‘‘(iii) 
for 
fiscal 
year 
1998,
$81,000,000;
‘‘(iv) 
for 
fiscal 
year 
1999,
$84,000,000;
‘‘(v) 
for 
fiscal 
year 
2000,
$86,000,000;
‘‘(vi) 
for 
fiscal 
year 
2001,
$88,000,000; and
‘‘(vii) 
for 
fiscal 
year 
2002,
$90,000,000.
‘‘(B) ALLOCATION.—The Secretary shall
allocate the amounts reserved under subpara-
graph (A) among the State agencies using a
reasonable formula (as determined by the Sec-
retary) that gives consideration to the popu-
lation 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 al-
located 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 ap-
propriate and equitable.
‘‘(D) MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency
operating an employment and training program
shall receive not less than $50,000 in each fis-
cal year.’’.
(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: ‘‘, in-
cluding 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. 1028. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding at the end
the following:
‘‘(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 member to perform an action required under a
Federal, State, or local law relating to a means-test-
ed public assistance program, the State agency may
impose 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
PERIOD.—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;
(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
carrying 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 strik-
ing ‘‘that is comparable to a requirement of paragraph
(1)’’.
SEC. 1029. 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 1028, is amended by adding
at the end 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
statement 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.’’.
SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 and 1029, is amend-
ed by adding at the end 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. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1030, is
amended by adding at the end the following:
‘‘(l) CUSTODIAL
PARENT’S
COOPERATION
WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natu-
ral or adoptive parent or other individual (collec-
tively referred to in this subsection as ‘the individ-
ual’) who is living with and exercising parental con-
trol over a child under the age of 18 who has an ab-
sent parent shall be eligible to participate in the food
stamp program unless the individual cooperates with
the State agency administering the program estab-
lished under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—
Paragraph (1) shall not apply to the individual if
good cause is found for refusing to cooperate, as de-
termined by the State agency in accordance with
standards prescribed by the Secretary in consulta-
tion with the Secretary of Health and Human Serv-
ices. The standards shall take into consideration cir-
cumstances under which cooperation may be against
the best interests of the child.
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), a puta-
tive or identified noncustodial parent of a child
under the age of 18 (referred to in this subsection
as ‘the individual’) shall not be eligible to participate
in the food stamp program if the individual refuses
to cooperate with the State agency administering the
program established under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
‘‘(A) GUIDELINES.—The Secretary, in con-
sultation with the Secretary of Health and
Human Services, shall develop guidelines on
what constitutes a refusal to cooperate under
paragraph (1).
‘‘(B) PROCEDURES.—The State agency
shall develop procedures, using guidelines devel-
oped under subparagraph (A), for determining
whether an individual is refusing to cooperate
under paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require
the payment of a fee or other cost for services pro-
vided under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information col-
lected by a State agency administering the program
established under part D of title IV of the Social Se-
curity Act (42 U.S.C. 651 et seq.) to purposes for
which the information is collected.’’.
SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUP-
PORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1031, is
amended by adding at the end the following:
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN GENERAL.—At the option of the State
agency, no individual shall be eligible to participate
in the food stamp program as a member of any
household during any month that the individual is
delinquent in any payment due under a court order
for the support of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.)
to provide support for the child of the individ-
ual.’’.
SEC. 1033. WORK REQUIREMENT.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by sections 1028 through 1032, is
amended by adding at the end the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
‘‘(A) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
‘‘(C) a program of employment and train-
ing operated or supervised by a State or politi-
cal subdivision of a State that meets standards
approved by the Governor of the State, includ-
ing a program under section 6(d)(4), other than
a job search program or a job search training
program.
‘‘(2) WORK
REQUIREMENT.—Subject to the
other provisions of this subsection, no individual
shall be eligible to participate in the food stamp pro-
gram as a member of any household if the individual
received after the effective date of this subsection
food stamp benefits for not less than 3 months dur-
ing which the individual did not—
‘‘(A) work 20 hours or more per week,
averaged monthly; or
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
more per week, as determined by the State
agency; or
‘‘(C) participate in a program under sec-
tion 20 or a comparable program established by
a State or political subdivision of a State.
‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child;
‘‘(D) otherwise exempt under section
6(d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN GENERAL.—On the request of a
State agency, the Secretary may waive the ap-
plicability of paragraph (2) to any group of in-
dividuals in the State if the Secretary makes a
determination that the area in which the indi-
viduals reside—
‘‘(i) has an unemployment rate of over
10 percent; or
‘‘(ii) does not have a sufficient num-
ber of jobs to provide employment for the
individuals.
‘‘(B) REPORT.—The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House
of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
‘‘(5) SUBSEQUENT
ELIGIBILITY.—Paragraph
(2) shall cease to apply to an individual if, during
a 30-day period, the individual—
‘‘(A) works 80 or more hours;
‘‘(B) participates in and complies with the
requirements of a work program for 80 or more
hours, as determined by a State agency; or
‘‘(C) participates in a program under sec-
tion 20 or a comparable program established by
a State or political subdivision of a State.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
‘‘(A) 
IMPLEMENTATION.—Each 
State
agency shall implement an electronic benefit
transfer system in which household benefits de-
termined under section 8(a) or 26 are issued
from and stored in a central databank before
October 1, 2002, unless the Secretary provides
a waiver for a State agency that faces unusual
barriers to implementing an electronic benefit
transfer system.
‘‘(B) TIMELY
IMPLEMENTATION.—State
agencies are encouraged to implement an elec-
tronic benefit transfer system under subpara-
graph (A) as soon as practicable.
‘‘(C) STATE
FLEXIBILITY.—Subject to
paragraph (2), a State agency may procure and
implement an electronic benefit transfer system
under the terms, conditions, and design that
the State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) 
commercial 
electronic 
funds
transfer technology;
‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
‘‘(iii) the need to permit monitoring
and investigations by authorized law en-
forcement agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than
April 1, 1992,’’;
(B) in subparagraph (A)—
(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and in-
serting the following:
‘‘(D)(i) measures to maximize the security of a
system using the most recent technology available
that the State agency considers appropriate and cost
effective and which may include personal identifica-
tion numbers, photographic identification on elec-
tronic benefit transfer cards, and other measures to
protect against fraud and abuse; and
‘‘(ii) effective not later than 2 years after the
effective date of this clause, to the extent prac-
ticable, measures that permit a system to differen-
tiate items of food that may be acquired with an al-
lotment from items of food that may not be acquired
with an allotment.’’;
(D) in subparagraph (G), by striking
‘‘and’’ at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
‘‘(7) REPLACEMENT
OF
BENEFITS.—Regula-
tions issued by the Secretary regarding the replace-
ment of benefits and liability for replacement of ben-
efits under an electronic benefit transfer system
shall be similar to the regulations in effect for a
paper food stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agen-
cy may collect a charge for replacement of an elec-
tronic benefit transfer card by reducing the monthly
allotment of the household receiving the replacement
card.
‘‘(9) OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may
require that an electronic benefit card contain
a photograph of 1 or more members of a house-
hold.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to en-
sure that any other appropriate member of the
household or any authorized representative of
the household may utilize the card.
‘‘(10) APPLICATION
OF
ANTI-TYING
RESTRIC-
TIONS
TO
ELECTRONIC
BENEFIT
TRANSFER
SYS-
TEMS.—
‘‘(A) IN GENERAL.—A company shall not
sell or provide electronic benefit transfer serv-
ices, or fix or vary the consideration for such
services, on the condition or requirement that
the customer—
‘‘(i) obtain some additional point-of-
sale service from the company or any affili-
ate of the company; or
‘‘(ii) not obtain some additional point-
of-sale service from a competitor of the
company or competitor of any affiliate of
the company.
‘‘(B) DEFINITIONS.—In this paragraph—
‘‘(i) AFFILIATE.—The term ‘affiliate’
shall have the same meaning as in section
2(k) of the Bank Holding Company Act.
‘‘(ii) COMPANY.—The term ‘company’
shall have the same meaning as in section
106(a) of the Bank Holding Company Act
Amendments of 1970, but shall not include
a bank, bank holding company, or any sub-
sidiary of a bank holding company.
‘‘(iii) ELECTRONIC
BENEFIT
TRANS-
FER SERVICE.—The term ‘electronic bene-
fit transfer service’ means the processing
of electronic transfers of household bene-
fits determined under section 8(a) or 26
where the benefits are—
‘‘(I) issued from and stored in a
central databank;
‘‘(II) electronically accessed by
household members at the point of
sale; and
‘‘(III) provided by a Federal or
state government.
‘‘(iv) POINT-OF-SALE
SERVICE.—The
term ‘point-of-sale service’ means any
product or service related to the electronic
authorization and processing of payments
for merchandise at a retail food store, in-
cluding but not limited to credit or debit
card services, automated teller machines,
point-of-sale terminals, or access to on-line
systems.
‘‘(C) CONSULTATION WITH THE FEDERAL
RESERVE BOARD.—Before promulgating regula-
tions or interpretations of regulations to carry
out this paragraph, the Secretary shall consult
with the Board of Governors of the Federal Re-
serve System.’’.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that a State that operates an electronic benefit
transfer system under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) should operate the system in a man-
ner that is compatible with electronic benefit transfer sys-
tems operated by other States.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and
shall be adjusted’’ and all that follows through ‘‘$5’’.