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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3102 Referred in Senate (RFS)]

113th CONGRESS
  1st Session
                                H. R. 3102

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 23, 2013

                                Received

                           December 20, 2013

Read twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 AN ACT

 
  To amend the Food and Nutrition Act of 2008; and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Nutrition Reform 
and Work Opportunity Act of 2013''.
    (b) Table of Contents.--The table of contents of this Act is the 
following:

Sec. 1. Short title; table of contents.
           TITLE I--SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Sec. 101. Preventing payment of cash to recipients of supplemental 
                            nutrition assistance benefits for the 
                            return of empty bottles and cans used to 
                            contain food purchased with benefits 
                            provided under the program.
Sec. 102. Retailers.
Sec. 103. Enhancing services to elderly and disabled supplemental 
                            nutrition assistance program participants.
Sec. 104. Food distribution program on Indian reservations.
Sec. 105. Updating program eligibility.
Sec. 106. Exclusion of medical marijuana from excess medical expense 
                            deduction.
Sec. 107. Standard utility allowances based on the receipt of energy 
                            assistance payments.
Sec. 108. Eligibility disqualifications.
Sec. 109. Repeal of State work program waiver authority.
Sec. 110. Ending supplemental nutrition assistance program benefits for 
                            lottery or gambling winners.
Sec. 111. Improving security of food assistance.
Sec. 112. Demonstration projects on acceptance of benefits of mobile 
                            transactions.
Sec. 113. Use of benefits for purchase of community-supported 
                            agriculture share.
Sec. 114. Restaurant meals program.
Sec. 115. Mandating State immigration verification.
Sec. 116. Data exchange standardization for improved interoperability.
Sec. 117. Pilot projects to improve Federal-State cooperation in 
                            identifying and reducing fraud in the 
                            supplemental nutrition assistance program.
Sec. 118. Prohibiting Government-sponsored recruitment activities.
Sec. 119. Repeal of bonus program.
Sec. 120. Funding of employment and training programs.
Sec. 121. Monitoring employment and training programs.
Sec. 122. Cooperation with program research and evaluation.
Sec. 123. Pilot projects to reduce dependency and increase work effort 
                            in the supplemental nutrition assistance 
                            program.
Sec. 124. Authorization of appropriations.
Sec. 125. Limitation on use of block grant to Puerto Rico.
Sec. 126. Assistance for community food projects.
Sec. 127. Emergency food assistance.
Sec. 128. Nutrition education.
Sec. 129. Retailer trafficking.
Sec. 130. Technical and conforming amendments.
Sec. 131. Tolerance level for excluding small errors.
Sec. 132. Commonwealth of the Northern Mariana Islands pilot program.
Sec. 133. Annual State report on verification of SNAP participation.
Sec. 134. Termination of existing agreement.
Sec. 135. Service of traditional foods in public facilities.
Sec. 136. Testing applicants for unlawful use of controlled substances.
Sec. 137. Eligibility disqualifications for certain convicted felons.
Sec. 138. Expungement of unused supplemental nutrition assistance 
                            program benefits.
Sec. 139. Pilot projects to promote work and increase State 
                            accountability in the supplemental 
                            nutrition assistance program.
Sec. 140. Improved wage verification using the National Directory of 
                            New Hires.
Sec. 141. Feasibility study for Indian tribes.
               TITLE II--COMMODITY DISTRIBUTION PROGRAMS

Sec. 201. Commodity distribution program.
Sec. 202. Commodity supplemental food program.
Sec. 203. Distribution of surplus commodities to special nutrition 
                            projects.
Sec. 204. Processing of commodities.
                        TITLE III--MISCELLANEOUS

Sec. 301. Farmers' market nutrition program.
Sec. 302. Nutrition information and awareness pilot program.
Sec. 303. Fresh fruit and vegetable program.
Sec. 304. Additional authority for purchase of fresh fruits, 
                            vegetables, and other specialty food crops.
Sec. 305. Encouraging locally and regionally grown and raised food.
Sec. 306. Review of public health benefits of white potatoes.
Sec. 307. Healthy Food Financing Initiative.
Sec. 308. Review of sole-source contracts in Federal nutrition 
                            programs.
Sec. 309. Purchase of Halal and Kosher food for emergency food 
                            assistance program.

           TITLE I--SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

SEC. 101. PREVENTING PAYMENT OF CASH TO RECIPIENTS OF SUPPLEMENTAL 
              NUTRITION ASSISTANCE BENEFITS FOR THE RETURN OF EMPTY 
              BOTTLES AND CANS USED TO CONTAIN FOOD PURCHASED WITH 
              BENEFITS PROVIDED UNDER THE PROGRAM.

    Section 3(k)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2012(k)(1)) is amended--
            (1) by striking ``and hot foods'' and inserting ``hot 
        foods''; and
            (2) by adding at the end the following: ``and any deposit 
        fee in excess of amount of the State fee reimbursement (if any) 
        required to purchase any food or food product contained in a 
        returnable bottle or can, regardless of whether such fee is 
        included in the shelf price posted for such food or food 
        product,''.

SEC. 102. RETAILERS.

    (a) Definition of Retail Food Store.--Section 3(p)(1)(A) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is amended by 
striking ``at least 2'' and inserting ``at least 3''.
    (b) Alternative Benefit Delivery.--Section 7(f) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Imposition of costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall require 
                participating retailers (including restaurants 
                participating in a State option restaurant program 
                intended to serve the elderly, disabled, and homeless) 
                to pay 100 percent of the costs of acquiring, and 
                arrange for the implementation of, electronic benefit 
                transfer point-of-sale equipment and supplies.
                    ``(B) Exemptions.--The Secretary may exempt from 
                subparagraph (A)--
                            ``(i) farmers' markets and other direct-to-
                        consumer markets, military commissaries, 
                        nonprofit food buying cooperatives, and 
                        establishments, organizations, programs, or 
                        group living arrangements described in 
                        paragraphs (5), (7), and (8) of section 3(k); 
                        and
                            ``(ii) establishments described in 
                        paragraphs (3), (4), and (9) of section 3(k), 
                        other than restaurants participating in a State 
                        option restaurant program.''; and
            (2) by adding at the end the following:
            ``(4) Termination of manual vouchers.--
                    ``(A) In general.--Effective beginning on the 
                effective date of this paragraph, except as provided in 
                subparagraph (B), no State shall issue manual vouchers 
                to a household that receives supplemental nutrition 
                assistance under this Act or allow retailers to accept 
                manual vouchers as payment, unless the Secretary 
                determines that the manual vouchers are necessary, such 
                as in the event of an electronic benefit transfer 
                system failure or a disaster situation.
                    ``(B) Exemptions.--The Secretary may exempt 
                categories of retailers or individual retailers from 
                subparagraph (A) based on criteria established by the 
                Secretary.
            ``(5) Unique identification number required.--In an effort 
        to enhance the antifraud protections of the program, the 
        Secretary shall require all parties providing electronic 
        benefit transfer services to provide for and maintain a unique 
        business identification and a unique terminal identification 
        number information through the supplemental nutrition 
        assistance program electronic benefit transfer transaction 
        routing system. In developing the regulations implementing this 
        paragraph, the Secretary shall consider existing commercial 
        practices for other point-of-sale debit transactions. The 
        Secretary shall issue proposed regulations implementing this 
        paragraph not earlier than 2 years after the date of enactment 
        of this paragraph.''.
    (c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by 
striking ``is operational--'' and all that follows through ``(ii) in 
the case of other participating stores,'' and inserting ``is 
operational''.
    (d) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is 
amended--
            (1) in the 2d sentence of subsection (a)(1) by striking ``; 
        and (C)'' and inserting ``; (C) whether the applicant is 
        located in an area with significantly limited access to food; 
        and (D)''; and
            (2) by adding at the end the following:
    ``(g) EBT Service Requirement.--An approved retail food store shall 
provide adequate EBT service as described in section 7(h)(3)(B).''.

SEC. 103. ENHANCING SERVICES TO ELDERLY AND DISABLED SUPPLEMENTAL 
              NUTRITION ASSISTANCE PROGRAM PARTICIPANTS.

    (a) Enhancing Services to Elderly and Disabled Program 
Participants.--Section 3(p) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2012(p)) is amended--
            (1) in paragraph (3) by striking ``and'' at the end;
            (2) in paragraph (4) by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (4) the following:
            ``(5) a governmental or private nonprofit food purchasing 
        and delivery service that--
                    ``(A) purchases food for, and delivers such food 
                to, individuals who are--
                            ``(i) unable to shop for food; and
                            ``(ii)(I) not less than 60 years of age; or
                            ``(II) physically or mentally handicapped 
                        or otherwise disabled;
                    ``(B) clearly notifies the participating household 
                at the time such household places a food order--
                            ``(i) of any delivery fee associated with 
                        the food purchase and delivery provided to such 
                        household by such service; and
                            ``(ii) that a delivery fee cannot be paid 
                        with benefits provided under supplemental 
                        nutrition assistance program; and
                    ``(C) sells food purchased for such household at 
                the price paid by such service for such food and 
                without any additional cost markup.''.
    (b) Implementation.--
            (1) Issuance of rules.--The Secretary of Agriculture shall 
        issue regulations that--
                    (A) establish criteria to identify a food 
                purchasing and delivery service referred to in section 
                3(p)(5) of the Food and Nutrition Act of 2008 as 
                amended by this Act; and
                    (B) establish procedures to ensure that such 
                service--
                            (i) does not charge more for a food item 
                        than the price paid by the such service for 
                        such food item;
                            (ii) offers food delivery service at no or 
                        low cost to households under such Act;
                            (iii) ensures that benefits provided under 
                        the supplemental nutrition assistance program 
                        are used only to purchase food, as defined in 
                        section 3 of such Act;
                            (iv) limits the purchase of food, and the 
                        delivery of such food, to households eligible 
                        to receive services described in section 
                        3(p)(5) of such Act as so amended;
                            (v) has established adequate safeguards 
                        against fraudulent activities, including 
                        unauthorized use of electronic benefit cards 
                        issued under such Act; and
                            (vi) such other requirements as the 
                        Secretary deems to be appropriate.
            (2) Limitation.--Before the issuance of rules under 
        paragraph (1), the Secretary of Agriculture may not approve 
        more than 20 food purchasing and delivery services referred to 
        in section 3(p)(5) of the Food and Nutrition Act of 2008 as 
        amended by this Act, to participate as retail food stores under 
        the supplemental nutrition assistance program.

SEC. 104. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

    Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2013(b)(6)(F)) is amended by striking ``2012'' and inserting ``2016''.

SEC. 105. UPDATING PROGRAM ELIGIBILITY.

    Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
            (1) in the 2d sentence of subsection (a) by striking 
        ``households in which each member receives benefits'' and 
        inserting ``households in which each member receives cash 
        assistance''; and
            (2) in subsection (j) by striking ``or who receives 
        benefits under a State program'' and inserting ``or who 
        receives cash assistance under a State program''.

SEC. 106. EXCLUSION OF MEDICAL MARIJUANA FROM EXCESS MEDICAL EXPENSE 
              DEDUCTION.

    Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(5)) is amended by adding at the end the following:
                    ``(C) Exclusion of medical marijuana.--The 
                Secretary shall promulgate rules to ensure that medical 
                marijuana is not treated as a medical expense for 
                purposes of this paragraph.''.

SEC. 107. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY 
              ASSISTANCE PAYMENTS.

    (a) Standard Utility Allowances in the Supplemental Nutrition 
Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
            (1) in clause (i) by inserting ``, subject to clause (iv)'' 
        after ``Secretary''; and
            (2) by striking subclause (I) of clause (iv) and inserting 
        the following:
                                    ``(I) In general.--Subject to 
                                subclause (II), if a State agency 
                                elects to use a standard utility 
                                allowance that reflects heating and 
                                cooling costs, the standard utility 
                                allowance shall be made available to 
                                households that received a payment, or 
                                on behalf of which a payment was made, 
                                under the Low-Income Home Energy 
                                Assistance Act of 1981 (42 U.S.C. 8621 
                                et seq.) or other similar energy 
                                assistance program, if in the current 
                                month or in the immediately preceding 
                                12 months, the household either 
                                received such payment, or such payment 
                                was made on behalf of the household, 
                                that was greater than $20 annually, as 
                                determined by the Secretary.''; and
    (b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended 
by inserting before the semicolon the following: ``, except that, for 
purposes of the supplemental nutrition assistance program established 
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such 
payments or allowances were greater than $20 annually, consistent with 
section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)), 
as determined by the Secretary of Agriculture''.
    (c) Effective Date and Implementation.--
            (1) In general.--Except as provided in paragraph (2), this 
        section and the amendments made by this section shall take 
        effect on October 1, 2013, and shall apply with respect to 
        certification periods that begin after such date.
            (2) State option to delay implementation for current 
        recipients.--A State may, at the option of the State, implement 
        a policy that eliminates or reduces the effect of the 
        amendments made by this section on households that received a 
        standard utility allowance as of the date of enactment of this 
        Act, for not more than a 180-day period that begins on the date 
        on which such amendments would otherwise apply to the 
        respective household.

SEC. 108. ELIGIBILITY DISQUALIFICATIONS.

    Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 
2015(e)(3)(B)) is amended by striking ``section;'' and inserting the 
following:
                    ``section, subject to the condition that the course 
                or program of study--
                            ``(i) is part of a program of career and 
                        technical education (as defined in section 3 of 
                        the Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 2302)) that 
                        may be completed in not more than 4 years at an 
                        institution of higher education (as defined in 
                        section 102 of the Higher Education Act of 1965 
                        (20 U.S.C. 1002)); or
                            ``(ii) is limited to remedial courses, 
                        basic adult education, literacy, or English as 
                        a second language;''.

SEC. 109. REPEAL OF STATE WORK PROGRAM WAIVER AUTHORITY.

    Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(o)) is amended--
            (1) in paragraph (2)(D) by striking ``(5), or (6)'' and 
        inserting ``or (5)'';
            (2) by striking paragraph (4);
            (3) in paragraph (6)--
                    (A) in subparagraph (A)(ii)--
                            (i) by striking subclause (II);
                            (ii) in subclause (V) by striking ``(5)'' 
                        and inserting ``(4)''; and
                            (iii) by redesignating subclauses (III), 
                        (IV), and (V) as subclauses (II), (III), and 
                        (IV), respectively;
                    (B) in subparagraph (B) by striking ``(G)'' and 
                inserting ``(H)'';
                    (C) in subparagraph (D) by striking ``and each 
                subsequent fiscal year'' and inserting ``through fiscal 
                year 2013'';
                    (D) in subparagraph (F) by striking ``and each 
                subsequent fiscal year'' and inserting ``through fiscal 
                year 2013''; and
                    (E) by adding at the end the following:
                    ``(H) Fiscal year 2014 and thereafter.--Subject to 
                subparagraph (G), for fiscal year 2014 and each 
                subsequent fiscal year, a State agency may provide a 
                number of exemptions such that the average monthly 
                number of the exemptions in effect during the fiscal 
                year does not exceed 15 percent of the number of 
                individuals identified as `Nondisabled Adults Age 18-49 
                in Childless Households' in the table `B.5 Distribution 
                of Participating Households by Household Composition 
                and by State' of the report entitled Characteristics of 
                Supplemental Nutrition Assistance Program Households: 
                Fiscal Year 2011 (Supplemental Nutrition Assistance 
                Program Report No. SNAP-12-CHAR) prepared for and 
                published by the Office of Research and Analysis of the 
                Food and Nutrition Service of the Department of 
                Agriculture in November 2012.''; and
            (4) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (4), (5), and (6), respectively.

SEC. 110. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS FOR 
              LOTTERY OR GAMBLING WINNERS.

    (a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) is amended by adding at the end the following:
    ``(r) Ineligibility for Benefits Due to Receipt of Substantial 
Lottery or Gambling Winnings.--
            ``(1) In general.--Any household in which a member receives 
        substantial lottery or gambling winnings, as determined by the 
        Secretary, shall lose eligibility for benefits immediately upon 
        receipt of the winnings.
            ``(2) Duration of ineligibility.--A household described in 
        paragraph (1) shall remain ineligible for participation until 
        the household meets the allowable financial resources and 
        income eligibility requirements under subsections (c), (d), 
        (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
            ``(3) Agreements.--As determined by the Secretary, each 
        State agency, to the maximum extent practicable, shall 
        establish agreements with entities responsible for the 
        regulation or sponsorship of gaming in the State to determine 
        whether individuals participating in the supplemental nutrition 
        assistance program have received substantial lottery or 
        gambling winnings.''.
    (b) Conforming Amendments.--Section 5(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2014(a)) is amended in the 2d sentence by 
striking ``sections 6(b), 6(d)(2), and 6(g)'' and inserting 
``subsections (b), (d)(2), (g), and (r) of section 6''.

SEC. 111. IMPROVING SECURITY OF FOOD ASSISTANCE.

    Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)(8)) is amended--
            (1) in the heading by striking ``card fee'' and inserting 
        ``of cards'';
            (2) by striking ``A State'' and inserting the following:
                    ``(A) Fees.--A State''; and
            (3) by adding after subparagraph (A) (as so designated by 
        paragraph (2)) the following:
                    ``(B) Purposeful loss of cards.--
                            ``(i) In general.--Subject to terms and 
                        conditions established by the Secretary in 
                        accordance with clause (ii), if a household 
                        makes excessive requests for replacement of the 
                        electronic benefit transfer card of the 
                        household, the Secretary may require a State 
                        agency to decline to issue a replacement card 
                        to the household unless the household, upon 
                        request of the State agency, provides an 
                        explanation for the loss of the card.
                            ``(ii) Requirements.--The terms and 
                        conditions established by the Secretary shall 
                        provide that--
                                    ``(I) the household be given the 
                                opportunity to provide the requested 
                                explanation and meet the requirements 
                                under this paragraph promptly;
                                    ``(II) after an excessive number of 
                                lost cards, the head of the household 
                                shall be required to review program 
                                rights and responsibilities with State 
                                agency personnel authorized to make 
                                determinations under section 5(a); and
                                    ``(III) any action taken, including 
                                actions required under section 6(b)(2), 
                                other than the withholding of the 
                                electronic benefit transfer card until 
                                an explanation described in subclause 
                                (I) is provided, shall be consistent 
                                with the due process protections under 
                                section 6(b) or 11(e)(10), as 
                                appropriate.
                    ``(C) Protecting vulnerable persons.--In 
                implementing this paragraph, a State agency shall act 
                to protect homeless persons, persons with disabilities, 
                victims of crimes, and other vulnerable persons who 
                lose electronic benefit transfer cards but are not 
                intentionally committing fraud.
                    ``(D) Effect on eligibility.--While a State may 
                decline to issue an electronic benefits transfer card 
                until a household satisfies the requirements under this 
                paragraph, nothing in this paragraph shall be 
                considered a denial of, or limitation on, the 
                eligibility for benefits under section 5.''.

SEC. 112. DEMONSTRATION PROJECTS ON ACCEPTANCE OF BENEFITS OF MOBILE 
              TRANSACTIONS.

    Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended by adding at the end the following:
            ``(14) Demonstration projects on acceptance of benefits of 
        mobile transactions.--
                    ``(A) In general.--The Secretary shall pilot the 
                use of mobile technologies determined by the Secretary 
                to be appropriate to test the feasibility and 
                implications for program integrity, by allowing retail 
                food stores, farmers markets, and other direct 
                producer-to-consumer marketing outlets to accept 
                benefits from recipients of supplemental nutrition 
                assistance through mobile transactions.
                    ``(B) Demonstration projects.--To be eligible to 
                participate in a demonstration project under subsection 
                (a), a retail food store, farmers market, or other 
                direct producer-to-consumer marketing outlet shall 
                submit to the Secretary for approval a plan that 
                includes--
                            ``(i) a description of the technology;
                            ``(ii) the manner by which the retail food 
                        store, farmers market or other direct producer-
                        to-consumer marketing outlet will provide proof 
                        of the transaction to households;
                            ``(iii) the provision of data to the 
                        Secretary, consistent with requirements 
                        established by the Secretary, in a manner that 
                        allows the Secretary to evaluate the impact of 
                        the demonstration on participant access, ease 
                        of use, and program integrity; and
                            ``(iv) such other criteria as the Secretary 
                        may require.
                    ``(C) Date of completion.--The demonstration 
                projects under this paragraph shall be completed and 
                final reports submitted to the Secretary by not later 
                than July 1, 2016.
                    ``(D) Report to congress.--The Secretary shall 
                submit a report to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate that 
                includes a finding, based on the data provided under 
                subparagraph (C) whether or not implementation in all 
                States is in the best interest of the supplemental 
                nutrition assistance program.''.

SEC. 113. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED 
              AGRICULTURE SHARE.

    Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is 
amended in the 1st sentence by inserting ``agricultural producers who 
market agricultural products directly to consumers shall be authorized 
to redeem benefits for the initial cost of the purchase of a community-
supported agriculture share,'' after ``food so purchased,''.

SEC. 114. RESTAURANT MEALS PROGRAM.

    (a) In General.--Section 11(e) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2020(e)) is amended--
            (1) in paragraph (22) by striking ``and'' at the end;
            (2) in paragraph (23)(C) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(24) if the State elects to carry out a program to 
        contract with private establishments to offer meals at 
        concessional prices, as described in paragraphs (3), (4), and 
        (9) of section 3(k)--
                    ``(A) the plans of the State agency for operating 
                the program, including--
                            ``(i) documentation of a need that eligible 
                        homeless, elderly, and disabled clients are 
                        underserved in a particular geographic area;
                            ``(ii) the manner by which the State agency 
                        will limit participation to only those private 
                        establishments that the State determines 
                        necessary to meet the need identified in clause 
                        (i); and
                            ``(iii) any other conditions the Secretary 
                        may prescribe, such as the level of security 
                        necessary to ensure that only eligible 
                        recipients participate in the program; and
                    ``(B) a report by the State agency to the Secretary 
                annually, the schedule of which shall be established by 
                the Secretary, that includes--
                            ``(i) the number of households and 
                        individual recipients authorized to participate 
                        in the program, including any information on 
                        whether the individual recipient is elderly, 
                        disabled, or homeless; and
                            ``(ii) an assessment of whether the program 
                        is meeting an established need, as documented 
                        under subparagraph (A)(i).''.
    (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is 
amended by adding at the end the following:
    ``(h) Private Establishments.--
            ``(1) In general.--Subject to paragraph (2), no private 
        establishment that contracts with a State agency to offer meals 
        at concessional prices as described in paragraphs (3), (4), and 
        (9) of section 3(k) may be authorized to accept and redeem 
        benefits unless the Secretary determines that the participation 
        of the private establishment is required to meet a documented 
        need in accordance with section 11(e)(24).
            ``(2) Existing contracts.--
                    ``(A) In general.--If, on the day before the 
                effective date of this subsection, a State has entered 
                into a contract with a private establishment described 
                in paragraph (1) and the Secretary has not determined 
                that the participation of the private establishment is 
                necessary to meet a documented need in accordance with 
                section 11(e)(24), the Secretary shall allow the 
                operation of the private establishment to continue 
                without that determination of need for a period not to 
                exceed 180 days from the date on which the Secretary 
                establishes determination criteria, by regulation, 
                under section 11(e)(24).
                    ``(B) Justification.--If the Secretary determines 
                to terminate a contract with a private establishment 
                that is in effect on the effective date of this 
                subsection, the Secretary shall provide justification 
                to the State in which the private establishment is 
                located for that termination.
            ``(3) Report to congress.--Not later than 90 days after 
        September 30, 2014, and 90 days after the last day of each 
        fiscal year thereafter, the Secretary shall report to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate on the effectiveness of a program under this subsection 
        using any information received from States under section 
        11(e)(24) as well as any other information the Secretary may 
        have relating to the manner in which benefits are used.''.
    (c) Conforming Amendments.--Section 3(k) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting ``subject to 
section 9(h)'' after ``concessional prices'' each place it appears.

SEC. 115. MANDATING STATE IMMIGRATION VERIFICATION.

    Section 11(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(p)) is amended to read as follows:
    ``(p) State Verification Option.--In carrying out the supplemental 
nutrition assistance program, a State agency shall be required to use 
an income and eligibility, or an immigration status, verification 
system established under section 1137 of the Social Security Act (42 
U.S.C. 1320b-7), in accordance with standards set by the Secretary.''.

SEC. 116. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

    (a) Data Exchange Standardization.--Section 11 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding at the end 
the following:
    ``(v) Data Exchange Standards for Improved Interoperability.--
            ``(1) Designation.--The Secretary shall, in consultation 
        with an interagency work group established by the Office of 
        Management and Budget, and considering State government 
        perspectives, designate data exchange standards to govern, 
        under this part--
                    ``(A) necessary categories of information that 
                State agencies operating such programs are required 
                under applicable law to electronically exchange with 
                another State agency; and
                    ``(B) Federal reporting and data exchange required 
                under applicable law.
            ``(2) Requirements.--The data exchange standards required 
        by paragraph (1) shall, to the extent practicable--
                    ``(A) incorporate a widely accepted, non-
                proprietary, searchable, computer-readable format, such 
                as the eXtensible Markup Language;
                    ``(B) contain interoperable standards developed and 
                maintained by intergovernmental partnerships, such as 
                the National Information Exchange Model;
                    ``(C) incorporate interoperable standards developed 
                and maintained by Federal entities with authority over 
                contracting and financial assistance;
                    ``(D) be consistent with and implement applicable 
                accounting principles;
                    ``(E) be implemented in a manner that is cost-
                effective and improves program efficiency and 
                effectiveness; and
                    ``(F) be capable of being continually upgraded as 
                necessary.
            ``(3) Rules of construction.--Nothing in this subsection 
        shall be construed to require a change to existing data 
        exchange standards for Federal reporting found to be effective 
        and efficient.''.
    (b) Effective Date.--The Secretary shall issue a proposed rule 
within 24 months after the date of the enactment of this Act. The rule 
shall identify federally required data exchanges, include specification 
and timing of exchanges to be standardized, and address the factors 
used in determining whether and when to standardize data exchanges. It 
should also specify state implementation options and describe future 
milestones.

SEC. 117. PILOT PROJECTS TO IMPROVE FEDERAL-STATE COOPERATION IN 
              IDENTIFYING AND REDUCING FRAUD IN THE SUPPLEMENTAL 
              NUTRITION ASSISTANCE PROGRAM.

    Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is 
amended by adding at the end the following:
    ``(i) Pilot Projects To Improve Federal-State Cooperation in 
Identifying and Reducing Fraud in the Supplemental Nutrition Assistance 
Program.--
            ``(1) In general.--The Secretary shall carry out, under 
        such terms and conditions as determined by the Secretary, pilot 
        projects to test innovative Federal-State partnerships to 
        identify, investigate, and reduce retailer fraud in the 
        supplemental nutrition assistance program, including allowing 
        States to operate retail Food Store investigation programs. At 
        least 1 such pilot project shall be carried out in an urban 
        area that is among the 10 largest urban areas in the United 
        States (based on population) if the supplemental nutrition 
        assistance program is separately administered in such area and 
        if the administration of such program in such area complies 
        with the other applicable requirements of such program.
            ``(2) Selection criteria.--Pilot projects shall be selected 
        based on criteria the Secretary establishes, which shall 
        include--
                    ``(A) enhancing existing efforts by the Secretary 
                to reduce retailer fraud;
                    ``(B) requiring participant States to maintain 
                their overall level of effort at addressing recipient 
                fraud, as determined by the Secretary, prior to 
                participation in the pilot project;
                    ``(C) collaborating with other law enforcement 
                authorities as necessary to carry out an effective 
                pilot project;
                    ``(D) commitment of the participant State agency to 
                follow Federal rules and procedures with respect to 
                retailer investigations; and
                    ``(E) the extent to which a State has committed 
                resources to recipient fraud and the relative success 
                of those efforts.
            ``(3) Evaluation.--
                    ``(A) The Secretary shall evaluate the projects 
                selected under this subsection to measure the impact of 
                the pilot projects.
                    ``(B) Such evaluation shall include--
                            ``(i) each pilot project's impact on 
                        increasing the Secretary's capacity to address 
                        retailer fraud;
                            ``(ii) the effectiveness of the pilot 
                        projects in identifying, preventing and 
                        reducing retailer fraud; and
                            ``(iii) the cost effectiveness of such 
                        pilot projects.
            ``(4) Report to congress.--Not later than September 30, 
        2017, the Secretary shall submit to the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition and Forestry of the Senate, a report 
        that includes a description of the results of each pilot 
        project, including an evaluation of the impact of the project 
        on retailer fraud and the costs associated with each pilot 
        project.
            ``(5) Funding.--Any costs incurred by the State to operate 
        the pilot projects in excess of the amount expended under this 
        Act for retailer fraud in the respective State in the previous 
        fiscal year shall not be eligible for Federal reimbursement 
        under this Act.''.

SEC. 118. PROHIBITING GOVERNMENT-SPONSORED RECRUITMENT ACTIVITIES.

    (a) Administrative Cost-Sharing and Quality Control.--Section 
16(a)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)(4)) is 
amended by inserting after ``recruitment activities'' the following: 
``designed to persuade an individual to apply for program benefits or 
that promote the program via television, radio, or billboard 
advertisements''.
    (b) Limitation on Use of Funds Authorized To Be Appropriated Under 
Act.--Section 18 of the Food and Nutrition Act of 2008 (7 U.S.C. 2027) 
is amended by adding at the end the following:
    ``(g) Ban on Recruitment and Promotion Activities.--(1) Except as 
provided in paragraph (2), no funds authorized to be appropriated under 
this Act shall be used by the Secretary for--
            ``(A) recruitment activities designed to persuade an 
        individual to apply for supplemental nutrition assistance 
        program benefits;
            ``(B) television, radio, or billboard advertisements that 
        are designed to promote supplemental nutrition assistance 
        program benefits and enrollment; or
            ``(C) any agreements with foreign governments designed to 
        promote supplemental nutrition assistance program benefits and 
        enrollment.
    ``(2) Paragraph (1)(B) shall not apply to programmatic activities 
undertaken with respect to benefits made available in response to a 
natural disaster.''.
    (c) Ban on Recruitment Activities by Entities That Receive Funds.--
Section 18 of the Food and Nutrition Act of 2008 (7 U.S.C. 2027) is 
amended by adding at the end the following:
    ``(h) Ban on Recruitment by Entities That Receive Funds.--The 
Secretary shall issue regulations that forbid entities that receive 
funds under this Act to compensate any person for conducting outreach 
activities relating to participation in, or for recruiting individuals 
to apply to receive benefits under, the supplemental nutrition 
assistance program if the amount of such compensation would be based on 
the number of individuals who apply to receive such benefits.''.

SEC. 119. REPEAL OF BONUS PROGRAM.

    Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(d)) is repealed.

SEC. 120. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)(A)) is amended by striking ``$90,000,000'' and all that 
follows through ``$79,000,000'', and inserting ``$79,000,000 for each 
fiscal year''.

SEC. 121. MONITORING EMPLOYMENT AND TRAINING PROGRAMS.

    (a) Reporting Measures.--Section 16(h)(5) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(h)(5)) is amended to read:
            ``(5)(A) In general.--The Secretary shall monitor the 
        employment and training programs carried out by State agencies 
        under section 6(d)(4) and assess their effectiveness in--
                    ``(i) preparing members of households participating 
                in the supplemental nutrition assistance program for 
                employment, including the acquisition of basic skills 
                necessary for employment; and
                    ``(ii) increasing the numbers of household members 
                who obtain and retain employment subsequent to their 
                participation in such employment and training programs.
            ``(B) Reporting measures.--The Secretary, in consultation 
        with the Secretary of Labor, shall develop reporting measures 
        that identify improvements in the skills, training education or 
        work experience of members of households participating in the 
        supplemental nutrition assistance program. Measures shall be 
        based on common measures of performance for federal workforce 
        training programs, so long as they reflect the challenges 
        facing the types of members of households participating in the 
        supplemental nutrition assistance program who participate in a 
        specific employment and training component. The Secretary shall 
        require that each State employment and training plan submitted 
        under section 11(e)(19) identify appropriate reporting measures 
        for each of their proposed components that serve at least 100 
        people. Such measures may include:
                    ``(i) the percentage and number of program 
                participants who received employment and training 
                services and are in unsubsidized employment subsequent 
                to the receipt of those services;
                    ``(ii) the percentage and number of program 
                participants who obtain a recognized postsecondary 
                credential, including a registered apprenticeship, or a 
                regular secondary school diploma or its recognized 
                equivalent, while participating in or within 1 year 
                after receiving employment and training services;
                    ``(iii) the percentage and number of program 
                participants who are in an education or training 
                program that is intended to lead to a recognized 
                postsecondary credential, including a registered 
                apprenticeship or on-the-job training program, a 
                regular secondary school diploma or its recognized 
                equivalent, or unsubsidized employment;
                    ``(iv) subject to the terms and conditions set by 
                the Secretary, measures developed by each State agency 
                to assess the skills acquisition of employment and 
                training program participants that reflect the goals of 
                their specific employment and training program 
                components, which may include, but are not limited to--
                            ``(I) the percentage and number of program 
                        participants who are meeting program 
                        requirements in each component of the State's 
                        education and training program; and
                            ``(II) the percentage and number of program 
                        participants who are gaining skills likely to 
                        lead to employment as measured through testing, 
                        quantitative or qualitative assessment or other 
                        method; and
                    ``(v) other indicators as approved by the 
                Secretary.
            ``(C) State report.--Each State agency shall annually 
        prepare and submit to the Secretary a report on the State's 
        employment and training program that includes the numbers of 
        supplemental nutrition assistance program participants who have 
        gained skills, training, work or experience that will increase 
        their ability to obtain regular employment using measures 
        identified in subparagraph (B).
            ``(D) Modifications to the state employment and training 
        plan.--Subject to the terms and conditions established by the 
        Secretary, if the Secretary determines that the state agency's 
        performance with respect to employment and training outcomes is 
        inadequate, the Secretary may require the State agency to make 
        modifications to their employment and training plan to improve 
        such outcomes.
            ``(E) Periodic evaluation.--
                    ``(i) In general.--Subject to terms and conditions 
                established by the Secretary, not later than October 1, 
                2016, and not less frequently than once every 5 years 
                thereafter, the Secretary shall conduct a study to 
                review existing practice and research to identify 
                employment and training program components and 
                practices that--
                            ``(I) effectively assist members of 
                        households participating in the supplemental 
                        nutrition assistance program in gaining skills, 
                        training, work, or experience that will 
                        increase their ability to obtain regular 
                        employment, and
                            ``(II) are best integrated with statewide 
                        workforce development systems.
                    ``(ii) Report to congress.--The Secretary shall 
                submit a report that describes the results of the study 
                under clause (i) to the Committee on Agriculture in the 
                House of Representatives, and the Committee on 
                Agriculture, Nutrition and Forestry in the Senate.''.
    (b) Effective Date.--Notwithstanding section 4(c) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(a)), the Secretary shall issue 
interim final regulations implementing the amendment made by subsection 
(a) no later than 18 months after the date of enactment of this Act. 
States shall include such reporting measures in their employment and 
training plans for the 1st fiscal year thereafter that begins no sooner 
than 6 months after the date that such regulations are published.

SEC. 122. COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.

    Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is 
amended by adding at the end the following:
    ``(l) Cooperation With Program Research and Evaluation.--States, 
State agencies, local agencies, institutions, facilities such as data 
consortiums, and contractors participating in programs authorized under 
this Act shall cooperate with officials and contractors acting on 
behalf of the Secretary in the conduct of evaluations and studies under 
this Act and shall submit information at such time and in such manner 
as the Secretary may require.''.

SEC. 123. PILOT PROJECTS TO REDUCE DEPENDENCY AND INCREASE WORK EFFORT 
              IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026), 
as amended by section 121, is amended by adding at the end the 
following:
    ``(m) Pilot Projects To Reduce Dependency and Increase Work Effort 
in the Supplemental Nutrition Assistance Program.--
            ``(1) In general.--The Secretary shall carry out, under 
        such terms and conditions as the Secretary considers to be 
        appropriate, pilot projects to identify best practices for 
        employment and training programs under this Act to raise the 
        number of work registrants who obtain unsubsidized employment, 
        increase their earned income, and reduce their reliance on 
        public assistance, including but not limited to the 
        supplemental nutrition assistance program.
            ``(2) Selection criteria.--Pilot projects shall be selected 
        based on criteria the Secretary establishes, that shall 
        include--
                    ``(A) enhancing existing employment and training 
                programs in the State;
                    ``(B) agreeing to participate in the evaluation 
                described in paragraph (3), including making available 
                data on participants' employment activities and post-
                participation employment, earnings, and public benefit 
                receipt;
                    ``(C) collaborating with the State workforce board 
                and other job training programs in the State and local 
                area;
                    ``(D) the extent to which the pilot project's 
                components can be easily replicated by other States or 
                political subdivisions; and
                    ``(E) such additional criteria that ensure that the 
                pilot projects--
                            ``(i) target a variety of populations of 
                        work registrants, including childless adults, 
                        parents, and individuals with low skills or 
                        limited work experience;
                            ``(ii) are selected from a range of 
                        existing employment and training programs 
                        including programs that provide--
                                    ``(I) section 20 workfare;
                                    ``(II) skills development for work 
                                registrants with limited employment 
                                history;
                                    ``(III) post-employment support 
                                services necessary for maintaining 
                                employment; and
                                    ``(IV) education leading to a 
                                recognized postsecondary credential, 
                                registered apprenticeship, or secondary 
                                school diploma or its equivalent;
                            ``(iii) are located in a range of 
                        geographic areas, including rural, urban, and 
                        Indian reservations; and
                            ``(iv) include participants who are exempt 
                        and not exempt under section (6)(d)(2).
            ``(3) Evaluation.--The Secretary shall provide for an 
        independent evaluation of projects selected under this 
        subsection to measure the impact of the pilot projects on the 
        ability of each pilot project target population to find and 
        retain employment that leads to increased household income and 
        reduced dependency, compared to what would have occurred in the 
        absence of the pilot project.
            ``(4) Report to congress.--By September 30, 2017, the 
        Secretary shall submit, to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, a report that includes a 
        description of--
                    ``(A) the results of each pilot project, including 
                an evaluation of the impact of the project on the 
                employment, income, and public benefit receipt of the 
                targeted population of work registrants;
                    ``(B) the Federal, State, and other costs of each 
                pilot project;
                    ``(C) the planned dissemination of the reports' 
                findings with State agencies; and
                    ``(D) the steps and funding necessary to 
                incorporate components of pilot projects that 
                demonstrate increased employment and earnings into 
                State employment and training programs.
            ``(5) Funding.--From amounts made available under section 
        18(a)(1), the Secretary shall make $10,000,000 available for 
        each of the fiscal years 2014, 2015, and 2016 to carry out this 
        subsection. Such amounts shall remain available until expended.
            ``(6) Use of funds.--
                    ``(A) Funds provided under this subsection for 
                pilot projects shall be used only for--
                            ``(i) pilot projects that comply with the 
                        provisions of this Act;
                            ``(ii) the costs and administration of the 
                        pilot projects;
                            ``(iii) the costs incurred in providing 
                        information and data to the independent 
                        evaluation under paragraph (3); and
                            ``(iv) the costs of the evaluation under 
                        paragraph (3).
                    ``(B) Funds made available under this subsection 
                may not be used to supplant non-Federal funds used for 
                existing employment and training activities.''.

SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

    Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(a)(1)) is amended in the 1st sentence by striking ``2012'' and 
inserting ``2016''.

SEC. 125. LIMITATION ON USE OF BLOCK GRANT TO PUERTO RICO.

    Section 19(a)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2028(a)(2)(B)) is amended by adding at the end the following:
                            ``(iii) Limitation on use of funds.--None 
                        of the funds made available to the Commonwealth 
                        of Puerto Rico under this subparagraph may be 
                        used to provide nutrition assistance in the 
                        form of cash benefits.''.

SEC. 126. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    (a) Definition.--Section 25(a)(1)(B)(i) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2034(a)(1)(B)(i)) is amended--
            (1) in subclause (II) by striking ``and'' at the end;
            (2) in subclause (III) by striking ``or'' at the end and 
        inserting ``and''; and
            (3) by adding at the end the following:
                            ``(IV) to provide incentives for the 
                        consumption of fruits and vegetables among low-
                        income individuals; or''.
    (b) Additional Funding.--Section 25(b) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2034) is amended by adding at the end the 
following:
            ``(3) Funding.--
                    ``(A) In general.--Out of any funds in the Treasury 
                not otherwise appropriated, the Secretary of the 
                Treasury shall transfer to the Secretary to carry out 
                this section not less than $10,000,000 for fiscal year 
                2014 and each fiscal year thereafter. Of the amount 
                made available under this subparagraph for each such 
                fiscal year, $5,000,000 shall be available to carry out 
                subsection (a)(1)(B)(I)(IV).
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this section, the funds transferred under 
                subparagraph (A) without further appropriation.
                    ``(C) Maintenance of funding.--The funding provided 
                under subparagraph (A) shall supplement (and not 
                supplant) other Federal funding made available to the 
                Secretary to carry out this section.''.

SEC. 127. EMERGENCY FOOD ASSISTANCE.

    (a) Purchase of Commodities.--Section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
            (1) in paragraph (1) by striking ``2008 through 2012'' and 
        inserting ``2013 through 2016'';
            (2) in paragraph (2) by striking subparagraphs (A), (B), 
        and (C), and inserting the following:
                    ``(A) for fiscal year 2013, $265,750,000;
                    ``(B) for fiscal year 2014, the dollar amount of 
                commodities specified in subparagraph (A) adjusted by 
                the percentage by which the thrifty food plan has been 
                adjusted under section 3(u)(4) between June 30, 2012 
                and June 30, 2013, and increased by $70,000,000;
                    ``(C) for fiscal year 2015, the dollar amount of 
                commodities determined for fiscal year 2014 under 
                subparagraph (B) adjusted by the percentage by which 
                the thrifty food plan has been adjusted under section 
                3(u)(4) between June 30, 2013 and June 30, 2014;
                    ``(D) for fiscal year 2016, the dollar amount of 
                commodities determined for fiscal year 2015 under 
                subparagraph (C) adjusted by the percentage by which 
                the thrifty food plan has been adjusted under section 
                3(u)(4) between June 30, 2014 and June 30, 2015, and 
                reduced by $50,000,000; and
                    ``(E) for each subsequent fiscal year, the dollar 
                amount of commodities determined for the preceding 
                fiscal year adjusted to reflect the percentage by which 
                the thrifty food plan has been adjusted under section 
                3(u)(4) for the 12-month period ending on the preceding 
                June 30.''; and
            (3) by adding at the end the following:
            ``(3) Funds availability.--For purposes of the funds 
        described in this subsection, the Secretary shall--
                    ``(A) make the funds available for 2 fiscal years; 
                and
                    ``(B) allow States to carry over unexpended 
                balances to the next fiscal year pursuant to such terms 
                and conditions as are determined by the Secretary.''.
    (b) Emergency Food Program Infrastructure Grants.--Section 209(d) 
of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is 
amended by striking ``2012'' and inserting ``2016''.

SEC. 128. NUTRITION EDUCATION.

    Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a) 
is amended--
            (1) in subsection (b) by inserting ``and physical 
        activity'' after ``healthy food choices''; and
            (2) in subsection (d)(1)--
                    (A) in subparagraph (D) by striking 
                ``$401,000,000;'' and inserting ``$372,000,000; and'';
                    (B) by striking subparagraph (E); and
                    (C) in subparagraph (F) by striking ``(F) for 
                fiscal year 2016'' and inserting ``(E) for fiscal year 
                2015''.

SEC. 129. RETAILER TRAFFICKING.

    The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is 
amended by adding at the end the following:

``SEC. 29. RETAILER TRAFFICKING.

    ``(a) Purpose.--The purpose of this section is to provide the 
Department of Agriculture with additional resources to prevent 
trafficking in violation of this Act by strengthening recipient and 
retailer program integrity. Additional funds are provided to supplement 
the Department's payment accuracy, and retailer and recipient integrity 
activities.
    ``(b) Funding.--
            ``(1) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary to carry out this section not less 
        than $5,000,000 for fiscal year 2014 and each fiscal year 
        thereafter.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1) without 
        further appropriation.
            ``(3) Maintenance of funding.--The funding provided under 
        paragraph (1) shall supplement (and not supplant) other Federal 
        funding for programs carried out under this Act.''.

SEC. 130. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) 
is amended--
            (1) in subsection (g) by striking ``coupon,'' the last 
        place it appears and inserting ``coupon'';
            (2) in subsection (k)(7) by striking ``or are'' and 
        inserting ``and'';
            (3) by striking subsection (l);
            (4) by redesignating subsections (m) through (t) as 
        subsections (l) through (s), respectively; and
            (5) by inserting after subsection (s) (as so redesignated) 
        the following:
    ``(t) `Supplemental nutritional assistance program' means the 
program operated pursuant to this Act.''.
    (b) Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2013(a)) is amended by striking ``benefits'' the last place it appears 
and inserting ``Benefits''.
    (c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) 
is amended--
            (1) in the last sentence of subsection (i)(2)(D) by 
        striking ``section 13(b)(2)'' and inserting ``section 13(b)''; 
        and
            (2) in subsection (k)(4)(A) by striking ``paragraph 
        (2)(H)'' and inserting ``paragraph (2)(G)''.
    (d) Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(d)(4)) is amended--
            (1) in subparagraph (B)(vii) by moving the left margin 4 
        ems to the left, and
            (2) in subparagraph (F)(iii) by moving the left margin 6 
        ems to the left.
    (e) Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended by redesignating the 2d paragraph (12) as paragraph 
(13).
    (f) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2021) is amended--
            (1) in subsection (b)(3)(C) by striking ``civil money 
        penalties'' and inserting ``civil penalties''; and
            (2) in subsection (g)(1) by striking ``(7 U.S.C. 1786)'' 
        and inserting ``(42 U.S.C. 1786)''.
    (g) Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2024(b)(1)) is amended in the 1st sentence by striking ``an 
benefit'' both places it appears and inserting ``a benefit''.
    (h) Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(a)) is amended in the proviso following paragraph (8) by striking 
``, as amended.''.
    (i) Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(e)) is amended in the 1st sentence by striking ``sections 7(f)'' 
and inserting ``section 7(f)''.
    (j) Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by 
striking ``Food benefits'' and inserting ``Benefits''.
    (k) Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2035(f)(3)(C)) is amended by striking ``subsection'' and 
inserting ``subsections''.
    (l) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98-8; 7 U.S.C. 
612c note)'' and inserting ``(7 U.S.C. 7515)''.
    (m) Section 509 of the Older Americans Act of 1965 (42 U.S.C. 
3056g) is amended in the section heading by striking ``food stamp 
programs'' and inserting ``supplemental nutrition assistance program''.
    (n) Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act 
of 2008 (Public Law 110-246; 122 Stat. 1871) is amended by striking 
``531'' and inserting ``454''.
    (o) Section 3803(c)(2)(C)(vii) of title 31 of the United States 
Code is amended by striking ``section 3(l)'' and inserting ``section 
3(s)''.
    (p) Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193) is amended--
            (1) in subsection (a)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)'';
            (2) in subsection (b)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)''; and
            (3) in subsection (e)(2) by striking ``section 3(l)'' and 
        inserting ``section 3(s)''.
    (q) The Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
612c) is amended--
            (1) in section 4(a) by striking ``Food Stamp Act of 1977'' 
        and inserting ``Food and Nutrition Act of 2008''; and
            (2) in section 5--
                    (A) in subsection (i)(1) by striking ``Food Stamp 
                Act of 1977'' and inserting ``Food and Nutrition Act of 
                2008''; and
                    (B) in subsection (l)(2)(B) by striking ``Food 
                Stamp Act of 1977'' and inserting ``Food and Nutrition 
                Act of 2008''.
    (r) The Social Security Act (42 U.S.C. 301 et seq.) is amended--
            (1) in the heading of section 453(j)(10) by striking ``food 
        stamp'' and inserting ``supplemental nutrition assistance'';
            (2) in section 1137--
                    (A) in subsection (a)(5)(B) by striking ``food 
                stamp'' and inserting ``supplemental nutrition 
                assistance''; and
                    (B) in subsection (b)(4) by striking ``food stamp 
                program under the Food Stamp Act of 1977'' and 
                inserting ``supplemental nutrition assistance program 
                under the Food and Nutrition Act of 2008''; and
            (3) in the heading of section 1631(n) by striking ``Food 
        Stamp'' and inserting ``Supplemental Nutrition Assistance''.

SEC. 131. TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.

    The Secretary shall set the tolerance level for excluding small 
errors for the purposes of section 16(c) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2025(c))--
            (1) for fiscal year 2014 at an amount no greater than $25; 
        and
            (2) for each fiscal year thereafter, the amount specified 
        in paragraph (1) adjusted by the percentage by which the 
        thrifty food plan is adjusted under section 3(u)(4) of such Act 
        between June 30, 2012, and June 30 of the immediately preceding 
        fiscal year.

SEC. 132. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS PILOT PROGRAM.

    (a) Study.--
            (1) In general.--Prior to establishing the pilot program 
        under subsection (b), the Secretary shall conduct a study to be 
        completed not later than 2 years after the effective date of 
        this section to assess--
                    (A) the capabilities of the Commonwealth of the 
                Northern Mariana Islands to operate the supplemental 
                nutrition assistance program in the same manner in 
                which the program is operated in the States (as defined 
                in section 3 of the Food and Nutrition Act (7 U.S.C. 
                2011 et seq.)); and
                    (B) alternative models of the supplemental 
                nutrition assistance program operation and benefit 
                delivery that best meet the nutrition assistance needs 
                of the Commonwealth of the Northern Mariana Islands.
            (2) Scope.--The study conducted under paragraph (1)(A) will 
        assess the capability of the Commonwealth to fulfill the 
        responsibilities of a State agency, including--
                    (A) extending and limiting participation to 
                eligible households, as prescribed by sections 5 and 6 
                of the Act;
                    (B) issuing benefits through EBT cards, as 
                prescribed by section 7 of the Act;
                    (C) maintaining the integrity of the program, 
                including operation of a quality control system, as 
                prescribed by section 16(c) of the Act;
                    (D) implementing work requirements, including 
                operating an employment and training program, as 
                prescribed by section 6(d) of the Act; and
                    (E) paying a share of administrative costs with 
                non-Federal funds, as prescribed by section 16(a) of 
                the Act.
    (b) Establishment.--If the Secretary determines that a pilot 
program is feasible, the Secretary shall establish a pilot program for 
the Commonwealth of the Northern Mariana Islands to operate the 
supplemental nutrition assistance program in the same manner in which 
the program is operated in the States.
    (c) Scope.--The Secretary shall utilize the information obtained 
from the study conducted under subsection (a) to establish the scope of 
the pilot program established under subsection (b).
    (d) Report.--Not later than June 30, 2019, the Secretary shall 
submit to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report on the pilot program carried out under this section, including 
an analysis of the feasibility of operating in the Commonwealth of the 
Northern Mariana Islands the supplemental nutrition assistance program 
as it is operated in the States.
    (e) Funding.--
            (1) Study.--Of the funds made available under section 
        18(a)(1) of the Food and Nutrition Act of 2008, the Secretary 
        may use not more than $1,000,000 in each of fiscal years 2014 
        and 2015 to conduct the study described in subsection (a).
            (2) Pilot program.--Of the funds made available under 
        section 18(a)(1) of the Food and Nutrition Act of 2008, for the 
        purposes of establishing and carrying out the pilot program 
        established under subsection (b) of this section, including the 
        Federal costs for providing technical assistance to the 
        Commonwealth, authorizing and monitoring retail food stores, 
        and assessing pilot operations, the Secretary may use not more 
        than--
                    (A) $13,500,000 in fiscal year 2016; and
                    (B) $8,500,000 in each of fiscal years 2017 and 
                2018.

SEC. 133. ANNUAL STATE REPORT ON VERIFICATION OF SNAP PARTICIPATION.

    (a) Annual Report.--Not later 1 year after the date specified by 
the Secretary in the 180-day period beginning on the date of the 
enactment of this Act, and annually thereafter, each State agency that 
carries out the supplemental nutrition assistance program shall submit 
to the Secretary a report containing sufficient information for the 
Secretary to determine whether the State agency has, for the then most 
recently concluded fiscal year preceding such annual date, verified 
that households to which such State agency provided such assistance in 
such fiscal year--
            (1) did not obtain benefits attributable to a deceased 
        individual;
            (2) did not include an individual who was simultaneously 
        included in a household receiving such assistance in another 
        State; and
            (3) did not include, during the time benefits were 
        provided, an individual who was then disqualified from 
        receiving benefits.
    (b) Penalty for Noncompliance.--For any fiscal year for which a 
State agency fails to comply with subsection (a), the Secretary shall 
reduce by 50 percent the amount otherwise payable to such State agency 
under section 16(a) of the Food and Nutrition Act of 2008 with respect 
to such fiscal year.

SEC. 134. TERMINATION OF EXISTING AGREEMENT.

    Effective on the date of the enactment of this Act, the memorandum 
of understanding entered into on July 22, 2004, by the Secretary of 
Agriculture of the United States Department of Agriculture and the 
Secretary of Foreign Affairs of the Republic of Mexico and known as the 
``Partnership for Nutrition Assistance Initiative'' is null and void.

SEC. 135. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES.

    (a) Definitions.--In this section:
            (1) Food service program.--The term ``food service 
        program'' includes--
                    (A) food service at a residential child care 
                facility with a license from an appropriate State 
                agency;
                    (B) a child nutrition program (as defined in 
                section 25(b) of the Richard B. Russell National School 
                Lunch Act (42 U.S.C. 1769f(b));
                    (C) food service at a hospital or clinic or long 
                term care facility; and
                    (D) a senior meal program.
            (2) Indian; indian tribe; indian tribal organization.--The 
        terms ``Indian''; ``Indian tribe''; and ``Indian Tribal 
        Organization'' have the meanings given those terms in section 4 
        of the Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b).
            (3) Traditional food.--
                    (A) In general.--The term ``traditional food'' 
                means food that has traditionally been prepared and 
                consumed by an Indian tribe.
                    (B) Inclusions.--The term ``traditional food'' 
                includes--
                            (i) wild game meat;
                            (ii) fish;
                            (iii) seafood;
                            (iv) marine mammals;
                            (v) plants; and
                            (vi) berries.
    (b) Program.--Notwithstanding any other provision of law, the 
Secretary shall allow the donation to and serving of traditional food 
through a food service program at a public facility, nonprofit 
facility, including facilities operated by an Indian tribe or tribal 
organization that primarily serves Indians if the operator of the food 
service program--
            (1) ensures that the food is received whole, gutted, 
        gilled, as quarters, or as a roast, without further processing;
            (2) makes a reasonable determination that--
                    (A) the animal was not diseased;
                    (B) the food was butchered, dressed, transported, 
                and stored to prevent contamination, undesirable 
                microbial growth, or deterioration; and
                    (C) the food will not cause a significant health 
                hazard or potential for human illness;
            (3) carries out any further preparation or processing of 
        the food at a different time or in a different space from the 
        preparation or processing of other food for the applicable 
        program to prevent cross-contamination;
            (4) cleans and sanitizes food-contact surfaces of equipment 
        and utensils after processing the traditional food; and
            (5) labels donated traditional food with the name of the 
        food and stores the traditional food separately from other food 
        for the applicable program, including through storage in a 
        separate freezer or refrigerator or in a separate compartment 
        or shelf in the freezer or refrigerator.
    (c) Liability.--Liability for damages from donated traditional food 
and products to the participating food service program shall not be 
subject to civil or criminal liability arising from the nature, age, 
packaging, or condition of donated food.

SEC. 136. TESTING APPLICANTS FOR UNLAWFUL USE OF CONTROLLED SUBSTANCES.

    Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015), as 
amended by section 109, is amended by adding at the end the following:
    ``(s) Testing Applicants for Unlawful Use of Controlled 
Substances.--
            ``(1) Nothing in this Act, or in any other Federal law, 
        shall be considered to prevent a State, at the full cost to 
        such State, from--
                    ``(A) enacting legislation to provide for testing 
                any individual who is a member of a household applying 
                for supplemental nutrition assistance benefits, for the 
                unlawful use of controlled substances as a condition 
                for receiving such benefits; and
                    ``(B) finding an individual ineligible to 
                participate in the supplemental nutrition assistance 
                program on the basis of the positive result of the 
                testing conducted by the State under such legislation.
            ``(2) For purposes of this subsection, term `controlled 
        substance' has the meaning given such term in section 102 of 
        the Controlled Substances Act ((21 U.S.C. 802).''.

SEC. 137. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN CONVICTED FELONS.

    (a) Amendment.--Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015), as amended by sections 109 and 135, is amended by adding 
at the end the following:
    ``(t) Disqualification for Certain Convicted Felons.--
            ``(1) In general.--An individual shall not be eligible for 
        benefits under this Act if the individual is convicted of--
                    ``(A) aggravated sexual abuse under section 2241 of 
                title 18, United States Code;
                    ``(B) murder under section 1111 of title 18, United 
                States Code;
                    ``(C) an offense under chapter 110 of title 18, 
                United States Code;
                    ``(D) a Federal or State offense involving sexual 
                assault, as defined in 40002(a) of the Violence Against 
                Women Act of 1994 (42 U.S.C. 13925(a)); or
                    ``(E) an offense under State law determined by the 
                Attorney General to be substantially similar to an 
                offense described in subparagraph (A), (B), or (C).
            ``(2) Effects on assistance and benefits for others.--The 
        amount of benefits otherwise required to be provided to an 
        eligible household under this Act shall be determined by 
        considering the individual to whom paragraph (1) applies not to 
        be a member of such household, except that the income and 
        resources of the individual shall be considered to be income 
        and resources of the household.
            ``(3) Enforcement.--Each State shall require each 
        individual applying for benefits under this Act, during the 
        application process, to state, in writing, whether the 
        individual, or any member of the household of the individual, 
        has been convicted of a crime described in paragraph (1).''.
    (b) Conforming Amendment.--Section 5(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2014(a)), as amended by section 109, is amended 
in the 2d sentence by striking ``and (r)'' and inserting ``, (r), and 
(t)''.
    (c) Inapplicability to Convictions Occurring on or Before 
Enactment.--The amendments made by this section shall not apply to a 
conviction if the conviction is for conduct occurring on or before the 
date of the enactment of this Act.

SEC. 138. EXPUNGEMENT OF UNUSED SUPPLEMENTAL NUTRITION ASSISTANCE 
              PROGRAM BENEFITS.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020), 
as amended by section 115, is amended by adding at the end the 
following:
    ``(w) Expungement of Unused Benefits.--The State agency shall 
expunge from the EBT account of a household benefits that are not used 
before the expiration of the 60-day period beginning on the date such 
benefits are posted to such account.''.

SEC. 139. PILOT PROJECTS TO PROMOTE WORK AND INCREASE STATE 
              ACCOUNTABILITY IN THE SUPPLEMENTAL NUTRITION ASSISTANCE 
              PROGRAM.

    (a) Pilot Projects.--Section 17 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2026), as amended by sections 122 and 123, is amended by 
adding at the end the following:
    ``(n) Pilot Projects To Promote Work and Increase State 
Accountability in the Supplemental Nutrition Assistance Program.--
            ``(1) In general.--The Secretary shall carry out pilot 
        projects to develop and test methods allowing States to run a 
        work program with certain features comparable to the State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.), with the intent of increasing 
        employment and self-sufficiency through increased State 
        accountability and thereby reducing the need for supplemental 
        nutrition assistance benefits.
            ``(2) Agreements.--
                    ``(A) In general.--In carrying out this subsection, 
                the Secretary shall enter into cooperative agreements 
                with States in accordance with pilot projects that meet 
                the criteria required under this subsection.
                    ``(B) Application.--To be eligible to enter into a 
                cooperative agreement to operate a pilot project under 
                this subsection, a State shall amend its State plan 
                under section 11(d) to include a description of its 
                pilot project and explanations of how such project 
                meets the criteria required under this subsection. The 
                Secretary may not disapprove a pilot project which 
                meets the requirements under this subsection.
                    ``(C) Assurances.--A State shall include in its 
                plan assurances that its pilot project will--
                            ``(i) operate for at least three 12-month 
                        periods but not more than five 12-month 
                        periods;
                            ``(ii) have a robust data collection system 
                        for program administration that is designed and 
                        shared with project evaluators to ensure proper 
                        and timely evaluation; and
                            ``(iii) intend to offer a work activity 
                        described in paragraph (3) to adults assigned 
                        and required to participate under paragraph 
                        (4)(A) and who are not exempt under paragraph 
                        (4)(B).
                    ``(D) Number of pilot projects.--Any State may 
                carry out a pilot project that meets the requirements 
                of this subsection.
                    ``(E) Extent of pilot projects.--Pilot projects 
                shall cover no less than the entire State.
            ``(3) Work activity.--(A) For purposes of this subsection, 
        the term `work activity' means any of the following:
                    ``(i) Employment in the public or private sector 
                that is not subsidized by any public program.
                    ``(ii) Employment in the private sector for which 
                the employer receives a subsidy from public funds to 
                offset some or all of the wages and costs of employing 
                an adult.
                    ``(iii) Employment in the public sector for which 
                the employer receives a subsidy from public funds to 
                offset some or all of the wages and costs of employing 
                an adult.
                    ``(iv) A work activity that--
                            ``(I) is performed in return for public 
                        benefits;
                            ``(II) provides an adult with an 
                        opportunity to acquire the general skills, 
                        knowledge, and work habits necessary to obtain 
                        employment;
                            ``(III) is designed to improve the 
                        employability of those who cannot find 
                        unsubsidized employment; and
                            ``(IV) is supervised by an employer, work 
                        site sponsor, or other responsible party on an 
                        ongoing basis.
                    ``(v) Training in the public or private sector that 
                is given to a paid employee while he or she is engaged 
                in productive work and that provides knowledge and 
                skills essential to the full and adequate performance 
                of the job.
                    ``(vi) Job search, obtaining employment, or 
                preparation to seek or obtain employment, including--
                            ``(I) life skills training;
                            ``(II) substance abuse treatment or mental 
                        health treatment, determined to be necessary 
                        and documented by a qualified medical, 
                        substance abuse, or mental health professional; 
                        or
                            ``(III) rehabilitation activities,
                supervised by a public agency or other responsible 
                party on an ongoing basis.
                    ``(vii) Structured programs and embedded 
                activities--
                            ``(I) in which adults perform work for the 
                        direct benefit of the community under the 
                        auspices of public or nonprofit organizations;
                            ``(II) that are limited to projects that 
                        serve useful community purposes in fields such 
                        as health, social service, environmental 
                        protection, education, urban and rural 
                        redevelopment, welfare, recreation, public 
                        facilities, public safety, and child care;
                            ``(III) that are designed to improve the 
                        employability of adults not otherwise able to 
                        obtain unsubsidized employment; and
                            ``(IV) that are supervised on an ongoing 
                        basis; and
                            ``(V) with respect to which a State agency 
                        takes into account, to the extent possible, the 
                        prior training, experience, and skills of a 
                        recipient in making appropriate community 
                        service assignments.
                    ``(viii) Career and technical training programs 
                (not to exceed 12 months with respect to any adult) 
                that are directly related to the preparation of adults 
                for employment in current or emerging occupations and 
                that are supervised on an ongoing basis.
                    ``(ix) Training or education for job skills that 
                are required by an employer to provide an adult with 
                the ability to obtain employment or to advance or adapt 
                to the changing demands of the workplace and that are 
                supervised on an ongoing basis.
                    ``(x) Education that is related to a specific 
                occupation, job, or job offer and that is supervised on 
                an ongoing basis.
                    ``(xi) In the case of an adult who has not 
                completed secondary school or received such a 
                certificate of general equivalence, regular 
                attendance--
                            ``(I) in accordance with the requirements 
                        of the secondary school or course of study, at 
                        a secondary school or in a course of study 
                        leading to such certificate; and
                            ``(II) supervised on an ongoing basis.
                    ``(xii) Providing child care to enable another 
                recipient of public benefits to participate in a 
                community service program that--
                            ``(I) does not provide compensation for 
                        such community service;
                            ``(II) is a structured program designed to 
                        improve the employability of adults who 
                        participate in such program; and
                            ``(III) is supervised on an ongoing basis.
            ``(B) Protections.--Work activities under this subsection 
        shall be subject to all applicable health and safety standards. 
        Except as described in clauses (i), (ii), and (iii) of 
        subparagraph (A), the term `work activity' shall be considered 
        work preparation and not defined as employment for purposes of 
        other law.
            ``(4) Pilot projects.--Pilot projects carried out under 
        this subsection shall include interventions to which adults are 
        assigned that are designed to reduce unnecessary dependence, 
        promote self-sufficiency, increase work levels, increase earned 
        income, and reduce supplemental nutrition assistance benefit 
        expenditures among households eligible for, applying for, or 
        participating in the supplemental nutrition assistance program.
                    ``(A) Adults assigned to interventions by the State 
                shall--
                            ``(i) be subject to mandatory participation 
                        in work activities specified in paragraph (3);
                            ``(ii) participate in work activities 
                        specified in paragraph (3) for a minimum of 20 
                        hours per week per household;
                            ``(iii) be a maximum age of not less than 
                        50 and not more than 60, as defined by the 
                        State;
                            ``(iv) be subject to penalties during a 
                        period of nonparticipation without good cause 
                        ranging from, at State option, a minimum of the 
                        removal of the adults from the household 
                        benefit amount, up to a maximum of the 
                        discontinuance of the entire household benefit 
                        amount; and
                            ``(v) not be penalized for nonparticipation 
                        if child care is not available for 1 or more 
                        children under 6 years of age.
                    ``(B) The State shall allow certain individuals to 
                be exempt from work requirements--
                            ``(i) those participating in work programs 
                        under a State program funded under part A of 
                        title IV of the Social Security Act (42 U.S.C. 
                        601 et seq.) for an equal or greater number of 
                        hours;
                            ``(ii) those with 1 or more dependent 
                        children under 1 year of age;
                            ``(iii) 1 adult family member per household 
                        who is needed in the home to care for a 
                        disabled family member;
                            ``(iv) an adult who is receiving temporary 
                        or permanent disability benefits provided by a 
                        governmental entity; and
                            ``(v) those with a good cause reason for 
                        nonparticipation, such as victims of domestic 
                        violence, as defined by the State.
            ``(5) Evaluation and reporting.--
                    ``(A) Evaluation.--
                            ``(i) Independent evaluation.--
                                    ``(I) In general.--The Secretary 
                                shall provide for each State that 
                                enters into a cooperative agreement 
                                under paragraph (2) an independent, 
                                longitudinal evaluation of its pilot 
                                project under this subsection to 
                                determine total program savings over 
                                the entire course of the pilot project 
                                with results reported in consecutive 
                                12-month increments.
                                    ``(II) Purpose.--The purpose of the 
                                evaluation is to measure the impact of 
                                interventions provided by the State 
                                under the pilot project on the ability 
                                of adults in households eligible for, 
                                applying for, or participating in the 
                                supplemental nutrition assistance 
                                program to find and retain employment 
                                that leads to increased household 
                                income and reduced dependency.
                                    ``(III) Requirement.--The 
                                independent evaluation under subclause 
                                (I) shall use valid statistical methods 
                                which can determine the difference 
                                between supplemental nutrition 
                                assistance benefit expenditures, if 
                                any, as a result of the interventions 
                                as compared to a control group that--
                                            ``(aa) is not subject to 
                                        the interventions provided by 
                                        the State under the pilot 
                                        project under this subsection; 
                                        and
                                            ``(bb) maintains services 
                                        provided under 16(h) in the 
                                        year prior to the start of the 
                                        pilot project under this 
                                        subsection.
                                    ``(IV) Option.--States shall have 
                                the option to evaluate pilot projects 
                                by matched counties or matched 
                                geographical areas using a constructed 
                                control group design to isolate the 
                                effects of the intervention of the 
                                pilot project.
                                    ``(V) Definition.--Constructed 
                                control group means there is no random 
                                assignment, and instead program 
                                participants (those subject to 
                                interventions) and non-participants 
                                (control described in subclause (III)) 
                                are equated using matching or 
                                statistical procedures on 
                                characteristics that may be associated 
                                with program outcomes.
                    ``(B) Reporting.--Not later than 90 days after the 
                end of fiscal year 2014 and of each fiscal year 
                thereafter, until the completion of the last evaluation 
                under subparagraph (A), the Secretary shall submit to 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, a report that 
                includes a description of--
                            ``(i) the status of each pilot project 
                        carried out under this subsection;
                            ``(ii) the results of the evaluation 
                        completed during the previous fiscal year; and
                            ``(iii) to the maximum extent practicable--
                                    ``(I) baseline information relevant 
                                to the stated goals and desired 
                                outcomes of the pilot project;
                                    ``(II) the impact of the 
                                interventions on appropriate 
                                employment, income, and public benefit 
                                receipt outcomes among households 
                                participating in the pilot project;
                                    ``(III) equivalent information 
                                about similar or identical measures for 
                                control groups;
                                    ``(IV) the planned dissemination of 
                                the report findings to State agencies; 
                                and
                                    ``(V) the steps and funding 
                                necessary to incorporate into State 
                                employment and training programs the 
                                components of pilot projects that 
                                demonstrate increased employment and 
                                earnings.
                    ``(C) Public dissemination.--In addition to the 
                reporting requirements under subparagraph (B), 
                evaluation results shall be shared broadly to inform 
                policy makers, service providers, other partners, and 
                the public in order to promote wide use of successful 
                strategies, including by posting evaluation results on 
                the Internet website of the Department of Agriculture.
            ``(6) Funding.--
                    ``(A) Additional available funds.--From amounts 
                made available under section 18(a)(1), the Secretary 
                shall make available--
                            ``(i) up to $1,000,000 for each of the 
                        fiscal years 2014 through 2017 for evaluations 
                        described in paragraph (5) to carry out this 
                        subsection, with such amounts to remain 
                        available until expended; and
                            ``(ii) amounts equal to one-half of the 
                        accumulated supplemental nutrition assistance 
                        benefit dollars saved over each consecutive 12-
                        month period according to the evaluation under 
                        paragraph (5) for bonus grants to States under 
                        paragraph (7)(B).
                    ``(B) Administrative expenses.--
                            ``(i) Reimbursement.--Except as provided in 
                        clause (ii)--
                                    ``(I) if, in carrying out a pilot 
                                project under this subsection during a 
                                fiscal year, a State incurs costs that 
                                exceed the amount allocated to the 
                                State agency under section 16(h)(1), 
                                the Secretary shall pay such State an 
                                amount equal to 50 percent of such 
                                costs; and
                                    ``(II) the Secretary shall also 
                                reimburse the State in an amount equal 
                                to 50 percent of the total amount of 
                                payments made or costs incurred by the 
                                State agency in connection with 
                                transportation costs and other expenses 
                                reasonably necessary and directly 
                                related to participation in a pilot 
                                project under this subsection, except 
                                that the amount of the reimbursement 
                                for dependent care expenses shall not 
                                exceed an amount equal to the payment 
                                made under section 6(d)(4)(I)(i)(II) 
                                but not more than the applicable local 
                                market rate, and such reimbursement 
                                shall not be made out of funds 
                                allocated under section 16(h)(1).
                            ``(ii) Limitation.--For any fiscal year, 
                        the Secretary may not pay under clause (i) to a 
                        State an amount the exceeds the amount equal to 
                        the product of--
                                    ``(I) the amount of administrative 
                                expenses that would be reimbursable for 
                                such fiscal year to such State under 
                                clause (i) without regard to this 
                                clause; and
                                    ``(II) $277,000,000 (plus the 
                                amount carried over, if any, under 
                                clause (iii)), divided by the aggregate 
                                amount of administrative expenses that 
                                would be reimbursable for such fiscal 
                                year to all of the States under clause 
                                (i) without regard to this clause.
                            ``(iii) Carryover.--The amount by which 
                        $277,000,000 exceeds the aggregate amount paid 
                        under clause (i) for a particular fiscal year 
                        shall remain available for payments under such 
                        clause for any subsequent fiscal year.
                    ``(C) Other funds.--Any additional funds required 
                by a State to carry out a pilot project under this 
                subsection may be provided by the State from funds made 
                available to the State for such purpose and in 
                accordance with State and other Federal laws, including 
                the following:
                            ``(i) Section 403 of the Social Security 
                        Act (42 U.S.C. 603).
                            ``(ii) The Workforce Investment Act of 1998 
                        (29 U.S.C. 9201 et seq.).
                            ``(iii) The Child Care and Development 
                        Block Grant Act of 1990 (42 U.S.C. 9858 et 
                        seq.) and section 418 of the Social Security 
                        Act (42 U.S.C. 618).
                            ``(iv) The social services block grant 
                        under subtitle A of title XX of the Social 
                        Security Act (42 U.S.C. 1397 et seq.).
            ``(7) Use of funds.--
                    ``(A) Specific uses.--Funds provided under this 
                subsection for evaluation of pilot projects under 
                paragraph (6)(A)(i) shall be used only for--
                            ``(i) pilot projects that comply with this 
                        subsection;
                            ``(ii) the costs incurred in gathering and 
                        providing information and data used to conduct 
                        the independent evaluation under paragraph (5); 
                        and
                            ``(iii) the costs of the evaluation under 
                        paragraph (5).
                    ``(B) Limitation.--Funds provided for bonus grants 
                to States for pilot projects under subparagraph 
                (6)(A)(ii) shall be used only for--
                            ``(i) pilot projects that comply with this 
                        subsection; and
                            ``(ii) any State purpose, not to be 
                        restricted to the supplemental nutrition 
                        assistance program or its beneficiary 
                        population.''.
    (b) Conforming Amendments.--The Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.) is amended--
            (1) in section 16, as amended by section 121 of this Act--
                    (A) in subsection (a) by striking ``subsection 
                (k)'' and inserting ``subsections (k) and (h) and 
                section 20''; and
                    (B) in subsection (h)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A) by 
                                inserting ``under sections 6(d)(4) and 
                                17(n)'' after ``programs''; and
                                    (II) by striking subparagraph (E);
                            (ii) by striking paragraphs (2) and (3), 
                        and inserting the following:
            ``(2) Exclusion of reimbursement for administrative 
        costs.--No funds may be paid under subsection (a) to a State 
        agency for administrative costs incurred to carry out any of 
        such programs in such fiscal year.'';
                            (iii) in paragraph (4) by inserting ``or 
                        17(n)'' after ``section 6(d)(4)''; and
                            (iv) by redesignating paragraphs (4) and 
                        (5) as paragraphs (3) and (4), respectively;
            (2) in section 20 by amending subsection (g) to read as 
        follows:
    ``(g) Exclusion of Reimbursement for Administrative Costs.--No 
funds may be paid under this section to a State agency for 
administrative costs incurred to carry out a workfare program operated 
under this section.''; and
            (3) in section 22(d)(1)(B)(ii) by striking ``, (g), (h)(2), 
        and (h)(3)'' and inserting ``and (g)''.

SEC. 140. IMPROVED WAGE VERIFICATION USING THE NATIONAL DIRECTORY OF 
              NEW HIRES.

    Effective October 1, 2013, section 11(e) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2020(e)) is amended--
            (1) in paragraph (3) by inserting ``and after compliance 
        with the requirement specified in paragraph (24)'' after 
        ``section 16(e) of this Act'',
            (2) in paragraph (22) by striking ``and'' at the end,
            (3) in paragraph (23) by striking the period at the end and 
        inserting ``; and'', and
            (4) by adding at the end the following:
            ``(24) that the State agency shall request wage data 
        directly from the National Directory of New Hires established 
        under section 453(i) of the Social Security Act (42 U.S.C. 
        653(i)) relevant to determining eligibility to receive 
        supplemental nutrition assistance program benefits and 
        determining the correct amount of such benefits.''.

SEC. 141. FEASIBILITY STUDY FOR INDIAN TRIBES.

    Section 4 of the Food and Nutrition Act of 2008 (7 U.S.C. 2013) is 
amended by adding at the end the following:
    ``(d) Feasibility Study for Indian Tribes.--
            ``(1) Study.--Subject to the availability of appropriations 
        to carry out this subsection, the Secretary shall conduct a 
        study to determine the feasibility of a tribal demonstration 
        project for tribes to administer all Federal food assistance 
        programs, services, functions, and activities (or portions 
        thereof) of the agency.
            ``(2) Considerations.--In conducting the study, the 
        Secretary shall consider--
                    ``(A) the probable effects on specific programs and 
                program beneficiaries of such a demonstration project;
                    ``(B) statutory, regulatory, or other impediments 
                to implementation of such a demonstration project;
                    ``(C) strategies for implementing such a 
                demonstration project;
                    ``(D) probable costs or savings associated with 
                such a demonstration project;
                    ``(E) methods to assure quality and accountability 
                in such a demonstration project; and
                    ``(F) such other issues that may be determined by 
                the Secretary or developed through consultation with 
                pursuant to paragraph (4).
            ``(3) Report.--Not later than 18 months after the effective 
        date of this subsection, the Secretary shall submit a report to 
        the Committee on Agriculture, Nutrition and Forestry of the 
        Senate and the Committee on Agriculture of the House of 
        Representatives. The report shall contain--
                    ``(A) the results of the study under this 
                subsection;
                    ``(B) a list of programs, services, functions, and 
                activities (or portions thereof) within each agency 
                with respect to which it would be feasible to include 
                in a tribal demonstration project;
                    ``(C) a list of programs, services, functions, and 
                activities (or portions thereof) included in the list 
                provided pursuant to subparagraph (B) that could be 
                included in a tribal demonstration project without 
                amending a statute, or waiving regulations that the 
                Secretary may not waiver; and
                    ``(D) a list of legislative actions required in 
                order to include those programs, services, function, 
                and activities (or portions thereof) included in the 
                list provided pursuant to subparagraph (B) but not 
                included in the list provided pursuant to subparagraph 
                (C), in a tribal demonstration project.
            ``(4) Consultation with indian tribes.--The Secretary shall 
        consult with Indian tribes to determine a protocol for 
        consultation under paragraph (1) prior to consultation under 
        such paragraph with the other entities described in such 
        paragraph. The protocol shall require, at a minimum, that--
                    ``(A) the government-to-government relationship 
                with Indian tribes forms the basis for the consultation 
                process;
                    ``(B) the Indian tribes and the Secretary jointly 
                conduct the consultations required by this subsection; 
                and
                    ``(C) the consultation process allows for separate 
                and direct recommendations from the Indian tribes and 
                other entities described in paragraph (1).
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000.''.

               TITLE II--COMMODITY DISTRIBUTION PROGRAMS

SEC. 201. COMMODITY DISTRIBUTION PROGRAM.

    Section 4(a) of the Agriculture and Consumer Protection Act of 1973 
(7 U.S.C. 612c note; Public Law 93-86) is amended in the 1st sentence 
by striking ``2012'' and inserting ``2016''.

SEC. 202. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93-86) is amended--
            (1) in paragraphs (1) and (2)(B) of subsection (a) by 
        striking ``2012'' each place it appears and inserting ``2016'';
            (2) in the 1st sentence of subsection (d)(2) by striking 
        ``2012'' and inserting ``2016'';
            (3) by striking subsection (g) and inserting the following:
    ``(g) Eligibility.--Except as provided in subsection (m), the 
States shall only provide assistance under the commodity supplemental 
food program to low-income individuals aged 60 and older.''; and
            (4) by adding at the end the following:
    ``(m) Phase-Out.--Notwithstanding any other provision of law, an 
individual who receives assistance under the commodity supplemental 
food program on the day before the effective date of this subsection 
shall continue to receive that assistance until the date on which the 
individual no longer qualifies for assistance under the eligibility 
criteria for the program in effect on the day before the effective date 
of this subsection.''.

SEC. 203. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
              PROJECTS.

    Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(2)(A)) is amended in the 1st sentence by striking ``2012'' 
and inserting ``2016''.

SEC. 204. PROCESSING OF COMMODITIES.

    (a) Section 17 of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note) is amended by--
            (1) striking the heading and inserting ``commodity 
        donations and processing''; and
            (2) adding at the end the following:
    ``(c) Processing.--For any program included in subsection (b), the 
Secretary may, notwithstanding any other provision of State or Federal 
law relating to the procurement of goods and services--
            ``(1) retain title to commodities delivered to a processor, 
        on behalf of a State (including a State distributing agency and 
        a recipient agency), until such time as end products containing 
        such commodities, or similar commodities as approved by the 
        Secretary, are delivered to a State distributing agency or to a 
        recipient agency; and
            ``(2) promulgate regulations to ensure accountability for 
        commodities provided to a processor for processing into end 
        products, and to facilitate processing of commodities into end 
        products for use by recipient agencies. Such regulations may 
        provide that--
                    ``(A) a processor that receives commodities for 
                processing into end products, or provides a service 
                with respect to such commodities or end products, in 
                accordance with its agreement with a State distributing 
                agency or a recipient agency, provide to the Secretary 
                a bond or other means of financial assurance to protect 
                the value of such commodities; and
                    ``(B) in the event a processor fails to deliver to 
                a State distributing agency or a recipient agency an 
                end product in conformance with the processing 
                agreement entered into under this Act, the Secretary 
                take action with respect to the bond or other means of 
                financial assurance pursuant to regulations promulgated 
                under this paragraph and distribute any proceeds 
                obtained by the Secretary to one or more State 
                distributing agencies and recipient agencies as 
                determined appropriate by the Secretary.''.
    (b) Definitions.--Section 18 of the Commodity Distribution Reform 
Act and WIC Amendments of 1987 (7 U.S.C. 612c note) is amended by 
striking paragraphs (1) and (2) and inserting the following:
            ``(1) The term `commodities' means agricultural commodities 
        and their products that are donated by the Secretary for use by 
        recipient agencies.
            ``(2) The term `end product' means a food product that 
        contains processed commodities.''.
    (c) Technical and Conforming Amendments.--Section 3 of the 
Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 
612c note; Public Law 100-237) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2) by striking subparagraph (B) 
                and inserting the following:
                    ``(B) the program established under section 4(b) of 
                the Food and Nutrition Act of 2008 (7 U.S.C. 
                2013(b));''; and
                    (B) in paragraph (3)(D) by striking ``the Committee 
                on Education and Labor'' and inserting ``the Committee 
                on Education and the Workforce'';
            (2) in subsection (b)(1)(A)(ii) by striking ``section 32 of 
        the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)'' and 
        inserting ``section 32 of the Act of August 24, 1935 (7 U.S.C. 
        612c)'';
            (3) in subsection (e)(1)(D)(iii) by striking subclause (II) 
        and inserting the following:
                                    ``(II) the program established 
                                under section 4(b) of the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2013(b));''; and
            (4) in subsection (k) by striking ``the Committee on 
        Education and Labor'' and inserting ``the Committee on 
        Education and the Workforce''.

                        TITLE III--MISCELLANEOUS

SEC. 301. FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) in the section heading by striking ``seniors'';
            (2) by amending subsection (a) to read as follows:
    ``(a) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall use to carry 
        out and expand the farmers market nutrition program $20,600,000 
        for each of fiscal years 2014 through 2016.
            ``(2) Additional funding.--There is authorized to be 
        appropriated such sums as are necessary to carry out this 
        subsection for each of the fiscal years specified in paragraph 
        (1).
            ``(3) Requirement.--Not less than 50 percent of the funds 
        made available to carry out this section in any fiscal year 
        shall be used to provide assistance to seniors.'';
            (3) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``seniors''; and
                    (B) in paragraph (1) by inserting ``, and low-
                income families who are determined to be at nutritional 
                risk'' after ``low-income seniors'';
            (4) in subsection (c) by striking ``seniors'';
            (5) in subsection (d) by striking ``seniors'';
            (6) in subsection (e) by striking ``seniors'';
            (7) by redesignating subsections (c), (d), (e), and (f) as 
        subsections (d), (e), (f), and (g), respectively; and
            (8) by inserting after subsection (b) the following:
    ``(c) State Grants and Other Assistance.--The Secretary shall carry 
out the Program through grants and other assistance provided in 
accordance with agreements made with States, for implementation through 
State agencies and local agencies, that include provisions--
            ``(1) for the issuance of coupons or vouchers to 
        participating individuals;
            ``(2) establishing an appropriate annual percentage 
        limitation on the use of funds for administrative costs; and
            ``(3) specifying other terms and conditions as the 
        Secretary deems appropriate to encourage expanding the 
        participation of small scale farmers in Federal nutrition 
        programs.''.

SEC. 302. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    Section 4403 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3171 note; Public Law 107-171) is repealed.

SEC. 303. FRESH FRUIT AND VEGETABLE PROGRAM.

    Section 19 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769a) is amended--
            (1) in the section heading, by striking ``fresh'';
            (2) in subsection (a), by striking ``fresh'';
            (3) in subsection (b), by striking ``fresh''; and
            (4) in subsection (e), by striking ``fresh''.

SEC. 304. ADDITIONAL AUTHORITY FOR PURCHASE OF FRESH FRUITS, 
              VEGETABLES, AND OTHER SPECIALTY FOOD CROPS.

    Section 10603 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 612c-4) is amended--
            (1) in subsection (b), by striking ``2012'' and inserting 
        ``2016'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following:
    ``(c) Pilot Grant Program for Purchase of Fresh Fruits and 
Vegetables.--
            ``(1) In general.--Using amounts made available to carry 
        out subsection (b), the Secretary of Agriculture shall conduct 
        a pilot program under which the Secretary will give not more 
        than five participating States the option of receiving a grant 
        in an amount equal to the value of the commodities that the 
        participating State would otherwise receive under this section 
        for each of fiscal years 2014 through 2016.
            ``(2) Use of grant funds.--A participating State receiving 
        a grant under this subsection may use the grant funds solely to 
        purchase fresh fruits and vegetables for distribution to 
        schools and service institutions in the State that participate 
        in the food service programs under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
            ``(3) Selection of participating states.--The Secretary 
        shall select participating States from applications submitted 
        by the States.
            ``(4) Reporting requirements.--
                    ``(A) School and service institution requirement.--
                Schools and service institutions in a participating 
                State shall keep records of purchases of fresh fruits 
                and vegetables made using the grant funds and report 
                such records to the State.
                    ``(B) State requirement.--Each participating State 
                shall submit to the Secretary a report on the success 
                of the pilot program in the State, including 
                information on--
                            ``(i) the amount and value of each type of 
                        fresh fruit and vegetable purchased by the 
                        State; and
                            ``(ii) the benefit provided by such 
                        purchases in conducting the school food service 
                        in the State, including meeting school meal 
                        requirements.''.

SEC. 305. ENCOURAGING LOCALLY AND REGIONALLY GROWN AND RAISED FOOD.

    (a) Commodity Purchase Streamlining.--The Secretary may permit each 
school food authority with a low annual commodity entitlement value, as 
determined by the Secretary, to elect to substitute locally and 
regionally grown and raised food for the authority's allotment, in 
whole or in part, of commodity assistance for the school meal programs 
under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
if--
            (1) the election is requested by the school food authority;
            (2) the Secretary determines that the election will reduce 
        State and Federal administrative costs; and
            (3) the election will provide the school food authority 
        with greater flexibility to purchase locally and regionally 
        grown and raised foods.
    (b) Farm-to-School Demonstration Programs.--
            (1) In general.--The Secretary may establish farm-to-school 
        demonstration programs under which school food authorities, 
        agricultural producers producing for local and regional 
        markets, and other farm-to-school stakeholders will collaborate 
        with the Agriculture Marketing Service to, on a cost neutral 
        basis, source food for the school meal programs under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.) from local farmers and ranchers in lieu of the commodity 
        assistance provided to the school food authorities for the 
        school meal programs.
            (2) Requirements.--
                    (A) In general.--Each demonstration program carried 
                out under this subsection shall--
                            (i) facilitate and increase the purchase of 
                        unprocessed and minimally processed locally and 
                        regionally grown and raised agricultural 
                        products to be served under the school meal 
                        programs;
                            (ii) test methods to improve procurement, 
                        transportation, and meal preparation processes 
                        for the school meal programs;
                            (iii) assess whether administrative costs 
                        can be saved through increased school food 
                        authority flexibility to source locally and 
                        regionally produced foods for the school meal 
                        programs; and
                            (iv) undertake rigorous evaluation and 
                        share information about results of the 
                        demonstration program, including cost savings, 
                        with the Secretary, other school food 
                        authorities, agricultural producers producing 
                        for the local and regional market, and the 
                        general public.
                    (B) Plans.--In order to be selected to carry out a 
                demonstration program under this subsection, a school 
                food authority shall submit to the Secretary a plan at 
                such time and in such manner as the Secretary may 
                require, and containing information with respect to the 
                requirements described in clauses (i) through (iv) of 
                subparagraph (A).
            (3) Technical assistance.--The Secretary shall provide 
        technical assistance to demonstration program participants to 
        assist such participants to acquire bids from potential vendors 
        in a timely and cost-effective manner.
            (4) Length.--The Secretary shall determine the appropriate 
        length of time for each demonstration program under this 
        subsection.
            (5) Coordination.--The Secretary shall coordinate among 
        relevant agencies of the Department of Agriculture and non-
        governmental organizations with appropriate expertise to 
        facilitate the provision of training and technical assistance 
        necessary to successfully carry out demonstration programs 
        under this subsection.
            (6) Number.--Subject to the availability of funds to carry 
        out this subsection, the Secretary shall select at least 10 
        demonstration programs to be carried out under this subsection.
            (7) Diversity and balance.--In selecting demonstration 
        programs to be carried out under this subsection, the Secretary 
        shall, to the maximum extent practicable, ensure--
                    (A) geographical diversity;
                    (B) that at least half of the demonstration 
                programs are completed in collaboration with school 
                food authorities with small annual commodity 
                entitlements, as determined by the Secretary;
                    (C) that at least half of the demonstration 
                programs are completed in rural or tribal communities;
                    (D) equitable treatment of school food authorities 
                with a high percentage of students eligible for free or 
                reduced price lunches, as determined by the Secretary; 
                and
                    (E) that at least one of the demonstration programs 
                is completed on a military installation as defined in 
                section 2687(e)(1) of title 10, United States Code.

SEC. 306. REVIEW OF PUBLIC HEALTH BENEFITS OF WHITE POTATOES.

    The Secretary shall conduct a review of the economic and public 
health benefits of white potatoes on low-income families who are 
determined to be at nutritional risk. Not later than 1 year after the 
date of the enactment of this Act, the Secretary shall report the 
findings of this review to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate.

SEC. 307. HEALTHY FOOD FINANCING INITIATIVE.

    (a) In General.--Subtitle D of title II of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is 
amended by adding at the end the following:

``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.

    ``(a) Purpose.--The purpose of this section is to enhance the 
authorities of the Secretary to support efforts to provide access to 
healthy food by establishing an initiative to improve access to healthy 
foods in underserved areas, to create and preserve quality jobs, and to 
revitalize low-income communities by providing loans and grants to 
eligible fresh, healthy food retailers to overcome the higher costs and 
initial barriers to entry in underserved areas.
    ``(b) Definitions.--In this section:
            ``(1) Community development financial institution.--The 
        term `community development financial institution' has the 
        meaning given the term in section 103 of the Community 
        Development Banking and Financial Institutions Act of 1994 (12 
        U.S.C. 4702).
            ``(2) Initiative.--The term `Initiative' means the Healthy 
        Food Financing Initiative established under subsection (c)(1).
            ``(3) National fund manager.--The term `national fund 
        manager' means a community development financial institution 
        that is--
                    ``(A) in existence on the date of enactment of this 
                section; and
                    ``(B) certified by the Community Development 
                Financial Institution Fund of the Department of 
                Treasury to manage the Initiative for purposes of--
                            ``(i) raising private capital;
                            ``(ii) providing financial and technical 
                        assistance to partnerships; and
                            ``(iii) funding eligible projects to 
                        attract fresh, healthy food retailers to 
                        underserved areas, in accordance with this 
                        section.
            ``(4) Partnership.--The term `partnership' means a 
        regional, State, or local public-private partnership that--
                    ``(A) is organized to improve access to fresh, 
                healthy foods;
                    ``(B) provides financial and technical assistance 
                to eligible projects; and
                    ``(C) meets such other criteria as the Secretary 
                may establish.
            ``(5) Perishable food.--The term `perishable food' means a 
        staple food that is fresh, refrigerated, or frozen.
            ``(6) Quality job.--The term `quality job' means a job that 
        provides wages and other benefits comparable to, or better 
        than, similar positions in existing businesses of similar size 
        in similar local economies.
            ``(7) Staple food.--
                    ``(A) In general.--The term `staple food' means 
                food that is a basic dietary item.
                    ``(B) Inclusions.--The term `staple food' 
                includes--
                            ``(i) bread;
                            ``(ii) flour;
                            ``(iii) fruits;
                            ``(iv) vegetables; and
                            ``(v) meat.
    ``(c) Initiative.--
            ``(1) Establishment.--The Secretary shall establish an 
        initiative to achieve the purpose described in subsection (a) 
        in accordance with this subsection.
            ``(2) Implementation.--
                    ``(A) In general.--
                            ``(i) In general.--In carrying out the 
                        Initiative, the Secretary shall provide funding 
                        to entities with eligible projects, as 
                        described in subparagraph (B), subject to the 
                        priorities described in subparagraph (C).
                            ``(ii) Use of funds.--Funds provided to an 
                        entity pursuant to clause (i) shall be used--
                                    ``(I) to create revolving loan 
                                pools of capital or other products to 
                                provide loans to finance eligible 
                                projects or partnerships;
                                    ``(II) to provide grants for 
                                eligible projects or partnerships;
                                    ``(III) to provide technical 
                                assistance to funded projects and 
                                entities seeking Initiative funding; 
                                and
                                    ``(IV) to cover administrative 
                                expenses of the national fund manager 
                                in an amount not to exceed 10 percent 
                                of the Federal funds provided.
                    ``(B) Eligible projects.--Subject to the approval 
                of the Secretary, the national fund manager shall 
                establish eligibility criteria for projects under the 
                Initiative, which shall include the existence or 
                planned execution of agreements--
                            ``(i) to expand or preserve the 
                        availability of staple foods in underserved 
                        areas with moderate- and low-income populations 
                        by maintaining or increasing the number of 
                        retail outlets that offer an assortment of 
                        perishable food and staple food items, as 
                        determined by the Secretary, in those areas; 
                        and
                            ``(ii) to accept benefits under the 
                        supplemental nutrition assistance program 
                        established under the Food and Nutrition Act of 
                        2008 (7 U.S.C. 2011 et seq.).
                    ``(C) Priorities.--In carrying out the Initiative, 
                priority shall be given to projects that--
                            ``(i) are located in severely distressed 
                        low-income communities, as defined by the 
                        Community Development Financial Institutions 
                        Fund of the Department of Treasury; and
                            ``(ii) include 1 or more of the following 
                        characteristics:
                                    ``(I) The project will create or 
                                retain quality jobs for low-income 
                                residents in the community.
                                    ``(II) The project supports 
                                regional food systems and locally grown 
                                foods, to the maximum extent 
                                practicable.
                                    ``(III) In areas served by public 
                                transit, the project is accessible by 
                                public transit.
                                    ``(IV) The project involves women- 
                                or minority-owned businesses.
                                    ``(V) The project receives funding 
                                from other sources, including other 
                                Federal agencies.
                                    ``(VI) The project otherwise 
                                advances the purpose of this section, 
                                as determined by the Secretary.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $125,000,000, 
to remain available until expended.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6) by striking ``or'' at the end;
            (2) in paragraph (7) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to establish and carry 
        out the Health Food Financing Initiative under section 242.''.

SEC. 308. REVIEW OF SOLE-SOURCE CONTRACTS IN FEDERAL NUTRITION 
              PROGRAMS.

    The Secretary shall conduct an evaluation of sole-source contracts 
in Federal nutrition programs, and the effect such contracts have on 
program participation, program goals, nonprogram consumers, retailers, 
and free market dynamics. Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall report the findings of this 
review to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate.

SEC. 309. PURCHASE OF HALAL AND KOSHER FOOD FOR EMERGENCY FOOD 
              ASSISTANCE PROGRAM.

    Section 202 of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
7502) is amended by adding at the end the following:
    ``(h) Kosher and Halal Food.--As soon as practicable after the date 
of enactment of this subsection, the Secretary shall finalize and 
implement a plan--
            ``(1) to increase the purchase of Kosher and Halal food 
        from food manufacturers with a Kosher or Halal certification to 
        carry out the program established under this Act if the Kosher 
        and Halal food purchased is cost neutral as compared to food 
        that is not from food manufacturers with a Kosher or Halal 
        certification; and
            ``(2) to modify the labeling of the commodities list used 
        to carry out the program in a manner that enables Kosher and 
        Halal food bank operators to identify which commodities to 
        obtain from local food banks.''.

            Passed the House of Representatives September 19, 2013.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```