SEC. 1036. 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. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may
provide to an eligible household applying after the
15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the
household for the following month, an allotment that
is equal to the total amount of the initial allotment
and the first regular allotment. The allotment shall
be provided in accordance with section 11(e)(3) in
the case of a household that is not entitled to expe-
dited service and in accordance with paragraphs (3)
and (9) of section 11(e) in the case of a household
that is entitled to expedited service.’’.
SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-
TESTED PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF PUBLIC ASSISTANCE BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a house-
hold are reduced under a Federal, State, or local law
relating to a means-tested public assistance program
for the failure of a member of the household to per-
form an action required under the law or program,
for the duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that
the decrease is the result of the reduction; and
‘‘(B) the State agency may reduce the al-
lotment of the household by not more than 25
percent.
‘‘(2) RULES AND PROCEDURES.—If the allot-
ment of a household is reduced under this subsection
for a failure to perform an action required under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
IV of the Act to reduce the allotment under the food
stamp program.’’.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a center for the purpose of a drug or
alcoholic treatment program described in the last
sentence of section 3(i), a State agency may provide
an allotment for the individual to—
‘‘(A) the center as an authorized represent-
ative of the individual for a period that is less
than 1 month; and
‘‘(B) the individual, if the individual leaves
the center.
‘‘(2) DIRECT PAYMENT.—A State agency may
require an individual referred to in paragraph (1) to
designate the center in which the individual resides
as the authorized representative of the individual for
the purpose of receiving an allotment.’’.
SEC. 1040. CONDITION PRECEDENT FOR APPROVAL OF RE-
TAIL FOOD STORES AND WHOLESALE FOOD
CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)) is amended by adding at the end the
following: ‘‘No retail food store or wholesale food concern
of a type determined by the Secretary, based on factors
that include size, location, and type of items sold, shall
be approved to be authorized or reauthorized for participa-
tion in the food stamp program unless an authorized em-
ployee of the Department of Agriculture, a designee of the
Secretary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the
store or concern for the purpose of determining whether
the store or concern should be approved or reauthorized,
as appropriate.’’.
SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PE-
RIODS.
Section 9(a) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)) is amended by adding at the end the fol-
lowing:
‘‘(3) AUTHORIZATION PERIODS.—The Secretary
shall establish specific time periods during which au-
thorization to accept and redeem coupons, or to re-
deem benefits through an electronic benefit transfer
system, shall be valid under the food stamp pro-
gram.’’.
SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7
U.S.C. 2018(c)) is amended—
(1) in the first sentence, by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide writ-
ten authorization for the Secretary to verify all rel-
evant tax filings with appropriate agencies and to
obtain corroborating documentation from other
sources so that the accuracy of information provided
by the stores and concerns may be verified.’’.
SEC. 1043. WAITING PERIOD FOR STORES THAT FAIL TO
MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7
U.S.C. 2018(d)) is amended by adding at the end the fol-
lowing: ‘‘A retail food store or wholesale food concern that
is denied approval to accept and redeem coupons because
the store or concern does not meet criteria for approval
established by the Secretary may not, for at least 6
months, submit a new application to participate in the
program. The Secretary may establish a longer time pe-
riod under the preceding sentence, including permanent
disqualification, that reflects the severity of the basis of
the denial.’’.
SEC. 1044. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020), as amended by sections 1020(b) and 1028(b), is
amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and insert-
ing the following:
‘‘(2)(A) that the State agency shall establish
procedures governing the operation of food stamp of-
fices that the State agency determines best serve
households in the State, including households with
special needs, such as households with elderly or dis-
abled members, households in rural areas with low-
income members, homeless individuals, households
residing on reservations, and households in areas in
which a substantial number of members of low-in-
come households speak a language other than Eng-
lish;
‘‘(B) that in carrying out subparagraph (A), a
State agency—
‘‘(i) shall provide timely, accurate, and fair
service to applicants for, and participants in,
the food stamp program;
‘‘(ii) shall develop an application contain-
ing the information necessary to comply with
this Act;
‘‘(iii) shall permit an applicant household
to apply to participate in the program on the
same day that the household first contacts a
food stamp office in person during office hours;
‘‘(iv) shall consider an application that
contains the name, address, and signature of
the applicant to be filed on the date the appli-
cant submits the application;
‘‘(v) shall require that an adult representa-
tive of each applicant household certify in writ-
ing, under penalty of perjury, that—
‘‘(I) the information contained in the
application is true; and
‘‘(II) all members of the household
are citizens or are aliens eligible to receive
food stamps under section 6(f);
‘‘(vi) shall provide a method of certifying
and issuing coupons to eligible homeless individ-
uals, to ensure that participation in the food
stamp program is limited to eligible households;
and
‘‘(vii) may establish operating procedures
that vary for local food stamp offices to reflect
regional and local differences within the State;
‘‘(C) that nothing in this Act shall prohibit the
use of signatures provided and maintained electroni-
cally, storage of records using automated retrieval
systems only, or any other feature of a State agen-
cy’s application system that does not rely exclusively
on the collection and retention of paper applications
or other records;
‘‘(D) that the signature of any adult under this
paragraph shall be considered sufficient to comply
with any provision of Federal law requiring a house-
hold member to sign an application or statement;’’;
(B) in paragraph (3), as amended by sec-
tion 1020(b)—
(i) by striking ‘‘shall—’’ and all that
follows through ‘‘provide each’’ and insert-
ing ‘‘shall provide each’’; and
(ii) by striking ‘‘(B) assist’’ and all
that follows through ‘‘representative of the
State agency;’’;
(C) by striking paragraphs (14) and (25);
(D)(i) by redesignating paragraphs (15)
through (24) as paragraphs (14) through (23),
respectively; and
(ii) by redesignating paragraph (26), as
added by section 1028(b), as paragraph (24);
and
(2) in subsection (i)—
(A) by striking ‘‘(i) Notwithstanding’’ and
all that follows through ‘‘(2)’’ and inserting the
following:
‘‘(i) APPLICATION AND DENIAL PROCEDURES.—
‘‘(1) 
APPLICATION
PROCEDURES.—Notwith-
standing any other provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all
that follows through ‘‘title IV of the Social Se-
curity Act. No’’ and inserting a period and the
following:
‘‘(2) DENIAL AND TERMINATION.—Other than
in a case of disqualification as a penalty for failure
to comply with a public assistance program rule or
regulation, no’’.
SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(6)) is amended—
(1) by striking ‘‘that (A) the’’ and inserting
‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘Act; (B) the’’ and inserting
‘‘Act; and
‘‘(B) the’’;
(3) in subparagraph (B), by striking ‘‘United
States Civil Service Commission’’ and inserting ‘‘Of-
fice of Personnel Management’’; and
(4) by striking subparagraphs (C) through (E).
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMA-
TION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting
the following: ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and
inserting the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and insert-
ing the following: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
‘‘(D) notwithstanding any other provision
of law, the address, social security number, and,
if available, photograph of any member of a
household shall be made available, on request,
to any Federal, State, or local law enforcement
officer if the officer furnishes the State agency
with the name of the member and notifies the
agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, for a crime (or attempt to
commit a crime) that, under the law
of the place the member is fleeing, is
a felony (or, in the case of New Jer-
sey, a high misdemeanor), or is violat-
ing a condition of probation or parole
imposed under Federal or State law;
or
‘‘(II) has information that is nec-
essary for the officer to conduct an of-
ficial duty related to subclause (I);
‘‘(ii) locating or apprehending the
member is an official duty; and
‘‘(iii) the request is being made in the
proper exercise of an official duty; and
‘‘(E) the safeguards shall not prevent com-
pliance with paragraph (16);’’.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and
(4) in subparagraph (B), as redesignated by
paragraph (3), by striking ‘‘, (B), or (C)’’.
SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(10)) is amended by inserting before the
semicolon at the end a period and the following: ‘‘At the
option of a State, at any time prior to a fair hearing deter-
mination under this paragraph, a household may with-
draw, orally or in writing, a request by the household for
the fair hearing. If the withdrawal request is an oral re-
quest, the State agency shall provide a written notice to
the household confirming the withdrawal request and pro-
viding the household with an opportunity to request a
hearing’’.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STA-
TUS VERIFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended—
(1) in subsection (e)(18), as redesignated by
section 1044(1)(D)—
(A) by striking ‘‘that information is’’ and
inserting ‘‘at the option of the State agency,
that information may be’’; and
(B) by striking ‘‘shall be requested’’ and
inserting ‘‘may be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION.—Notwithstand-
ing any other provision of law, in carrying out the food
stamp program, a State agency shall not be required to
use an income and eligibility or an immigration status ver-
ification system established under section 1137 of the So-
cial Security Act (42 U.S.C. 1320b–7).’’.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTEN-
TIONALLY SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7
U.S.C. 2021(b)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be deter-
mined by the Secretary, including permanent dis-
qualification, on the knowing submission of an appli-
cation for the approval or reauthorization to accept
and redeem coupons that contains false information
about a substantive matter that was a part of the
application.’’.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.—
‘‘(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 children
established under section 17 of the Child Nutrition
Act of 1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same length of time
as the disqualification from the program re-
ferred 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. 1052. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of
the Food Stamp Act of 1977 (7 U.S.C. 2022) is amend-
ed—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, a State agency shall collect
any overissuance of coupons issued to a household
by—
‘‘(A) reducing the allotment of the house-
hold;
‘‘(B) withholding amounts from unemploy-
ment compensation from a member of the
household under subsection (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 ef-
fective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—
If a household received an overissuance of coupons
without any member of the household being found
ineligible 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 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 household; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall col-
lect an overissuance of coupons issued to a house-
hold under paragraph (1) in accordance with the re-
quirements established by the State agency for pro-
viding notice, electing a means of payment, and es-
tablishing 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 re-
fund as authorized by section 3720A of title 31,
United States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)
of the Act (7 U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as
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 dur-
ing 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. 1053. AUTHORITY TO SUSPEND STORES VIOLATING
PROGRAM REQUIREMENTS PENDING ADMIN-
ISTRATIVE AND JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7
U.S.C. 2023(a)) is amended—
(1) by redesignating the first through seven-
teenth sentences as paragraphs (1) through (17), re-
spectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION
OF
STORES
PENDING
RE-
VIEW.—Notwithstanding any other provision of this
subsection, any permanent disqualification of a retail
food store or wholesale food concern under para-
graph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualifica-
tion. If the disqualification is reversed through ad-
ministrative or judicial review, the Secretary shall
not be liable for the value of any sales lost during
the disqualification period.’’.
SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLA-
TIONS.
(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD
STAMP TRAFFICKING.—The first sentence of section
15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g))
is amended by striking ‘‘or intended to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Act
(7 U.S.C. 2024) is amended by adding at the end the fol-
lowing:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—In imposing a sentence on
a person convicted of an offense in violation of sub-
section (b) or (c), a court shall order, in addition to
any other sentence imposed under this subsection,
that the person forfeit to the United States all prop-
erty described in paragraph (2).
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All
property, real and personal, used in a transaction or
attempted transaction, to commit, or to facilitate the
commission of, a violation (other than a mis-
demeanor) of subsection (b) or (c), or proceeds
traceable to a violation of subsection (b) or (c), shall
be subject to forfeiture to the United States under
paragraph (1).
‘‘(3) INTEREST
OF
OWNER.—No interest in
property shall be forfeited under this subsection as
the result of any act or omission established by the
owner of the interest to have been committed or
omitted without the knowledge or consent of the
owner.
‘‘(4) PROCEEDS.—The proceeds from any sale
of forfeited property and any monies forfeited under
this subsection shall be used—
‘‘(A) first, to reimburse the Department of
Justice for the costs incurred by the Depart-
ment to initiate and complete the forfeiture pro-
ceeding;
‘‘(B) second, to reimburse the Department
of Agriculture Office of Inspector General for
any costs the Office incurred in the law enforce-
ment effort resulting in the forfeiture;
‘‘(C) third, to reimburse any Federal or
State law enforcement agency for any costs in-
curred in the law enforcement effort resulting
in the forfeiture; and
‘‘(D) fourth, by the Secretary to carry out
the approval, reauthorization, and compliance
investigations of retail stores and wholesale
food concerns under section 9.’’.
SEC. 1055. 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 re-
cruitment activities,’’.
SEC. 1056. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended by striking sub-
section (b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the
Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the
Secretary’s standards for the efficient and effective
administration of the program established under sec-
tion 16(b)(1) or’’.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C.
2025(c)(1)(B)) is amended by striking ‘‘pursuant to
subsection (b)’’.
SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 1056(a), is amended by in-
serting after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.—
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION
OR
SUPPORT
PROGRAM.—In this subsection, the
term ‘work supplementation or support program’
means a program under which, as determined by the
Secretary, public assistance (including any benefits
provided under a program established by the State
and the food stamp program) is provided to an em-
ployer 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 sub-
section, for the purpose of subsidizing or supporting
a job under a work supplementation or support pro-
gram 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 al-
lotment that the household 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 ac-
cordance with the work supplementation or sup-
port program in lieu of providing the allotment
that the household would receive but for the op-
eration of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount
received under this subsection shall be ex-
cluded from household income and re-
sources; and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to
the household; and
‘‘(D) the household shall not receive an al-
lotment from the State agency for the period
during which the member continues to partici-
pate in the work supplementation or support
program.
‘‘(4) OTHER WORK REQUIREMENTS.—No indi-
vidual shall be excused, by reason of the fact that
a State has a work supplementation or support pro-
gram, from any work requirement under section
6(d), except during the periods in which the individ-
ual is employed under the work supplementation or
support program.
‘‘(5) LENGTH
OF
PARTICIPATION.—A State
agency shall provide 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 employ-
ment of individuals who are not supplemented or
supported.’’.
SEC. 1058. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) in subparagraph (A)—
(A) by striking the second sentence; and
(B) by striking ‘‘benefits to eligible house-
holds, including’’ and inserting the following:
‘‘benefits to eligible households, and may waive
any requirement of this Act to the extent nec-
essary for the project to be conducted.
‘‘(B) PROJECT REQUIREMENTS.—
‘‘(i) PROGRAM GOAL.—The Secretary
may not conduct a project under subpara-
graph (A) unless the project is consistent
with the goal of the food stamp program of
providing food assistance to raise levels of
nutrition among low-income individuals.
‘‘(ii) PERMISSIBLE
PROJECTS.—The
Secretary may conduct a project under
subparagraph (A) to—
‘‘(I) improve program adminis-
tration;
‘‘(II) increase the self-sufficiency
of food stamp recipients;
‘‘(III) test innovative welfare re-
form strategies; and
‘‘(IV) allow greater conformity
with the rules of other programs than
would be allowed but for this para-
graph.
‘‘(iii) IMPERMISSIBLE
PROJECTS.—
The Secretary may not conduct a project
under subparagraph (A) that—
‘‘(I) involves the payment of the
value of an allotment in the form of
cash, unless the project was approved
prior to the date of enactment of this
subparagraph;
‘‘(II) 
substantially 
transfers
funds made available under this Act
to services or benefits provided pri-
marily through another public assist-
ance program; or
‘‘(III) is not limited to a specific
time period.
‘‘(iv) 
ADDITIONAL
INCLUDED
PROJECTS.—Pilot or experimental projects
may include’’.
SEC. 1059. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)), as amended by section 1058, is
amended by adding at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60
days after the date of receiving a request
for a waiver under subparagraph (A), the
Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and explains any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and explains the grounds for the de-
nial; or
‘‘(IV) requests clarification of the
waiver request.
‘‘(ii) FAILURE TO RESPOND.—If the
Secretary does not provide a response in
accordance with clause (i), the waiver shall
be considered approved, unless the ap-
proval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial
of a waiver request under clause (i)(III),
the Secretary shall provide a copy of the
waiver request and a description of the
reasons for the denial to the Committee on
Agriculture of the House of Representa-
tives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.’’.
SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by striking subsection (d) and inserting
the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN GENERAL.—Subject to the other
provisions of this subsection, a State may elect
to carry out an employment initiatives program
under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out an employment initiatives
program 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
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 subsection, 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 para-
graph (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 sub-
section shall be considered to be an allot-
ment; and
‘‘(ii) each household receiving cash
benefits under this subsection shall not re-
ceive any other food stamp benefit for the
period for which the cash assistance is pro-
vided.
‘‘(D) 
ADDITIONAL
PAYMENTS.—Each
State that has elected to carry out an employ-
ment initiatives program under paragraph (1)
shall—
‘‘(i) increase the cash benefits pro-
vided to each household under this sub-
section to compensate for any State or
local sales tax that may be collected on
purchases of food by any household receiv-
ing cash benefits under this subsection, un-
less 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 eligi-
ble to receive cash benefits under paragraph (2) if
an adult member of the household—
‘‘(A) has worked in unsubsidized employ-
ment for not less than the preceding 90 days;
‘‘(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 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 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.
‘‘(4) EVALUATION.—A State that operates a
program under this subsection for 2 years shall pro-
vide to the Secretary a written evaluation of the im-
pact of cash assistance under this subsection. The
State agency, with the concurrence of the Secretary,
shall determine the content of the evaluation.’’.
SEC. 1061. REAUTHORIZATION.
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 ‘‘1991 through 1997’’ and inserting ‘‘1996
through 2002’’.
SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) is amended by adding at the end
the following:
‘‘SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) DEFINITION OF FEDERAL COSTS.—In this sec-
tion, the term ‘Federal costs’ does not include any Federal
costs incurred under section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State
may elect to carry out a Simplified Food Stamp Program
(referred to in this section as a ‘Program’), statewide or
in a political subdivision of the State, in accordance with
this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to
carry out a Program, within the State or a political sub-
division 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 automatically be eligible to partici-
pate 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 27); or
‘‘(C) a combination of a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and the
food stamp program (other than section 27).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not
operate a Program unless the Secretary approves a
State plan for the operation 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 program that is not attributable to pub-
lic assistance; and
‘‘(C) the thrifty food plan under section
3(o).
‘‘(2) NOTIFICATION.—If the Secretary deter-
mines 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
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 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 does not
submit a plan under subparagraph (A) or carry
out a plan approved by the Secretary, the Sec-
retary shall terminate the approval of the State
agency operating the 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 political 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 operat-
ing a Program, a State or political subdivision of a
State may standardize the deductions provided
under section 5(e). In developing the standardized
deduction, the State shall consider the work ex-
penses, dependent care costs, and shelter costs of
participating households.
‘‘(3) REQUIREMENTS.—In operating a Pro-
gram, a State or political subdivision shall comply
with the requirements of—
‘‘(A) subsections (a) through (g) of section
7;
‘‘(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), (16), (18),
(20), (24), and (25) 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.—Notwith-
standing any other provision of this section, a house-
hold 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 in-
come 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 sections 1020(b),
1028(b), and 1044, is amended by adding at the end the
following:
‘‘(25) if a State elects to carry out a Simplified
Food Stamp Program under section 26, the plans of
the State agency for operating the program, includ-
ing—
‘‘(A) the rules and procedures to be fol-
lowed by the State agency to determine food
stamp benefits;
‘‘(B) how the State agency will address the
needs of households that experience high shelter
costs in relation to the incomes of the house-
holds; and
‘‘(C) a description of the method by which
the State agency 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 1039, is amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (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 subsections (i) through (k), re-
spectively.
SEC. 1063. 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 1062, is
amended by adding at the end the following:
‘‘SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food as-
sistance’ 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.
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish 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; 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 sub-
section (b) if the State—
‘‘(A) has fully implemented an electronic
benefit transfer system that operates in the en-
tire State;
‘‘(B) has a payment error rate under sec-
tion 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 bene-
fits and administration of the State’s food as-
sistance 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 con-
tribute, for a fiscal year, an amount equal to—
‘‘(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 con-
tribution shall be based solely on the determina-
tion of the Secretary of the payment error rate.
‘‘(C) DATA.—For purposes of implement-
ing subparagraph (A) for a fiscal year, the Sec-
retary shall use the data for the most recent
fiscal year available.
‘‘(3) ELECTION LIMITATION.—
‘‘(A) RE-ENTERING
FOOD
STAMP
PRO-
GRAM.—A State that elects to participate in the
program under paragraph (1) may in a subse-
quent 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-en-
tering the food stamp program under subpara-
graph (A), the State shall only be eligible to
participate in the food stamp program in ac-
cordance with the other sections of this Act and
shall not be eligible to elect to participate in the
program established under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is par-
ticipating in the program established under sub-
section (b) shall not be subject to, or receive
any benefit under, this Act except as provided
in this section.
‘‘(B) CONTRACT WITH FEDERAL GOVERN-
MENT.—Nothing in this section shall prohibit a
State from contracting with the Federal Gov-
ernment for the provision of services or mate-
rials necessary to carry out a program under
this section.
‘‘(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 ap-
propriate 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 informa-
tion as the Secretary shall by regulation require, in-
cluding—
‘‘(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 fis-
cal year under this section—
‘‘(i) to provide food assistance to
needy individuals and families residing in
the State, other than residents of institu-
tions who are ineligible for food stamps
under section 3(i); and
‘‘(ii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) GROUPS
SERVED.—The State plan
shall describe how and to what extent the pro-
gram 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 indi-
viduals and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) migrants or seasonal farm-
workers;
‘‘(iii) homeless individuals and fami-
lies;
‘‘(iv) individuals and families who live
in institutions eligible under section 3(i);
‘‘(v) individuals and families with
earnings; and
‘‘(vi) members of Indian tribes or trib-
al organizations.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—
The State plan shall provide that benefits under
this section shall be available throughout the
entire State.
‘‘(E) 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 in-
dividual or family.
‘‘(F) ASSESSMENT OF NEEDS.—The State
plan shall assess the food and nutrition needs
of needy persons residing in the State.
‘‘(G) ELIGIBILITY STANDARDS.—The State
plan shall describe the income, resource, and
other eligibility standards that are established
for the receipt of assistance under this section.
‘‘(H) DISQUALIFICATION OF FLEEING FEL-
ONS.—The State plan shall provide for the dis-
qualification of any individual who would be
disqualified from participating in the food
stamp program under section 6(k).
‘‘(I) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall estab-
lish a system for the exchange of information
with other States to verify the identity and re-
ceipt of benefits by recipients.
‘‘(J) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use
and disclosure of information about any individ-
ual or family receiving assistance under this
section.
‘‘(K) 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.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO
ASSISTANCE.—Nothing in this section—
‘‘(1) entitles any individual or family to assist-
ance under this section; or
‘‘(2) limits the right of a State to impose addi-
tional limitations 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 indi-
vidual.
‘‘(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 individ-
ual 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 im-
plement an employment and training program in ac-
cordance with the terms and conditions of section
6(d)(4) for individuals under the program and shall
be eligible to receive funding under section 16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary 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 pro-
vision or requirement set 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 pro-
vision of this section;
the Secretary shall notify the State of the find-
ing and that no further grants 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 grants to the State will
be made with respect to the program or activ-
ity) until the Secretary is satisfied that there is
no longer any failure to comply or that the non-
compliance will be promptly corrected.
‘‘(B) OTHER PENALTIES.—In the case of a
finding of noncompliance made pursuant to
subparagraph (A), the Secretary may, in addi-
tion to, or in lieu of, imposing the penalties de-
scribed in subparagraph (A), impose other ap-
propriate penalties, including recoupment of
money improperly expended for purposes pro-
hibited or not authorized by this section and
disqualification from the receipt of financial as-
sistance under this section.
‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional penalty being imposed
under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
‘‘(A) receiving, processing, and determin-
ing the validity of complaints made to the Sec-
retary concerning any failure of a State to com-
ply 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 applica-
100
tion 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.
‘‘(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 deter-
mined 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 fis-
cal years, except that the reserved funds may
not exceed 30 percent of the total grant re-
ceived under this section for a fiscal year.
‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, not more than
6 percent of the Federal and State funds required
101
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 di-
rect provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating
in the program established under this section shall main-
tain a system in accordance with, and shall be subject to
section 16(c), including sanctions and eligibility for incen-
tive payment under section 16(c), adjusted for State spe-
cific characteristics under regulations issued by the Sec-
retary.
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN
GENERAL.—The Secretary shall not
provide financial assistance for any program,
project, or activity under this section if any person
with responsibilities for the operation of the pro-
gram, 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
102
Rights Act of 1964 (42 U.S.C. 2000d et seq.) may
be used by the Secretary to enforce paragraph (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 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
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 Secretary—
103
‘‘(I) the total amount received by
the State for administrative costs
under section 16(a) (not including any
adjustment under section 16(c)) 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(a) (not including any ad-
justment under section 16(c)) for each
of fiscal years 1992 through 1994.
‘‘(B) INSUFFICIENT FUNDS.—If the Sec-
retary 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 subsection, on a pro rata
basis, to the extent necessary.
‘‘(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.—Sec-
tion 16(h) of the Act (7 U.S.C. 2025(a)), as amended by
104
section 1027(d)(2), is amended by adding at the end the
following:
‘‘(6) BLOCK GRANT STATES.—Each State elect-
ing to operate a program under section 27 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 ASSIST-
ANCE BLOCK GRANT.—Section 17 of the Act (7 U.S.C.
2026), as amended by section 1062(c)(2), is amended by
adding at the end the following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—The Secretary may conduct re-
search on the effects and costs of a State program carried
out under section 27.’’.
105
SEC. 1064. A STUDY OF THE USE OF FOOD STAMPS TO PUR-
CHASE VITAMINS AND MINERALS.
The Secretary of Agriculture shall, in consultation
with the National Academy of Sciences and the Center for
Disease Control and Prevention, conduct a study of the
use of food stamps to purchase vitamins and minerals.
The study shall include an analysis of scientific findings
on the efficacy of and need for vitamins and minerals, in-
cluding the adequacy of vitamin and mineral intake in low
income populations, as shown by existing research and
surveys, and the potential value of nutritional supplements
in filling nutrient gaps that may exist in the population
as a whole or in vulnerable subgroups in the U.S. popu-
lation; the impact of nutritional improvements (including
vitamin or mineral supplementation) on health status and
health care costs for women of childbearing age, pregnant
or lactating women, and the elderly; the cost of vitamin
and mineral supplements commercially available; the pur-
chasing habits of low income populations with regard to
vitamins and minerals; the impact on the food purchases
of low income households; and the economic impact on ag-
ricultural commodities. The Secretary shall report the re-
sults of the study to the Committee on Agriculture of the
U.S. House of Representatives not later than December
15, 1996.’’.
106
SEC. 1065. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7
U.S.C. 2021(a)) is amended by adding at the end the fol-
lowing:
‘‘Regulations issued pursuant to this Act shall provide cri-
teria for the finding of violations and the suspension or
disqualification of a retail food store or wholesale food con-
cern on the basis of evidence which may include, but is
not limited to, facts established through on-site investiga-
tions, inconsistent redemption data or evidence obtained
through transaction reports under electronic benefit trans-
fer systems.’’.
SEC. 1066. FOOD STAMP ELIGIBILITY.
Section 6(f) of the Food Stamp Act of 1977 (7
U.S.C. 2015(f)) is amended by striking the third sentence
and inserting the following:
‘‘The State agency shall, at its option, consider either all
income and financial resources of the individual rendered
ineligible to participate in the food stamp program under
this subsection, or such income, less a pro rata share, and
the financial resources of the ineligible individual, to deter-
mine the eligibility and the value of the allotment of the
household of which such individual is a member.’’.
SEC. 1067. REPORT BY THE SECRETARY.
The Secretary of Agriculture may report to the Com-
mittee on Agriculture of the House of Representatives, not
107
later than January 1, 2000, on the effect of the food
stamp reforms in the Welfare and Medicaid Reform Act
of 1996 and the ability of State and local governments
to deal with people in poverty. The report must answer
the question: ‘‘Did people become more personally respon-
sible and were work opportunities provided such that pov-
erty in America is better managed?’’.
SEC. 1068. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of
the House of Representatives that reductions in outlays
resulting from this title shall not be taken into account
for purposes of section 552 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
Subtitle B—Commodity
Distribution Programs
SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term
‘additional commodities’ means commodities made
available under section 214 in addition to the com-
108
modities made available under sections 202 and
203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM-
PLOYED
PERSONS.—The term ‘average monthly
number of unemployed persons’ means the average
monthly 
number 
of 
unemployed
persons in each State in the most recent fiscal year
for which information concerning the number of un-
employed persons is available, as determined by the
Bureau of Labor Statistics of the Department of
Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or non-
profit organization—
‘‘(A) that administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (including
a hospital and a retirement home, but ex-
cluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
109
‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutri-
tion site and a project that provides home-
delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the ap-
propriate State agency, or by the Secretary;
and
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY
FEEDING
ORGANIZATION.—
The term ‘emergency feeding organization’ means a
public or nonprofit organization that administers ac-
tivities and projects (including the activities and
projects of a charitable institution, a food bank, a
food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recip-
ient agency) providing nutrition assistance to relieve
situations of emergency and distress through the
provision of food to needy persons, including low-in-
come and unemployed persons.
110
‘‘(5) FOOD
BANK.—The term ‘food bank’
means a public or charitable institution that main-
tains an established operation involving the provision
of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feed-
ing centers that, as an integral part of their normal
activities, provide meals or food to feed needy per-
sons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’
means a public or private nonprofit organization
that distributes food to low-income and unemployed
households, including food from sources other than
the Department of Agriculture, to relieve situations
of emergency and distress.
‘‘(7) POVERTY LINE.—The term ‘poverty line’
has the same meaning given the term in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as an
integral part of the normal activities of the institu-
tion, maintains an established feeding operation to
provide food to needy homeless persons on a regular
basis.
111
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional com-
modities made available under section 214 that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).
‘‘(10) VALUE
OF
ADDITIONAL
COMMODITIES
ALLOCATED TO EACH STATE.—The term ‘value of
additional commodities allocated to each State’
means the actual cost of additional commodities
made available under section 214 and allocated to
each State that are paid by the Secretary (including
the distribution and processing costs incurred by the
Secretary).’’.
(b) STATE PLAN.—Section 202A of the Act (7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under
this Act, a State shall submit a plan of operation and ad-
ministration every 4 years to the Secretary for approval.
The plan may be amended at any time, with the approval
of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for
distributing the commodities received under this Act;
112
‘‘(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(B) individual or household members to
be residing in the geographic location served by
the distributing agency at the time of applying
for assistance.
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall
encourage each State receiving commodities under this Act
to establish a State advisory board consisting of represent-
atives of all interested entities, both public and private,
in the distribution of commodities received under this Act
in the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE FUNDS.—Section 204(a)(1) of the Act (7
U.S.C. 612c note) is amended—
(1) in the first sentence by striking ‘‘for State
and local’’ and all that follows through ‘‘under this
113
title’’ and inserting ‘‘to pay for the direct and indi-
rect administrative costs of the State related to the
processing, transporting, and distributing to eligible
recipient agencies of commodities provided by the
Secretary under this Act and commodities secured
from other sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the
Act (7 U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i)
as subsections (a) through (d), respectively;
(3) in subsection (b), as redesignated by para-
graph (2)—
(A) in the first sentence, by striking ‘‘sub-
section (f) or subsection (j) if applicable,’’ and
inserting ‘‘subsection (a)’’; and
(B) in the second sentence, by striking
‘‘subsection (f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated
by paragraph (2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made avail-
able for each fiscal year under this section shall be
114
delivered at reasonable intervals to States based on
the grants calculated under subsection (a), or reallo-
cated under subsection (b), before December 31 of
the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities
determined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (2), by striking ‘‘or reduce’’ and all that fol-
lows through ‘‘each fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C.
612c note) is amended—
(1) in the first sentence of section 203B(a), by
striking ‘‘203 and 203A of this Act’’ and inserting
‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by
striking ‘‘(except as otherwise provided for in section
214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c
note) is repealed.
115
(g) AVAILABILITY
OF COMMODITIES UNDER
THE
FOOD STAMP PROGRAM.—The Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.), as amended by sections 1062 and
1063, is amended by adding at the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts
appropriated under this Act, for each of fiscal years 1997
through 2002, the Secretary shall purchase $300,000,000
of a variety of nutritious and useful commodities of the
types that the Secretary has the authority to acquire
through the Commodity Credit Corporation or under sec-
tion 32 of the Act entitled ‘An Act to amend the Agricul-
tural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the com-
modities to States for distribution in accordance with sec-
tion 214 of the Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur-
chasing commodities under subsection (a), the Secretary
shall, to the extent practicable and appropriate, make pur-
chases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and dis-
tributing agencies; and
116
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by
subsection (d) shall become effective on October 1, 1996.
SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 1073. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
Subtitle C—Electronic Benefit
Transfer Systems
SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BEN-
EFIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
117
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION
GENERALLY.—The dis-
closures, protections, responsibilities, and rem-
edies established under this title, and any regu-
lation prescribed or order issued by the Board
in accordance with this title, shall not apply to
any electronic benefit transfer program estab-
lished under State or local law or administered
by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
consumer account held by the recipient of the
benefit.
118
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as—
‘‘(i) affecting or altering the protec-
tions otherwise applicable with respect to
benefits established by Federal, State, or
local law; or
‘‘(ii) otherwise superseding the appli-
cation of any State or local law.
‘‘(D) ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this
paragraph, the term ‘electronic benefit transfer
program’—
‘‘(i) means a program under which a
government agency distributes needs-tested
benefits by establishing accounts to be
accessed by recipients electronically, such
as through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include employment-re-
lated payments, including salaries and pen-
sion, retirement, or unemployment benefits
established by Federal, State, or local gov-
ernments.’’.
119
TITLE II—COMMITTEE ON
COMMERCE
SEC. 2000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 2000. Table of contents.
Subtitle A—Involvement of Commerce Committee in Federal Government
Position Reductions
Sec. 2001. Involvement of Commerce Committee in Federal government posi-
tion reductions.
Subtitle B—Restricting Public Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 2101. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 2102. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
Sec. 2103. Notification.
CHAPTER 2—GENERAL PROVISIONS
Sec. 2111. Definitions.
Sec. 2112. Verification of eligibility for Federal public benefits.
Subtitle C—Energy Assistance
Sec. 2201. Energy assistance.
Subtitle D—Abstinence Education
Sec. 2301. Abstinence education.
120
Subtitle A—Involvement of Com-
merce Committee in Federal
Government 
Position 
Reduc-
tions
SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN
FEDERAL GOVERNMENT POSITION REDUC-
TIONS.
In any provision of law that provides for consultation
with (or a report to) a relevant committee of Congress
respecting reductions in Federal Government positions, a
reference to the Committee on Commerce of the House
of Representatives shall be deemed to have been made in
relation to matters within the jurisdiction of such Commit-
tee.
Subtitle B—Restricting Public
Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL
BENEFITS
SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI-
GIBLE FOR FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is not a qualified alien (as defined in section
2111) is not eligible for any Federal public benefit (as de-
fined in subsection (c)).
121
(b) EXCEPTIONS.—Subsection (a) shall not apply
with respect to the following Federal public benefits:
(1) Emergency medical services under title XIX
of the Social Security Act.
(2)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if the
Secretary of Health and Human Services determines
that it is necessary to prevent the spread of such
disease.
(c) FEDERAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal public ben-
efit’’ means—
(A) any grant, contract, loan, professional
license, or commercial license provided by an
agency of the United States or by appropriated
funds of the United States; and
(B) any retirement, welfare, health, dis-
ability, or any other similar benefit for which
payments or assistance are provided to an indi-
vidual, household, or family eligibility unit by
an agency of the United States or by appro-
priated funds of the United States,
122
but only if such grant, contract, loan, or license
under subparagraph (A) or program providing bene-
fits under subparagraph (B) is under the jurisdic-
tion of the Committee on Commerce of the House of
Representatives.
(2) Such term shall not apply—
(A) to any contract, professional license, or
commercial license for a nonimmigrant whose
visa for entry is related to such employment in
the United States; or
(B) with respect to benefits for an alien
who as a work authorized nonimmigrant or as
an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality
Act qualified for such benefits and for whom
the United States under reciprocal treaty agree-
ments is required to pay benefits, as determined
by the Attorney General, after consultation with
the Secretary of State.
SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED
ALIENS FOR FEDERAL MEANS-TESTED PUB-
LIC BENEFIT.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is a qualified alien (as defined in section 2111)
123
and who enters the United States on or after the date
of the enactment of this Act is not eligible for any Federal
means-tested public benefit (as defined in subsection (c))
for a period of five years beginning on the date of the
alien’s entry into the United States with a status within
the meaning of the term ‘‘qualified alien’’.
(b) EXCEPTIONS.—The limitation under subsection
(a) shall not apply to the following aliens:
(1) 
EXCEPTION
FOR
REFUGEES
AND
ASYLEES.—
(A) An alien who is admitted to the United
States as a refugee under section 207 of the
Immigration and Nationality Act.
(B) An alien who is granted asylum under
section 208 of such Act.
(C) An alien whose deportation is being
withheld under section 243(h) of such Act.
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—
An alien who is lawfully residing in any State and
is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge and not
on account of alienage,
124
(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
(c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE-
FINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal means-test-
ed public benefit’’ means a Federal public benefit
described in section 2101(c) in which the eligibility
of an individual, household, or family eligibility unit
for benefits, or the amount of such benefits, or both
are determined on the basis of income, resources, or
financial need of the individual, household, or unit.
(2) Such term does not include the following:
(A) Emergency medical services under title
XIX of the Social Security Act.
(B)(i) Public health assistance for immuni-
zations.
(ii) Public health assistance for testing and
treatment of a serious communicable disease if
the Secretary of Health and Human Services
125
determines that it is necessary to prevent the
spread of such disease.
SEC. 2103. NOTIFICATION.
Each Federal agency that administers a program to
which section 2101 or 2102 applies shall, directly or
through the States, post information and provide general
notification to the public and to program recipients of the
changes regarding eligibility for any such program pursu-
ant to this subpart.
CHAPTER 2—GENERAL PROVISIONS
SEC. 2111. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this part, the terms used in this part have the same mean-
ing given such terms in section 101(a) of the Immigration
and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this part,
the term ‘‘qualified alien’’ means an alien who, at the time
the alien applies for, receives, or attempts to receive a
Federal public benefit, is—
(1) an alien who is lawfully admitted for perma-
nent residence under the Immigration and National-
ity Act,
(2) an alien who is granted asylum under sec-
tion 208 of such Act,
126
(3) a refugee who is admitted to the United
States under section 207 of such Act,
(4) an alien who is paroled into the United
States under section 212(d)(5) of such Act for a pe-
riod of at least 1 year,
(5) an alien whose deportation is being withheld
under section 243(h) of such Act, or
(6) an alien who is granted conditional entry
pursuant to section 203(a)(7) of such Act as in ef-
fect prior to April 1, 1980.
SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL
PUBLIC BENEFITS.
(a) IN GENERAL.—Not later than 18 months after
the date of the enactment of this Act, the Attorney Gen-
eral of the United States, after consultation with the Sec-
retary of Health and Human Services, shall promulgate
regulations requiring verification that a person applying
for a Federal public benefit (as defined in section
2101(c)), to which the limitation under section 2101 ap-
plies, is a qualified alien and is eligible to receive such
benefit. Such regulations shall, to the extent feasible, re-
quire that information requested and exchanged be similar
in form and manner to information requested and ex-
changed under section 1137 of the Social Security Act.
127
(b) STATE COMPLIANCE.—Not later than 24 months
after the date the regulations described in subsection (a)
are adopted, a State that administers a program that pro-
vides a Federal public benefit shall have in effect a ver-
ification system that complies with the regulations.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out the purpose of this section.
Subtitle C—Energy Assistance
SEC. 2201. ENERGY ASSISTANCE.
Section 2605(f) of the Low-Income Home Energy As-
sistance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(1) by striking ‘‘(f)(1) Notwithstanding’’ and
inserting ‘‘(f) Notwithstanding’’; and
(2) by striking paragraph (2).
Subtitle D—Abstinence Education
SEC. 2301. ABSTINENCE EDUCATION.
(a) INCREASES IN FUNDING.—Section 501(a) of the
Social Security Act (42 U.S.C. 701(a)) is amended in the
matter preceding paragraph (1) by striking ‘‘Fiscal year
1990 and each fiscal year thereafter’’ and inserting ‘‘Fis-
cal years 1990 through 1995 and $761,000,000 for fiscal
year 1996 and each fiscal year thereafter’’.
(b) ABSTINENCE EDUCATION.—Section 501(a)(1) of
such Act (42 U.S.C. 701(a)(1)) is amended—
128
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by adding ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) to provide abstinence education, and
at the option of the State, where appropriate,
mentoring, counseling, and adult supervision to
promote abstinence from sexual activity, with a
focus on those groups which are most likely to
bear children out-of-wedlock.’’.
(c) ABSTINENCE
EDUCATION
DEFINED.—Section
501(b) of such Act (42 U.S.C. 701(b)) is amended by add-
ing at the end the following new paragraph:
‘‘(5) ABSTINENCE EDUCATION.—For purposes
of this subsection, the term ‘abstinence education’
means an educational or motivational program
which—
‘‘(A) has as its exclusive purpose, teaching
the social, psychological, and health gains to be
realized by abstaining from sexual activity;
‘‘(B) teaches abstinence from sexual activ-
ity outside marriage as the expected standard
for all school age children;
129
‘‘(C) teaches that abstinence from sexual
activity is the only certain way to avoid out-of-
wedlock pregnancy, sexually transmitted dis-
eases, and other associated health problems;
‘‘(D) teaches that a mutually faithful
monogamous relationship in context of marriage
is the expected standard of human sexual activ-
ity;
‘‘(E) teaches that sexual activity outside of
the context of marriage is likely to have harm-
ful psychological and physical effects;
‘‘(F) teaches that bearing children out-of-
wedlock is likely to have harmful consequences
for the child, the child’s parents, and society;
‘‘(G) teaches young people how to reject
sexual advances and how alcohol and drug use
increases vulnerability to sexual advances; and
‘‘(H) teaches the importance of attaining
self-sufficiency before engaging in sexual activ-
ity.’’.
(d) SET-ASIDE.—
(1) IN GENERAL.—Section 502(c) of such Act
(42 U.S.C. 702(c)) is amended in the matter preced-
ing paragraph (1) by striking ‘‘From’’ and inserting
‘‘Except as provided in subsection (e), from’’.
130
(2) SET-ASIDE.—Section 502 of such Act (42
U.S.C. 702) is amended by adding at the end the
following new subsection:
‘‘(e) Of the amounts appropriated under section
501(a) for any fiscal year, the Secretary shall set aside
$75,000,000 for abstinence education in accordance with
section 501(a)(1)(E).’’.
TITLE III—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 3001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity and Work Opportunity Act of 1996’’.
SEC. 3002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 3001. Short title.
Sec. 3002. Table of contents.
Subtitle A—Child Care
Sec. 3101. Short title and references.
Sec. 3102. Goals.
Sec. 3103. Authorization of appropriations and entitlement authority.
Sec. 3104. Lead agency.
Sec. 3105. Application and plan.
Sec. 3106. Limitation on State allotments.
Sec. 3107. Activities to improve the quality of child care.
Sec. 3108. Repeal of early childhood development and before- and after-school
care requirement.
Sec. 3109. Administration and enforcement.
Sec. 3110. Payments.
Sec. 3111. Annual report and audits.
Sec. 3112. Report by the Secretary.
Sec. 3113. Allotments.
Sec. 3114. Definitions.
Sec. 3115. Repeals.
Sec. 3116. Effective date.
131
Subtitle B—Child Nutrition Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH ACT
Sec. 3201. State disbursement to schools.
Sec. 3202. Nutritional and other program requirements.
Sec. 3203. Free and reduced price policy statement.
Sec. 3204. Special assistance.
Sec. 3205. Miscellaneous provisions and definitions.
Sec. 3206. Summer food service program for children.
Sec. 3207. Commodity distribution.
Sec. 3208. Child care food program.
Sec. 3209. Pilot projects.
Sec. 3210. Reduction of paperwork.
Sec. 3211. Information on income eligibility.
Sec. 3212. Nutrition guidance for child nutrition programs.
Sec. 3213. Information clearinghouse.
CHAPTER 2—CHILD NUTRITION ACT OF 1966
Sec. 3221. Special milk program.
Sec. 3222. Free and reduced price policy statement.
Sec. 3223. School breakfast program authorization.
Sec. 3224. State administrative expenses.
Sec. 3225. Regulations.
Sec. 3226. Prohibitions.
Sec. 3227. Miscellaneous provisions and definitions.
Sec. 3228. Accounts and records.
Sec. 3229. Special supplemental nutrition program for women, infants, and
children.
Sec. 3230. Cash grants for nutrition education.
Sec. 3231. Nutrition education and training.
CHAPTER 3—MISCELLANEOUS PROVISIONS
Sec. 3241. Coordination of school lunch, school breakfast, and summer food
service programs.
Subtitle C—Related Provisions
Sec. 3301. Requirement that data relating to the incidence of poverty in the
United States be published at least every 2 years.
Sec. 3302. Sense of the Congress.
Sec. 3303. Legislative accountability.
Subtitle A—Child Care
SEC. 3101. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Child Care and Development Block Grant Amendments
of 1996’’.
132
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
SEC. 3102. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended—
(1) in the section heading by inserting ‘‘AND
GOALS’’ after ‘‘TITLE’’;
(2) by inserting ‘‘(a) SHORT TITLE.—’’ before
‘‘This’’; and
(3) by adding at the end the following:
‘‘(b) GOALS.—The goals of this subchapter are—
‘‘(1) to allow each State maximum flexibility in
developing child care programs and policies that best
suit the needs of children and parents within such
State;
‘‘(2) to promote parental choice to empower
working parents to make their own decisions on the
child care that best suits their family’s needs;
‘‘(3) to encourage States to provide consumer
education information to help parents make in-
formed choices about child care;
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‘‘(4) to assist States to provide child care to
parents trying to achieve independence from public
assistance; and
‘‘(5) to assist States in implementing the
health, safety, licensing, and registration standards
established in State regulations.’’.
SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND EN-
TITLEMENT AUTHORITY.
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858)
is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter $1,000,000,000 for each of the fiscal
years 1996 through 2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of
the Social Security Act (42 U.S.C. 601–617) is amended
by adding at the end the following new section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.
‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL ENTITLEMENT.—Subject to the
amount appropriated under paragraph (3), each
State shall, for the purpose of providing child care
assistance, be entitled to payments under a grant
under this subsection for a fiscal year in an amount
equal to—
134
‘‘(A) the sum of the total amount required
to be paid to the State under section 403 for
fiscal year 1994 or 1995 (whichever is greater)
with respect to amounts expended for child care
under section—
‘‘(i) 402(g) of this Act (as such sec-
tion was in effect before October 1, 1995);
and
‘‘(ii) 402(i) of this Act (as so in ef-
fect); or
‘‘(B) the average of the total amounts re-
quired to be paid to the State for fiscal years
1992 through 1994 under the sections referred
to in subparagraph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use
any amounts appropriated for a fiscal year
under paragraph (3), and remaining after the
reservation described in paragraph (4) and
after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph
(C), the amount of a grant awarded to a State
for a fiscal year under this paragraph shall be
135
based on the formula used for determining the
amount of Federal payments to the State under
section 403(n) (as such section was in effect be-
fore October 1, 1995).
‘‘(C) MATCHING REQUIREMENT.—The Sec-
retary shall pay to each eligible State in a fiscal
year an amount, under a grant under subpara-
graph (A), equal to the Federal medical assist-
ance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so
much of the expenditures by the State for child
care in such year as exceed the State set-aside
for such State under paragraph (1)(A) for such
year and the amount of State expenditures in
fiscal year 1994 or 1995 (whichever is greater)
that equal the non-Federal share for the pro-
grams described in subparagraph (A) of para-
graph (1).
‘‘(D) REDISTRIBUTION.—
‘‘(i) IN
GENERAL.—With respect to
any fiscal year, if the Secretary determines
(in accordance with clause (ii)) that
amounts under any grant awarded to a
State under this paragraph for such fiscal
year will not be used by such State during
136
such fiscal year for carrying out the pur-
pose for which the grant is made, the Sec-
retary shall make such amounts available
in the subsequent fiscal year for carrying
out such purpose to 1 or more States
which apply for such funds to the extent
the Secretary determines that such States
will be able to use such additional amounts
for carrying out such purpose. Such avail-
able amounts shall be redistributed to a
State pursuant to section 402(i) (as such
section was in effect before October 1,
1995) by substituting ‘the number of chil-
dren residing in all States applying for
such funds’ for ‘the number of children re-
siding in the United States in the second
preceding fiscal year’.
‘‘(ii) TIME OF DETERMINATION AND
DISTRIBUTION.—The determination of the
Secretary under clause (i) for a fiscal year
shall be made not later than the end of the
first quarter of the subsequent fiscal year.
The redistribution of amounts under clause
(i) shall be made as close as practicable to
the date on which such determination is
137
made. Any amount made available to a
State from an appropriation for a fiscal
year in accordance with this subparagraph
shall, for purposes of this part, be re-
garded as part of such State’s payment (as
determined under this subsection) for the
fiscal year in which the redistribution is
made.
‘‘(3) APPROPRIATION.—For grants under this
section, there are appropriated—
‘‘(A) $1,967,000,000 for fiscal year 1997;
‘‘(B) $2,067,000,000 for fiscal year 1998;
‘‘(C) $2,167,000,000 for fiscal year 1999;
‘‘(D) $2,367,000,000 for fiscal year 2000;
‘‘(E) $2,567,000,000 for fiscal year 2001;
and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN TRIBES.—The Secretary shall re-
serve not more than 1 percent of the aggregate
amount appropriated to carry out this section in
each fiscal year for payments to Indian tribes and
tribal organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Amounts received by a
State under this section shall only be used to provide
138
child care assistance. Amounts received by a State
under a grant under subsection (a)(1) shall be avail-
able for use by the State without fiscal year limita-
tion.
‘‘(2) USE
FOR
CERTAIN
POPULATIONS.—A
State shall ensure that not less than 70 percent of
the total amount of funds received by the State in
a fiscal year under this section are used to provide
child care assistance to families who are receiving
assistance under a State program under this part,
families who are attempting through work activities
to transition off of such assistance program, and
families who are at risk of becoming dependent on
such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT of 1990.—Notwithstanding any
other provision of law, amounts provided to a State under
this section shall be transferred to the lead agency under
the Child Care and Development Block Grant Act of 1990,
integrated by the State into the programs established by
the State under such Act, and be subject to requirements
and limitations of such Act.
‘‘(d) DEFINITION.—As used in this section, the term
‘State’ means each of the 50 States or the District of Co-
lumbia.’’.
139
SEC. 3104. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘State’’ the first place that such appears and
inserting ‘‘governmental or nongovernmental’’;
and
(B) in subparagraph (C), by inserting
‘‘with sufficient time and Statewide distribution
of the notice of such hearing,’’ after ‘‘hearing in
the State’’; and
(2) in paragraph (2), by striking the second
sentence.
SEC. 3105. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘im-
plemented’’; and
(B) by striking ‘‘for subsequent State
plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
140
(I) in clause (i) by striking ‘‘,
other than through assistance pro-
vided under paragraph (3)(C),’’; and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992’’, and in-
serting ‘‘and provide a detailed de-
scription of the procedures the State
will implement to carry out the re-
quirements of this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of such procedures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of how such record
is maintained and is made available’’;
(iv) by amending subparagraph (D) to
read as follows:
141
‘‘(D) CONSUMER
EDUCATION
INFORMA-
TION.—Certify that the State will collect and
disseminate to parents of eligible children and
the general public, consumer education informa-
tion that will promote informed child care
choices.’’;
(v) in subparagraph (E), to read as
follows:
‘‘(E) COMPLIANCE WITH STATE LICENSING
REQUIREMENTS.—
‘‘(i) IN
GENERAL.—Certify that the
State has in effect licensing requirements
applicable to child care services provided
within the State, and provide a detailed de-
scription of such requirements and of how
such requirements are effectively enforced.
Nothing in the preceding sentence shall be
construed to require that licensing require-
ments be applied to specific types of pro-
viders of child care services.
‘‘(ii) INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—In lieu of any licensing
and regulatory requirements applicable
under State and local law, the Secretary,
in consultation with Indian tribes and trib-
142
al organizations, shall develop minimum
child care standards (that appropriately re-
flect tribal needs and available resources)
that shall be applicable to Indian tribes
and tribal organization receiving assistance
under this subchapter.’’;
(vi) in subparagraph (G) by striking
‘‘Provide assurances’’ and inserting ‘‘Cer-
tify’’; and
(vii) by striking subparagraphs (H),
(I), and (J) and inserting the following:
‘‘(H) MEETING THE NEEDS OF CERTAIN
POPULATIONS.—Demonstrate the manner in
which the State will meet the specific child care
needs of families who are receiving assistance
under a State program under part A of title IV
of the Social Security Act, families who are at-
tempting through work activities to transition
off of such assistance program, and families
that are at risk of becoming dependent on such
assistance program.’’;
(B) in paragraph (3)—
(i) in subparagraph (A), by striking
‘‘(B) and (C)’’ and inserting ‘‘(B) through
(D)’’;
143
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the
reservation contained in subparagraph
(C), the’’ and inserting ‘‘AND RELAT-
ED ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘;
and’’ at the end and inserting a pe-
riod;
(III) by striking ‘‘for—’’ and all
that 
follows 
through 
‘‘section
658E(c)(2)(A)’’ and inserting ‘‘for
child care services on sliding fee scale
basis, activities that improve the qual-
ity or availability of such services, and
any other activity that the State
deems appropriate to realize any of
the goals specified in paragraphs (2)
through (5) of section 658A(b)’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to
read as follows:
‘‘(C) LIMITATION
ON
ADMINISTRATIVE
COSTS.—Not more than 5 percent of the aggre-
gate amount of funds available to the State to
carry out this subchapter by a State in each fis-
144
cal year may be expended for administrative
costs incurred by such State to carry out all of
its functions and duties under this subchapter.
As used in the preceding sentence, the term
‘administrative costs’ shall not include the costs
of providing direct services.’’; and
(iv) by adding at the end thereof the
following:
‘‘(D) ASSISTANCE
FOR
CERTAIN
FAMI-
LIES.—A State shall ensure that a substantial
portion of the amounts available (after the
State has complied with the requirement of sec-
tion 418(b)(2) of the Social Security Act with
respect to each of the fiscal years 1997 through
2002) to the State to carry out activities under
this subchapter in each fiscal year is used to
provide assistance to low-income working fami-
lies other than families described in paragraph
(2)(H).’’; and
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’
and inserting ‘‘certify’’;
(ii) in the first sentence by inserting
‘‘and shall provide a summary of the facts
relied on by the State to determine that
145
such rates are sufficient to ensure such ac-
cess’’ before the period; and
(iii) by striking the last sentence.
SEC. 3106. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b)(1) (42 U.S.C. 9858d(b)(1)) is
amended by striking ‘‘No’’ and inserting ‘‘Except as pro-
vided for in section 658O(c)(6), no’’.
SEC. 3107. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read
as follows:
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE.
‘‘A State that receives funds to carry out this sub-
chapter for a fiscal year, shall use not less than 4 percent
of the amount of such funds for activities that are de-
signed to provide comprehensive consumer education to
parents and the public, activities that increase parental
choice, and activities designed to improve the quality and
availability of child care (such as resource and referral
services).’’.
SEC. 3108. REPEAL OF EARLY CHILDHOOD DEVELOPMENT
AND BEFORE- AND AFTER-SCHOOL CARE RE-
QUIREMENT.
Section 658H (42 U.S.C. 9858f) is repealed.
146
SEC. 3109. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall
have’’ and all that follows through ‘‘(2)’’; and
(2) in the matter following clause (ii) of para-
graph (2)(A), by striking ‘‘finding and that’’ and all
that follows through the period and inserting ‘‘find-
ing and shall require that the State reimburse the
Secretary for any funds that were improperly ex-
pended for purposes prohibited or not authorized by
this subchapter, that the Secretary deduct from the
administrative portion of the State allotment for the
following fiscal year an amount that is less than or
equal to any improperly expended funds, or a com-
bination of such options.’’.
SEC. 3110. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended by
striking ‘‘expended’’ and inserting ‘‘obligated’’.
SEC. 3111. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL
REPORT’’ and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) 
COLLECTION
OF
INFORMATION
BY
STATES.—
147
‘‘(A) IN GENERAL.—A State that receives
funds to carry out this subchapter shall collect
the information described in subparagraph (B)
on a monthly basis.
‘‘(B) REQUIRED
INFORMATION.—The in-
formation required under this subparagraph
shall include, with respect to a family unit re-
ceiving assistance under this subchapter infor-
mation concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender, race, and age of
children receiving such assistance;
‘‘(iv) whether the family includes only
1 parent;
‘‘(v) the sources of family income, in-
cluding the amount obtained from (and
separately identified)—
‘‘(I) employment, including self-
employment;
‘‘(II) cash or other assistance
under part A of title IV of the Social
Security Act;
‘‘(III) housing assistance;
148
‘‘(IV) assistance under the Food
Stamp Act of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family
has received benefits;
‘‘(vii) the type of child care in which
the child was enrolled (such as family child
care, home care, or center-based child
care);
‘‘(viii) whether the child care provider
involved was a relative;
‘‘(ix) the cost of child care for such
families; and
‘‘(x) the average hours per week of
such care;
during the period for which such information is
required to be submitted.
‘‘(C) 
SUBMISSION
TO
SECRETARY.—A
State described in subparagraph (A) shall, on a
quarterly basis, submit the information required
to be collected under subparagraph (B) to the
Secretary.
‘‘(D) SAMPLING.—The Secretary may dis-
approve the information collected by a State
149
under this paragraph if the State uses sampling
methods to collect such information.
‘‘(2) BIANNUAL REPORTS.—Not later than De-
cember 31, 1997, and every 6 months thereafter, a
State described in paragraph (1)(A) shall prepare
and submit to the Secretary a report that includes
aggregate data concerning—
‘‘(A) the number of child care providers
that received funding under this subchapter as
separately identified based on the types of pro-
viders listed in section 658P(5);
‘‘(B) the monthly cost of child care serv-
ices, and the portion of such cost that is paid
for with assistance provided under this sub-
chapter, listed by the type of child care services
provided;
‘‘(C) the number of payments made by the
State through vouchers, contracts, cash, and
disregards under public benefit programs, listed
by the type of child care services provided;
‘‘(D) the manner in which consumer edu-
cation information was provided to parents and
the number of parents to whom such informa-
tion was provided; and
150
‘‘(E) the total number (without duplica-
tion) of children and families served under this
subchapter;
during the period for which such report is required
to be submitted.’’; and
(2) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a appli-
cation’’ and inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any
agency administering activities that receive’’
and inserting ‘‘the State that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’
and inserting ‘‘entitled’’.
SEC. 3112. REPORT BY THE SECRETARY.
Section 658L (42 U.S.C. 9858j) is amended—
(1) by striking ‘‘1993’’ and inserting ‘‘1997’’;
(2) by striking ‘‘annually’’ and inserting ‘‘bien-
nially’’; and
(3) by striking ‘‘Education and Labor’’ and in-
serting ‘‘Economic and Educational Opportunities’’.
SEC. 3113. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)
151
(i) by striking ‘‘POSSESSIONS’’ and in-
serting ‘‘POSSESSIONS’’;
(ii) 
by 
inserting 
‘‘and’’ 
after
‘‘States,’’; and
(iii) by striking ‘‘, and the Trust Ter-
ritory of the Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘3 per-
cent’’ and inserting ‘‘1 percent’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and
inserting ‘‘out’’; and
(B) by adding at the end thereof the fol-
lowing new paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FA-
CILITIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An
Indian tribe or tribal organization may submit
to the Secretary a request to use amounts pro-
vided under this subsection for construction or
renovation purposes.
‘‘(B) DETERMINATION.—With respect to a
request submitted under subparagraph (A), and
except as provided in subparagraph (C), upon a
determination by the Secretary that adequate
facilities are not otherwise available to an In-
152
dian tribe or tribal organization to enable such
tribe or organization to carry out child care
programs in accordance with this subchapter,
and that the lack of such facilities will inhibit
the operation of such programs in the future,
the Secretary may permit the tribe or organiza-
tion to use assistance provided under this sub-
section to make payments for the construction
or renovation of facilities that will be used to
carry out such programs.
‘‘(C) LIMITATION.—The Secretary may not
permit an Indian tribe or tribal organization to
use amounts provided under this subsection for
construction or renovation if such use will re-
sult in a decrease in the level of child care serv-
ices provided by the tribe or organization as
compared to the level of such services provided
by the tribe or organization in the fiscal year
preceding the year for which the determination
under subparagraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Sec-
retary shall develop and implement uniform
procedures for the solicitation and consideration
of requests under this paragraph.’’; and
153
(3) in subsection (e), by adding at the end
thereof the following new paragraph:
‘‘(4) INDIAN
TRIBES
OR
TRIBAL
ORGANIZA-
TIONS.—Any portion of a grant or contract made to
an Indian tribe or tribal organization under sub-
section (c) that the Secretary determines is not
being used in a manner consistent with the provision
of this subchapter in the period for which the grant
or contract is made available, shall be allotted by the
Secretary to other tribes or organizations that have
submitted applications under subsection (c) in ac-
cordance with their respective needs.’’.
SEC. 3114. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by
inserting ‘‘or as a deposit for child care services if
such a deposit is required of other children being
cared for by the provider’’ after ‘‘child care serv-
ices’’; and
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 per-
cent’’ and inserting ‘‘85 percent’’;
(4) in paragraph (5)(B)—
154
(A) by inserting ‘‘great grandchild, sibling
(if such provider lives in a separate residence),’’
after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘ap-
plicable’’.
(5) by striking paragraph (10);
(6) in paragraph (13)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory
of the Pacific Islands’’;
(7) in paragraph (14)—
(A) by striking ‘‘The term’’ and inserting
the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the fol-
lowing new subparagraph:
‘‘(B) OTHER ORGANIZATIONS.—Such term
includes a Native Hawaiian Organization, as
defined in section 4009(4) of the Augustus F.
Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of
1988 (20 U.S.C. 4909(4)) and a private non-
profit organization established for the purpose
155
of serving youth who are Indians or Native Ha-
waiians.’’.
SEC. 3115. REPEALS.
(a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT OF 1985.—Title VI of the Human Serv-
ices Reauthorization Act of 1986 (42 U.S.C. 10901–
10905) is repealed.
(b) STATE
DEPENDENT
CARE
DEVELOPMENT
GRANTS ACT.—Subchapter E of chapter 8 of subtitle A
of title VI of the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9871–9877) is repealed.
(c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title
X of the Elementary and Secondary Education Act of
1965, as amended by Public Law 103–382 (108 Stat.
3809 et seq.), is amended—
(1) in section 10413(a) by striking paragraph
(4),
(2) in section 10963(b)(2) by striking subpara-
graph (G), and
(3) in section 10974(a)(6) by striking subpara-
graph (G).
(d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION
CENTERS.—Section 9205 of the Native Hawaiian Edu-
cation Act (Public Law 103–382; 108 Stat. 3794) is re-
pealed.
156
(e) CERTAIN CHILD CARE PROGRAMS UNDER THE
SOCIAL SECURITY ACT.—
(1) AFDC AND
TRANSITIONAL
CHILD
CARE
PROGRAMS.—Section 402 of the Social Security Act
(42 U.S.C. 602) is amended by striking subsection
(g).
(2) AT-RISK CHILD CARE PROGRAM.—
(A) AUTHORIZATION.—Section 402 of the
Social Security Act (42 U.S.C. 602) is amended
by striking subsection (i).
(B) FUNDING
PROVISIONS.—Section 403
of the Social Security Act (42 U.S.C. 603) is
amended by striking subsection (n).
SEC. 3116. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this subtitle and the amendments made by this sub-
title shall take effect on October 1, 1996.
(b) EXCEPTION.—The amendment made by section
3303(a) shall take effect on the date of enactment of this
Act.
157
Subtitle B—Child Nutrition
Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH
ACT
SEC. 3201. STATE DISBURSEMENT TO SCHOOLS.
(a) IN GENERAL.—Section 8 of the National School
Lunch Act (42 U.S.C. 1757) is amended—
(1) in the third sentence, by striking ‘‘Nothing’’
and all that follows through ‘‘educational agency to’’
and inserting ‘‘The State educational agency may’’;
(2) by striking the fourth and fifth sentences;
(3) by redesignating the first through sixth sen-
tences, as amended by paragraph (1), as subsections
(a) through (f), respectively;
(4) in subsection (b), as redesignated by para-
graph (3), by striking ‘‘the preceding sentence’’ and
inserting ‘‘subsection (a)’’; and
(5) in subsection (d), as redesignated by para-
graph (3), by striking ‘‘Such food costs’’ and insert-
ing ‘‘Use of funds paid to States’’.
(b) DEFINITION OF CHILD.—Section 12(d) of the Act
(42 U.S.C. 1760(d)) is amended by adding at the end the
following:
‘‘(9) ‘child’ includes an individual, regardless of
age, who—
158
‘‘(A) is determined by a State educational
agency, in accordance with regulations pre-
scribed by the Secretary, to have 1 or more
mental or physical disabilities; and
‘‘(B) is attending any institution, as de-
fined in section 17(a), or any nonresidential
public or nonprofit private school of high school
grade or under, for the purpose of participating
in a school program established for individuals
with mental or physical disabilities.
No institution that is not otherwise eligible to par-
ticipate in the program under section 17 shall be
considered eligible because of this paragraph.’’.
SEC. 3202. NUTRITIONAL AND OTHER PROGRAM REQUIRE-
MENTS.
(a) NUTRITIONAL STANDARDS.—Section 9(a) of the
National School Lunch Act (42 U.S.C. 1758(a)) is amend-
ed—
(1) in paragraph (2)—
(A) by striking ‘‘(2)(A) Lunches’’ and in-
serting ‘‘(2) Lunches’’;
(B) by striking subparagraph (B); and
(C) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(2) by striking paragraph (3); and
159
(3) by redesignating paragraph (4) as para-
graph (3).
(b) ELIGIBILITY GUIDELINES.—Section 9(b) of the
Act is amended—
(1) in paragraph (2)—
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively;
(2) in paragraph (5), by striking the third sen-
tence; and
(3) in paragraph (6), by striking ‘‘paragraph
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’.
(c) UTILIZATION
OF
AGRICULTURAL
COMMOD-
ITIES.—Section 9(c) of the Act is amended by striking the
second, fourth, and sixth sentences.
(d) CONFORMING AMENDMENT.—The last sentence
of section 9(d)(1) of the Act is amended by striking ‘‘sub-
section (b)(2)(C)’’ and inserting ‘‘subsection (b)(2)(B)’’.
(e) NUTRITIONAL INFORMATION.—Section 9(f) of the
Act is amended—
(1) by striking paragraph (1);
(2) by striking ‘‘(2)’’;
(3) by redesignating subparagraphs (A) through
(D) as paragraphs (1) through (4), respectively;
160
(4) by striking paragraph (1), as redesignated
by paragraph (3), and inserting the following:
‘‘(1) NUTRITIONAL REQUIREMENTS.—Except as
provided in paragraph (2), not later than the first
day of the 1996–1997 school year, schools that are
participating in the school lunch or school breakfast
program shall serve lunches and breakfasts under
the program that—
‘‘(A) are consistent with the goals of the
most recent Dietary Guidelines for Americans
published under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341); and
‘‘(B) provide, on the average over each
week, at least—
‘‘(i) with respect to school lunches, 1⁄3
of the daily recommended dietary allow-
ance established by the Food and Nutrition
Board of the National Research Council of
the National Academy of Sciences; and
‘‘(ii) with respect to school breakfasts,
1⁄4 of the daily recommended dietary allow-
ance established by the Food and Nutrition
Board of the National Research Council of
the National Academy of Sciences.’’;
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(5) in paragraph (3), as redesignated by para-
graph (3)—
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively; and
(B) in subparagraph (A), as so redesig-
nated, by redesignating subclauses (I) and (II)
as clauses (i) and (ii), respectively; and
(6) in paragraph (4), as redesignated by para-
graph (3)—
(A) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;
(B) in subparagraph (A) (as redesignated
by subparagraph (A)), by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), re-
spectively; and
(C) in subparagraph (A)(ii) (as redesig-
nated by subparagraph (B)), by striking ‘‘sub-
paragraph (C)’’ and inserting ‘‘paragraph (3)’’.
(f) USE OF RESOURCES.—Section 9 of the Act is
amended by striking subsection (h).
SEC. 3203. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 9(b)(2) of the National School Lunch Act (42
U.S.C. 1758(b)(2)), as amended by section 3202(b)(1), is
further amended by adding at the end the following:
162
‘‘(C) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free
and reduced price policy statement to a State
educational agency under this Act unless there
is a substantive change in the free and reduced
price policy of the school. A routine change in
the policy of a school, such as an annual adjust-
ment of the income eligibility guidelines for free
and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.’’.
SEC. 3204. SPECIAL ASSISTANCE.
(a) EXTENSION
OF
PAYMENT
PERIOD.—Section
11(a)(1)(D)(i) of the National School Lunch Act (42
U.S.C. 1759a(a)(1)(D)(i)) is amended by striking ‘‘, on
the date of enactment of this subparagraph,’’.
(b) APPLICABILITY OF OTHER PROVISIONS.—Section
11 of the Act is amended—
(1) by striking subsection (d);
(2) in subsection (e)(2)—
(A) by striking ‘‘The’’ and inserting ‘‘On
request of the Secretary, the’’; and
(B) by striking ‘‘each month’’; and
163
(3) by redesignating subsections (e) and (f), as
so amended, as subsections (d) and (e), respectively.
SEC. 3205. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
(a) ACCOUNTS AND RECORDS.—Section 12(a) of the
National School Lunch Act (42 U.S.C. 1760(a)) is amend-
ed by striking ‘‘at all times be available’’ and inserting
‘‘be available at any reasonable time’’.
(b) RESTRICTION
ON
REQUIREMENTS.—Section
12(c) of the Act is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
(c) DEFINITIONS.—Section 12(d) of the Act, as
amended by section 3201(b), is further amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
Commonwealth of the Northern Mariana Islands’’;
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and
(5) through (9) as paragraphs (6), (7), (3), (4), (2),
(5), and (1), respectively, and rearranging the para-
graphs so as to appear in numerical order.
(d) ADJUSTMENTS
TO NATIONAL AVERAGE PAY-
MENT RATES.—Section 12(f) of the Act is amended by
striking ‘‘the Trust Territory of the Pacific Islands,’’.
164
(e) EXPEDITED RULEMAKING.—Section 12(k) of the
Act is amended—
(1) by striking paragraphs (1), (2), and (5);
and
(2) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(f) WAIVER.—Section 12(l) of the Act is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii), by adding ‘‘and’’ at the
end;
(B) in clause (iv), by striking the semi-
colon at the end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)—
(A) by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B) through
(D);
(3) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘of any requirement relating’’
and inserting ‘‘that increases Federal costs or
that relates’’;
(B) by striking subparagraph (D);
165
(C) by redesignating subparagraphs (E)
through (N) as subparagraphs (D) through
(M), respectively; and
(D) in subparagraph (L), as redesignated
by subparagraph (C), by striking ‘‘and’’ at the
end and inserting ‘‘or’’; and
(4) in paragraph (6)—
(A) by striking ‘‘(A)(i)’’ and all that fol-
lows through ‘‘(B)’’; and
(B) by redesignating clauses (i) through
(iv) as subparagraphs (A) through (D), respec-
tively.
(g) FOOD AND NUTRITION PROJECTS.—Section 12
of the Act is amended by striking subsection (m).
SEC. 3206. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a)
of the National School Lunch Act (42 U.S.C. 1761(a))
is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘initi-
ate, maintain, and expand’’ and inserting ‘‘initi-
ate and maintain’’; and
166
(B) in subparagraph (E) of the second
sentence, by striking ‘‘the Trust Territory of
the Pacific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as
provided in subparagraph (C), private’’ and inserting
‘‘Private’’.
(b) SERVICE INSTITUTIONS.—Section 13(b) of the
Act is amended by striking ‘‘(b)(1)’’ and all that follows
through the end of paragraph (1) and inserting the follow-
ing:
‘‘(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
service operations (which cost shall include the
costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
‘‘(B) MAXIMUM
AMOUNTS.—Subject to
subparagraph (C), payments to any institution
under subparagraph (A) shall not exceed—
‘‘(i) $1.82 for each lunch and supper
served;
‘‘(ii) $1.13 for each breakfast served;
and
167
‘‘(iii) 46 cents for each meal supple-
ment served.
‘‘(C) ADJUSTMENTS.—Amounts specified
in subparagraph (B) shall be adjusted on Janu-
ary 1, 1997, and each January 1 thereafter, to
the nearest lower cent increment in accordance
with the changes for the 12-month period end-
ing the preceding November 30 in the series for
food away from home of the Consumer Price
Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Depart-
ment of Labor. Each adjustment shall be based
on the unrounded adjustment for the prior 12-
month period.’’.
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—
Section 13(b)(2) of the Act is amended—
(1) in the first sentence, by striking ‘‘four
meals’’ and inserting ‘‘3 meals, or 2 meals and 1
supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act
is amended—
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
168
(i) by striking ‘‘, and such higher edu-
cation institutions,’’; and
(ii) by striking ‘‘without application’’
and inserting ‘‘upon showing residence in
areas in which poor economic conditions
exist or on the basis of income eligibility
statements for children enrolled in the pro-
gram’’; and
(B) by adding at the end the following:
‘‘The higher education institutions referred to
in the preceding sentence shall be eligible to
participate in the program under this para-
graph without application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe
need’’; and
(4) 
by 
redesignating 
subparagraphs 
(B)
through (E), as so amended, as subparagraphs (A)
through (D), respectively.
(e) 
ADVANCE
PROGRAM
PAYMENTS.—Section
13(e)(1) of the Act is amended—
(1) by striking ‘‘institution: Provided, That (A)
the’’ and inserting ‘‘institution. The’’;
(2) by inserting ‘‘(excluding a school)’’ after
‘‘any service institution’’; and
169
(3) by striking ‘‘responsibilities, and (B) no’’
and inserting ‘‘responsibilities. No’’.
(f) FOOD REQUIREMENTS.—Section 13(f) of the Act
is amended—
(1) by redesignating the first through seventh
sentences as paragraphs (1) through (7), respec-
tively;
(2) by striking paragraph (3), as redesignated
by paragraph (1);
(3) in paragraph (4), as redesignated by para-
graph (1), by striking ‘‘the first sentence’’ and in-
serting ‘‘paragraph (1)’’;
(4) in paragraph (6), as redesignated by para-
graph (1), by striking ‘‘that bacteria levels’’ and all
that follows through the period at the end and in-
serting ‘‘conformance with standards set by local
health authorities.’’; and
(5) by redesignating paragraphs (4) through
(7), as redesignated by paragraph (1), as para-
graphs (3) through (6), respectively.
(g) PERMITTING OFFER VERSUS SERVE.—Section
13(f) of the Act, as amended by subsection (f), is further
amended by adding at the end the following:
‘‘(7) OFFER VERSUS SERVE.—A school food au-
thority participating as a service institution may
170
permit a child attending a site on school premises
operated directly by the authority to refuse not more
than 1 item of a meal that the child does not intend
to consume. A refusal of an offered food item shall
not affect the amount of payments made under this
section to a school for the meal.’’.
(h) FOOD SERVICE MANAGEMENT COMPANIES.—
Section 13(l) of the Act is amended—
(1) by striking paragraph (4);
(2) in paragraph (5), by striking the first sen-
tence; and
(3) by redesignating paragraph (5), as so
amended, as paragraph (4).
(i) RECORDS.—The second sentence of section 13(m)
of the Act is amended by striking ‘‘at all times be avail-
able’’ and inserting ‘‘be available at any reasonable time’’.
(j) REMOVING MANDATORY NOTICE
TO INSTITU-
TIONS.—Section 13(n)(2) of the Act is amended by strik-
ing ‘‘, and its plans and schedule for informing service
institutions of the availability of the program’’.
(k) PLAN.—Section 13(n) of the Act is amended—
(1) in paragraph (2), by striking ‘‘, including
the State’s methods of assessing need’’;
(2) by striking paragraph (3);
171
(3) in paragraph (4), by striking ‘‘and sched-
ule’’; and
(4) by redesignating paragraphs (4) through
(7), as so amended, as paragraphs (3) through (6),
respectively.
(l) MONITORING AND TRAINING.—Section 13(q) of
the Act is amended—
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ‘‘paragraphs
(1) and (2) of this subsection’’ and inserting ‘‘para-
graph (1)’’; and
(3) by redesignating paragraph (3), as so
amended, as paragraph (2).
(m) EXPIRED PROGRAM.—Section 13 of the Act is
amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r), as
so amended, as subsections (p) and (q), respectively.
(n) EFFECTIVE DATE.—The amendments made by
subsection (b) shall become effective on January 1, 1997.
SEC. 3207. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DO-
NATIONS.—Section 14(b) of the National School Lunch
Act (42 U.S.C. 1762a(b)) is amended—
(1) by striking paragraph (1); and
172
(2) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(b) IMPACT
STUDY
AND
PURCHASING
PROCE-
DURES.—Section 14(d) of the Act is amended by striking
the second and third sentences.
(c) CASH
COMPENSATION
FOR
PILOT
PROJECT
SCHOOLS.—Section 14(g) of the Act is amended by strik-
ing paragraph (3).
(d) STATE
ADVISORY
COUNCIL.—Section 14 is
amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g), as
so amended, as subsections (e) and (f), respectively.
SEC. 3208. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of
the National School Lunch Act (42 U.S.C. 1766) is
amended—
(1) in the section heading, by striking ‘‘AND
ADULT’’; and
(2) in the first sentence of subsection (a), by
striking ‘‘initiate, maintain, and expand’’ and insert-
ing ‘‘initiate and maintain’’.
(b) PAYMENTS
TO SPONSOR EMPLOYEES.—Para-
graph (2) of the last sentence of section 17(a) of the Act
(42 U.S.C. 1766(a)) is amended—
173
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does
not base payments to an employee of the orga-
nization on the number of family or group day
care homes recruited.’’.
(c) TECHNICAL ASSISTANCE.—The last sentence of
section 17(d)(1) of the Act is amended by striking ‘‘, and
shall provide technical assistance’’ and all that follows
through ‘‘its application’’.
(d) REIMBURSEMENT
OF CHILD CARE INSTITU-
TIONS.—Section 17(f)(2)(B) of the Act (42 U.S.C.
1766(f)(2)(B)) is amended by striking ‘‘two meals and two
supplements or three meals and one supplement’’ and in-
serting ‘‘two meals and one supplement’’.
(e) IMPROVED TARGETING OF DAY CARE HOME RE-
IMBURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the Act is
amended by striking ‘‘(3)(A) Institutions’’ and all
174
that follows through the end of subparagraph (A)
and inserting the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP
DAY CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN
GENERAL.—An institution
that participates in the program under this
section as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the
organization, 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 ge-
ographic area, as defined by the
Secretary based on census data,
in which at least 50 percent of
175
the children residing in the area
are members of households whose
incomes meet the income eligi-
bility guidelines for free or re-
duced price meals under section
9;
‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or
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 in-
come is verified by the sponsor-
ing organization of the home
176
under regulations established by
the Secretary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier
I family or group day care home shall
be provided reimbursement factors
under this clause without a require-
ment for documentation of the costs
described in clause (i), except that re-
imbursement shall not be provided
under this subclause for meals or sup-
plements served to the children of a
person acting as a family or group
day care home provider unless the
children meet the income eligibility
guidelines for free or reduced price
meals under section 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reim-
bursement factors applied to a home
referred to in subclause (II) shall be
the factors in effect on July 1, 1996.
‘‘(IV) ADJUSTMENTS.—The re-
imbursement factors under this sub-
paragraph shall be adjusted on July
177
1, 1997, and each July 1 thereafter,
to reflect changes in the Consumer
Price Index for food at home for the
most recent 12-month period for
which the data are available. The re-
imbursement factors under this sub-
paragraph shall be rounded to the
nearest lower cent increment and
based on the unrounded adjustment in
effect on June 30 of the preceding
school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a
family or group day care home
that does not meet the criteria
set forth in clause (ii)(I), the re-
imbursement factors shall be 90
cents for lunches and suppers, 25
cents for breakfasts, and 10
cents for supplements.
178
‘‘(bb) ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-
month period for which the data
are available. The reimbursement
factors under this item shall be
rounded down to the nearest
lower cent increment and based
on the unrounded adjustment for
the preceding 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 docu-
mentation of the costs described
in clause (i), except that reim-
bursement shall not be provided
under this subclause for meals or
supplements served to the chil-
dren of a person acting as a fam-
ily or group day care home pro-
179
vider unless the children meet the
income eligibility guidelines for
free or reduced price meals under
section 9.
‘‘(II) OTHER FACTORS.—A fam-
ily or group day care home that does
not meet the criteria set forth in
clause (ii)(I) may elect to be provided
reimbursement factors determined in
accordance 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).
180
‘‘(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
eligibility guidelines, the family
or group day care home shall be
provided reimbursement factors
in accordance with subclause (I).
‘‘(III) INFORMATION
AND
DE-
TERMINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
scribed in subclause (II), the
family or group day care home
sponsoring organization serving
the home shall collect the nec-
essary income information, as de-
termined by the Secretary, from
any parent or other caretaker to
make the determinations speci-
fied in subclause (II) and shall
make the determinations in ac-
181
cordance with rules prescribed by
the Secretary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
participating in or subsidized
under, or a child with a parent
participating in or subsidized
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the eligibility standard for free or
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)
182
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not
to have income statements col-
lected from parents or other care-
takers.
‘‘(IV) SIMPLIFIED MEAL COUNT-
ING AND REPORTING PROCEDURES.—
The Secretary shall prescribe sim-
plified meal counting and reporting
procedures for use by a family or
group day care home that elects to
claim the factors under subclause (II)
and by a family or group day care
home sponsoring organization that
sponsors the home. The procedures
the Secretary prescribes may include
1 or more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the
number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under clause (ii)(III)
and an annual percentage of the
183
number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under subclause (I),
based on the family income of
children enrolled in the home in a
specified month or other period.
‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the
percentage of children in the
home whose households have in-
comes that meet the income eligi-
bility guidelines under section 9,
with each such reimbursement
category carrying a set of reim-
bursement factors such as the
factors prescribed under clause
(ii)(III) or subclause (I) or fac-
tors established within the range
of factors prescribed under clause
(ii)(III) and subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
184
‘‘(V) 
MINIMUM
VERIFICATION
REQUIREMENTS.—The Secretary may
establish any necessary minimum ver-
ification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSIST-
ANCE TO FAMILY OR GROUP DAY CARE HOMES.—
Section 17(f)(3) of the Act is amended by adding at
the end the following:
‘‘(D) GRANTS TO STATES TO PROVIDE AS-
SISTANCE
TO
FAMILY
OR
GROUP
DAY
CARE
HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) 
RESERVATION.—From
amounts made available to carry out
this section, the Secretary shall re-
serve $5,000,000 of the amount made
available for fiscal year 1997.
‘‘(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
185
and other appropriate organiza-
tions, in securing and providing
training, materials, automated
data processing assistance, and
other assistance for the staff of
the sponsoring organizations; and
‘‘(bb) training and other as-
sistance to family and group day
care homes in the implementation
of the amendment to subpara-
graph 
(A) 
made 
by 
section
3208(e)(1) of the Personal Re-
sponsibility and Work Oppor-
tunity Act of 1996.
‘‘(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 num-
ber of family day care homes partici-
pating in the program in a State dur-
ing fiscal year 1995 as a percentage
of the number of all family day care
186
homes participating in the program
during fiscal year 1995.
‘‘(iii) RETENTION OF FUNDS.—Of the
amount of funds made available to a State
for fiscal year 1997 under clause (i), the
State may retain not to exceed 30 percent
of the amount to carry out this subpara-
graph.
‘‘(iv) ADDITIONAL
PAYMENTS.—Any
payments received under this subpara-
graph shall be in addition to payments
that a State receives under subparagraph
(A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of
the Act, as amended by paragraph (2), is further
amended by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANI-
ZATIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child care food program under
this section data from the most recent de-
cennial census survey or other appropriate
census survey for which the data are avail-
187
able showing which areas in the State meet
the 
requirements 
of 
subparagraph
(A)(ii)(I)(aa). The State agency shall pro-
vide the data to family or group day care
home sponsoring organizations located in
the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) 
IN
GENERAL.—A 
State
agency administering the school lunch
program under this Act or the school
breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) shall provide to ap-
proved family or group day care home
sponsoring organizations a list of
schools serving elementary school chil-
dren 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 create
the list annually and provide the list
on a timely basis to any approved
family or group day care home spon-
188
soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
tier I family or group day care home
under subparagraph (A)(ii)(I), the
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring
organization, shall use the most cur-
rent available data at the time of the
determination.
‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a de-
termination that a family or group day
care home is located in an area that quali-
fies the home as a tier I family or group
day care home (as the term is defined in
subparagraph (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 ef-
fect until more recent census data are
189
available) unless the State agency deter-
mines that the area in which the home is
located no longer qualifies the home as a
tier I family or group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the Act is amended by inserting ‘‘except as pro-
vided in subsection (f)(3),’’ after ‘‘For purposes of
this section,’’ each place it appears in paragraphs
(1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is
amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the
third and fourth sentences; and
(B) in subparagraph (C)—
(i) by striking ‘‘(i)’’ and
(ii) by striking clause (ii); and
(2) in paragraph (4), by striking ‘‘shall’’ and
inserting ‘‘may’’ in the first sentence.
(g) 
NUTRITIONAL
REQUIREMENTS.—Section
17(g)(1) of the Act is amended—
(1) in subparagraph (A), by striking the second
sentence; and
(2) in subparagraph (B), by striking the second
sentence.
190
(h) 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 develop-
ing plans to fulfill the requirements of this subsection.’’.
(i) RECORDS.—The second sentence of section 17(m)
of the Act is amended by striking ‘‘at all times’’ and in-
serting ‘‘at any reasonable time’’.
(j) MODIFICATION
OF ADULT CARE FOOD PRO-
GRAM.—Section 17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘adult day care centers’’
and inserting ‘‘day care centers for chronically
impaired disabled persons’’; and
(B) by striking ‘‘to persons 60 years of age
or older or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’
and inserting ‘‘day care center for chron-
ically impaired disabled persons’’; and
191
(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and in-
serting ‘‘persons’’; and
(III) by striking ‘‘or persons 60
years of age or older’’; and
(B) in subparagraph (B), by striking
‘‘adult day care services’’ and inserting ‘‘day
care services for chronically impaired disabled
persons’’.
(k) UNNEEDED PROVISION.—Section 17 of the Act
is amended by striking subsection (q).
(l) CONFORMING AMENDMENTS.—
(1) Section 17B(f) of the Act (42 U.S.C.
1766b(f)) is amended—
(A) in the subsection heading, by striking
‘‘AND ADULT’’; and
(B) in paragraph (1), by striking ‘‘and
adult’’.
(2) Section 18(e)(3)(B) of the Act (42 U.S.C.
1769(e)(3)(B)) is amended by striking ‘‘and adult’’.
(3) Section 25(b)(1)(C) of the Act (42 U.S.C.
1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.
192
(4) Section 3(1) of the Healthy Meals for
Healthy Americans Act of 1994 (Public Law 103–
448) is amended by striking ‘‘and adult’’.
(m) 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
paragraphs (1) and (4) of subsection (e) shall be-
come effective on July 1, 1997.
(3) REGULATIONS.—
(A) INTERIM
REGULATIONS.—Not later
than January 1, 1997, the Secretary shall issue
interim regulations to implement—
(i) the amendments made by para-
graphs (1), (3), and (4) of subsection (e);
and
(ii) section 17(f)(3)(C) of the National
School 
Lunch 
Act 
(42 
U.S.C.
1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than
July 1, 1997, the Secretary shall issue final
193
regulations to implement the provisions of law
referred to in subparagraph (A).
(n) STUDY OF IMPACT OF AMENDMENTS ON PRO-
GRAM PARTICIPATION AND FAMILY DAY CARE LICENS-
ING.—
(1) IN
GENERAL.—The Secretary of Agri-
culture, in conjunction with the Secretary of Health
and Human Services, shall study the impact of the
amendments made by this section on—
(A) the number of family day care homes
participating in the child care food program es-
tablished under section 17 of the National
School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsor-
ing organizations participating in the program;
(C) the number of day care homes that are
licensed, certified, registered, or approved by
each State in accordance with regulations is-
sued by the Secretary;
(D) the rate of growth of the numbers re-
ferred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of
meals served in family day care homes that—
(i) received reimbursement under the
program prior to the amendments made by
194
this section but do not receive reimburse-
ment after the amendments made by this
section; or
(ii) received full reimbursement under
the program prior to the amendments
made by this section but do not receive full
reimbursement 
after 
the 
amendments
made by this section; and
(F) the proportion of low-income children
participating in the program prior to the
amendments made by this section and the pro-
portion of low-income children participating in
the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency par-
ticipating in the child care food program under sec-
tion 17 of the National School Lunch Act (42
U.S.C. 1766) shall submit to the Secretary data
on—
(A) the number of family day care homes
participating in the program on June 30, 1997,
and June 30, 1998;
(B) the number of family day care homes
licensed, certified, registered, or approved for
195
service on June 30, 1997, and June 30, 1998;
and
(C) such other data as the Secretary may
require to carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2
years after the effective date of this section, the Sec-
retary shall submit the study required under this
subsection to the Committee on Economic and Edu-
cational Opportunities of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 3209. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the
National School Lunch Act (42 U.S.C. 1769(d)) is amend-
ed—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting
‘‘may’’; and
196
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each
of fiscal years 1997 and 1998.’’.
(c) ELIMINATING PROJECTS.—Section 18 of the Act
is amended—
(1) by striking subsections (a) and (g) through
(i); and
(2) by redesignating subsections (b) through
(f), as so amended, as subsections (a) through (e),
respectively.
(d) 
CONFORMING
AMENDMENT.—Section
17B(d)(1)(A) of the Act (42 U.S.C. 1766b(d)(1)(A)) is
amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.
SEC. 3210. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42
U.S.C. 1769a) is repealed.
SEC. 3211. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42
U.S.C. 1769d) is repealed.
197
SEC. 3212. NUTRITION GUIDANCE FOR CHILD NUTRITION
PROGRAMS.
Section 24 of the National School Lunch Act (42
U.S.C. 1769e) is repealed.
SEC. 3213. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42
U.S.C. 1769g) is repealed.
CHAPTER 2—CHILD NUTRITION ACT OF
1966
SEC. 3221. SPECIAL MILK PROGRAM.
Section 3(a)(3) of the Child Nutrition Act of 1966
(42 U.S.C. 1772(a)(3)) is amended by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth of the Northern Mariana Islands’’.
SEC. 3222. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966
(42 U.S.C. 1773(b)(1)) is amended by adding at the end
the following:
‘‘(E) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
school shall not be required to submit a free
and reduced price policy statement to a State
educational agency under this Act unless there
is a substantive change in the free and reduced
price policy of the school. A routine change in
the policy of a school, such as an annual adjust-
198
ment of the income eligibility guidelines for free
and reduced price meals, shall not be sufficient
cause for requiring the school to submit a policy
statement.’’.
SEC. 3223. SCHOOL BREAKFAST PROGRAM AUTHORIZA-
TION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD
PREPARATION.—Section 4(e)(1) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘(A)’’; and
(2) by striking subparagraph (B).
(b) EXPANSION OF PROGRAM; STARTUP AND EXPAN-
SION COSTS.—
(1) IN
GENERAL.—Section 4 of the Act is
amended by striking subsections (f) and (g).
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall become effective on October
1, 1996.
SEC. 3224. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION
ADMINISTRATION; STUDIES.—Section 7 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1776) is amended—
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i)
as subsections (e), (f), and (g), respectively.
199
(b) APPROVAL OF CHANGES.—Section 7(e) of the
Act, as so redesignated, is amended—
(1) by striking ‘‘each year an annual plan’’ and
inserting ‘‘the initial fiscal year a plan’’; and
(2) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall only be re-
quired to submit to the Secretary for approval a
substantive change in the plan.’’.
SEC. 3225. REGULATIONS.
Section 10(b) of the Child Nutrition Act of 1966 (42
U.S.C. 1779(b)) is amended—
(1) in paragraph (1), by striking ‘‘(1)’’; and
(2) by striking paragraphs (2) through (4).
SEC. 3226. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42
U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
SEC. 3227. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
Section 15 of the Child Nutrition Act of 1966 (42
U.S.C. 1784) is amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
200
Commonwealth of the Northern Mariana Islands’’;
and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting
‘‘and’’ at the end; and
(B) by striking ‘‘, and (C)’’ and all that
follows through ‘‘Governor of Puerto Rico’’.
SEC. 3228. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1785(a)) is amended by
striking ‘‘at all times be available’’ and inserting ‘‘be avail-
able at any reasonable time’’.
SEC. 3229. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS, AND CHILDREN.
(a) DEFINITIONS.—Section 17(b) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of
not more than 365 days’’ after ‘‘accommodation’’;
and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’
at the end; and
(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C).
201
(b) SECRETARY’S PROMOTION
OF WIC.—Section
17(c) of the Act is amended by striking paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the
Act is amended by striking paragraph (4).
(d) NUTRITION EDUCATION AND DRUG ABUSE EDU-
CATION.—Section 17(e) of the Act is amended—
(1) in the first sentence of paragraph (1), by
striking ‘‘shall ensure’’ and all that follows through
‘‘is provided’’ and inserting ‘‘shall provide nutrition
education and may provide drug abuse education’’;
(2) in paragraph (2), by striking the third sen-
tence;
(3) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘shall’’;
(B) by striking subparagraph (A);
(C) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively;
(D) in subparagraphs (A) and (B) (as re-
designated), by inserting ‘‘shall’’ before ‘‘pro-
vide’’ each place it appears;
(E) in subparagraph (A) (as redesignated),
by striking ‘‘and’’ at the end;
202
(F) in subparagraph (B) (as redesignated),
by striking the period and inserting ‘‘; and’’;
and
(G) by adding at the end the following:
‘‘(C) may provide a local agency with materials
describing other programs for which participants in
the program may be eligible.’’;
(4) in paragraph (5), by striking ‘‘The State’’
and all that follows through ‘‘local agency shall’’ and
inserting ‘‘Each local agency shall’’; and
(5) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Act is amend-
ed—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Sec-
retary, by a date specified by the Sec-
retary, a’’ and inserting ‘‘to the Secretary,
by a date specified by the Secretary, an
initial’’; and
(ii) by adding at the end the follow-
ing: ‘‘After submitting the initial plan, a
State shall only be required to submit to
the Secretary for approval a substantive
change in the plan.’’;
203
(B) in subparagraph (C)—
(i) by striking clause (iii) and insert-
ing the following:
‘‘(iii) a plan to coordinate operations under the
program with other services or programs that may
benefit participants in, and applicants for, the pro-
gram;’’;
(ii) in clause (vi), by inserting after
‘‘in the State’’ the following: ‘‘(including a
plan to improve access to the program for
participants and prospective applicants
who are employed, or who reside in rural
areas)’’;
(iii) in clause (vii), by striking ‘‘to
provide program benefits’’ and all that fol-
lows through ‘‘emphasis on’’ and inserting
‘‘for’’;
(iv) by striking clauses (ix), (x), and
(xii);
(v) in clause (xiii), by striking ‘‘may
require’’ and inserting ‘‘may reasonably re-
quire’’; and
(vi) by redesignating clauses (xi) and
(xiii), as so amended, as clauses (ix) and
(x), respectively;
204
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as
subparagraph (D);
(2) by striking paragraphs (2), (6), (8), and
(22);
(3) in the second sentence of paragraph (5), by
striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’;
(4) in paragraph (9)(B), by striking the second
sentence;
(5) in the first sentence of paragraph (11), by
striking ‘‘, including standards that will ensure suffi-
cient State agency staff’’;
(6) in paragraph (12), by striking the third sen-
tence;
(7) in paragraph (14), by striking ‘‘shall’’ and
inserting ‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to ac-
commodate’’ and all that follows through ‘‘facili-
ties’’;
(9) in paragraph (19), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(10) by redesignating paragraphs (3), (4), (5),
(7), (9) through (19), (20), (21), (23), and (24), as
so amended, as paragraphs (2), (3), (4), (5), (6)
205
through (16), (17), (18), (19), and (20), respec-
tively.
(f) INFORMATION.—Section 17(g) of the Act is
amended—
(1) in paragraph (5), by striking ‘‘the report re-
quired under subsection (d)(4)’’ and inserting ‘‘re-
ports on program participant characteristics’’; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Act is
amended—
(A) in paragraph (4)(E), by striking ‘‘and,
on’’ and all that follows through ‘‘(d)(4)’’;
(B) in paragraph (8)—
(i) by striking subparagraphs (A),
(C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’;
and
(II) 
by 
striking 
clauses 
(ii)
through (ix);
(iii) in subparagraph (I), by striking
‘‘Secretary—’’ and all that follows through
‘‘(v) may’’ and inserting ‘‘Secretary may’’;
206
(iv) by redesignating subparagraphs
(B) and (D) through (L) as subparagraphs
(A) and (B) through (J), respectively;
(v) in subparagraph (A)(i), as so re-
designated, by striking ‘‘subparagraphs
(C), (D), and (E)(iii), in carrying out sub-
paragraph (A),’’ and inserting ‘‘subpara-
graphs (B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so re-
designated, by striking ‘‘subparagraph
(B)’’ each place it appears and inserting
‘‘subparagraph (A)’’; and
(vii) in subparagraph (C)(iii), as so
redesignated, by striking ‘‘subparagraph
(B)’’ and inserting ‘‘subparagraph (A)’’;
and
(C) in paragraph (10)(B)—
(i) in clause (i), by striking the semi-
colon and inserting ‘‘; and’’;
(ii) in clause (ii), by striking ‘‘; and’’
and inserting a period; and
(iii) by striking clause (iii).
(2) APPLICATION.—The amendments made by
paragraph (1) shall not apply to a contract for the
procurement of infant formula under section
207
17(h)(8) of the Act that is in effect on the effective
date of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL,
INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of
the Act is amended by striking ‘‘Secretary shall designate’’
and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEM-
ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS-
TEM.—Section 17 of the Act is amended by striking sub-
sections (n), (o), and (p).
(j) DISQUALIFICATION OF VENDORS WHO ARE DIS-
QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec-
tion 17 of the Act, as so amended, is further amended
by adding at the end the following:
‘‘(n) DISQUALIFICATION
OF VENDORS WHO ARE
DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this section of an approved vendor that is dis-
qualified from accepting benefits under the food
stamp program established under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
208
‘‘(A) shall be for the same period as the
disqualification 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) shall not be subject to judicial or ad-
ministrative review.’’.
SEC. 3230. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42
U.S.C. 1787) is repealed.
SEC. 3231. NUTRITION EDUCATION AND TRAINING.
(a) FINDINGS.—Section 19 of the Child Nutrition
Act of 1966 (42 U.S.C. 1788) is amended—
(1) in subsection (a), by striking ‘‘that—’’ and
all that follows through the period at the end and
inserting ‘‘that effective dissemination of scientif-
ically valid information to children participating or
eligible to participate in the school lunch and related
child nutrition programs should be encouraged.’’;
and
(2) in subsection (b), by striking ‘‘encourage’’
and all that follows through ‘‘establishing’’ and in-
serting ‘‘establish’’.
209
(b) USE OF FUNDS.—Section 19(f) of the Act is
amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through
(xix);
(iii) by redesignating clauses (i)
through (viii) and (xx) as subparagraphs
(A) through (H) and (I), respectively;
(iv) in subparagraph (I), as so redes-
ignated, by striking the period at the end
and inserting ‘‘; and’’; and
(v) by adding at the end the following:
‘‘(J) other appropriate related activities, as de-
termined by the State.’’;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as para-
graph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS.—The sec-
ond sentence of section 19(g)(1) of the Act is amended
by striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’.
210
(d) STATE COORDINATORS FOR NUTRITION; STATE
PLAN.—Section 19(h) of the Act is amended—
(1) in the second sentence of paragraph (1)—
(A) by striking ‘‘as provided in paragraph
(2) of this subsection’’; and
(B) by striking ‘‘as provided in paragraph
(3) of this subsection’’;
(2) in paragraph (2), by striking the second
and third sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS.—Section
19(i) of the Act is amended—
(1) in the first sentence of paragraph (2)(A), by
striking ‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(3) by inserting after paragraph (2) the follow-
ing:
‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated to carry out this section
$10,000,000 for each of fiscal years 1997
through 2002.
‘‘(B) GRANTS.—
211
‘‘(i) IN
GENERAL.—Grants to each
State from the amounts made available
under subparagraph (A) shall be based on
a rate of 50 cents for each child enrolled
in schools or institutions within the State,
except that no State shall receive an
amount less than $75,000 per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the
amount made available for any fiscal year
is insufficient to pay the amount to which
each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’.
(f) ASSESSMENT.—Section 19 of the Act is amended
by striking subsection (j).
(g) EFFECTIVE DATE.—The amendments made by
subsection (e) shall become effective on October 1, 1996.
CHAPTER 3—MISCELLANEOUS
PROVISIONS
SEC. 3241. COORDINATION OF SCHOOL LUNCH, SCHOOL
BREAKFAST, AND SUMMER FOOD SERVICE
PROGRAMS.
(a) COORDINATION.—
(1) IN GENERAL.—The Secretary of Agriculture
shall develop proposed changes to the regulations
212
under the school lunch program under the National
School Lunch Act, the summer food service program
under section 13 of that Act, and the school break-
fast program under section 4 of the Child Nutrition
Act of 1966, for the purpose of simplifying and co-
ordinating those programs into a comprehensive
meal program.
(2) CONSULTATION.—In developing proposed
changes to the regulations under paragraph (1), the
Secretary of Agriculture shall consult with local,
State, and regional administrators of the programs
described in such paragraph.
(b) REPORT.—Not later than November 1, 1997, the
Secretary of Agriculture shall submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Economic and Educational Opportunities of
the House of Representatives a report containing the pro-
posed changes developed under subsection (a).
Subtitle C—Related Provisions
SEC. 3301. REQUIREMENT THAT DATA RELATING TO THE
INCIDENCE OF POVERTY IN THE UNITED
STATES BE PUBLISHED AT LEAST EVERY 2
YEARS.
(a) IN GENERAL.—The Secretary shall, to the extent
feasible, produce and publish for each State, county, and
213
local unit of general purpose government for which data
have been compiled in the then most recent census of pop-
ulation under section 141(a) of title 13, United States
Code, and for each school district, data relating to the in-
cidence of poverty. Such data may be produced by means
of sampling, estimation, or any other method that the Sec-
retary determines will produce current, comprehensive,
and reliable data.
(b) CONTENT; FREQUENCY.—Data under this sec-
tion—
(1) shall include—
(A) for each school district, the number of
children age 5 to 17, inclusive, in families below
the poverty level; and
(B) for each State and county referred to
in subsection (a), the number of individuals age
65 or older below the poverty level; and
(2) shall be published—
(A) for each State, county, and local unit
of general purpose government referred to in
subsection (a), in 1997 and at least every sec-
ond year thereafter; and
(B) for each school district, in 1999 and at
least every second year thereafter.
(c) AUTHORITY TO AGGREGATE.—
214
(1) IN GENERAL.—If reliable data could not
otherwise be produced, the Secretary may, for pur-
poses of subsection (b)(1)(A), aggregate school dis-
tricts, but only to the extent necessary to achieve re-
liability.
(2) INFORMATION RELATING TO USE OF AU-
THORITY.—Any data produced under this subsection
shall be appropriately identified and shall be accom-
panied by a detailed explanation as to how and why
aggregation was used (including the measures taken
to minimize any such aggregation).
(d) REPORT TO BE SUBMITTED WHENEVER DATA
IS NOT TIMELY PUBLISHED.—If the Secretary is unable
to produce and publish the data required under this sec-
tion for any State, county, local unit of general purpose
government, or school district in any year specified in sub-
section (b)(2), a report shall be submitted by the Secretary
to the President of the Senate and the Speaker of the
House of Representatives, not later than 90 days before
the start of the following year, enumerating each govern-
ment or school district excluded and giving the reasons
for the exclusion.
(e) CRITERIA RELATING TO POVERTY.—In carrying
out this section, the Secretary shall use the same criteria
relating to poverty as were used in the then most recent
215
census of population under section 141(a) of title 13,
United States Code (subject to such periodic adjustments
as may be necessary to compensate for inflation and other
similar factors).
(f) CONSULTATION.—The Secretary shall consult
with the Secretary of Education in carrying out the re-
quirements of this section relating to school districts.
(g) DEFINITION.—For the purpose of this section,
the term ‘‘Secretary’’ means the Secretary of Health and
Human Services.
(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$1,500,000 for each of fiscal years 1997 through 2000.
SEC. 3302. SENSE OF THE CONGRESS.
It is the sense of the Congress that this title, and
the amendments made by this title, should not result in
an increase in the number of children who are hungry,
homeless, poor, or medically uninsured.
SEC. 3303. LEGISLATIVE ACCOUNTABILITY.
In the event that this title, or the amendments made
by this title, results in an increase in the number of chil-
dren in the United States who are hungry, homeless, poor,
or medically uninsured by the end of the fiscal year 1997,
the Congress—
216
(1) shall revisit the provisions of this title, or
the amendments made by this title, which caused
such increase; and
(2) shall, as soon as practicable thereafter, pass
legislation that stops the continuation of such in-
crease.
TITLE IV—COMMITTEE ON WAYS
AND MEANS
SEC. 4001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity and Work Opportunity Act of 1996’’.
SEC. 4002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 4001. Short title.
Sec. 4002. Table of contents.
Subtitle A—Block Grants for Temporary Assistance for Needy Families
Sec. 4101. Findings.
Sec. 4102. Reference to Social Security Act.
Sec. 4103. Block grants to States.
Sec. 4104. Services provided by charitable, religious, or private organizations.
Sec. 4105. Census data on grandparents as primary caregivers for their grand-
children.
Sec. 4106. Report on data processing.
Sec. 4107. Study on alternative outcomes measures.
Sec. 4108. Conforming amendments to the Social Security Act.
Sec. 4109. Conforming amendments to the Food Stamp Act of 1977 and relat-
ed provisions.
Sec. 4110. Conforming amendments to other laws.
Sec. 4111. Development of prototype of counterfeit-resistant social security
card required.
Sec. 4112. Disclosure of receipt of Federal funds.
Sec. 4113. Modifications to the job opportunities for certain low-income individ-
uals program.
Sec. 4114. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 4115. Conforming amendments to medicaid program.
Sec. 4116. Effective date; transition rule.
217
Subtitle B—Supplemental Security Income
Sec. 4200. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY RESTRICTIONS
Sec. 4201. Denial of SSI benefits for 10 years to individuals found to have
fraudulently misrepresented residence in order to obtain bene-
fits simultaneously in 2 or more States.
Sec. 4202. Denial of SSI benefits for fugitive felons and probation and parole
violators.
Sec. 4203. Treatment of prisoners.
Sec. 4204. Effective date of application for benefits.
CHAPTER 2—BENEFITS FOR DISABLED CHILDREN
Sec. 4211. Definition and eligibility rules.
Sec. 4212. Eligibility redeterminations and continuing disability reviews.
Sec. 4213. Additional accountability requirements.
Sec. 4214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Sec. 4215. Regulations.
CHAPTER 3—ADDITIONAL ENFORCEMENT PROVISIONS
Sec. 4221. Installment payment of large past-due supplemental security income
benefits.
Sec. 4222. Recovery of supplemental security income overpayments from social
security benefits.
Sec. 4223. Regulations.
CHAPTER 4—STATE SUPPLEMENTATION PROGRAMS
Sec. 4225. Repeal of maintenance of effort requirements applicable to optional
State programs for supplementation of SSI benefits.
CHAPTER 5—STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME
PROGRAM
Sec. 4231. Annual report on the supplemental security income program.
Sec. 4232. Study of disability determination process.
Sec. 4233. Study by General Accounting Office.
CHAPTER 6—NATIONAL COMMISSION ON THE FUTURE OF DISABILITY
Sec. 4241. Establishment.
Sec. 4242. Duties of the commission.
Sec. 4243. Membership.
Sec. 4244. Staff and support services.
Sec. 4245. Powers of commission.
Sec. 4246. Reports.
Sec. 4247. Termination.
Sec. 4248. Authorization of appropriations.
Subtitle C—Child Support
Sec. 4300. Reference to Social Security Act.
CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
218
Sec. 4301. State obligation to provide child support enforcement services.
Sec. 4302. Distribution of child support collections.
Sec. 4303. Privacy safeguards.
Sec. 4304. Rights to notification of hearings.
CHAPTER 2—LOCATE AND CASE TRACKING
Sec. 4311. State case registry.
Sec. 4312. Collection and disbursement of support payments.
Sec. 4313. State directory of new hires.
Sec. 4314. Amendments concerning income withholding.
Sec. 4315. Locator information from interstate networks.
Sec. 4316. Expansion of the Federal Parent Locator Service.
Sec. 4317. Collection and use of social security numbers for use in child sup-
port enforcement.
CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 4321. Adoption of uniform State laws.
Sec. 4322. Improvements to full faith and credit for child support orders.
Sec. 4323. Administrative enforcement in interstate cases.
Sec. 4324. Use of forms in interstate enforcement.
Sec. 4325. State laws providing expedited procedures.
CHAPTER 4—PATERNITY ESTABLISHMENT
Sec. 4331. State laws concerning paternity establishment.
Sec. 4332. Outreach for voluntary paternity establishment.
Sec. 4333. Cooperation by applicants for and recipients of part A assistance.
CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING
Sec. 4341. Performance-based incentives and penalties.
Sec. 4342. Federal and State reviews and audits.
Sec. 4343. Required reporting procedures.
Sec. 4344. Automated data processing requirements.
Sec. 4345. Technical assistance.
Sec. 4346. Reports and data collection by the Secretary.
Sec. 4347. Child support delinquency penalty.
CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 4351. Simplified process for review and adjustment of child support or-
ders.
Sec. 4352. Furnishing consumer reports for certain purposes relating to child
support.
Sec. 4353. Nonliability for financial institutions providing financial records to
State child support enforcement agencies in child support
cases.
CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS
Sec. 4361. Internal Revenue Service collection of arrearages.
Sec. 4362. Authority to collect support from Federal employees.
Sec. 4363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 4364. Voiding of fraudulent transfers.
Sec. 4365. Work requirement for persons owing past-due child support.
219
Sec. 4366. Definition of support order.
Sec. 4367. Reporting arrearages to credit bureaus.
Sec. 4368. Liens.
Sec. 4369. State law authorizing suspension of licenses.
Sec. 4370. Denial of passports for nonpayment of child support.
Sec. 4371. International support enforcement.
Sec. 4372. Financial institution data matches.
Sec. 4373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 4374. Nondischargeability in bankruptcy of certain debts for the support
of a child.
CHAPTER 8—MEDICAL SUPPORT
Sec. 4376. Correction to ERISA definition of medical child support order.
Sec. 4377. Enforcement of orders for health care coverage.
CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-
RESIDENTIAL PARENTS
Sec. 4381. Grants to States for access and visitation programs.
CHAPTER 10—EFFECTIVE DATES AND CONFORMING AMENDMENTS
Sec. 4391. Effective dates and conforming amendments.
Subtitle D—Restricting Welfare and Public Benefits for Aliens
Sec. 4400. Statements of national policy concerning welfare and immigration.
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 4401. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 4402. Limited eligibility of qualified aliens for certain Federal programs.
Sec. 4403. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
Sec. 4404. Notification and information reporting.
CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS
PROGRAMS
Sec. 4411. Aliens who are not qualified aliens or nonimmigrants ineligible for
State and local public benefits.
Sec. 4412. State authority to limit eligibility of qualified aliens for State public
benefits.
CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 4421. Federal attribution of sponsor’s income and resources to alien.
Sec. 4422. Authority for States to provide for attribution of sponsors income
and resources to the alien with respect to State programs.
Sec. 4423. Requirements for sponsor’s affidavit of support.
CHAPTER 4—GENERAL PROVISIONS
Sec. 4431. Definitions.
Sec. 4432. Verification of eligibility for Federal public benefits.
Sec. 4433. Statutory construction.
220
Sec. 4434. Communication between State and local government agencies and
the Immigration and Naturalization Service.
Sec. 4435. Qualifying quarters.
CHAPTER 5—CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
Sec. 4441. Conforming amendments relating to assisted housing.
CHAPTER 6—EARNED INCOME CREDIT DENIED TO UNAUTHORIZED
EMPLOYEES
Sec. 4451. Earned income credit denied to individuals not authorized to be em-
ployed in the United States.
Subtitle E—Reform of Public Housing
Sec. 4601. Fraud under means-tested welfare and public assistance programs.
Subtitle F—Child Protection Block Grant Programs and Foster Care,
Adoption Assistance, and Independent Living Programs
CHAPTER 1—CHILD PROTECTION BLOCK GRANT PROGRAM AND FOSTER
CARE, ADOPTION ASSISTANCE, AND INDEPENDENT LIVING PROGRAMS
SUBCHAPTER A—BLOCK GRANTS TO STATES FOR THE PROTECTION OF
CHILDREN
Sec. 4701. Establishment of program.
Sec. 4702. Conforming amendments.
SUBCHAPTER B—FOSTER CARE, ADOPTION ASSISTANCE, AND INDEPENDENT
LIVING PROGRAMS
Sec. 4711. Conforming amendments to part E of title IV.
SUBCHAPTER C—MISCELLANEOUS
Sec. 4721. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 4722. Sense of the Congress regarding timely adoption of children.
Sec. 4723. Removal of barriers to interethnic adoption.
Sec. 4724. Effective date; transition rules.
CHAPTER 2—CHILD AND FAMILY SERVICES BLOCK GRANT
Sec. 4751. Child and family services block grant.
Sec. 4752. Reauthorizations.
Sec. 4753. Repeals.
Subtitle G—Reductions in Federal Government Positions
Sec. 4801. Reductions.
Sec. 4802. Reductions in Federal bureaucracy.
Sec. 4803. Reducing personnel in Washington, D.C. area.
Subtitle H—Miscellaneous
Sec. 4901. Appropriation by State legislatures.
Sec. 4902. Sanctioning for testing positive for controlled substances.
Sec. 4903. Reduction in block grants to States for social services.
221
Subtitle A—Block Grants for Tem-
porary 
Assistance 
for 
Needy
Families
SEC. 4101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful
society.
(2) Marriage is an essential institution of a suc-
cessful society which promotes the interests of chil-
dren.
(3) Promotion of responsible fatherhood and
motherhood is integral to successful child rearing
and the well-being of children.
(4) In 1992, only 54 percent of single-parent
families with children had a child support order es-
tablished and, of that 54 percent, only about one-
half received the full amount due. Of the cases en-
forced through the public child support enforcement
system, only 18 percent of the caseload has a collec-
tion.
(5) The number of individuals receiving aid to
families with dependent children (in this section re-
ferred to as ‘‘AFDC’’) has more than tripled since
1965. More than two-thirds of these recipients are
children. Eighty-nine percent of children receiving
222
AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of
children receiving AFDC benefits—
(I) was 3,300,000 in 1965;
(II) was 6,200,000 in 1970;
(III) was 7,400,000 in 1980; and
(IV) was 9,300,000 in 1992.
(ii) While the number of children receiving
AFDC benefits increased nearly threefold be-
tween 1965 and 1992, the total number of chil-
dren in the United States aged 0 to 18 has de-
clined by 5.5 percent.
(B) The Department of Health and
Human Services has estimated that 12,000,000
children will receive AFDC benefits within 10
years.
(C) The increase in the number of children
receiving public assistance is closely related to
the increase in births to unmarried women. Be-
tween 1970 and 1991, the percentage of live
births to unmarried women increased nearly
threefold, from 10.7 percent to 29.5 percent.
(6) The increase of out-of-wedlock pregnancies
and births is well documented as follows:
223
(A) It is estimated that the rate of non-
marital teen pregnancy rose 23 percent from 54
pregnancies per 1,000 unmarried teenagers in
1976 to 66.7 pregnancies in 1991. The overall
rate of nonmarital pregnancy rose 14 percent
from 90.8 pregnancies per 1,000 unmarried
women in 1980 to 103 in both 1991 and 1992.
In contrast, the overall pregnancy rate for mar-
ried couples decreased 7.3 percent between
1980 and 1991, from 126.9 pregnancies per
1,000 married women in 1980 to 117.6 preg-
nancies in 1991.
(B) The total of all out-of-wedlock births
between 1970 and 1991 has risen from 10.7
percent to 29.5 percent and if the current trend
continues, 50 percent of all births by the year
2015 will be out-of-wedlock.
(7) The negative consequences of an out-of-wed-
lock birth on the mother, the child, the family, and
society are well documented as follows:
(A) Young women 17 and under who give
birth outside of marriage are more likely to go
on public assistance and to spend more years
on welfare once enrolled. These combined ef-
fects of ‘‘younger and longer’’ increase total
224
AFDC costs per household by 25 percent to 30
percent for 17-year-olds.
(B) Children born out-of-wedlock have a
substantially higher risk of being born at a very
low or moderately low birth weight.
(C) Children born out-of-wedlock are more
likely to experience low verbal cognitive attain-
ment, as well as more child abuse, and neglect.
(D) Children born out-of-wedlock were
more likely to have lower cognitive scores, lower
educational aspirations, and a greater likelihood
of becoming teenage parents themselves.
(E) Being born out-of-wedlock significantly
reduces the chances of the child growing up to
have an intact marriage.
(F) Children born out-of-wedlock are 3
times more likely to be on welfare when they
grow up.
(8) Currently 35 percent of children in single-
parent homes were born out-of-wedlock, nearly the
same percentage as that of children in single-parent
homes whose parents are divorced (37 percent).
While many parents find themselves, through divorce
or tragic circumstances beyond their control, facing
the difficult task of raising children alone, neverthe-
225
less, the negative consequences of raising children in
single-parent homes are well documented as follows:
(A) Only 9 percent of married-couple fami-
lies with children under 18 years of age have
income below the national poverty level. In con-
trast, 46 percent of female-headed households
with children under 18 years of age are below
the national poverty level.
(B) Among single-parent families, nearly
1⁄2 of the mothers who never married received
AFDC while only 1⁄5 of divorced mothers re-
ceived AFDC.
(C) Children born into families receiving
welfare assistance are 3 times more likely to be
on welfare when they reach adulthood than chil-
dren not born into families receiving welfare.
(D) Mothers under 20 years of age are at
the greatest risk of bearing low-birth-weight ba-
bies.
(E) The younger the single parent mother,
the less likely she is to finish high school.
(F) Young women who have children be-
fore finishing high school are more likely to re-
ceive welfare assistance for a longer period of
time.
226
(G) Between 1985 and 1990, the public
cost of births to teenage mothers under the aid
to families with dependent children program,
the food stamp program, and the medicaid pro-
gram has been estimated at $120,000,000,000.
(H) The absence of a father in the life of
a child has a negative effect on school perform-
ance and peer adjustment.
(I) Children of teenage single parents have
lower cognitive scores, lower educational aspira-
tions, and a greater likelihood of becoming teen-
age parents themselves.
(J) Children of single-parent homes are 3
times more likely to fail and repeat a year in
grade school than are children from intact 2-
parent families.
(K) Children from single-parent homes are
almost 4 times more likely to be expelled or sus-
pended from school.
(L) Neighborhoods with larger percentages
of youth aged 12 through 20 and areas with
higher percentages of single-parent households
have higher rates of violent crime.
(M) Of those youth held for criminal of-
fenses within the State juvenile justice system,
227
only 29.8 percent lived primarily in a home with
both parents. In contrast to these incarcerated
youth, 73.9 percent of the 62,800,000 children
in the Nation’s resident population were living
with both parents.
(9) Therefore, in light of this demonstration of
the crisis in our Nation, it is the sense of the Con-
gress that prevention of out-of-wedlock pregnancy
and reduction in out-of-wedlock birth are very im-
portant Government interests and the policy con-
tained in part A of title IV of the Social Security
Act (as amended by section 4103(a) of this Act) is
intended to address the crisis.
SEC. 4102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
SEC. 4103. BLOCK GRANTS TO STATES.
(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601
et seq.) is amended—
(1) by striking all that precedes section 418 (as
added by section 4803(b)(2) of this Act) and insert-
ing the following:
228
‘‘PART A—BLOCK GRANTS TO STATES FOR
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
‘‘SEC. 401. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to
increase the flexibility of States in operating a program
designed to—
‘‘(1) provide assistance to needy families so that
children may be cared for in their own homes or in
the homes of relatives;
‘‘(2) end the dependence of needy parents on
government benefits by promoting job preparation,
work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; and
‘‘(4) encourage the formation and maintenance
of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part
shall not be interpreted to entitle any individual or family
to assistance under any State program funded under this
part.
‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.
‘‘(a) IN GENERAL.—As used in this part, the term
‘eligible State’ means, with respect to a fiscal year, a State
that, during the 2-year period immediately preceding the
229
fiscal year, has submitted to the Secretary a plan that the
Secretary has found includes the following:
‘‘(1) OUTLINE
OF
FAMILY
ASSISTANCE
PRO-
GRAM.—
‘‘(A) GENERAL
PROVISIONS.—A written
document that outlines how the State intends to
do the following:
‘‘(i) Conduct a program, designed to
serve all political subdivisions in the State
(not necessarily in a uniform manner),
that provides assistance to needy families
with (or expecting) children and provides
parents with job preparation, work, and
support services to enable them to leave
the program and become self-sufficient.
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to
engage in work (as defined by the State)
once the State determines the parent or
caretaker is ready to engage in work, or
once the parent or caretaker has received
assistance under the program for 24
months (whether or not consecutive),
whichever is earlier.
230
‘‘(iii) Ensure that parents and care-
takers receiving assistance under the pro-
gram engage in work activities in accord-
ance with section 407.
‘‘(iv) Take such reasonable steps as
the State deems necessary to restrict the
use and disclosure of information about in-
dividuals and families receiving assistance
under the program attributable to funds
provided by the Federal Government.
‘‘(B) SPECIAL PROVISIONS.—
‘‘(i) The document shall indicate
whether the State intends to treat families
moving into the State from another State
differently than other families under the
program, and if so, how the State intends
to treat such families under the program.
‘‘(ii) The document shall indicate
whether the State intends to provide as-
sistance under the program to individuals
who are not citizens of the United States,
and if so, shall include an overview of such
assistance.
‘‘(iii) The document shall set forth ob-
jective criteria for the delivery of benefits
231
and the determination of eligibility and for
fair and equitable treatment, including an
explanation of how the State will provide
opportunities for recipients who have been
adversely affected to be heard in a State
administrative or appeal process.
‘‘(2) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE
A
CHILD
SUPPORT
ENFORCEMENT
PRO-
GRAM.—A certification by the chief executive officer
of the State that, during the fiscal year, the State
will operate a child support enforcement program
under the State plan approved under part D.
‘‘(3) CERTIFICATION
THAT
THE
STATE
WILL
OPERATE A CHILD PROTECTION PROGRAM.—A cer-
tification by the chief executive officer of the State
that, during the fiscal year, the State will operate a
child protection program under the State plan ap-
proved under part B.
‘‘(4) CERTIFICATION OF THE ADMINISTRATION
OF THE PROGRAM.—A certification by the chief ex-
ecutive officer of the State specifying which State
agency or agencies will administer and supervise the
program referred to in paragraph (1) for the fiscal
year, which shall include assurances that local gov-
ernments and private sector organizations—
232
‘‘(A) have been consulted regarding the
plan and design of welfare services in the State
so that services are provided in a manner ap-
propriate to local populations; and
‘‘(B) have had at least 45 days to submit
comments on the plan and the design of such
services.
‘‘(5) CERTIFICATION
THAT
THE
STATE
WILL
PROVIDE INDIANS WITH EQUITABLE ACCESS TO AS-
SISTANCE.—A certification by the chief executive of-
ficer of the State that, during the fiscal year, the
State will provide each Indian who is a member of
an Indian tribe in the State that does not have a
tribal family assistance plan approved under section
412 with equitable access to assistance under the
State program funded under this part attributable to
funds provided by the Federal Government.
‘‘(b) PUBLIC AVAILABILITY OF STATE PLAN SUM-
MARY.—The State shall make available to the public a
summary of any plan submitted by the State under this
section.
‘‘SEC. 403. GRANTS TO STATES.
‘‘(a) GRANTS.—
‘‘(1) FAMILY ASSISTANCE GRANT.—
233
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary,
for each of fiscal years 1996, 1997, 1998,
1999, 2000, and 2001 a grant in an amount
equal to the State family assistance grant.
‘‘(B) STATE
FAMILY
ASSISTANCE
GRANT
DEFINED.—As used in this part, the term
‘State family assistance grant’ means the great-
est of—
‘‘(i) 1⁄3 of the total amount required
to be paid to the State under former sec-
tion 403 (as in effect on September 30,
1995) for fiscal years 1992, 1993, and
1994 (other than with respect to amounts
expended by the State for child care under
subsection (g) or (i) of former section 402
(as so in effect));
‘‘(ii)(I) the total amount required to
be paid to the State under former section
403 for fiscal year 1994 (other than with
respect to amounts expended by the State
for child care under subsection (g) or (i) of
former section 402 (as so in effect)); plus
‘‘(II) an amount equal to 85 percent
of the amount (if any) by which the total
234
amount required to be paid to the State
under former section 403(a)(5) for emer-
gency assistance for fiscal year 1995 ex-
ceeds the total amount required to be paid
to 
the 
State 
under 
former 
section
403(a)(5) for fiscal year 1994, if, during
fiscal year 1994 or 1995, the Secretary ap-
proved under former section 402 an
amendment to the former State plan to
allow the provision of emergency assistance
in the context of family preservation; or
‘‘(iii) 4⁄3 of the total amount required
to be paid to the State under former sec-
tion 403 (as in effect on September 30,
1995) for the 1st 3 quarters of fiscal year
1995 (other than with respect to amounts
expended by the State under the State
plan approved under part F (as so in ef-
fect) or for child care under subsection (g)
or (i) of former section 402 (as so in ef-
fect)), plus the total amount required to be
paid to the State for fiscal year 1995
under former section 403(l) (as so in ef-
fect).
235
‘‘(C) TOTAL
AMOUNT
REQUIRED
TO
BE
PAID TO THE STATE UNDER FORMER SECTION
403 DEFINED.—As used in this part, the term
‘total amount required to be paid to the State
under former section 403’ means, with respect
to a fiscal year—
‘‘(i) in the case of a State to which
section 1108 does not apply, the sum of—
‘‘(I) the Federal share of mainte-
nance assistance expenditures for the
fiscal year, before reduction pursuant
to subparagraph (B) or (C) of section
403(b)(2) (as in effect on September
30, 1995), as reported by the State on
ACF Form 231;
‘‘(II) the Federal share of admin-
istrative expenditures (including ad-
ministrative expenditures for the de-
velopment of management information
systems) for the fiscal year, as re-
ported by the State on ACF Form
231;
‘‘(III) the Federal share of emer-
gency assistance expenditures for the
236
fiscal year, as reported by the State
on ACF Form 231;
‘‘(IV) the Federal share of ex-
penditures for the fiscal year with re-
spect to child care pursuant to sub-
sections (g) and (i) of former section
402 (as in effect on September 30,
1995), as reported by the State on
ACF Form 231; and
‘‘(V) the aggregate amount re-
quired to be paid to the State for the
fiscal year with respect to the State
program operated under part F (as in
effect on September 30, 1995), as de-
termined by the Secretary, including
additional obligations or reductions in
obligations made after the close of the
fiscal year; and
‘‘(ii) in the case of a State to which
section 1108 applies, the lesser of—
‘‘(I) the sum described in clause
(i); or
‘‘(II) the total amount certified
by the Secretary under former section
237
403 (as in effect during the fiscal
year) with respect to the territory.
‘‘(D) INFORMATION TO BE USED IN DE-
TERMINING AMOUNTS.—
‘‘(i) FOR
FISCAL
YEARS
1992
AND
1993.—
‘‘(I) In determining the amounts
described in subclauses (I) through
(IV) of subparagraph (C)(i) for any
State for each of fiscal years 1992
and 1993, the Secretary shall use in-
formation available as of April 28,
1995.
‘‘(II) In determining the amount
described in subparagraph (C)(i)(V)
for any State for each of fiscal years
1992 and 1993, the Secretary shall
use information available as of Janu-
ary 6, 1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In de-
termining the amounts described in sub-
paragraph (C)(i) for any State for fiscal
year 1994, the Secretary shall use informa-
tion available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
238
‘‘(I) In determining the amount
described in subparagraph (B)(ii)(II)
for any State for fiscal year 1995, the
Secretary shall use the information
which was reported by the States and
estimates made by the States with re-
spect to emergency assistance expend-
itures and was available as of August
11, 1995.
‘‘(II) In determining the amounts
described in subclauses (I) through
(III) of subparagraph (C)(i) for any
State for fiscal year 1995, the Sec-
retary shall use information available
as of October 2, 1995.
‘‘(III) In determining the amount
described in subparagraph (C)(i)(IV)
for any State for fiscal year 1995, the
Secretary shall use information avail-
able as of February 28, 1996.
‘‘(IV) In determining the amount
described in subparagraph (C)(i)(V)
for any State for fiscal year 1995, the
Secretary shall use information avail-
able as of October 5, 1995.
239
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1996, 1997, 1998, 1999, 2000, and
2001 such sums as are necessary for grants
under this paragraph.
‘‘(2) GRANT TO REWARD STATES THAT REDUCE
OUT-OF-WEDLOCK BIRTHS.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary
for fiscal year 1998 or any succeeding fiscal
year, a grant in an amount equal to the State
family assistance grant multiplied by—
‘‘(i) 5 percent if—
‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 1
percentage point lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for
the fiscal year is less than the rate of
induced pregnancy terminations in the
State for fiscal year 1995; or
‘‘(ii) 10 percent if—
240
‘‘(I) the illegitimacy ratio of the
State for the fiscal year is at least 2
percentage points lower than the ille-
gitimacy ratio of the State for fiscal
year 1995; and
‘‘(II) the rate of induced preg-
nancy terminations in the State for
the fiscal year is less than the rate of
induced pregnancy terminations in the
State for fiscal year 1995.
‘‘(B) ILLEGITIMACY
RATIO.—As used in
this paragraph, the term ‘illegitimacy ratio’
means, with respect to a State and a fiscal
year—
‘‘(i) the number of out-of-wedlock
births that occurred in the State during
the most recent fiscal year for which such
information is available; divided by
‘‘(ii) the number of births that oc-
curred in the State during the most recent
fiscal year for which such information is
available.
‘‘(C) DISREGARD
OF
CHANGES
IN
DATA
DUE TO CHANGED REPORTING METHODS.—For
241
purposes of subparagraph (A), the Secretary
shall disregard—
‘‘(i) any difference between the illegit-
imacy ratio of a State for a fiscal year and
the illegitimacy ratio of the State for fiscal
year 1995 which is attributable to a
change in State methods of reporting data
used to calculate the illegitimacy ratio; and
‘‘(ii) any difference between the rate
of induced pregnancy terminations in a
State for a fiscal year and such rate for
fiscal year 1995 which is attributable to a
change in State methods of reporting data
used to calculate such rate.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal year 1998 and for each succeeding fiscal
year such sums as are necessary for grants
under this paragraph.
‘‘(3) SUPPLEMENTAL GRANT FOR POPULATION
INCREASES IN CERTAIN STATES.—
‘‘(A) IN GENERAL.—Each qualifying State
shall, subject to subparagraph (F), be entitled
to receive from the Secretary—
242
‘‘(i) for fiscal year 1997 a grant in an
amount equal to 2.5 percent of the total
amount required to be paid to the State
under former section 403 (as in effect dur-
ing fiscal year 1994) for fiscal year 1994;
and
‘‘(ii) for each of fiscal years 1998,
1999, and 2000, a grant in an amount
equal to the sum of—
‘‘(I) the amount (if any) required
to be paid to the State under this
paragraph for the immediately preced-
ing fiscal year; and
‘‘(II) 2.5 percent of the sum of—
‘‘(aa) the total amount re-
quired to be paid to the State
under former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; and
‘‘(bb) the amount (if any)
required to be paid to the State
under this paragraph for the fis-
cal year preceding the fiscal year
for which the grant is to be
made.
243
‘‘(B) PRESERVATION OF GRANT WITHOUT
INCREASES
FOR
STATES
FAILING
TO
REMAIN
QUALIFYING STATES.—Each State that is not a
qualifying State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to subpara-
graph (F), be entitled to receive from the Sec-
retary for the specified fiscal year, a grant in
an amount equal to the amount required to be
paid to the State under this paragraph for the
most recent fiscal year for which the State was
a qualifying State.
‘‘(C) QUALIFYING STATE.—
‘‘(i) IN
GENERAL.—For purposes of
this paragraph, a State is a qualifying
State for a fiscal year if—
‘‘(I) the level of welfare spending
per poor person by the State for the
immediately preceding fiscal year is
less than the national average level of
State welfare spending per poor per-
son for such preceding fiscal year; and
‘‘(II) the population growth rate
of the State (as determined by the
Bureau of the Census) for the most
244
recent fiscal year for which informa-
tion is available exceeds the average
population growth rate for all States
(as so determined) for such most re-
cent fiscal year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL
YEAR 1997.—Notwithstanding clause (i), a
State shall not be a qualifying State for
any fiscal year after 1997 by reason of
clause (i) if the State is not a qualifying
State for fiscal year 1997 by reason of
clause (i).
‘‘(iii) 
CERTAIN
STATES
DEEMED
QUALIFYING
STATES.—For purposes of
this paragraph, a State is deemed to be a
qualifying State for fiscal years 1997,
1998, 1999, and 2000 if—
‘‘(I) the level of welfare spending
per poor person by the State for fiscal
year 1996 is less than 35 percent of
the national average level of State
welfare spending per poor person for
fiscal year 1996; or
‘‘(II) the population of the State
increased by more than 10 percent
245
from April 1, 1990 to July 1, 1994,
according to the population estimates
in publication CB94–204 of the Bu-
reau of the Census.
‘‘(D) DEFINITIONS.—As used in this para-
graph:
‘‘(i) LEVEL OF WELFARE SPENDING
PER
POOR
PERSON.—The term ‘level of
State welfare spending per poor person’
means, with respect to a State and a fiscal
year—
‘‘(I) the sum of—
‘‘(aa) the total amount re-
quired to be paid to the State
under former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; and
‘‘(bb) the amount (if any)
paid to the State under this
paragraph for the immediately
preceding fiscal year; divided by
‘‘(II) the number of individuals,
according to the 1990 decennial cen-
sus, who were residents of the State
246
and whose income was below the pov-
erty line.
‘‘(ii) NATIONAL AVERAGE LEVEL OF
STATE
WELFARE
SPENDING
PER
POOR
PERSON.—The term ‘national average level
of State welfare spending per poor person’
means, with respect to a fiscal year, an
amount equal to—
‘‘(I) the total amount required to
be paid to the States under former
section 403 (as in effect during fiscal
year 1994) for fiscal year 1994; di-
vided by
‘‘(II) the number of individuals,
according to the 1990 decennial cen-
sus, who were residents of any State
and whose income was below the pov-
erty line.
‘‘(iii) 
STATE.—The 
term 
‘State’
means each of the 50 States of the United
States and the District of Columbia.
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1997, 1998, 1999, and 2000 such
247
sums as are necessary for grants under this
paragraph, in a total amount not to exceed
$800,000,000.
‘‘(F) GRANTS REDUCED PRO RATA IF IN-
SUFFICIENT APPROPRIATIONS.—If the amount
appropriated pursuant to this paragraph for a
fiscal year is less than the total amount of pay-
ments otherwise required to be made under this
paragraph for the fiscal year, then the amount
otherwise payable to any State for the fiscal
year under this paragraph shall be reduced by
a percentage equal to the amount so appro-
priated divided by such total amount.
‘‘(G) BUDGET SCORING.—Notwithstanding
section 257(b)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985, the
baseline shall assume that no grant shall be
made under this paragraph after fiscal year
2000.
‘‘(4) BONUS TO REWARD HIGH PERFORMANCE
STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is a high performing State.
248
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to a high
performing State for a bonus year, which
shall be based on the score assigned to the
State under subparagraph (D)(i) for the
fiscal year that immediately precedes the
bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of
the State family assistance grant.
‘‘(C) FORMULA
FOR
MEASURING
STATE
PERFORMANCE.—Not later than 1 year after
the date of the enactment of the Personal Re-
sponsibility and Work Opportunity Act of 1996,
the Secretary, in consultation with the National
Governors’ Association and the American Pub-
lic Welfare Association, shall develop a formula
for measuring State performance in operating
the State program funded under this part so as
to achieve the goals set forth in section 401(a).
249
‘‘(D) SCORING OF STATE PERFORMANCE;
SETTING
OF
PERFORMANCE
THRESHOLDS.—
For each bonus year, the Secretary shall—
‘‘(i) use the formula developed under
subparagraph (C) to assign a score to each
eligible State for the fiscal year that imme-
diately precedes the bonus year; and
‘‘(ii) prescribe a performance thresh-
old in such a manner so as to ensure
that—
‘‘(I) the average annual total
amount of grants to be made under
this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants
to be made under this paragraph for
all bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—As used in this para-
graph:
‘‘(i) BONUS YEAR.—The term ‘bonus
year’ means fiscal years 1999, 2000, 2001,
2002, and 2003.
‘‘(ii) HIGH PERFORMING STATE.—The
term ‘high performing State’ means, with
respect a bonus year, an eligible State
250
whose score assigned pursuant to subpara-
graph (D)(i) for the fiscal year imme-
diately preceding the bonus year equals or
exceeds the performance threshold pre-
scribed under subparagraph (D)(ii) for
such preceding fiscal year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1999 through 2003 $500,000,000
for grants under this paragraph.
‘‘(5) SUPPLEMENTAL GRANT FOR OPERATION
OF WORK PROGRAM.—
‘‘(A) APPLICATION
REQUIREMENTS.—An
eligible State may submit to the Secretary an
application for additional funds to meet the re-
quirements of section 407 with respect to a fis-
cal year if the Secretary determines that—
‘‘(i) the total expenditures of the
State to meet such requirements for the
fiscal year exceed the total expenditures of
the State during fiscal year 1994 to carry
out part F (as in effect on September 30,
1994);