‘‘(iii) participate in a program under
section 20 or a comparable program estab-
lished by a State or political subdivision of
a State.’’.
(b) TRANSITION PROVISION.—Prior to 1 year after
the date of enactment of this Act, the term ‘‘preceding
12-month period’’ in section 6(o) of the Food Stamp Act
of 1977, as amended by subsection (a), means the preced-
ing period that begins on the date of enactment of this
Act.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(A) 
IMPLEMENTATION.—Each 
State
agency shall implement an electronic benefit
transfer system in which household benefits de-
termined under section 8(a) or 26 are issued
from and stored in a central databank before
October 1, 2002, unless the Secretary provides
a waiver for a State agency that faces unusual
barriers to implementing an electronic benefit
transfer system.
‘‘(B) TIMELY
IMPLEMENTATION.—State
agencies are encouraged to implement an elec-
tronic benefit transfer system under subpara-
graph (A) as soon as practicable.
‘‘(C) STATE
FLEXIBILITY.—Subject to
paragraph (2), a State agency may procure and
implement an electronic benefit transfer system
under the terms, conditions, and design that
the State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) 
commercial 
electronic 
funds
transfer technology;
‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
‘‘(iii) the need to permit monitoring
and investigations by authorized law en-
forcement agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than
April 1, 1992,’’;
(B) in subparagraph (A)—
(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and in-
serting the following:
‘‘(D)(i) measures to maximize the security of a
system using the most recent technology available
that the State agency considers appropriate and cost
effective and which may include personal identifica-
tion numbers, photographic identification on elec-
tronic benefit transfer cards, and other measures to
protect against fraud and abuse; and
‘‘(ii) effective not later than 2 years after the
effective date of this clause, to the extent prac-
ticable, measures that permit a system to differen-
tiate items of food that may be acquired with an al-
lotment from items of food that may not be acquired
with an allotment.’’;
(D) in subparagraph (G), by striking
‘‘and’’ at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
‘‘(7) REPLACEMENT
OF
BENEFITS.—Regula-
tions issued by the Secretary regarding the replace-
ment of benefits and liability for replacement of ben-
efits under an electronic benefit transfer system
shall be similar to the regulations in effect for a
paper food stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agen-
cy may collect a charge for replacement of an elec-
tronic benefit transfer card by reducing the monthly
allotment of the household receiving the replacement
card.
‘‘(9) OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may
require that an electronic benefit card contain
a photograph of 1 or more members of a house-
hold.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to en-
sure that any other appropriate member of the
household or any authorized representative of
the household may utilize the card.
‘‘(10) APPLICATION
OF
ANTI-TYING
RESTRIC-
TIONS
TO
ELECTRONIC
BENEFIT
TRANSFER
SYS-
TEMS.—
‘‘(A) IN GENERAL.—A company shall not
sell or provide electronic benefit transfer serv-
ices, or fix or vary the consideration for such
services, on the condition or requirement that
the customer—
‘‘(i) obtain some additional point-of-
sale service from the company or any affili-
ate of the company; or
‘‘(ii) not obtain some additional point-
of-sale service from a competitor of the
company or competitor of any affiliate of
the company.
‘‘(B) DEFINITIONS.—In this paragraph—
‘‘(i) AFFILIATE.—The term ‘affiliate’
shall have the same meaning as in section
2(k) of the Bank Holding Company Act.
‘‘(ii) COMPANY.—The term ‘company’
shall have the same meaning as in section
106(a) of the Bank Holding Company Act
Amendments of 1970, but shall not include
a bank, bank holding company, or any sub-
sidiary of a bank holding company.
‘‘(iii) ELECTRONIC
BENEFIT
TRANS-
FER SERVICE.—The term ‘electronic bene-
fit transfer service’ means the processing
of electronic transfers of household bene-
fits determined under section 8(a) or 26
where the benefits are—
‘‘(I) issued from and stored in a
central databank;
‘‘(II) electronically accessed by
household members at the point of
sale; and
‘‘(III) provided by a Federal or
state government.
‘‘(iv) POINT-OF-SALE
SERVICE.—The
term ‘point-of-sale service’ means any
product or service related to the electronic
authorization and processing of payments
for merchandise at a retail food store, in-
cluding but not limited to credit or debit
card services, automated teller machines,
point-of-sale terminals, or access to on-line
systems.
‘‘(C) CONSULTATION WITH THE FEDERAL
RESERVE BOARD.—Before promulgating regula-
tions or interpretations of regulations to carry
out this paragraph, the Secretary shall consult
with the Board of Governors of the Federal Re-
serve System.’’.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that a State that operates an electronic benefit
transfer system under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) should operate the system in a man-
ner that is compatible with electronic benefit transfer sys-
tems operated by other States.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and
shall be adjusted’’ and all that follows through ‘‘$5’’.
SEC. 1036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more
than one month’’.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may
provide to an eligible household applying after the
15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the
household for the following month, an allotment that
is equal to the total amount of the initial allotment
and the first regular allotment. The allotment shall
be provided in accordance with section 11(e)(3) in
the case of a household that is not entitled to expe-
dited service and in accordance with paragraphs (3)
and (9) of section 11(e) in the case of a household
that is entitled to expedited service.’’.
SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-
TESTED PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF PUBLIC ASSISTANCE BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a house-
hold are reduced under a Federal, State, or local law
relating to a means-tested public assistance program
for the failure of a member of the household to per-
form an action required under the law or program,
for the duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that
the decrease is the result of the reduction; and
‘‘(B) the State agency may reduce the al-
lotment of the household by not more than 25
percent.
‘‘(2) RULES AND PROCEDURES.—If the allot-
ment of a household is reduced under this subsection
for a failure to perform an action required under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
IV of the Act to reduce the allotment under the food
stamp program.’’.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a center for the purpose of a drug or
alcoholic treatment program described in the last
sentence of section 3(i), a State agency may provide
an allotment for the individual to—
‘‘(A) the center as an authorized represent-
ative of the individual for a period that is less
than 1 month; and
‘‘(B) the individual, if the individual leaves
the center.
‘‘(2) DIRECT PAYMENT.—A State agency may
require an individual referred to in paragraph (1) to
designate the center in which the individual resides
as the authorized representative of the individual for
the purpose of receiving an allotment.’’.
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RE-
TAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)) is amended by adding at the end the
following: ‘‘No retail food store or wholesale food concern
of a type determined by the Secretary, based on factors
that include size, location, and type of items sold, shall
be approved to be authorized or reauthorized for participa-
tion in the food stamp program unless an authorized em-
ployee of the Department of Agriculture, a designee of the
Secretary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the
store or concern for the purpose of determining whether
the store or concern should be approved or reauthorized,
as appropriate.’’.
SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PE-
RIODS.
Section 9(a) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)) is amended by adding at the end the fol-
lowing:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary
shall establish specific time periods during which au-
thorization to accept and redeem coupons, or to re-
deem benefits through an electronic benefit transfer
system, shall be valid under the food stamp pro-
gram.’’.
SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7
U.S.C. 2018(c)) is amended—
(1) in the first sentence, by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide writ-
ten authorization for the Secretary to verify all rel-
evant tax filings with appropriate agencies and to
obtain corroborating documentation from other
sources so that the accuracy of information provided
by the stores and concerns may be verified.’’.
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO
MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7
U.S.C. 2018(d)) is amended by adding at the end the fol-
lowing: ‘‘A retail food store or wholesale food concern that
is denied approval to accept and redeem coupons because
the store or concern does not meet criteria for approval
established by the Secretary may not, for at least 6
months, submit a new application to participate in the
program. The Secretary may establish a longer time pe-
riod under the preceding sentence, including permanent
disqualification, that reflects the severity of the basis of
the denial.’’.
SEC. 1044. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020), as amended by sections 1020(b) and 1028(b), is
amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and insert-
ing the following:
the applicant to be filed on the date the appli-
cant submits the application;
‘‘(v) shall require that an adult representa-
tive of each applicant household certify in writ-
ing, under penalty of perjury, that—
‘‘(I) the information contained in the
application is true; and
‘‘(II) all members of the household
are citizens or are aliens eligible to receive
food stamps under section 6(f);
‘‘(vi) shall provide a method of certifying
and issuing coupons to eligible homeless individ-
uals, to ensure that participation in the food
stamp program is limited to eligible households;
and
‘‘(vii) may establish operating procedures
that vary for local food stamp offices to reflect
regional and local differences within the State;
‘‘(C) that nothing in this Act shall prohibit the
use of signatures provided and maintained electroni-
cally, storage of records using automated retrieval
systems only, or any other feature of a State agen-
cy’s application system that does not rely exclusively
on the collection and retention of paper applications
or other records;
‘‘(D) that the signature of any adult under this
paragraph shall be considered sufficient to comply
with any provision of Federal law requiring a house-
hold member to sign an application or statement;’’;
(B) in paragraph (3), as amended by sec-
tion 1020(b)—
(i) by striking ‘‘shall—’’ and all that
follows through ‘‘provide each’’ and insert-
ing ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all
that follows through ‘‘representative of the
State agency;’’;
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15)
through (24) as paragraphs (14) through (23),
respectively; and
(ii) by redesignating paragraph (26), as
added by section 1028(b), as paragraph (24);
and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and
all that follows through ‘‘(2)’’ and inserting the
following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) 
APPLICATION
PROCEDURES.—Notwith-
standing any other provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all
that follows through ‘‘title IV of the Social Se-
curity Act. No’’ and inserting a period and the
following:
‘‘(2) DENIAL AND TERMINATION.—Other than
in a case of disqualification as a penalty for failure
to comply with a public assistance program rule or
regulation, no’’.
SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(6)) is amended—
(1) by striking ‘‘that (A) the’’ and inserting
‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘Act; (B) the’’ and inserting
‘‘Act; and
‘‘(B) the’’;
(3) in subparagraph (B), by striking ‘‘United
States Civil Service Commission’’ and inserting ‘‘Of-
fice of Personnel Management’’; and
(4) by striking subparagraphs (C) through (E).
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMA-
TION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting
the following: ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and
inserting the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and insert-
ing the following: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
‘‘(D) notwithstanding any other provision
of law, the address, social security number, and,
if available, photograph of any member of a
household shall be made available, on request,
to any Federal, State, or local law enforcement
officer if the officer furnishes the State agency
with the name of the member and notifies the
agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, for a crime (or attempt to
commit a crime) that, under the law
of the place the member is fleeing, is
a felony (or, in the case of New Jer-
sey, a high misdemeanor), or is violat-
ing a condition of probation or parole
imposed under Federal or State law;
or
‘‘(II) has information that is nec-
essary for the officer to conduct an of-
ficial duty related to subclause (I);
‘‘(ii) locating or apprehending the
member is an official duty; and
‘‘(iii) the request is being made in the
proper exercise of an official duty; and
‘‘(E) the safeguards shall not prevent com-
pliance with paragraph (16);’’.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);