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Federal Reserve Board under section 904 of the
Electronic Fund Transfer Act (15 U.S.C. 1693b)
shall not apply to benefits under this Act deliv-
ered through any electronic benefit transfer sys-
tem.
‘‘(B) DEFINITION OF ELECTRONIC BENEFIT
TRANSFER
SYSTEM.—In this paragraph, the
term ‘electronic benefit transfer system’ means a
system under which a governmental entity dis-
tributes benefits under this Act or other benefits
or payments by establishing accounts to be
accessed by recipients of the benefits electroni-
cally, including through the use of an automated
teller machine, a point-of-sale terminal, or an
intelligent benefit card.
‘‘(2) CHARGING
FOR
ELECTRONIC
BENEFIT
TRANSFER CARD REPLACEMENT.—
‘‘(A) IN GENERAL.—A State agency may
charge an individual for the cost of replacing a
lost or stolen electronic benefit transfer card.
‘‘(B) 
REDUCING
ALLOTMENT.—A 
State
agency may collect a charge imposed under sub-
paragraph (A) by reducing the monthly allot-
ment of the household of which the individual is
a member.’’.
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SEC. 1420. MINIMUM BENEFIT.
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. 1421. 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. 1422. FAILURE TO COMPLY WITH OTHER WELFARE
AND 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.—If the benefits of a household are reduced under a
Federal, State, or local law relating to a welfare or public
assistance program for the failure to perform an action re-
quired under the law or program, for the duration of the
reduction—
‘‘(1) the household may not receive an increased
allotment as the result of a decrease in the income of
the household to the extent that the decrease is the re-
sult of the reduction; and
‘‘(2) the State agency may reduce the allotment
of the household by not more than 25 percent.’’.
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SEC. 1423. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
INSTITUTIONS.
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 IN-
STITUTIONS.—In the case of an individual who resides in
a homeless shelter, or in an institution or center for the
purpose of a drug or alcoholic treatment program, described
in the last sentence of section 3(i), a State agency may pro-
vide an allotment for the individual to—
‘‘(1) the institution as an authorized representa-
tive for the individual for a period that is less than
1 month; and
‘‘(2) the individual, if the individual leaves the
institution.’’.
SEC. 1424. COLLECTION OF OVERISSUANCES.
(a) IN GENERAL.—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 house-
hold;
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‘‘(B) withholding unemployment compensa-
tion from a member of the household under sub-
section (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) HARDSHIPS.—A State agency may not use
an allotment reduction under paragraph (1)(A) as a
means of collecting an overissuance from a household
if the allotment reduction would cause a hardship on
the household, as determined by the State agency.
‘‘(4) MAXIMUM REDUCTION ABSENT FRAUD.—If
a household received an overissuance of coupons with-
out any member of the household being found ineli-
gible to participate in the program under section
6(b)(1) and a State agency elects to reduce the allot-
ment of the household under paragraph (1)(A), the
State agency shall reduce the monthly allotment of the
household under paragraph (1)(A) by the greater of—
‘‘(A) 10 percent of the monthly allotment of
the household; or
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‘‘(B) $10.
‘‘(5) PROCEDURES.—A State agency shall collect
an overissuance of coupons issued to a household
under paragraph (1) in accordance with 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 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 AMENDMENT.—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-
thorized by section 3720A of title 31, United States
Code’’.
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SEC. 1425. TERMINATION OF FEDERAL MATCH FOR OP-
TIONAL INFORMATION ACTIVITIES.
(a) IN GENERAL.—Section 16(a) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(a)) is amended—
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) through (8)
as paragraphs (4) through (7), respectively.
(b) CONFORMING AMENDMENT.—Section 16(g) of the
Act (7 U.S.C. 2025(g)) is amended by striking ‘‘an amount
equal to’’ and all that follows through ‘‘1991, of’’ and insert-
ing ‘‘the amount provided under subsection (a)(5) for’’.
SEC. 1426. 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:
‘‘(k) WORK SUPPLEMENTATION
OR SUPPORT PRO-
GRAM.—
‘‘(1) DEFINITION.—In this subsection, the term
‘work supplementation or support program’ means a
program in which, as determined by the Secretary,
public assistance (including any benefits provided
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 new employee who
is a public assistance recipient.
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‘‘(2) PROGRAM.—A State agency may elect to
use amounts equal to the allotment that would other-
wise be allotted to a household under the food stamp
program, but for the operation of this subsection, for
the purpose of subsidizing or supporting jobs under a
work supplementation or support program established
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 paid under subparagraph (A) in accord-
ance 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—
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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) MAXIMUM LENGTH OF PARTICIPATION.—A
work supplementation or support program may not
allow the participation of any individual for longer
than 1 year, unless the Secretary approves a longer
period.’’.
SEC. 1427. PRIVATE SECTOR EMPLOYMENT INITIATIVES.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by adding at the end the following:
‘‘(m) PRIVATE SECTOR EMPLOYMENT INITIATIVES.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this subsection, a State may elect
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to carry out a private sector employment initia-
tive program under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out a private sector employment
initiative under this subsection 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 Se-
curity Act (42 U.S.C. 601 et seq.) during the
summer of 1993.
‘‘(2) PROCEDURE.—A State that has elected to
carry out a private sector employment initiative
under paragraph (1) may use amounts equal to the
food stamp allotments that would otherwise be allotted
to a household under the food stamp program, but for
the operation of this subsection, to provide cash bene-
fits in lieu of the food stamp allotments to the house-
hold if the household is eligible under paragraph (3).
‘‘(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 employ-
ment in the private sector for not less than the
preceding 90 days;
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‘‘(B) has earned not less than $350 per
month from the employment referred to in sub-
paragraph (A) for not less than the preceding 90
days;
‘‘(C)(i) is eligible to receive 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 eligible to receive 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 bene-
fits under this subsection and is no longer eligi-
ble for the State program because of earned in-
come;
‘‘(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.’’.
SEC. 1428. REAUTHORIZATION OF APPROPRIATIONS.
The first sentence of section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by
striking ‘‘1995’’ and inserting ‘‘2002’’.
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SEC. 1429. OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
‘‘SEC. 24. OPTIONAL STATE FOOD ASSISTANCE BLOCK
GRANT.
‘‘(a) 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 residing in the State;
‘‘(2) at the option of a State, wage subsidies and
payments in return for work for needy individuals
under the program;
‘‘(3) funds to operate an employment and train-
ing program under subsection (g)(2) for needy indi-
viduals under the program; and
‘‘(4) funds for administrative costs incurred in
providing the assistance.
‘‘(b) ELECTION.—
‘‘(1) IN GENERAL.—A State may elect to partici-
pate in the program established under subsection (a).
‘‘(2) ELECTION REVOCABLE.—A State that elects
to participate in the program established under sub-
section (a) may subsequently reverse the election of
the State only once thereafter. Following the reversal,
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the State shall only be eligible to participate in the
food stamp program in accordance with the other sec-
tions of this Act and shall not receive a block grant
under this section.
‘‘(3) PROGRAM EXCLUSIVE.—A State that is par-
ticipating in the program established under sub-
section (a) shall not be subject to, or receive any bene-
fit under, this Act except as provided in this section.
‘‘(c) LEAD AGENCY.—
‘‘(1) DESIGNATION.—A State desiring to partici-
pate in the program established under this section
shall designate, in an application submitted to the
Secretary under subsection (d)(1), an appropriate
State agency that complies with paragraph (2) to act
as the lead agency for the State.
‘‘(2) DUTIES.—The lead agency shall—
‘‘(A) administer, either directly, through
other State agencies, or through local agencies,
the assistance received under this section by the
State;
‘‘(B) develop the State plan to be submitted
to the Secretary under subsection (d)(1); and
‘‘(C) coordinate the provision of food assist-
ance under this section with other Federal, State,
and local programs.
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‘‘(d) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive as-
sistance 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 com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (3); and
‘‘(C) an assurance that the State will com-
ply 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 sub-
mitted 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
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State, other than residents of institutions
who are ineligible for food stamps under
section 3(i);
‘‘(ii) at the option of a State, to pro-
vide wage subsidies or workfare under sec-
tion 20(a) (except that any reference in sec-
tion 20(a) to an allotment shall be consid-
ered a reference to the food assistance or
benefits in lieu of food assistance received
by an individual or family during a month
under this section) for needy individuals
and families participating in the program;
‘‘(iii) to administer an employment
and training program under subsection
(g)(2) for needy individuals under the pro-
gram and to provide reimbursements to
needy individuals and families as would be
allowed under section 16(h)(3); and
‘‘(iv) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) ASSISTANCE FOR ENTIRE STATE.—The
State plan shall provide that benefits under this
section shall be available throughout the entire
State.
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‘‘(D) NOTICE
AND
HEARINGS.—The State
plan shall provide 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 individual
or family.
‘‘(E) OTHER ASSISTANCE.—
‘‘(i) COORDINATION.—The State plan
may coordinate assistance received under
this section with assistance provided under
the State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(ii) PENALTIES.—If an individual or
family is penalized for violating part A of
title IV of the Act, the State plan may re-
duce the amount of assistance provided
under this section or otherwise penalize the
individual or family.
‘‘(F) ELIGIBILITY LIMITATIONS.—The State
plan shall describe the income and resource eligi-
bility limitations that are established for the re-
ceipt of assistance under this section.
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‘‘(G) RECEIVING BENEFITS IN MORE THAN 1
JURISDICTION.—The State plan shall establish a
system to verify and otherwise ensure that no in-
dividual or family shall receive benefits under
this section in more than 1 jurisdiction within
the State.
‘‘(H) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use and
disclosure of information about any individual
or family receiving assistance under this section.
‘‘(I) OTHER INFORMATION.—The State plan
shall contain 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.
‘‘(e) LIMITATIONS ON STATE ALLOTMENTS.—
‘‘(1) NO INDIVIDUAL OR FAMILY ENTITLEMENT
TO ASSISTANCE.—Nothing in this section—
‘‘(A) entitles any individual or family to
assistance under this section; or
‘‘(B) limits the right of a State to impose
additional limitations or conditions on assist-
ance under this section.
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‘‘(2) CONSTRUCTION OF FACILITIES.—No funds
made available under this section shall be expended
for the purchase or improvement of land, or for the
purchase, construction, or permanent improvement of
any building or facility.
‘‘(f) BENEFITS FOR ALIENS.—
‘‘(1) ELIGIBILITY.—No individual shall be eligi-
ble to receive benefits under a State plan approved
under subsection (d)(4) if the individual is not eligi-
ble to participate in the food stamp program under
section 6(f).
‘‘(2) INCOME.—The State plan shall provide that
the income of an alien shall be determined in accord-
ance with section 5(i).
‘‘(g) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK REQUIREMENTS.—No individual or
member of a family shall be eligible to receive benefits
under a State plan funded under this section if the
individual is not eligible to participate in the food
stamp program under subsection (d) or (m) of section
6.
‘‘(2) WORK PROGRAMS.—Each State shall imple-
ment an employment and training program described
in section 6(d)(4) for needy individuals under the
program.
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‘‘(h) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor State
compliance with this section and the State plan ap-
proved under subsection (d)(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 pro-
vision or requirement set forth in the State
plan approved under subsection (d)(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 pro-
vision of this section;
the Secretary shall notify the State of the finding
and that no further payments will be made to
the State under this section (or, in the case of
noncompliance in the operation of a program or
activity, that no further payments to the State
will be made with respect to the program or ac-
tivity) until the Secretary is satisfied that there
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is no longer any failure to comply or that the
noncompliance will be promptly corrected.
‘‘(B) OTHER SANCTIONS.—In the case of a
finding of noncompliance made pursuant to sub-
paragraph (A), the Secretary may, in addition
to, or in lieu of, imposing the sanctions described
in subparagraph (A), impose other appropriate
sanctions, including recoupment of money im-
properly expended for purposes prohibited or not
authorized 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 identi-
fication of any additional sanction being im-
posed under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and determining
the validity of complaints concerning any failure
of a State to comply with the State plan or any
requirement of this section; and
‘‘(B) imposing sanctions under this section.
‘‘(4) INCOME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—The Secretary may withhold not more than
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5 percent of the amount allotted to a State under sub-
section (l)(2) if the State does not use an income and
eligibility verification system established under sec-
tion 1137 of the Social Security Act (42 U.S.C.
1320b–7).
‘‘(i) PAYMENTS.—
‘‘(1) IN GENERAL.—For each fiscal year, the Sec-
retary shall pay to a State that has an application
approved by the Secretary under subsection (d)(4) an
amount that is equal to the allotment of the State
under subsection (l)(2) for the fiscal year.
‘‘(2) METHOD OF PAYMENT.—The Secretary shall
make payments 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 FUNDS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), payments to a State from an
allotment under subsection (l)(2) 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 an allotment under sub-
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section (l)(2) for a fiscal year to provide assist-
ance under this section in subsequent fiscal
years, except that the reserved funds may not ex-
ceed 30 percent of the total allotment received
under this section for a fiscal year.
‘‘(4) FOOD
ASSISTANCE
AND
ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, of the Federal
funds expended by a State under this section—
‘‘(A) not less than 80 percent shall be for
food assistance; and
‘‘(B) not more than 6 percent shall be 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 to pro-
vide food assistance to needy individuals and families
in the State, such as electronic benefits transfer lim-
ited to food purchases, coupons limited to food pur-
chases, or direct provision of commodities.
‘‘(6) DEFINITION OF FOOD ASSISTANCE.—In this
section, the term ‘food assistance’ means assistance
that may be used only to obtain food, as defined in
section 3(g).
‘‘(j) AUDITS.—
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‘‘(1) REQUIREMENT.—After the close of each fis-
cal year, a State shall arrange for an audit of the ex-
penditures of the State during the program period
from amounts received under this section.
‘‘(2) INDEPENDENT AUDITOR.—An audit under
this section shall be conducted by an entity that is
independent of any agency administering activities
that receive assistance under this section and be in
accordance with generally accepted auditing prin-
ciples.
‘‘(3) PAYMENT ACCURACY.—Each annual audit
under this section shall include an audit of payment
accuracy under this section that shall be based on a
statistically valid sample of the caseload in the State.
‘‘(4) SUBMISSION.—Not later than 30 days after
the completion of an audit under this section, the
State shall submit a copy of the audit to the legisla-
ture of the State and to the Secretary.
‘‘(5) REPAYMENT
OF
AMOUNTS.—Each State
shall repay to the United States any amounts deter-
mined through an audit under this section to have
not been expended in accordance with this section or
to have not been expended in accordance with the
State plan, or the Secretary may offset the amounts
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against any other amount paid to the State under
this section.
‘‘(k) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall not pro-
vide financial assistance for any program, project, or
activity under this section if any person with respon-
sibilities for the operation of the program, project, or
activity discriminates with respect to the program,
project, or activity because of race, religion, color, na-
tional 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 paragraph (1).
‘‘(l) ALLOTMENTS.—
‘‘(1) DEFINITION OF STATE.—In this section, the
term ‘State’ means each of the 50 States, the District
of Columbia, Guam, and the Virgin Islands of the
United States.
‘‘(2) STATE ALLOTMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 of this Act for each
fiscal year, the Secretary shall allot to each State
participating in the program established under
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this section an amount that is equal to the sum
of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(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 is-
sued 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 Secretary—
‘‘(I) the total amount received by
the State for administrative costs and
the employment and training program
under subsections (a) and (h), respec-
tively, of section 16 of this Act for fis-
cal year 1994; or
‘‘(II) the average per fiscal year of
the total amount received by the State
for administrative costs and the em-
ployment and training program under
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subsections (a) and (h), respectively, of
section 16 of this Act for each of fiscal
years 1992 through 1994.
‘‘(B) INSUFFICIENT
FUNDS.—If the Sec-
retary finds that the total amount of allotments
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 allotments for the fiscal year, the
Secretary shall reduce the allotments made to
States under this subsection, on a pro rata basis,
to the extent necessary to allot under this sub-
section a total amount that is equal to the funds
that will be made available.’’.
SEC. 1430. EFFECTIVE DATE.
Except as otherwise provided in this chapter, this
chapter and the amendments made by this chapter shall be-
come effective on October 1, 1995.
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CHAPTER 2—CHILD NUTRITION
PROGRAMS
PART I—REIMBURSEMENT RATES
SEC. 1441. TERMINATION OF ADDITIONAL PAYMENT FOR
LUNCHES SERVED IN HIGH FREE AND RE-
DUCED PRICE PARTICIPATION SCHOOLS.
(a) IN GENERAL.—Section 4(b)(2) of the National
School Lunch Act (42 U.S.C. 1753(b)(2)) is amended by
striking ‘‘except that’’ and all that follows through ‘‘2 cents
more’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on July 1, 1996.
SEC. 1442. 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
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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, 1996.—
On January 1, 1996, the Secretary shall adjust
the rates and factor for the remainder of the
school year by rounding the previously estab-
lished rates and factor 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
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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
‘‘(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. 1443. 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 paragraph (1)(B)—
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(A) in the first sentence, by striking ‘‘sec-
tion 11(a)’’ and inserting ‘‘subparagraphs (B)
through (E) of section 11(a)(3)’’; and
(B) in the second sentence, by striking ‘‘,
adjusted to the nearest one-fourth cent’’ and in-
serting ‘‘(as adjusted pursuant to subparagraphs
(B) through (E) of section 11(a)(3) of the Na-
tional 
School 
Lunch 
Act 
(42 
U.S.C.
1759a(a)(3)))’’; 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. 
1444. 
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
that follows through ‘‘Act)’’ and inserting ‘‘the same as the
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‘‘(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.
‘‘(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;
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‘‘(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 as eligible to receive free or
reduced price school meals under
this Act or the Child Nutrition
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
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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
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-
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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.—
‘‘(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 $1 for
lunches and suppers, 30 cents for
breakfasts, and 15 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
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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.
‘‘(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
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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
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
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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-
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
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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
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.—
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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
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.
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‘‘(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
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
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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
$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
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‘‘(bb) training and other as-
sistance to family and group day
care homes in the implementation
of the amendments to subpara-
graph 
(A) 
made 
by 
section
1461(a)(1) of the Agricultural
Reconciliation Act of 1995.
‘‘(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
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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) (as
amended by section 1461(a)(1) of the Agri-
cultural Reconciliation Act of 1995).’’.
(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 and adult care food pro-
gram under this section data from the most
recent decennial census survey or other ap-
propriate census survey for which the data
are available showing which areas in the
State meet the requirements of subpara-
graph (A)(ii)(I)(aa). The State agency shall
provide the data to family or group day
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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
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
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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.
‘‘(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-
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vided in subsection (f)(3),’’ after ‘‘For purposes of this
section,’’ each place it appears in paragraphs (1), (2),
and (3).
(b) 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.’’.
(c) 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 (a) shall become
effective on August 1, 1996.
CHAPTER 3—ADDITIONAL SAVINGS
SEC. 1471. 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 ‘‘17’’.
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SEC. 1472. STANDARD DEDUCTION.
Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C.
2014(e)) is amended by adding at the end the following:
‘‘Notwithstanding any other provision of this subsection, the
Secretary shall allow a standard deduction of $134 for fis-
cal year 1995, $132 for the period consisting of October 1,
1995, through December 31, 1995, and $116 for the period
consisting of January 1, 1996, through fiscal year 2002,
except that households in Alaska, Hawaii, Guam, and the
Virgin Islands of the United States shall be allowed a stand-
ard deduction of $229, $189, $269, and $118, respectively,
for fiscal year 1995; $225, $186, $265, and $116, respec-
tively, for the period consisting of October 1, 1995, through
December 31, 1995; and $198, $164, $233, and $102, re-
spectively, for the period consisting of January 1, 1996,
through fiscal year 2002.’’.
SEC. 1473. 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)) (as amended by section 1406(b)(1)(B))
is amended—
(1) by striking subparagraph (E); and
(2) by redesignating subparagraphs (F) and (G)
as subparagraphs (E) and (F), respectively.
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SEC. 1474. EXTENDING CLAIMS RETENTION RATES.
The first sentence of section 16(a) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(a)) is amended by striking
‘‘1995’’ each place it appears and inserting ‘‘2002’’.
SEC. 1475. REAUTHORIZATION OF PUERTO RICO NUTRI-
TION ASSISTANCE 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, $1,171,000,000 for fiscal year
1997, $1,212,000,000 for fiscal year 1998, $1,255,000,000
for fiscal year 1999, $1,299,000,000 for fiscal year 2000,
$1,342,000,000 for fiscal year 2001, and $1,376,000,000 for
fiscal year 2002’’.
SEC. 1476. VALUE OF FOOD ASSISTANCE.
(a) IN GENERAL.—Section 6(e)(1) of the National
School Lunch Act (42 U.S.C. 1755(e)(1)) is amended by
striking subparagraph (B) and inserting the following:
‘‘(B) ADJUSTMENTS.—
‘‘(i) IN GENERAL.—The value of food
assistance for each meal shall be adjusted
each July 1 by the annual percentage
change in a 3-month average value of the
Price Index for Foods Used in Schools and
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Institutions for March, April, and May
each year.
‘‘(ii) ADJUSTMENTS.—Except as other-
wise provided in this subparagraph, 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
the remainder of the school year by round-
ing the previously established value of food
assistance to the nearest lower cent incre-
ment.
‘‘(iv) ADJUSTMENT FOR 24-MONTH PE-
RIOD BEGINNING JULY 1, 1996.—In the case
of the 24-month period beginning July 1,
1996, the value of food assistance shall be
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the same as the value of food assistance in
effect on June 30, 1996.
‘‘(v) ADJUSTMENT FOR SCHOOL YEAR
BEGINNING JULY 1, 1998.—In the case of the
school year beginning July 1, 1998, the Sec-
retary shall—
‘‘(I) base the adjustment made
under clause (i) on the amount of the
unrounded adjustment for the value of
food assistance for the school year be-
ginning July 1, 1995;
‘‘(II) adjust the resulting amount
to reflect the annual percentage change
in a 3-month average value of the
Price Index for Foods Used in Schools
and Institutions for March, April, and
May for the most recent 12-month pe-
riod for which the data are available;
and
‘‘(III) round the result to the
nearest lower cent increment.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on January 1, 1996.
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SEC. 1477. COMMODITY ASSISTANCE.
(a) IN GENERAL.—Section 6(g) of the National School
Lunch Act (42 U.S.C. 1755(g)) is amended by striking ‘‘12
percent’’ and inserting ‘‘10 percent’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall become effective on July 1, 1996.
SEC. 1478. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) IN GENERAL.—Section 13(b) of the National
School Lunch Act (42 U.S.C. 1761(b)) is amended—
(1) 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;
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‘‘(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-
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.’’;
(2) in the second sentence of paragraph (3), by
striking ‘‘levels determined’’ and all that follows
through ‘‘this subsection’’ and inserting ‘‘level deter-
mined by the Secretary’’; and
(3) by striking paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall become effective on January 1, 1996.
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(2) FACTORS TO BE CONSIDERED.—In carrying
out paragraph (1), the Board of Directors shall base
its determination on—
(A) the monthly Savings Association Insur-
ance Fund balance most recently calculated;
(B) data on insured deposits reported in the
most recent reports of condition filed not later
than 70 days before the date of enactment of this
Act by insured depository institutions; and
(C) any other factors that the Board of Di-
rectors deems appropriate.
(3) DATE OF DETERMINATION.—For purposes of
paragraph (1), the amount of the SAIF-assessable de-
posits of an insured depository institution shall be de-
termined as of March 31, 1995.
(4) DATE
PAYMENT
DUE.—The special assess-
ment imposed under this section shall be—
(A) due on the first business day of Janu-
ary 1996; and
(B) paid to the Corporation on the later
of—
(i) the first business day of January
1996; or