SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Welfare Reform Rec-
onciliation Act of 1996’’.
SEC. 2. TABLE OF TITLES.
The table of titles of this Act is as follows:
Title I—Committee on Agriculture
Title II—Committee on Commerce
Title III—Committee on Economic and Educational Opportunities
Title IV—Committee on Ways and Means
TITLE I—COMMITTEE ON
AGRICULTURE
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Food Stamp Reform
and Commodity Distribution Act of 1996’’.
SEC. 1002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 1001. Short title.
Sec. 1002. Table of contents.
Subtitle A—Food Stamp Program
Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance pro-
grams.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and wholesale
food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification systems.
Sec. 1050. Disqualification of retailers who intentionally submit falsified appli-
cations.
Sec. 1051. Disqualification of retailers who are disqualified under the WIC pro-
gram.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Response to waivers.
Sec. 1060. Employment initiatives program.
Sec. 1061. Reauthorization.
Sec. 1062. Simplified food stamp program.
Sec. 1063. State food assistance block grant.
Sec. 1064. A study of the use of food stamps to purchase vitamins and minerals.
Sec. 1065. Investigations.
Sec. 1066. Food stamp eligibility.
Sec. 1067. Report by the Secretary.
Sec. 1068. Deficit reduction.
Subtitle B—Commodity Distribution Programs
Sec. 1071. Emergency food assistance program.
Sec. 1072. Food bank demonstration project.
Sec. 1073. Hunger prevention programs.
Sec. 1074. Report on entitlement commodity processing.
Subtitle C—Electronic Benefit Transfer Systems
Sec. 1091. Provisions to encourage electronic benefit transfer systems.
Subtitle A—Food Stamp Program
SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7
U.S.C. 2012(c)) is amended by striking ‘‘Except as pro-
vided’’ and all that follows and inserting the following:
‘‘The certification period shall not exceed 12 months, ex-
cept that the certification period may be up to 24 months
if all adult household members are elderly or disabled. A
State agency shall have at least 1 contact with each cer-
tified household every 12 months.’’.
SEC. 1012. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7
U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi-
cate’’ and inserting ‘‘type of certificate, authorization
card, cash or check issued in lieu of a coupon, or an access
device, including an electronic benefit transfer card or per-
sonal identification number,’’.
SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by
striking ‘‘(who are not themselves parents living with their
children or married and living with their spouses)’’.
SEC. 1014. OPTIONAL ADDITIONAL CRITERIA FOR SEPA-
RATE HOUSEHOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C.
2012(i)) is amended by inserting after the third sentence
the following: ‘‘Notwithstanding the preceding sentences,
a State may establish criteria that prescribe when individ-
uals who live together, and who would be allowed to par-
ticipate as separate households under the preceding sen-
tences, shall be considered a single household, without re-
gard to the common purchase of food and preparation of
meals.’’.
SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting
the following: ‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and insert-
ing the following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all
that follows through the end of the subsection and
inserting the following: ‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1
thereafter, adjust the cost of the diet to reflect the
cost of the diet, in the preceding June, and round
the result to the nearest lower dollar increment for
each household size, except that on October 1, 1996,
the Secretary may not reduce the cost of the diet
in effect on September 30, 1996.’’.
SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977
(7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec-
retary’’ and inserting the following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise
provided in this Act, the Secretary’’.
SEC. 1018. 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 in-
serting ‘‘19’’.
SEC. 1019. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(d)) is amended by striking
paragraph (11) and inserting the following: ‘‘(11) a 1-time
payment or allowance made under a Federal or State law
for the costs of weatherization or emergency repair or re-
placement of an unsafe or inoperative furnace or other
heating or cooling device,’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k))
is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘plan for aid to families with dependent
children approved’’ and inserting ‘‘program
funded’’; and
(ii) in subparagraph (B), by striking
‘‘, not including energy or utility-cost as-
sistance,’’;
(B) in paragraph (2), by striking subpara-
graph (C) and inserting the following:
‘‘(C) a payment or allowance described in sub-
section (d)(11);’’; and
(C) by adding at the end the following:
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY-
MENTS.—
‘‘(A) ENERGY
ASSISTANCE
PAYMENTS.—
For purposes of subsection (d)(1), a payment
made under a Federal or State law to provide
energy assistance to a household shall be con-
sidered money payable directly to the house-
hold.
‘‘(B) ENERGY
ASSISTANCE
EXPENSES.—
For purposes of subsection (e)(7), an expense
paid on behalf of a household under a Federal
or State law to provide energy assistance shall
be considered an out-of-pocket expense incurred
and paid by the household.’’.
(2) Section 2605(f) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8624(f))
is amended—
(A) by striking ‘‘(f)(1) Notwithstanding’’
and inserting ‘‘(f) Notwithstanding’’;
(B) in paragraph (1), by striking ‘‘food
stamps,’’; and
(C) by striking paragraph (2).
SEC. 1020. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5 of the Food Stamp Act
of 1977 (7 U.S.C. 2014) is amended by striking sub-
section (e) and inserting the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD
DEDUCTION.—The Secretary
shall allow a standard deduction for each household
in the 48 contiguous States and the District of Co-
‘‘(A) IN GENERAL.—A household shall be
entitled to a deduction for child support pay-
ments made by a household member to or for
an individual who is not a member of the
household if the household member is legally
obligated to make the payments.
‘‘(B) 
METHODS
FOR
DETERMINING
AMOUNT.—The Secretary may prescribe by reg-
ulation the methods, including calculation on a
retrospective basis, that a State agency shall
use to determine the amount of the deduction
for child support payments.
‘‘(5) HOMELESS
SHELTER
ALLOWANCE.—A
State agency may develop a standard homeless shel-
ter allowance, which shall not exceed $143 per
month, for such expenses as may reasonably be ex-
pected to be incurred by households in which all
members are homeless individuals but are not receiv-
ing free shelter throughout the month. A State agen-
cy that develops the allowance may use the allow-
ance in determining eligibility and allotments for the
households, except that the State agency may pro-
hibit the use of the allowance for households with
extremely low shelter costs.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household contain-
ing an elderly or disabled member shall be enti-
tled, with respect to expenses other than ex-
penses paid on behalf of the household by a
third party, to an excess medical expense de-
duction for the portion of the actual costs of al-
lowable medical expenses, incurred by the elder-
ly or disabled member, exclusive of special diets,
that exceeds $35 per month.
‘‘(B) METHOD
OF
CLAIMING
DEDUC-
TION.—
‘‘(i) IN
GENERAL.—A State agency
shall offer an eligible household under sub-
paragraph (A) a method of claiming a de-
duction for recurring medical expenses that
are initially verified under the excess medi-
cal expense deduction in lieu of submitting
information or verification on actual ex-
penses on a monthly basis.
‘‘(ii) 
METHOD.—The 
method 
de-
scribed in clause (i) shall—
‘‘(I) be designed to minimize the
burden for the eligible elderly or dis-
abled household member choosing to
deduct the recurrent medical expenses
of the member pursuant to the meth-
od;
‘‘(II) rely on reasonable estimates
of the expected medical expenses of
the member for the certification pe-
riod (including changes that can be
reasonably anticipated based on avail-
able information about the medical
condition of the member, public or
private medical insurance coverage,
and the current verified medical ex-
penses incurred by the member); and
‘‘(III) not require further report-
ing or verification of a change in med-
ical expenses if such a change has
been anticipated for the certification
period.
‘‘(7) EXCESS
SHELTER
EXPENSE
DEDUC-
TION.—
‘‘(A) IN GENERAL.—A household shall be
entitled, with respect to expenses other than ex-
penses paid on behalf of the household by a
third party, to an excess shelter expense deduc-
tion to the extent that the monthly amount ex-
pended by a household for shelter exceeds an
amount equal to 50 percent of monthly house-
hold income after all other applicable deduc-
tions have been allowed.
‘‘(B) MAXIMUM
AMOUNT
OF
DEDUC-
TION.—In the case of a household that does not
contain an elderly or disabled individual, the ex-
cess shelter expense deduction shall not ex-
ceed—
‘‘(i) in the 48 contiguous States and
the District of Columbia, $247 per month;
and
‘‘(ii) in Alaska, Hawaii, Guam, and
the Virgin Islands of the United States,
$429, $353, $300, and $182 per month,
respectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the
excess shelter expense deduction, a State
agency may use a standard utility allow-
ance in accordance with regulations pro-
mulgated by the Secretary, except that a
State agency may use an allowance that
does not fluctuate within a year to reflect
seasonal variations.
‘‘(ii) RESTRICTIONS ON HEATING AND
COOLING EXPENSES.—An allowance for a
heating or cooling expense may not be used
in the case of a household that—
‘‘(I) does not incur a heating or
cooling expense, as the case may be;
‘‘(II) does incur a heating or
cooling expense but is located in a
public housing unit that has central
utility meters and charges households,
with regard to the expense, only for
excess utility costs; or
‘‘(III) shares the expense with,
and lives with, another individual not
participating in the food stamp pro-
gram, another household participating
in the food stamp program, or both,
unless the allowance is prorated be-
tween the household and the other in-
dividual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) 
IN
GENERAL.—A 
State
agency may make the use of a stand-
ard utility allowance mandatory for all
households 
with 
qualifying 
utility
costs if—
‘‘(aa) the State agency has
developed 1 or more standards
that include the cost of heating
and cooling and 1 or more stand-
ards that do not include the cost
of heating and cooling; and
‘‘(bb) the Secretary finds
that the standards will not result
in an increased cost to the Sec-
retary.
‘‘(II) HOUSEHOLD
ELECTION.—
A State agency that has not made the
use of a standard utility allowance
mandatory under subclause (I) shall
allow a household to switch, at the
end of a certification period, between
the standard utility allowance and a
deduction based on the actual utility
costs of the household.
‘‘(iv) AVAILABILITY
OF
ALLOWANCE
TO RECIPIENTS OF ENERGY ASSISTANCE.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), if a State agency elects
to use a standard utility allowance
that reflects heating or cooling costs,
the standard utility allowance shall be
made available to households receiving
a payment, or on behalf of which a
payment is made, under the Low-In-
come Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) or
other similar energy assistance pro-
gram, if the household still incurs out-
of-pocket heating or cooling expenses
in excess of any assistance paid on be-
half of the household to an energy
provider.
‘‘(II) SEPARATE ALLOWANCE.—A
State agency may use a separate
standard utility allowance for house-
holds on behalf of which a payment
described in subclause (I) is made,
but may not be required to do so.
‘‘(III) STATES NOT ELECTING TO
USE SEPARATE ALLOWANCE.—A State
agency that does not elect to use a
separate allowance but makes a single
standard utility allowance available to
households incurring heating or cool-
ing expenses (other than a household
described in subclause (I) or (II) of
subparagraph (C)(ii)) may not be re-
quired to reduce the allowance due to
the provision (directly or indirectly) of
assistance 
under 
the 
Low-Income
Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.).
‘‘(IV) PRORATION
OF
ASSIST-
ANCE.—For the purpose of the food
stamp program, assistance provided
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C.
8621 et seq.) shall be considered to be
prorated over the entire heating or
cooling season for which the assist-
ance was provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of
the Act (7 U.S.C. 2020(e)(3)) is amended by striking
‘‘Under rules prescribed’’ and all that follows through
‘‘verifies higher expenses;’’.
SEC. 1021. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7
U.S.C. 2014(g)) is amended by striking paragraph (2) and
inserting the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN GENERAL.—Subject to the other
provisions of this paragraph, the Secretary
shall, in prescribing inclusions in, and exclu-
sions from, financial resources, follow the regu-
lations in force as of June 1, 1982 (other than
those relating to licensed vehicles and inacces-
sible resources).
‘‘(B) ADDITIONAL
INCLUDED
ASSETS.—
The Secretary shall include in financial re-
sources—
‘‘(i) any boat, snowmobile, or airplane
used for recreational purposes;
‘‘(ii) any vacation home;
‘‘(iii) any mobile home used primarily
for vacation purposes;
‘‘(iv) subject to subparagraph (C), any
licensed vehicle that is used for household
transportation or to obtain or continue em-
ployment to the extent that the fair market
value of the vehicle exceeds $4,600; and
‘‘(v) any savings or retirement ac-
count (including an individual account), re-
gardless of whether there is a penalty for
early withdrawal.
‘‘(C) EXCLUDED
VEHICLES.—A vehicle
(and any other property, real or personal, to the
extent the property is directly related to the
maintenance or use of the vehicle) shall not be
included in financial resources under this para-
graph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) necessary for the transportation
of a physically disabled household member;
or
‘‘(iii) depended on by a household to
carry fuel for heating or water for home
use and provides the primary source of fuel
or water, respectively, for the household.’’.
SEC. 1022. VENDOR PAYMENTS FOR TRANSITIONAL HOUS-
ING COUNTED AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2014(k)(2)) is amended—
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and
(H) as subparagraphs (F) and (G), respectively.
SEC. 1023. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and
inserting ‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and in-
serting ‘‘2 years’’.
SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVID-
UALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977
(7 U.S.C. 2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the
end;
(2) in subclause (III), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the follow-
ing:
‘‘(IV) a conviction of an offense under sub-
section (b) or (c) of section 15 involving an
item covered by subsection (b) or (c) of section
15 having a value of $500 or more.’’.
SEC. 1025. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)) is amended by striking
‘‘(d)(1) Unless otherwise exempted by the provisions’’ and
all that follows through the end of paragraph (1) and in-
serting the following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to partici-
pate in the food stamp program if the individ-
ual—
‘‘(i) refuses, at the time of application
and every 12 months thereafter, to register
for employment in a manner prescribed by
the Secretary;
‘‘(ii) refuses without good cause to
participate in an employment and training
program under paragraph (4), to the ex-
tent required by the State agency;
‘‘(iii) refuses without good cause to
accept an offer of employment, at a site or
plant not subject to a strike or lockout at
the time of the refusal, at a wage not less
than the higher of—
‘‘(I) the applicable Federal or
State minimum wage; or
‘‘(II) 80 percent of the wage that
would have governed had the mini-
mum 
hourly 
rate 
under 
section
6(a)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(a)(1))
been applicable to the offer of employ-
ment;
‘‘(iv) refuses without good cause to
provide a State agency with sufficient in-
formation to allow the State agency to de-
termine the employment status or the job
availability of the individual;
‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, the individual is
working less than 30 hours per week;
or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD
INELIGIBILITY.—If an
individual who is the head of a household be-
comes ineligible to participate in the food stamp
program under subparagraph (A), the house-
hold shall, at the option of the State agency,
become ineligible to participate in the food
stamp program for a period, determined by the
State agency, that does not exceed the lesser
of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST
VIOLATION.—The first
time that an individual becomes ineligible
to participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
‘‘(ii) SECOND
VIOLATION.—The sec-
ond time that an individual becomes ineli-
gible to participate in the food stamp pro-
gram under subparagraph (A), the individ-
ual shall remain ineligible until the later
of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
‘‘(II) the date that is 3 months
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 6
months after the date the individual
became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph
(A);
‘‘(II) the date that is 6 months
after the date the individual became
ineligible;
‘‘(III) a date determined by the
State agency; or
‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD
CAUSE.—The Secretary
shall determine the meaning of good cause
for the purpose of this paragraph.
‘‘(ii) VOLUNTARY
QUIT.—The Sec-
retary shall determine the meaning of vol-
untarily quitting and reducing work effort
for the purpose of this paragraph.
‘‘(iii) 
DETERMINATION
BY
STATE
AGENCY.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II) and clauses (i) and (ii),
a State agency shall determine—
‘‘(aa) the meaning of any
term in subparagraph (A);
‘‘(bb) the procedures for de-
termining whether an individual
is in compliance with a require-
ment under subparagraph (A);
and
‘‘(cc) whether an individual
is in compliance with a require-
ment under subparagraph (A).
‘‘(II) NOT LESS RESTRICTIVE.—
A State agency may not determine a
meaning, procedure, or determination
under subclause (I) to be less restric-
tive than a comparable meaning, pro-
cedure, or determination under a
State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERN-
MENT.—For the purpose of subparagraph
(A)(v), an employee of the Federal Govern-
ment, a State, or a political subdivision of
a State, who is dismissed for participating
in a strike against the Federal Govern-
ment, the State, or the political subdivision
of the State shall be considered to have
voluntarily quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSE-
HOLD.—
‘‘(I) IN GENERAL.—For the pur-
pose of this paragraph, the State
agency shall allow the household to se-
lect any adult parent of a child in the
household as the head of the house-
hold if all adult household members
making application under the food
stamp program agree to the selection.
‘‘(II) TIME
FOR
MAKING
DES-
IGNATION.—A household may des-
ignate the head of the household
under subclause (I) each time the
household is certified for participation
in the food stamp program, but may
not change the designation during a
certification period unless there is a
change in the composition of the
household.
‘‘(vi) CHANGE
IN
HEAD
OF
HOUSE-
HOLD.—If the head of a household leaves
the household during a period in which the
household is ineligible to participate in the
food stamp program under subparagraph
(B)—
‘‘(I) the household shall, if other-
wise eligible, become eligible to par-
ticipate in the food stamp program;
and
‘‘(II) if the head of the household
becomes the head of another house-
hold, the household that becomes
headed by the individual shall become
ineligible to participate in the food
stamp program for the remaining pe-
riod of ineligibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of
the Act (7 U.S.C. 2026(b)(2)) is amended by strik-
ing ‘‘6(d)(1)(i)’’ and inserting ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (7 U.S.C. 2029) is
amended by striking subsection (f) and inserting the
following:
‘‘(f) DISQUALIFICATION.—An individual or a house-
hold may become ineligible under section 6(d)(1) to par-
ticipate in the food stamp program for failing to comply
with this section.’’.
SEC. 1026. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)(2)) is amended by striking subparagraph
(B) and inserting the following: ‘‘(B) a parent or other
member of a household with responsibility for the care of
(i) a dependent child under the age of 6 or any lower age
designated by the State agency that is not under the age
of 1, or (ii) an incapacitated person;’’.
SEC. 1027. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1,
1987, each’’ and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills,
training,’’; and
(C) by adding at the end the following:
‘‘Each component of an employment and train-
ing program carried out under this paragraph
shall be delivered through a statewide workforce
development system, unless the component is
not available locally through the statewide
workforce development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ‘‘, except that the State agency shall
retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II);
and
(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child
care’’; and
(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
(4) in subparagraph (E), by striking the third
sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii)
Federal funds’’ and inserting ‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
cial Security Act’’ and inserting the following: ‘‘),
except that no such payment or reimbursement shall
exceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION ON FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to
carry out this paragraph (including under sub-
paragraph (I)) for participants who are receiv-
ing benefits under a State program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) shall not exceed the
amount of funds the State agency used in fiscal
year 1995 to carry out this paragraph for par-
ticipants who were receiving benefits in fiscal
year 1995 under a State program funded under
part A of title IV of the Act (42 U.S.C. 601 et
seq.).’’; and
(B) by redesignating subparagraphs (M) and
(N) as subparagraphs (L) and (M), respectively; and
(9) in subparagraph (L), as redesignated by
paragraph (8)(B)—
(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec-
retary’’ and all that follows through the end of paragraph
(1) and inserting the following:
‘‘(h) FUNDING
OF EMPLOYMENT
AND TRAINING
PROGRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employ-
ment and training programs, the Secretary
shall reserve for allocation to State agencies
from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
‘‘(ii) 
for 
fiscal 
year 
1997,
$79,000,000;