H. R. 3734—177
payment (as determined under this subsection) for the
fiscal year in which the redistribution is made.
‘‘(3) APPROPRIATION.—For grants under this section, there
are appropriated—
‘‘(A) $1,967,000,000 for fiscal year 1997;
‘‘(B) $2,067,000,000 for fiscal year 1998;
‘‘(C) $2,167,000,000 for fiscal year 1999;
‘‘(D) $2,367,000,000 for fiscal year 2000;
‘‘(E) $2,567,000,000 for fiscal year 2001; and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN TRIBES.—The Secretary shall reserve not less
than 1 percent, and not more than 2 percent, of the aggregate
amount appropriated to carry out this section in each fiscal
year for payments to Indian tribes and tribal organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Amounts received by a State under this
section shall only be used to provide child care assistance.
Amounts received by a State under a grant under subsection
(a)(1) shall be available for use by the State without fiscal
year limitation.
‘‘(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure
that not less than 70 percent of the total amount of funds
received by the State in a fiscal year under this section are
used to provide child care assistance to families who are receiv-
ing assistance under a State program under this part, families
who are attempting through work activities to transition off
of such assistance program, and families who are at risk of
becoming dependent on such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK
GRANT ACT of 1990.—Notwithstanding any other provision of law,
amounts provided to a State under this section shall be transferred
to the lead agency under the Child Care and Development Block
Grant Act of 1990, integrated by the State into the programs
established by the State under such Act, and be subject to require-
ments and limitations of such Act.
‘‘(d) DEFINITION.—As used in this section, the term ‘State’
means each of the 50 States or the District of Columbia.’’.
SEC. 604. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘State’’ the first
place that such appears and inserting ‘‘governmental or
nongovernmental’’; and
(B) in subparagraph (C), by inserting ‘‘with sufficient
time and Statewide distribution of the notice of such hear-
ing,’’ after ‘‘hearing in the State’’; and
(2) in paragraph (2), by striking the second sentence.
SEC. 605. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all that follows
through ‘‘(2)’’ and inserting ‘‘implemented’’; and
(B) by striking ‘‘for subsequent State plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
H. R. 3734—178
(I) in clause (i) by striking ‘‘, other than
through assistance provided under paragraph
(3)(C),’’; and
(II) by striking ‘‘except’’ and all that follows
through ‘‘1992’’, and inserting ‘‘and provide a
detailed description of the procedures the State
will implement to carry out the requirements of
this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assurances’’ and insert-
ing ‘‘Certify’’; and
(II) by inserting before the period at the end
‘‘and provide a detailed description of such proce-
dures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assurances’’ and insert-
ing ‘‘Certify’’; and
(II) by inserting before the period at the end
‘‘and provide a detailed description of how such
record is maintained and is made available’’;
(iv) by amending subparagraph (D) to read as
follows:
‘‘(D) CONSUMER EDUCATION INFORMATION.—Certify that
the State will collect and disseminate to parents of eligible
children and the general public, consumer education
information that will promote informed child care choices.’’;
(v) in subparagraph (E), to read as follows:
‘‘(E) COMPLIANCE
WITH
STATE
LICENSING
REQUIRE-
MENTS.—
‘‘(i) IN GENERAL.—Certify that the State has in
effect licensing requirements applicable to child care
services provided within the State, and provide a
detailed description of such requirements and of how
such requirements are effectively enforced. Nothing
in the preceding sentence shall be construed to require
that licensing requirements be applied to specific types
of providers of child care services.
‘‘(ii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—
In lieu of any licensing and regulatory requirements
applicable under State and local law, the Secretary,
in consultation with Indian tribes and tribal organiza-
tions, shall develop minimum child care standards
(that appropriately reflect tribal needs and available
resources) that shall be applicable to Indian tribes
and tribal organization receiving assistance under this
subchapter.’’;
(vi) in subparagraph (F) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’;
(vii) in subparagraph (G) by striking ‘‘Provide
assurances’’ and inserting ‘‘Certify’’; and
(viii) by striking subparagraphs (H), (I), and (J)
and inserting the following:
‘‘(H) MEETING THE NEEDS OF CERTAIN POPULATIONS.—
Demonstrate the manner in which the State will meet
the specific child care needs of families who are receiving
assistance under a State program under part A of title
IV of the Social Security Act, families who are attempting
H. R. 3734—179
through work activities to transition off of such assistance
program, and families that are at risk of becoming depend-
ent on such assistance program.’’;
(B) in paragraph (3)—
(i) in subparagraph (A), by striking ‘‘(B) and (C)’’
and inserting ‘‘(B) through (D)’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the reservation
contained in subparagraph (C), the’’ and inserting
‘‘AND RELATED ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘; and’’ at the
end and inserting a period;
(III) by striking ‘‘for—’’ and all that follows
through ‘‘section 658E(c)(2)(A)’’ and inserting ‘‘for
child care services on a sliding fee scale basis,
activities that improve the quality or availability
of such services, and any other activity that the
State deems appropriate to realize any of the goals
specified in paragraphs (2) through (5) of section
658A(b)’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as
follows:
‘‘(C) LIMITATION ON ADMINISTRATIVE COSTS.—Not more
than 5 percent of the aggregate amount of funds available
to the State to carry out this subchapter by a State in
each fiscal year may be expended for administrative costs
incurred by such State to carry out all of its functions
and duties under this subchapter. As used in the preceding
sentence, the term ‘administrative costs’ shall not include
the costs of providing direct services.’’; and
(iv) by adding at the end thereof the following:
‘‘(D) ASSISTANCE FOR CERTAIN FAMILIES.—A State shall
ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of sec-
tion 418(b)(2) of the Social Security Act with respect to
each of the fiscal years 1997 through 2002) to the State
to carry out activities under this subchapter in each fiscal
year is used to provide assistance to low-income working
families other than families described in paragraph (2)(H).’’;
and
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’ and inserting
‘‘certify’’;
(ii) in the first sentence by inserting ‘‘and shall
provide a summary of the facts relied on by the State
to determine that such rates are sufficient to ensure
such access’’ before the period; and
(iii) by striking the last sentence.
SEC. 606. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is amended by
striking ‘‘No’’ and inserting ‘‘Except as provided for in section
658O(c)(6), no’’.
SEC. 607. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as follows:
H. R. 3734—180
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
‘‘A State that receives funds to carry out this subchapter for
a fiscal year, shall use not less than 4 percent of the amount
of such funds for activities that are designed to provide comprehen-
sive consumer education to parents and the public, activities that
increase parental choice, and activities designed to improve the
quality and availability of child care (such as resource and referral
services).’’.
SEC. 608. REPEAL OF EARLY CHILDHOOD DEVELOPMENT AND BEFORE-
AND AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 609. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall have’’ and
all that follows through ‘‘(2)’’; and
(2) in the matter following clause (ii) of paragraph (2)(A),
by striking ‘‘finding and that’’ and all that follows through
the period and inserting ‘‘finding and shall require that the
State reimburse the Secretary for any funds that were improp-
erly expended for purposes prohibited or not authorized by
this subchapter, that the Secretary deduct from the administra-
tive portion of the State allotment for the following fiscal year
an amount that is less than or equal to any improperly
expended funds, or a combination of such options.’’.
SEC. 610. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended—
(1) by striking ‘‘expended’’ and inserting ‘‘obligated’’; and
(2) by striking ‘‘3 fiscal years’’ and inserting ‘‘fiscal year’’.
SEC. 611. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL REPORT’’
and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) COLLECTION OF INFORMATION BY STATES.—
‘‘(A) IN GENERAL.—A State that receives funds to carry
out this subchapter shall collect the information described
in subparagraph (B) on a monthly basis.
‘‘(B) 
REQUIRED
INFORMATION.—The 
information
required under this subparagraph shall include, with
respect to a family unit receiving assistance under this
subchapter information concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender, race, and age of children receiving
such assistance;
‘‘(iv) whether the family includes only one parent;
‘‘(v) the sources of family income, including the
amount obtained from (and separately identified)—
‘‘(I) employment, including self-employment;
‘‘(II) cash or other assistance under part A
of title IV of the Social Security Act;
‘‘(III) housing assistance;
H. R. 3734—181
‘‘(IV) assistance under the Food Stamp Act
of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family has received
benefits;
‘‘(vii) the type of child care in which the child
was enrolled (such as family child care, home care,
or center-based child care);
‘‘(viii) whether the child care provider involved
was a relative;
‘‘(ix) the cost of child care for such families; and
‘‘(x) the average hours per week of such care;
during the period for which such information is required
to be submitted.
‘‘(C) SUBMISSION TO SECRETARY.—A State described in
subparagraph (A) shall, on a quarterly basis, submit the
information required to be collected under subparagraph
(B) to the Secretary.
‘‘(D) SAMPLING.—The Secretary may disapprove the
information collected by a State under this paragraph if
the State uses sampling methods to collect such informa-
tion.
‘‘(2) BIANNUAL
REPORTS.—Not later than December 31,
1997, and every 6 months thereafter, a State described in
paragraph (1)(A) shall prepare and submit to the Secretary
a report that includes aggregate data concerning—
‘‘(A) the number of child care providers that received
funding under this subchapter as separately identified
based on the types of providers listed in section 658P(5);
‘‘(B) the monthly cost of child care services, and the
portion of such cost that is paid for with assistance provided
under this subchapter, listed by the type of child care
services provided;
‘‘(C) the number of payments made by the State
through vouchers, contracts, cash, and disregards under
public benefit programs, listed by the type of child care
services provided;
‘‘(D) the manner in which consumer education informa-
tion was provided to parents and the number of parents
to whom such information was provided; and
‘‘(E) the total number (without duplication) of children
and families served under this subchapter;
during the period for which such report is required to be sub-
mitted.’’; and
(2) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a application’’ and
inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any agency admin-
istering activities that receive’’ and inserting ‘‘the State
that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’ and inserting
‘‘entitled’’.
SEC. 612. REPORT BY THE SECRETARY.
Section 658L (42 U.S.C. 9858j) is amended—
(1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
(2) by striking ‘‘annually’’ and inserting ‘‘biennially’’; and
H. R. 3734—182
(3) by striking ‘‘Education and Labor’’ and inserting
‘‘Economic and Educational Opportunities’’.
SEC. 613. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘POSSESSIONS’’ and inserting
‘‘POSSESSIONS’’;
(ii) by inserting ‘‘and’’ after ‘‘States,’’; and
(iii) by striking ‘‘, and the Trust Territory of the
Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘more than 3 percent’’
and inserting ‘‘less than 1 percent, and not more than
2 percent,’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and inserting
‘‘out’’; and
(B) by adding at the end thereof the following new
paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FACILITIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An Indian tribe
or tribal organization may submit to the Secretary a
request to use amounts provided under this subsection
for construction or renovation purposes.
‘‘(B) DETERMINATION.—With respect to a request
submitted under subparagraph (A), and except as provided
in subparagraph (C), upon a determination by the Secretary
that adequate facilities are not otherwise available to an
Indian tribe or tribal organization to enable such tribe
or organization to carry out child care programs in accord-
ance with this subchapter, and that the lack of such facili-
ties will inhibit the operation of such programs in the
future, the Secretary may permit the tribe or organization
to use assistance provided under this subsection to make
payments for the construction or renovation of facilities
that will be used to carry out such programs.
‘‘(C) LIMITATION.—The Secretary may not permit an
Indian tribe or tribal organization to use amounts provided
under this subsection for construction or renovation if such
use will result in a decrease in the level of child care
services provided by the tribe or organization as compared
to the level of such services provided by the tribe or
organization in the fiscal year preceding the year for which
the determination under subparagraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Secretary shall
develop and implement uniform procedures for the solicita-
tion and consideration of requests under this paragraph.’’;
and
(3) in subsection (e), by adding at the end thereof the
following new paragraph:
‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS.—Any portion
of a grant or contract made to an Indian tribe or tribal organiza-
tion under subsection (c) that the Secretary determines is not
being used in a manner consistent with the provision of this
subchapter in the period for which the grant or contract is
made available, shall be allotted by the Secretary to other
H. R. 3734—183
tribes or organizations that have submitted applications under
subsection (c) in accordance with their respective needs.’’.
SEC. 614. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by inserting
‘‘or as a deposit for child care services if such a deposit is
required of other children being cared for by the provider’’
after ‘‘child care services’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 percent’’ and
inserting ‘‘85 percent’’;
(4) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling (if such
provider lives in a separate residence),’’ after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘applicable’’.
(5) by striking paragraph (10);
(6) in paragraph (13)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory of the Pacific
Islands’’;
(7) in paragraph (14)—
(A) by striking ‘‘The term’’ and inserting the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the following new
subparagraph:
‘‘(B) OTHER
ORGANIZATIONS.—Such term includes a
Native Hawaiian Organization, as defined in section
4009(4) of the Augustus F. Hawkins-Robert T. Stafford
Elementary and Secondary School Improvement Amend-
ments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit
organization established for the purpose of serving youth
who are Indians or Native Hawaiians.’’.
SEC. 615. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection (b), this
title and the amendments made by this title shall take effect
on October 1, 1996.
(b) EXCEPTION.—The amendment made by section 603(a) shall
take effect on the date of enactment of this Act.
TITLE VII—CHILD NUTRITION
PROGRAMS
Subtitle A—National School Lunch Act
SEC. 701. STATE DISBURSEMENT TO SCHOOLS.
(a) IN GENERAL.—Section 8 of the National School Lunch Act
(42 U.S.C. 1757) is amended—
(1) in the third sentence, by striking ‘‘Nothing’’ and all
that follows through ‘‘educational agency to’’ and inserting ‘‘The
State educational agency may’’;
(2) by striking the fourth and fifth sentences;
H. R. 3734—184
(3) by redesignating the first through seventh sentences,
as amended by paragraph (2), as subsections (a) through (g),
respectively;
(4) in subsection (b), as redesignated by paragraph (3),
by striking ‘‘the preceding sentence’’ and inserting ‘‘subsection
(a)’’; and
(5) in subsection (d), as redesignated by paragraph (3),
by striking ‘‘Such food costs’’ and inserting ‘‘Use of funds paid
to States’’.
(b) DEFINITION OF CHILD.—Section 12(d) of the National School
Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end
the following:
‘‘(9) CHILD.—
‘‘(A) IN GENERAL.—The term ‘child’ includes an indi-
vidual, regardless of age, who—
‘‘(i) is determined by a State educational agency,
in accordance with regulations prescribed by the Sec-
retary, to have one or more mental or physical disabil-
ities; and
‘‘(ii) is attending any institution, as defined in
section 17(a), or any nonresidential public or nonprofit
private school of high school grade or under, for the
purpose of participating in a school program estab-
lished for individuals with mental or physical dis-
abilities.
‘‘(B) RELATIONSHIP TO CHILD AND ADULT CARE FOOD
PROGRAM.—No institution that is not otherwise eligible
to participate in the program under section 17 shall be
considered eligible because of this paragraph.’’.
SEC. 702. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
(a) NUTRITIONAL STANDARDS.—Section 9(a) of the National
School Lunch Act (42 U.S.C. 1758(a)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘(2)(A) Lunches’’ and inserting ‘‘(2)
Lunches’’;
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(b) UTILIZATION OF AGRICULTURAL COMMODITIES.—Section 9(c)
of the National School Lunch Act (42 U.S.C. 1758(c)) is amended—
(1) in the fifth sentence, by striking ‘‘of the provisions
of law referred to in the preceding sentence’’ and inserting
‘‘provision of law’’; and
(2) by striking the second, fourth, and sixth sentences.
(c) NUTRITIONAL INFORMATION.—Section 9(f) of the National
School Lunch Act (42 U.S.C. 1758(f)) is amended—
(1) by striking paragraph (1);
(2) by striking ‘‘(2)’’;
(3) by redesignating subparagraphs (A) through (D) as
paragraphs (1) through (4), respectively;
(4) by striking paragraph (1), as redesignated by paragraph
(3), and inserting the following:
‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as provided in
paragraph (2), not later than the first day of the 1996–1997
H. R. 3734—185
school year, schools that are participating in the school lunch
or school breakfast program shall serve lunches and breakfasts
under the program that—
‘‘(A) are consistent with the goals of the most recent
Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341); and
‘‘(B) provide, on the average over each week, at least—
‘‘(i) with respect to school lunches, 1⁄3 of the daily
recommended dietary allowance established by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences; and
‘‘(ii) with respect to school breakfasts, 1⁄4 of the
daily recommended dietary allowance established by
the Food and Nutrition Board of the National Research
Council of the National Academy of Sciences.’’;
(5) in paragraph (3), as redesignated by paragraph (3)—
(A) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; and
(B) in subparagraph (A), as so redesignated, by
redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(6) in paragraph (4), as redesignated by paragraph (3)—
(A) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively;
(B) in subparagraph (A), as redesignated by subpara-
graph (A), by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively; and
(C) in subparagraph (A)(ii), as redesignated by
subparagraph (B), by striking ‘‘subparagraph (C)’’ and
inserting ‘‘paragraph (3)’’.
(d) USE OF RESOURCES.—Section 9 of the National School Lunch
Act (42 U.S.C. 1758) is amended by striking subsection (h).
SEC. 703. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)) is amended by adding at the end the following:
‘‘(D) FREE AND REDUCED PRICE POLICY STATEMENT.—
After the initial submission, a school food authority shall
not be required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school food authority. A routine change
in the policy of a school food authority, such as an annual
adjustment of the income eligibility guidelines for free and
reduced price meals, shall not be sufficient cause for requir-
ing the school food authority to submit a policy statement.’’.
SEC. 704. SPECIAL ASSISTANCE.
(a) EXTENSION OF PAYMENT PERIOD.—Section 11(a)(1)(D)(i) of
the National School Lunch Act (42 U.S.C. 1759a(a)(1)(D)(i)) is
amended by striking ‘‘, on the date of enactment of this subpara-
graph,’’.
(b) ROUNDING RULE FOR LUNCH, BREAKFAST, AND SUPPLEMENT
RATES.—
(1) IN GENERAL.—The third sentence of section 11(a)(3)(B)
of the National School Lunch Act (42 U.S.C. 1759a(a)(3)(B))
is amended by adding before the period at the end the following:
H. R. 3734—186
‘‘, except that adjustments to payment rates for meals and
supplements served to individuals not determined to be eligible
for free or reduced price meals and supplements shall be com-
puted to the nearest lower cent increment and based on the
unrounded amount for the preceding 12-month period’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall become effective on July 1, 1997.
(c) APPLICABILITY OF OTHER PROVISIONS.—Section 11 of the
National School Lunch Act (42 U.S.C. 1759a) is amended—
(1) by striking subsection (d);
(2) in subsection (e)(2)—
(A) by striking ‘‘The’’ and inserting ‘‘On request of
the Secretary, the’’; and
(B) by striking ‘‘each month’’; and
(3) by redesignating subsections (e) and (f), as so amended,
as subsections (d) and (e), respectively.
SEC. 705. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) ACCOUNTS AND RECORDS.—The second sentence of section
12(a) of the National School Lunch Act (42 U.S.C. 1760(a)) is
amended by striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’.
(b) RESTRICTION
ON
REQUIREMENTS.—Section 12(c) of the
National School Lunch Act (42 U.S.C. 1760(c)) is amended by strik-
ing ‘‘neither the Secretary nor the State shall’’ and inserting ‘‘the
Secretary shall not’’.
(c) DEFINITIONS.—Section 12(d) of the National School Lunch
Act (42 U.S.C. 1760(d)), as amended by section 701(b), is amended—
(1) in paragraph (1), by striking ‘‘the Trust Territory of
the Pacific Islands’’ and inserting ‘‘the Commonwealth of the
Northern Mariana Islands’’;
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and (5) through
(9) as paragraphs (6), (7), (3), (4), (2), (5), and (1), respectively,
and rearranging the paragraphs so as to appear in numerical
order.
(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT RATES.—
Section 12(f) of the National School Lunch Act (42 U.S.C. 1760(f))
is amended by striking ‘‘the Trust Territory of the Pacific Islands,’’.
(e) EXPEDITED RULEMAKING.—Section 12(k) of the National
School Lunch Act (42 U.S.C. 1760(k)) is amended—
(1) by striking paragraphs (1), (2), and (5);
(2) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively; and
(3) in paragraph (1), as redesignated by paragraph (2),
by striking ‘‘Guidelines’’ and inserting ‘‘guidelines contained
in the most recent ‘Dietary Guidelines for Americans’ that
is published under section 301 of the National Nutrition Mon-
itoring and Related Research Act of 1990 (7 U.S.C. 5341)’’.
(f) WAIVER.—Section 12(l) of the National School Lunch Act
(42 U.S.C. 1760(l)) is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii), by adding ‘‘and’’ at the end;
(B) in clause (iv), by striking the semicolon at the
end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)—
H. R. 3734—187
(A) in subparagraph (A), by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B) through (D);
(3) in paragraph (4)—
(A) in the matter preceding subparagraph (A), by strik-
ing ‘‘of any requirement relating’’ and inserting ‘‘that
increases Federal costs or that relates’’;
(B) by striking subparagraph (D);
(C) by redesignating subparagraphs (E) through (N)
as subparagraphs (D) through (M), respectively; and
(D) in subparagraph (L), as redesignated by subpara-
graph (C), by striking ‘‘and’’ at the end and inserting ‘‘or’’;
and
(4) in paragraph (6)—
(A) by striking ‘‘(A)(i)’’ and all that follows through
‘‘(B)’’; and
(B) by redesignating clauses (i) through (iv) as subpara-
graphs (A) through (D), respectively.
SEC. 706. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a) of the National
School Lunch Act (42 U.S.C. 1761(a)) is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘initiate, maintain,
and expand’’ and inserting ‘‘initiate and maintain’’; and
(B) in subparagraph (E) of the second sentence, by
striking ‘‘the Trust Territory of the Pacific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as provided
in subparagraph (C), private’’ and inserting ‘‘Private’’.
(b) SERVICE INSTITUTIONS.—Section 13(b) of the National School
Lunch Act (42 U.S.C. 1761(b)) is amended by striking ‘‘(b)(1)’’ and
all that follows through the end of paragraph (1) and inserting
the following:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise provided in
this paragraph, payments to service institutions shall equal
the full cost of food service operations (which cost shall
include the costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
‘‘(B) MAXIMUM AMOUNTS.—Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall
not exceed—
‘‘(i) $1.97 for each lunch and supper served;
‘‘(ii) $1.13 for each breakfast served; and
‘‘(iii) 46 cents for each meal supplement served.
‘‘(C) ADJUSTMENTS.—Amounts specified in subpara-
graph (B) shall be adjusted on January 1, 1997, and each
January 1 thereafter, to the nearest lower cent increment
to reflect changes for the 12-month period ending the
preceding November 30 in the series for food away from
home of the Consumer Price Index for All Urban Con-
sumers published by the Bureau of Labor Statistics of
the Department of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-month
period.’’.
H. R. 3734—188
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2)
of the National School Lunch Act (42 U.S.C. 1761(b)(2)) is
amended—
(1) in the first sentence, by striking ‘‘four meals’’ and insert-
ing ‘‘3 meals, or 2 meals and 1 supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the National School
Lunch Act (42 U.S.C. 1761(c)(2)) is amended—
(1) by striking subparagraphs (A), (C), (D), and (E);
(2) by striking ‘‘(B)’’;
(3) by striking ‘‘, and such higher education institu-
tions,’’; and
(4) by striking ‘‘without application’’ and inserting ‘‘on
showing residence in areas in which poor economic conditions
exist or on the basis of income eligibility statements for children
enrolled in the program’’.
(e) ADVANCE PROGRAM PAYMENTS.—Section 13(e)(1) of the
National School Lunch Act (42 U.S.C. 1761(e)(1)) is amended—
(1) by striking ‘‘institution: Provided, That (A) the’’ and
inserting ‘‘institution. The’’;
(2) by inserting ‘‘(excluding a school)’’ after ‘‘any service
institution’’; and
(3) by striking ‘‘responsibilities, and (B) no’’ and inserting
‘‘responsibilities. No’’.
(f) FOOD REQUIREMENTS.—Section 13(f) of the National School
Lunch Act (42 U.S.C. 1761(f)) is amended—
(1) by redesignating the first through seventh sentences
as paragraphs (1) through (7), respectively;
(2) by striking paragraph (3), as redesignated by para-
graph (1);
(3) in paragraph (4), as redesignated by paragraph (1),
by striking ‘‘the first sentence’’ and inserting ‘‘paragraph (1)’’;
(4) in subparagraph (B) of paragraph (6), as re-
designated by paragraph (1), by striking ‘‘that bacteria levels’’
and all that follows through the period at the end and inserting
‘‘conformance with standards set by local health authorities.’’;
and
(5) by redesignating paragraphs (4) through (7), as redesig-
nated by paragraph (1), as paragraphs (3) through (6), respec-
tively.
(g) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the
National School Lunch Act (42 U.S.C. 1761(f)), as amended by
subsection (f), is amended by adding at the end the following:
‘‘(7) OFFER VERSUS SERVE.—A school food authority partici-
pating as a service institution may permit a child attending
a site on school premises operated directly by the authority
to refuse one or more items of a meal that the child does
not intend to consume, under rules that the school uses for
school meals programs. A refusal of an offered food item shall
not affect the amount of payments made under this section
to a school for the meal.’’.
(h) RECORDS.—The second sentence of section 13(m) of the
National School Lunch Act (42 U.S.C. 1761(m)) is amended by
striking ‘‘at all times be available’’ and inserting ‘‘be available
at any reasonable time’’.
(i) REMOVING MANDATORY NOTICE TO INSTITUTIONS.—Section
13(n)(2) of the National School Lunch Act (42 U.S.C. 1761(n)(2))
H. R. 3734—189
is amended by striking ‘‘, and its plans and schedule for informing
service institutions of the availability of the program’’.
(j) PLAN.—Section 13(n) of the National School Lunch Act (42
U.S.C. 1761(n)), as amended by subsection (i), is amended—
(1) in paragraph (2), by striking ‘‘, including the State’s
methods of assessing need’’;
(2) by striking paragraph (3);
(3) in paragraph (4), by striking ‘‘and schedule’’; and
(4) by redesignating paragraphs (4) through (7) as para-
graphs (3) through (6), respectively.
(k) MONITORING AND TRAINING.—Section 13(q) of the National
School Lunch Act (42 U.S.C. 1761(q)) is amended—
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ‘‘paragraphs (1) and (2)
of this subsection’’ and inserting ‘‘paragraph (1)’’; and
(3) by redesignating paragraph (3) as paragraph (2).
(l) EXPIRED PROGRAM.—Section 13 of the National School Lunch
Act (42 U.S.C. 1761) is amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r) as subsections
(p) and (q), respectively.
(m) EFFECTIVE DATE.—The amendments made by subsection
(b) shall become effective on January 1, 1997.
SEC. 707. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DONATIONS.—Sec-
tion 14(b) of the National School Lunch Act (42 U.S.C. 1762a(b))
is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(b) STATE ADVISORY COUNCIL.—Section 14(e) of the National
School Lunch Act (42 U.S.C. 1762a(e)) is amended to read as follows:
‘‘(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with representa-
tives of schools in the State that participate in the school lunch
program with respect to the needs of such schools relating to the
manner of selection and distribution of commodity assistance for
such program.’’.
(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS.—Section
14(g) of the National School Lunch Act (42 U.S.C. 1762a(g)) is
amended by striking paragraph (3).
SEC. 708. CHILD AND ADULT CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended in the first sentence
of subsection (a), by striking ‘‘initiate, maintain, and expand’’ and
inserting ‘‘initiate and maintain’’.
(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph (2) of the
last sentence of section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at the end;
(2) in subparagraph (C), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day care home
sponsoring organization that employs more than one
employee, the organization does not base payments to an
H. R. 3734—190
employee of the organization on the number of family or
group day care homes recruited.’’.
(c) TECHNICAL
ASSISTANCE.—The last sentence of section
17(d)(1) of the National School Lunch Act (42 U.S.C. 1766(d)(1))
is amended by striking ‘‘, and shall provide technical assistance’’
and all that follows through ‘‘its application’’.
(d) REIMBURSEMENT
OF CHILD CARE INSTITUTIONS.—Section
17(f)(2)(B) of the National School Lunch Act (42 U.S.C. 1766(f)(2)(B))
is amended by striking ‘‘two meals and two supplements or three
meals and one supplement’’ and inserting ‘‘2 meals and 1 supple-
ment’’.
(e) IMPROVED TARGETING
OF DAY CARE HOME REIMBURSE-
MENTS.—
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Sec-
tion 17(f)(3) of the National School Lunch Act (42 U.S.C.
1766(f)(3)) is amended by striking ‘‘(3)(A) Institutions’’ and all
that follows through the end of subparagraph (A) and inserting
the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN GENERAL.—An institution that participates
in the program under this section as a family or group
day care home sponsoring organization shall be pro-
vided, for payment to a home sponsored by the
organization, reimbursement factors in accordance with
this subparagraph for the cost of obtaining and prepar-
ing food and prescribed labor costs involved in provid-
ing meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) DEFINITION OF TIER I FAMILY OR GROUP
DAY CARE HOME.—In this paragraph, the term ‘tier
I family or group day care home’ means—
‘‘(aa) a family or group day care home
that is located in a geographic area, as defined
by the Secretary based on census data, in
which at least 50 percent of the children resid-
ing in the area are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9;
‘‘(bb) a family or group day care home
that is located in an area served by a school
enrolling elementary students in which at
least 50 percent of the total number of children
enrolled are certified eligible to receive free
or reduced price school meals under this Act
or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.); or
‘‘(cc) a family or group day care home
that is operated by a provider whose household
meets the income eligibility guidelines for free
or reduced price meals under section 9 and
whose income is verified by the sponsoring
organization of the home under regulations
established by the Secretary.
H. R. 3734—191
‘‘(II) REIMBURSEMENT.—Except as provided in
subclause (III), a tier I family or group day care
home shall be provided reimbursement factors
under this clause without a requirement for docu-
mentation of the costs described in clause (i),
except that reimbursement shall not be provided
under this subclause for meals or supplements
served to the children of a person acting as a
family or group day care home provider unless
the children meet the income eligibility guidelines
for free or reduced price meals under section 9.
‘‘(III) FACTORS.—Except as provided in sub-
clause (IV), the reimbursement factors applied to
a home referred to in subclause (II) shall be the
factors in effect on July 1, 1996.
‘‘(IV) ADJUSTMENTS.—The reimbursement fac-
tors under this subparagraph shall be adjusted
on July 1, 1997, and each July 1 thereafter, to
reflect changes in the Consumer Price Index for
food at home for the most recent 12-month period
for which the data are available. The reimburse-
ment factors under this subparagraph shall be
rounded to the nearest lower cent increment and
based on the unrounded adjustment in effect on
June 30 of the preceding school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as provided in
subclause (II), with respect to meals or supple-
ments served under this clause by a family
or group day care home that does not meet
the criteria set forth in clause (ii)(I), the
reimbursement factors shall be 95 cents for
lunches and suppers, 27 cents for breakfasts,
and 13 cents for supplements.
‘‘(bb) ADJUSTMENTS.—The factors shall be
adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer
Price Index for food at home for the most
recent 12-month period for which the data
are available. The reimbursement factors
under this item shall be rounded down to the
nearest lower cent increment and based on
the unrounded adjustment for the preceding
12-month period.
‘‘(cc) REIMBURSEMENT.—A family or group
day care home shall be provided reimburse-
ment factors under this subclause without a
requirement for documentation of the costs
described in clause (i), except that reimburse-
ment shall not be provided under this sub-
clause for meals or supplements served to the
children of a person acting as a family or
group 
day 
care 
home 
provider 
unless
the children meet the income eligibility guide-
lines for free or reduced price meals under
section 9.
H. R. 3734—194
implementation of the amendment to subpara-
graph (A) made by section 708(e)(1) of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
‘‘(ii) ALLOCATION.—The Secretary shall allocate
from the funds reserved under clause (i)(I)—
‘‘(I) 
$30,000 
in 
base 
funding 
to 
each
State; and
‘‘(II) any remaining amount among the States,
based on the number of family day care homes
participating in the program in a State during
fiscal year 1995 as a percentage of the number
of all family day care homes participating in the
program during fiscal year 1995.
‘‘(iii) RETENTION
OF
FUNDS.—Of the amount of
funds made available to a State for fiscal year 1997
under clause (i), the State may retain not to exceed
30 percent of the amount to carry out this subpara-
graph.
‘‘(iv) 
ADDITIONAL
PAYMENTS.—Any 
payments
received under this subparagraph shall be in addition
to payments that a State receives under subparagraph
(A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)), as amended by para-
graph (2), is amended by adding at the end the following:
‘‘(E) PROVISION
OF
DATA
TO
FAMILY
OR
GROUP
DAY
CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(i) CENSUS
DATA.—The Secretary shall provide
to each State agency administering a child and adult
care food program under this section data from the
most recent decennial census survey or other appro-
priate census survey for which the data are available
showing which areas in the State meet the require-
ments of subparagraph (A)(ii)(I)(aa). The State agency
shall provide the data to family or group day care
home sponsoring organizations located in the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN GENERAL.—A State agency administer-
ing the school lunch program under this Act or
the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall provide to approved family or group day care
home sponsoring organizations a list of schools
serving elementary school children in the State
in which not less than 1⁄2 of the children enrolled
are certified to receive free or reduced price meals.
The State agency shall collect the data necessary
to create the list annually and provide the list
on a timely basis to any approved family or group
day care home sponsoring organization that
requests the list.
‘‘(II) USE OF DATA FROM PRECEDING SCHOOL
YEAR.—In determining for a fiscal year or other
annual period whether a home qualifies as a tier
I family or group day care home under subpara-
graph (A)(ii)(I), the State agency administering the
H. R. 3734—195
program under this section, and a family or group
day care home sponsoring organization, shall use
the most current available data at the time of
the determination.
‘‘(iii) DURATION OF DETERMINATION.—For purposes
of this section, a determination that a family or group
day care home is located in an area that qualifies
the home as a tier I family or group day care home
(as the term is defined in subparagraph (A)(ii)(I)), shall
be in effect for 3 years (unless the determination is
made on the basis of census data, in which case the
determination shall remain in effect until more recent
census data are available) unless the State agency
determines that the area in which the home is located
no longer qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING
AMENDMENTS.—Section 17(c) of the
National School Lunch Act (42 U.S.C. 1766(c)) is amended
by inserting ‘‘except as provided in subsection (f)(3),’’ after
‘‘For purposes of this section,’’ each place it appears in para-
graphs (1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the National School
Lunch Act (42 U.S.C. 1766(f)) is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the third and
fourth sentences; and
(B) in subparagraph (C)(ii), by striking ‘‘conduct out-
reach’’ and all that follows through ‘‘may become’’ and
inserting ‘‘assist unlicensed family or group day care homes
in becoming’’; and
(2) in the first sentence of paragraph (4), by striking ‘‘shall’’
and inserting ‘‘may’’.
(g) NUTRITIONAL
REQUIREMENTS.—Section 17(g)(1) of the
National School Lunch Act (42 U.S.C. 1766(g)(1)) is amended—
(1) 
in 
subparagraph 
(A), 
by 
striking 
the 
second
sentence; and
(2) in subparagraph (B), by striking the second sentence.
(h) ELIMINATION
OF
STATE
PAPERWORK
AND
OUTREACH
BURDEN.—Section 17 of the National School Lunch Act (42 U.S.C.
1766) is amended by striking subsection (k) and inserting the follow-
ing:
‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participat-
ing in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this sub-
section.’’.
(i) RECORDS.—The second sentence of section 17(m) of the
National School Lunch Act (42 U.S.C. 1766(m)) is amended by
striking ‘‘at all times’’ and inserting ‘‘at any reasonable time’’.
(j) UNNEEDED PROVISION.—Section 17 of the National School
Lunch Act is amended by striking subsection (q).
(k) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall become effective on
the date of enactment of this Act.
H. R. 3734—196
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSE-
MENTS.—The amendments made by paragraphs (1) and (4) of
subsection (e) shall become effective on July 1, 1997.
(3) REGULATIONS.—
(A) INTERIM
REGULATIONS.—Not later than January
1, 1997, the Secretary of Agriculture shall issue interim
regulations to implement—
(i) the amendments made by paragraphs (1), (3),
and (4) of subsection (e); and
(ii) section 17(f)(3)(C) of the National School Lunch
Act (42 U.S.C. 1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than July 1, 1997,
the Secretary of Agriculture shall issue final regulations
to implement the provisions of law referred to in subpara-
graph (A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPA-
TION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture, in conjunc-
tion with the Secretary of Health and Human Services, shall
study 
the 
impact 
of 
the 
amendments 
made 
by 
this
section on—
(A) the number of family day care homes participating
in the child and adult care food program established under
section 17 of the National School Lunch Act (42 U.S.C.
1766);
(B) the number of day care home sponsoring organiza-
tions participating in the program;
(C) the number of day care homes that are licensed,
certified, registered, or approved by each State in accord-
ance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred to
in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of meals
served in family day care homes that—
(i) received reimbursement under the program
prior to the amendments made by this section but
do not receive reimbursement after the amendments
made by this section; or
(ii) received full reimbursement under the program
prior to the amendments made by this section but
do not receive full reimbursement after the amend-
ments made by this section; and
(F) the proportion of low-income children participating
in the program prior to the amendments made by this
section and the proportion of low-income children partici-
pating in the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency participating in
the child and adult care food program under section 17 of
the National School Lunch Act (42 U.S.C. 1766) shall submit
to the Secretary of Agriculture data on—
(A) the number of family day care homes participating
in the program on June 30, 1997, and June 30, 1998;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on June 30,
1997, and June 30, 1998; and
H. R. 3734—197
(C) such other data as the Secretary may require to
carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2 years after
the date of enactment of this section, the Secretary of Agri-
culture shall submit the study required under this subsection
to the Committee on Economic and Educational Opportunities
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
SEC. 709. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the National
School Lunch Act (42 U.S.C. 1769(d)) is amended—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(b) DEMONSTRATION PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the National School Lunch Act (42 U.S.C. 1769(e))
is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting ‘‘may’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated to carry out this subsection such
sums as are necessary for each of fiscal years 1997 and 1998.’’.
SEC. 710. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C. 1769a)
is repealed.
SEC. 711. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C. 1769d)
is repealed.
SEC. 712. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C. 1769e)
is repealed.
Subtitle B—Child Nutrition Act of 1966
SEC. 721. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1772(a)(3)) is amended by striking ‘‘the Trust Territory of the Pacific
Islands’’ and inserting ‘‘the Commonwealth of the Northern Mariana
Islands’’.
SEC. 722. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)) is amended by adding at the end the following:
‘‘(E) FREE AND REDUCED PRICE POLICY STATEMENT.—
After the initial submission, a school food authority shall
not be required to submit a free and reduced price policy
statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school food authority. A routine change
H. R. 3734—198
in the policy of a school food authority, such as an annual
adjustment of the income eligibility guidelines for free and
reduced price meals, shall not be sufficient cause for requir-
ing the school food authority to submit a policy statement.’’.
SEC. 723. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD PREPARA-
TION.—Section 4(e)(1)(B) of the Child Nutrition Act of 1966 (42
U.S.C. 1773(e)(1)(B)) is amended by striking the second sentence.
(b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS.—
(1) IN GENERAL.—Section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) is amended by striking subsections (f)
and (g).
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall become effective on October 1, 1996.
SEC. 724. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION ADMINISTRA-
TION; STUDIES.—Section 7 of the Child Nutrition Act of 1966 (42
U.S.C. 1776) is amended—
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i) as sub-
sections (e), (f), and (g), respectively.
(b) APPROVAL OF CHANGES.—Section 7(e) of the Child Nutrition
Act of 1966 (42 U.S.C. 1776(e)), as so redesignated, is amended—
(1) by striking ‘‘each year an annual plan’’ and inserting
‘‘the initial fiscal year a plan’’; and
(2) by adding at the end the following: ‘‘After submitting
the initial plan, a State shall be required to submit to the
Secretary for approval only a substantive change in the plan.’’.
SEC. 725. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)) is amended—
(1) in paragraph (1), by striking ‘‘(1)’’; and
(2) by striking paragraphs (2) through (4).
SEC. 726. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1780(a)) is amended by striking ‘‘neither the Secretary nor the
State shall’’ and inserting ‘‘the Secretary shall not’’.
SEC. 727. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784)
is amended—
(1) in paragraph (1), by striking ‘‘the Trust Territory of
the Pacific Islands’’ and inserting ‘‘the Commonwealth of the
Northern Mariana Islands’’; and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘and’’ at the
end; and
(B) by striking ‘‘, and (C)’’ and all that follows through
‘‘Governor of Puerto Rico’’.
SEC. 728. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nutrition
Act of 1966 (42 U.S.C. 1785(a)) is amended by striking ‘‘at all
times be available’’ and inserting ‘‘be available at any reasonable
time’’.
H. R. 3734—201
(iii) in subparagraph (I), by striking ‘‘Sec-
retary—’’ and all that follows through ‘‘(v) may’’ and
inserting ‘‘Secretary may’’;
(iv) by redesignating subparagraphs (B) and (D)
through (L) as subparagraphs (A) and (B) through
(J), respectively;
(v) in subparagraph (A)(i), as so redesignated, by
striking ‘‘subparagraphs (C), (D), and (E)(iii), in carry-
ing out subparagraph (A),’’ and inserting ‘‘subpara-
graphs (B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so redesignated, by
striking ‘‘subparagraph (B)’’ each place it appears and
inserting ‘‘subparagraph (A)’’; and
(vii) in subparagraph (C)(iii), as so redesignated,
by striking ‘‘subparagraph (B)’’ and inserting ‘‘subpara-
graph (A)’’.
(2) APPLICATION.—The amendments made by paragraph
(1) shall not apply to a contract for the procurement of infant
formula under section 17(h)(8) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)(8)) that is in effect on the date of
enactment of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND
FETAL NUTRITION.—Section 17(k)(3) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(k)(3)) is amended by striking ‘‘Secretary shall
designate’’ and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION;
GRANTS FOR INFORMATION AND DATA SYSTEM.—Section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended by striking
subsections (n), (o), and (p).
(j) DISQUALIFICATION
OF VENDORS WHO ARE DISQUALIFIED
UNDER THE FOOD STAMP PROGRAM.—Section 17 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786), as amended by subsection (i),
is amended by adding at the end the following:
‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED
UNDER THE FOOD STAMP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this section
of an approved vendor that is disqualified from accepting bene-
fits under the food stamp program established under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
‘‘(2) TERMS.—A disqualification under paragraph (1)—
‘‘(A) shall be for the same period as the disqualification
from the program referred to in paragraph (1);
‘‘(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
‘‘(C) shall not be subject to judicial or administrative
review.’’.
SEC. 730. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787)
is repealed.
SEC. 731. NUTRITION EDUCATION AND TRAINING.
(a) FINDINGS.—Section 19 of the Child Nutrition Act of 1966
(42 U.S.C. 1788) is amended—
(1) in subsection (a), by striking ‘‘that—’’ and all that
follows through the period at the end and inserting ‘‘that effec-
tive dissemination of scientifically valid information to children
H. R. 3734—202
participating or eligible to participate in the school lunch and
related child nutrition programs should be encouraged.’’; and
(2) in subsection (b), by striking ‘‘encourage’’ and all that
follows through ‘‘establishing’’ and inserting ‘‘establish’’.
(b) USE OF FUNDS.—Section 19(f) of the Child Nutrition Act
of 1966 (42 U.S.C. 1788(f)) is amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through (xix);
(iii) by redesignating clauses (i) through (viii) and
(xx) as subparagraphs (A) through (H) and (I), respec-
tively;
(iv) in subparagraph (I), as so redesignated, by
striking the period at the end and inserting ‘‘; and’’;
and
(v) by adding at the end the following:
‘‘(J) other appropriate related activities, as determined by
the State.’’;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS.—The second sentence
of section 19(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1788(g)(1)) is amended by striking ‘‘at all times be available’’ and
inserting ‘‘be available at any reasonable time’’.
(d) STATE COORDINATORS FOR NUTRITION; STATE PLAN.—Section
19(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(h)) is
amended—
(1) in the second sentence of paragraph (1)—
(A) by striking ‘‘as provided in paragraph (2) of this
subsection’’; and
(B) by striking ‘‘as provided in paragraph (3) of this
subsection’’;
(2) in paragraph (2), by striking the second and third
sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 19(i) of the
Child Nutrition Act of 1966 (42 U.S.C. 1788(i)) is amended—
(1) in the first sentence of paragraph (2)(A), by striking
‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized to be appro-
priated to carry out this section $10,000,000 for each of
fiscal years 1997 through 2002.
‘‘(B) GRANTS.—
‘‘(i) IN GENERAL.—Grants to each State from the
amounts made available under subparagraph (A) shall
be based on a rate of 50 cents for each child enrolled
in schools or institutions within the State, except that
no State shall receive an amount less than $75,000
per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the amount made
available for any fiscal year is insufficient to pay the
H. R. 3734—203
amount to which each State is entitled under clause
(i), the amount of each grant shall be ratably reduced.’’.
(f) ASSESSMENT.—Section 19 of the Child Nutrition Act of 1966
(42 U.S.C. 1788) is amended by striking subsection (j).
(g) EFFECTIVE DATE.—The amendments made by subsection
(e) shall become effective on October 1, 1996.
Subtitle C—Miscellaneous Provisions
SEC. 741. COORDINATION OF SCHOOL LUNCH, SCHOOL BREAKFAST,
AND SUMMER FOOD SERVICE PROGRAMS.
(a) COORDINATION.—
(1) IN GENERAL.—The Secretary of Agriculture shall develop
proposed changes to the regulations under the school lunch
program under the National School Lunch Act (42 U.S.C. 1751
et seq.), the summer food service program under section 13
of that Act (42 U.S.C. 1761), and the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), for the purpose of simplifying and coordinating those
programs into a comprehensive meal program.
(2) CONSULTATION.—In developing proposed changes to the
regulations under paragraph (1), the Secretary of Agriculture
shall consult with local, State, and regional administrators
of the programs described in such paragraph.
(b) REPORT.—Not later than November 1, 1997, the Secretary
of Agriculture shall submit to the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate and the Committee on Economic
and Educational Opportunities of the House of Representatives
a report containing the proposed changes developed under sub-
section (a).
SEC. 742. REQUIREMENTS RELATING TO PROVISION OF BENEFITS
BASED ON CITIZENSHIP, ALIENAGE, OR IMMIGRATION
STATUS UNDER THE NATIONAL SCHOOL LUNCH ACT, THE
CHILD NUTRITION ACT OF 1966, AND CERTAIN OTHER
ACTS.
(a) SCHOOL LUNCH AND BREAKFAST PROGRAMS.—Notwithstand-
ing any other provision of this Act, an individual who is eligible
to receive free public education benefits under State or local law
shall not be ineligible to receive benefits provided under the school
lunch program under the National School Lunch Act (42 U.S.C.
1751 et seq.) or the school breakfast program under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) on the basis
of citizenship, alienage, or immigration status.
(b) OTHER PROGRAMS.—
(1) IN
GENERAL.—Nothing in this Act shall prohibit or
require a State to provide to an individual who is not a citizen
or a qualified alien, as defined in section 431(b), benefits under
programs established under the provisions of law described
in paragraph (2).
(2) PROVISIONS OF LAW DESCRIBED.—The provisions of law
described in this paragraph are the following:
(A) Programs (other than the school lunch program
and the school breakfast program) under the National
School Lunch Act (42 U.S.C. 1751 et seq.) and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
H. R. 3734—204
(B) Section 4 of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note).
(C) The Emergency Food Assistance Act of 1983 (7
U.S.C 612c note).
(D) The food distribution program on Indian reserva-
tions established under section 4(b) of the Food Stamp
Act of 1977 (7 U.S.C 2013(b)).
TITLE VIII—FOOD STAMPS AND
COMMODITY DISTRIBUTION
Subtitle A—Food Stamp Program
SEC. 801. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c))
is amended by striking ‘‘Except as provided’’ and all that follows
and inserting the following: ‘‘The certification period shall not
exceed 12 months, except that the certification period may be up
to 24 months if all adult household members are elderly or disabled.
A State agency shall have at least 1 contact with each certified
household every 12 months.’’.
SEC. 802. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d))
is amended by striking ‘‘or type of certificate’’ and inserting ‘‘type
of certificate, authorization card, cash or check issued in lieu of
a coupon, or access device, including an electronic benefit transfer
card or personal identification number,’’.
SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(i)) is amended by striking ‘‘(who are not
themselves parents living with their children or married and living
with their spouses)’’.
SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting the following:
‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting the following:
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting the
following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all that follows
through the end of the subsection and inserting the following:
‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet in
the preceding June, and round the result to the nearest lower
dollar increment for each household size, except that on October
1, 1996, the Secretary may not reduce the cost of the diet
in effect on September 30, 1996.’’.
H. R. 3734—205
SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2012(s)(2)(C)) is amended by inserting ‘‘for not more than 90 days’’
after ‘‘temporary accommodation’’.
SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d))
is amended by striking ‘‘(b) The Secretary’’ and inserting the
following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in
this Act, the Secretary’’.
SEC. 807. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ‘‘21’’ and inserting ‘‘17’’.
SEC. 808. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and insert-
ing the following: ‘‘(11)(A) any payments or allowances made for
the purpose of providing energy assistance under any Federal law
(other than part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)), or (B) a 1-time payment or allowance made under
a Federal or State law for the costs of weatherization or emergency
repair or replacement of an unsafe or inoperative furnace or other
heating or cooling device,’’.
(b) CONFORMING AMENDMENTS.—Section 5(k) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(k)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘plan for aid to
families with dependent children approved’’ and inserting
‘‘program funded’’; and
(B) in subparagraph (B), by striking ‘‘, not including
energy or utility-cost assistance,’’;
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
‘‘(C) a payment or allowance described in subsection
(d)(11);’’; and
(3) by adding at the end the following:
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.—
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of
subsection (d)(1), a payment made under a State law (other
than a law referred to in paragraph (2)(H)) to provide
energy assistance to a household shall be considered money
payable directly to the household.
‘‘(B) ENERGY ASSISTANCE EXPENSES.—For purposes of
subsection (e)(7), an expense paid on behalf of a household
under a State law to provide energy assistance shall be
considered an out-of-pocket expense incurred and paid by
the household.’’.
SEC. 809. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5 of the Food Stamp Act of 1977
(7 U.S.C. 2014) is amended by striking subsection (e) and inserting
the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD DEDUCTION.—The Secretary shall allow a
standard deduction for each household in the 48 contiguous
H. R. 3734—206
States and the District of Columbia, Alaska, Hawaii, Guam,
and the Virgin Islands of the United States of $134, $229,
$189, $269, and $118, respectively.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) DEFINITION
OF
EARNED
INCOME.—In this para-
graph, the term ‘earned income’ does not include—
‘‘(i) income excluded by subsection (d); or
‘‘(ii) any portion of income earned under a work
supplementation or support program, as defined under
section 16(b), that is attributable to public assistance.
‘‘(B) DEDUCTION.—Except as provided in subparagraph
(C), a household with earned income shall be allowed a
deduction of 20 percent of all earned income to compensate
for taxes, other mandatory deductions from salary, and
work expenses.
‘‘(C) EXCEPTION.—The deduction described in subpara-
graph (B) shall not be allowed with respect to determining
an overissuance due to the failure of a household to report
earned income in a timely manner.
‘‘(3) DEPENDENT CARE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be entitled, with
respect to expenses (other than excluded expenses described
in subparagraph (B)) for dependent care, to a dependent
care deduction, the maximum allowable level of which shall
be $200 per month for each dependent child under 2 years
of age and $175 per month for each other dependent, for
the actual cost of payments necessary for the care of a
dependent if the care enables a household member to accept
or continue employment, or training or education that is
preparatory for employment.
‘‘(B) EXCLUDED
EXPENSES.—The excluded expenses
referred to in subparagraph (A) are—
‘‘(i) expenses paid on behalf of the household by
a third party;
‘‘(ii) amounts made available and excluded, for the
expenses referred to in subparagraph (A), under sub-
section (d)(3); and
‘‘(iii) expenses that are paid under section 6(d)(4).
‘‘(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—A household shall be entitled to
a deduction for child support payments made by a house-
hold member to or for an individual who is not a member
of the household if the household member is legally obli-
gated to make the payments.
‘‘(B) METHODS FOR DETERMINING AMOUNT.—The Sec-
retary may prescribe by regulation the methods, including
calculation on a retrospective basis, that a State agency
shall use to determine the amount of the deduction for
child support payments.
‘‘(5) HOMELESS
SHELTER
ALLOWANCE.—Under rules pre-
scribed by the Secretary, a State agency may develop a standard
homeless shelter allowance, which shall not exceed $143 per
month, for such expenses as may reasonably be expected to
be incurred by households in which all members are homeless
individuals but are not receiving free shelter throughout the
month. A State agency that develops the allowance may use
the allowance in determining eligibility and allotments for the
H. R. 3734—207
households. The State agency may make a household with
extremely low shelter costs ineligible for the allowance.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household containing an elderly
or disabled member shall be entitled, with respect to
expenses other than expenses paid on behalf of the house-
hold by a third party, to an excess medical expense deduc-
tion for the portion of the actual costs of allowable medical
expenses, incurred by the elderly or disabled member,
exclusive of special diets, that exceeds $35 per month.
‘‘(B) METHOD OF CLAIMING DEDUCTION.—
‘‘(i) IN GENERAL.—A State agency shall offer an
eligible household under subparagraph (A) a method
of claiming a deduction for recurring medical expenses
that are initially verified under the excess medical
expense deduction in lieu of submitting information
on, or verification of, actual expenses on a monthly
basis.
‘‘(ii) METHOD.—The method described in clause (i)
shall—
‘‘(I) be designed to minimize the burden for
the eligible elderly or disabled household member
choosing to deduct the recurrent medical expenses
of the member pursuant to the method;
‘‘(II) rely on reasonable estimates of the
expected medical expenses of the member for the
certification period (including changes that can be
reasonably anticipated based on available informa-
tion about the medical condition of the member,
public or private medical insurance coverage, and
the current verified medical expenses incurred by
the member); and
‘‘(III) not require further reporting or verifica-
tion of a change in medical expenses if such a
change has been anticipated for the certification
period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be entitled, with
respect to expenses other than expenses paid on behalf
of the household by a third party, to an excess shelter
expense deduction to the extent that the monthly amount
expended by a household for shelter exceeds an amount
equal to 50 percent of monthly household income after
all other applicable deductions have been allowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case
of a household that does not contain an elderly or disabled
individual, in the 48 contiguous States and the District
of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands
of the United States, the excess shelter expense deduction
shall not exceed—
‘‘(i) for the period beginning on the date of enact-
ment of this subparagraph and ending on December
31, 1996, $247, $429, $353, $300, and $182 per month,
respectively;
‘‘(ii) for the period beginning on January 1, 1997,
and ending on September 30, 1998, $250, $434, $357,
$304, and $184 per month, respectively;
H. R. 3734—208
‘‘(iii) for fiscal years 1999 and 2000, $275, $478,
$393, $334, and $203 per month, respectively; and
‘‘(iv) for fiscal year 2001 and each subsequent fiscal
year, $300, $521, $429, $364, and $221 per month,
respectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the excess shelter
expense deduction, a State agency may use a standard
utility allowance in accordance with regulations
promulgated by the Secretary, except that a State
agency may use an allowance that does not fluctuate
within a year to reflect seasonal variations.
‘‘(ii) RESTRICTIONS
ON
HEATING
AND
COOLING
EXPENSES.—An allowance for a heating or cooling
expense may not be used in the case of a household
that—
‘‘(I) does not incur a heating or cooling
expense, as the case may be;
‘‘(II) does incur a heating or cooling expense
but is located in a public housing unit that has
central utility meters and charges households,
with regard to the expense, only for excess utility
costs; or
‘‘(III) shares the expense with, and lives with,
another individual not participating in the food
stamp program, another household participating
in the food stamp program, or both, unless the
allowance is prorated between the household and
the other individual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) IN GENERAL.—A State agency may make
the use of a standard utility allowance mandatory
for all households with qualifying utility costs if—
‘‘(aa) the State agency has developed 1
or more standards that include the cost of
heating and cooling and 1 or more standards
that do not include the cost of heating and
cooling; and
‘‘(bb) the Secretary finds that the stand-
ards will not result in an increased cost to
the Secretary.
‘‘(II) HOUSEHOLD ELECTION.—A State agency
that has not made the use of a standard utility
allowance mandatory under subclause (I) shall
allow a household to switch, at the end of a certifi-
cation period, between the standard utility allow-
ance and a deduction based on the actual utility
costs of the household.
‘‘(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS
OF ENERGY ASSISTANCE.—
‘‘(I) IN
GENERAL.—Subject to subclause (II),
if a State agency elects to use a standard utility
allowance that reflects heating or cooling costs,
the standard utility allowance shall be made avail-
able to households receiving a payment, or on
behalf of which a payment is made, under the
Low-Income Home Energy Assistance Act of 1981
H. R. 3734—209
(42 U.S.C. 8621 et seq.) or other similar energy
assistance program, if the household still incurs
out-of-pocket heating or cooling expenses in excess
of any assistance paid on behalf of the household
to an energy provider.
‘‘(II) SEPARATE ALLOWANCE.—A State agency
may use a separate standard utility allowance for
households on behalf of which a payment described
in subclause (I) is made, but may not be required
to do so.
‘‘(III) STATES NOT ELECTING TO USE SEPARATE
ALLOWANCE.—A State agency that does not elect
to use a separate allowance but makes a single
standard utility allowance available to households
incurring heating or cooling expenses (other than
a household described in subclause (I) or (II) of
clause (ii)) may not be required to reduce the allow-
ance due to the provision (directly or indirectly)
of assistance under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et seq.).
‘‘(IV) PRORATION OF ASSISTANCE.—For the pur-
pose of the food stamp program, assistance pro-
vided under the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8621 et seq.) shall
be considered to be prorated over the entire heat-
ing or cooling season for which the assistance was
provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking
‘‘. Under rules prescribed’’ and all that follows through ‘‘verifies
higher expenses’’.
SEC. 810. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g))
is amended by striking paragraph (2) and inserting the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this paragraph, the Secretary shall, in prescribing inclu-
sions in, and exclusions from, financial resources, follow
the regulations in force as of June 1, 1982 (other than
those relating to licensed vehicles and inaccessible
resources).
‘‘(B) ADDITIONAL
INCLUDED
ASSETS.—The Secretary
shall include in financial resources—
‘‘(i) any boat, snowmobile, or airplane used for
recreational purposes;
‘‘(ii) any vacation home;
‘‘(iii) any mobile home used primarily for vacation
purposes;
‘‘(iv) subject to subparagraph (C), any licensed
vehicle that is used for household transportation or
to obtain or continue employment to the extent that
the fair market value of the vehicle exceeds $4,600
through September 30, 1996, and $4,650 beginning
October 1, 1996; and
H. R. 3734—210
‘‘(v) any savings or retirement account (including
an individual account), regardless of whether there
is a penalty for early withdrawal.
‘‘(C) EXCLUDED VEHICLES.—A vehicle (and any other
property, real or personal, to the extent the property is
directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) necessary for the transportation of a physically
disabled household member; or
‘‘(iii) depended on by a household to carry fuel
for heating or water for home use and provides the
primary source of fuel or water, respectively, for the
household.’’.
SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED
AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2014(k)(2)) is amended—
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H) as subpara-
graphs (F) and (G), respectively.
SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-
EMPLOYED.
Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014),
as amended by title I, is amended by adding at the end the
following:
‘‘(m) SIMPLIFIED CALCULATION
OF INCOME
FOR
THE SELF-
EMPLOYED.—
‘‘(1) IN GENERAL.—Not later than 1 year after the date
of enactment of this subsection, the Secretary shall establish
a procedure by which a State may submit a method, designed
to not increase Federal costs, for the approval of the Secretary,
that the Secretary determines will produce a reasonable esti-
mate of income excluded under subsection (d)(9) in lieu of
calculating the actual cost of producing self-employment
income.
‘‘(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES
OF INCOME.—The method submitted by a State under paragraph
(1) may allow a State to estimate income for all types of
self-employment income or may be limited to 1 or more types
of self-employment income.
‘‘(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME.—The
method submitted by a State under paragraph (1) may differ
for different types of self-employment income.’’.
SEC. 813. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PRO-
GRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and inserting
‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and inserting ‘‘2
years’’.
H. R. 3734—211
SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the end;
(2) in subclause (III), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the following:
‘‘(IV) a conviction of an offense under subsection (b)
or (c) of section 15 involving an item covered by subsection
(b) or (c) of section 15 having a value of $500 or more.’’.
SEC. 815. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1) Unless otherwise
exempted by the provisions’’ and all that follows through the end
of paragraph (1) and inserting the following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and mentally fit
individual over the age of 15 and under the age of 60
shall be eligible to participate in the food stamp program
if the individual—
‘‘(i) refuses, at the time of application and every
12 months thereafter, to register for employment in
a manner prescribed by the Secretary;
‘‘(ii) refuses without good cause to participate in
an employment and training program established
under paragraph (4), to the extent required by the
State agency;
‘‘(iii) refuses without good cause to accept an offer
of employment, at a site or plant not subject to a
strike or lockout at the time of the refusal, at a wage
not less than the higher of—
‘‘(I) the applicable Federal or State minimum
wage; or
‘‘(II) 80 percent of the wage that would have
governed had the minimum hourly rate under sec-
tion 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) been applicable to the
offer of employment;
‘‘(iv) refuses without good cause to provide a State
agency with sufficient information to allow the State
agency to determine the employment status or the
job availability of the individual;
‘‘(v) voluntarily and without good cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and, after the reduc-
tion, the individual is working less than 30 hours
per week; or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD INELIGIBILITY.—If an individual who
is the head of a household becomes ineligible to participate
in the food stamp program under subparagraph (A), the
household shall, at the option of the State agency, become
ineligible to participate in the food stamp program for
a period, determined by the State agency, that does not
exceed the lesser of—
H. R. 3734—212
‘‘(i) the duration of the ineligibility of the individual
determined under subparagraph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST
VIOLATION.—The first time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 1 month after the date
the individual became ineligible; or
‘‘(III) a date determined by the State agency
that is not later than 3 months after the date
the individual became ineligible.
‘‘(ii) SECOND VIOLATION.—The second time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 3 months after the date
the individual became ineligible; or
‘‘(III) a date determined by the State agency
that is not later than 6 months after the date
the individual became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLATION.—The third
or subsequent time that an individual becomes ineli-
gible to participate in the food stamp program under
subparagraph (A), the individual shall remain ineli-
gible until the later of—
‘‘(I) the date the individual becomes eligible
under subparagraph (A);
‘‘(II) the date that is 6 months after the date
the individual became ineligible;
‘‘(III) 
a 
date 
determined 
by 
the 
State
agency; or
‘‘(IV) at the option of the State agency,
permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD CAUSE.—The Secretary shall determine
the meaning of good cause for the purpose of this
paragraph.
‘‘(ii) VOLUNTARY QUIT.—The Secretary shall deter-
mine the meaning of voluntarily quitting and reducing
work effort for the purpose of this paragraph.
‘‘(iii) DETERMINATION BY STATE AGENCY.—
‘‘(I) IN GENERAL.—Subject to subclause (II) and
clauses (i) and (ii), a State agency shall deter-
mine—
‘‘(aa) the meaning of any term used in
subparagraph (A);
‘‘(bb) the procedures for determining
whether an individual is in compliance with
a requirement under subparagraph (A); and
H. R. 3734—213
‘‘(cc) whether an individual is in compli-
ance with a requirement under subpara-
graph (A).
‘‘(II) NOT LESS RESTRICTIVE.—A State agency
may not use a meaning, procedure, or determina-
tion under subclause (I) that is less restrictive
on individuals receiving benefits under this Act
than a comparable meaning, procedure, or deter-
mination under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C.
601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERNMENT.—For the
purpose of subparagraph (A)(v), an employee of the
Federal Government, a State, or a political subdivision
of a State, who is dismissed for participating in a
strike against the Federal Government, the State, or
the political subdivision of the State shall be considered
to have voluntarily quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSEHOLD.—
‘‘(I) IN GENERAL.—For purposes of this para-
graph, the State agency shall allow the household
to select any adult parent of a child in the house-
hold as the head of the household if all adult
household members making application under the
food stamp program agree to the selection.
‘‘(II) TIME
FOR
MAKING
DESIGNATION.—A
household may designate the head of the household
under subclause (I) each time the household is
certified for participation in the food stamp pro-
gram, but may not change the designation during
a certification period unless there is a change in
the composition of the household.
‘‘(vi) CHANGE IN HEAD OF HOUSEHOLD.—If the head
of a household leaves the household during a period
in which the household is ineligible to participate in
the food stamp program under subparagraph (B)—
‘‘(I) the household shall, if otherwise eligible,
become eligible to participate in the food stamp
program; and
‘‘(II) if the head of the household becomes the
head of another household, the household that
becomes headed by the individual shall become
ineligible to participate in the food stamp program
for the remaining period of ineligibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended by striking
‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Food Stamp Act of 1977 (7 U.S.C.
2029) is amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a household may
become ineligible under section 6(d)(1) to participate in the food
stamp program for failing to comply with this section.’’.
H. R. 3734—214
SEC. 816. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by adding at the end the following: ‘‘A
State that requested a waiver to lower the age specified in subpara-
graph (B) and had the waiver denied by the Secretary as of August
1, 1996, may, for a period of not more than 3 years, lower the
age of a dependent child that qualifies a parent or other member
of a household for an exemption under subparagraph (B) to between
1 and 6 years of age.’’.
SEC. 817. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) by striking ‘‘(4)(A) Not later than April 1, 1987, each’’
and inserting the following:
‘‘(4) EMPLOYMENT AND TRAINING.—
‘‘(A) IN GENERAL.—
‘‘(i) IMPLEMENTATION.—Each’’;
(2) in subparagraph (A)—
(A) by inserting ‘‘work,’’ after ‘‘skills, training,’’; and
(B) by adding at the end the following:
‘‘(ii) 
STATEWIDE
WORKFORCE
DEVELOPMENT
SYSTEM.—Each component of an employment and train-
ing program carried out under this paragraph shall
be delivered through a statewide workforce develop-
ment system, unless the component is not available
locally through such a system.’’;
(3) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: ‘‘, except
that the State agency shall retain the option to apply
employment requirements prescribed under this subpara-
graph to a program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms and conditions’’
and all that follows through ‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively;
(4) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the application’’
and all that follows through ‘‘30 days or less’’;
(B) in clause (ii), by striking ‘‘but with respect’’ and
all that follows through ‘‘child care’’; and
(C) in clause (iii), by striking ‘‘, on the basis of’’ and
all that follows through ‘‘clause (ii)’’ and inserting ‘‘the
exemption continues to be valid’’;
(5) in subparagraph (E), by striking the third sentence;
(6) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and inserting ‘‘(G)
The State’’; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking ‘‘(H)(i) The Secretary’’
and all that follows through ‘‘(ii) Federal funds’’ and inserting
‘‘(H) Federal funds’’;
(8) in subparagraph (I)(i)(II), by striking ‘‘, or was in oper-
ation,’’ and all that follows through ‘‘Social Security Act’’ and
H. R. 3734—215
inserting the following: ‘‘), except that no such payment or
reimbursement shall exceed the applicable local market rate’’;
(9)(A) by striking subparagraphs (K) and (L) and inserting
the following:
‘‘(K) LIMITATION ON FUNDING.—Notwithstanding any
other provision of this paragraph, the amount of funds
a State agency uses to carry out this paragraph (including
funds used to carry out subparagraph (I)) for participants
who are receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount of funds
the State agency used in fiscal year 1995 to carry
out this paragraph for participants who were receiving
benefits in fiscal year 1995 under a State program funded
under part A of title IV of the Act (42 U.S.C. 601 et
seq.).’’; and
(B) by redesignating subparagraphs (M) and (N) as sub-
paragraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated—
(A) by striking ‘‘(L)(i) The Secretary’’ and inserting
‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’
and all that follows through the end of paragraph (1) and inserting
the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment and training
programs, the Secretary shall reserve for allocation to State
agencies from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
‘‘(ii) for fiscal year 1997, $79,000,000;
‘‘(iii) for fiscal year 1998, $81,000,000;
‘‘(iv) for fiscal year 1999, $84,000,000;
‘‘(v) for fiscal year 2000, $86,000,000;
‘‘(vi) for fiscal year 2001, $88,000,000; and
‘‘(vii) for fiscal year 2002, $90,000,000.
‘‘(B) ALLOCATION.—The Secretary shall allocate the
amounts reserved under subparagraph (A) among the State
agencies using a reasonable formula (as determined by
the Secretary) that gives consideration to the population
in each State affected by section 6(o).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency shall promptly
notify the Secretary if the State agency determines
that the State agency will not expend all of the funds
allocated to the State agency under subparagraph (B).
‘‘(ii) REALLOCATION.—On notification under clause
(i), the Secretary shall reallocate the funds that the
State agency will not expend as the Secretary considers
appropriate and equitable.
‘‘(D) MINIMUM
ALLOCATION.—Notwithstanding sub-
paragraphs (A) through (C), the Secretary shall ensure
that each State agency operating an employment and train-
H. R. 3734—216
ing program shall receive not less than $50,000 for each
fiscal year.’’.
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting
before the period at the end the following: ‘‘, including the costs
for case management and casework to facilitate the transition from
economic dependency to self-sufficiency through work’’.
(d) REPORTS.—Section 16(h) of the Food Stamp Act of 1977
(7 U.S.C. 2025(h)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’ and inserting
‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 818. FOOD STAMP ELIGIBILITY.
The third sentence of section 6(f) of the Food Stamp Act of
1977 (7 U.S.C. 2015(f)) is amended by inserting ‘‘, at State option,’’
after ‘‘less’’.
SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015) is amended by adding at the end the following:
‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.—
‘‘(1) IN
GENERAL.—If a disqualification is imposed on a
member of a household for a failure of the member to perform
an action required under a Federal, State, or local law relating
to a means-tested public assistance program, the State agency
may impose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES
AND
PROCEDURES.—If a disqualification is
imposed under paragraph (1) for a failure of an individual
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 impose the same disqualification under
the food stamp program.
‘‘(3) APPLICATION
AFTER
DISQUALIFICATION
PERIOD.—A
member of a household disqualified under paragraph (1) may,
after the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant, except
that a prior disqualification under subsection (d) shall be consid-
ered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)) is amended—
(1) in paragraph (24), by striking ‘‘and’’ at the end;
(2) in paragraph (25), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in carrying out
section 6(i); and’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking
‘‘that is comparable to a requirement of paragraph (1)’’.
H. R. 3734—217
SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD
STAMP BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 819, is amended by adding at the end
the following:
‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP
BENEFITS.—An individual shall be ineligible to participate in the
food stamp program as a member of any household for a 10-
year period if the individual is found by a State agency to have
made, or is convicted in a Federal or State court of having made,
a fraudulent statement or representation with respect to the iden-
tity or place of residence of the individual in order to receive
multiple benefits simultaneously under the food stamp program.’’.
SEC. 821. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 820, is amended by adding at the end
the following:
‘‘(k) DISQUALIFICATION
OF FLEEING FELONS.—No member of
a household who is otherwise eligible to participate in the food
stamp program shall be eligible to participate in the program as
a member of that or any other household during any period during
which the individual is—
‘‘(1) fleeing to avoid prosecution, or custody or confinement
after conviction, under the law of the place from which the
individual is fleeing, for a crime, or attempt to commit a crime,
that is a felony under the law of the place from which the
individual is fleeing or that, in the case of New Jersey, is
a high misdemeanor under the law of New Jersey; or
‘‘(2) violating a condition of probation or parole imposed
under a Federal or State law.’’.
SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 821, is amended by adding at the end
the following:
‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT
AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), no natural or adoptive parent or
other individual (collectively referred to in this subsection as
‘the individual’) who is living with and exercising parental
control over a child under the age of 18 who has an absent
parent shall be eligible to participate in the food stamp program
unless the individual cooperates with the State agency admin-
istering the program established under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—Paragraph (1)
shall not apply to the individual if good cause is found for
refusing to cooperate, as determined by the State agency in
accordance with standards prescribed by the Secretary in con-
sultation with the Secretary of Health and Human Services.
H. R. 3734—218
The standards shall take into consideration circumstances
under which cooperation may be against the best interests
of the child.
‘‘(3) FEES.—Paragraph (1) shall not require the payment
of a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH CHILD SUP-
PORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), a putative or identified noncustodial
parent of a child under the age of 18 (referred to in this
subsection as ‘the individual’) shall not be eligible to participate
in the food stamp program if the individual refuses to cooperate
with the State agency administering the program established
under part D of title IV of the Social Security Act (42 U.S.C.
651 et seq.)—
‘‘(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
‘‘(A) GUIDELINES.—The Secretary, in consultation with
the Secretary of Health and Human Services, shall develop
guidelines on what constitutes a refusal to cooperate under
paragraph (1).
‘‘(B) PROCEDURES.—The State agency shall develop
procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to
cooperate under paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require the payment
of a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide safeguards
to restrict the use of information collected by a State agency
administering the program established under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes
for which the information is collected.’’.
SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 822, is amended by adding at the end
the following:
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
‘‘(1) IN
GENERAL.—At the option of a State agency, no
individual shall be eligible to participate in the food stamp
program as a member of any household during any month
that the individual is delinquent in any payment due under
a court order for the support of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply if—
‘‘(A) a court is allowing the individual to delay pay-
ment; or
‘‘(B) the individual is complying with a payment plan
approved by a court or the State agency designated under
part D of title IV of the Social Security Act (42 U.S.C.
651 et seq.) to provide support for the child of the
individual.’’.
H. R. 3734—219
SEC. 824. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015), as amended by section 823, is amended by adding
at the end the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this subsection,
the term ‘work program’ means—
‘‘(A) a program under the Job Training Partnership
Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the Trade Act
of 1974 (19 U.S.C. 2296); and
‘‘(C) a program of employment and training operated
or supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the
State, including a program under subsection (d)(4), other
than a job search program or a job search training program.
‘‘(2) WORK REQUIREMENT.—Subject to the other provisions
of this subsection, no individual shall be eligible to participate
in the food stamp program as a member of any household
if, during the preceding 36-month period, the individual
received food stamp benefits for not less than 3 months
(consecutive or otherwise) during which the individual did not—
‘‘(A) work 20 hours or more per week, averaged
monthly;
‘‘(B) participate in and comply with the requirements
of a work program for 20 hours or more per week, as
determined by the State agency;
‘‘(C) participate in and comply with the requirements
of a program under section 20 or a comparable program
established by a State or political subdivision of a
State; or
‘‘(D) receive benefits pursuant to paragraph (3), (4),
or (5).
‘‘(3) EXCEPTION.—Paragraph (2) shall not apply to an
individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or mentally unfit
for employment;
‘‘(C) a parent or other member of a household with
responsibility for a dependent child;
‘‘(D) otherwise exempt under subsection (d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN GENERAL.—On the request of a State agency,
the Secretary may waive the applicability of paragraph
(2) to any group of individuals in the State if the Secretary
makes a determination that the area in which the indi-
viduals reside—
‘‘(i) has an unemployment rate of over 10 per-
cent; or
‘‘(ii) does not have a sufficient number of jobs
to provide employment for the individuals.
‘‘(B) REPORT.—The Secretary shall report the basis for
a waiver under subparagraph (A) to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate.
H. R. 3734—220
‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) REGAINING
ELIGIBILITY.—An individual denied
eligibility under paragraph (2) shall regain eligibility to
participate in the food stamp program if, during a 30-
day period, the individual—
‘‘(i) works 80 or more hours;
‘‘(ii) participates in and complies with the require-
ments of a work program for 80 or more hours, as
determined by a State agency; or
‘‘(iii) participates in and complies with the require-
ments of a program under section 20 or a comparable
program established by a State or political subdivision
of a State.
‘‘(B) MAINTAINING
ELIGIBILITY.—An individual who
regains eligibility under subparagraph (A) shall remain
eligible as long as the individual meets the requirements
of subparagraph (A), (B), or (C) of paragraph (2).
‘‘(C) LOSS OF EMPLOYMENT.—
‘‘(i) IN GENERAL.—An individual who regained eligi-
bility under subparagraph (A) and who no longer meets
the requirements of subparagraph (A), (B), or (C) of
paragraph (2) shall remain eligible for a consecutive
3-month period, beginning on the date the individual
first notifies the State agency that the individual no
longer meets the requirements of subparagraph (A),
(B), or (C) of paragraph (2).
‘‘(ii) LIMITATION.—An individual shall not receive
any benefits pursuant to clause (i) for more than a
single 3-month period in any 36-month period.
‘‘(6) OTHER PROGRAM RULES.—Nothing in this subsection
shall make an individual eligible for benefits under this Act
if the individual is not otherwise eligible for benefits under
the other provisions of this Act.’’.
(b) TRANSITION PROVISION.—The term ‘‘preceding 36-month
period’’ in section 6(o) of the Food Stamp Act of 1977, as added
by subsection (a), does not include, with respect to a State, any
period before the earlier of—
(1) the date the State notifies recipients of food stamp
benefits of the application of section 6(o); or
(2) the date that is 3 months after the date of enactment
of this Act.
SEC. 825. ENCOURAGEMENT OF 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 ‘‘(i)(1)(A) Any State’’ and all that follows
through the end of paragraph (1) and inserting the following:
‘‘(i) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(1) IN GENERAL.—
‘‘(A) IMPLEMENTATION.—Not later than October 1, 2002,
each State agency shall implement an electronic benefit
transfer system under which household benefits determined
under section 8(a) or 26 are issued from and stored in
a central databank, unless the Secretary provides a waiver
for a State agency that faces unusual barriers to
implementing an electronic benefit transfer system.
H. R. 3734—221
‘‘(B) TIMELY IMPLEMENTATION.—Each State agency is
encouraged to implement an electronic benefit transfer sys-
tem under subparagraph (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 generally accepted standard
operating rules based on—
‘‘(i) commercial electronic funds transfer tech-
nology;
‘‘(ii) the need to permit interstate operation and
law enforcement monitoring; and
‘‘(iii) the need to permit monitoring and investiga-
tions by authorized law enforcement 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 inserting 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 identification numbers, photographic
identification on electronic benefit transfer cards, and other
measures to protect against fraud and abuse; and
‘‘(ii) effective not later than 2 years after the date
of enactment of this clause, to the extent practicable, meas-
ures that permit a system to differentiate items of food
that may be acquired with an allotment 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.—Regulations issued by
the Secretary regarding the replacement of benefits and liability
for replacement of benefits under an electronic benefit transfer
system shall be similar to the regulations in effect for a paper-
based food stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agency may collect
a charge for replacement of an electronic benefit transfer card
by reducing the monthly allotment of the household receiving
the replacement card.
‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.—
‘‘(A) IN GENERAL.—A State agency may require that
an electronic benefit card contain a photograph of 1 or
more members of a household.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a State agency
requires a photograph on an electronic benefit card under
subparagraph (A), the State agency shall establish proce-
dures to ensure that any other appropriate member of
H. R. 3734—222
the household or any authorized representative of the
household may utilize the card.
‘‘(10) APPLICABLE
LAW.—Disclosures, protections, respon-
sibilities, and remedies established by the Federal Reserve
Board under section 904 of the Electronic Fund Transfer Act
(15 U.S.C. 1693b) shall not apply to benefits under this Act
delivered through any electronic benefit transfer system.
‘‘(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELEC-
TRONIC BENEFIT TRANSFER SYSTEMS.—
‘‘(A) DEFINITIONS.—In this paragraph:
‘‘(i) AFFILIATE.—The term ‘affiliate’ has the mean-
ing provided the term in section 2(k) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(k)).
‘‘(ii) COMPANY.—The term ‘company’ has the mean-
ing provided the term in section 106(a) of the Bank
Holding Company Act Amendments of 1970 (12 U.S.C.
1971), but shall not include a bank, a bank holding
company, or any subsidiary of a bank holding company.
‘‘(iii) ELECTRONIC
BENEFIT
TRANSFER
SERVICE.—
The term ‘electronic benefit transfer service’ means
the processing of electronic transfers of household
benefits, determined under section 8(a) or 26, if the
benefits are—
‘‘(I) issued from and stored in a central
databank;
‘‘(II) electronically accessed by household mem-
bers at the point of sale; and
‘‘(III) provided by a Federal or State govern-
ment.
‘‘(iv) POINT-OF-SALE SERVICE.—The term ‘point-of-
sale service’ means any product or service related to
the electronic authorization and processing of pay-
ments for merchandise at a retail food store, including
credit 
or 
debit 
card 
services, 
automated 
teller
machines, point-of-sale terminals, or access to on-line
systems.
‘‘(B) RESTRICTIONS.—A company may not sell or provide
electronic benefit transfer services, or fix or vary the consid-
eration for electronic benefit transfer services, on the condi-
tion or requirement that the customer—
‘‘(i) obtain some additional point-of-sale service
from the company or an affiliate 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.
‘‘(C) CONSULTATION
WITH
THE
FEDERAL
RESERVE
BOARD.—Before promulgating regulations or interpreta-
tions of regulations to carry out this paragraph, the Sec-
retary shall consult with the Board of Governors of the
Federal Reserve System.’’.
(b) SENSE
OF CONGRESS.—It is the sense of Congress 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 manner that is compatible with electronic benefit
transfer systems operated by other States.
H. R. 3734—223
SEC. 826. 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. 827. 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. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSE-
HOLDS.
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 house-
hold 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 expedited 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. 829. 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 BENEFITS.—
‘‘(1) IN GENERAL.—If the benefits of a household 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 perform an action required under the law or
program, for the duration of the reduction—
‘‘(A) the household may not receive an increased allot-
ment 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 allotment of
the household by not more than 25 percent.
‘‘(2) RULES AND PROCEDURES.—If the allotment of a house-
hold 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. 830. 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 representative of the
individual for a period that is less than 1 month; and
H. R. 3734—224
‘‘(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. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL 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 participation in the food stamp program unless
an authorized employee of the Department of Agriculture, a des-
ignee 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. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a))
is amended by adding at the end the following:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall estab-
lish specific time periods during which authorization to accept
and redeem coupons, or to redeem benefits through an elec-
tronic benefit transfer system, shall be valid under the food
stamp program.’’.
SEC. 
833. 
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 documents,’’ after ‘‘submit
information’’; and
(2) by inserting after the first sentence the following: ‘‘The
regulations may require retail food stores and wholesale food
concerns to provide written authorization for the Secretary
to verify all relevant 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. 834. 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 following: ‘‘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 period under
the preceding sentence, including permanent disqualification, that
reflects the severity of the basis of the denial.’’.