H. R. 2491—860
continued in foster care on a permanent or long-term basis)
and, in the case of a child described in subparagraph (A)(ii),
whether the out-of-State placement continues to be appro-
priate and in the best interests of the child, and, in the
case of a child who has attained age 16, the services needed
to assist the child to make the transition from foster care
to independent living; and procedural safeguards shall also
be applied with respect to parental rights pertaining to
the removal of the child from the home of his parents,
to a change in the child’s placement, and to any determina-
tion affecting visitation privileges of parents; and
‘‘(D) a child’s health and education record (as described
in paragraph (3)(C)) is reviewed and updated, and supplied
to the foster parent or foster care provider with whom
the child is placed, at the time of each placement of the
child in foster care.
‘‘(5) CHILD-CARE INSTITUTION.—The term ‘child-care institu-
tion’ means a private child-care institution, or a public child-
care institution which accommodates no more than 25 children,
which is licensed by the State in which it is situated or has
been approved, by the agency of such State responsible for
licensing or approval of institutions of this type, as meeting
the standards established for such licensing, but the term shall
not include detention facilities, forestry camps, training schools,
or any other facility operated primarily for the detention of
children who are determined to be delinquent.
‘‘(6) FOSTER CARE MAINTENANCE PAYMENTS.—
‘‘(A) IN GENERAL.—The term ‘foster care maintenance
payments’ means payments to cover the cost of (and the
cost of providing) food, clothing, shelter, daily supervision,
school supplies, a child’s personal incidentals, liability
insurance with respect to a child, and reasonable travel
to the child’s home for visitation. In the case of institutional
care, such term shall include the reasonable costs of
administration and operation of such institution as are
necessarily required to provide the items described in the
preceding sentence.
‘‘(B) SPECIAL RULE.—In cases where—
‘‘(i) a child placed in a foster family home or child-
care institution is the parent of a son or daughter
who is in the same home or institution; and
‘‘(ii) payments described in subparagraph (A) are
being made under this subpart with respect to such
child,
the foster care maintenance payments made with respect
to such child as otherwise determined under subparagraph
(A) shall also include such amounts as may be necessary
to cover the cost of the items described in that subpara-
graph with respect to such son or daughter.
‘‘(7) FOSTER FAMILY HOME.—The term ‘foster family home’
means a foster family home for children which is licensed
by the State in which it is situated or has been approved,
by the agency of such State having responsibility for licensing
homes of this type, as meeting the standards established for
such licensing.
‘‘(8) STATE.—The term ‘State’ means the 50 States and
the District of Columbia.
H. R. 2491—861
‘‘(9) VOLUNTARY PLACEMENT.—The term ‘voluntary place-
ment’ means an out-of-home placement of a minor, by or with
participation of the State, after the parents or guardians of
the minor have requested the assistance of the State and signed
a voluntary placement agreement.
‘‘(10) VOLUNTARY PLACEMENT AGREEMENT.—The term ‘vol-
untary placement agreement’ means a written agreement, bind-
ing on the parties to the agreement, between the State, any
other agency acting on its behalf, and the parents or guardians
of a minor child which specifies, at a minimum, the legal
status of the child and the rights and obligations of the parents
or guardians, the child, and the agency while the child is
in placement.’’.
SEC. 12702. CONFORMING AMENDMENTS.
(a) REPEAL OF PART E OF TITLE IV OF THE SOCIAL SECURITY
ACT.—Part E of title IV of the Social Security Act (42 U.S.C.
671–679) is hereby repealed.
(b) REPEAL OF SECTION 13712 OF THE OMNIBUS BUDGET REC-
ONCILIATION ACT OF 1993.—Section 13712 of the Omnibus Budget
Reconciliation Act of 1993 (42 U.S.C. 670 note) is hereby repealed.
(c) REPEAL OF SECTION 435.—Section 435 of the Social Security
Act, as amended by section 12701, is repealed on April 1, 1996.
SEC. 12703. EFFECTIVE DATE; TRANSITION RULE.
(a) IN GENERAL.—Except as otherwise provided in this subtitle,
this subtitle and the amendments made by this subtitle shall take
effect as if enacted on October 1, 1995.
(b) TRANSITION RULE.—
(1) STATE OPTION TO CONTINUE PROGRAMS.—
(A) 9-MONTH EXTENSION.—A State may continue the
State programs under subpart 2 of part B and part E
of title IV of the Social Security Act, as in effect on Septem-
ber 30, 1995 (for purposes of this paragraph, the ‘‘State
programs’’) until June 30, 1996.
(B) NO
INDIVIDUAL
OR
FAMILY
ENTITLEMENT
UNDER
CONTINUED STATE PROGRAMS.—Notwithstanding any other
provision of law or any rule of law, no individual or family
is entitled to aid under the State programs of any State
on or after the date of the enactment of this Act.
(C) LIMITATIONS ON FEDERAL OBLIGATIONS.—If a State
elects to continue the State programs pursuant to subpara-
graph (A), the total obligations of the Federal Government
to the State under subpart 2 of part B and part E of
title IV of the Social Security Act (as such subpart and
part are in effect on September 30, 1995) after the date
of the enactment of this Act shall not exceed an amount
equal to—
(i) the grant to the State under section 431(a)
(as in effect pursuant to the amendment made by
section 12701 of this Act)); minus
(ii) any obligations of the Federal Government to
the State under such subpart and part (as in effect
on September 30, 1995) with respect to expenditures
by the State during the period that begins on October
1, 1995, and ends on the day before the date of the
enactment of this Act.
H. R. 2491—862
(D) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996
DEEMED
ACCEPTANCE
OF
GRANT
LIMITATIONS
AND
FOR-
MULA.—The submission of a plan by a State under section
430(a) of the Social Security Act (as in effect pursuant
to the amendment made by section 12701 of this Act)
for fiscal year 1996 is deemed to constitute the State’s
acceptance of the grant reduction under subparagraph (C)
of this paragraph (including the formula for computing
the amount of the reduction).
(2) CLAIMS, ACTIONS, AND PROCEEDINGS.—The amendments
made by this subtitle shall not apply with respect to—
(A) powers, duties, functions, rights, claims, penalties,
or obligations applicable to aid, assistance, or services pro-
vided before the effective date of this subtitle under the
provisions amended; and
(B) administrative actions and proceedings commenced
before such date, or authorized before such date to be
commenced, under such provisions.
(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMI-
NATED OR SUBSTANTIALLY MODIFIED BY THIS SUBTITLE.—In clos-
ing out accounts, Federal and State officials may use scientif-
ically acceptable statistical sampling techniques. Claims made
under programs which are repealed or substantially amended
in this subtitle and which involve State expenditures in cases
where assistance or services were provided during a prior fiscal
year, shall be treated as expenditures during fiscal year 1995
for purposes of reimbursement even if payment was made by
a State on or after October 1, 1995. States shall complete
the filing of all claims no later than September 30, 1997.
Federal department heads shall—
(A) use the single audit procedure to review and resolve
any claims in connection with the close out of programs;
and
(B) reimburse States for any payments made for assist-
ance or services provided during a prior fiscal year from
funds for fiscal year 1995, rather than the funds authorized
by this subtitle.
Subtitle H—Child Care
SEC. 12801. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Child
Care and Development Block Grant Amendments of 1995’’.
(b) REFERENCES.—Except as otherwise expressly provided,
whenever in this subtitle an amendment or repeal 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 a section
or other provision of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.).
SEC. 12802. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT
AUTHORITY.
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858) is amended
to read as follows:
H. R. 2491—863
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out this sub-
chapter $1,000,000,000 for each of the fiscal years 1996 through
2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of the Social
Security Act (as amended by section 12101) is amended by adding
at the end thereof the following new section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.
‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL ENTITLEMENT.—Subject to the amount appro-
priated under paragraph (3), each State shall, for the purpose
of providing child care assistance, be entitled to payments
under a grant under this subsection for a fiscal year in an
amount equal to—
‘‘(A) the sum of the total amounts of Federal payments
for fiscal year 1994 to the State under section—
‘‘(i) 402(g)(3)(A) of this Act (as such section was
in effect before October 1, 1995) for amounts expended
for child care pursuant to paragraph (1) of such section;
‘‘(ii) 403(l)(1)(A) of this Act (as so in effect) for
amounts expended for child care pursuant to section
402(g)(1)(A) of this Act, in the case of a State with
respect to which section 1108 of this Act applies; and
‘‘(iii) 403(n) of this Act (as so in effect) for child
care services pursuant to section 402(i) of this Act;
or
‘‘(B) the average of the sum of the total amount of
Federal payments for each of the fiscal years 1992 through
1994 to the State under the sections referred to in subpara-
graph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use any amounts
appropriated for a fiscal year under paragraph (3), and
remaining after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph (C), the
amount of a grant awarded to a State for a fiscal year
under this paragraph shall be based on the formula used
for determining the amount of Federal payments to the
State for fiscal year 1994 under section 403(n) (as such
section was in effect before October 1, 1995) for child care
services pursuant to section 402(i) as such amount relates
to the total amount of such Federal payments to all States
for such fiscal year.
‘‘(C) MATCHING
REQUIREMENT.—The Secretary shall
pay to each eligible State in a fiscal year an amount,
under a grant under subparagraph (A), equal to the Federal
medical assistance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so much of the
expenditures by the State for child care in such year as
exceed the State set-aside for such State under subpara-
graph (A) for such year and the amount of State expendi-
tures in fiscal year 1995 that equal the non-Federal share
for the programs described in subparagraphs (A), (B) and
(C) of paragraph (1).
H. R. 2491—864
‘‘(3) APPROPRIATION.—There is authorized to be appro-
priated, and there is appropriated, to carry out this section—
‘‘(A) $1,170,000,000 for fiscal year 1996;
‘‘(B) $1,240,000,000 for fiscal year 1997;
‘‘(C) $1,320,000,000 for fiscal year 1998;
‘‘(D) $1,400,000,000 for fiscal year 1999;
‘‘(E) $1,500,000,000 for fiscal year 2000;
‘‘(F) $1,625,000,000 for fiscal year 2001; and
‘‘(G) $1,745,000,000 for fiscal year 2002.
‘‘(4) REDISTRIBUTION.—With respect to any fiscal year, if
the Secretary determines that amounts under any grant
awarded to a State under this subsection for such fiscal year
will not be used by such State for carrying out the purpose
for which the grant is made, the Secretary shall make such
amounts available for carrying out such purpose to 1 or more
other States which apply for such funds to the extent the
Secretary determines that such other States will be able to
use such additional amounts for carrying out such purpose.
Such available amounts shall be redistributed to a State pursu-
ant to section 402(i) (as such section was in effect before October
1, 1995) by substituting ‘the number of children residing in
all States applying for such funds’ for ‘the number of children
residing in the United States in the second preceding fiscal
year’. Any amount made available to a State from an appropria-
tion for a fiscal year in accordance with the preceding sentence
shall, for purposes of this part, be regarded as part of such
State’s payment (as determined under this subsection) for such
year.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Amounts received by a State under this
section shall only be used to provide child care assistance.
‘‘(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure
that not less than 70 percent of the total amount of funds
received by the State in a fiscal year under this section are
used to provide child care assistance to families who are receiv-
ing assistance under a State program under this part, families
who are attempting through work activities to transition off
of such assistance program, and families who are at risk of
becoming dependent on such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK
GRANT ACT.—Notwithstanding any other provision of law, amounts
provided to a State under this section shall be transferred to the
lead agency under the Child Care and Development Block Grant
Act, integrated by the State into the programs established by the
State under such Act, and be subject to requirements and limita-
tions of such Act.
‘‘(d) TRANSITION RULE.—
‘‘(1) IN GENERAL.—Amounts obligated to a State under this
section for fiscal year 1996 shall not exceed—
‘‘(A) the amount for which a State is eligible under
this section for such fiscal year; less
‘‘(B) the amounts obligated to the State for such fiscal
year under the provisions of law referred to in subsection
(a)(1)(A) (as such provisions were in effect on the day
before the date of enactment of this section).
‘‘(2) ACCEPTANCE OF LIMITATION.—The submission of a plan
by a State under section 401(a) for fiscal year 1996 is deemed
H. R. 2491—866
detailed description of such requirements and of how
such requirements are effectively enforced. Nothing
in the preceding sentence shall be construed to require
that licensing requirements be applied to specific types
of providers of child care services.
‘‘(ii) UNIFORM APPLICATION OF REQUIREMENTS.—A
certification under clause (i) shall include an assurance
by the State that the State shall apply all such licens-
ing requirements in a uniform manner to child care
providers of the same type regardless of whether a
child care provider is receiving assistance under this
subchapter. Nothing in this subchapter shall be con-
strued to require that a State apply, or prohibit a
State from applying, licensing requirements with
respect to a particular type of child care.
‘‘(iii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—
In lieu of any licensing and regulatory requirements
applicable under State and local law, the Secretary,
in consultation with Indian tribes and tribal organiza-
tions, shall develop minimum child care standards
(that appropriately reflect tribal needs and available
resources) that shall be applicable to Indian tribes
and tribal organizations receiving assistance under this
subchapter.’’; and
(vi) by striking subparagraphs (F), (G), (H), (I),
and (J) and inserting the following:
‘‘(F) MEETING THE NEEDS OF CERTAIN POPULATIONS.—
Demonstrate the manner in which the State will meet
the specific child care needs of families who are receiving
assistance under a State program under part A of title
IV of the Social Security Act, families who are attempting
through work activities to transition off of such assistance
program, and families who are at risk of becoming depend-
ent on such assistance program.’’;
(B) in paragraph (3)—
(i) in subparagraph (A), by striking ‘‘(B) and (C)’’
and inserting ‘‘(B) through (D)’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘.—Subject to the reservation
contained in subparagraph (C), the’’ and inserting
‘‘AND RELATED ACTIVITIES.—The’’;
(II) in clause (i) by striking ‘‘; and’’ at the
end and inserting a period;
(III) by striking ‘‘for—’’ and all that follows
through ‘‘section 658E(c)(2)(A)’’ and inserting ‘‘for
child care services on sliding fee scale basis, activi-
ties that improve the quality or availability of
such services, and any other activity that the State
deems appropriate’’; and
(IV) by striking clause (ii);
(iii) by amending subparagraph (C) to read as fol-
lows:
‘‘(C) LIMITATION ON ADMINISTRATIVE COSTS.—Not more
than 3 percent of the aggregate amount of funds available
to the State to carry out this subchapter by a State in
each fiscal year may be expended for administrative costs
incurred by such State to carry out all of its functions
H. R. 2491—867
and duties under this subchapter. As used in the preceding
sentence, the term ‘administrative costs’ shall not include
the costs of providing direct services.’’; and
(iv) by adding at the end thereof the following:
‘‘(D) ASSISTANCE FOR CERTAIN FAMILIES.—A State shall
ensure that a substantial portion of the amounts available
(after the State has complied with the requirement of sec-
tion 419(b)(2) of the Social Security Act) to the State to
carry out activities under this subchapter in each fiscal
year is used to provide assistance to low-income working
families other than families described in paragraph (2)(F).’’;
and
(C) in paragraph (4)(A)—
(i) by striking ‘‘provide assurances’’ and inserting
‘‘certify’’;
(ii) in the first sentence by inserting ‘‘and shall
provide a summary of the facts relied on by the State
to determine that such rates are sufficient to ensure
such access’’ before the period; and
(iii) by striking the last sentence.
SEC. 12805. LIMITATION ON STATE ALLOTMENTS.
Section 658F(b) (42 U.S.C. 9858d(b)) is amended—
(1) in paragraph (1), by striking ‘‘No’’ and inserting ‘‘Except
as provided for in section 658O(c)(6), no’’; and
(2) in paragraph (2), by striking ‘‘referred to in section
658E(c)(2)(F)’’.
SEC. 12806. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G (42 U.S.C. 9858e) is amended to read as follows:
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
‘‘A State that receives financial assistance under this sub-
chapter, shall use not less than 3 percent of the total amounts
received in each fiscal year for activities that are designed to
provide comprehensive consumer education to parents and the pub-
lic, activities that increase parental choice, and activities designed
to improve the quality and availability of child care (such as
resource and referral services).’’.
SEC. 12807. ADMINISTRATION AND ENFORCEMENT.
Section 658I(b) (42 U.S.C. 9858g(b)) is amended—
(1) in paragraph (1), by striking ‘‘, and shall have’’ and
all that follows through ‘‘(2)’’;
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as paragraph (2).
SEC. 12808. PAYMENTS.
Section 658J(c) (42 U.S.C. 9858h(c)) is amended—
(1) by striking ‘‘expended’’ and inserting ‘‘obligated’’; and
(2) by striking ‘‘3 fiscal years’’ and inserting ‘‘fiscal year’’.
SEC. 12809. ANNUAL REPORT AND AUDITS.
Section 658K (42 U.S.C. 9858i) is amended—
(1) in the section heading by striking ‘‘ANNUAL REPORT’’
and inserting ‘‘REPORTS’’;
(2) in subsection (a), to read as follows:
‘‘(a) REPORTS.—
‘‘(1) COLLECTION OF INFORMATION BY STATES.—
H. R. 2491—868
‘‘(A) IN GENERAL.—A State that receives funds to carry
out this subchapter shall collect the information described
in subparagraph (B) on a monthly basis.
‘‘(B) 
REQUIRED
INFORMATION.—The 
information
required under this subparagraph shall include, with
respect to a family unit receiving assistance under this
subchapter information concerning—
‘‘(i) family income;
‘‘(ii) county of residence;
‘‘(iii) the gender and age of children receiving such
assistance;
‘‘(iv) whether the family includes only 1 parent;
‘‘(v) the sources of family income, including the
amount obtained from (and separately identified)—
‘‘(I) employment, including self-employment;
‘‘(II) cash or other assistance under part A
of title IV of the Social Security Act;
‘‘(III) housing assistance;
‘‘(IV) assistance under the Food Stamp Act
of 1977; and
‘‘(V) other assistance programs;
‘‘(vi) the number of months the family has received
benefits;
‘‘(vii) the type of child care in which the child
was enrolled (such as family child care, home care,
or center-based child care);
‘‘(viii) whether the child care provider involved
was a relative;
‘‘(ix) the cost of child care for such families; and
‘‘(x) the average hours per week of such care
during the period for which such information is required
to be submitted.
‘‘(C) SUBMISSION TO SECRETARY.—A State described in
subparagraph (A) shall, on a quarterly basis, submit the
information required to be collected under subparagraph
(B) to the Secretary.
‘‘(D) SAMPLING.—The Secretary may disapprove the
information collected by a State under this paragraph if
the State uses sampling methods to collect such informa-
tion.
‘‘(2) BIANNUAL REPORTS.—Not later than December 31, fol-
lowing the end of the first fiscal year with respect to which
the amendments made by the Child Care and Development
Block Grants Amendments of 1995 apply, and every 6 months
thereafter, a State described in paragraph (1)(A) shall prepare
and submit to the Secretary a report that includes aggregate
data concerning—
‘‘(A) the number of child care providers that received
funding under this subchapter as separately identified
based on the types of providers listed in section 658Q(5);
‘‘(B) the monthly cost of child care services, and the
portion of such cost that is paid for with assistance provided
under this subchapter, listed by the type of child care
services provided;
‘‘(C) the number of payments made by the State
through vouchers, contracts, cash, and disregards under
H. R. 2491—869
public benefit programs, listed by the type of child care
services provided;
‘‘(D) the manner in which consumer education informa-
tion was provided to parents and the number of parents
to whom such information was provided; and
‘‘(E) the total number (without duplication) of children
and families served under this subchapter;
during the period for which such report is required to be submit-
ted.’’; and
(2) in subsection (b)—
(A) in paragraph (1) by striking ‘‘a application’’ and
inserting ‘‘an application’’;
(B) in paragraph (2) by striking ‘‘any agency admin-
istering activities that receive’’ and inserting ‘‘the State
that receives’’; and
(C) in paragraph (4) by striking ‘‘entitles’’ and inserting
‘‘entitled’’.
SEC. 12810. ALLOTMENTS.
Section 658O (42 U.S.C. 9858m) is amended—
(1) in subsection (a)—
(A) in paragraph (1)
(i) by striking ‘‘POSSESSIONS’’ and inserting
‘‘POSSESSIONS’’;
(ii) by inserting ‘‘and’’ after ‘‘States,’’; and
(iii) by striking ‘‘, and the Trust Territory of the
Pacific Islands’’; and
(B) in paragraph (2), by striking ‘‘3 percent of the
amount appropriated under section 658B’’ and inserting
‘‘1 percent of the aggregate amount of funds available to
the State to carry out this subchapter’’;
(2) in subsection (c)—
(A) in paragraph (5) by striking ‘‘our’’ and inserting
‘‘out’’; and
(B) by adding at the end thereof the following new
paragraph:
‘‘(6) CONSTRUCTION OR RENOVATION OF FACILITIES.—
‘‘(A) REQUEST FOR USE OF FUNDS.—An Indian tribe
or tribal organization may submit to the Secretary a
request to use amounts provided under this subsection
for construction or renovation purposes.
‘‘(B) DETERMINATION.—With respect to a request
submitted under subparagraph (A), and except as provided
in subparagraph (C), upon a determination by the Secretary
that adequate facilities are not otherwise available to an
Indian tribe or tribal organization to enable such tribe
or organization to carry out child care programs in accord-
ance with this subchapter, and that the lack of such facili-
ties will inhibit the operation of such programs in the
future, the Secretary may permit the tribe or organization
to use assistance provided under this subsection to make
payments for the construction or renovation of facilities
that will be used to carry out such programs.
‘‘(C) LIMITATION.—The Secretary may not permit an
Indian tribe or tribal organization to use amounts provided
under this subsection for construction or renovation if such
use will result in a decrease in the level of child care
H. R. 2491—870
services provided by the tribe or organization as compared
to the level of such services provided by the tribe or
organization in the fiscal year preceding the year for which
the determination under subparagraph (A) is being made.
‘‘(D) UNIFORM
PROCEDURES.—The Secretary shall
develop and implement uniform procedures for the solicita-
tion and consideration of requests under this paragraph.’’;
and
(3) in subsection (e), by adding at the end thereof the
following new paragraph:
‘‘(4) INDIAN TRIBES OR TRIBAL ORGANIZATIONS.—Any portion
of a grant or contract made to an Indian tribe or tribal organiza-
tion under subsection (c) that the Secretary determines is not
being used in a manner consistent with the provision of this
subchapter in the period for which the grant or contract is
made available, shall be allotted by the Secretary to other
tribes or organizations that have submitted applications under
subsection (c) in accordance with their respective needs.’’.
SEC. 12811. DEFINITIONS.
Section 658P (42 U.S.C. 9858n) is amended—
(1) in paragraph (2), in the first sentence by inserting
‘‘or as a deposit for child care services if such a deposit is
required of other children being cared for by the provider’’
after ‘‘child care services’’;
(2) by striking paragraph (3);
(3) in paragraph (4)(B), by striking ‘‘75 percent’’ and insert-
ing ‘‘85 percent’’;
(4) in paragraph (5)(B)—
(A) by inserting ‘‘great grandchild, sibling (if such pro-
vider lives in a separate residence),’’ after ‘‘grandchild,’’;
(B) by striking ‘‘is registered and’’; and
(C) by striking ‘‘State’’ and inserting ‘‘applicable’’;
(5) by striking paragraph (10);
(6) in paragraph (3)—
(A) by inserting ‘‘or’’ after ‘‘Samoa,’’; and
(B) by striking ‘‘, and the Trust Territory of the Pacific
Islands’’; and
(7) in paragraph (14)—
(A) by striking ‘‘The term’’ and inserting the following:
‘‘(A) IN GENERAL.—The term’’; and
(B) by adding at the end thereof the following new
subparagraph:
‘‘(B) OTHER
ORGANIZATIONS.—Such term includes a
Native Hawaiian Organization, as defined in section
4009(4) of the Augustus F. Hawkins-Robert T. Stafford
Elementary and Secondary School Improvement Amend-
ments of 1988 (20 U.S.C. 4909(4)) and a private nonprofit
organization established for the purpose of serving youth
who are Indians or Native Hawaiians.’’.
H. R. 2491—874
‘‘(B) MAXIMUM AMOUNTS.—Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall
not exceed—
‘‘(i) $1.82 for each lunch and supper served;
‘‘(ii) $1.13 for each breakfast served; and
‘‘(iii) 46 cents for each meal supplement served.
‘‘(C) ADJUSTMENTS.—Amounts specified in subpara-
graph (B) shall be adjusted each January 1 to the nearest
lower cent increment in accordance with the changes for
the 12-month period ending the preceding November 30
in the series for food away from home of the Consumer
Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor.
Each adjustment shall be based on the unrounded adjust-
ment for the prior 12-month period.’’.
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—Section 13(b)(2)
of the Act is amended—
(1) in the first sentence, by striking ‘‘four meals’’ and insert-
ing ‘‘3 meals, or 2 meals and 1 supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act is amended—
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
(i) by striking ‘‘, and such higher education institu-
tions,’’; and
(ii) by striking ‘‘without application’’ and inserting
‘‘upon showing residence in areas in which poor eco-
nomic conditions exist’’; and
(B) by adding at the end the following: ‘‘The higher
education institutions referred to in the preceding sentence
shall be eligible to participate in the program under this
paragraph without application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe need’’; and
(4) by redesignating subparagraphs (B) through (E), as
so amended, as subparagraphs (A) through (D), respectively.
(e) PERMITTING OFFER VERSUS SERVE.—Section 13(f) of the
Act is amended—
(1) by redesignating the first through seventh sentences
as paragraphs (1) through (7), respectively; and
(2) by adding at the end the following:
‘‘(8) OFFER VERSUS SERVE.—A school food authority partici-
pating as a service institution may permit a child attending
a site on school premises operated directly by the authority
to refuse not more than 1 item of a meal that the child does
not intend to consume. A refusal of an offered food item shall
not affect the amount of payments made under this section
to a school for the meal.’’.
(f) EFFECTIVE DATE.—The amendments made by subsection
(b) shall become effective on January 1, 1996.
SEC. 12907. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of the National
School Lunch Act (42 U.S.C. 1766) is amended—
(1) in the section heading, by striking ‘‘AND ADULT’’; and
H. R. 2491—875
(2) in the first sentence of subsection (a), by striking ‘‘initi-
ate, 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 Act (42 U.S.C. 1766(a)) is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) in the case of a family or group day care home
sponsoring organization that employs more than 1
employee, the organization does not base payments to an
employee of the organization on the number of family or
group day care homes recruited, managed, or monitored.’’.
(c) TECHNICAL
ASSISTANCE.—The last sentence of section
17(d)(1) of the Act is amended by striking ‘‘, and shall provide
technical assistance’’ and all that follows through ‘‘its application’’.
(d) REIMBURSEMENT
OF CHILD CARE INSTITUTIONS.—Section
17(f)(2)(B) of the Act (42 U.S.C. 1766(f)(2)(B)) is amended by striking
‘‘two meals and two supplements or three meals and one supple-
ment’’ and inserting ‘‘two meals and one supplement’’.
(e) IMPROVED TARGETING
OF DAY CARE HOME REIMBURSE-
MENTS.—
(1) RESTRUCTURED DAY CARE HOME REIMBURSEMENTS.—Sec-
tion 17(f)(3) of the Act is amended by striking ‘‘(3)(A) Institu-
tions’’ 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 section as a family or group
day care home sponsoring organization shall be pro-
vided, for payment to a home sponsored by the
organization, reimbursement factors in accordance with
this subparagraph for the cost of obtaining and prepar-
ing food and prescribed labor costs involved in provid-
ing meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) DEFINITION.—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 geographic area, as defined
by the Secretary based on census data, in
which at least 50 percent of the children resid-
ing in the area are members of households
whose incomes 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 number of children
enrolled are certified eligible to receive free
or reduced price school meals under this Act
H. R. 2491—876
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
organization of the home under regulations
established by the Secretary.
‘‘(II) REIMBURSEMENT.—Except as provided in
subclause (III), a tier I family or group day care
home shall be provided reimbursement factors
under this clause without a requirement for docu-
mentation of the costs described in clause (i),
except that reimbursement shall not be provided
under this subclause for meals or supplements
served to the children of a person acting as a
family or group day care home provider unless
the children meet the income eligibility guidelines
for free or reduced price meals under section 9.
‘‘(III) 
FACTORS.—Except 
as 
provided 
in
subclause (IV), the reimbursement factors applied
to a home referred to in subclause (II) shall be
the factors in effect on the date of enactment of
this subclause.
‘‘(IV) ADJUSTMENTS.—The reimbursement fac-
tors under this subparagraph shall be adjusted
on August 1, 1996, July 1, 1997, and each July
1 thereafter, to reflect changes in the Consumer
Price Index for food at home for the most recent
12-month period for which the data are available.
The reimbursement factors under this subpara-
graph shall be rounded to the nearest lower cent
increment and based on the unrounded adjustment
in effect on June 30 of the preceding school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as provided in
subclause (II), with respect to meals or supple-
ments served under this clause by a family
or group day care home that does not meet
the criteria set forth in clause (ii)(I), the
reimbursement factors shall be 90 cents for
lunches and suppers, 25 cents for breakfasts,
and 10 cents for supplements.
‘‘(bb) ADJUSTMENTS.—The factors shall be
adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer
Price Index for food at home for the most
recent 12-month period for which the data
are available. The reimbursement factors
under this item shall be rounded down to the
nearest lower cent increment and based on
the unrounded adjustment for the preceding
12-month period.
‘‘(cc) REIMBURSEMENT.—A family or group
day care home shall be provided reimburse-
H. R. 2491—877
ment factors under this subclause without a
requirement for documentation of the costs
described in clause (i), except that reimburse-
ment shall not be provided under this
subclause for meals or supplements served to
the children of a person acting as a family
or group day care home provider unless the
children meet the income eligibility guidelines
for free or reduced price meals under section
9.
‘‘(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 reimburse-
ment factors determined in accordance with the
following requirements:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED PRICE MEALS.—In the case of meals
or supplements served under this subsection
to children who are members of households
whose incomes 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 CHILDREN.—In the case
of meals or supplements served under this
subsection to children who are members of
households whose incomes do not meet the
income eligibility guidelines, the family or
group day care home shall be provided
reimbursement factors in accordance with
subclause (I).
‘‘(III) INFORMATION AND DETERMINATIONS.—
‘‘(aa) IN GENERAL.—If a family or group
day care home elects to claim the factors
described in subclause (II), the family or group
day care home sponsoring organization serving
the home shall collect the necessary income
information, as determined by the Secretary,
from any parent or other caretaker to make
the determinations specified in subclause (II)
and shall make the determinations in accord-
ance with rules prescribed by the Secretary.
‘‘(bb) CATEGORICAL ELIGIBILITY.—In mak-
ing a determination under item (aa), a family
or group day care home sponsoring organiza-
tion may consider a child participating in or
subsidized under, or a child with a parent
participating in or subsidized under, a feder-
ally or State supported child care or other
benefit program with an income eligibility
limit that does not exceed the eligibility stand-
ard for free or reduced price meals under sec-
tion 9 to be a child who is a member of a
household whose income meets the income
eligibility guidelines under section 9.
H. R. 2491—878
‘‘(cc) FACTORS
FOR
CHILDREN
ONLY.—A
family or group day care home may elect to
receive the reimbursement factors prescribed
under clause (ii)(III) solely for the children
participating 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 COUNTING AND REPORT-
ING PROCEDURES.—The Secretary shall prescribe
simplified 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 proce-
dures the Secretary prescribes may include 1 or
more of the following:
‘‘(aa) Setting an annual percentage for
each home of the number of meals served that
are to be reimbursed in accordance with the
reimbursement factors prescribed under clause
(ii)(III) and an annual percentage of the num-
ber of meals served that are to be reimbursed
in accordance with the reimbursement factors
prescribed under subclause (I), based on the
family income of children enrolled in the home
in a specified month or other period.
‘‘(bb) Placing a home into 1 of 2 or more
reimbursement categories annually based on
the percentage of children in the home whose
households have incomes that meet the income
eligibility guidelines under section 9, with each
such reimbursement category carrying a set
of reimbursement factors such as the factors
prescribed under clause (ii)(III) or subclause
(I) or factors established within the range of
factors prescribed under clause (ii)(III) and
subclause (I).
‘‘(cc) Such other simplified procedures as
the Secretary may prescribe.
‘‘(V) MINIMUM VERIFICATION REQUIREMENTS.—
The Secretary may establish any necessary mini-
mum verification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSISTANCE TO FAMILY
OR
GROUP
DAY
CARE
HOMES.—Section 17(f)(3) of the Act is
amended by adding at the end the following:
‘‘(D) GRANTS
TO
STATES
TO
PROVIDE
ASSISTANCE
TO
FAMILY OR GROUP DAY CARE HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) RESERVATION.—From amounts made avail-
able to carry out this section, the Secretary shall
reserve $5,000,000 of the amount made available
for fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary shall use the
funds made available under subclause (I) to pro-
vide grants to States for the purpose of providing—
H. R. 2491—879
‘‘(aa) assistance, including grants, to fam-
ily and day care home sponsoring organiza-
tions and other appropriate organizations, 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 assistance to fam-
ily and group day care homes in the
implementation of the amendment to subpara-
graph (A) made by section 12907(e)(1) of the
Balanced Budget Act of 1995.
‘‘(ii) ALLOCATION.—The Secretary shall allocate
from the funds reserved under clause (i)(I)—
‘‘(I) $30,000 in base funding to each State;
and
‘‘(II) any remaining amount among the States,
based on the number of family day care homes
participating in the program in a State during
fiscal year 1994 as a percentage of the number
of all family day care homes participating in the
program during fiscal year 1994.
‘‘(iii) RETENTION
OF
FUNDS.—Of the amount of
funds made available to a State for fiscal year 1996
under clause (i), the State may retain not to exceed
30 percent 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 Act (as
amended by paragraph (2)) is further amended by adding at
the end the following:
‘‘(E) PROVISION
OF
DATA
TO
FAMILY
OR
GROUP
DAY
CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(i) CENSUS
DATA.—The Secretary shall provide
to each State agency administering a child care food
program under this section data from the most recent
decennial census survey or other appropriate 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 agency administer-
ing the school lunch program under this Act or
the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall provide to approved family or group day care
home sponsoring organizations a list of schools
serving elementary 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 create the list annually and provide the list
H. R. 2491—880
on a timely basis to any approved family or group
day care home sponsoring organization that
requests the list.
‘‘(II) USE OF DATA FROM PRECEDING SCHOOL
YEAR.—In determining for a fiscal year or other
annual period whether a home qualifies as a tier
I family or group day care home under subpara-
graph (A)(ii)(I), the State agency administering the
program under this section, and a family or group
day care home sponsoring organization, shall use
the most current available data at the time of
the determination.
‘‘(iii) DURATION OF DETERMINATION.—For purposes
of this section, a determination 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 subparagraph (A)(ii)(I)), shall
be in effect for 3 years (unless the determination is
made on the basis of census data, in which case the
determination shall remain in effect until more recent
census data are available) unless the State agency
determines that the area in which the home is located
no longer qualifies the home as a tier I family or
group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c) of the Act
is amended by inserting ‘‘except as provided in subsection (f)(3),’’
after ‘‘For purposes of this section,’’ each place it appears in
paragraphs (1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the third and
fourth sentences; and
(B) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘(i)’’;
(II) in the first sentence, by striking ‘‘and
expansion funds’’ and all that follows through
‘‘rural areas’’;
(III) by striking the second sentence; and
(IV) by striking ‘‘and expansion funds’’ each
place it appears; and
(ii) by striking clause (ii); and
(2) by striking paragraph (4).
(g) ELIMINATION OF STATE PAPERWORK AND OUTREACH BUR-
DEN.—Section 17 of the Act is amended by striking subsection
(k) and inserting the following:
‘‘(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participat-
ing in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this sub-
section.’’.
(h) MODIFICATION OF ADULT CARE FOOD PROGRAM.—Section
17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
H. R. 2491—881
(A) by striking ‘‘adult day care centers’’ and inserting
‘‘day care centers for chronically impaired disabled
persons’’; and
(B) by striking ‘‘to persons 60 years of age or older
or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’ and inserting
‘‘day care center for chronically impaired disabled per-
sons’’; and
(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and inserting ‘‘per-
sons’’; and
(III) by striking ‘‘or persons 60 years of age
or older’’; and
(B) in subparagraph (B), by striking ‘‘adult day care
services’’ and inserting ‘‘day care services for chronically
impaired disabled persons’’.
(i) UNNEEDED PROVISIONS.—Section 17 of the Act is amended—
(1) by striking subsections (b) and (q);
(2) by redesignating subsections (c) through (p), as so
amended, as subsections (b) through (o), respectively; and
(3) in subsection (e), as redesignated by paragraph (2)—
(A) in paragraph (2)(A), by striking ‘‘subsection (c)’’
and inserting ‘‘subsection (b)’’; and
(B) in paragraph (3)(C), by striking ‘‘subsection (d)’’
and inserting ‘‘subsection (c)’’.
(j) CONFORMING AMENDMENTS.—
(1) 
Section 
11(a)(3)(A)(iv) 
of 
the 
Act 
(42 
U.S.C.
1759a(a)(3)(A)(iv)) is amended by striking ‘‘17(c)’’ and inserting
‘‘17(b)’’.
(2) Section 17A(c) of the Act (42 U.S.C. 1766a(c)) is
amended by striking ‘‘17(c)(3)’’ and inserting ‘‘17(b)(3)’’.
(3) Section 17B(f) of the Act (42 U.S.C. 1766b(f)) is
amended—
(A) in the subsection heading, by striking ‘‘AND ADULT’’;
and
(B) in paragraph (1), by striking ‘‘and adult’’.
(4) Section 18(e)(3)(B) of the Act (42 U.S.C. 1769(e)(3)(B))
is amended by striking ‘‘and adult’’.
(5) Section 25(b)(1)(C) of the Act (42 U.S.C. 1769f(b)(1)(C))
is amended by striking ‘‘and adult’’.
(6) Section 3(1) of the Healthy Meals for Healthy Americans
Act of 1994 (Public Law 103–448) is amended by striking ‘‘and
adult’’.
(k) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall become effective on
the date of the enactment of this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME REIMBURSE-
MENTS.—The amendments made by paragraphs (1), (3), and
(4) of subsection (e) shall become effective on August 1, 1996.
(3) REGULATIONS.—
(A) INTERIM REGULATIONS.—Not later than February
1, 1996, the Secretary shall issue interim regulations to
implement—
H. R. 2491—882
(i) the amendments made by paragraphs (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 August 1,
1996, the Secretary shall issue final regulations to imple-
ment the provisions of law referred to in subparagraph
(A).
(l) STUDY OF IMPACT OF AMENDMENTS ON PROGRAM PARTICIPA-
TION AND FAMILY DAY CARE LICENSING.—
(1) IN GENERAL.—The Secretary of Agriculture, in conjunc-
tion with the Secretary of Health and Human Services, shall
study the impact of the amendments made by this section
on—
(A) the number of family day care homes participating
in the child care food program established under section
17 of the National School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsoring organiza-
tions participating in the program;
(C) the number of day care homes that are licensed,
certified, registered, or approved by each State in accord-
ance with regulations issued by the Secretary;
(D) the rate of growth of the numbers referred 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 reimbursement after the amendments
made by this section; or
(ii) received full reimbursement under the program
prior to the amendments made by this section but
do not receive full reimbursement after the amend-
ments 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 proportion of low-income children partici-
pating in the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency participating in
the child care food program under section 17 of the National
School Lunch Act (42 U.S.C. 1766) shall submit to the Secretary
data on—
(A) the number of family day care homes participating
in the program on July 31, 1996, and July 31, 1997;
(B) the number of family day care homes licensed,
certified, registered, or approved for service on July 31,
1996, and July 31, 1997; and
(C) such other data as the Secretary may require to
carry out this subsection.
SEC. 12908. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the National
School Lunch Act (42 U.S.C. 1769(d)) is amended—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
H. R. 2491—883
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Section 18(e) of
the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting ‘‘may’’; and
(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.’’.
SEC. 12909. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42 U.S.C. 1769g)
is repealed.
CHAPTER 2—CHILD NUTRITION ACT
SEC. 12921. SPECIAL MILK PROGRAM.
(a) IN GENERAL.—Section 3(a) of the Child Nutrition Act of
1966 (42 U.S.C. 1772(a)) is amended—
(1) in paragraph (3), by striking ‘‘the Trust Territory of
the Pacific Islands’’ and inserting ‘‘the Commonwealth of the
Northern Mariana Islands’’; and
(2) by striking paragraph (8) and inserting the following:
‘‘(8) ADJUSTMENTS.—
‘‘(A) IN
GENERAL.—Except as otherwise provided in
this paragraph, in the case of each school year, the Sec-
retary shall—
‘‘(i) base the adjustment made under paragraph
(7) on the amount of the unrounded adjustment for
the preceding school year;
‘‘(ii) adjust the resulting amount in accordance
with paragraph (7); and
‘‘(iii) round the result to the nearest lower cent
increment.
‘‘(B) ADJUSTMENT ON JANUARY 1, 1996.—On January
1, 1996, the Secretary shall adjust the minimum rate for
the remainder of the school year by rounding the previously
established minimum rate to the nearest lower cent incre-
ment.
‘‘(C) ADJUSTMENT
FOR
24-MONTH
PERIOD
BEGINNING
JULY 1, 1996.—In the case of the 24-month period beginning
July 1, 1996, the minimum rate shall be the same as
the minimum rate in effect on June 30, 1996.
‘‘(D) ADJUSTMENT FOR SCHOOL YEAR BEGINNING JULY
1, 1998.—In the case of the school year beginning July
1, 1998, the Secretary shall—
‘‘(i) base the adjustment made under paragraph
(7) on the amount of the unrounded adjustment for
the minimum rate for the school year beginning July
1, 1995;
‘‘(ii) adjust the resulting amount to reflect changes
in the Producer Price Index for Fresh Processed Milk
published by the Bureau of Labor Statistics of the
Department of Labor for the most recent 12-month
period for which the data are available; and
H. R. 2491—885
(iii) by redesignating clauses (i) through (viii) and
(xx) as subparagraphs (A) through (H) and (I), respec-
tively; and
(iv) in subparagraph (H), as so redesignated, by
inserting ‘‘and’’ at the end;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 19(i) of the
Act is amended—
(1) in the first sentence of paragraph (2)(A), by striking
‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
‘‘(2) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized to be appro-
priated 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, except that
no State shall receive an amount less than $75,000
per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the amount made
available for any fiscal year is insufficient to pay the
amount to which each State is entitled under clause
(i), the amount of each grant shall be ratably reduced.’’.
Subtitle J—Food Stamps and Commodity
Distribution
SEC. 13001. SHORT TITLE.
This subtitle may be cited as the ‘‘Food Stamp Reform and
Commodity Distribution Act of 1995’’.
CHAPTER 1—FOOD STAMP PROGRAM
SEC. 13011. 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 certification 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. 13012. 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 an access device, including an electronic benefit trans-
fer card or personal identification number,’’.
H. R. 2491—886
SEC. 13013. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(i)) is amended by striking ‘‘(who are not
themselves parents living with their children or married and living
with their spouses)’’.
SEC. 13014. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSE-
HOLD DETERMINATIONS.
Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i))
is amended by inserting after the third sentence the following:
‘‘Notwithstanding the preceding sentences, a State may establish
criteria that prescribe when individuals who live together, and
who would be allowed to participate as separate households under
the preceding sentences, shall be considered a single household,
without regard to the common purchase of food and preparation
of meals.’’.
SEC. 13015. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting the following:
‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting ‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and inserting the follow-
ing: ‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all that follows
through the end of the subsection and inserting the following:
‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet, in
the preceding June, and round the result to the nearest lower
dollar increment for each household size, except that on October
1, 1996, the Secretary may not reduce the cost of the diet
in effect on September 30, 1996.’’.
SEC. 13016. 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. 13017. 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 follow-
ing:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in
this Act, the Secretary’’.
SEC. 13018. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ‘‘21’’ and inserting ‘‘19’’.
SEC. 13019. ENERGY ASSISTANCE.
(a) IN GENERAL.—Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended by striking paragraph (11) and insert-
ing the following: ‘‘(11) a 1-time payment or allowance made under
H. R. 2491—887
a Federal or State law for the costs of weatherization or emergency
repair or replacement of an unsafe or inoperative furnace or other
heating or cooling device,’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5(k) of the Act (7 U.S.C. 2014(k)) is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking ‘‘plan for aid
to families with dependent children approved’’ and
inserting ‘‘program funded’’; and
(ii) in subparagraph (B), by striking ‘‘, not includ-
ing energy or utility-cost assistance,’’;
(B) in paragraph (2), by striking subparagraph (C)
and inserting the following:
‘‘(C) a payment or allowance described in subsection
(d)(11);’’; and
(C) by adding at the end the following:
‘‘(4) THIRD-PARTY ENERGY ASSISTANCE PAYMENTS.—
‘‘(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of
subsection (d)(1), a payment made under a Federal or State
law to provide energy assistance to a household shall be
considered money payable directly to the household.
‘‘(B) ENERGY ASSISTANCE EXPENSES.—For purposes of
subsection (e)(7), an expense paid on behalf of a household
under a Federal or State law to provide energy assistance
shall be considered an out-of-pocket expense incurred and
paid by the household.’’.
(2) Section 2605(f) of the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(A) by striking ‘‘(f)(1) Notwithstanding’’ and inserting
‘‘(f) Notwithstanding’’;
(B) in paragraph (1), by striking ‘‘food stamps,’’; and
(C) by striking paragraph (2).
SEC. 13020. DEDUCTIONS FROM INCOME.
(a) IN GENERAL.—Section 5 of the Food Stamp Act of 1977
(7 U.S.C. 2014) is amended by striking subsection (e) and inserting
the following:
‘‘(e) DEDUCTIONS FROM INCOME.—
‘‘(1) STANDARD DEDUCTION.—The Secretary shall allow a
standard deduction for each household in the 48 contiguous
States and the District of Columbia, Alaska, Hawaii, Guam,
and the Virgin Islands of the United States of $134, $229,
$189, $269, and $118, respectively.
‘‘(2) EARNED INCOME DEDUCTION.—
‘‘(A) DEFINITION
OF
EARNED
INCOME.—In this para-
graph, the term ‘earned income’ does not include income
excluded by subsection (d) or 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 income shall be allowed a
deduction of 20 percent of all earned income (other than
income excluded by subsection (d)) to compensate for taxes,
other mandatory deductions from salary, and work
expenses.
H. R. 2491—888
‘‘(C) EXCEPTION.—The deduction described in subpara-
graph (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 excluded expenses described
in subparagraph (B)) for dependent care, to a dependent
care deduction, 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 payments 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—
‘‘(i) expenses paid on behalf of the household by
a third party;
‘‘(ii) amounts made available and excluded for the
expenses referred to in subparagraph (A) under sub-
section (d)(3); and
‘‘(iii) expenses that are paid under section 6(d)(4).
‘‘(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—A household shall be entitled to
a deduction for child support payments made by a house-
hold member to or for an individual who is not a member
of the household if the household member is legally obli-
gated to make the payments.
‘‘(B) METHODS FOR DETERMINING AMOUNT.—The Sec-
retary may prescribe by regulation the methods, including
calculation on a retrospective basis, that a State agency
shall use to determine the amount of the deduction for
child support payments.
‘‘(5) HOMELESS SHELTER ALLOWANCE.—A State agency may
develop a standard homeless shelter allowance, which shall
not exceed $139 per month, for such expenses as may reason-
ably be expected to be incurred by households 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, except that the State agency
may prohibit the use of the allowance for households with
extremely low shelter costs.
‘‘(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 house-
hold by a third party, to an excess medical expense deduc-
tion for the portion of the actual costs of allowable medical
expenses, incurred by the elderly or disabled member,
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 subparagraph (A) a method
of claiming a deduction for recurring medical expenses
that are initially verified under the excess medical
H. R. 2491—889
expense deduction in lieu of submitting information
or verification on actual expenses 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 disabled household member
choosing to deduct 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 (including changes that can be
reasonably anticipated based on available informa-
tion 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 reporting or verifica-
tion of a change in medical expenses if such a
change has been anticipated for the certification
period.
‘‘(7) EXCESS SHELTER EXPENSE DEDUCTION.—
‘‘(A) IN GENERAL.—A household shall be entitled, with
respect to expenses other than expenses 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 allowed.
‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case
of a household that does not contain an elderly or disabled
individual, the excess shelter expense deduction 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.
‘‘(C) STANDARD UTILITY ALLOWANCE.—
‘‘(i) IN GENERAL.—In computing the excess shelter
expense deduction, a State agency may use a standard
utility allowance in accordance with regulations
promulgated by the Secretary, except that a State
agency may use an allowance that does not fluctuate
within a year to reflect seasonal variations.
‘‘(ii) RESTRICTIONS
ON
HEATING
AND
COOLING
EXPENSES.—An allowance for a heating or cooling
expense may not be used in the case of a household
that—
‘‘(I) does not incur a heating or cooling
expense, as the case may be;
‘‘(II) does incur a heating or cooling expense
but is located in a public housing unit that has
central utility meters and charges households, with
regard to the expense, only for excess utility costs;
or
‘‘(III) shares the expense with, and lives with,
another individual not participating in the food
H. R. 2491—891
be considered to be prorated over the entire heat-
ing or cooling season for which the assistance was
provided.’’.
(b) CONFORMING AMENDMENT.—Section 11(e)(3) of the Act (7
U.S.C. 2020(e)(3)) is amended by striking ‘‘. Under rules prescribed’’
and all that follows through ‘‘verifies higher expenses’’.
SEC. 13021. VEHICLE ALLOWANCE.
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g))
is amended by striking paragraph (2) and inserting the following:
‘‘(2) INCLUDED ASSETS.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this paragraph, the Secretary shall, in prescribing inclu-
sions in, and exclusions from, financial resources, follow
the regulations in force as of June 1, 1982 (other than
those relating to licensed vehicles and inaccessible
resources).
‘‘(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 employment to the extent that
the fair market value of the vehicle exceeds $4,600;
and
‘‘(v) any savings or retirement account (including
an individual account), regardless of whether there
is a penalty for early withdrawal.
‘‘(C) EXCLUDED VEHICLES.—A vehicle (and any other
property, real or personal, to the extent the property is
directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is—
‘‘(i) used to produce earned income;
‘‘(ii) is necessary for the transportation of a phys-
ically disabled household member; or
‘‘(iii) is 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. 
13022. 
VENDOR 
PAYMENTS 
FOR 
TRANSITIONAL 
HOUSING
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 subpara-
graphs (F) and (G), respectively.
SEC. 13023. DOUBLED PENALTIES FOR VIOLATING FOOD STAMP PRO-
GRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended—
H. R. 2491—892
(1) in clause (i), by striking ‘‘six months’’ and inserting
‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and inserting ‘‘2
years’’.
SEC. 13024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)(iii)) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the end;
(2) in subclause (III), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by inserting after subclause (III) the following:
‘‘(IV) a conviction of an offense under subsection (b)
or (c) of section 15 involving an item covered by subsection
(b) or (c) of section 15 having a value of $500 or more.’’.
SEC. 13025. 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 participate in the food stamp program
if the individual—
‘‘(i) refuses, at the time of application and every
12 months thereafter, to register for employment in
a manner prescribed by the Secretary;
‘‘(ii) refuses without good cause to participate in
an employment and training program under paragraph
(4), to the extent required by the State agency;
‘‘(iii) refuses without good cause to accept an offer
of employment, at a site or plant not subject to a
strike or lockout at the time of the refusal, at a wage
not less than the higher of—
‘‘(I) the applicable Federal or State minimum
wage; or
‘‘(II) 80 percent of the wage that would have
governed had the minimum hourly rate under sec-
tion 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 provide a State
agency with sufficient information to allow the State
agency to determine the employment status or the
job availability of the individual;
‘‘(v) voluntarily and without good cause—
‘‘(I) quits a job; or
‘‘(II) reduces work effort and, after the reduc-
tion, 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 becomes ineligible to participate
in the food stamp program under subparagraph (A), the
household shall, at the option of the State agency, become
H. R. 2491—893
ineligible to participate in the food stamp program for
a period, determined by the State agency, that does not
exceed the lesser of—
‘‘(i) the duration of the ineligibility of the individual
determined under subparagraph (C); or
‘‘(ii) 180 days.
‘‘(C) DURATION OF INELIGIBILITY.—
‘‘(i) FIRST
VIOLATION.—The first time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual
shall remain ineligible until the later of—
‘‘(I) the date the individual becomes 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 becomes eligible
under subparagraph (A);
‘‘(II) the date that is 3 months after the date
the individual became ineligible; or
‘‘(III) a date determined by the State agency
that is not later than 6 months after the date
the individual became ineligible.
‘‘(iii) THIRD OR SUBSEQUENT VIOLATION.—The third
or subsequent time that an individual becomes ineli-
gible to participate in the food stamp program under
subparagraph (A), the individual shall remain ineli-
gible until the later of—
‘‘(I) the date the individual becomes 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, perma-
nently.
‘‘(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 deter-
mine the meaning of voluntarily quitting and reducing
work effort for the purpose of this paragraph.
‘‘(iii) DETERMINATION BY STATE AGENCY.—
‘‘(I) IN GENERAL.—Subject to subclause (II) and
clauses (i) and (ii), a State agency shall deter-
mine—
‘‘(aa) the meaning of any term in subpara-
graph (A);
H. R. 2491—894
‘‘(bb) the procedures for determining
whether an individual is in compliance with
a requirement under subparagraph (A); and
‘‘(cc) whether an individual is in compli-
ance with a requirement under subparagraph
(A).
‘‘(II) NOT LESS RESTRICTIVE.—A State agency
may not determine a meaning, procedure, or deter-
mination under subclause (I) to be less restrictive
than a comparable meaning, procedure, or deter-
mination 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 GOVERNMENT.—For the
purpose of subparagraph (A)(v), an employee of the
Federal Government, 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 HOUSEHOLD.—
‘‘(I) IN GENERAL.—For the purpose of this para-
graph, 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 application under the
food stamp program agree to the selection.
‘‘(II) TIME
FOR
MAKING
DESIGNATION.—A
household may designate the head of the household
under subclause (I) each time the household is
certified for participation in the food stamp pro-
gram, but may not change the designation during
a certification period unless there is a change in
the composition of the household.
‘‘(vi) CHANGE IN HEAD OF HOUSEHOLD.—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 otherwise eligible,
become eligible to participate 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 program
for the remaining period of ineligibility.’’.
(b) CONFORMING AMENDMENT.—
(1) The second sentence of section 17(b)(2) of the Act (7
U.S.C. 2026(b)(2)) is amended by striking ‘‘6(d)(1)(i)’’ and insert-
ing ‘‘6(d)(1)(A)(i)’’.
(2) Section 20 of the Act (7 U.S.C. 2029) is amended by
striking subsection (f) and inserting the following:
‘‘(f) DISQUALIFICATION.—An individual or a household may
become ineligible under section 6(d)(1) to participate in the food
stamp program for failing to comply with this section.’’.
H. R. 2491—895
SEC. 13026. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by striking subparagraph (B) and inserting
the following: ‘‘(B) a parent or other member of a household with
responsibility for the care of (i) a dependent child under the age
of 6 or any lower age designated by the State agency that is
not under the age of 1, or (ii) an incapacitated person;’’.
SEC. 13027. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1, 1987, each’’
and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills, training,’’; and
(C) by adding at the end the following: ‘‘Each compo-
nent of an employment and training program carried out
under this paragraph shall be delivered through a state-
wide workforce development system, unless the component
is not available locally through the statewide workforce
development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: ‘‘, except
that the State agency shall retain the option to apply
employment requirements prescribed under this subpara-
graph 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), respectively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the application’’
and all that follows through ‘‘30 days or less’’;
(B) in clause (ii), by striking ‘‘but with respect’’ and
all that follows through ‘‘child care’’; and
(C) in clause (iii), by striking ‘‘, on the basis of’’ and
all that follows through ‘‘clause (ii)’’ and inserting ‘‘the
exemption continues to be valid’’;
(4) in subparagraph (E), by striking the third sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and inserting ‘‘(G)
The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i) The Secretary’’
and all that follows through ‘‘(ii) Federal funds’’ and inserting
‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or was in oper-
ation,’’ and all that follows through ‘‘Social Security Act’’ and
inserting the following: ‘‘), except that no such payment or
reimbursement shall exceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L) and inserting
the following:
‘‘(K) LIMITATION ON FUNDING.—Notwithstanding any
other provision of this paragraph, the amount of funds
H. R. 2491—896
a State agency uses to carry out this paragraph (including
under subparagraph (I)) for participants who are receiving
benefits under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.)
shall not exceed the amount of funds the State agency
used in fiscal year 1995 to carry out this paragraph for
participants who were receiving benefits in fiscal year 1995
under a State program funded under part A of title IV
of the Act (42 U.S.C. 601 et seq.).’’; and
(B) by redesignating subparagraphs (M) and (N) as sub-
paragraphs (L) and (M), respectively; and
(9) in subparagraph (L), as redesignated by paragraph
(8)(B)—
(A) by striking ‘‘(L)(i) The Secretary’’ and inserting
‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C. 2025(h)) is
amended by striking ‘‘(h)(1)(A) The Secretary’’ and all that follows
through the end of paragraph (1) and inserting the following:
‘‘(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employment and training
programs, the Secretary shall reserve for allocation to State
agencies from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $77,000,000;
‘‘(ii) for fiscal year 1997, $80,000,000;
‘‘(iii) for fiscal year 1998, $83,000,000;
‘‘(iv) for fiscal year 1999, $86,000,000;
‘‘(v) for fiscal year 2000, $89,000,000;
‘‘(vi) for fiscal year 2001, $92,000,000; and
‘‘(vii) for fiscal year 2002, $95,000,000.
‘‘(B) ALLOCATION.—The Secretary shall allocate 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
allocated to the State agency under subparagraph (B).
‘‘(ii) REALLOCATION.—On notification under clause
(i), the Secretary shall reallocate the funds that the
State agency will not expend as the Secretary considers
appropriate and equitable.
‘‘(D) MINIMUM
ALLOCATION.—Notwithstanding sub-
paragraphs (A) through (C), the Secretary shall ensure
that each State agency operating an employment and train-
ing program shall receive not less than $50,000 in each
fiscal year.’’.
(c) ADDITIONAL MATCHING FUNDS.—Section 16(h)(2) of the Act
(7 U.S.C. 2025(h)(2)) is amended by inserting before the period
at the end the following: ‘‘, including the costs for case management
and casework to facilitate the transition from economic dependency
to self-sufficiency through work’’.
H. R. 2491—897
(d) REPORTS.—Section 16(h) of the Act (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. 13028. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015) is amended—
(1) by redesignating subsection (i), as added by section
12104, as subsection (p); and
(2) by inserting after subsection (h) the following:
‘‘(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.—
‘‘(1) IN
GENERAL.—If a disqualification is imposed on a
member of a household for a failure of the member to perform
an action required under a Federal, State, or local law relating
to a means-tested public assistance program, the State agency
may impose the same disqualification on the member of the
household under the food stamp program.
‘‘(2) RULES
AND
PROCEDURES.—If a disqualification 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
PERIOD.—A
member of a household disqualified under paragraph (1) may,
after the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant, except
that a prior disqualification under subsection (d) shall be consid-
ered in determining eligibility.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the Act (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 carrying out
section 6(i); and’’.
(c) CONFORMING AMENDMENT.—Section 6(d)(2)(A) of the Act
(7 U.S.C. 2015(d)(2)(A)) is amended by striking ‘‘that is comparable
to a requirement of paragraph (1)’’.
SEC. 13029. 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 13028, is further amended by inserting
after subsection (i) 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 found by a State agency to have
made, or is convicted in a Federal or State court of having made,
a fraudulent statement or representation with respect to the iden-
H. R. 2491—898
tity or place of residence of the individual in order to receive
multiple benefits simultaneously under the food stamp program.’’.
SEC. 13030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 13029, is further amended by inserting
after subsection (j) the following:
‘‘(k) DISQUALIFICATION
OF FLEEING FELONS.—No member of
a household who is otherwise eligible to participate in the food
stamp program shall be eligible to participate 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.’’.
SEC. 13031. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 13030, is further amended by inserting
after subsection (k) 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 referred 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 program
unless the individual cooperates with the State agency admin-
istering 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 determined by the State agency in
accordance with standards prescribed by the Secretary in con-
sultation with the Secretary of Health and Human Services.
The standards shall take into consideration circumstances
under which cooperation may be against the best interests
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) NON-CUSTODIAL PARENT’S COOPERATION WITH CHILD SUP-
PORT AGENCIES.—
‘‘(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), a putative or identified non-custodial
parent of a child under the age of 18 (referred to in this
subsection as ‘the individual’) shall not be eligible to participate
H. R. 2491—899
in the food stamp program if the individual refuses to cooperate
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 providing support for the child.
‘‘(2) REFUSAL TO COOPERATE.—
‘‘(A) GUIDELINES.—The Secretary, in consultation 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 whether 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 established 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. 
13032. 
DISQUALIFICATION 
RELATING 
TO 
CHILD 
SUPPORT
ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015),
as amended by section 13031, is further amended by inserting
after subsection (m) the following:
‘‘(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
‘‘(1) IN GENERAL.—No individual shall be eligible to partici-
pate in the food stamp program as a member of any household
during any month that the individual is delinquent 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 pay-
ment; 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 individ-
ual.’’.
SEC. 13033. WORK REQUIREMENT.
(a) IN GENERAL.—Section 6 of the Food Stamp Act of 1977
(7 U.S.C. 2015), as amended by section 13032, is further amended
by inserting after subsection (n) the following:
‘‘(o) WORK REQUIREMENT.—
‘‘(1) DEFINITION OF WORK PROGRAM.—In this subsection,
the term ‘work program’ means—
‘‘(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
H. R. 2491—900
that meets standards approved by the Governor of the
State, including a program under section 6(d)(4), other
than a job search program or a job search training program.
‘‘(2) WORK REQUIREMENT.—Subject to the other provisions
of this subsection, no individual shall be eligible 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 benefits for not less than 4 months during
which the individual did not—
‘‘(A) work 20 hours or more per week, averaged
monthly; or
‘‘(B) participate in and comply with the requirements
of a work program for 20 hours or more per week, as
determined by the State agency; or
‘‘(C) participate in a program under section 20 or a
comparable program established by a State or political
subdivision of a State.
‘‘(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 household with
responsibility for a dependent child;
‘‘(D) otherwise exempt under section 6(d)(2); or
‘‘(E) a pregnant woman.
‘‘(4) WAIVER.—
‘‘(A) IN GENERAL.—On the request of a State agency,
the Secretary may waive the applicability of paragraph
(2) to any group of individuals in the State if the Secretary
makes a determination that the area in which the individ-
uals reside—
‘‘(i) has an unemployment rate of over 10 percent;
or
‘‘(ii) does not have a sufficient number of jobs
to provide employment for the individuals.
‘‘(B) 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 Agriculture, Nutrition, and Forestry of the
Senate.
‘‘(5) SUBSEQUENT ELIGIBILITY.—
‘‘(A) IN GENERAL.—Paragraph (2) shall cease to apply
to an individual if, during a 30-day period, the individual—
‘‘(i) works 80 or more hours;
‘‘(ii) participates in and complies with the require-
ments of a work program for 80 or more hours, as
determined by a State agency; or
‘‘(iii) participates in a program under section 20
or a comparable program established by a State or
political subdivision of a State.
‘‘(B) LIMITATION.—During the subsequent 12-month
period, the individual shall be eligible to participate in
the food stamp program for not more than 4 months during
which the individual does not—
‘‘(i) work 20 hours or more per week, averaged
monthly;
H. R. 2491—901
‘‘(ii) participate in and comply with the require-
ments of a work program for 20 hours or more per
week, as determined by the State agency; or
‘‘(iii) participate in a program under section 20
or a comparable program established by a State or
political subdivision of a State.’’.
(b) TRANSITION PROVISION.—Prior to 1 year after 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 amended by sub-
section (a), means the preceding period that begins on the date
of enactment of this Act.
SEC. 13034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.
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.—
‘‘(A) IMPLEMENTATION.—Each State agency shall imple-
ment an electronic benefit transfer system in which house-
hold benefits determined under section 8(a) or 24 are issued
from and stored in a central databank before October 1,
2002, unless the Secretary provides a waiver for a State
agency that faces unusual barriers to implementing an
electronic benefit transfer system.
‘‘(B) TIMELY
IMPLEMENTATION.—State agencies are
encouraged to implement an electronic benefit transfer sys-
tem under subparagraph (A) as soon as practicable.
‘‘(C) STATE FLEXIBILITY.—Subject to paragraph (2), a
State agency may procure and implement 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 generally accepted standard
operating rules based on—
‘‘(i) commercial electronic funds transfer tech-
nology;
‘‘(ii) the need to permit interstate operation and
law enforcement monitoring; and
‘‘(iii) the need to permit monitoring and investiga-
tions by authorized law enforcement 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 inserting the
following:
‘‘(D)(i) measures to maximize the security of a system
using the most recent technology available that the State
agency considers appropriate 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 effective
date of this clause, to the extent practicable, measures
that permit a system to differentiate items of food that
H. R. 2491—902
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
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 allotment of the household receiving
the replacement card.
‘‘(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.—
‘‘(A) IN GENERAL.—A State agency may require that
an electronic benefit card contain a photograph of 1 or
more members of a household.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a State agency
requires a photograph on an electronic benefit card under
subparagraph (A), the State agency shall establish proce-
dures to ensure that any other appropriate member of
the household or any authorized representative of the
household may utilize the card.’’.
SEC. 13035. 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’’.
SEC. 13036. 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. 13037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c))
is amended by striking paragraph (3) and inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may provide to an eligible house-
hold 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 expedited service.’’.
SEC. 13038. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by striking subsection (d) and inserting the following:
‘‘(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS.—
H. R. 2491—903
‘‘(1) IN GENERAL.—If the benefits of a household are reduced
under a Federal, State, or local law relating to a means-tested
public assistance program for the failure of a member of the
household to perform an action required under the law or
program, for the duration of the reduction—
‘‘(A) the household may not receive an increased allot-
ment 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 allotment of
the household by not more than 25 percent.
‘‘(2) RULES AND PROCEDURES.—If the allotment of a house-
hold is reduced under this subsection for a failure to perform
an action required under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title IV of
the Act to reduce the allotment under the food stamp program.’’.
SEC. 13039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017)
is amended by adding at the end the following:
‘‘(f) ALLOTMENTS
FOR HOUSEHOLDS RESIDING
IN CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual who resides
in a center for the purpose of a drug or alcoholic treatment
program described in the last sentence of section 3(i), a State
agency may provide an allotment for the individual to—
‘‘(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and
‘‘(B) the individual, if the individual leaves the center.
‘‘(2) DIRECT
PAYMENT.—A State agency may require an
individual referred to in paragraph (1) to designate the center
in which the individual resides as the authorized representative
of the individual for the purpose of receiving an allotment.’’.
SEC. 13040. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2018(a)(1)) is amended by adding at the end the following: ‘‘No
retail food store or wholesale food concern of a type determined
by the Secretary, based on factors that include size, location, and
type of items sold, shall be approved to be authorized or reauthor-
ized for participation in the food stamp program unless an author-
ized employee of the Department of Agriculture, a designee of
the Secretary, or, if practicable, an official of the State or local
government designated by the Secretary has visited the store or
concern for the purpose of determining whether the store or concern
should be approved or reauthorized, as appropriate.’’.
SEC. 13041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.
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 estab-
lish specific time periods during which authorization to accept
and redeem coupons, or to redeem benefits through an elec-
tronic benefit transfer system, shall be valid under the food
stamp program.’’.
H. R. 2491—904
SEC. 
13042. 
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 documents,’’ after ‘‘submit
information’’; and
(2) by inserting after the first sentence the following: ‘‘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. 13043. 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 Secretary may establish a longer time period under
the preceding sentence, including permanent disqualification, that
reflects the severity of the basis of the denial.’’.
SEC. 13044. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting ‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as subparagraph
(B); and
(4) in subparagraph (B), as redesignated by paragraph
(3), by striking ‘‘, (B), or (C)’’.
SEC. 13045. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(10)) is amended by inserting before the semicolon at the
end a period and the following: ‘‘At the option of a State, at any
time prior to a fair hearing determination under this paragraph,
a household may withdraw, orally or in writing, a request by
the household for the fair hearing. If the withdrawal request is
an oral request, the State agency shall provide a written notice
to the household confirming the withdrawal request and providing
the household with an opportunity to request a hearing’’.
SEC. 13046. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY
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: