WELFARE REFORM LAW - H.R. 3734 TITLE VIII - FOOD STAMPS AND COMMODITY DISTRIBUTION TITLE VIII--FOOD STAMPS AND COMMODITY DISTRIBUTION SUBTITLE A--FOOD STAMP PROGRAM SEC. 801. DEFINITION OF CERTIFICATION PERIOD. Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended by striking `Except as provided' and all that follows and inserting the following: `The certification period shall not exceed 12 months, except that the certification period may be up to 24 months if all adult household members are elderly or disabled. A State agency shall have at least 1 contact with each certified household every 12 months.'. SEC. 802. DEFINITION OF COUPON. Section 3(d) of the Food Stamp Act of 1977 (7 U.S.C. 2012(d)) is amended by striking `or type of certificate' and inserting `type of certificate, authorization card, cash or check issued in lieu of a coupon, or access device, including an electronic benefit transfer card or personal identification number,'. SEC. 803. TREATMENT OF CHILDREN LIVING AT HOME. The second sentence of section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by striking `(who are not themselves parents living with their children or married and living with their spouses)'. SEC. 804. ADJUSTMENT OF THRIFTY FOOD PLAN. The second sentence of section 3(o) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended-- (1) by striking `shall (1) make' and inserting the following: `shall-- `(1) make'; (2) by striking `scale, (2) make' and inserting the following: `scale; `(2) make'; (3) by striking `Alaska, (3) make' and inserting the following: `Alaska; `(3) make'; and (4) by striking `Columbia, (4) through' and all that follows through the end of the subsection and inserting the following: `Columbia; and `(4) on October 1, 1996, and each October 1 thereafter, adjust the cost of the diet to reflect the cost of the diet in the preceding June, and round the result to the nearest lower dollar increment for each household size, except that on October 1, 1996, the Secretary may not reduce the cost of the diet in effect on September 30, 1996.'. SEC. 805. DEFINITION OF HOMELESS INDIVIDUAL. Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 2012(s)(2)(C)) is amended by inserting `for not more than 90 days' after `temporary accommodation'. SEC. 806. STATE OPTION FOR ELIGIBILITY STANDARDS. Section 5(b) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended by striking `(b) The Secretary' and inserting the following: `(b) ELIGIBILITY STANDARDS- Except as otherwise provided in this Act, the Secretary'. SEC. 807. EARNINGS OF STUDENTS. Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(7)) is amended by striking `21' and inserting `17'. SEC. 808. ENERGY ASSISTANCE. (a) IN GENERAL- Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended by striking paragraph (11) and inserting the following: `(11)(A) any payments or allowances made for the purpose of providing energy assistance under any Federal law (other than part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)), or (B) a 1-time payment or allowance made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device,'. (b) CONFORMING AMENDMENTS- Section 5(k) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)) is amended-- (1) in paragraph (1)-- (A) in subparagraph (A), by striking `plan for aid to families with dependent children approved' and inserting `program funded'; and (B) in subparagraph (B), by striking `, not including energy or utility-cost assistance,'; (2) in paragraph (2), by striking subparagraph (C) and inserting the following: `(C) a payment or allowance described in subsection (d)(11);'; and (3) by adding at the end the following: `(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS- `(A) ENERGY ASSISTANCE PAYMENTS- For purposes of subsection (d)(1), a payment made under a State law (other than a law referred to in paragraph (2)(H)) to provide energy assistance to a household shall be considered money payable directly to the household. `(B) ENERGY ASSISTANCE EXPENSES- For purposes of subsection (e)(7), an expense paid on behalf of a household under a State law to provide energy assistance shall be considered an out-of-pocket expense incurred and paid by the household.'. SEC. 809. DEDUCTIONS FROM INCOME. (a) IN GENERAL- Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended by striking subsection (e) and inserting the following: `(e) DEDUCTIONS FROM INCOME- `(1) STANDARD DEDUCTION- The Secretary shall allow a standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States of $134, $229, $189, $269, and $118, respectively. `(2) EARNED INCOME DEDUCTION- `(A) DEFINITION OF EARNED INCOME- In this paragraph, the term `earned income' does not include-- `(i) income excluded by subsection (d); or `(ii) any portion of income earned under a work supplementation or support program, as defined under section 16(b), that is attributable to public assistance. `(B) DEDUCTION- Except as provided in subparagraph (C), a household with earned income shall be allowed a deduction of 20 percent of all earned income to compensate for taxes, other mandatory deductions from salary, and work expenses. `(C) EXCEPTION- The deduction described in subparagraph (B) shall not be allowed with respect to determining an overissuance due to the failure of a household to report earned income in a timely manner. `(3) DEPENDENT CARE DEDUCTION- `(A) IN GENERAL- A household shall be entitled, with respect to expenses (other than excluded expenses described in subparagraph (B)) for dependent care, to a dependent care deduction, the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent, for the actual cost of payments necessary for the care of a dependent if the care enables a household member to accept or continue employment, or training or education that is preparatory for employment. `(B) EXCLUDED EXPENSES- The excluded expenses referred to in subparagraph (A) are-- `(i) expenses paid on behalf of the household by a third party; `(ii) amounts made available and excluded, for the expenses referred to in subparagraph (A), under subsection (d)(3); and `(iii) expenses that are paid under section 6(d)(4). `(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS- `(A) IN GENERAL- A household shall be entitled to a deduction for child support payments made by a household member to or for an individual who is not a member of the household if the household member is legally obligated to make the payments. `(B) METHODS FOR DETERMINING AMOUNT- The Secretary may prescribe by regulation the methods, including calculation on a retrospective basis, that a State agency shall use to determine the amount of the deduction for child support payments. `(5) HOMELESS SHELTER ALLOWANCE- Under rules prescribed by the Secretary, a State agency may develop a standard homeless shelter allowance, which shall not exceed $143 per month, for such expenses as may reasonably be expected to be incurred by households in which all members are homeless individuals but are not receiving free shelter throughout the month. A State agency that develops the allowance may use the allowance in determining eligibility and allotments for the households. The State agency may make a household with extremely low shelter costs ineligible for the allowance. `(6) EXCESS MEDICAL EXPENSE DEDUCTION- `(A) IN GENERAL- A household containing an elderly or disabled member shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical expenses, incurred by the elderly or disabled member, exclusive of special diets, that exceeds $35 per month. `(B) METHOD OF CLAIMING DEDUCTION- `(i) IN GENERAL- A State agency shall offer an eligible household under subparagraph (A) a method of claiming a deduction for recurring medical expenses that are initially verified under the excess medical expense deduction in lieu of submitting information on, or verification of, actual expenses on a monthly basis. `(ii) METHOD- The method described in clause (i) shall-- `(I) be designed to minimize the burden for the eligible elderly or disabled household member choosing to deduct the recurrent medical expenses of the member pursuant to the method; `(II) rely on reasonable estimates of the expected medical expenses of the member for the certification period (including changes that can be reasonably anticipated based on available information about the medical condition of the member, public or private medical insurance coverage, and the current verified medical expenses incurred by the member); and `(III) not require further reporting or verification of a change in medical expenses if such a change has been anticipated for the certification period. `(7) EXCESS SHELTER EXPENSE DEDUCTION- `(A) IN GENERAL- A household shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess shelter expense deduction to the extent that the monthly amount expended by a household for shelter exceeds an amount equal to 50 percent of monthly household income after all other applicable deductions have been allowed. `(B) MAXIMUM AMOUNT OF DEDUCTION- In the case of a household that does not contain an elderly or disabled individual, in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States, the excess shelter expense deduction shall not exceed-- `(i) for the period beginning on the date of enactment of this subparagraph and ending on December 31, 1996, $247, $429, $353, $300, and $182 per month, respectively; `(ii) for the period beginning on January 1, 1997, and ending on September 30, 1998, $250, $434, $357, $304, and $184 per month, respectively; `(iii) for fiscal years 1999 and 2000, $275, $478, $393, $334, and $203 per month, respectively; and `(iv) for fiscal year 2001 and each subsequent fiscal year, $300, $521, $429, $364, and $221 per month, respectively. `(C) STANDARD UTILITY ALLOWANCE- `(i) IN GENERAL- In computing the excess shelter expense deduction, a State agency may use a standard utility allowance in accordance with regulations promulgated by the Secretary, except that a State agency may use an allowance that does not fluctuate within a year to reflect seasonal variations. `(ii) RESTRICTIONS ON HEATING AND COOLING EXPENSES- An allowance for a heating or cooling expense may not be used in the case of a household that-- `(I) does not incur a heating or cooling expense, as the case may be; `(II) does incur a heating or cooling expense but is located in a public housing unit that has central utility meters and charges households, with regard to the expense, only for excess utility costs; or `(III) shares the expense with, and lives with, another individual not participating in the food stamp program, another household participating in the food stamp program, or both, unless the allowance is prorated between the household and the other individual, household, or both. `(iii) MANDATORY ALLOWANCE- `(I) IN GENERAL- A State agency may make the use of a standard utility allowance mandatory for all households with qualifying utility costs if-- `(aa) the State agency has developed 1 or more standards that include the cost of heating and cooling and 1 or more standards that do not include the cost of heating and cooling; and `(bb) the Secretary finds that the standards will not result in an increased cost to the Secretary. `(II) HOUSEHOLD ELECTION- A State agency that has not made the use of a standard utility allowance mandatory under subclause (I) shall allow a household to switch, at the end of a certification period, between the standard utility allowance and a deduction based on the actual utility costs of the household. `(iv) AVAILABILITY OF ALLOWANCE TO RECIPIENTS OF ENERGY ASSISTANCE- `(I) IN GENERAL- Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating or cooling costs, the standard utility allowance shall be made available to households receiving a payment, or on behalf of which a payment is made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if the household still incurs out-of-pocket heating or cooling expenses in excess of any assistance paid on behalf of the household to an energy provider. `(II) SEPARATE ALLOWANCE- A State agency may use a separate standard utility allowance for households on behalf of which a payment described in subclause (I) is made, but may not be required to do so. `(III) STATES NOT ELECTING TO USE SEPARATE ALLOWANCE- A State agency that does not elect to use a separate allowance but makes a single standard utility allowance available to households incurring heating or cooling expenses (other than a household described in subclause (I) or (II) of clause (ii)) may not be required to reduce the allowance due to the provision (directly or indirectly) of assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.). `(IV) PRORATION OF ASSISTANCE- For the purpose of the food stamp program, assistance provided under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall be considered to be prorated over the entire heating or cooling season for which the assistance was provided.'. (b) CONFORMING AMENDMENT- Section 11(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(3)) is amended by striking `. Under rules prescribed' and all that follows through `verifies higher expenses'. SEC. 810. VEHICLE ALLOWANCE. Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by striking paragraph (2) and inserting the following: `(2) INCLUDED ASSETS- `(A) IN GENERAL- Subject to the other provisions of this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow the regulations in force as of June 1, 1982 (other than those relating to licensed vehicles and inaccessible resources). `(B) ADDITIONAL INCLUDED ASSETS- The Secretary shall include in financial resources-- `(i) any boat, snowmobile, or airplane used for recreational purposes; `(ii) any vacation home; `(iii) any mobile home used primarily for vacation purposes; `(iv) subject to subparagraph (C), any licensed vehicle that is used for household transportation or to obtain or continue employment to the extent that the fair market value of the vehicle exceeds $4,600 through September 30, 1996, and $4,650 beginning October 1, 1996; and `(v) any savings or retirement account (including an individual account), regardless of whether there is a penalty for early withdrawal. `(C) EXCLUDED VEHICLES- A vehicle (and any other property, real or personal, to the extent the property is directly related to the maintenance or use of the vehicle) shall not be included in financial resources under this paragraph if the vehicle is-- `(i) used to produce earned income; `(ii) necessary for the transportation of a physically disabled household member; or `(iii) depended on by a household to carry fuel for heating or water for home use and provides the primary source of fuel or water, respectively, for the household.'. SEC. 811. VENDOR PAYMENTS FOR TRANSITIONAL HOUSING COUNTED AS INCOME. Section 5(k)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(k)(2)) is amended-- (1) by striking subparagraph (F); and (2) by redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively. SEC. 812. SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED. Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), as amended by title I, is amended by adding at the end the following: `(m) SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED- `(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a procedure by which a State may submit a method, designed to not increase Federal costs, for the approval of the Secretary, that the Secretary determines will produce a reasonable estimate of income excluded under subsection (d)(9) in lieu of calculating the actual cost of producing self-employment income. `(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES OF INCOME- The method submitted by a State under paragraph (1) may allow a State to estimate income for all types of self-employment income or may be limited to 1 or more types of self-employment income. `(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME- The method submitted by a State under paragraph (1) may differ for different types of self-employment income.'. SEC. 813. 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), by striking `six months' and inserting `1 year'; and (2) in clause (ii), by striking `1 year' and inserting `2 years'. SEC. 814. DISQUALIFICATION OF CONVICTED INDIVIDUALS. Section 6(b)(1)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 2015(b)(1)(iii)) is amended-- (1) in subclause (II), by striking `or' at the end; (2) in subclause (III), by striking the period at the end and inserting `; or'; and (3) by inserting after subclause (III) the following: `(IV) a conviction of an offense under subsection (b) or (c) of section 15 involving an item covered by subsection (b) or (c) of section 15 having a value of $500 or more.'. SEC. 815. DISQUALIFICATION. (a) IN GENERAL- Section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)) is amended by striking `(d)(1) Unless otherwise exempted by the provisions' and all that follows through the end of paragraph (1) and inserting the following: `(d) CONDITIONS OF PARTICIPATION- `(1) WORK REQUIREMENTS- `(A) IN GENERAL- No physically and mentally fit individual over the age of 15 and under the age of 60 shall be eligible to participate in the food stamp program if the individual-- `(i) refuses, at the time of application and every 12 months thereafter, to register for employment in a manner prescribed by the Secretary; `(ii) refuses without good cause to participate in an employment and training program established under paragraph (4), to the extent required by the State agency; `(iii) refuses without good cause to accept an offer of employment, at a site or plant not subject to a strike or lockout at the time of the refusal, at a wage not less than the higher of-- `(I) the applicable Federal or State minimum wage; or `(II) 80 percent of the wage that would have governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been applicable to the offer of employment; `(iv) refuses without good cause to provide a State agency with sufficient information to allow the State agency to determine the employment status or the job availability of the individual; `(v) voluntarily and without good cause-- `(I) quits a job; or `(II) reduces work effort and, after the reduction, the individual is working less than 30 hours per week; or `(vi) fails to comply with section 20. `(B) HOUSEHOLD INELIGIBILITY- If an individual who is the head of a household becomes ineligible to participate in the food stamp program under subparagraph (A), the household shall, at the option of the State agency, become ineligible to participate in the food stamp program for a period, determined by the State agency, that does not exceed the lesser of-- `(i) the duration of the ineligibility of the individual determined under subparagraph (C); or `(ii) 180 days. `(C) DURATION OF INELIGIBILITY- `(i) FIRST VIOLATION- The first time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of-- `(I) the date the individual becomes eligible under subparagraph (A); `(II) the date that is 1 month after the date the individual became ineligible; or `(III) a date determined by the State agency that is not later than 3 months after the date the individual became ineligible. `(ii) SECOND VIOLATION- The second time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of-- `(I) the date the individual becomes eligible under subparagraph (A); `(II) the date that is 3 months after the date the individual became ineligible; or `(III) a date determined by the State agency that is not later than 6 months after the date the individual became ineligible. `(iii) THIRD OR SUBSEQUENT VIOLATION- The third or subsequent time that an individual becomes ineligible to participate in the food stamp program under subparagraph (A), the individual shall remain ineligible until the later of-- `(I) the date the individual becomes eligible under subparagraph (A); `(II) the date that is 6 months after the date the individual became ineligible; `(III) a date determined by the State agency; or `(IV) at the option of the State agency, permanently. `(D) ADMINISTRATION- `(i) GOOD CAUSE- The Secretary shall determine the meaning of good cause for the purpose of this paragraph. `(ii) VOLUNTARY QUIT- The Secretary shall determine the meaning of voluntarily quitting and reducing work effort for the purpose of this paragraph. `(iii) DETERMINATION BY STATE AGENCY- `(I) IN GENERAL- Subject to subclause (II) and clauses (i) and (ii), a State agency shall determine-- `(aa) the meaning of any term used in subparagraph (A); `(bb) the procedures for determining whether an individual is in compliance with a requirement under subparagraph (A); and `(cc) whether an individual is in compliance with a requirement under subpara-graph (A). `(II) NOT LESS RESTRICTIVE- A State agency may not use a meaning, procedure, or determination under subclause (I) that is less restrictive on individuals receiving benefits under this Act than a comparable meaning, procedure, or determination under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.). `(iv) STRIKE AGAINST THE GOVERNMENT- For the purpose of subparagraph (A)(v), an employee of the Federal Government, a State, or a political subdivision of a State, who is dismissed for participating in a strike against the Federal Government, the State, or the political subdivision of the State shall be considered to have voluntarily quit without good cause. `(v) SELECTING A HEAD OF HOUSEHOLD- `(I) IN GENERAL- For purposes of this paragraph, the State agency shall allow the household to select any adult parent of a child in the household as the head of the household if all adult household members making application under the food stamp program agree to the selection. `(II) TIME FOR MAKING DESIGNATION- A household may designate the head of the household under subclause (I) each time the household is certified for participation in the food stamp program, but may not change the designation during a certification period unless there is a change in the composition of the household. `(vi) CHANGE IN HEAD OF HOUSEHOLD- If the head of a household leaves the household during a period in which the household is ineligible to participate in the food stamp program under subparagraph (B)-- `(I) the household shall, if otherwise eligible, become eligible to participate in the food stamp program; and `(II) if the head of the household becomes the head of another household, the household that becomes headed by the individual shall become ineligible to participate in the food stamp program for the remaining period of ineligibility.'. (b) CONFORMING AMENDMENT- (1) The second sentence of section 17(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is amended by striking `6(d)(1)(i)' and inserting `6(d)(1)(A)(i)'. (2) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 2029) is amended by striking subsection (f) and inserting the following: `(f) DISQUALIFICATION- An individual or a household may become ineligible under section 6(d)(1) to participate in the food stamp program for failing to comply with this section.'. SEC. 816. CARETAKER EXEMPTION. Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) is amended by adding at the end the following: `A State that requested a waiver to lower the age specified in subparagraph (B) and had the waiver denied by the Secretary as of August 1, 1996, may, for a period of not more than 3 years, lower the age of a dependent child that qualifies a parent or other member of a household for an exemption under subparagraph (B) to between 1 and 6 years of age.'. SEC. 817. EMPLOYMENT AND TRAINING. (a) IN GENERAL- Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended-- (1) by striking `(4)(A) Not later than April 1, 1987, each' and inserting the following: `(4) EMPLOYMENT AND TRAINING- `(A) IN GENERAL- `(i) IMPLEMENTATION- Each'; (2) in subparagraph (A)-- (A) by inserting `work,' after `skills, training,'; and (B) by adding at the end the following: `(ii) STATEWIDE WORKFORCE DEVELOPMENT SYSTEM- Each component of an employment and training program carried out under this paragraph shall be delivered through a statewide workforce development system, unless the component is not available locally through such a system.'; (3) in subparagraph (B)-- (A) in the matter preceding clause (i), by striking the colon at the end and inserting the following: `, except that the State agency shall retain the option to apply employment requirements prescribed under this subparagraph to a program applicant at the time of application:'; (B) in clause (i), by striking `with terms and conditions' and all that follows through `time of application'; and (C) in clause (iv)-- (i) by striking subclauses (I) and (II); and (ii) by redesignating subclauses (III) and (IV) as subclauses (I) and (II), respectively; (4) in subparagraph (D)-- (A) in clause (i), by striking `to which the application' and all that follows through `30 days or less'; (B) in clause (ii), by striking `but with respect' and all that follows through `child care'; and (C) in clause (iii), by striking `, on the basis of' and all that follows through `clause (ii)' and inserting `the exemption continues to be valid'; (5) in subparagraph (E), by striking the third sentence; (6) in subparagraph (G)-- (A) by striking `(G)(i) The State' and inserting `(G) The State'; and (B) by striking clause (ii); (7) in subparagraph (H), by striking `(H)(i) The Secretary' and all that follows through `(ii) Federal funds' and inserting `(H) Federal funds'; (8) in subparagraph (I)(i)(II), by striking `, or was in operation,' and all that follows through `Social Security Act' and inserting the following: `), except that no such payment or reimbursement shall exceed the applicable local market rate'; (9)(A) by striking subparagraphs (K) and (L) and inserting the following: `(K) LIMITATION ON FUNDING- Notwithstanding any other provision of this paragraph, the amount of funds a State agency uses to carry out this paragraph (including funds used to carry out subparagraph (I)) for participants who are receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) shall not exceed the amount of funds the State agency used in fiscal year 1995 to carry out this paragraph for participants who were receiving benefits in fiscal year 1995 under a State program funded under part A of title IV of the Act (42 U.S.C. 601 et seq.).'; and (B) by redesignating subparagraphs (M) and (N) as subparagraphs (L) and (M), respectively; and (10) in subparagraph (L), as so redesignated-- (A) by striking `(L)(i) The Secretary' and inserting `(L) The Secretary'; and (B) by striking clause (ii). (b) FUNDING- Section 16(h) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)) is amended by striking `(h)(1)(A) The Secretary' and all that follows through the end of paragraph (1) and inserting the following: `(h) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS- `(1) IN GENERAL- `(A) AMOUNTS- To carry out employment and training programs, the Secretary shall reserve for allocation to State agencies from funds made available for each fiscal year under section 18(a)(1) the amount of-- `(i) for fiscal year 1996, $75,000,000; `(ii) for fiscal year 1997, $79,000,000; `(iii) for fiscal year 1998, $81,000,000; `(iv) for fiscal year 1999, $84,000,000; `(v) for fiscal year 2000, $86,000,000; `(vi) for fiscal year 2001, $88,000,000; and `(vii) for fiscal year 2002, $90,000,000. `(B) ALLOCATION- The Secretary shall allocate the amounts reserved under subparagraph (A) among the State agencies using a reasonable formula (as determined by the Secretary) that gives consideration to the population in each State affected by section 6(o). `(C) REALLOCATION- `(i) NOTIFICATION- A State agency shall promptly notify the Secretary if the State agency determines that the State agency will not expend all of the funds allocated to the State agency under subparagraph (B). `(ii) REALLOCATION- On notification under clause (i), the Secretary shall reallocate the funds that the State agency will not expend as the Secretary considers appropriate and equitable. `(D) MINIMUM ALLOCATION- Notwithstanding subparagraphs (A) through (C), the Secretary shall ensure that each State agency operating an employment and training program shall receive not less than $50,000 for each fiscal year.'. (c) ADDITIONAL MATCHING FUNDS- Section 16(h)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(2)) is amended by inserting before the period at the end the following: `, including the costs for case management and casework to facilitate the transition from economic dependency to self-sufficiency through work'. (d) REPORTS- Section 16(h) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)) is amended-- (1) in paragraph (5)-- (A) by striking `(5)(A) The Secretary' and inserting `(5) The Secretary'; and (B) by striking subparagraph (B); and (2) by striking paragraph (6). SEC. 818. FOOD STAMP ELIGIBILITY. The third sentence of section 6(f) of the Food Stamp Act of 1977 (7 U.S.C. 2015(f)) is amended by inserting `, at State option,' after `less'. SEC. 819. COMPARABLE TREATMENT FOR DISQUALIFICATION. (a) IN GENERAL- Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is amended by adding at the end the following: `(i) COMPARABLE TREATMENT FOR DISQUALIFICATION- `(1) IN GENERAL- If a disqualification is imposed on a member of a household for a failure of the member to perform an action required under a Federal, State, or local law relating to a means-tested public assistance program, the State agency may impose the same disqualification on the member of the household under the food stamp program. `(2) RULES AND PROCEDURES- If a disqualification is imposed under paragraph (1) for a failure of an individual to perform an action required under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the State agency may use the rules and procedures that apply under part A of title IV of the Act to impose the same disqualification under the food stamp program. `(3) APPLICATION AFTER DISQUALIFICATION PERIOD- A member of a household disqualified under paragraph (1) may, after the disqualification period has expired, apply for benefits under this Act and shall be treated as a new applicant, except that a prior disqualification under subsection (d) shall be considered in determining eligibility.'. (b) STATE PLAN PROVISIONS- Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended-- (1) in paragraph (24), by striking `and' at the end; (2) in paragraph (25), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: `(26) the guidelines the State agency uses in carrying out section 6(i); and'. (c) CONFORMING AMENDMENT- Section 6(d)(2)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)(A)) is amended by striking `that is comparable to a requirement of paragraph (1)'. SEC. 820. DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP BENEFITS. Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 819, is amended by adding at the end the following: `(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE FOOD STAMP BENEFITS- An individual shall be ineligible to participate in the food stamp program as a member of any household for a 10-year period if the individual is found by a State agency to have made, or is convicted in a Federal or State court of having made, a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive multiple benefits simultaneously under the food stamp program.'. SEC. 821. DISQUALIFICATION OF FLEEING FELONS. Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 820, is amended by adding at the end the following: `(k) DISQUALIFICATION OF FLEEING FELONS- No member of a household who is otherwise eligible to participate in the food stamp program shall be eligible to participate in the program as a member of that or any other household during any period during which the individual is-- `(1) fleeing to avoid prosecution, or custody or confinement after conviction, under the law of the place from which the individual is fleeing, for a crime, or attempt to commit a crime, that is a felony under the law of the place from which the individual is fleeing or that, in the case of New Jersey, is a high misdemeanor under the law of New Jersey; or `(2) violating a condition of probation or parole imposed under a Federal or State law.'. SEC. 822. COOPERATION WITH CHILD SUPPORT AGENCIES. Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 821, is amended by adding at the end the following: `(l) CUSTODIAL PARENT'S COOPERATION WITH CHILD SUPPORT AGENCIES- `(1) IN GENERAL- At the option of a State agency, subject to paragraphs (2) and (3), no natural or adoptive parent or other individual (collectively referred to in this subsection as `the individual') who is living with and exercising parental control over a child under the age of 18 who has an absent parent shall be eligible to participate in the food stamp program unless the individual cooperates with the State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.)-- `(A) in establishing the paternity of the child (if the child is born out of wedlock); and `(B) in obtaining support for-- `(i) the child; or `(ii) the individual and the child. `(2) GOOD CAUSE FOR NONCOOPERATION- Paragraph (1) shall not apply to the individual if good cause is found for refusing to cooperate, as determined by the State agency in accordance with standards prescribed by the Secretary in consultation with the Secretary of Health and Human Services. The standards shall take into consideration circumstances under which cooperation may be against the best interests of the child. `(3) FEES- Paragraph (1) shall not require the payment of a fee or other cost for services provided under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.). `(m) NONCUSTODIAL PARENT'S COOPERATION WITH CHILD SUPPORT AGENCIES- `(1) IN GENERAL- At the option of a State agency, subject to paragraphs (2) and (3), a putative or identified noncustodial parent of a child under the age of 18 (referred to in this subsection as `the individual') shall not be eligible to participate in the food stamp program if the individual refuses to cooperate with the State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.)-- `(A) in establishing the paternity of the child (if the child is born out of wedlock); and `(B) in providing support for the child. `(2) REFUSAL TO COOPERATE- `(A) GUIDELINES- The Secretary, in consultation with the Secretary of Health and Human Services, shall develop guidelines on what constitutes a refusal to cooperate under paragraph (1). `(B) PROCEDURES- The State agency shall develop procedures, using guidelines developed under subparagraph (A), for determining whether an individual is refusing to cooperate under paragraph (1). `(3) FEES- Paragraph (1) shall not require the payment of a fee or other cost for services provided under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.). `(4) PRIVACY- The State agency shall provide safeguards to restrict the use of information collected by a State agency administering the program established under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) to purposes for which the information is collected.'. SEC. 823. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS. Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 822, is amended by adding at the end the following: `(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS- `(1) IN GENERAL- At the option of a State agency, no individual shall be eligible to participate in the food stamp program as a member of any household during any month that the individual is delinquent in any payment due under a court order for the support of a child of the individual. `(2) EXCEPTIONS- Paragraph (1) shall not apply if-- `(A) a court is allowing the individual to delay payment; or `(B) the individual is complying with a payment plan approved by a court or the State agency designated under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) to provide support for the child of the individual.'. SEC. 824. WORK REQUIREMENT. (a) IN GENERAL- Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), as amended by section 823, is amended by adding at the end the following: `(o) WORK REQUIREMENT- `(1) DEFINITION OF WORK PROGRAM- In this subsection, the term `work program' means-- `(A) a program under the Job Training Partnership Act (29 U.S.C. 1501 et seq.); `(B) a program under section 236 of the Trade Act of 1974 (19 U.S.C. 2296); and `(C) a program of employment and training operated or supervised by a State or political subdivision of a State that meets standards approved by the Governor of the State, including a program under subsection (d)(4), other than a job search program or a job search training program. `(2) WORK REQUIREMENT- Subject to the other provisions of this subsection, no individual shall be eligible to participate in the food stamp program as a member of any household if, during the preceding 36-month period, the individual received food stamp benefits for not less than 3 months (consecutive or otherwise) during which the individual did not-- `(A) work 20 hours or more per week, averaged monthly; `(B) participate in and comply with the requirements of a work program for 20 hours or more per week, as determined by the State agency; `(C) participate in and comply with the requirements of a program under section 20 or a comparable program established by a State or political subdivision of a State; or `(D) receive benefits pursuant to paragraph (3), (4), or (5). `(3) EXCEPTION- Paragraph (2) shall not apply to an individual if the individual is-- `(A) under 18 or over 50 years of age; `(B) medically certified as physically or mentally unfit for employment; `(C) a parent or other member of a household with responsibility for a dependent child; `(D) otherwise exempt under subsection (d)(2); or `(E) a pregnant woman. `(4) WAIVER- `(A) IN GENERAL- On the request of a State agency, the Secretary may waive the applicability of paragraph (2) to any group of individuals in the State if the Secretary makes a determination that the area in which the indi-viduals reside-- `(i) has an unemployment rate of over 10 per-cent; or `(ii) does not have a sufficient number of jobs to provide employment for the individuals. `(B) REPORT- The Secretary shall report the basis for a waiver under subparagraph (A) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. `(5) SUBSEQUENT ELIGIBILITY- `(A) REGAINING ELIGIBILITY- An individual denied eligibility under paragraph (2) shall regain eligibility to participate in the food stamp program if, during a 30-day period, the individual-- `(i) works 80 or more hours; `(ii) participates in and complies with the requirements of a work program for 80 or more hours, as determined by a State agency; or `(iii) participates in and complies with the requirements of a program under section 20 or a comparable program established by a State or political subdivision of a State. `(B) MAINTAINING ELIGIBILITY- An individual who regains eligibility under subparagraph (A) shall remain eligible as long as the individual meets the requirements of subparagraph (A), (B), or (C) of paragraph (2). `(C) LOSS OF EMPLOYMENT- `(i) IN GENERAL- An individual who regained eligibility under subparagraph (A) and who no longer meets the requirements of subparagraph (A), (B), or (C) of paragraph (2) shall remain eligible for a consecutive 3-month period, beginning on the date the individual first notifies the State agency that the individual no longer meets the requirements of subparagraph (A), (B), or (C) of paragraph (2). `(ii) LIMITATION- An individual shall not receive any benefits pursuant to clause (i) for more than a single 3-month period in any 36-month period. `(6) OTHER PROGRAM RULES- Nothing in this subsection shall make an individual eligible for benefits under this Act if the individual is not otherwise eligible for benefits under the other provisions of this Act.'. (b) TRANSITION PROVISION- The term `preceding 36-month period' in section 6(o) of the Food Stamp Act of 1977, as added by subsection (a), does not include, with respect to a State, any period before the earlier of-- (1) the date the State notifies recipients of food stamp benefits of the application of section 6(o); or (2) the date that is 3 months after the date of enactment of this Act. SEC. 825. ENCOURAGEMENT OF ELECTRONIC BENEFIT TRANSFER SYSTEMS. (a) IN GENERAL- Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)) is amended-- (1) by striking `(i)(1)(A) Any State' and all that follows through the end of paragraph (1) and inserting the following: `(i) ELECTRONIC BENEFIT TRANSFERS- `(1) IN GENERAL- `(A) IMPLEMENTATION- Not later than October 1, 2002, each State agency shall implement an electronic benefit transfer system under which household benefits determined under section 8(a) or 26 are issued from and stored in a central databank, unless the Secretary provides a waiver for a State agency that faces unusual barriers to implementing an electronic benefit transfer system. `(B) TIMELY IMPLEMENTATION- Each State agency is encouraged to implement an electronic benefit transfer system under subparagraph (A) as soon as practicable. `(C) STATE FLEXIBILITY- Subject to paragraph (2), a State agency may procure and implement an electronic benefit transfer system under the terms, conditions, and design that the State agency considers appropriate. `(D) OPERATION- An electronic benefit transfer system should take into account generally accepted standard operating rules based on-- `(i) commercial electronic funds transfer technology; `(ii) the need to permit interstate operation and law enforcement monitoring; and `(iii) the need to permit monitoring and investigations by authorized law enforcement agencies.'; (2) in paragraph (2)-- (A) by striking `effective no later than April 1, 1992,'; (B) in subparagraph (A)-- (i) by striking `, in any 1 year,'; and (ii) by striking `on-line'; (C) by striking subparagraph (D) and inserting the following: `(D)(i) measures to maximize the security of a system using the most recent technology available that the State agency considers appropriate and cost effective and which may include personal identification numbers, photographic identification on electronic benefit transfer cards, and other measures to protect against fraud and abuse; and `(ii) effective not later than 2 years after the date of enactment of this clause, to the extent practicable, measures that permit a system to differentiate items of food that may be acquired with an allotment from items of food that may not be acquired with an allotment;'; (D) in subparagraph (G), by striking `and' at the end; (E) in subparagraph (H), by striking the period at the end and inserting `; and'; and (F) by adding at the end the following: `(I) procurement standards.'; and (3) by adding at the end the following: `(7) REPLACEMENT OF BENEFITS- Regulations issued by the Secretary regarding the replacement of benefits and liability for replacement of benefits under an electronic benefit transfer system shall be similar to the regulations in effect for a paper-based food stamp issuance system. `(8) REPLACEMENT CARD FEE- A State agency may collect a charge for replacement of an electronic benefit transfer card by reducing the monthly allotment of the household receiving the replacement card. `(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION- `(A) IN GENERAL- A State agency may require that an electronic benefit card contain a photograph of 1 or more members of a household. `(B) OTHER AUTHORIZED USERS- If a State agency requires a photograph on an electronic benefit card under subparagraph (A), the State agency shall establish procedures to ensure that any other appropriate member of the household or any authorized representative of the household may utilize the card. `(10) APPLICABLE LAW- Disclosures, protections, responsibilities, and remedies established by the Federal Reserve Board under section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) shall not apply to benefits under this Act delivered through any electronic benefit transfer system. `(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELECTRONIC BENEFIT TRANSFER SYSTEMS- `(A) DEFINITIONS- In this paragraph: `(i) AFFILIATE- The term `affiliate' has the meaning provided the term in section 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k)). `(ii) COMPANY- The term `company' has the meaning provided the term in section 106(a) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1971), but shall not include a bank, a bank holding company, or any subsidiary of a bank holding company. `(iii) ELECTRONIC BENEFIT TRANSFER SERVICE- The term `electronic benefit transfer service' means the processing of electronic transfers of household benefits, determined under section 8(a) or 26, if the benefits are-- `(I) issued from and stored in a central databank; `(II) electronically accessed by household members at the point of sale; and `(III) provided by a Federal or State government. `(iv) POINT-OF-SALE SERVICE- The term `point-of-sale service' means any product or service related to the electronic authorization and processing of payments for merchandise at a retail food store, including credit or debit card services, automated teller machines, point-of-sale terminals, or access to on-line systems. `(B) RESTRICTIONS- A company may not sell or provide electronic benefit transfer services, or fix or vary the consideration for electronic benefit transfer services, on the condition or requirement that the customer-- `(i) obtain some additional point-of-sale service from the company or an affiliate of the company; or `(ii) not obtain some additional point-of-sale service from a competitor of the company or competitor of any affiliate of the company. `(C) CONSULTATION WITH THE FEDERAL RESERVE BOARD- Before promulgating regulations or interpretations of regulations to carry out this paragraph, the Secretary shall consult with the Board of Governors of the Federal Reserve System.'. (b) SENSE OF CONGRESS- It is the sense of Congress that a State that operates an electronic benefit transfer system under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) should operate the system in a manner that is compatible with electronic benefit transfer systems operated by other States. SEC. 826. VALUE OF MINIMUM ALLOTMENT. The proviso in section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is amended by striking `, and shall be adjusted' and all that follows through `$5'. SEC. 827. BENEFITS ON RECERTIFICATION. Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)(2)(B)) is amended by striking `of more than one month'. SEC. 828. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS. Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 2017(c)) is amended by striking paragraph (3) and inserting the following: `(3) OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS- A State agency may provide to an eligible household applying after the 15th day of a month, in lieu of the initial allotment of the household and the regular allotment of the household for the following month, an allotment that is equal to the total amount of the initial allotment and the first regular allotment. The allotment shall be provided in accordance with section 11(e)(3) in the case of a household that is not entitled to expedited service and in accordance with paragraphs (3) and (9) of section 11(e) in the case of a household that is entitled to expedited service.'. SEC. 829. FAILURE TO COMPLY WITH OTHER MEANS-TESTED PUBLIC ASSISTANCE PROGRAMS. Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended by striking subsection (d) and inserting the following: `(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS- `(1) IN GENERAL- If the benefits of a household are reduced under a Federal, State, or local law relating to a means-tested public assistance program for the failure of a member of the household to perform an action required under the law or program, for the duration of the reduction-- `(A) the household may not receive an increased allotment as the result of a decrease in the income of the household to the extent that the decrease is the result of the reduction; and `(B) the State agency may reduce the allotment of the household by not more than 25 percent. `(2) RULES AND PROCEDURES- If the allotment of a household is reduced under this subsection for a failure to perform an action required under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the State agency may use the rules and procedures that apply under part A of title IV of the Act to reduce the allotment under the food stamp program.'. SEC. 830. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS. Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is amended by adding at the end the following: `(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS- `(1) IN GENERAL- In the case of an individual who resides in a center for the purpose of a drug or alcoholic treatment program described in the last sentence of section 3(i), a State agency may provide an allotment for the individual to-- `(A) the center as an authorized representative of the individual for a period that is less than 1 month; and `(B) the individual, if the individual leaves the center. `(2) DIRECT PAYMENT- A State agency may require an individual referred to in paragraph (1) to designate the center in which the individual resides as the authorized representative of the individual for the purpose of receiving an allotment.'. SEC. 831. CONDITION PRECEDENT FOR APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS. Section 9(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)(1)) is amended by adding at the end the following: `No retail food store or wholesale food concern of a type determined by the Secretary, based on factors that include size, location, and type of items sold, shall be approved to be authorized or reauthorized for participation in the food stamp program unless an authorized employee of the Department of Agriculture, a designee of the Secretary, or, if practicable, an official of the State or local government designated by the Secretary has visited the store or concern for the purpose of determining whether the store or concern should be approved or reauthorized, as appropriate.'. SEC. 832. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS. Section 9(a) of the Food Stamp Act of 1977 (7 U.S.C. 2018(a)) is amended by adding at the end the following: `(3) AUTHORIZATION PERIODS- The Secretary shall establish specific time periods during which authorization to accept and redeem coupons, or to redeem benefits through an electronic benefit transfer system, shall be valid under the food stamp program.'. SEC. 833. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION. Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 2018(c)) is amended-- (1) in the first sentence, by inserting `, which may include relevant income and sales tax filing documents,' after `submit information'; and (2) by inserting after the first sentence the following: `The regulations may require retail food stores and wholesale food concerns to provide written authorization for the Secretary to verify all relevant tax filings with appropriate agencies and to obtain corroborating documentation from other sources so that the accuracy of information provided by the stores and concerns may be verified.'. SEC. 834. WAITING PERIOD FOR STORES THAT FAIL TO MEET AUTHORIZATION CRITERIA. Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 2018(d)) is amended by adding at the end the following: `A retail food store or wholesale food concern that is denied approval to accept and redeem coupons because the store or concern does not meet criteria for approval established by the Secretary may not, for at least 6 months, submit a new application to participate in the program. The Secretary may establish a longer time period under the preceding sentence, including permanent disqualification, that reflects the severity of the basis of the denial.'. SEC. 835. OPERATION OF FOOD STAMP OFFICES. Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020), as amended by sections 809(b) and 819(b), is amended-- (1) in subsection (e)-- (A) by striking paragraph (2) and inserting the following: `(2)(A) that the State agency shall establish procedures governing the operation of food stamp offices that the State agency determines best serve households in the State, including households with special needs, such as households with elderly or disabled members, households in rural areas with low-income members, homeless individuals, households residing on reservations, and households in areas in which a substantial number of members of low-income households speak a language other than English. `(B) In carrying out subparagraph (A), a State agency-- `(i) shall provide timely, accurate, and fair service to applicants for, and participants in, the food stamp program; `(ii) shall develop an application containing the information necessary to comply with this Act; `(iii) shall permit an applicant household to apply to participate in the program on the same day that the household first contacts a food stamp office in person during office hours; `(iv) shall consider an application that contains the name, address, and signature of the applicant to be filed on the date the applicant submits the application; `(v) shall require that an adult representative of each applicant household certify in writing, under penalty of perjury, that-- `(I) the information contained in the application is true; and `(II) all members of the household are citizens or are aliens eligible to receive food stamps under section 6(f); `(vi) shall provide a method of certifying and issuing coupons to eligible homeless individuals, to ensure that participation in the food stamp program is limited to eligible households; and `(vii) may establish operating procedures that vary for local food stamp offices to reflect regional and local differences within the State. `(C) Nothing in this Act shall prohibit the use of signatures provided and maintained electronically, storage of records using automated retrieval systems only, or any other feature of a State agency's application system that does not rely exclusively on the collection and retention of paper applications or other records. `(D) The signature of any adult under this paragraph shall be considered sufficient to comply with any provision of Federal law requiring a household member to sign an application or statement;'; (B) in paragraph (3)-- (i) by striking `shall--' and all that follows through `provide each' and inserting `shall provide each'; and (ii) by striking `(B) assist' and all that follows through `representative of the State agency;'; (C) by striking paragraphs (14) and (25); (D)(i) by redesignating paragraphs (15) through (24) as paragraphs (14) through (23), respectively; and (ii) by redesignating paragraph (26), as paragraph (24); and (2) in subsection (i)-- (A) by striking `(i) Notwithstanding' and all that follows through `(2)' and inserting the following: `(i) APPLICATION AND DENIAL PROCEDURES- `(1) APPLICATION PROCEDURES- Notwithstanding any other provision of law,'; and (B) by striking `; (3) households' and all that follows through `title IV of the Social Security Act. No' and inserting a period and the following: `(2) DENIAL AND TERMINATION- Except in a case of disqualification as a penalty for failure to comply with a public assistance program rule or regulation, no'. SEC. 836. STATE EMPLOYEE AND TRAINING STANDARDS. Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(6)) is amended-- (1) by striking `that (A) the' and inserting `that-- `(A) the'; (2) by striking `Act; (B) the' and inserting `Act; and `(B) the'; (3) in subparagraph (B), by striking `United States Civil Service Commission' and inserting `Office of Personnel Management'; and (4) by striking subparagraphs (C) through (E). SEC. 837. EXCHANGE OF LAW ENFORCEMENT INFORMATION. Section 11(e)(8) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)) is amended-- (1) by striking `that (A) such' and inserting the follow-ing: `that-- `(A) the'; (2) by striking `law, (B) notwithstanding' and inserting the following: `law; `(B) notwithstanding'; (3) by striking `Act, and (C) such' and inserting the following: `Act; `(C) the'; and (4) by adding at the end the following: `(D) notwithstanding any other provision of law, the address, social security number, and, if available, photograph of any member of a household shall be made available, on request, to any Federal, State, or local law enforcement officer if the officer furnishes the State agency with the name of the member and notifies the agency that-- `(i) the member-- `(I) is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime (or attempt to commit a crime) that, under the law of the place the member is fleeing, is a felony (or, in the case of New Jersey, a high misdemeanor), or is violating a condition of probation or parole imposed under Federal or State law; or `(II) has information that is necessary for the officer to conduct an official duty related to subclause (I); `(ii) locating or apprehending the member is an official duty; and `(iii) the request is being made in the proper exercise of an official duty; and `(E) the safeguards shall not prevent compliance with paragraph (16);'. SEC. 838. EXPEDITED COUPON SERVICE. Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(9)) is amended-- (1) in subparagraph (A), by striking `five days' and inserting `7 days'; (2) by striking subparagraph (B); (3) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C); (4) in subparagraph (B), as redesignated by paragraph (3), by striking `five days' and inserting `7 days'; and (5) in subparagraph (C), as redesignated by paragraph (3), by striking `, (B), or (C)' and inserting `or (B)'. SEC. 839. WITHDRAWING FAIR HEARING REQUESTS. Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(10)) is amended by inserting before the semicolon at the end a period and the following: `At the option of a State, at any time prior to a fair hearing determination under this paragraph, a household may withdraw, orally or in writing, a request by the household for the fair hearing. If the withdrawal request is an oral request, the State agency shall provide a written notice to the household confirming the withdrawal request and providing the household with an opportunity to request a hearing'. SEC. 840. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VERIFICATION SYSTEMS. Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended-- (1) in subsection (e)(18), as redesignated by section 835(1)(D)-- (A) by striking `that information is' and inserting `at the option of the State agency, that information may be'; and (B) by striking `shall be requested' and inserting `may be requested'; and (2) by adding at the end the following: `(p) STATE VERIFICATION OPTION- Notwithstanding any other provision of law, in carrying out the food stamp program, a State agency shall not be required to use an income and eligibility or an immigration status verification system established under section 1137 of the Social Security Act (42 U.S.C. 1320b-7).'. SEC. 841. INVESTIGATIONS. Section 12(a) of the Food Stamp Act of 1977 (7 U.S.C. 2021(a)) is amended by adding at the end the following: `Regulations issued pursuant to this Act shall provide criteria for the finding of a violation and the suspension or disqualification of a retail food store or wholesale food concern on the basis of evidence that may include facts established through on-site investigations, inconsistent redemption data, or evidence obtained through a transaction report under an electronic benefit transfer system.'. SEC. 842. DISQUALIFICATION OF RETAILERS WHO INTENTIONALLY SUBMIT FALSIFIED APPLICATIONS. Section 12(b) of the Food Stamp Act of 1977 (7 U.S.C. 2021(b)) is amended-- (1) in paragraph (2), by striking `and' at the end; (2) in paragraph (3), by striking the period at the end and inserting `; and'; and (3) by adding at the end the following: `(4) for a reasonable period of time to be determined by the Secretary, including permanent disqualification, on the knowing submission of an application for the approval or reauthorization to accept and redeem coupons that contains false information about a substantive matter that was a part of the application.'. SEC. 843. DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE WIC PROGRAM. Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended by adding at the end the following: `(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED UNDER THE WIC PROGRAM- `(1) IN GENERAL- The Secretary shall issue regulations providing criteria for the disqualification under this Act of an approved retail food store or a wholesale food concern that is disqualified from accepting benefits under the special supplemental nutrition program for women, infants, and children established under section 17 of the Child Nutrition Act of 1966 (7 U.S.C. 1786). `(2) TERMS- A disqualification under paragraph (1)-- `(A) shall be for the same length of time as the disqualification from the program referred to in paragraph (1); `(B) may begin at a later date than the disqualification from the program referred to in paragraph (1); and `(C) notwithstanding section 14, shall not be subject to judicial or administrative review.'. SEC. 844. COLLECTION OF OVERISSUANCES. (a) COLLECTION OF OVERISSUANCES- Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 2022) is amended-- (1) by striking subsection (b) and inserting the following: `(b) COLLECTION OF OVERISSUANCES- `(1) IN GENERAL- Except as otherwise provided in this subsection, a State agency shall collect any overissuance of coupons issued to a household by-- `(A) reducing the allotment of the household; `(B) withholding amounts from unemployment compensation from a member of the household under subsection (c); `(C) recovering from Federal pay or a Federal income tax refund under subsection (d); or `(D) any other means. `(2) COST EFFECTIVENESS- Paragraph (1) shall not apply if the State agency demonstrates to the satisfaction of the Secretary that all of the means referred to in paragraph (1) are not cost effective. `(3) MAXIMUM REDUCTION ABSENT FRAUD- If a household received an overissuance of coupons without any member of the household being found ineligible to participate in the program under section 6(b)(1) and a State agency elects to reduce the allotment of the household under paragraph (1)(A), the State agency shall not reduce the monthly allotment of the household under paragraph (1)(A) by an amount in excess of the greater of-- `(A) 10 percent of the monthly allotment of the household; or `(B) $10. `(4) PROCEDURES- A State agency shall collect an overissuance of coupons issued to a household under paragraph (1) in accordance with the requirements established by the State agency for providing notice, electing a means of payment, and establishing a time schedule for payment.'; and (2) in subsection (d)-- (A) by striking `as determined under subsection (b) and except for claims arising from an error of the State agency,' and inserting `, as determined under subsection (b)(1),'; and (B) by inserting before the period at the end the following: `or a Federal income tax refund as authorized by section 3720A of title 31, United States Code'. (b) CONFORMING AMENDMENTS- Section 11(e)(8)(C) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(8)(C)) is amended-- (1) by striking `and excluding claims' and all that follows through `such section'; and (2) by inserting before the semicolon at the end the following: `or a Federal income tax refund as authorized by section 3720A of title 31, United States Code'. (c) RETENTION RATE- The proviso of the first sentence of section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended by striking `25 percent during the period beginning October 1, 1990' and all that follows through `section 13(b)(2) which arise' and inserting `35 percent of the value of all funds or allotments recovered or collected pursuant to sections 6(b) and 13(c) and 20 percent of the value of any other funds or allotments recovered or collected, except the value of funds or allotments recovered or collected that arise'. SEC. 845. AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM REQUIREMENTS PENDING ADMINISTRATIVE AND JUDICIAL REVIEW. Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is amended-- (1) by redesignating the first through seventeenth sentences as paragraphs (1) through (17), respectively; and (2) by adding at the end the following: `(18) SUSPENSION OF STORES PENDING REVIEW- Notwithstanding any other provision of this subsection, any permanent disqualification of a retail food store or wholesale food concern under paragraph (3) or (4) of section 12(b) shall be effective from the date of receipt of the notice of disqualification. If the disqualification is reversed through administrative or judicial review, the Secretary shall not be liable for the value of any sales lost during the disqualification period.'. SEC. 846. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS. (a) FORFEITURE OF ITEMS EXCHANGED IN FOOD STAMP TRAFFICKING- The first sentence of section 15(g) of the Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended by striking `or intended to be furnished'. (b) CRIMINAL FORFEITURE- Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 2024) is amended by adding at the end the following: `(h) CRIMINAL FORFEITURE- `(1) IN GENERAL- In imposing a sentence on a person convicted of an offense in violation of subsection (b) or (c), a court shall order, in addition to any other sentence imposed under this section, that the person forfeit to the United States all property described in paragraph (2). `(2) PROPERTY SUBJECT TO FORFEITURE- All property, real and personal, used in a transaction or attempted transaction, to commit, or to facilitate the commission of, a violation (other than a misdemeanor) of subsection (b) or (c), or proceeds traceable to a violation of subsection (b) or (c), shall be subject to forfeiture to the United States under paragraph (1). `(3) INTEREST OF OWNER- No interest in property shall be forfeited under this subsection as the result of any act or omission established by the owner of the interest to have been committed or omitted without the knowledge or consent of the owner. `(4) PROCEEDS- The proceeds from any sale of forfeited property and any monies forfeited under this subsection shall be used-- `(A) first, to reimburse the Department of Justice for the costs incurred by the Department to initiate and complete the forfeiture proceeding; `(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office incurred in the law enforcement effort resulting in the forfeiture; `(C) third, to reimburse any Federal or State law enforcement agency for any costs incurred in the law enforcement effort resulting in the forfeiture; and `(D) fourth, by the Secretary to carry out the approval, reauthorization, and compliance investigations of retail stores and wholesale food concerns under section 9.'. SEC. 847. LIMITATION ON FEDERAL MATCH. Section 16(a)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)(4)) is amended by inserting after the comma at the end the following: `but not including recruitment activities,'. SEC. 848. STANDARDS FOR ADMINISTRATION. (a) IN GENERAL- Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by striking subsection (b). (b) CONFORMING AMENDMENTS- (1) The first sentence of section 11(g) of the Food Stamp Act of 1977 (7 U.S.C. 2020(g)) is amended by striking `the Secretary's standards for the efficient and effective administration of the program established under section 16(b)(1) or'. (2) Section 16(c)(1)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)(1)(B)) is amended by striking `pursuant to subsection (b)'. SEC. 849. WORK SUPPLEMENTATION OR SUPPORT PROGRAM. Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025), as amended by section 848(a), is amended by inserting after subsection (a) the following: `(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM- `(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT PROGRAM- In this subsection, the term `work supplementation or support program' means a program under which, as determined by the Secretary, public assistance (including any benefits provided under a program established by the State and the food stamp program) is provided to an employer to be used for hiring and employing a public assistance recipient who was not employed by the employer at the time the public assistance recipient entered the program. `(2) PROGRAM- A State agency may elect to use an amount equal to the allotment that would otherwise be issued to a household under the food stamp program, but for the operation of this subsection, for the purpose of subsidizing or supporting a job under a work supplementation or support program established by the State. `(3) PROCEDURE- If a State agency makes an election under paragraph (2) and identifies each household that participates in the food stamp program that contains an individual who is participating in the work supplementation or support program-- `(A) the Secretary shall pay to the State agency an amount equal to the value of the allotment that the household would be eligible to receive but for the operation of this subsection; `(B) the State agency shall expend the amount received under subparagraph (A) in accordance with the work supplementation or support program in lieu of providing the allotment that the household would receive but for the operation of this subsection; `(C) for purposes of-- `(i) sections 5 and 8(a), the amount received under this subsection shall be excluded from household income and resources; and `(ii) section 8(b), the amount received under this subsection shall be considered to be the value of an allotment provided to the household; and `(D) the household shall not receive an allotment from the State agency for the period during which the member continues to participate in the work supplementation or support program. `(4) OTHER WORK REQUIREMENTS- No individual shall be excused, by reason of the fact that a State has a work supplementation or support program, from any work requirement under section 6(d), except during the periods in which the individual is employed under the work supplementation or support program. `(5) LENGTH OF PARTICIPATION- A State agency shall provide a description of how the public assistance recipients in the program shall, within a specific period of time, be moved from supplemented or supported employment to employment that is not supplemented or supported. `(6) DISPLACEMENT- A work supplementation or support program shall not displace the employment of individuals who are not supplemented or supported.'. SEC. 850. WAIVER AUTHORITY. Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)) is amended-- (1) by redesignating subparagraph (B) as subparagraph (C); and (2) in subparagraph (A)-- (A) in the first sentence, by striking `benefits to eligible households, including' and inserting the following: `benefits to eligible households, and may waive any requirement of this Act to the extent necessary for the project to be conducted. `(B) PROJECT REQUIREMENTS- `(i) PROGRAM GOAL- The Secretary may not conduct a project under subparagraph (A) unless-- `(I) the project is consistent with the goal of the food stamp program of providing food assistance to raise levels of nutrition among low-income individuals; and `(II) the project includes an evaluation to determine the effects of the project. `(ii) PERMISSIBLE PROJECTS- The Secretary may conduct a project under subparagraph (A) to-- `(I) improve program administration; `(II) increase the self-sufficiency of food stamp recipients; `(III) test innovative welfare reform strate-gies; or `(IV) allow greater conformity with the rules of other programs than would be allowed but for this paragraph. `(iii) RESTRICTIONS ON PERMISSIBLE PROJECTS- If the Secretary finds that a project under subparagraph (A) would reduce benefits by more than 20 percent for more than 5 percent of households in the area subject to the project (not including any household whose benefits are reduced due to a failure to comply with work or other conduct requirements), the project-- `(I) may not include more than 15 percent of the State's food stamp households; and `(II) shall continue for not more than 5 years after the date of implementation, unless the Secretary approves an extension requested by the State agency at any time. `(iv) IMPERMISSIBLE PROJECTS- The Secretary may not conduct a project under subparagraph (A) that-- `(I) involves the payment of the value of an allotment in the form of cash, unless the project was approved prior to the date of enactment of this subparagraph; `(II) has the effect of substantially transferring funds made available under this Act to services or benefits provided primarily through another public assistance program, or using the funds for any purpose other than the purchase of food, program administration, or an employment or training program; `(III) is inconsistent with-- `(aa) the last 2 sentences of section 3(i); `(bb) the last sentence of section 5(a), insofar as a waiver denies assistance to an otherwise eligible household or individual if the household or individual has not failed to comply with any work, behavioral, or other conduct requirement under this or another program; `(cc) section 5(c)(2); `(dd) paragraph (2)(B), (4)(F)(i), or (4)(K) of section 6(d); `(ee) section 8(b); `(ff) section 11(e)(2)(B); `(gg) the time standard under section 11(e)(3); `(hh) subsection (a), (c), (g), (h)(2), or (h)(3) of section 16; `(ii) this paragraph; or `(jj) subsection (a)(1) or (g)(1) of sec-tion 20; `(IV) modifies the operation of section 5 so as to have the effect of-- `(aa) increasing the shelter deduction to households with no out-of-pocket housing costs or housing costs that consume a low percentage of the household's income; or `(bb) absolving a State from acting with reasonable promptness on substantial reported changes in income or household size (except that this subclause shall not apply with regard to changes related to food stamp deductions); `(V) is not limited to a specific time period; or `(VI) waives a provision of section 26. `(v) ADDITIONAL INCLUDED PROJECTS- A pilot or experimental project may include'; (B) by striking `to aid to families with dependent children under part A of title IV of the Social Security Act' and inserting `are receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)'; and (C) by striking `coupons. The Secretary' and all that follows through `Any pilot' and inserting the following: `coupons. `(vi) CASH PAYMENT PILOT PROJECTS- Any pilot'. SEC. 851. RESPONSE TO WAIVERS. Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)), as amended by section 850, is amended by adding at the end the following: `(D) RESPONSE TO WAIVERS- `(i) RESPONSE- Not later than 60 days after the date of receiving a request for a waiver under subparagraph (A), the Secretary shall provide a response that-- `(I) approves the waiver request; `(II) denies the waiver request and describes any modification needed for approval of the waiver request; `(III) denies the waiver request and describes the grounds for the denial; or `(IV) requests clarification of the waiver request. `(ii) FAILURE TO RESPOND- If the Secretary does not provide a response in accordance with clause (i), the waiver shall be considered approved, unless the approval is specifically prohibited by this Act. `(iii) NOTICE OF DENIAL- On denial of a waiver request under clause (i)(III), the Secretary shall provide a copy of the waiver request and a description of the reasons for the denial to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.'. SEC. 852. EMPLOYMENT INITIATIVES PROGRAM. Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended by striking subsection (d) and inserting the following: `(d) EMPLOYMENT INITIATIVES PROGRAM- `(1) ELECTION TO PARTICIPATE- `(A) IN GENERAL- Subject to the other provisions of this subsection, a State may elect to carry out an employment initiatives program under this subsection. `(B) REQUIREMENT- A State shall be eligible to carry out an employment initiatives program under this subsection only if not less than 50 percent of the households in the State that received food stamp benefits during the summer of 1993 also received benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) during the summer of 1993. `(2) PROCEDURE- `(A) IN GENERAL- A State that has elected to carry out an employment initiatives program under paragraph (1) may use amounts equal to the food stamp allotments that would otherwise be issued to a household under the food stamp program, but for the operation of this subsection, to provide cash benefits in lieu of the food stamp allotments to the household if the household is eligible under paragraph (3). `(B) PAYMENT- The Secretary shall pay to each State that has elected to carry out an employment initiatives program under paragraph (1) an amount equal to the value of the allotment that each household participating in the program in the State would be eligible to receive under this Act but for the operation of this subsection. `(C) OTHER PROVISIONS- For purposes of the food stamp program (other than this subsection)-- `(i) cash assistance under this subsection shall be considered to be an allotment; and `(ii) each household receiving cash benefits under this subsection shall not receive any other food stamp benefit during the period for which the cash assistance is provided. `(D) ADDITIONAL PAYMENTS- Each State that has elected to carry out an employment initiatives program under paragraph (1) shall-- `(i) increase the cash benefits provided to each household participating in the program in the State under this subsection to compensate for any State or local sales tax that may be collected on purchases of food by the household, unless the Secretary determines on the basis of information provided by the State that the increase is unnecessary on the basis of the limited nature of the items subject to the State or local sales tax; and `(ii) pay the cost of any increase in cash benefits required by clause (i). `(3) ELIGIBILITY- A household shall be eligible to receive cash benefits under paragraph (2) if an adult member of the household-- `(A) has worked in unsubsidized employment for not less than the preceding 90 days; `(B) has earned not less than $350 per month from the employment referred to in subparagraph (A) for not less than the preceding 90 days; `(C)(i) is receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or `(ii) was receiving benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) at the time the member first received cash benefits under this subsection and is no longer eligible for the State program because of earned income; `(D) is continuing to earn not less than $350 per month from the employment referred to in subparagraph (A); and `(E) elects to receive cash benefits in lieu of food stamp benefits under this subsection. `(4) EVALUATION- A State that operates a program under this subsection for 2 years shall provide to the Secretary a written evaluation of the impact of cash assistance under this subsection. The State agency, with the concurrence of the Secretary, shall determine the content of the evaluation.'. SEC. 853. REAUTHORIZATION. The first sentence of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking `1991 through 1997' and inserting `1996 through 2002'. SEC. 854. SIMPLIFIED FOOD STAMP PROGRAM. (a) IN GENERAL- The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following: `SEC. 26. SIMPLIFIED FOOD STAMP PROGRAM. `(a) DEFINITION OF FEDERAL COSTS- In this section, the term `Federal costs' does not include any Federal costs incurred under section 17. `(b) ELECTION- Subject to subsection (d), a State may elect to carry out a Simplified Food Stamp Program (referred to in this section as a `Program'), statewide or in a political subdivision of the State, in accordance with this section. `(c) OPERATION OF PROGRAM- If a State elects to carry out a Program, within the State or a political subdivision of the State-- `(1) a household in which no members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) may not participate in the Program; `(2) a household in which all members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) shall automatically be eligible to participate in the Program; `(3) if approved by the Secretary, a household in which 1 or more members but not all members receive assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) may be eligible to participate in the Program; and `(4) subject to subsection (f), benefits under the Program shall be determined under rules and procedures established by the State under-- `(A) a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); `(B) the food stamp program; or `(C) a combination of a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and the food stamp program. `(d) APPROVAL OF PROGRAM- `(1) STATE PLAN- A State agency may not operate a Program unless the Secretary approves a State plan for the operation of the Program under paragraph (2). `(2) APPROVAL OF PLAN- The Secretary shall approve any State plan to carry out a Program if the Secretary determines that the plan-- `(A) complies with this section; and `(B) contains sufficient documentation that the plan will not increase Federal costs for any fiscal year. `(e) INCREASED FEDERAL COSTS- `(1) DETERMINATION- `(A) IN GENERAL- The Secretary shall determine whether a Program being carried out by a State agency is increasing Federal costs under this Act. `(B) NO EXCLUDED HOUSEHOLDS- In making a determination under subparagraph (A), the Secretary shall not require the State agency to collect or report any information on households not included in the Program. `(C) ALTERNATIVE ACCOUNTING PERIODS- The Secretary may approve the request of a State agency to apply alternative accounting periods to determine if Federal costs do not exceed the Federal costs had the State agency not elected to carry out the Program. `(2) NOTIFICATION- If the Secretary determines that the Program has increased Federal costs under this Act for any fiscal year or any portion of any fiscal year, the Secretary shall notify the State not later than 30 days after the Secretary makes the determination under paragraph (1). `(3) ENFORCEMENT- `(A) CORRECTIVE ACTION- Not later than 90 days after the date of a notification under paragraph (2), the State shall submit a plan for approval by the Secretary for prompt corrective action that is designed to prevent the Program from increasing Federal costs under this Act. `(B) TERMINATION- If the State does not submit a plan under subparagraph (A) or carry out a plan approved by the Secretary, the Secretary shall terminate the approval of the State agency operating the Program and the State agency shall be ineligible to operate a future Program. `(f) RULES AND PROCEDURES- `(1) IN GENERAL- In operating a Program, a State or political subdivision of a State may follow the rules and procedures established by the State or political subdivision under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under the food stamp program. `(2) STANDARDIZED DEDUCTIONS- In operating a Program, a State or political subdivision of a State may standardize the deductions provided under section 5(e). In developing the standardized deduction, the State shall consider the work expenses, dependent care costs, and shelter costs of participating households. `(3) REQUIREMENTS- In operating a Program, a State or political subdivision shall comply with the requirements of-- `(A) subsections (a) through (g) of section 7; `(B) section 8(a) (except that the income of a household may be determined under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)); `(C) subsection (b) and (d) of section 8; `(D) subsections (a), (c), (d), and (n) of section 11; `(E) paragraphs (8), (12), (16), (18), (20), (24), and (25) of section 11(e); `(F) section 11(e)(10) (or a comparable requirement established by the State under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)); and `(G) section 16. `(4) LIMITATION ON ELIGIBILITY- Notwithstanding any other provision of this section, a household may not receive benefits under this section as a result of the eligibility of the household under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), unless the Secretary determines that any household with income above 130 percent of the poverty guidelines is not eligible for the program.'. (b) STATE PLAN PROVISIONS- Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)), as amended by sections 819(b) and 835, is amended by adding at the end the following: `(25) if a State elects to carry out a Simplified Food Stamp Program under section 26, the plans of the State agency for operating the program, including-- `(A) the rules and procedures to be followed by the State agency to determine food stamp benefits; `(B) how the State agency will address the needs of households that experience high shelter costs in relation to the incomes of the households; and `(C) a description of the method by which the State agency will carry out a quality control system under section 16(c).'. (c) CONFORMING AMENDMENTS- (1) Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017), as amended by section 830, is amended-- (A) by striking subsection (e); and (B) by redesignating subsection (f) as subsection (e). (2) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended-- (A) by striking subsection (i); and (B) by redesignating subsections (j) through (l) as subsections (i) through (k), respectively. SEC. 855. STUDY OF THE USE OF FOOD STAMPS TO PURCHASE VITAMINS AND MINERALS. (a) IN GENERAL- The Secretary of Agriculture, in consultation with the National Academy of Sciences and the Center for Disease Control and Prevention, shall conduct a study on the use of food stamps provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to purchase vitamins and minerals. (b) ANALYSIS- The study shall include-- (1) an analysis of scientific findings on the efficacy of and need for vitamins and minerals, including-- (A) the adequacy of vitamin and mineral intakes in low-income populations, as shown by research and surveys conducted prior to the study; and (B) the potential value of nutritional supplements in filling nutrient gaps that may exist in the United States population as a whole or in vulnerable subgroups in the population; (2) the impact of nutritional improvements (including vitamin or mineral supplementation) on the health status and health care costs of women of childbearing age, pregnant or lactating women, and the elderly; (3) the cost of commercially available vitamin and mineral supplements; (4) the purchasing habits of low-income populations with regard to vitamins and minerals; (5) the impact of using food stamps to purchase vitamins and minerals on the food purchases of low-income house-holds; and (6) the economic impact on the production of agricultural commodities of using food stamps to purchase vitamins and minerals. (c) REPORT- Not later than December 15, 1998, the Secretary shall report the results of the study to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. SEC. 856. DEFICIT REDUCTION. It is the sense of the Committee on Agriculture of the House of Representatives that reductions in outlays resulting from this title shall not be taken into account for purposes of section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 902). SUBTITLE B--COMMODITY DISTRIBUTION PROGRAMS SEC. 871. EMERGENCY FOOD ASSISTANCE PROGRAM. (a) DEFINITIONS- Section 201A of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as follows: `SEC. 201A. DEFINITIONS. `In this Act: `(1) ADDITIONAL COMMODITIES- The term `additional commodities' means commodities made available under section 214 in addition to the commodities made available under sections 202 and 203D. `(2) AVERAGE MONTHLY NUMBER OF UNEMPLOYED PERSONS- The term `average monthly number of unemployed persons' means the average monthly number of unemployed persons in each State during the most recent fiscal year for which information concerning the number of unemployed persons is available, as determined by the Bureau of Labor Statistics of the Department of Labor. `(3) ELIGIBLE RECIPIENT AGENCY- The term `eligible recipient agency' means a public or nonprofit organiza-tion that-- `(A) administers-- `(i) an emergency feeding organization; `(ii) a charitable institution (including a hospital and a retirement home, but excluding a penal institution) to the extent that the institution serves needy persons; `(iii) a summer camp for children, or a child nutrition program providing food service; `(iv) a nutrition project operating under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.), including a project that operates a congregate nutrition site and a project that provides home-delivered meals; or `(v) a disaster relief program; `(B) has been designated by the appropriate State agency, or by the Secretary; and `(C) has been approved by the Secretary for participation in the program established under this Act. `(4) EMERGENCY FEEDING ORGANIZATION- The term `emergency feeding organization' means a public or nonprofit organization that administers activities and projects (including the activities and projects of a charitable institution, a food bank, a food pantry, a hunger relief center, a soup kitchen, or a similar public or private nonprofit eligible recipient agency) providing nutrition assistance to relieve situations of emergency and distress through the provision of food to needy persons, including low-income and unemployed persons. `(5) FOOD BANK- The term `food bank' means a public or charitable institution that maintains an established operation involving the provision of food or edible commodities, or the products of food or edible commodities, to food pantries, soup kitchens, hunger relief centers, or other food or feeding centers that, as an integral part of their normal activities, provide meals or food to feed needy persons on a regular basis. `(6) FOOD PANTRY- The term `food pantry' means a public or private nonprofit organization that distributes food to low-income and unemployed households, including food from sources other than the Department of Agriculture, to relieve situations of emergency and distress. `(7) POVERTY LINE- The term `poverty line' has the meaning provided in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)). `(8) SOUP KITCHEN- The term `soup kitchen' means a public or charitable institution that, as an integral part of the normal activities of the institution, maintains an established feeding operation to provide food to needy homeless persons on a regular basis. `(9) TOTAL VALUE OF ADDITIONAL COMMODITIES- The term `total value of additional commodities' means the actual cost of all additional commodities that are paid by the Secretary (including the distribution and processing costs incurred by the Secretary). `(10) VALUE OF ADDITIONAL COMMODITIES ALLOCATED TO EACH STATE- The term `value of additional commodities allocated to each State' means the actual cost of additional commodities allocated to each State that are paid by the Secretary (including the distribution and processing costs incurred by the Secretary).'. (b) STATE PLAN- Section 202A of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended to read as follows: `SEC. 202A. STATE PLAN. `(a) IN GENERAL- To receive commodities under this Act, a State shall submit a plan of operation and administration every 4 years to the Secretary for approval. The plan may be amended at any time, with the approval of the Secretary. `(b) REQUIREMENTS- Each plan shall-- `(1) designate the State agency responsible for distributing the commodities received under this Act; `(2) set forth a plan of operation and administration to expeditiously distribute commodities under this Act; `(3) set forth the standards of eligibility for recipient agencies; and `(4) set forth the standards of eligibility for individual or household recipients of commodities, which shall require-- `(A) individuals or households to be comprised of needy persons; and `(B) individual or household members to be residing in the geographic location served by the distributing agency at the time of applying for assistance. `(c) STATE ADVISORY BOARD- The Secretary shall encourage each State receiving commodities under this Act to establish a State advisory board consisting of representatives of all entities in the State, both public and private, interested in the distribution of commodities received under this Act.'. (c) AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE FUNDS- Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended-- (1) in the first sentence, by striking `for State and local' and all that follows through `under this title' and inserting `to pay for the direct and indirect administrative costs of the States related to the processing, transporting, and distributing to eligible recipient agencies of commodities provided by the Secretary under this Act and commodities secured from other sources'; and (2) by striking the fourth sentence. (d) DELIVERY OF COMMODITIES- Section 214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended-- (1) by striking subsections (a) through (e) and (j); (2) by redesignating subsections (f) through (i) as subsections (a) through (d), respectively; (3) in subsection (b), as redesignated by paragraph (2)-- (A) in the first sentence, by striking `subsection (f) or subsection (j) if applicable,' and inserting `subsection (a),'; and (B) in the second sentence, by striking `subsection (f)' and inserting `subsection (a)'; (4) by striking subsection (c), as redesignated by paragraph (2), and inserting the following: `(c) ADMINISTRATION- `(1) IN GENERAL- Commodities made available for each fiscal year under this section shall be delivered at reasonable intervals to States based on the grants calculated under subsection (a), or reallocated under subsection (b), before December 31 of the following fiscal year. `(2) ENTITLEMENT- Each State shall be entitled to receive the value of additional commodities determined under subsection (a).'; and (5) in subsection (d), as redesignated by paragraph (2), by striking `or reduce' and all that follows through `each fiscal year'. (e) TECHNICAL AMENDMENTS- The Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended-- (1) in the first sentence of section 203B(a), by striking `203 and 203A of this Act' and inserting `203A'; (2) in section 204(a), by striking `title' each place it appears and inserting `Act'; (3) in the first sentence of section 210(e), by striking `(except as otherwise provided for in section 214(j))'; and (4) by striking section 212. (f) REPORT ON EFAP- Section 1571 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed. (g) AVAILABILITY OF COMMODITIES UNDER THE FOOD STAMP PROGRAM- The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), as amended by section 854(a), is amended by adding at the end the following: `SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM. `(a) PURCHASE OF COMMODITIES- From amounts made available to carry out this Act, for each of fiscal years 1997 through 2002, the Secretary shall purchase $100,000,000 of a variety of nutritious and useful commodities of the types that the Secretary has the authority to acquire through the Commodity Credit Corporation or under section 32 of the Act entitled `An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935 (7 U.S.C. 612c), and distribute the commodities to States for distribution in accordance with section 214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note). `(b) BASIS FOR COMMODITY PURCHASES- In purchasing commodities under subsection (a), the Secretary shall, to the extent practicable and appropriate, make purchases based on-- `(1) agricultural market conditions; `(2) preferences and needs of States and distributing agencies; and `(3) preferences of recipients.'. (h) EFFECTIVE DATE- The amendments made by subsection (d) shall become effective on October 1, 1996. SEC. 872. FOOD BANK DEMONSTRATION PROJECT. Section 3 of the Charitable Assistance and Food Bank Act of 1987 (Public Law 100-232; 7 U.S.C. 612c note) is repealed. SEC. 873. HUNGER PREVENTION PROGRAMS. The Hunger Prevention Act of 1988 (Public Law 100-435; 7 U.S.C. 612c note) is amended-- (1) by striking section 110; (2) by striking subtitle C of title II; and (3) by striking section 502. SEC. 874. REPORT ON ENTITLEMENT COMMODITY PROCESSING. Section 1773 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 612c note) is amended by striking subsection (f). SUBTITLE C--ELECTRONIC BENEFIT TRANSFER SYSTEMS SEC. 891. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS. Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) is amended-- (1) by striking `(d) In the event that' and inserting `(d) APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN FINANCIAL INSTITUTIONS- `(1) IN GENERAL- If'; and (2) by adding at the end the following: `(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT TRANSFER SYSTEMS- `(A) DEFINITION OF ELECTRONIC BENEFIT TRANSFER SYSTEM- In this paragraph, the term `electronic benefit transfer system'-- `(i) means a system under which a government agency distributes needs-tested benefits by establishing accounts that may be accessed by recipients electronically, such as through automated teller machines or point-of-sale terminals; and `(ii) does not include employment-related payments, including salaries and pension, retirement, or unemployment benefits established by a Federal, State, or local government agency. `(B) EXEMPTION GENERALLY- The disclosures, protections, responsibilities, and remedies established under this title, and any regulation prescribed or order issued by the Board in accordance with this title, shall not apply to any electronic benefit transfer system established under State or local law or administered by a State or local government. `(C) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S ACCOUNT- Subparagraph (B) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer system for a deposit directly into a consumer account held by the recipient of the benefit. `(D) RULE OF CONSTRUCTION- No provision of this paragraph-- `(i) affects or alters the protections otherwise applicable with respect to benefits established by any other provision Federal, State, or local law; or `(ii) otherwise supersedes the application of any State or local law.'.