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insufficient for making payments in the amounts
required pursuant to sections 2241(a)(2) and
2243(c)(3) for the year, the Secretary shall make
such additional transfers for the year between the
funds and accounts involved as the Secretary de-
termines to be necessary for making the pay-
ments.
‘‘(3) 
APPLICABILITY
OF
CERTAIN
AMEND-
MENTS.—Amendments made to subsection (d)(5)(B)
and subsection (h) that are effective on or after Octo-
ber 1, 1996, apply only for purposes of estimates
under paragraphs (1) and (2) and for purposes of de-
termining the amount of payments under 2211. Such
amendments do not require any adjustment to
amounts paid under subsection (d)(5)(B) or (h) with
respect to fiscal year 1996 or any prior fiscal year.
‘‘(4) RELATIONSHIP
TO
CERTAIN
DEMONSTRA-
TION PROJECTS.—In the case of a State for which a
demonstration project under section 1814(b)(3) is in
effect, the Secretary, in making determinations of the
rates of increase under such section, shall include all
amounts transferred under this subsection. Such
amounts shall be so included to the same extent and
in the same manner as amounts determined under
subsections (d)(5)(B) and (h) were included in such
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determination under the provisions of this title in ef-
fect on September 30, 1996.’’.
Title XII—Other Provisions
Subtitle F—National Defense
Stockpile
SEC. 12601. DISPOSAL OF CERTAIN MATERIALS IN NA-
TIONAL DEFENSE STOCKPILE FOR DEFICIT
REDUCTION.
(a) DISPOSALS REQUIRED.—(1) During fiscal year
1996, the President shall dispose of all cobalt contained in
the National Defense Stockpile that, as of the date of the
enactment of this Act, is authorized for disposal under any
law (other than this Act).
(2) In addition to the disposal of cobalt under para-
graph (1), the President shall dispose of additional quan-
tities of cobalt and quantities of other materials contained
in the National Defense Stockpile and specified in the table
in subsection (b) so as to result in receipts to the United
States in amounts equal to—
(A) $21,000,000 during the fiscal year ending
September 30, 1996;
(B) $338,000,000 during the five-fiscal year pe-
riod ending on September 30, 2000; and
(C) $649,000,000 during the seven-fiscal year pe-
riod ending on September 30, 2002.
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(b) LIMITATION ON DISPOSAL QUANTITY.—The total
quantities of materials authorized for disposal by the Presi-
dent under subsection (a)(2) may not exceed the amounts
set forth in the following table:
Authorized Stockpile Disposals
Material for disposal
Quantity
Aluminum ..............................................................................
62,881 short tons
Cobalt .....................................................................................
30,000,000 pounds contained
Columbium Ferro ..................................................................
930,911 pounds contained
Germanium Metal .................................................................
40,000 kilograms
Indium ...................................................................................
35,000 troy ounces
Palladium ..............................................................................
15,000 troy ounces
Platinum ................................................................................
10,000 troy ounces
Rubber, Natural ....................................................................
125,138 long tons
Tantalum, Carbide Powder ..................................................
6,000 pounds contained
Tantalum, Minerals ..............................................................
750,000 pounds contained
Tantalum, Oxide ...................................................................
40,000 pounds contained
(c) DEPOSIT OF RECEIPTS.—Notwithstanding section
9 of the Strategic and Critical Materials Stock Piling Act
(50 U.S.C. 98h), funds received as a result of the disposal
of materials under subsection (a)(2) shall be deposited into
the general fund of the Treasury for the purpose of deficit
reduction.
(d) RELATIONSHIP TO OTHER DISPOSAL AUTHOR-
ITY.—The disposal authority provided in subsection (a)(2)
is new disposal authority and is in addition to, and shall
not affect, any other disposal authority provided by law re-
garding the materials specified in such subsection.
(e) TERMINATION
OF DISPOSAL AUTHORITY.—The
President may not use the disposal authority provided in
subsection (a)(2) after the date on which the total amount
of receipts specified in subparagraph (C) of such subsection
is achieved.
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(f) DEFINITION.—The term ‘‘National Defense Stock-
pile’’ means the National Defense Stockpile provided for in
section 4 of the Strategic and Critical Materials Stock Pil-
ing Act (50 U.S.C. 98c).
Subtitle 
G——Child 
Protection
Block Grant Program And Fos-
ter Care and Adoption Assist-
ance
SEC. 12701. ESTABLISHMENT OF PROGRAM.
Title IV of the Social Security Act (42 U.S.C. 601 et
seq.) is amended by striking subpart 2 of part B and insert-
ing the following:
‘‘Subpart 2—Block Grants to States for the Protection
of Children and Matching Payments for Foster
Care and Adoption Assistance
‘‘SEC. 430. ELIGIBLE STATES.
‘‘(a) IN GENERAL.—As used in this subpart, the term
‘eligible State’ means a State that has submitted to the Sec-
retary, not later than October 1, 1996, and every 3 years
thereafter, a plan which has been signed by the chief execu-
tive officer of the State and that includes the following:
‘‘(1) OUTLINE
OF
CHILD
PROTECTION
PRO-
GRAM.—A written document that outlines the activi-
ties the State intends to conduct to achieve the child
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protection goals of the program funded under this
subpart, including the procedures to be used for—
‘‘(A) receiving and assessing reports of child
abuse or neglect;
‘‘(B) investigating such reports;
‘‘(C) with respect to families in which abuse
or neglect has been confirmed, providing services
or referral for services for families and children
where the State makes a determination that the
child may safely remain with the family;
‘‘(D) protecting children by removing them
from dangerous settings and ensuring their
placement in a safe environment;
‘‘(E) providing training for individuals
mandated to report suspected cases of child abuse
or neglect;
‘‘(F) protecting children in foster care;
‘‘(G) promoting timely adoptions;
‘‘(H) protecting the rights of families, using
adult relatives as the preferred placement for
children separated from their parents where such
relatives meet the relevant State child protection
standards;
‘‘(I) providing services to individuals, fami-
lies, or communities, either directly or through
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referral, that are aimed at preventing the occur-
rence of child abuse and neglect; and
‘‘(J) establishing and responding to citizen
review panels under section 434.
‘‘(2) CERTIFICATION OF STATE LAW REQUIRING
THE REPORTING OF CHILD ABUSE AND NEGLECT.—A
certification that the State has in effect laws that re-
quire public officials and other professionals to report,
in good faith, actual or suspected instances of child
abuse or neglect.
‘‘(3) 
CERTIFICATION
OF
PROCEDURES
FOR
SCREENING, SAFETY ASSESSMENT, AND PROMPT IN-
VESTIGATION.—A certification that the State has in
effect procedures for receiving and responding to re-
ports of child abuse or neglect, including the reports
described in paragraph (2), and for the immediate
screening, safety assessment, and prompt investiga-
tion of such reports.
‘‘(4) CERTIFICATION OF STATE PROCEDURES FOR
REMOVAL
AND
PLACEMENT
OF
ABUSED
OR
NE-
GLECTED CHILDREN.—A certification that the State
has in effect procedures for the removal from families
and placement of abused or neglected children and of
any other child in the same household who may also
be in danger of abuse or neglect.
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‘‘(5) CERTIFICATION OF PROVISIONS FOR IMMU-
NITY FROM PROSECUTION.—A certification that the
State has in effect laws requiring immunity from
prosecution under State and local laws and regula-
tions for individuals making good faith reports of sus-
pected or known instances of child abuse or neglect.
‘‘(6) CERTIFICATION OF PROVISIONS AND PROCE-
DURES FOR EXPUNGEMENT OF CERTAIN RECORDS.—
A certification that the State has in effect laws and
procedures requiring the facilitation of the prompt
expungement of any records that are accessible to the
general public or are used for purposes of employment
or other background checks in cases determined to be
unsubstantiated or false.
‘‘(7) CERTIFICATION OF PROVISIONS AND PROCE-
DURES RELATING TO APPEALS.—A certification that
not later then 2 years after the date of the enactment
of this subpart, the State shall have laws and proce-
dures in effect affording individuals an opportunity
to appeal an official finding of abuse or neglect.
‘‘(8) CERTIFICATION OF STATE PROCEDURES FOR
DEVELOPING
AND
REVIEWING
WRITTEN
PLANS
FOR
PERMANENT PLACEMENT OF REMOVED CHILDREN.—A
certification that the State has in effect procedures for
ensuring that a written plan is prepared for children
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who have been removed from their families. Such plan
shall specify the goals for achieving a permanent
placement for the child in a timely fashion, for ensur-
ing that the written plan is reviewed every 6 months
(until such placement is achieved), and for ensuring
that information about such children is collected regu-
larly and recorded in case records, and include a de-
scription of such procedures.
‘‘(9) CERTIFICATION
OF
STATE
PROGRAM
TO
PROVIDE INDEPENDENT LIVING SERVICES.—A certifi-
cation that the State has in effect a program to pro-
vide independent living services, for assistance in
making the transition to self-sufficient adulthood, to
individuals in the child protection program of the
State who are 16, but who are not 20 (or, at the op-
tion of the State, 22), years of age, and who do not
have a family to which to be returned.
‘‘(10) CERTIFICATION OF STATE PROCEDURES TO
RESPOND TO REPORTING OF MEDICAL NEGLECT OF
DISABLED INFANTS.—
‘‘(A) IN GENERAL.—A certification that the
State has in place for the purpose of responding
to the reporting of medical neglect of infants (in-
cluding instances of withholding of medically in-
dicated treatment from disabled infants with
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life-threatening conditions), procedures or pro-
grams, or both (within the State child protective
services system), to provide for—
‘‘(i) coordination and consultation
with individuals designated by and within
appropriate health-care facilities;
‘‘(ii) prompt notification by individ-
uals designated by and within appropriate
health-care facilities of cases of suspected
medical neglect (including instances of
withholding of medically indicated treat-
ment from disabled infants with life-threat-
ening conditions); and
‘‘(iii) authority, under State law, for
the State child protective service to pursue
any legal remedies, including the authority
to initiate legal proceedings in a court of
competent jurisdiction, as may be necessary
to prevent the withholding of medically in-
dicated treatment from disabled infants
with life-threatening conditions.
‘‘(B) WITHHOLDING
OF
MEDICALLY
INDI-
CATED TREATMENT.—As used in subparagraph
(A), the term ‘withholding of medically indicated
treatment’ means the failure to respond to the
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infant’s life-threatening conditions by providing
treatment (including appropriate nutrition, hy-
dration, and medication) which, in the treating
physician’s or physicians’ reasonable medical
judgment, will be most likely to be effective in
ameliorating or correcting all such conditions,
except that such term does not include the failure
to provide treatment (other than appropriate nu-
trition, hydration, or medication) to an infant
when, in the treating physician’s or physicians’
reasonable medical judgment—
‘‘(i) the infant is chronically and irre-
versibly comatose;
‘‘(ii) the provision of such treatment
would—
‘‘(I) merely prolong dying;
‘‘(II) not be effective in ameliorat-
ing or correcting all of the infant’s life-
threatening conditions; or
‘‘(III) otherwise be futile in terms
of the survival of the infant; or
‘‘(iii) the provision of such treatment
would be virtually futile in terms of the sur-
vival of the infant and the treatment itself
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under such circumstances would be inhu-
mane.
‘‘(11) IDENTIFICATION
OF
CHILD
PROTECTION
GOALS.—The quantitative goals of the State child
protection program.
‘‘(12) CERTIFICATION
OF
CHILD
PROTECTION
STANDARDS.—With respect to fiscal years beginning
on or after April 1, 1996, a certification that the
State—
‘‘(A) has completed an inventory of all chil-
dren who, before the inventory, had been in foster
care under the responsibility of the State for 6
months or more, which determined—
‘‘(i) the appropriateness of, and neces-
sity for, the foster care placement;
‘‘(ii) whether the child could or should
be returned to the parents of the child or
should be freed for adoption or other perma-
nent placement; and
‘‘(iii) the services necessary to facili-
tate the return of the child or the placement
of the child for adoption or legal guardian-
ship;
‘‘(B) is operating, to the satisfaction of the
Secretary—
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‘‘(i) a statewide information system
from which can be readily determined the
status, demographic characteristics, loca-
tion, and goals for the placement of every
child who is (or, within the immediately
preceding 12 months, has been) in foster
care;
‘‘(ii) a case review system for each
child receiving foster care under the super-
vision of the State;
‘‘(iii) a service program designed to
help children—
‘‘(I) where appropriate, return to
families from which they have been re-
moved; or
‘‘(II) be placed for adoption, with
a legal guardian, or if adoption or
legal guardianship is determined not
to be appropriate for a child, in some
other planned, permanent living ar-
rangement; and
‘‘(iv) a preplacement preventive serv-
ices program designed to help children at
risk for foster care placement remain with
their families; and
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‘‘(C)(i) has reviewed (or not later than Oc-
tober 1, 1997, will review) State policies and ad-
ministrative and judicial procedures in effect for
children abandoned at or shortly after birth (in-
cluding policies and procedures providing for
legal representation of such children); and
‘‘(ii) is implementing (or not later than Oc-
tober 1, 1997, will implement) such policies and
procedures as the State determines, on the basis
of the review described in clause (i), to be nec-
essary to enable permanent decisions to be made
expeditiously with respect to the placement of
such children.
‘‘(13) CERTIFICATION OF REASONABLE EFFORTS
BEFORE
PLACEMENT
OF
CHILDREN
IN
FOSTER
CARE.—A certification that the State in each case
will—
‘‘(A) make reasonable efforts prior to the
placement of a child in foster care, to prevent or
eliminate the need for removal of the child from
the child’s home, and to make it possible for the
child to return home; and
‘‘(B) with respect to families in which abuse
or neglect has been confirmed, provide services or
referral for services for families and children
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where the State makes a determination that the
child may safely remain with the family.
‘‘(14) CERTIFICATION
OF
COOPERATIVE
EF-
FORTS.—A certification by the State, where appro-
priate, that all steps will be taken, including coopera-
tive efforts with the State agencies administering the
plans approved under parts A and D, to secure an as-
signment to the State of any rights to support on be-
half of each child receiving foster care maintenance
payments under this subpart.
‘‘(b) DETERMINATIONS.—The Secretary shall deter-
mine whether a plan submitted pursuant to subsection (a)
contains the material required by subsection (a), other than
the material described in paragraph (10) of such subsection.
The Secretary may not require a State to include in such
a plan any material not described in subsection (a).
‘‘SEC. 431. GRANTS TO STATES FOR CHILD PROTECTION
AND PAYMENTS FOR FOSTER CARE AND
ADOPTION ASSISTANCE..
‘‘(a) FUNDING
OF BLOCK GRANTS.—Each eligible
State shall be entitled to receive from the Secretary for each
fiscal year specified in subsection (c)(1) a grant in an
amount equal to the State share of the child protection
amount for the fiscal year.
‘‘(b) MAINTENANCE PAYMENTS.—
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‘‘(1) IN GENERAL.—In addition to the grants de-
scribed in subsection (a), each eligible State shall be
entitled to receive from the Secretary for each quarter
of each fiscal year specified in subsection (c)(1) an
amount equal to the sum of—
‘‘(A) an amount equal to the Federal medi-
cal assistance percentage (as defined in section
1905(b) of this Act as in effect on the day before
the date of enactment of this subpart) of the total
amount expended during such quarter as foster
care maintenance payments under the child pro-
tection program under this subpart for children
in foster family homes or child-care institutions;
plus
‘‘(B) an amount equal to the Federal medi-
cal assistance percentage (as defined in section
1905(b) of this Act (as so in effect)) of the total
amount expended during such quarter as adop-
tion assistance payments under the child protec-
tion program under this subpart pursuant to
adoption assistance agreements.
‘‘(2) ESTIMATES BY THE SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary shall,
prior to the beginning of each quarter, estimate
the amount to which a State will be entitled to
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receive under paragraph (1) for such quarter,
such estimates to be based on—
‘‘(i) a report filed by the State contain-
ing its estimate of the total sum to be ex-
pended in such quarter in accordance with
paragraph (1), and stating the amount ap-
propriated or made available by the State
and its political subdivisions for such ex-
penditures in such quarter, and if such
amount is less than the State’s propor-
tionate share of the total sum of such esti-
mated expenditures, the source or sources
from which the difference is expected to be
derived;
‘‘(ii) records showing the number of
children in the State receiving assistance
under this subpart; and
‘‘(iii) such other information as the
Secretary may find necessary.
‘‘(B) PAYMENTS.—The Secretary shall pay
to the States the amounts so estimated under
subparagraph (A), reduced or increased to the
extent of any overpayment or underpayment
which the Secretary determines was made under
this subsection to such State for any prior quar-
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ter and with respect to which adjustment has not
already been made under this paragraph.
‘‘(C) PRO RATA SHARE.— The pro rata
share to which the United States is equitably en-
titled, as determined by the Secretary, of the net
amount recovered during any quarter by the
State or any political subdivision thereof with
respect to foster care and adoption assistance
furnished under this subpart shall be considered
an overpayment to be adjusted under this para-
graph.
‘‘(3) 
ALLOWANCE
OR
DISALLOWANCE
OF
CLAIM.—
‘‘(A) IN GENERAL.—Within 60 days after
receipt of a State claim for expenditures pursu-
ant to paragraph (2)(A), the Secretary shall
allow, disallow, or defer such claim.
‘‘(B) NOTICE.—Within 15 days after a deci-
sion to defer a State claim, the Secretary shall
notify the State of the reasons for the deferral
and of the additional information necessary to
determine the allowability of the claim.
‘‘(C) DECISION.—Within 90 days after re-
ceiving such necessary information (in readily
reviewable form), the Secretary shall—
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‘‘(i) disallow the claim, if able to com-
plete the review and determine that the
claim is not allowable; or
‘‘(ii) in any other case, allow the
claim, subject to disallowance (as nec-
essary)—
‘‘(I) upon completion of the re-
view, if it is determined that the claim
is not allowable; or
‘‘(II) on the basis of findings of
an audit or financial management re-
view.
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) CHILD
PROTECTION
AMOUNT.—The term
‘child protection amount’ means—
‘‘(A) $1,936,000,000 for fiscal year 1996;
‘‘(B) $1,942,000,000 for fiscal year 1997;
‘‘(C) $2,063,000,000 for fiscal year 1998;
‘‘(D) $2,167,000,000 for fiscal year 1999;
‘‘(E) $2,297,000,000 for fiscal year 2000;
‘‘(F) $2,432,000,000 for fiscal year 2001;
and
‘‘(G) $2,593,000,000 for fiscal year 2002;
‘‘(2) STATE SHARE.—
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‘‘(A) IN GENERAL.—The term ‘State share’
means the qualified child protection expenses of
the State divided by the sum of the qualified
child protection expenses of all of the States.
‘‘(B) QUALIFIED
CHILD
PROTECTION
EX-
PENSES.—The term ‘qualified child protection
expenses’ means, with respect to a State the
greater of—
‘‘(i) the total amount of—
‘‘(I) 1⁄3 of the total obligations to
the State under the provisions of law
specified in clauses (i), (ii), and (iii)
of subparagraph (C) for fiscal years
1992, 1993, and 1994; and
‘‘(II) 1⁄3 of the total claims sub-
mitted by the State (without regard to
disputed claims) under the provision of
law specified in subparagraph (C)(iv)
for fiscal years 1992, 1993, and 1994;
or
‘‘(ii) the total amount of—
‘‘(I) the total obligations to the
State under the provisions of law spec-
ified in clauses (i), (ii), and (iii) of
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subparagraph (C) for fiscal year 1995;
and
‘‘(II) the total claims submitted
by the State (without regard to dis-
puted claims) under the provision of
law specified in subparagraph (C)(iv)
for fiscal year 1995.
‘‘(C) PROVISIONS OF LAW.—The provisions
of law specified in this subparagraph are the fol-
lowing (as in effect on the day before the date of
enactment of this subpart):
‘‘(i) Section 434 of this Act.
‘‘(ii) Section 474(a)(4) of this Act.
‘‘(iii) Section 474(a)(3) of this Act.
‘‘(d) USE OF GRANT.—
‘‘(1) IN GENERAL.—A State to which a grant is
made under this section may use the grant in any
manner that the State deems appropriate to accom-
plish the child protection goals of the State program
funded under this subpart.
‘‘(2) TIMING
OF
EXPENDITURES.—A State to
which a grant is made under this section for a fiscal
year shall expend the total amount of the grant not
later than the end of the immediately succeeding fis-
cal year.
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‘‘(3) RULE OF INTERPRETATION.—This subpart
shall not be interpreted to prohibit short- and long-
term foster care facilities operated for profit from re-
ceiving funds provided under this subpart.
‘‘(e) TIMING OF PAYMENTS.—The Secretary shall pay
each eligible State the amount of the grant payable to the
State under this section in quarterly installments.
‘‘(f) PENALTIES.—
‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS
SUBPART.—If an audit conducted pursuant to chap-
ter 75 of title 31, United States Code, finds that an
amount paid to a State under this section for a fiscal
year has been used in violation of this subpart, then
the Secretary shall reduce the amount of the grant
that would (in the absence of this paragraph) be pay-
able to the State under this section for the imme-
diately succeeding fiscal year by the amount so used,
plus 5 percent of the grant paid under this section to
the State for such fiscal year.
‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—
‘‘(A) IN GENERAL.—If an audit conducted
pursuant to chapter 75 of title 31, United States
Code, finds that the amount expended by a State
(other than from amounts provided by the Fed-
eral Government) during the fiscal years speci-
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fied in subparagraph (B), to carry out the State
program funded under this subpart is less than
the applicable percentage specified in such sub-
paragraph of the total amount expended by the
State (other than from amounts provided by the
Federal Government) during fiscal year 1995
under subpart 2 of part B and part E of this
title (as in effect on the day before the date of
the enactment of this subpart), then the Sec-
retary shall reduce the amount of the grant that
would (in the absence of this paragraph) be pay-
able to the State under this section for the imme-
diately succeeding fiscal year by the amount of
the difference, plus 5 percent of the grant paid
under this section to the State for such fiscal
year.
‘‘(B) SPECIFICATION OF FISCAL YEARS AND
APPLICABLE
PERCENTAGES.—The fiscal years
and applicable percentages specified in this sub-
paragraph are as follows:
‘‘(i) For fiscal years 1996 and 1997,
100 percent.
‘‘(ii) For fiscal years 1998 through
2002, 75 percent.
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‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN GENERAL.—The Secretary shall re-
duce by 3 percent the amount of the grant that
would (in the absence of this paragraph) be pay-
able to a State under this section for a fiscal
year if the Secretary determines that the State
has not submitted the report required by section
436(b) for the immediately preceding fiscal year,
within 6 months after the end of the immediately
preceding fiscal year.
‘‘(B) RESCISSION OF PENALTY.—The Sec-
retary shall rescind a penalty imposed on a
State under subparagraph (A) with respect to a
report for a fiscal year if the State submits the
report before the end of the immediately succeed-
ing fiscal year.
‘‘(4) FOR FAILURE TO COMPLY WITH SAMPLING
METHODS REQUIREMENTS.—The Secretary may re-
duce by not more than 1 percent the amount of the
grant that would (in the absence of this paragraph)
be payable to a State under this section for a succeed-
ing fiscal year if the Secretary determines that the
State has not complied with the Secretary’s sampling
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methods requirements under section 436(c)(2) during
the prior fiscal year.
‘‘(5) STATE FUNDS TO REPLACE REDUCTIONS IN
GRANT.—A State which has a penalty imposed
against it under this subsection for a fiscal year shall
expend additional State funds in an amount equal to
the amount of the penalty for the purpose of carrying
out the State program under this subpart during the
immediately succeeding fiscal year.
‘‘(6) REASONABLE CAUSE EXCEPTION.—The Sec-
retary may not impose a penalty on a State under
this subsection with respect to a requirement if the
Secretary determines that the State has reasonable
cause for failing to comply with the requirement.
‘‘(7) CORRECTIVE COMPLIANCE PLAN.—
‘‘(A) IN GENERAL.—
‘‘(i) NOTIFICATION
OF
VIOLATION.—
Notwithstanding any other provision of law,
the Federal Government shall, before assess-
ing a penalty against a State under this
subsection, notify the State of the violation
of law for which the penalty would be as-
sessed and allow the State the opportunity
to enter into a corrective compliance plan
in accordance with this subsection which
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outlines how the State will correct any such
violations and how the State will insure
continuing compliance with the require-
ments of this subpart.
‘‘(ii) 60-DAY
PERIOD
TO
PROPOSE
A
CORRECTIVE
COMPLIANCE
PLAN.—Any
State notified under clause (i) shall have 60
days in which to submit to the Federal Gov-
ernment a corrective compliance plan to
correct any violations described in clause
(i).
‘‘(iii) ACCEPTANCE
OF
PLAN.—The
Federal Government shall have 60 days to
accept or reject the State’s corrective com-
pliance plan and may consult with the
State during this period to modify the plan.
If the Federal Government does not accept
or reject the corrective compliance plan dur-
ing the period, the corrective compliance
plan shall be deemed to be accepted.
‘‘(B) FAILURE TO CORRECT.—If a corrective
compliance plan is accepted by the Federal Gov-
ernment, no penalty shall be imposed with re-
spect to a violation described in this subsection
if the State corrects the violation pursuant to the
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plan. If a State has not corrected the violation
in a timely manner under the plan, some or all
of the penalty shall be assessed.
‘‘(8) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(A) IN GENERAL.—In imposing the pen-
alties described in this subsection, the Secretary
shall not reduce any quarterly payment to a
State by more than 25 percent.
‘‘(B) CARRYFORWARD
OF
UNRECOVERED
PENALTIES.—To the extent that subparagraph
(A) prevents the Secretary from recovering dur-
ing a fiscal year the full amount of all penalties
imposed on a State under this subsection for a
prior fiscal year, the Secretary shall apply any
remaining amount of such penalties to the grant
payable to the State under section 431(a) for the
immediately succeeding fiscal year.
‘‘(g) TREATMENT OF TERRITORIES.—
‘‘(1) IN GENERAL.—A territory, as defined in
section 1108(b)(1), shall carry out a child protection
program in accordance with the provisions of this
subpart.
‘‘(2) PAYMENTS.—Each territory, as so defined,
shall be entitled to receive from the Secretary for any
fiscal year an amount, in accordance with section
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1108, which shall be used for the purpose of carrying
out a child protection program in accordance with the
provisions of this subpart.
‘‘(h) LIMITATION ON FEDERAL AUTHORITY.—Except
as expressly provided in this Act, the Secretary may not
regulate the conduct of States under this subpart or enforce
any provision of this subpart.
‘‘SEC. 432. REQUIREMENTS FOR FOSTER CARE MAINTE-
NANCE PAYMENTS.
‘‘(a) IN GENERAL.—Each State operating a program
under this subpart shall make foster care maintenance pay-
ments under section 431(b) with respect to a child who
would meet the requirements of section 406(a) or of section
407 (as in effect on the day before the date of the enactment
of this subpart) but for the removal of the child from the
home of a relative (specified in section 406(a)(as so in ef-
fect)), if—
‘‘(1) the removal from the home occurred pursu-
ant to a voluntary placement agreement entered into
by the child’s parent or legal guardian, or was the re-
sult of a judicial determination to the effect that con-
tinuation therein would be contrary to the welfare of
such child and that reasonable efforts of the type de-
scribed in section 430(a)(13) have been made;
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‘‘(2) such child’s placement and care are the re-
sponsibility of—
‘‘(A) the State; or
‘‘(B) any other public agency with whom
the State has made an agreement for the admin-
istration of the State program under this sub-
part which is still in effect;
‘‘(3) such child has been placed in a foster fam-
ily home or child-care institution as a result of the
voluntary placement agreement or judicial determina-
tion referred to in paragraph (1); and
‘‘(4) such child—
‘‘(A) would have been eligible to receive aid
under the eligibility standards under the State
plan approved under section 402 (as in effect on
the day before the date of the enactment of this
subpart and adjusted for inflation, in accordance
with regulations issued by the Secretary) in or
for the month in which such agreement was en-
tered into or court proceedings leading to the re-
moval of such child from the home were initi-
ated; or
‘‘(B) would have received such aid in or for
such month if application had been made there-
fore, or the child had been living with a relative
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specified in section 406(a) (as so in effect) with-
in 6 months prior to the month in which such
agreement was entered into or such proceedings
were initiated, and would have received such aid
in or for such month if in such month such child
had been living with such a relative and appli-
cation therefore had been made.
‘‘(b) LIMITATION ON FOSTER CARE PAYMENTS.—Fos-
ter care maintenance payments may be made under this
subpart only on behalf of a child described in subsection
(a) of this section who is—
‘‘(1) in the foster family home of an individual,
whether the payments therefore are made to such in-
dividual or to a public or private child-placement or
child-care agency; or
‘‘(2) in a child-care institution, whether the pay-
ments therefore are made to such institution or to a
public or private child-placement or child-care agen-
cy, which payments shall be limited so as to include
in such payments only those items which are included
in the term ‘foster care maintenance payments’ (as
defined in section 437(6)).
‘‘(c) VOLUNTARY PLACEMENTS.—
‘‘(1) SATISFACTION
OF
CHILD
PROTECTION
STANDARDS.—Notwithstanding any other provision of
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this section, Federal payments may be made under
this subpart with respect to amounts expended by any
State as foster care maintenance payments under this
subpart, in the case of children removed from their
homes pursuant to voluntary placement agreements as
described in subsection (a), only if (at the time such
amounts were expended) the State has fulfilled all of
the requirements of section 435(b) or 430(a)(12).
‘‘(2) REMOVAL
IN
EXCESS
OF
180
DAYS.—No
Federal payment may be made under this subpart
with respect to amounts expended by any State as
foster care maintenance payments, in the case of any
child who was removed from such child’s home pursu-
ant to a voluntary placement agreement as described
in subsection (a) and has remained in voluntary
placement for a period in excess of 180 days, unless
there has been a judicial determination by a court of
competent jurisdiction (within the first 180 days of
such placement) to the effect that such placement is
in the best interests of the child.
‘‘(3) DEEMED REVOCATION OF AGREEMENTS.—
In any case where—
‘‘(A) the placement of a minor child in fos-
ter care occurred pursuant to a voluntary place-
ment agreement entered into by the parents or
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guardians of such child as provided in subsection
(a); and
‘‘(B) such parents or guardians request (in
such manner and form as the Secretary may
prescribe) that the child be returned to their
home or to the home of a relative,
the voluntary placement agreement shall be deemed to
be revoked unless the State opposes such request and
obtains a judicial determination, by a court of com-
petent jurisdiction, that the return of the child to such
home would be contrary to the child’s best interests.
‘‘SEC. 433. REQUIREMENTS FOR ADOPTION ASSISTANCE
PAYMENTS.
‘‘(a) IN GENERAL.—A State operating a program
under this subpart shall enter into adoption assistance
agreements with the adoptive parents of children with spe-
cial needs.
‘‘(b) PAYMENTS UNDER AGREEMENTS.—Under any
adoption assistance agreement entered into by a State with
parents who adopt a child with special needs who meets
the requirements of subsection (c), the State may make
adoption assistance payments to such parents or through
another public or nonprofit private agency, in amounts de-
termined under subsection (d).
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‘‘(c) CHILDREN WITH SPECIAL NEEDS.—For purposes
of subsection (b), a child meets the requirements of this sub-
section if such child—
‘‘(1)(A) at the time adoption proceedings were
initiated, met the requirements of section 406(a) or
section 407 (as in effect on the day before the date of
the enactment of this subpart) or would have met such
requirements except for such child’s removal from the
home of a relative (specified in section 406(a) (as so
in effect)), either pursuant to a voluntary placement
agreement with respect to which Federal payments
are provided under section 431(b) (or 403 (as so in
effect)) or as a result of a judicial determination to
the effect that continuation therein would be contrary
to the welfare of such child;
‘‘(B) meets all of the requirements of title XVI
with respect to eligibility for supplemental security
income benefits; or
‘‘(C) is a child whose costs in a foster family
home or child-care institution are covered by the fos-
ter care maintenance payments being made with re-
spect to his or her minor parent;
‘‘(2)(A) would have received aid under the eligi-
bility standards under the State plan approved under
section 402 (as in effect on the day before the date of
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the enactment of this subpart, adjusted for inflation,
in accordance with regulations issued by the Sec-
retary) in or for the month in which such agreement
was entered into or court proceedings leading to the
removal of such child from the home were initiated;
‘‘(B) would have received such aid in or for such
month if application had been made therefore, or had
been living with a relative specified in section 406(a)
(as so in effect) within 6 months prior to the month
in which such agreement was entered into or such
proceedings were initiated, and would have received
such aid in or for such month if in such month such
child had been living with such a relative and appli-
cation therefore had been made; or
‘‘(C) is a child described in subparagraph (A) or
(B); and
‘‘(3) has been determined by the State, pursuant
to subsection (g) of this section, to be a child with spe-
cial needs.
‘‘(d) DETERMINATION OF PAYMENTS.—The amount of
the payments to be made in any case under subsection (b)
shall be determined through agreement between the adoptive
parents and the State or a public or nonprofit private agen-
cy administering the program under this subpart, which
shall take into consideration the circumstances of the adopt-
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ing parents and the needs of the child being adopted, and
may be readjusted periodically, with the concurrence of the
adopting parents (which may be specified in the adoption
assistance agreement), depending upon changes in such cir-
cumstances. However, in no case may the amount of the
adoption assistance payment exceed the foster care mainte-
nance payment which would have been paid during the pe-
riod if the child with respect to whom the adoption assist-
ance payment is made had been in a foster family home.
‘‘(e) PAYMENT
EXCEPTION.—Notwithstanding sub-
section (d), no payment may be made to parents with re-
spect to any child who has attained the age of 18 (or, where
the State determines that the child has a mental or physical
disability which warrants the continuation of assistance,
the age of 21), and no payment may be made to parents
with respect to any child if the State determines that the
parents are no longer legally responsible for the support of
the child or if the State determines that the child is no
longer receiving any support from such parents. Parents
who have been receiving adoption assistance payments
under this subpart shall keep the State or public or non-
profit private agency administering the program under this
subpart informed of circumstances which would, pursuant
to this section, make them ineligible for such assistance pay-
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ments, or eligible for assistance payments in a different
amount.
‘‘(f) PRE-ADOPTION PAYMENTS.—For purposes of this
subpart, individuals with whom a child who has been deter-
mined by the State, pursuant to subsection (g), to be a child
with special needs is placed for adoption in accordance with
applicable State and local law shall be eligible for adoption
assistance payments during the period of the placement, on
the same terms and subject to the same conditions as if such
individuals had adopted such child.
‘‘(g) DETERMINATION
OF
CHILD
WITH
SPECIAL
NEEDS.—For purposes of this section, a child shall not be
considered a child with special needs unless—
‘‘(1) the State has determined that the child can-
not or should not be returned to the home of the
child’s parents; and
‘‘(2) the State had first determined—
‘‘(A) that there exists with respect to the
child a specific factor or condition such as the
child’s ethnic background, age, or membership in
a minority or sibling group, or the presence of
factors such as medical conditions or physical,
mental, or emotional handicaps because of which
it is reasonable to conclude that such child can-
not be placed with adoptive parents without pro-
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viding adoption assistance under this subpart or
medical assistance under title XIX or XXI; and
‘‘(B) that, except where it would be against
the best interests of the child because of such fac-
tors as the existence of significant emotional ties
with prospective adoptive parents while in the
care of such parents as a foster child, a reason-
able, but unsuccessful, effort has been made to
place the child with appropriate adoptive par-
ents without providing adoption assistance
under this section or medical assistance under
title XIX or XXI.
‘‘SEC. 434. CITIZEN REVIEW PANELS.
‘‘(a) ESTABLISHMENT.—Each State to which a grant
is made under section 431(a) shall establish at least 3 citi-
zen review panels.
‘‘(b) COMPOSITION.—Each panel established under
subsection (a) shall be broadly representative of the commu-
nity from which drawn.
‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab-
lished under subsection (a) shall meet not less frequently
than quarterly.
‘‘(d) DUTIES.—
‘‘(1) IN GENERAL.—Each panel established under
subsection (a) shall, by examining specific cases, de-
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termine the extent to which the State and local agen-
cies responsible for carrying out activities under this
subpart are doing so in accordance with the State
plan, with the child protection standards set forth in
section 430(a)(12) and 435, and with any other cri-
teria that the panel considers important to ensure the
protection of children.
‘‘(2) CONFIDENTIALITY.—The members and staff
of any panel established under subsection (a) shall not
disclose to any person or government any information
about any specific child protection case with respect
to which the panel is provided information.
‘‘(e) STATE ASSISTANCE.—Each State that establishes
a panel under subsection (a) shall afford the panel access
to any information on any case that the panel desires to
review, and shall provide the panel with staff assistance in
performing its duties.
‘‘(f) REPORTS.—Each panel established under sub-
section (a) shall make a public report of its activities after
each meeting.
‘‘SEC. 435. FOSTER CARE PROTECTION REQUIRED FOR AD-
DITIONAL FEDERAL PAYMENTS.
‘‘(a) REDUCTION OF GRANT.—A State shall not receive
a grant under section 431(a) unless such State—
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‘‘(1) has conducted an inventory of all children
who have been in foster care under the responsibility
of the State for a period of 6 months preceding the
inventory, and determined the appropriateness of,
and necessity for, the current foster placement, wheth-
er the child can be or should be returned to his par-
ents or should be freed for adoption, and the services
necessary to facilitate either the return of the child or
the placement of the child for adoption or legal guard-
ianship; and
‘‘(2) has implemented and is operating to the
satisfaction of the Secretary—
‘‘(A) a statewide information system from
which the status, demographic characteristics, lo-
cation, and goals for the placement of every child
in foster care or who has been in such care with-
in the preceding 12 months can readily be deter-
mined;
‘‘(B) a case review system (as defined in
section 437(4)) for each child receiving foster
care under the supervision of the State; and
‘‘(C) a service program designed to help
children, where appropriate, return to families
from which they have been removed or be placed
for adoption or legal guardianship.
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‘‘(b) ADDITIONAL REQUIREMENTS.—A State shall not
receive a grant under section 431(a) unless such State—
‘‘(1) has completed an inventory of the type spec-
ified in subsection (a)(1);
‘‘(2) has implemented and is operating the pro-
gram and systems specified in subsection (a)(2); and
‘‘(3) has implemented a preplacement preventive
service program designed to help children remain
with their families.
‘‘(c) 
PRESUMPTION
FOR
EXPENDITURES.—Any
amounts expended by a State for the purpose of complying
with the requirements of subsection (a) or (b) shall be con-
clusively presumed to have been expended for child welfare
services.
‘‘SEC. 436. DATA COLLECTION AND REPORTING.
‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE
GOALS.—On the date that is 3 years after the effective date
of this subpart and annually thereafter, each State to which
a grant is made under section 431(a) shall submit to the
Secretary a report that contains quantitative information
on the extent to which the State is making progress toward
achieving the goals of the State child protection program.
‘‘(b) STATE DATA REPORTS.—
‘‘(1) BIANNUAL REPORTS.—Each State to which
a grant is made under section 431(a) shall bian-
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nually submit to the Secretary a report that includes
the following information with respect to each child
within the State receiving publicly-supported child
welfare services under the State program funded
under this subpart:
‘‘(A) Whether the child received services
under the program funded under this subpart.
‘‘(B) The age, gender, and family income of
the parents and child.
‘‘(C) The county of residence of the child.
‘‘(D) Whether the child was removed from
the family.
‘‘(E) Whether the child entered foster care
under the responsibility of the State.
‘‘(F) The type of out-of-home care in which
the child was placed (including institutional
care, group home care, family foster care, or rel-
ative placement).
‘‘(G) The child’s permanency planning goal,
such as family reunification, kinship care, adop-
tion, or independent living.
‘‘(H) Whether the child was released for
adoption.
‘‘(I) Whether the child exited from foster
care, and, if so, the reason for the exit, such as
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return to family, placement with relatives, adop-
tion, independent living, or death.
‘‘(J) Other information as required by the
Secretary and agreed to by a majority of the
States, including information necessary to en-
sure a that there is a smooth transition of data
from the Adoption and Foster Care Analysis and
Reporting Systems and the National Center on
Abuse and Neglect Data System to the data re-
porting system required under this section.
‘‘(2) ANNUAL REPORTS.—Each State to which a
grant is made under section 431(a) shall annually
submit to the Secretary a report that includes the fol-
lowing information:
‘‘(A) The number of children reported to the
State during the year as alleged victims of abuse
or neglect.
‘‘(B) The number of children for whom an
investigation of alleged maltreatment resulted in
a determination of substantiated abuse or ne-
glect, the number for whom a report of maltreat-
ment was unsubstantiated, and the number for
whom a report of maltreatment was determined
to be false.
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‘‘(C) The number of families that received
preventive services.
‘‘(D) The number of infants abandoned dur-
ing the year, the number of such infants who
were adopted, and the length of time between
abandonment and adoption.
‘‘(E) The number of deaths of children re-
sulting from child abuse or neglect.
‘‘(F) The number of deaths occurring while
children were in the custody of the State.
‘‘(G) The number of children served by the
State independent living program.
‘‘(H) 
Quantitative 
measurements 
dem-
onstrating whether the State is making progress
toward the child protection goals identified by
the State.
‘‘(I) The types of maltreatment suffered by
victims of child abuse and neglect.
‘‘(J) The number of abused and neglected
children receiving services.
‘‘(K) The average length of stay of children
in out-of-home care.
‘‘(L) The response of the State to the find-
ings and recommendations of the citizen review
panels established under section 434.
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‘‘(M) Other information as required by the
Secretary and agreed to by a majority of the
States, including information necessary to en-
sure a that there is a smooth transition of data
from the Adoption and Foster Care Analysis and
Reporting Systems and the National Center on
Abuse and Neglect Data System to the data re-
porting system required under this section.
‘‘(c) AUTHORITY OF STATES TO USE ESTIMATES.—
‘‘(1) IN GENERAL.—A State may comply with a
requirement to provide precise numerical information
described in subsection (b) by submitting an estimate
which is obtained through the use of scientifically ac-
ceptable sampling methods.
‘‘(2) SECRETARIAL REVIEW OF SAMPLING METH-
ODS.—The Secretary shall periodically review the
sampling methods used by a State to comply with a
requirement to provide information described in sub-
section (b). The Secretary may require a State to re-
vise the sampling methods so used if such methods do
not meet scientific standards and shall impose the
penalty described in section 431(f)(4) upon a State if
a State has not complied with such requirements.
‘‘(d) SCOPE
OF STATE PROGRAM FUNDED UNDER
THIS SUBPART.—As used in subsection (b), the term ‘State
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program funded under this subpart’ includes any equiva-
lent State program.
‘‘SEC. 437. DEFINITIONS.
‘‘For purposes of this subpart, the following definitions
shall apply:
‘‘(1) ADMINISTRATIVE REVIEW.—The term ‘ad-
ministrative review’ means a review open to the par-
ticipation of the parents of the child, conducted by a
panel of appropriate persons at least one of whom is
not responsible for the case management of, or the de-
livery of services to, either the child or the parents
who are the subject of the review.
‘‘(2) ADOPTION ASSISTANCE AGREEMENT.—The
term ‘adoption assistance agreement’ means a written
agreement, binding on the parties to the agreement,
between the State, other relevant agencies, and the
prospective adoptive parents of a minor child which
at a minimum—
‘‘(A) specifies the nature and amount of
any payments, services, and assistance to be pro-
vided under such agreement; and
‘‘(B) stipulates that the agreement shall re-
main in effect regardless of the State of which
the adoptive parents are residents at any given
time.
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The agreement shall contain provisions for the protec-
tion (under an interstate compact approved by the
Secretary or otherwise) of the interests of the child in
cases where the adoptive parents and child move to
another State while the agreement is effective.
‘‘(3) CASE PLAN.—The term ‘case plan’ means a
written document which includes at least the follow-
ing:
‘‘(A) A description of the type of home or
institution in which a child is to be placed, in-
cluding a discussion of the appropriateness of the
placement and how the agency which is respon-
sible for the child plans to carry out the vol-
untary placement agreement entered into or ju-
dicial determination made with respect to the
child in accordance with section 432(a)(1).
‘‘(B) A plan for assuring that the child re-
ceives proper care and that services are provided
to the parents, child, and foster parents in order
to improve the conditions in the parents’ home,
facilitate return of the child to his or her own
home or the permanent placement of the child,
and address the needs of the child while in foster
care, including a discussion of the appropriate-
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ness of the services that have been provided to the
child under the plan.
‘‘(C) To the extent available and accessible,
the health and education records of the child, in-
cluding—
‘‘(i) the names and addresses of the
child’s health and educational providers;
‘‘(ii) the child’s grade level perform-
ance;
‘‘(iii) the child’s school record;
‘‘(iv) assurances that the child’s place-
ment in foster care takes into account prox-
imity to the school in which the child is en-
rolled at the time of placement;
‘‘(v) a record of the child’s immuniza-
tions;
‘‘(vi) the child’s known medical prob-
lems;
‘‘(vii) the child’s medications; and
‘‘(viii) any other relevant health and
education information concerning the child
determined to be appropriate by the State.
Where appropriate, for a child age 16 or over,
the case plan must also include a written de-
scription of the programs and services which will
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help such child prepare for the transition from
foster care to independent living.
‘‘(4) CASE REVIEW SYSTEM.—The term ‘case re-
view system’ means a procedure for assuring that—
‘‘(A) each child has a case plan designed to
achieve placement in the least restrictive (most
family like) and most appropriate setting avail-
able and in close proximity to the parents’ home,
consistent with the best interest and special needs
of the child, which—
‘‘(i) if the child has been placed in a
foster family home or child-care institution
a substantial distance from the home of the
parents of the child, or in a State different
from the State in which such home is lo-
cated, sets forth the reasons why such place-
ment is in the best interests of the child;
and
‘‘(ii) if the child has been placed in fos-
ter care outside the State in which the home
of the parents of the child is located, re-
quires that, periodically, but not less fre-
quently than every 12 months, a caseworker
on the staff of the State in which the home
of the parents of the child is located, or of
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the State in which the child has been
placed, visit such child in such home or in-
stitution and submit a report on such visit
to the State in which the home of the par-
ents of the child is located;
‘‘(B) the status of each child is reviewed pe-
riodically but no less frequently than once every
6 months by either a court or by administrative
review (as defined in paragraph (1)) in order to
determine the continuing necessity for and ap-
propriateness of the placement, the extent of com-
pliance with the case plan, and the extent of
progress which has been made toward alleviating
or mitigating the causes necessitating placement
in foster care, and to project a likely date by
which the child may be returned to the home or
placed for adoption or legal guardianship;
‘‘(C) with respect to each such child, proce-
dural safeguards will be applied, among other
things, to assure each child in foster care under
the supervision of the State of a dispositional
hearing to be held, in a family or juvenile court
or another court (including a tribal court) of
competent jurisdiction, or by an administrative
body appointed or approved by the court, no
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later than 18 months after the original place-
ment (and not less frequently than every 12
months thereafter during the continuation of fos-
ter care), which hearing shall determine the fu-
ture status of the child (including whether the
child should be returned to the parent, should be
continued in foster care for a specified period,
should be placed for adoption, or should (because
of the child’s special needs or circumstances) be
continued in foster care on a permanent or long-
term basis) and, in the case of a child described
in subparagraph (A)(ii), whether the out-of-State
placement continues to be appropriate and in
the best interests of the child, and, in the case of
a child who has attained age 16, the services
needed to assist the child to make the transition
from foster care to independent living; and pro-
cedural safeguards shall also be applied with re-
spect to parental rights pertaining to the re-
moval of the child from the home of his parents,
to a change in the child’s placement, and to any
determination affecting visitation privileges of
parents; and
‘‘(D) a child’s health and education record
(as described in paragraph (3)(C)) is reviewed
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and updated, and supplied to the foster parent
or foster care provider with whom the child is
placed, at the time of each placement of the child
in foster care.
‘‘(5) 
CHILD-CARE
INSTITUTION.—The 
term
‘child-care institution’ means a private child-care in-
stitution, or a public child-care institution which ac-
commodates no more than 25 children, which is li-
censed by the State in which it is situated or has been
approved, by the agency of such State responsible for
licensing or approval of institutions of this type, as
meeting the standards established for such licensing,
but the term shall not include detention facilities, for-
estry camps, training schools, or any other facility
operated primarily for the detention of children who
are determined to be delinquent.
‘‘(6) FOSTER CARE MAINTENANCE PAYMENTS.—
‘‘(A) IN GENERAL.—The term ‘foster care
maintenance payments’ means payments to
cover the cost of (and the cost of providing) food,
clothing, shelter, daily supervision, school sup-
plies, a child’s personal incidentals, liability in-
surance with respect to a child, and reasonable
travel to the child’s home for visitation. In the
case of institutional care, such term shall include
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the reasonable costs of administration and oper-
ation of such institution as are necessarily re-
quired to provide the items described in the pre-
ceding sentence.
‘‘(B) SPECIAL RULE.—In cases where—
‘‘(i) a child placed in a foster family
home or child-care institution is the parent
of a son or daughter who is in the same
home or institution; and
‘‘(ii) payments described in subpara-
graph (A) are being made under this sub-
part with respect to such child,
the foster care maintenance payments made with
respect to such child as otherwise determined
under subparagraph (A) shall also include such
amounts as may be necessary to cover the cost of
the items described in that subparagraph with
respect to such son or daughter.
‘‘(7) FOSTER FAMILY HOME.—The term ‘foster
family home’ means a foster family home for children
which is licensed by the State in which it is situated
or has been approved, by the agency of such State
having responsibility for licensing homes of this type,
as meeting the standards established for such licens-
ing.
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‘‘(8) STATE.—The term ‘State’ means the 50
States and the District of Columbia.
‘‘(9) VOLUNTARY
PLACEMENT.—The term ‘vol-
untary placement’ means an out-of-home placement of
a minor, by or with participation of the State, after
the parents or guardians of the minor have requested
the assistance of the State and signed a voluntary
placement agreement.
‘‘(10) VOLUNTARY
PLACEMENT
AGREEMENT.—
The term ‘voluntary placement agreement’ means a
written agreement, binding on the parties to the
agreement, between the State, any other agency acting
on its behalf, and the parents or guardians of a
minor child which specifies, at a minimum, the legal
status of the child and the rights and obligations of
the parents or guardians, the child, and the agency
while the child is in placement.’’.
SEC. 12702. CONFORMING AMENDMENTS.
(a) REPEAL OF PART E OF TITLE IV OF THE SOCIAL
SECURITY ACT.—Part E of title IV of the Social Security
Act (42 U.S.C. 671–679) is hereby repealed.
(b) REPEAL OF SECTION 13712 OF THE OMNIBUS
BUDGET RECONCILIATION ACT OF 1993.—Section 13712 of
the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C.
670 note) is hereby repealed.
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(c) REPEAL OF SECTION 435.—Section 435 of the So-
cial Security Act, as amended by section 12701, is repealed
on April 1, 1996.
SEC. 12703. EFFECTIVE DATE; TRANSITION RULE.
(a) IN GENERAL.—Except as otherwise provided in
this subtitle, this subtitle and the amendments made by this
subtitle shall take effect as if enacted on October 1, 1995.
(b) TRANSITION RULE.—
(1) STATE OPTION TO CONTINUE PROGRAMS.—
(A) 9-MONTH
EXTENSION.—A State may
continue the State programs under subpart 2 of
part B and part E of title IV of the Social Secu-
rity Act, as in effect on September 30, 1995 (for
purposes of this paragraph, the ‘‘State pro-
grams’’) until June 30, 1996.
(B) NO INDIVIDUAL OR FAMILY ENTITLE-
MENT UNDER CONTINUED STATE PROGRAMS.—
Notwithstanding any other provision of law or
any rule of law, no individual or family is enti-
tled to aid under the State programs of any
State on or after the date of the enactment of this
Act.
(C) LIMITATIONS
ON
FEDERAL
OBLIGA-
TIONS.—If a State elects to continue the State
programs pursuant to subparagraph (A), the
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total obligations of the Federal Government to
the State under subpart 2 of part B and part E
of title IV of the Social Security Act (as such
subpart and part are in effect on September 30,
1995) after the date of the enactment of this Act
shall not exceed an amount equal to—
(I) the grant to the State under
section 431(a) (as in effect pursuant to
the amendment made by section 12701
of this Act)); minus
(II) any obligations of the Federal
Government to the State under such
subpart and part (as in effect on Sep-
tember 30, 1995) with respect to ex-
penditures by the State during the pe-
riod that begins on October 1, 1995,
and ends on the day before the date of
the enactment of this Act.
(D) SUBMISSION OF STATE PLAN FOR FIS-
CAL YEAR 1996 DEEMED ACCEPTANCE OF GRANT
LIMITATIONS AND FORMULA.—The submission of
a plan by a State under section 430(a) of the So-
cial Security Act (as in effect pursuant to the
amendment made by section 12701 of this Act)
for fiscal year 1996 is deemed to constitute the
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State’s acceptance of the grant reduction under
subparagraph (C) of this paragraph (including
the formula for computing the amount of the re-
duction).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The
amendments made by this subtitle shall not apply
with respect to—
(A) powers, duties, functions, rights, claims,
penalties, or obligations applicable to aid, assist-
ance, or services provided before the effective date
of this subtitle under the provisions amended;
and
(B) administrative actions and proceedings
commenced before such date, or authorized before
such date to be commenced, under such provi-
sions.
(3) CLOSING
OUT
ACCOUNT
FOR
THOSE
PRO-
GRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY
THIS
SUBTITLE.—In closing out accounts, Federal
and State officials may use scientifically acceptable
statistical sampling techniques. Claims made under
programs which are repealed or substantially amend-
ed in this subtitle and which involve State expendi-
tures in cases where assistance or services were pro-
vided during a prior fiscal year, shall be treated as
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expenditures during fiscal year 1995 for purposes of
reimbursement even if payment was made by a State
on or after October 1, 1995. States shall complete the
filing of all claims no later than September 30, 1997.
Federal department heads shall—
(A) use the single audit procedure to review
and resolve any claims in connection with the
close out of programs; and
(B) reimburse States for any payments
made for assistance or services provided during
a prior fiscal year from funds for fiscal year
1995, rather than the funds authorized by this
subtitle.
Subtitle H—Child Care
SEC. 12801. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Child Care and Development Block Grant Amendments of
1995’’.
(b) REFERENCES.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858
et seq.).
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SEC. 12802. AUTHORIZATION OF APPROPRIATIONS AND EN-
TITLEMENT AUTHORITY.
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is
amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter $1,000,000,000 for each of the fiscal years
1996 through 2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of the
Social Security Act (as amended by section 12101) is
amended by adding at the end thereof the following new
section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.
‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL
ENTITLEMENT.—Subject to the
amount appropriated under paragraph (3), each
State shall, for the purpose of providing child care as-
sistance, be entitled to payments under a grant under
this subsection for a fiscal year in an amount equal
to—
‘‘(A) the sum of the total amounts of Fed-
eral payments for fiscal year 1994 to the State
under section—
‘‘(i) 402(g)(3)(A) of this Act (as such
section was in effect before October 1, 1995)
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for amounts expended for child care pursu-
ant to paragraph (1) of such section;
‘‘(ii) 403(l)(1)(A) of this Act (as so in
effect) for amounts expended for child care
pursuant to section 402(g)(1)(A) of this Act,
in the case of a State with respect to which
section 1108 of this Act applies; and
‘‘(iii) 403(n) of this Act (as so in ef-
fect) for child care services pursuant to sec-
tion 402(i) of this Act; or
‘‘(B) the average of the sum of the total
amount of Federal payments for each of the fis-
cal years 1992 through 1994 to the State under
the sections referred to in subparagraph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use any
amounts appropriated for a fiscal year under
paragraph (3), and remaining after grants are
awarded under paragraph (1), to make grants to
States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph
(C), the amount of a grant awarded to a State
for a fiscal year under this paragraph shall be
based on the formula used for determining the
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amount of Federal payments to the State for fis-
cal year 1994 under section 403(n) (as such sec-
tion was in effect before October 1, 1995) for
child care services pursuant to section 402(i) as
such amount relates to the total amount of such
Federal payments to all States for such fiscal
year.
‘‘(C) MATCHING REQUIREMENT.—The Sec-
retary shall pay to each eligible State in a fiscal
year an amount, under a grant under subpara-
graph (A), equal to the Federal medical assist-
ance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so much
of the expenditures by the State for child care in
such year as exceed the State set-aside for such
State under subparagraph (A) for such year and
the amount of State expenditures in fiscal year
1995 that equal the non-Federal share for the
programs described in subparagraphs (A), (B)
and (C) of paragraph (1).
‘‘(3) APPROPRIATION.—There is authorized to be
appropriated, and there is appropriated, to carry out
this section—
‘‘(A) $1,170,000,000 for fiscal year 1996;
‘‘(B) $1,240,000,000 for fiscal year 1997;
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‘‘(C) $1,320,000,000 for fiscal year 1998;
‘‘(D) $1,400,000,000 for fiscal year 1999;
‘‘(E) $1,500,000,000 for fiscal year 2000;
‘‘(F) $1,625,000,000 for fiscal year 2001;
and
‘‘(G) $1,745,000,000 for fiscal year 2002.
‘‘(4) REDISTRIBUTION.—With respect to any fis-
cal year, if the Secretary determines that amounts
under any grant awarded to a State under this sub-
section for such fiscal year will not be used by such
State for carrying out the purpose for which the grant
is made, the Secretary shall make such amounts
available for carrying out such purpose to 1 or more
other States which apply for such funds to the extent
the Secretary determines that such other States will
be able to use such additional amounts for carrying
out such purpose. Such available amounts shall be re-
distributed to a State pursuant to section 402(i) (as
such section was in effect before October 1, 1995) by
substituting ‘the number of children residing in all
States applying for such funds’ for ‘the number of
children residing in the United States in the second
preceding fiscal year’. Any amount made available to
a State from an appropriation for a fiscal year in ac-
cordance with the preceding sentence shall, for pur-
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poses of this part, be regarded as part of such State’s
payment (as determined under this subsection) for
such year.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Amounts received by a State
under this section shall only be used to provide child
care assistance.
‘‘(2) USE FOR CERTAIN POPULATIONS.—A State
shall ensure that not less than 70 percent of the total
amount of funds received by the State in a fiscal year
under this section are used to provide child care as-
sistance to families who are receiving assistance
under a State program under this part, families who
are attempting through work activities to transition
off of such assistance program, and families who are
at risk of becoming dependent on such assistance pro-
gram.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT
BLOCK GRANT ACT.—Notwithstanding any other provision
of law, amounts provided to a State under this section shall
be transferred to the lead agency under the Child Care and
Development Block Grant Act, integrated by the State into
the programs established by the State under such Act, and
be subject to requirements and limitations of such Act.
‘‘(d) TRANSITION RULE.—
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‘‘(1) IN GENERAL.—Amounts obligated to a State
under this section for fiscal year 1996 shall not ex-
ceed—
‘‘(A) the amount for which a State is eligi-
ble under this section for such fiscal year; less
‘‘(B) the amounts obligated to the State for
such fiscal year under the provisions of law re-
ferred to in subsection (a)(1)(A) (as such provi-
sions were in effect on the day before the date of
enactment of this section).
‘‘(2) ACCEPTANCE OF LIMITATION.—The submis-
sion of a plan by a State under section 401(a) for fis-
cal year 1996 is deemed to constitute the State’s ac-
ceptance of the grant reductions under paragraph (1).
If amounts are provided to a State under this section
prior to the submission of such a State plan, the ac-
ceptance of such amounts by the State shall constitute
the State’s acceptance of such reductions.’’.
SEC. 12803. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘State’’ the first place that such appears and in-
serting ‘‘governmental or nongovernmental’’; and
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(B) in subparagraph (C), by inserting
‘‘with sufficient time and Statewide distribution
of the notice of such hearing,’’ after ‘‘hearing in
the State’’; and
(2) in paragraph (2), by striking the second sen-
tence.
SEC. 12804. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘imple-
mented’’; and
(B) by striking ‘‘for subsequent State
plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clause (i) by striking ‘‘,
other than through assistance provided
under paragraph (3)(C),’’; and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992’’, and in-
serting ‘‘and provide a detailed de-
scription of the procedures the State
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will implement to carry out the re-
quirements of this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the period
at the end ‘‘and provide a detailed de-
scription of such procedures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the period
at the end ‘‘and provide a detailed de-
scription of how such record is main-
tained and is made available’’;
(iv) by amending subparagraph (D) to
read as follows:
‘‘(D) 
CONSUMER
EDUCATION
INFORMA-
TION.—Certify that the State will collect and
disseminate to parents of eligible children and
the general public, consumer education informa-
tion that will promote informed child care
choices.’’;
(v) in subparagraph (E), to read as
follows:
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‘‘(E) COMPLIANCE WITH STATE LICENSING
REQUIREMENTS.—
‘‘(i) IN
GENERAL.—Certify that the
State has in effect licensing requirements
applicable to child care services provided
within the State, and provide a detailed de-
scription of such requirements and of how
such requirements are effectively enforced.
Nothing in the preceding sentence shall be
construed to require that licensing require-
ments be applied to specific types of provid-
ers of child care services.
‘‘(ii) UNIFORM
APPLICATION
OF
RE-
QUIREMENTS.—A certification under clause
(i) shall include an assurance by the State
that the State shall apply all such licensing
requirements in a uniform manner to child
care providers of the same type regardless of
whether a child care provider is receiving
assistance under this subchapter. Nothing in
this subchapter shall be construed to require
that a State apply, or prohibit a State from
applying, licensing requirements with re-
spect to a particular type of child care.
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‘‘(iii) INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—In lieu of any licensing and
regulatory requirements applicable under
State and local law, the Secretary, in con-
sultation with Indian tribes and tribal or-
ganizations, shall develop minimum child
care standards (that appropriately reflect
tribal needs and available resources) that
shall be applicable to Indian tribes and
tribal organization receiving assistance
under this subchapter.’’; and
(vi) by striking subparagraphs (F),
(G), (H), (I), and (J) and inserting the fol-
lowing:
‘‘(F) MEETING
THE
NEEDS
OF
CERTAIN
POPULATIONS.—Demonstrate the manner in
which the State will meet the specific child care
needs of families who are receiving assistance
under a State program under part A of title IV
of the Social Security Act, families who are at-
tempting through work activities to transition off
of such assistance program, and families who are
at risk of becoming dependent on such assistance
program.’’;
(B) in paragraph (3)—
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(i) in subparagraph (A), by striking
‘‘(B) and (C)’’ and inserting ‘‘(B) through
(D)’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the
reservation contained in subparagraph
(C), the’’ and inserting ‘‘AND RELATED
ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘;
and’’ at the end and inserting a pe-
riod;
(III) by striking ‘‘for—’’ and all
that 
follows 
through 
‘‘section
658E(c)(2)(A)’’ 
and 
inserting 
‘‘for
child care services on sliding fee scale
basis, activities that improve the qual-
ity or availability of such services, and
any other activity that the State deems
appropriate’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to
read as follows:
‘‘(C) 
LIMITATION
ON
ADMINISTRATIVE
COSTS.—Not more than 3 percent of the aggre-
gate amount of funds available to the State to
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carry out this subchapter by a State in each fis-
cal year may be expended for administrative
costs incurred by such State to carry out all of
its functions and duties under this subchapter.
As used in the preceding sentence, the term ‘ad-
ministrative costs’ shall not include the costs of
providing direct services.’’; and
(iv) by adding at the end thereof the
following:
‘‘(D) ASSISTANCE
FOR
CERTAIN
FAMI-
LIES.—A State shall ensure that a substantial
portion of the amounts available (after the State
has complied with the requirement of section
419(b)(2) of the Social Security Act) to the State
to carry out activities this subchapter in each
fiscal year is used to provide assistance to low-
income working families other than families de-
scribed in paragraph (2)(F).’’; and 419(b)(2)
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’
and inserting ‘‘certify’’;
(ii) in the first sentence by inserting
‘‘and shall provide a summary of the facts
relied on by the State to determine that
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such rates are sufficient to ensure such ac-
cess’’ before the period; and
(iii) by striking the last sentence.
SEC. 12805. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b) (42 U.S.C. 9858d(b)) is amended—
(1) in paragraph (1), by striking ‘‘No’’ and in-
serting ‘‘Except as provided for in section 658O(c)(6),
no’’; and
(2) in paragraph (2), by striking ‘‘referred to in
section 658E(c)(2)(F)’’.
SEC. 12806. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read
as follows:
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
‘‘A State that receives financial assistance under this
subchapter, shall use not less than 3 percent of the total
amounts received in each fiscal year for activities that are
designed to provide comprehensive consumer education to
parents and the public, activities that increase parental
choice, and activities designed to improve the quality and
availability of child care (such as resource and referral serv-
ices).’’.
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SEC. 12807. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall
have’’ and all that follows through ‘‘(2)’’;
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as para-
graph (2).
SEC. 12808. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended—
(1) by striking ‘‘expended’’ and inserting ‘‘obli-
gated’’; and
(2) by striking ‘‘3 fiscal years’’ and inserting
‘‘fiscal year’’.
SEC. 12809. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL
REPORT’’ and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) 
COLLECTION
OF
INFORMATION
BY
STATES.—
‘‘(A) IN GENERAL.—A State that receives
funds to carry out this subchapter shall collect
the information described in subparagraph (B)
on a monthly basis.
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‘‘(B) REQUIRED INFORMATION.—The infor-
mation required under this subparagraph shall
include, with respect to a family unit receiving
assistance under this subchapter information
concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender and age of children
receiving such assistance;
‘‘(iv) whether the family includes only
1 parent;
‘‘(v) the sources of family income, in-
cluding the amount obtained from (and sep-
arately identified)—
‘‘(I) employment, including self-
employment;
‘‘(II) cash or other assistance
under part A of title IV of the Social
Security Act;
‘‘(III) housing assistance;
‘‘(IV) assistance under the Food
Stamp Act of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family
has received benefits;
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‘‘(vii) the type of child care in which
the child was enrolled (such as family child
care, home care, or center-based child care);
‘‘(viii) whether the child care provider
involved was a relative;
‘‘(ix) the cost of child care for such
families; and
‘‘(x) the average hours per week of such
care;
during the period for which such information is
required to be submitted.
‘‘(C) SUBMISSION TO SECRETARY.—A State
described in subparagraph (A) shall, on a quar-
terly basis, submit the information required to be
collected under subparagraph (B) to the Sec-
retary.
‘‘(D) SAMPLING.—The Secretary may dis-
approve the information collected by a State
under this paragraph if the State uses sampling
methods to collect such information.
‘‘(2) BIANNUAL REPORTS.—Not later than De-
cember 31, following the end of the first fiscal year
with respect to which the amendments made by the
Child Care and Development Block Grants Amend-
ments of 1995 apply, and every 6 months thereafter,
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(A) in paragraph (1) by striking ‘‘a appli-
cation’’ and inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any
agency administering activities that receive’’ and
inserting ‘‘the State that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’
and inserting ‘‘entitled’’.
SEC. 12810. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)
(i) by striking ‘‘POSSESSIONS’’ and in-
serting ‘‘POSSESSIONS’’;
(ii) by inserting ‘‘and’’ after ‘‘States,’’;
and
(iii) by striking ‘‘, and the Trust Ter-
ritory of the Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘3 per-
cent of the amount appropriated under section
658B’’ and inserting ‘‘1 percent of the aggregate
amount of funds available to the State to carry
out this subchapter’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and
inserting ‘‘out’’; and
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(B) by adding at the end thereof the follow-
ing new paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FACILI-
TIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An
Indian tribe or tribal organization may submit
to the Secretary a request to use amounts pro-
vided under this subsection for construction or
renovation purposes.
‘‘(B) DETERMINATION.—With respect to a
request submitted under subparagraph (A), and
except as provided in subparagraph (C), upon a
determination by the Secretary that adequate fa-
cilities are not otherwise available to an Indian
tribe or tribal organization to enable such tribe
or organization to carry out child care programs
in accordance with this subchapter, and that the
lack of such facilities will inhibit the operation
of such programs in the future, the Secretary
may permit the tribe or organization to use as-
sistance provided under this subsection to make
payments for the construction or renovation of
facilities that will be used to carry out such pro-
grams.
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‘‘(C) LIMITATION.—The Secretary may not
permit an Indian tribe or tribal organization to
use amounts provided under this subsection for
construction or renovation if such use will result
in a decrease in the level of child care services
provided by the tribe or organization as com-
pared to the level of such services provided by the
tribe or organization in the fiscal year preceding
the year for which the determination under sub-
paragraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Sec-
retary shall develop and implement uniform pro-
cedures for the solicitation and consideration of
requests under this paragraph.’’; and
(3) in subsection (e), by adding at the end there-
of the following new paragraph:
‘‘(4) INDIAN
TRIBES
OR
TRIBAL
ORGANIZA-
TIONS.—Any portion of a grant or contract made to
an Indian tribe or tribal organization under sub-
section (c) that the Secretary determines is not being
used in a manner consistent with the provision of this
subchapter in the period for which the grant or con-
tract is made available, shall be allotted by the Sec-
retary to other tribes or organizations that have sub-
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mitted applications under subsection (c) in accord-
ance with their respective needs.’’.
SEC. 12811. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by in-
serting ‘‘or as a deposit for child care services if such
a deposit is required of other children being cared for
by the provider’’ after ‘‘child care services’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 per-
cent’’ and inserting ‘‘85 percent’’;
(4) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling
(if such provider lives in a separate residence),’’
after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘ap-
plicable’’.
(5) by striking paragraph (10);
(6) in paragraph (3)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’;
(7) in paragraph (14)—
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(A) by striking ‘‘The term’’ and inserting
the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the follow-
ing new subparagraph:
‘‘(B) OTHER ORGANIZATIONS.—Such term
includes a Native Hawaiian Organization, as
defined in section 4009(4) of the Augustus F.
Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of
1988 (20 U.S.C. 4909(4)) and a private non-
profit organization established for the purpose of
serving youth who are Indians or Native Hawai-
ians.’’.
Subtitle I—Child Nutrition
Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH
ACT
SEC. 12901. TERMINATION OF ADDITIONAL PAYMENT FOR
LUNCHES SERVED IN HIGH FREE AND RE-
DUCED PRICE PARTICIPATION SCHOOLS.
Section 4(b)(2) of the National School Lunch Act (42
U.S.C. 1753(b)(2)) is amended by inserting before the pe-
riod at the end the following: ‘‘for the 1995 school year and
1 cent more for each of the 1996 and 1997 school years’’.
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for Foods Used in Schools and Institutions
for March, April, and May each year.
‘‘(ii) METHOD OF ADJUSTMENTS.—Ex-
cept as otherwise provided in this subpara-
graph, in the case of each school year, the
Secretary shall—
‘‘(I) base the adjustment made
under clause (i) on the amount of the
unrounded adjustment for the preced-
ing school year;
‘‘(II) adjust the resulting amount
in accordance with clause (i); and
‘‘(III) round the result to the
nearest lower cent increment.
‘‘(iii) ADJUSTMENT
ON
JANUARY
1,
1996.—On January 1, 1996, the Secretary
shall adjust the value of food assistance for
all meals for the remainder of the school
year by rounding the previously established
value of food assistance to the nearest lower
cent increment.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a)(1) shall become effective on July 1, 1996.
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SEC. 12904. REDUCED PRICE LUNCHES.
(a) MAXIMUM PRICE.—Section 9(b)(3) of the National
School Lunch Act (42 U.S.C. 1758(b)(3)) is amended—
(1) in the last sentence, by striking ‘‘The’’ and
inserting ‘‘Except as provided in the succeeding 2
sentences, the’’; and
(2) by adding at the end the following: ‘‘In the
case of the school year beginning July 1, 2000, the
price charged for a reduced price lunch shall not ex-
ceed 45 cents. In the case of the school year beginning
July 1, 2001, and each school year thereafter, the
price charged for a reduced price lunch shall not ex-
ceed 50 cents.’’.
(b) REDUCED
PRICE
MEAL
PAYMENT.—Section
11(a)(2) of the Act (42 U.S.C. 1759a(a)(2)) is amended—
(1) by striking ‘‘cents and the’’ and inserting
‘‘cents. Except as provided in the succeeding 2 sen-
tences, the’’; and
(2) by adding at the end the following: ‘‘In the
case of the school year beginning July 1, 2000, the
special assistance factor for reduced price lunches
shall be 45 cents less than the special assistance factor
for free lunches. In the case of the school year begin-
ning July 1, 2001, and each school year thereafter,
the special assistance factor for reduced price lunches
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shall be 50 cents less than the special assistance factor
for free lunches.’’.
SEC. 12905. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.
(a) IN GENERAL.—Section 11(a)(3)(B) of the National
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amend-
ed—
(1) by designating the second and third sentences
as subparagraphs (C) and (D), respectively; and
(2) by striking subparagraph (D) (as so des-
ignated) and inserting the following:
‘‘(D) ROUNDING.—Except as otherwise pro-
vided in this paragraph, in the case of each
school year, the Secretary shall—
‘‘(i) base the adjustment made under
this paragraph on the amount of the
unrounded adjustment for the preceding
school year;
‘‘(ii) adjust the resulting amount in
accordance with subparagraphs (B) and
(C); and
‘‘(iii) round the result to the nearest
lower cent increment.
‘‘(E) ADJUSTMENT ON JANUARY 1 AND JULY
1, 1996.—The Secretary shall adjust the rates for
breakfasts and supplements on January 1, 1996,
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for the remainder of the school year, and shall
adjust the rates for lunches on July 1, 1996, by
rounding the previously established rates to the
nearest lower cent increment.
‘‘(F) ADJUSTMENT FOR 24-MONTH PERIOD
BEGINNING JULY 1, 1996.—In the case of the 24-
month period beginning July 1, 1996, the na-
tional average payment rates for paid lunches,
paid breakfasts, and paid supplements shall be
the same as the national average payment rate
for paid lunches, paid breakfasts, and paid sup-
plements, respectively, for the school year begin-
ning July 1, 1995, rounded to the nearest lower
cent increment.
‘‘(G) ADJUSTMENT FOR SCHOOL YEAR BE-
GINNING JULY 1, 1998.—In the case of the school
year beginning July 1, 1998, the Secretary
shall—
‘‘(i) base the adjustments made under
this paragraph for—
‘‘(I) paid lunches and paid break-
fasts on the amount of the unrounded
adjustment for paid lunches for the
school year beginning July 1, 1995;
and
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‘‘(II) paid supplements on the
amount of the unrounded adjustment
for paid supplements for the school
year beginning July 1, 1995;
‘‘(ii) adjust each resulting amount in
accordance with subparagraph (C); and
‘‘(iii) round each result to the nearest
lower cent increment.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 12906. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a) of
the National School Lunch Act (42 U.S.C. 1761(a)) is
amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘initi-
ate, maintain, and expand’’ and insert ‘‘initiate
and maintain’’; and
(B) in subparagraph (E) of the second sen-
tence, by striking ‘‘the Trust Territory of the Pa-
cific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as
provided in subparagraph (C), private’’ and inserting
‘‘Private’’.
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(b) SERVICE INSTITUTIONS.—Section 13(b) of the Act
is amended by striking ‘‘(b)(1)’’ and all that follows through
the end of paragraph (1) and inserting the following:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, payments to service
institutions shall equal the full cost of food serv-
ice operations (which cost shall include the costs
of obtaining, preparing, and serving food, but
shall not include administrative costs).
‘‘(B) MAXIMUM AMOUNTS.—Subject to sub-
paragraph (C), payments to any institution
under subparagraph (A) shall not exceed—
‘‘(i) $1.82 for each lunch and supper
served;
‘‘(ii) $1.13 for each breakfast served;
and
‘‘(iii) 46 cents for each meal supple-
ment served.
‘‘(C) ADJUSTMENTS.—Amounts specified in
subparagraph (B) shall be adjusted each Janu-
ary 1 to the nearest lower cent increment in ac-
cordance with the changes for the 12-month pe-
riod ending the preceding November 30 in the se-
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ries for food away from home of the Consumer
Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Depart-
ment of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-
month period.’’.
(c) ADMINISTRATION
OF SERVICE INSTITUTIONS.—
Section 13(b)(2) of the Act is amended—
(1) in the first sentence, by striking ‘‘four meals’’
and inserting ‘‘3 meals, or 2 meals and 1 supple-
ment,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act is
amended—
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
(i) by striking ‘‘, and such higher edu-
cation institutions,’’; and
(ii) by striking ‘‘without application’’
and inserting ‘‘upon showing residence in
areas in which poor economic conditions
exist’’; and
(B) by adding at the end the following:
‘‘The higher education institutions referred to in
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the preceding sentence shall be eligible to partici-
pate in the program under this paragraph with-
out application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe
need’’; and
(4) by redesignating subparagraphs (B) through
(E), as so amended, as subparagraphs (A) through
(D), respectively.
(e) PERMITTING OFFER VERSUS SERVE.—Section
13(f) of the Act is amended—
(1) by redesignating the first through seventh
sentences as paragraphs (1) through (7), respectively;
and
(2) by adding at the end the following:
‘‘(8) OFFER VERSUS SERVE.—A school food au-
thority participating as a service institution may
permit a child attending a site on school premises op-
erated directly by the authority to refuse not more
than 1 item of a meal that the child does not intend
to consume. A refusal of an offered food item shall not
affect the amount of payments made under this sec-
tion to a school for the meal.’’.
(f) EFFECTIVE DATE.—The amendments made by sub-
section (b) shall become effective on January 1, 1996.
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SEC. 12907. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the
National School Lunch Act (42 U.S.C. 1766) is amended—
(1) in the section heading, by striking ‘‘AND
ADULT’’; and
(2) in the first sentence of subsection (a), by
striking ‘‘initiate, maintain, and expand’’ and insert-
ing ‘‘initiate and maintain’’.
(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph
(2) of the last sentence of section 17(a) of the Act (42 U.S.C.
1766(a)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does not
base payments to an employee of the organiza-
tion on the number of family or group day care
homes recruited, managed, or monitored.’’.
(c) TECHNICAL ASSISTANCE.—The last sentence of sec-
tion 17(d)(1) of the Act is amended by striking ‘‘, and shall
provide technical assistance’’ and all that follows through
‘‘its application’’.
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(d) REIMBURSEMENT
OF
CHILD
CARE
INSTITU-
TIONS.—Section 17(f)(2)(B) of the Act (42 U.S.C.
1766(f)(2)(B)) is amended by striking ‘‘two meals and two
supplements or three meals and one supplement’’ and in-
serting ‘‘two meals and one supplement’’.
(e) IMPROVED TARGETING OF DAY CARE HOME REIM-
BURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the Act is amend-
ed by striking ‘‘(3)(A) Institutions’’ and all that fol-
lows through the end of subparagraph (A) and insert-
ing the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP DAY
CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN GENERAL.—An institution that
participates in the program under this sec-
tion as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the or-
ganization, reimbursement factors in ac-
cordance with this subparagraph for the
cost of obtaining and preparing food and
prescribed labor costs involved in providing
meals under this section.
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‘‘(ii) TIER I FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) DEFINITION.—In this para-
graph, the term ‘tier I family or group
day care home’ means—
‘‘(aa) a family or group day
care home that is located in a geo-
graphic area, as defined by the
Secretary based on census data, in
which at least 50 percent of the
children residing in the area are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9;
‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or re-
duced price school meals under
this Act or the Child Nutrition
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Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the income eligibility guidelines
for free or reduced price meals
under section 9 and whose income
is verified by the sponsoring orga-
nization of the home under regu-
lations established by the Sec-
retary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier I
family or group day care home shall be
provided reimbursement factors under
this clause without a requirement for
documentation of the costs described in
clause (i), except that reimbursement
shall not be provided under this
subclause for meals or supplements
served to the children of a person act-
ing as a family or group day care
home provider unless the children meet
the income eligibility guidelines for
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free or reduced price meals under sec-
tion 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reimburse-
ment factors applied to a home referred
to in subclause (II) shall be the factors
in effect on the date of enactment of
this subclause.
‘‘(IV) ADJUSTMENTS.—The reim-
bursement factors under this subpara-
graph shall be adjusted on August 1,
1996, July 1, 1997, and each July 1
thereafter, to reflect changes in the
Consumer Price Index for food at home
for the most recent 12-month period for
which the data are available. The re-
imbursement factors under this sub-
paragraph shall be rounded to the
nearest lower cent increment and based
on the unrounded adjustment in effect
on June 30 of the preceding school
year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
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‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a fam-
ily or group day care home that
does not meet the criteria set forth
in clause (ii)(I), the reimburse-
ment factors shall be 90 cents for
lunches and suppers, 25 cents for
breakfasts, and 10 cents for sup-
plements.
‘‘(bb) 
ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-month
period for which the data are
available. The reimbursement fac-
tors under this item shall be
rounded down to the nearest lower
cent increment and based on the
unrounded adjustment for the pre-
ceding 12-month period.
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‘‘(cc) 
REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for documenta-
tion of the costs described in
clause (i), except that reimburse-
ment shall not be provided under
this subclause for meals or supple-
ments served to the children of a
person acting as a family or
group day care home provider un-
less the children meet the income
eligibility guidelines for free or re-
duced price meals under section 9.
‘‘(II) OTHER FACTORS.—A family
or group day care home that does not
meet the criteria set forth in clause
(ii)(I) may elect to be provided reim-
bursement factors determined in ac-
cordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
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supplements served under this
subsection to children who are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9, the family
or group day care home shall be
provided reimbursement factors
set by the Secretary in accordance
with clause (ii)(III).
‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes do not meet the income eli-
gibility guidelines, the family or
group day care home shall be pro-
vided reimbursement factors in
accordance with subclause (I).
‘‘(III) INFORMATION AND DETER-
MINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
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scribed in subclause (II), the fam-
ily or group day care home spon-
soring organization serving the
home shall collect the necessary
income information, as deter-
mined by the Secretary, from any
parent or other caretaker to make
the determinations specified in
subclause (II) and shall make the
determinations 
in 
accordance
with rules prescribed by the Sec-
retary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
participating in or subsidized
under, or a child with a parent
participating in or subsidized
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the eligibility standard for free or
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reduced price meals under section
9 to be a child who is a member
of a household whose income meets
the income eligibility guidelines
under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii)(III)
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not to
have income statements collected
from parents or other caretakers.
‘‘(IV) SIMPLIFIED
MEAL
COUNT-
ING
AND
REPORTING
PROCEDURES.—
The Secretary shall prescribe sim-
plified meal counting and reporting
procedures for use by a family or
group day care home that elects to
claim the factors under subclause (II)
and by a family or group day care
home sponsoring organization that
sponsors the home. The procedures the
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Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the num-
ber of meals served that are to be
reimbursed in accordance with the
reimbursement factors prescribed
under clause (ii)(III) and an an-
nual percentage of the number of
meals served that are to be reim-
bursed in accordance with the re-
imbursement 
factors 
prescribed
under subclause (I), based on the
family income of children enrolled
in the home in a specified month
or other period.
‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the per-
centage of children in the home
whose households have incomes
that meet the income eligibility
guidelines under section 9, with
each such reimbursement category
carrying a set of reimbursement
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factors such as the factors pre-
scribed under clause (ii)(III) or
subclause (I) or factors established
within the range of factors pre-
scribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
‘‘(V) MINIMUM VERIFICATION RE-
QUIREMENTS.—The Secretary may es-
tablish any necessary minimum ver-
ification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE
TO FAMILY OR GROUP DAY CARE HOMES.—Section
17(f)(3) of the Act is amended by adding at the end
the following:
‘‘(D) GRANTS TO STATES TO PROVIDE AS-
SISTANCE
TO
FAMILY
OR
GROUP
DAY
CARE
HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) 
RESERVATION.—From
amounts made available to carry out
this section, the Secretary shall reserve
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$5,000,000 of the amount made avail-
able for fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary
shall use the funds made available
under subclause (I) to provide grants
to States for the purpose of provid-
ing—
‘‘(aa) assistance, including
grants, to family and day care
home 
sponsoring 
organizations
and other appropriate organiza-
tions, in securing and providing
training, 
materials, 
automated
data processing assistance, and
other assistance for the staff of the
sponsoring organizations; and
‘‘(bb) training and other as-
sistance to family and group day
care homes in the implementation
of the amendment to subpara-
graph 
(A) 
made 
by 
section
12907(e)(1) of the Balanced Budg-
et Act of 1995.
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‘‘(ii) 
ALLOCATION.—The 
Secretary
shall allocate from the funds reserved under
clause (i)(I)—
‘‘(I) $30,000 in base funding to
each State; and
‘‘(II) 
any 
remaining 
amount
among the States, based on the number
of family day care homes participating
in the program in a State during fis-
cal year 1994 as a percentage of the
number of all family day care homes
participating in the program during
fiscal year 1994.
‘‘(iii) RETENTION OF FUNDS.—Of the
amount of funds made available to a State
for fiscal year 1996 under clause (i), the
State may retain not to exceed 30 percent
of the amount to carry out this subpara-
graph.
‘‘(iv) ADDITIONAL
PAYMENTS.—Any
payments received under this subparagraph
shall be in addition to payments that a
State receives under subparagraph (A).’’.
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(3) PROVISION OF DATA.—Section 17(f)(3) of the
Act (as amended by paragraph (2)) is further amend-
ed by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANIZA-
TIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child care food program under
this section data from the most recent de-
cennial census survey or other appropriate
census survey for which the data are avail-
able showing which areas in the State meet
the 
requirements 
of 
subparagraph
(A)(ii)(I)(aa). The State agency shall pro-
vide the data to family or group day care
home sponsoring organizations located in
the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN GENERAL.—A State agen-
cy administering the school lunch pro-
gram under this Act or the school
breakfast program under the Child Nu-
trition Act of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved family
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or group day care home sponsoring or-
ganizations a list of schools serving ele-
mentary school children in the State in
which not less than 1⁄2 of the children
enrolled are certified to receive free or
reduced price meals. The State agency
shall collect the data necessary to cre-
ate the list annually and provide the
list on a timely basis to any approved
family or group day care home spon-
soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
tier I family or group day care home
under subparagraph (A)(ii)(I), the
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring or-
ganization, shall use the most current
available data at the time of the deter-
mination.
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‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a deter-
mination that a family or group day care
home is located in an area that qualifies the
home as a tier I family or group day care
home (as the term is defined in subpara-
graph (A)(ii)(I)), shall be in effect for 3
years (unless the determination is made on
the basis of census data, in which case the
determination shall remain in effect until
more recent census data are available) un-
less the State agency determines that the
area in which the home is located no longer
qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the Act is amended by inserting ‘‘except as pro-
vided in subsection (f)(3),’’ after ‘‘For purposes of this
section,’’ each place it appears in paragraphs (1), (2),
and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is
amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the
third and fourth sentences; and
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(B) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘(i)’’;
(II) in the first sentence, by strik-
ing ‘‘and expansion funds’’ and all
that follows through ‘‘rural areas’’;
(III) by striking the second sen-
tence; and
(IV) by striking ‘‘and expansion
funds’’ each place it appears; and
(ii) by striking clause (ii); and
(2) by striking paragraph (4).
(g) ELIMINATION OF STATE PAPERWORK AND OUT-
REACH BURDEN.—Section 17 of the Act is amended by
striking subsection (k) and inserting the following:
‘‘(k) TRAINING
AND
TECHNICAL
ASSISTANCE.—A
State participating in the program established under this
section shall provide sufficient training, technical assist-
ance, and monitoring to facilitate effective operation of the
program. The Secretary shall assist the State in developing
plans to fulfill the requirements of this subsection.’’.
(h) MODIFICATION
OF ADULT CARE FOOD PRO-
GRAM.—Section 17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
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(A) by striking ‘‘adult day care centers’’
and inserting ‘‘day care centers for chronically
impaired disabled persons’’ ; and
(B) by striking ‘‘to persons 60 years of age
or older or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’
and inserting ‘‘day care center for chron-
ically impaired disabled persons’’; and
(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and in-
serting ‘‘persons’’; and
(III) by striking ‘‘or persons 60
years of age or older’’; and
(B) in subparagraph (B), by striking
‘‘adult day care services’’ and inserting ‘‘day
care services for chronically impaired disabled
persons’’.
(i) UNNEEDED PROVISIONS.—Section 17 of the Act is
amended—
(1) by striking subsections (b) and (q);
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(2) by redesignating subsections (c) through (p),
as so amended, as subsections (b) through (o), respec-
tively; and
(3) in subsection (e), as redesignated by para-
graph (2)—
(A) in paragraph (2)(A), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’; and
(B) in paragraph (3)(C), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsection (c)’’.
(j) CONFORMING AMENDMENTS.—
(1) Section 11(a)(3)(A)(iv) of the Act (42 U.S.C.
1759a(a)(3)(A)(iv)) is amended by striking ‘‘17(c)’’
and inserting ‘‘17(b)’’.
(2) Section 17A(c) of the Act (42 U.S.C.
1766a(c)) is amended by striking ‘‘17(c)(3)’’ and in-
serting ‘‘17(b)(3)’’.
(3) Section 17B(f) of the Act (42 U.S.C.
1766b(f)) is amended—
(A) in the subsection heading, by striking
‘‘AND ADULT’’; and
(B) in paragraph (1), by striking ‘‘and
adult’’.
(4) Section 18(e)(3)(B) of the Act (42 U.S.C.
1769(e)(3)(B)) is amended by striking ‘‘and adult’’.
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(5) Section 25(b)(1)(C) of the Act (42 U.S.C.
1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.
(6) Section 3(1) of the Healthy Meals for
Healthy Americans Act of 1994 (Public Law 103–
448) is amended by striking ‘‘and adult’’.
(k) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
become effective on the date of enactment of this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The amendments made by para-
graphs (1), (3), and (4) of subsection (e) shall become
effective on August 1, 1996.
(3) REGULATIONS.—
(A) INTERIM REGULATIONS.—Not later than
February 1, 1996, the Secretary shall issue in-
terim regulations to implement—
(i) the amendments made by para-
graphs (1), (3), and (4) of subsection (e);
and
(ii) section 17(f)(3)(C) of the National
School 
Lunch 
Act 
(42 
U.S.C.
1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than
August 1, 1996, the Secretary shall issue final
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regulations to implement the provisions of law
referred to in subparagraph (A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM
PARTICIPATION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture,
in conjunction with the Secretary of Health and
Human Services, shall study the impact of the
amendments made by this section on—
(A) the number of family day care homes
participating in the child care food program es-
tablished under section 17 of the National School
Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsor-
ing organizations participating in the program;
(C) the number of day care homes that are
licensed, certified, registered, or approved by
each State in accordance with regulations issued
by the Secretary;
(D) the rate of growth of the numbers re-
ferred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of
meals served in family day care homes that—
(i) received reimbursement under the
program prior to the amendments made by
this section but do not receive reimburse-
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ment after the amendments made by this
section; or
(ii) received full reimbursement under
the program prior to the amendments made
by this section but do not receive full reim-
bursement after the amendments made by
this section; and
(F) the proportion of low-income children
participating in the program prior to the
amendments made by this section and the pro-
portion of low-income children participating in
the program after the amendments made by this
section.
(2) REQUIRED DATA.—Each State agency par-
ticipating in the child care food program under sec-
tion 17 of the National School Lunch Act (42 U.S.C.
1766) shall submit to the Secretary data on—
(A) the number of family day care homes
participating in the program on July 31, 1996,
and July 31, 1997;
(B) the number of family day care homes li-
censed, certified, registered, or approved for serv-
ice on July 31, 1996, and July 31, 1997; and
(C) such other data as the Secretary may
require to carry out this subsection.
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SEC. 12908. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the
National School Lunch Act (42 U.S.C. 1769(d)) is amend-
ed—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting
‘‘may’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of
fiscal years 1997 and 1998.’’.
SEC. 12909. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42
U.S.C. 1769g) is repealed.
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CHAPTER 2—CHILD NUTRITION ACT
SEC. 12921. SPECIAL MILK PROGRAM.
(a) IN GENERAL.—Section 3(a) of the Child Nutrition
Act of 1966 (42 U.S.C. 1772(a)) is amended—
(1) in paragraph (3), by striking ‘‘the Trust Ter-
ritory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth of the Northern Mariana Islands’’; and
(2) by striking paragraph (8) and inserting the
following:
‘‘(8) ADJUSTMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in this paragraph, in the case of each
school year, the Secretary shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
unrounded adjustment for the preceding
school year;
‘‘(ii) adjust the resulting amount in
accordance with paragraph (7); and
‘‘(iii) round the result to the nearest
lower cent increment.
‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—
On January 1, 1996, the Secretary shall adjust
the minimum rate for the remainder of the
school year by rounding the previously estab-
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lished minimum rate to the nearest lower cent
increment.
‘‘(C) ADJUSTMENT FOR 24-MONTH PERIOD
BEGINNING JULY 1, 1996.—In the case of the 24-
month period beginning July 1, 1996, the mini-
mum rate shall be the same as the minimum
rate in effect on June 30, 1996.
‘‘(D) ADJUSTMENT FOR SCHOOL YEAR BE-
GINNING JULY 1, 1998.—In the case of the school
year beginning July 1, 1998, the Secretary
shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
unrounded adjustment for the minimum
rate for the school year beginning July 1,
1995;
‘‘(ii) adjust the resulting amount to re-
flect changes in the Producer Price Index
for Fresh Processed Milk published by the
Bureau of Labor Statistics of the Depart-
ment of Labor for the most recent 12-month
period for which the data are available; and
‘‘(iii) round the result to the nearest
lower cent increment.’’.
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 12922. FREE AND REDUCED PRICE BREAKFASTS.
(a) IN GENERAL.—Section 4(b) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(b)) is amended—
(1) in the second sentence of paragraph (1)(B),
by striking ‘‘, adjusted to the nearest one-fourth cent’’
and inserting ‘‘(as adjusted pursuant to section 11(a)
of the National School Lunch Act (42 U.S.C.
1759a(a))’’; and
(2) in paragraph (2)(B)(ii)—
(A) by striking ‘‘nearest one-fourth cent’’
and inserting ‘‘nearest lower cent increment for
the applicable school year’’; and
(B) by inserting before the period at the end
the following: ‘‘, and the adjustment required by
this clause shall be based on the unrounded ad-
justment for the preceding school year’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on July 1, 1996.
SEC. 12923. CONFORMING REIMBURSEMENT FOR PAID
BREAKFASTS AND LUNCHES.
(a) IN
GENERAL.—The last sentence of section
4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)(B)) is amended by striking ‘‘8.25 cents’’ and all
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that follows through ‘‘Act)’’ and inserting ‘‘the same as the
national average lunch payment for paid meals established
under section 4(b) of the National School Lunch Act (42
U.S.C. 1753(b))’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on January 1, 1996.
SEC. 12924. SCHOOL BREAKFAST PROGRAM AUTHORIZA-
TION.
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) is amended by striking subsections (f) and (g).
SEC. 12925. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
Section 15 of the Child Nutrition Act of 1966 (42
U.S.C. 1784) is amended—
(1) in paragraph (1), by striking ‘‘the Trust Ter-
ritory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth of the Northern Mariana Islands’’; and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting
‘‘and’’ at the end; and
(B) by striking ‘‘, and (C)’’ and all that fol-
lows through ‘‘Governor of Puerto Rico’’.
SEC. 12926. NUTRITION EDUCATION AND TRAINING.
(a) USE OF FUNDS.—Section 19(f) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1788(f)) is amended—
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(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through
(xix);
(iii) 
by 
redesignating 
clauses 
(i)
through (viii) and (xx) as subparagraphs
(A) through (H) and (I), respectively; and
(iv) in subparagraph (H), as so redes-
ignated, by inserting ‘‘and’’ at the end;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as para-
graph (2).
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
19(i) of the Act is amended—
(1) in the first sentence of paragraph (2)(A), by
striking ‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(3) by inserting after paragraph (2) the follow-
ing:
‘‘(2) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized to
be appropriated to carry out this section
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$10,000,000 for each of fiscal years 1997 through
2002.
‘‘(B) GRANTS.—
‘‘(i) IN
GENERAL.—Grants to each
State from the amounts made available
under subparagraph (A) shall be based on a
rate of 50 cents for each child enrolled in
schools or institutions within the State, ex-
cept that no State shall receive an amount
less than $75,000 per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the
amount made available for any fiscal year
is insufficient to pay the amount to which
each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’.
Subtitle J—Food Stamps and
Commodity Distribution
SEC. 13001. SHORT TITLE.
This subtitle may be cited as the ‘‘Food Stamp Reform
and Commodity Distribution Act of 1995’’.
CHAPTER 1—FOOD STAMP PROGRAM
SEC. 13011. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C.
2012(c)) is amended by striking ‘‘Except as provided’’ and
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all that follows and inserting the following: ‘‘The certifi-
cation period shall not exceed 12 months, except that the
certification period may be up to 24 months if all adult
household members are elderly or disabled. A State agency
shall have at least 1 contact with each certified household
every 12 months.’’.
SEC. 13012. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ‘‘or type of certificate’’ and
inserting ‘‘type of certificate, authorization card, cash or
check issued in lieu of a coupon, or an access device, includ-
ing an electronic benefit transfer card or personal identi-
fication number,’’.
SEC. 13013. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(i)) is amended by striking
‘‘(who are not themselves parents living with their children
or married and living with their spouses)’’.
SEC. 13014. OPTIONAL ADDITIONAL CRITERIA FOR SEPA-
RATE HOUSEHOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.
2012(i)) is amended by inserting after the third sentence
the following: ‘‘Notwithstanding the preceding sentences, a
State may establish criteria that prescribe when individuals
who live together, and who would be allowed to participate
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as separate households under the preceding sentences, shall
be considered a single household, without regard to the com-
mon purchase of food and preparation of meals.’’.
SEC. 13015. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting
the following: ‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting
the following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all
that follows through the end of the subsection and in-
serting the following: ‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1
thereafter, adjust the cost of the diet to reflect the cost
of the diet, in the preceding June, and round the re-
sult to the nearest lower dollar increment for each
household size, except that on October 1, 1996, the
Secretary may not reduce the cost of the diet in effect
on September 30, 1996.’’.
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SEC. 13016. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7
U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 13017. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)) is amended by striking ‘‘(b) The Secretary’’ and
inserting the following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise
provided in this Act, the Secretary’’.
SEC. 13018. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)(7)) is amended by striking ‘‘21’’ and insert-
ing ‘‘19’’.
SEC. 13019. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(d)) is amended by striking para-
graph (11) and inserting the following: ‘‘(11) a 1-time pay-
ment or allowance made under a Federal or State law for
the costs of weatherization or emergency repair or replace-
ment of an unsafe or inoperative furnace or other heating
or cooling device,’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is
amended—
(A) in paragraph (1)—
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(i) in subparagraph (A), by striking
‘‘plan for aid to families with dependent
children approved’’ and inserting ‘‘program
funded’’; and
(ii) in subparagraph (B), by striking
‘‘, not including energy or utility-cost as-
sistance,’’;
(B) in paragraph (2), by striking subpara-
graph (C) and inserting the following:
‘‘(C) a payment or allowance described in sub-
section (d)(11);’’; and
(C) by adding at the end the following:
‘‘(4) THIRD
PARTY
ENERGY
ASSISTANCE
PAY-
MENTS.—
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For
purposes of subsection (d)(1), a payment made
under a Federal or State law to provide energy
assistance to a household shall be considered
money payable directly to the household.
‘‘(B) ENERGY ASSISTANCE EXPENSES.—For
purposes of subsection (e)(7), an expense paid on
behalf of a household under a Federal or State
law to provide energy assistance shall be consid-
ered an out-of-pocket expense incurred and paid
by the household.’’.
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(2) Section 2605(f) of the Low-Income Home En-
ergy Assistance Act of 1981 (42 U.S.C. 8624(f)) is
amended—
(A) by striking ‘‘(f)(1) Notwithstanding’’
and inserting ‘‘(f) Notwithstanding’’;
(B) in paragraph (1), by striking ‘‘food
stamps,’’; and
(C) by striking paragraph (2).
SEC. 13020. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5 of the Food Stamp Act
of 1977 (7 U.S.C. 2014) is amended by striking subsection
(e) and inserting the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD
DEDUCTION.—The Secretary
shall allow a standard deduction for each household
in the 48 contiguous States and the District of Co-
lumbia, Alaska, Hawaii, Guam, and the Virgin Is-
lands of the United States of $134, $229, $189, $269,
and $118, respectively.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) DEFINITION OF EARNED INCOME.—In
this paragraph, the term ‘earned income’ does
not include income excluded by subsection (d) or
any portion of income earned under a work
supplementation or support program, as defined
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under section 16(b), that is attributable to public
assistance.
‘‘(B) DEDUCTION.—Except as provided in
subparagraph (C), a household with earned in-
come shall be allowed a deduction of 20 percent
of all earned income (other than income excluded
by subsection (d)) to compensate for taxes, other
mandatory deductions from salary, and work ex-
penses.
‘‘(C) EXCEPTION.—The deduction described
in subparagraph (B) shall not be allowed with
respect to determining an overissuance due to the
failure of a household to report earned income in
a timely manner.
‘‘(3) DEPENDENT CARE DEDUCTION.—
‘‘(A) IN
GENERAL.—A household shall be
entitled, with respect to expenses (other than ex-
cluded expenses described in subparagraph (B))
for dependent care, to a dependent care deduc-
tion, the maximum allowable level of which shall
be $200 per month for each dependent child
under 2 years of age and $175 per month for
each other dependent, for the actual cost of pay-
ments necessary for the care of a dependent if the
care enables a household member to accept or
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continue employment, or training or education
that is preparatory for employment.
‘‘(B) EXCLUDED EXPENSES.—The excluded
expenses referred to in subparagraph (A) are—
‘‘(i) expenses paid on behalf of the
household by a third party;
‘‘(ii) amounts made available and ex-
cluded for the expenses referred to in sub-
paragraph (A) under subsection (d)(3); and
‘‘(iii) expenses that are paid under sec-
tion 6(d)(4).
‘‘(4) DEDUCTION
FOR
CHILD
SUPPORT
PAY-
MENTS.—
‘‘(A) IN GENERAL.—A household shall be en-
titled to a deduction for child support payments
made by a household member to or for an indi-
vidual who is not a member of the household if
the household member is legally obligated to
make the payments.
‘‘(B) 
METHODS
FOR
DETERMINING
AMOUNT.—The Secretary may prescribe by regu-
lation the methods, including calculation on a
retrospective basis, that a State agency shall use
to determine the amount of the deduction for
child support payments.
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‘‘(5) HOMELESS SHELTER ALLOWANCE.—A State
agency may develop a standard homeless shelter al-
lowance, which shall not exceed $139 per month, for
such expenses as may reasonably be expected to be in-
curred by households in which all members are home-
less individuals but are not receiving free shelter
throughout the month. A State agency that develops
the allowance may use the allowance in determining
eligibility and allotments for the households, except
that the State agency may prohibit the use of the al-
lowance for households with extremely low shelter
costs.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household containing
an elderly or disabled member shall be entitled,
with respect to expenses other than expenses paid
on behalf of the household by a third party, to
an excess medical expense deduction for the por-
tion of the actual costs of allowable medical ex-
penses, incurred by the elderly or disabled mem-
ber, exclusive of special diets, that exceeds $35
per month.
‘‘(B) METHOD OF CLAIMING DEDUCTION.—
‘‘(i) IN
GENERAL.—A State agency
shall offer an eligible household under sub-
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paragraph (A) a method of claiming a de-
duction for recurring medical expenses that
are initially verified under the excess medi-
cal expense deduction in lieu of submitting
information or verification on actual ex-
penses on a monthly basis.
‘‘(ii) METHOD.—The method described
in clause (i) shall—
‘‘(I) be designed to minimize the
burden for the eligible elderly or dis-
abled household member choosing to de-
duct the recurrent medical expenses of
the member pursuant to the method;
‘‘(II) rely on reasonable estimates
of the expected medical expenses of the
member for the certification period (in-
cluding changes that can be reasonably
anticipated based on available infor-
mation about the medical condition of
the member, public or private medical
insurance coverage, and the current
verified medical expenses incurred by
the member); and
‘‘(III) not require further report-
ing or verification of a change in med-
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ical expenses if such a change has been
anticipated for the certification period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
‘‘(A) IN
GENERAL.—A household shall be
entitled, with respect to expenses other than ex-
penses paid on behalf of the household by a third
party, to an excess shelter expense deduction to
the extent that the monthly amount expended by
a household for shelter exceeds an amount equal
to 50 percent of monthly household income after
all other applicable deductions have been al-
lowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—
In the case of a household that does not contain
an elderly or disabled individual, the excess shel-
ter expense deduction shall not exceed—
‘‘(i) in the 48 contiguous States and
the District of Columbia, $247 per month;
and
‘‘(ii) in Alaska, Hawaii, Guam, and
the Virgin Islands of the United States,
$429, $353, $300, and $182 per month, re-
spectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
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‘‘(i) IN GENERAL.—In computing the
excess shelter expense deduction, a State
agency may use a standard utility allow-
ance in accordance with regulations pro-
mulgated by the Secretary, except that a
State agency may use an allowance that
does not fluctuate within a year to reflect
seasonal variations.
‘‘(ii) RESTRICTIONS ON HEATING AND
COOLING
EXPENSES.—An allowance for a
heating or cooling expense may not be used
in the case of a household that—
‘‘(I) does not incur a heating or
cooling expense, as the case may be;
‘‘(II) does incur a heating or cool-
ing expense but is located in a public
housing unit that has central utility
meters and charges households, with re-
gard to the expense, only for excess
utility costs; or
‘‘(III) shares the expense with,
and lives with, another individual not
participating in the food stamp pro-
gram, another household participating
in the food stamp program, or both,
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unless the allowance is prorated be-
tween the household and the other indi-
vidual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) IN GENERAL.—A State agen-
cy may make the use of a standard
utility allowance mandatory for all
households with qualifying utility costs
if—
‘‘(aa) the State agency has
developed 1 or more standards
that include the cost of heating
and cooling and 1 or more stand-
ards that do not include the cost
of heating and cooling; and
‘‘(bb) the Secretary finds that
the standards will not result in
an increased cost to the Secretary.
‘‘(II) HOUSEHOLD ELECTION.—A
State agency that has not made the use
of a standard utility allowance man-
datory under subclause (I) shall allow
a household to switch, at the end of a
certification period, between the stand-
ard utility allowance and a deduction
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based on the actual utility costs of the
household.
‘‘(iv) AVAILABILITY OF ALLOWANCE TO
RECIPIENTS OF ENERGY ASSISTANCE.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), if a State agency elects
to use a standard utility allowance
that reflects heating or cooling costs,
the standard utility allowance shall be
made available to households receiving
a payment, or on behalf of which a
payment is made, under the Low-In-
come Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) or other
similar energy assistance program, if
the household still incurs out-of-pocket
heating or cooling expenses in excess of
any assistance paid on behalf of the
household to an energy provider.
‘‘(II) SEPARATE ALLOWANCE.—A
State agency may use a separate
standard utility allowance for house-
holds on behalf of which a payment de-
scribed in subclause (I) is made, but
may not be required to do so.
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‘‘(III) STATES NOT ELECTING TO
USE SEPARATE ALLOWANCE.—A State
agency that does not elect to use a sep-
arate allowance but makes a single
standard utility allowance available to
households incurring heating or cooling
expenses (other than a household de-
scribed in subclause (I) or (II) of sub-
paragraph (C)(ii)) may not be re-
quired to reduce the allowance due to
the provision (directly or indirectly) of
assistance 
under 
the 
Low-Income
Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.).
‘‘(IV) 
PRORATION
OF
ASSIST-
ANCE.—For the purpose of the food
stamp program, assistance provided
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621
et seq.) shall be considered to be pro-
rated over the entire heating or cooling
season for which the assistance was
provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of
the Act (7 U.S.C. 2020(e)(3)) is amended by striking ‘‘.
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Under rules prescribed’’ and all that follows through ‘‘veri-
fies higher expenses’’.
SEC. 13021. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by striking paragraph (2) and insert-
ing the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this paragraph, the Secretary shall,
in prescribing inclusions in, and exclusions
from, financial resources, follow the regulations
in force as of June 1, 1982 (other than those re-
lating to licensed vehicles and inaccessible re-
sources).
‘‘(B) ADDITIONAL INCLUDED ASSETS.—The
Secretary shall include in financial resources—
‘‘(i) any boat, snowmobile, or airplane
used for recreational purposes;
‘‘(ii) any vacation home;
‘‘(iii) any mobile home used primarily
for vacation purposes;
‘‘(iv) subject to subparagraph (C), any
licensed vehicle that is used for household
transportation or to obtain or continue em-
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ployment to the extent that the fair market
value of the vehicle exceeds $4,600; and
‘‘(v) any savings or retirement account
(including an individual account), regard-
less of whether there is a penalty for early
withdrawal.
‘‘(C) EXCLUDED VEHICLES.—A vehicle (and
any other property, real or personal, to the ex-
tent the property is directly related to the main-
tenance or use of the vehicle) shall not be in-
cluded in financial resources under this para-
graph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) is necessary for the transpor-
tation of a physically disabled household
member; or
‘‘(iii) is depended on by a household to
carry fuel for heating or water for home use
and provides the primary source of fuel or
water, respectively, for the household.’’.
SEC. 13022. VENDOR PAYMENTS FOR TRANSITIONAL HOUS-
ING COUNTED AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2014(k)(2)) is amended—
(1) by striking subparagraph (F); and
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(2) by redesignating subparagraphs (G) and (H)
as subparagraphs (F) and (G), respectively.
SEC. 13023. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and
inserting ‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and in-
serting ‘‘2 years’’.
SEC. 13024. DISQUALIFICATION OF CONVICTED INDIVID-
UALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the end;
(2) in subclause (III), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the follow-
ing:
‘‘(IV) a conviction of an offense under sub-
section (b) or (c) of section 15 involving an item
covered by subsection (b) or (c) of section 15 hav-
ing a value of $500 or more.’’.
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SEC. 13025. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1)
Unless otherwise exempted by the provisions’’ and all that
follows through the end of paragraph (1) and inserting the
following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to partici-
pate in the food stamp program if the individ-
ual—
‘‘(i) refuses, at the time of application
and every 12 months thereafter, to register
for employment in a manner prescribed by
the Secretary;
‘‘(ii) refuses without good cause to par-
ticipate in an employment and training
program under paragraph (4), to the extent
required by the State agency;
‘‘(iii) refuses without good cause to ac-
cept an offer of employment, at a site or
plant not subject to a strike or lockout at
the time of the refusal, at a wage not less
than the higher of—
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‘‘(I) the applicable Federal or
State minimum wage; or
‘‘(II) 80 percent of the wage that
would have governed had the minimum
hourly rate under section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) been applicable to
the offer of employment;
‘‘(iv) refuses without good cause to pro-
vide a State agency with sufficient informa-
tion to allow the State agency to determine
the employment status or the job availabil-
ity of the individual;
‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, the individual is
working less than 30 hours per week;
or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD
INELIGIBILITY.—If an
individual who is the head of a household be-
comes ineligible to participate in the food stamp
program under subparagraph (A), the household
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shall, at the option of the State agency, become
ineligible to participate in the food stamp pro-
gram for a period, determined by the State agen-
cy, that does not exceed the lesser of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST VIOLATION.—The first time
that an individual becomes ineligible to
participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
‘‘(ii) SECOND VIOLATION.—The second
time that an individual becomes ineligible
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to participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 3 months
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 6
months after the date the individual
became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 6 months
after the date the individual became
ineligible;
‘‘(III) a date determined by the
State agency; or
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‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD
CAUSE.—The Secretary
shall determine the meaning of good cause
for the purpose of this paragraph.
‘‘(ii) VOLUNTARY QUIT.—The Secretary
shall determine the meaning of voluntarily
quitting and reducing work effort for the
purpose of this paragraph.
‘‘(iii) 
DETERMINATION
BY
STATE
AGENCY.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II) and clauses (i) and (ii),
a State agency shall determine—
‘‘(aa) the meaning of any
term in subparagraph (A);
‘‘(bb) the procedures for de-
termining whether an individual
is in compliance with a require-
ment under subparagraph (A);
and
‘‘(cc) whether an individual
is in compliance with a require-
ment under subparagraph (A).
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‘‘(II) NOT LESS RESTRICTIVE.—A
State agency may not determine a
meaning, procedure, or determination
under subclause (I) to be less restrictive
than a comparable meaning, proce-
dure, or determination under a State
program funded under part A of title
IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERN-
MENT.—For the purpose of subparagraph
(A)(v), an employee of the Federal Govern-
ment, a State, or a political subdivision of
a State, who is dismissed for participating
in a strike against the Federal Government,
the State, or the political subdivision of the
State shall be considered to have voluntarily
quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSE-
HOLD.—
‘‘(I) IN GENERAL.—For the pur-
pose of this paragraph, the State agen-
cy shall allow the household to select
any adult parent of a child in the
household as the head of the household
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if all adult household members making
application under the food stamp pro-
gram agree to the selection.
‘‘(II) TIME FOR MAKING DESIGNA-
TION.—A household may designate the
head of the household under subclause
(I) each time the household is certified
for participation in the food stamp
program, but may not change the des-
ignation during a certification period
unless there is a change in the com-
position of the household.
‘‘(vi) CHANGE
IN
HEAD
OF
HOUSE-
HOLD.—If the head of a household leaves the
household during a period in which the
household is ineligible to participate in the
food stamp program under subparagraph
(B)—
‘‘(I) the household shall, if other-
wise eligible, become eligible to partici-
pate in the food stamp program; and
‘‘(II) if the head of the household
becomes the head of another household,
the household that becomes headed by
the individual shall become ineligible
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to participate in the food stamp pro-
gram for the remaining period of ineli-
gibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the
Act (7 U.S.C. 2026(b)(2)) is amended by striking
‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (7 U.S.C. 2029) is
amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a house-
hold may become ineligible under section 6(d)(1) to partici-
pate in the food stamp program for failing to comply with
this section.’’.
SEC. 13026. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)(2)) is amended by striking subparagraph
(B) and inserting the following: ‘‘(B) a parent or other
member of a household with responsibility for the care of
(i) a dependent child under the age of 6 or any lower age
designated by the State agency that is not under the age
of 1, or (ii) an incapacitated person;’’.
SEC. 13027. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
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(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1,
1987, each’’ and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills, train-
ing,’’; and
(C) by adding at the end the following:
‘‘Each component of an employment and train-
ing program carried out under this paragraph
shall be delivered through a statewide workforce
development system, unless the component is not
available locally through the statewide workforce
development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ‘‘, except that the State agency shall
retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II);
and
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(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child care’’;
and
(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
(4) in subparagraph (E), by striking the third
sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii) Fed-
eral funds’’ and inserting ‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
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cial Security Act’’ and inserting the following: ‘‘), ex-
cept that no such payment or reimbursement shall ex-
ceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION
ON
FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to carry
out this paragraph (including under subpara-
graph (I)) for participants who are receiving
benefits under a State program funded under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount
of funds the State agency used in fiscal year
1995 to carry out this paragraph for partici-
pants who were receiving benefits in fiscal year
1995 under a State program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.).’’;
and
(B) by redesignating subparagraphs (M)
and (N) as subparagraphs (L) and (M), respec-
tively; and
(9) in subparagraph (L), as redesignated by
paragraph (8)(B)—
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(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Secretary’’
and all that follows through the end of paragraph (1) and
inserting the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment
and training programs, the Secretary shall re-
serve for allocation to State agencies from funds
made available for each fiscal year under section
18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $77,000,000;
‘‘(ii) for fiscal year 1997, $80,000,000;
‘‘(iii) for fiscal year 1998, $83,000,000;
‘‘(iv) for fiscal year 1999, $86,000,000;
‘‘(v) for fiscal year 2000, $89,000,000;
‘‘(vi) for fiscal year 2001, $92,000,000;
and
‘‘(vii) 
for 
fiscal 
year 
2002,
$95,000,000.
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‘‘(B) ALLOCATION.—The Secretary shall al-
locate the amounts reserved under subparagraph
(A) among the State agencies using a reasonable
formula (as determined by the Secretary) that
gives consideration to the population in each
State affected by section 6(o).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that the State
agency will not expend all of the funds allo-
cated to the State agency under subpara-
graph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will not
expend as the Secretary considers appro-
priate and equitable.
‘‘(D) 
MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency op-
erating an employment and training program
shall receive not less than $50,000 in each fiscal
year.’’.
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(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2)
of the Act (7 U.S.C. 2025(h)(2)) is amended by inserting
before the period at the end the following: ‘‘, including the
costs for case management and casework to facilitate the
transition from economic dependency to self-sufficiency
through work’’.
(d) REPORTS.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’ and
inserting ‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 13028. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended—
(1) by redesignating subsection (i), as added by
section 12104, as subsection (p); and
(2) by inserting after subsection (h) the follow-
ing:
‘‘(i) COMPARABLE TREATMENT
FOR DISQUALIFICA-
TION.—
‘‘(1) IN GENERAL.—If a disqualification is im-
posed on a member of a household for a failure of the
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member to perform an action required under a Fed-
eral, State, or local law relating to a means-tested
public assistance program, the State agency may im-
pose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES AND PROCEDURES.—If a disquali-
fication is imposed under paragraph (1) for a failure
of an individual to perform an action required under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
IV of the Act to impose the same disqualification
under the food stamp program.
‘‘(3) APPLICATION AFTER DISQUALIFICATION PE-
RIOD.—A member of a household disqualified under
paragraph (1) may, after the disqualification period
has expired, apply for benefits under this Act and
shall be treated as a new applicant, except that a
prior disqualification under subsection (d) shall be
considered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)) is amended—
(1) in paragraph (24), by striking ‘‘and’’ at the
end;
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HR 2491 EAS
(2) in paragraph (25), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in car-
rying out section 6(i); and’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of
the Act (7 U.S.C. 2015(d)(2)(A)) is amended by striking
‘‘that is comparable to a requirement of paragraph (1)’’.
SEC. 13029. DISQUALIFICATION FOR RECEIPT OF MULTIPLE
FOOD STAMP BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 13028, is further amended
by inserting after subsection (i) the following:
‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE
FOOD STAMP BENEFITS.—An individual shall be ineligible
to participate in the food stamp program as a member of
any household for a 10-year period if the individual is
found by a State agency to have made, or is convicted in
a Federal or State court of having made, a fraudulent state-
ment or representation with respect to the identity or place
of residence of the individual in order to receive multiple
benefits simultaneously under the food stamp program.’’.
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SEC. 13030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 13029, is further amended
by inserting after subsection (j) the following:
‘‘(k) DISQUALIFICATION
OF FLEEING FELONS.—No
member of a household who is otherwise eligible to partici-
pate in the food stamp program shall be eligible to partici-
pate in the program as a member of that or any other
household during any period during which the individual
is—
‘‘(1) fleeing to avoid prosecution, or custody or
confinement after conviction, under the law of the
place from which the individual is fleeing, for a
crime, or attempt to commit a crime, that is a felony
under the law of the place from which the individual
is fleeing or that, in the case of New Jersey, is a high
misdemeanor under the law of New Jersey; or
‘‘(2) violating a condition of probation or parole
imposed under a Federal or State law.’’.
SEC. 13031. COOPERATION WITH CHILD SUPPORT AGEN-
CIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 13030, is further amended
by inserting after subsection (k) the following:
‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH CHILD
SUPPORT AGENCIES.—
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‘‘(1) IN
GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natural
or adoptive parent or other individual (collectively re-
ferred to in this subsection as ‘the individual’) who is
living with and exercising parental control over a
child under the age of 18 who has an absent parent
shall be eligible to participate in the food stamp pro-
gram unless the individual cooperates with the State
agency administering the program established under
part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—
Paragraph (1) shall not apply to the individual if
good cause is found for refusing to cooperate, as deter-
mined by the State agency in accordance with stand-
ards prescribed by the Secretary in consultation with
the Secretary of Health and Human Services. The
standards shall take into consideration circumstances
under which cooperation may be against the best in-
terests of the child.
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‘‘(3) FEES.—Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.).
‘‘(m) NON-CUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), a putative
or identified non-custodial parent of a child under the
age of 18 (referred to in this subsection as ‘the indi-
vidual’) shall not be eligible to participate in the food
stamp program if the individual refuses to cooperate
with the State agency administering the program es-
tablished under part D of title IV of the Social Secu-
rity Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
‘‘(A) GUIDELINES.—The Secretary, in con-
sultation with the Secretary of Health and
Human Services, shall develop guidelines on
what constitutes a refusal to cooperate under
paragraph (1).
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‘‘(B) PROCEDURES.—The State agency shall
develop procedures, using guidelines developed
under subparagraph (A), for determining wheth-
er an individual is refusing to cooperate under
paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information collected
by a State agency administering the program estab-
lished under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.) to purposes for which the
information is collected.’’.
SEC. 13032. DISQUALIFICATION RELATING TO CHILD SUP-
PORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 13031, is further amended
by inserting after subsection (m) the following:
‘‘(n) DISQUALIFICATION
FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN GENERAL.—No individual shall be eligi-
ble to participate in the food stamp program as a
member of any household during any month that the
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individual is delinquent in any payment due under
a court order for the support of a child of the individ-
ual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.) to
provide support for the child of the individual.’’.
SEC. 13033. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015), as amended by section 13032, is
further amended by inserting after subsection (n) the follow-
ing:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
‘‘(A) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
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‘‘(C) a program of employment or training
operated or supervised by a State or political
subdivision of a State that meets standards ap-
proved by the Governor of the State, including a
program under section 6(d)(4), other than a job
search program or a job search training pro-
gram.
‘‘(2) WORK REQUIREMENT.—Subject to the other
provisions of this subsection, no individual shall be el-
igible to participate in the food stamp program as a
member of any household if, during the preceding 12-
month period, the individual received food stamp ben-
efits for not less than 4 months during which the in-
dividual did not—
‘‘(A) work 20 hours or more per week, aver-
aged monthly; or
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
more per week, as determined by the State agen-
cy; or
‘‘(C) participate in a program under sec-
tion 20 or a comparable program established by
a State or political subdivision of a State.
‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
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‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child;
‘‘(D) 
otherwise 
exempt 
under 
section
6(d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN
GENERAL.—On the request of a
State agency, the Secretary may waive the ap-
plicability of paragraph (2) to any group of in-
dividuals in the State if the Secretary makes a
determination that the area in which the indi-
viduals reside—
‘‘(i) has an unemployment rate of over
10 percent; or
‘‘(ii) does not have a sufficient number
of jobs to provide employment for the indi-
viduals.
‘‘(B) REPORT.—The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
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‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) IN
GENERAL.—Paragraph (2) shall
cease to apply to an individual if, during a 30-
day period, the individual—
‘‘(i) works 80 or more hours;
‘‘(ii) participates in and complies with
the requirements of a work program for 80
or more hours, as determined by a State
agency; or
‘‘(iii) participates in a program under
section 20 or a comparable program estab-
lished by a State or political subdivision of
a State.
‘‘(B) LIMITATION.—During the subsequent
12-month period, the individual shall be eligible
to participate in the food stamp program for not
more than 4 months during which the individual
does not—
‘‘(i) work 20 hours or more per week,
averaged monthly;
‘‘(ii) participate in and comply with
the requirements of a work program for 20
hours or more per week, as determined by
the State agency; or
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‘‘(iii) participate in a program under
section 20 or a comparable program estab-
lished by a State or political subdivision of
a State.’’.
(b) TRANSITION PROVISION.—Prior to 1 year after the
date of enactment of this Act, the term ‘‘preceding 12-month
period’’ in section 6(o) of the Food Stamp Act of 1977, as
amended by subsection (a), means the preceding period that
begins on the date of enactment of this Act.
SEC. 13034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C.
2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(A) IMPLEMENTATION.—Each State agen-
cy shall implement an electronic benefit transfer
system in which household benefits determined
under section 8(a) or 24 are issued from and
stored in a central databank before October 1,
2002, unless the Secretary provides a waiver for
a State agency that faces unusual barriers to im-
plementing an electronic benefit transfer system.
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‘‘(B) 
TIMELY
IMPLEMENTATION.—State
agencies are encouraged to implement an elec-
tronic benefit transfer system under subpara-
graph (A) as soon as practicable.
‘‘(C) STATE FLEXIBILITY.—Subject to para-
graph (2), a State agency may procure and im-
plement an electronic benefit transfer system
under the terms, conditions, and design that the
State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) commercial electronic funds trans-
fer technology;
‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
‘‘(iii) the need to permit monitoring and
investigations by authorized law enforcement
agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than
April 1, 1992,’’;
(B) in subparagraph (A)—
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(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and in-
serting the following:
‘‘(D)(i) measures to maximize the security
of a system using the most recent technology
available that the State agency considers appro-
priate and cost effective and which may include
personal identification numbers, photographic
identification on electronic benefit transfer cards,
and other measures to protect against fraud and
abuse; and
‘‘(ii) effective not later than 2 years after
the effective date of this clause, to the extent
practicable, measures that permit a system to
differentiate items of food that may be acquired
with an allotment from items of food that may
not be acquired with an allotment.’’;
(D) in subparagraph (G), by striking ‘‘and’’
at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
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‘‘(7) REPLACEMENT OF BENEFITS.—Regulations
issued by the Secretary regarding the replacement of
benefits and liability for replacement of benefits under
an electronic benefit transfer system shall be similar
to the regulations in effect for a paper food stamp is-
suance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agency
may collect a charge for replacement of an electronic
benefit transfer card by reducing the monthly allot-
ment of the household receiving the replacement card.
‘‘(9) 
OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may re-
quire that an electronic benefit card contain a
photograph of 1 or more members of a household.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to ensure
that any other appropriate member of the house-
hold or any authorized representative of the
household may utilize the card.’’.
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SEC. 13035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of
1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall
be adjusted’’ and all that follows through ‘‘$5’’.
SEC. 13036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more than
one month’’.
SEC. 13037. OPTIONAL COMBINED ALLOTMENT FOR EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)) is amended by striking paragraph (3) and insert-
ing the following:
‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EX-
PEDITED HOUSEHOLDS.—A State agency may pro-
vide to an eligible household applying after the 15th
day of a month, in lieu of the initial allotment of the
household and the regular allotment of the household
for the following month, an allotment that is equal to
the total amount of the initial allotment and the first
regular allotment. The allotment shall be provided in
accordance with section 11(e)(3) in the case of a
household that is not entitled to expedited service and
in accordance with paragraphs (3) and (9) of section
11(e) in the case of a household that is entitled to ex-
pedited service.’’.
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SEC. 13038. FAILURE TO COMPLY WITH OTHER MEANS-TEST-
ED PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF
PUBLIC
ASSISTANCE BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a household
are reduced under a Federal, State, or local law relat-
ing to a means-tested public assistance program for
the failure of a member of the household to perform
an action required under the law or program, for the
duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that the
decrease is the result of the reduction; and
‘‘(B) the State agency may reduce the allot-
ment of the household by not more than 25 per-
cent.
‘‘(2) RULES AND PROCEDURES.—If the allotment
of a household is reduced under this subsection for a
failure to perform an action required under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.), the State agency may use the rules and proce-
dures that apply under part A of title IV of the Act
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to reduce the allotment under the food stamp pro-
gram.’’.
SEC. 13039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS
FOR HOUSEHOLDS RESIDING
IN
CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a center for the purpose of a drug or
alcoholic treatment program described in the last sen-
tence of section 3(i), a State agency may provide an
allotment for the individual to—
‘‘(A) the center as an authorized representa-
tive of the individual for a period that is less
than 1 month; and
‘‘(B) the individual, if the individual leaves
the center.
‘‘(2) DIRECT PAYMENT.—A State agency may re-
quire an individual referred to in paragraph (1) to
designate the center in which the individual resides as
the authorized representative of the individual for the
purpose of receiving an allotment.’’.
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SEC. 13040. CONDITION PRECEDENT FOR APPROVAL OF RE-
TAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)) is amended by adding at the end the
following: ‘‘No retail food store or wholesale food concern
of a type determined by the Secretary, based on factors that
include size, location, and type of items sold, shall be ap-
proved to be authorized or reauthorized for participation
in the food stamp program unless an authorized employee
of the Department of Agriculture, a designee of the Sec-
retary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the store
or concern for the purpose of determining whether the store
or concern should be approved or reauthorized, as appro-
priate.’’.
SEC. 13041. AUTHORITY TO ESTABLISH AUTHORIZATION PE-
RIODS.
Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)) is amended by adding at the end the following:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary
shall establish specific time periods during which au-
thorization to accept and redeem coupons, or to re-
deem benefits through an electronic benefit transfer
system, shall be valid under the food stamp pro-
gram.’’.
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SEC. 13042. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C.
2018(c)) is amended—
(1) in the first sentence, by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide written
authorization for the Secretary to verify all relevant
tax filings with appropriate agencies and to obtain
corroborating documentation from other sources so
that the accuracy of information provided by the
stores and concerns may be verified.’’.
SEC. 13043. WAITING PERIOD FOR STORES THAT FAIL TO
MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C.
2018(d)) is amended by adding at the end the following:
‘‘A retail food store or wholesale food concern that is denied
approval to accept and redeem coupons because the store
or concern does not meet criteria for approval established
by the Secretary may not, for at least 6 months, submit
a new application to participate in the program. The Sec-
retary may establish a longer time period under the preced-
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ing sentence, including permanent disqualification, that re-
flects the severity of the basis of the denial.’’.
SEC. 13044. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and
(4) in subparagraph (B), as redesignated by
paragraph (3), by striking ‘‘, (B), or (C)’’.
SEC. 13045. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(10)) is amended by inserting before the
semicolon at the end a period and the following: ‘‘At the
option of a State, at any time prior to a fair hearing deter-
mination under this paragraph, a household may with-
draw, orally or in writing, a request by the household for
the fair hearing. If the withdrawal request is an oral re-
quest, the State agency shall provide a written notice to
the household confirming the withdrawal request and pro-
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viding the household with an opportunity to request a hear-
ing’’.
SEC. 13046. DISQUALIFICATION OF RETAILERS WHO INTEN-
TIONALLY SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C.
2021(b)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be deter-
mined by the Secretary, including permanent dis-
qualification, on the knowing submission of an appli-
cation for the approval or reauthorization to accept
and redeem coupons that contains false information
about a substantive matter that was a part of the ap-
plication.’’.
SEC. 13047. DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION
OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.—
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‘‘(1) IN
GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this Act of an approved retail food store and
a wholesale food concern that is disqualified from ac-
cepting benefits under the special supplemental nutri-
tion program for women, infants, and children estab-
lished under section 17 of the Child Nutrition Act of
1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same length of time as
the disqualification from the program referred to
in paragraph (1);
‘‘(B) may begin at a later date than the dis-
qualification from the program referred to in
paragraph (1); and
‘‘(C) notwithstanding section 14, shall not
be subject to judicial or administrative review.’’.
SEC. 13048. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of
the Food Stamp Act of 1977 (7 U.S.C. 2022) is amended—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
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‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, a State agency shall collect any
overissuance of coupons issued to a household by—
‘‘(A) reducing the allotment of the house-
hold;
‘‘(B) withholding amounts from unemploy-
ment compensation from a member of the house-
hold under subsection (c);
‘‘(C) recovering from Federal pay or a Fed-
eral income tax refund under subsection (d); or
‘‘(D) any other means.
‘‘(2) COST
EFFECTIVENESS.—Paragraph (1)
shall not apply if the State agency demonstrates to
the satisfaction of the Secretary that all of the means
referred to in paragraph (1) are not cost effective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If
a household received an overissuance of coupons with-
out any member of the household being found eligible
to participate in the program under section 6(b)(1)
and a State agency elects to reduce the allotment of
the household under paragraph (1)(A), the State
agency shall not reduce the monthly allotment of the
household under paragraph (1)(A) by an amount in
excess of the greater of—
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‘‘(A) 10 percent of the monthly allotment of
the household; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall collect
an overissuance of coupons issued to a household
under paragraph (1) in accordance with the require-
ments established by the State agency for providing
notice, electing a means of payment, and establishing
a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under sub-
section (b) and except for claims arising from an
error of the State agency,’’ and inserting ‘‘, as
determined under subsection (b)(1),’’; and
(B) by inserting before the period at the end
the following: ‘‘or a Federal income tax refund as
authorized by section 3720A of title 31, United
States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8) of
the Act (7 U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as au-
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thorized by section 3720A of title 31, United States
Code’’.
(c) RETENTION RATE.—Section 16(a) of the Act (7
U.S.C. 2025(a)) is amended by striking ‘‘25 percent during
the period beginning October 1, 1990’’ and all that follows
through ‘‘error of a State agency’’ and inserting the follow-
ing: ‘‘25 percent of the overissuances collected by the State
agency under section 13, except those overissuances arising
from an error of the State agency’’.
SEC. 13049. AUTHORITY TO SUSPEND STORES VIOLATING
PROGRAM REQUIREMENTS PENDING ADMIN-
ISTRATIVE AND JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C.
2023(a)) is amended—
(1) by redesignating the first through seventeenth
sentences as paragraphs (1) through (17), respectively;
and
(2) by adding at the end the following:
‘‘(18) SUSPENSION
OF
STORES
PENDING
RE-
VIEW.—Notwithstanding any other provision of this
subsection, any permanent disqualification of a retail
food store or wholesale food concern under paragraph
(3) or (4) of section 12(b) shall be effective from the
date of receipt of the notice of disqualification. If the
disqualification is reversed through administrative or
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judicial review, the Secretary shall not be liable for
the value of any sales lost during the disqualification
period.’’.
SEC. 13050. LIMITATION OF FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7
U.S.C. 2025(a)(4)) is amended by inserting after the
comma at the end the following: ‘‘but not including recruit-
ment activities,’’.
SEC. 13051. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025) is amended by adding at the end the following:
‘‘(c) WORK SUPPLEMENTATION
OR SUPPORT PRO-
GRAM.—
‘‘(1) DEFINITION
OF
WORK
SUPPLEMENTATION
OR SUPPORT PROGRAM.—In this subsection, the term
‘work supplementation or support program’ means a
program under which, as determined by the Sec-
retary, public assistance (including any benefits pro-
vided under a program established by the State and
the food stamp program) is provided to an employer
to be used for hiring and employing a public assist-
ance recipient who was not employed by the employer
at the time the public assistance recipient entered the
program.
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‘‘(2) PROGRAM.—A State agency may elect to
use an amount equal to the allotment that would oth-
erwise be issued to a household under the food stamp
program, but for the operation of this subsection, for
the purpose of subsidizing or supporting a job under
a work supplementation or support program estab-
lished by the State.
‘‘(3) PROCEDURE.—If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp pro-
gram that contains an individual who is participat-
ing in the work supplementation or support pro-
gram—
‘‘(A) the Secretary shall pay to the State
agency an amount equal to the value of the allot-
ment that the household would be eligible to re-
ceive but for the operation of this subsection;
‘‘(B) the State agency shall expend the
amount received under subparagraph (A) in ac-
cordance with the work supplementation or sup-
port program in lieu of providing the allotment
that the household would receive but for the oper-
ation of this subsection;
‘‘(C) for purposes of—
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‘‘(i) sections 5 and 8(a), the amount
received under this subsection shall be ex-
cluded from household income and resources;
and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to the
household; and
‘‘(D) the household shall not receive an al-
lotment from the State agency for the period
during which the member continues to partici-
pate in the work supplementation or support
program.
‘‘(4) OTHER
WORK
REQUIREMENTS.—No indi-
vidual shall be excused, by reason of the fact that a
State has a work supplementation or support pro-
gram, from any work requirement under section 6(d),
except during the periods in which the individual is
employed under the work supplementation or support
program.
‘‘(5) LENGTH OF PARTICIPATION.—A State agen-
cy shall provide a description of how the public as-
sistance recipients in the program shall, within a spe-
cific period of time, be moved from supplemented or
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supported employment to employment that is not sup-
plemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation
or support program shall not displace the employ-
ment of individuals who are not supplemented or sup-
ported.’’.
SEC. 13052. AUTHORIZATION OF PILOT PROJECTS.
The last sentence of section 17(b)(1)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 13053. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by striking subsection (d) and inserting
the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this subsection, a State may elect
to carry out an employment initiatives program
under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out an employment initiatives pro-
gram under this subsection only if not less than
50 percent of the households that received food
stamp benefits during the summer of 1993 also
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fiscal year, with necessary adjustments on account of
overpayments or underpayments, as determined by
the Secretary.
‘‘(3) SPENDING OF GRANTS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a grant to a State determined
under subsection (m)(1) for a fiscal year may be
expended by the State only in the fiscal year.
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of a grant determined under
subsection (m)(1) for a fiscal year to provide as-
sistance under this section in subsequent fiscal
years, except that the reserved funds may not ex-
ceed 30 percent of the total grant received under
this section for a fiscal year.
‘‘(4) FOOD
ASSISTANCE
AND
ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, not more than
6 percent of the Federal and State funds required to
be expended by a State under this section shall be
used for administrative expenses.
‘‘(5) PROVISION OF FOOD ASSISTANCE.—A State
may provide food assistance under this section in any
manner determined appropriate by the State, such as
electronic benefit transfer limited to food purchases,