730
‘‘(2) subject to subsection (f), benefits under
the Program shall be determined under rules and
procedures established by the State under—
‘‘(A) a State program funded under part A
of title IV of the Social Security Act (42 U.S.C.
601 et seq.);
‘‘(B) the food stamp program (other than
section 25); or
‘‘(C) a combination of a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and the
food stamp program (other than section 25).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not
operate a Program unless the Secretary approves a
State plan for the operation of the Program under
paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall
approve any State plan to carry out a Program if
the Secretary determines that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation
that the plan will not increase Federal costs for
any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
731
‘‘(1) DETERMINATION.—During each fiscal
year and not later than 90 days after the end of
each fiscal year, the Secretary shall determine
whether a Program being carried out by a State
agency is increasing Federal costs under this Act
above the Federal costs incurred under the food
stamp program in operation in the State or political
sub- division of the State for the fiscal year prior
to the implementation of the Program, adjusted for
any changes in—
‘‘(A) participation;
‘‘(B) the income of participants in the food
stamp program that is not attributable to pub-
lic assistance; and
‘‘(C) the thrifty food plan under section
3(o).
‘‘(2) NOTIFICATION.—If the Secretary deter-
mines that the Program has increased Federal costs
under this Act for any fiscal year or any portion of
any fiscal year, the Secretary shall notify the State
not later than 30 days after the Secretary makes the
determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE
ACTION.—Not later
than 90 days after the date of a notification
732
under paragraph (2), the State shall submit a
plan for approval by the Secretary for prompt
corrective action that is designed to prevent the
Program from increasing Federal costs under
this Act.
‘‘(B) TERMINATION.—If the State does not
submit a plan under subparagraph (A) or carry
out a plan approved by the Secretary, the Sec-
retary shall terminate the approval of the State
agency operating the Program and the State
agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a
State or political subdivision of a State may follow
the rules and procedures established by the State or
political subdivision under a State program funded
under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) or under the food stamp
program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operat-
ing a Program, a State or political subdivision of a
State may standardize the deductions provided
under section 5(e). In developing the standardized
deduction, the State shall consider the work ex-
733
penses, dependent care costs, and shelter costs of
participating households.
‘‘(3) REQUIREMENTS.—In operating a Pro-
gram, a State or political subdivision shall comply
with the requirements of—
‘‘(A) subsections (a) through (g) of section
7;
‘‘(B) section 8(a) (except that the income
of a household may be determined under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of
section 11;
‘‘(E) paragraphs (8), (12), (16), (18),
(20), (24), and (25) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable
requirement established by the State under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—Notwith-
standing any other provision of this section, a house-
734
hold may not receive benefits under this section as
a result of the eligibility of the household under a
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), unless
the Secretary determines that any household with in-
come above 130 percent of the poverty guidelines is
not eligible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)), as amended by sections 1028(b)
and 1044, is further amended by adding at the end the
following:
‘‘(25) if a State elects to carry out a Simplified
Food Stamp Program under section 26, the plans of
the State agency for operating the program, includ-
ing—
‘‘(A) the rules and procedures to be fol-
lowed by the State agency to determine food
stamp benefits;
‘‘(B) how the State agency will address the
needs of households that experience high shelter
costs in relation to the incomes of the house-
holds; and
‘‘(C) a description of the method by which
the State agency will carry out a quality control
system under section 16(c).’’.
735
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Act (7 U.S.C. 2017), as
amended by section 1039, is further amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is
amended—
(A) by striking subsection (i); and
(B) 
by 
redesignating 
subsections 
(j)
through (l) as subsections (i) through (k), re-
spectively.
SEC. 1064. STATE FOOD ASSISTANCE BLOCK GRANT.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.), as amended by section 1064, is fur-
ther amended by adding at the end the following:
‘‘SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food as-
sistance’ means assistance that may be used only to
obtain food, as defined in section 3(g).
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, Guam, and
the Virgin Islands of the United States.
736
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish a program to make grants to States in accordance
with this section to provide—
‘‘(1) food assistance to needy individuals and
families residing in the State; and
‘‘(2) funds for administrative costs incurred in
providing the assistance.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—A State may annually elect
to participate in the program established under sub-
section (b) if the State—
‘‘(A) has fully implemented an electronic
benefit transfer system that operates in the en-
tire State;
‘‘(B) has a payment error rate under sec-
tion 16(c) that is not more than 6 percent as
announced most recently by the Secretary; or
‘‘(C) has a payment error rate in excess of
6 percent and agrees to contribute non-Federal
funds for the fiscal year of the grant, for bene-
fits and administration of the State’s food as-
sistance program, the amount determined under
paragraph (2).
‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
737
‘‘(A) IN GENERAL.—In the case of a State
that elects to participate in the program under
paragraph (1)(C), the State shall agree to con-
tribute, for a fiscal year, an amount equal to—
‘‘(A)(i) the benefits issued in the State;
multiplied by
‘‘(ii) the payment error rate of the State;
minus
‘‘(B)(i) the benefits issued in the State;
multiplied by
‘‘(ii) 6 percent.
‘‘(B) DETERMINATION.—Notwithstanding
sections 13 and 14, the calculation of the con-
tribution shall be based solely on the determina-
tion of the Secretary of the payment error rate.
‘‘(C) DATA.—For purposes of implement-
ing subparagraph (A) for a fiscal year, the Sec-
retary shall use the data for the most recent
fiscal year available.
‘‘(3) ELECTION LIMITATION.—
‘‘(A) RE-ENTERING
FOOD
STAMP
PRO-
GRAM.—A State that elects to participate in the
program under paragraph (1) may in a subse-
quent year decline to elect to participate in the
program and instead participate in the food
738
stamp program in accordance with the other
sections of this Act.
‘‘(B) LIMITATION.—Subsequent to re-en-
tering the food stamp program under subpara-
graph (A), the State shall only be eligible to
participate in the food stamp program in ac-
cordance with the other sections of this Act and
shall not be eligible to elect to participate in the
program established under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is par-
ticipating in the program established under sub-
section (b) shall not be subject to, or receive
any benefit under, this Act except as provided
in this section.
‘‘(B) CONTRACT WITH FEDERAL GOVERN-
MENT.—Nothing in this section shall prohibit a
State from contracting with the Federal Gov-
ernment for the provision of services or mate-
rials necessary to carry out a program under
this section.
‘‘(d) LEAD AGENCY.—A State desiring to receive a
grant under this section shall designate, in an application
submitted to the Secretary under subsection (e)(1), an ap-
739
propriate State agency responsible for the administration
of the program under this section as the lead agency.
‘‘(e) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive
assistance under this section, a State shall prepare
and submit to the Secretary an application at such
time, in such manner, and containing such informa-
tion as the Secretary shall by regulation require, in-
cluding—
‘‘(A) an assurance that the State will com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (3); and
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (3).
‘‘(2) ANNUAL PLAN.—The State plan contained
in the application under paragraph (1) shall be sub-
mitted for approval annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall
identify the lead agency.
‘‘(B) USE OF BLOCK GRANT FUNDS.—The
State plan shall provide that the State shall use
740
the amounts provided to the State for each fis-
cal year under this section—
‘‘(i) to provide food assistance to
needy individuals and families residing in
the State, other than residents of institu-
tions who are ineligible for food stamps
under section 3(i); and
‘‘(ii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) GROUPS
SERVED.—The State plan
shall describe how and to what extent the pro-
gram will serve specific groups of individuals
and families and how the treatment will differ
from treatment under the food stamp program
under the other sections of this Act of the indi-
viduals and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) migrants or seasonal farm-
workers;
‘‘(iii) homeless individuals and fami-
lies;
‘‘(iv) individuals and families who live
in institutions eligible under section 3(i);
‘‘(v) individuals and families with
earnings; and
741
‘‘(vi) members of Indian tribes or trib-
al organizations.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—
The State plan shall provide that benefits under
this section shall be available throughout the
entire State.
‘‘(E) NOTICE AND HEARINGS.—The State
plan shall provide that an individual or family
who applies for, or receives, assistance under
this section shall be provided with notice of, and
an opportunity for a hearing on, any action
under this section that adversely affects the in-
dividual or family.
‘‘(F) ASSESSMENT OF NEEDS.—The State
plan shall assess the food and nutrition needs
of needy persons residing in the State.
‘‘(G) ELIGIBILITY STANDARDS.—The State
plan shall describe the income, resource, and
other eligibility standards that are established
for the receipt of assistance under this section.
‘‘(H) DISQUALIFICATION OF FLEEING FEL-
ONS.—The State plan shall provide for the dis-
qualification of any individual who would be
disqualified from participating in the food
stamp program under section 6(k).
742
‘‘(I) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall estab-
lish a system for the exchange of information
with other States to verify the identity and re-
ceipt of benefits by recipients.
‘‘(J) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use
and disclosure of information about any individ-
ual or family receiving assistance under this
section.
‘‘(K) OTHER
INFORMATION.—The State
plan shall contain such other information as
may be required by the Secretary.
‘‘(4) APPROVAL OF APPLICATION AND PLAN.—
The Secretary shall approve an application and
State plan that satisfies the requirements of this
section.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO
ASSISTANCE.—Nothing in this section—
‘‘(1) entitles any individual or family to assist-
ance under this section; or
‘‘(2) limits the right of a State to impose addi-
tional limitations or conditions on assistance under
this section.
‘‘(g) BENEFITS FOR ALIENS.—
743
‘‘(1) ELIGIBILITY.—No individual who is an
alien shall be eligible to receive benefits under a
State plan approved under subsection (e)(4) if the
individual is not eligible to participate in the food
stamp program due to the alien status of the indi-
vidual.
‘‘(2) INCOME.—The State plan shall provide
that the income of an alien shall be determined in
accordance with section 5(i).
‘‘(h) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK REQUIREMENTS.—No individual or
household shall be eligible to receive benefits under
a State plan funded under this section if the individ-
ual or household is not eligible to participate in the
food stamp program under subsection (d) or (o) of
section 6.
‘‘(2) WORK PROGRAMS.—Each State shall im-
plement an employment and training program in ac-
cordance with the terms and conditions of section
6(d)(4) for individuals under the program and shall
be eligible to receive funding under section 16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor
744
State compliance with this section and the State
plan approved under subsection (e)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after
reasonable notice to a State and opportunity for
a hearing, finds that—
‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (e)(4); or
‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section;
the Secretary shall notify the State of the find-
ing and that no further grants will be made to
the State under this section (or, in the case of
noncompliance in the operation of a program or
activity, that no further grants to the State will
be made with respect to the program or activ-
ity) until the Secretary is satisfied that there is
no longer any failure to comply or that the non-
compliance will be promptly corrected.
745
‘‘(B) OTHER PENALTIES.—In the case of a
finding of noncompliance made pursuant to
subparagraph (A), the Secretary may, in addi-
tion to, or in lieu of, imposing the penalties de-
scribed in subparagraph (A), impose other ap-
propriate penalties, including recoupment of
money improperly expended for purposes pro-
hibited or not authorized by this section and
disqualification from the receipt of financial as-
sistance under this section.
‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional penalty being imposed
under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and determin-
ing the validity of complaints made to the Sec-
retary concerning any failure of a State to com-
ply with the State plan or any requirement of
this section; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the
Secretary shall pay to a State that has an applica-
746
tion approved by the Secretary under subsection
(e)(4) an amount that is equal to the grant of the
State under subsection (m) for the fiscal year.
‘‘(2) METHOD OF GRANT.—The Secretary shall
make a grant to a State for a fiscal year under this
section by issuing 1 or more letters of credit for the
fiscal year, with necessary adjustments on account
of overpayments or underpayments, as determined
by the Secretary.
‘‘(3) SPENDING OF GRANTS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a grant to a State deter-
mined under subsection (m)(1) for a fiscal year
may be expended by the State only in the fiscal
year.
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of a grant determined under
subsection (m)(1) for a fiscal year to provide
assistance under this section in subsequent fis-
cal years, except that the reserved funds may
not exceed 30 percent of the total grant re-
ceived under this section for a fiscal year.
‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, not more than
6 percent of the Federal and State funds required
747
to be expended by a State under this section shall
be used for administrative expenses.
‘‘(5) PROVISION
OF
FOOD
ASSISTANCE.—A
State may provide food assistance under this section
in any manner determined appropriate by the State,
such as electronic benefit transfer limited to food
purchases, coupons limited to food purchases, or di-
rect provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating
in the program established under this section shall main-
tain a system in accordance with, and shall be subject to
section 16(c), including sanctions and eligibility for incen-
tive payment under section 16(c), adjusted for State spe-
cific characteristics under regulations issued by the Sec-
retary.
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN
GENERAL.—The Secretary shall not
provide financial assistance for any program,
project, or activity under this section if any person
with responsibilities for the operation of the pro-
gram, project, or activity discriminates with respect
to the program, project, or activity because of race,
religion, color, national origin, sex, or disability.
‘‘(2) ENFORCEMENT.—The powers, remedies,
and procedures set forth in title VI of the Civil
748
Rights Act of 1964 (42 U.S.C. 2000d et seq.) may
be used by the Secretary to enforce paragraph (1).
‘‘(m) GRANT CALCULATION.—
‘‘(1) STATE GRANT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 for each fiscal year,
the Secretary shall provide a grant to each
State participating in the program established
under this section an amount that is equal to
the sum of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(I) the total dollar value of all
benefits issued under the food stamp
program established under this Act by
the State during fiscal year 1994; or
‘‘(II) the average per fiscal year
of the total dollar value of all benefits
issued under the food stamp program
by the State during each of fiscal
years 1992 through 1994; and
‘‘(ii) the greater of, as determined by
the Secretary—
749
‘‘(I) the total amount received by
the State for administrative costs
under section 16(a) (not including any
adjustment under section 16(c)) for
fiscal year 1994; or
‘‘(II) the average per fiscal year
of the total amount received by the
State for administrative costs under
section 16(a) (not including any ad-
justment under section 16(c)) for each
of fiscal years 1992 through 1994.
‘‘(B) INSUFFICIENT FUNDS.—If the Sec-
retary finds that the total amount of grants to
which States would otherwise be entitled for a
fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available
to provide the grants for the fiscal year, the
Secretary shall reduce the grants made to
States under this subsection, on a pro rata
basis, to the extent necessary.
‘‘(2) REDUCTION.—The Secretary shall reduce
the grant of a State by the amount a State has
agreed to contribute under subsection (c)(1)(C).’’.
(b) EMPLOYMENT AND TRAINING FUNDING.—Sec-
tion 16(h) of the Act (7 U.S.C. 2025(a)), as amended by
750
section 1027(d)(2), is further amended by adding at the
end the following:
‘‘(6) BLOCK GRANT STATES.—Each State elect-
ing to operate a program under section 27 shall—
‘‘(A) receive the greater of—
‘‘(i) the total dollar value of the funds
received under paragraph (1) by the State
during fiscal year 1994; or
‘‘(ii) the average per fiscal year of the
total dollar value of all funds received
under paragraph (1) by the State during
each of fiscal years 1992 through 1994;
and
‘‘(B) be eligible to receive funds under
paragraph (2), within the limitations in section
6(d)(4)(K).’’.
(c) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—Section 17 of the Act (7 U.S.C.
2026), as amended by section 1064(c)(2), is further
amended by adding at the end the following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—The Secretary may conduct re-
search on the effects and costs of a State program carried
out under section 27.’’.
751
Subtitle B—Commodity
Distribution Programs
SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term
‘additional commodities’ means commodities made
available under section 214 in addition to the com-
modities made available under sections 202 and
203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM-
PLOYED
PERSONS.—The term ‘average monthly
number of unemployed persons’ means the average
monthly 
number 
of 
unemployed
persons in each State in the most recent fiscal year
for which information concerning the number of un-
employed persons is available, as determined by the
Bureau of Labor Statistics of the Department of
Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or non-
profit organization—
752
‘‘(A) that administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (including
a hospital and a retirement home, but ex-
cluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutri-
tion site and a project that provides home-
delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the ap-
propriate State agency, or by the Secretary;
and
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY
FEEDING
ORGANIZATION.—
The term ‘emergency feeding organization’ means a
753
public or nonprofit organization that administers ac-
tivities and projects (including the activities and
projects of a charitable institution, a food bank, a
food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recip-
ient agency) providing nutrition assistance to relieve
situations of emergency and distress through the
provision of food to needy persons, including low-in-
come and unemployed persons.
‘‘(5) FOOD
BANK.—The term ‘food bank’
means a public or charitable institution that main-
tains an established operation involving the provision
of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feed-
ing centers that, as an integral part of their normal
activities, provide meals or food to feed needy per-
sons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’
means a public or private nonprofit organization
that distributes food to low-income and unemployed
households, including food from sources other than
the Department of Agriculture, to relieve situations
of emergency and distress.
754
‘‘(7) POVERTY LINE.—The term ‘poverty line’
has the same meaning given the term in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as an
integral part of the normal activities of the institu-
tion, maintains an established feeding operation to
provide food to needy homeless persons on a regular
basis.
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional com-
modities made available under section 214 that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).
‘‘(10) VALUE
OF
ADDITIONAL
COMMODITIES
ALLOCATED TO EACH STATE.—The term ‘value of
additional commodities allocated to each State’
means the actual cost of additional commodities
made available under section 214 and allocated to
each State that are paid by the Secretary (including
the distribution and processing costs incurred by the
Secretary).’’.
756
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall
encourage each State receiving commodities under this Act
to establish a State advisory board consisting of represent-
atives of all interested entities, both public and private,
in the distribution of commodities received under this Act
in the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE FUNDS.—Section 204(a)(1) of the Act (7
U.S.C. 612c note) is amended—
(1) in the first sentence by striking ‘‘for State
and local’’ and all that follows through ‘‘under this
title’’ and inserting ‘‘to pay for the direct and indi-
rect administrative costs of the State related to the
processing, transporting, and distributing to eligible
recipient agencies of commodities provided by the
Secretary under this Act and commodities secured
from other sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the
Act (7 U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i)
as subsections (a) through (d), respectively;
757
(3) in subsection (b), as redesignated by para-
graph (2)—
(A) in the first sentence, by striking ‘‘sub-
section (f) or subsection (j) if applicable,’’ and
inserting ‘‘subsection (a)’’; and
(B) in the second sentence, by striking
‘‘subsection (f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated
by paragraph (2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made avail-
able for each fiscal year under this section shall be
delivered at reasonable intervals to States based on
the grants calculated under subsection (a), or reallo-
cated under subsection (b), before December 31 of
the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities
determined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (2), by striking ‘‘or reduce’’ and all that fol-
lows through ‘‘each fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C.
612c note) is amended—
758
(1) in the first sentence of section 203B(a), by
striking ‘‘203 and 203A of this Act’’ and inserting
‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by
striking ‘‘(except as otherwise provided for in section
214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c
note) is repealed.
(g) AVAILABILITY
OF COMMODITIES UNDER
THE
FOOD STAMP PROGRAM.—The Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.), as amended by section 1067, is
further amended by adding at the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts
appropriated under this Act, for each of fiscal years 1997
through 2002, the Secretary shall purchase $300,000,000
of a variety of nutritious and useful commodities of the
types that the Secretary has the authority to acquire
through the Commodity Credit Corporation or under sec-
tion 32 of the Act entitled ‘An Act to amend the Agricul-
759
tural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the com-
modities to States for distribution in accordance with sec-
tion 214 of the Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur-
chasing commodities under subsection (a), the Secretary
shall, to the extent practicable and appropriate, make pur-
chases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and dis-
tributing agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by
subsection (d) shall become effective on October 1, 1996.
SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 1073. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
760
SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
TITLE XI—MISCELLANEOUS
SEC. 1101. EXPENDITURE OF FEDERAL FUNDS IN ACCORD-
ANCE WITH LAWS AND PROCEDURES APPLI-
CABLE TO EXPENDITURE OF STATE FUNDS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, any funds received by a State under the provi-
sions of law specified in subsection (b) shall be expended
only in accordance with the laws and procedures applicable
to expenditures of the State’s own revenues, including ap-
propriation by the State legislature, consistent with the
terms and conditions required under such provisions of
law.
(b) PROVISIONS
OF LAW.—The provisions of law
specified in this subsection are the following:
(1) Part A of title IV of the Social Security Act
(relating to block grants for temporary assistance
for needy families).
(2) Section 25 of the Food Stamp Act of 1977
(relating to the optional State food assistance block
grant).
884
‘‘(1) QUARTERLY ESTIMATES.—Prior to the be-
ginning of each quarter, the Secretary shall estimate
the amount to which a State will be entitled under
subsection (a) for such quarter, such estimates to be
based on (A) a report filed by the State containing
its estimate of the total sum to be expended in such
quarter in accordance with the provisions of such
subsections, and stating the amount appropriated or
made available by the State and its political subdivi-
sions for such expenditures in such quarter, and if
such amount is less than the State’s proportionate
share of the total sum of such estimated expendi-
tures, the source or sources from which the dif-
ference is expected to be derived, and (B) such other
investigation as the Secretary may find necessary.
‘‘(2) PAYMENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
then pay to the State, in such installments as
the Secretary may determine and in accordance
with section 6503(a) of title 31, United States
Code, the amount so estimated, reduced or in-
creased to the extent of any overpayment or
underpayment which the Secretary determines
was made under this section (or section 1903)
to such State for any prior quarter and with
932
mination. The hearing shall be held not less than
20 days nor more than 60 days after the date notice
of the hearing is furnished to the State, unless the
Secretary and the State agree in writing to holding
the hearing at another time. The Secretary shall af-
firm, modify, or reverse the original determination
within 60 days of the conclusion of the hearing.
‘‘(2) ADMINISTRATIVE
HEARING.—Within 30
days after the date of receipt of a request under
subsection (d)(2)(B), an administrative law judge
shall schedule a hearing for the purpose of reviewing
the Secretary’s determination. The hearing shall be
held not less than 20 days nor more than 60 days
after the date notice of the hearing is furnished to
the State, unless the Secretary and the State agree
in writing to holding the hearing at another time.
The administrative law judge shall affirm, modify, or
reverse the determination within 60 days of the con-
clusion of the hearing.
‘‘(f) JUDICIAL REVIEW.—
‘‘(1) IN GENERAL.—A State which is dissatis-
fied with a final determination made by the Sec-
retary under subsection (e)(1) or a final determina-
tion of an administrative law judge under subsection
(e)(2) may, within 60 days after it has been notified