103
amount of such undistributed child support and the aver-
age length of time it takes for such child support to be
distributed. To the extent the Secretary deems appro-
priate, the Secretary shall include in the report rec-
ommendations as to whether additional procedures should
be established at the State or Federal level to expedite
the payment of undistributed child support.
SEC. 406. USE OF NEW HIRE INFORMATION TO ASSIST IN
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS.
(a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j))
is amended by adding at the end the following:
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.—
‘‘(A) IN GENERAL.—If a State agency re-
sponsible for the administration of an unem-
ployment compensation program under Federal
or State law transmits to the Secretary the
name and social security account number of an
individual, the Secretary shall, if the informa-
tion in the National Directory of New Hires in-
dicates that the individual may be employed,
disclose to the State agency the name, address,
and employer identification number of any pu-
104
tative employer of the individual, subject to this
paragraph.
‘‘(B) CONDITION
ON
DISCLOSURE.—The
Secretary shall make a disclosure under sub-
paragraph (A) only to the extent that the Sec-
retary determines that the disclosure would not
interfere with the effective operation of the pro-
gram under this part.
‘‘(C) USE
OF
INFORMATION.—A State
agency may use information provided under this
paragraph only for purposes of administering a
program referred to in subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2003.
SEC. 407. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL.
(a) IN GENERAL.—Section 452(k)(1) (42 U.S.C.
652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting
‘‘$2,500’’.
(b) CONFORMING AMENDMENT.—Section 454(31)
(42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and
inserting ‘‘$2,500’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2003.
105
SEC. 408. USE OF TAX REFUND INTERCEPT PROGRAM TO
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS.
(a) IN GENERAL.—Section 464 (42 U.S.C. 664) is
amended—
(1) in subsection (a)(2)(A), by striking ‘‘(as
that term is defined for purposes of this paragraph
under subsection (c))’’; and
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) Except as pro-
vided in paragraph (2), as used in’’ and in-
serting ‘‘In’’; and
(ii) by inserting ‘‘(whether or not a
minor)’’ after ‘‘a child’’ each place it ap-
pears; and
(B) by striking paragraphs (2) and (3).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2004.
SEC. 409. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS.
(a) IN
GENERAL.—Section 459(h) (42 U.S.C.
659(h)) is amended—
106
(1) in paragraph (1)(A)(ii)(V), by striking all
that follows ‘‘Armed Forces’’ and inserting a semi-
colon; and
(2) by adding at the end the following:
‘‘(3) LIMITATIONS
WITH
RESPECT
TO
COM-
PENSATION PAID TO VETERANS FOR SERVICE-CON-
NECTED DISABILITIES.—Notwithstanding any other
provision of this section:
‘‘(A) Compensation described in paragraph
(1)(A)(ii)(V) shall not be subject to withholding
pursuant to this section—
‘‘(i) for payment of alimony; or
‘‘(ii) for payment of child support if
the individual is fewer than 60 days in ar-
rears in payment of the support.
‘‘(B) Not more than 50 percent of any
payment of compensation described in para-
graph (1)(A)(ii)(V) may be withheld pursuant
to this section.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2004.
SEC. 410. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES.
Section 3716(h)(3) of title 31, United States Code,
is amended to read as follows:
107
‘‘(3) In applying this subsection with respect to any
debt owed to a State, other than past due support being
enforced by the State, subsection (c)(3)(A) shall not apply.
Subsection (c)(3)(A) shall apply with respect to past due
support being enforced by the State notwithstanding any
other provision of law, including sections 207 and
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and
1383(d)(1)), section 413(b) of Public law 91–173 (30
U.S.C. 923(b)), and section 14 of the Act of August 29,
1935 (45 U.S.C. 231m).’’.
SEC. 411. MAINTENANCE OF TECHNICAL ASSISTANCE
FUNDING.
Section 452(j) (42 U.S.C. 652(j)) is amended by in-
serting ‘‘or the amount appropriated under this paragraph
for fiscal year 2002, whichever is greater,’’ before ‘‘which
shall be available’’.
SEC. 412. MAINTENANCE OF FEDERAL PARENT LOCATOR
SERVICE FUNDING.
Section 453(o) (42 U.S.C. 653(o)) is amended—
(1) in the 1st sentence, by inserting ‘‘or the
amount appropriated under this paragraph for fiscal
year 2002, whichever is greater,’’ before ‘‘which
shall be available’’; and
(2) in the 2nd sentence, by striking ‘‘for each
of fiscal years 1997 through 2001’’.
108
TITLE V—CHILD WELFARE
SEC. 501. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 502. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘not more than 10’’.
SEC. 503. ELIMINATION OF LIMITATION ON NUMBER OF
STATES THAT MAY BE GRANTED WAIVERS TO
CONDUCT DEMONSTRATION PROJECTS ON
SAME TOPIC.
Section 1130 (42 U.S.C. 1320a–9) is amended by
adding at the end the following:
‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY
BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR
DEMONSTRATION PROJECTS.—The Secretary shall not
refuse to grant a waiver to a State under this section on
the grounds that a purpose of the waiver or of the dem-
onstration project for which the waiver is necessary would
be the same as or similar to a purpose of another waiver
or project that is or may be conducted under this sec-
tion.’’.
109
SEC. 504. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS THAT MAY BE GRANTED TO A SIN-
GLE STATE FOR DEMONSTRATION PROJECTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED
TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON-
DUCTED BY, A SINGLE STATE.—The Secretary shall not
impose any limit on the number of waivers that may be
granted to a State, or the number of demonstration
projects that a State may be authorized to conduct, under
this section.’’.
SEC. 505. STREAMLINED PROCESS FOR CONSIDERATION OF
AMENDMENTS TO AND EXTENSIONS OF DEM-
ONSTRATION PROJECTS REQUIRING WAIV-
ERS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION
OF AMENDMENTS
AND EXTENSIONS.—The Secretary
shall develop a streamlined process for consideration of
amendments and extensions proposed by States to dem-
onstration projects conducted under this section.’’.
SEC. 506. AVAILABILITY OF REPORTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
110
‘‘(k) AVAILABILITY
OF REPORTS.—The Secretary
shall make available to any State or other interested party
any report provided to the Secretary under subsection
(f)(2), and any evaluation or report made by the Secretary
with respect to a demonstration project conducted under
this section, with a focus on information that may promote
best practices and program improvements.’’.
SEC. 507. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is
amended 
by 
striking 
‘‘422(b)(9)’’ 
and 
inserting
‘‘422(b)(10)’’.
TITLE VI—SUPPLEMENTAL
SECURITY INCOME
SEC. 601. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by add-
ing at the end the following:
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to
subsection (a) in connection with applications for benefits
under this title on the basis of blindness or disability, that
individuals who have attained 18 years of age are blind
or disabled as of a specified onset date. The Commissioner
of Social Security shall review such a determination before
any action is taken to implement the determination.
111
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) at least 20 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal
year 2003;
‘‘(ii) at least 40 percent of all such determina-
tions that are made in fiscal year 2004; and
‘‘(iii) at least 50 percent of all such determina-
tions that are made in fiscal year 2005 or thereafter.
‘‘(B) In carrying out subparagraph (A), the Commis-
sioner of Social Security shall, to the extent feasible, select
for review the determinations which the Commissioner of
Social Security identifies as being the most likely to be
incorrect.’’.
TITLE VII—STATE AND LOCAL
FLEXIBILITY
SEC. 701. PROGRAM COORDINATION DEMONSTRATION
PROJECTS.
(a) PURPOSE.—The purpose of this section is to es-
tablish a program of demonstration projects in a State or
portion of a State to coordinate multiple public assistance,
workforce development, and other programs, for the pur-
pose of supporting working individuals and families, help-
ing families escape welfare dependency, promoting child
well-being, or helping build stronger families, using inno-
112
vative approaches to strengthen service systems and pro-
vide more coordinated and effective service delivery.
(b) DEFINITIONS.—In this section:
(1) ADMINISTERING
SECRETARY.—The term
‘‘administering Secretary’’ means, with respect to a
qualified program, the head of the Federal agency
responsible for administering the program.
(2) QUALIFIED PROGRAM.—The term ‘‘qualified
program’’ means—
(A) a program under part A of title IV of
the Social Security Act;
(B) the program under title XX of such
Act;
(C) activities funded under title I of the
Workforce Investment Act of 1998, except sub-
title C of such title;
(D) a demonstration project authorized
under section 505 of the Family Support Act of
1988;
(E) activities funded under the Wagner-
Peyser Act;
(F) activities funded under the Adult Edu-
cation and Family Literacy Act;
(G) activities funded under the Child Care
and Development Block Grant Act of 1990;
113
(H) activities funded under the United
States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), except that such term shall not include—
(i) any program for rental assistance
under section 8 of such Act (42 U.S.C.
1437f); and
(ii) the program under section 7 of
such Act (42 U.S.C. 1437e) for desig-
nating public housing for occupancy by
certain populations;
(I) activities funded under title I, II, III,
or IV of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11301 et seq.); or
(J) the food stamp program as defined in
section 3(h) of the Food Stamp Act of 1977 (7
U.S.C. 2012(h)).
(c) APPLICATION REQUIREMENTS.—The head of a
State entity or of a sub-State entity administering 2 or
more qualified programs proposed to be included in a dem-
onstration project under this section shall (or, if the
project is proposed to include qualified programs adminis-
tered by 2 or more such entities, the heads of the admin-
istering entities (each of whom shall be considered an ap-
plicant for purposes of this section) shall jointly) submit
114
to the administering Secretary of each such program an
application that contains the following:
(1) PROGRAMS INCLUDED.—A statement identi-
fying each qualified program to be included in the
project, and describing how the purposes of each
such program will be achieved by the project.
(2) POPULATION SERVED.—A statement identi-
fying the population to be served by the project and
specifying the eligibility criteria to be used.
(3) DESCRIPTION AND JUSTIFICATION.—A de-
tailed description of the project, including—
(A) a description of how the project is ex-
pected to improve or enhance achievement of
the purposes of the programs to be included in
the project, from the standpoint of quality, of
cost-effectiveness, or of both; and
(B) a description of the performance objec-
tives for the project, including any proposed
modifications to the performance measures and
reporting requirements used in the programs.
(4) WAIVERS
REQUESTED.—A description of
the statutory and regulatory requirements with re-
spect to which a waiver is requested in order to
carry out the project, and a justification of the need
for each such waiver.
115
(5) COST NEUTRALITY.—Such information and
assurances as necessary to establish to the satisfac-
tion of the administering Secretary, in consultation
with the Director of the Office of Management and
Budget, that the proposed project is reasonably ex-
pected to meet the applicable cost neutrality require-
ments of subsection (d)(4).
(6) EVALUATION AND REPORTS.—An assurance
that the applicant will conduct ongoing and final
evaluations of the project, and make interim and
final reports to the administering Secretary, at such
times and in such manner as the administering Sec-
retary may require.
(7) PUBLIC HOUSING AGENCY PLAN.—In the
case of an application proposing a demonstration
project that includes activities referred to in sub-
section (b)(2)(H) of this section—
(A) a certification that the applicable an-
nual public housing agency plan of any agency
affected by the project that is approved under
section 5A of the United States Housing Act of
1937 (42 U.S.C. 1437c–1) by the Secretary in-
cludes the information specified in paragraphs
(1) through (4) of this subsection; and
116
(B) any resident advisory board rec-
ommendations, and other information, relating
to the project that, pursuant to section
5A(e)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437c–1(e)(2), is required to
be included in the public housing agency plan of
any public housing agency affected by the
project.
(8) OTHER INFORMATION AND ASSURANCES.—
Such other information and assurances as the ad-
ministering Secretary may require.
(d) APPROVAL OF APPLICATIONS.—
(1) IN GENERAL.—The administering Secretary
with respect to a qualified program that is identified
in an application submitted pursuant to subsection
(c) may approve the application and, except as pro-
vided in paragraph (2), waive any requirement appli-
cable to the program, to the extent consistent with
this section and necessary and appropriate for the
conduct of the demonstration project proposed in the
application, if the administering Secretary deter-
mines that the project—
(A) has a reasonable likelihood of achieving
the objectives of the programs to be included in
the project;
117
(B) may reasonably be expected to meet
the applicable cost neutrality requirements of
paragraph (4), as determined by the Director of
the Office of Management and Budget; and
(C) includes the coordination of 2 or more
qualified programs.
(2) PROVISIONS EXCLUDED FROM WAIVER AU-
THORITY.—A waiver shall not be granted under
paragraph (1) with respect to—
(A) any provision of law relating to—
(i) civil rights or prohibition of dis-
crimination;
(ii) purposes or goals of any program;
(iii) maintenance of effort require-
ments;
(iv) health or safety;
(v) labor standards under the Fair
Labor Standards Act of 1938; or
(vi) environmental protection;
(B) section 241(a) of the Adult Education
and Family Literacy Act;
(C) in the case of a program under the
United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), any requirement under section
5A of such Act (42 U.S.C. 1437c–1; relating to
118
public housing agency plans and resident advi-
sory boards);
(D) in the case of a program under the
Workforce Investment Act, any requirement the
waiver 
of 
which 
would 
violate 
section
189(i)(4)(A)(i) of such Act;
(E) in the case of the food stamp program
(as defined in section 3(h) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(h)), any require-
ment under—
(i) section 6 (if waiving a requirement
under such section would have the effect of
expanding eligibility for the program), 7(b)
or 16(c) of the Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.); or
(ii) title IV of the Personal Responsi-
bility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1601 et seq.); or
(F) any requirement that a State pass
through to a sub-State entity part or all of an
amount paid to the State.
(3) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY REQUIRED.—
(A) IN GENERAL.—An applicant may not
conduct a demonstration project under this sec-
119
tion unless each administering Secretary with
respect to any program proposed to be included
in the project has approved the application to
conduct the project.
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving
an application to conduct a demonstration
project under this section, an administering
Secretary shall have in place an agreement with
the applicant with respect to the payment of
funds and responsibilities required of the ad-
ministering Secretary with respect to the
project.
(4) COST-NEUTRALITY REQUIREMENT.—
(A) 
GENERAL
RULE.—Notwithstanding
any other provision of law (except subparagraph
(B)), the total of the amounts that may be paid
by the Federal Government for a fiscal year
with respect to the programs in the State in
which an entity conducting a demonstration
project under this section is located that are af-
fected by the project shall not exceed the esti-
mated total amount that the Federal Govern-
ment would have paid for the fiscal year with
respect to the programs if the project had not
120
been conducted, as determined by the Director
of the Office of Management and Budget.
(B) SPECIAL RULE.—If an applicant sub-
mits to the Director of the Office of Manage-
ment and Budget a request to apply the rules
of this subparagraph to the programs in the
State in which the applicant is located that are
affected by a demonstration project proposed in
an application submitted by the applicant pur-
suant to this section, during such period of not
more than 5 consecutive fiscal years in which
the project is in effect, and the Director deter-
mines, on the basis of supporting information
provided by the applicant, to grant the request,
then, notwithstanding any other provision of
law, the total of the amounts that may be paid
by the Federal Government for the period with
respect to the programs shall not exceed the es-
timated total amount that the Federal Govern-
ment would have paid for the period with re-
spect to the programs if the project had not
been conducted.
(5) 90-DAY APPROVAL DEADLINE.—
(A) IN
GENERAL.—If an administering
Secretary receives an application to conduct a
121
demonstration project under this section and
does not disapprove the application within 90
days after the receipt, then—
(i) the administering Secretary is
deemed to have approved the application
for such period as is requested in the ap-
plication, except to the extent inconsistent
with subsection (e); and
(ii) any waiver requested in the appli-
cation which applies to a qualified program
that is identified in the application and is
administered by the administering Sec-
retary is deemed to be granted, except to
the extent inconsistent with paragraph (2)
or (4) of this subsection.
(B) DEADLINE EXTENDED IF ADDITIONAL
INFORMATION IS SOUGHT.—The 90-day period
referred to in subparagraph (A) shall not in-
clude any period that begins with the date the
Secretary requests the applicant to provide ad-
ditional information with respect to the applica-
tion and ends with the date the additional in-
formation is provided.
122
(e) DURATION
OF
PROJECTS.—A demonstration
project under this section may be approved for a term of
not more than 5 years.
(f) REPORTS TO CONGRESS.—
(1) REPORT
ON
DISPOSITION
OF
APPLICA-
TIONS.—Within 90 days after an administering Sec-
retary receives an application submitted pursuant to
this section, the administering Secretary shall sub-
mit to each Committee of the Congress which has
jurisdiction over a qualified program identified in
the application notice of the receipt, a description of
the decision of the administering Secretary with re-
spect to the application, and the reasons for approv-
ing or disapproving the application.
(2) REPORTS
ON
PROJECTS.—Each admin-
istering Secretary shall provide annually to the Con-
gress a report concerning demonstration projects ap-
proved under this section, including—
(A) the projects approved for each appli-
cant;
(B) the number of waivers granted under
this section, and the specific statutory provi-
sions waived;
(C) how well each project for which a waiv-
er is granted is improving or enhancing pro-
123
gram achievement from the standpoint of qual-
ity, cost-effectiveness, or both;
(D) how well each project for which a
waiver is granted is meeting the performance
objectives specified in subsection (c)(3)(B);
(E) how each project for which a waiver is
granted is conforming with the cost-neutrality
requirements of subsection (d)(4); and
(F) to the extent the administering Sec-
retary deems appropriate, recommendations for
modification of programs based on outcomes of
the projects.
(g) AMENDMENT TO UNITED STATES HOUSING ACT
OF 1937.—Section 5A(d) of the United States Housing
Act of 1937 (42 U.S.C. 1437c–1(d)) is amended—
(1) by redesignating paragraph (18) as para-
graph (19); and
(2) by inserting after paragraph (17) the fol-
lowing new paragraph:
‘‘(18) PROGRAM
COORDINATION
DEMONSTRA-
TION PROJECTS.—In the case of an agency that ad-
ministers 
an 
activity 
referred 
to 
in 
section
701(b)(2)(H) of the Personal Responsibility, Work,
and Family Promotion Act of 2002 that, during
such fiscal year, will be included in a demonstration
124
project under section 701 of such Act, the informa-
tion that is required to be included in the application
for the project pursuant to paragraphs (1) through
(4) of section 701(b) of such Act.’’.
SEC. 702. STATE FOOD ASSISTANCE BLOCK GRANT DEM-
ONSTRATION PROJECT.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
‘‘SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEM-
ONSTRATION PROJECT.
‘‘(a) 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;
‘‘(2) funds to operate an employment and train-
ing program under subsection (g) for needy individ-
uals under the program; and
‘‘(3) funds for administrative costs incurred in
providing the assistance.
‘‘(b) ELECTION.—
‘‘(1) IN GENERAL.—A State may elect to par-
ticipate in the program established under subsection
(a).
125
‘‘(2) ELECTION
REVOCABLE.—A State that
elects to participate in the program established
under subsection (a) may subsequently reverse the
election of the State only once thereafter. Following
the reversal, the State shall only be eligible to par-
ticipate in the food stamp program in accordance
with the other sections of this Act and shall not re-
ceive a block grant under this section.
‘‘(3) PROGRAM
EXCLUSIVE.—A State that is
participating in the program established under sub-
section (a) shall not be subject to, or receive any
benefit under, this Act except as provided in this
section.
‘‘(c) LEAD AGENCY.—
‘‘(1) DESIGNATION.—A State desiring to par-
ticipate in the program established under subsection
(a) shall designate, in an application submitted to
the Secretary under subsection (d)(1), an appro-
priate State agency that complies with paragraph
(2) to act as the lead agency for the State.
‘‘(2) DUTIES.—The lead agency shall—
‘‘(A) administer, either directly, through
other State agencies, or through local agencies,
the assistance received under this section by the
State;
126
‘‘(B) develop the State plan to be sub-
mitted to the Secretary under subsection (d)(1);
and
‘‘(C) coordinate the provision of food as-
sistance under this section with other Federal,
State, and local programs.
‘‘(d) 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,
including—
‘‘(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 (2); and
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (2).
‘‘(2) 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
127
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);
‘‘(ii) to administer an employment
and training program under subsection (g)
for needy individuals under the program
and to provide reimbursements to needy
individuals and families as would be al-
lowed under section 16(h)(3); and
‘‘(iii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) ASSISTANCE FOR ENTIRE STATE.—
The State plan shall provide that benefits under
this section shall be available throughout the
entire State.
‘‘(D) 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
128
under this section that adversely affects the in-
dividual or family.
‘‘(E) OTHER ASSISTANCE.—
‘‘(i) COORDINATION.—The State plan
may coordinate assistance received under
this section with assistance provided under
the State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(ii) PENALTIES.—If an individual or
family is penalized for violating part A of
title IV of the Act, the State plan may re-
duce the amount of assistance provided
under this section or otherwise penalize the
individual or family.
‘‘(F) 
ELIGIBILITY
LIMITATIONS.—The
State plan shall describe the income and re-
source eligibility limitations that are established
for the receipt of assistance under this section.
‘‘(G) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall estab-
lish a system to verify and otherwise ensure
that no individual or family shall receive bene-
fits under this section in more than 1 jurisdic-
tion within the State.
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‘‘(H) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use
and disclosure of information about any indi-
vidual or family receiving assistance under this
section.
‘‘(I) OTHER
INFORMATION.—The State
plan shall contain such other information as
may be required by the Secretary.
‘‘(3) APPROVAL OF APPLICATION AND PLAN.—
During fiscal years 2003 through 2007, the Sec-
retary may approve the applications and State plans
that satisfy the requirements of this section of not
more than 5 States for a term of not more than 5
years.
‘‘(e) CONSTRUCTION
OF
FACILITIES.—No funds
made available under this section shall be expended for
the purchase or improvement of land, or for the purchase,
construction, or permanent improvement of any building
or facility.
‘‘(f) BENEFITS FOR ALIENS.—No individual shall be
eligible to receive benefits under a State plan approved
under subsection (d)(3) if the individual is not eligible to
participate in the food stamp program under title IV of
the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1601 et seq.).
135
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).
‘‘(l) ALLOTMENTS.—
‘‘(1) DEFINITION OF STATE.—In this section,
the term ‘State’ means each of the 50 States, the
District of Columbia, Guam, and the Virgin Islands
of the United States.
‘‘(2) STATE ALLOTMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 of this Act for each
fiscal year, the Secretary shall allot to each
State participating in the program established
under subsection (a) 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
program established under this Act by
the State during fiscal year 2002; or