†
624
HR 2419 EAS
‘‘(II) 
DETERMINATION
AP-
PEALED.—If the determination of the
Secretary under clause (ii) is appealed,
upon completion of administrative and
judicial review under clause (iv), and
a finding of liability on the part of the
State, the appealing State agency
shall, as soon as practicable, remit to
the Secretary a dollar amount subject
to the finding of the administrative
and judicial review.
‘‘(vi) ALTERNATIVE METHOD OF COL-
LECTION.—
‘‘(I) IN
GENERAL.—If a State
agency fails to make a payment under
clause (v) within a reasonable period
of time, as determined by the Sec-
retary, the Secretary may reduce any
amount due to the State agency under
any other provision of this Act by the
amount due.
‘‘(II) ACCRUAL
OF
INTEREST.—
During the period of time determined
by the Secretary to be reasonable under
†
625
HR 2419 EAS
subclause (I), interest in the amount
owed shall not accrue.
‘‘(vii) 
LIMITATION.—Any 
liability
amount 
established 
under 
section
16(c)(1)(C) shall be reduced by the amount
of the claim established under this subpara-
graph.’’.
(b) CONFORMING AMENDMENT.—Section 14(a)(6) of
the Food and Nutrition Act of 2007 (7 U.S.C. 2023(a)(6))
is amended by striking ‘‘pursuant to section’’ and inserting
‘‘pursuant to section 13(b)(5) and’’.
SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC
IDENTIFICATION TECHNOLOGY.
Section 16 of the Food and Nutrition Act of 2007 (7
U.S.C. 2025) is amended by adding at the end the following:
‘‘(l) PERFORMANCE
STANDARDS
FOR
BIOMETRIC
IDENTIFICATION TECHNOLOGY.—
‘‘(1) DEFINITION OF BIOMETRIC IDENTIFICATION
TECHNOLOGY.—In this subsection, the term ‘biometric
identification technology’ means a technology that
provides an automated method to identify an indi-
vidual based on physical characteristics, such as fin-
gerprints or retinal scans.
‘‘(2) ADMINISTRATIVE
FUNDS.—The Secretary
may not pay a State agency any amount for admin-
†
626
HR 2419 EAS
istrative costs for the development, purchase, adminis-
tration, or other costs associated with the use of bio-
metric identification technology unless the State agen-
cy has, under such terms and conditions as the Sec-
retary considers appropriate—
‘‘(A) provided to the Secretary an analysis
of the cost-effectiveness of the use of the proposed
biometric identification technology to detect
fraud in carrying out the food and nutrition
program;
‘‘(B) demonstrated to the Secretary that the
analysis is—
‘‘(i) statistically valid; and
‘‘(ii) based on appropriate and valid
assumptions for the households served by the
food and nutrition program;
‘‘(C) demonstrated to the Secretary that—
‘‘(i) the proposed biometric identifica-
tion technology is cost-effective in reducing
fraud; and
‘‘(ii) there are no other technologies or
fraud-detection methods that are at least as
cost-effective in carrying out the purposes of
the proposed biometric identification sys-
tem; and
†
627
HR 2419 EAS
‘‘(D) demonstrated to the Secretary that no
information produced by or used in the biomet-
ric information technology system will be made
available or used for any purpose other than a
purpose allowed under section 11(e)(8).
‘‘(3) STANDARDS.—The Secretary shall establish
uniform standards for the evaluation of cost-effective-
ness analyses submitted to the Secretary under para-
graph (2).’’.
SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF
RETAIL 
FOOD 
STORES 
AND 
WHOLESALE
FOOD CONCERNS.
Section 12 of the Food and Nutrition Act of 2007 (7
U.S.C. 2021) is amended—
(1) by striking the section designation and head-
ing and all that follows through the end of subsection
(a) and inserting the following:
‘‘SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RE-
TAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.
‘‘(a) DISQUALIFICATION.—
‘‘(1) IN GENERAL.—An approved retail food store
or wholesale food concern that violates a provision of
this Act or a regulation under this Act may be—
†
628
HR 2419 EAS
‘‘(A) disqualified for a specified period of
time from further participation in the food and
nutrition program; or
‘‘(B) assessed a civil penalty of up to
$100,000 for each violation.
‘‘(2) REGULATIONS.—Regulations promulgated
under this Act shall provide criteria for the finding
of a violation of, the suspension or disqualification of,
and the assessment of a civil penalty against, a retail
food store or wholesale food concern on the basis of
evidence that may include facts established through
on-site investigations, inconsistent redemption data,
or evidence obtained through a transaction report
under an electronic benefit transfer system.’’;
(2) in subsection (b)—
(A) by striking ‘‘(b) Disqualification’’ and
inserting the following:
‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to sub-
section (c), a disqualification’’;
(B) in paragraph (1), by striking ‘‘of no
less than six months nor more than five years’’
and inserting ‘‘not to exceed 5 years’’;
(C) in paragraph (2), by striking ‘‘of no
less than twelve months nor more than ten
years’’ and inserting ‘‘not to exceed 10 years’’;
†
629
HR 2419 EAS
(D) in paragraph (3)(B)—
(i) by inserting ‘‘or a finding of the
unauthorized redemption, use, transfer, ac-
quisition, alteration, or possession of EBT
cards’’ after ‘‘concern’’ the first place it ap-
pears; and
(ii) by striking ‘‘civil money penalties’’
and inserting ‘‘civil penalties’’; and
(E) by striking ‘‘civil money penalty’’ each
place it appears and inserting ‘‘civil penalty’’;
(3) in subsection (c)—
(A) by striking ‘‘(c) The action’’ and insert-
ing the following:
‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICA-
TION AND PENALTY DETERMINATIONS.—
‘‘(1) CIVIL PENALTY.—In addition to a disquali-
fication under this section, the Secretary may assess
a civil penalty in an amount not to exceed $100,000
for each violation.
‘‘(2) REVIEW.—The action’’; and
(B) in paragraph (2) (as designated by sub-
paragraph (A)), by striking ‘‘civil money pen-
alty’’ and inserting ‘‘civil penalty’’;
(4) in subsection (d)—
†
630
HR 2419 EAS
(A) by striking ‘‘(d)’’ and all that follows
through ‘‘. The Secretary shall’’ and inserting
the following:
‘‘(d) CONDITIONS OF AUTHORIZATION.—
‘‘(1) IN GENERAL.—As a condition of authoriza-
tion to accept and redeem benefits, the Secretary may
require a retail food store or wholesale food concern
that, pursuant to subsection (a), has been disqualified
for more than 180 days, or has been subjected to a
civil penalty in lieu of a disqualification period of
more than 180 days, to furnish a collateral bond or
irrevocable letter of credit for a period of not more
than 5 years to cover the value of benefits that the
store or concern may in the future accept and redeem
in violation of this Act.
‘‘(2) COLLATERAL.—The Secretary also may re-
quire a retail food store or wholesale food concern that
has been sanctioned for a violation and incurs a sub-
sequent sanction regardless of the length of the dis-
qualification period to submit a collateral bond or ir-
revocable letter of credit.
‘‘(3) 
BOND
REQUIREMENTS.—The 
Secretary
shall’’;
(B) by striking ‘‘If the Secretary finds’’ and
inserting the following
†
631
HR 2419 EAS
‘‘(4) FORFEITURE.—If the Secretary finds’’; and
(C) by striking ‘‘Such store or concern’’ and
inserting the following:
‘‘(5) HEARING.—A store or concern described in
paragraph (4)’’;
(5) in subsection (e), by striking ‘‘civil money
penalty’’ each place it appears and inserting ‘‘civil
penalty’’; and
(6) by adding at the end the following:
‘‘(h) FLAGRANT VIOLATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Inspector General of the Department of
Agriculture, shall establish procedures under which
the processing of program benefit redemptions for a
retail food store or wholesale food concern may be im-
mediately suspended pending administrative action to
disqualify the retail food store or wholesale food con-
cern.
‘‘(2) REQUIREMENTS.—Under the procedures de-
scribed in paragraph (1), if the Secretary, in con-
sultation with the Inspector General, determines that
a retail food store or wholesale food concern is en-
gaged in flagrant violations of this Act (including
regulations promulgated under this Act), unsettled
†
632
HR 2419 EAS
program benefits that have been redeemed by the re-
tail food store or wholesale food concern—
‘‘(A) may be suspended; and
‘‘(B)(i) if the program disqualification is
upheld, may be subject to forfeiture pursuant to
subsection (g); or
‘‘(ii) if the program disqualification is not
upheld, shall be released to the retail food store
or wholesale food concern.
‘‘(3) NO
LIABILITY
FOR
INTEREST.—The Sec-
retary shall not be liable for the value of any interest
on funds suspended under this subsection.’’.
SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS.
(a) IN GENERAL.—Section 16(h)(1)(A) of the Food
and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) is
amended in subparagraph (A), by striking ‘‘to remain
available until expended’’ and inserting ‘‘to remain avail-
able for 2 fiscal years’’.
(b) RESCISSION
OF FUNDS.—Notwithstanding any
other provision of law, funds provided under section
16(h)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C.
2025(h)(1)(A)) for any fiscal year before the fiscal year be-
ginning October 1, 2007, shall be rescinded on the date of
†
633
HR 2419 EAS
enactment of this Act, unless obligated by a State agency
before that date.
SEC. 4305. ELIGIBILITY DISQUALIFICATION.
Section 6 of the Food and Nutrition Assistance Act of
2007 (7 U.S.C. 2015) is amended by adding at the end the
following:
‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DE-
STROYING FOOD AND COLLECTING DEPOSITS.—Any person
who has been found by a State or Federal court or adminis-
trative agency or in a hearing under subsection (b) to have
intentionally obtained cash by purchasing products with
food and nutrition benefits that have containers that require
return deposits, discarding the product, and returning the
container for the deposit amount shall be ineligible for bene-
fits under this Act for such period of time as the Secretary
shall prescribe by regulation.
‘‘(q) DISQUALIFICATION FOR SALE OF FOOD PUR-
CHASED WITH FOOD AND NUTRITION BENEFITS.—Subject
to any requirements established by the Secretary, any per-
son who has been found by a State or Federal court or ad-
ministrative agency or in a hearing under subsection (b)
to have intentionally sold any food that was purchased
using food and nutrition benefits shall be ineligible for bene-
fits under this Act for such period of time as the Secretary
shall prescribe by regulation.’’.
†
634
HR 2419 EAS
PART V—MISCELLANEOUS
SEC. 4401. DEFINITION OF STAPLE FOODS.
Subsection (r) of section 3 of the Food and Nutrition
Act of 2007 (7 U.S.C. 2012) (as redesignated by section
4202(b)(1)(M)) is amended—
(1) by striking ‘‘(r)(1) Except’’ and inserting the
following:
‘‘(r) STAPLE FOODS.—
‘‘(1) IN GENERAL.—Except’’; and
(2) by striking paragraph (2) and inserting the
following:
‘‘(2) EXCEPTIONS.—The term ‘staple foods’ does
not include accessory food items, such as coffee, tea,
cocoa, carbonate and uncarbonated drinks, candy,
condiments, and spices, or dietary supplements.
‘‘(3) DEPTH
OF
STOCK.—The Secretary may
issue regulations to define depth of stock to ensure
that stocks of staple foods are available on a contin-
uous basis.’’.
SEC. 4402. ACCESSORY FOOD ITEMS.
Section 9(a) of the Food and Nutrition Act of 2007
(7 U.S.C. 2018(a)) is amended by adding at the end the
following:
‘‘(4) ACCESSORY FOOD ITEMS.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this paragraph, the