340
‘‘(iii) The term ‘‘eligible State’’ means a State
whose State plan approved under section 402 in-
cludes provision for emergency assistance.’’.
Subtitle C—Tax Provisions
SEC. 921. CERTAIN FEDERAL ASSISTANCE INCLUDIBLE IN
GROSS INCOME.
(a) IN GENERAL.—Part II of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically included in gross income) is amended by
adding at the end the following new section:
‘‘SEC. 91. CERTAIN FEDERAL ASSISTANCE.
‘‘(a) IN GENERAL.—Gross income shall include an
amount equal to the specified Federal assistance received
by the taxpayer during the taxable year.
‘‘(b) SPECIFIED FEDERAL ASSISTANCE.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘specified Federal
assistance’ means—
‘‘(A) aid provided under a State plan ap-
proved under part A of title IV of the Social
Security Act (relating to aid to families with de-
pendent children), and
‘‘(B) assistance provided under any food
stamp program.
341
‘‘(2) SPECIAL RULE.—In the case of assistance
provided under a program described in subsection
(d)(2), such term shall include only the assistance
required to be provided under section 21 or 22 (as
the case may be) of the Food Stamp Act of 1977.
‘‘(c) INDIVIDUALS SUBJECT TO TAX.—For purposes
of this section—
‘‘(1) AFDC.—Aid described in subsection
(b)(1)(A) shall be treated as received by the relative
with whom the dependent child is living (within the
meaning of section 406(c) of the Social Security
Act).
‘‘(2) FOOD STAMPS.—In the case of assistance
described in subsection (b)(1)(B)—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), such assistance shall be
treated as received ratably by each of the indi-
viduals taken into account in determining the
amount of such assistance for the benefit of
such individuals.
‘‘(B) ASSISTANCE TO CHILDREN TREATED
AS RECEIVED BY PARENTS, ETC.—The amount
of assistance which would (but for this subpara-
graph) be treated as received by a child shall be
treated as received as follows:
342
‘‘(i) If there is an includible parent,
such amount shall be treated as received
by the includible parent (or if there is
more than 1 includible parent, as received
ratably by each includible parent).
‘‘(ii) If there is no includible parent
and there is an includible grandparent,
such amount shall be treated as received
by the includible grandparent (or if there
is more than 1 includible grandparent, as
received ratably by each includible grand-
parent).
‘‘(iii) If there is no includible parent
or grandparent, such amount shall be
treated as received ratably by each includ-
ible adult.
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph (B)—
‘‘(i) CHILD.—The term ‘child’ means
any individual who has not attained age 16
as of the close of the taxable year. Such
term shall not include any individual who
is an includible parent of a child (as de-
fined in the preceding sentence).
343
‘‘(ii) ADULT.—The term ‘adult’ means
any individual who is not a child.
‘‘(iii) INCLUDIBLE.—The term ‘in-
cludible’ means, with respect to any indi-
vidual, an individual who is included in de-
termining the amount of assistance paid to
the household which includes the child.
‘‘(iv) PARENT.—The term ‘parent’ in-
cludes the stepfather and stepmother of
the child.
‘‘(v) 
GRANDPARENT.—The 
term
‘grandparent’ means any parent of a par-
ent of the child.
‘‘(d) FOOD STAMP PROGRAM.—For purposes of sub-
section (b), the term ‘food stamp program’ means—
‘‘(1) the food stamp program (as defined in sec-
tion 3(h) of the Food Stamp Act of 1977), and
‘‘(2) the portion of the program under sections
21 and 22 of such Act which provides food assist-
ance.’’
(b) REPORTING.—
(1) IN GENERAL.—Subpart B of part III of
subchapter A of chapter 61 of such Code is amended
by adding at the end the following new section:
344
‘‘SEC. 6050Q. PAYMENTS OF CERTAIN FEDERAL ASSIST-
ANCE.
‘‘(a) REQUIREMENT
OF REPORTING.—The appro-
priate official shall make a return, according to the forms
and regulations prescribed by the Secretary, setting
forth—
‘‘(1) the aggregate amount of specified Federal
assistance paid to any individual during any cal-
endar year, and
‘‘(2) the name, address, and TIN of such indi-
vidual.
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—
Every person required to make a return under subsection
(a) shall furnish to each individual whose name is re-
quired to be set forth in such return a written statement
showing—
‘‘(1) the name of the agency making the pay-
ments, and
‘‘(2) the aggregate amount of payments made
to the individual which are required to be shown on
such return.
The written statement required under the preceding sen-
tence shall be furnished to the individual on or before Jan-
uary 31 of the year following the calendar year for which
the return under subsection (a) was required to be made.
345
‘‘(c) DEFINITIONS AND SPECIAL RULE.—For pur-
poses of this section—
‘‘(1) APPROPRIATE OFFICIAL.—The term ‘ap-
propriate official’ means—
‘‘(A) in the case of specified Federal as-
sistance described in section 91(b)(1)(A), the
head of the State agency administering the plan
under which such assistance is provided,
‘‘(B) in the case of specified Federal as-
sistance described in section 91(b)(1)(B), the
head of the State agency administering the pro-
gram under which such assistance is provided,
and
‘‘(C) in the case of specified Federal assist-
ance described in section 91(b)(1)(C), the head
of the State pubic housing agency administering
the program under which such assistance is
provided.
‘‘(2) SPECIFIED
FEDERAL
ASSISTANCE.—The
term ‘specified Federal assistance’ has the meaning
given such term by section 91(b).
‘‘(3) AMOUNTS TREATED AS PAID.—The rules
of section 91(c) shall apply for purposes of deter-
mining to whom specified Federal assistance is
paid.’’
346
(2) PENALTIES.—
(A) 
Subparagraph 
(B) 
of 
section
6724(b)(1) of such Code is amended by redesig-
nating clauses (ix) through (xiv) as clauses (x)
through (xv), respectively, and by inserting
after clause (viii) the following new clause:
‘‘(ix) section 6050Q (relating to pay-
ments of certain Federal assistance),’’.
(B) Paragraph (2) of section 6724(d) of
such Code is amended by redesignating sub-
paragraphs (Q) through (T) as subparagraphs
(R) through (U), respectively, and by inserting
after subparagraph (P) the following new sub-
paragraph:
‘‘(Q) section 6050Q(b) (relating to pay-
ments of certain Federal assistance),’’.
(c) CLERICAL AMENDMENTS.—
(1) The table of sections for part II of sub-
chapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
‘‘Sec. 91. Certain Federal assistance.’’
(2) The table of sections for subpart B of part
III of subchapter A of chapter 61 of such Code is
amended by adding at the end the following new
item:
‘‘Sec. 6050Q. Payments of certain Federal assistance.’’
347
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits received after December
31, 1995.
SEC. 922. EARNED INCOME TAX CREDIT DENIED TO INDI-
VIDUALS 
NOT 
AUTHORIZED 
TO 
BE 
EM-
PLOYED IN THE UNITED STATES.
(a) IN GENERAL.—Section 32(c)(1) of the Internal
Revenue Code of 1986 (relating to individuals eligible to
claim the earned income tax credit) is amended by adding
at the end the following new subparagraph:
‘‘(F) IDENTIFICATION NUMBER REQUIRE-
MENT.—The term ‘eligible individual’ does not
include any individual who does not include on
the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identi-
fication number, and
‘‘(ii) if the individual is married (with-
in the meaning of section 7703), the tax-
payer identification number of such indi-
vidual’s spouse.’’
(b) SPECIAL IDENTIFICATION NUMBER.—Section 32
of such Code is amended by adding at the end the follow-
ing new subsection:
‘‘(k) IDENTIFICATION NUMBERS.—Solely for pur-
poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer
348
identification number means a social security number is-
sued to an individual by the Social Security Administra-
tion (other than a social security number issued pursuant
to clause (II) (or that portion of clause (III) that relates
to clause (II)) of section 205(c)(2)(B)(i) of the Social Se-
curity Act).’’
(c) EXTENSION OF PROCEDURES APPLICABLE TO
MATHEMATICAL
OR
CLERICAL
ERRORS.—Section
6213(g)(2) of such Code (relating to the definition of
mathematical or clerical errors) is amended by striking
‘‘and’’ at the end of subparagraph (D), by striking the
period at the end of subparagraph (E) and inserting ‘‘,
and’’, and by inserting after subparagraph (E) the follow-
ing new subparagraph:
‘‘(F) an omission of a correct taxpayer
identification number required under section 32
(relating to the earned income tax credit) to be
included on a return.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
349
SEC. 923. PHASEOUT OF EARNED INCOME CREDIT FOR IN-
DIVIDUALS HAVING MORE THAN $2,500 OF
TAXABLE INTEREST AND DIVIDENDS.
(a) IN GENERAL.—Section 32 of the Internal Reve-
nue Code of 1986 is amended by redesignating subsections
(i) and (j) as subsections (j) and (k), respectively, and by
inserting after subsection (h) the following new subsection:
‘‘(i) PHASEOUT OF CREDIT FOR INDIVIDUALS HAV-
ING MORE THAN $2,500 OF TAXABLE INTEREST AND
DIVIDENDS.—If the aggregate amount of interest and
dividends includible in the gross income of the taxpayer
for the taxable year exceeds $2,500, the amount of the
credit which would (but for this subsection) be allowed
under this section for such taxable year shall be reduced
(but not below zero) by an amount which bears the same
ratio to such amount of credit as such excess bears to
$650.’’
(b) INFLATION ADJUSTMENT.—Subsection (j) of sec-
tion 32 of such Code (relating to inflation adjustments),
as redesignated by subsection (a), is amended by striking
paragraph (2) and by inserting the following new para-
graphs:
‘‘(2) INTEREST AND DIVIDEND INCOME LIMITA-
TION.—In the case of a taxable year beginning in a
calendar year after 1996, each dollar amount con-
350
tained in subsection (i) shall be increased by an
amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 1995’ for
‘calendar year 1992’ in subparagraph (B)
thereof.
‘‘(3) ROUNDING.—If any amount as adjusted
under paragraph (1) or (2) is not a multiple of $10,
such dollar amount shall be rounded to the nearest
multiple of $10.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 924. AFDC AND FOOD STAMP BENEFITS NOT TAKEN
INTO ACCOUNT FOR PURPOSES OF THE
EARNED INCOME TAX CREDIT.
(a) IN GENERAL.—Section 32 of the Internal Reve-
nue Code of 1986 (relating to the earned income tax cred-
it), as amended by section 932(b) of this Act, is amended
by adding at the end the following new subsection:
‘‘(l) ADJUSTED GROSS INCOME DETERMINED WITH-
OUT REGARD TO CERTAIN FEDERAL ASSISTANCE.—For
351
purposes of this section, adjusted gross income shall be
determined without regard to any amount which is includ-
ible in gross income solely by reason of section 91.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1995.
TITLE X—FOOD ASSISTANCE
REFORM
Subtitle A—Food Stamp Program
Integrity and Reform
SEC. 1001. AUTHORITY TO ESTABLISH AUTHORIZATION
PERIODS.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)) is amended by adding at the end the
following: ‘‘The Secretary is authorized to issue regula-
tions establishing specific time periods during which au-
thorization to accept and redeem coupons under the food
stamp program shall be valid.’’.
SEC. 1002. SPECIFIC PERIOD FOR PROHIBITING PARTICIPA-
TION OF STORES BASED ON LACK OF BUSI-
NESS INTEGRITY.
Section 9(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2018(a)(1)), as amended by section 1001, is
amended by adding at the end the following: ‘‘The Sec-
retary is authorized to issue regulations establishing spe-
352
cific time periods during which a retail food store or
wholesale food concern that has an application for ap-
proval to accept and redeem coupons denied or that has
such an approval withdrawn on the basis of business integ-
rity and reputation cannot submit a new application for
approval. Such periods shall reflect the severity of business
integrity infractions that are the basis of such denials or
withdrawals.’’.
SEC. 1003. INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION.
Section 9(c) of the Food Stamp Act of 1977 (7
U.S.C. 2018(c)) is amended—
(1) in the first sentence by inserting ‘‘, which
may include relevant income and sales tax filing doc-
uments,’’ after ‘‘submit information’’ ; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The regulations may require retail food
stores and wholesale food concerns to provide writ-
ten authorization for the Secretary to verify all rel-
evant tax filings with appropriate agencies and to
obtain corroborating documentation from other
sources in order that the accuracy of information
provided by such stores and concerns may be
verified.’’.
353
SEC. 1004. WAITING PERIOD FOR STORES THAT INITIALLY
FAIL TO MEET AUTHORIZATION CRITERIA.
Section 9(d) of the Food Stamp Act of 1977 (7
U.S.C. 2018(d)) is amended by adding at the end the fol-
lowing: ‘‘Regulations issued pursuant to this Act shall pro-
hibit a retail food store or wholesale food concern that has
an application for approval to accept and redeem coupons
denied because it does not meet criteria for approval estab-
lished by the Secretary in regulations from submitting a
new application for six months from the date of such
denial.’’.
SEC. 1005. BASES FOR SUSPENSIONS AND DISQUALIFICA-
TIONS.
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 pro-
vide criteria for the finding of violations and the suspen-
sion or disqualification of a retail food store or wholesale
food concern on the basis of evidence which may include,
but is not limited to, facts established through on-site in-
vestigations, inconsistent redemption data, or evidence ob-
tained through transaction reports under electronic benefit
transfer systems.’’.
354
SEC. 1006. AUTHORITY TO SUSPEND STORES VIOLATING
PROGRAM REQUIREMENTS PENDING ADMIN-
ISTRATIVE AND JUDICIAL REVIEW.
(a) Section 12(a) of the Food Stamp Act of 1977 (7
U.S.C. 2021(a)), as amended by section 1005, is amended
by adding at the end the following: ‘‘Such regulations may
establish criteria under which the authorization of a retail
food store or wholesale food concern to accept and redeem
coupons may be suspended at the time such store or con-
cern is initially found to have committed violations of pro-
gram requirements. Such suspension may coincide with
the period of a review as provided in section 14. The Sec-
retary shall not be liable for the value of any sales lost
during any suspension or disqualification period.’’.
(b) Section 14(a) of the Food Stamp Act of 1977 (7
U.S.C. 2023(a)) is amended—
(1) in the first sentence by inserting ‘‘sus-
pended,’’ before ‘‘disqualified or subjected’’;
(2) in the fifth sentence by inserting before the
period at the end the following: ‘‘, except that in the
case of the suspension of a retail food store or
wholesale food concern pursuant to section 12(a),
such suspension shall remain in effect pending any
administrative or judicial review of the proposed dis-
qualification action, and the period of suspension
355
shall be deemed a part of any period of disqualifica-
tion which is imposed.’’; and
(3) by striking the last sentence.
SEC. 1007. DISQUALIFICATION OF RETAILERS WHO ARE
DISQUALIFIED FROM 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) The Secretary shall issue regulations providing
criteria for the disqualification of approved retail food
stores and wholesale food concerns that are otherwise dis-
qualified from accepting benefits under the Special Sup-
plemental Nutrition Program for Women, Infants and
Children (WIC) authorized under section 17 of the Child
Nutrition Act of 1966. Such disqualification—
‘‘(1) shall be for the same period as the dis-
qualification from the WIC Program;
‘‘(2) may begin at a later date; and
‘‘(3) notwithstanding section 14 of this Act,
shall not be subject to administrative or judicial re-
view.’’.
356
SEC. 1008. PERMANENT DEBARMENT OF RETAILERS WHO
INTENTIONALLY SUBMIT FALSIFIED APPLI-
CATIONS.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C.
2021), as amended by section 1007, is amended by adding
at the end the following:
‘‘(h) The Secretary shall issue regulations providing
for the permanent disqualification of a retail food store
or wholesale food concern that is determined to have
knowingly submitted an application for approval to accept
and redeem coupons which contains false information
about one or more substantive matters which were the
basis for providing approval. Any disqualification imposed
under this subsection shall be subject to administrative
and judicial review pursuant to section 14, but such dis-
qualification shall remain in effect pending such review.’’.
SEC. 1009. EXPANDED CIVIL AND CRIMINAL FORFEITURE
FOR VIOLATIONS OF THE FOOD STAMP ACT.
(a) FORFEITURE OF ITEMS EXCHANGED IN FOOD
STAMP TRAFFICKING.—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) CIVIL AND CRIMINAL FORFEITURE.—Section 15
of the Food Stamp Act of 1977 (7 U.S.C. 2024)) is
amended by adding at the end the following:
357
‘‘(h)(1) CIVIL FORFEITURE FOR FOOD STAMP BENE-
FIT VIOLATIONS.—
‘‘(A) Any food stamp benefits and any property,
real or personal—
‘‘(i) constituting, derived from, or traceable
to any proceeds obtained directly or indirectly
from, or
‘‘(ii) used, or intended to be used, to com-
mit, or to facilitate,
the commission of a violation of subsection (b) or
subsection (c) involving food stamp benefits having
an aggregate value of not less than $5,000, shall be
subject to forfeiture to the United States.
‘‘(B) The provisions of chapter 46 of title 18,
relating to civil forfeitures shall extend to a seizure
or forfeiture under this subsection, insofar as appli-
cable and not inconsistent with the provisions of this
subsection.
‘‘(2) CRIMINAL FORFEITURE FOR FOOD STAMP BEN-
EFIT VIOLATIONS.—
‘‘(A)(i) Any person convicted of violating sub-
section (b) or subsection (c) involving food stamp
benefits having an aggregate value of not less than
$5,000, shall forfeit to the United States, irrespec-
tive of any State law—
359
‘‘(4) The Secretary may prescribe such rules and reg-
ulations as may be necessary to carry out this sub-
section.’’.
SEC. 1010. EXPANDED AUTHORITY FOR SHARING INFORMA-
TION PROVIDED BY RETAILERS.
(a) 
Section 
205(c)(2)(C)(iii) 
(42 
U.S.C.
405(c)(2)(C)(iii)) (as amended by section 316(a) of the
Social Security Administrative Reform Act of 1994 (Pub-
lic Law 103–296; 108 Stat. 1464) is amended—
(1) by inserting in the first sentence of
subclause (II) after ‘‘instrumentality of the United
States’’ the following: ‘‘, or State government offi-
cers and employees with law enforcement or inves-
tigative responsibilities, or State agencies that have
the responsibility for administering the Special Sup-
plemental Nutrition Program for Women, Infants
and Children (WIC)’’;
(2) by inserting in the last sentence of
subclause (II) immediately after ‘‘other Federal’’ the
words ‘‘or State’’; and
(3) by inserting ‘‘or a State’’ in subclause (III)
immediately after ‘‘United States’’.
(b) Section 6109(f)(2) of the Internal Revenue Code
of 1986 (26 U.S.C. 6109(f)(2)) (as added by section
316(b) of the Social Security Administrative Reform
360
Act of 1994 (Public Law 103–296; 108 Stat. 1464)) is
amended—
(1) by inserting in subparagraph (A) after ‘‘in-
strumentality of the United States’’ the following: ‘‘,
or State government officers and employees with law
enforcement or investigative responsibilities, or State
agencies that have the responsibility for administer-
ing the Special Supplemental Nutrition Program for
Women, Infants and Children (WIC)’’;
(2) in the last sentence of subparagraph (A) by
inserting ‘‘or State’’ after ‘‘other Federal’’; and
(3) in subparagraph (B) by inserting ‘‘or a
State’’ after ‘‘United States’’.
SEC. 1011. EXPANDED DEFINITION OF ‘‘COUPON’’.
Section 3(d) of the Food Stamp Act of 1977 (7
U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi-
cate’’ and inserting ‘‘type of certificate, authorization
cards, cash or checks issued of coupons or access devices,
including, but not limited to, electronic benefit transfer
cards and personal identification numbers’’.
SEC. 1012. DOUBLED PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i)—
361
(A) by striking ‘‘six months’’ and inserting
‘‘1 year’’; and
(B) by adding ‘‘and’’ at the end; and
(2) striking clauses (ii) and (iii) and inserting
the following:
‘‘(ii) permanently upon—
‘‘(I) the second occasion of any such deter-
mination; or
‘‘(II) the first occasion of a finding by a
Federal, State, or local court of the trading of
a controlled substance (as defined in section
102 of the Controlled Substances Act (21
U.S.C. 802)), firearms, ammunition, or explo-
sives for coupons.’’.
SEC. 1013. MANDATORY CLAIMS COLLECTION METHODS.
(a) Section 11(e)(8) of the Food Stamp Act of 1977
(7 U.S.C. 2020(e)(8)) is amended by inserting ‘‘or refunds
of Federal taxes as authorized pursuant to 31 U.S.C.
3720A’’ before the semicolon at the end.
(b) Section 13(d) of the Food Stamp Act of 1977
(7 U.S.C. 2022(d)) is amended—
(1) by striking ‘‘may’’ and inserting ‘‘shall’’;
and
362
(2) by inserting ‘‘or refunds of Federal taxes as
authorized pursuant to 31 U.S.C. 3720A’’ before the
period at the end.
(c) Section 6103(1) of the Internal Revenue Code (26
U.S.C. 6103(1)) is amended—
(1) by striking ‘‘officers and employees’’ in
paragraph (10)(A) and inserting ‘‘officers, employ-
ees or agents, including State agencies’’; and
(2) by striking ‘‘officers and employees’’ in
paragraph (10)(B) and inserting ‘‘officers, employ-
ees or agents, including State agencies’’.
SEC. 1014. REDUCTION OF BASIC BENEFIT LEVEL.
Section 3(o) of the Food Stamp Act of 1977 (7
U.S.C. 2012(o)) is amended—
(1) by striking ‘‘and (11)’’ and inserting
‘‘(11)’’;
(2) in clause (11) by inserting ‘‘through Octo-
ber 1, 1994’’ after ‘‘each October 1 thereafter’’; and
(3) by inserting before the period at the end the
following:
‘‘, and (12) on October 1, 1995, and on each October 1
thereafter, adjust the cost of such diet to reflect 102 per-
cent of the cost, in the preceding June (without regard
to any previous adjustment made under this clause or
clauses (4) through (11) of this subsection) and round the
363
result to the nearest lower dollar increment for each
household size’’.
SEC. 1015. PRO-RATING BENEFITS AFTER INTERRUPTIONS
IN PARTICIPATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more
than one month’’.
SEC. 1016. WORK REQUIREMENT FOR ABLE-BODIED RECIPI-
ENTS.
(a) WORK REQUIREMENT.—Section 6(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)) is amended by
adding at the end the following:
‘‘(5)(A) Except as provided in subparagraphs (B),
(C), and (D), an individual who has received an allotment
for six consecutive months during which such individual
has not been employed a minimum of an average of 20
hours per week shall be disqualified if such individual is
not employed at least an average of 20 hours per week,
participating in a workfare program under section 20 (or
a comparable State or local workfare program), or partici-
pating in and complying with the requirements of an ap-
proved employment and training program under para-
graph (4).
‘‘(B) The provisions of subparagraph (A) shall not
apply in the case of an individual who—
364
‘‘(i) is under eighteen or over fifty years of age;
‘‘(ii) is certified by a physician as physically or
mentally unfit for employment;
‘‘(iii) is a parent or other member of a house-
hold that includes a minor child;
‘‘(iv) is participating a minimum of an average
of 20 hours per week and is in compliance with the
requirements of—
‘‘(I) a program under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.);
‘‘(II) a program under section 236 of the
Trade Act of 1974 (19 U.S.C. 2296); or
‘‘(III) another program for the purpose of
employment and training operated by a State or
local government, as determined appropriate by
the Secretary; or
‘‘(v) or would otherwise be exempt under sub-
section (d)(2).
‘‘(C) The Secretary may waive the requirements of
subparagraph (A) in the case of some or all individuals
within all or part of State if the Secretary finds that such
area—
‘‘(i) has an unemployment rate of over 7 per-
cent; or
365
‘‘(ii) does not have a sufficient number of jobs
to provide employment for individuals subject to this
paragraph. The Secretary shall report to the Com-
mittee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate on the basis in which the
Secretary made this decision.
‘‘(D) An individual who has been disqualified from
the food stamp program by reason of subparagraph (A)
may reestablish eligibility for assistance—
‘‘(i) by meeting the requirements of subpara-
graph (A);
‘‘(ii) by becoming exempt under subparagraph
(B); or
‘‘(iii) if the Secretary grants a waiver under
subparagraph (C).
‘‘(E) A household (as defined in section 3(i) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(i)) that includes
an individual who refuses to work, refuses to look for
work, turns down a job, or refuses to participate in the
State program if the State places the individual in such
program shall be ineligible to receive food stamp benefits.
The State agency shall reduce, by such amount the State
considers appropriate, the amount otherwise payable to a
household that includes an individual who fails without
366
good cause to comply with other requirements of the indi-
vidual responsibility plan signed by the individual.
‘‘(F) The State agency shall make an initial assess-
ment of the skills, prior work experience, and employ-
ability of each participant not exempted under subpara-
graph (B) within six months of initial certification. The
State agency shall use such assessment, in consultation
with the program participant, to develop an Individual Re-
sponsibility Plan for the participant. Such plan—
‘‘(i) shall provide that participation in food
stamp employment and training activities shall be a
condition of eligibility for food stamp benefits, ex-
cept during any period of unsubsidized full-time em-
ployment in the private sector;
‘‘(ii) shall establish an employment goal and a
plan for moving the individual into private sector
employment immediately;
‘‘(iii) shall establish the obligations of the par-
ticipant, which shall include actions that will help
the individual obtain and keep private sector employ-
ment; and
‘‘(iv) may require that the individual enter the
State program approved under part G or part H of
title IV of the Social Security Act if the caseworker
determines that the individual will need education,
367
training, job placement assistance, wage enhance-
ment, or other services to obtain private sector em-
ployment.’’.
(b) ENHANCED EMPLOYMENT AND TRAINING PRO-
GRAM.—Section 16(h)(1) of the Food Stamp Act of 1977
(7 U.S.C. 2025 (h)(1)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘$75,000,000’’ and insert-
ing ‘‘$150,000,000’’; and
(B) by striking ‘‘1991 through 1995’’ and
inserting ‘‘1996 through 2000’’;
(2) by striking subparagraphs (B), (C), (E) and
(F) and redesignating subparagraph (D) as subpara-
graph (B); and
(3) in subparagraph (B) (as so redesignated),
by striking ‘‘for each’’ and all that follows through
‘‘of $60,000,000’’ and inserting ‘‘the Secretary shall
allocate funding’’.
(c) REQUIRED PARTICIPATION IN WORK AND TRAIN-
ING PROGRAMS.—Section 6(d)(4) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)(4)), is amended by adding at
the end the following:
‘‘(O) The State agency shall provide an opportunity
to participate in the employment and training program
under this paragraph to any individual who would other-
368
wise become subject to disqualification under paragraph
(5)(A).’’.
(d) COORDINATING WORK REQUIREMENTS IN AFDC
AND FOOD STAMP PROGRAMS.—Section 6(d)(4) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)), as
amended by subsection (c), is amended by adding at the
end the following:
‘‘(P)(i) Notwithstanding any other provision of this
paragraph, a State agency that meets the participation re-
quirements of paragraph (ii) may operate its employment
and training program for persons receiving allotments
under this Act as part of its Work First Program under
part F of title IV of the Social Security Act (42 U.S.C.
681 et seq.), except that sections 487(b) and 489(a)(4)
shall not apply to any months during which a person par-
ticipates in such program while not receiving income under
part A of subtitle IV of the Social Security Act (42 U.S.C.
601 et seq.). If a State agency exercises the option pro-
vided under this subparagraph, the operation of this pro-
gram shall be subject to the requirements of such part
F, except that any reference to ‘aid to families with de-
pendent children’ in such part shall be deemed a reference
to food stamp benefits for purposes of any person not re-
ceiving income under such part A.
369
‘‘(ii) A State may exercise the option provided under
clause (i) if it provides any persons subject to the require-
ments of paragraph (5) who is not employed at least an
average of 20 hours per week or participating in a
workfare program under section 20 (or a comparable
State or local program) with the opportunity to participate
in an approved employment and training program. A State
agency shall be considered to have complied with the re-
quirements of this subparagraph in any area for which a
waiver under subsection (5)(4)(C) is in effect.’’.
SEC. 1017. EXTENDING CURRENT CLAIMS RETENTION
RATES.
Section 16(a) of the Food Stamp Act of 1977 (7
U.S.C. 2025(a)) is amended by striking ‘‘September 30,
1995’’ each place it appears and inserting ‘‘September 30,
2000’’.
SEC. 1018. COORDINATION OF EMPLOYMENT AND TRAIN-
ING PROGRAMS.
(a) Section 8(d) of the Food Stamp Act of 1977 (7
U.S.C. 2019(d)) is amended—
(1) by inserting ‘‘or any work requirement
under such program’’ after ‘‘assistance program’’;
and
(2) by adding at the end the following:
370
‘‘If a household fails to comply with a work requirement
in the program under part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.), the household shall not
receive an increased allotment under this Act as a result
of a decrease in the household’s income caused by a pen-
alty imposed under such Act, and the State agency is au-
thorized to reduce the household’s allotment by no more
than 25 percent.’’.
SEC. 1019. PROMOTING EXPANSION OF ELECTRONIC BENE-
FITS TRANSFER.
Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C.
2016(i)(1)) is amended—
(1) by amending paragraph (1) to read:
‘‘(1)(A) State agencies are encouraged to implement
an on-line electronic benefit transfer system in which
household benefits determined under section 8(a) are is-
sued from and stored in a central data bank and electroni-
cally accessed by household members at the point-of-sale.
‘‘(B) Subject to paragraph (2), a State agency is au-
thorized to procure and implement an electronic benefit
transfer system under the terms, conditions, and design
that the State agency deems appropriate.
‘‘(C) The Secretary shall, upon request of a State
agency, waive any provision of this subsection prohibiting
the effective implementation of an electronic benefit trans-
372
‘‘(c) ‘Certification period’ means the period specified
by the State agency for which households shall be eligible
to receive authorization cards, except that such period
shall be—
‘‘(1) 24 months for households in which all
adult members are elderly or disabled; and
‘‘(2) not more than 12 months for all other
households.’’.
(2) Section 6(c)(1)(C) of the Food Stamp Act of
1977 (7 U.S.C. 2015(c)(1)(C)) is amended—
(A) in clause (ii) by adding ‘‘and’’ at the end;
(B) in clause (iii) by striking ‘‘; and’’ at the end
and inserting a period; and
(C) by striking clause (iv).
(b) INCLUSION
OF ENERGY ASSISTANCE
IN IN-
COME.—
(1) AMENDMENTS TO THE FOOD STAMP ACT OF
1977.—Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended—
(A) in subsection (d)—
(i) by striking paragraph (11); and
(ii) by redesignating paragraphs (12)
through (16) as paragraphs (11) through
(15), respectively; and
(B) in subsection (k)—
373
(i) in paragraph (1)(B) by striking ‘‘,
not including energy or utility-cost assist-
ance,’’; and
(ii) in paragraph (2)—
(I) by striking subparagraph (C);
and
(II) by redesignating subpara-
graphs (D) through (H) as subpara-
graphs (C) through (J), respectively.
(2) AMENDMENTS TO THE LOW-INCOME HOME
ENERGY ASSISTANCE ACT OF 1981.—Section 2605(f)
of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8624(f)) is amended—
(A) in paragraph (1) by striking ‘‘food
stamps,’’; and
(B) by amending paragraph (2) to read as
follows:
‘‘(2) Paragraph (1) shall not apply for any purpose
under the Food Stamp Act of 1977.’’.
(c) EXCLUSION OF CERTAIN JTPA INCOME.—Sec-
tion 5(d) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)), as amended by subsection (b), is amended—
(1) by striking ‘‘and (15)’’ and inserting
‘‘(15)’’; and
(2) by inserting before the period the following:
374
‘‘, and (16) income received under the Job Training Part-
nership Act by a household member who is less than 19
years of age’’.
(d) EXCLUSION
OF
EDUCATIONAL
ASSISTANCE
FROM INCOME.—Section 5(d) of the Food Stamp Act of
1977 (7 U.S.C. 2014(d)) is amended—
(1) by amending paragraph (3) to read as fol-
lows: ‘‘(3) all educational loans on which payment is
deferred (including any loan origination fees or in-
surance premiums associated with such loans),
grants, scholarships, fellowships, veterans’ edu-
cational benefits, and the like awarded to a house-
hold member enrolled at a recognized institution of
post-secondary education, at a school for the handi-
capped, in a vocational education program, or in a
program that provides for completion of a secondary
school diploma or obtaining the equivalent thereof,’’;
and
(2) in paragraph (5) by striking ‘‘and no por-
tion’’ and all that follows through ‘‘reimbursement’’.
(e) LIMITATION ON ADDITIONAL EARNED INCOME
DEDUCTION.—The 3rd sentence of section 5(e) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended
by striking ‘‘earned income that’’ and all that follows
through 
‘‘report’’, 
and 
inserting 
‘‘determining 
an
375
overissuance due to the failure of a household to report
earned income’’.
(f) EXCLUSION
OF ESSENTIAL EMPLOYMENT-RE-
LATED PROPERTY.—Section 5(g)(3) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(g)(3)) is amended to read
as follows:
‘‘(3) The value of real and tangible personal property
(other than currency, commercial paper, and similar prop-
erty) of a household member that is essential to the em-
ployment or self-employment of such member shall be ex-
cluded by the Secretary from financial resources until the
expiration of the 1-year period beginning on the date such
member ceases to be so employed or so self-employed.’’.
(g) EXCLUSION OF LIFE INSURANCE POLICIES.—
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by adding at the end the following:
‘‘(6) The Secretary shall exclude from financial re-
sources the cash value of any life insurance policy owned
by a member of a household.’’.
(h) IN-TANDEM EXCLUSIONS FROM INCOME.—Sec-
tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended by adding at the end the following:
‘‘(n) Whenever a Federal statute enacted after the
date of the enactment of this Act excludes funds from in-
come for purposes of determining eligibility, benefit levels,
376
or both under State plans approved under part A of title
IV of the Social Security Act, then such funds shall be
excluded from income for purposes of determining eligi-
bility, benefit levels, or both, respectively, under the food
stamp program of households all of whose members re-
ceive benefits under a State plan approved under part A
of title IV of the Social Security Act.’’.
(i) APPLICATION
OF AMENDMENTS.—The amend-
ments made by this section shall not apply with respect
to certification periods beginning before the effective date
of this section.
Subtitle B—Commodity
Distribution
SEC. 1051. SHORT TITLE.
This subtitle may be cited as the ‘‘Commodity Dis-
tribution Act of 1995’’.
SEC. 1052. AVAILABILITY OF COMMODITIES.
(a) Notwithstanding any other provision of law, the
Secretary of Agriculture (hereinafter in this subtitle re-
ferred to as the ‘‘Secretary’’) is authorized during fiscal
years 1996 through 2000 to purchase a variety of nutri-
tious and useful commodities and distribute such commod-
ities to the States for distribution in accordance with this
subtitle.
377
(b) In addition to the commodities described in sub-
section (a), the Secretary may expend funds made avail-
able to carry out the section 32 of the Act of August 24,
1935 (7 U.S.C. 612c), which are not expended or needed
to carry out such sections, to purchase, process, and dis-
tribute commodities of the types customarily purchased
under such section to the States for distribution in accord-
ance to this subtitle.
(c) In addition to the commodities described in sub-
sections (a) and (b), agricultural commodities and the
products thereof made available under clause (2) of the
second sentence of section 32 of the Act of August 24,
1935 (7 U.S.C. 612c), may be made available by the Sec-
retary to the States for distribution in accordance with
this subtitle.
(d) In addition to the commodities described in sub-
sections (a), (b), and (c), commodities acquired by the
Commodity Credit Corporation that the Secretary deter-
mines, in the discretion of the Secretary, are in excess of
quantities needed to—
(1) carry out other domestic donation pro-
grams;
(2) meet other domestic obligations;
(3) meet international market development and
food aid commitments, and
378
(4) carry out the farm price and income sta-
bilization purposes of the Agricultural Adjustment
Act of 1938, the Agricultural Act of 1949, and the
Commodity Credit Corporation Charter Act; shall be
made available by the Secretary, without charge or
credit for such commodities, to the States for dis-
tribution in accordance with this subtitle.
(e) During each fiscal year, the types, varieties, and
amounts of commodities to be purchased under this sub-
title shall be determined by the Secretary. In purchasing
such commodities, except those commodities purchased
pursuant to section 1060, the Secretary shall, to the ex-
tent practicable and appropriate, make purchases based
on—
(1) agricultural market conditions;
(2) the preferences and needs of States and dis-
tributing agencies; and
(3) the preferences of the recipients.
SEC. 1053. STATE, LOCAL AND PRIVATE SUPPLEMENTATION
OF COMMODITIES.
(a) The Secretary shall establish procedures under
which State and local agencies, recipient agencies, or any
other entity or person may supplement the commodities
distributed under this subtitle for use by recipient agencies
with nutritious and wholesome commodities that such en-
379
tities or persons donate for distribution, in all or part of
the State, in addition to the commodities otherwise made
available under this subtitle.
(b) States and eligible recipient agencies may use—
(1) the funds appropriated for administrative
cost under section 1059(b);
(2) equipment, structures, vehicles, and all
other facilities involved in the storage, handling, or
distribution of commodities made available under
this subtitle; and
(3) the personnel, both paid or volunteer, in-
volved in such storage, handling, or distribution; to
store, handle or distribute commodities donated for
use under subsection (a).
(c) States and recipient agencies shall continue, to
the maximum extent practical, to use volunteer workers,
and commodities and other foodstuffs donated by chari-
table and other organizations, in the distribution of com-
modities under this subtitle.
SEC. 1054. STATE PLAN.
(a) A State seeking to receive commodities under this
subtitle shall submit a plan of operation and administra-
tion every four years to the Secretary for approval. The
plan may be amended at any time, with the approval of
the Secretary.
380
(b) The State plan, at a minimum, shall—
(1) designate the State agency responsible for
distributing the commodities received under this sub-
title;
(2) set forth a plan of operation and adminis-
tration to expeditiously distribute commodities under
this subtitle in quantities requested to eligible recipi-
ent agencies in accordance with sections 1056 and
1060;
(3) set forth the standards of eligibility for re-
cipient agencies; and
(4) set forth the standards of eligibility for indi-
vidual or household recipients of commodities, which
at minimum 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 applica-
tion for assistance.
(c) The Secretary shall encourage each State receiv-
ing commodities under this subtitle to establish a State
advisory board consisting of representatives of all inter-
ested entities, both public and private, in the distribution
of commodities received under this subtitle in the State.
381
(d) A State agency receiving commodities under this
subtitle may—
(1)(A) enter into cooperative agreements with
State agencies of other States to jointly provide
commodities received under this subtitle to eligible
recipient agencies that serve needy persons in a sin-
gle geographical area which includes such States; or
(B) transfer commodities received under this
subtitle to any such eligible recipient agency in the
other State under such agreement; and
(2) advise the Secretary of an agreement en-
tered into under this subsection and the transfer of
commodities made pursuant to such agreement.
SEC. 1055. ALLOCATION OF COMMODITIES TO STATES.
(a) In each fiscal year, except for those commodities
purchased under section 1060, the Secretary shall allocate
the commodities distributed under this subtitle as follows:
(1) 60 percent of such total value of commod-
ities shall be allocated in a manner such that the
value of commodities allocated to each State bears
the same ratio to 60 percent of such total value as
the number of persons in households within the
State having incomes below the poverty line bears to
the total number of persons in households within all
States having incomes below such poverty line. Each
382
State shall receive the value of commodities allocated
under this paragraph.
(2) 40 percent of such total value of commod-
ities shall be allocated in a manner such that the
value of commodities allocated to each State bears
the same ratio to 40 percent of such total value as
the average monthly number of unemployed persons
within the State bears to the average monthly num-
ber of unemployed persons within all States during
the same fiscal year. Each State shall receive the
value of commodities allocated to the State under
this paragraph.
(b)(1) The Secretary shall notify each State of the
amount of commodities that such State is allotted to re-
ceive under subsection (a) or this subsection, if applicable.
Each State shall promptly notify the Secretary if such
State determines that it will not accept any or all of the
commodities made available under such allocation. On
such a notification by a State, the Secretary shall reallo-
cate and distribute such commodities in a manner the Sec-
retary deems appropriate and equitable. The Secretary
shall further establish procedures to permit States to de-
cline to receive portions of such allocation during each fis-
cal year in a manner the State determines is appropriate
383
and the Secretary shall reallocate and distribute such allo-
cation as the Secretary deems appropriate and equitable.
(2) In the event of any drought, flood, hurricane, or
other natural disaster affecting substantial numbers of
persons in a State, county, or parish, the Secretary may
request that States unaffected by such a disaster consider
assisting affected States by allowing the Secretary to re-
allocate commodities from such unaffected State to States
containing areas adversely affected by the disaster.
(c) Purchases of commodities under this subtitle shall
be made by the Secretary at such times and under such
conditions as the Secretary determines appropriate within
each fiscal year. All commodities so purchased for each
such fiscal year shall be delivered at reasonable intervals
to States based on the allocations and reallocations made
under subsections (a) and (b), and or carry out section
1060, not later than December 31 of the following fiscal
year.
SEC. 1056. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF
COMMODITIES.
(a) In distributing the commodities allocated under
subsections (a) and (b) of section 1055, the State agency,
under procedures determined by the State agency, shall
offer, or otherwise make available, its full allocation of
384
commodities for distribution to emergency feeding organi-
zations.
(b) If the State agency determines that the State will
not exhaust the commodities allocated under subsections
(a) and (b) of section 1055 through distribution to organi-
zations referred to in subsection (a), its remaining alloca-
tion of commodities shall be distributed to charitable insti-
tutions described in section 1063(3) not receiving com-
modities under subsection (a).
(c) If the State agency determines that the State will
not exhaust the commodities allocated under subsections
(a) and (b) of section 1055 through distribution to organi-
zations referred to in subsections (a) and (b), its remain-
ing allocation of commodities shall be distributed to any
eligible recipient agency not receiving commodities under
subsections (a) and (b).
SEC. 1057. INITIAL PROCESSING COSTS.
The Secretary may use funds of the Commodity
Credit Corporation to pay the costs of initial processing
and packaging of commodities to be distributed under this
subtitle into forms and in quantities suitable, as deter-
mined by the Secretary, for use by the individual house-
holds or eligible recipient agencies, as applicable. The Sec-
retary may pay such costs in the form of Corporation-
owned commodities equal in value to such costs. The Sec-
385
retary shall ensure that any such payments in kind will
not displace commercial sales of such commodities.
SEC. 1058. ASSURANCES; ANTICIPATED USE.
(a) The Secretary shall take such precautions as the
Secretary deems necessary to ensure that commodities
made available under this subtitle will not displace com-
mercial sales of such commodities or the products thereof.
The Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate
by December 31, 1997, and not less than every two years
thereafter, a report as to whether and to what extent such
displacements or substitutions are occurring.
(b) The Secretary shall determine that commodities
provided under this subtitle shall be purchased and dis-
tributed only in quantities that can be consumed without
waste. No eligible recipient agency may receive commod-
ities under this subtitle in excess of anticipated use, based
on inventory records and controls, or in excess of its ability
to accept and store such commodities.
SEC. 1059. AUTHORIZATION OF APPROPRIATIONS.
(a) PURCHASE OF COMMODITIES.—To carry out this
subtitle, there are authorized to be appropriated
$260,000,000 for each of the fiscal years 1996 through
386
2000 to purchase, process, and distribute commodities to
the States in accordance with this subtitle.
(b) ADMINISTRATIVE FUNDS.—
(1) There are authorized to be appropriated
$40,000,000 for each of the fiscal years 1996
through 2000 for the Secretary to make available to
the States for State and local payments for costs as-
sociated with the distribution of commodities by eli-
gible recipient agencies under this subtitle, excluding
costs associated with the distribution of those com-
modities distributed under section 1060. Funds ap-
propriated under this paragraph for any fiscal year
shall be allocated to the States on an advance basis
dividing such funds among the States in the same
proportions as the commodities distributed under
this subtitle for such fiscal year are allocated among
the States. If a State agency is unable to use all of
the funds so allocated to it, the Secretary shall re-
allocate such unused funds among the other States
in a manner the Secretary deems appropriate and
equitable.
(2)(A) A State shall make available in each fis-
cal year to eligible recipient agencies in the State
not less than 40 percent of the funds received by the
State under paragraph (1) for such fiscal year, as
387
necessary to pay for, or provide advance payments
to cover, the allowable expenses of eligible recipient
agencies for distributing commodities to needy per-
sons, but only to the extent such expenses are actu-
ally so incurred by such recipient agencies.
(B) As used in this paragraph, the term ‘‘allow-
able expenses’’ includes—
(i) costs of transporting, storing, handling,
repackaging, processing, and distributing com-
modities incurred after such commodities are
received by eligible recipient agencies;
(ii) costs associated with determinations of
eligibility, verification, and documentation;
(iii) costs of providing information to per-
sons receiving commodities under this subtitle
concerning the appropriate storage and prepa-
ration of such commodities; and
(iv) costs of recordkeeping, auditing, and
other administrative procedures required for
participation in the program under this subtitle.
(C) If a State makes a payment, using State
funds, to cover allowable expenses of eligible recipi-
ent agencies, the amount of such payment shall be
counted toward the amount a State must make
388
available for allowable expenses of recipient agencies
under this paragraph.
(3) States to which funds are allocated for a
fiscal year under this subsection shall submit finan-
cial reports to the Secretary, on a regular basis, as
to the use of such funds. No such funds may be
used by States or eligible recipient agencies for costs
other than those involved in covering the expenses
related to the distribution of commodities by eligible
recipient agencies.
(4)(A) Except as provided in subparagraph (B),
to be eligible to receive funds under this subsection,
a State shall provide in cash or in kind (according
to procedures approved by the Secretary for certify-
ing these in-kind contributions) from non-Federal
sources a contribution equal to the difference be-
tween—
(i) the amount of such funds so received;
and
(ii) any part of the amount allocated to the
State and paid by the State—
(I) to eligible recipient agencies; or
(II) for the allowable expenses of such
recipient agencies;for use in carrying out
this subtitle.
389
(B) Funds allocated to a State under this sec-
tion may, upon State request, be allocated before
States satisfy the matching requirement specified in
subparagraph (A), based on the estimated contribu-
tion required. The Secretary shall periodically rec-
oncile estimated and actual contributions and adjust
allocations to the State to correct for overpayments
and underpayments.
(C) Any funds distributed for administrative
costs under section 1060(b) shall not be covered by
this paragraph.
(5) States may not charge for commodities
made available to eligible recipient agencies, and
may not pass on to such recipient agencies the cost
of any matching requirements, under this subtitle.
(c) VALUE OF COMMODITIES.—The value of the com-
modities made available under subsections (c) and (d) of
section 1052, and the funds of the Corporation used to
pay the costs of initial processing, packaging (including
forms suitable for home use), and delivering commodities
to the States shall not be charged against appropriations
authorized by this section.
SEC. 1060. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
(a) From the funds appropriated under section
1059(a), $94,500,000 shall be used for each fiscal year
390
to purchase and distribute commodities to supplemental
feeding programs serving woman, infants, and children or
elderly individuals (hereinafter in this section referred to
as the ‘‘commodity supplemental food program″), or serv-
ing both groups wherever located.
(b) Not more than 20 percent of the funds made
available under subsection (a) shall be made available to
the States for State and local payments of administrative
costs associated with the distribution of commodities by
eligible recipient agencies under this section. Administra-
tive costs for the purposes of the commodity supplemental
food program shall include, but not be limited to, expenses
for information and referral, operation, monitoring, nutri-
tion education, start-up costs, and general administration,
including staff, warehouse and transportation personnel,
insurance, and administration of the State or local office.
(c)(1) During each fiscal year the commodity supple-
mental food program is in operation, the types, varieties,
and amounts of commodities to be purchased under this
section shall be determined by the Secretary, but, if the
Secretary proposes to make any significant changes in the
types, varieties, or amounts from those that were available
or were planned at the beginning of the fiscal year the
Secretary shall report such changes before implementation
to the Committee on Agriculture of the House of Rep-
391
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
(2) Notwithstanding any other provision of law, the
Commodity Credit Corporation shall, to the extent that
the Commodity Credit Corporation inventory levels per-
mit, provide not less than 9,000,000 pounds of cheese and
not less than 4,000,000 pounds of nonfat dry milk in each
of the fiscal years 1996 through 2000 to the Secretary.
The Secretary shall use such amounts of cheese and non-
fat dry milk to carry out the commodity supplemental food
program before the end of each fiscal year.
(d) The Secretary shall, in each fiscal year, approve
applications of additional sites for the program, including
sites that serve only elderly persons, in areas in which the
program currently does not operate, to the full extent that
applications can be approved within the appropriations
available for the program for the fiscal year and without
reducing actual participation levels (including participa-
tion of elderly persons under subsection (e)) in areas in
which the program is in effect.
(e) If a local agency that administers the commodity
supplemental food program determines that the amount
of funds made available to the agency to carry out this
section exceeds the amount of funds necessary to provide
assistance under such program to women, infants, and
392
children, the agency, with the approval of the Secretary,
may permit low-income elderly persons (as defined by the
Secretary) to participate in and be served by such pro-
gram.
(f)(1) If it is necessary for the Secretary to pay a
significantly higher than expected price for one or more
types of commodities purchased under this section, the
Secretary shall promptly determine whether the price is
likely to cause the number of persons that can be served
in the program in a fiscal year to decline.
(2) If the Secretary determines that such a decline
would occur, the Secretary shall promptly notify the State
agencies charged with operating the program of the de-
cline and shall ensure that a State agency notify all local
agencies operating the program in the State of the decline.
(g) Commodities distributed to States pursuant to
this section shall not be considered in determining the
commodity allocation to each State under section 1055 or
priority of distribution under section 1056.
SEC. 1061. COMMODITIES NOT INCOME.
Notwithstanding any other provision of law, commod-
ities distributed under this subtitle shall not be considered
income or resources for purposes of determining recipient
eligibility under any Federal, State, or local means-tested
program.
393
SEC. 
1062. 
PROHIBITION 
AGAINST 
CERTAIN 
STATE
CHARGES.
Whenever a commodity is made available without
charge or credit under this subtitle by the Secretary for
distribution within the States to eligible recipient agencies,
the State may not charge recipient agencies any amount
that is in excess of the State’s direct costs of storing, and
transporting to recipient agencies the commodities minus
any amount the Secretary provides the State for the costs
of storing and transporting such commodities.
SEC. 1063. DEFINITIONS.
As used in this subtitle:
(1) The term ‘‘average monthly number of un-
employed persons’’ means the average monthly num-
ber of unemployed persons within a State in the
most recent fiscal year for which such information is
available as determined by the Bureau of Labor Sta-
tistics of the Department of Labor.
(2) The term ‘‘elderly persons’’ means individ-
uals 60 years of age or older.
(3) The term ‘‘eligible recipient agency’’ means
a public or nonprofit organization that admin-
isters—
(A) an institution providing commodities to
supplemental feeding programs serving women,
394
infants, and children or serving elderly persons,
or serving both groups;
(B) an emergency feeding organization;
(C) a charitable institution (including hos-
pitals and retirement homes and excluding
penal institutions) to the extent that such insti-
tution serves needy persons;
(D) a summer camp for children, or a
child nutrition program providing food service;
(E) a nutrition project operating under the
Older Americans Act of 1965, including such
projects that operate a congregate nutrition site
and a project that provides home-delivered
meals; or
(F) a disaster relief program; and that has
been designated by the appropriate State agen-
cy, or by the Secretary, and approved by the
Secretary for participation in the program es-
tablished under this subtitle.
(4) The term ‘‘emergency feeding organization’’
means a public or nonprofit organization that ad-
ministers activities and projects (including the activi-
ties 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 eligi-
395
ble recipient agency) providing nutrition assistance
to relieve situations of emergency and distress
through the provision of food to needy persons, in-
cluding low-income and unemployed persons.
(5) The term ‘‘food bank’’ means a public and
charitable institution that maintains an established
operation involving the provision of food or edible
commodities, or the products thereof, to food pan-
tries, soup kitchens, hunger relief centers, or other
food or feeding centers that, as an integral part of
their normal activities, provide meals or food to feed
needy persons on a regular basis.
(6) 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.
(7) The term ‘‘needy persons’’ means—
(A) individuals who have low incomes or
who are unemployed, as determined by the
State (in no event shall the income of such indi-
vidual or household exceed 185 percent of the
poverty line);
396
(B) households certified as eligible to par-
ticipate in the food stamp program under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.); or
(C) individuals or households participating
in any other Federal, or federally assisted,
means-tested program.
(8) The term ‘‘poverty line’’ has the same
meaning given such term in section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)).
(9) The term ‘‘soup kitchen’’ means a public
and charitable institution that, as integral part of its
normal activities, maintains an established feeding
operation to provide food to needy homeless persons
on a regular basis.
SEC. 1064. REGULATIONS.
(a) The Secretary shall issue regulations within 120
days to implement this subtitle.
(b) In administering this subtitle, the Secretary shall
minimize, to the maximum extent practicable, the regu-
latory, recordkeeping, and paperwork requirements im-
posed on eligible recipient agencies.
(c) The Secretary shall as early as feasible but not
later than the beginning of each fiscal year, publish in the
397
Federal Register a nonbinding estimate of the types and
quantities of commodities that the Secretary anticipates
are likely to be made available under the commodity dis-
tribution program under this subtitle during the fiscal
year.
(d) The regulations issued by the Secretary under
this section shall include provisions that set standards
with respect to liability for commodity losses for the com-
modities distributed under this subtitle in situations in
which there is no evidence of negligence or fraud, and con-
ditions for payment to cover such losses. Such provisions
shall take into consideration the special needs and cir-
cumstances of eligible recipient agencies.
SEC. 1065. FINALITY OF DETERMINATIONS.
Determinations made by the Secretary under this
subtitle and the facts constituting the basis for any dona-
tion of commodities under this subtitle, or the amount
thereof, when officially determined in conformity with the
applicable regulations prescribed by the Secretary, shall
be final and conclusive and shall not be reviewable by any
other officer or agency of the Government.
SEC. 1066. RELATIONSHIP TO OTHER PROGRAMS.
(a) Section 4(b) of the Food Stamp Act of 1977 (7
U.S.C. 2013(b)) shall not apply with respect to the dis-
tribution of commodities under this subtitle.
398
(b) Except as otherwise provided in section 1057,
none of the commodities distributed under this subtitle
shall be sold or otherwise disposed of in commercial chan-
nels in any form.
SEC. 1067. SETTLEMENT AND ADJUSTMENT OF CLAIMS.
(a) The Secretary may—
(1) determine the amount of, settle, and adjust
any claim arising under this subtitle; and
(2) waive such a claim if the Secretary deter-
mines that to do so will serve the purposes of this
subtitle.
(b) Nothing contained in this section shall be con-
strued to diminish the authority of the Attorney General
of the United States under section 516 of title 28, United
States Code, to conduct litigation on behalf of the United
States.
SEC. 1068. REPEALERS; AMENDMENTS.
(a) REPEALER.—The Emergency Food Assistance
Act of 1983 (7 U.S.C. 612c note) is repealed.
(b) AMENDMENTS.—
(1) The Hunger Prevention Act of 1988 (7
U.S.C. 612c note) is amended—
(A) by striking section 110; and
(B) by striking section 502.