Sec18 retary proposes to make any significant changes in the

19 types, varieties or amounts from those that were available

20 or were planned at the beginning of the fiscal year the Sec21 retary shall report such changes before implementation to

22 the Committee on Agriculture of the House of Representa23 tives and the Committee on Agriculture, Nutrition, and

24 Forestry of the Senate.
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1 (2) Notwithstanding any other provision of law, the

2 Commodity Credit Corporation shall, to the extent that the

3 Commodity Credit Corporation inventory levels permit,

4 provide not less than 9,000,000 pounds of cheese and not

5 less than 4,000,000 pounds of nonfat dry milk in each of

6 the fiscal years 1996 through 2000 to the Secretary. The

7 Secretary shall use such amounts of cheese and nonfat dry

8 milk to carry out the commodity supplemental food pro9 gram before the end of the fiscal year.

10 (d) The Secretary shall, in each fiscal year, approve

11 applications of additional sites for the program, including

12 sites that serve only elderly persons, in areas in which the

13 program currently does not operate, to the full extent that

14 applications can be approved within the appropriations

15 available for the program for the fiscal year and without

16 reducing actual participation levels (including participa17 tion of elderly persons under subsection (e)) in areas in

18 which the program is in effect.

19 (e) If a local agency that administers the commodity

20 supplemental food program determines that the amount of

21 funds made available to the agency to carry out this section

22 exceeds the amount of funds necessary to provide assistance

23 under such program to women, infants, and children, the

24 agency, with the approval of the Secretary, may permit
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1 low-income elderly persons (as defined by the Secretary) to

2 participate in and be served by such program.

3 (f)(1) If it is necessary for the Secretary to pay a sig4 nificantly higher than expected price for one or more types

5 of commodities purchased under this section, the Secretary

6 shall promptly determine whether the price is likely to cause

7 the number of persons that can be served in the program

8 in a fiscal year to decline.

9 (2) If the Secretary determines that such a decline

10 would occur, the Secretary shall promptly notify the State

11 agencies charged with operating the program of the decline

12 and shall ensure that a State agency notify all local agen13 cies operating the program in the State of the decline.

14 (g) Commodities distributed to States pursuant to this

15 section shall not be considered in determining the commod16 ity allocation to each State under section 105 or priority

17 of distribution under 106.

18 SEC. 111. COMMODITIES NOT INCOME.

19 Notwithstanding any other provision of law, commod20 ities distributed under this title shall not be considered in21 come or resources for purposes of determining recipient eli22 gibility under any Federal, State, or local means-tested pro23 gram.
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1 SEC. 112. PROHIBITION AGAINST CERTAIN STATE CHARGES.

2 Whenever a commodity is made available without

3 charge or credit under this title by the Secretary for dis4 tribution within the States to eligible recipient agencies, the

5 State may not charge recipient agencies any amount that

6 is in excess of the State’s direct costs of storing, and trans7 porting to recipient agencies the commodities minus any

8 amount the Secretary provides the State for the costs of stor9 ing and transporting such commodities.

10 SEC. 113. DEFINITIONS.

11 As used in this title:

12 (1) The term ‘‘average monthly number of unem13 ployed persons’’ means the average monthly number

14 of unemployed persons within a State in the most re15 cent fiscal year for which such information is avail16 able as determined by the Bureau of Labor Statistics

17 of the Department of Labor.

18 (2) The term ‘‘elderly persons’’ means individ19 uals 60 years of age or older.

20 (3) The term ‘‘eligible recipient agency’’ means

21 a public or nonprofit organization that administers—

22 (A) an institution providing commodities to

23 supplemental feeding programs serving women,

24 infants, and children or serving elderly persons,

25 or serving both groups;

26 (B) an emergency feeding organization;
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1 (C) a charitable institution (including a

2 hospitals and retirement home, but excluding a

3 penal institution) to the extent that such institu4 tion serves needy persons;

5 (D) a summer camp for children, or a child

6 nutrition program providing food service;

7 (E) a nutrition project operating under the

8 Older Americans Act of 1965, including such

9 project that operates a congregate nutrition site

10 and a project that provides home-delivered meals;

11 or

12 (F) a disaster relief program;

13 and that has been designated by the appropriate State

14 agency, or by the Secretary, and approved by the Sec15 retary for participation in the program established

16 under this title.

17 (4) The term ‘‘emergency feeding organization’’

18 means a public or nonprofit organization that ad19 ministers activities and projects (including the activi20 ties and projects of a charitable institution, a food

21 bank, a food pantry, a hunger relief center, a soup

22 kitchen, or a similar public or private nonprofit eligi23 ble recipient agency) providing nutrition assistance to

24 relieve situations of emergency and distress through
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1 the provision of food to needy persons, including low2 income and unemployed persons.

3 (5) The term ‘‘food bank’’ means a public and

4 charitable institution that maintains an established

5 operation involving the provision of food or edible

6 commodities, or the products thereof, to food pantries,

7 soup kitchens, hunger relief centers, or other food or

8 feeding centers that, as an integral part of their nor9 mal activities, provide meals or food to feed needy

10 persons on a regular basis.

11 (6) The term ‘‘food pantry’’ means a public or

12 private nonprofit organization that distributes food to

13 low-income and unemployed households, including

14 food from sources other than the Department of Agri15 culture, to relieve situations of emergency and dis16 tress.

17 (7) The term ‘‘needy persons’’ means—

18 (A) individuals who have low incomes or

19 who are unemployed, as determined by the State

20 (in no event shall the income of such individual

21 or household exceed 185 percent of the poverty

22 line);

23 (B) households certified as eligible to par24 ticipate in the food stamp program under the
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1 Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);

2 or

3 (C) individuals or households participating

4 in any other Federal, or federally assisted,

5 means-tested program.

6 (8) The term ‘‘poverty line’’ has the same mean7 ing given such term in section 673(2) of the Commu8 nity Services Block Grant Act (42 U.S.C. 9902(2)).

9 (9) The term ‘‘soup kitchen’’ means a public and

10 charitable institution that, as integral part of its nor11 mal activities, maintains an established feeding oper12 ation to provide food to needy homeless persons on a

13 regular basis.

14 SEC. 114. REGULATIONS.

15 (a) The Secretary shall issue regulations within 120

16 days to implement this title.

17 (b) In administering this subtitle, the Secretary shall

18 minimize, to the maximum extent practicable, the regu19 latory, recordkeeping, and paperwork requirements imposed

20 on eligible recipient agencies.

21 (c) The Secretary shall as early as feasible but not later

22 than the beginning of each fiscal year, publish in the Fed23 eral Register a nonbinding estimate of the types and quan24 tities of commodities that the Secretary anticipates are like-
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1 ly to be made available under the commodity distribution

2 program under this title during the fiscal year.

3 (d) The regulations issued by the Secretary under this

4 section shall include provisions that set standards with re5 spect to liability for commodity losses for the commodities

6 distributed under this title in situations in which there is

7 no evidence of negligence or fraud, and conditions for pay8 ment to cover such losses. Such provisions shall take into

9 consideration the special needs and circumstances of eligible

10 recipient agencies.

11 SEC. 115. FINALITY OF DETERMINATIONS.

12 Determinations made by the Secretary under this title

13 and the facts constituting the basis for any donation of com14 modities under this title, or the amount thereof, when offi15 cially determined in conformity with the applicable regula16 tions prescribed by the Secretary, shall be final and conclu17 sive and shall not be reviewable by any other officer or agen18 cy of the Government.

19 SEC. 116. SALE OF COMMODITIES PROHIBITED.

20 Except as otherwise provided in section 107, none of

21 the commodities distributed under this title shall be sold

22 or otherwise disposed of in commercial channels in any

23 form.
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1 SEC. 117. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

2 (a) The Secretary, or a designee of the Secretary, shall

3 have the authority to—

4 (1) determine the amount of, settle, and adjust

5 any claim arising under this title; and

6 (2) waive such a claim is the Secretary deter7 mines that to do so will serve the purposes of this

8 title.

9 (b) Nothing contained in this section shall be construed

10 to diminish the authority of the Attorney General of the

11 United States under section 516 of title 28, United States

12 Code, to conduct litigation on behalf of the United States.

13 SEC. 118. REPEALERS; AMENDMENTS.

14 (a) The Emergency Food Assistance Act of 1983 (7

15 U.S.C. 612c note) is repealed.

16 (b) AMENDMENTS.—

17 (1) The Hunger Prevention Act of 1988 (7

18 U.S.C. 612c note) is amended—

19 (A) by striking section 110;

20 (B) by striking subtitle C of title II; and

21 (C) by striking section 502.

22 (2) The Commodity Distribution Reform Act

23 and WIC Amendments of 1987 (7 U.S.C. 612c note)

24 is amended by striking section 4.
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1 (3) The Charitable Assistance and Food Bank

2 Act of 1987 (7 U.S.C. 612c note) is amended by strik3 ing section 3.

4 (4) The Food Security Act of 1985 (7 U.S.C.

5 612c note) is amended—

6 (A) by striking section 1571; and

7 (B) in section 1562(d), by striking ‘‘section

8 4 of the Agricultural and Consumer Protection

9 Act of 1973’’ and inserting ‘‘section 110 of the

10 Commodity Distribution Act of 1995’’.

11 (5) The Agricultural and Consumer Protection

12 Act of 1973 (7 U.S.C. 612c note) is amended—

13 (A) in section 4(a), by striking ‘‘institutions

14 (including hospitals and facilities caring for

15 needy infants and children), supplemental feed16 ing programs serving women, infants and chil17 dren or elderly persons, or both, wherever located,

18 disaster areas, summer camps for children’’ and

19 inserting ‘‘disaster areas’’;

20 (B) in subsection 4(c), by striking ‘‘the

21 Emergency Food Assistance Act of 1983’’ and in22 serting ‘‘the Commodity Distribution Act of

23 1995’’; and

24 (C) by striking section 5.
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1 (6) The Food, Agriculture, Conservation, and

2 Trade Act of 1990 (7 U.S.C. 612c note) is amended

3 by striking section 1773(f).

4 TITLE II—SIMPLIFICATION AND REFORM

5 OF FOOD STAMP PROGRAM

6 SEC. 201. SHORT TITLE.

7 This title may be cited as the ‘‘Food Stamp Sim8 plification and Reform Act of 1995’’.

9 Subtitle A—Simplified Food Stamp Program

10 and State Assistance for Needy Families

11 SEC. 202. ESTABLISHMENT OF SIMPLIFIED FOOD STAMP

12 PROGRAM.

13 Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C.

14 2013(a)) is amended—

15 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

16 (2) by adding at the end the following new para17 graph:

18 ‘‘(2) At the request of the State agency, a State may

19 operate a program, as provided in section 24, within the

20 State or any political subdivisions within the State in

21 which households with one or more members receiving regu22 lar cash benefits under the program established by the State

23 under the Temporary Assistance for Needy Families Block

24 Grant be issued food stamp benefits in accordance with the

25 rules and procedures established—
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1 ‘‘(A) by the State under the Temporary Assist2 ance for Needy Families Block Grant or this Act; or

3 ‘‘(B) under the food stamp program.’’.

4 SEC. 203. SIMPLIFIED FOOD STAMP PROGRAM.

5 (a) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

6 seq.) is amended by adding the following new section:

7 ‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

8 ‘‘(a) If a State elects to operate a program under sec9 tion 4(a)(2) within the State or any political subdivision

10 within the State—

11 ‘‘(1) households in which all members receive reg12 ular cash benefits under the program established by

13 the State under the Temporary Assistance for Needy

14 Families Block Grant shall be automatically eligible

15 to participate in the food stamp program;

16 ‘‘(2) benefits under such program shall be deter17 mined under the rules and procedures established by

18 the State or political subdivision under the Tem19 porary Assistance for Needy Families Block Grant or

20 under the food stamp program, subject to subsection

21 (g).

22 ‘‘(b) In approving a State plan to carry out a program

23 under section 4(a)(2), the Secretary shall certify that the

24 average level of food stamp benefits per household partici25 pating in the program under such section for the State or
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1 political subdivision in which such program is in operation

2 is not expected to exceed the average level of food stamp

3 benefits per household that received benefits under the pro4 gram established by a State under the part A of title IV

5 of the Social Security Act (42 U.S.C. 601 et seq.) in such

6 area in the preceding fiscal year, adjusted for any changes

7 in the thrifty food plan under section 3(o). The Secretary

8 shall compute the permissible average level of food stamp

9 benefits per household each year for each State or political

10 subdivision in which such program is in operation and

11 may require a State to report any information necessary

12 to make such computation.

13 ‘‘(c) When the Secretary determines that the average

14 level of food stamp benefits per household provided by the

15 State or political subdivision under such program has ex16 ceeded the permissible average level of food stamp benefits

17 per household for the State or political subdivision in which

18 the program was in operation, the State or political sub19 division shall pay to the Treasury of the United States the

20 value of the food stamp benefits in excess of the permissible

21 average level of food stamp benefits per household in the

22 State or political subdivision within 90 days after the noti23 fication of such excess payments.

24 ‘‘(d)(1) A household against which a penalty is im25 posed (including a reduction in benefits or disqualification)
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1 for noncompliance with the program established by the

2 State under the Temporary Assistance for Needy Families

3 Block Grant may have the same penalty imposed against

4 it (including a reduction in benefits or disqualification) in

5 the program administered under this section.

6 ‘‘(2) If the penalty for noncompliance with the pro7 gram established by the State under the Temporary Assist8 ance for Needy Families Block Grant is a reduction in bene9 fits in such program, the household shall not receive an in10 creased allotment under the program administered under

11 this section as a result of a decrease in the household’s in12 come (as determined by the State under this section) caused

13 by such penalty.

14 ‘‘(3) Any household disqualified from the program ad15 ministered under this subsection may, after such disquali16 fication period has expired, apply for food stamp benefits

17 under this Act and shall be treated as a new applicant.

18 ‘‘(e) If a State or political subdivision, at its option,

19 operates a program under section 4(a)(2) for households

20 that include any member who does not receive regular cash

21 benefits under the program established by the State under

22 the Temporary Assistance for Needy Families Block Grant,

23 the Secretary shall ensure that the State plan provides that

24 household eligibility shall be determined under this Act,

25 benefits may be determined under the rules and procedures
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1 established by the State under the Temporary Assistance

2 for Needy Families Block Grant or this Act, and benefits

3 provided under this section shall be equitably distributed

4 among all household members.

5 ‘‘(f)(1) Under the program operated under section

6 4(a)(2), the State may elect to provide cash assistance in

7 lieu of allotments to all households that include a member

8 who is employed and whose employment produces for the

9 benefit of the member’s household income that satisfies the

10 requirements of paragraph (2).

11 ‘‘(2) The State, in electing to provide cash assistance

12 under paragraph (1), at a minimum shall require that such

13 earned income is—

14 ‘‘(A) not less than $350 per month;

15 ‘‘(B) earned from employment provided by a

16 nongovernmental employer, as determined by the

17 State; and

18 ‘‘(C) received from the same employer for a pe19 riod of employment of not less than 3 consecutive

20 months.

21 ‘‘(3) If a State that makes the election described in

22 paragraph (1) identifies each household that receives cash

23 assistance under this subsection—

24 ‘‘(A) the Secretary shall pay to the State an

25 amount equal to the value of the allotment that such
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1 household would be eligible to receive under this sec2 tion but for the operation of this subsection;

3 ‘‘(B) the State shall provide such amount to the

4 household as cash assistance in lieu of such allotment;

5 and

6 ‘‘(C) for purposes of food stamp program (other

7 than this section and section 4(a)(2))—

8 ‘‘(i) such cash assistance shall be considered

9 to be an allotment; and

10 ‘‘(ii) such household shall not receive any

11 other food stamp benefit for the period for which

12 such cash assistance is provided.

13 ‘‘(4) A State that makes the election in paragraph (1)

14 shall—

15 ‘‘(A) increase the cash benefits provided to house16 holds under this subsection to compensate for any

17 State or local sales tax that may be collected on pur18 chases of food by any household receiving cash benefits

19 under this subsection, unless the Secretary determines

20 on the basis of information provided by the State that

21 the increase is unnecessary on the basis of the limited

22 nature of the items subject to the State or local sales

23 tax; and

24 ‘‘(B) pay the cost of any increase in cash benefits

25 required by paragraph (1).
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1 ‘‘(5) After a State operates a program under this sub2 section for 2 years, the State shall provide to the Secretary

3 a written evaluation of the impact of cash assistance.

4 ‘‘(g) In operating a program under section 4(a)(2), the

5 State or political subdivision may follow the rules and pro6 cedures established by the State or political subdivision

7 under the Temporary Assistance for Needy Families Block

8 Grant or under the food stamp program, except that the

9 State or political subdivision shall comply with the require10 ments of—

11 ‘‘(1) subsections (a) through (g) of section 7 (re12 lating to the issuance and use of coupons);

13 ‘‘(2) section 8(a) (relating to the value of allot14 ments, except that a household’s income may be deter15 mined under the program established by the State

16 under the Temporary Assistance for Needy Families

17 Block Grant);

18 ‘‘(3) section 8(b) (allotment not considered in19 come or resources);

20 ‘‘(4) subsections (a), (c), (d), and (n) of section

21 11 (relating to administration);

22 ‘‘(5) paragraphs (8), (12), (17), (19), (21), (26),

23 and (27) of section 11(e) (relating to the State plan);

24 ‘‘(6) section 11(e)(10) (relating to a fair hearing)

25 or a comparable requirement established by the State
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1 under the Temporary Assistance for Needy Families

2 Block Grant; and

3 ‘‘(7) section 16 (relating to administrative cost4 sharing and quality control).’’.

5 (b) Section 11(e) of the Food Stamp Act of 1977 (7

6 U.S.C. 2020(e)) is amended—

7 (1) in paragraph (24), by striking ‘‘and’’ at the

8 end;

9 (2) in paragraph (25), by striking the period at

10 the end and inserting ‘‘; and’’; and

11 (3) by adding at the end the following new para12 graph:

13 ‘‘(26) the plans of the State agency for operating,

14 at the election of the State, a program under section

15 (4)(a)(2), including—

16 ‘‘(A) the rules and procedures to be followed

17 by the State to determine food stamp benefits;

18 ‘‘(B) a statement specifying whether the

19 program operated by the State under section

20 4(a)(2) will include households that include

21 members who do not receive regular cash benefits

22 under the program established by the State

23 under the Temporary Assistance for Needy Fam24 ilies Block Grant; and
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1 ‘‘(C) a description of the method by which

2 the State or political subdivision will carry out

3 a quality control system under section 16(c).’’.

4 SEC. 204. CONFORMING AMENDMENTS.

5 (a) Section 8 of the Food Stamp Act of 1977 (7 U.S.C.

6 2017) is amended by striking subsection (e).

7 (b) Section 17 of the Food Stamp Act of 1977 (7 U.S.C.

8 2026) is amended—

9 (1) by striking subsection (i); and

10 (2) by redesignating subsections (j), (k), and (l)

11 as subsections (i), (j), and (k), respectively.

12 Subtitle B—Food Stamp Program

13 SEC. 205. THRIFTY FOOD PLAN.

14 Section 3(o) of the Food Stamp Act of 1977 (7 U.S.C.

15 2012(o)) is amended by striking ‘‘(4) through January 1,

16 1980, adjust the cost of such diet every January 1 and July

17 1’’ and all that follows through the end of the subsection,

18 and inserting the following: ‘‘(4) on October 1, 1995, adjust

19 the cost of the thrifty food plan to reflect 103 percent of

20 the cost of the thrifty food plan in June 1994 and increase

21 such amount by 2 percent, rounding the result to the nearest

22 lower dollar increment for each household size; and (5) on

23 October 1, 1996, and each October 1 thereafter, increase the

24 amount established for the preceding October 1, before such
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1 amount was rounded, by 2 percent, rounding the result to

2 the nearest lower dollar increment for each household size.’’.

3 SEC. 206. INCOME DEDUCTIONS AND ENERGY ASSISTANCE.

4 (a) Section 5(d)(11) of the Food Stamp Act of 1977

5 (7 U.S.C. 2014(d)(11)) is amended—

6 (1) by striking ‘‘(A)’’; and

7 (2) by striking ‘‘or (B) under any State or local

8 laws,’’ and all that follows through ‘‘or impracticable

9 to do so,’’.

10 (b) Section 5(e) of the Food Stamp Act of 1977 (7

11 U.S.C. 2014(e)) is amended to read as follows:

12 ‘‘(e)(1) STANDARD AND EARNED INCOME DEDUC13 TIONS.—(A) In computing household income, the Secretary

14 shall allow a standard deduction of $134 a month for each

15 household, except that households in Alaska, Hawaii,

16 Guam, and the Virgin Islands of the United States shall

17 be allowed a standard deduction of $229, $189, $269, and

18 $118, respectively.

19 ‘‘(B) All households with earned income shall also be

20 allowed an additional deduction of 20 percent of all earned

21 income (other than that excluded by subsection (d) of this

22 section and that earned under section 16(j)), to compensate

23 for taxes, other mandatory deductions from salary, and

24 work expenses, except that such additional deduction shall

25 not be allowed with respect to earned income that a house-
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1 hold willfully or fraudulently fails (as proven in a proceed2 ing provided for in section 6(b)) to report in a timely man3 ner.

4 ‘‘(2) DEPENDENT CARE DEDUCTION.—The Secretary

5 shall allow households a deduction with respect to expenses

6 other than expenses paid on behalf of the household by a

7 third party or amounts made available and excluded for

8 the expenses under subsection (d)(3), the maximum allow9 able level of which shall be $200 a month for each dependent

10 child under 2 years of age and $175 a month for each other

11 dependent, for the actual cost of payments necessary for the

12 care of a dependent when such care enables a household

13 member to accept or continue employment, or training or

14 education which is preparatory for employment.

15 ‘‘(3) EXCESS SHELTER EXPENSE DEDUCTION.—(A)

16 The Secretary shall allow households, other than those

17 households containing an elderly or disabled member, with

18 respect to expenses other than expenses paid on behalf of

19 the household by a third party, an excess shelter expense

20 deduction to the extent that the monthly amount expended

21 by a household for shelter exceeds an amount equal to 50

22 percent of monthly household income after all other applica23 ble deductions have been allowed.

24 ‘‘(B) Such excess shelter expense deduction shall not

25 exceed $231 a month in the 48 contiguous States and the
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1 District of Columbia, and shall not exceed, in Alaska, Ha2 waii, Guam, and the Virgin Islands of the United States,

3 $402, $330, $280, and $171 a month, respectively.

4 ‘‘(C)(i) Notwithstanding section 2605(f) of the Low-In5 come Home Energy Assistance Act of 1981 (42 U.S.C.

6 8624(f)), a household may not claim as a shelter expense

7 any payment received, or costs paid on its behalf, under

8 the Low-Income Home Energy Assistance Act of 1981 (42

9 U.S.C. 8621 et seq.).

10 ‘‘(ii) Notwithstanding section 2605(f) of the Low-In11 come Home Energy Assistance Act of 1981 (42 U.S.C.

12 8624(f)), a State agency may use a standard utility allow13 ance as provided under subparagraph (D) for heating and

14 cooling expenses only if the household incurs out-of-pocket

15 heating or cooling expenses in excess of any payment re16 ceived, or costs paid on its behalf, under the Low-Income

17 Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et

18 seq.).

19 ‘‘(iii) For purposes of the food stamp program, assist20 ance provided under the Low-Income Home Energy Assist21 ance Act of 1981 shall be considered to be prorated over

22 the entire heating or cooling season for which it was pro23 vided.

24 ‘‘(iv) At the end of any certification period and up

25 to one additional time during each twelve-month period, a
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1 State agency shall allow a household to switch between any

2 standard utility allowance and a deduction based on its

3 actual utility costs.

4 ‘‘(D)(i) In computing the excess shelter expense deduc5 tion, a State agency may use a standard utility allowance

6 in accordance with regulations promulgated by the Sec7 retary, except that a State agency may use an allowance

8 which does not fluctuate within a year to reflect seasonal

9 variations.

10 ‘‘(ii) An allowance for a heating or cooling expense

11 may not be used for a household that does not incur a heat12 ing or cooling expense, as the case may be, or does incur

13 a heating or cooling expense but is located in a public hous14 ing unit which has central utility meters and charges house15 holds, with regard to such expense, only for excess utility

16 costs.

17 ‘‘(iii) No such allowance may be used for a household

18 that shares such expense with, and lives with, another indi19 vidual not participating in the food stamp program, an20 other household participating in the food stamp program,

21 or both, unless the allowance is prorated between the house22 hold and the other individual, household, or both.

23 ‘‘(4) HOMELESS SHELTER DEDUCTION.—

24 ‘‘(A) A State shall develop a standard homeless

25 shelter deduction, which shall not exceed $139 a
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1 month, for the expenses that may reasonably be ex2 pected to be incurred by households in which all mem3 bers are homeless but are not receiving free shelter

4 throughout the month. Subject to subparagraph (B),

5 the State shall use such deduction in determining the

6 eligibility and allotments for such households.

7 ‘‘(B) The Secretary may prohibit the use of the

8 standard homeless shelter deduction for households

9 with extremely low shelter costs.

10 ‘‘(5) ELDERLY AND DISABLED HOUSEHOLDS.—(A)

11 The Secretary shall allow households containing an elderly

12 or disabled member, with respect to expenses other than ex13 penses paid on behalf of the household by a third party—

14 ‘‘(i) an excess medical expense deduction for that

15 portion of the actual cost of allowable medical ex16 penses, incurred by elderly or disabled members, ex17 clusive of special diets, that exceed $35 a month; and

18 ‘‘(ii) an excess shelter expense deduction to the

19 extent that the monthly amount expended by a house20 hold for shelter exceeds an amount equal to 50 percent

21 of monthly household income after all other applicable

22 deductions have been allowed.

23 ‘‘(B) State agencies shall offer eligible households a

24 method of claiming a deduction for recurring medical ex25 penses that are initially verified under the excess medical
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1 expense deduction provided for in subparagraph (A), in lieu

2 of submitting information or verification on actual expenses

3 on a monthly basis. The method described in the preceding

4 sentence shall be designed to minimize the administrative

5 burden for eligible elderly and disabled household members

6 choosing to deduct their recurrent medical expenses pursu7 ant to such method, shall rely on reasonable estimates of

8 the member’s expected medical expenses for the certification

9 period (including changes that can be reasonably antici10 pated based on available information about the member’s

11 medical condition, public or private medical insurance cov12 erage, and the current verified medical expenses incurred

13 by the member), and shall not require further reporting or

14 verification of a change in medical expenses if such a

15 change has been anticipated for the certification period.

16 ‘‘(6) CHILD SUPPORT DEDUCTION.—Before determin17 ing the excess shelter expense deduction, the Secretary shall

18 allow all households a deduction for child support payments

19 made by a household member to or for an individual who

20 is not a member of the household if such household member

21 was legally obligated to make such payments, except that

22 the Secretary is authorized to prescribe by regulation the

23 methods, including calculation on a retrospective basis, that

24 State agencies shall use to determine the amount of the de25 duction for child support payments.’’.
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1 (c) Section 11(e)(3) of the Food Stamp Act of 1977

2 (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘Under the

3 rules prescribed by the Secretary, a State agency shall de4 velop standard estimates’’ and all that follows through the

5 end of the paragraph.

6 SEC. 207. VEHICLE ALLOWANCE.

7 Section 5(g)(2) of the Food Stamp Act of 1977 (7

8 U.S.C. 2014(g)(2)) is amended by striking ‘‘a level set by

9 the Secretary, which shall be $4,500 through August 31,

10 1994,’’ and all that follows through the end of the para11 graph, and inserting ‘‘$4,550.’’.

12 SEC. 208. ELIGIBILITY OF ALIENS.

13 (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C.

14 2014) is amended—

15 (1) by striking subsection (i); and

16 (2) by redesignating subsections (j) through (m)

17 as subsections (i) through (l), respectively.

18 (b) Section 6(f)(2) of the Food Stamp Act of 1977 (7

19 U.S.C. 2015(f)(2)) is amended—

20 (1) in subparagraph (B), by inserting the follow21 ing before the semicolon: ‘‘, and such alien has ful22 filled the residence requirements and has an applica23 tion pending for naturalization under the Immigra24 tion and Nationality Act, or is a veteran (as defined

25 in section 101 of title 38, United States Code) with
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1 a discharge characterized as an honorable discharge

2 (or is spouse or dependent child of such alien), is on

3 active duty (other than active duty for training) in

4 the Armed Forces of the United States (or is the

5 spouse or dependent child of such alien), or is at least

6 75 years of age and has resided in the United States

7 for at least 5 years’’; and

8 (2) in subparagraph (D), by inserting ‘‘, but

9 such alien shall be eligible only for five years after

10 such entry’’ before the semicolon.

11 SEC. 209. WORK REQUIREMENTS.

12 (a) Section 6(d) of the Food Stamp Act of 1977 (42

13 U.S.C. 2015(d)) is amended—

14 (1) in paragraph (1)(A)(i), by striking ‘‘an em15 ployment and training program under paragraph

16 (4), to the extent required under paragraph (4), in17 cluding any reasonable employment requirements as

18 are prescribed by the State agency in accordance with

19 paragraph (4)’’ and inserting ‘‘a State job search pro20 gram’’;

21 (2) in paragraph (2)(A)—

22 (A) by striking ‘‘title IV of the Social Secu23 rity Act (42 U.S.C. 602)’’ and inserting ‘‘the

24 program established by the State under the Tem-
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1 porary Assistance for Needy Families Block

2 Grant’’; and

3 (B) by striking ‘‘that is comparable to a re4 quirement of paragraph (1)’’; and

5 (3) by amending paragraph (4), to read as fol6 lows:

7 ‘‘(4)(A) Except as provided in subparagraphs

8 (B), (C), and (D), an individual shall not be denied

9 initial eligibility but shall be disqualified from the

10 food stamp program if after 90 days from the certifi11 cation of eligibility of such individual the individual

12 was not employed a minimum of 20 hours per week,

13 or does not participate in a program established

14 under section 20 or a comparable program established

15 by the State or local government.

16 ‘‘(B) Subparagraph (A) shall not apply in the

17 case of an individual who—

18 ‘‘(i) is under eighteen or over fifty years of

19 age;

20 ‘‘(ii) is certified by a physician as phys21 ically or mentally unfit for employment;

22 ‘‘(iii) is a parent or other member of a

23 household with responsibility for the care of a de24 pendent; or
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1 ‘‘(iv) is participating a minimum of 20

2 hours per week and is in compliance with the re3 quirements of—

4 ‘‘(I) a program under the Job Train5 ing Partnership Act (29 U.S.C. 1501 et

6 seq.);

7 ‘‘(II) a program under section 236 of

8 the Trade Act of 1974 (19 U.S.C. 2296); or

9 ‘‘(III) a program of employment or

10 training operated or supervised by a agency

11 of State or local government which meets

12 standards deemed appropriate by the Gov13 ernor; or

14 ‘‘(v) would otherwise be exempt under sub15 section (d)(2).

16 ‘‘(C) Upon request of the State, the Secretary

17 may waive the requirements of subparagraph (A) in

18 the case of some or all individuals within all or part

19 of the State if the Secretary makes a determination

20 that such area—

21 ‘‘(i) has an unemployment rate of over 10

22 percent; or

23 ‘‘(ii) does not have a sufficient number of

24 jobs to provide employment for individuals sub25 ject to this paragraph. The Secretary shall report
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1 to the Committee on Agriculture of the House of

2 Representatives and the Committee on Agri3 culture, Nutrition, and Forestry of the Senate on

4 the basis on which the Secretary made such a de5 cision.

6 ‘‘(D) An individual who has been disqualified

7 from the food stamp program under subparagraph

8 (A) may reestablish eligibility for assistance if such

9 person becomes exempt under subparagraph (B) or

10 by—

11 ‘‘(i) becoming employed for a minimum of

12 20 hours per week during any consecutive thirty13 day period; or

14 ‘‘(ii) participating in a program established

15 under section 20 or a comparable program estab16 lished by the State or local government.’’.

17 (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C.

18 2025) is amended—

19 (1) by striking subsection (h); and

20 (2) by redesignating subsections (i) and (j) as

21 subsections (h) and (i), respectively.

22 (c) Section 17 of the Food Stamp Act of 1977 (7 U.S.C.

23 2026), as amended by section 204(b), is amended—

24 (1) by striking subsection (d); and
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1 (2) by redesignating subsections (e) through (k)

2 as subsections (d) through (j), respectively.

3 (d) Section 20 of the Food Stamp Act of 1977 (7

4 U.S.C. 2029) is amended to read as follows:

5 ‘‘SEC. 20. (a)(1) The Secretary shall permit a State

6 that applies and submits a plan in compliance with guide7 lines promulgated by the Secretary to operate a program

8 within the State or any political subdivision within the

9 State, under which persons who are required to work under

10 section 6(d)(4) may accept an offer from the State or politi11 cal subdivision to perform work on its behalf, or on behalf

12 of a private nonprofit entity designated by the state or po13 litical subdivision, in order to continue to qualify for bene14 fits after they have initially been judged eligible.

15 ‘‘(2) The Secretary shall promulgate guidelines pursu16 ant to paragraph (1) which, to the maximum extent prac17 ticable, enable a State or political subdivision to design and

18 operate a program that is compatible and consistent with

19 similar programs operated by the State or political subdivi20 sion.

21 ‘‘(b) To be approved by the Secretary, a program shall

22 provide that participants work, in return for compensation

23 consisting of the allotment to which the household is entitled

24 under section 8(a), with each hour of such work entitling

25 that household to a portion of its allotment equal in value
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1 to 100 percent of the higher of the applicable State mini2 mum wage or the Federal minimum hourly rate under the

3 Fair Labor Standards Act of 1938.

4 ‘‘(c) No State or political subdivision that receives

5 funds provided under this section shall replace any em6 ployed worker with an individual who is participating in

7 a program under this section for the purposes of complying

8 with section 6(d)(4). Such an individual may be placed in

9 any position offered by the state or political subdivision

10 that—

11 ‘‘(1) is a new position;

12 ‘‘(2) is a position that became available in the

13 normal course of conducting the business of the State

14 or political subdivision;

15 ‘‘(3) involves performing work that would other16 wise be performed on an overtime basis by a worker

17 who is not an individual participating in such pro18 gram; or

19 ‘‘(4) that is a position which became available by

20 shifting a current employee to an alternate position.

21 ‘‘(d) The Secretary shall allocate among the States or

22 political subdivisions in each fiscal year, from funds appro23 priated for the fiscal year under section 18(a)(1), the

24 amount of $75,000,000 to assist in carrying out the pro25 gram under this section during the fiscal year.
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1 ‘‘(e)(1) In making the allocation required under sub2 section (d), the Secretary shall allocate to each State operat3 ing a program under this section that percentage of the total

4 funds allocated under subsection (d) which equals the esti5 mate of the Secretary of the percentage of participants who

6 are required to work under section 6(d)(4) that reside in

7 such State.

8 ‘‘(2) The State shall promptly notify the Secretary if

9 such state determines that it will not expend the funds allo10 cated it under paragraph (1) and the Secretary shall reallo11 cate such funds as the Secretary deems appropriate and eq12 uitable.

13 ‘‘(f) Notwithstanding subsection (d), the Secretary

14 shall ensure that each State operating a program under this

15 section is allocated at least $50,000 by reducing, to the ex16 tent necessary, the funds allocated to those States allocated

17 more than $50,000.

18 ‘‘(g) If, in carrying out such program during such fis19 cal year, a State or political subdivision incurs costs that

20 exceed the amount allocated to the State agency under sub21 section (d)—

22 ‘‘(1) the Secretary shall pay such state agency

23 an amount equal to 50 percent of such additional

24 costs, subject to the first limitation in paragraph (2);

25 and
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1 ‘‘(2) the Secretary shall also reimburse each

2 State agency in an amount equal to 50 percent of the

3 total amount of payments made or costs incurred by

4 the State or political subdivision in connection with

5 transportation costs and other expenses reasonably

6 necessary and directly related to participation in a

7 program under this section, except that such total

8 amount shall not exceed an amount representing $25

9 per participant per month for costs of transportation

10 and other actual costs and cash reimbursement shall

11 not be made out of funds allocated under subsection

12 (d).

13 ‘‘(h) The Secretary may suspend or cancel some or all

14 of these payments, or may withdraw approval from a State

15 or political subdivision to operate a program, upon a find16 ing that the State or political subdivision has failed to com17 ply with the requirements of this section.’’.

18 (e) Section 7(i)(6) of the Food Stamp Act of 1977 (7

19 U.S.C. 2015(i)(6)) is amended by striking ‘‘section 17(f)’’

20 and inserting ‘‘17(e)’’.

21 SEC. 210. COMPARABLE TREATMENT OF DISQUALIFIED IN22 DIVIDUALS.

23 Section 6 of the Food Stamp Act of 1977 (7 U.S.C.

24 2015) is amended by adding at the end the following new

25 subsection:
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1 ‘‘(i) An individual who is a member of a household

2 who would otherwise be eligible to participate in the food

3 stamp program under this section and who has been dis4 qualified for noncompliance with program requirements

5 from the program established by the State under part A

6 of title IV of the Social Security Act (42 U.S.C. 601 et seq.)

7 shall not be eligible to participate in the food stamp pro8 gram during the period such disqualification is in effect.’’.

9 SEC. 211. ENCOURAGE ELECTRONIC BENEFIT TRANSFER

10 SYSTEMS.

11 (a) Section 7(i) of the Food Stamp Act of 1977 (7

12 U.S.C. 201(i)) is amended—

13 (1) by amending paragraph (1) to read as fol14 lows:

15 ‘‘(1)(A) State agencies are encouraged to imple16 ment an on-line electronic benefit transfer system in

17 which household benefits determined under section

18 8(a) or section 24 are issued from and stored in a

19 central data bank and electronically accessed by

20 household members at the point-of-sale.

21 ‘‘(B) Subject to paragraph (2), a State is author22 ized to procure and implement an on-line electronic

23 benefit transfer system under the terms, conditions,

24 and design that the State deems appropriate.
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1 ‘‘(C) Upon request of a State, the Secretary may

2 waive any provision of this Act prohibiting the effec3 tive implementation of an electronic benefit transfer

4 system under this subsection.’’;

5 (2) in paragraph (2), by striking ‘‘the approval

6 of’’; and

7 (3) in paragraph (3), by striking ‘‘the Secretary

8 shall not approve such a system unless—’’ and insert9 ing ‘‘such system shall provide that—’’.

10 (b) The Food Stamp Act of 1977 (7 U.S.C. 2011 et

11 seq.), as amended by section 203(a), is amended by adding

12 at the end the following new section:

13 ‘‘SEC. 25. ENCOURAGEMENT OF ELECTRONIC BENEFIT

14 TRANSFER SYSTEMS.

15 ‘‘(a) Upon fully implementing an electronic benefit

16 transfer system which operates in the entire State, a State

17 may, subject to the provisions of this section, elect to receive

18 a grant for any fiscal year to operate a low-income nutri19 tion assistance program in such fiscal year in lieu of the

20 food stamp program.

21 ‘‘(b)(1) A State that meets the requirements of this sec22 tion and elects to operate such program, shall receive each

23 fiscal year under this section sum of—
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1 ‘‘(A)(i) the total dollar value of all benefits is2 sued under the food stamp program by the State dur3 ing fiscal year 1994; or

4 ‘‘(ii) the average per fiscal year of the total dol5 lar value of all benefits issued under the food stamp

6 program by the State during fiscal years 1992

7 through 1994; and

8 ‘‘(B) the total amount received by the State for

9 administrative costs under section 16(a) for fiscal

10 year 1994 or the average per fiscal year of the total

11 amount received by the State for administrative costs

12 under section 16(a) for fiscal years 1992 through

13 1994.

14 ‘‘(2) Upon approval by the Secretary of the plan sub15 mitted by a State under subsection (c), the Secretary shall

16 pay to the State at such times and in such manner as the

17 Secretary may determine, the amount to which the State

18 is eligible under subsection (b)(1).

19 ‘‘(c) To be eligible to operate a low-income nutrition

20 assistance program under this section, a State shall submit

21 for approval each fiscal year a plan of operation specifying

22 the manner in which such a program will be conducted by

23 the State. Such plan shall—
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1 ‘‘(1) certify that the State has implemented a

2 state-wide electronic benefit transfer system in accord3 ance with section 7(i);

4 ‘‘(2) designate a single State agency responsible

5 for the administration of the low-income nutrition as6 sistance program under this section;

7 ‘‘(3) assess the food and nutrition needs of needy

8 persons residing in the State;

9 ‘‘(4) limit the assistance to be provided under

10 this section to the purchase of food;

11 ‘‘(5) describe the persons to whom such assistance

12 will be provided;

13 ‘‘(6) assure the Secretary that assistance will be

14 provided to the most needy persons in the State and

15 that applicants for assistance shall have adequate no16 tice and fair hearings comparable to those required

17 under section 11;

18 ‘‘(7) provide that, in the operation of the low-in19 come nutrition assistance program, there shall be no

20 discrimination on the basis of race, sex, religion, na21 tional origin, or political beliefs; and

22 ‘‘(8) include other information as may be re23 quired by the Secretary.

24 ‘‘(d) Payments made under this section to the State

25 may be expended only in the fiscal year for which such pay-
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1 ments are distributed, except that the State may reserve up

2 to 5 percent of the grant received for a fiscal year to provide

3 assistance under this section in the subsequent fiscal year:

4 Provided, That such reserved funds may not total more than

5 20 percent of the total grant received under this section for

6 a fiscal year.

7 ‘‘(e) The State agency shall keep records concerning the

8 operation of the program carried out under this section and

9 shall make such records available to the Secretary and the

10 Comptroller General of the United States.

11 ‘‘(f) If the Secretary finds that there is substantial fail12 ure by a State to comply with the requirements of this sec13 tion, regulations issued pursuant to this section, or the plan

14 approved under subsection (c), then the Secretary shall take

15 one or more of the following actions:

16 ‘‘(1) Suspend all or part of such payment au17 thorized by subsection (b)(2) to be made available to

18 such State, until the Secretary determines the State

19 to be in substantial compliance with such require20 ments.

21 ‘‘(2) Withhold all or part of such payments until

22 the Secretary determines that there is no longer fail23 ure to comply with such requirements, at which time

24 the withheld payment may be paid.
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1 ‘‘(3) Terminate the authority of the State to op2 erate the low-income nutrition assistance program.

3 ‘‘(g)(1) States which receive grants under this section

4 shall provide for—

5 ‘‘(A) a biennial audit, conducted in accordance

6 with the standards of the Comptroller General, of ex7 penditures for the provision of nutrition assistance

8 under this section; and

9 ‘‘(B) not later than 120 days of the end of each

10 fiscal year in which an audit is conducted, provide

11 the Secretary with such audit.

12 States shall make the report of such audit available for pub13 lic inspection.

14 ‘‘(2) Not later than 120 days after the end of the fiscal

15 year for which a State receives a grant under this section,

16 such State shall prepare an activities report comparing ac17 tual expenditures for such fiscal year for nutrition assist18 ance under this section with the expenditures for such fiscal

19 year predicted in the plan submitted in accordance with

20 subsection (c). Such State shall make the activities report

21 available for public inspection.

22 ‘‘(h) Whoever knowingly and willfully embezzles,

23 misapplies, steals, or obtains by fraud, false statement, or

24 forgery, any funds, assets, or property provided or financed
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1 under this section shall be fined not more than $10,000 or

2 imprisoned for not more than 5 years, or both.’’.

3 SEC. 212. VALUE OF MINIMUM ALLOTMENT.

4 Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C.

5 2017(a)) is amended by striking ‘‘, and shall be adjusted

6 on each October 1’’ and all that follows through the end

7 of such subsection, and inserting a period.

8 SEC. 213. INITIAL MONTH BENEFIT DETERMINATION.

9 Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7

10 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more than

11 one month’’ after ‘‘following any period’’.

12 SEC. 214. IMPROVING FOOD STAMP PROGRAM MANAGE13 MENT.

14 (a) Section 13(a)(1) of the Food Stamp Act of 1977

15 (7 U.S.C. 2022(a)(1)) is amended—

16 (1) in the fifth sentence, by inserting ‘‘(after a

17 determination on any request for a waiver for good

18 cause related to the claim has been made by the Sec19 retary)’’ after ‘‘bill for collection’’; and

20 (2) in the sixth sentence, by striking ‘‘1 year’’

21 and inserting ‘‘2 years’’.

22 (b) Section 16(c) of the Food Stamp Act of 1977 (7

23 U.S.C. 2025(c)) is amended—

24 (1) in paragraph (1)(C)—
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1 (A) by striking ‘‘national performance

2 measure’’ and inserting ‘‘payment error toler3 ance level’’; and

4 (B) by striking ‘‘equal to—’’ and all that

5 follows through the period at the end and insert6 ing the following: ‘‘equal to its payment error

7 rate less such tolerance level times the total value

8 of allotments issued in such a fiscal year by such

9 State agency. The amount of liability shall not

10 be affected by corrective action under subpara11 graph (B).’’;

12 (2) in paragraph (3)(A), by striking ‘‘120 days’’

13 and inserting ‘‘60 days (or 90 days at the discretion

14 of the Secretary)’’;

15 (3) in the last sentence of paragraph (6), by in16 serting ‘‘shall be used to establish a payment-error

17 tolerance level. Such tolerance level for any fiscal year

18 will be one percentage point added to the lowest na19 tional performance measure ever announced up to

20 and including such fiscal year under this section. The

21 payment-error tolerance level’’ after ‘‘The announced

22 national performance measure’’; and

23 (4) by striking paragraphs (8) and (9).
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1 SEC. 215. WORK SUPPLEMENTATION OR SUPPORT PRO2 GRAM.

3 (a) Section 11(e) of the Food Stamp Act of 1977

4 (7 U.S.C. 2020(e)), as amended by section 203(b), is

5 amended—

6 (1) in paragraph (25), by striking ‘‘and’’;

7 (2) in paragraph (26), by striking the period

8 and inserting ‘‘; and’’ at the end; and

9 (3) by adding at the end the following new para10 graph:

11 ‘‘(27) the plans of the State agency for including

12 eligible food stamp recipients in a work

13 supplementation or support program under section

14 16(j).’’.

15 (b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C.

16 2025), as amended by section 209(b), is amended by adding

17 at the end the following new subsection:

18 ‘‘(j) WORK SUPPLEMENTATION OF SUPPORT PRO19 GRAM.—(1) A State may elect to use the sums equal to the

20 food stamp benefits that would otherwise be allotted to par21 ticipants under the food stamp program but for the oper22 ation of this subsection for the purposes of providing and

23 subsidizing or supporting jobs under a work

24 supplementation or support program established by the

25 State.
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1 ‘‘(2) If a State that makes the election described in

2 paragraph (1) identifies each household that participates

3 in the food stamp program which contains an individual

4 who is participating in such work supplementation or sup5 port program—

6 ‘‘(A) the Secretary shall pay to the State an

7 amount equal to the value of the allotment that the

8 household would be eligible to receive but for the oper9 ation of this subsection;

10 ‘‘(B) the State shall expend such amount in ac11 cordance with its work supplementation or support

12 program in lieu of the allotment that the household

13 would receive but for the operation of this subsection;

14 ‘‘(C) for purposes of—

15 ‘‘(i) sections 5 and 8(a), the amount re16 ceived under this subsection shall be excluded

17 from household income and resources; and

18 ‘‘(ii) section 8(b), the amount received

19 under this subsection shall be considered as the

20 value of an allotment provided to the household;

21 and

22 ‘‘(D) The household shall not receive an allot23 ment from the State agency for the period during

24 which the member continues to participate in the

25 work supplementation program.
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1 ‘‘(3) No person shall be excused by reason of the fact

2 that such State has a work supplementation or support pro3 gram from any work requirement under section 6(d), except

4 during the periods in which such individual is employed

5 under such work supplementation or support program.

6 ‘‘(4) For purposes of this subsection, the term ‘work

7 supplementation or support program’ shall mean a pro8 gram in which, as determined by the Secretary, public as9 sistance, including any benefits provided under a program

10 established by the State and the food stamp program, is

11 provided to an employer to be used for hiring a public as12 sistance recipient.’’.

13 SEC. 216. OBLIGATIONS AND ALLOTMENTS.

14 Section 18 of the Food Stamp Act of 1977 (7 U.S.C.

15 2027) is amended—

16 (1) in subsection (a)—

17 (A) in paragraph (1)—

18 (i) by striking ‘‘are authorized to be

19 appropriated such sums as are necessary for

20 each of the fiscal years 1991 through 1995’’

21 and inserting the following: ‘‘is provided to

22 be obligated, not in excess of the cost esti23 mate made by the Congressional Budget Of24 fice for this Act, as amended by the Food

25 Stamp Simplification and Reform Act of
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1 1995, for the fiscal year ending September

2 30, 1996, with adjustments for any esti3 mates of total obligations for additional fis4 cal years made by the Congressional Budget

5 Office to reflect the provisions contained in

6 the Food Stamp Simplification and Reform

7 Act of 1995’’;

8 (ii) by striking ‘‘In each monthly re9 port, the Secretary shall also state’’ and in10 serting ‘‘Also, the Secretary shall file a re11 port every February 15, April 15, and July

12 15, stating’’; and

13 (iii) by striking ‘‘supplemental appro14 priations’’ and inserting ‘‘additional

15 obligational authority’’; and

16 (B) in paragraph (2), by striking ‘‘author17 ized to be appropriated’’ and inserting ‘‘obli18 gated’’;

19 (2) in subsection (b)—

20 (A) in the first sentence, by striking ‘‘ap21 propriation’’ and inserting ‘‘total obligations

22 limitation provided’’; and

23 (B) in the second sentence, by striking ‘‘ap24 propriation’’ and inserting ‘‘obligational amount

25 provided in subsection (a)(1)’’;
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1 (3) in subsection (c)—

2 (A) by inserting ‘‘or under section 24’’ after

3 ‘‘under sections 5(d) and 5(e)’’;

4 (B) by inserting ‘‘or under section 24’’ after

5 ‘‘under section 5(c)’’;

6 (C) by striking ‘‘and’’ after ‘‘or otherwise

7 disabled’’; and

8 (D) by inserting before the period at the end

9 ‘‘, and (3) adequate and appropriate rec10 ommendations on how to equitably achieve such

11 reductions’’; and

12 (4) in subsection (f), by striking ‘‘No funds ap13 propriated’’ and inserting ‘‘None of the funds obli14 gated’’.

15 Subtitle C—Program Integrity

16 SEC. 301. AUTHORITY TO ESTABLISH AUTHORIZATION PE17 RIODS.

18 Section 9(a)(1) of the Food Stamp Act of 1977 (7

19 U.S.C. 2018(a)(1)) is amended by adding at the end the

20 following new sentence: ‘‘The Secretary shall establish spe21 cific time periods during which authorization to accept and

22 redeem coupons or redeem benefits through an electronic

23 benefit transfer system under the food stamp program shall

24 be valid.’’.
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1 SEC. 302. CONDITION PRECEDENT TO APPROVAL OF RETAIL

2 FOOD STORES AND WHOLESALE FOOD CON3 CERNS.

4 Section 9(a)(1) of the Food Stamp Act of 1977 (7

5 U.S.C. 2018(a)(1)), as amended by section 301, is amended

6 by adding at the end the following new sentence: ‘‘No retail

7 food store or wholesale food concern shall be approved for

8 participation in the food stamp program unless an author9 ized employee of the Department of Agriculture, or an offi10 cial of the State or local government designated by the De11 partment of Agriculture, wherever possible, has visited such

12 retail food store or wholesale food concern for the purpose

13 of determining whether such retail food store or wholesale

14 food concern should be so approved.’’.

15 SEC. 303. WAITING PERIOD FOR RETAIL FOOD STORES AND

16 WHOLESALE FOOD CONCERNS THAT ARE DE17 NIED APPROVAL TO ACCEPT COUPONS.

18 Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.

19 2018(d)) is amended by adding at the end the following

20 new sentence: ‘‘Such retail food store or wholesale food con21 cern shall not submit an application under subsection

22 (a)(1) for six months from the date of receipt of the notice

23 of denial.’’.
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1 SEC. 304. DISQUALIFICATION OF RETAIL FOOD STORES AND

2 WHOLESALE FOOD CONCERNS.

3 Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C.

4 2021(a)) is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(a); and

6 (2) by inserting the following new paragraph:

7 ‘‘(2) A retail food store or wholesale food concern that

8 is disqualified from participating in the program under

9 section 17 of the Child Nutrition Act of 1966 shall for such

10 period of disqualification also be disqualified from partici11 pating in the food stamp program.’’.

12 SEC. 305. AUTHORITY TO SUSPEND STORES VIOLATING

13 PROGRAM REQUIREMENTS PENDING ADMIN14 ISTRATIVE AND JUDICIAL REVIEW.

15 Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C.

16 2023(a)) is amended by adding at the end the following

17 new sentence: ‘‘Notwithstanding any other provision of law,

18 the permanent disqualification of a retail food store or

19 wholesale food concern under section 12(b)(3) shall be effec20 tive from the date of receipt of the notice of disqualifica21 tion.’’.

22 SEC. 306. CRIMINAL FORFEITURE.

23 Section 15(g) of the Food Stamp Act of 1977 (7 U.S.C.

24 2024(g)) is amended to read as follows:

25 ‘‘(g)(1) The court, in imposing sentence on a person

26 convicted of an offense in violation of subsection (b) or (c),
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1 shall order, in addition to any other sentence imposed pur2 suant to this subsection, that the person forfeit to the United

3 States all property described in paragraph (2).

4 ‘‘(2) All property, real and personal, used in a trans5 action or attempted transaction, to commit, or to facilitate

6 the commission of, a violation (other than a misdemeanor)

7 of subsection (b) or (c), or proceeds traceable to a violation

8 of subsection (b) or (c), is subject to forfeiture to the United

9 States.

10 ‘‘(3) No property shall be forfeited under this sub11 section to the extent of an interest of an owner, by reason

12 of any act or omission established by that owner to have

13 been committed or omitted without the knowledge or consent

14 of that owner.

15 ‘‘(4) The proceeds from any sale of forfeited property

16 and any monies forfeited under this subsection shall be

17 used—

18 ‘‘(A) to reimburse the Department of Justice for

19 the costs incurred by the Department to initiate and

20 complete the forfeiture proceeding that caused the sale

21 that produced such proceeds;

22 ‘‘(B) to reimburse the Department of Agriculture

23 Office of Inspector General for any costs it incurred

24 in the law enforcement effort resulting in the forfeit25 ure;
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1 ‘‘(C) to reimburse any Federal or State law en2 forcement agencies for any costs incurred in the law

3 enforcement effort resulting in the forfeiture; and

4 ‘‘(D) by the Secretary to carry out the approval,

5 reauthorization, and compliance investigations of re6 tail stores under section 9.’’.

7 SEC. 307. EXPANDED DEFINITION OF ‘‘COUPON’’.

8 Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.

9 2012(d)) is amended by striking ‘‘or type of certificate’’ and

10 inserting ‘‘type of certificate, authorization cards, cash or

11 checks issued in lieu of coupons, or access devices, including,

12 but not limited to, electronic benefit transfer cards or per13 sonal identification numbers’’.

14 SEC. 308. DOUBLED PENALTIES FOR VIOLATING FOOD

15 STAMP PROGRAM REQUIREMENTS.

16 Section 6(b)(1) of the Food Stamp Act of 1977 (7

17 U.S.C. 2015(b)(1)) is amended—

18 (1) in clause (i), by striking ‘‘six months’’ and

19 inserting ‘‘1 year’’; and

20 (2) in clause (ii), by striking ‘‘1 year’’ and in21 serting ‘‘2 years’’.

22 SEC. 309. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

23 Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7

24 U.S.C. 2015(b)(1)(iii)) is amended—

25 (1) in subclause (II), by striking ‘‘or’’ at the end;
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1 (2) in subclause (III), by striking the period at

2 the end and inserting ‘‘; or’’; and

3 (3) by adding at the end the following new

4 subclause:

5 ‘‘(IV) a conviction of an offense under

6 subsection (a) or (b) of section 15 involving

7 items referred to in such subsection having

8 a value of $500 or more.’’.

9 SEC. 310. CLAIMS COLLECTION.

10 (a) Section 11(e)(8) of the Food Stamp Act of 1977

11 (7 U.S.C. 2020(e)(8)) is amended by inserting before the

12 semicolon at the end ‘‘or refunds of Federal taxes as author13 ized pursuant to section 3720A of title 31 of the United

14 States Code’’.

15 (b) Section 13(d) of the Act (7 U.S.C. 2022(d)) is

16 amended—

17 (1) by striking ‘‘may’’ and inserting ‘‘shall’’;

18 and

19 (2) by inserting before the period at the end ‘‘or

20 refunds of Federal taxes as authorized pursuant to

21 section 3720A of title 31 of the United States Code’’.
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1 Subtitle D—Effective Dates and Miscellaneous

2 Provisions

3 SEC. 401. EFFECTIVE DATES.

4 (a) Except as provided in subsection (b) and (c), this

5 Act and amendments made by this Act shall take effect on

6 October 1, 1995.

7 (b) The amendments made by section 208 shall take

8 effect on October 1, 1996.

9 (c) The amendments made by section 214 shall take

10 effect on October 1, 1994.

11 SEC. 402. SENSE OF THE CONGRESS.

12 It is the sense of the Congress that States that operate

13 electronic benefit systems to transfer benefits provided under

14 the Food Stamp Act of 1977 should operate electronic bene15 fit systems that are compatible with each other.

16 SEC. 403. DEFICIT REDUCTION.

17 It is the sense of the Committee on Agriculture of the

18 House of Representatives that reductions in outlays result19 ing from this title shall not be taken into account for pur20 poses of section 252 of the Balanced Budget and Emergency

21 Deficit Control Act of 1985.