869
tion amount as the relative number of meals
served during the 1-year period ending on June
30 of the preceding fiscal year in a State from
amounts received from a grant under this Act
for such preceding fiscal year bears to the total
number of meals served in all States from
amounts received from grants under this Act
for the preceding fiscal year.
‘‘(3) THIRD
AND
FOURTH
FISCAL
YEARS.—
With respect to each of the third and fourth fiscal
years for which the Secretary provides grants to
States under this Act—
‘‘(A) 90 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(A); and
‘‘(B) 10 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(B).
‘‘(4) FIFTH FISCAL YEAR.—With respect to the
fifth fiscal year for which the Secretary provides
grants to States under this Act—
870
‘‘(A) 85 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(A); and
‘‘(B) 15 percent of such school-based nu-
trition amount shall be allotted among the
States by allotting to each State an amount de-
termined in accordance with the formula de-
scribed in paragraph (2)(B).
‘‘SEC. 4. APPLICATION.
‘‘The Secretary may provide a grant under this Act
to a State for a fiscal year only if the State submits to
the Secretary an application containing only—
‘‘(1) an agreement that the State will use
amounts received from such grant in accordance
with section 5;
‘‘(2) except as provided in paragraph (3), an
agreement that the State will set minimum nutri-
tional requirements for meals provided under this
Act based on the most recent tested nutritional re-
search available, except that—
‘‘(A) such requirements shall not be con-
strued to prohibit the substitution of foods to
871
accommodate the medical or other special die-
tary needs of individual students; and
‘‘(B) such requirements shall, at a mini-
mum, be based on—
‘‘(i) the weekly average of the nutrient
content of school lunches; or
‘‘(ii) such other standards as the
State may prescribe;
‘‘(3) an agreement that the State, with respect
to the provision of meals to students, shall—
‘‘(A) implement the minimum nutritional
requirements described in paragraph (2) for
such meals; or
‘‘(B) implement the model nutrition stand-
ards developed under section 10 for such meals;
‘‘(4) an agreement that the State will take such
reasonable steps as the State deems necessary to re-
strict the use and disclosure of information about in-
dividuals and families receiving assistance under this
Act;
‘‘(5) an agreement that the State will use not
more than 2 percent of the amount of such grant for
administrative costs incurred to provide assistance
under this Act; and
872
‘‘(6) an agreement that the State will submit to
the Secretary a report in accordance with section 6.
‘‘SEC. 5. USE OF AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may provide a
grant under this Act to a State only if the State agrees
that it will use all amounts received from such grant to
provide assistance to schools to establish and carry out
nutritious food service programs that provide affordable
meals and supplements to students, which may include—
‘‘(1) nonprofit school breakfast programs;
‘‘(2) nonprofit school lunch programs;
‘‘(3) nonprofit before and after school supple-
ment programs;
‘‘(4) nonprofit low-cost milk services; and
‘‘(5) nonprofit summer meals programs.
‘‘(b) ADDITIONAL REQUIREMENTS.—
‘‘(1) MINIMUM AMOUNT OF GRANT FOR FREE
OR LOW COST MEALS OR SUPPLEMENTS.—In provid-
ing assistance to schools to establish and carry out
nutritious food service programs in accordance with
subsection (a), the State shall ensure that not less
than 80 percent of the amount of the grant is used
to provide free or low cost meals or supplements to
economically disadvantaged children.
873
‘‘(2) PROVISION OF FOOD SERVICE PROGRAMS
IN PRIVATE NONPROFIT SCHOOLS AND DEPARTMENT
OF DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS.—
To the extent consistent with the number of children
in the State who are enrolled in private nonprofit
schools and Department of Defense domestic de-
pendents’ schools, the State, after timely and appro-
priate consultation with representatives of such
schools, as the case may be, shall ensure that nutri-
tious food service programs are established and car-
ried out in such schools in accordance with sub-
section (a) on an equitable basis with nutritious food
service programs established and carried out in pub-
lic nonprofit schools in the State.
‘‘(c) AUTHORITY TO USE AMOUNTS
FOR OTHER
PURPOSES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), a State may use not more than 20 percent
of amounts received from a grant under this Act for
a fiscal year to carry out a State program pursuant
to any or all of the following provisions of law:
‘‘(A) Part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.).
‘‘(B) Part B of title IV of the Social Secu-
rity Act (42 U.S.C. 621 et seq.).
874
‘‘(C) Title XX of the Social Security Act
(42 U.S.C. 1397 et seq.).
‘‘(D) The Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
‘‘(E) The Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et
seq.).
‘‘(2) SUFFICIENT FUNDING DETERMINATION.—
Prior to using any amounts received from a grant
under this Act for a fiscal year to carry out a State
program pursuant to any or all of the provisions of
law described in paragraph (1), the appropriate
State agency shall make a determination that suffi-
cient amounts will remain available for such fiscal
year to carry out this Act.
‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR
OTHER
PURPOSES.—Amounts paid to the State
under a grant under this Act that are used to carry
out a State program pursuant to a provision of law
specified in paragraph (1) shall not be subject to the
requirements of this Act, but shall be subject to the
same requirements that apply to Federal funds pro-
vided directly under the provision of law to carry out
the program.
875
‘‘(d) LIMITATION ON PROVISION OF COMMODITIES
TO CERTAIN SCHOOL DISTRICTS, PRIVATE NONPROFIT
SCHOOLS, AND DEPARTMENT OF DEFENSE DOMESTIC
DEPENDENTS’ SCHOOLS.—
‘‘(1) IN GENERAL.—A State may not require a
school district, private nonprofit school, or Depart-
ment of Defense domestic dependents’ school de-
scribed in paragraph (2), except upon the request of
such school district, private school, or domestic de-
pendents’ school, as the case may be, to accept com-
modities for use in the food service program of such
school district, private school, or domestic depend-
ents’ school in accordance with this section. Such
school district, private school, or domestic depend-
ents’ school may continue to receive commodity as-
sistance in the form that it received such assistance
as of January 1, 1987.
‘‘(2) SCHOOL
DISTRICT, PRIVATE
NONPROFIT
SCHOOL, AND DEPARTMENT OF DEFENSE DOMESTIC
DEPENDENTS’ SCHOOL DESCRIBED.—A school dis-
trict, private nonprofit school, or Department of De-
fense domestic dependents’ school described in this
paragraph is a school district, private nonprofit
school, or Department of Defense domestic depend-
ents’ school, as the case may be, that as of January
876
1, 1987, was receiving all cash payments or all com-
modity letters of credit in lieu of entitlement com-
modities for the school lunch program of such school
district, private school, or domestic dependents’
school under section 18(b) of the National School
Lunch Act (42 U.S.C. 1751 et seq.), as such section
was in effect on the day before the date of the enact-
ment of the Personal Responsibility Act of 1995.
‘‘(e) PROHIBITION
ON
PHYSICAL
SEGREGATION,
OVERT IDENTIFICATION, OR OTHER DISCRIMINATION
WITH RESPECT TO CHILDREN ELIGIBLE FOR FREE OR
LOW COST MEALS OR SUPPLEMENTS.—In providing as-
sistance to schools to establish and carry out nutritious
food service programs in accordance with subsection (a),
the State shall ensure that such schools do not—
‘‘(1) physically segregate children eligible to re-
ceive free or low cost meals or supplements on the
basis of such eligibility;
‘‘(2) provide for the overt identification of such
children by special tokens or tickets, announced or
published list of names, or other means; or
‘‘(3) otherwise discriminate against such chil-
dren.
877
‘‘SEC. 6. REPORTS.
‘‘The Secretary may provide a grant under this Act
to a State for a fiscal year only if the State agrees that
it will submit, for such fiscal year, a report to the Sec-
retary describing—
‘‘(1) the number of individuals receiving assist-
ance under the grant;
‘‘(2) the different types of assistance provided
to such individuals;
‘‘(3) the total number of meals served to stu-
dents under the grant, including the percentage of
such meals served to economically disadvantaged
students;
‘‘(4) the extent to which such assistance was ef-
fective in achieving the goals described in section
2(b);
‘‘(5) the standards and methods the State is
using to ensure the nutritional quality of such assist-
ance, including meals and supplements; and
‘‘(6) any other information which can be rea-
sonably required by the Secretary.
‘‘SEC. 7. PENALTIES.
‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION
OF THIS ACT.—
‘‘(1) IN GENERAL.—The Secretary shall reduce
the amounts otherwise payable to a State under a
878
grant under this Act by any amount paid to the
State under this Act which an audit conducted pur-
suant to chapter 75 of title 31, United States Code,
finds has been used in violation of this Act.
‘‘(2) LIMITATION.—In carrying out paragraph
(1), the Secretary shall not reduce any quarterly
payment by more than 25 percent.
‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED
REPORT.—The Secretary shall reduce by 3 percent the
amount otherwise payable to a State under a grant under
this Act for a fiscal year if the Secretary determines that
the State has not submitted the report required by section
6 for the immediately preceding fiscal year, within 6
months after the end of the immediately preceding fiscal
year.
‘‘SEC. 8. ASSISTANCE TO CHILDREN ENROLLED IN PRIVATE
NONPROFIT SCHOOLS AND DEPARTMENT OF
DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS
IN CASE OF RESTRICTIONS ON STATE OR
FAILURE BY STATE TO PROVIDE ASSISTANCE.
‘‘(a) IN GENERAL.—If, by reason of any other provi-
sion of law, a State is prohibited from providing assistance
from amounts received from a grant under this Act to pri-
vate nonprofit schools or Department of Defense domestic
dependents’ schools for a fiscal year to establish and carry
879
out nutritious food service programs in such schools in ac-
cordance with section 5(a), or the Secretary determines
that a State has substantially failed or is unwilling to pro-
vide such assistance to such private nonprofit schools or
domestic dependents’ schools for such fiscal year, the Sec-
retary shall, after consultation with appropriate represent-
atives of the State and private nonprofit schools or domes-
tic dependents’ schools, as the case may be, arrange for
the provision of such assistance to private nonprofit
schools or domestic dependents’ schools in the State for
such fiscal year in accordance with the requirements of
this Act.
‘‘(b) REDUCTION IN AMOUNT OF STATE GRANT.—
If the Secretary arranges for the provision of assistance
to private nonprofit schools or Department of Defense do-
mestic dependents’ schools in a State for a fiscal year
under subsection (a), the amount of the grant for such
State for such fiscal year shall be reduced by the amount
of such assistance provided to such private nonprofit
schools or domestic dependents’ schools, as the case may
be.
‘‘SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF
DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS.
‘‘(a) IN GENERAL.—The Secretary shall make avail-
able to the Secretary of Defense for each fiscal year funds
880
and commodities in an amount determined in accordance
with subsection (c) for the purpose of establishing and car-
rying out nutritious food service programs that provide af-
fordable meals and supplements to students attending De-
partment of Defense overseas dependents’ schools.
‘‘(b) REQUIREMENTS.—In carrying out nutritious
food service programs under subsection (a), the Secretary
of Defense—
‘‘(1) shall ensure that not less than 80 percent
of the amount of assistance provided to each school
for a fiscal year is used to provide free or low cost
meals or supplements to economically disadvantaged
children; and
‘‘(2) shall ensure that, with respect to the pro-
vision of meals to students, each such school will—
‘‘(A) implement minimum nutritional re-
quirements for meals provided under this sec-
tion based on the most recent tested nutritional
research available, except that—
‘‘(i) such requirements shall not be
construed to prohibit the substitution of
foods to accommodate the medical or other
special dietary needs of individual stu-
dents; and
881
‘‘(ii) such requirements shall, at a
minimum, be based on—
‘‘(I) the weekly average of the
nutrient content of school lunches; or
‘‘(II) such other standards as the
Secretary of Agriculture may pre-
scribe; or
‘‘(B) implement the model nutrition stand-
ards developed under section 10 for such meals.
‘‘(c) AMOUNT AND SOURCE OF FUNDS AND COMMOD-
ITIES.—
‘‘(1) AMOUNT.—The Secretary, in consultation
with the Secretary of Defense, shall determine the
amount of funds and commodities necessary for each
fiscal year to establish and carry out nutritious food
service programs described in subsection (a).
‘‘(2) SOURCE.—Such amount of funds and com-
modities shall consist of the reservation of the
school-based nutrition amount in accordance with
section 2(a)(3)(B).
‘‘SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR
STUDENTS.
‘‘(a) MODEL NUTRITION STANDARDS.—Not later
than April 1, 1996, the Food and Nutrition Board of the
Institute of Medicine of the National Academy of Sciences,
882
in cooperation with nutritionists and directors of programs
providing meals to students under this Act, shall develop
model nutrition standards for meals provided to such stu-
dents under this Act.
‘‘(b) REPORT TO CONGRESS.—Not later than 1 year
after the date on which the model nutrition standards are
developed under subsection (a), the Food and Nutrition
Board of the Institute of Medicine of the National Acad-
emy of Sciences shall prepare and submit to the Congress
a report regarding the efforts of States to implement such
model nutrition standards.
‘‘SEC. 11. DEFINITIONS.
‘‘For purposes of this Act:
‘‘(1) DEPARTMENT OF DEFENSE DOMESTIC DE-
PENDENTS’ SCHOOL.—The term ‘Department of De-
fense domestic dependents’ school’ means an elemen-
tary or secondary school established pursuant to sec-
tion 2164 of title 10, United States Code.
‘‘(2) DEPARTMENT OF DEFENSE OVERSEAS DE-
PENDENTS’ SCHOOL.—The term ‘Department of De-
fense overseas dependents’ school’ means a Depart-
ment of Defense dependents’ school which is located
outside the United States and the territories or pos-
sessions of the United States.
883
‘‘(3) ECONOMICALLY
DISADVANTAGED.—The
term ‘economically disadvantaged’ means an individ-
ual or a family, as the case may be, whose annual
income does not exceed 185 percent of the applicable
family size income levels contained in the most re-
cent income poverty guidelines prescribed by the Of-
fice of Management and Budget and based on data
from the Bureau of the Census.
‘‘(4) SCHOOL.—The term ‘school’ means a pub-
lic or private nonprofit elementary, intermediate, or
secondary school.
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture.
‘‘(6) STATE.—The term ‘State’ means any of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa,
Guam, the Virgin Islands, or a tribal organization
(as defined in section 4(l) of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450b(l))).’’.
Subchapter C—Miscellaneous Provisions
SEC. 14361. REPEALERS.
The following Acts are repealed:
884
(1) The Commodity Distribution Reform Act
and WIC Amendments of 1987 (Public Law 100–
237; 101 Stat. 1733).
(2) The Child Nutrition and WIC Reauthoriza-
tion Act of 1989 (Public Law 101–147; 103 Stat.
877).
CHAPTER 3—OTHER REPEALERS AND
CONFORMING AMENDMENTS
SEC. 14371. AMENDMENTS TO LAWS RELATING TO CHILD
PROTECTION BLOCK GRANT.
(a) ABANDONED INFANTS ASSISTANCE.—
(1) REPEALER.—The Abandoned Infants As-
sistance Act of 1988 (42 U.S.C. 670 note) is re-
pealed.
(2) 
CONFORMING
AMENDMENT.—Section
421(7) of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5061(7)) is amended to read as
follows:
‘‘(7) the term ‘boarder baby’ means an infant
who is medically cleared for discharge from an
acute-care hospital setting, but remains hospitalized
because of a lack of appropriate out-of-hospital
placement alternatives;’’.
(b) CHILD ABUSE PREVENTION AND TREATMENT.—
885
(1) REPEALER.—The Child Abuse Prevention
and Treatment Act (42 U.S.C. 5101 et seq.) is re-
pealed.
(2) CONFORMING AMENDMENTS.—The Victims
of Crime Act of 1984 (42 U.S.C. 10601 et seq.) is
amended—
(A) in section 1402—
(i) in subsection (d)—
(I) by striking paragraph (2);
(II) by redesignating paragraphs
(3) and (4) as paragraphs (2) and
(3), respectively; and
(III) in paragraph (2) (as redes-
ignated by subclause (II))—
(aa) in subparagraph (A),
by striking the semicolon at the
end and inserting ‘‘; and’’;
(bb) by striking subpara-
graph (B); and
(cc) by redesignating sub-
paragraph (C) as subparagraph
(B); and
(ii) by striking subsection (g); and
(B) by striking section 1404A.
886
(c) ADOPTION OPPORTUNITIES.—The Child Abuse
Prevention and Treatment and Adoption Reform Act of
1978 (42 U.S.C. 5111 et seq.) is repealed.
(d) CRISIS NURSERIES.—The Temporary Child Care
for Children with Disabilities and Crisis Nurseries Act of
1986 (42 U.S.C. 5117 et seq.) is amended—
(1) in the title heading by striking ‘‘AND CRI-
SIS NURSERIES’’;
(2) in section 201 by striking ‘‘and Crisis Nurs-
eries’’;
(3) in section 202—
(A) by striking ‘‘provide: (A) temporary’’
and inserting ‘‘to provide temporary’’; and
(B) by striking ‘‘children, and (B)’’ and all
that follows through the period and inserting
‘‘children.’’;
(4) by striking section 204; and
(5) in section 205—
(A) in subsection (a)—
(i) in paragraph (1)(A) by striking
‘‘or 204’’; and
(ii) in paragraph (2)—
(I) by striking subparagraph (D);
and
887
(II) by redesignating subpara-
graph (E) as subparagraph (D);
(B) by striking subsection (b)(3); and
(C) in subsection (d)—
(i) by striking paragraph (3); and
(ii) by redesignating paragraphs (4)
and (5) as paragraph (3) and (4), respec-
tively.
(e) MISSING CHILDREN’S ASSISTANCE ACT.—The
Missing Children’s Assistance Act (42 U.S.C. 5771–5779)
is repealed.
(f) FAMILY SUPPORT CENTERS.—Subtitle F of title
VII of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11481–11489) is repealed.
(g) INVESTIGATION AND PROSECUTION OF CHILD
ABUSE CASES.—Subtitle A of title II of the Victims of
Child Abuse Act of 1990 (42 U.S.C. 13001–13004) is re-
pealed.
(h) REPEAL OF FAMILY UNIFICATION PROGRAM.—
Subsection (x) of section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f(x)) is repealed.
888
CHAPTER 4—RELATED PROVISIONS
SEC. 14381. REQUIREMENT THAT DATA RELATING TO THE
INCIDENCE OF POVERTY IN THE UNITED
STATES BE PUBLISHED AT LEAST EVERY 2
YEARS.
(a) IN GENERAL.—The Secretary shall, to the extent
feasible, produce and publish for each State, county, and
local unit of general purpose government for which data
have been compiled in the then most recent census of pop-
ulation under section 141(a) of title 13, United States
Code, and for each school district, data relating to the in-
cidence of poverty. Such data may be produced by means
of sampling, estimation, or any other method that the Sec-
retary determines will produce current, comprehensive,
and reliable data.
(b) CONTENT; FREQUENCY.—Data under this sec-
tion—
(1) shall include—
(A) for each school district, the number of
children age 5 to 17, inclusive, in families below
the poverty level; and
(B) for each State and county referred to
in subsection (a), the number of individuals age
65 or older below the poverty level; and
(2) shall be published—
889
(A) for each State, county, and local unit
of general purpose government referred to in
subsection (a), in 1996 and at least every sec-
ond year thereafter; and
(B) for each school district, in 1998 and at
least every second year thereafter.
(c) AUTHORITY TO AGGREGATE.—
(1) IN GENERAL.—If reliable data could not
otherwise be produced, the Secretary may, for pur-
poses of subsection (b)(1)(A), aggregate school dis-
tricts, but only to the extent necessary to achieve re-
liability.
(2) INFORMATION RELATING TO USE OF AU-
THORITY.—Any data produced under this subsection
shall be appropriately identified and shall be accom-
panied by a detailed explanation as to how and why
aggregation was used (including the measures taken
to minimize any such aggregation).
(d) REPORT TO BE SUBMITTED WHENEVER DATA
IS NOT TIMELY PUBLISHED.—If the Secretary is unable
to produce and publish the data required under this sec-
tion for any State, county, local unit of general purpose
government, or school district in any year specified in sub-
section (b)(2), a report shall be submitted by the Secretary
to the President of the Senate and the Speaker of the
890
House of Representatives, not later than 90 days before
the start of the following year, enumerating each govern-
ment or school district excluded and giving the reasons
for the exclusion.
(e) CRITERIA RELATING TO POVERTY.—In carrying
out this section, the Secretary shall use the same criteria
relating to poverty as were used in the then most recent
census of population under section 141(a) of title 13,
United States Code (subject to such periodic adjustments
as may be necessary to compensate for inflation and other
similar factors).
(f) CONSULTATION.—The Secretary shall consult
with the Secretary of Education in carrying out the re-
quirements of this section relating to school districts.
(g) DEFINITION.—For the purpose of this section,
the term ‘‘Secretary’’ means the Secretary of Health and
Human Services.
(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$1,500,000 for each of fiscal years 1996 through 2000.
SEC. 14382. DATA ON PROGRAM PARTICIPATION AND OUT-
COMES.
(a) IN GENERAL.—The Secretary shall produce data
relating to participation in programs authorized by this
Act by families and children. Such data may be produced
891
by means of sampling, estimation, or any other method
that the Secretary determines will produce comprehensive
and reliable data.
(b) CONTENT.—Data under this section shall include,
but not be limited to—
(1) changes in participation in welfare, health,
education, and employment and training programs,
for families and children, the duration of such par-
ticipation, and the causes and consequences of any
changes in program participation;
(2) changes in employment status, income and
poverty status, family structure and process, and
children’s well-being, over time, for families and chil-
dren participating in Federal programs and, if ap-
propriate, other low-income families and children,
and the causes and consequences of such changes;
and
(3) demographic data, including household com-
position, marital status, relationship of householders,
racial and ethnic designation, age, and educational
attainment.
(c) FREQUENCY.—Data under this section shall re-
flect the period 1993 through 2002, and shall be published
as often as practicable during that time, but in any event
no later than December 31, 2003.
892
(d) DEFINITION.—For the purpose of this section,
the term ‘‘Secretary’’ means the Secretary of Health and
Human Services.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$2,500,000 in fiscal year 1996, $10,000,000 for each of
fiscal years 1997 through 2002, and $2,000,000 for fiscal
year 2003.
CHAPTER 5—GENERAL EFFECTIVE DATE;
PRESERVATION OF ACTIONS, OBLIGA-
TIONS, AND RIGHTS
SEC. 14391. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, this
subtitle and the amendments made by this subtitle shall
take effect on October 1, 1995.
SEC. 14392. APPLICATION OF AMENDMENTS AND REPEAL-
ERS.
An amendment or repeal made by this subtitle shall
not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to financial as-
sistance provided before the effective date of amend-
ment or repeal, as the case may be, under the Act
so amended or so repealed; and
893
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such Act.
Subtitle D—Restricting Welfare
and Public Benefits for Aliens
SEC. 14400. STATEMENTS OF NATIONAL POLICY CONCERN-
ING WELFARE AND IMMIGRATION.
The Congress makes the following statements con-
cerning national policy with respect to welfare and immi-
gration:
(1) Self-sufficiency has been a basic principle of
United States immigration law since this country’s
earliest immigration statutes.
(2) It continues to be the immigration policy of
the United States that—
(A) aliens within the nation’s borders not
depend on public resources to meet their needs,
but rather rely on their own capabilities and the
resources of their families, their sponsors, and
private organizations, and
(B) the availability of public benefits not
constitute an incentive for immigration to the
United States.
(3) Despite the principle of self-sufficiency,
aliens have been applying for and receiving public
894
benefits from Federal, State, and local governments
at increasing rates.
(4) Current eligibility rules for public assistance
and unenforceable financial support agreements have
proved wholly incapable of assuring that individual
aliens not burden the public benefits system.
(5) It is a compelling government interest to
enact new rules for eligibility and sponsorship agree-
ments in order to assure that aliens be self-reliant
in accordance with national immigration policy.
(6) It is a compelling government interest to re-
move the incentive for illegal immigration provided
by the availability of public benefits.
CHAPTER 1—ELIGIBILITY FOR FEDERAL
BENEFITS PROGRAMS
SEC. 14401. INELIGIBILITY OF ILLEGAL ALIENS FOR CER-
TAIN PUBLIC BENEFITS PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsections (b) and
(c), any alien who is not lawfully present in the United
States shall not be eligible for any Federal means-tested
public 
benefits 
program 
(as 
defined 
in 
section
14431(d)(2)).
(b) EXCEPTION
FOR EMERGENCY ASSISTANCE.—
Subsection (a) shall not apply to the provision of noncash,
895
in-kind emergency assistance (including emergency medi-
cal services).
(c) TREATMENT
OF
HOUSING-RELATED
ASSIST-
ANCE.—Subsection (a) shall not apply to any program for
housing or community development assistance adminis-
tered by the Secretary of Housing and Urban Develop-
ment, any program under title V of the Housing Act of
1949, or any assistance under section 306C of the Consoli-
dated Farm and Rural Development Act, except that in
the case of financial assistance (as defined in section
214(b) of the Housing and Community Development Act
of 1980), the provisions of section 214 of such Act shall
apply instead of subsection (a).
SEC. 14402. INELIGIBILITY OF NONIMMIGRANTS FOR CER-
TAIN PUBLIC BENEFITS PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsections (b) and
(c), any alien who is lawfully present in the United States
as a nonimmigrant shall not be eligible for any Federal
means-tested public benefits program.
(b) EXCEPTIONS.—
(1) EMERGENCY ASSISTANCE.—Subsection (a)
shall not apply to the provision of non-cash, in-kind
emergency assistance (including emergency medical
services).
896
(2) ALIENS GRANTED ASYLUM.—Subsection (a)
shall not apply to an alien who is granted asylum
under section 208 of the Immigration and National-
ity Act or whose deportation has been withheld
under section 243(h) of such Act.
(3) TREATMENT
OF
TEMPORARY
AGRICUL-
TURAL WORKERS.—Subsection (a) shall not apply to
a nonimmigrant admitted as a temporary agricul-
tural worker under section 101(a)(15)(H)(ii)(a) of
the Immigration and Nationality Act or as the
spouse or minor child of such a worker under section
101(a)(15)(H)(iii) of such Act.
(c) TREATMENT
OF
HOUSING-RELATED
ASSIST-
ANCE.—Subsection (a) shall not apply to any program for
housing or community development assistance adminis-
tered by the Secretary of Housing and Urban Develop-
ment, any program under title V of the Housing Act of
1949, or any assistance under section 306C of the Consoli-
dated Farm and Rural Development Act, except that in
the case of financial assistance (as defined in section
214(b) of the Housing and Community Development Act
of 1980), the provisions of section 214 of such Act shall
apply instead of subsection (a).
(d) TREATMENT
OF ALIENS PAROLED
INTO
THE
UNITED STATES.—An alien who is paroled into the
897
United States under section 212(d)(5) of the Immigration
and Nationality Act for a period of less than 1 year shall
be considered, for purposes of this chapter, to be lawfully
present in the United States as a nonimmigrant.
SEC. 14403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5
SPECIFIED FEDERAL PUBLIC BENEFITS PRO-
GRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), any
alien who is lawfully present in the United States shall
not be eligible for any of the following Federal means-test-
ed public benefits programs:
(1) SSI.—The supplemental security income
program under title XVI of the Social Security Act.
(2) TEMPORARY ASSISTANCE FOR NEEDY FAMI-
LIES.—The program of block grants to States for
temporary assistance for needy families under part
A of title IV of the Social Security Act.
(3) SOCIAL SERVICES BLOCK GRANT.—The pro-
gram of block grants to States for social services
under title XX of the Social Security Act.
(4) MEDICAID.—The program of medical assist-
ance under title XIX of the Social Security Act.
898
(5) CONSOLIDATED
FOOD
ASSISTANCE
PRO-
GRAM.—The consolidated program of food assistance
under chapter 2 of subtitle E of this title.
(b) EXCEPTIONS.—
(1) TIME-LIMITED
EXCEPTION
FOR
REFU-
GEES.—Subsection (a) shall not apply to an alien
admitted to the United States as a refugee under
section 207 of the Immigration and Nationality Act
until 5 years after the date of such alien’s arrival
into the United States.
(2) CERTAIN
LONG-TERM, PERMANENT
RESI-
DENT, AGED
ALIENS.—Subsection (a) shall not
apply to an alien who—
(A) has been lawfully admitted to the
United States for permanent residence;
(B) is over 75 years of age; and
(C) has resided in the United States for at
least 5 years.
(3) VETERAN AND ACTIVE DUTY EXCEPTION.—
Subsection (a) shall not apply to an alien who is
lawfully residing in any State (or any territory or
possession of the United States) and is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge,
899
(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
Subparagraph (A) shall not apply in the case of a
veteran who has been separated from military serv-
ice on account of alienage.
(4) EMERGENCY ASSISTANCE.—Subsection (a)
shall not apply to the provision of non-cash, in-kind
emergency assistance (including emergency medical
services).
(5) 
TRANSITION
FOR
CURRENT
BENE-
FICIARIES.—Subsection (a) shall not apply to the eli-
gibility of an alien for a program until 1 year after
the date of the enactment of this Act if, on such
date of enactment, the alien is lawfully residing in
any State or any territory or possession of the
United States and is eligible for the program.
(6) CERTAIN PERMANENT RESIDENT AND DIS-
ABLED ALIENS.—Subsection (a) shall not apply to
an alien who—
(A) has been lawfully admitted to the
United States for permanent residence; and
900
(B) is unable because of physical or devel-
opmental disability or mental impairment (in-
cluding Alzheimer’s disease) to comply with the
naturalization requirements of section 312(a) of
the Immigration and Naturalization Act.
SEC. 14404. NOTIFICATION.
Each Federal agency that administers a program to
which section 14401, 14402, or 14403 applies shall, di-
rectly or through the States, post information and provide
general notification to the public and to program recipi-
ents of the changes regarding eligibility for any such pro-
gram pursuant to this chapter.
CHAPTER 2—ELIGIBILITY FOR STATE AND
LOCAL PUBLIC BENEFITS PROGRAMS
SEC. 14411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE
AND LOCAL PUBLIC BENEFITS PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as otherwise provided in this sec-
tion, no alien who is not lawfully present in the United
States (as determined in accordance with regulations of
the Attorney General) shall be eligible for any State
means-tested public benefits program (as defined in sec-
tion 14431(d)(3)).
(b) EXCEPTION
FOR EMERGENCY ASSISTANCE.—
Subsection (a) shall not apply to the provision of non-cash,
901
in-kind emergency assistance (including emergency medi-
cal services).
SEC. 14412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE
AND LOCAL PUBLIC BENEFITS PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as otherwise provided in this sec-
tion, no alien who is lawfully present in the United States
as a nonimmigrant shall be eligible for any State means-
tested public benefits program (as defined in section
14431(d)(3)).
(b) EXCEPTIONS.—
(1) EMERGENCY ASSISTANCE.—The limitations
under subsection (a) shall not apply to the provision
of non-cash, in-kind emergency assistance (including
emergency medical services).
(2) ALIENS GRANTED ASYLUM.—Subsection (a)
shall not apply to an alien who is granted asylum
under section 208 of the Immigration and National-
ity Act or whose deportation has been withheld
under section 243(h) of such Act.
(3) TREATMENT
OF
TEMPORARY
AGRICUL-
TURAL WORKERS.—Subsection (a) shall not apply to
a nonimmigrant admitted as a temporary agricul-
tural worker under section 101(a)(15)(H)(ii)(a) of
the Immigration and Nationality Act or as the
902
spouse or minor child of such a worker under section
101(a)(15)(H)(iii) of such Act.
(c) TREATMENT
OF ALIENS PAROLED
INTO
THE
UNITED STATES.—An alien who is paroled into the
United States under section 212(d)(5) of the Immigration
and Nationality Act for a period of less than 1 year shall
be considered, for purposes of this chapter, to be lawfully
present in the United States as a nonimmigrant.
SEC. 14413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF
IMMIGRANTS FOR STATE AND LOCAL MEANS-
TESTED PUBLIC BENEFITS PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as otherwise provided in this section
or section 14412, a State is authorized to determine eligi-
bility requirements for aliens who are lawfully present in
the United States for any State means-tested public bene-
fits program.
(b) EXCEPTIONS.—
(1) TIME-LIMITED
EXCEPTION
FOR
REFU-
GEES.—The authority under subsection (a) shall not
apply to an alien admitted to the United States as
a refugee under section 207 of the Immigration and
Nationality Act until 5 years after the date of such
alien’s arrival into the United States.
903
(2) CERTAIN
LONG-TERM, PERMANENT
RESI-
DENT, AGED
ALIENS.—The authority under sub-
section (a) shall not apply to an alien who—
(A) has been lawfully admitted to the
United States for permanent residence;
(B) is over 75 years of age; and
(C) has resided in the United States for at
least 5 years.
(3) VETERAN AND ACTIVE DUTY EXCEPTION.—
The authority under subsection (a) shall not apply
to an alien who is lawfully residing in any State (or
any territory or possession of the United States) and
is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge,
(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
Subparagraph (A) shall not apply in the case of a
veteran who has been separated from military serv-
ice on account of alienage.
904
(4) EMERGENCY
ASSISTANCE.—The authority
under subsection (a) shall not apply to the provision
of non-cash, in-kind emergency assistance (including
emergency medical services).
(5) TRANSITION.—The authority under sub-
section (a) shall not apply to eligibility of an alien
for a State means-tested public benefits program
until 1 year after the date of the enactment of this
Act if, on such date of enactment, the alien is law-
fully present in the United States and is eligible for
benefits under the program. Nothing in the previous
sentence is intended to address alien eligibility for
such a program before the date of the enactment of
this Act.
CHAPTER 3—ATTRIBUTION OF INCOME
AND AFFIDAVITS OF SUPPORT
SEC. 14421. ATTRIBUTION OF SPONSOR’S INCOME AND RE-
SOURCES 
TO 
FAMILY-SPONSORED 
IMMI-
GRANTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (c), in
determining the eligibility and the amount of benefits of
an alien for any means-tested public benefits program (as
defined in section 14431(d)) the income and resources of
the alien shall be deemed to include—
905
(1) the income and resources of any person who
executed an affidavit of support pursuant to section
213A of the Immigration and Nationality Act (as
added by section 14422) in behalf of such alien, and
(2) the income and resources of the spouse (if
any) of the person.
(b) APPLICATION.—Subsection (a) shall apply with
respect to an alien until such time as the alien achieves
United States citizenship through naturalization pursuant
to chapter 2 of title III of the Immigration and National-
ity Act.
(c) EXCEPTION
FOR HOUSING-RELATED ASSIST-
ANCE.—Subsection (a) shall not apply to any program for
housing or community development assistance adminis-
tered by the Secretary of Housing and Urban Develop-
ment, any program under title V of the Housing Act of
1949, or any assistance under section 306C of the Consoli-
dated Farm and Rural Development Act.
SEC. 14422. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF
SUPPORT.
(a) IN GENERAL.—Title II of the Immigration and
Nationality Act is amended by inserting after section 213
the following new section:
‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT
‘‘SEC. 213A. (a) ENFORCEABILITY.—No affidavit of
support may be accepted by the Attorney General or by
906
any consular officer to establish that an alien is not ex-
cludable as a public charge under section 212(a)(4) unless
such affidavit is executed as a contract—
‘‘(1) which is legally enforceable against the
sponsor by the Federal Government and by any
State (or any political subdivision of such State)
which provides any means-tested public benefits pro-
gram, but not later than 10 years after the alien last
receives any such benefit; and
‘‘(2) in which the sponsor agrees to submit to
the jurisdiction of any Federal or State court for the
purpose of actions brought under subsection (e)(2).
Such contract shall be enforceable with respect to benefits
provided to the alien until such time as the alien achieves
United States citizenship through naturalization pursuant
to chapter 2 of title III.
‘‘(b) FORMS.—Not later than 90 days after the date
of enactment of this section, the Attorney General, in con-
sultation with the Secretary of State and the Secretary
of Health and Human Services, shall formulate an affida-
vit of support consistent with the provisions of this
section.
‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this
section shall be construed to grant third party beneficiary
907
rights to any sponsored alien under an affidavit of sup-
port.
‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—(1)
The sponsor shall notify the Federal Government and the
State in which the sponsored alien is currently resident
within 30 days of any change of address of the sponsor
during the period specified in subsection (a)(1).
‘‘(2) Any person subject to the requirement of para-
graph (1) who fails to satisfy such requirement shall be
subject to a civil penalty of—
‘‘(A) not less than $250 or more than $2,000,
or
‘‘(B) if such failure occurs with knowledge that
the sponsored alien has received any benefit under
any means-tested public benefits program, not less
than $2,000 or more than $5,000.
‘‘(e) 
REIMBURSEMENT
OF
GOVERNMENT
EX-
PENSES.—(1)(A) Upon notification that a sponsored alien
has received any benefit under any means-tested public
benefits program, the appropriate Federal, State, or local
official shall request reimbursement by the sponsor in the
amount of such assistance.
‘‘(B) The Attorney General, in consultation with the
Secretary of Health and Human Services, shall prescribe
908
such regulations as may be necessary to carry out sub-
paragraph (A).
‘‘(2) If within 45 days after requesting reimburse-
ment, the appropriate Federal, State, or local agency has
not received a response from the sponsor indicating a will-
ingness to commence payments, an action may be brought
against the sponsor pursuant to the affidavit of support.
‘‘(3) If the sponsor fails to abide by the repayment
terms established by such agency, the agency may, within
60 days of such failure, bring an action against the spon-
sor pursuant to the affidavit of support.
‘‘(4) No cause of action may be brought under this
subsection later than 10 years after the alien last received
any benefit under any means-tested public benefits pro-
gram.
‘‘(f) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) SPONSOR.—The term ‘sponsor’ means an
individual who—
‘‘(A) is a citizen or national of the United
States or an alien who is lawfully admitted to
the United States for permanent residence;
‘‘(B) is 18 years of age or over; and
‘‘(C) is domiciled in any State.
909
‘‘(2) MEANS-TESTED
PUBLIC
BENEFITS
PRO-
GRAM.—The term ‘means-tested public benefits pro-
gram’ means a program of public benefits (including
cash, medical, housing, and food assistance and so-
cial services) of the Federal Government or of a
State or political subdivision of a State in which the
eligibility of an individual, household, or family eligi-
bility unit for benefits under the program, or the
amount of such benefits, or both are determined on
the basis of income, resources, or financial need of
the individual, household, or unit.’’.
(b) CLERICAL AMENDMENT.—The table of contents
of such Act is amended by inserting after the item relating
to section 213 the following:
‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.
(c) EFFECTIVE DATE.—Subsection (a) of section
213A of the Immigration and Nationality Act, as inserted
by subsection (a) of this section, shall apply to affidavits
of support executed on or after a date specified by the
Attorney General, which date shall be not earlier than 60
days (and not later than 90 days) after the date the Attor-
ney General formulates the form for such affidavits under
subsection (b) of such section.
910
CHAPTER 4—GENERAL PROVISIONS
SEC. 14431. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this section, the terms used in this subtitle have the same
meaning given such terms in section 101(a) of the Immi-
gration and Nationality Act.
(b) LAWFUL PRESENCE.—For purposes of this sub-
title, the determination of whether an alien is lawfully
present in the United States shall be made in accordance
with regulations of the Attorney General. An alien shall
not be considered to be lawfully present in the United
States for purposes of this subtitle merely because the
alien may be considered to be permanently residing in the
United States under color of law for purposes of any par-
ticular program.
(c) STATE.—As used in this subtitle, the term
‘‘State’’ includes the District of Columbia, Puerto Rico,
the Virgin Islands, Guam, the Northern Mariana Islands,
and American Samoa.
(d) PUBLIC BENEFITS PROGRAMS.—As used in this
subtitle—
(1) 
MEANS-TESTED
PROGRAM.—The 
term
‘‘means-tested public benefits program’’ means a
program of public benefits (including cash, medical,
housing, and food assistance and social services) of
911
the Federal Government or of a State or political
subdivision of a State in which the eligibility of an
individual, household, or family eligibility unit for
benefits under the program, or the amount of such
benefits, or both are determined on the basis of in-
come, resources, or financial need of the individual,
household, or unit.
(2) FEDERAL
MEANS-TESTED
PUBLIC
BENE-
FITS PROGRAM.—The term ‘‘Federal means-tested
public benefits program’’ means a means-tested pub-
lic benefits program of (or contributed to by) the
Federal Government and under which the Federal
Government has specified standards for eligibility
and includes the programs specified in section
14403(a).
(3) STATE
MEANS-TESTED
PUBLIC
BENEFITS
PROGRAM.—The term ‘‘State means-tested public
benefits program’’ means a means-tested public ben-
efits program of a State or political subdivision of a
State under which the State or political subdivision
specifies the standards for eligibility, and does not
include any Federal means-tested public benefits
program.
912
SEC. 14432. CONSTRUCTION.
Nothing in this subtitle shall be construed as address-
ing alien eligibility for governmental programs that are
not means-tested public benefits programs.
CHAPTER 5—CONFORMING AMENDMENTS
SEC. 14441. CONFORMING AMENDMENTS RELATING TO AS-
SISTED HOUSING.
(a) LIMITATIONS ON ASSISTANCE.—Section 214 of
the Housing and Community Development Act of 1980
(42 U.S.C. 1436a) is amended—
(1) by striking ‘‘Secretary of Housing and
Urban Development’’ each place it appears and in-
serting ‘‘applicable Secretary’’;
(2) in subsection (b), by inserting after ‘‘Na-
tional Housing Act,’’ the following: ‘‘the direct loan
program under section 502 of the Housing Act of
1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or
542 of such Act, subtitle A of title III of the Cran-
ston-Gonzalez National Affordable Housing Act,’’;
(3) in paragraphs (2) through (6) of subsection
(d), by striking ‘‘Secretary’’ each place it appears
and inserting ‘‘applicable Secretary’’;
(4) in subsection (d), in the matter following
paragraph (6), by striking ‘‘the term ‘Secretary’’’
and inserting ‘‘the term ‘applicable Secretary’’’; and
913
(5) by adding at the end the following new sub-
section:
‘‘(h) For purposes of this section, the term ‘applicable
Secretary’ means—
‘‘(1) the Secretary of Housing and Urban De-
velopment, with respect to financial assistance ad-
ministered by such Secretary and financial assist-
ance under subtitle A of title III of the Cranston-
Gonzalez National Affordable Housing Act; and
‘‘(2) the Secretary of Agriculture, with respect
to financial assistance administered by such Sec-
retary.’’.
(b) CONFORMING AMENDMENTS.—Section 501(h) of
the Housing Act of 1949 (42 U.S.C. 1471(h)) is amend-
ed—
(1) by striking ‘‘(1)’’;
(2) by striking ‘‘by the Secretary of Housing
and Urban Development’’; and
(3) by striking paragraph (2).
Subtitle E—Food Stamp Reform
and Commodity Distribution
SEC. 14501. SHORT TITLE.
This subtitle may be cited as the ‘‘Food Stamp Re-
form and Commodity Distribution Act’’.
914
CHAPTER 1—COMMODITY DISTRIBUTION
PROVISIONS
SEC. 14511. SHORT TITLE.
This chapter may be cited as the ‘‘Commodity Dis-
tribution Act of 1995’’.
SEC. 14512. AVAILABILITY OF COMMODITIES.
(a) Notwithstanding any other provision of law, the
Secretary of Agriculture (hereinafter in this chapter re-
ferred to as the ‘‘Secretary’’) is authorized during fiscal
years 1996 through 2000 to purchase a variety of nutri-
tious and useful commodities and distribute such commod-
ities to the States for distribution in accordance with this
chapter.
(b) In addition to the commodities described in sub-
section (a), the Secretary may expend funds made avail-
able to carry out section 32 of the Act of August 24, 1935
(7 U.S.C. 612c), which are not expended or needed to
carry out such sections, to purchase, process, and distrib-
ute commodities of the types customarily purchased under
such section to the States for distribution in accordance
with this chapter.
(c) In addition to the commodities described in sub-
sections (a) and (b), agricultural commodities and the
products thereof made available under clause (2) of the
second sentence of section 32 of the Act of August 24,
915
1935 (7 U.S.C. 612c), may be made available by the Sec-
retary to the States for distribution in accordance with
this chapter.
(d) In addition to the commodities described in sub-
sections (a), (b), and (c), commodities acquired by the
Commodity Credit Corporation that the Secretary deter-
mines, in the discretion of the Secretary, are in excess of
quantities needed to—
(1) carry out other domestic donation pro-
grams;
(2) meet other domestic obligations;
(3) meet international market development and
food aid commitments; and
(4) carry out the farm price and income sta-
bilization purposes of the Agricultural Adjustment
Act of 1938, the Agricultural Act of 1949, and the
Commodity Credit Corporation Charter Act;
shall be made available by the Secretary, without charge
or credit for such commodities, to the States for distribu-
tion in accordance with this chapter.
(e) During each fiscal year, the types, varieties, and
amounts of commodities to be purchased under this chap-
ter shall be determined by the Secretary. In purchasing
such commodities, except those commodities purchased
pursuant to section 14520, the Secretary shall, to the ex-
916
tent practicable and appropriate, make purchases based
on—
(1) agricultural market conditions;
(2) the preferences and needs of States and dis-
tributing agencies; and
(3) the preferences of the recipients.
SEC. 
14513. 
STATE, 
LOCAL 
AND 
PRIVATE
SUPPLEMENTATION OF COMMODITIES.
(a) The Secretary shall establish procedures under
which State and local agencies, recipient agencies, or any
other entity or person may supplement the commodities
distributed under this chapter for use by recipient agen-
cies with nutritious and wholesome commodities that such
entities or persons donate for distribution, in all or part
of the State, in addition to the commodities otherwise
made available under this chapter.
(b) States and eligible recipient agencies may use—
(1) the funds appropriated for administrative
cost under section 14519(b);
(2) equipment, structures, vehicles, and all
other facilities involved in the storage, handling, or
distribution of commodities made available under
this chapter; and
(3) the personnel, both paid or volunteer, in-
volved in such storage, handling, or distribution;
917
to store, handle or distribute commodities donated for use
under subsection (a).
(c) States and recipient agencies shall continue, to
the maximum extent practical, to use volunteer workers,
and commodities and other foodstuffs donated by chari-
table and other organizations, in the distribution of com-
modities under this chapter.
SEC. 14514. STATE PLAN.
(a) A State seeking to receive commodities under this
chapter shall submit a plan of operation and administra-
tion every four years to the Secretary for approval. The
plan may be amended at any time, with the approval of
the Secretary.
(b) The State plan, at a minimum, shall—
(1) designate the State agency responsible for
distributing the commodities received under this
chapter;
(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this chapter in quantities requested to eligible recipi-
ent agencies in accordance with sections 14516 and
14520;
(3) set forth the standards of eligibility for re-
cipient agencies; and
918
(4) set forth the standards of eligibility for indi-
vidual or household recipients of commodities, which
at minimum shall require—
(A) individuals or households to be com-
prised of needy persons; and
(B) individual or household members to be
residing in the geographic location served by
the distributing agency at the time of applica-
tion for assistance.
(c) The Secretary shall encourage each State receiv-
ing commodities under this chapter to establish a State
advisory board consisting of representatives of all inter-
ested entities, both public and private, in the distribution
of commodities received under this chapter in the State.
(d) A State agency receiving commodities under this
chapter may—
(1)(A) enter into cooperative agreements with
State agencies of other States to jointly provide
commodities received under this chapter to eligible
recipient agencies that serve needy persons in a sin-
gle geographical area which includes such States; or
(B) transfer commodities received under this
chapter to any such eligible recipient agency in the
other State under such agreement; and
919
(2) advise the Secretary of an agreement en-
tered into under this subsection and the transfer of
commodities made pursuant to such agreement.
SEC. 14515. ALLOCATION OF COMMODITIES TO STATES.
(a) In each fiscal year, except for those commodities
purchased under section 14520, the Secretary shall allo-
cate the commodities distributed under this chapter as
follows:
(1) 60 percent of the such total value of com-
modities shall be allocated in a manner such that the
value of commodities allocated to each State bears
the same ratio to 60 percent of such total value as
the number of persons in households within the
State having incomes below the poverty line bears to
the total number of persons in households within all
States having incomes below such poverty line. Each
State shall receive the value of commodities allocated
under this paragraph.
(2) 40 percent of such total value of commod-
ities shall be allocated in a manner such that the
value of commodities allocated to each State bears
the same ratio to 40 percent of such total value as
the average monthly number of unemployed persons
within the State bears to the average monthly num-
ber of unemployed persons within all States during
920
the same fiscal year. Each State shall receive the
value of commodities allocated to the State under
this paragraph.
(b)(1) The Secretary shall notify each State of the
amount of commodities that such State is allotted to re-
ceive under subsection (a) or this subsection, if applicable.
Each State shall promptly notify the Secretary if such
State determines that it will not accept any or all of the
commodities made available under such allocation. On
such a notification by a State, the Secretary shall reallo-
cate and distribute such commodities as the Secretary
deems appropriate and equitable. The Secretary shall fur-
ther establish procedures to permit States to decline to
receive portions of such allocation during each fiscal year
as the State determines is appropriate and the Secretary
shall reallocate and distribute such allocation as the Sec-
retary deems appropriate and equitable.
(2) In the event of any drought, flood, hurricane, or
other natural disaster affecting substantial numbers of
persons in a State, county, or parish, the Secretary may
request that States unaffected by such a disaster consider
assisting affected States by allowing the Secretary to re-
allocate commodities from such unaffected State to States
containing areas adversely affected by the disaster.
921
(c) Purchases of commodities under this chapter shall
be made by the Secretary at such times and under such
conditions as the Secretary determines appropriate within
each fiscal year. All commodities so purchased for each
such fiscal year shall be delivered at reasonable intervals
to States based on the allocations and reallocations made
under subsections (a) and (b), and or carry out section
14520, not later than December 31 of the following fiscal
year.
SEC. 14516. PRIORITY SYSTEM FOR STATE DISTRIBUTION
OF COMMODITIES.
(a) In distributing the commodities allocated under
subsections (a) and (b) of section 14515, the State agency,
under procedures determined by the State agency, shall
offer, or otherwise make available, its full allocation of
commodities for distribution to emergency feeding organi-
zations.
(b) If the State agency determines that the State will
not exhaust the commodities allocated under subsections
(a) and (b) of section 14515 through distribution to orga-
nizations referred to in subsection (a), its remaining allo-
cation of commodities shall be distributed to charitable in-
stitutions described in section 14523(3) not receiving com-
modities under subsection (a).
922
(c) If the State agency determines that the State will
not exhaust the commodities allocated under subsections
(a) and (b) of section 14515 through distribution to orga-
nizations referred to in subsections (a) and (b), its remain-
ing allocation of commodities shall be distributed to any
eligible recipient agency not receiving commodities under
subsections (a) and (b).
SEC. 14517. INITIAL PROCESSING COSTS.
The Secretary may use funds of the Commodity
Credit Corporation to pay the costs of initial processing
and packaging of commodities to be distributed under this
chapter into forms and in quantities suitable, as deter-
mined by the Secretary, for use by the individual house-
holds or eligible recipient agencies, as applicable. The Sec-
retary may pay such costs in the form of Corporation-
owned commodities equal in value to such costs. The Sec-
retary shall ensure that any such payments in kind will
not displace commercial sales of such commodities.
SEC. 14518. ASSURANCES; ANTICIPATED USE.
(a) The Secretary shall take such precautions as the
Secretary deems necessary to ensure that commodities
made available under this chapter will not displace com-
mercial sales of such commodities or the products thereof.
The Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Commit-
923
tee on Agriculture, Nutrition, and Forestry of the Senate
by December 31, 1997, and not less than every two years
thereafter, a report as to whether and to what extent such
displacements or substitutions are occurring.
(b) The Secretary shall determine that commodities
provided under this chapter shall be purchased and dis-
tributed only in quantities that can be consumed without
waste. No eligible recipient agency may receive commod-
ities under this chapter in excess of anticipated use, based
on inventory records and controls, or in excess of its ability
to accept and store such commodities.
SEC. 14519. AUTHORIZATION OF APPROPRIATIONS.
(a) PURCHASE OF COMMODITIES.—To carry out this
chapter there are authorized to be appropriated
$260,000,000 for each of the fiscal years 1996 through
2000 to purchase, process, and distribute commodities to
the States in accordance with this chapter.
(b) ADMINISTRATIVE FUNDS.—
(1) There are authorized to be appropriated
$40,000,000 for each of the fiscal years 1996
through 2000 for the Secretary to make available to
the States for State and local payments for costs as-
sociated with the distribution of commodities by eli-
gible recipient agencies under this chapter, excluding
costs associated with the distribution of those com-
924
modities distributed under section 14520. Funds ap-
propriated under this paragraph for any fiscal year
shall be allocated to the States on an advance basis
dividing such funds among the States in the same
proportions as the commodities distributed under
this chapter for such fiscal year are allocated among
the States. If a State agency is unable to use all of
the funds so allocated to it, the Secretary shall re-
allocate such unused funds among the other States
in a manner the Secretary deems appropriate and
equitable.
(2)(A) A State shall make available in each fis-
cal year to eligible recipient agencies in the State
not less than 40 percent of the funds received by the
State under paragraph (1) for such fiscal year, as
necessary to pay for, or provide advance payments
to cover, the allowable expenses of eligible recipient
agencies for distributing commodities to needy per-
sons, but only to the extent such expenses are actu-
ally so incurred by such recipient agencies.
(B) As used in this paragraph, the term ‘‘allow-
able expenses’’ includes—
(i) costs of transporting, storing, handling,
repackaging, processing, and distributing com-
925
modities incurred after such commodities are
received by eligible recipient agencies;
(ii) costs associated with determinations of
eligibility, verification, and documentation;
(iii) costs of providing information to per-
sons receiving commodities under this chapter
concerning the appropriate storage and prepa-
ration of such commodities; and
(iv) costs of recordkeeping, auditing, and
other administrative procedures required for
participation in the program under this chapter.
(C) If a State makes a payment, using State
funds, to cover allowable expenses of eligible recipi-
ent agencies, the amount of such payment shall be
counted toward the amount a State must make
available for allowable expenses of recipient agencies
under this paragraph.
(3) States to which funds are allocated for a
fiscal year under this subsection shall submit finan-
cial reports to the Secretary, on a regular basis, as
to the use of such funds. No such funds may be
used by States or eligible recipient agencies for costs
other than those involved in covering the expenses
related to the distribution of commodities by eligible
recipient agencies.
926
(4)(A) Except as provided in subparagraph (B),
to be eligible to receive funds under this subsection,
a State shall provide in cash or in kind (according
to procedures approved by the Secretary for certify-
ing these in-kind contributions) from non-Federal
sources a contribution equal to the difference be-
tween—
(i) the amount of such funds so received;
and
(ii) any part of the amount allocated to the
State and paid by the State—
(I) to eligible recipient agencies; or
(II) for the allowable expenses of such
recipient agencies; for use in carrying out
this chapter.
(B) Funds allocated to a State under this sec-
tion may, upon State request, be allocated before
States satisfy the matching requirement specified in
subparagraph (A), based on the estimated contribu-
tion required. The Secretary shall periodically rec-
oncile estimated and actual contributions and adjust
allocations to the State to correct for overpayments
and underpayments.
927
(C) Any funds distributed for administrative
costs under section 14520(b) shall not be covered by
this paragraph.
(5) States may not charge for commodities
made available to eligible recipient agencies, and
may not pass on to such recipient agencies the cost
of any matching requirements, under this chapter.
(c) The value of the commodities made available
under subsections (c) and (d) of section 14512, and the
funds of the Commodity Credit Corporation used to pay
the costs of initial processing, packaging (including forms
suitable for home use), and delivering commodities to the
States shall not be charged against appropriations author-
ized by this section.
SEC. 14520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
(a) From the funds appropriated under section
14519(a), $94,500,000 shall be used for each fiscal year
to purchase and distribute commodities to supplemental
feeding programs serving woman, infants, and children or
elderly individuals (hereinafter in this section referred to
as the ‘‘commodity supplemental food program’’), or serv-
ing both groups wherever located.
(b) Not more than 20 percent of the funds made
available under subsection (a) shall be made available to
the States for State and local payments of administrative
928
costs associated with the distribution of commodities by
eligible recipient agencies under this section. Administra-
tive costs for the purposes of the commodity supplemental
food program shall include, but not be limited to, expenses
for information and referral, operation, monitoring, nutri-
tion education, start-up costs, and general administration,
including staff, warehouse and transportation personnel,
insurance, and administration of the State or local office.
(c)(1) During each fiscal year the commodity supple-
mental food program is in operation, the types, varieties,
and amounts of commodities to be purchased under this
section shall be determined by the Secretary, but, if the
Secretary proposes to make any significant changes in the
types, varieties, or amounts from those that were available
or were planned at the beginning of the fiscal year the
Secretary shall report such changes before implementation
to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
(2) Notwithstanding any other provision of law, the
Commodity Credit Corporation shall, to the extent that
the Commodity Credit Corporation inventory levels per-
mit, provide not less than 9,000,000 pounds of cheese and
not less than 4,000,000 pounds of nonfat dry milk in each
of the fiscal years 1996 through 2000 to the Secretary.
929
The Secretary shall use such amounts of cheese and non-
fat dry milk to carry out the commodity supplemental food
program before the end of each fiscal year.
(d) The Secretary shall, in each fiscal year, approve
applications of additional sites for the program, including
sites that serve only elderly persons, in areas in which the
program currently does not operate, to the full extent that
applications can be approved within the appropriations
available for the program for the fiscal year and without
reducing actual participation levels (including participa-
tion of elderly persons under subsection (e)) in areas in
which the program is in effect.
(e) If a local agency that administers the commodity
supplemental food program determines that the amount
of funds made available to the agency to carry out this
section exceeds the amount of funds necessary to provide
assistance under such program to women, infants, and
children, the agency, with the approval of the Secretary,
may permit low-income elderly persons (as defined by the
Secretary) to participate in and be served by such pro-
gram.
(f)(1) If it is necessary for the Secretary to pay a
significantly higher than expected price for one or more
types of commodities purchased under this section, the
Secretary shall promptly determine whether the price is
930
likely to cause the number of persons that can be served
in the program in a fiscal year to decline.
(2) If the Secretary determines that such a decline
would occur, the Secretary shall promptly notify the State
agencies charged with operating the program of the de-
cline and shall ensure that a State agency notify all local
agencies operating the program in the State of the decline.
(g) Commodities distributed to States pursuant to
this section shall not be considered in determining the
commodity allocation to each State under section 14515
or priority of distribution under section 14516.
SEC. 14521. COMMODITIES NOT INCOME.
Notwithstanding any other provision of law, commod-
ities distributed under this chapter shall not be considered
income or resources for purposes of determining recipient
eligibility under any Federal, State, or local means-tested
program.
SEC. 
14522. 
PROHIBITION 
AGAINST 
CERTAIN 
STATE
CHARGES.
Whenever a commodity is made available without
charge or credit under this chapter by the Secretary for
distribution within the States to eligible recipient agencies,
the State may not charge recipient agencies any amount
that is in excess of the State’s direct costs of storing, and
transporting to recipient agencies the commodities minus
931
any amount the Secretary provides the State for the costs
of storing and transporting such commodities.
SEC. 14523. DEFINITIONS.
As used in this chapter:
(1) The term ‘‘average monthly number of un-
employed persons’’ means the average monthly num-
ber of unemployed persons within a State in the
most recent fiscal year for which such information is
available as determined by the Bureau of Labor Sta-
tistics of the Department of Labor.
(2) The term ‘‘elderly persons’’ means individ-
uals 60 years of age or older.
(3) The term ‘‘eligible recipient agency’’ means
a public or nonprofit organization that admin-
isters—
(A) an institution providing commodities to
supplemental feeding programs serving women,
infants, and children or serving elderly persons,
or serving both groups;
(B) an emergency feeding organization;
(C) a charitable institution (including a
hospital and a retirement home, but excluding
a penal institution) to the extent that such in-
stitution serves needy persons;
932
(D) a summer camp for children, or a
child nutrition program providing food service;
(E) a nutrition project operating under the
Older Americans Act of 1965, including such
project that operates a congregate nutrition site
and a project that provides home-delivered
meals; or
(F) a disaster relief program; and that has
been designated by the appropriate State agen-
cy, or by the Secretary, and approved by the
Secretary for participation in the program es-
tablished under this chapter.
(4) The term ‘‘emergency feeding organization’’
means a public or nonprofit organization that ad-
ministers activities and projects (including the activi-
ties and projects of a charitable institution, a food
bank, a food pantry, a hunger relief center, a soup
kitchen, or a similar public or private nonprofit eligi-
ble recipient agency) providing nutrition assistance
to relieve situations of emergency and distress
through the provision of food to needy persons, in-
cluding low-income and unemployed persons.
(5) The term ‘‘food bank’’ means a public and
charitable institution that maintains an established
operation involving the provision of food or edible
933
commodities, or the products thereof, to food pan-
tries, soup kitchens, hunger relief centers, or other
food or feeding centers that, as an integral part of
their normal activities, provide meals or food to feed
needy persons on a regular basis.
(6) The term ‘‘food pantry’’ means a public or
private nonprofit organization that distributes food
to low-income and unemployed households, including
food from sources other than the Department of Ag-
riculture, to relieve situations of emergency and dis-
tress.
(7) The term ‘‘needy persons’’ means—
(A) individuals who have low incomes or
who are unemployed, as determined by the
State (in no event shall the income of such indi-
vidual or household exceed 185 percent of the
poverty line);
(B) households certified as eligible to par-
ticipate in the food stamp program under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.); or
(C) individuals or households participating
in any other Federal, or Federally assisted,
means-tested program.
934
(8) The term ‘‘poverty line’’ has the same
meaning given such term in section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)).
(9) The term ‘‘soup kitchen’’ means a public
and charitable institution that, as integral part of its
normal activities, maintains an established feeding
operation to provide food to needy homeless persons
on a regular basis.
SEC. 14524. REGULATIONS.
(a) The Secretary shall issue regulations within 120
days to implement this chapter.
(b) In administering this chapter, the Secretary shall
minimize, to the maximum extent practicable, the regu-
latory, recordkeeping, and paperwork requirements im-
posed on eligible recipient agencies.
(c) The Secretary shall as early as feasible but not
later than the beginning of each fiscal year, publish in the
Federal Register a nonbinding estimate of the types and
quantities of commodities that the Secretary anticipates
are likely to be made available under the commodity dis-
tribution program under this chapter during the fiscal
year.
(d) The regulations issued by the Secretary under
this section shall include provisions that set standards
935
with respect to liability for commodity losses for the com-
modities distributed under this chapter in situations in
which there is no evidence of negligence or fraud, and con-
ditions for payment to cover such losses. Such provisions
shall take into consideration the special needs and cir-
cumstances of eligible recipient agencies.
SEC. 14525. FINALITY OF DETERMINATIONS.
Determinations made by the Secretary under this
chapter and the facts constituting the basis for any dona-
tion of commodities under this chapter, or the amount
thereof, when officially determined in conformity with the
applicable regulations prescribed by the Secretary, shall
be final and conclusive and shall not be reviewable by any
other officer or agency of the Government.
SEC. 14526. SALE OF COMMODITIES PROHIBITED.
Except as otherwise provided in section 14517, none
of the commodities distributed under this chapter shall be
sold or otherwise disposed of in commercial channels in
any form.
SEC. 14527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.
(a) The Secretary, or a designee of the Secretary,
shall have the authority to—
(1) determine the amount of, settle, and adjust
any claim arising under this chapter; and
936
(2) waive such a claim if the Secretary deter-
mines that to do so will serve the purposes of this
chapter.
(b) Nothing contained in this section shall be con-
strued to diminish the authority of the Attorney General
of the United States under section 516 of title 28, United
States Code, to conduct litigation on behalf of the United
States.
SEC. 14528. REPEALERS; AMENDMENTS.
(a) The Emergency Food Assistance Act of 1983 (7
U.S.C. 612c note) is repealed.
(b) AMENDMENTS.—
(1) The Hunger Prevention Act of 1988 (7
U.S.C. 612c note) is amended—
(A) by striking section 110;
(B) by striking subtitle C of title II; and
(C) by striking section 502.
(2) The Commodity Distribution Reform Act
and WIC Amendments of 1987 (7 U.S.C. 612c note)
is amended by striking section 4.
(3) The Charitable Assistance and Food Bank
Act of 1987 (7 U.S.C. 612c note) is amended by
striking section 3.
(4) The Food Security Act of 1985 (7 U.S.C.
612c note) is amended—
937
(A) by striking section 1571; and
(B) in section 1562(d), by striking ‘‘sec-
tion 4 of the Agricultural and Consumer Pro-
tection Act of 1973’’ and inserting ‘‘section 110
of the Commodity Distribution Act of 1995’’.
(5) The Agricultural and Consumer Protection
Act of 1973 (7 U.S.C. 612c note) is amended—
(A) in section 4(a), by striking ‘‘institu-
tions (including hospitals and facilities caring
for needy infants and children), supplemental
feeding programs serving women, infants and
children or elderly persons, or both, wherever
located, disaster areas, summer camps for chil-
dren’’ and inserting ‘‘disaster areas’’;
(B) in subsection 4(c), by striking ‘‘the
Emergency Food Assistance Act of 1983’’ and
inserting ‘‘the Commodity Distribution Act of
1995’’; and
(C) by striking section 5.
(6) The Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 612c note) is amended
by striking section 1773(f).
938
CHAPTER 2—CONSOLIDATING FOOD
ASSISTANCE PROGRAMS
SEC. 14541. FOOD STAMP BLOCK GRANT PROGRAM.
(a) AUTHORITY TO MAKE BLOCK GRANTS.—The
Secretary of Agriculture shall make grants in accordance
with this section to States to provide food assistance to
individuals who are economically disadvantaged and to in-
dividuals who are members of economically disadvantaged
families.
(b) DISTRIBUTION OF FUNDS.—The funds appro-
priated to carry out this section for any fiscal year shall
be allotted among the States as follows:
(1) Of the aggregate amount to be distributed
under this section, .21 percent shall be reserved for
grants to Guam, the Virgin Islands of the United
States, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Republic of the Mar-
shall Islands, the Federated States of Micronesia,
and Palau.
(2) Of the aggregate amount to be distributed
under this section, .24 percent shall be reserved for
grants to tribal organizations that have govern-
mental jurisdiction over geographically defined areas
and shall be allocated equitably by the Secretary
among such organizations.
939
(3) The remainder of such aggregate amount
shall be allocated among the remaining States. The
amount allocated to each of the remaining States
shall bear the same proportion to such remainder as
the number of resident individuals in such State who
are economically disadvantaged separately or as
members of economically disadvantaged families
bears to the aggregate number of resident individ-
uals in all such remaining States who are economi-
cally disadvantaged separately or as members of eco-
nomically disadvantaged families.
(c) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi-
ble to receive a grant in the amount allotted to a State
for a fiscal year, such State shall submit to the Secretary
an application in such form, and containing such informa-
tion and assurances, as the Secretary may require by rule,
including—
(1) an assurance that such grant will be ex-
pended by the State to provide food assistance to
resident individuals in such State who are economi-
cally disadvantaged separately or as members of eco-
nomically disadvantaged families,
(2) an assurance that not more than 5 percent
of such grant will be expended by the State for ad-
940
ministrative costs incurred to provide assistance
under this section, and
(3) an assurance that an individual who has not
worked 32 hours in a calendar month shall be ineli-
gible to received food assistance under this chapter
during the succeeding month unless such individual
is—
(A) disabled,
(B) has attained 60 years of age, or
(C) residing with one or more of such indi-
vidual’s children who have not attained 18
years of age, but is not residing with any other
parent of any of such children, unless that
other parent is disabled.
(d) ANNUAL REPORT.—Each State that receives
funds appropriated to carry out this section for a fiscal
year shall submit the Secretary, not later than May 1 fol-
lowing such fiscal year, a report—
(1) specifying the number of families who re-
ceived food assistance under this section provided by
such State in such fiscal year;
(2) specifying the number of individuals who re-
ceived food assistance under this section provided by
such State in such fiscal year;
941
(3) the amount of such funds expended in such
fiscal year by such State to provide food assistance;
and
(4) the administrative costs incurred in such
fiscal year by such State to provide food assistance.
(e) LIMITATION.—No State or political subdivision of
a State that receives funds provided under this subtitle
shall replace any employed worker with an individual who
is participating in a work program for the purpose of com-
plying with subsection (c)(3). Such an individual may be
placed in any position offered by the State or political sub-
division that—
(A) is a new position,
(B) is a position that became available in the
normal course of conducting the business of the
State or political subdivision,
(C) involves performing work that would other-
wise be performed on an overtime basis by a worker
who is not an individual participating in such pro-
gram, or
(D) that is a position which became available by
shifting a current employee to an alternate position.
(f) 
AUTHORIZATION
OF
APPROPRIATIONS.—(1)
There are authorized to be appropriated to carry out this
942
section $26,245,000,000 for each of the fiscal years 1996,
1997, 1998, 1999, and 2000.
(2) For the purpose of affording adequate notice of
funding available under this section, an appropriation to
carry out this section is authorized to be included in an
appropriation Act for the fiscal year preceding the fiscal
year for which such appropriation is available for obliga-
tion.
SEC. 14542. AVAILABILITY OF FEDERAL COUPON SYSTEM
TO STATES.
(a) ISSUANCE, PURCHASE, AND USE OF COUPONS.—
The Secretary shall issue, and make available for purchase
by States, coupons for the retail purchase of food from
retail food stores that are approved in accordance with
subsection (b). Coupons issued, purchased, and used as
provided in this section shall be redeemable at face value
by the Secretary through the facilities of the Treasury of
the United States. The purchase price of each coupon is-
sued under this subsection shall be the face value of such
coupon.
(b) APPROVAL
OF
RETAIL
FOOD
STORES
AND
WHOLESALE FOOD CONCERNS.—(1) Regulations issued
pursuant to this section shall provide for the submission
of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to
943
accept and redeem coupons under this section. In deter-
mining the qualifications of applicants, there shall be con-
sidered among such other factors as may be appropriate,
the following:
(A) The nature and extent of the food business
conducted by the applicant.
(B) The volume of coupon business which may
reasonably be expected to be conducted by the appli-
cant food store or wholesale food concern.
(C) The business integrity and reputation of
the applicant.
Approval of an applicant shall be evidenced by the issu-
ance to such applicant of a nontransferable certificate of
approval. The Secretary is authorized to issue regulations
providing for a periodic reauthorization of retail food
stores and wholesale food concerns.
(2) A buyer or transferee (other than a bona fide
buyer or transferee) of a retail food store or wholesale food
concern that has been disqualified under subsection (d)
may not accept or redeem coupons until the Secretary re-
ceives full payment of any penalty imposed on such store
or concern.
(3) Regulations issued pursuant to this section shall
require an applicant retail food store or wholesale food
concern to submit information which will permit a deter-
944
mination to be made as to whether such applicant quali-
fies, or continues to qualify, for approval under this sec-
tion or the regulations issued pursuant to this section.
Regulations issued pursuant to this section shall provide
for safeguards which limit the use or disclosure of infor-
mation obtained under the authority granted by this sub-
section to purposes directly connected with administration
and enforcement of this section or the regulations issued
pursuant to this section, except that such information may
be disclosed to and used by States that purchase such
coupons.
(4) Any retail food store or wholesale food concern
which has failed upon application to receive approval to
participate in the program under this sectionmay obtain
a hearing on such refusal as provided in subsection (f).
(c) REDEMPTION OF COUPONS.—Regulations issued
under this section shall provide for the redemption of cou-
pons accepted by retail food stores through approved
wholesale food concerns or through financial institutions
which are insured by the Federal Deposit Insurance Cor-
poration, or which are insured under the Federal Credit
Union Act (12 U.S.C. 1751 et seq.) and have retail food
stores or wholesale food concerns in their field of member-
ship, with the cooperation of the Treasury Department,
except that retail food stores defined in section
945
14533(5)(D) shall be authorized to redeem their members’
food coupons prior to receipt by the members of the food
so purchased, and publicly operated community mental
health centers or private nonprofit organizations or insti-
tutions which serve meals to narcotics addicts or alcoholics
in drug addiction or alcoholic treatment and rehabilitation
programs, public and private nonprofit shelters that pre-
pare and serve meals for battered women and children,
public or private nonprofit group living arrangements that
serve meals to disabled or blind residents, and public or
private nonprofit establishments, or public or private non-
profit shelters that feed individuals who do not reside in
permanent dwellings and individuals who have no fixed
mailing addresses shall not be authorized to redeem cou-
pons through financial institutions which are insured by
the Federal Deposit Insurance Corporation or the Federal
Credit Union Act. No financial institution may impose on
or collect from a retail food store a fee or other charge
for the redemption of coupons that are submitted to the
financial institution in a manner consistent with the re-
quirements, other than any requirements relating to can-
cellation of coupons, for the presentation of coupons by
financial institutions to the Federal Reserve banks.
(d) CIVIL MONEY PENALTIES AND DISQUALIFICA-
TION OF RETAIL FOOD STORES AND WHOLESALE FOOD
946
CONCERNS.—(1) Any approved retail food store or whole-
sale food concern may be disqualified for a specified period
of time from further participation in the coupon program
under this section, or subjected to a civil money penalty
of up to $10,000 for each violation if the Secretary deter-
mines that its disqualification would cause hardship to in-
dividuals who receive coupons, on a finding, made as speci-
fied in the regulations, that such store or concern has vio-
lated this section or the regulations issued pursuant to this
section.
(2) Disqualification under paragraph (1) shall be—
(A) for a reasonable period of time, of no less
than 6 months nor more than 5 years, upon the first
occasion of disqualification,
(B) for a reasonable period of time, of no less
than 12 months nor more than 10 years, upon the
second occasion of disqualification, and
(C) permanent upon—
(i) the third occasion of disqualification,
(ii) the first occasion or any subsequent oc-
casion of a disqualification based on the pur-
chase of coupons or trafficking in coupons by a
retail food store or wholesale food concern, ex-
cept that the Secretary shall have the discretion
to impose a civil money penalty of up to
947
$20,000 for each violation (except that the
amount of civil money penalties imposed for
violations occurring during a single investiga-
tion may not exceed $40,000) in lieu of dis-
qualification under this subparagraph, for such
purchase of coupons or trafficking in coupons
that constitutes a violation of this section or the
regulations issued pursuant to this section, if
the Secretary determines that there is substan-
tial evidence (including evidence that neither
the ownership nor management of the store or
food concern was aware of, approved, benefited
from, or was involved in the conduct or ap-
proval of the violation) that such store or food
concern had an effective policy and program in
effect to prevent violations of this section and
such regulations, or
(iii) a finding of the sale of firearms, am-
munition, explosives, or controlled substance (as
defined in section 802 of title 21, United States
Code) for coupons, except that the Secretary
shall have the discretion to impose a civil money
penalty of up to $20,000 for each violation (ex-
cept that the amount of civil money penalties
imposed for violations occurring during a single
948
investigation may not exceed $40,000) in lieu of
disqualification under this subparagraph if the
Secretary determines that there is substantial
evidence (including evidence that neither the
ownership nor management of the store or food
concern was aware of, approved, benefited from,
or was involved in the conduct or approval of
the violation) that the store or food concern had
an effective policy and program in effect to pre-
vent violations of this section.
(3) The action of disqualification or the imposition
of a civil money penalty shall be subject to review as pro-
vided in subsection (f).
(4) As a condition of authorization to accept and re-
deem coupons issued under subsection (a), the Secretary
may require a retail food store or wholesale food concern
which has been disqualified or subjected to a civil penalty
pursuant to paragraph (1) to furnish a bond to cover the
value of coupons which such store or concern may in the
future accept and redeem in violation of this section. The
Secretary shall, by regulation, prescribe the amount,
terms, and conditions of such bond. If the Secretary finds
that such store or concern has accepted and redeemed cou-
pons in violation of this section after furnishing such bond,
such store or concern shall forfeit to the Secretary an
949
amount of such bond which is equal to the value of cou-
pons accepted and redeemed by such store or concern in
violation of this section. Such store or concern may obtain
a hearing on such forfeiture pursuant to subsection (f).
(5)(A) In the event any retail food store or wholesale
food concern that has been disqualified under paragraph
(1) is sold or the ownership thereof is otherwise trans-
ferred to a purchaser or transferee, the person or persons
who sell or otherwise transfer ownership of the retail food
store or wholesale food concern shall be subjected to a civil
money penalty in an amount established by the Secretary
through regulations to reflect that portion of the disquali-
fication period that has not yet expired. If the retail food
store or wholesale food concern has been disqualified per-
manently, the civil money penalty shall be double the pen-
alty for a 10-year disqualification period, as calculated
under regulations issued by the Secretary. The disquali-
fication period imposed under paragraph (2) shall con-
tinue in effect as to the person or persons who sell or oth-
erwise transfer ownership of the retail food store or whole-
sale food concern notwithstanding the imposition of a civil
money penalty under this paragraph.
(B) At any time after a civil money penalty imposed
under subparagraph (A) has become final under sub-
section (f)(1), the Secretary may request the Attorney
950
General of the United States to institute a civil action
against the person or persons subject to the penalty in
a district court of the United States for any district in
which such person or persons are found, reside, or trans-
act business to collect the penalty and such court shall
have jurisdiction to hear and decide such action. In such
action, the validity and amount of such penalty shall not
be subject to review.
(C) The Secretary may impose a fine against any re-
tail food store or wholesale food concern that accepts cou-
pons that are not accompanied by the corresponding book
cover, other than the denomination of coupons used for
making change as specified in regulations issued under
this section. The amount of any such fine shall be estab-
lished by the Secretary and may be assessed and collected
separately in accordance with regulations issued under
this section or in combination with any fiscal claim estab-
lished by the Secretary. The Attorney General of the Unit-
ed States may institute judicial action in any court of com-
petent jurisdiction against the store or concern to collect
the fine.
(6) The Secretary may impose a fine against any per-
son not approved by the Secretary to accept and redeem
coupons who violates this section or a regulation issued
under this section, including violations concerning the ac-
951
ceptance of coupons. The amount of any such fine shall
be established by the Secretary and may be assessed and
collected in accordance with regulations issued under this
section separately or in combination with any fiscal claim
established by the Secretary. The Attorney General of the
United States may institute judicial action in any court
of competent jurisdiction against the person to collect the
fine.
(e) COLLECTION AND DISPOSITION OF CLAIMS.—The
Secretary shall have the power to determine the amount
of and settle and adjust any claim and to compromise or
deny all or part of any such claim or claims arising under
this section or the regulations issued pursuant to this sec-
tion, including, but not limited to, claims arising from
fraudulent and nonfraudulent overissuances to recipients,
including the power to waive claims if the Secretary deter-
mines that to do so would serve the purposes of this sec-
tion. Such powers with respect to claims against recipients
may be delegated by the Secretary to State agencies.
(f) ADMINISTRATIVE AND JUDICIAL REVIEW.—(1)
Whenever—
(A) an application of a retail food store or
wholesale food concern for approval to accept and
redeem coupons issued under subsection (a) is de-
nied pursuant to this section,
952
(B) a retail food store or wholesale food con-
cern is disqualified or subjected to a civil money
penalty under subsection (d),
(C) all or part of any claim of a retail food
store or wholesale food concern is denied under sub-
section (e), or
(D) a claim against a State is stated pursuant
to subsection (e),
notice of such administrative action shall be issued to the
retail food store, wholesale food concern, or State involved.
Such notice shall be delivered by certified mail or personal
service. If such store, concern, or State is aggrieved by
such action, it may, in accordance with regulations pro-
mulgated under this section, within 10 days of the date
of delivery of such notice, file a written request for an
opportunity to submit information in support of its posi-
tion to such person or persons as the regulations may des-
ignate. If such a request is not made or if such store, con-
cern, or State fails to submit information in support of
its position after filing a request, the administrative deter-
mination shall be final. If such request is made by such
store, concern, or State such information as may be sub-
mitted by such store, concern, or State as well as such
other information as may be available, shall be reviewed
by the person or persons designated by the Secretary, who
953
shall, subject to the right of judicial review hereinafter
provided, make a determination which shall be final and
which shall take effect 30 days after the date of the deliv-
ery or service of such final notice of determination. If such
store, concern, or State feels aggrieved by such final deter-
mination, it may obtain judicial review thereof by filing
a complaint against the United States in the United
States court for the district in which it resides or is en-
gaged in business, or, in the case of a retail food store
or wholesale food concern, in any court of record of the
State having competent jurisdiction, within 30 days after
the date of delivery or service of the final notice of deter-
mination upon it, requesting the court to set aside such
determination. The copy of the summons and complaint
required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or
such person or persons as the Secretary may designate
to receive service of process. The suit in the United States
district court or State court shall be a trial de novo by
the court in which the court shall determine the validity
of the questioned administrative action in issue. If the
court determines that such administrative action is in-
valid, it shall enter such judgment or order as it deter-
mines is in accordance with the law and the evidence. Dur-
ing the pendency of such judicial review, or any appeal
954
therefrom, the administrative action under review shall be
and remain in full force and effect, unless on application
to the court on not less than ten days’ notice, and after
hearing thereon and a consideration by the court of the
applicant’s likelihood of prevailing on the merits and of
irreparable injury, the court temporarily stays such ad-
ministrative action pending disposition of such trial or ap-
peal.
(g) VIOLATIONS AND ENFORCEMENT.—(1) Subject
to paragraph (2), whoever knowingly uses, transfers, ac-
quires, alters, or possesses coupons in any manner con-
trary to this section or the regulations issued pursuant
to this section shall, if such coupons are of a value of
$5,000 or more, be guilty of a felony and shall be fined
not more than $250,000 or imprisoned for not more than
20 years, or both, and shall, if such coupons are of a value
of $100 or more, but less than $5,000, be guilty of a fel-
ony and shall, upon the first conviction thereof, be fined
not more than $10,000 or imprisoned for not more than
5 years, or both, and, upon the second and any subsequent
conviction thereof, shall be imprisoned for not less than
6 months nor more than 5 years and may also be fined
not more than $10,000 or, if such coupons are of a value
of less than $100, shall be guilty of a misdemeanor, and,
upon the first conviction thereof, shall be fined not more
955
than $1,000 or imprisoned for not more than one year,
or both, and upon the second and any subsequent convic-
tion thereof, shall be imprisoned for not more than one
year and may also be fined not more than $1,000.
(2) In the case of any individual convicted of an of-
fense under paragraph (1), the court may permit such in-
dividual to perform work approved by the court for the
purpose of providing restitution for losses incurred by the
United States and the State as a result of the offense for
which such individual was convicted. If the court permits
such individual to perform such work and such individual
agrees thereto, the court shall withhold the imposition of
the sentence on the condition that such individual perform
the assigned work. Upon the successful completion of the
assigned work the court may suspend such sentence.
(3) Whoever presents, or causes to be presented, cou-
pons for payment or redemption of the value of $100 or
more, knowing the same to have been received, trans-
ferred, or used in any manner in violation of this section
or the regulations issued under this section, shall be guilty
of a felony and, upon the first conviction thereof, shall
be fined not more than $20,000 or imprisoned for not
more than 5 years, or both, and, upon the second and any
subsequent conviction thereof, shall be imprisoned for not
less than one year nor more than 5 years and may also
956
be fined not more than $20,000, or, if such coupons are
of a value of less than $100, shall be guilty of a mis-
demeanor and, upon the first conviction thereof, shall be
fined not more than $1,000 or imprisoned for not more
than one year, or both, and, upon the second and any sub-
sequent conviction thereof, shall be imprisoned for not
more than one year and may also be fined not more than
$1,000.
SEC. 14543. DEFINITIONS.
For purposes of this chapter—
(1) the term ‘‘coupon’’ means any coupon,
stamp, or type of certificate, but does not include
currency,
(2) the term ‘‘economically disadvantaged’’
means an individual or a family, as the case may be,
whose income does not exceed the most recent lower
living standard income level published by the De-
partment of Labor,
(3) the term ‘‘elderly or disabled individual’’
means an individual who—
(A) is 60 years of age or older,
(B)(i) receives supplemental security in-
come benefits under title XVI of the Social Se-
curity Act (42 U.S.C. 1381 et seq.), or Feder-
ally or State administered supplemental benefits
957
of the type described in section 212(a) of Public
Law 93–66 (42 U.S.C. 1382 note), or
(ii) receives Federally or State adminis-
tered supplemental assistance of the type de-
scribed in section 1616(a) of the Social Security
Act (42 U.S.C. 1382e(a)), interim assistance
pending receipt of supplemental security in-
come, 
disability-related 
medical 
assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), or disability-based State
general assistance benefits, if the Secretary de-
termines that such benefits are conditioned on
meeting disability or blindness criteria at least
as stringent as those used under title XVI of
the Social Security Act,
(C) receives disability or blindness pay-
ments under title I, II, X, XIV, or XVI of the
Social Security Act (42 U.S.C. 301 et seq.) or
receives disability retirement benefits from a
governmental agency because of a disability
considered permanent under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)),
(D) is a veteran who—
(i) has a service-connected or non-
service-connected disability which is rated
958
as total under title 38, United States Code,
or
(ii) is considered in need of regular
aid and attendance or permanently house-
bound under such title,
(E) is a surviving spouse of a veteran
and—
(i) is considered in need of regular aid
and attendance or permanently house-
bound under title 38, United States Code,
or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
title 38, United States Code, and has a
disability considered permanent under sec-
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)),
(F) is a child of a veteran and—
(i) is considered permanently incapa-
ble of self-support under section 414 of
title 38, United States Code, or
(ii) is entitled to compensation for a
service-connected death or pension benefits
for a non-service-connected death under
959
title 38, United States Code, and has a
disability considered permanent under sec-
tion 221(i) of the Social Security Act (42
U.S.C. 421(i)), or
(G) is an individual receiving an annuity
under section 2(a)(1)(iv) or 2(a)(1)(v) of the
Railroad Retirement Act of 1974 (45 U.S.C.
231a(a)(1)(iv) or 231a(a)(1)(v)), if the individ-
ual’s service as an employee under the Railroad
Retirement Act of 1974, after December 31,
1936, had been included in the term ‘‘employ-
ment’’ as defined in the Social Security Act (42
U.S.C. 301 et seq.), and if an application for
disability benefits had been filed,
(4) the term ‘‘food’’ means, for purposes of sec-
tion 14542(a) only—
(A) any food or food product for home con-
sumption except alcoholic beverages, tobacco,
and hot foods or hot food products ready for
immediate consumption other than those au-
thorized pursuant to subparagraphs (C), (D),
(E), (G), (H), and (I),
(B) seeds and plants for use in gardens to
produce food for the personal consumption of
the eligible individuals,
960
(C) in the case of those persons who are
60 years of age or over or who receive supple-
mental security income benefits or disability or
blindness payments under title I, II, X, XIV, or
XVI of the Social Security Act (42 U.S.C. 301
et seq.), and their spouses, meals prepared by
and served in senior citizens’ centers, apart-
ment buildings occupied primarily by such per-
sons, public or private nonprofit establishments
(eating or otherwise) that feed such persons,
private establishments that contract with the
appropriate agency of the State to offer meals
for such persons at concessional prices, and
meals prepared for and served to residents of
federally subsidized housing for the elderly,
(D) in the case of persons 60 years of age
or over and persons who are physically or men-
tally handicapped or otherwise so disabled that
they are unable adequately to prepare all of
their meals, meals prepared for and delivered to
them (and their spouses) at their home by a
public or private nonprofit organization or by a
private establishment that contracts with the
appropriate State agency to perform such serv-
ices at concessional prices,
961
(E) in the case of narcotics addicts or alco-
holics, and their children, served by drug addic-
tion or alcoholic treatment and rehabilitation
programs, meals prepared and served under
such programs,
(F) in the case of eligible individuals living
in Alaska, equipment for procuring food by
hunting and fishing, such as nets, hooks, rods,
harpoons, and knives (but not equipment for
purposes of transportation, clothing, or shelter,
and not firearms, ammunition, and explosives)
if the Secretary determines that such individ-
uals are located in an area of the State where
it is extremely difficult to reach stores selling
food and that such individuals depend to a sub-
stantial extent upon hunting and fishing for
subsistence,
(G) in the case of disabled or blind recipi-
ents of benefits under title I, II, X, XIV, or
XVI of the Social Security Act (42 U.S.C. 301
et seq.), or are individuals described in subpara-
graphs (B) through (G) of paragraph (4), who
are residents in a public or private nonprofit
group living arrangement that serves no more
than 16 residents and is certified by the appro-
962
priate State agency or agencies under regula-
tions issued under section 1616(e) of the Social
Security Act (42 U.S.C. 1382e(e)) or under
standards determined by the Secretary to be
comparable to standards implemented by appro-
priate State agencies under such section, meals
prepared and served under such arrangement,
(H) in the case of women and children
temporarily residing in public or private non-
profit shelters for battered women and children,
meals prepared and served, by such shelters,
and
(I) in the case of individuals that do not
reside in permanent dwellings and individuals
that have no fixed mailing addresses, meals pre-
pared for and served by a public or private non-
profit establishment (approved by an appro-
priate State or local agency) that feeds such in-
dividuals and by private establishments that
contract with the appropriate agency of the
State to offer meals for such individuals at
concessional prices,
(5) the term ‘‘retail food store’’ means—
(A) an establishment or recognized depart-
ment thereof or house-to-house trade route,
963
over 50 percent of whose food sales volume, as
determined by visual inspection, sales records,
purchase records, or other inventory or account-
ing recordkeeping methods that are customary
or reasonable in the retail food industry, con-
sists of staple food items for home preparation
and consumption, such as meat, poultry, fish,
bread, cereals, vegetables, fruits, dairy prod-
ucts, and the like, but not including accessory
food items, such as coffee, tea, cocoa, carbon-
ated and uncarbonated drinks, candy, con-
diments, and spices,
(B) an establishment, organization, pro-
gram, or group living arrangement referred to
in subparagraph (C), (D), (E), (G), (H), or (I)
of paragraph (5),
(C) a store purveying the hunting and fish-
ing equipment described in paragraph (5)(F),
or
(D) any private nonprofit cooperative food
purchasing venture, including those in which
the members pay for food purchased prior to
the receipt of such food,
(6) the term ‘‘school’’ means an elementary, in-
termediate, or secondary school,
964
(7) the term ‘‘Secretary’’ means the Secretary
of Agriculture,
(8) the term ‘‘State’’ means any of the several
States, the District of Columbia, the Commonwealth
of Puerto Rico, Guam, the Virgin Islands of the
United States, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micro-
nesia, Palau, or a tribal organization that exercises
governmental jurisdiction over a geographically de-
fined area, and
(9) the term ‘‘tribal organization’’ has the
meaning given it in section 4(l) of the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 450b(l)).
SEC. 14544. REPEALER.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
is repealed.
CHAPTER 3—EFFECTIVE DATES AND
MISCELLANEOUS PROVISIONS
SEC. 14591. EFFECTIVE DATE; APPLICATION OF REPEALER.
(a) EFFECTIVE DATES.—
(1) GENERAL EFFECTIVE DATE OF SUBTITLE
A.—Subtitle A shall take effect on October 1, 1995.
965
(2) GENERAL EFFECTIVE DATE OF SUBTITLE
A/B.—Except as provided in subsection (b), subtitle
B and the repeal made by section 14544 shall take
effect on the date of the enactment of this title.
(3) SPECIAL
EFFECTIVE
DATE.—The repeal
made by section 14544 shall not take effect until the
first day of the first fiscal year for which funds are
appropriated more than 180 days in advance of such
fiscal year to carry out section 14541.
(b) APPLICATION OF REPEALER.—The repeal made
by section 14544 shall not apply with respect to—
(1) powers, duties, functions, rights, claims,
penalties, or obligations applicable to financial as-
sistance provided under the Food Stamp Act of
1977 before the effective date of such repeal, and
(2) administrative actions and proceedings com-
menced before such date, or authorized before such
date to be commenced, under such Act.
SEC. 14592. SENSE OF THE CONGRESS.
It is the sense of the Congress that States that oper-
ate electronic benefit systems to transfer benefits provided
under the Food Stamp Act of 1977 should operate elec-
tronic benefit systems that are compatible with each other.
966
SEC. 14593. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of
the House of Representatives that reductions in outlays
resulting from subtitle B shall not be taken into account
for purposes of section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
Subtitle F—Supplemental Security
Income
SEC. 14601. DENIAL OF SUPPLEMENTAL SECURITY INCOME
BENEFITS BY REASON OF DISABILITY TO
DRUG ADDICTS AND ALCOHOLICS.
(a) IN GENERAL.—Section 1614(a)(3) of the Social
Security Act (42 U.S.C. 1382c(a)(3)) is amended by add-
ing at the end the following:
‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1611(e) of such Act (42 U.S.C.
1382(e)) is amended by striking paragraph (3).
(2) Section 1631(a)(2)(A)(ii) of such Act (42
U.S.C. 1383(a)(2)(A)(ii)) is amended—
(A) by striking ‘‘(I)’’; and
1106
‘‘(II) under any other system or
fund established by the United States
which provides for the payment of
pensions, retirement or retired pay,
annuities, dependents’ or survivors’
benefits, or similar amounts payable
on account of personal services per-
formed by the individual or any other
individual;
‘‘(III) as compensation for death
under any Federal program;
‘‘(IV) under any Federal pro-
gram established to provide ‘black
lung’ benefits; or
‘‘(V) by the Secretary of Veter-
ans Affairs as pension, or as com-
pensation for a service-connected dis-
ability or death (except any compensa-
tion paid by the Secretary to a mem-
ber of the Armed Forces who is in re-
ceipt of retired or retainer pay if the
member has waived a portion of the
retired pay of the member in order to
receive the compensation); and