H. R. 2491—905
‘‘(4) for a reasonable period of time to be determined by
the Secretary, including permanent disqualification, on the
knowing submission of an application for the approval or
reauthorization to accept and redeem coupons that contains
false information about a substantive matter that was a part
of the application.’’.
SEC. 13047. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALI-
FIED 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.—
‘‘(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 accepting benefits under the special
supplemental nutrition program for women, infants, and chil-
dren established under section 17 of the Child Nutrition Act
of 1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under paragraph (1)—
‘‘(A) shall be for the same length of time as the disquali-
fication from the program referred to in paragraph (1);
‘‘(B) may begin at a later date than the disqualification
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.—
‘‘(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 household;
‘‘(B) withholding amounts from unemployment com-
pensation from a member of the household under sub-
section (c);
‘‘(C) recovering from Federal pay or a Federal 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 without 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—
‘‘(A) 10 percent of the monthly allotment of the house-
hold; or
‘‘(B) $10.
H. R. 2491—906
‘‘(4) PROCEDURES.—A State agency shall collect an
overissuance of coupons issued to a household under paragraph
(1) in accordance with the requirements 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 subsection (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 follow-
ing: ‘‘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 follow-
ing: ‘‘or a Federal income tax refund as authorized 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 following: ‘‘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 
ADMINISTRATIVE 
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 sen-
tences as paragraphs (1) through (17), respectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION OF STORES PENDING REVIEW.—Notwith-
standing 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
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 recruitment activities,’’.
SEC. 13051. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
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 PROGRAM.—
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT
PROGRAM.—In this subsection, the term ‘work supplementation
or support program’ means a program under which, as deter-
mined by the Secretary, public assistance (including any bene-
fits provided under a program established by the State and
H. R. 2491—907
the food stamp program) is provided to an employer to be
used for hiring and employing a public assistance recipient
who was not employed by the employer at the time the public
assistance recipient entered the program.
‘‘(2) PROGRAM.—A State agency may elect to use an amount
equal to the allotment that would otherwise 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 partici-
pates in the food stamp program that contains an individual
who is participating in the work supplementation or support
program—
‘‘(A) the Secretary shall pay to the State agency an
amount equal to the value of the allotment that the house-
hold would be eligible to receive but for the operation
of this subsection;
‘‘(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work
supplementation or support program in lieu of providing
the allotment that the household would receive but for
the operation of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount received under
this subsection shall be excluded from household
income and resources; and
‘‘(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
‘‘(D) the household shall not receive an allotment from
the State agency for the period during which the member
continues to participate in the work supplementation or
support program.
‘‘(4) OTHER WORK REQUIREMENTS.—No individual shall be
excused, by reason of the fact that a State has a work
supplementation or support program, from any work require-
ment 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 agency shall pro-
vide a description of how the public assistance recipients in
the program shall, within a specific period of time, be moved
from supplemented or supported employment to employment
that is not supplemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation or support
program shall not displace the employment of individuals who
are not supplemented or supported.’’.
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:
H. R. 2491—908
‘‘(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 employ-
ment initiatives program under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eligible to carry
out an employment initiatives program under this sub-
section only if not less than 50 percent of the households
that received food stamp benefits during the summer of
1993 also received benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) during the summer of 1993.
‘‘(2) PROCEDURE.—
‘‘(A) IN GENERAL.—A State that has elected to carry
out an employment initiatives program under paragraph
(1) may use amounts equal to the food stamp allotments
that would otherwise be issued to a household under the
food stamp program, but for the operation of this sub-
section, to provide cash benefits in lieu of the food stamp
allotments to the household if the household is eligible
under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay to each State
that has elected to carry out an employment initiatives
program under paragraph (1) an amount equal to the value
of the allotment that each household would be eligible
to receive under this Act but for the operation of this
subsection.
‘‘(C) OTHER
PROVISIONS.—For purposes of the food
stamp program (other than this subsection)—
‘‘(i) cash assistance under this subsection shall
be considered to be an allotment; and
‘‘(ii) each household receiving cash benefits under
this subsection shall not receive any other food stamp
benefit for the period for which the cash assistance
is provided.
‘‘(D) ADDITIONAL
PAYMENTS.—Each State that has
elected to carry out an employment initiatives program
under paragraph (1) shall—
‘‘(i) increase the cash benefits provided to each
household under this subsection to compensate for any
State or local sales tax that may be collected on pur-
chases of food by any household receiving cash benefits
under this subsection, unless the Secretary determines
on the basis of information provided by the State that
the increase is unnecessary on the basis of the limited
nature of the items subject to the State or local sales
tax; and
‘‘(ii) pay the cost of any increase in cash benefits
required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household—
‘‘(A) has worked in unsubsidized employment for not
less than the preceding 90 days;
‘‘(B) has earned not less than $350 per month from
the employment referred to in subparagraph (A) for not
less than the preceding 90 days;
H. R. 2491—909
‘‘(C)(i) is 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.); or
‘‘(ii) was 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.) at the time the member first
received cash benefits under this subsection and is no
longer eligible for the State program because of earned
income;
‘‘(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the Sec-
retary, shall determine the content of the evaluation.’’.
SEC. 13054. REAUTHORIZATION OF PUERTO RICO NUTRITION ASSIST-
ANCE PROGRAM.
The first sentence of section 19(a)(1)(A) of the Food Stamp
Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking
‘‘$974,000,000’’ and all that follows through ‘‘fiscal year 1995’’ and
inserting ‘‘$1,143,000,000 for each of fiscal years 1995 and 1996,
$1,182,000,000 for fiscal year 1997, $1,223,000,000 for fiscal year
1998, $1,266,000,000 for fiscal year 1999, $1,310,000,000 for fiscal
year 2000, $1,357,000,000 for fiscal year 2001, and $1,404,000,000
for fiscal year 2002’’.
SEC. 13055. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Act (7 U.S.C. 2011 et seq.) is amended
by adding at the end the following:
‘‘SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) DEFINITION OF FEDERAL COSTS.—In this section, the term
‘Federal costs’ does not include any Federal costs incurred under
section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State agency may
elect to carry out a Simplified Food Stamp Program (referred to
in this section as a ‘Program’) in accordance with this section.
‘‘(c) OPERATION OF PROGRAM.—If a State agency elects to carry
out a Program, within the State or a political subdivision of the
State—
‘‘(1) a household in which all members receive assistance
under a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) shall automati-
cally be eligible to participate in the Program; and
‘‘(2) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established
by the State under—
‘‘(A) a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.);
‘‘(B) the food stamp program (other than section 25);
or
‘‘(C) a combination of a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
H. R. 2491—910
601 et seq.) and the food stamp program (other than section
25).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not operate a Pro-
gram unless the Secretary approves a State plan for the oper-
ation of the Program under paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation that the plan
will not increase Federal costs for any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—During each fiscal year and not later
than 90 days after the end of each fiscal year, the Secretary
shall determine whether a Program being carried out by a
State agency is increasing Federal costs under this Act above
the Federal costs incurred under the food stamp program in
operation in the State or political subdivision of the State
for the fiscal year prior to the implementation of the Program,
adjusted for any changes in—
‘‘(A) participation;
‘‘(B) the income of participants in the food stamp pro-
gram that is not attributable to public assistance; and
‘‘(C) the thrifty food plan under section 3(o).
‘‘(2) NOTIFICATION.—If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year or any portion of any fiscal year, the Secretary
shall notify the State agency not later than 30 days after
the Secretary makes the determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE ACTION.—Not later than 90 days after
the date of a notification under paragraph (2), the State
agency shall submit a plan for approval by the Secretary
for prompt corrective action that is designed to prevent
the Program from increasing Federal costs under this Act.
‘‘(B) TERMINATION.—If the State agency does not sub-
mit a plan under subparagraph (A) or carry out a plan
approved by the Secretary, the Secretary shall terminate
the approval of the State agency to operate a Program
and the State agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a State or politi-
cal subdivision of a State may follow the rules and procedures
established by the State or political subdivision under a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) or under the food stamp program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operating a Program,
a State may standardize the deductions provided under section
5(e). In developing the standardized deduction, the State shall
consider the work expenses, dependent care costs, and shelter
costs of participating households.
‘‘(3) REQUIREMENTS.—In operating a Program, a State or
political subdivision shall comply with the requirements of—
‘‘(A) subsections (a) through (g) of section 7;
H. R. 2491—911
‘‘(B) section 8(a) (except that the income of a household
may be determined under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of section 11;
‘‘(E) paragraphs (8), (12), (17), (19), (21), (26), and
(27) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable requirement
established by the State under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—Notwithstanding any
other provision of this section, a household may not receive
benefits under this section as a result of the eligibility of
the household under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.),
unless the Secretary determines that any household with
income above 130 percent of the poverty guidelines is not
eligible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Act (7 U.S.C.
2020(e)), as amended by section 13028(b), is further amended by
adding at the end the following:
‘‘(27) if a State agency elects to carry out a Simplified
Food Stamp Program under section 24, the plans of the State
agency for operating the program, including—
‘‘(A) the rules and procedures to be followed by the
State to determine food stamp benefits;
‘‘(B) how the State will address the needs of households
that experience high shelter costs in relation to the incomes
of the households; and
‘‘(C) a description of the method by which the State
will carry out a quality control system under section 16(c).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Act (7 U.S.C. 2017), as amended by
section 13039, is further amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is amended—
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (l) as sub-
sections (i) through (k), respectively.
SEC. 13056. STATE FOOD ASSISTANCE BLOCK GRANT.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.), as amended by section 13055, is further amended by
adding at the end the following:
‘‘SEC. 25. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food assistance’ means
assistance that may be used only to obtain food, as defined
in section 3(g).
‘‘(2) STATE.—The term ‘State’ means each of the 50 States,
the District of Columbia, Guam, and the Virgin Islands of
the United States.
H. R. 2491—912
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a program
to make grants to States in accordance with this section to provide—
‘‘(1) food assistance to needy individuals and families resid-
ing in the State; and
‘‘(2) funds for administrative costs incurred in providing
the assistance.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—A State may annually elect to participate
in the program established under subsection (b) if the State—
‘‘(A) has fully implemented an electronic benefit trans-
fer system that operates in the entire State;
‘‘(B) has a payment error rate under section 16(c) that
is not more than 6 percent as announced most recently
by the Secretary; or
‘‘(C) has a payment error rate in excess of 6 percent
and agrees to contribute non-Federal funds for the fiscal
year of the grant, for benefits and administration of the
State’s food assistance program, the amount determined
under paragraph (2).
‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—In the case of a State that elects
to participate in the program under paragraph (1)(C), the
State shall agree to contribute, for a fiscal year, an amount
equal to—
‘‘(A)(i) the benefits issued in the State; multiplied by
‘‘(ii) the payment error rate of the State; minus
‘‘(B)(i) the benefits issued in the State; multiplied by
‘‘(ii) 6 percent.
‘‘(B) DETERMINATION.—Notwithstanding sections 13
and 14, the calculation of the contribution shall be based
solely on the determination of the Secretary of the payment
error rate.
‘‘(C) DATA.—For purposes of implementing subpara-
graph (A) for a fiscal year, the Secretary shall use the
data for the most recent fiscal year available.
‘‘(3) ELECTION LIMITATION.—
‘‘(A) RE-ENTERING FOOD STAMP PROGRAM.—A State that
elects to participate in the program under paragraph (1)
may in a subsequent year decline to elect to participate
in the program and instead participate in the food stamp
program in accordance with the other sections of this Act.
‘‘(B) LIMITATION.—Subsequent to re-entering the food
stamp program under subparagraph (A), the State shall
only be eligible to participate in the food stamp program
in accordance with the other sections of this Act and shall
not be eligible to elect to participate in the program estab-
lished under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is participating in the
program established under subsection (b) shall not be sub-
ject to, or receive any benefit under, this Act except as
provided in this section.
‘‘(B) CONTRACT WITH FEDERAL GOVERNMENT.—Nothing
in this section shall prohibit a State from contracting with
the Federal Government for the provision of services or
materials necessary to carry out a program under this
section.
H. R. 2491—913
‘‘(d) LEAD AGENCY.—A State desiring to receive a grant under
this section shall designate, in an application submitted to the
Secretary under subsection (e)(1), an appropriate State agency
responsible for the administration of the program under this section
as the lead agency.
‘‘(e) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall by regulation
require, including—
‘‘(A) an assurance that the State will comply with
the requirements of this section;
‘‘(B) a State plan that meets the requirements of para-
graph (3); and
‘‘(C) an assurance that the State will comply with
the requirements of the State plan under paragraph (3).
‘‘(2) ANNUAL
PLAN.—The State plan contained in the
application under paragraph (1) shall be submitted for approval
annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall identify the
lead agency.
‘‘(B) USE
OF
BLOCK
GRANT
FUNDS.—The State plan
shall provide that the State shall use the amounts provided
to the State for each fiscal year under this section—
‘‘(i) to provide food assistance to needy individuals
and families residing in the State, other than residents
of institutions who are ineligible for food stamps under
section 3(i); and
‘‘(ii) to pay administrative costs incurred in provid-
ing the assistance.
‘‘(C) GROUPS SERVED.—The State plan shall describe
how and to what extent the program will serve specific
groups of individuals and families and how the treatment
will differ from treatment under the food stamp program
under the other sections of this Act of the individuals
and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) migrants or seasonal farmworkers;
‘‘(iii) homeless individuals and families;
‘‘(iv) individuals and families who live in institu-
tions eligible under section 3(i);
‘‘(v) individuals and families with earnings; and
‘‘(vi) members of Indian tribes or tribal organiza-
tions.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The State plan
shall provide that benefits under this section shall be avail-
able throughout the entire State.
‘‘(E) NOTICE AND HEARINGS.—The State plan shall pro-
vide that an individual or family who applies for, or
receives, assistance under this section shall be provided
with notice of, and an opportunity for a hearing on, any
action under this section that adversely affects the individ-
ual or family.
H. R. 2491—914
‘‘(F) ASSESSMENT
OF NEEDS.—The State plan shall
assess the food and nutrition needs of needy persons resid-
ing in the State.
‘‘(G) ELIGIBILITY
STANDARDS.—The State plan shall
describe the income, resource, and other eligibility stand-
ards that are established for the receipt of assistance under
this section.
‘‘(H) RECEIVING BENEFITS IN MORE THAN 1 JURISDIC-
TION.—The State plan shall establish a system for the
exchange of information with other States to verify the
identity and receipt of benefits by recipients.
‘‘(I) PRIVACY.—The State plan shall provide for safe-
guarding and restricting the use and disclosure of informa-
tion about any individual or family receiving assistance
under this section.
‘‘(J) OTHER INFORMATION.—The State plan shall con-
tain such other information as may be required by the
Secretary.
‘‘(4) APPROVAL OF APPLICATION AND PLAN.—The Secretary
shall approve an application and State plan that satisfies the
requirements of this section.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO ASSISTANCE.—
Nothing in this section—
‘‘(1) entitles any individual or family to assistance under
this section; or
‘‘(2) limits the right of a State to impose additional limita-
tions or conditions on assistance under this section.
‘‘(g) BENEFITS FOR ALIENS.—
‘‘(1) ELIGIBILITY.—No individual who is an alien shall be
eligible to receive benefits under a State plan approved under
subsection (e)(4) if the individual is not eligible to participate
in the food stamp program due to the alien status of the
individual.
‘‘(2) INCOME.—The State plan shall provide that the income
of an alien shall be determined in accordance with section
5(i).
‘‘(h) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK
REQUIREMENTS.—No individual or household
shall be eligible to receive benefits under a State plan funded
under this section if the individual or household is not eligible
to participate in the food stamp program under subsection
(d) or (o) of section 6.
‘‘(2) WORK
PROGRAMS.—Each State shall implement an
employment and training program in accordance with the terms
and conditions of section 6(d)(4) for individuals under the pro-
gram and shall be eligible to receive funding under section
16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW OF COMPLIANCE WITH STATE PLAN.—The Sec-
retary shall review and monitor State compliance with this
section and the State plan approved under subsection (e)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after reasonable
notice to a State and opportunity for a hearing, finds that—
‘‘(i) there has been a failure by the State to comply
substantially with any provision or requirement set
H. R. 2491—915
forth in the State plan approved under subsection
(e)(4); or
‘‘(ii) in the operation of any program or activity
for which assistance is provided under this section,
there is a failure by the State to comply substantially
with any provision of this section;
the Secretary shall notify the State of the finding and
that no further grants will be made to the State under
this section (or, in the case of noncompliance in the oper-
ation of a program or activity, that no further grants to
the State will be made with respect to the program or
activity) until the Secretary is satisfied that there is no
longer any failure to comply or that the noncompliance
will be promptly corrected.
‘‘(B) OTHER PENALTIES.—In the case of a finding of
noncompliance made pursuant to subparagraph (A), the
Secretary may, in addition to, or in lieu of, imposing the
penalties described in subparagraph (A), impose other
appropriate penalties, including recoupment of money
improperly expended for purposes prohibited or not author-
ized by this section and disqualification from the receipt
of financial assistance under this section.
‘‘(C) NOTICE.—The notice required under subparagraph
(A) shall include a specific identification of any additional
penalty being imposed under subparagraph (B).
‘‘(3) ISSUANCE OF REGULATIONS.—The Secretary shall estab-
lish by regulation procedures for—
‘‘(A) receiving, processing, and determining the validity
of complaints made to the Secretary concerning any failure
of a State to comply with the State plan or any requirement
of this section; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the Secretary shall
pay to a State that has an application approved by the Secretary
under subsection (e)(4) an amount that is equal to the grant
of the State under subsection (m) for the fiscal year, adjusted
for any reduction required under subsection (m)(2).
‘‘(2) METHOD OF GRANT.—The Secretary shall make a grant
to a State for a fiscal year under this section by issuing 1
or more letters of credit for the 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 assistance under this section in
subsequent fiscal years, except that the reserved funds
may not exceed 30 percent of the total grant received
under this section for a fiscal year.
‘‘(4) FOOD
ASSISTANCE
AND
ADMINISTRATIVE
EXPENDI-
TURES.—In each fiscal year, not more than 6 percent of the
H. R. 2491—916
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, coupons limited to food purchases,
or direct provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating in the pro-
gram established under this section shall maintain a system in
accordance with, and shall be subject to section 16(c), including
sanctions and eligibility for incentive payment under section 16(c).
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall not provide financial
assistance for any program, project, or activity under this sec-
tion if any person with responsibilities for the operation of
the program, project, or activity discriminates with respect
to the program, project, or activity because of race, religion,
color, national origin, sex, or disability.
‘‘(2) ENFORCEMENT.—The powers, remedies, and procedures
set forth in title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.) may be used by the Secretary to enforce para-
graph (1).
‘‘(m) GRANT CALCULATION.—
‘‘(1) STATE GRANT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), from the amounts made available under section 18
for each fiscal year, the Secretary shall provide a grant
to each State participating in the program established
under this section an amount that is equal to the sum
of—
‘‘(i) the greater of, as determined by the Sec-
retary—
‘‘(I) the total dollar value of all benefits issued
under the food stamp program established under
this Act by the State during fiscal year 1994; or
‘‘(II) the average per fiscal year of the total
dollar value of all benefits issued under the food
stamp program by the State during each of fiscal
years 1992 through 1994; and
‘‘(ii) the greater of, as determined by the Sec-
retary—
‘‘(I) the total amount received by the State
for administrative costs under section 16 for fiscal
year 1994; or
‘‘(II) the average per fiscal year of the total
amount received by the State for administrative
costs under section 16 for each of fiscal years 1992
through 1994.
‘‘(B) INSUFFICIENT FUNDS.—If the Secretary finds that
the total amount of grants to which States would otherwise
be entitled for a fiscal year under subparagraph (A) will
exceed the amount of funds that will be made available
to provide the grants for the fiscal year, the Secretary
shall reduce the grants made to States under this sub-
section, on a pro rata basis, to the extent necessary.
H. R. 2491—917
‘‘(2) REDUCTION.—The Secretary shall reduce the grant of
a State by the amount a State has agreed to contribute under
subsection (c)(1)(C).’’.
(b) EMPLOYMENT AND TRAINING FUNDING.—Section 16(h) of the
Act (7 U.S.C. 2025(a)), as amended by section 13027(d)(2), is further
amended by adding at the end the following:
‘‘(6) BLOCK GRANT STATES.—Each State electing to operate
a program under section 25 shall—
‘‘(A) receive the greater of—
‘‘(i) the total dollar value of the funds received
under paragraph (1) by the State during fiscal year
1994; or
‘‘(ii) the average per fiscal year of the total dollar
value of all funds received under paragraph (1) by
the State during each of fiscal years 1992 through
1994; and
‘‘(B) be eligible to receive funds under paragraph (2),
within the limitations in section 6(d)(4)(K).’’.
(c) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.—Section 17 of the Act (7 U.S.C. 2026), as amended by
section 13055(c)(2), is further amended by adding at the end the
following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.—The Secretary may conduct research on the effects and
costs of a State program carried out under section 25.’’.
SEC. 13057. AMERICAN SAMOA.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended
by section 13056, is further amended by adding at the end the
following:
‘‘SEC. 26. TERRITORY OF AMERICAN SAMOA.
‘‘From amounts made available to carry out this Act, the Sec-
retary may pay to the Territory of American Samoa not more
than $5,300,000 for each of fiscal years 1996 through 2002 to
finance 100 percent of the expenditures for the fiscal year for
a nutrition assistance program extended under section 601(c) of
Public Law 96–597 (48 U.S.C. 1469d(c)).’’.
SEC. 13058. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended
by section 13057, is further amended by adding at the end the
following:
‘‘SEC. 27. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
‘‘(a) DEFINITION OF COMMUNITY FOOD PROJECTS.—In this sec-
tion, the term ‘community food project’ means a community-based
project that requires a 1-time infusion of Federal assistance to
become self-sustaining and that is designed to—
‘‘(1) meet the food needs of low-income people;
‘‘(2) increase the self-reliance of communities in providing
for their own food needs; and
‘‘(3) promote comprehensive responses to local food, farm,
and nutrition issues.
‘‘(b) AUTHORITY TO PROVIDE ASSISTANCE.—
‘‘(1) IN GENERAL.—From amounts made available to carry
out this Act, the Secretary may make grants to assist eligible
H. R. 2491—918
private nonprofit entities to establish and carry out community
food projects.
‘‘(2) LIMITATION ON GRANTS.—The total amount of funds
provided as grants under this section for any fiscal year may
not exceed $2,500,000.
‘‘(c) ELIGIBLE ENTITIES.—To be eligible for a grant under sub-
section (b), a private nonprofit entity must—
‘‘(1) have experience in the area of—
‘‘(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the develop-
ment of new markets in low-income communities for agri-
cultural producers; or
‘‘(B) job training and business development activities
for food-related activities in low-income communities;
‘‘(2) demonstrate competency to implement a project, pro-
vide fiscal accountability, collect data, and prepare reports and
other necessary documentation; and
‘‘(3) demonstrate a willingness to share information with
researchers, practitioners, and other interested parties.
‘‘(d) PREFERENCE FOR CERTAIN PROJECTS.—In selecting commu-
nity food projects to receive assistance under subsection (b), the
Secretary shall give a preference to projects designed to—
‘‘(1) develop linkages between 2 or more sectors of the
food system;
‘‘(2) support the development of entrepreneurial projects;
‘‘(3) develop innovative linkages between the for-profit and
nonprofit food sectors; or
‘‘(4) encourage long-term planning activities and multi-sys-
tem, interagency approaches.
‘‘(e) MATCHING FUNDS REQUIREMENTS.—
‘‘(1) REQUIREMENTS.—The Federal share of the cost of
establishing or carrying out a community food project that
receives assistance under subsection (b) may not exceed 50
percent of the cost of the project during the term of the grant.
‘‘(2) CALCULATION.—In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a pay-
ment in cash or in kind, fairly evaluated, including facilities,
equipment, or services.
‘‘(3) SOURCES.—An entity may provide for the non-Federal
share through State government, local government, or private
sources.
‘‘(f) TERM OF GRANT.—
‘‘(1) SINGLE
GRANT.—A community food project may be
supported by only a single grant under subsection (b).
‘‘(2) TERM.—The term of a grant under subsection (b) may
not exceed 3 years.
‘‘(g) TECHNICAL ASSISTANCE AND RELATED INFORMATION.—
‘‘(1) TECHNICAL ASSISTANCE.—In carrying out this section,
the Secretary may provide technical assistance regarding
community food projects, processes, and development to an
entity seeking the assistance.
‘‘(2) SHARING INFORMATION.—
‘‘(A) IN GENERAL.—The Secretary may provide for the
sharing of information concerning community food projects
and issues among and between government, private for-