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‘‘(A) IN
GENERAL.—The Secretary shall
allow a standard deduction for each household in
the 48 contiguous States and the District of Co-
lumbia, Alaska, Hawaii, Guam, and the Virgin
Islands of the United States of—
‘‘(i) for fiscal year 1995, $134, $229,
$189, $269, and $118, respectively;
‘‘(ii) for fiscal year 1996, $132, $225,
$186, $265, and $116, respectively; and
‘‘(iii) for fiscal years 1997 through
2002, $124, $211, $174, $248 and $109, re-
spectively.
‘‘(B) ADJUSTMENT
FOR
INFLATION.—On
October 1, 2002, and each October 1 thereafter,
the Secretary shall adjust the standard deduction
to the nearest lower dollar increment to reflect
changes in the Consumer Price Index for all
urban consumers published by the Bureau of
Labor Statistics, for items other than food, for
the 12-month period ending the preceding June
30.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a household with earned in-
come shall be allowed a deduction of 20 percent
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of all earned income (other than income excluded
by subsection (d)), to compensate for taxes, other
mandatory deductions from salary, and work ex-
penses.
‘‘(B) EXCEPTION.—The deduction described
in subparagraph (A) 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 ex-
cluded expenses described in subparagraph (B))
for dependent care, to a dependent care deduc-
tion, 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 pay-
ments 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—
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‘‘(i) expenses paid on behalf of the
household by a third party;
‘‘(ii) amounts made available and ex-
cluded for the expenses referred to in sub-
paragraph (A) under subsection (d)(3); and
‘‘(iii) expenses that are paid under sec-
tion 6(d)(4).
‘‘(4) DEDUCTION
FOR
CHILD
SUPPORT
PAY-
MENTS.—
‘‘(A) IN GENERAL.—A household shall be en-
titled to a deduction for child support payments
made by a household member to or for an indi-
vidual who is not a member of the household if
the household member is legally obligated to
make the payments.
‘‘(B) 
METHODS
FOR
DETERMINING
AMOUNT.—The Secretary may prescribe by regu-
lation 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 DEDUCTION.—A State
agency may develop a standard homeless shelter de-
duction, which shall not exceed $139 per month, for
such expenses as may reasonably be expected to be in-
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curred by households in which all members are home-
less individuals but are not receiving free shelter
throughout the month. A State agency that develops
the deduction may use the deduction in determining
eligibility and allotments for the households, except
that the State agency may prohibit the use of the de-
duction 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 household by a third party, to
an excess medical expense deduction for the por-
tion of the actual costs of allowable medical ex-
penses, incurred by the elderly or disabled mem-
ber, 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 sub-
paragraph (A) a method of claiming a de-
duction for recurring medical expenses that
are initially verified under the excess medi-
cal expense deduction in lieu of submitting
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information or verification on actual ex-
penses 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 dis-
abled household member choosing to de-
duct 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 (in-
cluding changes that can be reasonably
anticipated based on available infor-
mation about the medical condition of
the member, public or private medical
insurance coverage, and the current
verified medical expenses incurred by
the member); and
‘‘(III) not require further report-
ing or verification of a change in med-
ical expenses if such a change has been
anticipated for the certification period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
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‘‘(A) IN
GENERAL.—A household shall be
entitled, with respect to expenses other than ex-
penses 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 al-
lowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—
‘‘(i) PRIOR TO SEPTEMBER 30, 1995.—
In the case of a household that does not con-
tain an elderly or disabled individual, dur-
ing the 15-month period ending September
30, 1995, the excess shelter expense deduc-
tion shall not exceed—
‘‘(I) in the 48 contiguous States
and the District of Columbia, $231 per
month; and
‘‘(II) in Alaska, Hawaii, Guam,
and the Virgin Islands of the United
States, $402, $330, $280, and $171 per
month, respectively.
‘‘(ii) AFTER SEPTEMBER 30, 1995.—In
the case of a household that does not contain
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an elderly or disabled individual, during
the 15-month period ending December 31,
1996, 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 allow-
ance in accordance with regulations pro-
mulgated 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—
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‘‘(I) does not incur a heating or
cooling expense, as the case may be;
‘‘(II) does incur a heating or cool-
ing expense but is located in a public
housing unit that has central utility
meters and charges households, with re-
gard 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 pro-
gram, another household participating
in the food stamp program, or both,
unless the allowance is prorated be-
tween the household and the other indi-
vidual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) IN GENERAL.—A State agen-
cy 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
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and cooling and 1 or more stand-
ards that do not include the cost
of heating and cooling; and
‘‘(bb) the Secretary finds that
the standards will not result in
an increased cost to the Secretary.
‘‘(II) HOUSEHOLD ELECTION.—A
State agency that has not made the use
of a standard utility allowance man-
datory under subclause (I) shall allow
a household to switch, at the end of a
certification period, between the stand-
ard utility allowance 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 available to households receiving
a payment, or on behalf of which a
payment is made, under the Low-In-
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come 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 house-
holds on behalf of which a payment de-
scribed 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 sep-
arate allowance but makes a single
standard utility allowance available to
households incurring heating or cooling
expenses (other than a household de-
scribed in subclause (I) or (II) of sub-
paragraph (C)(ii)) may not be re-
quired to reduce the allowance due to
the provision (directly or indirectly) of
assistance 
under 
the 
Low-Income
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Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.).
‘‘(IV) 
PRORATION
OF
ASSIST-
ANCE.—For the purpose of the food
stamp program, assistance provided
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621
et seq.) shall be considered to be pro-
rated over the entire heating 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 ‘‘veri-
fies higher expenses’’.
SEC. 310. AMOUNT OF VEHICLE ASSET LIMITATION.
The first sentence of section 5(g)(2) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking
‘‘through September 30, 1995’’ and all that follows through
‘‘such date and on’’ and inserting ‘‘and shall be adjusted
on October 1, 1996, and’’.
SEC. 311. BENEFITS FOR ALIENS.
Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.
2014(i)) is amended—
(1) in the first sentence of paragraph (1)—
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(A) by inserting ‘‘or who executed such an
affidavit or similar agreement to enable the indi-
vidual to lawfully remain in the United States,’’
after ‘‘respect to such individual,’’; and
(B) by striking ‘‘for a period’’ and all that
follows through the period at the end and insert-
ing ‘‘until the end of the period ending on the
later of the date agreed to in the affidavit or
agreement or the date that is 5 years after the
date on which the individual was first lawfully
admitted into the United States following the
execution of the affidavit or agreement.’’; and
(2) in paragraph (2)—
(A) in subparagraph (C)(i), by striking ‘‘of
three years after entry into the United States’’
and inserting ‘‘determined under paragraph
(1)’’; and
(B) in subparagraph (D), by striking ‘‘of
three years after such alien’s entry into the Unit-
ed States’’ and inserting ‘‘determined under
paragraph (1)’’.
SEC. 312. 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
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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 partici-
pate in the food stamp program if the individ-
ual—
‘‘(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 par-
ticipate in an employment and training
program under paragraph (4), to the extent
required by the State agency;
‘‘(iii) refuses without good cause to ac-
cept 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
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‘‘(II) 80 percent of the wage that
would have governed had the minimum
hourly rate under section 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 pro-
vide a State agency with sufficient informa-
tion to allow the State agency to determine
the employment status or the job availabil-
ity of the individual;
‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, 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 be-
comes 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 pro-
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gram for a period, determined by the State agen-
cy, that does not exceed the lesser of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (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 be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
‘‘(ii) SECOND VIOLATION.—The second
time that an individual becomes ineligible
to participate in the food stamp program
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under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes 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 VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
‘‘(I) the date the individual be-
comes 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
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‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD
CAUSE.—The Secretary
shall determine the meaning of good cause
for the purpose of this paragraph.
‘‘(ii) VOLUNTARY QUIT.—The Secretary
shall determine 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 determine—
‘‘(aa) the meaning of any
term in subparagraph (A);
‘‘(bb) the procedures for de-
termining whether an individual
is in compliance with a require-
ment under subparagraph (A);
and
‘‘(cc) whether an individual
is in compliance with a require-
ment under subparagraph (A).
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‘‘(II) NOT LESS RESTRICTIVE.—A
State agency may not determine a
meaning, procedure, or determination
under subclause (I) to be less restrictive
than a comparable meaning, proce-
dure, or determination 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 GOVERN-
MENT.—For the purpose of subparagraph
(A)(v), an employee of the Federal Govern-
ment, a State, or a political subdivision of
a State, who is dismissed for participating
in a strike against the Federal Government,
the State, or the political subdivision of the
State shall be considered to have voluntarily
quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSE-
HOLD.—
‘‘(I) IN GENERAL.—For the pur-
pose of this paragraph, the State agen-
cy shall allow the household to select
any adult parent of a child in the
household as the head of the household
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if all adult household members making
application under the food stamp pro-
gram agree to the selection.
‘‘(II) TIME FOR MAKING DESIGNA-
TION.—A household may designate the
head of the household under subclause
(I) each time the household is certified
for participation in the food stamp
program, but may not change the des-
ignation during a certification period
unless there is a change in the com-
position of the household.
‘‘(vi) CHANGE
IN
HEAD
OF
HOUSE-
HOLD.—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 other-
wise eligible, become eligible to partici-
pate 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
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to participate in the food stamp pro-
gram for the remaining period of ineli-
gibility.’’.
(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 inserting ‘‘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 house-
hold may become ineligible under section 6(d)(1) to partici-
pate in the food stamp program for failing to comply with
this section.’’.
SEC. 313. 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. 314. 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—
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(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1,
1987, each’’ and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills, train-
ing,’’; and
(C) by adding at the end the following:
‘‘Each component of an employment and train-
ing program carried out under this paragraph
shall be delivered through the statewide workforce
development system established in section 711 of
the Work Opportunity Act of 1995, unless the
component is not available locally through the
statewide workforce development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ‘‘, except that the State agency shall
retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
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(i) by striking subclauses (I) and (II);
and
(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child care’’;
and
(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
(4) in subparagraph (E), by striking the third
sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii) Fed-
eral funds’’ and inserting ‘‘(H) Federal funds’’;
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(7) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
cial Security Act’’ and inserting the following: ‘‘), ex-
cept that no such payment or reimbursement shall ex-
ceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION
ON
FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to carry
out this paragraph (including under subpara-
graph (I)) for participants who are receiving
benefits under a State program funded under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount
of funds the State agency used in fiscal year
1995 to carry out this paragraph for partici-
pants who were receiving benefits in fiscal year
1995 under a State program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.).’’;
and
(B) by redesignating subparagraphs (M) and (N)
as subparagraphs (L) and (M), respectively; and
(9) in subparagraph (L) (as redesignated by
paragraph (8)(B))—
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(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a)(1)(C) shall take effect—
(1) in a State described in section 815(b)(1), on
July 1, 1997; and
(2) in any other State, on July 1, 1998.
(c) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’
and all that follows through the end of paragraph (1) and
inserting the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment
and training programs, the Secretary shall re-
serve 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, $80,000,000;
‘‘(iii) for fiscal year 1998, $83,000,000;
‘‘(iv) for fiscal year 1999, $86,000,000;
‘‘(v) for fiscal year 2000, $89,000,000;
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‘‘(vi) for fiscal year 2001, $92,000,000;
and
‘‘(vii) 
for 
fiscal 
year 
2002,
$95,000,000.
‘‘(B) ALLOCATION.—The Secretary shall al-
locate 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(n).
‘‘(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 allo-
cated to the State agency under subpara-
graph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will not
expend as the Secretary considers appro-
priate and equitable.
‘‘(D) 
MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency op-
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erating an employment and training program
shall receive not less than $50,000 in each fiscal
year.’’.
(d) 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’’.
(e) 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. 315. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(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 106) as subsection (o); and
(2) by inserting after subsection (h) the follow-
ing:
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‘‘(i) COMPARABLE TREATMENT
FOR DISQUALIFICA-
TION.—
‘‘(1) IN GENERAL.—If a disqualification is im-
posed on a member of a household for a failure of the
member to perform an action required under a Fed-
eral, State, or local law relating to a welfare or pub-
lic assistance program, the State agency may impose
the same disqualification on the member of the house-
hold under the food stamp program.
‘‘(2) RULES AND PROCEDURES.—If a disquali-
fication 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 PE-
RIOD.—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
considered in determining eligibility.’’.
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(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; and
(2) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in car-
rying out section 6(i);’’.
(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. 316. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 315) is further amended by
inserting after subsection (i) the following:
‘‘(j) 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 re-
ferred 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 pro-
gram unless the individual cooperates with the State
agency administering the program established under
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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 deter-
mined by the State agency in accordance with stand-
ards prescribed by the Secretary in consultation with
the Secretary of Health and Human Services. The
standards shall take into consideration circumstances
under which cooperation may be against the best in-
terests 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.).
‘‘(k) NON-CUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT 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
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age of 18 (referred to in this subsection as ‘the indi-
vidual’) shall not be eligible to participate in the food
stamp program if the individual refuses to cooperate
with the State agency administering the program es-
tablished under part D of title IV of the Social Secu-
rity 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 con-
sultation 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 wheth-
er 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.).
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‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information collected
by a State agency administering the program estab-
lished 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. 317. DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 316) is further amended by
inserting after subsection (k) the following:
‘‘(l) DISQUALIFICATION
FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, except as provided in paragraph (2), no indi-
vidual shall be eligible to participate in the food
stamp program as a member of any household during
any month that the individual is delinquent in any
payment due under a court order for the support of
a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
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‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.) to
provide support for the child of the individual.’’.
SEC. 318. PERMANENT DISQUALIFICATION FOR PARTICI-
PATING IN 2 OR MORE STATES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015) (as amended by section 317) is further amended by
inserting after subsection (l) the following:
‘‘(m) PERMANENT DISQUALIFICATION FOR PARTICI-
PATING IN 2 OR MORE STATES.—An individual shall be
permanently ineligible to participate in the food stamp pro-
gram as a member of any household if the individual is
found by a State agency to have made, or is convicted in
Federal or State court of having made, a fraudulent state-
ment or representation with respect to the place of residence
of the individual in order to receive benefits simultaneously
from 2 or more States under the food stamp program.’’.
SEC. 319. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) (as amended by section 318) is
further amended by inserting after subsection (m) the fol-
lowing:
‘‘(n) WORK REQUIREMENT.—
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‘‘(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 ap-
proved 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
under clause (i) or (ii) of section 6(d)(4)(B).
‘‘(2) WORK REQUIREMENT.—No individual shall
be eligible to participate in the food stamp program
as a member of any household if, during the preced-
ing 12-month period, the individual received food
stamp benefits for not less than 6 months during
which the individual did not—
‘‘(A) work 20 hours or more per week, aver-
aged monthly; or
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
more per week, as determined by the State agen-
cy.
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‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child; or
‘‘(D) 
otherwise 
exempt 
under 
section
6(d)(2).
‘‘(4) WAIVER.—
‘‘(A) IN
GENERAL.—On the request of a
State agency, the Secretary may waive the ap-
plicability of paragraph (2) to any group of in-
dividuals in the State if the Secretary makes a
determination that the area in which the indi-
viduals reside—
‘‘(i) has an unemployment rate of over
8 percent; or
‘‘(ii) does not have a sufficient number
of jobs to provide employment for the indi-
viduals.
‘‘(B) REPORT.—The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House of
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Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.’’.
(b) TRANSITION PROVISION.—Prior to October 1,
1996, the term ‘‘preceding 12-month period’’ in section
6(n)(2) of the Food Stamp Act of 1977 (as amended by sub-
section (a)) means the preceding period that begins on Octo-
ber 1, 1995.
SEC. 319A. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 319(a), is further amended
by adding at the end the following new subsection:
‘‘(o) No member of a household who is otherwise eligi-
ble to participate in the food stamp program shall be eligi-
ble 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 laws of the
place from which the individual flees, for a crime, or
attempt to commit a crime, which is a felony under
the laws of the place from which the individual flees,
or which, in the case of the State of New Jersey, is
a high misdemeanor under the laws of such State; or
‘‘(2) violating a condition of probation or parole
imposed under Federal or State law.’’.
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SEC. 320. ELECTRONIC BENEFIT TRANSFERS.
(a) IN GENERAL.—Section 7 of the Food Stamp Act
of 1977 (7 U.S.C. 2016) is amended by adding at the end
the following:
‘‘(j) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(1) APPLICABLE LAW.—
‘‘(A) IN GENERAL.—Disclosures, protections,
responsibilities, and remedies established by the
Federal Reserve Board under section 904 of the
Electronic Fund Transfer Act (15 U.S.C. 1693b)
shall not apply to benefits under this Act deliv-
ered through any electronic benefit transfer sys-
tem.
‘‘(B) DEFINITION OF ELECTRONIC BENEFIT
TRANSFER
SYSTEM.—In this paragraph, the
term ‘electronic benefit transfer system’ means a
system under which a governmental entity dis-
tributes benefits under this Act or other benefits
or payments by establishing accounts to be
accessed by recipients of the benefits electroni-
cally, including through the use of an automated
teller machine, a point-of-sale terminal, or an
intelligent benefit card.
‘‘(2) CHARGING
FOR
ELECTRONIC
BENEFIT
TRANSFER CARD REPLACEMENT.—
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‘‘(A) IN GENERAL.—A State agency may
charge an individual for the cost of replacing a
lost or stolen electronic benefit transfer card.
‘‘(B) 
REDUCING
ALLOTMENT.—A 
State
agency may collect a charge imposed under sub-
paragraph (A) by reducing the monthly allot-
ment of the household of which the individual is
a member.
‘‘(3) 
OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may re-
quire 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 elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to ensure
that any other appropriate member of the house-
hold or any authorized representative of the
household may utilize the card.
‘‘(4) STATE
ELECTRONIC
BENEFITS
TRANSFER
OPTIONS IN GENERAL.—States may implement elec-
tronic benefit transfer systems under the authorities
and conditions set forth in section 7(i) and related
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provisions, or the authorities and conditions set forth
in paragraph (5).
‘‘(5) ELECTRONIC
BENEFITS
TRANSFER
CARD
SYSTEMS ASSISTANCE OPTION.—If a State notifies the
Secretary of its intention to convert to a state-wide
electronic benefits transfer card system, or a multiple-
State regional electronic benefits transfer card system
with other state-wide systems, within three years of
the date of enactment of this paragraph, the Secretary
shall allow the establishment of an electronic benefits
transfer card system within the State under the fol-
lowing terms—
‘‘(A) COORDINATION
AND
LAW
ENFORCE-
MENT.—
‘‘(i) CONVERSION.—The Secretary shall
coordinate with, and assist, the State or
States in a regional system in eliminating
the use of food stamp coupons and the full
conversion to an electronic benefits transfer
card system within three years after the de-
cision of the State to convert to the system
set forth in this paragraph.
‘‘(ii) OPERATIONS.—States shall take
into account generally accepted standard
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operating rules for carrying out this para-
graph, based on—
‘‘(I) commercial electronic funds
transfer technology;
‘‘(II) the need to permit interstate
operation and law enforcement mon-
itoring; and
‘‘(III) the need to permit monitor-
ing and investigations by authorized
law enforcement agencies.
‘‘(iii) LAW ENFORCEMENT.—The Sec-
retary, in consultation with the Inspector
General of the United States Department of
Agriculture and the United States Secret
Service, shall inform the State of proper se-
curity features, good management tech-
niques, and methods of deterring counter-
feiting.
‘‘(B) PAPER AND OTHER ALTERNATIVE BEN-
EFIT
TRANSFER
SYSTEMS.—Beginning on the
date of the implementation of the electronic bene-
fits transfer card system in a State under au-
thority of this paragraph, the Secretary shall
also permit the use of paper-based and other ben-
efit transfer approaches for providing benefits to
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food stamp households in the case of special-need
retail food stores.
‘‘(C) STATE-PROVIDED EQUIPMENT.—
‘‘(i) ELECTRONIC BENEFITS TRANSFER
CARD SYSTEM.—
‘‘(I) IN GENERAL.—A retail food
store that does not have point-of-sale
electronic benefits transfer equipment,
and does not intend to obtain point-of-
sale electronic benefits transfer equip-
ment in the near future, shall be pro-
vided by a State agency with, or reim-
bursed for, the costs of purchasing and
installing single-function, point-of-sale
equipment, 
and 
related 
telephone
equipment, which shall be used only for
Federal and State assistance programs.
‘‘(II) 
EQUIPMENT
REQUIRE-
MENTS.—Equipment provided under
this subparagraph shall be capable of
interstate operations and based on gen-
erally accepted commercial electronic
benefits transfer operating principles
that permit interstate law enforcement
monitoring and shall be capable of
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providing a recipient with access to
multiple Federal and State benefit pro-
grams.
‘‘(ii) PAPER AND OTHER ALTERNATIVE
BENEFIT
SYSTEMS.—A special-need retail
store that does not obtain, and does not in-
tend to obtain in the near future, point-of-
sale paper-based or other alternative bene-
fits transfer equipment shall be provided by
the State agency or compensated for the
costs of purchasing such equipment which
shall be used only for Federal and State as-
sistance programs. Such paper systems in-
cludes using the electronic benefit transfer
card to make an impression on a point-of-
sale paper document.
‘‘(iii) RETURN OF ELECTRONIC BENE-
FITS TRANSFER EQUIPMENT.—A retail food
store may at any time return the equipment
to the State and obtain equipment with
funds of the store.
‘‘(iv) COST TO STORES.—The cost of
documents or systems that may be required
pursuant to this paragraph may not be im-
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posed upon a retail food store participating
in the program.
‘‘(D) CHARGING FOR ELECTRONIC BENEFITS
TRANSFER CARD REPLACEMENT.—
‘‘(i) IN GENERAL.—Under this para-
graph, the Secretary shall reimburse State
agencies for the costs of purchasing and is-
suing electronic benefits transfer cards; and
‘‘(ii) REPLACEMENT
CARDS.—Under
this paragraph, the Secretary may charge a
household through allotment reduction or
otherwise for the cost of replacing a lost or
stolen electronic benefit transfer card, unless
the card was stolen by force or threat of
force.
‘‘(E) TRANSITION FUND.—At the beginning
of each fiscal year during the 10-year period be-
ginning with the first full fiscal year following
the date of enactment of this paragraph, the Sec-
retary shall place the amount of the funds gen-
erated by the transaction fees provided in sub-
paragraph (F) into an account, to be known as
the Transition Conversion Account, to remain
available until expended.
‘‘(F) TRANSACTION FEE.—
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(i) During the 10-year period begin-
ning on the date of enactment of this para-
graph, the Secretary shall, to the extent nec-
essary to not increase costs to the Secretary
under this paragraph, impose a transaction
fee of not more than 2 cents for each trans-
action made at a retail food store using an
electronic benefits transfer card authorized
by this paragraph, to be taken from the ben-
efits of the household using the card, except
that no household shall be assessed more
than 16 cents under this paragraph per
month. The Secretary may reduce the fee on
a household receiving the maximum benefits
available under the program.
‘‘(ii) FEES LIMITED TO USES.—A fee
imposed under clause (i) shall be in an
amount not greater than is necessary to
carry out the uses of the Transition Conver-
sion Account in subparagraph (G).
‘‘(G)(i)DUTY OF SECRETARY.—Out of funds
in the Transition Conversion Account, and, only
to the extent necessary, out of funds provided to
carry out this Act, the Secretary shall provide
funds to provide transition assistance and funds
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to States participating under this paragraph
for—
‘‘(I) the reasonable cost of purchasing
and installing, or for the cost of reimburs-
ing a retail food store for the cost of pur-
chasing 
and 
installing 
single-function,
point-of-sale equipment described in sub-
paragraph (C), to be used only for Federal
and State assistance programs;
‘‘(II) the reasonable start-up cost of
purchasing and installing telephone equip-
ment or connections for single-function,
point-of-sale equipment, to be used only for
Federal and State assistance programs; and
‘‘(III) assistance to modify an elec-
tronic benefits transfer system implemented
by a State prior to the date of enactment of
this paragraph to the extent necessary to
operate statewide or multi-statewide under
this paragraph.
‘‘(ii) USE
OF
ACCOUNT.—The Secretary
shall use funds in the Transition Conversion Ac-
count in implementing this paragraph and to—
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‘‘(I) provide start-up training for State
agencies, employees and recipients based on
a plan approved by Secretary;
‘‘(II) pay for other one-time reasonable
costs of converting to an electronic benefits
transfer system that is capable of interstate
functions and is capable of being monitored
by law enforcement agencies;
‘‘(III) pay for liabilities assumed by
the Secretary under subparagraph (I);
‘‘(IV) pay other liabilities related to
the electronic benefits transfer system estab-
lished under this paragraph that are in-
curred by the Secretary; and
‘‘(V) expand and implement a nation-
wide program to monitor compliance with
program rules related to retail food stores
and the electronic delivery of benefits under
this Act.
‘‘(H) COMPETITIVE BIDDING.—In purchas-
ing point-of-sale equipment described in sub-
paragraph (C), electronic benefits transfer cards,
and telephone equipment or connections referred
to in subparagraph (G), States shall use com-
petitive bidding systems to ensure that they ob-
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tain the lowest prices for the equipment and
cards that meet specifications. States shall not
enter into purchase agreements which condition
the purchase of additional services or equipment
from suppliers of equipment or cards under this
paragraph. The Secretary shall monitor the sale
prices for such equipment and cards and the In-
spector General shall investigate possible wrong-
doing or fraud as appropriate.
‘‘(I) LIABILITY OR REPLACEMENT BENEFITS
FOR UNAUTHORIZED USE OF EBT CARDS.—
‘‘(i) IN GENERAL.—The Secretary shall
require State agencies that choose to imple-
ment an electronic benefits transfer system
under this paragraph to advise any house-
hold participating in the food stamp pro-
gram how to promptly report a lost, de-
stroyed, damaged, improperly manufac-
tured, dysfunctional, or stolen electronic
benefits transfer card.
‘‘(ii) REGULATIONS.—Under this para-
graph, the Secretary shall issue regulations
providing that—
‘‘(I) a household shall not receive
any replacement for benefits lost due to
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the unauthorized use of an electronic
benefits transfer card; and
‘‘(II) a household shall not be lia-
ble for any amounts in excess of the
benefits available to the household at
the time of the unauthorized use.
‘‘(iii) 
SPECIAL
LOSSES.—Notwith-
standing clause (ii), under this paragraph a
household shall receive a replacement for
any benefits lost if the loss was caused by—
‘‘(I) force or the threat of force;
‘‘(II) unauthorized use of the card
after the State agency receives notice
that the card was lost or stolen; or
‘‘(III) a system error or malfunc-
tion, fraud, abuse, negligence, or mis-
take by the service provider, the card
issuing agency, or the State agency, or
an inaccurate execution of a trans-
action by the service provider:
Provided, That with respect to losses described in
subclause (II) and (III), the State shall reimburse the
Secretary. Nothing in subclause (III) shall prevent a
State from obtaining reimbursement from the service
provider or the card issuing agency for system error
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or malfunction, fraud, abuse, negligence, or mistake
by such service provider or card issuing agency.
‘‘(J) ELIMINATION
OF
FOOD
STAMP
COU-
PONS.—
‘‘(i) IN GENERAL.—Except as provided
in clauses (ii) and (iii) and notwithstand-
ing any other provision of this Act, effective
beginning on the date 3 years after the date
a chief executive officer of a State informs
the Secretary that the State intends to im-
plement an electronic benefits transfer sys-
tem authorized by this paragraph, the Sec-
retary shall not provide any food stamp
coupons to the State.
‘‘(ii) EXCEPTIONS.—
‘‘(I) EXTENSION.—Clause (i) shall
not apply to the extent that the chief
executive officer of a State determines
that an extension is necessary and so
notifies the Secretary in writing, ex-
cept that the extension shall not extend
beyond 5 years after the date that a
chief executive officer of a State in-
forms the secretary of the decision to
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implement an electronic benefits trans-
fer system under this paragraph.
‘‘(II) WAIVER.—In addition to
any extension under subclause (I), the
Secretary may grant a waiver to a
State to phase-in or delay, implemen-
tation of electronic benefits transfer for
good cause shown by the State, except
that the waiver shall not extend for
more than 6 months.
‘‘(iii) DISASTER
RELIEF.—The Sec-
retary may provide food stamp coupons for
disaster relief under section 5(h).
‘‘(K) SPECIAL RULE.—A State agency may
require a household to explain the circumstances
regarding each occasion that—
‘‘(i) the household reports a lost or sto-
len electronic benefits transfer card; and
‘‘(ii) the card was used for an unau-
thorized transaction.
In the appropriate circumstances, the State
agency shall investigate and ensure that appro-
priate cases are acted upon either through ad-
ministrative disqualification or referral to courts
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of appropriate jurisdiction, or referral for pros-
ecution.
‘‘(L) ESTABLISHMENT.—In carrying out
this paragraph, the States shall—
‘‘(i) take into account the needs of law
enforcement personnel and the need to per-
mit and encourage further technological de-
velopments and scientific advances;
‘‘(ii) ensure that security is protected
by appropriate means such as requiring
that a personal identification number be is-
sued with each electronic benefits transfer
card to help protect the integrity of the pro-
gram;
‘‘(iii) provide for—
‘‘(I) recipient protection regard-
ing privacy, ease of use, and access to
and service in retail food stores;
‘‘(II) financial accountability and
the capability of the system to handle
interstate operations and interstate
monitoring by law enforcement agen-
cies including the Inspector General of
the Department of Agriculture;
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‘‘(III) rules prohibiting store par-
ticipation 
unless 
any 
appropriate
equipment necessary to permit house-
holds to purchase food with the benefits
issued under the Food Stamp Act of
1977 is operational and reasonably
available; and
‘‘(IV) rules providing for monitor-
ing and investigation by an authorized
law enforcement agency including the
Inspector General of the Department of
Agriculture.
‘‘(M) ADDITIONAL EMPLOYEES.—The Sec-
retary shall assign additional employees to in-
vestigate and adequately monitor compliance
with program rules related to electronic benefits
transfer systems and retail food store participa-
tion.
‘‘(N) REQUEST FOR STATEMENTS.—Under
this paragraph on the request of a household, the
State, through a person issuing benefits to the
household, shall provide once per month a state-
ment of benefit transfers and balances for such
household for the month preceding the request.
‘‘(O) ERRORS.—Under this paragraph:
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‘‘(i) IN GENERAL.—States shall design
systems to timely resolve disputes over al-
leged errors.
‘‘(ii) 
CORRECTED
ERRORS.—House-
holds able to obtain corrections of errors
under this subparagraph shall not be enti-
tled to a fair hearing regarding the resolved
dispute.
‘‘(P) APPLICABLE
LAW.—For purposes of
this Act, fraud and related activities related to
electronic benefits transfer shall be governed by
section 15 of this Act (U.S.C. 2024) and section
1029 of title 18, United States Code, in addition
to any other applicable law.
‘‘(Q) DEFINITIONS.—For the purpose of this
paragraph:
‘‘(i) ELECTRONIC BENEFITS TRANSFER
CARD SYSTEM.—The term ‘electronic bene-
fits transfer card system’ means a system to
support transactions conducted with elec-
tronic benefits transfer cards, paper, or
other alternative benefits transfer systems
approved by the Secretary for the provision
of program benefits in accordance with this
paragraph.
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‘‘(ii) RETAIL FOOD STORE.—The term
‘retail food store’ means a retail food store,
a farmer’s market, or a house-to-house trade
route authorized to participate in the food
stamp program.
‘‘(iii) SPECIAL-NEED
RETAIL
FOOD
STORE.—The term ‘special-need retail food
store’ means—
‘‘(I) a retail food store located in
a very rural area;
‘‘(II) a retail food store without
access to dependable electricity or regu-
lar telephone service; or
‘‘(III) a farmers’ market or house-
to-house trade route that is authorized
to participate in the food stamp pro-
gram.
‘‘(R) LEAD
ROLE
OF
INDUSTRY
AND
STATES.—The Secretary shall consult with the
Secretary of the Treasury, the Secretary of
Health and Human Services, the Inspector Gen-
eral of the United States Department of Agri-
culture, the United States Secret Service, the Na-
tional Governor’s Association, the Food Market-
ing Institute, the National Association of Con-
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venience Stores, the American Public Welfare As-
sociation, the National Conference of State Legis-
latures, the American Bankers Association, the
financial services community, State agencies,
and food advocates to obtain information helpful
to retail stores, the financial services industry,
and States in the conversion to electronic benefits
transfer, including information regarding—
‘‘(i) the degree to which an electronic
benefits transfer system could be easily inte-
grated with commercial networks;
‘‘(ii) the usefulness of appropriate elec-
tronic benefits transfer security features and
local management controls, including fea-
tures in an electronic benefits transfer card
to deter counterfeiting of the card;
‘‘(iii) the use of laser scanner tech-
nology with electronic benefits transfer tech-
nology so that only eligible food items can
be purchased by food stamp participants in
stores that use scanners;
‘‘(iv) how to maximize technology that
uses data available from an electronic bene-
fits transfer system to identify fraud and
allow law enforcement personnel to quickly
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identify or target a suspected or actual pro-
gram violator;
‘‘(v) means of ensuring the confiden-
tiality of personal information in electronic
benefits transfer systems and the applicabil-
ity of section 552a of title 5, United States
Code, to electronic benefits transfer systems;
‘‘(vi) the best approaches for maximiz-
ing the use of then current point-of-sale ter-
minals and systems to reduce costs; and
‘‘(vii) the best approaches for maximiz-
ing the use of electronic benefits transfer
systems for multiple Federal and State ben-
efit programs so as to achieve the highest
cost savings possible through the implemen-
tation of electronic benefits transfer sys-
tems.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 3 of the Food Stamp Act of 1977 (42
U.S.C. 2012) is amended—
(A) in subsection (a), by striking ‘‘coupons’’
and inserting ‘‘benefits’’;
(B) in the first sentence of subsection (c), by
striking ‘‘authorization cards’’ and inserting ‘‘al-
lotments’’;
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(C) in subsection (d), by striking ‘‘the pro-
visions of this Act’’ and inserting ‘‘sections 5(h)
and 7’’;
(D) in subsection (e)—
(i) by striking ‘‘Coupon issuer’’ and
inserting ‘‘Benefit issuer’’; and
(ii) by striking ‘‘coupons’’ and insert-
ing ‘‘benefits’’;
(E) in the last sentence of subsection (i), by
striking ‘‘coupons’’ and inserting ‘‘allotments’’;
and
(F) by adding at the end the following new
subsection:
‘‘(v) ‘Electronic benefits transfer card’
means a card issued to a household partici-
pating in the program that is used to pur-
chase food.
(2) Section 4(a) of such Act (7 U.S.C. 2013(a))
is amended—
(A) in the first sentence by inserting ‘‘and
to funds made available under section 7’’ after
‘‘this Act’’.
(B) in the first and second sentences, by
striking ‘‘coupons’’ each place it appears and in-
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serting ‘‘electronic benefits transfer cards or cou-
pons’’; and
(C) by striking the third sentence and in-
serting the following new sentence: ‘‘The Sec-
retary, through the facilities of the Treasury of
the United States, shall reimburse the stores for
food purchases made with electronic benefits
transfer cards or coupons provided under this
Act.’’.
(3) The first sentence of section 6(b)(1) of such
Act (7 U.S.C. 2015(b)(1)) is amended—
(A) by striking ‘‘coupons or authorization
cards’’ and inserting ‘‘electronic benefits transfer
cards, coupons, or authorization cards’’; and
(B) in clauses (ii) and (iii), by inserting
‘‘or electronic benefits transfer cards’’ after ‘‘cou-
pons’’ each place it appears.
(4) Section 7 of such Act (7 U.S.C. 2016) is
amended—
(A) by striking the section heading and in-
serting the following new section heading: ‘‘IS-
SUANCE AND USE OF ELECTRONIC BENE-
FITS TRANSFER CARDS OR COUPONS’’;
(B) in subsection (a), by striking ‘‘Cou-
pons’’ and all that follows through ‘‘necessary,
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and’’ and inserting ‘‘Electronic benefits transfer
cards or coupons’’;
(C) in subsection (b), by striking ‘‘Coupons’’
and inserting ‘‘Electronic benefits transfer cards
or coupons’’;
(D) in subsection (e), by striking ‘‘coupons
to coupon issuers’’ and replace with ‘‘benefits to
benefits issuers’’; and by striking ‘‘by coupon is-
suers’’ and inserting ‘‘by benefits issuers’’.
(E) in subsection (f)—
(i) by striking ‘‘issuance of coupons’’
and inserting ‘‘issuance of electronic bene-
fits transfer cards or coupons’’;
(ii) by striking ‘‘coupon issuer’’ and
inserting ‘‘electronic benefits transfer or
coupon issuer’’; and
(iii) by striking ‘‘coupons and allot-
ments’’ and inserting ‘‘electronic benefits
transfer cards, coupons, and allotments’’;
(F) by deleting ‘‘(1) The’’ in subsections (g)
and (h) and inserting the following: ‘‘(1) Except
with respect to electronic benefit transfer care
systems operated under section 7(j)(5), the’’; and
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(G) by striking subparagraph (i)(2)(A); and
by relettering (B) through (H) as (A) through
(G).
(5) Section 8(b) of such Act (7 U.S.C. 2017(b))
is amended by striking ‘‘coupons’’ and inserting
‘‘electronic benefits transfer cards or coupons’’.
(6) Section 9 of such Act (7 U.S.C. 2018) is
amended—
(A) in subsections (a) and (b), by striking
‘‘coupons’’ each place it appears and inserting
‘‘coupons, or accept electronic benefits transfer
cards,’’; and
(B) in subsection (a)(1)(B), by striking
‘‘coupon business’’ and inserting ‘‘electronic ben-
efits transfer cards and coupon business’’.
(7) Section 10 of such Act (7 U.S.C. 2019) is
amended—
(A) by striking the section heading and in-
serting the following: ‘‘REDEMPTION OF COU-
PONS OR ELECTRONIC BENEFITS TRANS-
FER CARDS’’; and
(B) in the first sentence—
(i) by inserting after ‘‘provide for’’ the
following: ‘‘reimbursing stores for program
benefits provided and for’’;
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(ii) by inserting after ‘‘food coupons’’
the following: ‘‘or use their members’ elec-
tronic benefits transfer cards’’; and
(iii) by striking the period at the end
and inserting the following: ‘‘, unless the
center, organization, institution, shelter,
group living arrangement, or establishment
is equipped with a point-of-sale device for
the purpose of participating in the elec-
tronic benefits transfer system.’’.
(8) Section 11 of such Act (7 U.S.C. 2020) is
amended—
(A) in the first sentence of subsection (a), by
striking ‘‘coupons’’ and inserting ‘‘electronic ben-
efits transfer cards or coupons,’’;
(B) in subsection (e)—
(i) in paragraph (2)—
(I) by striking ‘‘a coupon allot-
ment’’ and inserting ‘‘an allotment’’;
and
(II) by striking ‘‘issuing coupons’’
and inserting ‘‘issuing electronic bene-
fits transfer cards or coupons’’;
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(ii) in paragraph (7), by striking
‘‘coupon issuance’’ and inserting ‘‘electronic
benefits transfer card or coupon issuance’’;
(iii) in paragraph (8)(C), by striking
‘‘coupons’’ and inserting ‘‘benefits’’;
(iv) in paragraph (9), by striking
‘‘coupons’’ each place it appears and insert-
ing ‘‘electronic benefits transfer cards or
coupons’’;
(v) in paragraph (11), by striking ‘‘in
the form of coupons’’;
(vi) in paragraph (16), by striking
‘‘coupons’’ and inserting ‘‘electronic benefits
transfer card or coupons’’;
(vii) in paragraph (17), by striking
‘‘food stamps’’ and replacing with ‘‘bene-
fits’’;
(viii) in paragraph (21), by striking
‘‘coupons’’ and inserting ‘‘electronic benefits
transfer cards or coupons’’;
(ix) in paragraph (24), by striking
‘‘coupons’’ and inserting ‘‘benefits’’; and
(x) in paragraph (25), by striking
‘‘coupons’’ each place it appears and insert-
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ing ‘‘electronic benefits transfer cards or
coupons’’; and
(C) in subsection (h), by striking ‘‘face
value of any coupon or coupons’’ and inserting
‘‘value of any benefits’’; and
(D) in subsection (n)—
(i) by striking ‘‘both coupons’’ each
place it appears and inserting ‘‘benefits
under this Act’’; and
(ii) by striking ‘‘of coupons’’ and in-
serting ‘‘of benefits’’.
(9) Section 12 of such Act (7 U.S.C. 2021) is
amended—
(A) in subsection (b)(3), by striking ‘‘cou-
pons’’ each place it appears and inserting ‘‘elec-
tronic benefits transfer cards or coupons’’;
(B) in subsection (d)—
(i) in the first sentence—
(I) by inserting after ‘‘redeem
coupons’’ the following: ‘‘and to accept
electronic benefits transfer cards’’; and
(II) by striking ‘‘value of cou-
pons’’ and inserting ‘‘value of benefits
and coupons’’; and
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(ii) in the third sentence, by striking
‘‘coupons’’ each place it appears and insert-
ing ‘‘benefits’’; and
(C) in the first sentence of subsection (f)—
(i) by inserting after ‘‘to accept and
redeem food coupons’’ the following: ‘‘elec-
tronic benefits transfer cards, or to accept
and redeem food coupons,’’; and
(ii) by inserting before the period at
the end the following: ‘‘or program bene-
fits’’.
(10) Section 13 of such Act (7 U.S.C. 2022) is
amended by striking ‘‘coupons’’ each place it appears
and inserting ‘‘benefits’’.
(11) Section 15 of such Act (7 U.S.C. 2024) is
amended—
(A) in subsection (a), by striking ‘‘issuance
or presentment for redemption’’ and inserting
‘‘issuance, presentment for redemption, or use of
electronic benefits transfer cards or’’;
(B) in the first sentence of subsection
(b)(1)—
(i) by inserting after ‘‘coupons, author-
ization cards,’’ each place it appears the fol-
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lowing: ‘‘electronic benefits transfer cards,’’;
and
(ii) by striking ‘‘coupons or authoriza-
tion cards’’ each place it appears and in-
serting the following: ‘‘coupons, authoriza-
tion cards, or electronic benefits transfer
cards’’;
(C) in the first sentence of subsection (c)—
(i) by striking ‘‘coupons’’ and inserting
‘‘a coupon or electronic benefits transfer
card’’; and
(ii) strike ‘‘such coupons are’’ and in-
serting ‘‘the payment or redemption is’’;
(D) in subsection (d) striking ‘‘coupons’’
and replacing with ‘‘Benefits’’;
(E) in subsection (e) after ‘‘coupons’’ insert-
ing ‘‘or electronic benefits transfer cards’’;
(F) in subsection (f) after ‘‘coupon’’ insert-
ing ‘‘or electronic benefits transfer card’’; and
(G) in the first sentence of subsection (g), by
inserting after ‘‘coupons, authorization cards,’’
the 
following: 
‘‘electronic 
benefits 
transfer
cards,’’.
(12) Section 16 (7 U.S.C. 2025) is amended—
(A) in subsection (a)—
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(i) in paragraph (2) after ‘‘coupons’’
by inserting ‘‘electronic benefits transfer
cards’’;
(ii) in paragraph (3) by inserting after
‘‘households’’ the following: ‘‘, including the
cost of providing equipment necessary for
retail food stores to participate in an elec-
tronic benefits transfer system’’;
(B) by deleting subsection (d);
(C) by redesignating subsections (e) through
(j) as subsections (d) through (i), respectively;
(D) in subsection (g)(5) (as redesignated by
paragraph (3))—
(i) in subparagraph (A), by striking
‘‘(A)’’; and
(ii) by striking subparagraph (B);
(E) in subsection (h) (as redesignated by
paragraph (3)), by striking paragraph (3); and
(F) by striking subsection (i) (as redesig-
nated by paragraph (3)).
(13) Section 17 of such Act (7 U.S.C. 2026) is
amended—
(A) in the last sentence of subsection (a)(2),
by striking ‘‘coupon’’ and inserting ‘‘benefit’’;
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(B) by deleting the last sentence of para-
graph (b)(2);
(C) by deleting the last sentence of sub-
section (c);
(D) in subsection (d)(1)(B), by striking
‘‘coupons’’ each place it appears and inserting
‘‘benefits’’;
(E) by deleting the last sentence of sub-
section (e);
(F) by striking subsection (f); and
(G) by redesignating subsections (g) through
(k) as subsections (f) through (j), respectively.
(14) Section 21 of such Act (7 U.S.C. 2030) is
amended—
(A) by striking ‘‘coupons’’ each place it ap-
pears (other than in subsections (b)(2)(A)(ii)
and (d)) and inserting ‘‘benefits’’;
(B) in subsection (b)(2)(A)(ii), by striking
‘‘coupons’’ and inserting ‘‘electronic benefits
transfer cards or coupons’’; and
(C) in subsection (d)—
(i) in paragraph (2), by striking ‘‘Cou-
pons’’ and inserting ‘‘Benefits’’; and
(ii) in paragraph (3), by striking ‘‘in
food coupons’’.
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(15) Section 22 of such Act (7 U.S.C. 2031) is
amended—
(A) in subsection (b)—
(i) in paragraph (3)(D)—
(I) in clause (ii), by striking
‘‘coupons’’ and inserting ‘‘benefits’’;
and
(II) in clause (iii), by striking
‘‘coupons’’ and inserting ‘‘electronic
benefits transfer benefits’’;
(ii) in paragraph (9), by striking
‘‘coupons’’ and inserting ‘‘benefits’’;
(iii) in paragraph (10)(B)—
(I) in the second sentence of clause
(I), by striking ‘‘Food coupons’’ and
inserting ‘‘Program benefits’’; and
(II) in clause (ii)—
(aa) in the second sentence,
by striking ‘‘Food coupons’’ and
inserting ‘‘Benefits’’; and
(bb) in the third sentence, by
striking ‘‘food coupons’’ each place
it appears and inserting ‘‘bene-
fits’’;
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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 the ag-
gregate of the initial allotment and the first regular
allotment, which shall be provided in accordance with
section 11(e)(3) in the case of a household that is not
entitled to expedited service or in accordance with
paragraphs (3) and (9) of section 11(e) in the case of
a household that is entitled to expedited service.’’.
SEC. 324. FAILURE TO COMPLY WITH OTHER WELFARE AND
PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF
PUBLIC
ASSISTANCE BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a household
are reduced under a Federal, State, or local law relat-
ing to a welfare or public assistance program for the
failure to perform an action required under the law
or program, for the duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that the
decrease is the result of the reduction; and