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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1188 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 1188

    To help individuals receiving assistance under the supplemental 
nutrition assistance program in obtaining self-sufficiency, to provide 
information on total spending on means-tested welfare programs, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 18, 2023

Mr. Lee (for himself and Mr. Scott of Florida) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
    To help individuals receiving assistance under the supplemental 
nutrition assistance program in obtaining self-sufficiency, to provide 
information on total spending on means-tested welfare programs, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SNAP Reform and Upward Mobility Act 
of 2023''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                TITLE I--POVERTY MEASUREMENT IMPROVEMENT

Sec. 101. Improving the measurement of poverty in the United States.
Sec. 102. Commission on valuation of government benefits.
Sec. 103. GAO reports on effect of supplementary data on calculation of 
                            poverty rates and related measures.
Sec. 104. Rule of construction.
  TITLE II--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Sec. 201. Work requirements.
Sec. 202. Employment and training program outcomes reporting.
Sec. 203. State matching funds.
Sec. 204. Eligibility.
Sec. 205. Compliance with fraud investigations.
Sec. 206. Authorized users of electronic benefit transfer cards.
Sec. 207. Reauthorization of medium- or high-risk retail food stores 
                            and wholesale food concerns.
Sec. 208. State activity reports.
Sec. 209. Disqualification by State agency.
Sec. 210. Retention of recaptured funds by States.

                TITLE I--POVERTY MEASUREMENT IMPROVEMENT

SEC. 101. IMPROVING THE MEASUREMENT OF POVERTY IN THE UNITED STATES.

    (a) Definitions.--In this section:
            (1) Federal benefit.--The term ``Federal benefit'' means a 
        benefit, refundable tax credit, or other form of assistance 
        provided under any of the following programs:
                    (A) Earned Income Tax Credit (refundable portion).
                    (B) Child Tax Credit (refundable portion).
                    (C) Supplemental Security Income.
                    (D) Temporary Assistance for Needy Families.
                    (E) Title IV-E Foster Care.
                    (F) Title IV-E Adoption Assistance.
                    (G) Medicaid.
                    (H) SCHIP.
                    (I) Indian Health Services.
                    (J) PPACA refundable premium assistance and cost 
                sharing tax credit.
                    (K) Assets for Independence program.
                    (L) Supplemental Nutrition Assistance Food Program.
                    (M) School Breakfast.
                    (N) School Lunch.
                    (O) Women, Infants, and Children (WIC) Food 
                Program.
                    (P) Child and Adult Care Food Program.
                    (Q) The Food Distribution Program on Indian 
                Reservations (FDPIR).
                    (R) Nutrition Program for the Elderly.
                    (S) Seniors Farmers' Market Nutrition Program.
                    (T) Commodity Supplemental Food Program.
                    (U) Section 8 Housing.
                    (V) Public Housing.
                    (W) Housing for Persons with Disabilities.
                    (X) Home Investment Partnership Program.
                    (Y) Rural Housing Service.
                    (Z) Rural Housing Insurance Fund.
                    (AA) Low-Income Home Energy Assistance Program.
                    (BB) Universal Service Fund Low Income Support 
                Mechanism (subsidized phone services).
                    (CC) Pell Grants.
                    (DD) Supplemental Educational Opportunity Grants.
                    (EE) American Opportunity Tax Credit (refundable 
                portion).
                    (FF) Healthy Start.
                    (GG) Job Corps.
                    (HH) Head Start (including Early Head Start).
                    (II) Weatherization Assistance.
                    (JJ) Chafee Foster Care Independence Program.
                    (KK) Child Care Subsidies from the Child Care and 
                Development Fund.
                    (LL) Child Care from the Temporary Assistance for 
                Needy Families Block Grant.
                    (MM) Emergency Assistance to Needy Families with 
                Children.
                    (NN) Senior Community Service Employment Program.
                    (OO) Migrant and Seasonal Farm Workers Training 
                Program.
                    (PP) Indian and Native American Employment and 
                Training Program.
                    (QQ) Independent Living Education and Training 
                Vouchers.
            (2) Resource unit.--The term ``resource unit'' means all 
        co-resident individuals who are related by birth, marriage, or 
        adoption, plus any co-resident unrelated children, foster 
        children, and unmarried partners and their relatives.
            (3) Market income.--The term ``market income'' means 
        individual income from the following:
                    (A) Earnings.
                    (B) Interest.
                    (C) Dividends.
                    (D) Rents, royalties, and estates and trusts.
                    (E) The monetary value of employer-sponsored health 
                insurance benefits.
                    (F) Other forms of income, as determined by the 
                Director.
            (4) Entitlement and other income.--The term ``entitlement 
        and other income'' means income from the following:
                    (A) Unemployment (insurance) compensation.
                    (B) Workers' compensation.
                    (C) Social Security.
                    (D) Veterans' payments and benefits.
                    (E) Survivor benefits.
                    (F) Disability benefits (not including benefits 
                under the Supplemental Security Income program).
                    (G) Pension or retirement income.
                    (H) Alimony.
                    (I) Child support.
                    (J) Financial assistance from outside of the 
                household.
                    (K) Medicare.
            (5) Entitlement and earned unit income.--The term 
        ``entitlement and earned unit income'' means the sum of all 
        market income and entitlement and other income.
            (6) Income tax data.--The term ``income tax data'' means 
        return information, as such term is defined under section 
        6103(b)(2) of the Internal Revenue Code of 1986.
            (7) Administering agency.--The term ``administering 
        agency'' means a State or Federal agency responsible for 
        administering a Federal benefit.
            (8) Total resource unit income.--The term ``total resource 
        unit income'' means, with respect to a resource unit, an amount 
        equal to--
                    (A) the sum of--
                            (i) all market income attributable to 
                        members of the unit;
                            (ii) all entitlement and other income 
                        attributable to members of the unit; and
                            (iii) an amount, or cash equivalent, of all 
                        Federal benefits received by members of the 
                        unit; minus
                    (B) all State and Federal income and payroll taxes 
                attributable to members of the unit.
            (9) Earned resource unit income.--The term ``earned 
        resource unit income'' means, with respect to a resource unit, 
        all market income attributable to members of the unit.
            (10) Personally identifiable information.--The term 
        ``personally identifiable information'' means any information 
        that identifies an individual or could reasonably be used to 
        identify an individual that is--
                    (A) collected pursuant to a survey conducted by the 
                Bureau of the Census; or
                    (B) disclosed to the Bureau of the Census by an 
                administering agency for the purpose of carrying out 
                subsection (b).
            (11) Director.--The term ``Director'' means the Director of 
        the Bureau of the Census.
    (b) Verification of Data Collected in the Annual Social and 
Economic Supplement to the Current Population Survey.--
            (1) In general.--Beginning in fiscal year 2024, in order to 
        more accurately determine the extent of poverty in the United 
        States and the anti-poverty effectiveness of Federal benefit 
        programs, the Director shall collect, in addition to the data 
        collected under the Annual Social and Economic Supplement to 
        the Current Population Survey, data from the appropriate 
        administering agencies related to the following:
                    (A) Participation in any Federal benefit program 
                and the monetary or cash equivalent value of such 
                benefit for an individual, where possible, and 
                otherwise for resource units or households.
                    (B) The total amount of market income for 
                individuals.
                    (C) The total amount of entitlement and other 
                income for individuals.
                    (D) Payment of income taxes and payroll taxes for 
                individuals.
                    (E) Total resource unit income.
                    (F) Total earned resource unit income.
                    (G) Any other information about benefits or income 
                received by individuals that the Director determines 
                necessary to carry out this section and that is not 
                included in the data relating to participation in 
                Federal benefit programs or market income for 
                individuals.
            (2) Administering agency data.--Not later than 6 months 
        after receiving a request from the Director, the head of each 
        administering agency shall make available to the Director such 
        data (including income tax data) as the Director shall require 
        for the purpose of carrying out this subsection and for the 
        purposes outlined in section 6 of title 13, United States Code.
            (3) Publication of data.--
                    (A) Rates and other data.--
                            (i) Report.--The Director shall submit to 
                        Congress, not later than January 1, 2025, a 
                        report detailing the implementation of this 
                        section, including--
                                    (I) the availability of related 
                                data;
                                    (II) the quality of the data; and
                                    (III) the methodology proposed for 
                                assigning dollar values to the receipt 
                                of noncash Federal benefits.
                            (ii) Tables and graphs.--The Director shall 
                        produce tables and graphs showing for each year 
                        the poverty rates and related data calculated 
                        using data collected under paragraph (1), 
                        including--
                                    (I) the total resource unit income 
                                for survey respondents;
                                    (II) the total earned resource unit 
                                income for survey respondents;
                                    (III) the total of all amounts 
                                described in subparagraphs (A) through 
                                (G) of paragraph (1) that are received 
                                by survey respondents;
                                    (IV) a breakdown of the amount of 
                                income taxes and payroll taxes 
                                attributable to survey respondents; and
                                    (V) for 2027 and subsequent years, 
                                poverty rates calculated using updated 
                                poverty thresholds as described in 
                                clause (iii).
                            (iii) Updated poverty thresholds.--For 2027 
                        and subsequent years, the Director shall, in 
                        addition to the official poverty line (as 
                        defined by the Office of Management and Budget) 
                        and the supplemental poverty measure, provide 
                        an alternative poverty measure that uses the 
                        personal consumption expenditure price index 
                        (as published by the Bureau of Economic 
                        Analysis) and accounts for the data collected 
                        under paragraph (1). The Director shall provide 
                        a comparison of the official poverty line (as 
                        defined by the Office of Management and 
                        Budget), the supplemental poverty measure rate 
                        as defined by the Bureau of the Census, and the 
                        alternative poverty rate created using the 
                        alternative poverty measure under this section.
                            (iv) Rule of construction.--The Office of 
                        Management and Budget shall not use the 
                        additional data collected by the Director 
                        pursuant to paragraph (1) for purposes of 
                        defining the official poverty line.
                    (B) Confidentiality.--Consistent with the 
                provisions of sections 8, 9, and 23(c) of title 13, 
                United States Code, the Director shall ensure the 
                confidentiality of information furnished to the 
                Director under this subsection.
    (c) Protection and Disclosure of Personally Identifiable 
Information.--
            (1) In general.--The security, disclosure, and 
        confidentiality provisions set forth in sections 9 and 23 of 
        title 13, United States Code, shall apply to personally 
        identifiable information obtained by the Bureau of the Census 
        pursuant to this section.
            (2) Restricted access to personally identifiable 
        information.--Access to personally identifiable information 
        collected to supplement the restricted-use Current Population 
        Survey Annual Social and Economic Supplements in accordance 
        with subsection (b)(1) shall be available only to those who 
        have access to the Current Population Survey data with the 
        permission of the Bureau of the Census and in accordance with 
        any other applicable provision of law.
            (3) Penalties.--Any individual who knowingly accesses or 
        discloses personally identifiable information in violation of 
        this section shall be guilty of a felony and upon conviction 
        thereof shall be fined in an amount of not more than $300,000 
        under title 18, United States Code, or imprisoned for not more 
        than five years, or both.
    (d) State Reporting of Federal Data.--Beginning with the first full 
calendar year that begins after the date of enactment of this Act, with 
respect to any Federal benefit that is administered at the State level 
by a State administering agency, such State administering agency shall 
submit each year to the Federal administering agency responsible for 
administering the benefit at the Federal level a report that identifies 
each resource unit that received such benefits during such year by the 
personally identifiable information of the head of the resource unit 
and the amount, or cash equivalent, of such benefit received by such 
resource unit.

SEC. 102. COMMISSION ON VALUATION OF GOVERNMENT BENEFITS.

    (a) Establishment.--There is established within the United States 
Census Bureau a commission, to be known as the ``Commission on 
Valuation of Federal Benefits'' (referred to in this section as the 
``Commission'').
    (b) Composition.--
            (1) In general.--The Commission shall be composed of 8 
        members, of whom--
                    (A) 2 members shall be appointed by the majority 
                leader of the Senate;
                    (B) 2 members shall be appointed by the minority 
                leader of the Senate;
                    (C) 2 members shall be appointed by the Speaker of 
                the House of Representatives; and
                    (D) 2 members shall be appointed by the minority 
                leader of the House of Representatives.
            (2) Co-chairs.--Of the members of the Commission--
                    (A) 1 co-chair shall be designated by the majority 
                leader of the Senate; and
                    (B) 1 co-chair shall be designated by the Speaker 
                of the House of Representatives.
            (3) Qualifications.--Each member appointed to the 
        Commission shall have experience in--
                    (A) quantitative policy research; and
                    (B) welfare or poverty studies.
    (c) Initial Meeting.--Not later than 60 days after the date on 
which the last member is appointed under subsection (b), the Commission 
shall hold an initial meeting.
    (d) Quorum.--Six members of the Commission shall constitute a 
quorum.
    (e) No Proxy Voting.--Proxy voting by members of the Commission 
shall be prohibited.
    (f) Staff.--The Director of the Census Bureau shall appoint an 
executive director of the Commission.
    (g) Travel Expenses.--Members of the Commission shall serve without 
pay, but shall receive travel expenses in accordance with sections 5702 
and 5703 of title 5, United States Code.
    (h) Duties of Commission.--
            (1) Recommendations.--
                    (A) In general.--The Commission shall produce 
                recommendations for the valuation of Federal benefits 
                listed under section 101(a)(1) for the purpose of 
                United States Census Bureau estimates of the Federal 
                Poverty Level, including non-cash benefits.
            (2) Report.--
                    (A) In general.--Not later than 270 days after the 
                date of enactment of this Act, the Commission shall 
                submit to Congress a report of the recommendations 
                required under paragraph (1), including a detailed 
                statement of methodology and reasoning behind 
                recommendations.
                    (B) Public availability.--The report required by 
                subparagraph (A) shall be made available on an internet 
                website of the United States Government that is 
                available to the public.
    (i) Powers of Commission.--On request by the executive director of 
the Commission, the head of a Federal agency shall furnish information 
to the Commission.
    (j) Termination of Commission.--The Commission shall terminate 90 
days after the date on which the Commission submits the report under 
subsection (h)(2).
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated $1,000,000 to carry out this section.

SEC. 103. GAO REPORTS ON EFFECT OF SUPPLEMENTARY DATA ON CALCULATION OF 
              POVERTY RATES AND RELATED MEASURES.

    Not later than January 1, 2028, and every 2 years thereafter, the 
Comptroller General of the United States shall submit to Congress a 
report that compares the poverty rates and related measures calculated 
under the Annual Social and Economic Supplement to the Current 
Population Survey with the poverty rates and related measures 
calculated using the data collected under section 101(b)(1).

SEC. 104. RULE OF CONSTRUCTION.

     Nothing in this title shall be construed to affect the eligibility 
of an individual or household for a Federal benefit.

  TITLE II--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

SEC. 201. WORK REQUIREMENTS.

    (a) Declaration of Policy.--Section 2 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011) is amended by adding at the end the following: 
``Congress further finds that it should also be the purpose of the 
supplemental nutrition assistance program to increase employment, to 
encourage healthy marriage, and to promote prosperous self-sufficiency, 
which means the ability of households to maintain an income above the 
poverty level without services and benefits from the Federal 
Government.''.
    (b) Definition of Food.--Section 3(k) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2012(k)) is amended by striking ``means (1)'' and 
inserting ``means the following foods, food products, meals, and other 
items, only if the food, food product, meal, or other item is 
essential, as determined by the Secretary: (1)''.
    (c) General Work Requirements.--Section 6(d)(1)(A) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(d)(1)(A)) is amended, in the 
matter preceding clause (i), by striking ``60'' and inserting ``65''.
    (d) Hour-Based Work Requirement.--Section 6(o) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended--
            (1) in paragraph (1)(C), by striking ``other than a 
        supervised job search program or job search training program'' 
        and inserting ``including an in-person supervised job search 
        program'';
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``50'' and 
                inserting ``64'';
                    (B) by striking subparagraph (C); and
                    (C) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively;
            (3) in paragraph (4)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``area'' and inserting ``county or county equivalent'';
                    (B) in clause (i), by striking ``or'' and inserting 
                ``and''; and
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) is not located within a labor market 
                        area, as determined by data published by the 
                        Bureau of Labor Statistics, that has an 
                        unemployment rate of over 10 percent.'';
            (4) in paragraph (6)(D), by striking ``15 percent'' and 
        inserting ``5 percent'';
            (5) by redesignating paragraph (7) as paragraph (8);
            (6) by inserting after paragraph (6) the following:
            ``(7) Work or work preparation hours requirement for 
        married couples with children.--The total combined number of 
        hours of work or work preparation activities under 
        subparagraphs (A), (B), and (C) of paragraph (2) for both 
        spouses in a married couple household with 1 or more children 
        over the age of 6 shall not be greater than the total number of 
        hours required under those subparagraphs for a single head of 
        household.''; and
            (7) by inserting after paragraph (8) (as so redesignated) 
        the following:
            ``(9) Minimum wage rule.--The limitation under subsection 
        (d)(4)(F)(i) shall not apply to any work requirement, program, 
        or activity required under this subsection.''.

SEC. 202. EMPLOYMENT AND TRAINING PROGRAM OUTCOMES REPORTING.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to Congress a report, using data 
from the most recent 5 fiscal years available, detailing the outcomes 
of beneficiaries of the supplemental nutrition assistance program 
established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
seq.) (referred to in this section as ``SNAP'') who participate in 
employment and training programs (as defined in section 6(d)(4)(B) of 
that Act (7 U.S.C. 2015(d)(4)(B))) for each of those 5 years that 
includes the following information:
            (1) The number and percentage of SNAP beneficiaries in each 
        State who participated in an employment and training program 
        compared to the number and percentage of SNAP beneficiaries in 
        each State who did not participate in an employment and 
        training program.
            (2) The number and percentage of SNAP beneficiaries in each 
        State who obtained a job while participating in an employment 
        and training program compared to the number and percentage of 
        SNAP beneficiaries in each State who obtained a job but did not 
        participate in an employment and training program.
            (3) The number and percentage of SNAP beneficiaries in each 
        State who retained a job for 6 months, 1 year, and 5 years 
        after completing an employment and training program and 
        obtaining a job compared to the number and percentage of SNAP 
        beneficiaries in each State who retained a job for 6 months, 1 
        year, and 5 years but did not complete an employment and 
        training program prior to obtaining that job.
            (4) The increase or decrease in wages, if applicable, for 
        SNAP beneficiaries in each State who retained a job for 6 
        months, 1 year, and 5 years after completing an employment and 
        training program and obtaining a job compared to the increase 
        or decrease in wages, if applicable, for SNAP beneficiaries in 
        each State who retained a job for 6 months, 1 year, and 5 years 
        but did not complete an employment and training program prior 
        to obtaining that job.
            (5) The number and percentage of SNAP beneficiaries who--
                    (A) previously participated in an employment and 
                training program;
                    (B) after that participation, obtained a job or 
                stopped receiving SNAP benefits; and
                    (C) after regaining eligibility for SNAP benefits, 
                reentered an employment or training program.
            (6) The average duration that SNAP beneficiaries in each 
        State participated in an employment and training program.
            (7) A breakdown of--
                    (A) the types of employment and training activities 
                offered by the employment and training program of each 
                State; and
                    (B) the types of jobs that States are preparing 
                employment and training program participants to obtain.

SEC. 203. STATE MATCHING FUNDS.

    Section 4 of the Food and Nutrition Act of 2008 (7 U.S.C. 2013) is 
amended by adding at the end the following:
    ``(d) State Matching Funds.--
            ``(1) In general.--Each State that participates in the 
        supplemental nutrition assistance program shall, as a condition 
        of participation, be required to contribute matching funds in 
        an amount equal to, of the funds received from the Secretary by 
        the State for program administration--
                    ``(A) for fiscal year 2023, 10 percent;
                    ``(B) for fiscal year 2024, 15 percent;
                    ``(C) for fiscal year 2025, 20 percent;
                    ``(D) for fiscal year 2026, 25 percent;
                    ``(E) for fiscal year 2027, 30 percent;
                    ``(F) for fiscal year 2028, 35 percent;
                    ``(G) for fiscal year 2029, 40 percent;
                    ``(H) for fiscal year 2030, 45 percent; and
                    ``(I) for fiscal year 2031 and each fiscal year 
                thereafter, 50 percent.
            ``(2) Additional contributions permitted.--Nothing in this 
        subsection prevents a State from contributing matching funds in 
        an amount greater than the amount required under paragraph (1) 
        for the applicable fiscal year.''.

SEC. 204. ELIGIBILITY.

    Section 5(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(a)) is amended--
            (1) in the second sentence, by inserting ``that are limited 
        to families whose income and resources satisfy financial need 
        criteria established in accordance with subsections (c) and (g) 
        by the State for receipt of the benefits'' after ``(42 U.S.C. 
        601 et seq.)''; and
            (2) by inserting after the second sentence the following: 
        ``To be deemed eligible for participation in the supplemental 
        nutrition assistance program under this subsection, a household 
        shall receive a cash or noncash means-tested public benefit for 
        at least 6 consecutive months valued at not less than $50.''.

SEC. 205. COMPLIANCE WITH FRAUD INVESTIGATIONS.

    Section 6(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(d)) is amended by adding at the end the following:
            ``(5) Compliance with fraud investigations.--To be eligible 
        to participate in the supplemental nutrition assistance 
        program, an individual shall cooperate with any investigation 
        into fraud under that program, including full participation in 
        any--
                    ``(A) meeting requested by fraud investigators; and
                    ``(B) administrative hearing.''.

SEC. 206. AUTHORIZED USERS OF ELECTRONIC BENEFIT TRANSFER CARDS.

    Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended by adding at the end the following:
            ``(15) Authorized users.--
                    ``(A) In general.--A State agency shall register--
                            ``(i) at least 1 member of a household 
                        issued an EBT card as an authorized user of the 
                        card; and
                            ``(ii) an authorized representative of a 
                        household as an authorized user of the EBT card 
                        issued to the household.
                    ``(B) Limit.--Not more than 5 individuals shall be 
                registered as authorized users, including the 
                authorized representative of a household, on an EBT 
                card.
                    ``(C) Unauthorized use.--
                            ``(i) In general.--An EBT card shall not be 
                        used by any individual who is not an authorized 
                        user of the EBT card.
                            ``(ii) 2 unauthorized uses.--If an EBT card 
                        has been used 2 times by an unauthorized user 
                        of the EBT card, the head of the household to 
                        which the EBT card is issued shall be required 
                        to review program rights and responsibilities 
                        with personnel of the State agency.
                            ``(iii) 4 unauthorized uses.--If an EBT 
                        card has been used 4 times by an unauthorized 
                        user of the EBT card, the State agency shall 
                        suspend benefits for the household to which the 
                        EBT card is issued for 1 month.
                            ``(iv) 6 unauthorized uses.--If an EBT card 
                        has been used 6 times by an unauthorized user 
                        of the EBT card, the State agency shall suspend 
                        benefits for the household to which the EBT 
                        card is issued for 3 months.
                            ``(v) 7 or more unauthorized uses.--If an 
                        EBT card has been used 7 or more times by an 
                        unauthorized user of the EBT card, the State 
                        agency shall suspend benefits for the household 
                        to which the EBT card is issued for 1 month per 
                        unauthorized use.
                            ``(vi) Administration.--Any action taken 
                        under clauses (ii) through (v) shall be 
                        consistent with sections 6(b) and 11(e)(10), as 
                        applicable.''.

SEC. 207. REAUTHORIZATION OF MEDIUM- OR HIGH-RISK RETAIL FOOD STORES 
              AND WHOLESALE FOOD CONCERNS.

    Section 9(a)(2)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2018(a)(2)(A)) is amended by striking ``; and'' and inserting ``, 
which, in the case of a retail food store or wholesale food concern for 
which there is a medium risk or high risk of fraudulent transactions, 
as determined by the fraud detection system of the Food and Nutrition 
Service, shall be annually; and''.

SEC. 208. STATE ACTIVITY REPORTS.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is 
amended by adding at the end the following:
    ``(y) State Activity Reports.--The Secretary shall publish for each 
fiscal year a report describing the activity of each State in the 
supplemental nutrition assistance program, which shall contain, for the 
applicable fiscal year, substantially the same information as is 
contained in the report published by the Food and Nutrition Service 
entitled `Supplemental Nutrition Assistance Program State Activity 
Report Fiscal Year 2016' and published September 2017.''.

SEC. 209. DISQUALIFICATION BY STATE AGENCY.

    Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is 
amended by adding at the end the following:
    ``(j) Disqualification by State Agency.--
            ``(1) In general.--Except as provided in paragraph (4), a 
        State agency shall permanently disqualify from participation in 
        the supplemental nutrition assistance program an approved 
        retail food store or wholesale food concern convicted of--
                    ``(A) trafficking in food instruments (including 
                any voucher, draft, check, or access device (including 
                an electronic benefit transfer card or personal 
                identification number) issued in lieu of a food 
                instrument under this Act); or
                    ``(B) selling firearms, ammunition, explosives, or 
                controlled substances (as defined in section 102 of the 
                Controlled Substances Act (21 U.S.C. 802)) in exchange 
                for food instruments (including any item described in 
                subparagraph (A) issued in lieu of a food instrument 
                under this Act).
            ``(2) Notice of disqualification.--The State agency shall--
                    ``(A) provide the approved retail food store or 
                wholesale food concern with notification of the 
                disqualification; and
                    ``(B) make the disqualification effective on the 
                date of receipt of the notice of disqualification.
            ``(3) Prohibition of receipt of lost revenues.--A retail 
        food store or wholesale food concern shall not be entitled to 
        receive any compensation for revenues lost as a result of 
        disqualification under this subsection.
            ``(4) Exceptions in lieu of disqualification.--
                    ``(A) In general.--A State agency may permit a 
                retail food store or wholesale food concern that, but 
                for this paragraph, would be disqualified under 
                paragraph (1), to continue to participate in the 
                supplemental nutrition assistance program if the State 
                agency determines, in its sole discretion, that--
                            ``(i) disqualification of the retail food 
                        store or wholesale food concern, as applicable, 
                        would cause hardship to participants in the 
                        supplemental nutrition assistance program; or
                            ``(ii)(I) the retail food store or 
                        wholesale food concern had, at the time of the 
                        violation under paragraph (1), an effective 
                        policy and program in effect to prevent 
                        violations described in paragraph (1); and
                            ``(II) the ownership of the retail food 
                        store or wholesale food concern was not aware 
                        of, did not approve of, and was not involved in 
                        the conduct of the violation.
                    ``(B) Civil penalty.--If a State agency under 
                subparagraph (A) permits a retail food store or 
                wholesale food concern to continue to participate in 
                the supplemental nutrition assistance program in lieu 
                of disqualification, the State agency shall assess a 
                civil penalty in an amount determined by the State 
                agency, except that--
                            ``(i) the amount of the civil penalty shall 
                        not exceed $10,000 for each violation; and
                            ``(ii) the amount of civil penalties 
                        imposed for violations investigated as part of 
                        a single investigation may not exceed $40,000.
                    ``(C) Reporting.--
                            ``(i) To the secretary.--If a State agency 
                        under subparagraph (A) permits a retail food 
                        store or wholesale food concern to continue to 
                        participate in the supplemental nutrition 
                        assistance program in lieu of disqualification, 
                        the State agency shall annually submit to the 
                        Secretary a report describing the justification 
                        of the State agency for that action.
                            ``(ii) To congress.--The Secretary shall 
                        annually submit to Congress a report compiling 
                        the information contained in reports submitted 
                        to the Secretary under clause (i).''.

SEC. 210. RETENTION OF RECAPTURED FUNDS BY STATES.

    Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(a)) is amended--
            (1) in the second sentence, by striking ``The officials'' 
        and inserting the following:
            ``(3) Prohibition.--The officials'';
            (2) in the first sentence--
                    (A) by redesignating paragraphs (1) through (9) as 
                subparagraphs (A) through (I), respectively; and
                    (B) by striking ``section 17(n): Provided, That the 
                Secretary'' and inserting the following: ``section 
                17(n).
            ``(2) Administration on indian reservations and in native 
        villages.--
                    ``(A) In general.--The Secretary'';
            (3) in paragraph (2) (as so designated)--
                    (A) in subparagraph (A), by striking ``35 percent'' 
                and inserting ``50 percent''; and
                    (B) by adding at the end the following:
                    ``(B) Use of retained amounts for fraud 
                investigations.--The value of funds or allotments 
                recovered or collected pursuant to sections 6(b) and 
                13(c) that are retained by a State under subparagraph 
                (A) in excess of 35 percent shall be used by the State 
                for investigations of fraud in the supplemental 
                nutrition assistance program.''; and
            (4) by striking the subsection designation and all that 
        follows through ``Subject to'' in the matter preceding 
        paragraph (2) (as so designated) and inserting the following:
    ``(a) Administrative Cost-Sharing.--
            ``(1) In general.--Subject to''.
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