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‘‘(3) Terminate the authority of the State to op-
erate the low-income nutrition assistance program.
‘‘(g)(1) States which receive grants under this section
shall provide for—
‘‘(A) a biennial audit, conducted in accordance
with the standards of the Comptroller General, of ex-
penditures for the provision of nutrition assistance
under this section; and
‘‘(B) not later than 120 days of the end of each
fiscal year in which an audit is conducted, provide
the Secretary with such audit.
States shall make the report of such audit available for pub-
lic inspection.
‘‘(2) Not later than 120 days after the end of the fiscal
year for which a State receives a grant under this section,
such State shall prepare an activities report comparing ac-
tual expenditures for such fiscal year for nutrition assist-
ance under this section with the expenditures for such fiscal
year predicted in the plan submitted in accordance with
subsection (c). Such State shall make the activities report
available for public inspection.
‘‘(h) Whoever knowingly and willfully embezzles,
misapplies, steals, or obtains by fraud, false statement, or
forgery, any funds, assets, or property provided or financed
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under this section shall be fined not more than $10,000 or
imprisoned for not more than 5 years, or both.’’.
SEC. 212. VALUE OF MINIMUM ALLOTMENT.
Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C.
2017(a)) is amended by striking ‘‘, and shall be adjusted
on each October 1’’ and all that follows through the end
of such subsection, and inserting a period.
SEC. 213. INITIAL MONTH BENEFIT DETERMINATION.
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’’ after ‘‘following any period’’.
SEC. 214. IMPROVING FOOD STAMP PROGRAM MANAGE-
MENT.
(a) Section 13(a)(1) of the Food Stamp Act of 1977
(7 U.S.C. 2022(a)(1)) is amended—
(1) in the fifth sentence, by inserting ‘‘(after a
determination on any request for a waiver for good
cause related to the claim has been made by the Sec-
retary)’’ after ‘‘bill for collection’’; and
(2) in the sixth sentence, by striking ‘‘1 year’’
and inserting ‘‘2 years’’.
(b) Section 16(c) of the Food Stamp Act of 1977 (7
U.S.C. 2025(c)) is amended—
(1) in paragraph (1)(C)—
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(A) by striking ‘‘national performance
measure’’ and inserting ‘‘payment error toler-
ance level’’; and
(B) by striking ‘‘equal to—’’ and all that
follows through the period at the end and insert-
ing the following: ‘‘equal to its payment error
rate less such tolerance level times the total value
of allotments issued in such a fiscal year by such
State agency. The amount of liability shall not
be affected by corrective action under subpara-
graph (B).’’;
(2) in paragraph (3)(A), by striking ‘‘120 days’’
and inserting ‘‘60 days (or 90 days at the discretion
of the Secretary)’’;
(3) in the last sentence of paragraph (6), by in-
serting ‘‘shall be used to establish a payment-error
tolerance level. Such tolerance level for any fiscal year
will be one percentage point added to the lowest na-
tional performance measure ever announced up to
and including such fiscal year under this section. The
payment-error tolerance level’’ after ‘‘The announced
national performance measure’’; and
(4) by striking paragraphs (8) and (9).
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SEC. 215. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
(a) Section 11(e) of the Food Stamp Act of 1977
(7 U.S.C. 2020(e)), as amended by section 203(b), is
amended—
(1) in paragraph (25), by striking ‘‘and’’;
(2) in paragraph (26), by striking the period
and inserting ‘‘; and’’ at the end; and
(3) by adding at the end the following new para-
graph:
‘‘(27) the plans of the State agency for including
eligible 
food 
stamp 
recipients 
in 
a 
work
supplementation or support program under section
16(j).’’.
(b) Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 209(b), is amended by adding
at the end the following new subsection:
‘‘(j) WORK SUPPLEMENTATION
OF SUPPORT PRO-
GRAM.—(1) A State may elect to use the sums equal to the
food stamp benefits that would otherwise be allotted to par-
ticipants under the food stamp program but for the oper-
ation of this subsection for the purposes of providing and
subsidizing 
or 
supporting 
jobs 
under 
a 
work
supplementation or support program established by the
State.
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‘‘(2) If a State that makes the election described in
paragraph (1) identifies each household that participates
in the food stamp program which contains an individual
who is participating in such work supplementation or sup-
port program—
‘‘(A) the Secretary shall pay to the State an
amount equal to the value of the allotment that the
household would be eligible to receive but for the oper-
ation of this subsection;
‘‘(B) the State shall expend such amount in ac-
cordance with its work supplementation or support
program in lieu of the allotment that the household
would receive but for the operation of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount re-
ceived under this subsection shall be excluded
from household income and resources; and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered as the
value of an allotment provided to the household;
and
‘‘(D) The household shall not receive an allot-
ment from the State agency for the period during
which the member continues to participate in the
work supplementation program.
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‘‘(3) No person shall be excused by reason of the fact
that such State has a work supplementation or support pro-
gram from any work requirement under section 6(d), except
during the periods in which such individual is employed
under such work supplementation or support program.
‘‘(4) For purposes of this subsection, the term ‘work
supplementation or support program’ shall mean a pro-
gram in which, as determined by the Secretary, public as-
sistance, including any benefits provided under a program
established by the State and the food stamp program, is
provided to an employer to be used for hiring a public as-
sistance recipient.’’.
SEC. 216. OBLIGATIONS AND ALLOTMENTS.
Section 18 of the Food Stamp Act of 1977 (7 U.S.C.
2027) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘are authorized to be
appropriated such sums as are necessary for
each of the fiscal years 1991 through 1995’’
and inserting the following: ‘‘is provided to
be obligated, not in excess of the cost esti-
mate made by the Congressional Budget Of-
fice for this Act, as amended by the Food
Stamp Simplification and Reform Act of
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1995, for the fiscal year ending September
30, 1996, with adjustments for any esti-
mates of total obligations for additional fis-
cal years made by the Congressional Budget
Office to reflect the provisions contained in
the Food Stamp Simplification and Reform
Act of 1995’’;
(ii) by striking ‘‘In each monthly re-
port, the Secretary shall also state’’ and in-
serting ‘‘Also, the Secretary shall file a re-
port every February 15, April 15, and July
15, stating’’; and
(iii) by striking ‘‘supplemental appro-
priations’’ 
and 
inserting 
‘‘additional
obligational authority’’; and
(B) in paragraph (2), by striking ‘‘author-
ized to be appropriated’’ and inserting ‘‘obli-
gated’’;
(2) in subsection (b)—
(A) in the first sentence, by striking ‘‘ap-
propriation’’ and inserting ‘‘total obligations
limitation provided’’; and
(B) in the second sentence, by striking ‘‘ap-
propriation’’ and inserting ‘‘obligational amount
provided in subsection (a)(1)’’;
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SEC. 302. CONDITION PRECEDENT TO APPROVAL OF RETAIL
FOOD STORES AND WHOLESALE FOOD CON-
CERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)), as amended by section 301, is amended
by adding at the end the following new sentence: ‘‘No retail
food store or wholesale food concern shall be approved for
participation in the food stamp program unless an author-
ized employee of the Department of Agriculture, or an offi-
cial of the State or local government designated by the De-
partment of Agriculture, wherever possible, has visited such
retail food store or wholesale food concern for the purpose
of determining whether such retail food store or wholesale
food concern should be so approved.’’.
SEC. 303. WAITING PERIOD FOR RETAIL FOOD STORES AND
WHOLESALE FOOD CONCERNS THAT ARE DE-
NIED APPROVAL TO ACCEPT COUPONS.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.
2018(d)) is amended by adding at the end the following
new sentence: ‘‘Such retail food store or wholesale food con-
cern shall not submit an application under subsection
(a)(1) for six months from the date of receipt of the notice
of denial.’’.
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SEC. 304. DISQUALIFICATION OF RETAIL FOOD STORES AND
WHOLESALE FOOD CONCERNS.
Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C.
2021(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a); and
(2) by inserting the following new paragraph:
‘‘(2) A retail food store or wholesale food concern that
is disqualified from participating in the program under
section 17 of the Child Nutrition Act of 1966 shall for such
period of disqualification also be disqualified from partici-
pating in the food stamp program.’’.
SEC. 305. 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 by adding at the end the following
new sentence: ‘‘Notwithstanding any other provision of law,
the permanent disqualification of a retail food store or
wholesale food concern under section 12(b)(3) shall be effec-
tive from the date of receipt of the notice of disqualifica-
tion.’’.
SEC. 306. CRIMINAL FORFEITURE.
Section 15(g) of the Food Stamp Act of 1977 (7 U.S.C.
2024(g)) is amended to read as follows:
‘‘(g)(1) The court, in imposing sentence on a person
convicted of an offense in violation of subsection (b) or (c),
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shall order, in addition to any other sentence imposed pur-
suant to this subsection, that the person forfeit to the United
States all property described in paragraph (2).
‘‘(2) All property, real and personal, used in a trans-
action or attempted transaction, to commit, or to facilitate
the commission of, a violation (other than a misdemeanor)
of subsection (b) or (c), or proceeds traceable to a violation
of subsection (b) or (c), is subject to forfeiture to the United
States.
‘‘(3) No property shall be forfeited under this sub-
section to the extent of an interest of an owner, by reason
of any act or omission established by that owner to have
been committed or omitted without the knowledge or consent
of that owner.
‘‘(4) The proceeds from any sale of forfeited property
and any monies forfeited under this subsection shall be
used—
‘‘(A) to reimburse the Department of Justice for
the costs incurred by the Department to initiate and
complete the forfeiture proceeding that caused the sale
that produced such proceeds;
‘‘(B) to reimburse the Department of Agriculture
Office of Inspector General for any costs it incurred
in the law enforcement effort resulting in the forfeit-
ure;
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‘‘(C) to reimburse any Federal or State law en-
forcement agencies for any costs incurred in the law
enforcement effort resulting in the forfeiture; and
‘‘(D) by the Secretary to carry out the approval,
reauthorization, and compliance investigations of re-
tail stores under section 9.’’.
SEC. 307. EXPANDED DEFINITION OF ‘‘COUPON’’.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ‘‘or type of certificate’’ and
inserting ‘‘type of certificate, authorization cards, cash or
checks issued in lieu of coupons, or access devices, including,
but not limited to, electronic benefit transfer cards or per-
sonal identification numbers’’.
SEC. 308. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and
inserting ‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and in-
serting ‘‘2 years’’.
SEC. 309. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the end;
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(2) in subclause (III), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following new
subclause:
‘‘(IV) a conviction of an offense under
subsection (a) or (b) of section 15 involving
items referred to in such subsection having
a value of $500 or more.’’.
SEC. 310. CLAIMS COLLECTION.
(a) Section 11(e)(8) of the Food Stamp Act of 1977
(7 U.S.C. 2020(e)(8)) is amended by inserting before the
semicolon at the end ‘‘or refunds of Federal taxes as author-
ized pursuant to section 3720A of title 31 of the United
States Code’’.
(b) Section 13(d) of the Act (7 U.S.C. 2022(d)) is
amended—
(1) by striking ‘‘may’’ and inserting ‘‘shall’’;
and
(2) by inserting before the period at the end ‘‘or
refunds of Federal taxes as authorized pursuant to
section 3720A of title 31 of the United States Code’’.
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Subtitle D—Effective Dates and Miscellaneous
Provisions
SEC. 401. EFFECTIVE DATES.
(a) Except as provided in subsection (b) and (c), this
Act and amendments made by this Act shall take effect on
October 1, 1995.
(b) The amendments made by section 208 shall take
effect on October 1, 1996.
(c) The amendments made by section 214 shall take
effect on October 1, 1994.
SEC. 402. SENSE OF THE CONGRESS.
It is the sense of the Congress that States that operate
electronic benefit systems to transfer benefits provided under
the Food Stamp Act of 1977 should operate electronic bene-
fit systems that are compatible with each other.
SEC. 403. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of the
House of Representatives that reductions in outlays result-
ing from this title shall not be taken into account for pur-
poses of section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985.