In the Senate of the United States,
July 23, 1996.
Resolved, That the bill from the House of Representa-
tives (H.R. 3734) entitled ‘‘An Act to provide for reconcili-
ation pursuant to section 201(a)(1) of the concurrent resolu-
tion on the budget for fiscal year 1997’’, do pass with the
following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Personal Responsibility,
Work Opportunity, and Medicaid Restructuring Act of
1996’’.
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TITLE I—AGRICULTURE AND
RELATED PROVISIONS
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Ag-
ricultural Reconciliation Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents of this
title is as follows:
TITLE I—AGRICULTURE AND RELATED PROVISIONS
Sec. 1001. Short title; table of contents.
Subtitle A—Food Stamps and Commodity Distribution
CHAPTER 1—FOOD STAMP PROGRAM
Sec. 1111. Definition of certification period.
Sec. 1112. Definition of coupon.
Sec. 1113. Treatment of children living at home.
Sec. 1114. Adjustment of thrifty food plan.
Sec. 1115. Definition of homeless individual.
Sec. 1116. State option for eligibility standards.
Sec. 1117. Earnings of students.
Sec. 1118. Energy assistance.
Sec. 1119. Deductions from income.
Sec. 1120. Vehicle allowance.
Sec. 1121. Vendor payments for transitional housing counted as income.
Sec. 1122. Simplified calculation of income for the self-employed.
Sec. 1123. Doubled penalties for violating food stamp program requirements.
Sec. 1124. Disqualification of convicted individuals.
Sec. 1125. Disqualification.
Sec. 1126. Employment and training.
Sec. 1127. Food stamp eligibility.
Sec. 1128. Comparable treatment for disqualification.
Sec. 1129. Disqualification for receipt of multiple food stamp benefits.
Sec. 1130. Disqualification of fleeing felons.
Sec. 1131. Cooperation with child support agencies.
Sec. 1132. Disqualification relating to child support arrears.
Sec. 1133. Work requirement.
Sec. 1134. Encouragement of electronic benefit transfer systems.
Sec. 1135. Value of minimum allotment.
Sec. 1136. Benefits on recertification.
Sec. 1137. Optional combined allotment for expedited households.
Sec. 1138. Failure to comply with other means-tested public assistance programs.
Sec. 1139. Allotments for households residing in centers.
Sec. 1140. Condition precedent for approval of retail food stores and wholesale
food concerns.
Sec. 1141. Authority to establish authorization periods.
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Sec. 1142. Information for verifying eligibility for authorization.
Sec. 1143. Waiting period for stores that fail to meet authorization criteria.
Sec. 1144. Operation of food stamp offices.
Sec. 1145. State employee and training standards.
Sec. 1146. Exchange of law enforcement information.
Sec. 1147. Withdrawing fair hearing requests.
Sec. 1148. Income, eligibility, and immigration status verification systems.
Sec. 1149. Disqualification of retailers who intentionally submit falsified applica-
tions.
Sec. 1150. Disqualification of retailers who are disqualified under the WIC pro-
gram.
Sec. 1151. Collection of overissuances.
Sec. 1152. Authority to suspend stores violating program requirements pending
administrative and judicial review.
Sec. 1153. Expanded criminal forfeiture for violations.
Sec. 1154. Limitation on Federal match.
Sec. 1155. Standards for administration.
Sec. 1156. Work supplementation or support program.
Sec. 1157. Response to waivers.
Sec. 1158. Employment initiatives program.
Sec. 1159. Reauthorization.
Sec. 1160. Simplified food stamp program.
CHAPTER 2—COMMODITY DISTRIBUTION PROGRAMS
Sec. 1171. Emergency food assistance program.
Sec. 1172. Food bank demonstration project.
Sec. 1173. Hunger prevention programs.
Sec. 1174. Report on entitlement commodity processing.
Subtitle B—Child Nutrition Programs
CHAPTER 1—AMENDMENTS TO THE NATIONAL SCHOOL LUNCH ACT
Sec. 1201. State disbursement to schools.
Sec. 1202. Nutritional and other program requirements.
Sec. 1203. Free and reduced price policy statement.
Sec. 1204. Special assistance.
Sec. 1205. Miscellaneous provisions and definitions.
Sec. 1206. Commodity distribution.
Sec. 1207. Child and adult care food program.
Sec. 1208. Pilot projects.
Sec. 1209. Reduction of paperwork.
Sec. 1210. Information on income eligibility.
Sec. 1211. Nutrition guidance for child nutrition programs.
CHAPTER 2—AMENDMENTS TO THE CHILD NUTRITION ACT OF 1966
Sec. 1251. Special milk program.
Sec. 1252. Free and reduced price policy statement.
Sec. 1253. School breakfast program authorization.
Sec. 1254. State administrative expenses.
Sec. 1255. Regulations.
Sec. 1256. Prohibitions.
Sec. 1257. Miscellaneous provisions and definitions.
Sec. 1258. Accounts and records.
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Sec. 1259. Special supplemental nutrition program for women, infants, and chil-
dren.
Sec. 1260. Cash grants for nutrition education.
Sec. 1261. Nutrition education and training.
Sec. 1262. Rounding rules.
Subtitle A—Food Stamps and
Commodity Distribution
CHAPTER 1—FOOD STAMP PROGRAM
SEC. 1111. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C.
2012(c)) is amended by striking ‘‘Except as provided’’ and
all that follows and inserting the following: ‘‘The certifi-
cation period shall not exceed 12 months, except that the
certification period may be up to 24 months if all adult
household members are elderly or disabled. A State agency
shall have at least 1 contact with each certified household
every 12 months.’’.
SEC. 1112. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C.
2012(d)) is amended by striking ‘‘or type of certificate’’ and
inserting ‘‘type of certificate, authorization card, cash or
check issued in lieu of a coupon, or access device, including
an electronic benefit transfer card or personal identification
number,’’.
SEC. 1113. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(i)) is amended by striking
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‘‘(who are not themselves parents living with their children
or married and living with their spouses)’’.
SEC. 1114. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting
the following: ‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting
the following: ‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting
the following: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all
that follows through the end of the subsection and in-
serting the following: ‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1
thereafter, adjust the cost of the diet to reflect the cost
of the diet in the preceding June, and round the re-
sult to the nearest lower dollar increment for each
household size, except that on October 1, 1996, the
Secretary may not reduce the cost of the diet in effect
on September 30, 1996.’’.
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SEC. 1115. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7
U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 1116. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)) is amended by striking ‘‘(b) The Secretary’’ and
inserting the following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise
provided in this Act, the Secretary’’.
SEC. 1117. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)(7)) is amended by striking ‘‘21 years of age
or younger’’ and inserting ‘‘19 years of age or younger (17
years of age or younger in fiscal year 2002)’’.
SEC. 1118. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(d)) is amended by striking para-
graph (11) and inserting the following: ‘‘(11)(A) any pay-
ments or allowances made for the purpose of providing en-
ergy assistance under any Federal law, or (B) a 1-time
payment or allowance made under a Federal or State law
for the costs of weatherization or emergency repair or re-
placement of an unsafe or inoperative furnace or other heat-
ing or cooling device,’’.
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‘‘(iv) for the period beginning Septem-
ber 1, 2002, and ending September 30,
2002, $120, $206, $170, $242, and $106, re-
spectively.
‘‘(B) ADJUSTMENT
FOR
INFLATION.—On
October 1, 2002, and each October 1 thereafter,
the Secretary shall adjust the standard deduction
to the nearest lower dollar increment to reflect
changes in the Consumer Price Index for all
urban consumers published by the Bureau of
Labor Statistics, for items other than food, for
the 12-month period ending the preceding June
30.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) DEFINITION OF EARNED INCOME.—In
this paragraph, the term ‘earned income’ does
not include—
‘‘(i) income excluded by subsection (d);
or
‘‘(ii) any portion of income earned
under a work supplementation or support
program, as defined under section 16(b),
that is attributable to public assistance.
‘‘(B) DEDUCTION.—Except as provided in
subparagraph (C), a household with earned in-
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come shall be allowed a deduction of 20 percent
of all earned income to compensate for taxes,
other mandatory deductions from salary, and
work expenses.
‘‘(C) EXCEPTION.—The deduction described
in subparagraph (B) shall not be allowed with
respect to determining an overissuance due to the
failure of a household to report earned income in
a timely manner.
‘‘(3) DEPENDENT CARE DEDUCTION.—
‘‘(A) IN
GENERAL.—A household shall be
entitled, with respect to expenses (other than ex-
cluded expenses described in subparagraph (B))
for dependent care, to a dependent care deduc-
tion, the maximum allowable level of which shall
be $200 per month for each dependent child
under 2 years of age and $175 per month for
each other dependent, for the actual cost of pay-
ments necessary for the care of a dependent if the
care enables a household member to accept or
continue employment, or training or education
that is preparatory for employment.
‘‘(B) EXCLUDED EXPENSES.—The excluded
expenses referred to in subparagraph (A) are—
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‘‘(i) expenses paid on behalf of the
household by a third party;
‘‘(ii) amounts made available and ex-
cluded, for the expenses referred to in sub-
paragraph (A), under subsection (d)(3); and
‘‘(iii) expenses that are paid under sec-
tion 6(d)(4).
‘‘(4) DEDUCTION
FOR
CHILD
SUPPORT
PAY-
MENTS.—
‘‘(A) IN GENERAL.—A household shall be en-
titled to a deduction for child support payments
made by a household member to or for an indi-
vidual who is not a member of the household if
the household member is legally obligated to
make the payments.
‘‘(B) 
METHODS
FOR
DETERMINING
AMOUNT.—The Secretary may prescribe by regu-
lation the methods, including calculation on a
retrospective basis, that a State agency shall use
to determine the amount of the deduction for
child support payments.
‘‘(5) HOMELESS SHELTER ALLOWANCE.—Under
rules prescribed by the Secretary, a State agency may
develop a standard homeless shelter allowance, which
shall not exceed $143 per month, for such expenses as
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may reasonably be expected to be incurred by house-
holds in which all members are homeless individuals
but are not receiving free shelter throughout the
month. A State agency that develops the allowance
may use the allowance in determining eligibility and
allotments for the households. The State agency may
make a household with extremely low shelter costs in-
eligible for the allowance.
‘‘(6) EXCESS MEDICAL EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household containing
an elderly or disabled member shall be entitled,
with respect to expenses other than expenses paid
on behalf of the household by a third party, to
an excess medical expense deduction for the por-
tion of the actual costs of allowable medical ex-
penses, incurred by the elderly or disabled mem-
ber, exclusive of special diets, that exceeds $35
per month.
‘‘(B) METHOD OF CLAIMING DEDUCTION.—
‘‘(i) IN
GENERAL.—A State agency
shall offer an eligible household under sub-
paragraph (A) a method of claiming a de-
duction for recurring medical expenses that
are initially verified under the excess medi-
cal expense deduction in lieu of submitting
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information on, or verification of, actual ex-
penses on a monthly basis.
‘‘(ii) METHOD.—The method described
in clause (i) shall—
‘‘(I) be designed to minimize the
burden for the eligible elderly or dis-
abled household member choosing to de-
duct the recurrent medical expenses of
the member pursuant to the method;
‘‘(II) rely on reasonable estimates
of the expected medical expenses of the
member for the certification period (in-
cluding changes that can be reasonably
anticipated based on available infor-
mation about the medical condition of
the member, public or private medical
insurance coverage, and the current
verified medical expenses incurred by
the member); and
‘‘(III) not require further report-
ing or verification of a change in med-
ical expenses if such a change has been
anticipated for the certification period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
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‘‘(A) IN
GENERAL.—A household shall be
entitled, with respect to expenses other than ex-
penses paid on behalf of the household by a third
party, to an excess shelter expense deduction to
the extent that the monthly amount expended by
a household for shelter exceeds an amount equal
to 50 percent of monthly household income after
all other applicable deductions have been al-
lowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—
‘‘(i) THROUGH DECEMBER 31, 1996.—
In the case of a household that does not con-
tain an elderly or disabled individual, dur-
ing the 15-month period ending December
31, 1996, the excess shelter expense deduc-
tion shall not exceed—
‘‘(I) in the 48 contiguous States
and the District of Columbia, $247 per
month; and
‘‘(II) in Alaska, Hawaii, Guam,
and the Virgin Islands of the United
States, $429, $353, $300, and $182 per
month, respectively.
‘‘(i) AFTER
DECEMBER
31, 1996.—In
the case of a household that does not contain
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an elderly or disabled individual, after De-
cember 31, 1996, the excess shelter expense
deduction shall not exceed—
‘‘(I) in the 48 contiguous States
and the District of Columbia, $342 per
month; and
‘‘(II) in Alaska, Hawaii, Guam,
and the Virgin Islands of the United
States, $594, $489, $415, and $252 per
month, respectively.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the
excess shelter expense deduction, a State
agency may use a standard utility allow-
ance in accordance with regulations pro-
mulgated by the Secretary, except that a
State agency may use an allowance that
does not fluctuate within a year to reflect
seasonal variations.
‘‘(ii) RESTRICTIONS ON HEATING AND
COOLING
EXPENSES.—An allowance for a
heating or cooling expense may not be used
in the case of a household that—
‘‘(I) does not incur a heating or
cooling expense, as the case may be;
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‘‘(II) does incur a heating or cool-
ing expense but is located in a public
housing unit that has central utility
meters and charges households, with re-
gard to the expense, only for excess
utility costs; or
‘‘(III) shares the expense with,
and lives with, another individual not
participating in the food stamp pro-
gram, another household participating
in the food stamp program, or both,
unless the allowance is prorated be-
tween the household and the other indi-
vidual, household, or both.
‘‘(iii) MANDATORY ALLOWANCE.—
‘‘(I) IN GENERAL.—A State agen-
cy may make the use of a standard
utility allowance mandatory for all
households with qualifying utility costs
if—
‘‘(aa) the State agency has
developed 1 or more standards
that include the cost of heating
and cooling and 1 or more stand-
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ards that do not include the cost
of heating and cooling; and
‘‘(bb) the Secretary finds that
the standards will not result in
an increased cost to the Secretary.
‘‘(II) HOUSEHOLD ELECTION.—A
State agency that has not made the use
of a standard utility allowance man-
datory under subclause (I) shall allow
a household to switch, at the end of a
certification period, between the stand-
ard utility allowance and a deduction
based on the actual utility costs of the
household.
‘‘(iv) AVAILABILITY OF ALLOWANCE TO
RECIPIENTS OF ENERGY ASSISTANCE.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), if a State agency elects
to use a standard utility allowance
that reflects heating or cooling costs,
the standard utility allowance shall be
made available to households receiving
a payment, or on behalf of which a
payment is made, under the Low-In-
come Home Energy Assistance Act of
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1981 (42 U.S.C. 8621 et seq.) or other
similar energy assistance program, if
the household still incurs out-of-pocket
heating or cooling expenses in excess of
any assistance paid on behalf of the
household to an energy provider.
‘‘(II) SEPARATE ALLOWANCE.—A
State agency may use a separate
standard utility allowance for house-
holds on behalf of which a payment de-
scribed in subclause (I) is made, but
may not be required to do so.
‘‘(III) STATES NOT ELECTING TO
USE SEPARATE ALLOWANCE.—A State
agency that does not elect to use a sep-
arate allowance but makes a single
standard utility allowance available to
households incurring heating or cooling
expenses (other than a household de-
scribed in subclause (I) or (II) of
clause (ii)) may not be required to re-
duce the allowance due to the provision
(directly or indirectly) of assistance
under the Low-Income Home Energy
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Assistance Act of 1981 (42 U.S.C. 8621
et seq.).
‘‘(IV) 
PRORATION
OF
ASSIST-
ANCE.—For the purpose of the food
stamp program, assistance provided
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621
et seq.) shall be considered to be pro-
rated over the entire heating or cooling
season for which the assistance was
provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of
the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is
amended by striking ‘‘. Under rules prescribed’’ and all that
follows through ‘‘verifies higher expenses’’.
SEC. 1120. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by striking paragraph (2) and insert-
ing the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN
GENERAL.—Subject to the other
provisions of this paragraph, the Secretary shall,
in prescribing inclusions in, and exclusions
from, financial resources, follow the regulations
in force as of June 1, 1982 (other than those re-
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lating to licensed vehicles and inaccessible re-
sources).
‘‘(B) ADDITIONAL INCLUDED ASSETS.—The
Secretary shall include in financial resources—
‘‘(i) any boat, snowmobile, or airplane
used for recreational purposes;
‘‘(ii) any vacation home;
‘‘(iii) any mobile home used primarily
for vacation purposes;
‘‘(iv) subject to subparagraph (C), any
licensed vehicle that is used for household
transportation or to obtain or continue em-
ployment to the extent that the fair market
value of the vehicle exceeds $4,600 through
September 30, 1996, and $4,650 beginning
October 1, 1996; and
‘‘(v) any savings or retirement account
(including an individual account), regard-
less of whether there is a penalty for early
withdrawal.
‘‘(C) EXCLUDED VEHICLES.—A vehicle (and
any other property, real or personal, to the ex-
tent the property is directly related to the main-
tenance or use of the vehicle) shall not be in-
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cluded in financial resources under this para-
graph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) necessary for the transportation
of a physically disabled household member;
or
‘‘(iii) depended on by a household to
carry fuel for heating or water for home use
and provides the primary source of fuel or
water, respectively, for the household.’’.
SEC. 1121. VENDOR PAYMENTS FOR TRANSITIONAL HOUS-
ING COUNTED AS INCOME.
Section 5(k)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2014(k)(2)) is amended—
(1) by striking subparagraph (F); and
(2) by redesignating subparagraphs (G) and (H)
as subparagraphs (F) and (G), respectively.
SEC. 1122. SIMPLIFIED CALCULATION OF INCOME FOR THE
SELF-EMPLOYED.
Section 5 of the Food Stamp Act of 1977 (7 U.S.C.
2014) is amended by adding at the end the following:
‘‘(n) SIMPLIFIED CALCULATION OF INCOME FOR THE
SELF-EMPLOYED.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this subsection, the Secretary
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shall establish a procedure, designed to not increase
Federal costs, by which a State may use a reasonable
estimate of income excluded under subsection (d)(9)
in lieu of calculating the actual cost of producing self-
employment income.
‘‘(2) INCLUSIVE OF ALL TYPES OF INCOME.—The
procedure established under paragraph (1) shall allow
a State to estimate income for all types of self-em-
ployment income.
‘‘(3) DIFFERENCES FOR DIFFERENT TYPES OF
INCOME.—The procedure established under paragraph
(1) may differ for different types of self-employment
income.’’.
SEC. 1123. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and
inserting ‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and in-
serting ‘‘2 years’’.
SEC. 1124. DISQUALIFICATION OF CONVICTED INDIVID-
UALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)(iii)) is amended—
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(1) in subclause (II), by striking ‘‘or’’ at the end;
(2) in subclause (III), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the follow-
ing:
‘‘(IV) a conviction of an offense under sub-
section (b) or (c) of section 15 involving an item
covered by subsection (b) or (c) of section 15 hav-
ing a value of $500 or more.’’.
SEC. 1125. DISQUALIFICATION.
(a) IN GENERAL.—Section 6(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)) is amended by striking ‘‘(d)(1)
Unless otherwise exempted by the provisions’’ and all that
follows through the end of paragraph (1) and inserting the
following:
‘‘(d) CONDITIONS OF PARTICIPATION.—
‘‘(1) WORK REQUIREMENTS.—
‘‘(A) IN
GENERAL.—No physically and
mentally fit individual over the age of 15 and
under the age of 60 shall be eligible to partici-
pate in the food stamp program if the individ-
ual—
‘‘(i) refuses, at the time of application
and every 12 months thereafter, to register
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for employment in a manner prescribed by
the Secretary;
‘‘(ii) refuses without good cause to par-
ticipate in an employment and training
program established under paragraph (4),
to the extent required by the State agency;
‘‘(iii) refuses without good cause to ac-
cept an offer of employment, at a site or
plant not subject to a strike or lockout at
the time of the refusal, at a wage not less
than the higher of—
‘‘(I) the applicable Federal or
State minimum wage; or
‘‘(II) 80 percent of the wage that
would have governed had the minimum
hourly rate under section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) been applicable to
the offer of employment;
‘‘(iv) refuses without good cause to pro-
vide a State agency with sufficient informa-
tion to allow the State agency to determine
the employment status or the job availabil-
ity of the individual;
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‘‘(v) voluntarily and without good
cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and,
after the reduction, the individual is
working less than 30 hours per week;
or
‘‘(vi) fails to comply with section 20.
‘‘(B) HOUSEHOLD
INELIGIBILITY.—If an
individual who is the head of a household be-
comes ineligible to participate in the food stamp
program under subparagraph (A), the household
shall, at the option of the State agency, become
ineligible to participate in the food stamp pro-
gram for a period, determined by the State agen-
cy, that does not exceed the lesser of—
‘‘(i) the duration of the ineligibility of
the individual determined under subpara-
graph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST VIOLATION.—The first time
that an individual becomes ineligible to
participate in the food stamp program
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under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 1 month
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 3
months after the date the individual
became ineligible.
‘‘(ii) SECOND VIOLATION.—The second
time that an individual becomes ineligible
to participate in the food stamp program
under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 3 months
after the date the individual became
ineligible; or
‘‘(III) a date determined by the
State agency that is not later than 6
months after the date the individual
became ineligible.
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‘‘(iii) THIRD OR SUBSEQUENT VIOLA-
TION.—The third or subsequent time that
an individual becomes ineligible to partici-
pate in the food stamp program under sub-
paragraph (A), the individual shall remain
ineligible until the later of—
‘‘(I) the date the individual be-
comes eligible under subparagraph (A);
‘‘(II) the date that is 6 months
after the date the individual became
ineligible;
‘‘(III) a date determined by the
State agency; or
‘‘(IV) at the option of the State
agency, permanently.
‘‘(D) ADMINISTRATION.—
‘‘(i) GOOD
CAUSE.—The Secretary
shall determine the meaning of good cause
for the purpose of this paragraph.
‘‘(ii) VOLUNTARY QUIT.—The Secretary
shall determine the meaning of voluntarily
quitting and reducing work effort for the
purpose of this paragraph.
‘‘(iii) 
DETERMINATION
BY
STATE
AGENCY.—
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‘‘(I) IN
GENERAL.—Subject to
subclause (II) and clauses (i) and (ii),
a State agency shall determine—
‘‘(aa) the meaning of any
term used in subparagraph (A);
‘‘(bb) the procedures for de-
termining whether an individual
is in compliance with a require-
ment under subparagraph (A);
and
‘‘(cc) whether an individual
is in compliance with a require-
ment under subparagraph (A).
‘‘(II) NOT LESS RESTRICTIVE.—A
State agency may not use a meaning,
procedure, or determination under sub-
clause (I) that is less restrictive on in-
dividuals receiving benefits under this
Act than a comparable meaning, proce-
dure, or determination under a State
program funded under part A of title
IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(iv) STRIKE AGAINST THE GOVERN-
MENT.—For the purpose of subparagraph
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(A)(v), an employee of the Federal Govern-
ment, a State, or a political subdivision of
a State, who is dismissed for participating
in a strike against the Federal Government,
the State, or the political subdivision of the
State shall be considered to have voluntarily
quit without good cause.
‘‘(v) SELECTING A HEAD OF HOUSE-
HOLD.—
‘‘(I) IN GENERAL.—For purposes
of this paragraph, the State agency
shall allow the household to select any
adult parent of a child in the house-
hold as the head of the household if all
adult household members making ap-
plication under the food stamp pro-
gram agree to the selection.
‘‘(II) TIME FOR MAKING DESIGNA-
TION.—A household may designate the
head of the household under subclause
(I) each time the household is certified
for participation in the food stamp
program, but may not change the des-
ignation during a certification period
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unless there is a change in the com-
position of the household.
‘‘(vi) CHANGE
IN
HEAD
OF
HOUSE-
HOLD.—If the head of a household leaves the
household during a period in which the
household is ineligible to participate in the
food stamp program under subparagraph
(B)—
‘‘(I) the household shall, if other-
wise eligible, become eligible to partici-
pate in the food stamp program; and
‘‘(II) if the head of the household
becomes the head of another household,
the household that becomes headed by
the individual shall become ineligible
to participate in the food stamp pro-
gram for the remaining period of ineli-
gibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is
amended by striking ‘‘6(d)(1)(i)’’ and inserting
‘‘6(d)(1)(A)(i)’’.
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(2) Section 20 of the Food Stamp Act of 1977
(7 U.S.C. 2029) is amended by striking subsection (f)
and inserting the following:
‘‘(f) DISQUALIFICATION.—An individual or a house-
hold may become ineligible under section 6(d)(1) to partici-
pate in the food stamp program for failing to comply with
this section.’’.
SEC. 1126. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) by striking ‘‘(4)(A) Not later than April 1,
1987, each’’ and inserting the following:
‘‘(4) EMPLOYMENT AND TRAINING.—
‘‘(A) IN GENERAL.—
‘‘(i) IMPLEMENTATION.—Each’’;
(2) in subparagraph (A)—
(A) by inserting ‘‘work,’’ after ‘‘skills, train-
ing,’’; and
(B) by adding at the end the following:
‘‘(ii) STATEWIDE WORKFORCE DEVEL-
OPMENT SYSTEM.—Each component of an
employment and training program carried
out under this paragraph shall be delivered
through a statewide workforce development
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system, unless the component is not avail-
able locally through such a system.’’;
(3) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ‘‘, except that the State agency shall
retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II);
and
(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(4) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child care’’;
and
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(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
(5) in subparagraph (E), by striking the third
sentence;
(6) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(7) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii) Fed-
eral funds’’ and inserting ‘‘(H) Federal funds’’;
(8) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
cial Security Act’’ and inserting the following: ‘‘), ex-
cept that no such payment or reimbursement shall ex-
ceed the applicable local market rate’’;
(9)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION
ON
FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to carry
out this paragraph (including funds used to
carry out subparagraph (I)) for participants
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who are receiving benefits under a State pro-
gram funded under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) shall
not exceed the amount of funds the State agency
used in fiscal year 1995 to carry out this para-
graph for participants who were receiving bene-
fits in fiscal year 1995 under a State program
funded under part A of title IV of the Act (42
U.S.C. 601 et seq.).’’; and
(B) by redesignating subparagraphs (M) and (N)
as subparagraphs (L) and (M), respectively; and
(10) in subparagraph (L), as so redesignated—
(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Food Stamp Act
of 1977 (7 U.S.C. 2025(h)) is amended by striking
‘‘(h)(1)(A) The Secretary’’ and all that follows through the
end of paragraph (1) and inserting the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment
and training programs, the Secretary shall re-
serve for allocation to State agencies from funds
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made available for each fiscal year under section
18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
and
‘‘(ii) for each of fiscal years 1997
through 2002, $85,000,000.
‘‘(B) ALLOCATION.—The Secretary shall al-
locate the amounts reserved under subparagraph
(A) among the State agencies using a reasonable
formula (as determined by the Secretary) that
gives consideration to the population in each
State affected by section 6(o).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that the State
agency will not expend all of the funds allo-
cated to the State agency under subpara-
graph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will not
expend as the Secretary considers appro-
priate and equitable.
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‘‘(D) 
MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency op-
erating an employment and training program
shall receive not less than $50,000 for each fiscal
year.’’.
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2)
of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is
amended by inserting before the period at the end the follow-
ing: ‘‘, including the costs for case management and case-
work to facilitate the transition from economic dependency
to self-sufficiency through work’’.
(d) REPORTS.—Section 16(h) of the Food Stamp Act
of 1977 (7 U.S.C. 2025(h)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’ and
inserting ‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 1127. FOOD STAMP ELIGIBILITY.
The third sentence of section 6(f) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(f)) is amended by inserting ‘‘,
at State option,’’ after ‘‘less’’.
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SEC. 1128. COMPARABLE TREATMENT FOR DISQUALIFICA-
TION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding at the end
the following:
‘‘(i) COMPARABLE TREATMENT
FOR DISQUALIFICA-
TION.—
‘‘(1) IN GENERAL.—If a disqualification is im-
posed on a member of a household for a failure of the
member to perform an action required under a Fed-
eral, State, or local law relating to a means-tested
public assistance program, the State agency may im-
pose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES AND PROCEDURES.—If a disquali-
fication is imposed under paragraph (1) for a failure
of an individual to perform an action required under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title
IV of the Act to impose the same disqualification
under the food stamp program.
‘‘(3) APPLICATION AFTER DISQUALIFICATION PE-
RIOD.—A member of a household disqualified under
paragraph (1) may, after the disqualification period
has expired, apply for benefits under this Act and
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shall be treated as a new applicant, except that a
prior disqualification under subsection (d) shall be
considered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—
(1) in paragraph (24), by striking ‘‘and’’ at the
end;
(2) in paragraph (25), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(26) the guidelines the State agency uses in car-
rying out section 6(i); and’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is
amended by striking ‘‘that is comparable to a requirement
of paragraph (1)’’.
SEC. 1129. DISQUALIFICATION FOR RECEIPT OF MULTIPLE
FOOD STAMP BENEFITS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 1129, is amended by adding
at the end the following:
‘‘(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE
FOOD STAMP BENEFITS.—An individual shall be ineligible
to participate in the food stamp program as a member of
any household for a 10-year period if the individual is
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found by a State agency to have made, or is convicted in
a Federal or State court of having made, a fraudulent state-
ment or representation with respect to the identity or place
of residence of the individual in order to receive multiple
benefits simultaneously under the food stamp program.’’.
SEC. 1130. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 1130, is amended by adding
at the end the following:
‘‘(k) DISQUALIFICATION
OF FLEEING FELONS.—No
member of a household who is otherwise eligible to partici-
pate in the food stamp program shall be eligible to partici-
pate in the program as a member of that or any other
household during any period during which the individual
is—
‘‘(1) fleeing to avoid prosecution, or custody or
confinement after conviction, under the law of the
place from which the individual is fleeing, for a
crime, or attempt to commit a crime, that is a felony
under the law of the place from which the individual
is fleeing or that, in the case of New Jersey, is a high
misdemeanor under the law of New Jersey; or
‘‘(2) violating a condition of probation or parole
imposed under a Federal or State law.’’.
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SEC. 1131. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 1131, is amended by adding
at the end the following:
‘‘(l) CUSTODIAL PARENT’S COOPERATION WITH CHILD
SUPPORT AGENCIES.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), no natural
or adoptive parent or other individual (collectively re-
ferred to in this subsection as ‘the individual’) who is
living with and exercising parental control over a
child under the age of 18 who has an absent parent
shall be eligible to participate in the food stamp pro-
gram unless the individual cooperates with the State
agency administering the program established under
part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in obtaining support for—
‘‘(i) the child; or
‘‘(ii) the individual and the child.
‘‘(2) GOOD
CAUSE
FOR
NONCOOPERATION.—
Paragraph (1) shall not apply to the individual if
good cause is found for refusing to cooperate, as deter-
mined by the State agency in accordance with stand-
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ards prescribed by the Secretary in consultation with
the Secretary of Health and Human Services. The
standards shall take into consideration circumstances
under which cooperation may be against the best in-
terests of the child.
‘‘(3) FEES.—Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.).
‘‘(m) NONCUSTODIAL PARENT’S COOPERATION WITH
CHILD SUPPORT AGENCIES.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, subject to paragraphs (2) and (3), a putative
or identified noncustodial parent of a child under the
age of 18 (referred to in this subsection as ‘the indi-
vidual’) shall not be eligible to participate in the food
stamp program if the individual refuses to cooperate
with the State agency administering the program es-
tablished under part D of title IV of the Social Secu-
rity Act (42 U.S.C. 651 et seq.)—
‘‘(A) in establishing the paternity of the
child (if the child is born out of wedlock); and
‘‘(B) in providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
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‘‘(A) GUIDELINES.—The Secretary, in con-
sultation with the Secretary of Health and
Human Services, shall develop guidelines on
what constitutes a refusal to cooperate under
paragraph (1).
‘‘(B) PROCEDURES.—The State agency shall
develop procedures, using guidelines developed
under subparagraph (A), for determining wheth-
er an individual is refusing to cooperate under
paragraph (1).
‘‘(3) FEES.—Paragraph (1) shall not require the
payment of a fee or other cost for services provided
under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.).
‘‘(4) PRIVACY.—The State agency shall provide
safeguards to restrict the use of information collected
by a State agency administering the program estab-
lished under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.) to purposes for which the
information is collected.’’.
SEC. 1132. DISQUALIFICATION RELATING TO CHILD SUP-
PORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 1132, is amended by adding
at the end the following:
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‘‘(n) DISQUALIFICATION
FOR CHILD SUPPORT AR-
REARS.—
‘‘(1) IN
GENERAL.—At the option of a State
agency, no individual shall be eligible to participate
in the food stamp program as a member of any house-
hold during any month that the individual is delin-
quent in any payment due under a court order for the
support of a child of the individual.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) a court is allowing the individual to
delay payment; or
‘‘(B) the individual is complying with a
payment plan approved by a court or the State
agency designated under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.) to
provide support for the child of the individual.’’.
SEC. 1133. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015), as amended by section 1133, is
amended by adding at the end the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this
subsection, the term ‘work program’ means—
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‘‘(A) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(B) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
‘‘(C) a program of employment or training
operated or supervised by a State or political
subdivision of a State that meets standards ap-
proved by the Governor of the State, including a
program under subsection (d)(4), other than a
job search program or a job search training pro-
gram.
‘‘(2) WORK REQUIREMENT.—Subject to the other
provisions of this subsection, no individual shall be el-
igible to participate in the food stamp program as a
member of any household if, during the preceding 12-
month period, the individual received food stamp ben-
efits for not less than 4 months during which the in-
dividual did not—
‘‘(A) work 20 hours or more per week, aver-
aged monthly;
‘‘(B) participate in and comply with the re-
quirements of a work program for 20 hours or
more per week, as determined by the State agen-
cy;
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‘‘(C) participate in and comply with the re-
quirements of a program under section 20 or a
comparable program established by a State or
political subdivision of a State; or
‘‘(D) receive an exemption under paragraph
(6).
‘‘(3) EXCEPTION.—Paragraph (2) shall not
apply to an individual if the individual is—
‘‘(A) under 18 or over 50 years of age;
‘‘(B) medically certified as physically or
mentally unfit for employment;
‘‘(C) a parent or other member of a house-
hold with responsibility for a dependent child;
‘‘(D) otherwise exempt under subsection
(d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN
GENERAL.—On the request of a
State agency, the Secretary may waive the ap-
plicability of paragraph (2) to any group of in-
dividuals in the State if the Secretary makes a
determination that the area in which the indi-
viduals reside—
‘‘(i) has an unemployment rate of over
10 percent; or
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‘‘(ii) does not have a sufficient number
of jobs to provide employment for the indi-
viduals.
‘‘(B) RESPONSE.—The Secretary shall re-
spond to a request made pursuant to subpara-
graph (A) not later than 15 days after the State
agency makes the request.
‘‘(C) REPORT.—The Secretary shall report
the basis for a waiver under subparagraph (A)
to the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) IN GENERAL.—An individual shall be-
come eligible to participate in the food stamp
program if, during a 30-day period, the individ-
ual—
‘‘(i) works 80 or more hours;
‘‘(ii) participates in and complies with
the requirements of a work program for 80
or more hours, as determined by a State
agency; or
‘‘(iii) participates in and complies
with the requirements of a program under
section 20 or a comparable program estab-
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lished by a State or political subdivision of
a State.
‘‘(B) AFTER BECOMING ELIGIBLE.—An in-
dividual shall remain subject to paragraph (2)
during any 12-month period subsequent to be-
coming eligible to participate in the food stamp
program under subparagraph (A), except that
the term ‘preceding 12-month period’ in para-
graph (2) shall mean the preceding period begin-
ning on the date the individual most recently
satisfied the requirements of subparagraph (A).
‘‘(6) STATE AGENCY EXEMPTIONS.—
‘‘(A) IN GENERAL.—A State agency may ex-
empt an individual for purposes of paragraph
(2)(D)—
‘‘(i) by reason of hardship; or
‘‘(ii) if the individual participates in
and complies with the requirements of a
program of job search or job search training
under clauses (i) or (ii) of subsection
(d)(4)(B) that requires an average of not
less than 20 hours per week of participa-
tion.
‘‘(B) LIMITATION
ON
HARDSHIP
EXEMP-
TION.—The average monthly number of individ-
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uals receiving benefits due to a hardship exemp-
tion granted by a State agency under subpara-
graph (A)(i) for a fiscal year may not exceed 20
percent of the average monthly number of indi-
viduals receiving allotments during the fiscal
year in the State who are not exempt from the
requirements of this subsection under paragraph
(3) or (4).
‘‘(C) LIMITATION ON JOB SEARCH EXEMP-
TION.—A State agency may not exempt an indi-
vidual under subparagraph (A)(ii) for more than
2 months during any 12-month period.’’.
(b) TRANSITION PROVISION.—During the 1-year pe-
riod beginning on the date of enactment of this Act, the
term ‘‘preceding 12-month period’’ in section 6(o) of the
Food Stamp Act of 1977, as added by subsection (a), means
the preceding period that begins on the date of enactment
of this Act.
SEC. 1134. ENCOURAGEMENT OF ELECTRONIC BENEFIT
TRANSFER SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
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‘‘(A) IMPLEMENTATION.—Not later than Oc-
tober 1, 2002, each State agency shall implement
an electronic benefit transfer system under which
household benefits determined under section 8(a)
or 26 are issued from and stored in a central
databank, unless the Secretary provides a waiver
for a State agency that faces unusual barriers to
implementing an electronic benefit transfer sys-
tem.
‘‘(B) 
TIMELY
IMPLEMENTATION.—Each
State agency is encouraged to implement an elec-
tronic benefit transfer system under subpara-
graph (A) as soon as practicable.
‘‘(C) STATE FLEXIBILITY.—Subject to para-
graph (2), a State agency may procure and im-
plement an electronic benefit transfer system
under the terms, conditions, and design that the
State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) commercial electronic funds trans-
fer technology;
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‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
‘‘(iii) the need to permit monitoring
and investigations by authorized law en-
forcement agencies.’’;
(2) in paragraph (2)—
(A) by striking ‘‘effective no later than
April 1, 1992,’’;
(B) in subparagraph (A)—
(i) by striking ‘‘, in any 1 year,’’; and
(ii) by striking ‘‘on-line’’;
(C) by striking subparagraph (D) and in-
serting the following:
‘‘(D)(i) measures to maximize the security
of a system using the most recent technology
available that the State agency considers appro-
priate and cost effective and which may include
personal identification numbers, photographic
identification on electronic benefit transfer cards,
and other measures to protect against fraud and
abuse; and
‘‘(ii) effective not later than 2 years after
the date of enactment of this clause, to the extent
practicable, measures that permit a system to
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differentiate items of food that may be acquired
with an allotment from items of food that may
not be acquired with an allotment;’’;
(D) in subparagraph (G), by striking ‘‘and’’
at the end;
(E) in subparagraph (H), by striking the
period at the end and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(I) procurement standards.’’; and
(3) by adding at the end the following:
‘‘(7) REPLACEMENT OF BENEFITS.—Regulations
issued by the Secretary regarding the replacement of
benefits and liability for replacement of benefits under
an electronic benefit transfer system shall be similar
to the regulations in effect for a paper-based food
stamp issuance system.
‘‘(8) REPLACEMENT CARD FEE.—A State agency
may collect a charge for replacement of an electronic
benefit transfer card by reducing the monthly allot-
ment of the household receiving the replacement card.
‘‘(9) 
OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may re-
quire that an electronic benefit card contain a
photograph of 1 or more members of a household.
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‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to ensure
that any other appropriate member of the house-
hold or any authorized representative of the
household may utilize the card.
‘‘(10) APPLICABLE
LAW.—Disclosures, protec-
tions, responsibilities, and remedies established by the
Federal Reserve Board under section 904 of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693b) shall not
apply to benefits under this Act delivered through any
electronic benefit transfer system.’’.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that a State that operates an electronic benefit transfer sys-
tem under the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) should operate the system in a manner that is compat-
ible with electronic benefit transfer systems operated by
other States.
SEC. 1135. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act of
1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and shall
be adjusted’’ and all that follows through ‘‘$5’’.
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SEC. 1136. 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. 1137. 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 insert-
ing the following:
‘‘(3) OPTIONAL COMBINED ALLOTMENT FOR EX-
PEDITED HOUSEHOLDS.—A State agency may pro-
vide 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 expedited service and
in accordance with paragraphs (3) and (9) of section
11(e) in the case of a household that is entitled to ex-
pedited service.’’.
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SEC. 1138. FAILURE TO COMPLY WITH OTHER MEANS-TEST-
ED 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 household
are reduced under a Federal, State, or local law relat-
ing to a means-tested public assistance program for
the failure of a member of the household to perform
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 allot-
ment of the household by not more than 25 per-
cent.
‘‘(2) RULES AND PROCEDURES.—If the allotment
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 proce-
dures that apply under part A of title IV of the Act
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to reduce the allotment under the food stamp pro-
gram.’’.
SEC. 1139. 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 sen-
tence of section 3(i), a State agency may provide an
allotment for the individual to—
‘‘(A) the center as an authorized representa-
tive 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 re-
quire 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.’’.
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SEC. 1140. 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 ap-
proved to be authorized or reauthorized for participation
in the food stamp program unless an authorized employee
of the Department of Agriculture, a designee of the Sec-
retary, 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 appro-
priate.’’.
SEC. 1141. 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 following:
‘‘(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.’’.
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SEC. 1142. 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 written
authorization for the Secretary to verify all relevant
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. 1143. 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 following:
‘‘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 Sec-
retary may establish a longer time period under the preced-
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ing sentence, including permanent disqualification, that re-
flects the severity of the basis of the denial.’’.
SEC. 1144. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020), as amended by sections 1119(b) and 1129(b), is
amended—
(1) in subsection (e)—
(A) by striking paragraph (2) and inserting
the following:
‘‘(2)(A) that the State agency shall establish pro-
cedures governing the operation of food stamp offices
that the State agency determines best serve households
in the State, including households with special needs,
such as households with elderly or disabled members,
households in rural areas with low-income members,
homeless individuals, households residing on reserva-
tions, and households in areas in which a substantial
number of members of low-income households speak a
language other than English.
‘‘(B) 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;
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‘‘(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 con-
tains the name, address, and signature of the ap-
plicant to be filed on the date the applicant sub-
mits 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
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‘‘(vii) may establish operating procedures
that vary for local food stamp offices to reflect
regional and local differences within the State.
‘‘(C) Nothing in this Act shall prohibit the use
of signatures provided and maintained electronically,
storage of records using automated retrieval systems
only, or any other feature of a State agency’s applica-
tion system that does not rely exclusively on the col-
lection and retention of paper applications or other
records.
‘‘(D) 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)—
(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
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(ii) by redesignating paragraph (26), 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.—Notwithstand-
ing any other provision of law,’’; and
(B) by striking ‘‘; (3) households’’ and all
that follows through ‘‘title IV of the Social Secu-
rity Act. No’’ and inserting a period and the fol-
lowing:
‘‘(2) DENIAL AND TERMINATION.—Except in a
case of disqualification as a penalty for failure to
comply with a public assistance program rule or reg-
ulation, no’’.
SEC. 1145. 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
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‘‘(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. 1146. 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 offi-
cer if the officer furnishes the State agency with
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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 Jersey,
a high misdemeanor), or is violating a
condition of probation or parole im-
posed under Federal or State law; or
‘‘(II) has information that is nec-
essary for the officer to conduct an offi-
cial 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. 1147. 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
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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 hear-
ing’’.
SEC. 1148. 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 sec-
tion 1145(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 in-
serting ‘‘may be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION.—Notwithstanding
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 verifica-
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tion system established under section 1137 of the Social Se-
curity Act (42 U.S.C. 1320b–7).’’.
SEC. 1149. 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 ap-
plication.’’.
SEC. 1150. DISQUALIFICATION OF RETAILERS WHO ARE DIS-
QUALIFIED 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.—
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‘‘(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 ac-
cepting benefits under the special supplemental nutri-
tion program for women, infants, and children estab-
lished 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 referred to
in paragraph (1);
‘‘(B) may begin at a later date than the dis-
qualification from the program referred to in
paragraph (1); and
‘‘(C) notwithstanding section 14, shall not
be subject to judicial or administrative review.’’.
SEC. 1151. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of
the Food Stamp Act of 1977 (7 U.S.C. 2022) is amended—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
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‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, a State agency shall collect any
overissuance of coupons issued to a household by—
‘‘(A) reducing the allotment of the house-
hold;
‘‘(B) withholding amounts from unemploy-
ment compensation from a member of the house-
hold under subsection (c);
‘‘(C) recovering from Federal pay or a Fed-
eral income tax refund under subsection (d); or
‘‘(D) any other means.
‘‘(2) COST
EFFECTIVENESS.—Paragraph (1)
shall not apply if the State agency demonstrates to
the satisfaction of the Secretary that all of the means
referred to in paragraph (1) are not cost effective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—If
a household received an overissuance of coupons with-
out any member of the household being found ineli-
gible to participate in the program under section
6(b)(1) and a State agency elects to reduce the allot-
ment of the household under paragraph (1)(A), the
State agency shall not reduce the monthly allotment
of the household under paragraph (1)(A) by an
amount in excess of the greater of—
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‘‘(A) 10 percent of the monthly allotment of
the household; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall collect
an overissuance of coupons issued to a household
under paragraph (1) in accordance with the require-
ments established by the State agency for providing
notice, electing a means of payment, and establishing
a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under sub-
section (b) and except for claims arising from an
error of the State agency,’’ and inserting ‘‘, as
determined under subsection (b)(1),’’; and
(B) by inserting before the period at the end
the following: ‘‘or a Federal income tax refund as
authorized by section 3720A of title 31, United
States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)(C)
of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C))
is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as au-
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thorized by section 3720A of title 31, United States
Code’’.
(c) RETENTION RATE.—The proviso of the first sen-
tence of section 16(a) of the Food Stamp Act of 1977 (7
U.S.C. 2025(a)) is amended by striking ‘‘25 percent during
the period beginning October 1, 1990’’ and all that follows
through ‘‘section 13(b)(2) of this Act’’ and inserting ‘‘35
percent of the value of all funds or allotments recovered or
collected pursuant to subsections (b)(1) and (c) of section
13 and 20 percent of the value of all funds or allotments
recovered or collected pursuant to section 13(b)(2) of this
Act’’.
SEC. 1152. 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 seventeenth
sentences as paragraphs (1) through (17), respectively;
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 paragraph
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(3) or (4) of section 12(b) shall be effective from the
date of receipt of the notice of disqualification. If the
disqualification is reversed through administrative or
judicial review, the Secretary shall not be liable for
the value of any sales lost during the disqualification
period.’’.
SEC. 1153. 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 Food
Stamp Act of 1977 (7 U.S.C. 2024) is amended by adding
at the end the following:
‘‘(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 section, that
the person forfeit to the United States all property de-
scribed 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
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commission of, a violation (other than a mis-
demeanor) of subsection (b) or (c), or proceeds trace-
able to a violation of subsection (b) or (c), shall be
subject to forfeiture to the United States under para-
graph (1).
‘‘(3) INTEREST OF OWNER.—No interest in prop-
erty shall be forfeited under this subsection as the re-
sult 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 Department
to initiate and complete the forfeiture proceed-
ing;
‘‘(B) second, to reimburse the Department of
Agriculture Office of Inspector General for any
costs the Office incurred in the law enforcement
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
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‘‘(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. 1154. LIMITATION ON 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 recruit-
ment activities,’’.
SEC. 1155. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended by striking subsection
(b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the Food
Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by
striking ‘‘the Secretary’s standards for the efficient
and effective administration of the program estab-
lished under section 16(b)(1) or’’.
(2) Section 16(c)(1)(B) of the Food Stamp Act
of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by strik-
ing ‘‘pursuant to subsection (b)’’.
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SEC. 1156. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 1157(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 Sec-
retary, public assistance (including any benefits pro-
vided under a program established by the State and
the food stamp program) is provided to an employer
to be used for hiring and employing a public assist-
ance 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 oth-
erwise be issued to a household under the food stamp
program, but for the operation of this subsection, for
the purpose of subsidizing or supporting a job under
a work supplementation or support program estab-
lished by the State.
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‘‘(3) PROCEDURE.—If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp pro-
gram that contains an individual who is participat-
ing in the work supplementation or support pro-
gram—
‘‘(A) the Secretary shall pay to the State
agency an amount equal to the value of the allot-
ment that the household would be eligible to re-
ceive but for the operation of this subsection;
‘‘(B) the State agency shall expend the
amount 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 oper-
ation 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 resources;
and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to the
household; and
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‘‘(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 individual is
employed under the work supplementation or support
program.
‘‘(5) LENGTH OF PARTICIPATION.—A State agen-
cy shall provide a description of how the public as-
sistance recipients in the program shall, within a spe-
cific period of time, be moved from supplemented or
supported employment to employment that is not sup-
plemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation
or support program shall not displace the employ-
ment of individuals who are not supplemented or sup-
ported.’’.
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SEC. 1157. 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 1159, is amend-
ed 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 Sec-
retary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and describes any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and describes 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 ac-
cordance with clause (i), the waiver shall be
considered approved, unless the approval 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
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request and a description of the reasons for
the denial to the Committee on Agriculture
of the House of Representatives and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate.’’.
SEC. 1158. 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 pro-
gram under this subsection only if not less than
50 percent of the households in the State that re-
ceived food stamp benefits during the summer of
1993 also received benefits under a State pro-
gram funded under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) during
the summer of 1993.
‘‘(2) PROCEDURE.—
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‘‘(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 el-
igible under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay to
each State that has elected to carry out an em-
ployment initiatives program under paragraph
(1) an amount equal to the value of the allot-
ment that each household participating in the
program in the State would be eligible to receive
under this Act but for the operation of this sub-
section.
‘‘(C) OTHER PROVISIONS.—For purposes of
the food stamp program (other than this sub-
section)—
‘‘(i) cash assistance under this sub-
section shall be considered to be an allot-
ment; and
‘‘(ii) each household receiving cash ben-
efits under this subsection shall not receive
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any other food stamp benefit during the pe-
riod for which the cash assistance is pro-
vided.
‘‘(D) ADDITIONAL PAYMENTS.—Each State
that has elected to carry out an employment ini-
tiatives program under paragraph (1) shall—
‘‘(i) increase the cash benefits provided
to each household participating in the pro-
gram in the State under this subsection to
compensate for any State or local sales tax
that may be collected on purchases of food
by the household, unless the Secretary deter-
mines on the basis of information provided
by the State that the increase is unnecessary
on the basis of the limited nature of the
items subject to the State or local sales tax;
and
‘‘(ii) pay the cost of any increase in
cash benefits required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligible
to receive cash benefits under paragraph (2) if an
adult member of the household—
‘‘(A) has worked in unsubsidized employ-
ment for not less than the preceding 90 days;
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SEC. 1159. 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. 1160. 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) only households in which all members re-
ceive 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 receive benefits under the
Program;
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‘‘(2) 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
‘‘(3) subject to subsection (f), benefits under the
Program shall be determined under rules and proce-
dures 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 Se-
curity 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 op-
erate 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—
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‘‘(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.—
‘‘(A) IN GENERAL.—The Secretary shall de-
termine whether a Program being carried out by
a State agency is increasing Federal costs under
this Act.
‘‘(B) NO
EXCLUDED
HOUSEHOLDS.—In
making a determination under subparagraph
(A), the Secretary shall not require the State
agency to collect or report any information on
households not included in the Program.
‘‘(C) 
ALTERNATIVE
ACCOUNTING
PERI-
ODS.—The Secretary may approve the request of
a State agency to apply alternative accounting
periods to determine if Federal costs do not ex-
ceed the Federal costs had the State agency not
elected to carry out the Program.
‘‘(2) NOTIFICATION.—If the Secretary determines
that the Program has increased Federal costs under
this Act for any fiscal year or any portion of any fis-
cal year, the Secretary shall notify the State not later
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than 30 days after the Secretary makes the deter-
mination 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 Pro-
gram.
‘‘(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
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State may standardize the deductions provided under
section 5(e). In developing the standardized deduc-
tion, the State shall consider the work expenses, de-
pendent care costs, and shelter costs of participating
households.
‘‘(3) REQUIREMENTS.—In operating a Program,
a State or political subdivision shall comply with the
requirements of—
‘‘(A) subsections (a) through (g) of section 7;
‘‘(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 sec-
tion 11;
‘‘(E) paragraph (3) of section 11(e), to the
extent that the paragraph requires that an eligi-
ble household be certified and receive an allot-
ment for the period of application not later than
30 days after filing an application;
‘‘(F) paragraphs (8), (12), (16), (18), (20),
(24), and (25) of section 11(e);
‘‘(G) section 11(e)(10) (or a comparable re-
quirement established by the State under a State
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program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.)); and
‘‘(H) 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 Sec-
retary determines that any household with income
above 130 percent of the poverty guidelines is not eli-
gible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Food Stamp Act of 1977 (7 U.S.C. 2020(e)), as amended
by sections 1129(b) and 1145, 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 followed
by the State agency to determine food stamp ben-
efits;
‘‘(B) how the State agency will address the
needs of households that experience high shelter
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costs in relation to the incomes of the households;
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 Food Stamp Act of 1977 (7
U.S.C. 2017), as amended by section 1140, is amend-
ed—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Section 17 of the Food Stamp Act of 1977
(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), respectively.
CHAPTER 2—COMMODITY DISTRIBUTION
PROGRAMS
SEC. 1171. 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:
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‘‘(1) ADDITIONAL COMMODITIES.—The term ‘ad-
ditional commodities’ means commodities made avail-
able under section 214 in addition to the commodities
made available under sections 202 and 203D.
‘‘(2) AVERAGE
MONTHLY
NUMBER
OF
UNEM-
PLOYED PERSONS.—The term ‘average monthly num-
ber of unemployed persons’ means the average month-
ly number of unemployed persons in each State dur-
ing the most recent fiscal year for which information
concerning the number of unemployed persons is
available, as determined by the Bureau of Labor Sta-
tistics of the Department of Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or nonprofit
organization that—
‘‘(A) administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (includ-
ing a hospital and a retirement home, but
excluding 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;
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‘‘(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 nutrition site
and a project that provides home-delivered
meals; or
‘‘(v) a disaster relief program;
‘‘(B) has been designated by the appropriate
State agency, or by the Secretary; and
‘‘(C) has been approved by the Secretary for
participation in the program established under
this Act.
‘‘(4) EMERGENCY FEEDING ORGANIZATION.—The
term ‘emergency feeding organization’ means a public
or nonprofit organization that administers activities
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 recipient agency)
providing nutrition assistance to relieve situations of
emergency and distress through the provision of food
to needy persons, including low-income and unem-
ployed persons.
‘‘(5) FOOD BANK.—The term ‘food bank’ means
a public or charitable institution that maintains an
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established operation involving the provision of food
or edible commodities, or the products of food or edi-
ble commodities, to food pantries, soup kitchens, hun-
ger relief centers, or other food or feeding centers that,
as an integral part of their normal activities, provide
meals or food to feed needy persons 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 house-
holds, including food from sources other than the De-
partment of Agriculture, to relieve situations of emer-
gency and distress.
‘‘(7) POVERTY
LINE.—The term ‘poverty line’
has the meaning provided 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.
‘‘(9) TOTAL
VALUE
OF
ADDITIONAL
COMMOD-
ITIES.—The term ‘total value of additional commod-
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ities’ means the actual cost of all additional commod-
ities that are paid by the Secretary (including the
distribution and processing costs incurred by the Sec-
retary).
‘‘(10) VALUE OF ADDITIONAL COMMODITIES AL-
LOCATED TO EACH STATE.—The term ‘value of addi-
tional commodities allocated to each State’ means the
actual cost of additional commodities 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 Emergency
Food Assistance Act of 1983 (Public Law 98–8; 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 adminis-
tration 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;
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‘‘(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 representa-
tives of all entities in the State, both public and private,
interested in the distribution of commodities received under
this Act.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR ADMIN-
ISTRATIVE FUNDS.—Section 204(a)(1) of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended—
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‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made available
for each fiscal year under this section shall be deliv-
ered at reasonable intervals to States based on the
grants calculated under subsection (a), or reallocated
under subsection (b), before December 31 of the follow-
ing fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities de-
termined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (2), by striking ‘‘or reduce’’ and all that follows
through ‘‘each fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Emergency Food
Assistance Act of 1983 (Public Law 98–8; 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.
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(f) REPORT ON EFAP.—Section 1571 of the Food Se-
curity Act of 1985 (Public Law 99–198; 7 U.S.C. 612c note)
is repealed.
(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 section 1164(a), 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 $100,000,000 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 section 32 of the
Act entitled ‘An Act to amend the Agricultural Adjustment
Act, and for other purposes’, approved August 24, 1935 (7
U.S.C. 612c), and distribute the commodities to States for
distribution in accordance with section 214 of the Emer-
gency 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—
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‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and distrib-
uting agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by sub-
section (d) shall become effective on October 1, 1996.
SEC. 1172. 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. 1173. 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. 1174. 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).
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Subtitle B—Child Nutrition
Programs
CHAPTER 1—AMENDMENTS TO THE
NATIONAL SCHOOL LUNCH ACT
SEC. 1201. 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 seventh
sentences, as amended by paragraph (2), as sub-
sections (a) through (g), 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 inserting
‘‘Use of funds paid to States’’.
(b) DEFINITION OF CHILD.—Section 12(d) of the Na-
tional School Lunch Act (42 U.S.C. 1760(d)) is amended
by adding at the end the following:
‘‘(9) CHILD.—
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‘‘(A) IN
GENERAL.—The term ‘child’ in-
cludes an individual, regardless of age, who—
‘‘(i) is determined by a State edu-
cational agency, in accordance with regula-
tions prescribed by the Secretary, to have 1
or more mental or physical disabilities; and
‘‘(ii) is attending any institution, as
defined in section 17(a), or any nonresiden-
tial public or nonprofit private school of
high school grade or under, for the purpose
of participating in a school program estab-
lished for individuals with mental or phys-
ical disabilities.
‘‘(B) RELATIONSHIP TO CHILD AND ADULT
CARE FOOD PROGRAM.—No institution that is
not otherwise eligible to participate in the pro-
gram under section 17 shall be considered eligi-
ble because of this paragraph.’’.
SEC. 1202. 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)—
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(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
(3) by redesignating paragraph (4) as para-
graph (3).
(b) UTILIZATION OF AGRICULTURAL COMMODITIES.—
Section 9(c) of the National School Lunch Act (42 U.S.C.
1758(c)) is amended—
(1) in the fifth sentence, by striking ‘‘of the pro-
visions of law referred to in the preceding sentence’’
and inserting ‘‘provision of law’’; and
(2) by striking the second, fourth, and sixth sen-
tences.
(c) CONFORMING AMENDMENT.—The last sentence of
section 9(d)(1) of the National School Lunch Act (42 U.S.C.
1758(d)(1)) is amended by striking ‘‘subsection (b)(2)(C)’’
and inserting ‘‘subsection (b)(2)(B)’’.
(d) NUTRITIONAL INFORMATION.—Section 9(f) of the
National School Lunch Act (42 U.S.C. 1758(f)) is amend-
ed—
(1) by striking paragraph (1);
(2) by striking ‘‘(2)’’;
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(3) by redesignating subparagraphs (A) through
(D) as paragraphs (1) through (4), respectively;
(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, each school that is
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 Nu-
trition 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 allowance
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
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Board of the National Research Council of
the National Academy of Sciences.’’;
(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; and
(B) in subparagraph (A), as so redesig-
nated—
(i) by redesignating subclauses (I) and
(II) as clauses (i) and (ii), respectively; and
(ii) in clause (ii), as so redesignated,
by striking ‘‘subparagraph (C)’’ and insert-
ing ‘‘paragraph (3)’’.
(e) USE OF RESOURCES.—Section 9 of the National
School Lunch Act (42 U.S.C. 1758) is amended by striking
subsection (h).
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SEC. 1203. 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 1202(b)(1), is
amended by adding at the end the following:
‘‘(C) FREE
AND
REDUCED
PRICE
POLICY
STATEMENT.—After the initial submission, a
school food authority shall not be required to
submit a free and reduced price policy statement
to a State educational agency under this Act un-
less there is a substantive change in the free and
reduced price policy of the school food authority.
A routine change in the policy of a school food
authority, such as an annual adjustment of the
income eligibility guidelines for free and reduced
price meals, shall not be sufficient cause for re-
quiring the school food authority to submit a
policy statement.’’.
SEC. 1204. 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 National School Lunch Act (42 U.S.C. 1759a) is
amended—
(1) by striking subsection (d);
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(2) in subsection (e)(2)—
(A) by striking ‘‘The’’ and inserting ‘‘On
request of the Secretary, the’’; and
(B) by striking ‘‘each month’’; and
(3) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
SEC. 1205. MISCELLANEOUS PROVISIONS AND DEFINI-
TIONS.
(a) ACCOUNTS AND RECORDS.—The second sentence of
section 12(a) of the National School Lunch Act (42 U.S.C.
1760(a)) is amended by striking ‘‘at all times be available’’
and inserting ‘‘be available at any reasonable time’’.
(b) RESTRICTION ON REQUIREMENTS.—Section 12(c)
of the National School Lunch Act (42 U.S.C. 1760(c)) is
amended by striking ‘‘neither the Secretary nor the State
shall’’ and inserting ‘‘the Secretary shall not’’.
(c) DEFINITIONS.—Section 12(d) of the National
School Lunch Act (42 U.S.C. 1760(d)), as amended by sec-
tion 1201(b), is amended—
(1) in paragraph (1), by striking ‘‘the Trust Ter-
ritory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth 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),
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and (1), respectively, and rearranging the paragraphs
so as to appear in numerical order.
(d) ADJUSTMENTS TO NATIONAL AVERAGE PAYMENT
RATES.—Section 12(f) of the National School Lunch Act
(42 U.S.C. 1760(f)) is amended by striking ‘‘the Trust Ter-
ritory of the Pacific Islands,’’.
(e) EXPEDITED RULEMAKING.—Section 12(k) of the
National School Lunch Act (42 U.S.C. 1760(k)) is amend-
ed—
(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 National School
Lunch Act (42 U.S.C. 1760(l)) is amended—
(1) in paragraph (2)(A)—
(A) in clause (iii), by adding ‘‘and’’ at the
end;
(B) in clause (iv), by striking the semicolon
at the end and inserting a period; and
(C) by striking clauses (v) through (vii);
(2) in paragraph (3)—
(A) in subparagraph (A), by striking ‘‘(A)’’;
and
(B) by striking subparagraphs (B) through
(D);
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(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);
(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 follows
through ‘‘(B)’’; and
(B) by redesignating clauses (i) through (iv)
as subparagraphs (A) through (D), respectively.
(g) SIMPLIFIED ADMINISTRATION OF SCHOOL MEAL
AND OTHER NUTRITION PROGRAMS.—Section 12 of the Na-
tional School Lunch Act (42 U.S.C. 1760), as amended by
subsection (g), is amended by adding at the end the follow-
ing:
‘‘(m) SIMPLIFIED ADMINISTRATION OF SCHOOL MEAL
AND OTHER NUTRITION PROGRAMS.—Notwithstanding any
other provision of law, no assistance or benefits provided
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under the programs established under the following provi-
sions of law shall be contingent on the citizenship or immi-
gration status of any applicant or recipient:
‘‘(1) This Act.
‘‘(2) The Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
‘‘(3) Section 4 of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–86; 7 U.S.C.
612c note).
‘‘(4) The Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note).
‘‘(5) The food distribution program on Indian
reservations established under section 4(b) of Public
Law 88–525 (7 U.S.C. 2013(b)).’’.
SEC. 1206. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DONA-
TIONS.—Section 14(b) of the National School Lunch Act (42
U.S.C. 1762a(b)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(b) ADVISORY COUNCIL.—Section 14(e) of the National
School Lunch Act (42 U.S.C. 1762a(e)) is amended by strik-
ing ‘‘educational’’.
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(c) CASH
COMPENSATION
FOR
PILOT
PROJECT
SCHOOLS.—Section 14(g) of the National School Lunch Act
(42 U.S.C. 1762a(g)) is amended by striking paragraph (3).
SEC. 1207. CHILD AND ADULT CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the
National School Lunch Act (42 U.S.C. 1766) is amended
in the first sentence of subsection (a), by striking ‘‘initiate,
maintain, and expand’’ and inserting ‘‘initiate and main-
tain’’.
(b) PAYMENTS TO SPONSOR EMPLOYEES.—Paragraph
(2) of the last sentence of section 17(a) of the National
School Lunch Act (42 U.S.C. 1766(a)) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at
the end;
(2) in subparagraph (C), by striking the period
at the end 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 organiza-
tion on the number of family or group day care
homes recruited.’’.
(c) TECHNICAL ASSISTANCE.—The last sentence of sec-
tion 17(d)(1) of the National School Lunch Act (42 U.S.C.
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1766(d)(1)) is amended by striking ‘‘, and shall provide
technical assistance’’ and all that follows through ‘‘its ap-
plication’’.
(d) REIMBURSEMENT
OF
CHILD
CARE
INSTITU-
TIONS.—Section 17(f)(2)(B) of the National School Lunch
Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking ‘‘two
meals and two supplements or three meals and one supple-
ment’’ and inserting ‘‘2 meals and 1 supplement’’.
(e) IMPROVED TARGETING OF DAY CARE HOME REIM-
BURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended
by striking ‘‘(3)(A) Institutions’’ and all 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 sec-
tion as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the or-
ganization, reimbursement factors in ac-
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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 OF TIER I FAM-
ILY OR GROUP DAY CARE HOME.—In
this paragraph, the term ‘tier I family
or group day care home’ means—
‘‘(aa) a family or group day
care home that is located in a geo-
graphic area, as defined by the
Secretary based on census data, in
which at least 50 percent of the
children residing in the area are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9;
‘‘(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-
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ber of children enrolled are cer-
tified eligible to receive free or re-
duced price school meals under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the income eligibility guidelines
for free or reduced price meals
under section 9 and whose income
is verified by the sponsoring or
organization of the home under
regulations established by the Sec-
retary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier I
family or group day care home shall be
provided reimbursement factors under
this clause without a requirement for
documentation of the costs described in
clause (i), except that reimbursement
shall not be provided under this sub-
clause for meals or supplements served
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to the children of a person acting as a
family or group day care home pro-
vider unless the children meet the in-
come eligibility guidelines for free or
reduced price meals under section 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reimburse-
ment factors applied to a home referred
to in subclause (II) shall be the factors
in effect on July 1, 1996.
‘‘(IV) ADJUSTMENTS.—The reim-
bursement factors under this subpara-
graph shall be adjusted on July 1,
1997, and each July 1 thereafter, to re-
flect changes in the Consumer Price
Index for food at home for the most re-
cent 12-month period for which the
data are available. The reimbursement
factors under this subparagraph 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.—
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‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a fam-
ily or group day care home that
does not meet the criteria set forth
in clause (ii)(I), the reimburse-
ment factors shall be $1 for
lunches and suppers, 30 cents for
breakfasts, and 15 cents for sup-
plements.
‘‘(bb) 
ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-month
period for which the data are
available. The reimbursement fac-
tors under this item shall be
rounded down to the nearest lower
cent increment and based on the
unrounded adjustment for the pre-
ceding 12-month period.
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‘‘(cc) 
REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for documenta-
tion of the costs described in
clause (i), except that reimburse-
ment shall not be provided under
this subclause for meals or supple-
ments served to the children of a
person acting as a family or
group day care home provider un-
less the children meet the income
eligibility guidelines for free or re-
duced price meals under section 9.
‘‘(II) OTHER FACTORS.—A family
or group day care home that does not
meet the criteria set forth in clause
(ii)(I) may elect to be provided reim-
bursement factors determined in ac-
cordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
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supplements served under this
subsection to children who are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced price
meals under section 9, the family
or group day care home shall be
provided reimbursement factors
set by the Secretary in accordance
with clause (ii)(III).
‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes do not meet the income eli-
gibility guidelines, the family or
group day care home shall be pro-
vided reimbursement factors in
accordance with subclause (I).
‘‘(III) INFORMATION AND DETER-
MINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
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scribed in subclause (II), the fam-
ily or group day care home spon-
soring organization serving the
home shall collect the necessary
income information, as deter-
mined by the Secretary, from any
parent or other caretaker to make
the determinations specified in
subclause (II) and shall make the
determinations 
in 
accordance
with rules prescribed by the Sec-
retary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
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
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reduced price meals under section
9 to be a child who is a member
of a household whose income meets
the income eligibility guidelines
under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii)(III)
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not to
have income statements collected
from parents or other caretakers.
‘‘(IV) SIMPLIFIED
MEAL
COUNT-
ING
AND
REPORTING
PROCEDURES.—
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
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Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the num-
ber of meals served that are to be
reimbursed in accordance with the
reimbursement factors prescribed
under clause (ii)(III) and an an-
nual percentage of the number of
meals served that are to be reim-
bursed in accordance with the re-
imbursement 
factors 
prescribed
under subclause (I), based on the
family income of children enrolled
in the home in a specified month
or other period.
‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the per-
centage of children in the home
whose households have incomes
that meet the income eligibility
guidelines under section 9, with
each such reimbursement category
carrying a set of reimbursement
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factors such as the factors pre-
scribed under clause (ii)(III) or
subclause (I) or factors established
within the range of factors pre-
scribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
‘‘(V) MINIMUM VERIFICATION RE-
QUIREMENTS.—The Secretary may es-
tablish any minimum verification re-
quirements that are necessary to carry
out this clause.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE
TO FAMILY OR GROUP DAY CARE HOMES.—Section
17(f)(3) of the National School Lunch Act (42 U.S.C.
1766(f)(3)) is amended by adding at the end the fol-
lowing:
‘‘(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
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this section, the Secretary shall reserve
$5,000,000 of the amount made avail-
able 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
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
1208(e)(1) of the Agricultural
Reconciliation Act of 1996.
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‘‘(ii) 
ALLOCATION.—The 
Secretary
shall allocate from the funds reserved under
clause (i)(I)—
‘‘(I) $30,000 in base funding to
each State; and
‘‘(II) 
any 
remaining 
amount
among the States, based on the number
of family day care homes participating
in the program in a State during fis-
cal year 1995 as a percentage of the
number of all family day care 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 subparagraph
shall be in addition to payments that a
State receives under subparagraph (A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of the
National School Lunch Act (42 U.S.C. 1766(f)(3)), as
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amended by paragraph (2), is amended by adding at
the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANIZA-
TIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child and adult care food pro-
gram under this section data from the most
recent decennial census survey or other ap-
propriate census survey for which the data
are available showing which areas in the
State meet the requirements of subpara-
graph (A)(ii)(I)(aa). The State agency shall
provide the data to family or group day
care home sponsoring organizations located
in the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN GENERAL.—A State agen-
cy administering the school lunch pro-
gram under this Act or the school
breakfast program under the Child Nu-
trition Act of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved family
or group day care home sponsoring or-
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ganizations a list of schools serving ele-
mentary school children in the State in
which not less than 1⁄2 of the children
enrolled are certified to receive free or
reduced price meals. The State agency
shall collect the data necessary to cre-
ate the list annually and provide the
list on a timely basis to any approved
family or group day care home spon-
soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
tier I family or group day care home
under subparagraph (A)(ii)(I), the
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring or-
ganization, shall use the most current
available data at the time of the deter-
mination.
‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a deter-
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mination that a family or group day care
home is located in an area that qualifies the
home as a tier I family or group day care
home (as the term is defined in subpara-
graph (A)(ii)(I)), shall be in effect for 3
years (unless the determination is made on
the basis of census data, in which case the
determination shall remain in effect until
more recent census data are available) un-
less the State agency determines that the
area in which the home is located no longer
qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the National School Lunch Act (42 U.S.C. 1766(c))
is amended by inserting ‘‘except as provided in sub-
section (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 National
School Lunch Act (42 U.S.C. 1766(f)) is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the
third and fourth sentences; and
(B) in subparagraph (C)(ii), by striking
‘‘conduct outreach’’ and all that follows through
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‘‘may become’’ and inserting ‘‘assist unlicensed
family or group day care homes in becoming’’;
and
(2) in the first sentence of paragraph (4), by
striking ‘‘shall’’ and inserting ‘‘may’’.
(g) NUTRITIONAL REQUIREMENTS.—Section 17(g)(1)
of the National School Lunch Act (42 U.S.C. 1766(g)(1))
is amended—
(1) in subparagraph (A), by striking the second
sentence; and
(2) in subparagraph (B), by striking the second
sentence.
(h) ELIMINATION OF STATE PAPERWORK AND OUT-
REACH BURDEN.—Section 17 of the National School Lunch
Act (42 U.S.C. 1766) is amended by striking subsection (k)
and inserting the following:
‘‘(k) TRAINING
AND
TECHNICAL
ASSISTANCE.—A
State participating in the program established under this
section shall provide sufficient training, technical assist-
ance, and monitoring to facilitate effective operation of the
program. The Secretary shall assist the State in developing
plans to fulfill the requirements of this subsection.’’.
(i) RECORDS.—The second sentence of section 17(m)
of the National School Lunch Act (42 U.S.C. 1766(m)) is
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amended by striking ‘‘at all times’’ and inserting ‘‘at any
reasonable time’’.
(j) INFORMATION FOR PARENTS.—Section 17 of the
National School Lunch Act (42 U.S.C. 1766) is amended
by striking subsection (q) and inserting the following:
‘‘(q) INFORMATION FOR PARENTS.—The State agency
shall ensure that, at least once a year, child care institu-
tions provide written information to parents that in-
cludes—
‘‘(1) basic information on the benefits of the spe-
cial supplemental nutrition program for women, in-
fants, and children authorized under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786);
‘‘(2) information on the maximum income lim-
its, according to family size, applicable to the pro-
gram; and
‘‘(3) information on where parents may apply to
participate in the program.’’.
(k) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
become effective on the date of enactment of this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The amendments made by para-
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graphs (1) and (4) of subsection (e) shall become effec-
tive on July 1, 1997.
(3) REGULATIONS.—
(A) INTERIM REGULATIONS.—Not later than
January 1, 1997, the Secretary of Agriculture
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 of Agriculture shall
issue final regulations to implement the provi-
sions of law referred to in subparagraph (A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM
PARTICIPATION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture,
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 and adult care food
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program established under section 17 of the Na-
tional 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 issued
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
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 reim-
bursement 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-
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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 and adult care food program
under section 17 of the National School Lunch Act
(42 U.S.C. 1766) shall submit to the Secretary of Ag-
riculture 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 li-
censed, certified, registered, or approved for serv-
ice 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 date of enactment of this section, the
Secretary of Agriculture shall submit the study re-
quired under this subsection to the Committee on Eco-
nomic and Educational Opportunities of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
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SEC. 1208. 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) DEMONSTRATION
PROJECT
OUTSIDE
SCHOOL
HOURS.—Section 18(e) of the National School Lunch Act
(42 U.S.C. 1769(e)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting
‘‘may’’; and
(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) CONFORMING AMENDMENT.—Section 17B(d)(1)(A)
of 
the 
National 
School 
Lunch 
Act 
(42 
U.S.C.
1766b(d)(1)(A)) is amended by striking ‘‘18(c)’’ and insert-
ing ‘‘18(b)’’.
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SEC. 1209. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42
U.S.C. 1769a) is repealed.
SEC. 1210. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42
U.S.C. 1769d) is repealed.
SEC. 1211. NUTRITION GUIDANCE FOR CHILD NUTRITION
PROGRAMS.
Section 24 of the National School Lunch Act (42
U.S.C. 1769e) is repealed.
CHAPTER 2—AMENDMENTS TO THE CHILD
NUTRITION ACT OF 1966
SEC. 1251. 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 Ter-
ritory of the Pacific Islands’’ and inserting ‘‘the Common-
wealth of the Northern Mariana Islands’’.
SEC. 1252. 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 food authority shall not be required to
submit a free and reduced price policy statement
to a State educational agency under this Act un-
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HR 3734 EAS
less there is a substantive change in the free and
reduced price policy of the school food authority.
A routine change in the policy of a school food
authority, such as an annual adjustment of the
income eligibility guidelines for free and reduced
price meals, shall not be sufficient cause for re-
quiring the school food authority to submit a
policy statement.’’.
SEC. 1253. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD
PREPARATION.—Section 4(e)(1)(B) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(e)(1)(B)) is amended by strik-
ing the second sentence.
(b) EXPANSION OF PROGRAM; STARTUP AND EXPAN-
SION COSTS.—
(1) IN GENERAL.—Section 4 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1773) 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. 1254. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION
ADMINISTRATION; STUDIES.—Section 7 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1776) is amended—
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(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i)
as subsections (e), (f), and (g), respectively.
(b) APPROVAL OF CHANGES.—Section 7(e) of the Child
Nutrition Act of 1966 (42 U.S.C. 1776(e)), as so redesig-
nated, 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 be required
to submit to the Secretary for approval only a sub-
stantive change in the plan.’’.
SEC. 1255. 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. 1256. 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’’.
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SEC. 1257. 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 Ter-
ritory of the Pacific Islands’’ and inserting ‘‘the Com-
monwealth 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 fol-
lows through ‘‘Governor of Puerto Rico’’.
SEC. 1258. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1785(a)) is amended by striking
‘‘at all times be available’’ and inserting ‘‘be available at
any reasonable time’’.
SEC. 1259. 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
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(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C).
(b) SECRETARY’S PROMOTION OF WIC.—Section 17(c)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(c)) is
amended by striking paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(d)) is amend-
ed by striking paragraph (4).
(d) STATE PLAN.—Section 17(f) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(f)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Sec-
retary, by a date specified by the Secretary,
a’’ and inserting ‘‘to the Secretary, by a
date specified by the Secretary, an initial’’;
and
(ii) by adding at the end the following:
‘‘After submitting the initial plan, a State
shall be required to submit to the Secretary
for approval only a substantive change in
the plan.’’;
(B) in subparagraph (C)—
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(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’’;
(vi) by redesignating clauses (xi) and
(xiii), as so amended, as clauses (ix) and
(x), respectively; and
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(vii) in clause (ix), as so redesignated,
by adding ‘‘and’’ at the end;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as
subparagraph (D);
(2) in the second sentence of paragraph (5), by
striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’;
(3) in paragraph (9)(B), by striking the second
sentence;
(4) in the first sentence of paragraph (11), by
striking ‘‘, including standar5s that will ensure suffi-
cient State agency staff’’;
(5) in paragraph (12), by striking the third sen-
tence;
(6) in paragraph (17), by striking ‘‘and to ac-
commodate’’ and all that follows through ‘‘facilities’’;
(7) in paragraph (19), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(8) by redesignating paragraphs (3), (4), (5),
(7), (9) through (21), (23), and (24) as paragraphs
(2), (3), (4), (5), (6) through (18), (19), and (20), re-
spectively.
(e) INFORMATION.—Section 17(g) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(g)) is amended—
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(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).
(f) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1786(h)) 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’’;
(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),
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(D), and (E)(iii), in carrying out subpara-
graph (A),’’ and inserting ‘‘subparagraphs
(B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so re-
designated, by striking ‘‘subparagraph (B)’’
each place it appears and inserting ‘‘sub-
paragraph (A)’’; and
(vii) in subparagraph (C)(iii), as so
redesignated, by striking ‘‘subparagraph
(B)’’ and inserting ‘‘subparagraph (A)’’;
and
(2) APPLICATION.—The amendments made by
paragraph (1) shall not apply to a contract for the
procurement of infant formula under section 17(h)(8)
of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(8)) that is in effect on the date of enactment
of this subsection.
(g) NATIONAL ADVISORY COUNCIL ON MATERNAL, IN-
FANT, AND FETAL NUTRITION.—Section 17(k)(3) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(k)(3)) is
amended by striking ‘‘Secretary shall designate’’ and insert-
ing ‘‘Council shall elect’’.
(h) COMPLETED STUDY; COMMUNITY COLLEGE DEM-
ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS-
TEM.—Section 17 of the Child Nutrition Act of 1966 (42
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U.S.C. 1786) is amended by striking subsections (n), (o),
and (p).
(i) DISQUALIFICATION OF VENDORS WHO ARE DIS-
QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Section
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786),
as amended by subsection (i), is amended by adding at the
end the following:
‘‘(n) DISQUALIFICATION OF VENDORS WHO ARE DIS-
QUALIFIED 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)—
‘‘(A) shall be for the same period as the dis-
qualification from the program referred to in
paragraph (1);
‘‘(B) may begin at a later date than the dis-
qualification from the program referred to in
paragraph (1); and
‘‘(C) shall not be subject to judicial or ad-
ministrative review.’’.
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SEC. 1260. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42
U.S.C. 1787) is repealed.
SEC. 1261. 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 in-
serting ‘‘that effective dissemination of scientifically
valid information to children participating or eligible
to participate in the school lunch and related child
nutrition programs should be encouraged.’’; and
(2) in the first sentence of subsection (b), by
striking ‘‘encourage’’ and all that follows through ‘‘es-
tablishing’’ and inserting ‘‘establish’’.
(b) USE OF FUNDS.—Section 19(f) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1788(f)) 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;
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(iv) in subparagraph (I), as so redesig-
nated, 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 second
sentence of section 19(g)(1) of the Child Nutrition Act of
1966 (42 U.S.C. 1788(g)(1)) is amended by striking ‘‘at all
times be available’’ and inserting ‘‘be available at any rea-
sonable time’’.
(d) STATE COORDINATORS FOR NUTRITION; STATE
PLAN.—Section 19(h) of the Child Nutrition Act of 1966
(42 U.S.C. 1788(h)) 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).
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(e) AUTHORIZATION
OF APPROPRIATIONS.—Section
19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(i))
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.—
‘‘(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, ex-
cept 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
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each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’.
(f) ASSESSMENT.—Section 19 of the Child Nutrition
Act of 1966 (42 U.S.C. 1788) is amended by striking sub-
section (j).
(g) EFFECTIVE DATE.—The amendments made by sub-
section (e) shall become effective on October 1, 1996.
SEC. 1262. ROUNDING RULES.
(a) SPECIAL MILK PRICE PROGRAM RATES.—Section
3(a)(8) of the Child Nutrition Act of 1966 (42 U.S.C.
1772(a)(8)) is amended by striking ‘‘one-fourth cent’’ and
inserting ‘‘lower cent increment’’.
(b) REDUCED PRICE BREAKFAST RATES.—Section
4(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b))
is amended—
(1) in the second sentence of paragraph (1)(B),
by striking ‘‘one-fourth cent’’ and inserting ‘‘lower
cent increment’’; and
(2) in paragraph (2)(B)(ii), by striking ‘‘one-
fourth cent’’ and inserting ‘‘lower cent increment’’.
(c) COMMODITY RATE.—The second sentence of section
6(e)(1)(B) of the National School Lunch Act (42 U.S.C.
1755(e)(1)(B)) is amended by striking ‘‘1⁄4 cent’’ and insert-
ing ‘‘lower cent increment’’.
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(d) LUNCH, BREAKFAST, AND SUPPLEMENT RATES.—
The third sentence of section 11(a)(3)(B) of the National
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended
by striking ‘‘one-fourth cent’’ and inserting ‘‘lower cent in-
crement’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall become effective on July 1, 1996.
TITLE II—COMMITTEE ON
FINANCE
Subtitle A—Welfare Reform
SEC. 2001. SHORT TITLE OF SUBTITLE.
This subtitle may be cited as the ‘‘Personal Respon-
sibility and Work Opportunity Act of 1996’’.
SEC. 2002. TABLE OF CONTENTS OF SUBTITLE.
The table of contents for this subtitle is as follows:
TITLE II—COMMITTEE ON FINANCE
Subtitle A—Welfare Reform
Sec. 2001. Short title.
Sec. 2002. Table of contents.
CHAPTER 1—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
Sec. 2101. Findings.
Sec. 2102. Reference to Social Security Act.
Sec. 2103. Block grants to States.
Sec. 2104. Services provided by charitable, religious, or private organizations.
Sec. 2105. Census data on grandparents as primary caregivers for their grand-
children.
Sec. 2106. Report on data processing.
Sec. 2107. Study on alternative outcomes measures.
Sec. 2108. Welfare Formula Fairness Commission.
Sec. 2109. Conforming amendments to the Social Security Act.
Sec. 2110. Conforming amendments to the Food Stamp Act of 1977 and related
provisions.
Sec. 2111. Conforming amendments to other laws.
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Sec. 2112. Development of prototype of counterfeit-resistant social security card
required.
Sec. 2113. Modifications to the job opportunities for certain low-income individ-
uals program.
Sec. 2114. Secretarial submission of legislative proposal for technical and con-
forming amendments.
Sec. 2115. Effective date; transition rule.
Sec. 2116. Community Steering Committees demonstration projects.
Sec. 2117. Denial of benefits for certain drug related convictions.
CHAPTER 2—SUPPLEMENTAL SECURITY INCOME
Sec. 2200. Reference to Social Security Act.
SUBCHAPTER A—ELIGIBILITY RESTRICTIONS
Sec. 2201. Denial of SSI benefits for 10 years to individuals found to have fraud-
ulently misrepresented residence in order to obtain benefits si-
multaneously in 2 or more States.
Sec. 2202. Denial of SSI benefits for fugitive felons and probation and parole vio-
lators.
Sec. 2203. Treatment of prisoners.
Sec. 2204. Effective date of application for benefits.
SUBCHAPTER B—BENEFITS FOR DISABLED CHILDREN
Sec. 2211. Definition and eligibility rules.
Sec. 2212. Eligibility redeterminations and continuing disability reviews.
Sec. 2213. Additional accountability requirements.
Sec. 2214. Reduction in cash benefits payable to institutionalized individuals
whose medical costs are covered by private insurance.
Sec. 2215. Regulations.
SUBCHAPTER C—ADDITIONAL ENFORCEMENT PROVISION
Sec. 2221. Installment payment of large past-due supplemental security income
benefits.
Sec. 2222. Regulations.
SUBCHAPTER D—STUDIES REGARDING SUPPLEMENTAL SECURITY INCOME
PROGRAM
Sec. 2231. Annual report on the supplemental security income program.
Sec. 2232. Study by General Accounting Office.
CHAPTER 3—CHILD SUPPORT
Sec. 2300. Reference to Social Security Act.
SUBCHAPTER A—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS
Sec. 2301. State obligation to provide child support enforcement services.
Sec. 2302. Distribution of child support collections.
Sec. 2303. Privacy safeguards.
Sec. 2304. Rights to notification of hearings.
SUBCHAPTER B—LOCATE AND CASE TRACKING
Sec. 2311. State case registry.
Sec. 2312. Collection and disbursement of support payments.
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Sec. 2313. State directory of new hires.
Sec. 2314. Amendments concerning income withholding.
Sec. 2315. Locator information from interstate networks.
Sec. 2316. Expansion of the Federal Parent Locator Service.
Sec. 2317. Collection and use of social security numbers for use in child support
enforcement.
SUBCHAPTER C—STREAMLINING AND UNIFORMITY OF PROCEDURES
Sec. 2321. Adoption of uniform State laws.
Sec. 2322. Improvements to full faith and credit for child support orders.
Sec. 2323. Administrative enforcement in interstate cases.
Sec. 2324. Use of forms in interstate enforcement.
Sec. 2325. State laws providing expedited procedures.
SUBCHAPTER D—PATERNITY ESTABLISHMENT
Sec. 2331. State laws concerning paternity establishment.
Sec. 2332. Outreach for voluntary paternity establishment.
Sec. 2333. Cooperation by applicants for and recipients of part A assistance.
SUBCHAPTER E—PROGRAM ADMINISTRATION AND FUNDING
Sec. 2341. Performance-based incentives and penalties.
Sec. 2342. Federal and State reviews and audits.
Sec. 2343. Required reporting procedures.
Sec. 2344. Automated data processing requirements.
Sec. 2345. Technical assistance.
Sec. 2346. Reports and data collection by the Secretary.
SUBCHAPTER F—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS
Sec. 2351. Simplified process for review and adjustment of child support orders.
Sec. 2352. Furnishing consumer reports for certain purposes relating to child
support.
Sec. 2353. Nonliability for financial institutions providing financial records to
State child support enforcement agencies in child support cases.
SUBCHAPTER G—ENFORCEMENT OF SUPPORT ORDERS
Sec. 2361. Internal Revenue Service collection of arrearages.
Sec. 2362. Authority to collect support from Federal employees.
Sec. 2363. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 2364. Voiding of fraudulent transfers.
Sec. 2365. Work requirement for persons owing past-due child support.
Sec. 2366. Definition of support order.
Sec. 2367. Reporting arrearages to credit bureaus.
Sec. 2368. Liens.
Sec. 2369. State law authorizing suspension of licenses.
Sec. 2370. Denial of passports for nonpayment of child support.
Sec. 2371. International support enforcement.
Sec. 2372. Financial institution data matches.
Sec. 2373. Enforcement of orders against paternal or maternal grandparents in
cases of minor parents.
Sec. 2374. Nondischargeability in bankruptcy of certain debts for the support of
a child.
Sec. 2375. Child support enforcement for Indian tribes.
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SUBCHAPTER H—MEDICAL SUPPORT
Sec. 2376. Correction to ERISA definition of medical child support order.
Sec. 2377. Enforcement of orders for health care coverage.
SUBCHAPTER I—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON-
RESIDENTIAL PARENTS
Sec. 2381. Grants to States for access and visitation programs.
SUBCHAPTER J—EFFECTIVE DATES AND CONFORMING AMENDMENTS
Sec. 2391. Effective dates and conforming amendments.
CHAPTER 4—RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS
Sec. 2400. Statements of national policy concerning welfare and immigration.
SUBCHAPTER A—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 2401. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 2402. Limited eligibility of qualified aliens for certain Federal programs.
Sec. 2403. Five-year limited eligibility of qualified aliens for Federal means-test-
ed public benefit.
Sec. 2404. Notification and information reporting.
SUBCHAPTER B—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS
PROGRAMS
Sec. 2411. Aliens who are not qualified aliens or nonimmigrants ineligible for
State and local public benefits.
Sec. 2412. State authority to limit eligibility of qualified aliens for State public
benefits.
SUBCHAPTER C—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
Sec. 2421. Federal attribution of sponsor’s income and resources to alien.
Sec. 2422. Authority for States to provide for attribution of sponsors income and
resources to the alien with respect to State programs.
Sec. 2423. Requirements for sponsor’s affidavit of support.
SUBCHAPTER D—GENERAL PROVISIONS
Sec. 2431. Definitions.
Sec. 2432. Verification of eligibility for Federal public benefits.
Sec. 2433. Statutory construction.
Sec. 2434. Communication between State and local government agencies and the
Immigration and Naturalization Service.
Sec. 2435. Qualifying quarters.
SUBCHAPTER E—CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING
Sec. 2441. Conforming amendments relating to assisted housing.
SUBCHAPTER F—EARNED INCOME CREDIT DENIED TO UNAUTHORIZED
EMPLOYEES
Sec. 2451. Earned income credit denied to individuals not authorized to be em-
ployed in the United States.
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CHAPTER 5—REFORM OF PUBLIC HOUSING
Sec. 2501. Failure to comply with other welfare and public assistance programs.
Sec. 2502. Fraud under means-tested welfare and public assistance programs.
CHAPTER 6—TECHNICAL AMENDMENTS RELATING TO CHILD PROTECTION
PROGRAMS
Sec. 2601. Extension of enhanced funding for implementation of statewide auto-
mated child welfare information systems.
Sec. 2602. Redesignation of section 1123.
Sec. 2603. Kinship care.
CHAPTER 7—CHILD CARE
Sec. 2701. Short title and references.
Sec. 2702. Goals.
Sec. 2703. Authorization of appropriations and entitlement authority.
Sec. 2704. Lead agency.
Sec. 2705. Application and plan.
Sec. 2706. Limitation on State allotments.
Sec. 2707. Activities to improve the quality of child care.
Sec. 2708. Repeal of early childhood development and before- and after-school care
requirement.
Sec. 2709. Administration and enforcement.
Sec. 2710. Payments.
Sec. 2711. Annual report and audits.
Sec. 2712. Report by the Secretary.
Sec. 2713. Allotments.
Sec. 2714. Definitions.
Sec. 2715. Effective date.
CHAPTER 8—MISCELLANEOUS
Sec. 2801. Appropriation by State legislatures.
Sec. 2802. Sanctioning for testing positive for controlled substances.
Sec. 2803. Reduction in block grants to States for social services.
Sec. 2804. Elimination of housing assistance with respect to fugitive felons and
probation and parole violators.
Sec. 2805. Sense of the Senate regarding enterprise zones.
Sec. 2806. Sense of the Senate regarding the inability of the non-custodial parent
to pay child support.
Sec. 2807. Establishing national goals to prevent teenage pregnancies.
Sec. 2808. Sense of the Senate regarding enforcement of statutory rape laws.
Sec. 2809. Provisions to encourage electronic benefit transfer systems.
Sec. 2810. Rules relating to denial of earned income credit on basis of disquali-
fied income.
Sec. 2811. Modification of adjusted gross income definition for earned income
credit.
Sec. 2812. Suspension of inflation adjustments for individuals with no qualifying
children.
Sec. 2813. Refundable credit for adoption expenses.
Sec. 2814. Exclusion of adoption assistance.
Sec. 2815. Withdrawal from IRA for adoption expenses.
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CHAPTER 1—BLOCK GRANTS FOR TEM-
PORARY ASSISTANCE FOR NEEDY FAM-
ILIES
SEC. 2101. FINDINGS.
The Congress makes the following findings:
(1) Marriage is the foundation of a successful so-
ciety.
(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 enforced
through the public child support enforcement system,
only 18 percent of the caseload has a collection.
(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
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AFDC benefits now live in homes in which no father
is present.
(A)(i) The average monthly number of chil-
dren 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 between
1965 and 1992, the total number of children in
the United States aged 0 to 18 has declined 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:
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(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 pregnancies in
1991.
(B) The total of all out-of-wedlock births be-
tween 1970 and 1991 has risen from 10.7 per-
cent to 29.5 percent and if the current trend con-
tinues, 50 percent of all births by the year 2015
will be out-of-wedlock.
(7) An effective strategy to combat teenage preg-
nancy must address the issue of male responsibility,
including statutory rape culpability and prevention.
The increase of teenage pregnancies among the young-
est girls is particularly severe and is linked to preda-
tory sexual practices by men who are significantly
older.
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(A) It is estimated that in the late 1980’s,
the rate for girls age 14 and under giving birth
increased 26 percent.
(B) Data indicates that at least half of the
children born to teenage mothers are fathered by
adult men. Available data suggests that almost
70 percent of births to teenage girls are fathered
by men over age 20.
(C) Surveys of teen mothers have revealed
that a majority of such mothers have histories of
sexual and physical abuse, primarily with older
adult men.
(8) The negative consequences of an out-of-wed-
lock birth on the mother, the child, the family, and so-
ciety 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 effects of
‘‘younger and longer’’ increase total 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.
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(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 edu-
cational 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.
(9) 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, nevertheless,
the negative consequences of raising children in sin-
gle-parent homes are well documented as follows:
(A) Only 9 percent of married-couple fami-
lies with children under 18 years of age have in-
come below the national poverty level. In con-
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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 received
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 before
finishing high school are more likely to receive
welfare assistance for a longer period of time.
(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 program
has been estimated at $120,000,000,000.
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(H) The absence of a father in the life of a
child has a negative effect on school performance
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-par-
ent 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,
only 29.8 percent lived primarily in a home
with both parents. In contrast to these incarcer-
ated youth, 73.9 percent of the 62,800,000 chil-
dren in the Nation’s resident population were
living with both parents.
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(10) Therefore, in light of this demonstration of
the crisis in our Nation, it is the sense of the Congress
that prevention of out-of-wedlock pregnancy and re-
duction in out-of-wedlock birth and protection of teen-
age girls from pregnancy as well as predatory sexual
behavior are very important Government interests
and the policy contained in part A of title IV of the
Social Security Act (as amended by section 2103(a)
of this Act) is intended to address the crisis.
SEC. 2102. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this chapter 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 section or
other provision of the Social Security Act.
SEC. 2103. 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 2803(b)(2) of this Act) and inserting
the following:
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‘‘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 in-
crease the flexibility of States in operating a program de-
signed 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 gov-
ernment 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 ‘eli-
gible State’ means, with respect to a fiscal year, a State
that, during the 2-year period immediately preceding the
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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 en-
gage in work (as defined by the State) once
the State determines the parent or caretaker
is ready to engage in work, or once the par-
ent or caretaker has received assistance
under the program for 24 months (whether
or not consecutive), whichever is earlier.
‘‘(iii) Ensure that parents and care-
takers receiving assistance under the pro-
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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 indi-
viduals and families receiving assistance
under the program attributable to funds
provided by the Federal Government.
‘‘(v) Establish goals and take action to
prevent and reduce the incidence of out-of-
wedlock pregnancies, with special emphasis
on teenage pregnancies, and establish nu-
merical goals for reducing the illegitimacy
ratio of the State (as defined in section
403(a)(2)(B)) for calendar years 1996
through 2005.
‘‘(vi) Conduct a program, designed to
reach State and local law enforcement offi-
cials, the education system, and relevant
counseling services, that provides education
and training on the problem of statutory
rape so that teenage pregnancy prevention
programs may be expanded in scope to in-
clude men.
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‘‘(vii) Determine, on an objective and
equitable basis, the needs of and the amount
of assistance to be provided to needy fami-
lies, and, except as provided in subpara-
graph (B), treat families of similar needs
and circumstances similarly.
‘‘(viii) Grant an opportunity for a fair
hearing before the appropriate State agency
to any individual to whom assistance under
the program has been denied, reduced, or
terminated, or whose request for such assist-
ance is not acted on with reasonable
promptness.
‘‘(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 assist-
ance under the program to individuals who
are not citizens of the United States, and if
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so, shall include an overview of such assist-
ance.
‘‘(iii) Not later than one year after the
date of enactment of this Act, unless the
State opts out of this provision by notifying
the Secretary, a State shall, consistent with
the exception provided in section 407(e)(2),
require a parent or caretaker receiving as-
sistance under the program who, after re-
ceiving such assistance for two months is
not exempt from work requirements and is
not engaged in work, as determined under
section 407(c), to participate in community
service employment, with minimum hours
per week and tasks to be determined by the
State.
‘‘(2) CERTIFICATION THAT THE STATE WILL OP-
ERATE A CHILD SUPPORT ENFORCEMENT PROGRAM.—
A certification by the chief executive officer of the
State that, during the fiscal year, the State will oper-
ate a child support enforcement program under the
State plan approved under part D.
‘‘(3) CERTIFICATION THAT THE STATE WILL OP-
ERATE A FOSTER CARE AND ADOPTION ASSISTANCE
PROGRAM.—A certification by the chief executive offi-
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cer of the State that, during the fiscal year, the State
will operate a foster care and adoption assistance
program under the State plan approved under part
E, and that the State will take such actions as are
necessary to ensure that children receiving assistance
under such part are eligible for medical assistance
under the State plan under title XIX (or XV, if appli-
cable).
‘‘(4) CERTIFICATION
OF
THE
ADMINISTRATION
OF THE PROGRAM.—A certification by the chief execu-
tive officer of the State specifying which State agency
or agencies will administer and supervise the pro-
gram referred to in paragraph (1) for the fiscal year,
which shall include assurances that local governments
and private sector organizations—
‘‘(A) have been consulted regarding the plan
and design of welfare services in the State so
that services are provided in a manner appro-
priate 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 offi-
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cer of the State that, during the fiscal year, the State
will provide each Indian who is a member of an In-
dian 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.
‘‘(6) CERTIFICATION OF STANDARDS AND PROCE-
DURES TO ENSURE AGAINST PROGRAM FRAUD AND
ABUSE.—A certification by the chief executive officer
of the State that the State has established and is en-
forcing standards and procedures to ensure against
program fraud and abuse, including standards and
procedures concerning nepotism, conflicts of interest
among individuals responsible for the administration
and supervision of the State program, kickbacks, and
the use of political patronage.
‘‘(7) CERTIFICATION OF STANDARDS AND PROCE-
DURES TO ENSURE THAT THE STATE WILL SCREEN
FOR AND IDENTIFY DOMESTIC VIOLENCE.—
‘‘(A) IN GENERAL.—A certification by the
chief executive officer of the State that the State
has established and is enforcing standards and
procedures to—
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‘‘(i) screen and identify individuals re-
ceiving assistance under this part with a
history of domestic violence while maintain-
ing the confidentiality of such individuals;
‘‘(ii) refer such individuals to counsel-
ing and supportive services; and
‘‘(iii) waive, pursuant to a determina-
tion of good cause, other program require-
ments such as time limits (for so long as
necessary) for individuals receiving assist-
ance, residency requirements, child support
cooperation requirements, and family cap
provisions, in cases where compliance with
such requirements would make it more dif-
ficult for individuals receiving assistance
under this part to escape domestic violence
or unfairly penalize such individuals who
are or have been victimized by such vio-
lence, or individuals who are at risk of fur-
ther domestic violence.
‘‘(B) DOMESTIC VIOLENCE DEFINED.—For
purposes of this paragraph, the term ‘domestic
violence’ has the same meaning as the term ‘bat-
tered or subjected to extreme cruelty’, as defined
in section 408(a)(8)(C)(iii).
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‘‘(8) CERTIFICATION REGARDING ELIGIBILITY OF
INDIVIDUAL
WHO
HAS
BEEN
BATTERED
OR
SUB-
JECTED TO EXTREME CRUELTY.—A certification by
the chief executive officer of the State that the State
has established and is enforcing standards and proce-
dures to ensure that in the case of an individual who
has been battered or subjected to extreme cruelty, as
determined under section 408(a)(8)(C)(iii), the State
will determine the eligibility of such individual for
assistance under this part based solely on such indi-
vidual’s income.
‘‘(b) PUBLIC AVAILABILITY
OF STATE PLAN SUM-
MARY.—The State shall make available to the public a sum-
mary of any plan submitted by the State under this section.
‘‘SEC. 403. GRANTS TO STATES.
‘‘(a) GRANTS.—
‘‘(1) FAMILY ASSISTANCE GRANT.—
‘‘(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 DE-
FINED.—As used in this part, the term ‘State
family assistance grant’ means the greatest of—
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‘‘(i) 1⁄3 of the total amount required to
be paid to the State under former section
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 ef-
fect));
‘‘(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
amount required to be paid to the State
under former section 403(a)(5) for emer-
gency assistance for fiscal year 1995 exceeds
the total amount required to be paid to the
State under former section 403(a)(5) for fis-
cal year 1994, if, during fiscal year 1994 or
1995, the Secretary approved under former
section 402 an amendment to the former
State plan to allow the provision of emer-
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gency assistance in the context of family
preservation; or
‘‘(iii) 4⁄3 of the total amount required
to be paid to the State under former section
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 effect) or for child
care under subsection (g) or (i) of former
section 402 (as so in effect)), plus the total
amount required to be paid to the State for
fiscal year 1995 under former section 403(l)
(as so in effect).
‘‘(C) TOTAL AMOUNT REQUIRED TO BE PAID
TO THE STATE UNDER FORMER SECTION 403 DE-
FINED.—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 fis-
cal year—
‘‘(i) in the case of a State to which sec-
tion 1108 does not apply, the sum of—
‘‘(I) the Federal share of mainte-
nance assistance expenditures for the
fiscal year, before reduction pursuant
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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 devel-
opment of management information
systems) for the fiscal year, as reported
by the State on ACF Form 231;
‘‘(III) the Federal share of emer-
gency assistance expenditures for the
fiscal year, as reported by the State on
ACF Form 231;
‘‘(IV) the Federal share of expend-
itures for the fiscal year with respect to
child care pursuant to subsections (g)
and (i) of former section 402 (as in ef-
fect on September 30, 1995), as re-
ported 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
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effect on September 30, 1995), as deter-
mined by the Secretary, including ad-
ditional 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 403
(as in effect during the fiscal year)
with respect to the territory.
‘‘(D) INFORMATION TO BE USED IN DETER-
MINING 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 informa-
tion available as of April 28, 1995.
‘‘(II) In determining the amount
described in subparagraph (C)(i)(V)
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for any State for each of fiscal years
1992 and 1993, the Secretary shall use
information available as of January 6,
1995.
‘‘(ii) FOR FISCAL YEAR 1994.—In deter-
mining the amounts described in subpara-
graph (C)(i) for any State for fiscal year
1994, the Secretary shall use information
available as of April 28, 1995.
‘‘(iii) FOR FISCAL YEAR 1995.—
‘‘(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 expendi-
tures 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.
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‘‘(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.
‘‘(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,
an illegitimacy reduction bonus if—
‘‘(i) the State demonstrates that the
number of out-of-wedlock births that oc-
curred in the State during the most recent
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2-year period for which such information is
available decreased as compared to the
number of such births that occurred during
the previous 2-year period; and
‘‘(ii) the rate of induced pregnancy ter-
minations in the State for the fiscal year is
less than the rate of induced pregnancy ter-
minations in the State for fiscal year 1995.
‘‘(B) 
PARTICIPATION
IN
ILLEGITIMACY
BONUS.—A State that demonstrates a decrease
under subparagraph (A)(i) shall be eligible for a
grant under paragraph (5).
‘‘(II) the rate of induced preg-
nancy terminations in the State for the
fiscal year is less than the rate of in-
duced pregnancy terminations in the
State for fiscal year 1995.
‘‘(C) 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 informa-
tion is available; divided by
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‘‘(ii) the number of births that occurred
in the State during the most recent fiscal
year for which such information is avail-
able.
‘‘(D) DISREGARD OF CHANGES IN DATA DUE
TO CHANGED REPORTING METHODS.—For pur-
poses 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 the pre-
ceding 2 fiscal years 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.
‘‘(E) 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
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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—
‘‘(i) for fiscal year 1998 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 1999,
2000, and 2001, 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
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effect during fiscal year 1994) for
fiscal year 1994; and
‘‘(bb) the amount (if any) re-
quired 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.
‘‘(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
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immediately preceding fiscal year is
less than the national average level of
State welfare spending per poor person
for such preceding fiscal year; and
‘‘(II) the population growth rate
of the State (as determined by the Bu-
reau of the Census) for the most recent
fiscal year for which information is
available exceeds the average popu-
lation growth rate for all States (as so
determined) for such most recent fiscal
year.
‘‘(ii) STATE MUST QUALIFY IN FISCAL
YEAR 1998.—Notwithstanding clause (i), a
State shall not be a qualifying State for
any fiscal year after 1998 by reason of
clause (i) if the State is not a qualifying
State for fiscal year 1998 by reason of
clause (i).
‘‘(iii) 
CERTAIN
STATES
DEEMED
QUALIFYING STATES.—For purposes of this
paragraph, a State is deemed to be a quali-
fying State for fiscal years 1998, 1999,
2000, and 2001 if—
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‘‘(I) the level of welfare spending
per poor person by the State for fiscal
year 1997 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
from April 1, 1990 to July 1, 1994, ac-
cording to the population estimates in
publication CB94-204 of the Bureau 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
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ment account directly to an eligible edu-
cational institution.
‘‘(ii) FIRST-HOME PURCHASE.—Quali-
fied acquisition costs with respect to a
qualified principal residence for a qualified
first-time homebuyer, if paid from an indi-
vidual development account directly to the
persons to whom the amounts are due.
‘‘(iii) BUSINESS
CAPITALIZATION.—
Amounts paid from an individual develop-
ment account directly to a business capital-
ization account which is established in a
federally insured financial institution and
is restricted to use solely for qualified busi-
ness capitalization expenses.
‘‘(C) CONTRIBUTIONS TO BE FROM EARNED
INCOME.—An individual may only contribute to
an 
individual 
development 
account 
such
amounts as are derived from earned income, as
defined in section 911(d)(2) of the Internal Reve-
nue Code of 1986.
‘‘(D) WITHDRAWAL
OF
FUNDS.—The Sec-
retary shall establish such regulations as may be
necessary to ensure that funds held in an indi-
vidual development account are not withdrawn
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HR 3734 EAS
vouchers, or other forms of disbursement which
are redeemable with such organizations.
(2) PROGRAMS DESCRIBED.—The programs de-
scribed in this paragraph are the following programs:
(A) A State program funded under part A
of title IV of the Social Security Act (as amend-
ed by section 2103(a) of this Act).
(B) Any other program established or modi-
fied under chapter 1 or 2 of this subtitle, that—
(i) permits contracts with organiza-
tions; or
(ii) permits certificates, vouchers, or
other forms of disbursement to be provided
to beneficiaries, as a means of providing as-
sistance.
(b) RELIGIOUS ORGANIZATIONS.—The purpose of this
section is to allow States to contract with religious organi-
zations, or to allow religious organizations to accept certifi-
cates, vouchers, or other forms of disbursement under any
program described in subsection (a)(2), on the same basis
as any other nongovernmental provider without impairing
the religious character of such organizations, and without
diminishing the religious freedom of beneficiaries of assist-
ance funded under such program.