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received benefits under a State program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) during the summer
of 1993.
‘‘(2) PROCEDURE.—
‘‘(A) IN GENERAL.—A State that has elected
to carry out an employment initiatives program
under paragraph (1) may use amounts equal to
the food stamp allotments that would otherwise
be issued to a household under the food stamp
program, but for the operation of this subsection,
to provide cash benefits in lieu of the food stamp
allotments to the household if the household is el-
igible under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay to
each State that has elected to carry out an em-
ployment initiatives program under paragraph
(1) an amount equal to the value of the allot-
ment that each household would be eligible to re-
ceive under this Act but for the operation of this
subsection.
‘‘(C) OTHER PROVISIONS.—For purposes of
the food stamp program (other than this sub-
section)—
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‘‘(i) cash assistance under this sub-
section shall be considered to be an allot-
ment; and
‘‘(ii) each household receiving cash ben-
efits under this subsection shall not receive
any other food stamp benefit for the period
for which the cash assistance is provided.
‘‘(D) ADDITIONAL PAYMENTS.—Each State
that has elected to carry out an employment ini-
tiatives program under paragraph (1) shall—
‘‘(i) increase the cash benefits provided
to each household under this subsection to
compensate for any State or local sales tax
that may be collected on purchases of food
by any household receiving cash benefits
under this subsection, unless the Secretary
determines on the basis of information pro-
vided by the State that the increase is un-
necessary on the basis of the limited nature
of the items subject to the State or local
sales tax; and
‘‘(ii) pay the cost of any increase in
cash benefits required by clause (i).
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‘‘(3) ELIGIBILITY.—A household shall be eligible
to receive cash benefits under paragraph (2) if an
adult member of the household—
‘‘(A) has worked in unsubsidized employ-
ment for not less than the preceding 90 days;
‘‘(B) has earned not less than $350 per
month from the employment referred to in sub-
paragraph (A) for not less than the preceding 90
days;
‘‘(C)(i) is receiving benefits under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.); or
‘‘(ii) was receiving benefits under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) at the
time the member first received cash benefits
under this subsection and is no longer eligible for
the State program because of earned income;
‘‘(D) is continuing to earn not less than
$350 per month from the employment referred to
in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of
food stamp benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a pro-
gram under this subsection for 2 years shall provide
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to the Secretary a written evaluation of the impact of
cash assistance under this subsection. The State agen-
cy, with the concurrence of the Secretary, shall deter-
mine the content of the evaluation.’’.
SEC. 13054. REAUTHORIZATION OF PUERTO RICO NUTRI-
TION ASSISTANCE 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, $1,182,000,000 for fiscal year
1997, $1,223,000,000 for fiscal year 1998, $1,266,000,000
for fiscal year 1999, $1,310,000,000 for fiscal year 2000,
$1,357,000,000 for fiscal year 2001, and $1,404,000,000 for
fiscal year 2002’’.
SEC. 13055. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Act (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 sec-
tion, the term ‘Federal costs’ does not include any Federal
costs incurred under section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State
agency may elect to carry out a Simplified Food Stamp
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Program (referred to in this section as a ‘Program’) in ac-
cordance with this section.
‘‘(c) OPERATION OF PROGRAM.—If a State agency
elects to carry out a Program, within the State or a politi-
cal 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 automatically be eligible to partici-
pate in the Program; and
‘‘(2) subject to subsection (f), benefits under the
Program shall be determined under rules and proce-
dures 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 Se-
curity 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 op-
erate a Program unless the Secretary approves a
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State plan for the operation of the Program under
paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall
approve any State plan to carry out a Program if the
Secretary determines that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation that
the plan will not increase Federal costs for any
fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(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 Pro-
gram being carried out by a State agency is increas-
ing Federal costs under this Act above the Federal
costs incurred under the food stamp program in oper-
ation 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 program that is not attributable to public
assistance; and
‘‘(C) the thrifty food plan under section
3(o).
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‘‘(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 fis-
cal year, the Secretary shall notify the State agency
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 agency 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 agency
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 to operate a Program and the State
agency shall be ineligible to operate a future Pro-
gram.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a
State or political subdivision of a State may follow
the rules and procedures established by the State or
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political subdivision under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or under the food stamp program.
‘‘(2) STANDARDIZED
DEDUCTIONS.—In operat-
ing a Program, a State may standardize the deduc-
tions provided under section 5(e). In developing the
standardized deduction, the State shall consider the
work expenses, dependent care costs, and shelter costs
of participating 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 sec-
tion 11;
‘‘(E) paragraphs (8), (12), (17), (19), (21),
(26), and (27) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable re-
quirement established by the State under a State
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program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—Notwith-
standing any other provision of this section, a house-
hold may not receive benefits under this section as a
result of the eligibility of the household under a State
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), unless the Sec-
retary determines that any household with income
above 130 percent of the poverty guidelines is not eli-
gible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)), as amended by sections 13028(b),
is further amended by adding at the end the following:
‘‘(27) if a State agency elects to carry out a
Simplified Food Stamp Program under section 24,
the plans of the State agency for operating the pro-
gram, including—
‘‘(A) the rules and procedures to be followed
by the State to determine food stamp benefits;
‘‘(B) how the State will address the needs of
households that experience high shelter costs in
relation to the incomes of the households; and
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‘‘(C) a description of the method by which
the State 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 13039, is further amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is
amended—
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through
(l) as subsections (i) through (k), respectively.
SEC. 13056. 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 13055, is fur-
ther 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 assist-
ance’ means assistance that may be used only to ob-
tain food, as defined in section 3(g).
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‘‘(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 residing in the State; and
‘‘(2) funds for administrative costs incurred in
providing the assistance.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—A State may annually elect
to participate in the program established under sub-
section (b) if the State—
‘‘(A) has fully implemented an electronic
benefit transfer system that operates in the entire
State;
‘‘(B) has a payment error rate under sec-
tion 16(c) that is not more than 6 percent as an-
nounced 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
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program, the amount determined under para-
graph (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 con-
tribute, for a fiscal year, an amount equal to—
‘‘(A)(i) the benefits issued in the State; mul-
tiplied by
‘‘(ii) the payment error rate of the State;
minus
‘‘(B)(i) the benefits issued in the State; mul-
tiplied by
‘‘(ii) 6 percent.
‘‘(B) 
DETERMINATION.—Notwithstanding
sections 13 and 14, the calculation of the con-
tribution shall be based solely on the determina-
tion of the Secretary of the payment error rate.
‘‘(C) DATA.—For purposes of implementing
subparagraph (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
PRO-
GRAM.—A State that elects to participate in the
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program under paragraph (1) may in a subse-
quent year decline to elect to participate in the
program and instead participate in the food
stamp program in accordance with the other sec-
tions of this Act.
‘‘(B) LIMITATION.—Subsequent to re-enter-
ing 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 eli-
gible to elect to participate in the program estab-
lished under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is partici-
pating in the program established under sub-
section (b) shall not be subject to, or receive any
benefit under, this Act except as provided in this
section.
‘‘(B) CONTRACT
WITH
FEDERAL
GOVERN-
MENT.—Nothing in this section shall prohibit a
State from contracting with the Federal Govern-
ment for the provision of services or materials
necessary to carry out a program under this sec-
tion.
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‘‘(d) LEAD AGENCY.—A State desiring to receive a
grant under this section shall designate, in an application
submitted to the Secretary under subsection (e)(1), an ap-
propriate State agency responsible for the administration
of the program under this section as the lead agency.
‘‘(e) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive as-
sistance 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 com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (3); and
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (3).
‘‘(2) ANNUAL PLAN.—The State plan contained
in the application under paragraph (1) shall be sub-
mitted for approval annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall
identify the lead agency.
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‘‘(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—
‘‘(i) to provide food assistance to needy
individuals and families residing in the
State, other than residents of institutions
who are ineligible for food stamps under
section 3(i); and
‘‘(ii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) GROUPS
SERVED.—The State plan
shall describe how and to what extent the pro-
gram will serve specific groups of individuals
and families and how the treatment will differ
from treatment under the food stamp program
under the other sections of this Act of the indi-
viduals and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) 
migrants 
or 
seasonal 
farm-
workers;
‘‘(iii) homeless individuals and fami-
lies;
‘‘(iv) individuals and families who live
in institutions eligible under section 3(i);
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‘‘(v) individuals and families with
earnings; and
‘‘(vi) members of Indian tribes or trib-
al organizations.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The
State plan shall provide that benefits under this
section shall be available throughout the entire
State.
‘‘(E) NOTICE
AND
HEARINGS.—The State
plan shall provide that an individual or family
who applies for, or receives, assistance under this
section shall be provided with notice of, and an
opportunity for a hearing on, any action under
this section that adversely affects the individual
or family.
‘‘(F) ASSESSMENT OF NEEDS.—The State
plan shall assess the food and nutrition needs of
needy persons residing in the State.
‘‘(G) ELIGIBILITY STANDARDS.—The State
plan shall describe the income, resource, and
other eligibility standards that are established
for the receipt of assistance under this section.
‘‘(H) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall establish
a system for the exchange of information with
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other States to verify the identity and receipt of
benefits by recipients.
‘‘(I) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use and
disclosure of information about any individual
or family receiving assistance under this section.
‘‘(J) OTHER INFORMATION.—The State plan
shall contain such other information as may be
required by the Secretary.
‘‘(4) APPROVAL OF APPLICATION AND PLAN.—
The Secretary shall approve an application and State
plan that satisfies the requirements of this section.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO AS-
SISTANCE.—Nothing in this section—
‘‘(1) entitles any individual or family to assist-
ance under this section; or
‘‘(2) limits the right of a State to impose addi-
tional limitations or conditions on assistance under
this section.
‘‘(g) BENEFITS FOR ALIENS.—
‘‘(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 individ-
ual is not eligible to participate in the food stamp
program due to the alien status of the individual.
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‘‘(2) INCOME.—The State plan shall provide that
the income of an alien shall be determined in accord-
ance 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 imple-
ment an employment and training program in ac-
cordance with the terms and conditions of section
6(d)(4) for individuals under the program and shall
be eligible to receive funding under section 16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor State
compliance with this section and the State plan ap-
proved 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—
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‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (e)(4); or
‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section;
the Secretary shall notify the State of the finding
and that no further grants will be made to the
State under this section (or, in the case of non-
compliance in the operation of a program or ac-
tivity, 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 non-
compliance will be promptly corrected.
‘‘(B) OTHER PENALTIES.—In the case of a
finding of noncompliance made pursuant to sub-
paragraph (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 im-
properly expended for purposes prohibited or not
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authorized 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 identi-
fication of any additional penalty being imposed
under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and 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 sec-
tion; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the Sec-
retary 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, adjusted for any re-
duction required under subsection (m)(2).
‘‘(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
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coupons limited to food purchases, or direct provision
of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating in
the program 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 pay-
ment under section 16(c).
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall not pro-
vide financial assistance for any program, project, or
activity under this section if any person with respon-
sibilities for the operation of the program, project, or
activity discriminates with respect to the program,
project, or activity because of race, religion, color, na-
tional origin, sex, or disability.
‘‘(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 paragraph (1).
‘‘(m) GRANT CALCULATION.—
‘‘(1) STATE GRANT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 for each fiscal year,
the Secretary shall provide a grant to each State
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participating in the program established under
this section an amount that is equal to the sum
of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(I) the total dollar value of all
benefits issued under the food stamp
program established under this Act by
the State during fiscal year 1994; or
‘‘(II) the average per fiscal year of
the total dollar value of all benefits is-
sued under the food stamp program by
the State during each of fiscal years
1992 through 1994; and
‘‘(ii) the greater of, as determined by
the Secretary—
‘‘(I) the total amount received by
the State for administrative costs
under section 16 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 for each of fiscal years 1992 through
1994.
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‘‘(B) INSUFFICIENT
FUNDS.—If the Sec-
retary finds that the total amount of grants to
which States would otherwise be entitled for a
fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available
to provide the grants for the fiscal year, the Sec-
retary shall reduce the grants made to States
under this subsection, on a pro rata basis, to the
extent necessary.
‘‘(2) REDUCTION.—The Secretary shall reduce
the grant of a State by the amount a State has agreed
to contribute under subsection (c)(1)(C).’’.
(b) EMPLOYMENT AND TRAINING FUNDING.—Section
16(h) of the Act (7 U.S.C. 2025(a)), as amended by section
13027(d)(2), is further amended by adding at the end the
following:
‘‘(6) BLOCK GRANT STATES.—Each State elect-
ing to operate a program under section 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
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paragraph (1) by the State during each of
fiscal years 1992 through 1994; and
‘‘(B) be eligible to receive funds under para-
graph (2), within the limitations in section
6(d)(4)(K).’’.
(c) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—Section 17 of the Act (7 U.S.C.
2026), as amended by section 13055(c)(2), is further
amended by adding at the end the following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—The Secretary may conduct research
on the effects and costs of a State program carried out
under section 25.’’.
SEC. 13057. AMERICAN SAMOA.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 13056, 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 Secretary 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)).’’.
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SEC. 13058. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
as amended by section 13057, 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 section, 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 avail-
able 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 subsection (b), a private nonprofit entity must—
‘‘(1) have experience in the area of—
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‘‘(A) community food work, particularly
concerning small and medium-sized farms, in-
cluding the provision of food to people in low-in-
come communities and the development of new
markets in low-income communities for agricul-
tural producers; or
‘‘(B) job training and business development
activities for food-related activities in low-in-
come communities;
‘‘(2) demonstrate competency to implement a
project, provide fiscal accountability, collect data, and
prepare reports and other necessary documentation;
and
‘‘(3) demonstrate a willingness to share informa-
tion with researchers, practitioners, and other inter-
ested parties.
‘‘(d) PREFERENCE FOR CERTAIN PROJECTS.—In se-
lecting community 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;
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‘‘(3) develop innovative linkages between the for-
profit and nonprofit food sectors; or
‘‘(4) encourage long-term planning activities and
multi-system, 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 pro-
vide for the share through a payment 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 sub-
section (b).
‘‘(2) TERM.—The term of a grant under sub-
section (b) may not exceed 3 years.
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‘‘(g) TECHNICAL ASSISTANCE AND RELATED INFORMA-
TION.—
‘‘(1) TECHNICAL ASSISTANCE.—In carrying out
this section, the Secretary may provide technical as-
sistance 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 concern-
ing community food projects and issues among
and between government, private for-profit and
nonprofit groups, and the public through publi-
cations, conferences, and other appropriate fo-
rums.
‘‘(B) OTHER
INTERESTED
PARTIES.—The
Secretary may share information concerning
community food projects with researchers, practi-
tioners, 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 Secretary shall submit a report to Congress
regarding the results of the evaluation.’’.
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CHAPTER 2—COMMODITY DISTRIBUTION
PROGRAMS
SEC. 13071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL COMMODITIES.—The term ‘ad-
ditional commodities’ means commodities made avail-
able under section 214 in addition to the commodities
made available under sections 202 and 203D.
‘‘(2) AVERAGE
MONTHLY
NUMBER
OF
UNEM-
PLOYED PERSONS.—The term ‘average monthly num-
ber of unemployed persons’ means the average month-
ly number of unemployed persons in each State in the
most recent fiscal year for which information concern-
ing 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 recipient agency’ means a public or nonprofit
organization—
‘‘(A) that administers—
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‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (includ-
ing a hospital and a retirement home, but
excluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965 (42
U.S.C. 3001 et seq.), including a project
that operates a congregate nutrition site
and a project that provides home-delivered
meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the appro-
priate State agency, or by the Secretary; and
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The
term ‘emergency feeding organization’ means a public
or nonprofit organization that administers activities
and projects (including the activities and projects of
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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 unem-
ployed persons.
‘‘(5) FOOD BANK.—The term ‘food bank’ means
a public or charitable institution that maintains an
established operation involving the provision of food
or edible commodities, or the products of food or edi-
ble commodities, to food pantries, soup kitchens, hun-
ger 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 house-
holds, including food from sources other than the De-
partment of Agriculture, to relieve situations of emer-
gency and distress.
‘‘(7) POVERTY
LINE.—The term ‘poverty line’
has the same meaning given the term in section
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673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as inte-
gral 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
COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional commod-
ities made available under section 214 that are paid
by the Secretary (including the distribution and proc-
essing costs incurred by the Secretary).
‘‘(10) VALUE OF ADDITIONAL COMMODITIES AL-
LOCATED TO EACH STATE.—The term ‘value of addi-
tional commodities allocated to each State’ means the
actual cost of additional commodities made available
under section 214 and allocated to each State that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).’’.
(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 adminis-
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tration 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 adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(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 representa-
tives of all interested entities, both public and private, in
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the distribution of commodities received under this Act in
the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMIN-
ISTRATIVE 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 ad-
ministrative costs of the State related to the
processing, transporting, and distributing to eli-
gible recipient agencies of commodities provided
by the Secretary under this Act and commodities
secured from other sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the
Act (7 U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i)
as subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by para-
graph (2)—
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(A) in the first sentence, by striking ‘‘sub-
section (f) or subsection (j) if applicable,’’ and
inserting ‘‘subsection (a)’’; and
(B) in the second sentence, by striking ‘‘sub-
section (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 deliv-
ered at reasonable intervals to States based on the
grants calculated under subsection (a), or reallocated
under subsection (b), before December 31 of the follow-
ing fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities de-
termined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (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’’;
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(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by
striking ‘‘(except as otherwise provided for in section
214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food Se-
curity 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 13058, is further
amended by adding at the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts
appropriated under this Act, for each of fiscal years 1997
through 2002, the Secretary shall purchase $300,000,000 of
a variety of nutritious and useful commodities of the types
that the Secretary has the authority to acquire through the
Commodity Credit Corporation or under 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 Emer-
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gency Food Assistance Act of 1983 (Public Law 98–8; 7
U.S.C. 612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur-
chasing commodities under subsection (a), the Secretary
shall, to the extent practicable and appropriate, make pur-
chases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and distrib-
uting agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by sub-
section (d) shall become effective on October 1, 1996.
Subtitle K—Miscellaneous
SEC. 13101. FOOD STAMP ELIGIBILITY
Section 6(f) of the Food Stamp Act of 1977 (7
U.S.C. 2015(f)) is amended by striking the third sentence
and inserting the following: The State agency shall, at its
option, consider either all income and financial resources
of the individual rendered ineligible to participate in the
food stamp program under this subsection, or such income,
less a pro rata share, and the financial resources of the in-
eligible individual, to determine the eligibility and the
value of the allotment of the household of which such indi-
vidual is a member.’
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SEC. 13102. REDUCTION IN BLOCK GRANTS FOR SOCIAL
SERVICES.
Section 2003(c) of the Social Security Act (42
U.S.C. 1397b) is amended—
(1) by striking ‘and’ at the end of paragraph (4);
and
(2) by striking paragraph (5) and inserting the
following:
‘(5) $2,800,000,000 for each of the fiscal years
1990 through 1996; and
‘(6) $2,240,000,000 for each fiscal year after fis-
cal year 1996.’ .
Subtitle L—Reform of the Earned Income Credit
SEC. 13200. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever
in this subtitle an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to
a section or other provision of the Internal Revenue Code
of 1986.
SEC. 13201. EARNED INCOME CREDIT DENIED TO INDIVID-
UALS NOT AUTHORIZED TO BE EMPLOYED IN
THE UNITED STATES.
(a) IN GENERAL.—Section 32(c)(1) (relating to in-
dividuals eligible to claim the earned income credit) is
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amended by adding at the end the following new subpara-
graph:
‘‘(F) IDENTIFICATION
NUMBER
REQUIRE-
MENT.—The term ‘eligible individual’ does not
include any individual who does not include on
the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identi-
fication number, and
‘‘(ii) if the individual is married
(within the meaning of section 7703), the
taxpayer identification number of such in-
dividual’s spouse.’’.
(b) SPECIAL IDENTIFICATION NUMBER.—Section
32 is amended by adding at the end the following new sub-
section:
‘‘(l) IDENTIFICATION NUMBERS.—Solely for pur-
poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer
identification number means a social security number is-
sued to an individual by the Social Security Administra-
tion (other than a social security number issued pursuant
to clause (II) (or that portion of clause (III) that relates
to clause (II)) of section 205(c)(2)(B)(i) of the Social Secu-
rity Act.’’.
(c) EXTENSION OF PROCEDURES APPLICABLE TO
MATHEMATICAL
OR
CLERICAL
ERRORS.—Section
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6213(g)(2) (relating to the definition of mathematical or
clerical errors) is amended by striking ‘‘and’’ at the end
of subparagraph (D), by striking the period at the end of
subparagraph (E) and inserting a comma, and by insert-
ing after subparagraph (E) the following new subpara-
graphs:
‘‘(F) an omission of a correct taxpayer
identification number required under section 32
(relating to the earned income credit) to be in-
cluded on a return, and
‘‘(G) an entry on a return claiming the
credit under section 32 with respect to net earn-
ings from self-employment described in section
32(c)(2)(A) to the extent the tax imposed by sec-
tion 1401 (relating to self-employment tax) on
such net earnings has not been paid.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 13202. REPEAL OF EARNED INCOME CREDIT FOR INDI-
VIDUALS WITHOUT CHILDREN.
(a) IN GENERAL.—Subparagraph (A) of section
32(c)(1) (defining eligible individual) is amended to read
as follows:
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‘‘(A) IN GENERAL.—The term ‘eligible indi-
vidual’ means any individual who has a qualify-
ing child for the taxable year.’’.
(b) CONFORMING AMENDMENTS.—Each of the ta-
bles contained in paragraphs (1) and (2) of section 32(b)
are amended by striking the items relating to no qualify-
ing children.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 13203. MODIFICATION OF EARNED INCOME CREDIT
AMOUNT AND PHASEOUT.
(a) MODIFICATION OF PHASEOUT.—Subparagraph
(B) of section 32(a)(2) is amended to read as follows:
‘‘(B) the sum of—
‘‘(i) the initial phaseout percentage of
so much of the adjusted gross income (or, if
greater, the earned income) of the taxpayer
for the taxable year as exceeds the initial
phaseout amount but does not exceed the
final phaseout amount, plus
‘‘(ii) the final phaseout percentage of
so much of the adjusted gross income (or, if
greater, the earned income) of the taxpayer