H. R. 4—205
State’s payment (as determined under this subsection) for such
year.
‘‘(5) INDIAN TRIBES.—The Secretary shall reserve not more
than 1 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.
‘‘(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. 804. 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. 805. 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)—
(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
H. R. 4—206
(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) by striking subparagraph (F);
(vii) in subparagraph (G)—
(I) by redesignating such subparagraph as
subparagraph (F);
(II) by striking ‘‘Provide assurances’’ and
inserting ‘‘Certify’’; and
(III) by striking ‘‘as described in subparagraph
(F)’’; and
(viii) by striking subparagraphs (H), (I), and (J)
and inserting the following:
‘‘(G) 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
through work activities to transition off of such assistance
program, and families who 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)—
H. R. 4—207
(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 sliding fee scale basis, activi-
ties that improve the quality or availability of
such services, and any other activity that the State
deems appropriate to realize any of the goals speci-
fied 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 3 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 this subchapter in each fiscal year
is used to provide assistance to low-income working families
other than families described in paragraph (2)(F).’’; 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. 806. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b) (42 U.S.C. 9858d(b)) is amended—
(1) in paragraph (1), by striking ‘‘No’’ and inserting ‘‘Except
as provided for in section 658O(c)(6), no’’; and
(2) in paragraph (2), by striking ‘‘referred to in section
658E(c)(2)(F)’’.
SEC. 807. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as follows:
‘‘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 3 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
H. R. 4—208
quality and availability of child care (such as resource and referral
services).’’.
SEC. 808. REPEAL 
OF 
EARLY 
CHILDHOOD 
DEVELOPMENT 
AND
BEFORE- AND AFTER-SCHOOL CARE REQUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
SEC. 809. 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. 810. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by striking
‘‘expended’’ and inserting ‘‘obligated’’.
SEC. 811. 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 1 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;
‘‘(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);
H. R. 4—209
‘‘(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 submit-
ted.’’; 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. 812. 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
(3) by striking ‘‘Education and Labor’’ and inserting ‘‘Eco-
nomic and Educational Opportunities’’.
SEC. 813. 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’’;
H. R. 4—210
(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 ‘‘3 percent’’ and insert-
ing ‘‘1 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
tribes or organizations that have submitted applications under
subsection (c) in accordance with their respective needs.’’.
SEC. 814. 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);
H. R. 4—211
(3) in paragraph (4)(B), by striking ‘‘75 percent’’ and insert-
ing ‘‘85 percent’’;
(4) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling (if such pro-
vider 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. 815. REPEALS.
(a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP ASSISTANCE
ACT OF 1985.—Title VI of the Human Services Reauthorization
Act of 1986 (42 U.S.C. 10901–10905) is repealed.
(b) STATE DEPENDENT CARE DEVELOPMENT GRANTS ACT.—Sub-
chapter E of chapter 8 of subtitle A of title VI of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C. 9871–9877) is repealed.
(c) PROGRAMS
OF NATIONAL SIGNIFICANCE.—Title X of the
Elementary and Secondary Education Act of 1965, as amended
by Public Law 103–382 (108 Stat. 3809 et seq.), is amended—
(1) in section 10413(a) by striking paragraph (4),
(2) in section 10963(b)(2) by striking subparagraph (G),
and
(3) in section 10974(a)(6) by striking subparagraph (G).
(d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.—
Section 9205 of the Native Hawaiian Education Act (Public Law
103–382; 108 Stat. 3794) is repealed.
SEC. 816. 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 803(a) shall
take effect on the date of enactment of this Act.
H. R. 4—212
TITLE IX—CHILD NUTRITION
PROGRAMS
Subtitle A—National School Lunch Act
SEC. 901. 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, fifth, and eighth sentences;
(3) by redesignating the first through sixth sentences, as
amended by paragraph (1), as subsections (a) through (f),
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 Act (42 U.S.C.
1760(d)) is amended by adding at the end the following:
‘‘(9) ‘child’ includes an individual, regardless of age, who—
‘‘(A) is determined by a State educational agency, in
accordance with regulations prescribed by the Secretary,
to have 1 or more mental or physical disabilities; and
‘‘(B) 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 established for individ-
uals with mental or physical disabilities.
No institution that is not otherwise eligible to participate in
the program under section 17 shall be considered eligible
because of this paragraph.’’.
SEC. 902. 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) ELIGIBILITY
GUIDELINES.—Section 9(b) of the Act is
amended—
(1) in paragraph (2)—
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(2) in paragraph (5), by striking the third sentence; and
H. R. 4—213
(3) in paragraph (6), by striking ‘‘paragraph (2)(C)’’ and
inserting ‘‘paragraph (2)(B)’’.
(c) UTILIZATION OF AGRICULTURAL COMMODITIES.—Section 9(c)
of the Act is amended by striking the second, fourth, and sixth
sentences.
(d) CONFORMING AMENDMENT.—The last sentence of section
9(d)(1) of the Act is amended by striking ‘‘subsection (b)(2)(C)’’
and inserting ‘‘subsection (b)(2)(B)’’.
(e) NUTRITIONAL INFORMATION.—Section 9(f) of the Act 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
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),
by striking the first sentence and inserting the following:
‘‘Schools may use any reasonable approach to meet the require-
ments of this paragraph, including any approach described
in paragraph (3).’’.
(f) USE OF RESOURCES.—Section 9 of the Act is amended by
striking subsection (h).
SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42 U.S.C.
1758(b)(2)), as amended by section 902(b)(1), is further amended
by adding at the end the following:
‘‘(C) FREE AND REDUCED PRICE POLICY STATEMENT.—
After the initial submission, a school 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
H. R. 4—214
of the school. A routine change in the policy of a school,
such as an annual adjustment of the income eligibility
guidelines for free and reduced price meals, shall not be
sufficient cause for requiring the school to submit a policy
statement.’’.
SEC. 904. SPECIAL ASSISTANCE.
(a) FINANCING BASED ON NEED.—Section 11(b) of the National
School Lunch Act (42 U.S.C. 1759a(b)) is amended—
(1) in the second sentence, by striking ‘‘, within’’ and all
that follows through ‘‘all States,’’; and
(2) by striking the third sentence.
(b) APPLICABILITY OF OTHER PROVISIONS.—Section 11 of the
Act 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. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) ACCOUNTS AND RECORDS.—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 Act
is amended by striking ‘‘neither the Secretary nor the State shall’’
and inserting ‘‘the Secretary shall not’’.
(c) DEFINITIONS.—Section 12(d) of the Act, as amended by sec-
tion 901(b), is further 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 Act is amended by striking ‘‘the Trust Territory
of the Pacific Islands,’’.
(e) EXPEDITED
RULEMAKING.—Section 12(k) of the Act is
amended—
(1) by striking paragraphs (1), (2), and (5); and
(2) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively.
(f) WAIVER.—Section 12(l) of the Act is amended—
(1) in paragraph (2)—
(A) by striking ‘‘(A)’’;
(B) in clause (iii), by adding ‘‘and’’ at the end;
(C) in clause (iv), by striking the semicolon at the
end and inserting a period;
(D) by striking clauses (v) through (vii);
(E) by striking subparagraph (B); and
(F) by redesignating clauses (i) through (iv), as so
amended, as subparagraphs (A) through (D), respectively;
H. R. 4—215
(2) in paragraph (3)—
(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 subparagraphs (B), (D), (F), (H), (J),
(K), and (L);
(C) by redesignating subparagraphs (C), (E), (G), (I),
(M), and (N) as subparagraphs (B) through (G), respec-
tively; and
(D) in subparagraph (F), 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.
(g) FOOD
AND NUTRITION PROJECTS.—Section 12 of the Act
is amended by striking subsection (m).
SEC. 906. 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 insert ‘‘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 Act 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) $1.82 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 each January 1 to the nearest
lower cent increment in accordance with the 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 Consumers published by the
Bureau of Labor Statistics of the Department of Labor.
H. R. 4—216
Each adjustment shall be based on the unrounded adjust-
ment for the prior 12-month period.’’.
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2)
of the Act 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 Act is amended—
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
(i) by striking ‘‘, and such higher education institu-
tions,’’; and
(ii) by striking ‘‘without application’’ and inserting
‘‘upon showing residence in areas in which poor eco-
nomic conditions exist or on the basis of income eligi-
bility statements for children enrolled in the program’’;
and
(B) by adding at the end the following: ‘‘The higher
education institutions referred to in the preceding sentence
shall be eligible to participate in the program under this
paragraph without application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe need’’; and
(4) by redesignating subparagraphs (B) through (E), as
so amended, as subparagraphs (A) through (D), respectively.
(e) ADVANCE PROGRAM PAYMENTS.—Section 13(e)(1) of the Act
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 Act is amended—
(1) by redesignating the first through seventh sentences
as paragraphs (1) through (7), respectively;
(2) by striking paragraph (3), as redesignated by paragraph
(1);
(3) in paragraph (4), as redesignated by paragraph (1),
by striking ‘‘the first sentence’’ and inserting ‘‘paragraph (1)’’;
(4) in paragraph (6), as redesignated by paragraph (1),
by striking ‘‘that bacteria levels’’ and all that follows through
the period at the end and inserting ‘‘conformance with stand-
ards set by local health authorities.’’; and
(5) by redesignating paragraphs (4) through (7), as redesig-
nated by paragraph (1), as paragraphs (3) through (6),
respectively.
(g) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the
Act, as amended by subsection (f), is further 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 not more than 1 item of a meal that the child does
not intend to consume. 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. R. 4—217
(h) HEALTH DEPARTMENT INSPECTIONS.—Section 13(k) of the
Act is amended by striking paragraph (3).
(i) FOOD SERVICE MANAGEMENT COMPANIES.—Section 13(l) of
the Act is amended—
(1) by striking paragraph (4);
(2) in paragraph (5), by striking the first sentence; and
(3) by redesignating paragraph (5), as so amended, as para-
graph (4).
(j) RECORDS.—The second sentence of section 13(m) of the Act
is amended by striking ‘‘at all times be available’’ and inserting
‘‘be available at any reasonable time’’.
(k) REMOVING MANDATORY NOTICE TO INSTITUTIONS.—Section
13(n)(2) of the Act is amended by striking ‘‘, and its plans and
schedule for informing service institutions of the availability of
the program’’.
(l) PLAN.—Section 13(n) of the Act 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 so
amended, as paragraphs (3) through (6), respectively.
(m) MONITORING AND TRAINING.—Section 13(q) of the Act 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 so amended, as para-
graph (2).
(n) EXPIRED PROGRAM.—Section 13 of the Act is amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r), as so amended,
as subsections (p) and (q), respectively.
(o) EFFECTIVE DATE.—The amendments made by subsection
(b) shall become effective on January 1, 1996.
SEC. 907. 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) IMPACT STUDY
AND PURCHASING PROCEDURES.—Section
14(d) of the Act is amended by striking the second and third
sentences.
(c) CASH COMPENSATION FOR PILOT PROJECT SCHOOLS.—Section
14(g) of the Act is amended by striking paragraph (3).
(d) STATE ADVISORY COUNCIL.—Section 14 is amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g), as so amended,
as subsections (e) and (f), respectively.
SEC. 908. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended—
(1) in the section heading, by striking ‘‘AND ADULT’’; and
H. R. 4—218
(2) in the first sentence of subsection (a), by striking ‘‘initi-
ate, 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 Act (42 U.S.C. 1766(a)) is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
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 1
employee, the organization does not base payments to an
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 Act 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 Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking
‘‘two meals and two supplements or three meals and one supple-
ment’’ and inserting ‘‘two meals and one supplement’’.
(e) IMPROVED TARGETING
OF DAY CARE HOME REIMBURSE-
MENTS.—
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Sec-
tion 17(f)(3) of the Act is amended by striking ‘‘(3)(A) Institu-
tions’’ 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.—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
H. R. 4—219
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
or organization of the home under regulations
established by the Secretary.
‘‘(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
subclause (IV), the reimbursement factors applied
to a home referred to in subclause (II) shall be
the factors in effect on the date of enactment of
this subclause.
‘‘(IV) ADJUSTMENTS.—The reimbursement fac-
tors under this subparagraph shall be adjusted
on August 1, 1996, 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 subpara-
graph 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 90 cents for
lunches and suppers, 25 cents for breakfasts,
and 10 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-
H. R. 4—221
‘‘(cc) FACTORS
FOR
CHILDREN
ONLY.—A
family or group day care home may elect to
receive the reimbursement factors prescribed
under clause (ii)(III) solely for the children
participating in a program referred to in item
(bb) if the home elects not to have income
statements collected from parents or other
caretakers.
‘‘(IV) SIMPLIFIED MEAL COUNTING AND REPORT-
ING PROCEDURES.—The Secretary shall prescribe
simplified meal counting and reporting procedures
for use by a family or group day care home that
elects to claim the factors under subclause (II)
and by a family or group day care home sponsoring
organization that sponsors the home. The proce-
dures the Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual percentage for
each home of the number of meals served that
are to be reimbursed in accordance with the
reimbursement factors prescribed under clause
(ii)(III) and an annual percentage of the num-
ber of meals served that are to be reimbursed
in accordance with the reimbursement factors
prescribed under subclause (I), based on the
family income of children enrolled in the home
in a specified month or other period.
‘‘(bb) Placing a home into 1 of 2 or more
reimbursement categories annually based on
the percentage of children in the home whose
households have incomes that meet the income
eligibility guidelines under section 9, with each
such reimbursement category carrying a set
of reimbursement factors such as the factors
prescribed under clause (ii)(III) or subclause
(I) or factors established within the range of
factors prescribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified procedures as
the Secretary may prescribe.
‘‘(V) MINIMUM VERIFICATION REQUIREMENTS.—
The Secretary may establish any necessary mini-
mum verification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY
OR
GROUP
DAY
CARE
HOMES.—Section 17(f)(3) of the Act is
amended by adding at the end the following:
‘‘(D) GRANTS
TO
STATES
TO
PROVIDE
ASSISTANCE
TO
FAMILY OR GROUP DAY CARE HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) RESERVATION.—From amounts made avail-
able to carry out this section, the Secretary shall
reserve $5,000,000 of the amount made available
for fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary shall use the
funds made available under subclause (I) to pro-
vide grants to States for the purpose of providing—
H. R. 4—222
‘‘(aa) assistance, including grants, to fam-
ily and day care home sponsoring organiza-
tions and other appropriate organizations, in
securing and providing training, materials,
automated data processing assistance, and
other assistance for the staff of the sponsoring
organizations; and
‘‘(bb) training and other assistance to fam-
ily and group day care homes in the
implementation of the amendment to subpara-
graph (A) made by section 913(e)(1) of the
Personal Responsibility and Work Opportunity
Act of 1995.
‘‘(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 1994 as a percentage of the number
of all family day care homes participating in the
program during fiscal year 1994.
‘‘(iii) RETENTION
OF
FUNDS.—Of the amount of
funds made available to a State for fiscal year 1996
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 Act, as
amended by paragraph (2), is further 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 care food
program under this section data from the most recent
decennial census survey or other appropriate census
survey for which the data are available showing which
areas in the State meet the requirements of subpara-
graph (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
H. R. 4—223
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
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 Act
is amended by inserting ‘‘except as provided in subsection (f)(3),’’
after ‘‘For purposes of this section,’’ each place it appears in
paragraphs (1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the third and
fourth sentences; and
(B) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘(i)’’;
(II) in the first sentence, by striking ‘‘and
expansion funds’’ and all that follows through
‘‘rural areas’’;
(III) by striking the second sentence; and
(IV) by striking ‘‘and expansion funds’’ each
place it appears; and
(ii) by striking clause (ii); and
(2) by striking paragraph (4).
(g) NUTRITIONAL REQUIREMENTS.—Section 17(g)(1) of the Act
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 BUR-
DEN.—Section 17 of the Act is amended by striking subsection
(k) and inserting the following:
‘‘(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
H. R. 4—224
State in developing plans to fulfill the requirements of this sub-
section.’’.
(i) RECORDS.—The second sentence of section 17(m) of the Act
is amended by striking ‘‘at all times’’ and inserting ‘‘at any reason-
able time’’.
(j) MODIFICATION
OF ADULT CARE FOOD PROGRAM.—Section
17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘adult day care centers’’ and inserting
‘‘day care centers for chronically impaired disabled per-
sons’’; and
(B) by striking ‘‘to persons 60 years of age or older
or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’ and inserting
‘‘day care center for chronically impaired disabled per-
sons’’; and
(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and inserting ‘‘per-
sons’’; and
(III) by striking ‘‘or persons 60 years of age
or older’’; and
(B) in subparagraph (B), by striking ‘‘adult day care
services’’ and inserting ‘‘day care services for chronically
impaired disabled persons’’.
(k) UNNEEDED PROVISION.—Section 17 of the Act is amended
by striking subsection (q).
(l) CONFORMING AMENDMENTS.—
(1) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is
amended—
(A) in the subsection heading, by striking ‘‘AND ADULT’’;
and
(B) in paragraph (1), by striking ‘‘and adult’’.
(2) Section 18(e)(3)(B) of the Act (42 U.S.C. 1769(e)(3)(B))
is amended by striking ‘‘and adult’’.
(3) Section 25(b)(1)(C) of the Act (42 U.S.C. 1769f(b)(1)(C))
is amended by striking ‘‘and adult’’.
(4) Section 3(1) of the Healthy Meals for Healthy Americans
Act of 1994 (Public Law 103–448) is amended by striking ‘‘and
adult’’.
(m) 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.
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSE-
MENTS.—The amendments made by paragraphs (1), (3), and
(4) of subsection (e) shall become effective on August 1, 1996.
(3) REGULATIONS.—
(A) INTERIM REGULATIONS.—Not later than February
1, 1996, the Secretary 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)).
H. R. 4—225
(B) FINAL
REGULATIONS.—Not later than August 1,
1996, the Secretary shall issue final regulations to imple-
ment the provisions of law referred to in subparagraph
(A).
(n) 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 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 care food program under section 17 of the National
School Lunch Act (42 U.S.C. 1766) shall submit to the Secretary
data on—
(A) the number of family day care homes participating
in the program on July 31, 1996, and July 31, 1997;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on July 31,
1996, and July 31, 1997; and
(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 effective date of this section, the Secretary 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 Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 909. 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
H. R. 4—227
less than 130 percent, and not more than 185 percent, of
the poverty line.
‘‘(5) POVERTY LINE.—The term ‘poverty line’ has the mean-
ing provided in section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)).
‘‘(6) STATE PLAN.—The term ‘State plan’ means a State
plan submitted to and approved by the Secretary under sub-
section (d).
‘‘(b) ESTABLISHMENT.—The Secretary shall establish an optional
block grant demonstration program in not more than 1 State in
each of the 7 Food and Consumer Service regions of the United
States Department of Agriculture to make grants to States to carry
out a school lunch and breakfast program for all schoolchildren
that—
‘‘(1) safeguards the health and well-being of children
through the provision of nutritious, well-balanced meals in
schools;
‘‘(2) provides children who are low-income students access
to nutritious free meals;
‘‘(3) provides children who are needy students access to
nutritious low-cost meals;
‘‘(4) ensures that children are receiving the nutrition
required to take advantage of educational opportunities;
‘‘(5) emphasizes foods that are naturally good sources of
vitamins and minerals over foods that have been enriched
with vitamins and minerals and are high in fat or sodium
content;
‘‘(6) provides a comprehensive school nutrition program
for children, which may include offering free meals to all chil-
dren at a school;
‘‘(7) minimizes paperwork burdens and administrative
expenses for participating schools; and
‘‘(8) at the option of the State, provides meal supplements
to children in afterschool care.
‘‘(c) ELECTION BY THE STATE.—
‘‘(1) IN GENERAL.—A State with respect to which an applica-
tion submitted under subsection (d)(1) is approved may partici-
pate in the block grant demonstration program.
‘‘(2) ELECTION IRREVOCABLE.—A State with respect to which
an application under paragraph (1) is approved may not subse-
quently reverse the decision of the State to participate in the
block grant demonstration program until the termination of
the program under subsection (n).
‘‘(3) BLOCK GRANT DEMONSTRATION PROGRAM EXCLUSIVE.—
Except as otherwise provided in this section, a State that
is participating in the block grant demonstration program shall
not be subject to, or receive any benefit under—
‘‘(A) the school lunch program established under this
Act;
‘‘(B) the school breakfast program established under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773); or
‘‘(C) the commodity distribution programs established
under sections 6 and 14.
‘‘(4) MAINTENANCE OF SERVICE TO LOW-INCOME AND NEEDY
STUDENTS.—
H. R. 4—228
‘‘(A) PROPORTIONS OF STUDENTS SERVED.—A State shall
ensure that, during each year in which the State is partici-
pating in the block grant demonstration program, the
proportions of school lunches and school breakfasts served
to low-income students and needy students under the block
grant demonstration program are not less than the propor-
tions of school lunches and school breakfasts, respectively,
served to low-income students and needy students in the
last year of participation by the State in the school lunch
program established under the other sections of this Act
or the school breakfast program established under section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),
respectively.
‘‘(B) PROPORTIONS OF FUNDS USED TO PROVIDE SERV-
ICE.—A State shall ensure that, during each year in which
the State is participating in the block grant demonstration
program, the proportions of funds used by the State to
provide school lunches and school breakfasts for low-income
students and needy students under the block grant dem-
onstration program are not less than the proportions of
State funds used to provide school lunches and school
breakfasts, respectively, for low-income students and needy
students in the last year of participation by the State
in the school lunch program established under the other
sections of this Act or the school breakfast program estab-
lished under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773), respectively.
‘‘(d) APPLICATION AND STATE PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive assistance
under the block grant demonstration program, a State shall
prepare and submit to the Secretary an application at such
time, in such manner, and containing such information as
the Secretary shall by regulation reasonably require, includ-
ing—
‘‘(A) an assurance that the State will comply with
the requirements of this section;
‘‘(B) a State plan that meets the requirements of para-
graph (2);
‘‘(C) an assurance that the State will comply with
the requirements of the State plan under paragraph (2);
and
‘‘(D) an assurance that the State will submit an annual
report in accordance with paragraph (4).
‘‘(2) REQUIREMENTS OF STATE PLAN.—
‘‘(A) USE OF BLOCK GRANT DEMONSTRATION PROGRAM
FUNDS.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the State
plan shall provide that the State shall use the amounts
provided to the State for each fiscal year under the
block grant demonstration program to provide assist-
ance to schools to provide lunches and breakfasts,
including—
‘‘(I) free lunches and breakfasts in accordance
with subparagraph (E) to low-income students at
the schools;
‘‘(II) low-cost lunches and breakfasts to needy
students at the schools;
H. R. 4—229
‘‘(III) at the option of the State, lunches and
breakfasts to all students; and
‘‘(IV) at the option of the State, meal supple-
ments.
‘‘(ii) ADMINISTRATIVE EXPENSES.—A State may not
use the amounts described in clause (i) for the payment
of State administrative expenses incurred in carrying
out the block grant demonstration program.
‘‘(iii) NONPROFIT
OPERATION.—The school lunch
and school breakfast program under the block grant
demonstration program shall be operated on a non-
profit basis.
‘‘(iv) MAINTENANCE OF STATE EFFORT.—For each
fiscal year for which the State participates in the block
grant demonstration program, the amount of the State
revenues (excluding State revenues derived from the
operation of the program) appropriated or used specifi-
cally for block grant demonstration program purposes
(other than any State revenues expended for salaries
and administrative expenses of the program at the
State level) shall be not less than the amount of such
State revenues made available for the preceding fiscal
year under this section or for the school lunch program
under the other sections of this Act and the school
breakfast program under section 4 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1773), as appropriate.
‘‘(B) NUTRITIONAL REQUIREMENTS.—
‘‘(i) PROHIBITION ON ADDITIONAL REQUIREMENTS.—
The Secretary may not impose any additional nutri-
tional requirement beyond the requirements specified
in this subparagraph.
‘‘(ii) REQUIREMENTS.—The State plan shall provide
for the establishment and implementation of minimum
nutritional requirements for meals provided under the
block grant demonstration program based on the most
recent tested nutritional research available, except that
the requirements shall not prohibit the substitution
of foods to accommodate the medical or other special
dietary needs of individual students.
‘‘(iii) 
DIETARY
GUIDELINES.—The 
nutritional
requirements established under clause (ii) shall be
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).
‘‘(iv) RECOMMENDED
DIETARY
ALLOWANCES.—The
nutritional requirements established under clause (ii)
shall require that meals provided under the block grant
demonstration program provide, on the average over
each week, at least—
‘‘(I) with respect to school lunches, one-third
of the daily recommended dietary allowance estab-
lished by the Food and Nutrition Board of the
National Research Council of the National Acad-
emy of Sciences; and
‘‘(II) with respect to school breakfasts, one-
quarter of the daily recommended dietary allow-
H. R. 4—230
ance established by the Food and Nutrition Board
of the National Research Council of the National
Academy of Sciences.
‘‘(C) REVIEW
OF
MEAL
OPERATIONS.—The State plan
shall provide that the State shall review the meal oper-
ations of each school food authority participating in the
block grant demonstration program not later than 2 years,
and not later than 4 years, after the implementation of
the block grant demonstration program in the State.
‘‘(D) GROUPS SERVED.—Subject to subsection (c)(4), the
State plan shall describe how the block grant demonstra-
tion program will serve specific groups of students in the
State.
‘‘(E) ELIGIBILITY LIMITATIONS.—
‘‘(i) IN GENERAL.—Subject to clauses (ii) and (iii),
the State plan shall describe the income eligibility
limitations established for the receipt of free meals
and low-cost meals under the block grant demonstra-
tion program.
‘‘(ii) ELIGIBILITY FOR FREE MEALS.—
‘‘(I) LOW-INCOME
STUDENTS.—A low-income
student who attends a school participating in the
block grant demonstration program shall be
eligible to receive free school lunches and school
breakfasts under the block grant demonstration
program.
‘‘(II) OTHER STUDENTS.—The State plan may
provide that a student who is a member of a
family whose income is equal to or more than
130 percent of the poverty line and who attends
a school participating in the block grant dem-
onstration program shall be eligible to receive free
school lunches and school breakfasts under the
block grant demonstration program.
‘‘(iii) ELIGIBILITY FOR LOW-COST MEALS.—
‘‘(I) IN GENERAL.—The State plan shall provide
that a needy student who attends a school partici-
pating in the block grant demonstration program
shall be eligible to receive a low-cost meal under
the block grant demonstration program.
‘‘(II) PRICE.—A low-cost meal under subclause
(I) shall be offered to a needy student at a price
that is less than the price charged to a student
who is a member of a family whose income is
more than 185 percent of the poverty line.
‘‘(III) GROUP ELIGIBILITY CRITERIA.—Subject to
the other provisions of this subparagraph and to
subsection (c)(4), each State may develop group
eligibility criteria based on census or other
accurate data that measures the income of families
with school-aged children in a school district or
based on prior year participation.
‘‘(F) OPPORTUNITY
FOR
CONTINUED
PARTICIPATION.—
The State plan shall provide that each school participating
in the school lunch program under the other sections of
this Act or the school breakfast program under section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),
H. R. 4—231
or both, on the day before the effective date of this subpara-
graph shall be provided the opportunity to participate in
the block grant demonstration program. Such continued
participation shall include the opportunity for the school
to provide the meal or combination of meals offered prior
to the effective date of this subparagraph.
‘‘(G) 
PROVISION
OF
COMMODITIES
TO
CASH/CLOC
SCHOOLS.—
‘‘(i) IN GENERAL.—A State plan may not require
a school district, nonprofit private school, or Depart-
ment of Defense domestic dependents’ school described
in clause (ii), except on request of the school district,
private school, or domestic dependents’ school, as the
case may be, to accept commodities for use in the
school lunch or school breakfast program of the school
district, private school, or domestic dependents’ school
in accordance with this section. The school district,
private school, or domestic dependents’ school may con-
tinue to receive commodity assistance in the form that
the school received the assistance as of January 1,
1987.
‘‘(ii) SCHOOLS.—Clause (i) applies to a school dis-
trict, nonprofit private school, or Department of
Defense domestic dependents’ school, as the case may
be, that as of January 1, 1987, was receiving all cash
payments or all commodity letters of credit in lieu
of entitlement commodities for the school lunch pro-
gram of the school district, private school, or domestic
dependents’ school under section 18(b).
‘‘(H) PRIVACY.—
‘‘(i) IN
GENERAL.—The State plan shall provide
for safeguarding and restricting the use and disclosure
of information about any student receiving assistance
under the block grant demonstration program.
‘‘(ii) RECIPIENTS OF FREE OR LOW-COST MEALS.—
In providing assistance to schools to serve meals under
the block grant demonstration program, the State shall
ensure that the schools do not—
‘‘(I) physically segregate students eligible to
receive free or low-cost meals on the basis of the
eligibility;
‘‘(II) provide for the overt identification of the
students by special tokens or tickets, announced
or published list of names, or other means; or
‘‘(III) otherwise discriminate against the stu-
dents.
‘‘(I) OTHER INFORMATION.—The State plan shall contain
such other information as may be reasonably required by
the Secretary.
‘‘(3) APPROVAL OF APPLICATION AND STATE PLAN.—The Sec-
retary shall approve an application and State plan that meet
the requirements of this section.
‘‘(4) REPORT.—The Secretary may provide a grant under
the block grant demonstration program to a State for a fiscal
year only if the State agrees that the State will submit, for
the fiscal year, a report to the Secretary describing—
H. R. 4—232
‘‘(A) the number of students receiving assistance under
the block grant demonstration program;
‘‘(B) the different types of assistance provided to the
students;
‘‘(C) the extent to which the assistance was effective
in achieving the goals described in subsection (b);
‘‘(D) the total number of meals served to students
under the block grant demonstration program, including
the percentage of the meals served to low-income students
and needy students;
‘‘(E) the standards and methods that the State is using
to ensure the nutritional quality of the meals served under
the block grant demonstration program; and
‘‘(F) any other information that may be reasonably
required by the Secretary.
‘‘(e) USE OF FUNDS.—Funds made available under this section
may be expended only for—
‘‘(1) school lunches, school breakfasts, and meal supple-
ments; and
‘‘(2) the purchase of equipment needed to improve school
food services under the block grant demonstration program.
‘‘(f) ENFORCEMENT.—
‘‘(1) REVIEW OF COMPLIANCE WITH STATE PLAN.—The Sec-
retary shall review and monitor State compliance with this
section and the State plan.
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN
GENERAL.—If the Secretary, after providing
reasonable notice to a State and opportunity for a hearing,
finds that—
‘‘(i) there has been a failure by the State to comply
substantially with any provision or requirement set
forth in the State plan; or
‘‘(ii) in the operation of any program or activity
for which assistance is provided under the block grant
demonstration program, there is a failure by the State
to comply substantially with any provision of this
section;
the Secretary shall notify the State of the finding and
that no further payments will be made to the State under
the block grant demonstration program, or, in the case
of noncompliance in the operation of a program or activity,
that no further payments to the State will be made with
respect to the program or activity, until the Secretary
determines that there is no longer any failure to comply
or that the noncompliance will be promptly corrected.
‘‘(B) OTHER SANCTIONS.—In the case of a finding of
noncompliance made under subparagraph (A), the Sec-
retary may, in addition to, or in lieu of, imposing the
sanctions described in subparagraph (A), impose other
appropriate sanctions, including recoupment of money
improperly expended for purposes prohibited or not author-
ized by this section and disqualification from the receipt
of financial assistance under this section.
‘‘(C) NOTICE.—The notice required under subparagraph
(A) shall include a specific identification of any additional
sanction being imposed under subparagraph (B).
H. R. 4—233
‘‘(3) ISSUANCE OF REGULATIONS.—The Secretary shall estab-
lish by regulation procedures for—
‘‘(A) receiving, processing, and determining the validity
of complaints concerning any failure of a State to comply
with the State plan or any requirement of this section;
and
‘‘(B) imposing sanctions under this section.
‘‘(g) PAYMENTS.—
‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall
pay to a State that has an application approved by the Secretary
under subsection (d)(3) and that complies with paragraph (3)
an amount that is equal to the allotment of the State under
subsection (i) for the fiscal year.
‘‘(2) METHODS OF PAYMENT.—The Secretary shall make pay-
ments to a State for a fiscal year under this section on a
quarterly basis—
‘‘(A) by issuing letters of credit for the fiscal year,
with necessary adjustments on account of overpayments
or underpayments, as determined by the Secretary; and
‘‘(B) by providing not less than 8 percent but not more
than 10 percent of the amount of the allotment to the
State in the form of commodities.
‘‘(3) EXPENDITURE OF FUNDS BY STATES.—Payments to a
State from an allotment under subsection (i) for a fiscal year
may be expended by the State only in the fiscal year or in
the succeeding fiscal year.
‘‘(4) PROVISION
OF
SCHOOL
LUNCHES
AND
BREAKFASTS.—
Subject to the other provisions of this section, a State may
provide school lunches and school breakfasts under the block
grant demonstration program in any manner determined appro-
priate by the State.
‘‘(h) AUDITS.—
‘‘(1) REQUIREMENT.—After the close of each fiscal year,
the Secretary shall carry out an audit of the expenditures
from amounts received under this section by each State partici-
pating in the block grant demonstration program during the
fiscal year.
‘‘(2) RECORDS.—Each State described in paragraph (1) shall
maintain such records as the Secretary may reasonably require
to carry out an audit under this subsection.
‘‘(3) REPAYMENT OF AMOUNTS.—Each State shall repay to
the United States any amounts determined through an audit
under this subsection to have not been expended in accordance
with this section or to have not been expended in accordance
with the State plan, or the Secretary may offset the amounts
against any other amount paid to the State under this section.
‘‘(i) ALLOTMENTS.—
‘‘(1) FIRST FISCAL YEAR.—
‘‘(A) IN GENERAL.—For the first fiscal year in which
the State participates in the block grant demonstration
program, the Secretary shall allot to the State, from
amounts made available under section 3 of this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
an amount that is equal to the amount that the Secretary
projects would be made available to the State to carry
out the school lunch program under the other sections
of this Act and the school breakfast program under section
H. R. 4—234
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
(including the value of commodities made available under
the commodity distribution programs established under sec-
tions 6 and 14) for the fiscal year.
‘‘(B) BASIS FOR PROJECTIONS.—In making a projection
under subparagraph (A), the Secretary shall take into
account—
‘‘(i) participation trends in the State; and
‘‘(ii) projected changes in reimbursement rates
under the school lunch program under the other sec-
tions of this Act, and the school breakfast program
under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
‘‘(C) PUBLICATION IN THE FEDERAL REGISTER.—The Sec-
retary shall publish in the Federal Register—
‘‘(i) not later than February 1, 1996, and each
February 1 thereafter, the amount that the Secretary
projects will be made available to each State that,
as of the date of publication, is not participating in
the block grant demonstration program to carry out
the school lunch program under the other sections
of this Act and the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) for the first fiscal year that begins after the
date of publication; and
‘‘(ii) not later than February 1, 1998, and each
February 1 thereafter, with respect to each State for
which a projection was made under clause (i)—
‘‘(I) the amount that the Secretary projected
would be made available to the State for the fiscal
year that ended the preceding September 30; and
‘‘(II) the amount that actually was made avail-
able to the State for the fiscal year that ended
the preceding September 30.
‘‘(2) LATER FISCAL YEARS.—For each fiscal year after the
first fiscal year referred to in paragraph (1), the Secretary
shall allot to the State, from amounts made available under
section 3 of this Act and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.), an amount that is equal to the sum
of—
‘‘(A) the amount allotted under paragraph (1); and
‘‘(B) the product of—
‘‘(i) the amount allotted under paragraph (1); and
‘‘(ii) a factor consisting of the sum of—
‘‘(I) one-half of the percentage change in the
series for food away from home of the Consumer
Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Depart-
ment of Labor for the most recent 12-month period
for which such data are available; and
‘‘(II) one-half of the percentage change in the
number of children projected to be enrolled in
school in the State in the current school year (as
of the first day of the fiscal year) as compared
to the number of children enrolled in school in
the State in the preceding school year.
H. R. 4—235
‘‘(j) RELATIONSHIP TO OTHER LAWS.—The value of assistance
provided to students under the block grant demonstration program
shall not be considered to be income or resources for any purpose
under any Federal or State law, including any law relating to
taxation and welfare and public assistance programs.
‘‘(k) ALTERNATIVE ASSISTANCE TO CERTAIN STUDENTS.—
‘‘(1) ASSISTANCE.—If, by reason of any other provision of
law, a State participating in the block grant demonstration
program is prohibited from providing assistance from amounts
received from a grant under the block grant demonstration
program to a nonprofit private school or Department of Defense
domestic dependents’ school for a fiscal year to carry out the
block grant demonstration program, or the Secretary deter-
mines that a State has substantially failed or is unwilling
to provide the assistance to a nonprofit private school, Depart-
ment of Defense domestic dependents’ school, or public school,
for the fiscal year, the Secretary shall, after consultation with
appropriate representatives of the State and affected school,
arrange for the provision of the assistance to the school for
the fiscal year in accordance with the other sections of this
Act.
‘‘(2) REDUCTION IN AMOUNT OF STATE GRANT.—If the Sec-
retary arranges for the provision of assistance to a nonprofit
private school, Department of Defense domestic dependents’
school, or public school in a State for a fiscal year under
paragraph (1), the amount of the grant to the State for the
fiscal year shall be reduced by the amount of the assistance
provided to the school.
‘‘(l) TRANSITION PROVISIONS.—
‘‘(1) TRANSITION INTO BLOCK GRANT DEMONSTRATION PRO-
GRAM.—A State for which an application and State plan are
approved under subsection (d)(3) shall be eligible to use a
portion (as determined by the Secretary) of the funds and
commodities made available to the State for the preceding
fiscal year under the school lunch program under the other
sections of this Act, and the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773),
to make a transition into the block grant demonstration
program.
‘‘(2) TRANSITION UPON TERMINATION OF BLOCK GRANT DEM-
ONSTRATION PROGRAM.—Upon termination of the block grant
demonstration program, a State that participated in the block
grant demonstration program shall be eligible to use a portion
(as determined by the Secretary) of the funds and commodities
made available to the State for the preceding fiscal year under
the block grant demonstration program to make a transition
back to the operation of the school lunch program under the
other sections of this Act and the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
‘‘(m) EVALUATIONS BY THE SECRETARY.—
‘‘(1) IN
GENERAL.—Not later than 3 years after the
establishment of the block grant demonstration program and
not later than 180 days prior to the termination date specified
in subsection (n), the Secretary shall conduct an evaluation,
and submit a report on the evaluation to Congress (including
the comments of the Comptroller General of the United States
H. R. 4—236
under paragraph (3)), concerning the block grant demonstration
program.
‘‘(2) CONTENTS.—In carrying out paragraph (1), the Sec-
retary shall evaluate, using, to the extent practicable, data
required to be reported by the States under this section—
‘‘(A) the effects of the block grant demonstration pro-
gram on the nutritional quality of the meals offered;
‘‘(B) the degree to which children, especially children
who are low-income students and children who are needy
students, participated in the block grant demonstration
program during each fiscal year covered by the evaluation
as compared to the participation of the children in the
block grant demonstration program, or in the school lunch
program under the other sections of this Act and the school
breakfast program under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773), during the prior fiscal year;
‘‘(C) the income distribution of the children served
and the amount of Federal assistance the children received
under the block grant demonstration program for each
fiscal year;
‘‘(D) the schools participating in, and the types of meals
offered under, the block grant demonstration program dur-
ing each fiscal year covered by the evaluation as compared
to the schools participating in, and the types of meals
offered under, the block grant demonstration program, or
the school lunch program under the other sections of this
Act and the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773), during
the prior fiscal year;
‘‘(E) how the implementation of the block grant dem-
onstration program differs from the implementation of the
school lunch program under the other sections of this Act
and the school breakfast program under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773);
‘‘(F) the effect of the block grant demonstration pro-
gram on the administrative costs paid by States and schools
to carry out school lunch and school breakfast programs;
‘‘(G) the effect of the block grant demonstration pro-
gram on the paperwork required to be completed by schools
and parents under school lunch and school breakfast pro-
grams; and
‘‘(H) such other issues concerning the block grant dem-
onstration program as the Secretary considers appropriate.
‘‘(3) COMMENTS
BY
THE
COMPTROLLER
GENERAL.—The
Comptroller General of the United States shall—
‘‘(A) comment on the evaluation conducted under para-
graph (1), including the methodology used by the Secretary
in conducting the evaluation; and
‘‘(B) submit the comments to the Secretary for inclusion
in the evaluation.
‘‘(n) TERMINATION OF AUTHORITY.—The authority to carry out
the block grant demonstration program shall terminate on Septem-
ber 30, 2000.’’.
(b) STATE ADMINISTRATIVE EXPENSES.—The first sentence of
section 7(a)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)(1)) is amended by inserting ‘‘5,’’ after ‘‘4,’’.
H. R. 4—237
(c) PROHIBITION ON WAIVERS.—Section 12(l)(4) of the National
School Lunch Act (42 U.S.C. 1760(l)(4)) is amended—
(1) in subparagraph (M), by striking ‘‘and’’ at the end;
(2) in subparagraph (N), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(O) the school nutrition optional block grant dem-
onstration program established under section 5.’’.
Subtitle B—Child Nutrition Act of 1966
SEC. 921. 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. 922. 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 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. A routine change in the policy of a school,
such as an annual adjustment of the income eligibility
guidelines for free and reduced price meals, shall not be
sufficient cause for requiring the school to submit a policy
statement.’’.
SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD PREPARA-
TION.—Section 4(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(e)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘(A)’’; and
(2) by striking subparagraph (B).
(b) EXPANSION OF PROGRAM; STARTUP AND EXPANSION COSTS.—
(1) IN GENERAL.—Section 4 of the Act is amended by strik-
ing subsections (f) and (g).
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall become effective on October 1, 1996.
SEC. 924. 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 Act, 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 only be required to submit to
the Secretary for approval a substantive change in the plan.’’.
H. R. 4—238
SEC. 925. REGULATIONS.
Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779)
is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘(1)’’; and
(B) by striking paragraphs (2) through (4); and
(2) in subsection (c), by striking ‘‘may’’ and inserting ‘‘shall’’.
SEC. 926. 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. 927. 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. 928. 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’’.
SEC. 929. SPECIAL 
SUPPLEMENTAL 
NUTRITION 
PROGRAM 
FOR
WOMEN, INFANTS, AND CHILDREN.
(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of not more than
90 days’’ after ‘‘accommodation’’; and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’ at the end;
and
(B) in subparagraph (B), by striking ‘‘; and’’ and insert-
ing a period; and
(C) by striking subparagraph (C).
(b) SECRETARY’S PROMOTION OF WIC.—Section 17(c) of the Act
is amended by striking paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the Act is amended
by striking paragraph (4).
(d) NUTRITION EDUCATION AND DRUG ABUSE EDUCATION.—Sec-
tion 17(e) of the Act is amended—
(1) in the first sentence of paragraph (1), by striking ‘‘shall
ensure’’ and all that follows through ‘‘is provided’’ and inserting
‘‘shall provide nutrition education and may provide drug abuse
education’’;
(2) in paragraph (2), by striking the third sentence;
(3) by striking paragraph (4) and inserting the following:
‘‘(4) INFORMATION.—The State agency may provide a local
agency with materials describing other programs for which
participants in the program may be eligible.’’;
H. R. 4—239
(4) in paragraph (5), by striking ‘‘The State’’ and all that
follows through ‘‘local agency shall’’ and inserting ‘‘A local
agency may’’; and
(5) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Secretary, by a
date specified by the Secretary, a’’ and inserting ‘‘to
the Secretary, by a date specified by the Secretary,
an initial’’; and
(ii) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall only be
required to submit to the Secretary for approval a
substantive change in the plan.’’;
(B) in subparagraph (C)—
(i) by striking clause (iii) and inserting the follow-
ing:
‘‘(iii) a plan to coordinate operations under the program
with other services or programs that may benefit participants
in, and applicants for, the program;’’;
(ii) in clause (vi), by inserting after ‘‘in the State’’
the following: ‘‘(including a plan to improve access
to the program for participants and prospective
applicants who are employed, or who reside in rural
areas)’’;
(iii) by striking clauses (vii), (ix), (x), and (xii);
(iv) in clause (xiii), by striking ‘‘may require’’ and
inserting ‘‘may reasonably require’’; and
(v) by redesignating clauses (viii), (xi), and (xiii),
as so amended, as clauses (vii), (viii), and (ix), respec-
tively;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as subpara-
graph (D);
(2) by striking paragraphs (2), (6), (8), (20), (22), and (24);
(3) in the second sentence of paragraph (5), by striking
‘‘at all times be available’’ and inserting ‘‘be available at any
reasonable time’’;
(4) in paragraph (9)(B), by striking the second sentence;
(5) in the first sentence of paragraph (11), by striking
‘‘, including standards that will ensure sufficient State agency
staff’’;
(6) in paragraph (12), by striking the third sentence;
(7) in paragraph (14), by striking ‘‘shall’’ and inserting
‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to accommodate’’
and all that follows through ‘‘facilities’’;
(9) in paragraph (19), by striking ‘‘shall’’ and inserting
‘‘may’’; and
(10) by redesignating paragraphs (3), (4), (5), (7), (9)
through (19), (21), and (23), as so amended, as paragraphs
(2), (3), (4), (5), (6) through (16), (17), and (18), respectively.
(f) INFORMATION.—Section 17(g) of the Act is amended—
(1) in paragraph (5), by striking ‘‘the report required under
subsection (d)(4)’’ and inserting ‘‘reports on program participant
characteristics’’; and
H. R. 4—240
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Act is amended—
(A) in paragraph (4)(E), by striking ‘‘and, on’’ and all
that follows through ‘‘(d)(4)’’;
(B) in paragraph (8)—
(i) by striking subparagraphs (A), (C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’; and
(II) by striking clauses (ii) through (ix);
(iii) in subparagraph (I), by striking ‘‘Secre-
tary—’’ 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)’’; and
(C) in paragraph (10)(A), by striking ‘‘shall’’ and insert-
ing ‘‘may’’.
(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 Act that is in effect
on the effective date of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL, INFANT, AND
FETAL NUTRITION.—Section 17(k)(3) of the Act is amended by strik-
ing ‘‘Secretary shall designate’’ and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEMONSTRATION;
GRANTS FOR INFORMATION AND DATA SYSTEM.—Section 17 of the
Act 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 Act, as
so amended, is further 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.’’.
H. R. 4—241
SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42 U.S.C. 1787)
is repealed.
SEC. 931. 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
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 Act 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; and
(iv) in subparagraph (H), as so redesignated, by
inserting ‘‘and’’ at the end;
(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 Act 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 Act 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
Act 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
H. R. 4—242
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
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 Act is amended by striking
subsection (j).
(g) EFFECTIVE DATE.—The amendments made by subsection
(e) shall become effective on October 1, 1996.
SEC. 932. BREASTFEEDING PROMOTION PROGRAM.
Section 21 of the Child Nutrition Act of 1966 (42 U.S.C. 1790)
is repealed.
TITLE X—FOOD STAMPS AND
COMMODITY DISTRIBUTION
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Food Stamp Reform and
Commodity Distribution Act of 1995’’.
Subtitle A—Food Stamp Program
SEC. 1011. 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. 1012. 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 an access device, including an electronic benefit trans-
fer card or personal identification number,’’.
SEC. 1013. 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. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSE-
HOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i))
is amended by inserting after the third sentence the following:
‘‘Notwithstanding the preceding sentences, a State may establish
criteria that prescribe when individuals who live together, and
who would be allowed to participate as separate households under
the preceding sentences, shall be considered a single household,
without regard to the common purchase of food and preparation
of meals.’’.
H. R. 4—243
SEC. 1015. 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 ‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting the follow-
ing: ‘‘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.’’.
SEC. 1016. 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. 1017. 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. 1018. 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 ‘‘19’’.
SEC. 1019. 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 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.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking ‘‘plan for aid
to families with dependent children approved’’ and
inserting ‘‘program funded’’; and
(ii) in subparagraph (B), by striking ‘‘, not includ-
ing energy or utility-cost assistance,’’;
(B) in paragraph (2), by striking subparagraph (C)
and inserting the following:
‘‘(C) a payment or allowance described in subsection
(d)(11);’’; and
(C) by adding at the end the following:
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.—
H. R. 4—244
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of
subsection (d)(1), a payment made under a Federal or State
law 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 Federal or State law to provide energy assistance
shall be considered an out-of-pocket expense incurred and
paid by the household.’’.
(2) Section 2605(f) of the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(A) by striking ‘‘(f)(1) Notwithstanding’’ and inserting
‘‘(f) Notwithstanding’’;
(B) in paragraph (1), by striking ‘‘food stamps,’’; and
(C) by striking paragraph (2).
SEC. 1020. 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
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 income
excluded by subsection (d) or 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 (other than
income excluded by subsection (d)) 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—
H. R. 4—245
‘‘(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.—A State agency may
develop a standard homeless shelter allowance, which shall
not exceed $139 per month, for such expenses as may reason-
ably 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 households, except that the State agency
may prohibit the use of the allowance for households with
extremely low shelter costs.
‘‘(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
or verification on 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
H. R. 4—246
‘‘(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, the excess shelter expense deduction shall not
exceed—
‘‘(i) in the 48 contiguous States and the District
of Columbia, $247 per month; and
‘‘(ii) in Alaska, Hawaii, Guam, and the Virgin
Islands of the United States, $429, $353, $300, and
$182 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.
H. R. 4—247
‘‘(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
(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
subparagraph (C)(ii)) may not be required to
reduce the allowance 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
purpose 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 Act (7
U.S.C. 2020(e)(3)) is amended by striking ‘‘. Under rules prescribed’’
and all that follows through ‘‘verifies higher expenses’’.
SEC. 1021. 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
H. R. 4—248
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;
and
‘‘(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. 1022. 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 1023. 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’’.
SEC. 1024. 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.’’.
H. R. 4—249
SEC. 1025. 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 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—
‘‘(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
H. R. 4—250
‘‘(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, perma-
nently.
‘‘(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 in subpara-
graph (A);
‘‘(bb) the procedures for determining
whether an individual is in compliance with
a requirement under subparagraph (A); and
‘‘(cc) whether an individual is in compli-
ance with a requirement under subparagraph
(A).
‘‘(II) NOT LESS RESTRICTIVE.—A State agency
may not determine a meaning, procedure, or deter-
mination under subclause (I) to be less restrictive
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
H. R. 4—251
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 the purpose 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 Act (7
U.S.C. 2026(b)(2)) is amended by striking ‘‘6(d)(1)(i)’’ and insert-
ing ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (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.’’.
SEC. 1026. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by striking subparagraph (B) and inserting
the following: ‘‘(B) a parent or other member of a household with
responsibility for the care of (i) a dependent child under the age
of 6 or any lower age designated by the State agency that is
not under the age of 1, or (ii) an incapacitated person;’’.
SEC. 1027. 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) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1, 1987, each’’
and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills, training,’’; and
(C) by adding at the end the following: ‘‘Each compo-
nent of an employment and training program carried out
under this paragraph shall be delivered through a state-
wide workforce development system, unless the component
H. R. 4—253
‘‘(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, $77,000,000;
‘‘(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-
ing program shall receive not less than $50,000 in each
fiscal year.’’.
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Act
(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 Act (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. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015) is amended—
(1) by redesignating subsection (i), as added by section
107, as subsection (p); and
(2) by inserting after subsection (h) 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
H. R. 4—254
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 Act (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 Act
(7 U.S.C. 2015(d)(2)(A)) is amended by striking ‘‘that is comparable
to a requirement of paragraph (1)’’.
SEC. 1029. 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 1028, is further amended by inserting after
subsection (i) 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. 1030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 1029, is further amended by inserting after
subsection (j) 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.’’.
H. R. 4—255
SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 1030, is further amended by inserting after
subsection (k) 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.
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) NON-CUSTODIAL 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 non-custodial
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.).
H. R. 4—256
‘‘(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. 1032. DISQUALIFICATION 
RELATING 
TO 
CHILD 
SUPPORT
ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 1031, is further amended by inserting after
subsection (m) the following:
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
‘‘(1) IN GENERAL.—No individual shall be eligible to partici-
pate 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 individ-
ual.’’.
SEC. 1033. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015), as amended by section 1032, is further amended
by inserting after subsection (n) 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); or
‘‘(C) a program of employment or 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 section 6(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 12-month period, the individual
received food stamp benefits for not less than 4 months during
which the individual did not—
‘‘(A) work 20 hours or more per week, averaged
monthly; or
‘‘(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; or
‘‘(C) participate in a program under section 20 or a
comparable program established by a State or political
subdivision of a State.
‘‘(3) EXCEPTION.—Paragraph (2) shall not apply to an
individual if the individual is—
H. R. 4—257
‘‘(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 section 6(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 individ-
uals reside—
‘‘(i) has an unemployment rate of over 10 percent;
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.
‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) IN GENERAL.—Paragraph (2) shall cease to apply
to an individual 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 a program under section 20
or a comparable program established by a State or
political subdivision of a State.
‘‘(B) LIMITATION.—During the subsequent 12-month
period, the individual shall be eligible to participate in
the food stamp program for not more than 4 months during
which the individual does not—
‘‘(i) work 20 hours or more per week, averaged
monthly;
‘‘(ii) participate in and comply with the require-
ments of a work program for 20 hours or more per
week, as determined by the State agency; or
‘‘(iii) participate in a program under section 20
or a comparable program established by a State or
political subdivision of a State.’’.
(b) TRANSITION PROVISION.—Prior to 1 year after the date of
enactment of this Act, the term ‘‘preceding 12-month period’’ in
section 6(o) of the Food Stamp Act of 1977, as amended by sub-
section (a), means the preceding period that begins on the date
of enactment of this Act.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp Act of 1977
(7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(A) IMPLEMENTATION.—Each State agency shall imple-
ment an electronic benefit transfer system in which house-
H. R. 4—258
hold benefits determined under section 8(a) or 24 are issued
from and stored in a central databank before October 1,
2002, unless the Secretary provides a waiver for a State
agency that faces unusual barriers to implementing an
electronic benefit transfer system.
‘‘(B) TIMELY
IMPLEMENTATION.—State agencies are
encouraged to implement an 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 effective
date of this clause, to the extent practicable, measures
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
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.—
H. R. 4—259
‘‘(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
the household or any authorized representative of the
household may utilize the card.’’.
(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.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of 1977
(7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall be adjusted’’
and all that follows through ‘‘$5’’.
SEC. 1036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(2)(B)) is amended by striking ‘‘of more than one month’’.
SEC. 1037. OPTIONAL 
COMBINED 
ALLOTMENT 
FOR 
EXPEDITED
HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c))
is amended by striking paragraph (3) and inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may provide to an eligible 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. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by striking subsection (d) and inserting the following:
‘‘(d) REDUCTION OF PUBLIC ASSISTANCE 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
H. R. 4—260
an action required under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title IV of
the Act to reduce the allotment under the food stamp program.’’.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by adding at the end the following:
‘‘(f) ALLOTMENTS
FOR HOUSEHOLDS RESIDING
IN CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual who resides
in a center for the purpose of a drug or alcoholic treatment
program described in the last sentence of section 3(i), a State
agency may provide an allotment for the individual to—
‘‘(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and
‘‘(B) the individual, if the individual leaves the center.
‘‘(2) DIRECT
PAYMENT.—A State agency may require an
individual referred to in paragraph (1) to designate the center
in which the individual resides as the authorized representative
of the individual for the purpose of receiving an allotment.’’.
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF 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 reauthor-
ized for participation in the food stamp program unless an author-
ized employee of the Department of Agriculture, a designee of
the Secretary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the store or
concern for the purpose of determining whether the store or concern
should be approved or reauthorized, as appropriate.’’.
SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION 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. 1042. INFORMATION 
FOR 
VERIFYING 
ELIGIBILITY 
FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c))
is amended—
(1) in the first sentence, by inserting ‘‘, which may include
relevant income and sales tax filing 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.’’.
H. R. 4—261
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO MEET
AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d))
is amended by adding at the end the 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.’’.
SEC. 1044. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020),
as amended by section 1020(b), is further amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and inserting the follow-
ing:
‘‘(2)(A) that the State agency shall establish procedures
governing the operation of food stamp offices that the State
agency determines best serve households in the State, including
households with special needs, such as households with elderly
or disabled members, households in rural areas with low-income
members, homeless individuals, households residing on reserva-
tions, and households in areas in which a substantial number
of members of low-income households speak a language other
than English.
‘‘(B) In carrying out subparagraph (A), a State agency—
‘‘(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the food stamp program;
‘‘(ii) shall develop an application containing the
information necessary to comply with this Act;
‘‘(iii) shall permit an applicant household to apply to
participate in the program on the same day that the house-
hold first contacts a food stamp office in person during
office hours;
‘‘(iv) shall consider an application that contains the
name, address, and signature of the applicant to be filed
on the date the applicant submits the application;
‘‘(v) shall require that an adult representative of each
applicant household certify in writing, under penalty of
perjury, that—
‘‘(I) the information contained in the application
is true; and
‘‘(II) all members of the household are citizens
or are aliens eligible to receive food stamps under
section 6(f);
‘‘(vi) shall provide a method of certifying and issuing
coupons to eligible homeless individuals, to ensure that
participation in the food stamp program is limited to
eligible households; and
‘‘(vii) may establish operating procedures that vary
for local food stamp offices to reflect regional and local
differences within the State.
‘‘(C) Nothing in this Act shall prohibit the use of signatures
provided and maintained electronically, storage of records using
automated retrieval systems only, or any other feature of a
H. R. 4—262
State agency’s application system that does not rely exclusively
on the collection and retention of paper applications or other
records.
‘‘(D) The signature of any adult under this paragraph shall
be considered sufficient to comply with any provision of Federal
law requiring a household member to sign an application or
statement.’’;
(B) in paragraph (3)—
(i) by striking ‘‘shall—’’ and all that follows through
‘‘provide each’’ and inserting ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all that follows
through ‘‘representative of the State agency;’’;
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15) through (24)
as paragraphs (14) through (23), respectively; and
(ii) by redesignating paragraph (26) as paragraph (24);
and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and all that fol-
lows through ‘‘(2)’’ and inserting the following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) APPLICATION PROCEDURES.—Notwithstanding any other
provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all that follows
through ‘‘title IV of the Social Security Act. No’’ and insert-
ing a period and the following:
‘‘(2) DENIAL AND TERMINATION.—Other than in a case of
disqualification as a penalty for failure to comply with a public
assistance program rule or regulation, no’’.
SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended—
(1) by striking ‘‘that (A) the’’ and inserting ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘Act; (B) the’’ and inserting ‘‘Act; and
‘‘(B) the’’;
(3) in subparagraph (B), by striking ‘‘United States Civil
Service Commission’’ and inserting ‘‘Office of Personnel
Management’’; and
(4) by striking subparagraphs (C) through (E).
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting the following:
‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and inserting
the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and inserting the follow-
ing: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
‘‘(D) notwithstanding any other provision of law, the
address, social security number, and, if available, photo-
graph of any member of a household shall be made avail-
H. R. 4—264
‘‘(p) STATE VERIFICATION OPTION.—Notwithstanding any other
provision of law, in carrying out the food stamp program, a State
agency shall not be required to use an income and eligibility or
an immigration status verification system established under section
1137 of the Social Security Act (42 U.S.C. 1320b–7).’’.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY
SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b))
is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the end;
(2) in paragraph (3), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be determined by
the Secretary, including permanent disqualification, on the
knowing submission of an application for the approval or
reauthorization to accept and redeem coupons that contains
false information about a substantive matter that was a part
of the application.’’.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALI-
FIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021)
is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this Act of
an approved retail food store and a wholesale food concern
that is disqualified from accepting benefits under the special
supplemental nutrition program for women, infants, and chil-
dren established under section 17 of the Child Nutrition Act
of 1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under paragraph (1)—
‘‘(A) shall be for the same length of time as the disquali-
fication 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) notwithstanding section 14, shall not be subject
to judicial or administrative review.’’.
SEC. 1052. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of the Food
Stamp Act of 1977 (7 U.S.C. 2022) is amended—
(1) by striking subsection (b) and inserting the following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subsection, a State agency shall collect any overissuance of
coupons issued to a household by—
‘‘(A) reducing the allotment of the household;
‘‘(B) withholding amounts from unemployment com-
pensation from a member of the household under sub-
section (c);
‘‘(C) recovering from Federal pay or a Federal income
tax refund under subsection (d); or
‘‘(D) any other means.
H. R. 4—265
‘‘(2) COST EFFECTIVENESS.—Paragraph (1) shall not apply
if the State agency demonstrates to the satisfaction of the
Secretary that all of the means referred to in paragraph (1)
are not cost effective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If a household
received an overissuance of coupons without any member of
the household being found ineligible to participate in the pro-
gram under section 6(b)(1) and a State agency elects to reduce
the allotment of the household under paragraph (1)(A), the
State agency shall not reduce the monthly allotment of the
household under paragraph (1)(A) by an amount in excess
of the greater of—
‘‘(A) 10 percent of the monthly allotment of the house-
hold; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall collect an
overissuance of coupons issued to a household under paragraph
(1) in accordance with the requirements established by the
State agency for providing notice, electing a means of payment,
and establishing a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under subsection (b)
and except for claims arising from an error of the State
agency,’’ and inserting ‘‘, as determined under subsection
(b)(1),’’; and
(B) by inserting before the period at the end the follow-
ing: ‘‘or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8) of the Act (7
U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all that follows
through ‘‘such section’’; and
(2) by inserting before the semicolon at the end the follow-
ing: ‘‘or a Federal income tax refund as authorized by section
3720A of title 31, United States Code’’.
(c) RETENTION RATE.—Section 16(a) of the Act (7 U.S.C. 2025(a))
is amended by striking ‘‘25 percent during the period beginning
October 1, 1990’’ and all that follows through ‘‘error of a State
agency’’ and inserting the following: ‘‘25 percent of the overissuances
collected by the State agency under section 13, except those
overissuances arising from an error of the State agency’’.
SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS 
PENDING 
ADMINISTRATIVE 
AND
JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a))
is amended—
(1) by redesignating the first through seventeenth sen-
tences as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION OF STORES PENDING REVIEW.—Notwith-
standing any other provision of this subsection, any permanent
disqualification of a retail food store or wholesale food concern
under paragraph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualification. If
the disqualification is reversed through administrative or
H. R. 4—266
judicial review, the Secretary shall not be liable for the value
of any sales lost during the disqualification period.’’.
SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.
(a) FORFEITURE
OF
ITEMS
EXCHANGED
IN
FOOD
STAMP
TRAFFICKING.—The first sentence of section 15(g) of the Food Stamp
Act of 1977 (7 U.S.C. 2024(g)) is amended by striking ‘‘or intended
to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Act (7 U.S.C.
2024) is amended by adding at the end the following:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(1) IN
GENERAL.—In imposing a sentence on a person
convicted of an offense in violation of subsection (b) or (c),
a court shall order, in addition to any other sentence imposed
under this subsection, that the person forfeit to the United
States all property described in paragraph (2).
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All property, real
and personal, used in a transaction or attempted transaction,
to commit, or to facilitate the commission of, a violation (other
than a misdemeanor) of subsection (b) or (c), or proceeds trace-
able to a violation of subsection (b) or (c), shall be subject
to forfeiture to the United States under paragraph (1).
‘‘(3) INTEREST OF OWNER.—No interest in property shall
be forfeited under this subsection as the result of any act
or omission established by the owner of the interest to have
been committed or omitted without the knowledge or consent
of the owner.
‘‘(4) PROCEEDS.—The proceeds from any sale of forfeited
property and any monies forfeited under this subsection shall
be used—
‘‘(A) first, to reimburse the Department of Justice for
the costs incurred by the Department to initiate and com-
plete the forfeiture proceeding;
‘‘(B) second, to reimburse the Department of Agri-
culture Office of Inspector General for any costs the Office
incurred in the law enforcement effort resulting in the
forfeiture;
‘‘(C) third, to reimburse any Federal or State law
enforcement agency for any costs incurred in the law
enforcement effort resulting in the forfeiture; and
‘‘(D) fourth, by the Secretary to carry out the approval,
reauthorization, and compliance investigations of retail
stores and wholesale food concerns under section 9.’’.
SEC. 1055. LIMITATION OF FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2025(a)(4)) is amended by inserting after the comma at the end
the following: ‘‘but not including recruitment activities,’’.
SEC. 1056. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the Act (7 U.S.C.
2020(g)) is amended by striking ‘‘the Secretary’s standards for
the efficient and effective administration of the program estab-
lished under section 16(b)(1) or’’.
H. R. 4—267
(2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B))
is amended by striking ‘‘pursuant to subsection (b)’’.
SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025),
as amended by section 1056(a), is further amended by inserting
after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM.—
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT
PROGRAM.—In this subsection, the term ‘work supplementation
or support program’ means a program under which, as deter-
mined by the Secretary, public assistance (including any bene-
fits provided under a program established by the State and
the food stamp program) is provided to an employer to be
used for hiring and employing a public assistance recipient
who was not employed by the employer at the time the public
assistance recipient entered the program.
‘‘(2) PROGRAM.—A State agency may elect to use an amount
equal to the allotment that would otherwise be issued to a
household under the food stamp program, but for the operation
of this subsection, for the purpose of subsidizing or supporting
a job under a work supplementation or support program estab-
lished by the State.
‘‘(3) PROCEDURE.—If a State agency makes an election
under paragraph (2) and identifies each household that partici-
pates in the food stamp program that contains an individual
who is participating in the work supplementation or support
program—
‘‘(A) the Secretary shall pay to the State agency an
amount equal to the value of the allotment that the house-
hold would be eligible to receive but for the operation
of this subsection;
‘‘(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work
supplementation or support program in lieu of providing
the allotment that the household would receive but for
the operation of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount received under
this subsection shall be excluded from household
income and resources; and
‘‘(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
‘‘(D) the household shall not receive an allotment from
the State agency for the period during which the member
continues to participate in the work supplementation or
support program.
‘‘(4) OTHER WORK REQUIREMENTS.—No individual shall be
excused, by reason of the fact that a State has a work
supplementation or support program, from any work require-
ment under section 6(d), except during the periods in which
the individual is employed under the work supplementation
or support program.
‘‘(5) LENGTH OF PARTICIPATION.—A State agency shall pro-
vide a description of how the public assistance recipients in
the program shall, within a specific period of time, be moved
H. R. 4—268
from supplemented or supported employment to employment
that is not supplemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation or support
program shall not displace the employment of individuals who
are not supplemented or supported.’’.
SEC. 1058. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended—
(1) by redesignating subparagraph (B) as subparagraph
(C); and
(2) in subparagraph (A)—
(A) by striking the second sentence; and
(B) by striking ‘‘benefits to eligible households, includ-
ing’’ and inserting the following: ‘‘benefits to eligible house-
holds, and may waive any requirement of this Act to the
extent necessary for the project to be conducted.
‘‘(B) PROJECT REQUIREMENTS.—
‘‘(i) PROGRAM GOAL.—The Secretary may not con-
duct a project under subparagraph (A) unless the
project is consistent with the goal of the food stamp
program of providing food assistance to raise levels
of nutrition among low-income individuals.
‘‘(ii) PERMISSIBLE PROJECTS.—The Secretary may
conduct a project under subparagraph (A) to—
‘‘(I) improve program administration;
‘‘(II) increase the self-sufficiency of food stamp
recipients;
‘‘(III) test innovative welfare reform strategies;
and
‘‘(IV) allow greater conformity with the rules
of other programs than would be allowed but for
this paragraph.
‘‘(iii) IMPERMISSIBLE
PROJECTS.—The Secretary
may not conduct a project under subparagraph (A)
that—
‘‘(I) involves the payment of the value of an
allotment in the form of cash, unless the project
was approved prior to the date of enactment of
this subparagraph;
‘‘(II) substantially transfers funds made avail-
able under this Act to services or benefits provided
primarily through another public assistance pro-
gram; or
‘‘(III) is not limited to a specific time period.
‘‘(iv) ADDITIONAL
INCLUDED
PROJECTS.—Pilot or
experimental projects may include’’.
SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.
Section 17(b)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(B)), as amended by section 1058, is further amended—
(1) in clause (iv), by striking ‘‘coupons. Any pilot’’ and
inserting the following: ‘‘coupons.
‘‘(v) CASH PAYMENT PILOT PROJECTS.—Any pilot’’;
and
(2) in clause (v), as so amended, by striking ‘‘1995’’ and
inserting ‘‘2002’’.
H. R. 4—271
(B) in the last sentence, by striking ‘‘In each monthly
report, the Secretary shall also state’’ and inserting the
following: ‘‘The Secretary shall file a report each February
15, April 15, and July 15, stating’’; and
(2) by striking subsection (b) and inserting the following:
‘‘(b) LIMITATION ON FOOD STAMP ALLOTMENTS.—
‘‘(1) OBLIGATIONS.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, except as provided in subparagraphs (B) and
(C), obligations to carry out this Act shall not exceed—
‘‘(i) $25,443,000,000 for fiscal year 1996;
‘‘(ii) $24,636,000,000 for fiscal year 1997;
‘‘(iii) $25,319,000,000 for fiscal year 1998;
‘‘(iv) $26,307,000,000 for fiscal year 1999;
‘‘(v) $27,568,000,000 for fiscal year 2000;
‘‘(vi) $28,602,000,000 for fiscal year 2001; and
‘‘(vii) $29,804,000,000 for fiscal year 2002.
‘‘(B) COST
OF
FOOD
ADJUSTMENT.—On October 1 of
each fiscal year, the Secretary shall adjust the limit on
obligations under subparagraph (A) for the fiscal year to
reflect any change in the cost of the program due to any
increase or decrease in the cost of the thrifty food plan
compared to the cost of the thrifty food plan for the same
period projected by the Director of the Congressional
Budget Office prior to the date of enactment of this
subparagraph.
‘‘(C) CASELOAD ADJUSTMENT.—On May 15 of each fiscal
year, the Secretary shall adjust the limit on obligations
under subparagraph (A) for the fiscal year to reflect any
change in the cost of the program due to any increase
or decrease in participation as estimated by comparing
participation during the first 6 months of the fiscal year
to participation for the same period projected by the Direc-
tor of the Congressional Budget Office prior to the date
of enactment of this subparagraph.
‘‘(2) REDUCTION.—Notwithstanding any other provision of
this Act, if the Secretary finds that for any fiscal year the
requirements of participating States will exceed the amount
of obligations specified in paragraph (1), the Secretary shall
direct State agencies to reduce the value of allotments to be
issued to households certified as eligible to participate in the
food stamp program to the extent necessary to comply with
paragraph (1).
‘‘(3) REPORT.—The Secretary shall report to the Committee
on Agriculture of the House of Representatives and the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate
concerning the methodology and assumptions under, effects
of, and adjustments under, this subsection.’’.
SEC. 1063. REAUTHORIZATION OF PUERTO RICO NUTRITION ASSIST-
ANCE PROGRAM.
The first sentence of section 19(a)(1)(A) of the Food Stamp
Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking
‘‘$974,000,000’’ and all that follows through ‘‘fiscal year 1995’’ and
inserting ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,
$1,174,000,000 for fiscal year 1997, $1,204,000,000 for fiscal year
1998, $1,236,000,000 for fiscal year 1999, $1,268,000,000 for fiscal
H. R. 4—272
year 2000, $1,301,000,000 for fiscal year 2001, and $1,335,000,000
for fiscal year 2002’’.
SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) DEFINITION OF FEDERAL COSTS.—In this section, the term
‘Federal costs’ does not include any Federal costs incurred under
section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State may elect
to carry out a Simplified Food Stamp Program (referred to in
this section as a ‘Program’), statewide or in a political subdivision
of the State, in accordance with this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to carry out
a Program, within the State or a political subdivision of the State—
‘‘(1) a household in which all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) shall automati-
cally be eligible to participate in the Program; and
‘‘(2) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established
by the State under—
‘‘(A) a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.);
‘‘(B) the food stamp program (other than section 25);
or
‘‘(C) a combination of a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) and the food stamp program (other than section
25).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not operate a Pro-
gram unless the Secretary approves a State plan for the oper-
ation of the Program under paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation that the plan
will not increase Federal costs for any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—During each fiscal year and not later
than 90 days after the end of each fiscal year, the Secretary
shall determine whether a Program being carried out by a
State agency is increasing Federal costs under this Act above
the Federal costs incurred under the food stamp program in
operation in the State or political subdivision of the State
for the fiscal year prior to the implementation of the Program,
adjusted for any changes in—
‘‘(A) participation;
‘‘(B) the income of participants in the food stamp pro-
gram that is not attributable to public assistance; and
‘‘(C) the thrifty food plan under section 3(o).
‘‘(2) NOTIFICATION.—If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year or any portion of any fiscal year, the Secretary
H. R. 4—273
shall notify the State not later than 30 days after the Secretary
makes the determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE ACTION.—Not later than 90 days after
the date of a notification under paragraph (2), the State
shall submit a plan for approval by the Secretary for
prompt corrective action that is designed to prevent the
Program from increasing Federal costs under this Act.
‘‘(B) TERMINATION.—If the State does not submit a
plan under subparagraph (A) or carry out a plan approved
by the Secretary, the Secretary shall terminate the
approval of the State agency operating the Program and
the State agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a State or politi-
cal subdivision of a State may follow the rules and procedures
established by the State or political subdivision under a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) or under the food stamp program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operating a Program,
a State or political subdivision of a State may standardize
the deductions provided under section 5(e). In developing the
standardized deduction, the State shall consider the work
expenses, dependent care costs, and shelter costs of participat-
ing households.
‘‘(3) REQUIREMENTS.—In operating a Program, a State or
political subdivision shall comply with the requirements of—
‘‘(A) subsections (a) through (g) of section 7;
‘‘(B) section 8(a) (except that the income of a household
may be determined under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of section 11;
‘‘(E) paragraphs (8), (12), (16), (18), (20), (24), and
(25) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable requirement
established by the State under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—Notwithstanding any
other provision of this section, a household may not receive
benefits under this section as a result of the eligibility of
the household under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.),
unless the Secretary determines that any household with
income above 130 percent of the poverty guidelines is not
eligible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Act (7 U.S.C.
2020(e)), as amended by sections 1028(b) and 1044, is further
amended by adding at the end the following:
‘‘(25) if a State elects to carry out a Simplified Food Stamp
Program under section 24, the plans of the State agency for
operating the program, including—
H. R. 4—274
‘‘(A) the rules and procedures to be followed by the
State agency to determine food stamp benefits;
‘‘(B) how the State agency will address the needs of
households that experience high shelter costs in relation
to the incomes of the households; and
‘‘(C) a description of the method by which the State
agency will carry out a quality control system under section
16(c).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Act (7 U.S.C. 2017), as amended by
section 1039, is further amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is amended—
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as sub-
sections (i) through (k), respectively.
SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.), as amended by section 1064, is further amended by adding
at the end the following:
‘‘SEC. 25. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food assistance’ means
assistance that may be used only to obtain food, as defined
in section 3(g).
‘‘(2) STATE.—The term ‘State’ means each of the 50 States,
the District of Columbia, Guam, and the Virgin Islands of
the United States.
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a program
to make grants to States in accordance with this section to provide—
‘‘(1) food assistance to needy individuals and families resid-
ing in the State; and
‘‘(2) funds for administrative costs incurred in providing
the assistance.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—A State may annually elect to participate
in the program established under subsection (b) if the State—
‘‘(A) has fully implemented an electronic benefit trans-
fer system that operates in the entire State;
‘‘(B) has a payment error rate under section 16(c) that
is not more than 6 percent as announced most recently
by the Secretary; or
‘‘(C) has a payment error rate in excess of 6 percent
and agrees to contribute non-Federal funds for the fiscal
year of the grant, for benefits and administration of the
State’s food assistance program, the amount determined
under paragraph (2).
‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—In the case of a State that elects
to participate in the program under paragraph (1)(C), the
State shall agree to contribute, for a fiscal year, an amount
equal to—
‘‘(A)(i) the benefits issued in the State; multiplied by
‘‘(ii) the payment error rate of the State; minus
‘‘(B)(i) the benefits issued in the State; multiplied by
H. R. 4—275
‘‘(ii) 6 percent.
‘‘(B) DETERMINATION.—Notwithstanding sections 13
and 14, the calculation of the contribution shall be based
solely on the determination of the Secretary of the payment
error rate.
‘‘(C) DATA.—For purposes of implementing subpara-
graph (A) for a fiscal year, the Secretary shall use the
data for the most recent fiscal year available.
‘‘(3) ELECTION LIMITATION.—
‘‘(A) RE-ENTERING FOOD STAMP PROGRAM.—A State that
elects to participate in the program under paragraph (1)
may in a subsequent year decline to elect to participate
in the program and instead participate in the food stamp
program in accordance with the other sections of this Act.
‘‘(B) LIMITATION.—Subsequent to re-entering the food
stamp program under subparagraph (A), the State shall
only be eligible to participate in the food stamp program
in accordance with the other sections of this Act and shall
not be eligible to elect to participate in the program estab-
lished under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is participating in the
program established under subsection (b) shall not be sub-
ject to, or receive any benefit under, this Act except as
provided in this section.
‘‘(B) CONTRACT WITH FEDERAL GOVERNMENT.—Nothing
in this section shall prohibit a State from contracting with
the Federal Government for the provision of services or
materials necessary to carry out a program under this
section.
‘‘(d) LEAD AGENCY.—A State desiring to receive a grant under
this section shall designate, in an application submitted to the
Secretary under subsection (e)(1), an appropriate State agency
responsible for the administration of the program under this section
as the lead agency.
‘‘(e) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall by regulation
require, including—
‘‘(A) an assurance that the State will comply with
the requirements of this section;
‘‘(B) a State plan that meets the requirements of para-
graph (3); and
‘‘(C) an assurance that the State will comply with
the requirements of the State plan under paragraph (3).
‘‘(2) ANNUAL
PLAN.—The State plan contained in the
application under paragraph (1) shall be submitted for approval
annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall identify the
lead agency.
‘‘(B) USE
OF
BLOCK
GRANT
FUNDS.—The State plan
shall provide that the State shall use the amounts provided
to the State for each fiscal year under this section—
H. R. 4—277
‘‘(4) APPROVAL OF APPLICATION AND PLAN.—The Secretary
shall approve an application and State plan that satisfies the
requirements of this section.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO ASSISTANCE.—
Nothing in this section—
‘‘(1) entitles any individual or family to assistance under
this section; or
‘‘(2) limits the right of a State to impose additional limita-
tions or conditions on assistance under this section.
‘‘(g) BENEFITS FOR ALIENS.—
‘‘(1) ELIGIBILITY.—No individual who is an alien shall be
eligible to receive benefits under a State plan approved under
subsection (e)(4) if the individual is not eligible to participate
in the food stamp program due to the alien status of the
individual.
‘‘(2) INCOME.—The State plan shall provide that the income
of an alien shall be determined in accordance with section
5(i).
‘‘(h) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK
REQUIREMENTS.—No individual or household
shall be eligible to receive benefits under a State plan funded
under this section if the individual or household is not eligible
to participate in the food stamp program under subsection
(d) or (o) of section 6.
‘‘(2) WORK
PROGRAMS.—Each State shall implement an
employment and training program in accordance with the terms
and conditions of section 6(d)(4) for individuals under the pro-
gram and shall be eligible to receive funding under section
16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW OF COMPLIANCE WITH STATE PLAN.—The Sec-
retary shall review and monitor State compliance with this
section and the State plan approved under subsection (e)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after reasonable
notice to a State and opportunity for a hearing, finds that—
‘‘(i) there has been a failure by the State to comply
substantially with any provision or requirement set
forth in the State plan approved under subsection
(e)(4); or
‘‘(ii) in the operation of any program or activity
for which assistance is provided under this section,
there is a failure by the State to comply substantially
with any provision of this section;
the Secretary shall notify the State of the finding and
that no further grants will be made to the State under
this section (or, in the case of noncompliance in the oper-
ation of a program or activity, that no further grants to
the State will be made with respect to the program or
activity) until the Secretary is satisfied that there is no
longer any failure to comply or that the noncompliance
will be promptly corrected.
‘‘(B) OTHER PENALTIES.—In the case of a finding of
noncompliance made pursuant to subparagraph (A), the
Secretary may, in addition to, or in lieu of, imposing the
penalties described in subparagraph (A), impose other
appropriate penalties, including recoupment of money
H. R. 4—278
improperly expended for purposes prohibited or not author-
ized by this section and disqualification from the receipt
of financial assistance under this section.
‘‘(C) NOTICE.—The notice required under subparagraph
(A) shall include a specific identification of any additional
penalty being imposed under subparagraph (B).
‘‘(3) ISSUANCE OF REGULATIONS.—The Secretary shall estab-
lish by regulation procedures for—
‘‘(A) receiving, processing, and determining the validity
of complaints made to the Secretary concerning any failure
of a State to comply with the State plan or any requirement
of this section; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall
pay to a State that has an application approved by the Secretary
under subsection (e)(4) an amount that is equal to the grant
of the State under subsection (m) for the fiscal year.
‘‘(2) METHOD OF GRANT.—The Secretary shall make a grant
to a State for a fiscal year under this section by issuing 1
or more letters of credit for the fiscal year, with necessary
adjustments on account of overpayments or underpayments,
as determined by the Secretary.
‘‘(3) SPENDING OF GRANTS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), a grant to a State determined under subsection (m)(1)
for a fiscal year may be expended by the State only in
the fiscal year.
‘‘(B) CARRYOVER.—The State may reserve up to 10
percent of a grant determined under subsection (m)(1) for
a fiscal year to provide assistance under this section in
subsequent fiscal years, except that the reserved funds
may not exceed 30 percent of the total grant received
under this section for a fiscal year.
‘‘(4) FOOD
ASSISTANCE
AND
ADMINISTRATIVE
EXPENDI-
TURES.—In each fiscal year, not more than 6 percent of the
Federal and State funds required to be expended by a State
under this section shall be used for administrative expenses.
‘‘(5) PROVISION OF FOOD ASSISTANCE.—A State may provide
food assistance under this section in any manner determined
appropriate by the State, such as electronic benefit transfer
limited to food purchases, coupons limited to food purchases,
or direct provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating in the pro-
gram established under this section shall maintain a system in
accordance with, and shall be subject to section 16(c), including
sanctions and eligibility for incentive payment under section 16(c),
adjusted for State specific characteristics under regulations issued
by the Secretary.
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall not provide financial
assistance for any program, project, or activity under this sec-
tion if any person with responsibilities for the operation of
the program, project, or activity discriminates with respect
to the program, project, or activity because of race, religion,
color, national origin, sex, or disability.
H. R. 4—279
‘‘(2) ENFORCEMENT.—The powers, remedies, and procedures
set forth in title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.) may be used by the Secretary to enforce para-
graph (1).
‘‘(m) GRANT CALCULATION.—
‘‘(1) STATE GRANT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), from the amounts made available under section 18
for each fiscal year, the Secretary shall provide a grant
to each State participating in the program established
under this section an amount that is equal to the sum
of—
‘‘(i) the greater of, as determined by the Sec-
retary—
‘‘(I) the total dollar value of all benefits issued
under the food stamp program established under
this Act by the State during fiscal year 1994; or
‘‘(II) the average per fiscal year of the total
dollar value of all benefits issued under the food
stamp program by the State during each of fiscal
years 1992 through 1994; and
‘‘(ii) the greater of, as determined by the Sec-
retary—
‘‘(I) the total amount received by the State
for administrative costs under section 16(a) (not
including any adjustment under section 16(c)) for
fiscal year 1994; or
‘‘(II) the average per fiscal year of the total
amount received by the State for administrative
costs under section 16(a) (not including any adjust-
ment under section 16(c)) for each of fiscal years
1992 through 1994.
‘‘(B) INSUFFICIENT FUNDS.—If the Secretary finds that
the total amount of grants to which States would otherwise
be entitled for a fiscal year under subparagraph (A) will
exceed the amount of funds that will be made available
to provide the grants for the fiscal year, the Secretary
shall reduce the grants made to States under this sub-
section, on a pro rata basis, to the extent necessary.
‘‘(2) REDUCTION.—The Secretary shall reduce the grant of
a State by the amount a State has agreed to contribute under
subsection (c)(1)(C).’’.
(b) EMPLOYMENT AND TRAINING FUNDING.—Section 16(h) of the
Act (7 U.S.C. 2025(a)), as amended by section 1027(d)(2), is further
amended by adding at the end the following:
‘‘(6) BLOCK GRANT STATES.—Each State electing to operate
a program under section 25 shall—
‘‘(A) receive the greater of—
‘‘(i) the total dollar value of the funds received
under paragraph (1) by the State during fiscal year
1994; or
‘‘(ii) the average per fiscal year of the total dollar
value of all funds received under paragraph (1) by
the State during each of fiscal years 1992 through
1994; and
‘‘(B) be eligible to receive funds under paragraph (2),
within the limitations in section 6(d)(4)(K).’’.
H. R. 4—280
(c) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.—Section 17 of the Act (7 U.S.C. 2026), as amended by
section 1064(c)(2), is further amended by adding at the end the
following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.—The Secretary may conduct research on the effects and
costs of a State program carried out under section 25.’’.
SEC. 1066. AMERICAN SAMOA.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended
by section 1065, is further amended by adding at the end the
following:
‘‘SEC. 26. TERRITORY OF AMERICAN SAMOA.
‘‘From amounts made available to carry out this Act, the Sec-
retary may pay to the Territory of American Samoa not more
than $5,300,000 for each of fiscal years 1996 through 2002 to
finance 100 percent of the expenditures for the fiscal year for
a nutrition assistance program extended under section 601(c) of
Public Law 96–597 (48 U.S.C. 1469d(c)).’’.
SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended
by section 1066, is further amended by adding at the end the
following:
‘‘SEC. 27. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
‘‘(a) DEFINITION OF COMMUNITY FOOD PROJECTS.—In this sec-
tion, the term ‘community food project’ means a community-based
project that requires a 1-time infusion of Federal assistance to
become self-sustaining and that is designed to—
‘‘(1) meet the food needs of low-income people;
‘‘(2) increase the self-reliance of communities in providing
for their own food needs; and
‘‘(3) promote comprehensive responses to local food, farm,
and nutrition issues.
‘‘(b) AUTHORITY TO PROVIDE ASSISTANCE.—
‘‘(1) IN GENERAL.—From amounts made available to carry
out this Act, the Secretary may make grants to assist eligible
private nonprofit entities to establish and carry out community
food projects.
‘‘(2) LIMITATION ON GRANTS.—The total amount of funds
provided as grants under this section for any fiscal year may
not exceed $2,500,000.
‘‘(c) ELIGIBLE ENTITIES.—To be eligible for a grant under sub-
section (b), a private nonprofit entity must—
‘‘(1) have experience in the area of—
‘‘(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the develop-
ment of new markets in low-income communities for agri-
cultural producers; or
‘‘(B) job training and business development activities
for food-related activities in low-income communities;
‘‘(2) demonstrate competency to implement a project, pro-
vide fiscal accountability, collect data, and prepare reports and
other necessary documentation; and
H. R. 4—281
‘‘(3) demonstrate a willingness to share information with
researchers, practitioners, and other interested parties.
‘‘(d) PREFERENCE FOR CERTAIN PROJECTS.—In selecting commu-
nity food projects to receive assistance under subsection (b), the
Secretary shall give a preference to projects designed to—
‘‘(1) develop linkages between 2 or more sectors of the
food system;
‘‘(2) support the development of entrepreneurial projects;
‘‘(3) develop innovative linkages between the for-profit and
nonprofit food sectors; or
‘‘(4) encourage long-term planning activities and multi-sys-
tem, interagency approaches.
‘‘(e) MATCHING FUNDS REQUIREMENTS.—
‘‘(1) REQUIREMENTS.—The Federal share of the cost of
establishing or carrying out a community food project that
receives assistance under subsection (b) may not exceed 50
percent of the cost of the project during the term of the grant.
‘‘(2) CALCULATION.—In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a pay-
ment in cash or in kind, fairly evaluated, including facilities,
equipment, or services.
‘‘(3) SOURCES.—An entity may provide for the non-Federal
share through State government, local government, or private
sources.
‘‘(f) TERM OF GRANT.—
‘‘(1) SINGLE
GRANT.—A community food project may be
supported by only a single grant under subsection (b).
‘‘(2) TERM.—The term of a grant under subsection (b) may
not exceed 3 years.
‘‘(g) TECHNICAL ASSISTANCE AND RELATED INFORMATION.—
‘‘(1) TECHNICAL ASSISTANCE.—In carrying out this section,
the Secretary may provide technical assistance regarding
community food projects, processes, and development to an
entity seeking the assistance.
‘‘(2) SHARING INFORMATION.—
‘‘(A) IN GENERAL.—The Secretary may provide for the
sharing of information concerning community food projects
and issues among and between government, private for-
profit and nonprofit groups, and the public through publica-
tions, conferences, and other appropriate forums.
‘‘(B) OTHER INTERESTED PARTIES.—The Secretary may
share information concerning community food projects with
researchers, practitioners, and other interested parties.
‘‘(h) EVALUATION.—
‘‘(1) IN
GENERAL.—The Secretary shall provide for the
evaluation of the success of community food projects supported
using funds under this section.
‘‘(2) REPORT.—Not later than January 30, 2002, the Sec-
retary shall submit a report to Congress regarding the results
of the evaluation.’’.
H. R. 4—282
Subtitle B—Commodity Distribution
Programs
SEC. 1071. COMMODITY 
DISTRIBUTION 
PROGRAM; 
COMMODITY
SUPPLEMENTAL FOOD PROGRAM.
(a) REAUTHORIZATION.—The first sentence of section 4(a) of
the Agriculture and Consumer Protection Act of 1973 (Public Law
93–86; 7 U.S.C. 612c note) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
(b) FUNDING.—Section 5 of the Act (Public Law 93–86; 7 U.S.C.
612c note) is amended—
(1) in subsection (a)(2), by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(2) in subsection (d)(2), by striking ‘‘1995’’ and inserting
‘‘2002’’.
SEC. 1072. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency Food Assist-
ance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note) is amended
to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term ‘additional
commodities’ means commodities made available under section
214 in addition to the commodities made available under sec-
tions 202 and 203D.
‘‘(2) AVERAGE
MONTHLY
NUMBER
OF
UNEMPLOYED
PER-
SONS.—The term ‘average monthly number of unemployed per-
sons’ means the average monthly number of unemployed
persons in each State in the most recent fiscal year for which
information concerning the number of unemployed persons is
available, as determined by the Bureau of Labor Statistics
of the Department of Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term ‘eligible recipi-
ent agency’ means a public or nonprofit organization—
‘‘(A) that administers—
‘‘(i) an emergency feeding organization;
‘‘(ii) a charitable institution (including a hospital
and a retirement home, but excluding a penal institu-
tion) to the extent that the institution serves needy
persons;
‘‘(iii) a summer camp for children, or a child nutri-
tion program providing food service;
‘‘(iv) a nutrition project operating under the Older
Americans Act of 1965 (42 U.S.C. 3001 et seq.), includ-
ing a project that operates a congregate nutrition site
and a project that provides home-delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the appropriate State
agency, or by the Secretary; and
‘‘(C) that has been approved by the Secretary for
participation in the program established under this Act.
‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The term ‘emer-
gency feeding organization’ means a public or nonprofit
organization that administers activities and projects (including
H. R. 4—283
the activities and projects of a charitable institution, a food
bank, a food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recipient agency)
providing nutrition assistance to relieve situations of emergency
and distress through the provision of food to needy persons,
including low-income and unemployed persons.
‘‘(5) FOOD BANK.—The term ‘food bank’ means a public
or charitable institution that maintains an established oper-
ation involving the provision of food or edible commodities,
or the products of food or edible commodities, to food pantries,
soup kitchens, hunger relief centers, or other food or feeding
centers that, as an integral part of their normal activities,
provide meals or food to feed needy persons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’ means a public
or private nonprofit organization that distributes food to low-
income and unemployed households, including food from sources
other than the Department of Agriculture, to relieve situations
of emergency and distress.
‘‘(7) POVERTY LINE.—The term ‘poverty line’ has the same
meaning given the term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’ means a pub-
lic or charitable institution that, as an integral part of the
normal activities of the institution, maintains an established
feeding operation to provide food to needy homeless persons
on a regular basis.
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMODITIES.—The term
‘total value of additional commodities’ means the actual cost
of all additional commodities made available under section
214 that are paid by the Secretary (including the distribution
and processing costs incurred by the Secretary).
‘‘(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO
EACH STATE.—The term ‘value of additional commodities allo-
cated to each State’ means the actual cost of additional commod-
ities made available under section 214 and allocated to each
State that are paid by the Secretary (including the distribution
and processing costs incurred by the Secretary).’’.
(b) STATE PLAN.—Section 202A of the Act (7 U.S.C. 612c note)
is amended to read as follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under this Act, a
State shall submit a plan of operation and administration every
4 years to the Secretary for approval. The plan may be amended
at any time, with the approval of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for distributing
the commodities received under this Act;
‘‘(2) set forth a plan of operation and administration to
expeditiously distribute commodities under this Act;
‘‘(3) set forth the standards of eligibility for recipient agen-
cies; and
‘‘(4) set forth the standards of eligibility for individual
or household recipients of commodities, which shall require—
‘‘(A) individuals or households to be comprised of needy
persons; and
H. R. 4—284
‘‘(B) individual or household members to be residing
in the geographic location served by the distributing agency
at the time of applying for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall encourage
each State receiving commodities under this Act to establish a
State advisory board consisting of representatives of all interested
entities, both public and private, in the distribution of commodities
received under this Act in the State.’’.
(c) AUTHORIZATION
OF APPROPRIATIONS
FOR ADMINISTRATIVE
FUNDS.—Section 204(a)(1) of the Act (7 U.S.C. 612c note) is
amended—
(1) in the first sentence—
(A) by striking ‘‘1991 through 1995’’ and inserting
‘‘1996 through 2002’’; and
(B) by striking ‘‘for State and local’’ and all that follows
through ‘‘under this title’’ and inserting ‘‘to pay for the
direct and indirect administrative costs of the State related
to the processing, transporting, and distributing to eligible
recipient agencies of commodities provided by the Secretary
under this Act and commodities secured from other
sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY
OF COMMODITIES.—Section 214 of the Act (7
U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and (j);
(2) by redesignating subsections (f) through (i) as sub-
sections (a) through (d), respectively;
(3) in subsection (b), as redesignated by paragraph (2)—
(A) in the first sentence, by striking ‘‘subsection (f)
or subsection (j) if applicable,’’ and inserting ‘‘subsection
(a)’’; and
(B) in the second sentence, by striking ‘‘subsection
(f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated by paragraph
(2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made available for each
fiscal year under this section shall be delivered at reasonable
intervals to States based on the grants calculated under sub-
section (a), or reallocated under subsection (b), before December
31 of the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be entitled to receive
the value of additional commodities determined under sub-
section (a).’’; and
(5) in subsection (d), as redesignated by paragraph (2),
by striking ‘‘or reduce’’ and all that follows through ‘‘each
fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C. 612c note)
is amended—
(1) in the first sentence of section 203B(a), by striking
‘‘203 and 203A of this Act’’ and inserting ‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each place it appears
and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by striking
‘‘(except as otherwise provided for in section 214(j))’’; and
(4) by striking section 212.
H. R. 4—285
(f) REPORT ON EFAP.—Section 1571 of the Food Security Act
of 1985 (Public Law 99–198; 7 U.S.C. 612c note) is repealed.
(g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP
PROGRAM.—The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 1067, is further amended by adding at
the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY
FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts appropriated
under this Act, for each of fiscal years 1997 through 2002, the
Secretary shall purchase $300,000,000 of a variety of nutritious
and useful commodities of the types that the Secretary has the
authority to acquire through the Commodity Credit Corporation
or under section 32 of the Act entitled ‘An Act to amend the
Agricultural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities
to States for distribution in accordance with section 214 of the
Emergency Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note).
‘‘(b) 
BASIS
FOR
COMMODITY
PURCHASES.—In 
purchasing
commodities under subsection (a), the Secretary shall, to the extent
practicable and appropriate, make purchases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and distributing agen-
cies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by subsection
(d) shall become effective on October 1, 1996.
SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food Bank Act
of 1987 (Public Law 100–232; 7 U.S.C. 612c note) is repealed.
SEC. 1074. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law 100–435; 7
U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROCESSING.
Section 1773 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101–624; 7 U.S.C. 612c note) is amended
by striking subsection (f).
SEC. 1076. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking
‘‘1995’’ and inserting ‘‘2002’’.