(B) by striking ‘‘shall be requested’’ and
inserting ‘‘may be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION.—Notwithstand-
ing any other provision of law, in carrying out the food
stamp program, a State agency shall not be required to
use an income and eligibility or an immigration status ver-
ification system established under section 1137 of the So-
cial Security Act (42 U.S.C. 1320b–7).’’.
SEC. 1050. DISQUALIFICATION OF RETAILERS WHO INTEN-
TIONALLY SUBMIT FALSIFIED APPLICATIONS.
Section 12(b) of the Food Stamp Act of 1977 (7
U.S.C. 2021(b)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) for a reasonable period of time to be deter-
mined by the Secretary, including permanent dis-
qualification, on the knowing submission of an appli-
cation for the approval or reauthorization to accept
and redeem coupons that contains false information
about a substantive matter that was a part of the
application.’’.
SEC. 1051. DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021) is amended by adding at the end the following:
‘‘(g) DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED UNDER THE WIC PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this Act of an approved retail food store and
a wholesale food concern that is disqualified from
accepting benefits under the special supplemental
nutrition program for women, infants, and children
established under section 17 of the Child Nutrition
Act of 1966 (7 U.S.C. 1786).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same length of time
as the disqualification from the program re-
ferred to in paragraph (1);
‘‘(B) may begin at a later date than the
disqualification from the program referred to in
paragraph (1); and
‘‘(C) notwithstanding section 14, shall not
be subject to judicial or administrative review.’’.
SEC. 1052. COLLECTION OF OVERISSUANCES.
(a) COLLECTION OF OVERISSUANCES.—Section 13 of
the Food Stamp Act of 1977 (7 U.S.C. 2022) is amend-
ed—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) COLLECTION OF OVERISSUANCES.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, a State agency shall collect
any overissuance of coupons issued to a household
by—
‘‘(A) reducing the allotment of the house-
hold;
‘‘(B) withholding amounts from unemploy-
ment compensation from a member of the
household under subsection (c);
‘‘(C) recovering from Federal pay or a
Federal income tax refund under subsection
(d); or
‘‘(D) any other means.
‘‘(2) COST
EFFECTIVENESS.—Paragraph (1)
shall not apply if the State agency demonstrates to
the satisfaction of the Secretary that all of the
means referred to in paragraph (1) are not cost ef-
fective.
‘‘(3) MAXIMUM REDUCTION ABSENT FRAUD.—
If a household received an overissuance of coupons
without any member of the household being found
ineligible to participate in the program under section
6(b)(1) and a State agency elects to reduce the allot-
ment of the household under paragraph (1)(A), the
State agency shall not reduce the monthly allotment
of the household under paragraph (1)(A) by an
amount in excess of the greater of—
‘‘(A) 10 percent of the monthly allotment
of the household; or
‘‘(B) $10.
‘‘(4) PROCEDURES.—A State agency shall col-
lect an overissuance of coupons issued to a house-
hold under paragraph (1) in accordance with the re-
quirements established by the State agency for pro-
viding notice, electing a means of payment, and es-
tablishing a time schedule for payment.’’; and
(2) in subsection (d)—
(A) by striking ‘‘as determined under sub-
section (b) and except for claims arising from
an error of the State agency,’’ and inserting ‘‘,
as determined under subsection (b)(1),’’; and
(B) by inserting before the period at the
end the following: ‘‘or a Federal income tax re-
fund as authorized by section 3720A of title 31,
United States Code’’.
(b) CONFORMING AMENDMENTS.—Section 11(e)(8)
of the Act (7 U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘and excluding claims’’ and all
that follows through ‘‘such section’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘or a Federal income tax refund as
authorized by section 3720A of title 31, United
States Code’’.
(c) RETENTION RATE.—Section 16(a) of the Act (7
U.S.C. 2025(a)) is amended by striking ‘‘25 percent dur-
ing the period beginning October 1, 1990’’ and all that
follows through ‘‘error of a State agency’’ and inserting
the following: ‘‘25 percent of the overissuances collected
by the State agency under section 13, except those
overissuances arising from an error of the State agency’’.
SEC. 1053. AUTHORITY TO SUSPEND STORES VIOLATING
PROGRAM REQUIREMENTS PENDING ADMIN-
ISTRATIVE AND JUDICIAL REVIEW.
Section 14(a) of the Food Stamp Act of 1977 (7
U.S.C. 2023(a)) is amended—
(1) by redesignating the first through seven-
teenth sentences as paragraphs (1) through (17), re-
spectively; and
(2) by adding at the end the following:
‘‘(18) SUSPENSION
OF
STORES
PENDING
RE-
VIEW.—Notwithstanding any other provision of this
subsection, any permanent disqualification of a retail
food store or wholesale food concern under para-
graph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualifica-
tion. If the disqualification is reversed through ad-
ministrative or judicial review, the Secretary shall
not be liable for the value of any sales lost during
the disqualification period.’’.
SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLA-
TIONS.
(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD
STAMP TRAFFICKING.—The first sentence of section
15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g))
is amended by striking ‘‘or intended to be furnished’’.
(b) CRIMINAL FORFEITURE.—Section 15 of the Act
(7 U.S.C. 2024) is amended by adding at the end the fol-
lowing:
‘‘(h) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—In imposing a sentence on
a person convicted of an offense in violation of sub-
section (b) or (c), a court shall order, in addition to
any other sentence imposed under this subsection,
that the person forfeit to the United States all prop-
erty described in paragraph (2).
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All
property, real and personal, used in a transaction or
attempted transaction, to commit, or to facilitate the
commission of, a violation (other than a mis-
demeanor) of subsection (b) or (c), or proceeds
traceable to a violation of subsection (b) or (c), shall
be subject to forfeiture to the United States under
paragraph (1).
‘‘(3) INTEREST
OF
OWNER.—No interest in
property shall be forfeited under this subsection as
the result of any act or omission established by the
owner of the interest to have been committed or
omitted without the knowledge or consent of the
owner.
‘‘(4) PROCEEDS.—The proceeds from any sale
of forfeited property and any monies forfeited under
this subsection shall be used—
‘‘(A) first, to reimburse the Department of
Justice for the costs incurred by the Depart-
ment to initiate and complete the forfeiture pro-
ceeding;
‘‘(B) second, to reimburse the Department
of Agriculture Office of Inspector General for
any costs the Office incurred in the law enforce-
ment effort resulting in the forfeiture;
‘‘(C) third, to reimburse any Federal or
State law enforcement agency for any costs in-
curred in the law enforcement effort resulting
in the forfeiture; and
‘‘(D) fourth, by the Secretary to carry out
the approval, reauthorization, and compliance
investigations of retail stores and wholesale
food concerns under section 9.’’.
SEC. 1055. LIMITATION OF FEDERAL MATCH.
Section 16(a)(4) of the Food Stamp Act of 1977 (7
U.S.C. 2025(a)(4)) is amended by inserting after the
comma at the end the following: ‘‘but not including re-
cruitment activities,’’.
SEC. 1056. STANDARDS FOR ADMINISTRATION.
(a) IN GENERAL.—Section 16 of the Food Stamp Act
of 1977 (7 U.S.C. 2025) is amended by striking sub-
section (b).
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 11(g) of the
Act (7 U.S.C. 2020(g)) is amended by striking ‘‘the
Secretary’s standards for the efficient and effective
administration of the program established under sec-
tion 16(b)(1) or’’.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C.
2025(c)(1)(B)) is amended by striking ‘‘pursuant to
subsection (b)’’.
SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025), as amended by section 1056(a), is amended by in-
serting after subsection (a) the following:
‘‘(b) WORK SUPPLEMENTATION OR SUPPORT PRO-
GRAM.—
‘‘(1) DEFINITION OF WORK SUPPLEMENTATION
OR
SUPPORT
PROGRAM.—In this subsection, the
term ‘work supplementation or support program’
means a program under which, as determined by the
Secretary, public assistance (including any benefits
provided under a program established by the State
and the food stamp program) is provided to an em-
ployer to be used for hiring and employing a public
assistance recipient who was not employed by the
employer at the time the public assistance recipient
entered the program.
‘‘(2) PROGRAM.—A State agency may elect to
use an amount equal to the allotment that would
otherwise be issued to a household under the food
stamp program, but for the operation of this sub-
section, for the purpose of subsidizing or supporting
a job under a work supplementation or support pro-
gram established by the State.
‘‘(3) PROCEDURE.—If a State agency makes an
election under paragraph (2) and identifies each
household that participates in the food stamp pro-
gram that contains an individual who is participat-
ing in the work supplementation or support pro-
gram—
‘‘(A) the Secretary shall pay to the State
agency an amount equal to the value of the al-
lotment that the household would be eligible to
receive but for the operation of this subsection;
‘‘(B) the State agency shall expend the
amount received under subparagraph (A) in ac-
cordance with the work supplementation or sup-
port program in lieu of providing the allotment
that the household would receive but for the op-
eration of this subsection;
‘‘(C) for purposes of—
‘‘(i) sections 5 and 8(a), the amount
received under this subsection shall be ex-
cluded from household income and re-
sources; and
‘‘(ii) section 8(b), the amount received
under this subsection shall be considered to
be the value of an allotment provided to
the household; and
‘‘(D) the household shall not receive an al-
lotment from the State agency for the period
during which the member continues to partici-
pate in the work supplementation or support
program.
‘‘(4) OTHER WORK REQUIREMENTS.—No indi-
vidual shall be excused, by reason of the fact that
a State has a work supplementation or support pro-
gram, from any work requirement under section
6(d), except during the periods in which the individ-
ual is employed under the work supplementation or
support program.
‘‘(5) LENGTH
OF
PARTICIPATION.—A State
agency shall provide a description of how the public
assistance recipients in the program shall, within a
specific period of time, be moved from supplemented
or supported employment to employment that is not
supplemented or supported.
‘‘(6) DISPLACEMENT.—A work supplementation
or support program shall not displace the employ-
ment of individuals who are not supplemented or
supported.’’.
SEC. 1058. WAIVER AUTHORITY.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) in subparagraph (A)—
(A) by striking the second sentence; and
(B) by striking ‘‘benefits to eligible house-
holds, including’’ and inserting the following:
‘‘benefits to eligible households, and may waive
any requirement of this Act to the extent nec-
essary for the project to be conducted.
‘‘(B) PROJECT REQUIREMENTS.—
‘‘(i) PROGRAM GOAL.—The Secretary
may not conduct a project under subpara-
graph (A) unless the project is consistent
with the goal of the food stamp program of
providing food assistance to raise levels of
nutrition among low-income individuals.
‘‘(ii) PERMISSIBLE
PROJECTS.—The
Secretary may conduct a project under
subparagraph (A) to—
‘‘(I) improve program adminis-
tration;
‘‘(II) increase the self-sufficiency
of food stamp recipients;
‘‘(III) test innovative welfare re-
form strategies; and
‘‘(IV) allow greater conformity
with the rules of other programs than
would be allowed but for this para-
graph.
‘‘(iii) IMPERMISSIBLE
PROJECTS.—
The Secretary may not conduct a project
under subparagraph (A) that—
‘‘(I) involves the payment of the
value of an allotment in the form of
cash, unless the project was approved
prior to the date of enactment of this
subparagraph;
‘‘(II) 
substantially 
transfers
funds made available under this Act
to services or benefits provided pri-
marily through another public assist-
ance program; or
‘‘(III) is not limited to a specific
time period.
‘‘(iv) 
ADDITIONAL
INCLUDED
PROJECTS.—Pilot or experimental projects
may include’’.
SEC. 1059. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)), as amended by section 1058, is
amended by adding at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60
days after the date of receiving a request
for a waiver under subparagraph (A), the
Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and explains any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and explains the grounds for the de-
nial; or
‘‘(IV) requests clarification of the
waiver request.
‘‘(ii) FAILURE TO RESPOND.—If the
Secretary does not provide a response in
accordance with clause (i), the waiver shall
be considered approved, unless the ap-
proval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial
of a waiver request under clause (i)(III),
the Secretary shall provide a copy of the
waiver request and a description of the
reasons for the denial to the Committee on
Agriculture of the House of Representa-
tives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.’’.
SEC. 1060. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C.
2026) is amended by striking subsection (d) and inserting
the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN GENERAL.—Subject to the other
provisions of this subsection, a State may elect
to carry out an employment initiatives program
under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eli-
gible to carry out an employment initiatives
program under this subsection only if not less
than 50 percent of the households that received
food stamp benefits during the summer of 1993
also received benefits under a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) during the
summer of 1993.
‘‘(2) PROCEDURE.—
‘‘(A) IN
GENERAL.—A State that has
elected to carry out an employment initiatives
program under paragraph (1) may use amounts
equal to the food stamp allotments that would
otherwise be issued to a household under the
food stamp program, but for the operation of
this subsection, to provide cash benefits in lieu
of the food stamp allotments to the household
if the household is eligible under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay
to each State that has elected to carry out an
employment initiatives program under para-
graph (1) an amount equal to the value of the
allotment that each household would be eligible
to receive under this Act but for the operation
of this subsection.
‘‘(C) OTHER
PROVISIONS.—For purposes
of the food stamp program (other than this
subsection)—
‘‘(i) cash assistance under this sub-
section shall be considered to be an allot-
ment; and
‘‘(ii) each household receiving cash
benefits under this subsection shall not re-
ceive any other food stamp benefit for the
period for which the cash assistance is pro-
vided.
‘‘(D) 
ADDITIONAL
PAYMENTS.—Each
State that has elected to carry out an employ-
ment initiatives program under paragraph (1)
shall—
‘‘(i) increase the cash benefits pro-
vided to each household under this sub-
section to compensate for any State or
local sales tax that may be collected on
purchases of food by any household receiv-
ing cash benefits under this subsection, un-
less the Secretary determines on the basis
of information provided by the State that
the increase is unnecessary on the basis of
the limited nature of the items subject to
the State or local sales tax; and
‘‘(ii) pay the cost of any increase in
cash benefits required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligi-
ble to receive cash benefits under paragraph (2) if
an adult member of the household—
‘‘(A) has worked in unsubsidized employ-
ment for not less than the preceding 90 days;
‘‘(B) has earned not less than $350 per
month from the employment referred to in sub-
paragraph (A) for not less than the preceding
90 days;
‘‘(C)(i) is receiving benefits under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.); or
‘‘(ii) was receiving benefits under a State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) at
the time the member first received cash benefits
under this subsection and is no longer eligible
for the State program because of earned in-
come;
‘‘(D) is continuing to earn not less than
$350 per month from the employment referred
to in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu
of food stamp benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a
program under this subsection for 2 years shall pro-
vide to the Secretary a written evaluation of the im-
pact of cash assistance under this subsection. The
State agency, with the concurrence of the Secretary,
shall determine the content of the evaluation.’’.
SEC. 1061. REAUTHORIZATION.
The first sentence of section 18(a)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by
striking ‘‘1991 through 1997’’ and inserting ‘‘1996
through 2002’’.
SEC. 1062. SIMPLIFIED FOOD STAMP PROGRAM.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) is amended by adding at the end
the following:
‘‘SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM.
‘‘(a) DEFINITION OF FEDERAL COSTS.—In this sec-
tion, the term ‘Federal costs’ does not include any Federal
costs incurred under section 17.
‘‘(b) ELECTION.—Subject to subsection (d), a State
may elect to carry out a Simplified Food Stamp Program
(referred to in this section as a ‘Program’), statewide or
in a political subdivision of the State, in accordance with
this section.
‘‘(c) OPERATION OF PROGRAM.—If a State elects to
carry out a Program, within the State or a political sub-
division of the State—
‘‘(1) a household in which all members receive
assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) shall automatically be eligible to partici-
pate in the Program; and
‘‘(2) subject to subsection (f), benefits under
the Program shall be determined under rules and
procedures established by the State under—
‘‘(A) a State program funded under part A
of title IV of the Social Security Act (42 U.S.C.
601 et seq.);
‘‘(B) the food stamp program (other than
section 27); or
‘‘(C) a combination of a State program
funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) and the
food stamp program (other than section 27).
‘‘(d) APPROVAL OF PROGRAM.—
‘‘(1) STATE PLAN.—A State agency may not
operate a Program unless the Secretary approves a
State plan for the operation of the Program under
paragraph (2).
‘‘(2) APPROVAL OF PLAN.—The Secretary shall
approve any State plan to carry out a Program if
the Secretary determines that the plan—
‘‘(A) complies with this section; and
‘‘(B) contains sufficient documentation
that the plan will not increase Federal costs for
any fiscal year.
‘‘(e) INCREASED FEDERAL COSTS.—
‘‘(1) DETERMINATION.—During each fiscal
year and not later than 90 days after the end of
each fiscal year, the Secretary shall determine
whether a Program being carried out by a State
agency is increasing Federal costs under this Act
above the Federal costs incurred under the food
stamp program in operation in the State or political
subdivision of the State for the fiscal year prior to
the implementation of the Program, adjusted for any
changes in—
‘‘(A) participation;
‘‘(B) the income of participants in the food
stamp program that is not attributable to pub-
lic assistance; and
‘‘(C) the thrifty food plan under section
3(o).
‘‘(2) NOTIFICATION.—If the Secretary deter-
mines that the Program has increased Federal costs
under this Act for any fiscal year or any portion of
any fiscal year, the Secretary shall notify the State
not later than 30 days after the Secretary makes the
determination under paragraph (1).
‘‘(3) ENFORCEMENT.—
‘‘(A) CORRECTIVE
ACTION.—Not later
than 90 days after the date of a notification
under paragraph (2), the State shall submit a
plan for approval by the Secretary for prompt
corrective action that is designed to prevent the
Program from increasing Federal costs under
this Act.
‘‘(B) TERMINATION.—If the State does not
submit a plan under subparagraph (A) or carry
out a plan approved by the Secretary, the Sec-
retary shall terminate the approval of the State
agency operating the Program and the State
agency shall be ineligible to operate a future
Program.
‘‘(f) RULES AND PROCEDURES.—
‘‘(1) IN GENERAL.—In operating a Program, a
State or political subdivision of a State may follow
the rules and procedures established by the State or
political subdivision under a State program funded
under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) or under the food stamp
program.
‘‘(2) STANDARDIZED DEDUCTIONS.—In operat-
ing a Program, a State or political subdivision of a
State may standardize the deductions provided
under section 5(e). In developing the standardized
deduction, the State shall consider the work ex-
penses, dependent care costs, and shelter costs of
participating households.
‘‘(3) REQUIREMENTS.—In operating a Pro-
gram, a State or political subdivision shall comply
with the requirements of—
‘‘(A) subsections (a) through (g) of section
7;
‘‘(B) section 8(a) (except that the income
of a household may be determined under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.));
‘‘(C) subsection (b) and (d) of section 8;
‘‘(D) subsections (a), (c), (d), and (n) of
section 11;
‘‘(E) paragraphs (8), (12), (16), (18),
(20), (24), and (25) of section 11(e);
‘‘(F) section 11(e)(10) (or a comparable
requirement established by the State under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.)); and
‘‘(G) section 16.
‘‘(4) LIMITATION
ON
ELIGIBILITY.—Notwith-
standing any other provision of this section, a house-
hold may not receive benefits under this section as
a result of the eligibility of the household under a
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), unless
the Secretary determines that any household with in-
come above 130 percent of the poverty guidelines is
not eligible for the program.’’.
(b) STATE PLAN PROVISIONS.—Section 11(e) of the
Act (7 U.S.C. 2020(e)), as amended by sections 1020(b),
1028(b), and 1044, is amended by adding at the end the
following:
‘‘(25) if a State elects to carry out a Simplified
Food Stamp Program under section 26, the plans of
the State agency for operating the program, includ-
ing—
‘‘(A) the rules and procedures to be fol-
lowed by the State agency to determine food
stamp benefits;
‘‘(B) how the State agency will address the
needs of households that experience high shelter
costs in relation to the incomes of the house-
holds; and
‘‘(C) a description of the method by which
the State agency will carry out a quality control
system under section 16(c).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 8 of the Act (7 U.S.C. 2017), as
amended by section 1039, is amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Section 17 of the Act (7 U.S.C. 2026) is
amended—
(A) by striking subsection (i); and
(B) 
by 
redesignating 
subsections 
(j)
through (l) as subsections (i) through (k), re-
spectively.
SEC. 1063. STATE FOOD ASSISTANCE BLOCK GRANT.
(a) IN GENERAL.—The Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.), as amended by section 1062, is
amended by adding at the end the following:
‘‘SEC. 27. STATE FOOD ASSISTANCE BLOCK GRANT.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FOOD ASSISTANCE.—The term ‘food as-
sistance’ means assistance that may be used only to
obtain food, as defined in section 3(g).
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, Guam, and
the Virgin Islands of the United States.
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish a program to make grants to States in accordance
with this section to provide—
‘‘(1) food assistance to needy individuals and
families residing in the State; and
‘‘(2) funds for administrative costs incurred in
providing the assistance.
‘‘(c) ELECTION.—
‘‘(1) IN GENERAL.—A State may annually elect
to participate in the program established under sub-
section (b) if the State—
‘‘(A) has fully implemented an electronic
benefit transfer system that operates in the en-
tire State;
‘‘(B) has a payment error rate under sec-
tion 16(c) that is not more than 6 percent as
announced most recently by the Secretary; or
‘‘(C) has a payment error rate in excess of
6 percent and agrees to contribute non-Federal
funds for the fiscal year of the grant, for bene-
fits and administration of the State’s food as-
sistance program, the amount determined under
paragraph (2).
‘‘(2) STATE MANDATORY CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—In the case of a State
that elects to participate in the program under
paragraph (1)(C), the State shall agree to con-
tribute, for a fiscal year, an amount equal to—
‘‘(i) the benefits issued in the State;
multiplied by
‘‘(ii) the payment error rate of the
State; minus
‘‘(B)(i) the benefits issued in the State;
multiplied by
‘‘(ii) 6 percent.
‘‘(B) DETERMINATION.—Notwithstanding
sections 13 and 14, the calculation of the con-
tribution shall be based solely on the determina-
tion of the Secretary of the payment error rate.
‘‘(C) DATA.—For purposes of implement-
ing subparagraph (A) for a fiscal year, the Sec-
retary shall use the data for the most recent
fiscal year available.
‘‘(3) ELECTION LIMITATION.—
‘‘(A) RE-ENTERING
FOOD
STAMP
PRO-
GRAM.—A State that elects to participate in the
program under paragraph (1) may in a subse-
quent year decline to elect to participate in the
program and instead participate in the food
stamp program in accordance with the other
sections of this Act.
‘‘(B) LIMITATION.—Subsequent to re-en-
tering the food stamp program under subpara-
graph (A), the State shall only be eligible to
participate in the food stamp program in ac-
cordance with the other sections of this Act and
shall not be eligible to elect to participate in the
program established under subsection (b).
‘‘(4) PROGRAM EXCLUSIVE.—
‘‘(A) IN GENERAL.—A State that is par-
ticipating in the program established under sub-
section (b) shall not be subject to, or receive
any benefit under, this Act except as provided
in this section.
‘‘(B) CONTRACT WITH FEDERAL GOVERN-
MENT.—Nothing in this section shall prohibit a
State from contracting with the Federal Gov-
ernment for the provision of services or mate-
rials necessary to carry out a program under
this section.
‘‘(d) LEAD AGENCY.—A State desiring to receive a
grant under this section shall designate, in an application
submitted to the Secretary under subsection (e)(1), an ap-
propriate State agency responsible for the administration
of the program under this section as the lead agency.
‘‘(e) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive
assistance under this section, a State shall prepare
and submit to the Secretary an application at such
time, in such manner, and containing such informa-
tion as the Secretary shall by regulation require, in-
cluding—
‘‘(A) an assurance that the State will com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (3); and
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (3).
‘‘(2) ANNUAL PLAN.—The State plan contained
in the application under paragraph (1) shall be sub-
mitted for approval annually.
‘‘(3) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall
identify the lead agency.
‘‘(B) USE OF BLOCK GRANT FUNDS.—The
State plan shall provide that the State shall use
the amounts provided to the State for each fis-
cal year under this section—
‘‘(i) to provide food assistance to
needy individuals and families residing in
the State, other than residents of institu-
tions who are ineligible for food stamps
under section 3(i); and
‘‘(ii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) GROUPS
SERVED.—The State plan
shall describe how and to what extent the pro-
gram will serve specific groups of individuals
and families and how the treatment will differ
from treatment under the food stamp program
under the other sections of this Act of the indi-
viduals and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) migrants or seasonal farm-
workers;
‘‘(iii) homeless individuals and fami-
lies;
‘‘(iv) individuals and families who live
in institutions eligible under section 3(i);
‘‘(v) individuals and families with
earnings; and
‘‘(vi) members of Indian tribes or trib-
al organizations.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—
The State plan shall provide that benefits under
this section shall be available throughout the
entire State.
‘‘(E) NOTICE AND HEARINGS.—The State
plan shall provide that an individual or family
who applies for, or receives, assistance under
this section shall be provided with notice of, and
an opportunity for a hearing on, any action
under this section that adversely affects the in-
dividual or family.
‘‘(F) ASSESSMENT OF NEEDS.—The State
plan shall assess the food and nutrition needs
of needy persons residing in the State.
‘‘(G) ELIGIBILITY STANDARDS.—The State
plan shall describe the income, resource, and
other eligibility standards that are established
for the receipt of assistance under this section.
‘‘(H) DISQUALIFICATION OF FLEEING FEL-
ONS.—The State plan shall provide for the dis-
qualification of any individual who would be
disqualified from participating in the food
stamp program under section 6(k).
‘‘(I) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall estab-
lish a system for the exchange of information
with other States to verify the identity and re-
ceipt of benefits by recipients.
‘‘(J) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use
and disclosure of information about any individ-
ual or family receiving assistance under this
section.
‘‘(K) OTHER
INFORMATION.—The State
plan shall contain such other information as
may be required by the Secretary.
‘‘(4) APPROVAL OF APPLICATION AND PLAN.—
The Secretary shall approve an application and
State plan that satisfies the requirements of this
section.
‘‘(f) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO
ASSISTANCE.—Nothing in this section—
‘‘(1) entitles any individual or family to assist-
ance under this section; or
‘‘(2) limits the right of a State to impose addi-
tional limitations or conditions on assistance under
this section.
‘‘(g) BENEFITS FOR ALIENS.—
‘‘(1) ELIGIBILITY.—No individual who is an
alien shall be eligible to receive benefits under a
State plan approved under subsection (e)(4) if the
individual is not eligible to participate in the food
stamp program due to the alien status of the indi-
vidual.
‘‘(2) INCOME.—The State plan shall provide
that the income of an alien shall be determined in
accordance with section 5(i).
‘‘(h) EMPLOYMENT AND TRAINING.—
‘‘(1) WORK REQUIREMENTS.—No individual or
household shall be eligible to receive benefits under
a State plan funded under this section if the individ-
ual or household is not eligible to participate in the
food stamp program under subsection (d) or (o) of
section 6.
‘‘(2) WORK PROGRAMS.—Each State shall im-
plement an employment and training program in ac-
cordance with the terms and conditions of section
6(d)(4) for individuals under the program and shall
be eligible to receive funding under section 16(h).
‘‘(i) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor
State compliance with this section and the State
plan approved under subsection (e)(4).
‘‘(2) NONCOMPLIANCE.—
‘‘(A) IN GENERAL.—If the Secretary, after
reasonable notice to a State and opportunity for
a hearing, finds that—
‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (e)(4); or
‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section;
the Secretary shall notify the State of the find-
ing and that no further grants will be made to
the State under this section (or, in the case of
noncompliance in the operation of a program or
activity, that no further grants to the State will
be made with respect to the program or activ-
ity) until the Secretary is satisfied that there is
no longer any failure to comply or that the non-
compliance will be promptly corrected.
‘‘(B) OTHER PENALTIES.—In the case of a
finding of noncompliance made pursuant to
subparagraph (A), the Secretary may, in addi-
tion to, or in lieu of, imposing the penalties de-
scribed in subparagraph (A), impose other ap-
propriate penalties, including recoupment of
money improperly expended for purposes pro-
hibited or not authorized by this section and
disqualification from the receipt of financial as-
sistance under this section.
‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional penalty being imposed
under subparagraph (B).
‘‘(3) ISSUANCE
OF
REGULATIONS.—The Sec-
retary shall establish by regulation procedures for—
100
‘‘(A) receiving, processing, and determin-
ing the validity of complaints made to the Sec-
retary concerning any failure of a State to com-
ply with the State plan or any requirement of
this section; and
‘‘(B) imposing penalties under this section.
‘‘(j) GRANT.—
‘‘(1) IN GENERAL.—For each fiscal year, the
Secretary shall pay to a State that has an applica-
tion approved by the Secretary under subsection
(e)(4) an amount that is equal to the grant of the
State under subsection (m) for the fiscal year.
‘‘(2) METHOD OF GRANT.—The Secretary shall
make a grant to a State for a fiscal year under this
section by issuing 1 or more letters of credit for the
fiscal year, with necessary adjustments on account
of overpayments or underpayments, as determined
by the Secretary.
‘‘(3) SPENDING OF GRANTS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a grant to a State deter-
mined under subsection (m)(1) for a fiscal year
may be expended by the State only in the fiscal
year.
101
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of a grant determined under
subsection (m)(1) for a fiscal year to provide
assistance under this section in subsequent fis-
cal years, except that the reserved funds may
not exceed 30 percent of the total grant re-
ceived under this section for a fiscal year.
‘‘(4) FOOD ASSISTANCE AND ADMINISTRATIVE
EXPENDITURES.—In each fiscal year, not more than
6 percent of the Federal and State funds required
to be expended by a State under this section shall
be used for administrative expenses.
‘‘(5) PROVISION
OF
FOOD
ASSISTANCE.—A
State may provide food assistance under this section
in any manner determined appropriate by the State,
such as electronic benefit transfer limited to food
purchases, coupons limited to food purchases, or di-
rect provision of commodities.
‘‘(k) QUALITY CONTROL.—Each State participating
in the program established under this section shall main-
tain a system in accordance with, and shall be subject to
section 16(c), including sanctions and eligibility for incen-
tive payment under section 16(c), adjusted for State spe-
cific characteristics under regulations issued by the Sec-
retary.
102
‘‘(l) NONDISCRIMINATION.—
‘‘(1) IN
GENERAL.—The Secretary shall not
provide financial assistance for any program,
project, or activity under this section if any person
with responsibilities for the operation of the pro-
gram, project, or activity discriminates with respect
to the program, project, or activity because of race,
religion, color, national origin, sex, or disability.
‘‘(2) ENFORCEMENT.—The powers, remedies,
and procedures set forth in title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) may
be used by the Secretary to enforce paragraph (1).
‘‘(m) GRANT CALCULATION.—
‘‘(1) STATE GRANT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 for each fiscal year,
the Secretary shall provide a grant to each
State participating in the program established
under this section an amount that is equal to
the sum of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(I) the total dollar value of all
benefits issued under the food stamp
103
program established under this Act by
the State during fiscal year 1994; or
‘‘(II) the average per fiscal year
of the total dollar value of all benefits
issued under the food stamp program
by the State during each of fiscal
years 1992 through 1994; and
‘‘(ii) the greater of, as determined by
the Secretary—
‘‘(I) the total amount received by
the State for administrative costs
under section 16(a) (not including any
adjustment under section 16(c)) for
fiscal year 1994; or
‘‘(II) the average per fiscal year
of the total amount received by the
State for administrative costs under
section 16(a) (not including any ad-
justment under section 16(c)) for each
of fiscal years 1992 through 1994.
‘‘(B) INSUFFICIENT FUNDS.—If the Sec-
retary finds that the total amount of grants to
which States would otherwise be entitled for a
fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available
104
to provide the grants for the fiscal year, the
Secretary shall reduce the grants made to
States under this subsection, on a pro rata
basis, to the extent necessary.
‘‘(2) REDUCTION.—The Secretary shall reduce
the grant of a State by the amount a State has
agreed to contribute under subsection (c)(1)(C).’’.
(b) EMPLOYMENT AND TRAINING FUNDING.—Sec-
tion 16(h) of the Act (7 U.S.C. 2025(a)), as amended by
section 1027(d)(2), is amended by adding at the end the
following:
‘‘(6) BLOCK GRANT STATES.—Each State elect-
ing to operate a program under section 27 shall—
‘‘(A) receive the greater of—
‘‘(i) the total dollar value of the funds
received under paragraph (1) by the State
during fiscal year 1994; or
‘‘(ii) the average per fiscal year of the
total dollar value of all funds received
under paragraph (1) by the State during
each of fiscal years 1992 through 1994;
and
‘‘(B) be eligible to receive funds under
paragraph (2), within the limitations in section
6(d)(4)(K).’’.
105
(c) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—Section 17 of the Act (7 U.S.C.
2026), as amended by section 1062(c)(2), is amended by
adding at the end the following:
‘‘(l) RESEARCH ON OPTIONAL STATE FOOD ASSIST-
ANCE BLOCK GRANT.—The Secretary may conduct re-
search on the effects and costs of a State program carried
out under section 27.’’.
SEC. 1064. A STUDY OF THE USE OF FOOD STAMPS TO PUR-
CHASE VITAMINS AND MINERALS.
The Secretary of Agriculture shall, in consultation
with the National Academy of Sciences and the Center for
Disease Control and Prevention, conduct a study of the
use of food stamps to purchase vitamins and minerals.
The study shall include an analysis of scientific findings
on the efficacy of and need for vitamins and minerals, in-
cluding the adequacy of vitamin and mineral intake in low
income populations, as shown by existing research and
surveys, and the potential value of nutritional supplements
in filling nutrient gaps that may exist in the population
as a whole or in vulnerable subgroups in the U.S. popu-
lation; the impact of nutritional improvements (including
vitamin or mineral supplementation) on health status and
health care costs for women of childbearing age, pregnant
or lactating women, and the elderly; the cost of vitamin
106
and mineral supplements commercially available; the pur-
chasing habits of low income populations with regard to
vitamins and minerals; the impact on the food purchases
of low income households; and the economic impact on ag-
ricultural commodities. The Secretary shall report the re-
sults of the study to the Committee on Agriculture of the
U.S. House of Representatives not later than December
15, 1996.’’.
SEC. 1065. INVESTIGATIONS.
Section 12(a) of the Food Stamp Act of 1977 (7
U.S.C. 2021(a)) is amended by adding at the end the fol-
lowing:
‘‘Regulations issued pursuant to this Act shall provide cri-
teria for the finding of violations and the suspension or
disqualification of a retail food store or wholesale food con-
cern on the basis of evidence which may include, but is
not limited to, facts established through on-site investiga-
tions, inconsistent redemption data or evidence obtained
through transaction reports under electronic benefit trans-
fer systems.’’.
SEC. 1066. FOOD STAMP ELIGIBILITY.
Section 6(f) of the Food Stamp Act of 1977 (7
U.S.C. 2015(f)) is amended by striking the third sentence
and inserting the following:
107
‘‘The State agency shall, at its option, consider either all
income and financial resources of the individual rendered
ineligible to participate in the food stamp program under
this subsection, or such income, less a pro rata share, and
the financial resources of the ineligible individual, to deter-
mine the eligibility and the value of the allotment of the
household of which such individual is a member.’’.
SEC. 1067. REPORT BY THE SECRETARY.
The Secretary of Agriculture may report to the Com-
mittee on Agriculture of the House of Representatives, not
later than January 1, 2000, on the effect of the food
stamp reforms in the Welfare and Medicaid Reform Act
of 1996 and the ability of State and local governments
to deal with people in poverty. The report must answer
the question: ‘‘Did people become more personally respon-
sible and were work opportunities provided such that pov-
erty in America is better managed?’’.
SEC. 1068. DEFICIT REDUCTION.
It is the sense of the Committee on Agriculture of
the House of Representatives that reductions in outlays
resulting from this title shall not be taken into account
for purposes of section 552 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
108
Subtitle B—Commodity
Distribution Programs
SEC. 1071. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) DEFINITIONS.—Section 201A of the Emergency
Food Assistance Act of 1983 (Public Law 98–8; 7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 201A. DEFINITIONS.
‘‘In this Act:
‘‘(1) ADDITIONAL
COMMODITIES.—The term
‘additional commodities’ means commodities made
available under section 214 in addition to the com-
modities made available under sections 202 and
203D.
‘‘(2) AVERAGE MONTHLY NUMBER OF UNEM-
PLOYED
PERSONS.—The term ‘average monthly
number of unemployed persons’ means the average
monthly 
number 
of 
unemployed
persons in each State in the most recent fiscal year
for which information concerning the number of un-
employed persons is available, as determined by the
Bureau of Labor Statistics of the Department of
Labor.
‘‘(3) ELIGIBLE RECIPIENT AGENCY.—The term
‘eligible recipient agency’ means a public or non-
profit organization—
109
‘‘(A) that administers—
‘‘(i) an emergency feeding organiza-
tion;
‘‘(ii) a charitable institution (including
a hospital and a retirement home, but ex-
cluding a penal institution) to the extent
that the institution serves needy persons;
‘‘(iii) a summer camp for children, or
a child nutrition program providing food
service;
‘‘(iv) a nutrition project operating
under the Older Americans Act of 1965
(42 U.S.C. 3001 et seq.), including a
project that operates a congregate nutri-
tion site and a project that provides home-
delivered meals; or
‘‘(v) a disaster relief program;
‘‘(B) that has been designated by the ap-
propriate State agency, or by the Secretary;
and
‘‘(C) that has been approved by the Sec-
retary for participation in the program estab-
lished under this Act.
‘‘(4) EMERGENCY
FEEDING
ORGANIZATION.—
The term ‘emergency feeding organization’ means a
110
public or nonprofit organization that administers ac-
tivities and projects (including the activities and
projects of a charitable institution, a food bank, a
food pantry, a hunger relief center, a soup kitchen,
or a similar public or private nonprofit eligible recip-
ient agency) providing nutrition assistance to relieve
situations of emergency and distress through the
provision of food to needy persons, including low-in-
come and unemployed persons.
‘‘(5) FOOD
BANK.—The term ‘food bank’
means a public or charitable institution that main-
tains an established operation involving the provision
of food or edible commodities, or the products of
food or edible commodities, to food pantries, soup
kitchens, hunger relief centers, or other food or feed-
ing centers that, as an integral part of their normal
activities, provide meals or food to feed needy per-
sons on a regular basis.
‘‘(6) FOOD PANTRY.—The term ‘food pantry’
means a public or private nonprofit organization
that distributes food to low-income and unemployed
households, including food from sources other than
the Department of Agriculture, to relieve situations
of emergency and distress.
111
‘‘(7) POVERTY LINE.—The term ‘poverty line’
has the same meaning given the term in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2)).
‘‘(8) SOUP KITCHEN.—The term ‘soup kitchen’
means a public or charitable institution that, as an
integral part of the normal activities of the institu-
tion, maintains an established feeding operation to
provide food to needy homeless persons on a regular
basis.
‘‘(9) TOTAL VALUE OF ADDITIONAL COMMOD-
ITIES.—The term ‘total value of additional commod-
ities’ means the actual cost of all additional com-
modities made available under section 214 that are
paid by the Secretary (including the distribution and
processing costs incurred by the Secretary).
‘‘(10) VALUE
OF
ADDITIONAL
COMMODITIES
ALLOCATED TO EACH STATE.—The term ‘value of
additional commodities allocated to each State’
means the actual cost of additional commodities
made available under section 214 and allocated to
each State that are paid by the Secretary (including
the distribution and processing costs incurred by the
Secretary).’’.
112
(b) STATE PLAN.—Section 202A of the Act (7 U.S.C.
612c note) is amended to read as follows:
‘‘SEC. 202A. STATE PLAN.
‘‘(a) IN GENERAL.—To receive commodities under
this Act, a State shall submit a plan of operation and ad-
ministration every 4 years to the Secretary for approval.
The plan may be amended at any time, with the approval
of the Secretary.
‘‘(b) REQUIREMENTS.—Each plan shall—
‘‘(1) designate the State agency responsible for
distributing the commodities received under this Act;
‘‘(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this Act;
‘‘(3) set forth the standards of eligibility for re-
cipient agencies; and
‘‘(4) set forth the standards of eligibility for in-
dividual or household recipients of commodities,
which shall require—
‘‘(A) individuals or households to be com-
prised of needy persons; and
‘‘(B) individual or household members to
be residing in the geographic location served by
the distributing agency at the time of applying
for assistance.
113
‘‘(c) STATE ADVISORY BOARD.—The Secretary shall
encourage each State receiving commodities under this Act
to establish a State advisory board consisting of represent-
atives of all interested entities, both public and private,
in the distribution of commodities received under this Act
in the State.’’.
(c) AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE FUNDS.—Section 204(a)(1) of the Act (7
U.S.C. 612c note) is amended—
(1) in the first sentence by striking ‘‘for State
and local’’ and all that follows through ‘‘under this
title’’ and inserting ‘‘to pay for the direct and indi-
rect administrative costs of the State related to the
processing, transporting, and distributing to eligible
recipient agencies of commodities provided by the
Secretary under this Act and commodities secured
from other sources’’; and
(2) by striking the fourth sentence.
(d) DELIVERY OF COMMODITIES.—Section 214 of the
Act (7 U.S.C. 612c note) is amended—
(1) by striking subsections (a) through (e) and
(j);
(2) by redesignating subsections (f) through (i)
as subsections (a) through (d), respectively;
114
(3) in subsection (b), as redesignated by para-
graph (2)—
(A) in the first sentence, by striking ‘‘sub-
section (f) or subsection (j) if applicable,’’ and
inserting ‘‘subsection (a)’’; and
(B) in the second sentence, by striking
‘‘subsection (f)’’ and inserting ‘‘subsection (a)’’;
(4) by striking subsection (c), as redesignated
by paragraph (2), and inserting the following:
‘‘(c) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Commodities made avail-
able for each fiscal year under this section shall be
delivered at reasonable intervals to States based on
the grants calculated under subsection (a), or reallo-
cated under subsection (b), before December 31 of
the following fiscal year.
‘‘(2) ENTITLEMENT.—Each State shall be enti-
tled to receive the value of additional commodities
determined under subsection (a).’’; and
(5) in subsection (d), as redesignated by para-
graph (2), by striking ‘‘or reduce’’ and all that fol-
lows through ‘‘each fiscal year’’.
(e) TECHNICAL AMENDMENTS.—The Act (7 U.S.C.
612c note) is amended—
115
(1) in the first sentence of section 203B(a), by
striking ‘‘203 and 203A of this Act’’ and inserting
‘‘203A’’;
(2) in section 204(a), by striking ‘‘title’’ each
place it appears and inserting ‘‘Act’’;
(3) in the first sentence of section 210(e), by
striking ‘‘(except as otherwise provided for in section
214(j))’’; and
(4) by striking section 212.
(f) REPORT ON EFAP.—Section 1571 of the Food
Security Act of 1985 (Public Law 99–198; 7 U.S.C. 612c
note) is repealed.
(g) AVAILABILITY
OF COMMODITIES UNDER
THE
FOOD STAMP PROGRAM.—The Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.), as amended by sections 1062 and
1063, is amended by adding at the end the following:
‘‘SEC. 28. AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.
‘‘(a) PURCHASE OF COMMODITIES.—From amounts
appropriated under this Act, for each of fiscal years 1997
through 2002, the Secretary shall purchase $300,000,000
of a variety of nutritious and useful commodities of the
types that the Secretary has the authority to acquire
through the Commodity Credit Corporation or under sec-
tion 32 of the Act entitled ‘An Act to amend the Agricul-
116
tural Adjustment Act, and for other purposes’, approved
August 24, 1935 (7 U.S.C. 612c), and distribute the com-
modities to States for distribution in accordance with sec-
tion 214 of the Emergency Food Assistance Act of 1983
(Public Law 98–8; 7 U.S.C. 612c note).
‘‘(b) BASIS FOR COMMODITY PURCHASES.—In pur-
chasing commodities under subsection (a), the Secretary
shall, to the extent practicable and appropriate, make pur-
chases based on—
‘‘(1) agricultural market conditions;
‘‘(2) preferences and needs of States and dis-
tributing agencies; and
‘‘(3) preferences of recipients.’’.
(h) EFFECTIVE DATE.—The amendments made by
subsection (d) shall become effective on October 1, 1996.
SEC. 1072. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 1073. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C. 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
117
SEC. 1074. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
Subtitle C—Electronic Benefit
Transfer Systems
SEC. 1091. PROVISIONS TO ENCOURAGE ELECTRONIC BEN-
EFIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION
GENERALLY.—The dis-
closures, protections, responsibilities, and rem-
edies established under this title, and any regu-
lation prescribed or order issued by the Board
in accordance with this title, shall not apply to
any electronic benefit transfer program estab-
118
lished under State or local law or administered
by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
consumer account held by the recipient of the
benefit.
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as—
‘‘(i) affecting or altering the protec-
tions otherwise applicable with respect to
benefits established by Federal, State, or
local law; or
‘‘(ii) otherwise superseding the appli-
cation of any State or local law.
‘‘(D) ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this
paragraph, the term ‘electronic benefit transfer
program’—
‘‘(i) means a program under which a
government agency distributes needs-tested
benefits by establishing accounts to be
accessed by recipients electronically, such
119
as through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include employment-re-
lated payments, including salaries and pen-
sion, retirement, or unemployment benefits
established by Federal, State, or local gov-
ernments.’’.
TITLE II—COMMITTEE ON
COMMERCE
SEC. 2000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 2000. Table of contents.
Subtitle A—Involvement of Commerce Committee in Federal Government
Position Reductions
Sec. 2001. Involvement of Commerce Committee in Federal government posi-
tion reductions.
Subtitle B—Restricting Public Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS
Sec. 2101. Aliens who are not qualified aliens ineligible for Federal public bene-
fits.
Sec. 2102. Five-year limited eligibility of qualified aliens for Federal means-
tested public benefit.
Sec. 2103. Notification.
CHAPTER 2—GENERAL PROVISIONS
Sec. 2111. Definitions.
Sec. 2112. Verification of eligibility for Federal public benefits.
Subtitle C—Energy Assistance
Sec. 2201. Energy assistance.
Subtitle D—Abstinence Education
Sec. 2301. Abstinence education.
120
Subtitle A—Involvement of Com-
merce Committee in Federal
Government 
Position 
Reduc-
tions
SEC. 2001. INVOLVEMENT OF COMMERCE COMMITTEE IN
FEDERAL GOVERNMENT POSITION REDUC-
TIONS.
In any provision of law that provides for consultation
with (or a report to) a relevant committee of Congress
respecting reductions in Federal Government positions, a
reference to the Committee on Commerce of the House
of Representatives shall be deemed to have been made in
relation to matters within the jurisdiction of such Commit-
tee.
Subtitle B—Restricting Public
Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL
BENEFITS
SEC. 2101. ALIENS WHO ARE NOT QUALIFIED ALIENS INELI-
GIBLE FOR FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is not a qualified alien (as defined in section
2111) is not eligible for any Federal public benefit (as de-
fined in subsection (c)).
121
(b) EXCEPTIONS.—Subsection (a) shall not apply
with respect to the following Federal public benefits:
(1) Emergency medical services under title XIX
of the Social Security Act.
(2)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if the
Secretary of Health and Human Services determines
that it is necessary to prevent the spread of such
disease.
(c) FEDERAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal public ben-
efit’’ means—
(A) any grant, contract, loan, professional
license, or commercial license provided by an
agency of the United States or by appropriated
funds of the United States; and
(B) any retirement, welfare, health, dis-
ability, or any other similar benefit for which
payments or assistance are provided to an indi-
vidual, household, or family eligibility unit by
an agency of the United States or by appro-
priated funds of the United States,
122
but only if such grant, contract, loan, or license
under subparagraph (A) or program providing bene-
fits under subparagraph (B) is under the jurisdic-
tion of the Committee on Commerce of the House of
Representatives.
(2) Such term shall not apply—
(A) to any contract, professional license, or
commercial license for a nonimmigrant whose
visa for entry is related to such employment in
the United States; or
(B) with respect to benefits for an alien
who as a work authorized nonimmigrant or as
an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality
Act qualified for such benefits and for whom
the United States under reciprocal treaty agree-
ments is required to pay benefits, as determined
by the Attorney General, after consultation with
the Secretary of State.
SEC. 2102. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED
ALIENS FOR FEDERAL MEANS-TESTED PUB-
LIC BENEFIT.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is a qualified alien (as defined in section 2111)
123
and who enters the United States on or after the date
of the enactment of this Act is not eligible for any Federal
means-tested public benefit (as defined in subsection (c))
for a period of five years beginning on the date of the
alien’s entry into the United States with a status within
the meaning of the term ‘‘qualified alien’’.
(b) EXCEPTIONS.—The limitation under subsection
(a) shall not apply to the following aliens:
(1) 
EXCEPTION
FOR
REFUGEES
AND
ASYLEES.—
(A) An alien who is admitted to the United
States as a refugee under section 207 of the
Immigration and Nationality Act.
(B) An alien who is granted asylum under
section 208 of such Act.
(C) An alien whose deportation is being
withheld under section 243(h) of such Act.
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—
An alien who is lawfully residing in any State and
is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge and not
on account of alienage,
124
(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
(c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE-
FINED.—
(1) Except as provided in paragraph (2), for
purposes of this part, the term ‘‘Federal means-test-
ed public benefit’’ means a Federal public benefit
described in section 2101(c) in which the eligibility
of an individual, household, or family eligibility unit
for benefits, or the amount of such benefits, or both
are determined on the basis of income, resources, or
financial need of the individual, household, or unit.
(2) Such term does not include the following:
(A) Emergency medical services under title
XIX of the Social Security Act.
(B)(i) Public health assistance for immuni-
zations.
(ii) Public health assistance for testing and
treatment of a serious communicable disease if
the Secretary of Health and Human Services
125
determines that it is necessary to prevent the
spread of such disease.
SEC. 2103. NOTIFICATION.
Each Federal agency that administers a program to
which section 2101 or 2102 applies shall, directly or
through the States, post information and provide general
notification to the public and to program recipients of the
changes regarding eligibility for any such program pursu-
ant to this subpart.
CHAPTER 2—GENERAL PROVISIONS
SEC. 2111. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this part, the terms used in this part have the same mean-
ing given such terms in section 101(a) of the Immigration
and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this part,
the term ‘‘qualified alien’’ means an alien who, at the time
the alien applies for, receives, or attempts to receive a
Federal public benefit, is—
(1) an alien who is lawfully admitted for perma-
nent residence under the Immigration and National-
ity Act,
(2) an alien who is granted asylum under sec-
tion 208 of such Act,
126
(3) a refugee who is admitted to the United
States under section 207 of such Act,
(4) an alien who is paroled into the United
States under section 212(d)(5) of such Act for a pe-
riod of at least 1 year,
(5) an alien whose deportation is being withheld
under section 243(h) of such Act, or
(6) an alien who is granted conditional entry
pursuant to section 203(a)(7) of such Act as in ef-
fect prior to April 1, 1980.
SEC. 2112. VERIFICATION OF ELIGIBILITY FOR FEDERAL
PUBLIC BENEFITS.
(a) IN GENERAL.—Not later than 18 months after
the date of the enactment of this Act, the Attorney Gen-
eral of the United States, after consultation with the Sec-
retary of Health and Human Services, shall promulgate
regulations requiring verification that a person applying
for a Federal public benefit (as defined in section
2101(c)), to which the limitation under section 2101 ap-
plies, is a qualified alien and is eligible to receive such
benefit. Such regulations shall, to the extent feasible, re-
quire that information requested and exchanged be similar
in form and manner to information requested and ex-
changed under section 1137 of the Social Security Act.
127
(b) STATE COMPLIANCE.—Not later than 24 months
after the date the regulations described in subsection (a)
are adopted, a State that administers a program that pro-
vides a Federal public benefit shall have in effect a ver-
ification system that complies with the regulations.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out the purpose of this section.
Subtitle C—Energy Assistance
SEC. 2201. ENERGY ASSISTANCE.
Section 2605(f) of the Low-Income Home Energy As-
sistance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(1) by striking ‘‘(f)(1) Notwithstanding’’ and
inserting ‘‘(f) Notwithstanding’’; and
(2) by striking paragraph (2).
Subtitle D—Abstinence Education
SEC. 2301. ABSTINENCE EDUCATION.
(a) INCREASES IN FUNDING.—Section 501(a) of the
Social Security Act (42 U.S.C. 701(a)) is amended in the
matter preceding paragraph (1) by striking ‘‘Fiscal year
1990 and each fiscal year thereafter’’ and inserting ‘‘Fis-
cal years 1990 through 1995 and $761,000,000 for fiscal
year 1996 and each fiscal year thereafter’’.
(b) ABSTINENCE EDUCATION.—Section 501(a)(1) of
such Act (42 U.S.C. 701(a)(1)) is amended—
128
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by adding ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) to provide abstinence education, and
at the option of the State, where appropriate,
mentoring, counseling, and adult supervision to
promote abstinence from sexual activity, with a
focus on those groups which are most likely to
bear children out-of-wedlock.’’.
(c) ABSTINENCE
EDUCATION
DEFINED.—Section
501(b) of such Act (42 U.S.C. 701(b)) is amended by add-
ing at the end the following new paragraph:
‘‘(5) ABSTINENCE EDUCATION.—For purposes
of this subsection, the term ‘abstinence education’
means an educational or motivational program
which—
‘‘(A) has as its exclusive purpose, teaching
the social, psychological, and health gains to be
realized by abstaining from sexual activity;
‘‘(B) teaches abstinence from sexual activ-
ity outside marriage as the expected standard
for all school age children;
129
‘‘(C) teaches that abstinence from sexual
activity is the only certain way to avoid out-of-
wedlock pregnancy, sexually transmitted dis-
eases, and other associated health problems;
‘‘(D) teaches that a mutually faithful
monogamous relationship in context of marriage
is the expected standard of human sexual activ-
ity;
‘‘(E) teaches that sexual activity outside of
the context of marriage is likely to have harm-
ful psychological and physical effects;
‘‘(F) teaches that bearing children out-of-
wedlock is likely to have harmful consequences
for the child, the child’s parents, and society;
‘‘(G) teaches young people how to reject
sexual advances and how alcohol and drug use
increases vulnerability to sexual advances; and
‘‘(H) teaches the importance of attaining
self-sufficiency before engaging in sexual activ-
ity.’’.
(d) SET-ASIDE.—
(1) IN GENERAL.—Section 502(c) of such Act
(42 U.S.C. 702(c)) is amended in the matter preced-
ing paragraph (1) by striking ‘‘From’’ and inserting
‘‘Except as provided in subsection (e), from’’.
130
(2) SET-ASIDE.—Section 502 of such Act (42
U.S.C. 702) is amended by adding at the end the
following new subsection:
‘‘(e) Of the amounts appropriated under section
501(a) for any fiscal year, the Secretary shall set aside
$75,000,000 for abstinence education in accordance with
section 501(a)(1)(E).’’.
TITLE III—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 3001. SHORT TITLE.
This title may be cited as the ‘‘Personal Responsibil-
ity and Work Opportunity Act of 1996’’.
SEC. 3002. TABLE OF CONTENTS.
The table of contents of this title is as follows:
Sec. 3001. Short title.
Sec. 3002. Table of contents.
Subtitle A—Child Care
Sec. 3101. Short title and references.
Sec. 3102. Goals.
Sec. 3103. Authorization of appropriations and entitlement authority.
Sec. 3104. Lead agency.
Sec. 3105. Application and plan.
Sec. 3106. Limitation on State allotments.
Sec. 3107. Activities to improve the quality of child care.
Sec. 3108. Repeal of early childhood development and before- and after-school
care requirement.
Sec. 3109. Administration and enforcement.
Sec. 3110. Payments.
Sec. 3111. Annual report and audits.
Sec. 3112. Report by the Secretary.
Sec. 3113. Allotments.
Sec. 3114. Definitions.
Sec. 3115. Repeals.
Sec. 3116. Effective date.
131
Subtitle B—Child Nutrition Programs
CHAPTER 1—NATIONAL SCHOOL LUNCH ACT
Sec. 3201. State disbursement to schools.
Sec. 3202. Nutritional and other program requirements.
Sec. 3203. Free and reduced price policy statement.
Sec. 3204. Special assistance.
Sec. 3205. Miscellaneous provisions and definitions.
Sec. 3206. Summer food service program for children.
Sec. 3207. Commodity distribution.
Sec. 3208. Child care food program.
Sec. 3209. Pilot projects.
Sec. 3210. Reduction of paperwork.
Sec. 3211. Information on income eligibility.
Sec. 3212. Nutrition guidance for child nutrition programs.
Sec. 3213. Information clearinghouse.
CHAPTER 2—CHILD NUTRITION ACT OF 1966
Sec. 3221. Special milk program.
Sec. 3222. Free and reduced price policy statement.
Sec. 3223. School breakfast program authorization.
Sec. 3224. State administrative expenses.
Sec. 3225. Regulations.
Sec. 3226. Prohibitions.
Sec. 3227. Miscellaneous provisions and definitions.
Sec. 3228. Accounts and records.
Sec. 3229. Special supplemental nutrition program for women, infants, and
children.
Sec. 3230. Cash grants for nutrition education.
Sec. 3231. Nutrition education and training.
CHAPTER 3—MISCELLANEOUS PROVISIONS
Sec. 3241. Coordination of school lunch, school breakfast, and summer food
service programs.
Subtitle C—Related Provisions
Sec. 3301. Requirement that data relating to the incidence of poverty in the
United States be published at least every 2 years.
Sec. 3302. Sense of the Congress.
Sec. 3303. Legislative accountability.
Subtitle A—Child Care
SEC. 3101. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Child Care and Development Block Grant Amendments
of 1996’’.
132
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
SEC. 3102. GOALS.
Section 658A (42 U.S.C. 9801 note) is amended—
(1) in the section heading by inserting ‘‘AND
GOALS’’ after ‘‘TITLE’’;
(2) by inserting ‘‘(a) SHORT TITLE.—’’ before
‘‘This’’; and
(3) by adding at the end the following:
‘‘(b) GOALS.—The goals of this subchapter are—
‘‘(1) to allow each State maximum flexibility in
developing child care programs and policies that best
suit the needs of children and parents within such
State;
‘‘(2) to promote parental choice to empower
working parents to make their own decisions on the
child care that best suits their family’s needs;
‘‘(3) to encourage States to provide consumer
education information to help parents make in-
formed choices about child care;
133
‘‘(4) to assist States to provide child care to
parents trying to achieve independence from public
assistance; and
‘‘(5) to assist States in implementing the
health, safety, licensing, and registration standards
established in State regulations.’’.
SEC. 3103. AUTHORIZATION OF APPROPRIATIONS AND EN-
TITLEMENT AUTHORITY.
(a) IN GENERAL.—Section 658B (42 U.S.C. 9858)
is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subchapter $1,000,000,000 for each of the fiscal
years 1996 through 2002.’’.
(b) SOCIAL SECURITY ACT.—Part A of title IV of
the Social Security Act (42 U.S.C. 601–617) is amended
by adding at the end the following new section:
‘‘SEC. 418. FUNDING FOR CHILD CARE.
‘‘(a) GENERAL CHILD CARE ENTITLEMENT.—
‘‘(1) GENERAL ENTITLEMENT.—Subject to the
amount appropriated under paragraph (3), each
State shall, for the purpose of providing child care
assistance, be entitled to payments under a grant
under this subsection for a fiscal year in an amount
equal to—
134
‘‘(A) the sum of the total amount required
to be paid to the State under section 403 for
fiscal year 1994 or 1995 (whichever is greater)
with respect to amounts expended for child care
under section—
‘‘(i) 402(g) of this Act (as such sec-
tion was in effect before October 1, 1995);
and
‘‘(ii) 402(i) of this Act (as so in ef-
fect); or
‘‘(B) the average of the total amounts re-
quired to be paid to the State for fiscal years
1992 through 1994 under the sections referred
to in subparagraph (A);
whichever is greater.
‘‘(2) REMAINDER.—
‘‘(A) GRANTS.—The Secretary shall use
any amounts appropriated for a fiscal year
under paragraph (3), and remaining after the
reservation described in paragraph (4) and
after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
‘‘(B) AMOUNT.—Subject to subparagraph
(C), the amount of a grant awarded to a State
for a fiscal year under this paragraph shall be
135
based on the formula used for determining the
amount of Federal payments to the State under
section 403(n) (as such section was in effect be-
fore October 1, 1995).
‘‘(C) MATCHING REQUIREMENT.—The Sec-
retary shall pay to each eligible State in a fiscal
year an amount, under a grant under subpara-
graph (A), equal to the Federal medical assist-
ance percentage for such State for fiscal year
1995 (as defined in section 1905(b)) of so
much of the expenditures by the State for child
care in such year as exceed the State set-aside
for such State under paragraph (1)(A) for such
year and the amount of State expenditures in
fiscal year 1994 or 1995 (whichever is greater)
that equal the non-Federal share for the pro-
grams described in subparagraph (A) of para-
graph (1).
‘‘(D) REDISTRIBUTION.—
‘‘(i) IN
GENERAL.—With respect to
any fiscal year, if the Secretary determines
(in accordance with clause (ii)) that
amounts under any grant awarded to a
State under this paragraph for such fiscal
year will not be used by such State during
136
such fiscal year for carrying out the pur-
pose for which the grant is made, the Sec-
retary shall make such amounts available
in the subsequent fiscal year for carrying
out such purpose to 1 or more States
which apply for such funds to the extent
the Secretary determines that such States
will be able to use such additional amounts
for carrying out such purpose. Such avail-
able amounts shall be redistributed to a
State pursuant to section 402(i) (as such
section was in effect before October 1,
1995) by substituting ‘the number of chil-
dren residing in all States applying for
such funds’ for ‘the number of children re-
siding in the United States in the second
preceding fiscal year’.
‘‘(ii) TIME OF DETERMINATION AND
DISTRIBUTION.—The determination of the
Secretary under clause (i) for a fiscal year
shall be made not later than the end of the
first quarter of the subsequent fiscal year.
The redistribution of amounts under clause
(i) shall be made as close as practicable to
the date on which such determination is
137
made. Any amount made available to a
State from an appropriation for a fiscal
year in accordance with this subparagraph
shall, for purposes of this part, be re-
garded as part of such State’s payment (as
determined under this subsection) for the
fiscal year in which the redistribution is
made.
‘‘(3) APPROPRIATION.—For grants under this
section, there are appropriated—
‘‘(A) $1,967,000,000 for fiscal year 1997;
‘‘(B) $2,067,000,000 for fiscal year 1998;
‘‘(C) $2,167,000,000 for fiscal year 1999;
‘‘(D) $2,367,000,000 for fiscal year 2000;
‘‘(E) $2,567,000,000 for fiscal year 2001;
and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN TRIBES.—The Secretary shall re-
serve not more than 1 percent of the aggregate
amount appropriated to carry out this section in
each fiscal year for payments to Indian tribes and
tribal organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Amounts received by a
State under this section shall only be used to provide
138
child care assistance. Amounts received by a State
under a grant under subsection (a)(1) shall be avail-
able for use by the State without fiscal year limita-
tion.
‘‘(2) USE
FOR
CERTAIN
POPULATIONS.—A
State shall ensure that not less than 70 percent of
the total amount of funds received by the State in
a fiscal year under this section are used to provide
child care assistance to families who are receiving
assistance under a State program under this part,
families who are attempting through work activities
to transition off of such assistance program, and
families who are at risk of becoming dependent on
such assistance program.
‘‘(c) APPLICATION OF CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT of 1990.—Notwithstanding any
other provision of law, amounts provided to a State under
this section shall be transferred to the lead agency under
the Child Care and Development Block Grant Act of 1990,
integrated by the State into the programs established by
the State under such Act, and be subject to requirements
and limitations of such Act.
‘‘(d) DEFINITION.—As used in this section, the term
‘State’ means each of the 50 States or the District of Co-
lumbia.’’.
139
SEC. 3104. LEAD AGENCY.
Section 658D(b) (42 U.S.C. 9858b(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘State’’ the first place that such appears and
inserting ‘‘governmental or nongovernmental’’;
and
(B) in subparagraph (C), by inserting
‘‘with sufficient time and Statewide distribution
of the notice of such hearing,’’ after ‘‘hearing in
the State’’; and
(2) in paragraph (2), by striking the second
sentence.
SEC. 3105. APPLICATION AND PLAN.
Section 658E (42 U.S.C. 9858c) is amended—
(1) in subsection (b)—
(A) by striking ‘‘implemented—’’ and all
that follows through ‘‘(2)’’ and inserting ‘‘im-
plemented’’; and
(B) by striking ‘‘for subsequent State
plans’’;
(2) in subsection (c)—
(A) in paragraph (2)—
(i) in subparagraph (A)—
140
(I) in clause (i) by striking ‘‘,
other than through assistance pro-
vided under paragraph (3)(C),’’; and
(II) by striking ‘‘except’’ and all
that follows through ‘‘1992’’, and in-
serting ‘‘and provide a detailed de-
scription of the procedures the State
will implement to carry out the re-
quirements of this subparagraph’’;
(ii) in subparagraph (B)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of such procedures’’;
(iii) in subparagraph (C)—
(I) by striking ‘‘Provide assur-
ances’’ and inserting ‘‘Certify’’; and
(II) by inserting before the pe-
riod at the end ‘‘and provide a de-
tailed description of how such record
is maintained and is made available’’;
(iv) by amending subparagraph (D) to
read as follows:
141
‘‘(D) CONSUMER
EDUCATION
INFORMA-
TION.—Certify that the State will collect and
disseminate to parents of eligible children and
the general public, consumer education informa-
tion that will promote informed child care
choices.’’;
(v) in subparagraph (E), to read as
follows:
‘‘(E) COMPLIANCE WITH STATE LICENSING
REQUIREMENTS.—
‘‘(i) IN
GENERAL.—Certify that the
State has in effect licensing requirements
applicable to child care services provided
within the State, and provide a detailed de-
scription of such requirements and of how
such requirements are effectively enforced.
Nothing in the preceding sentence shall be
construed to require that licensing require-
ments be applied to specific types of pro-
viders of child care services.
‘‘(ii) INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—In lieu of any licensing
and regulatory requirements applicable
under State and local law, the Secretary,
in consultation with Indian tribes and trib-
149
under this paragraph if the State uses sampling
methods to collect such information.
‘‘(2) BIANNUAL REPORTS.—Not later than De-
cember 31, 1997, and every 6 months thereafter, a
State described in paragraph (1)(A) shall prepare
and submit to the Secretary a report that includes
aggregate data concerning—
‘‘(A) the number of child care providers
that received funding under this subchapter as
separately identified based on the types of pro-
viders listed in section 658P(5);
‘‘(B) the monthly cost of child care serv-
ices, and the portion of such cost that is paid
for with assistance provided under this sub-
chapter, listed by the type of child care services
provided;
‘‘(C) the number of payments made by the
State through vouchers, contracts, cash, and
disregards under public benefit programs, listed
by the type of child care services provided;
‘‘(D) the manner in which consumer edu-
cation information was provided to parents and
the number of parents to whom such informa-
tion was provided; and
513
cy that receives information from the Secretary pur-
suant to this section shall reimburse the Secretary
for costs incurred by the Secretary in furnishing the
information, at rates which the Secretary determines
to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining,
and comparing the information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In-
formation in the Federal Parent Locator Service, and in-
formation resulting from comparisons using such informa-
tion, shall not be used or disclosed except as expressly pro-
vided in this section, subject to section 6103 of the Inter-
nal Revenue Code of 1986.
‘‘(m) INFORMATION INTEGRITY
AND SECURITY.—
The Secretary shall establish and implement safeguards
with respect to the entities established under this section
designed to—
‘‘(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service;
and
‘‘(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
persons, and restrict use of such information to au-
thorized purposes.
527
(A) by striking ‘‘PRIOR’’ and inserting
‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘includ-
ing the duration of current payments and other
obligations of support’’ before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears
under’’ after ‘‘enforce’’; and
(13) by adding at the end the following new
subsection:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is
no individual contestant or child residing in the issuing
State, the party or support enforcement agency seeking
to modify, or to modify and enforce, a child support order
issued in another State shall register that order in a State
with jurisdiction over the nonmovant for the purpose of
modification.’’.
SEC. 4323. ADMINISTRATIVE ENFORCEMENT IN INTER-
STATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 4315 and 4317(a) of this Act, is amended by in-
serting after paragraph (13) the following new paragraph: