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(CC) subparagraph (D)(ii); 
and 
(DD) clauses (i), (ii), and 
(iv) of subparagraph (E); 
(cc) paragraph (5); 
(dd) subparagraphs (B) and (C) 
of paragraph (6); 
(ee) subparagraphs (A) and (B) 
of paragraph (7); 
(ff) paragraphs (8) and (9); 
(gg) in paragraph (10)— 
(AA) subparagraph (A) 
(BB) clauses (i) and (ii) of 
subparagraph (B); and 
(CC) subparagraph (C); and 
(hh) paragraphs (11), (12), and 
(13); 
(III) in subsection (d)— 
(aa) paragraph (1)(B)(i); and 
(bb) paragraph (3); and 
(IV) subsections (g)1 and (h). 
(xvi) Section 23(c). 
(xvii) In section 26— 
(I) subparagraphs (B) and (C) of sub-
section (c)(4); and 
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(II) subsection (f)(1). 
(b) REFERENCES IN OTHER LAWS, DOCUMENT, AND 
RECORDS OF THE UNITED STATES.—In any law (exclud-
ing the Food Stamp Act of 1977), regulation, rule, docu-
ment, or record of the United States— 
(1) a reference to food stamp recipients shall be 
deemed to be a reference to recipients of Secure 
Supplemental Nutrition Assistance Program bene-
fits; 
(2) a reference to food stamp households shall 
be deemed to be a reference to households that re-
ceive Secure Supplemental Nutrition Assistance Pro-
gram benefits; 
(3) a reference to the Simplified Food Stamp 
Program shall be deemed to be a reference to the 
Simplified Secure Supplemental Nutrition Assistance 
Program; 
(4) a reference to food stamp participants shall 
be deemed to be a reference to participants in the 
Secure Supplemental Nutrition Assistance Program; 
(5) a reference to food stamp informational ac-
tivities shall be deemed to be a reference to informa-
tional activities relating to the Secure Supplemental 
Nutrition Assistance Program; 
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(6) a reference to food stamp caseload shall be 
deemed to be a reference to caseload under the Se-
cure Supplemental Nutrition Assistance Program; 
(7) a reference to food stamps shall be deemed 
to be a reference to Secure Supplemental Nutrition 
Assistance Program benefits; and 
(8) a reference to the food stamp program shall 
be deemed to be a reference to Secure Supplemental 
Nutrition Assistance Program. 
SEC. 4002. DEFINITION OF DRUG ADDICTION OR ALCO-
HOLIC TREATMENT AND REHABILITATION 
PROGRAM. 
Section 3(f) of the Food Stamp Act of 1977 (7 
U.S.C. 2012(f)) is amended by striking ‘‘ center, under 
part B of title XIX of the Public Health Service Act (42 
U.S.C. 300x et seq.)’’ and inserting ‘‘center, that is— 
‘‘(1) tax exempt; and 
‘‘(2) certified by the State title XIX agency, 
under part B of title XIX of the Public Health Serv-
ice Act (42 U.S.C. 300x et seq.), as receiving fund-
ing under part B, eligible to receive funding under 
part B even if no funds are being received, or oper-
ating to further the purposes of part B, except that 
nothing in this paragraph shall be construed to re-
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quire State or Federal licensure to meet these re-
quirements;’’. 
SEC. 4003. NUTRITION EDUCATION. 
(a) AUTHORITY
TO
PROVIDE
NUTRITION
EDU-
CATION.—Section 4(a) of the Food Stamp Act of 1977 
(7 U.S.C. 2013(a)) is amended in the first sentence by 
inserting ‘‘and through an approved State plan, nutrition 
education’’ after ‘‘an allotment’’. 
(b) IMPLEMENTATION.—Section 11(f) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(f)) is amended to read 
as follows: 
‘‘(f) NUTRITION EDUCATION.— 
‘‘(1) IN GENERAL.—State agencies may imple-
ment a nutrition education program for individuals 
eligible for Secure Supplemental Nutrition Assist-
ance Program benefits that promotes healthy food 
choices consistent with current Dietary Guidelines. 
‘‘(2) DELIVERY OF NUTRITION EDUCATION.— 
State agencies may deliver nutrition education di-
rectly to eligible persons or through agreements with 
the Cooperative State Research, Education and Ex-
tension Service, including through the expanded food 
and nutrition education under section 3(d) of the 
Act of May 8, 1914 (7 U.S.C. 343(d)), and other 
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State and community health and nutrition providers 
and organizations. 
‘‘(3) NUTRITION EDUCATION STATE PLANS.— 
State agencies wishing to provide nutrition education 
under this subsection shall submit a Nutrition Edu-
cation State Plan to the Food and Nutrition Service 
for approval. The plan shall identify the uses of the 
funding for local projects and conform to standards 
set forth by the Secretary in regulations or guid-
ance. State costs for providing nutrition education 
under this subsection shall be reimbursed pursuant 
to section 16(a). 
‘‘(4) 
NOTIFICATION.—Whenever 
practicable, 
State agencies shall notify applicants, participants, 
and eligible program participants of the availability 
of nutrition education under this subsection.’’. 
SEC. 4004. FOOD DISTRIBUTION ON INDIAN RESERVATIONS. 
(a) IN GENERAL.—Section 4 of the Food Stamp Act 
of 1977 (7 U.S.C. 2013) is amended by striking sub-
section (b) and inserting the following: 
‘‘(b) FOOD DISTRIBUTION PROGRAM
ON INDIAN 
RESERVATIONS.— 
‘‘(1) IN
GENERAL.—Distribution of commod-
ities, with or without the Secure Supplemental Nu-
trition Assistance Program, shall be made whenever 
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a request for concurrent or separate food program 
operations, respectively, is made by a tribal organi-
zation. 
‘‘(2) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), in the event of a distribu-
tion on all or part of an Indian reservation, the 
appropriate agency of the State government in 
the area involved shall be responsible for the 
distribution. 
‘‘(B) ADMINISTRATION BY TRIBAL ORGANI-
ZATION.—If the Secretary determines that a 
tribal organization is capable of effectively and 
efficiently administering a distribution de-
scribed in subparagraph (A), then the tribal or-
ganization shall administer the distribution. 
‘‘(C) PROHIBITION.—The Secretary shall 
not approve any plan for a distribution de-
scribed in subparagraph (A) that permits any 
household on any Indian reservation to partici-
pate simultaneously in the Secure Supplemental 
Nutrition Assistance Program and the distribu-
tion of federally donated foods. 
‘‘(3) DISQUALIFIED PARTICIPANTS.—The Sec-
retary shall ensure that an individual who is dis-
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qualified from participation in the Food Distribution 
Program on Indian Reservations under this sub-
section is not eligible to participate in the Secure 
Supplemental Nutrition Assistance Program under 
this Act. 
‘‘(4) ADMINISTRATIVE COSTS.—The Secretary 
is authorized to pay such amounts for administrative 
costs of such distribution on Indian reservations as 
the Secretary finds necessary for effective adminis-
tration of such distribution by a State agency or 
tribal organization. 
‘‘(5) TRADITIONAL AND LOCAL FOODS FUND.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a fund to purchase traditional and lo-
cally-grown food, designated by region, for re-
cipients of food distributed under this sub-
section. 
‘‘(B) NATIVE
AMERICAN
PRODUCERS.— 
For recipients of food distributed under sub-
paragraph (A), at least 50 percent shall be pro-
duced by Native American farmers, ranchers, 
and producers. 
‘‘(C) DEFINITION
OF
TRADITIONAL
AND 
LOCALLY GROWN.—The Secretary, in conjunc-
tion with the Indian Tribal Organizations, will 
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determine the definition of traditional and lo-
cally-grown. 
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to the Secretary $5,000,000 for each of the fis-
cal years 2008 through 2012 to carry out sub-
paragraph (A).’’. 
(b) FDPIR FOOD PACKAGE.—Not later than 180 
days after the date of enactment of this Act, the Secretary 
of Agriculture shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that describes— 
(1) how the Secretary derives the process for 
determining the food package under the Food Dis-
tribution Program on Indian Reservations estab-
lished under section 4(b) of the Food Stamp Act of 
1977 (7 U.S.C. 2013(b)) (referred to in this sub-
section as the ‘‘food package’’); 
(2) the extent to which the food package— 
(A) conforms (or fails to conform) to the 
2005 Dietary Guidelines for Americans pub-
lished under section 301 of the National Nutri-
tion Monitoring and Related Research Act of 
1990 (7 U.S.C. 5341); 
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(B) addresses (or fails to address) the nu-
tritional and health challenges that are specific 
to Native Americans; and 
(C) addresses (or fails to address) the nu-
tritional needs of low-income Native Americans, 
compared to the Secure Supplemental Nutrition 
Assistance Program; 
(3) any plans of the Secretary to revise and up-
date the food package to conform with the most re-
cent Dietary Guidelines for Americans, including 
any costs associated with the planned changes; and 
(4) if the Secretary does not plan changes to 
the food package, the rationale of the Secretary for 
retaining the food package. 
SEC. 4005. EXCLUDING COMBAT RELATED PAY FROM 
COUNTABLE INCOME. 
Section (5)(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)) is amended— 
(1) by striking ‘‘and (18)’’, and inserting 
‘‘(18)’’, and 
(2) by inserting before the period at the end the 
following: ‘‘and (19) any additional payment received 
under Chapter 5 of title 37, United States Code, by 
(or as an allotment to or transfer from) a member 
of the United States Armed Forces deployed to a 
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designated combat zone for the duration of the 
member’s deployment to or service in a combat zone 
if the additional pay was not received immediately 
prior to serving in that or another combat zone.’’. 
SEC. 4006. INCREASING THE STANDARD DEDUCTION. 
Section (5)(e)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(1)) is amended— 
(1) in subparagraph (A)(ii) by striking ‘‘not 
less than $134’’ and all that follows through the pe-
riod at the end, and inserting the following: ‘‘not 
less than $145, $248, $205, and $128, respectively. 
On October 1, 2008, and each October 1 thereafter, 
such standard deduction shall be an amount that is 
equal to the amount from the previous fiscal year 
adjusted to the nearest lower dollar increment to re-
flect changes in the Consumer Price Index for All 
Urban Consumers published by the Bureau of Labor 
Statistics, for items other than food, for the 12 
months ending the preceding June 30.’’; and 
(2) in subparagraph (B)(ii) by striking ‘‘not 
less than $269.’’ and inserting the following: ‘‘not 
less than $291. On October 1, 2008, and each Octo-
ber 1 thereafter, such standard deduction shall be 
an amount that is equal to the amount of the pre-
vious fiscal year adjusted to the nearest dollar incre-
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ment to reflect changes in the Consumer Price Index 
for All Urban Consumers published by the Bureau 
of Labor Statistics, for items other than food, for 
the 12 months ending the preceding June 30.’’. 
SEC. 4007. EXCLUDING DEPENDENT CARE EXPENSES. 
Section (5)(e)(3)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, 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,’’. 
SEC. 4008. ADJUSTING COUNTABLE RESOURCES FOR IN-
FLATION. 
Section (5)(g) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(g)) is amended— 
(1) by striking ‘‘(g)(1) The Secretary’’ and in-
serting the following: 
‘‘(g) ALLOWABLE FINANCIAL RESOURCES.— 
‘‘(1) TOTAL AMOUNT.— 
‘‘(A) IN GENERAL.—The Secretary’’. 
(2) in subparagraph (A) (as so designated by 
paragraph (1))— 
(A) by inserting ‘‘(as adjusted in accord-
ance with subparagraph (B))’’ after ‘‘$2,000’’; 
and 
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(B) by inserting ‘‘(as adjusted in accord-
ance with subparagraph (B))’’ after ‘‘$3,000’’; 
and 
(3) by adding at the end the following: 
‘‘(B) ADJUSTMENT FOR INFLATION.— 
‘‘(i) IN GENERAL.—Beginning on Oc-
tober 1, 2007, and each October 1 there-
after, the amounts in subparagraph (A) 
shall be adjusted to the nearest $100 in-
crement to reflect changes for the 12- 
month period ending the preceding June in 
the Consumer Price Index for All Urban 
Consumers published by the Bureau of 
Labor Statistics of the Department of 
Labor. 
‘‘(ii) REQUIREMENT.—Each adjust-
ment under clause (i) shall be based on the 
unrounded amount for the prior 12-month 
period.’’. 
SEC. 
4009. 
EXCLUDING 
EDUCATION 
ACCOUNTS 
FROM 
COUNTABLE INCOME. 
Section (5)(g) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(g)) is amended by adding at the end the fol-
lowing: 
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‘‘(7) EXCLUSION
OF
EDUCATION
ACCOUNTS 
FROM COUNTABLE RESOURCES.— 
‘‘(A) MANDATORY EXCLUSIONS.—The Sec-
retary shall exclude from financial resources 
under this subsection the value of any funds in 
a qualified tuition program described in section 
529 of the Internal Revenue Code of 1986 or 
in a Coverdell education savings account under 
section 530 of that Code. 
‘‘(B) DISCRETIONARY
EXCLUSIONS.—The 
Secretary may also exclude from financial re-
sources under this subsection the value of any 
program or account included in any successor 
or similar provision that is enacted and deter-
mined to be exempt from taxation under the In-
ternal Revenue Code of 1986.’’. 
SEC. 4010. EXCLUDING RETIREMENT ACCOUNTS FROM 
COUNTABLE INCOME. 
Section (5)(g) of the of the Food Stamp Act of 1977 
(7 U.S.C. 2014(g)), as amended by section 4009, is 
amended— 
(1) in subsection (g)(2)(B)(v) by striking ‘‘or 
retirement account (including an individual ac-
count)’’ and inserting ‘‘account’’; and 
(2) adding at the end the following: 
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‘‘(8) EXCLUSION
OF
RETIREMENT
ACCOUNTS 
FROM COUNTABLE RESOURCES.— 
‘‘(A) MANDATORY EXCLUSIONS.—The Sec-
retary shall exclude from financial resources 
under this subsection the value of any funds in 
a plan, contract, or account as described in sec-
tion 401(a), 403(a), 403(b), 408, 408A, 457(b), 
or 501(c)(18) of the Internal Revenue Code of 
1986 and the value of funds in a Federal Thrift 
Savings Plan account as provided section 8439 
of title 5, United States Code. 
‘‘(B) DISCRETIONARY EXCLUSIONS.— 
‘‘(i) The Secretary may exclude from 
financial resources under this subsection 
any other retirement plans, contracts, or 
accounts that have been determined to be 
tax qualified retirement plans, contracts, 
or accounts, under the Internal Revenue 
Code of 1986. 
‘‘(ii) The Secretary may also exclude 
from financial resources under this sub-
section the value of any program or ac-
count included in any successor or similar 
provision that is enacted and determined to 
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be exempt from taxation under the Inter-
nal Revenue Code of 1986.’’. 
SEC. 4011. DEOBLIGATE FOOD STAMP COUPONS. 
(a) IN GENERAL.—Section 7 of the Food Stamp Act 
of 1977 (7 U.S.C. 2016) is amended— 
(1) by striking the section designation and 
heading and all that follows through ‘‘subsection (j)) 
shall be’’ and inserting the following: 
‘‘SEC. 7. ISSUANCE AND USE OF BENEFITS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(j), EBT cards shall be’’. 
(2) in subsection (b)— 
(A) by striking ‘‘(b) Coupons’’ and insert-
ing the following: 
‘‘(b) USE.—Benefits’’; and 
(B) by striking ‘‘: Provided further’’ and all 
that follows through ‘‘denominations issued’’; 
(3) in subsection (c)— 
(A) by striking ‘‘(c) Coupons’’ and insert-
ing the following: 
‘‘(c) DESIGN.— 
‘‘(1) IN GENERAL.—EBT cards’’; 
(B) in the 1st sentence by striking ‘‘and 
define their denomination’’; and 
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(C) by striking the 2d sentence and insert-
ing the following: 
‘‘(2) PROHIBITION.—The name of any public 
official shall not appear on any EBT card.’’; 
(4) by striking subsection (d); 
(5) in subsection (e)— 
(A) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’; and 
(B) by striking ‘‘coupon issuers’’ each 
place it appears and inserting ‘‘benefit issuers’’; 
(6) in subsection (f)— 
(A) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’; 
(B) by striking ‘‘coupon issuer’’ and insert-
ing ‘‘benefit issuer’’; and 
(C) by striking ‘‘section 11(e)(20)’’ and all 
that follows through the period and inserting 
‘‘section 11(e)(19).’’; 
(7) by amending subsection (g) to read as fol-
lows: 
‘‘(g) BENEFIT SYSTEM.— 
‘‘(1) COST.—The cost of documents or systems 
that may be required by subsection (i) may not be 
imposed upon a retail food store participating in the 
Secure Supplemental Nutrition Assistance Program. 
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‘‘(2) DEVALUATION
AND
TERMINATION
OF 
ISSUANCE OF PAPER COUPONS.— 
‘‘(A) COUPON
ISSUANCE.—Beginning on 
the effective date of this subsection, no State 
shall issue any coupon, stamp, certificate, or 
authorization card to a household that receives 
benefits under this Act. 
‘‘(B) EBT CARDS.—Beginning 1 year after 
the effective date of this subsection, only an 
EBT card issued under subsection (i) shall be 
eligible for exchange at any retail food store. 
‘‘(C) DE-OBLIGATION OF COUPONS.—Cou-
pons not redeemed in the 1-year period begin-
ning on the effective date of this subsection will 
no longer be an obligation of the Federal Gov-
ernment and shall not be redeemable.’’. 
(8) in subsection (h)(1) by striking ‘‘coupons’’ 
and inserting ‘‘benefits’’; 
(9) in subsection (j)— 
(A) in paragraph (2)(A)(ii) by striking 
‘‘printing, shipping, and redeeming coupons’’ 
and inserting ‘‘issuing and redeeming benefits’’; 
and 
(B) in paragraph (5) by striking ‘‘coupon’’ 
and inserting ‘‘benefit’’; and 
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(10) in subsection (k)— 
(A) by striking ‘‘coupons in the form of’’ 
each place it appears and inserting ‘‘benefits in 
the form of’’; and 
(B) by striking ‘‘a coupon issued in the 
form of’’ each place it appears and inserting 
‘‘benefits in the form of’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 3 of the Food Stamp Act of 1977 
(7 U.S.C. 2012) is amended— 
(A) in subsection (a) by striking ‘‘coupons’’ 
and inserting ‘‘benefits’’; 
(B) by amending subsection (b) to read as 
follows: 
‘‘(b) ‘Benefit’ means the value of assistance provided 
under this Act to a household by means of an electronic 
benefit transfer under section 7(i), or other means of pro-
viding assistance, as determined by the Secretary.’’; 
(C) in the 1st sentence of subsection (c) by 
striking ‘‘authorization cards’’ and inserting 
‘‘benefits’’; 
(D) in subsection (d) by striking ‘‘or ac-
cess device’’ and all that follows through ‘‘num-
ber’’; 
(E) in subsection (e)— 
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(i) by striking ‘‘coupon issuer’’ and in-
serting ‘‘benefit issuer’’; and 
(ii) by striking ‘‘coupons’’ and insert-
ing ‘‘benefits’’; 
(F) by inserting after subsection (f) the 
following: 
‘‘(f–1) EBT CARD.—The term ‘EBT card’ means an 
electronic benefit transfer card issued under section 7(i).’’; 
(G) in subsection (i)(5)(D) by striking 
‘‘coupons’’ and inserting ‘‘benefits’’; and 
(H) in subsection (t) by inserting ‘‘includ-
ing point of sale devices,’’ after ‘‘other means of 
access’’. 
(2) Section 4(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2013(a)) is amended— 
(A) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’; and 
(B) by striking ‘‘coupons issued’’ and in-
serting ‘‘benefits issued’’. 
(3) Section 5(i)(2)(E) of the Food Stamp Act 
of 1977 (7 U.S.C. 2014(i)(2)(E)) is amended by 
striking ‘‘, as defined in section 3(i) of this Act,’’. 
(4) Section 6(b)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(b)(1)) is amended— 
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(A) in subparagraph (B) by striking ‘‘cou-
pons or authorization cards’’ and inserting 
‘‘benefits’’; and 
(B) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’. 
(5) Section 7(j)(5) is amended by striking ‘‘cou-
pon’’ and inserting ‘‘benefit’’. 
(6) Section 8(b) of the Food Stamp Act of 
1977 (7 U.S.C. 2017(b)) is amended by striking ‘‘, 
whether through coupons, access devices, or other-
wise’’. 
(7) Section 9 of the Food Stamp Act of 1977 
(7 U.S.C. 2018) is amended— 
(A) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’; and 
(B) in subsection (a)— 
(i) in paragraph (1) by striking ‘‘cou-
pon’’ and inserting ‘‘benefit’’; and 
(ii) in paragraph (3) by striking ‘‘cou-
pons, or to redeem’’. 
(8) Section 10 of the Food Stamp Act of 1977 
(7 U.S.C. 2019) is amended— 
(A) by striking the section designation and 
heading and all that follows through ‘‘Regula-
tions’’ and inserting the following: 
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‘‘SEC. 10. REDEMPTION OF BENEFITS. 
‘‘Regulations’’; and 
(B) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’. 
(9) Section 11 of the Food Stamp Act of 1977 
(7 U.S.C. 2020) is amended— 
(A) in subsection (e)— 
(i) in paragraph (15) by striking 
‘‘when using its authorization card in order 
to receive its coupons’’ and inserting 
‘‘when receiving benefits’’; and 
(ii) in paragraph (19) by striking 
‘‘that,’’ and all that follows through ‘‘para-
graph;’’ and inserting ‘‘that eligible house-
holds may be required to present photo-
graphic identification cards in order to re-
ceive their benefits.’’; 
(B) in subsection (h) by striking ‘‘coupon 
or coupons’’ and inserting ‘‘benefits’’; 
(C) by striking ‘‘coupon’’ each place it ap-
pears and inserting ‘‘benefit’’; and 
(D) by striking ‘‘coupons’’ each place it 
appears and inserting ‘‘benefits’’. 
(10) Section 13 of the Food Stamp Act of 1977 
(7 U.S.C. 2022) is amended by striking ‘‘coupons’’ 
each place it appears and inserting ‘‘benefits’’. 
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(11) Section 15 of the Food Stamp Act of 1977 
(7 U.S.C. 2024) is amended— 
(A) in subsection (a) by striking ‘‘coupons’’ 
and inserting ‘‘benefits’’; 
(B) in subsection (b)(1)— 
(i) by striking ‘‘coupons’’ each place it 
appears and inserting ‘‘benefits’’; 
(ii) by striking ‘‘coupons or authoriza-
tion cards’’ and inserting ‘‘benefits’’; and 
(iii) by striking ‘‘access device’’ each 
place it appears and inserting ‘‘benefit’’; 
(C) in subsection (c) by striking ‘‘coupons’’ 
each place it appears and inserting ‘‘benefits’’; 
(D) in subsection (d) by striking ‘‘Cou-
pons’’ and inserting ‘‘Benefits’’; 
(E) in subsections (e) and (f) by striking 
‘‘coupon’’ each place it appears and inserting 
‘‘benefit’’; and 
(F) in subsection (g) by striking ‘‘coupon, 
authorization cards or access devices’’ and in-
serting ‘‘benefits’’; and 
(12) Section 16(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2025(a)) is amended by striking 
‘‘coupons’’ each place it appears and inserting ‘‘ben-
efits’’. 
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(13) Section 17 of the Food Stamp Act of 1977 
(7 U.S.C. 2026) is amended— 
(A) in subsection (a)(2) by striking ‘‘cou-
pon’’ and inserting ‘‘benefit’’; 
(B) in subsection (b)(1)— 
(i) in subparagraph (B)(v)— 
(I) by striking ‘‘countersigned 
food coupons or similar’’; and 
(II) by striking ‘‘food coupons’’ 
and inserting ‘‘EBT cards’’; and 
(ii) in subparagraph (C)(i)(I) by strik-
ing ‘‘coupons’’ and inserting ‘‘EBT cards’’; 
and 
(C) in subsection (j) by striking ‘‘coupon’’ 
and inserting ‘‘benefit’’. 
(14) Section 21 of the Food Stamp Act of 1977 
(7 U.S.C. 2030) is amended— 
(A) in subsection (d)(3)— 
(i) by striking ‘‘food coupons’’ and in-
serting ‘‘benefits’’; and 
(ii) by striking ‘‘food stamp benefits’’ 
and inserting ‘‘benefits’’. 
(15) Section 22 of the Food Stamp Act of 1977 
(7 U.S.C. 2031) is amended— 
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(A) by striking ‘‘food coupons’’ each place 
it appears and inserting ‘‘benefits’’; 
(B) by striking ‘‘coupons’’ each place it ap-
pears and inserting ‘‘benefits’’; and 
(C) in subsection (g)(1)(A) by striking 
‘‘coupon’’ and inserting ‘‘benefit’’. 
(c) REFERENCES
IN OTHER LAWS, DOCUMENTS, 
AND RECORDS OF THE UNITED STATES.—In any law (ex-
cluding the Food Stamp Act of 1977), regulation, rule, 
document, or record of the United States, a reference to 
‘‘coupon’’, ‘‘authorization card’’, or ‘‘other access device’’ 
as used in the Food Stamp Act of 1977 as in effect before 
the date of the enactment of this Act shall be deemed to 
be a reference to ‘‘benefit’’ as defined in such Act as in 
effect after the date of the enactment of this Act. 
SEC. 4012. ALLOW FOR THE ACCRUAL OF BENEFITS. 
Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 
2016(i)) is amended by adding at the end the following: 
‘‘(12) RECOVERING ELECTRONIC BENEFITS.— 
‘‘(A) A State agency may recover benefits 
from a household’s electronic benefits account 
because of inactivity in the account after the 
household has not accessed the account the 
lesser of— 
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‘‘(i) 3 months during which the ac-
count has continuously had a balance in 
excess of $1,000, adjusted for changes in 
the thrifty food plan since June 2007; or 
‘‘(ii) 12 months. 
‘‘(B) A household whose benefits are recov-
ered under subparagraph (A) shall receive no-
tice and shall have the benefits made available 
again upon a request made during a period of 
not less than 12 months after the recovery.’’. 
SEC. 4013. INCREASING THE MINIMUM BENEFIT. 
Section 8(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2017(a)) is amended by striking ‘‘$10 per month’’ 
and inserting ‘‘10 percent of the thrifty food plan for a 
household containing 1 member, as determined by the Sec-
retary under section 3(o)’’. 
SEC. 4014. STATE OPTION FOR TELEPHONIC SIGNATURE. 
Section 11(e)(2)(C) of the Food Stamp Act of 1977 
(7 U.S.C. 2020(e)(2)(C)) is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and 
(2) by adding at the end the following: 
‘‘(ii) A State agency may establish a sys-
tem by which an applicant household may sign 
an application through a recorded verbal assent 
over the telephone. Any such system shall— 
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‘‘(I) record for future reference the 
household member’s verbal assent and the 
information to which assent was given; 
‘‘(II) 
include 
effective 
safeguards 
against impersonation, identity theft, or in-
vasions of privacy; 
‘‘(III) not deny or interfere with the 
right of the household to apply in writing; 
‘‘(IV) promptly send the household 
member a written copy of the application, 
with instructions on a simple procedure for 
correcting any errors or omissions; 
‘‘(V) comply with paragraph (1)(B); 
‘‘(VI) satisfy all requirements for a 
signature on an application under this Act 
and other laws applicable to the Secure 
Supplemental Nutrition Assistance Pro-
gram, with the date on which the house-
hold member provides verbal assent effec-
tive as the date of application for all pur-
poses; and 
‘‘(VII) comply with such other stand-
ards as the Secretary may establish.’’. 
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SEC. 4015. REVIEW OF MAJOR CHANGES IN PROGRAM DE-
SIGN. 
(a) PROHIBITION.—Section 11(e)(6) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(e)(6)) is amended— 
(1) in subparagraph (A) by striking ‘‘and’’ at 
the end; 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) except as provided in section 5(h)(4), 
only State employees employed in accordance 
with the current standards for a Merit System 
of Personnel Administration, or any standards 
later prescribed by the Office of Personnel 
Management pursuant to section 208 of the 
Intergovernmental Personnel Act of 1970 (42 
U.S.C. 4728) modifying or superseding such 
standards relating to the establishment and 
maintenance of personnel standards on a merit 
basis, shall undertake such certifications and 
shall— 
‘‘(i) represent the State agency in any 
official communications with a prospective 
applicant, applicant, or recipient household 
regarding their application or participa-
tion, except that a nonprofit organization 
may assist a household under paragraph 
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(1) through activities allowable under sec-
tion 16(a)(4); 
‘‘(ii) participate in making any deter-
minations relating to a household’s sub-
stantive or procedural compliance with the 
requirements of this Act or implementing 
regulations, including the adequacy of the 
household’s application or of verification or 
other information the household has sub-
mitted in support of that application; or 
‘‘(iii) participate in making any other 
determinations required under this sub-
section; 
except that nothing in this subparagraph shall 
prevent a State agency from contracting for 
automated systems, issuance services or pro-
gram information activities reimbursed under 
paragraph (2), (3), (4), or (6) of section 16(a) 
or under section 16(g) or for assisting in the 
verification of an applicant’s identity; and 
‘‘(C) the State agency shall not use any 
Federal funds— 
‘‘(i) to implement, to perform, or to 
carry out any contract that does not com-
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ply with the requirements in effect under 
subparagraph (B); or 
‘‘(ii) to pay any cost associated with 
the termination, breach, or full or partial 
abrogation, of any contract that does not 
comply with the requirements in effect 
under such subparagraph;’’. 
(b) WAIVERS.—Section 17(b)(1)(B)(iv)(III)(ff) of the 
Food 
Stamp 
Act 
of 
1977 
(7 
U.S.C. 
2026(b)(1)(B)(iv)(III)(ff)) is amended by inserting ‘‘or 
11(e)(6)(B)’’ before the semicolon at the end. 
(c) PROJECTS.—Section 26(f)(3)(E) of the Food 
Stamp Act of 1977 (7 U.S.C. 2035(f)(3)(E)) is amended 
by inserting ‘‘(6)(B),’’ after ‘‘paragraphs’’. 
(d) DISASTERS.—Section 5(h) of the Food Stamp 
Act of 1977 (7 U.S.C. 2014(h)) is amended by inserting 
at the end: 
‘‘(4) The Secretary may authorize a state agen-
cy, on a temporary basis, to use employees or indi-
viduals that do not meet the standards prescribed 
under section 11(e)(6)(B) in order to determine eli-
gibility for a disaster food stamp program under this 
subsection.’’. 
(e) DISALLOWANCE OF FUNDS.—No funds shall be 
available under any appropriations act for implementing 
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or continuing any contract that does not comply with sec-
tion 11(e)(6)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(6)(B)) as amended by subsection (a) nor for any 
costs associated with the termination or full or partial ab-
rogation of such contract. 
(f) TRANSITION PERIOD.—Subsection (e) shall not 
apply to the costs of implementing, continuing, or renego-
tiating any contract concluded before January 1, 2007, 
(but shall apply to any costs associated with the termi-
nation or full or partial abrogation of such contract) until 
the first day of the first month beginning at least 120 
days after the date of enactment of this Act. 
SEC. 4016. GRANTS FOR SIMPLE APPLICATION AND ELIGI-
BILITY DETERMINATION SYSTEMS AND IM-
PROVED ACCESS TO BENEFITS. 
Section 11(t)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(t)(1)) is amended by striking ‘‘2007’’ and in-
serting ‘‘2012’’. 
SEC. 4017. CIVIL MONEY PENALTIES AND DISQUALIFICA-
TION OF RETAIL FOOD STORES AND WHOLE-
SALE FOOD CONCERNS. 
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 
2021) is amended— 
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(1) by striking the section heading and all that 
follows through ‘‘(a) Any approved’’, and inserting 
the following: 
‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION 
OF RETAIL FOOD STORES AND WHOLESALE 
FOOD CONCERNS. 
‘‘(a) DISQUALIFICATION.— 
‘‘(1) IN GENERAL.—An approved’’; 
(2) in subsection (a)— 
(A) in the 1st sentence by striking 
‘‘$10,000 for each violation’’ and all that fol-
lows through the period at the end, and insert-
ing ‘‘$100,000 for each violation.’’; and 
(B) in the 2d sentence— 
(i) by striking ‘‘Regulations’’ and in-
serting the following: 
‘‘(2) REGULATIONS.—Regulations’’; 
(ii) by striking ‘‘finding of a violation 
and the’’ and inserting ‘‘finding of a viola-
tion,’’; 
(iii) by inserting a comma after ‘‘dis-
qualification of’’; and 
(iv) by striking ‘‘a retail store’’ and 
inserting ‘‘and the assessment of a civil 
money penalty against, a retail store’’; 
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(3) in subsection (b)— 
(A) by striking ‘‘(b) Disqualification’’ and 
all that follows through ‘‘shall be—’’, and in-
serting the following: 
‘‘(b) PERIOD
OF DISQUALIFICATION.—Subject to 
subsection (c), a disqualification shall be—’’; 
(B) in paragraph (1) by striking ‘‘of no 
less than six months nor more than five years’’ 
and inserting ‘‘not to exceed 5 years’’; 
(C) in paragraph (2) by striking ‘‘of no 
less than twelve months nor more than ten 
years’’ and inserting ‘‘not to exceed 10 years’’; 
(D) in paragraph (3)— 
(i) in subparagraph (B)— 
(I) by striking ‘‘coupons or traf-
ficking in coupons or authorization 
cards’’ each place it appears, and in-
serting ‘‘program access devices or 
benefit instruments or trafficking in 
program access devices or benefit in-
struments’’; and 
(II) by inserting ‘‘or a finding of 
the unauthorized redemption, use, 
transfer, acquisition, alteration, or 
possession of benefits or access de-
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vices’’ after ‘‘concern’’ the 1st place it 
appears; 
(4) in paragraph (3)(C) by striking ‘‘and’’ at 
the end; 
(5) in subsection (c)— 
(A) by striking ‘‘(c) The action’’ and in-
serting the following: 
‘‘(c) TREATMENT OF DISQUALIFICATION AND PEN-
ALTY DETERMINATIONS.—The action’’; and 
(B) by striking ‘‘coupons’’ and inserting 
‘‘benefits’’; 
(6) in subsection (d) by striking ‘‘coupons’’ in 
each place it appears and inserting ‘‘benefits’’; 
(7) in subsection (f) by striking ‘‘food coupons’’ 
and inserting ‘‘benefits’’; 
(8) by redesignating subsections (c) through (g) 
as subsections (d) through (h), respectively; 
(9) inserting after subsection (b) the following: 
‘‘(c) In addition to a disqualification under subsection 
(b), the Secretary may assess a civil monetary penalty of 
up to $100,000;’’; and 
(10) by adding at the end: 
‘‘(i) The Secretary shall, in consultation with the In-
spector General of the Department of Agriculture, provide 
for procedures by which the processing of benefit redemp-
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tions for certain retail food stores and wholesale food con-
cerns may be immediately suspended pending administra-
tive action to disqualify such a store or concern. Under 
the procedures prescribed pursuant to this subsection, if 
the Secretary, in consultation with the Inspector General, 
determines that a retail food store or wholesale food con-
cern is engaged in flagrant violations of this Act or the 
regulations issued pursuant to this Act, unsettled benefits 
that have been redeemed by the retail food store or whole-
sale food concern may be suspended and, if the suspension 
is upheld, subject to forfeiture pursuant to section 12(g). 
If the disqualification action is not upheld, suspended 
funds held by the Secretary shall be released to such store 
or such concern. The Secretary shall not be liable for the 
value of any interest on funds suspended under this sub-
section.’’. 
SEC. 4018. MAJOR SYSTEMS FAILURES. 
Section 13(b) of the Food Stamp Act of 1977 (7 
U.S.C. 2022(b)) is amended by adding at the end the fol-
lowing: 
‘‘(5) OVER ISSUANCES CAUSED BY SYSTEMIC 
STATE ERRORS.— 
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State agency over issued benefits 
to a substantial number of households in a fis-
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cal year as a result of a major systemic error 
by the State agency, as determined by the Sec-
retary, the Secretary may prohibit the State 
agency from collecting these over issuances 
from some or all households. 
‘‘(B) PROCEDURES.— 
‘‘(i) INFORMATION
REPORTING
BY 
STATES.—Every State agency shall provide 
to the Secretary all information requested 
by the Secretary concerning the issuance of 
benefits to households by the State agency 
in the applicable fiscal year. 
‘‘(ii) FINAL
DETERMINATION.—After 
reviewing relevant information provided by 
a State agency, the Secretary shall make a 
final determination— 
‘‘(I) whether the State agency 
over issued benefits to a substantial 
number of households as a result of a 
systemic error in the applicable fiscal 
year; and 
‘‘(II) as to the amount of the 
over issuance in the applicable fiscal 
year for which the State agency is lia-
ble. 
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‘‘(iii) ESTABLISHING A CLAIM.—Upon 
determining under clause (ii) that a State 
agency has over issued benefits to house-
holds due to a major systemic error deter-
mined under subparagraph (A), the Sec-
retary shall establish a claim against the 
State agency equal to the value of the over 
issuance caused by the systemic error. 
‘‘(iv) ADMINISTRATIVE AND JUDICIAL 
REVIEW.—Administrative and judicial re-
view, as provided in section 14, shall apply 
to the final determinations by the Sec-
retary under clause (ii). 
‘‘(v) 
REMISSION
TO
THE
SEC-
RETARY.— 
‘‘(I) DETERMINATION
NOT
AP-
PEALED.—If the determination of the 
Secretary under clause (ii) is not ap-
pealed, the State agency shall, as soon 
as practicable, remit to the Secretary 
the dollar amount specified in the 
claim under clause (iii). 
‘‘(II) 
DETERMINATION
AP-
PEALED.—If the determination of the 
Secretary under clause (ii) is ap-
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pealed, upon completion of adminis-
trative and judicial review under 
clause (iv), and a finding of liability 
on the part of the State, the appealing 
State agency shall, as soon as prac-
ticable, remit to the Secretary a dollar 
amount subject to the finding of the 
administrative and judicial review. 
‘‘(vi) ALTERNATIVE METHOD OF COL-
LECTION.— 
‘‘(I) IN
GENERAL.—If a State 
agency fails to make a payment under 
clause (v) within a reasonable period 
of time, as determined by the Sec-
retary, the Secretary may reduce any 
amount due to the State agency under 
any other provision of this Act by the 
amount due. 
‘‘(II) ACCRUAL OF INTEREST.— 
During the period of time determined 
by the Secretary to be reasonable 
under subclause (I), interest in the 
amount owed shall not accrue. 
‘‘(vii) 
LIMITATION.—Any 
liability 
amount 
established 
under 
section 
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16(c)(1)(C) shall be reduced by the 
amount of the claim established under this 
subparagraph.’’. 
SEC. 4019. FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS. 
Section 16(h)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(h)(1)) is amended— 
(1) in subparagraph (A)(vii) by striking ‘‘fiscal 
years 2002 through 2007’’ and inserting ‘‘fiscal 
years 2008 through 2012’’; and 
(2) in subparagraph (E)(i) by striking ‘‘fiscal 
years 2002 through 2007’’ and inserting ‘‘fiscal 
years 2008 through 2012’’. 
SEC. 4020. REDUCTIONS IN PAYMENTS FOR ADMINISTRA-
TIVE COSTS. 
Section 16(k)(3) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(k)(3)) is amended— 
(1) in subparagraph (A) by striking ‘‘2007’’ 
and inserting ‘‘2012’’; and 
(2) in subparagraph (B)(ii) by striking ‘‘2007’’ 
and inserting ‘‘2012’’. 
SEC. 4021. CASH PAYMENT PILOT PROJECTS. 
Section 17(b)(1)(B)(vi) of the Food Stamp Act of 
1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by striking 
‘‘2007’’ and inserting ‘‘2012’’. 
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SEC. 4022. FINDINGS OF CONGRESS REGARDING SECURE 
SUPPLEMENTAL 
NUTRITION 
ASSISTANCE 
PROGRAM NUTRITION EDUCATION. 
(a) FINDINGS.—The Congress finds the following: 
(1) Nutrition education under the Food Stamp 
Act of 1977 plays an essential role in improving the 
dietary and physical activity practices of low-income 
Americans, helping to reduce food insecurity, pre-
vent obesity, and reduce the risks of chronic disease. 
(2) Expert bodies, such as the Institute of Med-
icine, indicate that dietary and physical activity be-
havior change is more likely to result from the com-
bined application of public health approaches and 
education than from individual education alone. 
(3) State programs are currently implementing 
such nutrition education using effective strategies, 
including direct education, group activities, and so-
cial marketing. 
(b) SUPPORT NUTRITION EDUCATION.—The Sec-
retary of Agriculture should support and encourage the 
most effective interventions for nutrition education under 
the Food Stamp Act of 1977, including public health ap-
proaches as well as traditional education, to increase the 
likelihood that recipients of Secure Supplemental Nutri-
tion Assistance benefits and those who are potentially eli-
gible for such benefits will choose diets and physical activ-
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ity practices consistent with the Dietary Guidelines for 
Americans. To promote the most effective implementation 
of publicly funded programs, State nutrition education ac-
tivities under the Food Stamp Act of 1977 should be co-
ordinated with other federally funded food assistance and 
public health programs and should leverage public/private 
partnerships to maximize resources and impact. 
SEC. 4023. NUTRITION EDUCATION AND PROMOTION INI-
TIATIVE TO ADDRESS OBESITY. 
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
2026) is amended by adding at the end the following: 
‘‘(k) NUTRITION EDUCATION AND PROMOTION INI-
TIATIVE TO ADDRESS OBESITY.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a demonstration program, to be known as the 
‘Initiative to Address Obesity Among Low-Income 
Americans’ (referred to in this subsection as the 
‘Initiative’), to develop and implement solutions to 
reduce obesity in the United States. 
‘‘(A) SELECTION.—The Secretary shall so-
licit and competitively select demonstration pro-
posals for strategies to address obesity among 
low-income Americans. 
‘‘(B) EVALUATION.—The effectiveness of 
these strategies shall be rigorously evaluated to 
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assess the impact on overweight and obesity 
among low-income persons and particularly chil-
dren, as well as the feasibility of replicating 
these programs in other locations. 
‘‘(C) DISSEMINATION.—Evaluation results 
shall be shared broadly to inform policy makers, 
service providers, other partners, and the public 
in order to promote wide use of successful 
strategies. 
‘‘(2) GRANTS.— 
‘‘(A) IN GENERAL.—In carrying out the 
Initiative, the Secretary may enter into com-
petitively awarded contracts or cooperative 
agreements with, or grants to, public or private 
organizations or agencies as defined by the Sec-
retary, for use in accordance with projects that 
meet the strategy goals of the Initiative. 
‘‘(B) APPLICATION.—To be eligible to re-
ceive a contract, cooperative agreement, or 
grant under this paragraph, an organization 
shall submit to the Secretary an application at 
such time, in such manner, and containing such 
information as the Secretary may require. 
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‘‘(C) SELECTION
CRITERIA.—Demonstra-
tion proposals shall be evaluated against pub-
licly disseminated criteria that include— 
‘‘(i) identification of a low-income tar-
get audience that corresponds to individ-
uals living in households with incomes at 
or below 185 percent of the poverty level; 
‘‘(ii) incorporation of a scientifically- 
based strategy that is designed to improve 
diet quality through more healthful food 
purchases, preparation, or consumption; 
‘‘(iii) a commitment to a demonstra-
tion plan that allows for a rigorous out-
come evaluation, including data collection; 
‘‘(iv) strategies to improve the nutri-
tional value of food served during school 
hours and during after-school hours; 
‘‘(v) innovative ways to provide sig-
nificant improvement to the health and 
wellness of children; 
‘‘(vi) other criteria, as determined by 
the Secretary. 
‘‘(D) USE OF FUNDS.— 
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‘‘(i) PROHIBITION.—Funds shall not 
be used for projects that limit the use of 
benefits. 
‘‘(ii) 
MONITORING
AND
EVALUA-
TION.—The Secretary may use funds pro-
vided for the Initiative to pay costs associ-
ated with monitoring, evaluation, and dis-
semination of the Initiative’s findings. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $10,000,000 for each of the fiscal 
years 2008 through 2012, except that no new grants 
may be made under this subsection after September 
30, 2012.’’. 
SEC. 4024. AUTHORIZATION OF APPROPRIATIONS. 
Section 18(a)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2027(a)(1)) is amended by striking ‘‘2003 through 
2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 4025. CONSOLIDATED BLOCK GRANTS FOR PUERTO 
RICO AND AMERICAN SAMOA. 
Section 19(a)(2)(A)(ii) of the Food Stamp Act of 
1977 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended in subpara-
graph (A)(ii) by striking ‘‘2007’’ and inserting ‘‘2012’’. 
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