HR 3734 RDS
SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1030, is
amended by adding at the end the following:
‘‘(l) CUSTODIAL
PARENT’S
COOPERATION
WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natu-
ral or adoptive parent or other individual (collec-
tively referred to in this subsection as ‘the individ-
ual’) who is living with and exercising parental con-
trol over a child under the age of 18 who has an ab-
sent parent shall be eligible to participate in the food
stamp program unless the individual cooperates with
the 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.)—
‘‘(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 de-
termined by the State agency in accordance with
HR 3734 RDS
standards prescribed by the Secretary in consulta-
tion with the Secretary of Health and Human Serv-
ices. The standards shall take into consideration cir-
cumstances under which cooperation may be against
the best interests of the child.
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), a puta-
tive or identified noncustodial parent of a child
under the age of 18 (referred to in this subsection
as ‘the individual’) shall not be eligible to participate
in the food stamp program if the individual refuses
to cooperate with the State agency administering the
program established under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
HR 3734 RDS
‘‘(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 devel-
oped under subparagraph (A), for determining
whether an individual is refusing to cooperate
under paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information col-
lected by a State agency administering the program
established under part D of title IV of the Social Se-
curity Act (42 U.S.C. 651 et seq.) to purposes for
which the information is collected.’’.
SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUP-
PORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1031, is
amended by adding at the end the following:
HR 3734 RDS
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN GENERAL.—At the option of the State
agency, no individual shall be eligible to participate
in the food stamp program as a member of any
household during any month that the individual is
delinquent in any payment due under a court order
for the support of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)
to provide support for the child of the individ-
ual.’’.
SEC. 1033. WORK REQUIREMENT.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1032, is
amended by adding at the end the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
HR 3734 RDS
‘‘(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 and train-
ing operated or supervised by a State or politi-
cal subdivision of a State that meets standards
approved by the Governor of the State, includ-
ing a program under section 6(d)(4), other than
a job search program or a job search training
program.
‘‘(2) WORK
REQUIREMENT.—Subject to the
other provisions of this subsection, no individual
shall be eligible to participate in the food stamp pro-
gram as a member of any household if the individual
received after the effective date of this subsection
food stamp benefits for not less than 3 months dur-
ing which the individual did not—
‘‘(A) work 20 hours or more per week,
averaged 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
agency; or
HR 3734 RDS
‘‘(C) participate in a program under sec-
tion 20 or a comparable program established by
a State or political subdivision of a State.
‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(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;
‘‘(D) otherwise exempt under section
6(d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN GENERAL.—On the request of a
State agency, the Secretary may waive the 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
10 percent; or
‘‘(ii) does not have a sufficient num-
ber of jobs to provide employment for the
individuals.
HR 3734 RDS
‘‘(B) REPORT.—The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House
of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
‘‘(5) SUBSEQUENT
ELIGIBILITY.—Paragraph
(2) shall cease to apply to an individual if, during
a 30-day period, the individual—
‘‘(A) works 80 or more hours;
‘‘(B) participates in and complies with the
requirements of a work program for 80 or more
hours, as determined by a State agency; or
‘‘(C) participates in a program under sec-
tion 20 or a comparable program established by
a State or political subdivision of a State.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(A) 
IMPLEMENTATION.—Each 
State
agency shall implement an electronic benefit
transfer system in which household benefits de-
HR 3734 RDS
termined under section 8(a) or 26 are issued
from and stored in a central databank before
October 1, 2002, unless the Secretary provides
a waiver for a State agency that faces unusual
barriers to implementing an electronic benefit
transfer system.
‘‘(B) TIMELY
IMPLEMENTATION.—State
agencies are encouraged to implement an elec-
tronic benefit transfer system under subpara-
graph (A) as soon as practicable.
‘‘(C) STATE
FLEXIBILITY.—Subject to
paragraph (2), a State agency may procure and
implement an electronic benefit transfer system
under the terms, conditions, and design that
the State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) 
commercial 
electronic 
funds
transfer technology;
‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
HR 3734 RDS
‘‘(iii) the need to permit monitoring
and investigations by authorized law en-
forcement agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than
April 1, 1992,’’;
(B) in subparagraph (A)—
(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and in-
serting the following:
‘‘(D)(i) measures to maximize the security of a
system using the most recent technology available
that the State agency considers appropriate and cost
effective and which may include personal identifica-
tion numbers, photographic identification on elec-
tronic benefit transfer cards, and other measures to
protect against fraud and abuse; and
‘‘(ii) effective not later than 2 years after the
effective date of this clause, to the extent prac-
ticable, measures that permit a system to differen-
tiate items of food that may be acquired with an al-
lotment from items of food that may not be acquired
with an allotment.’’;
HR 3734 RDS
(D) in subparagraph (G), by striking
‘‘and’’ at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
‘‘(7) REPLACEMENT
OF
BENEFITS.—Regula-
tions issued by the Secretary regarding the replace-
ment of benefits and liability for replacement of ben-
efits under an electronic benefit transfer system
shall be similar to the regulations in effect for a
paper food stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agen-
cy may collect a charge for replacement of an elec-
tronic benefit transfer card by reducing the monthly
allotment of the household receiving the replacement
card.
‘‘(9) OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may
require that an electronic benefit card contain
a photograph of 1 or more members of a house-
hold.
HR 3734 RDS
‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to en-
sure that any other appropriate member of the
household or any authorized representative of
the household may utilize the card.
‘‘(10) APPLICATION
OF
ANTI-TYING
RESTRIC-
TIONS
TO
ELECTRONIC
BENEFIT
TRANSFER
SYS-
TEMS.—
‘‘(A) IN GENERAL.—A company shall not
sell or provide electronic benefit transfer serv-
ices, or fix or vary the consideration for such
services, on the condition or requirement that
the customer—
‘‘(i) obtain some additional point-of-
sale service from the company or any affili-
ate of the company; or
‘‘(ii) not obtain some additional point-
of-sale service from a competitor of the
company or competitor of any affiliate of
the company.
‘‘(B) DEFINITIONS.—In this paragraph—
HR 3734 RDS
‘‘(i) AFFILIATE.—The term ‘affiliate’
shall have the same meaning as in section
2(k) of the Bank Holding Company Act.
‘‘(ii) COMPANY.—The term ‘company’
shall have the same meaning as in section
106(a) of the Bank Holding Company Act
Amendments of 1970, but shall not include
a bank, bank holding company, or any sub-
sidiary of a bank holding company.
‘‘(iii) ELECTRONIC
BENEFIT
TRANS-
FER SERVICE.—The term ‘electronic bene-
fit transfer service’ means the processing
of electronic transfers of household bene-
fits determined under section 8(a) or 26
where the benefits are—
‘‘(I) issued from and stored in a
central databank;
‘‘(II) electronically accessed by
household members at the point of
sale; and
‘‘(III) provided by a Federal or
state government.
‘‘(iv) POINT-OF-SALE
SERVICE.—The
term ‘point-of-sale service’ means any
product or service related to the electronic
HR 3734 RDS
authorization and processing of payments
for merchandise at a retail food store, in-
cluding but not limited to credit or debit
card services, automated teller machines,
point-of-sale terminals, or access to on-line
systems.
‘‘(C) CONSULTATION WITH THE FEDERAL
RESERVE BOARD.—Before promulgating regula-
tions or interpretations of regulations to carry
out this paragraph, the Secretary shall consult
with the Board of Governors of the Federal Re-
serve System.’’.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that a State that operates an electronic benefit
transfer system under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) should operate the system in a man-
ner that is compatible with electronic benefit transfer sys-
tems operated by other States.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and
shall be adjusted’’ and all that follows through ‘‘$5’’.
HR 3734 RDS
SEC. 1036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more
than one month’’.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may
provide to an eligible household applying after the
15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the
household for the following month, an allotment that
is equal to the total amount of the initial allotment
and the first regular allotment. The allotment shall
be provided in accordance with section 11(e)(3) in
the case of a household that is not entitled to expe-
dited service and in accordance with paragraphs (3)
and (9) of section 11(e) in the case of a household
that is entitled to expedited service.’’.
HR 3734 RDS
SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-
TESTED PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF PUBLIC ASSISTANCE BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a house-
hold are reduced under a Federal, State, or local law
relating to a means-tested public assistance program
for the failure of a member of the household to per-
form an action required under the law or program,
for the duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that
the decrease is the result of the reduction; and
‘‘(B) the State agency may reduce the al-
lotment of the household by not more than 25
percent.
‘‘(2) RULES AND PROCEDURES.—If the allot-
ment of a household is reduced under this subsection
for a failure to perform an action required under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
HR 3734 RDS
IV of the Act to reduce the allotment under the food
stamp program.’’.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a center for the purpose of a drug or
alcoholic treatment program described in the last
sentence of section 3(i), a State agency may provide
an allotment for the individual to—
‘‘(A) the center as an authorized represent-
ative of the individual for a period that is less
than 1 month; and
‘‘(B) the individual, if the individual leaves
the center.
‘‘(2) DIRECT PAYMENT.—A State agency may
require an individual referred to in paragraph (1) to
designate the center in which the individual resides
as the authorized representative of the individual for
the purpose of receiving an allotment.’’.
HR 3734 RDS
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RE-
TAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)) is amended by adding at the end the
following: ‘‘No retail food store or wholesale food concern
of a type determined by the Secretary, based on factors
that include size, location, and type of items sold, shall
be approved to be authorized or reauthorized for participa-
tion in the food stamp program unless an authorized em-
ployee of the Department of Agriculture, a designee of the
Secretary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the
store or concern for the purpose of determining whether
the store or concern should be approved or reauthorized,
as appropriate.’’.
SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PE-
RIODS.
Section 9(a) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)) is amended by adding at the end the fol-
lowing:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary
shall establish specific time periods during which au-
thorization to accept and redeem coupons, or to re-
deem benefits through an electronic benefit transfer
HR 3734 RDS
system, shall be valid under the food stamp pro-
gram.’’.
SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7
U.S.C. 2018(c)) is amended—
(1) in the first sentence, by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide writ-
ten authorization for the Secretary to verify all rel-
evant tax filings with appropriate agencies and to
obtain corroborating documentation from other
sources so that the accuracy of information provided
by the stores and concerns may be verified.’’.
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO
MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7
U.S.C. 2018(d)) is amended by adding at the end the fol-
lowing: ‘‘A retail food store or wholesale food concern that
is denied approval to accept and redeem coupons because
the store or concern does not meet criteria for approval
established by the Secretary may not, for at least 6
HR 3734 RDS
months, submit a new application to participate in the
program. The Secretary may establish a longer time pe-
riod under the preceding sentence, including permanent
disqualification, that reflects the severity of the basis of
the denial.’’.
SEC. 1044. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020), as amended by sections 1020(b) and 1028(b), is
amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and insert-
ing the following:
‘‘(2)(A) that the State agency shall establish
procedures governing the operation of food stamp of-
fices that the State agency determines best serve
households in the State, including households with
special needs, such as households with elderly or dis-
abled members, households in rural areas with low-
income members, homeless individuals, households
residing on reservations, and households in areas in
which a substantial number of members of low-in-
come households speak a language other than Eng-
lish;
‘‘(B) that in carrying out subparagraph (A), a
State agency—
HR 3734 RDS
‘‘(i) shall provide timely, accurate, and fair
service to applicants for, and participants in,
the food stamp program;
‘‘(ii) shall develop an application contain-
ing the information necessary to comply with
this Act;
‘‘(iii) shall permit an applicant household
to apply to participate in the program on the
same day that the household first contacts a
food stamp office in person during office hours;
‘‘(iv) shall consider an application that
contains the name, address, and signature of
the applicant to be filed on the date the appli-
cant submits the application;
‘‘(v) shall require that an adult representa-
tive of each applicant household certify in writ-
ing, under penalty of perjury, that—
‘‘(I) the information contained in the
application is true; and
‘‘(II) all members of the household
are citizens or are aliens eligible to receive
food stamps under section 6(f);
‘‘(vi) shall provide a method of certifying
and issuing coupons to eligible homeless individ-
uals, to ensure that participation in the food
HR 3734 RDS
stamp program is limited to eligible households;
and
‘‘(vii) may establish operating procedures
that vary for local food stamp offices to reflect
regional and local differences within the State;
‘‘(C) that nothing in this Act shall prohibit the
use of signatures provided and maintained electroni-
cally, storage of records using automated retrieval
systems only, or any other feature of a State agen-
cy’s application system that does not rely exclusively
on the collection and retention of paper applications
or other records;
‘‘(D) that the signature of any adult under this
paragraph shall be considered sufficient to comply
with any provision of Federal law requiring a house-
hold member to sign an application or statement;’’;
(B) in paragraph (3), as amended by sec-
tion 1020(b)—
(i) by striking ‘‘shall—’’ and all that
follows through ‘‘provide each’’ and insert-
ing ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all
that follows through ‘‘representative of the
State agency;’’;
(C) by striking paragraphs (14) and (25);
HR 3734 RDS
(D)(i) by redesignating paragraphs (15)
through (24) as paragraphs (14) through (23),
respectively; and
(ii) by redesignating paragraph (26), as
added by section 1028(b), as paragraph (24);
and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and
all that follows through ‘‘(2)’’ and inserting the
following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) 
APPLICATION
PROCEDURES.—Notwith-
standing any other provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all
that follows through ‘‘title IV of the Social Se-
curity Act. No’’ and inserting a period and the
following:
‘‘(2) DENIAL AND TERMINATION.—Other than
in a case of disqualification as a penalty for failure
to comply with a public assistance program rule or
regulation, no’’.
SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(6)) is amended—
HR 3734 RDS
(1) by striking ‘‘that (A) the’’ and inserting
‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘Act; (B) the’’ and inserting
‘‘Act; and
‘‘(B) the’’;
(3) in subparagraph (B), by striking ‘‘United
States Civil Service Commission’’ and inserting ‘‘Of-
fice of Personnel Management’’; and
(4) by striking subparagraphs (C) through (E).
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMA-
TION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting
the following: ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and
inserting the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and insert-
ing the following: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
HR 3734 RDS
‘‘(D) notwithstanding any other provision
of law, the address, social security number, and,
if available, photograph of any member of a
household shall be made available, on request,
to any Federal, State, or local law enforcement
officer if the officer furnishes the State agency
with the name of the member and notifies the
agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, for a crime (or attempt to
commit a crime) that, under the law
of the place the member is fleeing, is
a felony (or, in the case of New Jer-
sey, a high misdemeanor), or is violat-
ing a condition of probation or parole
imposed under Federal or State law;
or
‘‘(II) has information that is nec-
essary for the officer to conduct an of-
ficial duty related to subclause (I);
‘‘(ii) locating or apprehending the
member is an official duty; and
HR 3734 RDS
‘‘(iii) the request is being made in the
proper exercise of an official duty; and
‘‘(E) the safeguards shall not prevent com-
pliance with paragraph (16);’’.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and
(4) in subparagraph (B), as redesignated by
paragraph (3), by striking ‘‘, (B), or (C)’’.
SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(10)) is amended by inserting before the
semicolon at the end a period and the following: ‘‘At the
option of a State, at any time prior to a fair hearing deter-
mination under this paragraph, a household may with-
draw, orally or in writing, a request by the household for
the fair hearing. If the withdrawal request is an oral re-
quest, the State agency shall provide a written notice to
HR 3734 RDS
the household confirming the withdrawal request and pro-
viding the household with an opportunity to request a
hearing’’.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STA-
TUS VERIFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended—
(1) in subsection (e)(18), as redesignated by
section 1044(1)(D)—
(A) by striking ‘‘that information is’’ and
inserting ‘‘at the option of the State agency,
that information may be’’; and
(B) by striking ‘‘shall be requested’’ and
inserting ‘‘may be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION.—Notwithstand-
ing any other provision of law, in carrying out the food
stamp program, a State agency shall not be required to
use an income and eligibility or an immigration status ver-
ification system established under section 1137 of the So-
cial Security Act (42 U.S.C. 1320b–7).’’.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTEN-
TIONALLY SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7
U.S.C. 2021(b)) is amended—
HR 3734 RDS
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be deter-
mined by the Secretary, including permanent dis-
qualification, on the knowing submission of an appli-
cation for the approval or reauthorization to accept
and redeem coupons that contains false information
about a substantive matter that was a part of the
application.’’.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this Act of an approved retail food store and
a wholesale food concern that is disqualified from
accepting benefits under the special supplemental
nutrition program for women, infants, and children
HR 3734 RDS
established under section 17 of the Child Nutrition
Act of 1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same length of time
as the disqualification from the program re-
ferred to in paragraph (1);
‘‘(B) may begin at a later date than the
disqualification from the program referred to in
paragraph (1); and
‘‘(C) notwithstanding section 14, shall not
be subject to judicial or administrative review.’’.
SEC. 1052. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of
the Food Stamp Act of 1977 (7 U.S.C. 2022) is amend-
ed—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, a State agency shall collect
any overissuance of coupons issued to a household
by—
‘‘(A) reducing the allotment of the house-
hold;
HR 3734 RDS
‘‘(B) withholding amounts from unemploy-
ment compensation from a member of the
household under subsection (c);
‘‘(C) recovering from Federal pay or a
Federal income tax refund under subsection
(d); or
‘‘(D) any other means.
‘‘(2) COST
EFFECTIVENESS.—Paragraph (1)
shall not apply if the State agency demonstrates to
the satisfaction of the Secretary that all of the
means referred to in paragraph (1) are not cost ef-
fective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—
If a household received an overissuance of coupons
without any member of the household being found
ineligible to participate in the program under section
6(b)(1) and a State agency elects to reduce the allot-
ment of the household under paragraph (1)(A), the
State agency shall not reduce the monthly allotment
of the household under paragraph (1)(A) by an
amount in excess of the greater of—
‘‘(A) 10 percent of the monthly allotment
of the household; or
‘‘(B) $10.
HR 3734 RDS
‘‘(4) PROCEDURES.—A State agency shall col-
lect an overissuance of coupons issued to a house-
hold under paragraph (1) in accordance with the re-
quirements established by the State agency for pro-
viding notice, electing a means of payment, and es-
tablishing a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under sub-
section (b) and except for claims arising from
an error of the State agency,’’ and inserting ‘‘,
as determined under subsection (b)(1),’’; and
(B) by inserting before the period at the
end the following: ‘‘or a Federal income tax re-
fund as authorized by section 3720A of title 31,
United States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)
of the Act (7 U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as
authorized by section 3720A of title 31, United
States Code’’.
(c) RETENTION RATE.—Section 16(a) of the Act (7
U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur-
HR 3734 RDS
ing the period beginning October 1, 1990’’ and all that
follows through ‘‘error of a State agency’’ and inserting
the following: ‘‘25 percent of the overissuances collected
by the State agency under section 13, except those
overissuances arising from an error of the State agency’’.
SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING
PROGRAM REQUIREMENTS PENDING ADMIN-
ISTRATIVE AND JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7
U.S.C. 2023(a)) is amended—
(1) by redesignating the first through seven-
teenth sentences as paragraphs (1) through (17), re-
spectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION
OF
STORES
PENDING
RE-
VIEW.—Notwithstanding any other provision of this
subsection, any permanent disqualification of a retail
food store or wholesale food concern under para-
graph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualifica-
tion. If the disqualification is reversed through ad-
ministrative or judicial review, the Secretary shall
not be liable for the value of any sales lost during
the disqualification period.’’.
HR 3734 RDS
SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLA-
TIONS.
(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD
STAMP TRAFFICKING.—The first sentence of section
15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g))
is amended by striking ‘‘or intended to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Act
(7 U.S.C. 2024) is amended by adding at the end the fol-
lowing:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—In imposing a sentence on
a person convicted of an offense in violation of sub-
section (b) or (c), a court shall order, in addition to
any other sentence imposed under this subsection,
that the person forfeit to the United States all prop-
erty described in paragraph (2).
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All
property, real and personal, used in a transaction or
attempted transaction, to commit, or to facilitate the
commission of, a violation (other than a mis-
demeanor) of subsection (b) or (c), or proceeds
traceable to a violation of subsection (b) or (c), shall
be subject to forfeiture to the United States under
paragraph (1).
‘‘(3) INTEREST
OF
OWNER.—No interest in
property shall be forfeited under this subsection as
HR 3734 RDS
the result of any act or omission established by the
owner of the interest to have been committed or
omitted without the knowledge or consent of the
owner.
‘‘(4) PROCEEDS.—The proceeds from any sale
of forfeited property and any monies forfeited under
this subsection shall be used—
‘‘(A) first, to reimburse the Department of
Justice for the costs incurred by the Depart-
ment to initiate and complete the forfeiture pro-
ceeding;
‘‘(B) second, to reimburse the Department
of Agriculture Office of Inspector General for
any costs the Office incurred in the law enforce-
ment effort resulting in the forfeiture;
‘‘(C) third, to reimburse any Federal or
State law enforcement agency for any costs in-
curred in the law enforcement effort resulting
in the forfeiture; and
‘‘(D) fourth, by the Secretary to carry out
the approval, reauthorization, and compliance
investigations of retail stores and wholesale
food concerns under section 9.’’.
HR 3734 RDS
SEC. 1055. LIMITATION OF FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7
U.S.C. 2025(a)(4)) is amended by inserting after the
comma at the end the following: ‘‘but not including re-
cruitment activities,’’.
SEC. 1056. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended by striking sub-
section (b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the
Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the
Secretary’s standards for the efficient and effective
administration of the program established under sec-
tion 16(b)(1) or’’.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C.
2025(c)(1)(B)) is amended by striking ‘‘pursuant to
subsection (b)’’.
SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 1056(a), is amended by in-
serting after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.—
HR 3734 RDS
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION
OR
SUPPORT
PROGRAM.—In this subsection, the
term ‘work supplementation or support program’
means a program under which, as determined by the
Secretary, public assistance (including any benefits
provided under a program established by the State
and the food stamp program) is provided to an em-
ployer to be used for hiring and employing a public
assistance recipient who was not employed by the
employer at the time the public assistance recipient
entered the program.
‘‘(2) PROGRAM.—A State agency may elect to
use an amount equal to the allotment that would
otherwise be issued to a household under the food
stamp program, but for the operation of this sub-
section, for the purpose of subsidizing or supporting
a job under a work supplementation or support pro-
gram established by the State.
‘‘(3) PROCEDURE.—If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp pro-
gram that contains an individual who is participat-
ing in the work supplementation or support pro-
gram—
HR 3734 RDS
‘‘(A) the Secretary shall pay to the State
agency an amount equal to the value of the al-
lotment that the household would be eligible to
receive but for the operation of this subsection;
‘‘(B) the State agency shall expend the
amount received under subparagraph (A) in ac-
cordance with the work supplementation or sup-
port program in lieu of providing the allotment
that the household would receive but for the op-
eration of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount
received under this subsection shall be ex-
cluded from household income and re-
sources; and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to
the household; and
‘‘(D) the household shall not receive an al-
lotment from the State agency for the period
during which the member continues to partici-
pate in the work supplementation or support
program.
HR 3734 RDS
‘‘(4) OTHER WORK REQUIREMENTS.—No indi-
vidual shall be excused, by reason of the fact that
a State has a work supplementation or support pro-
gram, from any work requirement under section
6(d), except during the periods in which the individ-
ual is employed under the work supplementation or
support program.
‘‘(5) LENGTH
OF
PARTICIPATION.—A State
agency shall provide a description of how the public
assistance recipients in the program shall, within a
specific period of time, be moved from supplemented
or supported employment to employment that is not
supplemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation
or support program shall not displace the employ-
ment of individuals who are not supplemented or
supported.’’.
SEC. 1058. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) in subparagraph (A)—
(A) by striking the second sentence; and
HR 3734 RDS
(B) by striking ‘‘benefits to eligible house-
holds, including’’ and inserting the following:
‘‘benefits to eligible households, and may waive
any requirement of this Act to the extent nec-
essary for the project to be conducted.
‘‘(B) PROJECT REQUIREMENTS.—
‘‘(i) PROGRAM GOAL.—The Secretary
may not conduct a project under subpara-
graph (A) unless the project is consistent
with the goal of the food stamp program of
providing food assistance to raise levels of
nutrition among low-income individuals.
‘‘(ii) PERMISSIBLE
PROJECTS.—The
Secretary may conduct a project under
subparagraph (A) to—
‘‘(I) improve program adminis-
tration;
‘‘(II) increase the self-sufficiency
of food stamp recipients;
‘‘(III) test innovative welfare re-
form strategies; and
‘‘(IV) allow greater conformity
with the rules of other programs than
would be allowed but for this para-
graph.
HR 3734 RDS
‘‘(iii) IMPERMISSIBLE
PROJECTS.—
The Secretary may not conduct a project
under subparagraph (A) that—
‘‘(I) involves the payment of the
value of an allotment in the form of
cash, unless the project was approved
prior to the date of enactment of this
subparagraph;
‘‘(II) 
substantially 
transfers
funds made available under this Act
to services or benefits provided pri-
marily through another public assist-
ance program; or
‘‘(III) is not limited to a specific
time period.
‘‘(iv) 
ADDITIONAL
INCLUDED
PROJECTS.—Pilot or experimental projects
may include’’.
SEC. 1059. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)), as amended by section 1058, is
amended by adding at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60
days after the date of receiving a request
HR 3734 RDS
for a waiver under subparagraph (A), the
Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and explains any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and explains the grounds for the de-
nial; or
‘‘(IV) requests clarification of the
waiver request.
‘‘(ii) FAILURE TO RESPOND.—If the
Secretary does not provide a response in
accordance with clause (i), the waiver shall
be considered approved, unless the ap-
proval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial
of a waiver request under clause (i)(III),
the Secretary shall provide a copy of the
waiver request and a description of the
reasons for the denial to the Committee on
Agriculture of the House of Representa-
tives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.’’.
HR 3734 RDS
SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by striking subsection (d) and inserting
the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN GENERAL.—Subject to the other
provisions of this subsection, a State may elect
to carry out an employment initiatives program
under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out an employment initiatives
program under this subsection only if not less
than 50 percent of the households that received
food stamp benefits during the summer of 1993
also 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
HR 3734 RDS
this subsection, to provide cash benefits in lieu
of the food stamp allotments to the household
if the household is eligible under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay
to each State that has elected to carry out an
employment initiatives program under para-
graph (1) an amount equal to the value of the
allotment that each household would be eligible
to receive under this Act but for the operation
of this subsection.
‘‘(C) OTHER
PROVISIONS.—For purposes
of the food stamp program (other than this
subsection)—
‘‘(i) cash assistance under this sub-
section shall be considered to be an allot-
ment; and
‘‘(ii) each household receiving cash
benefits under this subsection shall not re-
ceive any other food stamp benefit for the
period for which the cash assistance is pro-
vided.
‘‘(D) 
ADDITIONAL
PAYMENTS.—Each
State that has elected to carry out an employ-
ment initiatives program under paragraph (1)
shall—
HR 3734 RDS
‘‘(i) increase the cash benefits pro-
vided to each household under this sub-
section to compensate for any State or
local sales tax that may be collected on
purchases of food by any household receiv-
ing cash benefits under this subsection, un-
less the Secretary determines on the basis
of information provided by the State that
the increase is unnecessary 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).
‘‘(3) ELIGIBILITY.—A household shall be eligi-
ble 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
HR 3734 RDS
‘‘(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 in-
come;
‘‘(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
program under this subsection for 2 years shall pro-
vide to the Secretary a written evaluation of the im-
pact of cash assistance under this subsection. The
State agency, with the concurrence of the Secretary,
shall determine the content of the evaluation.’’.
SEC. 1061. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by
striking ‘‘1991 through 1997’’ and inserting ‘‘1996
through 2002’’.
HR 3734 RDS
SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) is amended by adding at the end
the following:
‘‘SEC. 26. 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
may elect to carry out a Simplified Food Stamp Program
(referred to in this section as a ‘Program’), statewide or
in a political subdivision of the State, in accordance with
this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to
carry out a Program, within the State or a political sub-
division 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
procedures established by the State under—
HR 3734 RDS
‘‘(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 27); or
‘‘(C) a combination of a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and the
food stamp program (other than section 27).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not
operate a Program unless the Secretary approves a
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
HR 3734 RDS
whether a Program being carried out by a State
agency is increasing Federal costs under this Act
above the Federal costs incurred under the food
stamp program in operation in the State or political
subdivision of the State for the fiscal year prior to
the implementation of the Program, adjusted for any
changes in—
‘‘(A) participation;
‘‘(B) the income of participants in the food
stamp program that is not attributable to pub-
lic assistance; and
‘‘(C) the thrifty food plan under section
3(o).
‘‘(2) NOTIFICATION.—If the Secretary deter-
mines that the Program has increased Federal costs
under this Act for any fiscal year or any portion of
any fiscal year, the Secretary shall notify the State
not later than 30 days after the Secretary makes the
determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE
ACTION.—Not later
than 90 days after the date of a notification
under paragraph (2), the State shall submit a
plan for approval by the Secretary for prompt
corrective action that is designed to prevent the
HR 3734 RDS
Program from increasing Federal costs under
this Act.
‘‘(B) TERMINATION.—If the State does not
submit a plan under subparagraph (A) or carry
out a plan approved by the Secretary, the Sec-
retary shall terminate the approval of the State
agency operating the Program and the State
agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a
State or political subdivision of a State may follow
the rules and procedures established by the State or
political subdivision under a State program funded
under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) or under the food stamp
program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operat-
ing a Program, a State or political subdivision of a
State may standardize the deductions provided
under section 5(e). In developing the standardized
deduction, the State shall consider the work ex-
penses, dependent care costs, and shelter costs of
participating households.
HR 3734 RDS
‘‘(3) REQUIREMENTS.—In operating a Pro-
gram, a State or political subdivision shall comply
with the requirements of—
‘‘(A) subsections (a) through (g) of section
7;
‘‘(B) section 8(a) (except that the income
of a household may be determined under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of
section 11;
‘‘(E) paragraphs (8), (12), (16), (18),
(20), (24), and (25) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable
requirement established by the State under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—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
HR 3734 RDS
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), unless
the Secretary determines that any household with in-
come above 130 percent of the poverty guidelines is
not eligible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)), as amended by sections 1020(b),
1028(b), and 1044, is amended by adding at the end the
following:
‘‘(25) if a State elects to carry out a Simplified
Food Stamp Program under section 26, the plans of
the State agency for operating the program, includ-
ing—
‘‘(A) the rules and procedures to be fol-
lowed by the State agency to determine food
stamp benefits;
‘‘(B) how the State agency will address the
needs of households that experience high shelter
costs in relation to the incomes of the house-
holds; and
‘‘(C) a description of the method by which
the State agency will carry out a quality control
system under section 16(c).’’.
(c) CONFORMING AMENDMENTS.—
HR 3734 RDS
(1) Section 8 of the Act (7 U.S.C. 2017), as
amended by section 1039, is 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), re-
spectively.
SEC. 1063. 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 1062, is
amended by adding at the end the following:
‘‘SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food as-
sistance’ means assistance that may be used only to
obtain food, as defined in section 3(g).
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, Guam, and
the Virgin Islands of the United States.
HR 3734 RDS
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish 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 en-
tire State;
‘‘(B) has a payment error rate under sec-
tion 16(c) that is not more than 6 percent as
announced most recently by the Secretary; or
‘‘(C) has a payment error rate in excess of
6 percent and agrees to contribute non-Federal
funds for the fiscal year of the grant, for bene-
fits and administration of the State’s food as-
sistance program, the amount determined under
paragraph (2).
‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
HR 3734 RDS
‘‘(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—
‘‘(i) the benefits issued in the State;
multiplied by
‘‘(ii) the payment error rate of the
State; minus
‘‘(B)(i) the benefits issued in the State;
multiplied by
‘‘(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 implement-
ing subparagraph (A) for a fiscal year, the Sec-
retary 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
program under paragraph (1) may in a subse-
quent year decline to elect to participate in the
program and instead participate in the food
HR 3734 RDS
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
assistance under this section, a State shall prepare
and submit to the Secretary an application at such
time, in such manner, and containing such informa-
tion as the Secretary shall by regulation require, in-
cluding—
‘‘(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.
‘‘(B) USE OF BLOCK GRANT FUNDS.—The
State plan shall provide that the State shall use
HR 3734 RDS
the amounts provided to the State for each fis-
cal year under this section—
‘‘(i) to provide food assistance to
needy individuals and families residing in
the State, other than residents of institu-
tions 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);
‘‘(v) individuals and families with
earnings; and
HR 3734 RDS
‘‘(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 in-
dividual 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) DISQUALIFICATION OF FLEEING FEL-
ONS.—The State plan shall provide for the dis-
qualification of any individual who would be
disqualified from participating in the food
stamp program under section 6(k).