II

104TH CONGRESS

1ST SESSION S. 904

To provide flexibility to States to administer, and control the cost of, the

food stamp and child nutrition programs, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 9 (legislative day, JUNE 5), 1995

Mr. LUGAR introduced the following bill; which was read twice and referred

to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To provide flexibility to States to administer, and control

the cost of, the food stamp and child nutrition programs,

and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Nutrition Assistance Reform Act of 1995’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—FOOD STAMP PROGRAM

Sec. 101. Certification period.

Sec. 102. Treatment of minors.
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Sec. 103. Optional additional criteria for separate household determinations.

Sec. 104. Adjustment of thrifty food plan.

Sec. 105. Definition of homeless individual.

Sec. 106. Earnings of students.

Sec. 107. Energy assistance.

Sec. 108. Deductions from income.

Sec. 109. Amount of vehicle asset limitation.

Sec. 110. Benefits for aliens.

Sec. 111. Disqualification.

Sec. 112. Caretaker exemption.

Sec. 113. Employment and training.

Sec. 114. Comparable treatment for disqualification.

Sec. 115. Cooperation with child support agencies.

Sec. 116. Disqualification for child support arrears.

Sec. 117. Permanent disqualification for participating in 2 or more States.

Sec. 118. Work requirement.

Sec. 119. Electronic benefit transfers.

Sec. 120. Minimum benefit.

Sec. 121. Benefits on recertification.

Sec. 122. Optional combined allotment for expedited households.

Sec. 123. Failure to comply with other welfare and public assistance programs.

Sec. 124. Allotments for households residing in institutions.

Sec. 125. Operation of food stamp offices.

Sec. 126. State employee and training standards.

Sec. 127. Expedited coupon service.

Sec. 128. Fair hearings.

Sec. 129. Income and eligibility verification system.

Sec. 130. Collection of overissuances.

Sec. 131. Termination of Federal match for optional information activities.

Sec. 132. Standards for administration.

Sec. 133. Work supplementation or support program.

Sec. 134. Waiver authority.

Sec. 135. Authorization of pilot projects.

Sec. 136. Response to waivers.

Sec. 137. Private sector employment initiatives.

Sec. 138. Reauthorization of appropriations.

Sec. 139. Reauthorization of Puerto Rico block grant.

Sec. 140. Simplified food stamp program.

Sec. 141. Effective date.

TITLE II—CHILD NUTRITION PROGRAMS

Subtitle A—Reimbursement Rates

Sec. 201. Termination of additional payment for lunches served in high free

and reduced price participation schools.

Sec. 202. Value of food assistance.

Sec. 203. Lunches, breakfasts, and supplements.

Sec. 204. Summer food service program for children.

Sec. 205. Special milk program.

Sec. 206. Free and reduced price breakfasts.

Sec. 207. Conforming reimbursement for paid breakfasts and lunches.

Subtitle B—Grant Programs

Sec. 211. School breakfast startup grants.
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Sec. 212. Nutrition education and training programs.

Sec. 213. Effective date.

Subtitle C—Other Amendments

Sec. 221. Free and reduced price policy statement.

Sec. 222. Summer food service program for children.

Sec. 223. Child and adult care food program.

Sec. 224. Reducing required reports to State agencies and schools.

TITLE III—REAUTHORIZATION

Sec. 301. Commodity distribution program; commodity supplemental food programs.

Sec. 302. Emergency food assistance program.

Sec. 303. Soup kitchens program.

Sec. 304. National commodity processing.

1 TITLE I—FOOD STAMP

2 PROGRAM

3 SEC. 101. CERTIFICATION PERIOD.

4 Section 3(c) of the Food Stamp Act of 1977 (7

5 U.S.C. 2012(c)) is amended by striking ‘‘Except as pro6 vided’’ and all that follows and inserting the following:

7 ‘‘The certification period shall not exceed 12 months, ex8 cept that the certification period may be up to 24 months

9 if all adult household members are elderly, disabled, or

10 primarily self-employed. A State agency shall have at least

11 1 personal contact with each certified household every 12

12 months.’’.

13 SEC. 102. TREATMENT OF MINORS.

14 The second sentence of section 3(i) of the Food

15 Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by

16 striking ‘‘(who are not themselves parents living with their

17 children or married and living with their spouses)’’.
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1 SEC. 103. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE

2 HOUSEHOLD DETERMINATIONS.

3 (a) IN GENERAL.—Section 3(i) of the Food Stamp

4 Act of 1977 (7 U.S.C. 2012(i)) is amended by inserting

5 after the second sentence the following: ‘‘Notwithstanding

6 the preceding sentences, a State may establish criteria

7 that prescribe when individuals who live together, and who

8 would be allowed to participate as separate households

9 under the preceding sentences, shall be considered a single

10 household, without regard to the purchase of food and the

11 preparation of meals.’’.

12 (b) CONFORMING AMENDMENT.—The second sen13 tence of section 5(a) of the Act (7 U.S.C. 2014(a)) is

14 amended by striking ‘‘the third sentence of section 3(i)’’

15 and inserting ‘‘the fourth sentence of section 3(i)’’.

16 SEC. 104. ADJUSTMENT OF THRIFTY FOOD PLAN.

17 The second sentence of section 3(o) of the Food

18 Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—

19 (1) by striking ‘‘shall (1) make’’ and inserting

20 the following: ‘‘shall—

21 ‘‘(1) make’’;

22 (2) by striking ‘‘scale, (2) make’’ and inserting

23 ‘‘scale;

24 ‘‘(2) make’’;

25 (3) by striking ‘‘Alaska, (3) make’’ and insert26 ing the following: ‘‘Alaska;
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1 ‘‘(3) make’’; and

2 (4) by striking ‘‘Columbia, (4) through’’ and all

3 that follows through the end of the subsection and

4 inserting the following: ‘‘Columbia; and

5 ‘‘(4) on October 1, 1995, and each October 1

6 thereafter, adjust the cost of the diet to reflect the

7 cost of the diet, in the preceding June, and round

8 the result to the nearest lower dollar increment for

9 each household size, except that on October 1, 1995,

10 the Secretary may not reduce the cost of the diet in

11 effect on September 30, 1995.’’.

12 SEC. 105. DEFINITION OF HOMELESS INDIVIDUAL.

13 Section 3(s)(2)(C) of the Food Stamp Act of 1977

14 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not

15 more than 90 days’’ after ‘‘temporary accommodation’’.

16 SEC. 106. EARNINGS OF STUDENTS.

17 Section 5(d)(7) of the Food Stamp Act of 1977 (7

18 U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and in19 serting ‘‘19’’.

20 SEC. 107. ENERGY ASSISTANCE.

21 (a) IN GENERAL.—Section 5(d) of the Food Stamp

22 Act of 1977 (7 U.S.C. 2014(d)) is amended—

23 (1) by striking paragraph (11); and

24 (2) by redesignating paragraphs (12) through

25 (16) as paragraphs (11) through (15), respectively.
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1 (b) CONFORMING AMENDMENTS.—

2 (1) Section 5 of the Act (7 U.S.C. 2014) is

3 amended—

4 (A) in subsection (k)(1)(A), by striking

5 ‘‘plan for aid to families with dependent chil6 dren approved’’ and inserting ‘‘program fund7 ed’’; and

8 (B) in subsection (m), by striking

9 ‘‘(d)(13)’’ and inserting ‘‘(d)(12)’’.

10 (2) Section 2605(f) of the Low-Income Home

11 Energy Assistance Act of 1981 (42 U.S.C. 8624(f))

12 is amended—

13 (A) by striking ‘‘(f)(1) Notwithstanding’’

14 and inserting ‘‘(f) Notwithstanding’’;

15 (B) in paragraph (1), by striking ‘‘food

16 stamps,’’; and

17 (C) by striking paragraph (2).

18 SEC. 108. DEDUCTIONS FROM INCOME.

19 (a) IN GENERAL.—Section 5 of the Food Stamp Act

20 of 1977 (7 U.S.C. 2014) is amended by striking sub21 section (e) and inserting the following:

22 ‘‘(e) DEDUCTIONS FROM INCOME.—

23 ‘‘(1) STANDARD DEDUCTION.—

24 ‘‘(A) IN GENERAL.—The Secretary shall

25 allow a standard deduction for each household
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1 in the 48 contiguous States and the District of

2 Columbia, Alaska, Hawaii, Guam, and the Vir3 gin Islands of the United States of—

4 ‘‘(i) for fiscal year 1995, $134, $229,

5 $189, $269, and $118, respectively;

6 ‘‘(ii) for fiscal year 1996, $132, $225,

7 $186, $265, and $116, respectively;

8 ‘‘(iii) for fiscal year 1997, $130,

9 $222, $183, $261, and $114, respectively;

10 ‘‘(iv) for fiscal year 1998, $128, $218,

11 $180, $257, and $112, respectively;

12 ‘‘(v) for fiscal year 1999, $126, $215,

13 $177, $252, and $111, respectively; and

14 ‘‘(vi) for fiscal year 2000, $124, $211,

15 $174, $248, and $109, respectively.

16 ‘‘(B) ADJUSTMENT FOR INFLATION.—On

17 October 1, 2000, and each October 1 thereafter,

18 the Secretary shall adjust the standard deduc19 tion to the nearest lower dollar increment to re20 flect changes in the Consumer Price Index for

21 all urban consumers published by the Bureau of

22 Labor Statistics, for items other than food, for

23 the 12-month period ending the preceding June

24 30.

25 ‘‘(2) EARNED INCOME DEDUCTION.—
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1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), a household with earned in3 come shall be allowed a deduction of 20 percent

4 of all earned income (other than income ex5 cluded by subsection (d)), to compensate for

6 taxes, other mandatory deductions from salary,

7 and work expenses.

8 ‘‘(B) EXCEPTION.—The deduction de9 scribed in subparagraph (A) shall not be al10 lowed with respect to determining an

11 overissuance due to the failure of a household

12 to report earned income in a timely manner.

13 ‘‘(3) DEPENDENT CARE DEDUCTION.—

14 ‘‘(A) IN GENERAL.—A household shall be

15 entitled, with respect to expenses (other than

16 excluded expenses described in subparagraph

17 (B)) for dependent care, to a dependent care

18 deduction, the maximum allowable level of

19 which shall be $200 per month for each depend20 ent child under 2 years of age and $175 per

21 month for each other dependent, for the actual

22 cost of payments necessary for the care of a de23 pendent if the care enables a household member

24 to accept or continue employment, or training
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1 or education that is preparatory for employ2 ment.

3 ‘‘(B) EXCLUDED EXPENSES.—The ex4 cluded expenses referred to in subparagraph

5 (A) are—

6 ‘‘(i) expenses paid on behalf of the

7 household by a third party;

8 ‘‘(ii) amounts made available and ex9 cluded for the expenses referred to in sub10 paragraph (A) under subsection (d)(3);

11 and

12 ‘‘(iii) expenses that are paid under

13 section 6(d)(4).

14 ‘‘(4) DEDUCTION FOR CHILD SUPPORT PAY15 MENTS.—

16 ‘‘(A) IN GENERAL.—A household shall be

17 entitled to a deduction for child support pay18 ments made by a household member to or for

19 an individual who is not a member of the

20 household if the household member is legally

21 obligated to make the payments.

22 ‘‘(B) METHODS FOR DETERMINING

23 AMOUNT.—The Secretary may prescribe by reg24 ulation the methods, including calculation on a

25 retrospective basis, that a State agency shall
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1 use to determine the amount of the deduction

2 for child support payments.

3 ‘‘(5) HOMELESS SHELTER DEDUCTION.—A

4 State agency may develop a standard homeless shel5 ter deduction, which shall not exceed $139 per

6 month, for such expenses as may reasonably be ex7 pected to be incurred by households in which all

8 members are homeless individuals but are not receiv9 ing free shelter throughout the month. A State agen10 cy that develops the deduction may use the deduc11 tion in determining eligibility and allotments for the

12 households, except that the State agency may pro13 hibit the use of the deduction for households with

14 extremely low shelter costs.

15 ‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—

16 ‘‘(A) IN GENERAL.—A household contain17 ing an elderly or disabled member shall be enti18 tled, with respect to expenses other than ex19 penses paid on behalf of the household by a

20 third party, to an excess medical expense de21 duction for the portion of the actual costs of al22 lowable medical expenses, incurred by the elder23 ly or disabled member, exclusive of special diets,

24 that exceeds $35 per month.
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1 ‘‘(B) METHOD OF CLAIMING DEDUC2 TION.—

3 ‘‘(i) IN GENERAL.—A State agency

4 shall offer an eligible household under sub5 paragraph (A) a method of claiming a de6 duction for recurring medical expenses that

7 are initially verified under the excess medi8 cal expense deduction in lieu of submitting

9 information or verification on actual ex10 penses on a monthly basis.

11 ‘‘(ii) METHOD.—The method de12 scribed in clause (i) shall—

13 ‘‘(I) be designed to minimize the

14 burden for the eligible elderly or dis15 abled household member choosing to

16 deduct the recurrent medical expenses

17 of the member pursuant to the meth18 od;

19 ‘‘(II) rely on reasonable estimates

20 of the expected medical expenses of

21 the member for the certification pe22 riod (including changes that can be

23 reasonably anticipated based on avail24 able information about the medical

25 condition of the member, public or
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1 private medical insurance coverage,

2 and the current verified medical ex3 penses incurred by the member); and

4 ‘‘(III) not require further report5 ing or verification of a change in med6 ical expenses if such a change has

7 been anticipated for the certification

8 period.

9 ‘‘(7) EXCESS SHELTER EXPENSE DEDUC10 TION.—

11 ‘‘(A) IN GENERAL.—A household shall be

12 entitled, with respect to expenses other than ex13 penses paid on behalf of the household by a

14 third party, to an excess shelter expense deduc15 tion to the extent that the monthly amount ex16 pended by a household for shelter exceeds an

17 amount equal to 50 percent of monthly house18 hold income after all other applicable deduc19 tions have been allowed.

20 ‘‘(B) MAXIMUM AMOUNT OF DEDUC21 TION.—

22 ‘‘(i) PRIOR TO SEPTEMBER 30, 1995.—

23 In the case of a household that does not

24 contain an elderly or disabled individual,

25 during the 15-month period ending Sep-
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1 tember 30, 1995, the excess shelter ex2 pense deduction shall not exceed—

3 ‘‘(I) in the 48 contiguous States

4 and the District of Columbia, $231

5 per month; and

6 ‘‘(II) in Alaska, Hawaii, Guam,

7 and the Virgin Islands of the United

8 States, $402, $330, $280, and $171

9 per month, respectively.

10 ‘‘(ii) AFTER SEPTEMBER 30, 1995.—In

11 the case of a household that does not con12 tain an elderly or disabled individual, dur13 ing the 15-month period ending December

14 31, 1996, the excess shelter expense deduc15 tion shall not exceed—

16 ‘‘(I) in the 48 contiguous States

17 and the District of Columbia, $247

18 per month; and

19 ‘‘(II) in Alaska, Hawaii, Guam,

20 and the Virgin Islands of the United

21 States, $429, $353, $300, and $182

22 per month, respectively.

23 ‘‘(C) STANDARD UTILITY ALLOWANCE.—

24 ‘‘(i) IN GENERAL.—In computing the

25 excess shelter expense deduction, a State
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1 agency may use a standard utility allow2 ance in accordance with regulations pro3 mulgated by the Secretary, except that a

4 State agency may use an allowance that

5 does not fluctuate within a year to reflect

6 seasonal variations.

7 ‘‘(ii) RESTRICTIONS ON HEATING AND

8 COOLING EXPENSES.—An allowance for a

9 heating or cooling expense may not be used

10 in the case of a household that—

11 ‘‘(I) does not incur a heating or

12 cooling expense, as the case may be;

13 ‘‘(II) does incur a heating or

14 cooling expense but is located in a

15 public housing unit that has central

16 utility meters and charges households,

17 with regard to the expense, only for

18 excess utility costs; or

19 ‘‘(III) shares the expense with,

20 and lives with, another individual not

21 participating in the food stamp pro22 gram, another household participating

23 in the food stamp program, or both,

24 unless the allowance is prorated be-
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1 tween the household and the other in2 dividual, household, or both.

3 ‘‘(iii) MANDATORY ALLOWANCE.—

4 ‘‘(I) IN GENERAL.—A State

5 agency may make the use of a stand6 ard utility allowance mandatory for all

7 households with qualifying utility

8 costs if—

9 ‘‘(aa) the State agency has

10 developed 1 or more standards

11 that include the cost of heating

12 and cooling and 1 or more stand13 ards that do not include the cost

14 of heating and cooling; and

15 ‘‘(bb) the Secretary finds

16 that the standards will not result

17 in an increased cost to the Sec18 retary.

19 ‘‘(II) HOUSEHOLD ELECTION.—

20 A State agency that has not made the

21 use of a standard utility allowance

22 mandatory under subclause (I) shall

23 allow a household to switch, at the

24 end of a certification period, between

25 the standard utility allowance and a
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1 deduction based on the actual utility

2 costs of the household.

3 ‘‘(iv) AVAILABILITY OF ALLOWANCE

4 TO RECIPIENTS OF ENERGY ASSISTANCE.—

5 ‘‘(I) IN GENERAL.—Subject to

6 subclause (II), if a State agency elects

7 to use a standard utility allowance

8 that reflects heating or cooling costs,

9 the standard utility allowance shall be

10 made available to households receiving

11 a payment, or on behalf of which a

12 payment is made, under the Low-In13 come Home Energy Assistance Act of

14 1981 (42 U.S.C. 8621 et seq.) or

15 other similar energy assistance pro16 gram, if the household still incurs out17 of-pocket heating or cooling expenses

18 in excess of any assistance paid on be19 half of the household to an energy

20 provider.

21 ‘‘(II) SEPARATE ALLOWANCE.—A

22 State agency may use a separate

23 standard utility allowance for house24 holds on behalf of which a payment
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1 described in subclause (I) is made,

2 but may not be required to do so.

3 ‘‘(III) STATES NOT ELECTING TO

4 USE SEPARATE ALLOWANCE.—A State

5 agency that does not elect to use a

6 separate allowance but makes a single

7 standard utility allowance available to

8 households incurring heating or cool9 ing expenses (other than a household

10 described in subclause (I) or (II) of

11 subparagraph (C)(ii)) may not be re12 quired to reduce the allowance due to

13 the provision (directly or indirectly) of

14 assistance under the Low-Income

15 Home Energy Assistance Act of 1981

16 (42 U.S.C. 8621 et seq.).

17 ‘‘(IV) PRORATION OF ASSIST18 ANCE.—For the purpose of the food

19 stamp program, assistance provided

20 under the Low-Income Home Energy

21 Assistance Act of 1981 (42 U.S.C.

22 8621 et seq.) shall be considered to be

23 prorated over the entire heating or

24 cooling season for which the assist25 ance was provided.’’.
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1 (b) CONFORMING AMENDMENT.—Section 11(e)(3) of

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

3 ‘‘Under rules prescribed’’ and all that follows through

4 ‘‘verifies higher expenses’’.

5 SEC. 109. AMOUNT OF VEHICLE ASSET LIMITATION.

6 The first sentence of section 5(g)(2) of the Food

7 Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by

8 striking ‘‘through September 30, 1995’’ and all that fol9 lows through ‘‘such date and on’’ and inserting ‘‘and shall

10 be adjusted on October 1, 1996, and’’.

11 SEC. 110. BENEFITS FOR ALIENS.

12 Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.

13 2014(i)) is amended—

14 (1) in the first sentence of paragraph (1)—

15 (A) by inserting ‘‘or who executed such an

16 affidavit or similar agreement to enable the in17 dividual to lawfully remain in the United

18 States,’’ after ‘‘respect to such individual,’’; and

19 (B) by striking ‘‘for a period’’ and all that

20 follows through the period at the end and in21 serting ‘‘until the end of the period ending on

22 the later of the date agreed to in the affidavit

23 or agreement or the date that is 5 years after

24 the date on which the individual was first law25 fully admitted into the United States following
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1 the execution of the affidavit or agreement.’’;

2 and

3 (2) in paragraph (2)—

4 (A) in subparagraph (C)(i), by striking ‘‘of

5 three years after entry into the United States’’

6 and inserting ‘‘determined under paragraph

7 (1)’’; and

8 (B) in subparagraph (D), by striking ‘‘of

9 three years after such alien’s entry into the

10 United States’’ and inserting ‘‘determined

11 under paragraph (1)’’.

12 SEC. 111. DISQUALIFICATION.

13 (a) IN GENERAL.—Section 6(d) of the Food Stamp

14 Act of 1977 (7 U.S.C. 2015(d)) is amended by striking

15 ‘‘(d)(1) Unless otherwise exempted by the provisions’’ and

16 all that follows through the end of paragraph (1) and in17 serting the following:

18 ‘‘(d) CONDITIONS OF PARTICIPATION.—

19 ‘‘(1) WORK REQUIREMENTS.—

20 ‘‘(A) IN GENERAL.—No physically and

21 mentally fit individual over the age of 15 and

22 under the age of 60 shall be eligible to partici23 pate in the food stamp program if the individ24 ual—
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1 ‘‘(i) refuses, at the time of application

2 and every 12 months thereafter, to register

3 for employment in a manner prescribed by

4 the Secretary;

5 ‘‘(ii) refuses without good cause to

6 participate in an employment and training

7 program under paragraph (4), to the ex8 tent required by the State agency;

9 ‘‘(iii) refuses without good cause to

10 accept an offer of employment, at a site or

11 plant not subject to a strike or lockout at

12 the time of the refusal, at a wage not less

13 than the higher of—

14 ‘‘(I) the applicable Federal or

15 State minimum wage; or

16 ‘‘(II) 80 percent of the wage that

17 would have governed had the mini18 mum hourly rate under section

19 6(a)(1) of the Fair Labor Standards

20 Act of 1938 (29 U.S.C. 206(a)(1))

21 been applicable to the offer of employ22 ment;

23 ‘‘(iv) refuses without good cause to

24 provide a State agency with sufficient in25 formation to allow the State agency to de-
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1 termine the employment status or the job

2 availability of the individual;

3 ‘‘(v) voluntarily and without good

4 cause—

5 ‘‘(I) quits a job; or

6 ‘‘(II) reduces work effort and,

7 after the reduction, the individual is

8 working less than 30 hours per week;

9 or

10 ‘‘(vi) fails to comply with section 20.

11 ‘‘(B) HOUSEHOLD INELIGIBILITY.—If an

12 individual who is the head of a household be13 comes ineligible to participate in the food stamp

14 program under subparagraph (A), the house15 hold shall, at the option of the State agency,

16 become ineligible to participate in the food

17 stamp program for a period, determined by the

18 State agency, that does not exceed the lesser

19 of—

20 ‘‘(i) the duration of the ineligibility of

21 the individual determined under subpara22 graph (C); or

23 ‘‘(ii) 180 days.

24 ‘‘(C) DURATION OF INELIGIBILITY.—
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1 ‘‘(i) FIRST VIOLATION.—The first

2 time that an individual becomes ineligible

3 to participate in the food stamp program

4 under subparagraph (A), the individual

5 shall remain ineligible until the later of—

6 ‘‘(I) the date the individual be7 comes eligible under subparagraph

8 (A);

9 ‘‘(II) the date that is 1 month

10 after the date the individual became

11 ineligible; or

12 ‘‘(III) a date determined by the

13 State agency that is not later than 3

14 months after the date the individual

15 became ineligible.

16 ‘‘(ii) SECOND VIOLATION.—The sec17 ond time that an individual becomes ineli18 gible to participate in the food stamp pro19 gram under subparagraph (A), the individ20 ual shall remain ineligible until the later

21 of—

22 ‘‘(I) the date the individual be23 comes eligible under subparagraph

24 (A);
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1 ‘‘(II) the date that is 3 months

2 after the date the individual became

3 ineligible; or

4 ‘‘(III) a date determined by the

5 State agency that is not later than 6

6 months after the date the individual

7 became ineligible.

8 ‘‘(iii) THIRD OR SUBSEQUENT VIOLA9 TION.—The third or subsequent time that

10 an individual becomes ineligible to partici11 pate in the food stamp program under sub12 paragraph (A), the individual shall remain

13 ineligible until the later of—

14 ‘‘(I) the date the individual be15 comes eligible under subparagraph

16 (A);

17 ‘‘(II) the date that is 6 months

18 after the date the individual became

19 ineligible;

20 ‘‘(III) a date determined by the

21 State agency; or

22 ‘‘(IV) at the option of the State

23 agency, permanently.

24 ‘‘(D) ADMINISTRATION.—

25 ‘‘(i) GOOD CAUSE.—
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1 ‘‘(I) STANDARD.—The Secretary

2 shall determine the meaning of good

3 cause for the purpose of this para4 graph.

5 ‘‘(II) PROCEDURE.—A State

6 agency shall determine the procedure

7 for determining whether an individual

8 acted with good cause for the purpose

9 of this paragraph.

10 ‘‘(III) ADEQUATE CHILD CARE.—

11 In this paragraph, the term ‘good

12 cause’ includes the lack of adequate

13 child care for a dependent child under

14 the age of 12.

15 ‘‘(ii) VOLUNTARY QUIT.—

16 ‘‘(I) STANDARD.—The Secretary

17 shall determine the meaning of volun18 tarily quitting for the purpose of this

19 paragraph.

20 ‘‘(II) PROCEDURE.—The Sec21 retary shall determine the procedure

22 for determining whether an individual

23 voluntarily quit for the purpose of this

24 paragraph.
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1 ‘‘(iii) DETERMINATION BY STATE

2 AGENCY.—Subject to clauses (i) and (ii), a

3 State agency shall determine—

4 ‘‘(I) the meaning of any term in

5 subparagraph (A);

6 ‘‘(II) the procedures for deter7 mining whether an individual is in

8 compliance with a requirement under

9 subparagraph (A); and

10 ‘‘(III) whether an individual is in

11 compliance with a requirement under

12 subparagraph (A).

13 ‘‘(iv) STRIKE AGAINST THE GOVERN14 MENT.—For the purpose of subparagraph

15 (A)(v), an employee of the Federal Govern16 ment, a State, or a political subdivision of

17 a State, who is dismissed for participating

18 in a strike against the Federal Govern19 ment, the State, or the political subdivision

20 of the State shall be considered to have

21 voluntarily quit without good cause.

22 ‘‘(v) SELECTING A HEAD OF HOUSE23 HOLD.—

24 ‘‘(I) IN GENERAL.—For the pur25 pose of this paragraph, the State
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1 agency shall allow the household to se2 lect any adult parent of a child in the

3 household as the head of the house4 hold if all adult household members

5 making application under the food

6 stamp program agree to the selection.

7 ‘‘(II) TIME FOR MAKING DES8 IGNATION.—A household may des9 ignate the head of the household

10 under subclause (I) each time the

11 household is certified for participation

12 in the food stamp program, but may

13 not change the designation during a

14 certification period unless there is a

15 change in the composition of the

16 household.

17 ‘‘(vi) CHANGE IN HEAD OF HOUSE18 HOLD.—If the head of a household leaves

19 the household during a period in which the

20 household is ineligible to participate in the

21 food stamp program under subparagraph

22 (B)—

23 ‘‘(I) the household shall, if other24 wise eligible, become eligible to par-
27

•S 904 IS

1 ticipate in the food stamp program;

2 and

3 ‘‘(II) if the head of the household

4 becomes the head of another house5 hold, the household that becomes

6 headed by the individual shall become

7 ineligible to participate in the food

8 stamp program for the remaining pe9 riod of ineligibility.’’.

10 (b) CONFORMING AMENDMENT.—

11 (1) The second sentence of section 17(b)(2) of

12 the Act (7 U.S.C. 2026(b)(2)) is amended by strik13 ing ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.

14 (2) Section 20 of the Act (7 U.S.C. 2029) is

15 amended by striking subsection (f) and inserting the

16 following:

17 ‘‘(f) DISQUALIFICATION.—An individual or a house18 hold may become ineligible under section 6(d)(1) to par19 ticipate in the food stamp program for failing to comply

20 with this section.’’.

21 SEC. 112. CARETAKER EXEMPTION.

22 Section 6(d)(2) of the Food Stamp Act of 1977 (7

23 U.S.C. 2015(d)(2)) is amended by striking subparagraph

24 (B) and inserting the following: ‘‘(B) a parent or other

25 member of a household with responsibility for the care of
28

•S 904 IS

1 (i) a dependent child under the age of 6 or any lower age

2 designated by the State agency that is not under the age

3 of 1, or (ii) an incapacitated person;’’.

4 SEC. 113. EMPLOYMENT AND TRAINING.

5 (a) IN GENERAL.—Section 6(d)(4) of the Food

6 Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—

7 (1) in subparagraph (A)—

8 (A) by striking ‘‘Not later than April 1,

9 1987, each’’ and inserting ‘‘Each’’;

10 (B) by striking ‘‘and approved by the Sec11 retary’’; and

12 (C) by striking ‘‘program in gaining skills,

13 training, or experience’’ and inserting ‘‘pro14 gram, but not a State program funded under

15 part A of title IV of the Social Security Act (42

16 U.S.C. 601 et seq.), in gaining skills, training,

17 work, or experience’’;

18 (2) in subparagraph (B)—

19 (A) in the matter preceding clause (i)—

20 (i) by inserting ‘‘with terms and con21 ditions set by a State agency’’ after

22 ‘‘means a program’’; and

23 (ii) by striking the colon at the end

24 and inserting the following: ‘‘, except that

25 the State agency shall retain the option to
29

•S 904 IS

1 apply employment requirements prescribed

2 under this subparagraph to a program ap3 plicant at the time of application:’’;

4 (B) in clause (i), by striking ‘‘with terms

5 and conditions’’ and all that follows through

6 ‘‘time of application’’;

7 (C) in clause (iv)—

8 (i) by striking subclauses (I) and (II);

9 and

10 (ii) by redesignating subclauses (III)

11 and (IV) as subclauses (I) and (II), respec12 tively; and

13 (D) in clause (vii), by striking ‘‘As ap14 proved’’ and all that follows through ‘‘other em15 ployment’’ and inserting ‘‘Other employment’’;

16 (3) in subparagraph (D)—

17 (A) in clause (i), by striking ‘‘to which the

18 application’’ and all that follows through ‘‘30

19 days or less’’;

20 (B) in clause (ii), by striking ‘‘but with re21 spect’’ and all that follows through ‘‘child

22 care’’; and

23 (C) in clause (iii), by striking ‘‘, on the

24 basis of’’ and all that follows through ‘‘clause
30

•S 904 IS

1 (ii)’’ and inserting ‘‘the exemption continues to

2 be valid’’;

3 (4) in subparagraph (E), by striking the third

4 sentence;

5 (5) in subparagraph (G)—

6 (A) by striking ‘‘(G)(i) The State’’ and in7 serting ‘‘(G) The State’’; and

8 (B) by striking clause (ii);

9 (6) in subparagraph (H), by striking ‘‘(H)(i)

10 The Secretary’’ and all that follows through ‘‘(ii)

11 Federal funds’’ and inserting ‘‘(H) Federal funds’’;

12 (7) in subparagraph (I)(i)—

13 (A) in the matter preceding subclause (I),

14 by inserting ‘‘not’’ after ‘‘paragraph,’’; and

15 (B) in subclause (II), by striking ‘‘, or was

16 in operation,’’ and all that follows through ‘‘So17 cial Security Act’’ and inserting the following:

18 ‘‘), except that no such payment or reimburse19 ment shall exceed the applicable local market

20 rate’’;

21 (8)(A) by striking subparagraphs (K) and (L);

22 and

23 (B) by redesignating subparagraphs (M) and

24 (N) as subparagraphs (K) and (L), respectively; and
31

•S 904 IS

1 (9) in subparagraph (K) (as redesignated by

2 paragraph (8)(B))—

3 (A) by striking ‘‘(K)(i) The Secretary’’ and

4 inserting ‘‘(K) The Secretary’’; and

5 (B) by striking clause (ii).

6 (b) FUNDING.—Section 16(h) of the Act (7 U.S.C.

7 2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec8 retary’’ and all that follows through the end of paragraph

9 (1) and inserting the following:

10 ‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING

11 PROGRAMS.—

12 ‘‘(1) IN GENERAL.—

13 ‘‘(A) AMOUNTS.—To carry out employ14 ment and training programs, the Secretary

15 shall reserve for allocation to State agencies

16 from funds made available for each fiscal year

17 under section 18(a)(1) the amount of—

18 ‘‘(i) for fiscal year 1996, $77,000,000;

19 ‘‘(ii) for fiscal year 1997,

20 $80,000,000;

21 ‘‘(iii) for fiscal year 1998,

22 $83,000,000;

23 ‘‘(iv) for fiscal year 1999,

24 $86,000,000; and
32

•S 904 IS

1 ‘‘(v) for fiscal year 2000,

2 $89,000,000.

3 ‘‘(B) ALLOCATION.—The Secretary shall

4 allocate the amounts reserved under subpara5 graph (A) among the State agencies using a

6 reasonable formula (as determined by the Sec7 retary) that gives consideration to the popu8 lation in each State affected by section 6(n).

9 ‘‘(C) REALLOCATION.—

10 ‘‘(i) NOTIFICATION.—A State agency

11 shall promptly notify the Secretary if the

12 State agency determines that the State

13 agency will not expend all of the funds al14 located to the State agency under subpara15 graph (B).

16 ‘‘(ii) REALLOCATION.—On notification

17 under clause (i), the Secretary shall reallo18 cate the funds that the State agency will

19 not expend as the Secretary considers ap20 propriate and equitable.

21 ‘‘(D) MINIMUM ALLOCATION.—Notwith22 standing subparagraphs (A) through (C), the

23 Secretary shall ensure that each State agency

24 operating an employment and training program
33

•S 904 IS

1 shall receive not less than $50,000 in each fis2 cal year.’’.

3 (c) REPORTS.—Section 16(h) of the Act (7 U.S.C.

4 2025(h)) is amended—

5 (1) in paragraph (5)—

6 (A) by striking ‘‘(5)(A) The Secretary’’

7 and inserting ‘‘(5) The Secretary’’; and

8 (B) by striking subparagraph (B); and

9 (2) by striking paragraph (6).

10 SEC. 114. COMPARABLE TREATMENT FOR DISQUALIFICA11 TION.

12 (a) IN GENERAL.—Section 6 of the Food Stamp Act

13 of 1977 (7 U.S.C. 2015) is amended by adding at the end

14 the following:

15 ‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICA16 TION.—

17 ‘‘(1) IN GENERAL.—If a disqualification is im18 posed on a member of a household for failure of that

19 member to perform an action required under a Fed20 eral, State, or local law relating to welfare or a pub21 lic assistance program, the State agency may impose

22 the same disqualification on the member of the

23 household under the food stamp program.

24 ‘‘(2) APPLICATION AFTER DISQUALIFICATION

25 PERIOD.—A member of a household disqualified
34

•S 904 IS

1 under paragraph (1) may, after the disqualification

2 period has expired, apply for benefits under this Act

3 and shall be treated as a new applicant.’’.

4 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

5 Act (7 U.S.C. 2020(e)) is amended—

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

7 end;

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

9 the end and inserting ‘‘; and’’; and

10 (3) by adding at the end the following:

11 ‘‘(26) the guidelines the State agency uses in

12 carrying out section 6(i).’’.

13 (c) CONFORMING AMENDMENT.—Section 6(d)(2)(A)

14 of the Act (7 U.S.C. 2015(d)(2)(A)) is amended by strik15 ing ‘‘that is comparable to a requirement of paragraph

16 (1)’’.

17 SEC. 115. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

19 2015) (as amended by section 114) is further amended

20 by adding at the end the following:

21 ‘‘(j) CUSTODIAL PARENT’S COOPERATION WITH

22 CHILD SUPPORT AGENCIES.—

23 ‘‘(1) IN GENERAL.—At the option of a State

24 agency, subject to paragraphs (2) and (3), no natu25 ral or adoptive parent or other individual (collec-
35

•S 904 IS

1 tively referred to in this subsection as ‘the individ2 ual’) who is living with and exercising parental con3 trol over a child under the age of 18 who has an ab4 sent parent shall be eligible to participate in the food

5 stamp program unless the individual cooperates with

6 the State agency administering the program estab7 lished under part D of title IV of the Social Security

8 Act (42 U.S.C. 651 et seq.)—

9 ‘‘(A) in establishing the paternity of the

10 child (if the child is born out of wedlock); and

11 ‘‘(B) in obtaining support for—

12 ‘‘(i) the child; or

13 ‘‘(ii) the individual and the child.

14 ‘‘(2) GOOD CAUSE FOR NONCOOPERATION.—

15 Paragraph (1) shall not apply to the individual if

16 good cause is found for refusing to cooperate, as de17 termined by the State agency in accordance with

18 standards prescribed by the Secretary in consulta19 tion with the Secretary of Health and Human Serv20 ices. The standards shall take into consideration cir21 cumstances under which cooperation may be against

22 the best interests of the child.

23 ‘‘(3) FEES.—Paragraph (1) shall not require

24 the payment of a fee or other cost for services pro-
36

•S 904 IS

1 vided under part D of title IV of the Social Security

2 Act (42 U.S.C. 651 et seq.).

3 ‘‘(k) NON-CUSTODIAL PARENT’S COOPERATION

4 WITH CHILD SUPPORT AGENCIES.—

5 ‘‘(1) IN GENERAL.—At the option of a State

6 agency, subject to paragraphs (2) and (3), a puta7 tive non-custodial parent of a child under the age of

8 18 (referred to in this subsection as ‘the individual’)

9 shall not be eligible to participate in the food stamp

10 program if the individual refuses to cooperate with

11 the State agency administering the program estab12 lished under part D of title IV of the Social Security

13 Act (42 U.S.C. 651 et seq.)—

14 ‘‘(A) in establishing the paternity of the

15 child (if the child is born out of wedlock); and

16 ‘‘(B) in providing support for the child.

17 ‘‘(2) REFUSAL TO COOPERATE.—

18 ‘‘(A) GUIDELINES.—The Secretary, in con19 sultation with the Secretary of Health and

20 Human Services, shall develop guidelines on

21 what constitutes a refusal to cooperate under

22 paragraph (1).

23 ‘‘(B) PROCEDURES.—The State agency

24 shall develop procedures, using guidelines devel25 oped under subparagraph (A), for determining
37

•S 904 IS

1 whether an individual is refusing to cooperate

2 under paragraph (1).

3 ‘‘(3) FEES.—Paragraph (1) shall not require

4 the payment of a fee or other cost for services pro5 vided under part D of title IV of the Social Security

6 Act (42 U.S.C. 651 et seq.).

7 ‘‘(4) PRIVACY.—The State agency shall provide

8 safeguards to restrict the use of information col9 lected by a State agency administering the program

10 established under part D of title IV of the Social Se11 curity Act (42 U.S.C. 651 et seq.) to purposes for

12 which the information is collected.’’.

13 SEC. 116. DISQUALIFICATION FOR CHILD SUPPORT AR14 REARS.

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

16 2015) (as amended by section 115) is further amended

17 by adding at the end the following:

18 ‘‘(l) DISQUALIFICATION FOR CHILD SUPPORT AR19 REARS.—

20 ‘‘(1) IN GENERAL.—At the option of a State

21 agency, except as provided in paragraph (2), no indi22 vidual shall be eligible to participate in the food

23 stamp program as a member of any household dur24 ing any month that the individual is delinquent in
38

•S 904 IS

1 any payment due under a court order for the sup2 port of a child of the individual.

3 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

4 apply if—

5 ‘‘(A) a court is allowing the individual to

6 delay payment; or

7 ‘‘(B) the individual is complying with a

8 payment plan approved by a court or the State

9 agency designated under part D of title IV of

10 the Social Security Act (42 U.S.C. 651 et seq.)

11 to provide support for the child of the individ12 ual.’’.

13 SEC. 117. PERMANENT DISQUALIFICATION FOR PARTICI14 PATING IN 2 OR MORE STATES.

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

16 2015) (as amended by section 116) is further amended

17 by adding at the end the following:

18 ‘‘(m) PERMANENT DISQUALIFICATION FOR PARTICI19 PATING IN 2 OR MORE STATES.—An individual shall be

20 permanently ineligible to participate in the food stamp

21 program as a member of any household if the individual

22 is found by a State agency to have made, or is convicted

23 in Federal or State court of having made, a fraudulent

24 statement or representation with respect to the place of

25 residence of the individual in order to receive benefits si-
39

•S 904 IS

1 multaneously from 2 or more States under the food stamp

2 program.’’.

3 SEC. 118. WORK REQUIREMENT.

4 (a) IN GENERAL.—Section 6 of the Food Stamp Act

5 of 1977 (7 U.S.C. 2015) (as amended by section 117) is

6 further amended by adding at the end the following:

7 ‘‘(n) WORK REQUIREMENT.—

8 ‘‘(1) DEFINITION OF WORK PROGRAM.—In this

9 subsection, the term ‘work program’ means—

10 ‘‘(A) a program under the Job Training

11 Partnership Act (29 U.S.C. 1501 et seq.);

12 ‘‘(B) a program under section 236 of the

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

14 ‘‘(C) a program of employment or training

15 operated or supervised by a State or political

16 subdivision of a State that meets standards ap17 proved by the Governor of the State, including

18 a program under section 6(d)(4) other than a

19 job search program or a job search training

20 program under clause (i) or (ii) of section

21 6(d)(4)(B).

22 ‘‘(2) WORK REQUIREMENT.—No individual

23 shall be eligible to participate in the food stamp pro24 gram as a member of any household if, during the

25 preceding 12 months, the individual received food
40

•S 904 IS

1 stamp benefits for not less than 6 months during

2 which the individual did not—

3 ‘‘(A) work 20 hours or more per week,

4 averaged monthly; or

5 ‘‘(B) participate in and comply with the re6 quirements of a work program for 20 hours or

7 more per week, as determined by the State

8 agency.

9 ‘‘(3) EXCEPTION.—Paragraph (2) shall not

10 apply to an individual if the individual is—

11 ‘‘(A) under 18 or over 50 years of age;

12 ‘‘(B) medically certified as physically or

13 mentally unfit for employment;

14 ‘‘(C) a parent or other member of a house15 hold with a dependent child; or

16 ‘‘(D) otherwise exempt under section

17 6(d)(2).

18 ‘‘(4) WAIVER.—

19 ‘‘(A) IN GENERAL.—On the request of a

20 State agency, the Secretary may waive the ap21 plicability of paragraph (2) to any group of in22 dividuals in the State if the Secretary makes a

23 determination that the area in which the indi24 viduals reside—
41

•S 904 IS

1 ‘‘(i) has an unemployment rate of over

2 8 percent; or

3 ‘‘(ii) does not have a sufficient num4 ber of jobs to provide employment for the

5 individuals.

6 ‘‘(B) REPORT.—The Secretary shall report

7 the basis for a waiver under subparagraph (A)

8 to the Committee on Agriculture of the House

9 of Representatives and the Committee on Agri10 culture, Nutrition, and Forestry of the Sen11 ate.’’.

12 (b) EFFECTIVE DATE.—The amendment made by

13 subsection (a) shall become effective on July 1, 1996.

14 SEC. 119. ELECTRONIC BENEFIT TRANSFERS.

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

16 2016) is amended by adding at the end the following:

17 ‘‘(j) ELECTRONIC BENEFIT TRANSFERS.—

18 ‘‘(1) APPLICABLE LAW.—

19 ‘‘(A) IN GENERAL.—Disclosures, protec20 tions, responsibilities, and remedies established

21 by the Federal Reserve Board under section

22 904 of the Electronic Fund Transfer Act (15

23 U.S.C. 1693b) shall not apply to benefits under

24 this Act delivered through any electronic benefit

25 transfer system.
42

•S 904 IS

1 ‘‘(B) DEFINITION OF ELECTRONIC BENE2 FIT TRANSFER SYSTEM.—In this paragraph,

3 the term ‘electronic benefit transfer system’

4 means a system under which a governmental

5 entity distributes benefits under this Act or

6 other benefits or payments by establishing ac7 counts to be accessed by recipients of the bene8 fits electronically, including through the use of

9 an automated teller machine or an intelligent

10 benefit card.

11 ‘‘(2) CHARGING FOR ELECTRONIC BENEFIT

12 TRANSFER CARD REPLACEMENT.—

13 ‘‘(A) IN GENERAL.—A State agency may

14 charge an individual for the cost of replacing a

15 lost or stolen electronic benefit transfer card.

16 ‘‘(B) REDUCING ALLOTMENT.—A State

17 agency may collect a charge imposed under sub18 paragraph (A) by reducing the monthly allot19 ment of the household of which the individual

20 is a member.’’.

21 SEC. 120. MINIMUM BENEFIT.

22 The proviso in section 8(a) of the Food Stamp Act

23 of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and

24 shall be adjusted’’ and all that follows through ‘‘$5’’.
43

•S 904 IS

1 SEC. 121. BENEFITS ON RECERTIFICATION.

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

3 (7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more

4 than one month’’.

5 SEC. 122. OPTIONAL COMBINED ALLOTMENT FOR EXPE6 DITED HOUSEHOLDS.

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

8 U.S.C. 2017(c)) is amended by striking paragraph (3) and

9 inserting the following:

10 ‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR

11 EXPEDITED HOUSEHOLDS.—A State agency may

12 provide to an eligible household applying after the

13 15th day of a month, in lieu of the initial allotment

14 of the household and the regular allotment of the

15 household for the following month, an allotment that

16 is the aggregate of the initial allotment and the first

17 regular allotment, which shall be provided in accord18 ance with section 11(e)(3) in the case of a household

19 that is not entitled to expedited service or in accord20 ance with paragraphs (3) and (9) of section 11(e) in

21 the case of a household that is entitled to expedited

22 service.’’.
44

•S 904 IS

1 SEC. 123. FAILURE TO COMPLY WITH OTHER WELFARE AND

2 PUBLIC ASSISTANCE PROGRAMS.

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

4 2017) is amended by striking subsection (d) and inserting

5 the following:

6 ‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENE7 FITS.—

8 ‘‘(1) IN GENERAL.—If the benefits of a house9 hold are reduced under a Federal, State, or local law

10 relating to welfare or a public assistance program

11 for the failure to perform an action required under

12 the law or program, for the duration of the reduc13 tion—

14 ‘‘(A) the household may not receive an in15 creased allotment as the result of a decrease in

16 the income of the household to the extent that

17 the decrease is the result of the reduction; and

18 ‘‘(B) the State agency may reduce the al19 lotment of the household by not more than 25

20 percent.

21 ‘‘(2) OPTIONAL METHOD.—In carrying out

22 paragraph (1), a State agency may consider, for the

23 duration of a reduction referred to under paragraph

24 (1), the benefits of the household before the reduc25 tion as income of the household after the reduc26 tion.’’.
45

•S 904 IS

1 SEC. 124. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN IN2 STITUTIONS.

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

4 2017) is amended by adding at the end the following:

5 ‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN

6 INSTITUTIONS.—

7 ‘‘(1) IN GENERAL.—In the case of an individual

8 who resides in a homeless shelter, or in an institu9 tion or center for the purpose of a drug or alcoholic

10 treatment program, described in the last sentence of

11 section 3(i), a State agency may provide an allot12 ment for the individual to—

13 ‘‘(A) the institution as an authorized rep14 resentative for the individual for a period that

15 is less than 1 month; and

16 ‘‘(B) the individual, if the individual leaves

17 the institution.

18 ‘‘(2) DIRECT PAYMENT.—A State agency may

19 require an individual referred to in paragraph (1) to

20 designate the shelter, institution, or center in which

21 the individual resides as the authorized representa22 tive of the individual for the purpose of receiving an

23 allotment.’’.

24 SEC. 125. OPERATION OF FOOD STAMP OFFICES.

25 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

26 2020) is amended—
46

•S 904 IS

1 (1) in subsection (e)—

2 (A) by striking paragraph (2) and insert3 ing the following:

4 ‘‘(2)(A) that the State agency shall establish

5 procedures governing the operation of food stamp of6 fices that the State agency determines best serve

7 households in the State, including households with

8 special needs, such as households with elderly or dis9 abled members, households in rural areas with low10 income members, homeless individuals, households

11 residing on reservations, and households in which a

12 substantial number of members speak a language

13 other than English.

14 ‘‘(B) In carrying out subparagraph (A), a State

15 agency—

16 ‘‘(i) shall provide timely, accurate, and fair

17 service to applicants for, and participants in,

18 the food stamp program;

19 ‘‘(ii) shall permit an applicant household to

20 apply to participate in the program on the same

21 day that the household first contacts a food

22 stamp office in person during office hours;

23 ‘‘(iii) shall consider an application filed on

24 the date the applicant submits an application
47

•S 904 IS

1 that contains the name, address, and signature

2 of the applicant; and

3 ‘‘(iv) may establish operating procedures

4 that vary for local food stamp offices to reflect

5 regional and local differences within the

6 State;’’;

7 (B) in paragraph (3)—

8 (i) by striking ‘‘shall—’’ and all that

9 follows through ‘‘provide each’’ and insert10 ing ‘‘shall provide each’’; and

11 (ii) by striking ‘‘(B) assist’’ and all

12 that follows through ‘‘representative of the

13 State agency.’’;

14 (C) by striking paragraph (14) and insert15 ing the following:

16 ‘‘(14) the standards and procedures used by the

17 State agency under section 6(d)(1)(D) to determine

18 whether an individual is eligible to participate under

19 section 6(d)(1)(A);’’; and

20 (D) by striking paragraph (25) and insert21 ing the following:

22 ‘‘(25) a description of the work supplementation

23 or support program, if any, carried out by the State

24 agency under section 16(b).’’; and

25 (2) in subsection (i)—
48

•S 904 IS

1 (A) by striking ‘‘(i) Notwithstanding’’ and

2 all that follows through ‘‘(2)’’ and inserting the

3 following:

4 ‘‘(i) APPLICATION AND DENIAL PROCEDURES.—

5 ‘‘(1) APPLICATION PROCEDURES.—Notwith6 standing any other provision of law,’’; and

7 (B) by striking ‘‘; (3) households’’ and all

8 that follows through ‘‘title IV of the Social Se9 curity Act. No’’ and inserting a period and the

10 following:

11 ‘‘(2) DENIAL AND TERMINATION.—Other than

12 in a case of disqualification as a penalty for failure

13 to comply with a public assistance program rule or

14 regulation, no’’.

15 SEC. 126. STATE EMPLOYEE AND TRAINING STANDARDS.

16 Section 11(e)(6) of the Food Stamp Act of 1977 (7

17 U.S.C. 2020(e)(6)) is amended—

18 (1) by striking ‘‘(A)’’; and

19 (2) by striking subparagraphs (B) through (E).

20 SEC. 127. EXPEDITED COUPON SERVICE.

21 Section 11(e)(9) of the Food Stamp Act of 1977 (7

22 U.S.C. 2020(e)(9)) is amended—

23 (1) in subparagraph (A)—

24 (A) by striking ‘‘five days’’ and inserting

25 ‘‘7 business days’’; and
49

•S 904 IS

1 (B) by inserting ‘‘and’’ at the end;

2 (2) by striking subparagraphs (B) and (C);

3 (3) by redesignating subparagraph (D) as sub4 paragraph (B); and

5 (4) in subparagraph (B) (as redesignated by

6 paragraph (3)), by striking ‘‘, (B), or (C)’’.

7 SEC. 128. FAIR HEARINGS.

8 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

9 2020) is amended by adding at the end the following:

10 ‘‘(p) WITHDRAWING FAIR HEARING REQUESTS.—A

11 household may withdraw, orally or in writing, a request

12 by the household for a fair hearing under subsection

13 (e)(10). If the withdrawal request is an oral request, the

14 State agency shall provide a written notice to the house15 hold confirming the request and providing the household

16 with an opportunity to request a hearing.’’.

17 SEC. 129. INCOME AND ELIGIBILITY VERIFICATION SYS18 TEM.

19 Section 11 of the Food Stamp Act of 1977 (7 U.S.C.

20 2020) (as amended by section 128) is further amended

21 by adding at the end the following:

22 ‘‘(q) STATE VERIFICATION OPTION.—Notwithstand23 ing any other provision of law, a State agency shall not

24 be required to use an income and eligibility verification
50

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1 system established under section 1137 of the Social Secu2 rity Act (42 U.S.C. 1320b–7).’’.

3 SEC. 130. COLLECTION OF OVERISSUANCES.

4 (a) IN GENERAL.—Section 13 of the Food Stamp Act

5 of 1977 (7 U.S.C. 2022) is amended—

6 (1) by striking subsection (b) and inserting the

7 following:

8 ‘‘(b) COLLECTION OF OVERISSUANCES.—

9 ‘‘(1) IN GENERAL.—Except as otherwise pro10 vided in this subsection, a State agency shall collect

11 any overissuance of coupons issued to a household

12 by—

13 ‘‘(A) reducing the allotment of the house14 hold;

15 ‘‘(B) withholding unemployment compensa16 tion from a member of the household under

17 subsection (c);

18 ‘‘(C) recovering from Federal pay or a

19 Federal income tax refund under subsection

20 (d); or

21 ‘‘(D) any other means.

22 ‘‘(2) COST EFFECTIVENESS.—Paragraph (1)

23 shall not apply if the State agency demonstrates to

24 the satisfaction of the Secretary that all of the
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1 means referred to in paragraph (1) are not cost ef2 fective.

3 ‘‘(3) HARDSHIPS.—A State agency may not use

4 an allotment reduction under paragraph (1)(A) as a

5 means collecting an overissuance from a household if

6 the allotment reduction would cause a hardship on

7 the household, as determined by the State agency.

8 ‘‘(4) MAXIMUM REDUCTION ABSENT FRAUD.—

9 If a household received an overissuance of coupons

10 without any member of the household being found

11 ineligible to participate in the program under section

12 6(b)(1) and a State agency elects to reduce the allot13 ment of the household under paragraph (1)(A), the

14 State agency shall reduce the monthly allotment of

15 the household under paragraph (1)(A) by the great16 er of—

17 ‘‘(A) 10 percent of the monthly allotment

18 of the household; or

19 ‘‘(B) $10.

20 ‘‘(5) PROCEDURES.—A State agency shall col21 lect an overissuance of coupons issued to a house22 hold under paragraph (1) in accordance with re23 quirements established by the State agency for pro24 viding notice, electing a means of payment, and es25 tablishing a time schedule for payment.’’; and
52

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1 (2) in subsection (d)—

2 (A) by striking ‘‘as determined under sub3 section (b) and except for claims arising from

4 an error of the State agency,’’ and inserting ‘‘,

5 as determined under subsection (b)(1),’’; and

6 (B) by inserting before the period at the

7 end the following: ‘‘or a Federal income tax re8 fund as authorized by section 3720A of title 31,

9 United States Code’’.

10 (b) CONFORMING AMENDMENT.—Section 11(e)(8) of

11 the Act (7 U.S.C. 2020(e)(8)) is amended—

12 (1) by striking ‘‘and excluding claims’’ and all

13 that follows through ‘‘such section,’’; and

14 (2) by inserting before the semicolon at the end

15 the following: ‘‘or a Federal income tax refund as

16 authorized by section 3720A of title 31, United

17 States Code’’.

18 SEC. 131. TERMINATION OF FEDERAL MATCH FOR OP19 TIONAL INFORMATION ACTIVITIES.

20 (a) IN GENERAL.—Section 16(a) of the Food Stamp

21 Act of 1977 (7 U.S.C. 2025(a)) is amended—

22 (1) by striking paragraph (4); and

23 (2) by redesignating paragraphs (5) through

24 (8) as paragraphs (4) through (7), respectively.
53

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1 (b) CONFORMING AMENDMENT.—Section 16(g) of

2 the Act (7 U.S.C. 2025(g)) is amended by striking ‘‘an

3 amount equal to’’ and all that follows through ‘‘1991, of’’

4 and inserting ‘‘the amount provided under subsection

5 (a)(5) for’’.

6 SEC. 132. STANDARDS FOR ADMINISTRATION.

7 (a) IN GENERAL.—Section 16 of the Food Stamp Act

8 of 1977 (7 U.S.C. 2025) is amended by striking sub9 section (b).

10 (b) CONFORMING AMENDMENTS.—

11 (1) The first sentence of section 11(g) of the

12 Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the

13 Secretary’s standards for the efficient and effective

14 administration of the program established under sec15 tion 16(b)(1) or’’.

16 (2) Section 16(c)(1)(B) of the Act (7 U.S.C.

17 2025(c)(1)(B)) is amended by striking ‘‘pursuant to

18 subsection (b)’’.

19 SEC. 133. WORK SUPPLEMENTATION OR SUPPORT PRO20 GRAM.

21 Section 16 of the Food Stamp Act of 1977 (7 U.S.C.

22 2025) (as amended by section 132(a)) is further amended

23 by inserting after subsection (a) the following:

24 ‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO25 GRAM.—
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1 ‘‘(1) DEFINITION.—In this subsection, the term

2 ‘work supplementation or support program’ means a

3 program in which, as determined by the Secretary,

4 public assistance (including any benefits provided

5 under a program established by the State and the

6 food stamp program) is provided to an employer to

7 be used for hiring and employing a new employee

8 who is a public assistance recipient.

9 ‘‘(2) PROGRAM.—A State agency may elect to

10 use amounts equal to the allotment that would oth11 erwise be allotted to a household under the food

12 stamp program, but for the operation of this sub13 section, for the purpose of subsidizing or supporting

14 jobs under a work supplementation or support pro15 gram established by the State.

16 ‘‘(3) PROCEDURE.—If a State agency makes an

17 election under paragraph (2) and identifies each

18 household that participates in the food stamp pro19 gram that contains an individual who is participat20 ing in the work supplementation or support pro21 gram—

22 ‘‘(A) the Secretary shall pay to the State

23 agency an amount equal to the value of the al24 lotment that the household would be eligible to

25 receive but for the operation of this subsection;
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•S 904 IS

1 ‘‘(B) the State agency shall expend the

2 amount paid under subparagraph (A) in accord3 ance with the work supplementation or support

4 program in lieu of providing the allotment that

5 the household would receive but for the oper6 ation of this subsection;

7 ‘‘(C) for purposes of—

8 ‘‘(i) sections 5 and 8(a), the amount

9 received under this subsection shall be ex10 cluded from household income and re11 sources; and

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

13 under this subsection shall be considered to

14 be the value of an allotment provided to

15 the household; and

16 ‘‘(D) the household shall not receive an al17 lotment from the State agency for the period

18 during which the member continues to partici19 pate in the work supplementation or support

20 program.

21 ‘‘(4) OTHER WORK REQUIREMENTS.—No indi22 vidual shall be excused, by reason of the fact that

23 a State has a work supplementation or support pro24 gram, from any work requirement under section

25 6(d), except during the periods in which the individ-
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1 ual is employed under the work supplementation or

2 support program.

3 ‘‘(5) MAXIMUM LENGTH OF PARTICIPATION.—A

4 work supplementation or support program may not

5 allow the participation of any individual for longer

6 than 6 months, unless the Secretary approves a

7 longer period.’’.

8 SEC. 134. WAIVER AUTHORITY.

9 Section 17(b)(1)(A) of the Food Stamp Act of 1977

10 (7 U.S.C. 2026(b)(1)(A)) is amended—

11 (1) by striking ‘‘benefits to eligible households,

12 including’’ and inserting the following: ‘‘benefits to

13 eligible households. The Secretary may waive the re14 quirements of this Act to the extent necessary to

15 conduct a pilot or experimental project, including a

16 project designed to test innovative welfare reform,

17 promote work, and allow conformity with other Fed18 eral, State, and local government assistance pro19 grams, except that a project involving the payment

20 of benefits in the form of cash shall maintain the av21 erage value of allotments for affected households as

22 a group. Pilot or experimental projects may in23 clude’’; and
57

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1 (2) by striking ‘‘The Secretary may waive’’ and

2 all that follows through ‘‘sections 5 and 8 of this

3 Act.’’.

4 SEC. 135. AUTHORIZATION OF PILOT PROJECTS.

5 The last sentence of section 17(b)(1)(A) of the Food

6 Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended

7 by striking ‘‘1995’’ and inserting ‘‘2000’’.

8 SEC. 136. RESPONSE TO WAIVERS.

9 Section 17(b)(1) of the Food Stamp Act of 1977 (7

10 U.S.C. 2026(b)(1)) is amended by adding at the end the

11 following:

12 ‘‘(C) RESPONSE TO WAIVERS.—

13 ‘‘(i) RESPONSE.—Not later than 60

14 days after the date of receiving a request

15 for a waiver under subparagraph (A), the

16 Secretary shall provide a response that—

17 ‘‘(I) approves the waiver request;

18 ‘‘(II) denies the waiver request

19 and explains any modification needed

20 for approval of the waiver request;

21 ‘‘(III) denies the waiver request

22 and explains the grounds for the de23 nial; or

24 ‘‘(IV) requests clarification of the

25 waiver request.
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1 ‘‘(ii) FAILURE TO RESPOND.—If the

2 Secretary does not provide a response

3 under clause (i) not later than 60 days

4 after receiving a request for a waiver, the

5 waiver shall be considered approved.

6 ‘‘(iii) NOTICE OF DENIAL.—On denial

7 of a waiver request under clause (i)(III),

8 the Secretary shall provide a copy of the

9 waiver request and the grounds for the de10 nial to the Committee on Agriculture of

11 the House of Representatives and the

12 Committee on Agriculture, Nutrition, and

13 Forestry of the Senate.’’.

14 SEC. 137. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

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

16 2026) is amended by adding at the end the following:

17 ‘‘(m) PRIVATE SECTOR EMPLOYMENT INITIA18 TIVES.—

19 ‘‘(1) ELECTION TO PARTICIPATE.—

20 ‘‘(A) IN GENERAL.—Subject to the other

21 provisions of this subsection, a State may elect

22 to carry out a private sector employment initia23 tive program under this subsection.

24 ‘‘(B) REQUIREMENT.—A State shall be eli25 gible to carry out a private sector employment
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1 initiative under this subsection only if not less

2 than 50 percent of the households that received

3 food stamp benefits during the summer of 1993

4 also received benefits under a State program

5 funded under part A of title IV of the Social

6 Security Act (42 U.S.C. 601 et seq.) during the

7 summer of 1993.

8 ‘‘(2) PROCEDURE.—A State that has elected to

9 carry out a private sector employment initiative

10 under paragraph (1) may use amounts equal to the

11 food stamp allotments that would otherwise be allot12 ted to a household under the food stamp program,

13 but for the operation of this subsection, to provide

14 cash benefits in lieu of the food stamp allotments to

15 the household if the household is eligible under para16 graph (3).

17 ‘‘(3) ELIGIBILITY.—A household shall be eligi18 ble to receive cash benefits under paragraph (2) if

19 an adult member of the household—

20 ‘‘(A) has worked in unsubsidized employ21 ment in the private sector for not less than the

22 preceding 90 days;

23 ‘‘(B) has earned not less than $350 per

24 month from the employer referred to in sub-
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1 paragraph (A) for not less than the preceding

2 90 days;

3 ‘‘(C)(i) is eligible to receive benefits under

4 a State program funded under part A of title

5 IV of the Social Security Act (42 U.S.C. 601 et

6 seq.); or

7 ‘‘(ii) was eligible to receive benefits under

8 a State program funded under part A of title

9 IV of the Social Security Act (42 U.S.C. 601 et

10 seq.) at the time the member first received cash

11 benefits under this subsection and is no longer

12 eligible for the State program because of earned

13 income;

14 ‘‘(D) is continuing to earn not less than

15 $350 per month from the employment referred

16 to in subparagraph (A); and

17 ‘‘(E) elects to receive cash benefits in lieu

18 of food stamp benefits under this subsection.

19 ‘‘(4) EVALUATION.—A State that operates a

20 program under this subsection for 2 years shall pro21 vide to the Secretary a written evaluation of the im22 pact of cash assistance under this subsection. The

23 State agency shall determine the content of the eval24 uation.’’.
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1 SEC. 138. REAUTHORIZATION OF APPROPRIATIONS.

2 The first sentence of section 18(a)(1) of the Food

3 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

4 striking ‘‘1995’’ and inserting ‘‘2000’’.

5 SEC. 139. REAUTHORIZATION OF PUERTO RICO BLOCK

6 GRANT.

7 The first sentence of section 19(a)(1)(A) of the Food

8 Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended

9 by striking ‘‘$974,000,000’’ and all that follows through

10 ‘‘fiscal year 1995’’ and inserting the following:

11 ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,

12 $1,182,000,000 for fiscal year 1997, $1,223,000,000 for

13 fiscal year 1998, $1,266,000,000 for fiscal year 1999, and

14 $1,310,000,000 for fiscal year 2000’’

15 SEC. 140. SIMPLIFIED FOOD STAMP PROGRAM.

16 (a) IN GENERAL.—The Food Stamp Act of 1977 (7

17 U.S.C. 2011 et seq.) is amended by adding at the end

18 the following:

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

20 ‘‘(a) ELECTION.—Subject to subsection (c), a State

21 agency may elect to carry out a Simplified Food Stamp

22 Program (referred to in this section as a ‘Program’) under

23 this section.

24 ‘‘(b) OPERATION OF PROGRAM.—
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1 ‘‘(1) IN GENERAL.—If a State agency elects to

2 carry out a Program, within the State or a political

3 subdivision of the State—

4 ‘‘(A) a household in which all members re5 ceive assistance under a State program funded

6 under part A of title IV of the Social Security

7 Act (42 U.S.C. 601 et seq.) shall automatically

8 be eligible to participate in the Program; and

9 ‘‘(B) subject to subsection (e), benefits

10 under the Program shall be determined under

11 rules and procedures established by the State

12 under—

13 ‘‘(i) a State program funded under

14 part A of title IV of the Social Security

15 Act (42 U.S.C. 601 et seq.);

16 ‘‘(ii) the food stamp program; or

17 ‘‘(iii) a combination of a State pro18 gram funded under part A of title IV of

19 the Social Security Act (42 U.S.C. 601 et

20 seq.) and the food stamp program.

21 ‘‘(2) SHELTER STANDARD.—The State agency

22 may elect to apply 1 shelter standard to a household

23 that receives a housing subsidy and another shelter

24 standard to a household that does not receive the

25 subsidy.
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1 ‘‘(c) APPROVAL OF PROGRAM.—

2 ‘‘(1) STATE PLAN.—A State agency may not

3 operate a Program unless the Secretary approves a

4 State plan for the operation of the Program under

5 paragraph (2).

6 ‘‘(2) APPROVAL OF PLAN.—

7 ‘‘(A) IN GENERAL.—The Secretary shall

8 approve any State plan to carry out a Program

9 if the Secretary determines that the plan—

10 ‘‘(i) complies with this section; and

11 ‘‘(ii) would not increase Federal costs

12 incurred under this Act.

13 ‘‘(B) DEFINITION OF FEDERAL COSTS.—In

14 this section, the term ‘Federal costs’ does not

15 include any Federal costs incurred under sec16 tion 17.

17 ‘‘(d) INCREASED FEDERAL COSTS.—

18 ‘‘(1) DETERMINATION.—

19 ‘‘(A) IN GENERAL.—The Secretary shall

20 determine whether a Program being carried out

21 by a State agency is increasing Federal costs

22 under this Act.

23 ‘‘(B) NO EXCLUDED HOUSEHOLDS.—In

24 making a determination under subparagraph

25 (A), the Secretary shall not require the State
64

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1 agency to collect or report any information on

2 households not included in the Program.

3 ‘‘(C) ALTERNATIVE ACCOUNTING PERI4 ODS.—The Secretary may approve the request

5 of a State agency to apply alternative account6 ing periods to determine if Federal costs do not

7 exceed the Federal costs had the State agency

8 not elected to carry out the Program.

9 ‘‘(2) NOTIFICATION.—If the Secretary deter10 mines that the Program has increased Federal costs

11 under this Act for any fiscal year, the Secretary

12 shall notify the State agency not later than January

13 1 of the immediately succeeding fiscal year.

14 ‘‘(3) RETURN OF FUNDS.—

15 ‘‘(A) IN GENERAL.—If the Secretary deter16 mines that the Program has increased Federal

17 costs under this Act for a 2-year period, includ18 ing a fiscal year for which notice was given

19 under paragraph (2) and an immediately suc20 ceeding fiscal year, the State agency shall pay

21 to the Treasury of the United States the

22 amount of the increased costs.

23 ‘‘(B) ENFORCEMENT.—If the State agency

24 does not pay an amount due under subpara25 graph (A) on a date that is not later than 90
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1 days after the date of the determination, the

2 Secretary shall reduce amounts otherwise due

3 to the State agency for administrative costs

4 under section 16(a).

5 ‘‘(e) RULES AND PROCEDURES.—

6 ‘‘(1) IN GENERAL.—Except as provided by

7 paragraph (2), a State may apply—

8 ‘‘(A) the rules and procedures established

9 by the State under—

10 ‘‘(i) the State program funded under

11 part A of title IV of the Social Security

12 Act (42 U.S.C. 601 et seq.); or

13 ‘‘(ii) the food stamp program; or

14 ‘‘(B) the rules and procedures of 1 of the

15 programs to certain matters and the rules and

16 procedures of the other program to all remain17 ing matters.

18 ‘‘(2) STANDARDIZED DEDUCTIONS.—The State

19 may standardize the deductions provided under sec20 tion 5(e). In developing the standardized deduction,

21 the State shall give consideration to the work ex22 penses, dependent care costs, and shelter costs of

23 participating households.

24 ‘‘(3) REQUIREMENTS.—In operating a Pro25 gram, the State shall comply with—
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1 ‘‘(A) subsections (a) through (g) of section

2 7;

3 ‘‘(B) section 8(a), except that the income

4 of a household may be determined under a

5 State program funded under part A of title IV

6 of the Social Security Act (42 U.S.C. 601 et

7 seq.);

8 ‘‘(C) subsections (b) and (d) of section 8;

9 ‘‘(D) subsections (a), (c), (d), and (n) of

10 section 11;

11 ‘‘(E) paragraph (3) of section 11(e), to the

12 extent that the paragraph requires that an eli13 gible household be certified and receive an allot14 ment for the period of application not later

15 than 30 days after filing an application;

16 ‘‘(F) paragraphs (8), (9), (12), (17), (19),

17 (21), and (27) of section 11(e);

18 ‘‘(G) section 11(e)(10) or a comparable re19 quirement established by the State under a

20 State program funded under part A of title IV

21 of the Social Security Act (42 U.S.C. 601 et

22 seq.); and

23 ‘‘(H) section 16.’’.
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1 (b) STATE PLAN PROVISIONS.—Section 11(e) of the

2 Act (7 U.S.C. 2020(e)) (as amended by section 114(b))

3 is further amended—

4 (1) in paragraph (25), by striking ‘‘and’’ at the

5 end;

6 (2) in paragraph (26), by striking the period at

7 the end and inserting ‘‘; and’’; and

8 (3) by adding at the end the following:

9 ‘‘(27) the plans of the State agency for operat10 ing, at the election of the State, a program under

11 section 24, including—

12 ‘‘(A) the rules and procedures to be fol13 lowed by the State to determine food stamp

14 benefits;

15 ‘‘(B) how the State will address the needs

16 of households that experience high shelter costs

17 in relation to the incomes of the households;

18 and

19 ‘‘(C) a description of the method by which

20 the State will carry out a quality control system

21 under section 16(c).’’.

22 (c) CONFORMING AMENDMENTS.—

23 (1) Section 8 of the Act (7 U.S.C. 2017) (as

24 amended by section 124) is further amended—

25 (A) by striking subsection (e); and
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•S 904 IS

1 (B) by redesignating subsection (f) as sub2 section (e).

3 (2) Section 17 of the Act (7 U.S.C. 2026) (as

4 amended by section 137) is further amended—

5 (A) by striking subsection (i); and

6 (B) by redesignating subsections (j)

7 through (m) as subsections (i) through (l), re8 spectively.

9 SEC. 141. EFFECTIVE DATE.

10 Except as otherwise provided in this title, this title

11 and the amendments made by this title shall become effec12 tive on October 1, 1995.

13 TITLE II—CHILD NUTRITION

14 PROGRAMS

15 Subtitle A—Reimbursement Rates

16 SEC. 201. TERMINATION OF ADDITIONAL PAYMENT FOR

17 LUNCHES SERVED IN HIGH FREE AND RE18 DUCED PRICE PARTICIPATION SCHOOLS.

19 (a) IN GENERAL.—Section 4(b)(2) of the National

20 School Lunch Act (42 U.S.C. 1753(b)(2)) is amended by

21 striking ‘‘except that’’ and all that follows through ‘‘2

22 cents more’’.

23 (b) EFFECTIVE DATE.—The amendment made by

24 subsection (a) shall become effective on July 1, 1996.
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•S 904 IS

1 SEC. 202. VALUE OF FOOD ASSISTANCE.

2 (a) IN GENERAL.—Section 6(e)(1) of the National

3 School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by

4 striking subparagraph (B) and inserting the following:

5 ‘‘(B) ADJUSTMENTS.—

6 ‘‘(i) IN GENERAL.—The value of food

7 assistance for each meal shall be adjusted

8 each July 1 by the annual percentage

9 change in a 3-month average value of the

10 Price Index for Foods Used in Schools and

11 Institutions for March, April, and May

12 each year.

13 ‘‘(ii) ADJUSTMENTS.—Except as oth14 erwise provided in this subparagraph, in

15 the case of each school year, the Secretary

16 shall—

17 ‘‘(I) base the adjustment made

18 under clause (i) on the amount of the

19 unrounded adjustment for the preced20 ing school year;

21 ‘‘(II) adjust the resulting amount

22 in accordance with clause (i); and

23 ‘‘(III) round the result to the

24 nearest lower cent increment.

25 ‘‘(iii) ADJUSTMENT ON JANUARY 1,

26 1996.—On January 1, 1996, the Secretary
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1 shall round the value of food assistance re2 ferred to in clause (i) to the nearest lower

3 cent increment.

4 ‘‘(iv) ADJUSTMENT FOR 1996–97

5 SCHOOL YEAR.—In the case of the school

6 year beginning July 1, 1996, the value of

7 food assistance shall be the same as the

8 value of food assistance for the school year

9 beginning July 1, 1995, rounded to the

10 nearest lower cent increment.

11 ‘‘(v) ADJUSTMENT FOR 1997–98

12 SCHOOL YEAR.—In the case of the school

13 year beginning July 1, 1997, the Secretary

14 shall—

15 ‘‘(I) base the adjustment made

16 under clause (i) on the amount of the

17 unrounded adjustment for the value of

18 food assistance for the school year be19 ginning July 1, 1995;

20 ‘‘(II) adjust the resulting amount

21 to reflect the annual percentage

22 change in a 3-month average value of

23 the Price Index for Foods Used in

24 Schools and Institutions for March,

25 April, and May for the most recent
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1 12-month period for which the data

2 are available; and

3 ‘‘(III) round the result to the

4 nearest lower cent increment.’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 subsection (a) shall become effective on January 1, 1996.

7 SEC. 203. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

8 (a) IN GENERAL.—Section 11(a)(3)(B) of the Na9 tional School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is

10 amended—

11 (1) by designating the second and third sen12 tences as subparagraphs (C) and (D), respectively;

13 and

14 (2) by striking subparagraph (D) (as so des15 ignated) and inserting the following:

16 ‘‘(D) ROUNDING.—Except as otherwise

17 provided in this paragraph, in the case of each

18 12-month period, the Secretary shall—

19 ‘‘(i) base the adjustment made under

20 this paragraph on the amount of the

21 unrounded adjustment for the preceding

22 12-month period;

23 ‘‘(ii) adjust the resulting amount in

24 accordance with subparagraph (C); and
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•S 904 IS

1 ‘‘(iii) round the result to the nearest

2 lower cent increment.

3 ‘‘(E) ADJUSTMENT ON JANUARY 1, 1996.—

4 On January 1, 1996, the Secretary shall round

5 the rates and factor referred to in subpara6 graph (A) to the nearest lower cent increment.

7 ‘‘(F) ADJUSTMENT FOR 24-MONTH PERIOD

8 BEGINNING JULY 1, 1996.—In the case of the

9 24-month period beginning July 1, 1996, the

10 national average payment rates for paid

11 lunches, paid breakfasts, and paid supplements

12 shall be the same as the national average pay13 ment rate for paid lunches, paid breakfasts, and

14 paid supplements, respectively, for the 12-

15 month period beginning July 1, 1995, rounded

16 to the nearest lower cent increment.

17 ‘‘(G) ADJUSTMENT FOR 12-MONTH PERIOD

18 BEGINNING JULY 1, 1998.—In the case of the

19 12-month period beginning July 1, 1998, the

20 Secretary shall—

21 ‘‘(i) base the adjustments made under

22 this paragraph for—

23 ‘‘(I) paid lunches and paid break24 fasts on the amount of the unrounded

25 adjustment for paid lunches for the
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1 12-month period beginning July 1,

2 1995; and

3 ‘‘(II) paid supplements on the

4 amount of the unrounded adjustment

5 for paid supplements for the 12-

6 month period beginning July 1, 1995;

7 ‘‘(ii) adjust each resulting amount in

8 accordance with subparagraph (C); and

9 ‘‘(iii) round each result to the nearest

10 lower cent increment.’’.

11 (b) EFFECTIVE DATE.—The amendments made by

12 subsection (a) shall become effective on January 1, 1996.

13 SEC. 204. SUMMER FOOD SERVICE PROGRAM FOR

14 CHILDREN.

15 (a) IN GENERAL.—Section 13(b) of the National

16 School Lunch Act (42 U.S.C. 1761(b)) is amended—

17 (1) by striking ‘‘(b)(1)’’ and all that follows

18 through the end of paragraph (1) and inserting the

19 following:

20 ‘‘(b) SERVICE INSTITUTIONS.—

21 ‘‘(1) PAYMENTS.—

22 ‘‘(A) IN GENERAL.—Except as otherwise

23 provided in this paragraph, payments to service

24 institutions shall equal the full cost of food

25 service operations (which cost shall include the
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1 costs of obtaining, preparing, and serving food,

2 but shall not include administrative costs).

3 ‘‘(B) MAXIMUM AMOUNTS.—Subject to

4 subparagraph (C), payments to any institution

5 under subparagraph (A) shall not exceed—

6 ‘‘(i) $2 for each lunch and supper

7 served;

8 ‘‘(ii) $1.20 for each breakfast served;

9 and

10 ‘‘(iii) 50 cents for each meal supple11 ment served.

12 ‘‘(C) ADJUSTMENTS.—Amounts specified

13 in subparagraph (B) shall be adjusted each

14 January 1 to the nearest lower cent increment

15 in accordance with the changes for the 12-

16 month period ending the preceding November

17 30 in the series for food away from home of the

18 Consumer Price Index for All Urban Consum19 ers published by the Bureau of Labor Statistics

20 of the Department of Labor. Each adjustment

21 shall be based on the unrounded adjustment for

22 the prior 12-month period.’’; and

23 (2) by striking paragraph (4).

24 (b) EFFECTIVE DATE.—The amendments made by

25 subsection (a) shall become effective on January 1, 1996.
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1 SEC. 205. SPECIAL MILK PROGRAM.

2 (a) IN GENERAL.—Section 3(a) of the Child Nutri3 tion Act of 1966 (42 U.S.C. 1772(a)) is amended by strik4 ing paragraph (8) and inserting the following:

5 ‘‘(8) ADJUSTMENTS.—

6 ‘‘(A) IN GENERAL.—Except as otherwise

7 provided in this paragraph, in the case of each

8 school year, the Secretary shall—

9 ‘‘(i) base the adjustment made under

10 paragraph (7) on the amount of the

11 unrounded adjustment for the preceding

12 school year;

13 ‘‘(ii) adjust the resulting amount in

14 accordance with paragraph (7); and

15 ‘‘(iii) round the result to the nearest

16 lower cent increment.

17 ‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—

18 On January 1, 1996, the Secretary shall round

19 the minimum rate referred to in paragraph (7)

20 to the nearest lower cent increment.

21 ‘‘(C) ADJUSTMENT FOR 1996–97 SCHOOL

22 YEAR.—In the case of the school year beginning

23 July 1, 1996, the minimum rate shall be the

24 same as the minimum rate for the school year

25 beginning July 1, 1995, rounded to the nearest

26 lower cent increment.
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1 ‘‘(D) ADJUSTMENT FOR 1997–98 SCHOOL

2 YEAR.—In the case of the school year beginning

3 July 1, 1997, the Secretary shall—

4 ‘‘(i) base the adjustment made under

5 paragraph (7) on the amount of the

6 unrounded adjustment for the minimum

7 rate for the school year beginning July 1,

8 1995;

9 ‘‘(ii) adjust the resulting amount to

10 reflect changes in the Producer Price

11 Index for Fresh Processed Milk published

12 by the Bureau of Labor Statistics of the

13 Department of Labor for the most recent

14 12-month period for which the data are

15 available; and

16 ‘‘(iii) round the result to the nearest

17 lower cent increment.’’.

18 (b) EFFECTIVE DATE.—The amendment made by

19 subsection (a) shall become effective on January 1, 1996.

20 SEC. 206. FREE AND REDUCED PRICE BREAKFASTS.

21 (a) IN GENERAL.—Section 4(b) of the Child Nutri22 tion Act of 1966 (42 U.S.C. 1773(b)) is amended—

23 (1) in the second sentence of paragraph (1)(B),

24 by striking ‘‘, adjusted to the nearest one-fourth

25 cent’’ and inserting ‘‘(as adjusted pursuant to sec-
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1 tion 11(a) of the National School Lunch Act (42

2 U.S.C. 1759a(a))’’; and

3 (2) in paragraph (2)(B)(ii)—

4 (A) by striking ‘‘nearest one-fourth cent’’

5 and inserting ‘‘nearest lower cent increment for

6 the applicable school year’’; and

7 (B) by inserting before the period at the

8 end the following: ‘‘, and the adjustment re9 quired by this clause shall be based on the

10 unrounded adjustment for the preceding school

11 year’’.

12 (b) EFFECTIVE DATE.—The amendments made by

13 subsection (a) shall become effective on July 1, 1996.

14 SEC. 207. CONFORMING REIMBURSEMENT FOR PAID

15 BREAKFASTS AND LUNCHES.

16 (a) IN GENERAL.—The last sentence of section

17 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.

18 1773(b)(1)(B)) is amended by striking ‘‘8.25 cents’’ and

19 all that follows through ‘‘Act)’’ and inserting ‘‘the same

20 as the national average lunch payment established under

21 section 4(b) of the National School Lunch Act (42 U.S.C.

22 1753(b))’’.

23 (b) EFFECTIVE DATE.—The amendment made by

24 subsection (a) shall become effective on January 1, 1996.
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1 Subtitle B—Grant Programs

2 SEC. 211. SCHOOL BREAKFAST STARTUP GRANTS.

3 Section 4 of the Child Nutrition Act of 1966 (42

4 U.S.C. 1773) is amended by striking subsection (g).

5 SEC. 212. NUTRITION EDUCATION AND TRAINING PRO6 GRAMS.

7 Section 19(i)(2)(A) of the Child Nutrition Act of

8 1966 (42 U.S.C. 1788(i)(2)(A)) is amended by striking

9 ‘‘$10,000,000’’ and inserting ‘‘$7,000,000’’.

10 SEC. 213. EFFECTIVE DATE.

11 The amendments made by this subtitle shall become

12 effective on October 1, 1996.

13 Subtitle C—Other Amendments

14 SEC. 221. FREE AND REDUCED PRICE POLICY STATEMENT.

15 (a) SCHOOL LUNCH PROGRAM.—Section 9(b)(2) of

16 the National School Lunch Act (42 U.S.C. 1758(b)(2))

17 is amended by adding at the end the following:

18 ‘‘(D) FREE AND REDUCED PRICE POLICY

19 STATEMENT.—A school shall not be required to

20 submit a free and reduced price policy state21 ment to a State educational agency under this

22 Act unless there is a substantive change in the

23 free and reduced price policy of the school. A

24 routine change in the policy of a school, such as

25 an annual adjustment of the income eligibility
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1 guidelines for free and reduced price meals,

2 shall not be sufficient cause for requiring the

3 school to submit a policy statement.’’.

4 (b) SCHOOL BREAKFAST PROGRAM.—Section 4(b)(1)

5 of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1))

6 is amended by adding at the end the following:

7 ‘‘(E) FREE AND REDUCED PRICE POLICY

8 STATEMENT.—A school shall not be required to

9 submit a free and reduced price policy state10 ment to a State educational agency under this

11 Act unless there is a substantive change in the

12 free and reduced price policy of the school. A

13 routine change in the policy of a school, such as

14 an annual adjustment of the income eligibility

15 guidelines for free and reduced price meals,

16 shall not be sufficient cause for requiring the

17 school to submit a policy statement.’’.

18 SEC. 222. SUMMER FOOD SERVICE PROGRAM FOR

19 CHILDREN.

20 (a) PERMITTING OFFER VERSUS SERVE.—Section

21 13(f) of the National School Lunch Act (42 U.S.C.

22 1761(f)) is amended—

23 (1) by striking ‘‘(f) Service’’ and inserting the

24 following:

25 ‘‘(f) NUTRITIONAL STANDARDS.—
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1 ‘‘(1) IN GENERAL.—Service’’; and

2 (2) by adding at the end the following:

3 ‘‘(2) OFFER VERSUS SERVE.—At the option of

4 a local school food authority, a student in a school

5 under the authority that participates in the program

6 may be allowed to refuse not more than 1 item of

7 a meal that the student does not intend to consume.

8 A refusal of an offered food item shall not affect the

9 amount of payments made under this section to a

10 school for the meal.’’.

11 (b) REMOVING MANDATORY NOTICE TO INSTITU12 TIONS.—Section 13(n)(2) of the Act is amended by strik13 ing ‘‘and its plans and schedule’’ and inserting ‘‘except

14 that the Secretary may not require a State to submit a

15 plan or schedule’’.

16 SEC. 223. CHILD AND ADULT CARE FOOD PROGRAM.

17 (a) PAYMENTS TO SPONSOR EMPLOYEES.—Para18 graph (2) of the last sentence of section 17(a) of the Na19 tional School Lunch Act (42 U.S.C. 1766(a)) is

20 amended—

21 (1) by striking ‘‘and’’ at the end of subpara22 graph (B);

23 (2) by striking the period at the end of sub24 paragraph (C) and inserting ‘‘; and’’; and

25 (3) by adding at the end the following:
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1 ‘‘(D) in the case of a family or group day

2 care home sponsoring organization that employs

3 more than 1 employee, the organization does

4 not base payments to an employee of the orga5 nization on the number of family or group day

6 care homes recruited, managed, or monitored.’’.

7 (b) IMPROVED TARGETING OF DAY CARE HOME RE8 IMBURSEMENTS.—

9 (1) RESTRUCTURED DAY CARE HOME REIM10 BURSEMENTS.—Section 17(f)(3) of the Act is

11 amended by striking ‘‘(3)(A) Institutions’’ and all

12 that follows through the end of subparagraph (A)

13 and inserting the following:

14 ‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP

15 DAY CARE HOME SPONSORING ORGANIZATIONS.—

16 ‘‘(A) REIMBURSEMENT FACTOR.—

17 ‘‘(i) IN GENERAL.—An institution

18 that participates in the program under this

19 section as a family or group day care home

20 sponsoring organization shall be provided,

21 for payment to a home of the organization,

22 reimbursement factors in accordance with

23 this subparagraph for the cost of obtaining

24 and preparing food and prescribed labor
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1 costs involved in providing meals under

2 this section.

3 ‘‘(ii) TIER I FAMILY OR GROUP DAY

4 CARE HOMES.—

5 ‘‘(I) DEFINITION.—In this para6 graph, the term ‘tier I family or group

7 day care home’ means—

8 ‘‘(aa) a family or group day

9 care home that is located in a ge10 ographic area, as defined by the

11 Secretary based on census data,

12 in which at least 50 percent of

13 the children residing in the area

14 are members of households whose

15 incomes meet the eligibility

16 standards for free or reduced

17 price meals under section 9;

18 ‘‘(bb) a family or group day

19 care home that is located in an

20 area served by a school enrolling

21 elementary students in which at

22 least 50 percent of the total num23 ber of children enrolled are cer24 tified eligible to receive free or

25 reduced price school meals under
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1 this Act or the Child Nutrition

2 Act of 1966 (42 U.S.C. 1771 et

3 seq.); or

4 ‘‘(cc) a family or group day

5 care home that is operated by a

6 provider whose household meets

7 the eligibility standards for free

8 or reduced price meals under sec9 tion 9 and whose income is veri10 fied by a sponsoring organization

11 under regulations established by

12 the Secretary.

13 ‘‘(II) REIMBURSEMENT.—Except

14 as provided in subclause (III), a tier

15 I family or group day care home shall

16 be provided reimbursement factors

17 under this clause without a require18 ment for documentation of the costs

19 described in clause (i), except that re20 imbursement shall not be provided

21 under this subclause for meals or sup22 plements served to the children of a

23 person acting as a family or group

24 day care home provider unless the

25 children meet the eligibility standards
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1 for free or reduced price meals under

2 section 9.

3 ‘‘(III) FACTORS.—Except as pro4 vided in subclause (IV), the reim5 bursement factors applied to a home

6 referred to in subclause (II) shall be

7 the factors in effect on the date of en8 actment of this subclause.

9 ‘‘(IV) ADJUSTMENTS.—The re10 imbursement factors under this sub11 paragraph shall be adjusted on Au12 gust 1, 1996, July 1, 1997, and each

13 July 1 thereafter, to reflect changes in

14 the Consumer Price Index for food at

15 home for the most recent 12-month

16 period for which the data are avail17 able. The reimbursement factors

18 under this subparagraph shall be

19 rounded to the nearest lower cent in20 crement and based on the unrounded

21 adjustment for the preceding 12-

22 month period.

23 ‘‘(iii) TIER II FAMILY OR GROUP DAY

24 CARE HOMES.—

25 ‘‘(I) IN GENERAL.—
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1 ‘‘(aa) FACTORS.—Except as

2 provided in subclause (II), with

3 respect to meals or supplements

4 served under this clause by a

5 family or group day care home

6 that does not meet the criteria

7 set forth in clause (ii)(I), the re8 imbursement factors shall be $1

9 for lunches and suppers, 30 cents

10 for breakfasts, and 15 cents for

11 supplements.

12 ‘‘(bb) ADJUSTMENTS.—The

13 factors shall be adjusted on July

14 1, 1997, and each July 1 there15 after, to reflect changes in the

16 Consumer Price Index for food at

17 home for the most recent 12-

18 month period for which the data

19 are available. The reimbursement

20 factors under this item shall be

21 rounded down to the nearest

22 lower cent increment and based

23 on the unrounded adjustment for

24 the preceding 12-month period.
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1 ‘‘(cc) REIMBURSEMENT.—A

2 family or group day care home

3 shall be provided reimbursement

4 factors under this subclause with5 out a requirement for docu6 mentation of the costs described

7 in clause (i), except that reim8 bursement shall not be provided

9 under this subclause for meals or

10 supplements served to the chil11 dren of a person acting as a fam12 ily or group day care home pro13 vider unless the children meet the

14 eligibility standards for free or

15 reduced price meals under section

16 9.

17 ‘‘(II) OTHER FACTORS.—A fam18 ily or group day care home that does

19 not meet the criteria set forth in

20 clause (ii)(I) may elect to be provided

21 reimbursement factors determined in

22 accordance with the following require23 ments:

24 ‘‘(aa) CHILDREN ELIGIBLE

25 FOR FREE OR REDUCED PRICE
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1 MEALS.—In the case of meals or

2 supplements served under this

3 subsection to children who are

4 members of households whose in5 comes meet the eligibility stand6 ards for free or reduced price

7 meals under section 9, the family

8 or group day care home shall be

9 provided reimbursement factors

10 set by the Secretary in accord11 ance with clause (ii)(III).

12 ‘‘(bb) INELIGIBLE CHIL13 DREN.—In the case of meals or

14 supplements served under this

15 subsection to children who are

16 members of households whose in17 comes do not meet the eligibility

18 standards, the family or group

19 day care home shall be provided

20 reimbursement factors in accord21 ance with subclause (I).

22 ‘‘(III) INFORMATION AND DE23 TERMINATIONS.—

24 ‘‘(aa) IN GENERAL.—If a

25 family or group day care home
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1 elects to claim the factors de2 scribed in subclause (II), the

3 family or group day care home

4 sponsoring organization serving

5 the home shall collect the nec6 essary income information, as de7 termined by the Secretary, from

8 any parent or other caretaker to

9 make the determinations speci10 fied in subclause (II) and shall

11 make the determinations in ac12 cordance with rules prescribed by

13 the Secretary.

14 ‘‘(bb) CATEGORICAL ELIGI15 BILITY.—In making a determina16 tion under item (aa), a family or

17 group day care home sponsoring

18 organization may consider a child

19 participating in or subsidized

20 under, or a child with a parent

21 participating in or subsidized

22 under, a federally or State sup23 ported child care or other benefit

24 program with an income eligi25 bility limit that does not exceed
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1 the eligibility standard for free or

2 reduced price meals under section

3 9 to be a child who is a member

4 of a household whose income

5 meets the eligibility standards

6 under section 9.

7 ‘‘(cc) FACTORS FOR CHIL8 DREN ONLY.—A family or group

9 day care home may elect to re10 ceive the reimbursement factors

11 prescribed under clause (ii)(III)

12 solely for the children participat13 ing in a program referred to in

14 item (bb) if the home elects not

15 to have income statements col16 lected from parents or other care17 takers.

18 ‘‘(IV) SIMPLIFIED MEAL COUNT19 ING AND REPORTING PROCEDURES.—

20 The Secretary shall prescribe sim21 plified meal counting and reporting

22 procedures for use by a family or

23 group day care home that elects to

24 claim the factors under subclause (II)

25 and by a family or group day care
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1 home sponsoring organization that

2 serves the home. The procedures the

3 Secretary prescribes may include 1 or

4 more of the following:

5 ‘‘(aa) Setting an annual per6 centage for each home of the

7 number of meals served that are

8 to be reimbursed in accordance

9 with the reimbursement factors

10 prescribed under clause (ii)(III)

11 and an annual percentage of the

12 number of meals served that are

13 to be reimbursed in accordance

14 with the reimbursement factors

15 prescribed under clause (iii)(I),

16 based on the family income of

17 children enrolled in the home in a

18 specified month or other period.

19 ‘‘(bb) Placing a home into 1

20 of 2 or more reimbursement cat21 egories annually based on the

22 percentage of children in the

23 home whose households have in24 comes that meet the eligibility

25 standards under section 9, with
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1 each such reimbursement cat2 egory carrying a set of reim3 bursement factors such as the

4 factors prescribed under clause

5 (ii)(II) or subclause (I) or factors

6 established within the range of

7 factors prescribed under clause

8 (ii)(II) and subclause (I).

9 ‘‘(cc) Such other simplified

10 procedures as the Secretary may

11 prescribe.

12 ‘‘(V) MINIMUM VERIFICATION

13 REQUIREMENTS.—The Secretary may

14 establish any necessary minimum ver15 ification requirements.’’.

16 (2) GRANTS TO STATES TO PROVIDE ASSIST17 ANCE TO FAMILY OR GROUP DAY CARE HOMES.—

18 Section 17(f)(3) of the Act is amended by adding at

19 the end the following:

20 ‘‘(D) GRANTS TO STATES TO PROVIDE AS21 SISTANCE TO FAMILY OR GROUP DAY CARE

22 HOMES.—

23 ‘‘(i) IN GENERAL.—

24 ‘‘(I) RESERVATION.—From

25 amounts made available to carry out
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1 this section, the Secretary shall re2 serve $5,000,000 of the amount made

3 available for fiscal year 1996.

4 ‘‘(II) PURPOSE.—The Secretary

5 shall use the funds made available

6 under subclause (I) to provide grants

7 to States for the purpose of provid8 ing—

9 ‘‘(aa) assistance, including

10 grants, to family and day care

11 home sponsoring organizations

12 and other appropriate organiza13 tions, in securing and providing

14 training, materials, automated

15 data processing assistance, and

16 other assistance for the staff of

17 the sponsoring organizations; and

18 ‘‘(bb) training and other as19 sistance to family and group day

20 care homes in the implementation

21 of the amendments to subpara22 graph (A) made by section

23 574(b)(1) of the Family Self-Suf24 ficiency Act of 1995.
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1 ‘‘(ii) ALLOCATION.—The Secretary

2 shall allocate from the funds reserved

3 under clause (i)(II)—

4 ‘‘(I) $30,000 in base funding to

5 each State; and

6 ‘‘(II) any remaining amount

7 among the States, based on the num8 ber of family day care homes partici9 pating in the program in a State in

10 1994 as a percentage of the number

11 of all family day care homes partici12 pating in the program in 1994.

13 ‘‘(iii) RETENTION OF FUNDS.—Of the

14 amount of funds made available to a State

15 for a fiscal year under clause (i), the State

16 may retain not to exceed 30 percent of the

17 amount to carry out this subparagraph.

18 ‘‘(iv) ADDITIONAL PAYMENTS.—Any

19 payments received under this subpara20 graph shall be in addition to payments

21 that a State receives under subparagraph

22 (A) (as amended by section 134(b)(1) of

23 the Family Self-Sufficiency Act of 1995).’’.
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1 (3) PROVISION OF DATA.—Section 17(f)(3) of

2 the Act (as amended by paragraph (2)) is further

3 amended by adding at the end the following:

4 ‘‘(E) PROVISION OF DATA TO FAMILY OR

5 GROUP DAY CARE HOME SPONSORING ORGANI6 ZATIONS.—

7 ‘‘(i) CENSUS DATA.—The Secretary

8 shall provide to each State agency admin9 istering a child and adult care food pro10 gram under this section data from the

11 most recent decennial census survey or

12 other appropriate census survey for which

13 the data are available showing which areas

14 in the State meet the requirements of sub15 paragraph (A)(ii)(I)(aa). The State agency

16 shall provide the data to family or group

17 day care home sponsoring organizations lo18 cated in the State.

19 ‘‘(ii) SCHOOL DATA.—

20 ‘‘(I) IN GENERAL.—A State

21 agency administering the school lunch

22 program under this Act or the school

23 breakfast program under the Child

24 Nutrition Act of 1966 (42 U.S.C.

25 1771 et seq.) shall provide data for
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1 each elementary school in the State,

2 or shall direct each school within the

3 State to provide data for the school,

4 to approved family or group day care

5 home sponsoring organizations that

6 request the data, on the percentage of

7 enrolled children who are eligible for

8 free or reduced price meals.

9 ‘‘(II) USE OF DATA FROM PRE10 CEDING SCHOOL YEAR.—In determin11 ing for a fiscal year or other annual

12 period whether a home qualifies as a

13 tier I family or group day care home

14 under subparagraph (A)(ii)(I), the

15 State agency administering the pro16 gram under this section, and a family

17 or group day care home sponsoring

18 organization, shall use the most cur19 rent available data at the time of the

20 determination.

21 ‘‘(iii) DURATION OF DETERMINA22 TION.—For purposes of this section, a de23 termination that a family or group day

24 care home is located in an area that quali25 fies the home as a tier I family or group
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1 day care home (as the term is defined in

2 subparagraph (A)(ii)(I)), shall be in effect

3 for 3 years (unless the determination is

4 made on the basis of census data, in which

5 case the determination shall remain in ef6 fect until more recent census data are

7 available) unless the State agency deter8 mines that the area in which the home is

9 located no longer qualifies the home as a

10 tier I family or group day care home.’’.

11 (4) CONFORMING AMENDMENTS.—Section 17(c)

12 of the Act is amended by inserting ‘‘except as pro13 vided in subsection (f)(3),’’ after ‘‘For purposes of

14 this section,’’ each place it appears in paragraphs

15 (1), (2), and (3).

16 (c) DISALLOWING MEAL CLAIMS.—The fourth sen17 tence of section 17(f)(4) of the Act is amended by insert18 ing ‘‘(including institutions that are not family or group

19 day care home sponsoring organizations)’’ after ‘‘institu20 tions’’.

21 (d) ELIMINATION OF STATE PAPERWORK AND OUT22 REACH BURDEN.—Section 17 of the Act is amended by

23 striking subsection (k) and inserting the following:

24 ‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A

25 State participating in the program established under this
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1 section shall provide sufficient training, technical assist2 ance, and monitoring to facilitate effective operation of the

3 program. The Secretary shall assist the State in develop4 ing plans to fulfill the requirements of this subsection.’’.

5 (e) EFFECTIVE DATE.—

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this section

8 shall become effective on the date of enactment of

9 this Act.

10 (2) IMPROVED TARGETING OF DAY CARE HOME

11 REIMBURSEMENTS.—The amendments made by

12 paragraphs (1), (3), and (4) of subsection (b) shall

13 become effective on August 1, 1996.

14 SEC. 224. REDUCING REQUIRED REPORTS TO STATE AGEN15 CIES AND SCHOOLS.

16 Section 19 of the National School Lunch Act (42

17 U.S.C. 1769a) is amended by striking subsection (c) and

18 inserting the following:

19 ‘‘(c) REPORT.—Not later than 1 year after the date

20 of enactment of the Family Self-Sufficiency Act of 1995,

21 the Secretary shall—

22 ‘‘(1) review all reporting requirements under

23 this Act and the Child Nutrition Act of 1966 (42

24 U.S.C. 1771 et seq.) that are in effect, as of the

25 date of enactment of the Family Self-Sufficiency Act
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1 of 1995, for agencies and schools referred to in sub2 section (a); and

3 ‘‘(2) provide a report to the Committee on Eco4 nomic and Educational Opportunities of the House

5 of Representatives and the Committee on Agri6 culture, Nutrition, and Forestry of the Senate

7 that—

8 ‘‘(A) describes the reporting requirements

9 described in paragraph (1) that are required by

10 law;

11 ‘‘(B) makes recommendations concerning

12 the elimination of any requirement described in

13 subparagraph (A) because the contribution of

14 the requirement to program effectiveness is not

15 sufficient to warrant the paperwork burden that

16 is placed on agencies and schools referred to in

17 subsection (a); and

18 ‘‘(C) provides a justification for reporting

19 requirements described in paragraph (1) that

20 are required solely by regulation.’’.

21 TITLE III—REAUTHORIZATION

22 SEC. 301. COMMODITY DISTRIBUTION PROGRAM; COMMOD23 ITY SUPPLEMENTAL FOOD PROGRAMS.

24 (a) REAUTHORIZATION.—The first sentence of sec25 tion 4(a) of the Agriculture and Consumer Protection Act
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1 of 1973 (Public Law 93–86; 7 U.S.C. 612c note) is

2 amended by striking ‘‘1995’’ and inserting ‘‘2000’’.

3 (b) ADMINISTRATIVE FUNDING.—Section 5(a)(2) of

4 the Act (Public Law 93–86; 7 U.S.C. 612c note) is amend5 ed by striking ‘‘1995’’ and inserting ‘‘2000’’.

6 SEC. 302. EMERGENCY FOOD ASSISTANCE PROGRAM.

7 (a) REAUTHORIZATION.—The first sentence of sec8 tion 204(a)(1) of the Emergency Food Assistance Act of

9 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended

10 by striking ‘‘1995’’ and inserting ‘‘2000’’.

11 (b) PROGRAM TERMINATION.—Section 212 of the

12 Act (Public Law 98–8; 7 U.S.C. 612c note) is amended

13 by striking ‘‘1995’’ and inserting ‘‘2000’’.

14 (c) REQUIRED PURCHASES OF COMMODITIES.—Sec15 tion 214 of the Act (Public Law 98–8; 7 U.S.C. 612c note)

16 is amended—

17 (1) in the first sentence of subsection (a), by

18 striking ‘‘1995’’ and inserting ‘‘2000’’; and

19 (2) in subsection (e), by striking ‘‘1995’’ each

20 place it appears and inserting ‘‘2000’’.

21 SEC. 303. SOUP KITCHENS PROGRAM.

22 Section 110 of the Hunger Prevention Act of 1988

23 (Public Law 100–435; 7 U.S.C. 612c note) is amended—

24 (1) in the first sentence of subsection (a), by

25 striking ‘‘1995’’ and inserting ‘‘2000’’; and
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1 (2) in subsection (c)(2)—

2 (A) in the paragraph heading, by striking

3 ‘‘1995’’ and inserting ‘‘2000’’; and

4 (B) by striking ‘‘1995’’ each place it ap5 pears and inserting ‘‘2000’’.

6 SEC. 304. NATIONAL COMMODITY PROCESSING.

7 The first sentence of section 1775(2)(A) of the Agri8 culture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is

9 amended by striking ‘‘1995’’ and inserting ‘‘2000’’.

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