```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 762 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 762

To amend the Food and Nutrition Act of 2008 to improve the supplemental 
                     nutrition assistance program.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 18, 2013

   Mr. Thune introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
To amend the Food and Nutrition Act of 2008 to improve the supplemental 
                     nutrition assistance program.

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

SECTION 1. CATEGORICAL ELIGIBILITY LIMITATIONS.

    Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
            (1) by striking the section designation and heading and all 
        that follows through ``(a) Participation'' and inserting the 
        following:

``SEC. 5. ELIGIBLE HOUSEHOLDS.

    ``(a) Requirements.--
            ``(1) In general.--Participation'';
            (2) in subsection (a)--
                    (A) by striking the second sentence and inserting 
                the following:
            ``(2) Recipients of other federal benefits.--Except as 
        provided in section 3(n)(4) and subsections (b), (d)(2), and 
        (g) of section 6, a household shall be eligible to participate 
        in the supplemental nutrition assistance program if each member 
        of the household receives--
                    ``(A) cash assistance in the form of ongoing basic 
                needs benefit payments for financially needy families 
                under the program of block grants to States for 
                temporary assistance for needy families established 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.);
                    ``(B) cash assistance under the supplemental 
                security income program established under title XVI of 
                that Act (42 U.S.C. 1381 et seq.); or
                    ``(C) aid to the aged, blind, or disabled under 
                title I, X, XIV, or XVI of that Act (42 U.S.C. 301 et 
                seq.).'';
                    (B) in the third sentence, by striking ``Except for 
                sections 6, 16(e)(1), and section 3(n)(4), households'' 
                and inserting the following:
            ``(3) General assistance.--Except as provided in sections 
        3(n)(4), 6, and 16(d), a household''; and
                    (C) in the fourth sentence, by striking 
                ``Assistance'' and inserting the following:
            ``(4) Applications.--Assistance''; and
            (3) in subsection (j)--
                    (A) by inserting ``cash assistance in the form of'' 
                before ``supplemental security income benefits''; and
                    (B) by striking ``or who receives benefits'' and 
                inserting ``or who receives cash assistance''.

SEC. 2. REQUIREMENTS FOR RE-ENROLLMENT.

    Paragraph (4) of section 5(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2014(a)) (as designated by section 1(2)(C)) is amended--
            (1) by striking ``Assistance'' and inserting the following:
                    ``(A) In general.--Assistance''; and
            (2) by adding at the end the following:
                    ``(B) Reenrollment.--Any eligible household that 
                previously received benefits under the supplemental 
                nutrition assistance program and applies for 
                reenrollment in the program shall be required--
                            ``(i) to complete in full a new 
                        application; and
                            ``(ii) to verify that the income and assets 
                        of the household are in compliance with the 
                        requirements of the program.''.

SEC. 3. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY 
              ASSISTANCE PAYMENTS.

    (a) Standard Utility Allowance.--Section 5 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
            (1) in subsection (e)(6)(C), by striking clause (iv); and
            (2) in subsection (k), by striking paragraph (4) and 
        inserting the following:
            ``(4) Third party energy assistance payments.--For purposes 
        of subsection (d)(1), a payment made under a State law (other 
        than a law referred to in paragraph (2)(G)) to provide energy 
        assistance to a household shall be considered money payable 
        directly to the household.''.
    (b) Conforming Amendments.--Section 2605(f)(2) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)) is amended--
            (1) by striking ``and for purposes of determining any 
        excess shelter expense deduction under section 5(e) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2014(e))'', and
            (2) in subparagraph (A), by inserting before the semicolon 
        the following: ``, except that such payments or allowances 
        shall not be deemed to be expended for purposes of determining 
        any excess shelter expense deduction under section 5(e)(6) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6))''.

SEC. 4. REPEAL OF FUNDING FOR EMPLOYMENT AND TRAINING PROGRAMS.

    (a) In General.--Section 6(d)(4) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2015(d)(4)) is amended--
            (1) by striking ``(A) In general.--''; and all that follows 
        through ``the following components'' in the matter preceding 
        clause (i) in subparagraph (B) and inserting the following:
                    ``(A) Definition of employment and training 
                program.--In this Act, the term `employment and 
                training program' means a Federal, State, or private 
                program not administered by the Secretary or funded 
                through the Food and Nutrition Service that contains 1 
                or more of the following components'';
            (2) by striking clause (viii) in subparagraph (A) (as 
        designated in paragraph (1)) and inserting the following:
                            ``(viii) As approved by the State, other 
                        employment and training programs, educational 
                        programs, projects, and experiments, such as a 
                        supported work program, aimed at accomplishing 
                        the purpose of the employment and training 
                        program.'';
            (3) in subparagraph (E), by striking ``subparagraph (D)'' 
        and inserting ``subparagraph (C)'';
            (4) by striking subparagraphs (H) through (K); and
            (5) by redesignating subparagraphs (C) through (G) and (L) 
        and (M) as subparagraphs (B) through (F) and (G) and (H), 
        respectively.
    (b) Repeal of Funding.--Section 16 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2025) is amended by striking subsection (h).
    (c) Conforming Amendments.--
            (1) Section 5(d) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2014(d)) is amended--
                    (A) by striking paragraph (14); and
                    (B) by redesignating paragraphs (15) through (19) 
                as paragraphs (14) through (18), respectively.
            (2) Section 17(b)(1)(B)(iv)(III) of the Food and Nutrition 
        Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)) is amended--
                    (A) in item (dd), by striking ``, (4)(F)(i), or 
                (4)(K)'' and inserting ``or (4)(E)''; and
                    (B) in item (hh), by striking ``(g), (h)(2), or 
                (h)(3) of section 16'' and inserting ``or (f) of 
                section 16''.

SEC. 5. WORK REQUIREMENT.

    Section 6(o)(4)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(o)(4)(A)) is amended by striking ``reside--'' and all that follows 
through the end of clause (ii) and inserting ``reside has an 
unemployment rate of over 10 percent.''.

SEC. 6. CENTRALIZED DATABASE FOR CROSS-COMPLIANCE.

    Section 11(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(o)) is amended by adding at the end the following:
            ``(6) Centralized database for cross-compliance.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary 
                shall develop a centralized database to facilitate 
                cooperation between the Secretary and State agencies so 
                as to ensure that an individual does not enroll to 
                receive benefits in more than 1 State.
                    ``(B) Use of existing databases.--To the maximum 
                extent practicable to reduce development and 
                implementation costs, in developing the centralized 
                database the Secretary shall use Federal databases in 
                existence as of the date of enactment of this 
                paragraph.''.

SEC. 7. QUALITY CONTROL.

    (a) In General.--Section 16(c) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2025(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D)(i)(II), by inserting 
                ``except as provided in subparagraph (H),'' before 
                ``require''; and
                    (B) by adding at the end the following:
                    ``(H) States in liability status for a third 
                consecutive fiscal year.--
                            ``(i) In general.--If a liability amount 
                        has been established for a State agency under 
                        subparagraph (C) for 3 or more consecutive 
                        fiscal years, the Secretary shall require the 
                        State to pay the entire liability amount for 
                        those fiscal years.
                            ``(ii) Alternatives to full payment not 
                        available.--Subparagraph (D) shall not apply to 
                        a State agency described in clause (i).'';
            (2) by redesignating paragraph (9) as paragraph (10); and
            (3) by inserting after paragraph (8) the following:
            ``(9) Penalty for negative error rate.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Affected state agency.--The term 
                        `affected State agency' means a State agency 
                        that maintains, for 2 or more consecutive 
                        fiscal years, a negative error rate that is 
                        more than 50 percent higher than the national 
                        average negative error rate, as determined by 
                        the Secretary.
                            ``(ii) Average negative error rate.--The 
                        term `average negative error rate' means the 
                        product obtained by multiplying--
                                    ``(I) the negative error rate of a 
                                State agency; and
                                    ``(II) the proportion of the total 
                                negative caseload of that State agency 
                                for the fiscal year, as calculated 
                                under the quality control sample at the 
                                time of the notifications issued under 
                                subparagraph (C), as determined by the 
                                Secretary.
                            ``(iii) Negative error rate.--
                                    ``(I) In general.--The term 
                                `negative error rate' means, for a 
                                State agency, the proportion that--
                                            ``(aa) the total number of 
                                        actions erroneously taken by 
                                        the State agency to deny 
                                        applications or suspend or 
                                        terminate benefits of a 
                                        household participating in the 
                                        supplemental nutrition 
                                        assistance program established 
                                        under this Act, as determined 
                                        by the Secretary, in that 
                                        fiscal year; bears to
                                            ``(bb) the total number of 
                                        actions taken by the State 
                                        agency to deny applications or 
                                        suspend or terminate benefits 
                                        of households participating in 
                                        the supplemental nutrition 
                                        assistance program established 
                                        under this Act in that fiscal 
                                        year.
                                    ``(II) Exclusions.--The term 
                                `negative error rate' does not 
                                include--
                                            ``(aa) an error resulting 
                                        from the application of 
                                        regulations promulgated under 
                                        this Act during the period--

                                                    ``(AA) beginning on 
                                                the date of enactment 
                                                of this clause; and

                                                    ``(BB) ending on 
                                                the date that is 121 
                                                days after the date on 
                                                which the regulation is 
                                                implemented; and

                                            ``(bb) an error resulting 
                                        from--

                                                    ``(AA) the use by a 
                                                State agency of 
                                                correctly processed 
                                                information concerning 
                                                households or 
                                                individuals received 
                                                under a Federal 
                                                program; or

                                                    ``(BB) an action 
                                                that is based on policy 
                                                information that is 
                                                approved or 
                                                disseminated, in 
                                                writing, by the 
                                                Secretary or a designee 
                                                of the Secretary.

                    ``(B) Penalty amount.--For fiscal year 2012 and 
                each subsequent fiscal year, the amount of the penalty 
                for an affected State agency shall be equal to 5 
                percent of the amount otherwise payable under 
                subsection (a).
                    ``(C) Information reporting by states.--
                            ``(i) In general.--For each fiscal year, 
                        each State agency shall expeditiously submit to 
                        the Secretary data concerning the operations of 
                        the State agency sufficient for the Secretary 
                        to establish the negative error rate and 
                        penalty amount of the State agency.
                            ``(ii) Relevant information.--The Secretary 
                        may require a State agency to report any 
                        factors necessary to determine the negative 
                        error rate of the State agency.
                            ``(iii) Information not reported.--If a 
                        State agency fails to report information 
                        required by the Secretary, the Secretary may 
                        use any information, as the Secretary considers 
                        appropriate, to establish the negative error 
                        rate of the State agency for the applicable 
                        year.
                            ``(iv) National average error rate.--If a 
                        State agency fails to report information 
                        required by the Secretary, the Secretary may 
                        use the national average negative error rate to 
                        establish the negative error rate for the State 
                        agency.
                    ``(D) Announcement of error rates.--
                            ``(i) Case review.--Not later than May 31 
                        of each fiscal year, the case review and all 
                        arbitration of State-Federal differences on 
                        negative error rates for the previous fiscal 
                        year shall be completed.
                            ``(ii) Determination and announcement.--Not 
                        later than June 30 of each fiscal year, the 
                        Secretary shall, for the previous fiscal year--
                                    ``(I) determine--
                                            ``(aa) final negative error 
                                        rates;
                                            ``(bb) the national average 
                                        negative error rate; and
                                            ``(cc) penalty amounts;
                                    ``(II) notify affected State 
                                agencies of the penalty amounts;
                                    ``(III) provide a copy of the 
                                notification under subclause (II) to 
                                the chief executive officer and the 
                                legislature of the affected State; and
                                    ``(IV) establish a claim against 
                                the State agency for the monetary 
                                penalty amount assessed against the 
                                State agency.
                    ``(E) Review.--
                            ``(i) In general.--For any fiscal year, if 
                        the Secretary imposes a penalty amount against 
                        a State agency under subparagraph (D)(ii), the 
                        following determinations of the Secretary shall 
                        be subject to administrative and judicial 
                        review:
                                    ``(I) The final negative error rate 
                                of the State agency.
                                    ``(II) A determination of the 
                                Secretary that the negative error rate 
                                of the State agency exceeds 50 percent 
                                of the national average negative error 
                                rate.
                                    ``(III) The monetary penalty amount 
                                assessed against the State agency.
                            ``(ii) Determination not reviewable.--The 
                        national average negative error rate under this 
                        paragraph shall not be subject to 
                        administrative or judicial review.
                    ``(F) Payment of penalty amount.--
                            ``(i) In general.--On completion of 
                        administrative and judicial review under 
                        subparagraph (E), an affected State agency 
                        shall pay to the Secretary the penalty amount 
                        designated under subparagraph (D)(ii), subject 
                        to the findings of the administrative or 
                        judicial review, not later than September 30 of 
                        the fiscal year for which the claim has been 
                        issued to the State agency.
                            ``(ii) Alternative method of collection.--
                                    ``(I) In general.--If a State 
                                agency fails to make a payment under 
                                clause (i) by September 30 of the 
                                fiscal year for which the claim has 
                                been issued to the State agency, the 
                                Secretary may reduce any amount due to 
                                the State agency under any other 
                                provision of this Act by the amount of 
                                the monetary penalty established under 
                                subparagraph (D)(ii).
                                    ``(II) Accrual of interest.--
                                Interest on the amount owed shall not 
                                accrue until after September 30 of the 
                                applicable fiscal year.''.

SEC. 8. REPEAL OF INCENTIVE PAYMENTS TO STATES WITH LOW SNAP BENEFIT 
              ALLOCATION ERROR RATES.

    (a) In General.--Section 16 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025) is amended by striking subsection (d).
    (b) Conforming Amendments.--
            (1) Section 7(h)(4) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2016(h)(4)) is amended by striking ``16(g)'' and 
        inserting ``16(f)''.
            (2) Section 11(e)(3) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2020(e)(3)) is amended by striking ``section 16(e) of 
        this Act'' and inserting ``section 16(d)''.
            (3) Section 16 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2025) (as amended by subsection (a) of this section and 
        section 4(b)) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``subsection (k)'' and 
                        inserting ``subsection (i)''; and
                            (ii) by striking ``subsection (g)'' and 
                        inserting ``subsection (f)'';
                    (B) in subsection (c)--
                            (i) in paragraph (1)(B)(i), by striking 
                        ``subsection (g)'' and inserting ``subsection 
                        (f)''; and
                            (ii) by striking ``, or performance under 
                        the performance measures under subsection (d)'' 
                        each place it appears in paragraphs (4) and 
                        (5);
                    (C) in subsection (i)(1), by striking ``as defined 
                in subsection (d)(1))'' and inserting ``as defined in 
                guidance issued by the Secretary''; and
                    (D) by redesignating subsections (e) through (g) 
                and (i) through (k) as subsections (d) through (f) and 
                (g) through (i), respectively.
            (4) Section 22(d)(1)(B)(ii) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is amended--
                    (A) by striking ``(g), (h)(2), and (h)(3)'' and 
                inserting ``and (f)''; and
                    (B) in the proviso, by striking ``subsection (g) of 
                section 16'' and inserting ``section 16(f)''.
            (5) Section 23(a)(1) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2032(a)(1)) is amended--
                    (A) in subparagraph (C), by striking ``either 
                section 16(a) or 16(g)'' and inserting ``subsection (a) 
                or (f) of section 16''; and
                    (B) in subparagraph (E), by striking ``16(g)'' and 
                inserting ``16(f)''.

SEC. 9. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT PROGRAM.

    Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a) 
is amended by striking subsection (d) and inserting the following:
    ``(d) Funding.--
            ``(1) In general.--Of funds made available each fiscal year 
        under section 18(a)(1), the Secretary shall make available to 
        each State agency to carry out the nutrition education and 
        obesity prevention grant program under this section--
                    ``(A) for fiscal year 2013, an amount equal to $5 
                per household in the State enrolled in the supplemental 
                nutrition assistance program; and
                    ``(B) for fiscal year 2014 and each subsequent 
                fiscal year, the applicable amount during the preceding 
                fiscal year, as adjusted to reflect any increases for 
                the 12-month period ending the preceding June 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor, per household in the State enrolled in the 
                supplemental nutrition assistance program.
            ``(2) Timing of determination.--At the end of each fiscal 
        year, the Secretary shall determine the total number of 
        households in each State enrolled in the supplemental nutrition 
        assistance program so as to determine appropriate funding 
        levels for the coming fiscal year.''.
                                 <all>
```