H. R. 2419—184 
(ii) in subparagraph (D), by striking ‘‘coupons’’ and 
inserting ‘‘benefits’’; 
(H) in subsection (j), by striking ‘‘(as that term is 
defined in subsection (p))’’; 
(I) in subsection (k)— 
(i) in paragraph (1)(A), by striking ‘‘subsection 
(u)(1)’’ and inserting ‘‘subsection (r)(1)’’; 
(ii) in paragraph (2), by striking ‘‘subsections (g)(3), 
(4), (5), (7), (8), and (9) of this section’’ and inserting 
‘‘paragraphs (3), (4), (5), (7), (8), and (9) of subsection 
(k)’’; and 
(iii) in paragraph (3), by striking ‘‘subsection (g)(6) 
of this section’’ and inserting ‘‘subsection (k)(6)’’; 
(J) in subsection (t), by inserting ‘‘, including point 
of sale devices,’’ after ‘‘other means of access’’; 
(K) in subsection (u), by striking ‘‘(as defined in sub-
section (g))’’; 
(L) by adding at the end the following: 
‘‘(v) EBT CARD.—The term ‘EBT card’ means an electronic 
benefit transfer card issued under section 7(i).’’; and 
(M) by redesignating subsections (a) through (v) as 
subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o), (p), 
(q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and (i), respectively, 
and moving the subsections so as to appear in alphabetical 
order. 
(2) Section 4(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(a)) is amended— 
(A) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; and 
(B) by striking ‘‘Coupons issued’’ and inserting ‘‘benefits 
issued’’. 
(3) Section 5 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014) is amended— 
(A) in subsection (a), by striking ‘‘section 3(i)(4)’’ and 
inserting ‘‘section 3(n)(4)’’; 
(B) in subsection (h)(3)(B), in the second sentence, by 
striking ‘‘section 7(i)’’ and inserting ‘‘section 7(h)’’; and 
(C) in subsection (i)(2)(E), by striking ‘‘, as defined 
in section 3(i) of this Act,’’. 
(4) Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) is amended— 
(A) in subsection (b)(1)— 
(i) in subparagraph (B), by striking ‘‘coupons or 
authorization cards’’ and inserting ‘‘program benefits’’; 
and 
(ii) by striking ‘‘coupons’’ each place it appears 
and inserting ‘‘benefits’’; and 
(B) in subsection (d)(4)(L), by striking ‘‘section 
11(e)(22)’’ and inserting ‘‘section 11(e)(19)’’. 
(5) Section 8 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2017) is amended— 
(A) in subsection (b), by striking ‘‘, whether through 
coupons, access devices, or otherwise’’; and 
(B) in subsections (e)(1) and (f), by striking ‘‘section 
3(i)(5)’’ each place it appears and inserting ‘‘section 3(n)(5)’’. 
(6) Section 9 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2018) is amended—
H. R. 2419—185 
(A) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; 
(B) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘coupon business’’ 
and inserting ‘‘benefit transactions’’; and 
(ii) by striking paragraph (3) and inserting the 
following: 
‘‘(3) AUTHORIZATION PERIODS.—The Secretary shall estab-
lish specific time periods during which authorization to accept 
and redeem benefits shall be valid under the supplemental 
nutrition assistance program.’’; and 
(C) in subsection (g), by striking ‘‘section 3(g)(9)’’ and 
inserting ‘‘section 3(k)(9)’’. 
(7) Section 10 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2019) is amended— 
(A) by striking the section designation and heading 
and all that follows through ‘‘Regulations’’ and inserting 
the following: 
‘‘SEC. 10. REDEMPTION OF PROGRAM BENEFITS. 
‘‘Regulations’’; 
(B) by striking ‘‘section 3(k)(4) of this Act’’ and inserting 
‘‘section 3(p)(4)’’; 
(C) by striking ‘‘section 7(i)’’ and inserting ‘‘section 
7(h)’’; and 
(D) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’. 
(8) Section 11 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020) is amended— 
(A) in subsection (d)— 
(i) by striking ‘‘section 3(n)(1) of this Act’’ each 
place it appears and inserting ‘‘section 3(t)(1)’’; and 
(ii) by striking ‘‘section 3(n)(2) of this Act’’ each 
place it appears and inserting ‘‘section 3(t)(2)’’; 
(B) in subsection (e)— 
(i) in paragraph (8)(E), by striking ‘‘paragraph (16) 
or (20)(B)’’ and inserting ‘‘paragraph (15) or (18)(B)’’; 
(ii) by striking paragraphs (15) and (19); 
(iii) by redesignating paragraphs (16) through (18) 
and (20) through (25) as paragraphs (15) through (17) 
and (18) through (23), respectively; and 
(iv) in paragraph (17) (as so redesignated), by 
striking ‘‘(described in section 3(n)(1) of this Act)’’ and 
inserting ‘‘described in section 3(t)(1)’’; 
(C) in subsection (h), by striking ‘‘coupon or coupons’’ 
and inserting ‘‘benefits’’; 
(D) by striking ‘‘coupon’’ each place it appears and 
inserting ‘‘benefit’’; 
(E) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; and 
(F) in subsection (q), by striking ‘‘section 11(e)(20)(B)’’ 
and inserting ‘‘subsection (e)(18)(B)’’. 
(9) Section 13 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2022) is amended by striking ‘‘coupons’’ each place it 
appears and inserting ‘‘benefits’’. 
(10) Section 15 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2024) is amended—
H. R. 2419—186 
(A) in subsection (a), by striking ‘‘coupons’’ and 
inserting ‘‘benefits’’; 
(B) in subsection (b)(1)— 
(i) by striking ‘‘coupons, authorization cards, or 
access devices’’ each place it appears and inserting 
‘‘benefits’’; 
(ii) by striking ‘‘coupons or authorization cards’’ 
and inserting ‘‘benefits’’; and 
(iii) by striking ‘‘access device’’ each place it 
appears and inserting ‘‘benefit’’; 
(C) in subsection (c), by striking ‘‘coupons’’ each place 
it appears and inserting ‘‘benefits’’; 
(D) in subsection (d), by striking ‘‘Coupons’’ and 
inserting ‘‘Benefits’’; 
(E) by striking subsections (e) and (f); 
(F) by redesignating subsections (g) and (h) as sub-
sections (e) and (f), respectively; and 
(G) in subsection (e) (as so redesignated), by striking 
‘‘coupon, authorization cards or access devices’’ and 
inserting ‘‘benefits’’. 
(11) Section 16(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025(a)) is amended by striking ‘‘coupons’’ each place 
it appears and inserting ‘‘benefits’’. 
(12) Section 17 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2026) is amended— 
(A) in subsection (a)(2), by striking ‘‘coupon’’ and 
inserting ‘‘benefit’’; 
(B) in subsection (b)(1)— 
(i) in subparagraph (B)— 
(I) in clause (iv)— 
(aa) in subclause (I), inserting ‘‘or other-
wise providing benefits in a form not restricted 
to the purchase of food’’ after ‘‘of cash’’; 
(bb) in subclause (III)(aa), by striking ‘‘sec-
tion 3(i)’’ and inserting ‘‘section 3(n)’’; and 
(cc) in subclause (VII), by striking ‘‘section 
7(j)’’ and inserting ‘‘section 7(i)’’; and 
(II) in clause (v)— 
(aa) by striking ‘‘countersigned food cou-
pons or similar’’; and 
(bb) by striking ‘‘food coupons’’ and 
inserting ‘‘EBT cards’’; and 
(ii) in subparagraph (C)(i)(I), by striking ‘‘coupons’’ 
and inserting ‘‘EBT cards’’; 
(C) in subsection (f), by striking ‘‘section 7(g)(2)’’ and 
inserting ‘‘section 7(f)(2)’’; and 
(D) in subsection (j), by striking ‘‘coupon’’ and inserting 
‘‘benefit’’. 
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ‘‘sec-
tion 3(o)(4)’’ and inserting ‘‘section 3(u)(4)’’. 
(14) Section 21 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2030) is repealed. 
(15) Section 22 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2031) is amended— 
(A) by striking ‘‘food coupons’’ each place it appears 
and inserting ‘‘benefits’’;
H. R. 2419—187 
(B) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; and 
(C) in subsection (g)(1)(A), by striking ‘‘coupon’’ and 
inserting ‘‘benefits’’. 
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2035(f)(3)) is amended— 
(A) in subparagraph (A), by striking ‘‘subsections (a) 
through (g)’’ and inserting ‘‘subsections (a) through (f)’’; 
and 
(B) in subparagraph (E), by striking ‘‘(16), (18), (20), 
(24), and (25)’’ and inserting ‘‘(15), (17), (18), (22), and 
(23)’’. 
(c) CONFORMING CROSS-REFERENCES.— 
(1) IN GENERAL.— 
(A) USE OF TERMS.—Each provision of law described 
in subparagraph (B) is amended (as applicable)— 
(i) by striking ‘‘coupons’’ each place it appears and 
inserting ‘‘benefits’’; 
(ii) by striking ‘‘coupon’’ each place it appears and 
inserting ‘‘benefit’’; 
(iii) by striking ‘‘food coupons’’ each place it 
appears and inserting ‘‘benefits’’; 
(iv) in each section heading, by striking ‘‘FOOD 
COUPONS’’ each place it appears and inserting ‘‘BENE-
FITS’’; 
(v) by striking ‘‘food stamp coupon’’ each place 
it appears and inserting ‘‘benefit’’; and 
(vi) by striking ‘‘food stamps’’ each place it appears 
and inserting ‘‘benefits’’. 
(B) PROVISIONS OF LAW.—The provisions of law referred 
to in subparagraph (A) are the following: 
(i) Section 2 of Public Law 103–205 (7 U.S.C. 2012 
note; 107 Stat. 2418). 
(ii) Section 1956(c)(7)(D) of title 18, United States 
Code. 
(iii) Titles II through XIX of the Social Security 
Act (42 U.S.C. 401 et seq.). 
(iv) Section 401(b)(3) of the Social Security Amend-
ments of 1972 (42 U.S.C. 1382e note; Public Law 92– 
603). 
(v) The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.). 
(vi) Section 802(d)(2)(A)(i)(II) of the Cranston- 
Gonzalez National Affordable Housing Act (42 U.S.C. 
8011(d)(2)(A)(i)(II)). 
(2) DEFINITION REFERENCES.— 
(A) Section 2 of Public Law 103–205 (7 U.S.C. 2012 
note; 107 Stat. 2418) is amended by striking ‘‘section 
3(k)(1)’’ and inserting ‘‘section 3(p)(1)’’. 
(B) Section 205 of the Food Stamp Program Improve-
ments Act of 1994 (7 U.S.C. 2012 note; Public Law 103– 
225) is amended by striking ‘‘section 3(k) of such Act (as 
amended by section 201)’’ and inserting ‘‘section 3(p) of 
that Act’’. 
(C) Section 115 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 
862a) is amended—
H. R. 2419—188 
(i) by striking ‘‘section 3(h)’’ each place it appears 
and inserting ‘‘section 3(l)’’; and 
(ii) in subsection (e)(2), by striking ‘‘section 3(m)’’ 
and inserting ‘‘section 3(s)’’. 
(D) Section 402(a) of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
1612(a)) is amended— 
(i) in paragraph (2)(F)(ii), by striking ‘‘section 3(r)’’ 
and inserting ‘‘section 3(j)’’; and 
(ii) in paragraph (3)(B), by striking ‘‘section 3(h)’’ 
and inserting ‘‘section 3(l)’’. 
(E) Section 3803(c)(2)(C)(vii) of title 31, United States 
Code, is amended by striking ‘‘section 3(h)’’ and inserting 
‘‘section 3(l)’’. 
(F) Section 303(d)(4) of the Social Security Act (42 
U.S.C. 503(d)(4)) is amended by striking ‘‘section 3(n)(1)’’ 
and inserting ‘‘section 3(t)(1)’’. 
(G) Section 404 of the Social Security Act (42 U.S.C. 
604) is amended by striking ‘‘section 3(h)’’ each place it 
appears and inserting ‘‘section 3(l)’’. 
(H) Section 531 of the Social Security Act (42 U.S.C. 
654) is amended by striking ‘‘section 3(h)’’ each place it 
appears and inserting ‘‘section 3(l)’’. 
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez 
National 
Affordable 
Housing 
Act 
(42 
U.S.C. 
8011(d)(2)(A)(i)(II)) is amended by striking ‘‘(as defined in 
section 3(e) of such Act)’’. 
(d) REFERENCES.—Any reference in any Federal, State, tribal, 
or local law (including regulations) to a ‘‘coupon’’, ‘‘authorization 
card’’, or other access device provided under the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be 
a reference to a ‘‘benefit’’ provided under that Act. 
SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN. 
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking the section enumerator and heading 
and subsection (a) and inserting the following: 
‘‘SEC. 11. ADMINISTRATION. 
‘‘(a) STATE RESPONSIBILITY.— 
‘‘(1) IN GENERAL.—The State agency of each participating 
State shall have responsibility for certifying applicant house-
holds and issuing EBT cards. 
‘‘(2) LOCAL
ADMINISTRATION.—The responsibility of the 
agency of the State government shall not be affected by whether 
the program is operated on a State-administered or county- 
administered basis, as provided under section 3(t)(1). 
‘‘(3) RECORDS.— 
‘‘(A) IN GENERAL.—Each State agency shall keep such 
records as may be necessary to determine whether the 
program is being conducted in compliance with this Act 
(including regulations issued under this Act). 
‘‘(B) INSPECTION
AND
AUDIT.—Records described in 
subparagraph (A) shall— 
‘‘(i) be available for inspection and audit at any 
reasonable time; 
‘‘(ii) subject to subsection (e)(8), be available for 
review in any action filed by a household to enforce
H. R. 2419—189 
any provision of this Act (including regulations issued 
under this Act); and 
‘‘(iii) be preserved for such period of not less than 
3 years as may be specified in regulations. 
‘‘(4) REVIEW
OF
MAJOR
CHANGES
IN
PROGRAM
DESIGN.— 
‘‘(A) IN GENERAL.—The Secretary shall develop stand-
ards for identifying major changes in the operations of 
a State agency, including— 
‘‘(i) large or substantially-increased numbers of 
low-income households that do not live in reasonable 
proximity to an office performing the major functions 
described in subsection (e); 
‘‘(ii) substantial increases in reliance on automated 
systems for the performance of responsibilities pre-
viously performed by personnel described in subsection 
(e)(6)(B); 
‘‘(iii) changes that potentially increase the dif-
ficulty of reporting information under subsection (e) 
or section 6(c); and 
‘‘(iv) changes that may disproportionately increase 
the burdens on any of the types of households described 
in subsection (e)(2)(A). 
‘‘(B) NOTIFICATION.—If a State agency implements a 
major change in operations, the State agency shall— 
‘‘(i) notify the Secretary; and 
‘‘(ii) collect such information as the Secretary shall 
require to identify and correct any adverse effects on 
program integrity or access, including access by any 
of the types of households described in subsection 
(e)(2)(A).’’. 
SEC. 4117. CIVIL RIGHTS COMPLIANCE. 
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020) is amended by striking subsection (c) and inserting the fol-
lowing: 
‘‘(c) CIVIL RIGHTS COMPLIANCE.— 
‘‘(1) IN GENERAL.—In the certification of applicant house-
holds for the supplemental nutrition assistance program, there 
shall be no discrimination by reason of race, sex, religious 
creed, national origin, or political affiliation. 
‘‘(2) RELATION TO OTHER LAWS.—The administration of the 
program by a State agency shall be consistent with the rights 
of households under the following laws (including implementing 
regulations): 
‘‘(A) The Age Discrimination Act of 1975 (42 U.S.C. 
6101 et seq.). 
‘‘(B) Section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794). 
‘‘(C) The Americans with Disabilities Act of 1990 (42 
U.S.C. 12101 et seq.). 
‘‘(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d et seq.).’’. 
SEC. 4118. CODIFICATION OF ACCESS RULES. 
Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(1)) is amended— 
(1) by striking ‘‘shall (A) at’’ and inserting ‘‘shall— 
‘‘(A) at’’; and
H. R. 2419—190 
(2) by striking ‘‘and (B) use’’ and inserting ‘‘and 
‘‘(B) comply with regulations of the Secretary requiring 
the use of’’. 
SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE. 
Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(e)(2)(C)) is amended— 
(1) by striking ‘‘(C) Nothing in this Act’’ and inserting 
the following: 
‘‘(C) ELECTRONIC AND AUTOMATED SYSTEMS.— 
‘‘(i) IN GENERAL.—Nothing in this Act’’; and 
(2) by adding at the end the following: 
‘‘(ii) STATE OPTION FOR TELEPHONIC SIGNATURE.— 
A State agency may establish a system by which an 
applicant household may sign an application through 
a recorded verbal assent over the telephone. 
‘‘(iii) REQUIREMENTS.—A system established under 
clause (ii) shall— 
‘‘(I) record for future reference the verbal 
assent of the household member and the informa-
tion to which assent was given; 
‘‘(II) include effective safeguards against 
impersonation, identity theft, and invasions of pri-
vacy; 
‘‘(III) not deny or interfere with the right of 
the household to apply in writing; 
‘‘(IV) promptly provide to the household 
member a written copy of the completed applica-
tion, with instructions for a simple procedure for 
correcting any errors or omissions; 
‘‘(V) comply with paragraph (1)(B); 
‘‘(VI) satisfy all requirements for a signature 
on an application under this Act and other laws 
applicable to the supplemental nutrition assistance 
program, with the date on which the household 
member provides verbal assent considered as the 
date of application for all purposes; and 
‘‘(VII) comply with such other standards as 
the Secretary may establish.’’. 
SEC. 4120. PRIVACY PROTECTIONS. 
Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(8)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by striking ‘‘limit’’ and inserting ‘‘prohibit’’; and 
(B) by striking ‘‘to persons’’ and all that follows through 
‘‘State programs’’; 
(2) by redesignating subparagraphs (A) through (E) as sub-
paragraphs (B) through (F), respectively; 
(3) by inserting before subparagraph (B) (as so redesig-
nated) the following: 
‘‘(A) the safeguards shall permit— 
‘‘(i) the disclosure of such information to persons 
directly connected with the administration or enforce-
ment of the provisions of this Act, regulations issued 
pursuant to this Act, Federal assistance programs, or 
federally-assisted State programs; and
H. R. 2419—191 
‘‘(ii) the subsequent use of the information by per-
sons described in clause (i) only for such administration 
or enforcement;’’; and 
(4) in subparagraph (F) (as so redesignated) by inserting 
‘‘or subsection (u)’’ before the semicolon at the end. 
SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY. 
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025) is amended by striking subsection (g) and inserting the fol-
lowing: 
‘‘(g) COST SHARING FOR COMPUTERIZATION.— 
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) 
and (3), the Secretary is authorized to pay to each State agency 
the amount provided under subsection (a)(6) for the costs 
incurred by the State agency in the planning, design, develop-
ment, or installation of 1 or more automatic data processing 
and information retrieval systems that the Secretary deter-
mines— 
‘‘(A) would assist in meeting the requirements of this 
Act; 
‘‘(B) meet such conditions as the Secretary prescribes; 
‘‘(C) are likely to provide more efficient and effective 
administration of the supplemental nutrition assistance 
program; 
‘‘(D) would be compatible with other systems used in 
the administration of State programs, including the pro-
gram funded under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.); 
‘‘(E) would be tested adequately before and after 
implementation, including through pilot projects in limited 
areas for major systems changes as determined under rules 
promulgated by the Secretary, data from which shall be 
thoroughly evaluated before the Secretary approves the 
system to be implemented more broadly; and 
‘‘(F) would be operated in accordance with an adequate 
plan for— 
‘‘(i) continuous updating to reflect changed policy 
and circumstances; and 
‘‘(ii) testing the effect of the system on access for 
eligible households and on payment accuracy. 
‘‘(2) LIMITATION.—The Secretary shall not make payments 
to a State agency under paragraph (1) to the extent that the 
State agency— 
‘‘(A) is reimbursed for the costs under any other Fed-
eral program; or 
‘‘(B) uses the systems for purposes not connected with 
the supplemental nutrition assistance program.’’. 
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS. 
Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by striking 
‘‘to remain available until expended’’ and inserting ‘‘to remain avail-
able for 15 months’’.
H. R. 2419—192 
PART IV—PROGRAM INTEGRITY 
SEC. 4131. ELIGIBILITY DISQUALIFICATION. 
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015) is amended by adding at the end the following: 
‘‘(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING 
FOOD
AND COLLECTING DEPOSITS.—Subject to any requirements 
established by the Secretary, any person who has been found by 
a State or Federal court or administrative agency in a hearing 
under subsection (b) to have intentionally obtained cash by pur-
chasing products with supplemental nutrition assistance program 
benefits that have containers that require return deposits, dis-
carding the product, and returning the container for the deposit 
amount shall be ineligible for benefits under this Act for such 
period of time as the Secretary shall prescribe by regulation. 
‘‘(q) DISQUALIFICATION FOR SALE OF FOOD PURCHASED WITH 
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS.—Sub-
ject to any requirements established by the Secretary, any person 
who has been found by a State or Federal court or administrative 
agency in a hearing under subsection (b) to have intentionally 
sold any food that was purchased using supplemental nutrition 
assistance program benefits shall be ineligible for benefits under 
this Act for such period of time as the Secretary shall prescribe 
by regulation.’’. 
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
STORES AND WHOLESALE FOOD CONCERNS. 
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2021) is amended— 
(1) by striking the section designation and heading and 
all that follows through the end of subsection (a) and inserting 
the following: 
‘‘SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
STORES AND WHOLESALE FOOD CONCERNS. 
‘‘(a) DISQUALIFICATION.— 
‘‘(1) IN GENERAL.—An approved retail food store or whole-
sale food concern that violates a provision of this Act or a 
regulation under this Act may be— 
‘‘(A) disqualified for a specified period of time from 
further participation in the supplemental nutrition assist-
ance program; 
‘‘(B) assessed a civil penalty of up to $100,000 for 
each violation; or 
‘‘(C) both. 
‘‘(2) REGULATIONS.—Regulations promulgated under this 
Act shall provide criteria for the finding of a violation of, 
the suspension or disqualification of and the assessment of 
a civil penalty against a retail food store or wholesale food 
concern on the basis of evidence that may include facts estab-
lished through on-site investigations, inconsistent redemption 
data, or evidence obtained through a transaction report under 
an electronic benefit transfer system.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘(b) Disqualification’’ and inserting the 
following:
H. R. 2419—193 
‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to subsection (c), 
a disqualification’’; 
(B) in paragraph (1), by striking ‘‘of no less than six 
months nor more than five years’’ and inserting ‘‘not to 
exceed 5 years’’; 
(C) in paragraph (2), by striking ‘‘of no less than twelve 
months nor more than ten years’’ and inserting ‘‘not to 
exceed 10 years’’; 
(D) in paragraph (3)(B)— 
(i) by inserting ‘‘or a finding of the unauthorized 
redemption, use, transfer, acquisition, alteration, or 
possession of EBT cards’’ after ‘‘concern’’ the first place 
it appears; and 
(ii) by striking ‘‘civil money penalties’’ and 
inserting ‘‘civil penalties’’; and 
(E) by striking ‘‘civil money penalty’’ each place it 
appears and inserting ‘‘civil penalty’’; 
(3) in subsection (c)— 
(A) by striking ‘‘(c) The action’’ and inserting the fol-
lowing: 
‘‘(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PEN-
ALTY DETERMINATIONS.— 
‘‘(1) CIVIL PENALTY.—In addition to a disqualification under 
this section, the Secretary may assess a civil penalty in an 
amount not to exceed $100,000 for each violation. 
‘‘(2) REVIEW.—The action’’; and 
(B) in paragraph (2) (as designated by subparagraph 
(A)), by striking ‘‘civil money penalty’’ and inserting ‘‘civil 
penalty’’; 
(4) in subsection (d)— 
(A) by striking ‘‘(d)’’ and all that follows through ‘‘. 
The Secretary shall’’ and inserting the following: 
‘‘(d) CONDITIONS OF AUTHORIZATION.— 
‘‘(1) IN GENERAL.—As a condition of authorization to accept 
and redeem benefits, the Secretary may require a retail food 
store or wholesale food concern that, pursuant to subsection 
(a), has been disqualified for more than 180 days, or has been 
subjected to a civil penalty in lieu of a disqualification period 
of more than 180 days, to furnish a collateral bond or irrev-
ocable letter of credit for a period of not more than 5 years 
to cover the value of benefits that the store or concern may 
in the future accept and redeem in violation of this Act. 
‘‘(2) COLLATERAL.—The Secretary also may require a retail 
food store or wholesale food concern that has been sanctioned 
for a violation and incurs a subsequent sanction regardless 
of the length of the disqualification period to submit a collateral 
bond or irrevocable letter of credit. 
‘‘(3) BOND REQUIREMENTS.—The Secretary shall’’; 
(B) by striking ‘‘If the Secretary finds’’ and inserting 
the following 
‘‘(4) FORFEITURE.—If the Secretary finds’’; and 
(C) by striking ‘‘Such store or concern’’ and inserting 
the following: 
‘‘(5) HEARING.—A store or concern described in paragraph 
(4)’’; 
(5) in subsection (e), by striking ‘‘civil money penalty’’ each 
place it appears and inserting ‘‘civil penalty’’; and
H. R. 2419—194 
(6) by adding at the end the following: 
‘‘(h) FLAGRANT VIOLATIONS.— 
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Inspector General of the Department of Agriculture, shall estab-
lish procedures under which the processing of program benefit 
redemptions for a retail food store or wholesale food concern 
may be immediately suspended pending administrative action 
to disqualify the retail food store or wholesale food concern. 
‘‘(2) REQUIREMENTS.—Under the procedures described in 
paragraph (1), if the Secretary, in consultation with the 
Inspector General, determines that a retail food store or whole-
sale food concern is engaged in flagrant violations of this Act 
(including regulations promulgated under this Act), unsettled 
program benefits that have been redeemed by the retail food 
store or wholesale food concern— 
‘‘(A) may be suspended; and 
‘‘(B)(i) if the program disqualification is upheld, may 
be subject to forfeiture pursuant to section 15(g); or 
‘‘(ii) if the program disqualification is not upheld, shall 
be released to the retail food store or wholesale food con-
cern. 
‘‘(3) NO LIABILITY FOR INTEREST.—The Secretary shall not 
be liable for the value of any interest on funds suspended 
under this subsection.’’. 
SEC. 4133. MAJOR SYSTEMS FAILURES. 
Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2022(b)) is amended by adding at the end the following: 
‘‘(5) OVERISSUANCES CAUSED BY SYSTEMIC STATE ERRORS.— 
‘‘(A) IN GENERAL.—If the Secretary determines that 
a State agency overissued benefits to a substantial number 
of households in a fiscal year as a result of a major systemic 
error by the State agency, as defined by the Secretary, 
the Secretary may prohibit the State agency from collecting 
these overissuances from some or all households. 
‘‘(B) PROCEDURES.— 
‘‘(i) INFORMATION
REPORTING
BY
STATES.—Every 
State agency shall provide to the Secretary all informa-
tion requested by the Secretary concerning the issuance 
of benefits to households by the State agency in the 
applicable fiscal year. 
‘‘(ii) FINAL DETERMINATION.—After reviewing rel-
evant information provided by a State agency, the Sec-
retary shall make a final determination— 
‘‘(I) whether the State agency overissued bene-
fits to a substantial number of households as a 
result of a systemic error in the applicable fiscal 
year; and 
‘‘(II) as to the amount of the overissuance in 
the applicable fiscal year for which the State 
agency is liable. 
‘‘(iii) ESTABLISHING A CLAIM.—Upon determining 
under clause (ii) that a State agency has overissued 
benefits to households due to a major systemic error 
determined under subparagraph (A), the Secretary 
shall establish a claim against the State agency equal
H. R. 2419—195 
to the value of the overissuance caused by the systemic 
error. 
‘‘(iv) ADMINISTRATIVE
AND
JUDICIAL
REVIEW.— 
Administrative and judicial review, as provided in sec-
tion 14, shall apply to the final determinations by 
the Secretary under clause (ii). 
‘‘(v) REMISSION TO THE SECRETARY.— 
‘‘(I) DETERMINATION
NOT
APPEALED.—If the 
determination of the Secretary under clause (ii) 
is not appealed, the State agency shall, as soon 
as practicable, remit to the Secretary the dollar 
amount specified in the claim under clause (iii). 
‘‘(II) DETERMINATION APPEALED.—If the deter-
mination of the Secretary under clause (ii) is 
appealed, upon completion of administrative and 
judicial review under clause (iv), and a finding 
of liability on the part of the State, the appealing 
State agency shall, as soon as practicable, remit 
to the Secretary a dollar amount subject to the 
finding made in the administrative and judicial 
review. 
‘‘(vi) ALTERNATIVE METHOD OF COLLECTION.— 
‘‘(I) IN GENERAL.—If a State agency fails to 
make a payment under clause (v) within a reason-
able period of time, as determined by the Sec-
retary, the Secretary may reduce any amount due 
to the State agency under any other provision 
of this Act by the amount due. 
‘‘(II) ACCRUAL
OF
INTEREST.—During the 
period of time determined by the Secretary to be 
reasonable under subclause (I), interest in the 
amount owed shall not accrue. 
‘‘(vii) LIMITATION.—Any liability amount estab-
lished under section 16(c)(1)(C) shall be reduced by 
the amount of the claim established under this 
subparagraph.’’. 
PART V—MISCELLANEOUS 
SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION 
PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSIST-
ANCE PROGRAM. 
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2026) is amended by adding at the end the following: 
‘‘(k) PILOT PROJECTS
TO EVALUATE HEALTH
AND NUTRITION 
PROMOTION
IN
THE SUPPLEMENTAL NUTRITION ASSISTANCE PRO-
GRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall carry out, under 
such terms and conditions as the Secretary considers to be 
appropriate, pilot projects to develop and test methods— 
‘‘(A) of using the supplemental nutrition assistance 
program to improve the dietary and health status of house-
holds eligible for or participating in the supplemental nutri-
tion assistance program; and 
‘‘(B) to reduce overweight, obesity (including childhood 
obesity), and associated co-morbidities in the United States. 
‘‘(2) GRANTS.—
H. R. 2419—196 
‘‘(A) IN GENERAL.—In carrying out this subsection, the 
Secretary may enter into competitively awarded contracts 
or cooperative agreements with, or provide grants to, public 
or private organizations or agencies (as defined by the 
Secretary), for use in accordance with projects that meet 
the strategy goals of this subsection. 
‘‘(B) APPLICATION.—To be eligible to receive a contract, 
cooperative agreement, or grant under this paragraph, an 
organization shall submit to the Secretary an application 
at such time, in such manner, and containing such informa-
tion as the Secretary may require. 
‘‘(C) SELECTION CRITERIA.—Pilot projects shall be evalu-
ated against publicly disseminated criteria that may 
include— 
‘‘(i) identification of a low-income target audience 
that corresponds to individuals living in households 
with incomes at or below 185 percent of the poverty 
level; 
‘‘(ii) incorporation of a scientifically based strategy 
that is designed to improve diet quality through more 
healthful food purchases, preparation, or consumption; 
‘‘(iii) a commitment to a pilot project that allows 
for a rigorous outcome evaluation, including data 
collection; 
‘‘(iv) strategies to improve the nutritional value 
of food served during school hours and during after- 
school hours; 
‘‘(v) innovative ways to provide significant improve-
ment to the health and wellness of children; 
‘‘(vi) other criteria, as determined by the Secretary. 
‘‘(D) USE OF FUNDS.—Funds provided under this para-
graph shall not be used for any project that limits the 
use of benefits under this Act. 
‘‘(3) PROJECTS.—Pilot projects carried out under paragraph 
(1) may include projects to determine whether healthier food 
purchases by and healthier diets among households partici-
pating in the supplemental nutrition assistance program result 
from projects that— 
‘‘(A) increase the supplemental nutrition assistance 
purchasing power of the participating households by pro-
viding increased supplemental nutrition assistance pro-
gram benefit allotments to the participating households; 
‘‘(B) increase access to farmers markets by partici-
pating households through the electronic redemption of 
supplemental nutrition assistance program benefits at 
farmers’ markets; 
‘‘(C) provide incentives to authorized supplemental 
nutrition assistance program retailers to increase the avail-
ability of healthy foods to participating households; 
‘‘(D) subject authorized supplemental nutrition assist-
ance program retailers to stricter retailer requirements 
with respect to carrying and stocking healthful foods; 
‘‘(E) provide incentives at the point of purchase to 
encourage households participating in the supplemental 
nutrition assistance program to purchase fruits, vegetables, 
or other healthful foods; or
H. R. 2419—197 
‘‘(F) provide to participating households integrated 
communication and education programs, including the 
provision of funding for a portion of a school-based nutrition 
coordinator to implement a broad nutrition action plan 
and parent nutrition education programs in elementary 
schools, separately or in combination with pilot projects 
carried out under subparagraphs (A) through (E). 
‘‘(4) EVALUATION AND REPORTING.— 
‘‘(A) EVALUATION.— 
‘‘(i) INDEPENDENT EVALUATION.— 
‘‘(I) IN GENERAL.—The Secretary shall provide 
for an independent evaluation of projects selected 
under this subsection that measures the impact 
of the pilot program on health and nutrition as 
described in paragraph (1). 
‘‘(II) REQUIREMENT.—The independent evalua-
tion under subclause (I) shall use rigorous meth-
odologies, particularly random assignment or other 
methods that are capable of producing scientif-
ically valid information regarding which activities 
are effective. 
‘‘(ii) COSTS.—The Secretary may use funds pro-
vided to carry out this section to pay costs associated 
with monitoring and evaluating each pilot project. 
‘‘(B) REPORTING.—Not later than 90 days after the 
last day of fiscal year 2009 and each fiscal year thereafter 
until the completion of the last evaluation under subpara-
graph (A), the Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that includes a description of— 
‘‘(i) the status of each pilot project; 
‘‘(ii) the results of the evaluation completed during 
the previous fiscal year; and 
‘‘(iii) to the maximum extent practicable— 
‘‘(I) the impact of the pilot project on appro-
priate health, nutrition, and associated behavioral 
outcomes among households participating in the 
pilot project; 
‘‘(II) baseline information relevant to the 
stated goals and desired outcomes of the pilot 
project; and 
‘‘(III) equivalent information about similar or 
identical measures among control or comparison 
groups that did not participate in the pilot project. 
‘‘(C) PUBLIC
DISSEMINATION.—In addition to the 
reporting requirements under subparagraph (B), evaluation 
results shall be shared broadly to inform policy makers, 
service providers, other partners, and the public in order 
to promote wide use of successful strategies. 
‘‘(5) FUNDING.— 
‘‘(A) AUTHORIZATION
OF
APPROPRIATIONS.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this section for each of fiscal years 2008 
through 2012.
H. R. 2419—198 
‘‘(B) MANDATORY FUNDING.—Out of any funds made 
available under section 18, on October 1, 2008, the Sec-
retary shall make available $20,000,000 to carry out a 
project described in paragraph (3)(E), to remain available 
until expended.’’. 
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL 
NUTRITION ASSISTANCE FOR PUERTO RICO. 
(a) IN GENERAL.—The Secretary shall carry out a study of 
the feasibility and effects of including the Commonwealth of Puerto 
Rico in the definition of the term ‘‘State’’ under section 3 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing 
block grants under section 19 of that Act (7 U.S.C. 2028). 
(b) INCLUSIONS.—The study shall include— 
(1) an assessment of the administrative, financial manage-
ment, and other changes that would be necessary for the 
Commonwealth to establish a comparable supplemental nutri-
tion assistance program, including compliance with appropriate 
program rules under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.), such as— 
(A) benefit levels under section 3(u) of that Act (7 
U.S.C. 2012(u)); 
(B) income eligibility standards under sections 5(c) and 
6 of that Act (7 U.S.C. 2014(c), 2015); and 
(C) deduction levels under section 5(e) of that Act 
(7 U.S.C. 2014(e)); 
(2) an estimate of the impact on Federal and Common-
wealth benefit and administrative costs; 
(3) an assessment of the impact of the program on low- 
income Puerto Ricans, as compared to the program under sec-
tion 19 of that Act (7 U.S.C. 2028); and 
(4) such other matters as the Secretary considers to be 
appropriate. 
(c) REPORT.—Not later than 2 years after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that 
describes the results of the study conducted under this section. 
(d) FUNDING.— 
(1) IN GENERAL.—On October 1, 2008, out of any funds 
in the Treasury not otherwise appropriated, the Secretary of 
the Treasury shall transfer to the Secretary to carry out this 
section $1,000,000, to remain available until expended. 
(2) RECEIPT AND ACCEPTANCE.—The Secretary shall be enti-
tled to receive, shall accept, and shall use to carry out this 
section the funds transferred under paragraph (1), without 
further appropriation. 
Subtitle B—Food Distribution Programs 
PART I—EMERGENCY FOOD ASSISTANCE 
PROGRAM 
SEC. 4201. EMERGENCY FOOD ASSISTANCE. 
(a) PURCHASE OF COMMODITIES.—Section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by –