[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 904 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 904

 To provide flexibility to States to administer, and control the cost 
    of, the food stamp and child nutrition programs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 June 9 (legislative day, June 5), 1995

   Mr. Lugar introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To provide flexibility to States to administer, and control the cost 
    of, the food stamp and child nutrition programs, and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Nutrition 
Assistance Reform Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--FOOD STAMP PROGRAM

Sec. 101. Certification period.
Sec. 102. Treatment of minors.
Sec. 103. Optional additional criteria for separate household 
                            determinations.
Sec. 104. Adjustment of thrifty food plan.
Sec. 105. Definition of homeless individual.
Sec. 106. Earnings of students.
Sec. 107. Energy assistance.
Sec. 108. Deductions from income.
Sec. 109. Amount of vehicle asset limitation.
Sec. 110. Benefits for aliens.
Sec. 111. Disqualification.
Sec. 112. Caretaker exemption.
Sec. 113. Employment and training.
Sec. 114. Comparable treatment for disqualification.
Sec. 115. Cooperation with child support agencies.
Sec. 116. Disqualification for child support arrears.
Sec. 117. Permanent disqualification for participating in 2 or more 
                            States.
Sec. 118. Work requirement.
Sec. 119. Electronic benefit transfers.
Sec. 120. Minimum benefit.
Sec. 121. Benefits on recertification.
Sec. 122. Optional combined allotment for expedited households.
Sec. 123. Failure to comply with other welfare and public assistance 
                            programs.
Sec. 124. Allotments for households residing in institutions.
Sec. 125. Operation of food stamp offices.
Sec. 126. State employee and training standards.
Sec. 127. Expedited coupon service.
Sec. 128. Fair hearings.
Sec. 129. Income and eligibility verification system.
Sec. 130. Collection of overissuances.
Sec. 131. Termination of Federal match for optional information 
                            activities.
Sec. 132. Standards for administration.
Sec. 133. Work supplementation or support program.
Sec. 134. Waiver authority.
Sec. 135. Authorization of pilot projects.
Sec. 136. Response to waivers.
Sec. 137. Private sector employment initiatives.
Sec. 138. Reauthorization of appropriations.
Sec. 139. Reauthorization of Puerto Rico block grant.
Sec. 140. Simplified food stamp program.
Sec. 141. Effective date.
                   TITLE II--CHILD NUTRITION PROGRAMS

                    Subtitle A--Reimbursement Rates

Sec. 201. Termination of additional payment for lunches served in high 
                            free and reduced price participation 
                            schools.
Sec. 202. Value of food assistance.
Sec. 203. Lunches, breakfasts, and supplements.
Sec. 204. Summer food service program for children.
Sec. 205. Special milk program.
Sec. 206. Free and reduced price breakfasts.
Sec. 207. Conforming reimbursement for paid breakfasts and lunches.
                       Subtitle B--Grant Programs

Sec. 211. School breakfast startup grants.
Sec. 212. Nutrition education and training programs.
Sec. 213. Effective date.
                      Subtitle C--Other Amendments

Sec. 221. Free and reduced price policy statement.
Sec. 222. Summer food service program for children.
Sec. 223. Child and adult care food program.
Sec. 224. Reducing required reports to State agencies and schools.
                       TITLE III--REAUTHORIZATION

Sec. 301. Commodity distribution program; commodity supplemental food 
                            programs.
Sec. 302. Emergency food assistance program.
Sec. 303. Soup kitchens program.
Sec. 304. National commodity processing.
                      TITLE I--FOOD STAMP PROGRAM

SEC. 101. 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, disabled, or primarily self-
employed. A State agency shall have at least 1 personal contact with 
each certified household every 12 months.''.

SEC. 102. TREATMENT OF MINORS.

    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. 103. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD 
              DETERMINATIONS.

    (a) In General.--Section 3(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2012(i)) is amended by inserting after the second sentence the 
following: ``Notwithstanding the preceding sentences, a State may 
establish criteria that prescribe when individuals who live together, 
and who would be allowed to participate as separate households under 
the preceding sentences, shall be considered a single household, 
without regard to the purchase of food and the preparation of meals.''.
    (b) Conforming Amendment.--The second sentence of section 5(a) of 
the Act (7 U.S.C. 2014(a)) is amended by striking ``the third sentence 
of section 3(i)'' and inserting ``the fourth sentence of section 
3(i)''.

SEC. 104. 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 ``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, 1995, 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, 1995, the Secretary may not reduce the cost of the 
        diet in effect on September 30, 1995.''.

SEC. 105. 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. 106. 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 ``19''.

SEC. 107. ENERGY ASSISTANCE.

    (a) In General.--Section 5(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)) is amended--
            (1) by striking paragraph (11); and
            (2) by redesignating paragraphs (12) through (16) as 
        paragraphs (11) through (15), respectively.
    (b) Conforming Amendments.--
            (1) Section 5 of the Act (7 U.S.C. 2014) is amended--
                    (A) in subsection (k)(1)(A), by striking ``plan for 
                aid to families with dependent children approved'' and 
                inserting ``program funded''; and
                    (B) in subsection (m), by striking ``(d)(13)'' and 
                inserting ``(d)(12)''.
            (2) Section 2605(f) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended--
                    (A) by striking ``(f)(1) Notwithstanding'' and 
                inserting ``(f) Notwithstanding'';
                    (B) in paragraph (1), by striking ``food stamps,''; 
                and
                    (C) by striking paragraph (2).

SEC. 108. 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.--
                    ``(A) In general.--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--
                            ``(i) for fiscal year 1995, $134, $229, 
                        $189, $269, and $118, respectively;
                            ``(ii) for fiscal year 1996, $132, $225, 
                        $186, $265, and $116, respectively;
                            ``(iii) for fiscal year 1997, $130, $222, 
                        $183, $261, and $114, respectively;
                            ``(iv) for fiscal year 1998, $128, $218, 
                        $180, $257, and $112, respectively;
                            ``(v) for fiscal year 1999, $126, $215, 
                        $177, $252, and $111, respectively; and
                            ``(vi) for fiscal year 2000, $124, $211, 
                        $174, $248, and $109, respectively.
                    ``(B) Adjustment for inflation.--On October 1, 
                2000, and each October 1 thereafter, the Secretary 
                shall adjust the standard deduction to the nearest 
                lower dollar increment to reflect changes in the 
                Consumer Price Index for all urban consumers published 
                by the Bureau of Labor Statistics, for items other than 
                food, for the 12-month period ending the preceding June 
                30.
            ``(2) Earned income deduction.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a household with earned income shall 
                be allowed a deduction of 20 percent of all earned 
                income (other than income excluded by subsection (d)), 
                to compensate for taxes, other mandatory deductions 
                from salary, and work expenses.
                    ``(B) Exception.--The deduction described in 
                subparagraph (A) 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 deduction.--A State agency may 
        develop a standard homeless shelter deduction, which shall not 
        exceed $139 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 
        deduction may use the deduction in determining eligibility and 
        allotments for the households, except that the State agency may 
        prohibit the use of the deduction for households with extremely 
        low shelter costs.
            ``(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 or 
                        verification on 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.--
                            ``(i) Prior to september 30, 1995.--In the 
                        case of a household that does not contain an 
                        elderly or disabled individual, during the 15-
                        month period ending September 30, 1995, the 
                        excess shelter expense deduction shall not 
                        exceed--
                                    ``(I) in the 48 contiguous States 
                                and the District of Columbia, $231 per 
                                month; and
                                    ``(II) in Alaska, Hawaii, Guam, and 
                                the Virgin Islands of the United 
                                States, $402, $330, $280, and $171 per 
                                month, respectively.
                            ``(ii) After september 30, 1995.--In the 
                        case of a household that does not contain an 
                        elderly or disabled individual, during the 15-
                        month period ending December 31, 1996, the 
                        excess shelter expense deduction shall not 
                        exceed--
                                    ``(I) in the 48 contiguous States 
                                and the District of Columbia, $247 per 
                                month; and
                                    ``(II) in Alaska, Hawaii, Guam, and 
                                the Virgin Islands of the United 
                                States, $429, $353, $300, and $182 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 
                                subparagraph (C)(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 Act (7 U.S.C. 
2020(e)(3)) is amended by striking ``Under rules prescribed'' and all 
that follows through ``verifies higher expenses''.

SEC. 109. AMOUNT OF VEHICLE ASSET LIMITATION.

    The first sentence of section 5(g)(2) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(g)(2)) is amended by striking ``through September 30, 
1995'' and all that follows through ``such date and on'' and inserting 
``and shall be adjusted on October 1, 1996, and''.

SEC. 110. BENEFITS FOR ALIENS.

    Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C. 2014(i)) is 
amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by inserting ``or who executed such an 
                affidavit or similar agreement to enable the individual 
                to lawfully remain in the United States,'' after 
                ``respect to such individual,''; and
                    (B) by striking ``for a period'' and all that 
                follows through the period at the end and inserting 
                ``until the end of the period ending on the later of 
                the date agreed to in the affidavit or agreement or the 
                date that is 5 years after the date on which the 
                individual was first lawfully admitted into the United 
                States following the execution of the affidavit or 
                agreement.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (C)(i), by striking ``of three 
                years after entry into the United States'' and 
                inserting ``determined under paragraph (1)''; and
                    (B) in subparagraph (D), by striking ``of three 
                years after such alien's entry into the United States'' 
                and inserting ``determined under paragraph (1)''.

SEC. 111. 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 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.--
                                    ``(I) Standard.--The Secretary 
                                shall determine the meaning of good 
                                cause for the purpose of this 
                                paragraph.
                                    ``(II) Procedure.--A State agency 
                                shall determine the procedure for 
                                determining whether an individual acted 
                                with good cause for the purpose of this 
                                paragraph.
                                    ``(III) Adequate child care.--In 
                                this paragraph, the term `good cause' 
                                includes the lack of adequate child 
                                care for a dependent child under the 
                                age of 12.
                            ``(ii) Voluntary quit.--
                                    ``(I) Standard.--The Secretary 
                                shall determine the meaning of 
                                voluntarily quitting for the purpose of 
                                this paragraph.
                                    ``(II) Procedure.--The Secretary 
                                shall determine the procedure for 
                                determining whether an individual 
                                voluntarily quit for the purpose of 
                                this paragraph.
                            ``(iii) Determination by state agency.--
                        Subject to clauses (i) and (ii), a State agency 
                        shall determine--
                                    ``(I) the meaning of any term in 
                                subparagraph (A);
                                    ``(II) the procedures for 
                                determining whether an individual is in 
                                compliance with a requirement under 
                                subparagraph (A); and
                                    ``(III) whether an individual is in 
                                compliance with a requirement under 
                                subparagraph (A).
                            ``(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 the purpose 
                                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 Act (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 Act (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. 112. CARETAKER EXEMPTION.

    Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(2)) 
is amended by striking subparagraph (B) and inserting the following: 
``(B) a parent or other member of a household with responsibility for 
the care of (i) a dependent child under the age of 6 or any lower age 
designated by the State agency that is not under the age of 1, or (ii) 
an incapacitated person;''.

SEC. 113. 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) in subparagraph (A)--
                    (A) by striking ``Not later than April 1, 1987, 
                each'' and inserting ``Each'';
                    (B) by striking ``and approved by the Secretary''; 
                and
                    (C) by striking ``program in gaining skills, 
                training, or experience'' and inserting ``program, but 
                not a State program funded under part A of title IV of 
                the Social Security Act (42 U.S.C. 601 et seq.), in 
                gaining skills, training, work, or experience'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i)--
                            (i) by inserting ``with terms and 
                        conditions set by a State agency'' after 
                        ``means a program''; and
                            (ii) 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'';
                    (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; 
                        and
                    (D) in clause (vii), by striking ``As approved'' 
                and all that follows through ``other employment'' and 
                inserting ``Other employment'';
            (3) 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'';
            (4) in subparagraph (E), by striking the third sentence;
            (5) in subparagraph (G)--
                    (A) by striking ``(G)(i) The State'' and inserting 
                ``(G) The State''; and
                    (B) by striking clause (ii);
            (6) in subparagraph (H), by striking ``(H)(i) The 
        Secretary'' and all that follows through ``(ii) Federal funds'' 
        and inserting ``(H) Federal funds'';
            (7) in subparagraph (I)(i)--
                    (A) in the matter preceding subclause (I), by 
                inserting ``not'' after ``paragraph,''; and
                    (B) in subclause (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'';
            (8)(A) by striking subparagraphs (K) and (L); and
            (B) by redesignating subparagraphs (M) and (N) as 
        subparagraphs (K) and (L), respectively; and
            (9) in subparagraph (K) (as redesignated by paragraph 
        (8)(B))--
                    (A) by striking ``(K)(i) The Secretary'' and 
                inserting ``(K) The Secretary''; and
                    (B) by striking clause (ii).
    (b) Funding.--Section 16(h) of the Act (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, $77,000,000;
                            ``(ii) for fiscal year 1997, $80,000,000;
                            ``(iii) for fiscal year 1998, $83,000,000;
                            ``(iv) for fiscal year 1999, $86,000,000; 
                        and
                            ``(v) for fiscal year 2000, $89,000,000.
                    ``(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(n).
                    ``(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 in each fiscal 
year.''.
    (c) Reports.--Section 16(h) of the Act (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. 114. 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 failure of that member to perform an 
        action required under a Federal, State, or local law relating 
        to welfare or a public assistance program, the State agency may 
        impose the same disqualification on the member of the household 
        under the food stamp program.
            ``(2) 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.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (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 ``; and''; and
            (3) by adding at the end the following:
            ``(26) the guidelines the State agency uses in carrying out 
        section 6(i).''.
    (c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7 U.S.C. 
2015(d)(2)(A)) is amended by striking ``that is comparable to a 
requirement of paragraph (1)''.

SEC. 115. COOPERATION WITH CHILD SUPPORT AGENCIES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 114) is further amended by adding at the end the following:
    ``(j) 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.).
    ``(k) Non-Custodial 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 non-custodial 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. 116. DISQUALIFICATION FOR CHILD SUPPORT ARREARS.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 115) is further amended by adding at the end the following:
    ``(l) Disqualification for Child Support Arrears.--
            ``(1) In general.--At the option of a State agency, except 
        as provided in paragraph (2), 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. 117. PERMANENT DISQUALIFICATION FOR PARTICIPATING IN 2 OR MORE 
              STATES.

    Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as amended 
by section 116) is further amended by adding at the end the following:
    ``(m) Permanent Disqualification for Participating in 2 or More 
States.--An individual shall be permanently ineligible to participate 
in the food stamp program as a member of any household if the 
individual is found by a State agency to have made, or is convicted in 
Federal or State court of having made, a fraudulent statement or 
representation with respect to the place of residence of the individual 
in order to receive benefits simultaneously from 2 or more States under 
the food stamp program.''.

SEC. 118. WORK REQUIREMENT.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) (as amended by section 117) is further amended by adding at the 
end the following:
    ``(n) 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); or
                    ``(C) a program of employment or 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 section 6(d)(4) 
                other than a job search program or a job search 
                training program under clause (i) or (ii) of section 
                6(d)(4)(B).
            ``(2) Work requirement.--No individual shall be eligible to 
        participate in the food stamp program as a member of any 
        household if, during the preceding 12 months, the individual 
        received food stamp benefits for not less than 6 months during 
        which the individual did not--
                    ``(A) work 20 hours or more per week, averaged 
                monthly; or
                    ``(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.
            ``(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 
                a dependent child; or
                    ``(D) otherwise exempt under section 6(d)(2).
            ``(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 individuals reside--
                            ``(i) has an unemployment rate of over 8 
                        percent; 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.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 119. ELECTRONIC BENEFIT TRANSFERS.

    Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is amended 
by adding at the end the following:
    ``(j) Electronic Benefit Transfers.--
            ``(1) Applicable law.--
                    ``(A) In general.--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.
                    ``(B) Definition of electronic benefit transfer 
                system.--In this paragraph, the term `electronic 
                benefit transfer system' means a system under which a 
                governmental entity distributes benefits under this Act 
                or other benefits or payments by establishing accounts 
                to be accessed by recipients of the benefits 
                electronically, including through the use of an 
                automated teller machine or an intelligent benefit 
                card.
            ``(2) Charging for electronic benefit transfer card 
        replacement.--
                    ``(A) In general.--A State agency may charge an 
                individual for the cost of replacing a lost or stolen 
                electronic benefit transfer card.
                    ``(B) Reducing allotment.--A State agency may 
                collect a charge imposed under subparagraph (A) by 
                reducing the monthly allotment of the household of 
                which the individual is a member.''.

SEC. 120. MINIMUM BENEFIT.

    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. 121. 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. 122. 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 the aggregate of the initial allotment and 
        the first regular allotment, which shall be provided in 
        accordance with section 11(e)(3) in the case of a household 
        that is not entitled to expedited service or in accordance with 
        paragraphs (3) and (9) of section 11(e) in the case of a 
        household that is entitled to expedited service.''.

SEC. 123. FAILURE TO COMPLY WITH OTHER WELFARE AND 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 
        welfare or a public assistance program for the failure 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) Optional method.--In carrying out paragraph (1), a 
        State agency may consider, for the duration of a reduction 
        referred to under paragraph (1), the benefits of the household 
        before the reduction as income of the household after the 
        reduction.''.

SEC. 124. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN INSTITUTIONS.

    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 Institutions.--
            ``(1) In general.--In the case of an individual who resides 
        in a homeless shelter, or in an institution or 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 institution as an authorized 
                representative for the individual for a period that is 
                less than 1 month; and
                    ``(B) the individual, if the individual leaves the 
                institution.
            ``(2) Direct payment.--A State agency may require an 
        individual referred to in paragraph (1) to designate the 
        shelter, institution, or center in which the individual resides 
        as the authorized representative of the individual for the 
        purpose of receiving an allotment.''.

SEC. 125. OPERATION OF FOOD STAMP OFFICES.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) 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 which a substantial number of 
        members 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 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;
                    ``(iii) shall consider an application filed on the 
                date the applicant submits an application that contains 
                the name, address, and signature of the applicant; and
                    ``(iv) may establish operating procedures that vary 
                for local food stamp offices to reflect regional and 
                local differences within the State;'';
                    (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 paragraph (14) and inserting the 
                following:
            ``(14) the standards and procedures used by the State 
        agency under section 6(d)(1)(D) to determine whether an 
        individual is eligible to participate under section 
        6(d)(1)(A);''; and
                    (D) by striking paragraph (25) and inserting the 
                following:
            ``(25) a description of the work supplementation or support 
        program, if any, carried out by the State agency under section 
        16(b).''; 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.--Other than in a case of 
        disqualification as a penalty for failure to comply with a 
        public assistance program rule or regulation, no''.

SEC. 126. 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 ``(A)''; and
            (2) by striking subparagraphs (B) through (E).

SEC. 127. 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)--
                    (A) by striking ``five days'' and inserting ``7 
                business days''; and
                    (B) by inserting ``and'' at the end;
            (2) by striking subparagraphs (B) and (C);
            (3) by redesignating subparagraph (D) as subparagraph (B); 
        and
            (4) in subparagraph (B) (as redesignated by paragraph (3)), 
        by striking ``, (B), or (C)''.

SEC. 128. FAIR HEARINGS.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended 
by adding at the end the following:
    ``(p) Withdrawing Fair Hearing Requests.--A household may withdraw, 
orally or in writing, a request by the household for a fair hearing 
under subsection (e)(10). If the withdrawal request is an oral request, 
the State agency shall provide a written notice to the household 
confirming the request and providing the household with an opportunity 
to request a hearing.''.

SEC. 129. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.

    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) (as 
amended by section 128) is further amended by adding at the end the 
following:
    ``(q) State Verification Option.--Notwithstanding any other 
provision of law, a State agency shall not be required to use an income 
and eligibility verification
 system established under section 1137 of the Social Security Act (42 
U.S.C. 1320b-7).''.

SEC. 130. COLLECTION OF OVERISSUANCES.

    (a) In General.--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 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) Hardships.--A State agency may not use an allotment 
        reduction under paragraph (1)(A) as a means collecting an 
        overissuance from a household if the allotment reduction would 
        cause a hardship on the household, as determined by the State 
        agency.
            ``(4) 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 reduce the monthly allotment of the household 
        under paragraph (1)(A) by the greater of--
                    ``(A) 10 percent of the monthly allotment of the 
                household; or
                    ``(B) $10.
            ``(5) Procedures.--A State agency shall collect an 
        overissuance of coupons issued to a household under paragraph 
        (1) in accordance with 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 Amendment.--Section 11(e)(8) of the Act (7 U.S.C. 
2020(e)(8)) is amended--
            (1) by striking ``and excluding claims'' and all that 
        follows through ``such section,''; and
            (2) by inserting before the semicolon at the end the 
        following: ``or a Federal income tax refund as authorized by 
        section 3720A of title 31, United States Code''.

SEC. 131. TERMINATION OF FEDERAL MATCH FOR OPTIONAL INFORMATION 
              ACTIVITIES.

    (a) In General.--Section 16(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(a)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) through (8) as 
        paragraphs (4) through (7), respectively.
    (b) Conforming Amendment.--Section 16(g) of the Act (7 U.S.C. 
2025(g)) is amended by striking ``an amount equal to'' and all that 
follows through ``1991, of'' and inserting ``the amount provided under 
subsection (a)(5) for''.

SEC. 132. 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 Act (7 
        U.S.C. 2020(g)) is amended by striking ``the Secretary's 
        standards for the efficient and effective administration of the 
        program established under section 16(b)(1) or''.
            (2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B)) 
        is amended by striking ``pursuant to subsection (b)''.

SEC. 133. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) (as 
amended by section 132(a)) is further amended by inserting after 
subsection (a) the following:
    ``(b) Work Supplementation or Support Program.--
            ``(1) Definition.--In this subsection, the term `work 
        supplementation or support program' means a program in 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 new employee who is a public 
        assistance recipient.
            ``(2) Program.--A State agency may elect to use amounts 
        equal to the allotment that would otherwise be allotted to a 
        household under the food stamp program, but for the operation 
        of this subsection, for the purpose of subsidizing or 
        supporting jobs 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 paid 
                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) Maximum length of participation.--A work 
        supplementation or support program may not allow the 
        participation of any individual for longer than 6 months, 
        unless the Secretary approves a longer period.''.

SEC. 134. WAIVER AUTHORITY.

    Section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(A)) is amended--
            (1) by striking ``benefits to eligible households, 
        including'' and inserting the following: ``benefits to eligible 
        households. The Secretary may waive the requirements of this 
        Act to the extent necessary to conduct a pilot or experimental 
        project, including a project designed to test innovative 
        welfare reform, promote work, and allow conformity with other 
        Federal, State, and local government assistance programs, 
        except that a project involving the payment of benefits in the 
        form of cash shall maintain the average value of allotments for 
        affected households as a group. Pilot or experimental projects 
        may include''; and
            (2) by striking ``The Secretary may waive'' and all that 
        follows through ``sections 5 and 8 of this Act.''.

SEC. 135. AUTHORIZATION OF PILOT PROJECTS.

    The last sentence of section 17(b)(1)(A) of the Food Stamp Act of 
1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking ``1995'' and 
inserting ``2000''.

SEC. 136. RESPONSE TO WAIVERS.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended by adding at the end the following:
                    ``(C) Response to waivers.--
                            ``(i) Response.--Not later than 60 days 
                        after the date of receiving a request for a 
                        waiver under subparagraph (A), the Secretary 
                        shall provide a response that--
                                    ``(I) approves the waiver request;
                                    ``(II) denies the waiver request 
                                and explains any modification needed 
                                for approval of the waiver request;
                                    ``(III) denies the waiver request 
                                and explains the grounds for the 
                                denial; or
                                    ``(IV) requests clarification of 
                                the waiver request.
                            ``(ii) Failure to respond.--If the 
                        Secretary does not provide a response under 
                        clause (i) not later than 60 days after 
                        receiving a request for a waiver, the waiver 
                        shall be considered approved.
                            ``(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 the grounds 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. 137. PRIVATE SECTOR EMPLOYMENT INITIATIVES.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by adding at the end the following:
    ``(m) Private Sector Employment Initiatives.--
            ``(1) Election to participate.--
                    ``(A) In general.--Subject to the other provisions 
                of this subsection, a State may elect to carry out a 
                private sector employment initiative program under this 
                subsection.
                    ``(B) Requirement.--A State shall be eligible to 
                carry out a private sector employment initiative under 
                this subsection only if not less than 50 percent of the 
                households that received food stamp benefits during the 
                summer of 1993 also received benefits under a State 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.) during the summer 
                of 1993.
            ``(2) Procedure.--A State that has elected to carry out a 
        private sector employment initiative under paragraph (1) may 
        use amounts equal to the food stamp allotments that would 
        otherwise be allotted 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).
            ``(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 in the 
                private sector for not less than the preceding 90 days;
                    ``(B) has earned not less than $350 per month from 
                the employer referred to in subparagraph (A) for not 
                less than the preceding 90 days;
                    ``(C)(i) is eligible to receive 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 eligible to receive 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 shall determine the content of the 
        evaluation.''.

SEC. 138. REAUTHORIZATION OF APPROPRIATIONS.

    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 ``1995'' and 
inserting ``2000''.

SEC. 139. REAUTHORIZATION OF PUERTO RICO BLOCK GRANT.

    The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 
1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' 
and all that follows through ``fiscal year 1995'' and inserting the 
following: ``$1,143,000,000 for each of fiscal years 1995 and 1996, 
$1,182,000,000 for fiscal year 1997, $1,223,000,000 for fiscal year 
1998, $1,266,000,000 for fiscal year 1999, and $1,310,000,000 for 
fiscal year 2000''

SEC. 140. 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. 24. SIMPLIFIED FOOD STAMP PROGRAM.

    ``(a) Election.--Subject to subsection (c), a State agency may 
elect to carry out a Simplified Food Stamp Program (referred to in this 
section as a `Program') under this section.
    ``(b) Operation of Program.--
            ``(1) In general.--If a State agency elects to carry out a 
        Program, within the State or a political subdivision of the 
        State--
                    ``(A) 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; and
                    ``(B) subject to subsection (e), benefits under the 
                Program shall be determined under rules and procedures 
                established by the State under--
                            ``(i) a State program funded under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.);
                            ``(ii) the food stamp program; or
                            ``(iii) 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.
            ``(2) Shelter standard.--The State agency may elect to 
        apply 1 shelter standard to a household that receives a housing 
        subsidy and another shelter standard to a household that does 
        not receive the subsidy.
    ``(c) 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.--
                    ``(A) In general.--The Secretary shall approve any 
                State plan to carry out a Program if the Secretary 
                determines that the plan--
                            ``(i) complies with this section; and
                            ``(ii) would not increase Federal costs 
                        incurred under this Act.
                    ``(B) Definition of federal costs.--In this 
                section, the term `Federal costs' does not include any 
                Federal costs incurred under section 17.
    ``(d) 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, the Secretary shall notify the State agency not 
        later than January 1 of the immediately succeeding fiscal year.
            ``(3) Return of funds.--
                    ``(A) In general.--If the Secretary determines that 
                the Program has increased Federal costs under this Act 
                for a 2-year period, including a fiscal year for which 
                notice was given under paragraph (2) and an immediately 
                succeeding fiscal year, the State agency shall pay to 
                the Treasury of the United States the amount of the 
                increased costs.
                    ``(B) Enforcement.--If the State agency does not 
                pay an amount due under subparagraph (A) on a date that 
                is not later than 90 days after the date of the 
                determination, the Secretary shall reduce amounts 
                otherwise due to the State agency for administrative 
                costs under section 16(a).
    ``(e) Rules and Procedures.--
            ``(1) In general.--Except as provided by paragraph (2), a 
        State may apply--
                    ``(A) the rules and procedures established by the 
                State under--
                            ``(i) the State program funded under part A 
                        of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.); or
                            ``(ii) the food stamp program; or
                    ``(B) the rules and procedures of 1 of the programs 
                to certain matters and the rules and procedures of the 
                other program to all remaining matters.
            ``(2) Standardized deductions.--The State may standardize 
        the deductions provided under section 5(e). In developing the 
        standardized deduction, the State shall give consideration to 
        the work expenses, dependent care costs, and shelter costs of 
        participating households.
            ``(3) Requirements.--In operating a Program, the State 
        shall comply with--
                    ``(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) subsections (b) and (d) of section 8;
                    ``(D) subsections (a), (c), (d), and (n) of section 
                11;
                    ``(E) paragraph (3) of section 11(e), to the extent 
                that the paragraph requires that an eligible household 
                be certified and receive an allotment for the period of 
                application not later than 30 days after filing an 
                application;
                    ``(F) paragraphs (8), (9), (12), (17), (19), (21), 
                and (27) of section 11(e);
                    ``(G) 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
                    ``(H) section 16.''.
    (b) State Plan Provisions.--Section 11(e) of the Act (7 U.S.C. 
2020(e)) (as amended by section 114(b)) is further amended--
            (1) in paragraph (25), by striking ``and'' at the end;
            (2) in paragraph (26), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(27) the plans of the State agency for operating, at the 
        election of the State, a program under section 24, including--
                    ``(A) the rules and procedures to be followed by 
                the State to determine food stamp benefits;
                    ``(B) how the State 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 will carry out a quality control system under 
                section 16(c).''.
    (c) Conforming Amendments.--
            (1) Section 8 of the Act (7 U.S.C. 2017) (as amended by 
        section 124) is further amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e).
            (2) Section 17 of the Act (7 U.S.C. 2026) (as amended by 
        section 137) is further amended--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsections (j) through (m) as 
                subsections (i) through (l), respectively.

SEC. 141. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall become effective on October 1, 
1995.

                   TITLE II--CHILD NUTRITION PROGRAMS

                    Subtitle A--Reimbursement Rates

SEC. 201. TERMINATION OF ADDITIONAL PAYMENT FOR LUNCHES SERVED IN HIGH 
              FREE AND REDUCED PRICE PARTICIPATION SCHOOLS.

    (a) In General.--Section 4(b)(2) of the National School Lunch Act 
(42 U.S.C. 1753(b)(2)) is amended by striking ``except that'' and all 
that follows through ``2 cents more''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 202. VALUE OF FOOD ASSISTANCE.

    (a) In General.--Section 6(e)(1) of the National School Lunch Act 
(42 U.S.C. 1755(e)(1)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) Adjustments.--
                            ``(i) In general.--The value of food 
                        assistance for each meal shall be adjusted each 
                        July 1 by the annual percentage change in a 3-
                        month average value of the Price Index for 
                        Foods Used in Schools and Institutions for 
                        March, April, and May each year.
                            ``(ii) Adjustments.--Except as otherwise 
                        provided in this subparagraph, in the case of 
                        each school year, the Secretary shall--
                                    ``(I) base the adjustment made 
                                under clause (i) on the amount of the 
                                unrounded adjustment for the preceding 
                                school year;
                                    ``(II) adjust the resulting amount 
                                in accordance with clause (i); and
                                    ``(III) round the result to the 
                                nearest lower cent increment.
                            ``(iii) Adjustment on january 1, 1996.--On 
                        January 1, 1996, the Secretary shall round the 
                        value of food assistance referred to in clause 
                        (i) to the nearest lower cent increment.
                            ``(iv) Adjustment for 1996-97 school 
                        year.--In the case of the school year beginning 
                        July 1, 1996, the value of food assistance 
                        shall be the same as the value of food 
                        assistance for the school year beginning July 
                        1, 1995, rounded to the nearest lower cent 
                        increment.
                            ``(v) Adjustment for 1997-98 school year.--
                        In the case of the school year beginning July 
                        1, 1997, the Secretary shall--
                                    ``(I) base the adjustment made 
                                under clause (i) on the amount of the 
                                unrounded adjustment for the value of 
                                food assistance for the school year 
                                beginning July 1, 1995;
                                    ``(II) adjust the resulting amount 
                                to reflect the annual percentage change 
                                in a 3-month average value of the Price 
                                Index for Foods Used in Schools and 
                                Institutions for March, April, and May 
                                for the most recent 12-month period for 
                                which the data are available; and
                                    ``(III) round the result to the 
                                nearest lower cent increment.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 203. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.

    (a) In General.--Section 11(a)(3)(B) of the National School Lunch 
Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
            (1) by designating the second and third sentences as 
        subparagraphs (C) and (D), respectively; and
            (2) by striking subparagraph (D) (as so designated) and 
        inserting the following:
                    ``(D) Rounding.--Except as otherwise provided in 
                this paragraph, in the case of each 12-month period, 
                the Secretary shall--
                            ``(i) base the adjustment made under this 
                        paragraph on the amount of the unrounded 
                        adjustment for the preceding 12-month period;
                            ``(ii) adjust the resulting amount in 
                        accordance with subparagraph (C); and
                            ``(iii) round the result to the nearest 
                        lower cent increment.
                    ``(E) Adjustment on january 1, 1996.--On January 1, 
                1996, the Secretary shall round the rates and factor 
                referred to in subparagraph (A) to the nearest lower 
                cent increment.
                    ``(F) Adjustment for 24-month period beginning july 
                1, 1996.--In the case of the 24-month period beginning 
                July 1, 1996, the national average payment rates for 
                paid lunches, paid breakfasts, and paid supplements 
                shall be the same as the national average payment rate 
                for paid lunches, paid breakfasts, and paid 
                supplements, respectively, for the 12-month period 
                beginning July 1, 1995, rounded to the nearest lower 
                cent increment.
                    ``(G) Adjustment for 12-month period beginning july 
                1, 1998.--In the case of the 12-month period beginning 
                July 1, 1998, the Secretary shall--
                            ``(i) base the adjustments made under this 
                        paragraph for--
                                    ``(I) paid lunches and paid 
                                breakfasts on the amount of the 
                                unrounded adjustment for paid lunches 
                                for the 12-month period beginning July 
                                1, 1995; and
                                    ``(II) paid supplements on the 
                                amount of the unrounded adjustment for 
                                paid supplements for the 12-month 
                                period beginning July 1, 1995;
                            ``(ii) adjust each resulting amount in 
                        accordance with subparagraph (C); and
                            ``(iii) round each result to the nearest 
                        lower cent increment.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 204. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) In General.--Section 13(b) of the National School Lunch Act (42 
U.S.C. 1761(b)) is amended--
            (1) by striking ``(b)(1)'' and all that follows through the 
        end of paragraph (1) and inserting the following:
    ``(b) Service Institutions.--
            ``(1) Payments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, payments to service institutions shall 
                equal the full cost of food service operations (which 
                cost shall include the costs of obtaining, preparing, 
                and serving food, but shall not include administrative 
                costs).
                    ``(B) Maximum amounts.--Subject to subparagraph 
                (C), payments to any institution under subparagraph (A) 
                shall not exceed--
                            ``(i) $2 for each lunch and supper served;
                            ``(ii) $1.20 for each breakfast served; and
                            ``(iii) 50 cents for each meal supplement 
                        served.
                    ``(C) Adjustments.--Amounts specified in 
                subparagraph (B) shall be adjusted each January 1 to 
                the nearest lower cent increment in accordance with the 
                changes for the 12-month period ending the preceding 
                November 30 in the series for food away from home of 
                the Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics of the 
                Department of Labor. Each adjustment shall be based on 
                the unrounded adjustment for the prior 12-month 
                period.''; and
            (2) by striking paragraph (4).
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 205. SPECIAL MILK PROGRAM.

    (a) In General.--Section 3(a) of the Child Nutrition Act of 1966 
(42 U.S.C. 1772(a)) is amended by striking paragraph (8) and inserting 
the following:
            ``(8) Adjustments.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, in the case of each school year, the 
                Secretary shall--
                            ``(i) base the adjustment made under 
                        paragraph (7) on the amount of the unrounded 
                        adjustment for the preceding school year;
                            ``(ii) adjust the resulting amount in 
                        accordance with paragraph (7); and
                            ``(iii) round the result to the nearest 
                        lower cent increment.
                    ``(B) Adjustment on january 1, 1996.--On January 1, 
                1996, the Secretary shall round the minimum rate 
                referred to in paragraph (7) to the nearest lower cent 
                increment.
                    ``(C) Adjustment for 1996-97 school year.--In the 
                case of the school year beginning July 1, 1996, the 
                minimum rate shall be the same as the minimum rate for 
                the school year beginning July 1, 1995, rounded to the 
                nearest lower cent increment.
                    ``(D) Adjustment for 1997-98 school year.--In the 
                case of the school year beginning July 1, 1997, the 
                Secretary shall--
                            ``(i) base the adjustment made under 
                        paragraph (7) on the amount of the unrounded 
                        adjustment for the minimum rate for the school 
                        year beginning July 1, 1995;
                            ``(ii) adjust the resulting amount to 
                        reflect changes in the Producer Price Index for 
                        Fresh Processed Milk published by the Bureau of 
                        Labor Statistics of the Department of Labor for 
                        the most recent 12-month period for which the 
                        data are available; and
                            ``(iii) round the result to the nearest 
                        lower cent increment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on January 1, 1996.

SEC. 206. FREE AND REDUCED PRICE BREAKFASTS.

    (a) In General.--Section 4(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1773(b)) is amended--
            (1) in the second sentence of paragraph (1)(B), by striking 
        ``, adjusted to the nearest one-fourth cent'' and inserting 
        ``(as adjusted pursuant to section 11(a) of the National School 
        Lunch Act (42 U.S.C. 1759a(a))''; and
            (2) in paragraph (2)(B)(ii)--
                    (A) by striking ``nearest one-fourth cent'' and 
                inserting ``nearest lower cent increment for the 
                applicable school year''; and
                    (B) by inserting before the period at the end the 
                following: ``, and the adjustment required by this 
                clause shall be based on the unrounded adjustment for 
                the preceding school year''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
become effective on July 1, 1996.

SEC. 207. CONFORMING REIMBURSEMENT FOR PAID BREAKFASTS AND LUNCHES.

    (a) In General.--The last sentence of section 4(b)(1)(B) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is amended by 
striking ``8.25 cents'' and all that follows through ``Act)'' and 
inserting ``the same as the national average lunch payment established 
under section 4(b) of the National School Lunch Act (42 U.S.C. 
1753(b))''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on January 1, 1996.

                       Subtitle B--Grant Programs

SEC. 211. SCHOOL BREAKFAST STARTUP GRANTS.

    Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is 
amended by striking subsection (g).

SEC. 212. NUTRITION EDUCATION AND TRAINING PROGRAMS.

    Section 19(i)(2)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)(2)(A)) is amended by striking ``$10,000,000'' and inserting 
``$7,000,000''.

SEC. 213. EFFECTIVE DATE.

    The amendments made by this subtitle shall become effective on 
October 1, 1996.

                      Subtitle C--Other Amendments

SEC. 221. FREE AND REDUCED PRICE POLICY STATEMENT.

    (a) School Lunch Program.--Section 9(b)(2) of the National School 
Lunch Act (42 U.S.C. 1758(b)(2)) is amended by adding at the end the 
following:
                    ``(D) Free and reduced price policy statement.--A 
                school shall not be required to submit a free and 
                reduced price policy statement to a State educational 
                agency under this Act unless there is a substantive 
                change in the free and reduced price policy of the 
                school. A routine change in the policy of a school, 
                such as an annual adjustment of the income eligibility 
                guidelines for free and reduced price meals, shall not 
                be sufficient cause for requiring the school to submit 
                a policy statement.''.
    (b) School Breakfast Program.--Section 4(b)(1) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)) is amended by adding at 
the end the following:
                    ``(E) Free and reduced price policy statement.--A 
                school shall not be required to submit a free and 
                reduced price policy statement to a State educational 
                agency under this Act unless there is a substantive 
                change in the free and reduced price policy of the 
                school. A routine change in the policy of a school, 
                such as an annual adjustment of the income eligibility 
                guidelines for free and reduced price meals, shall not 
                be sufficient cause for requiring the school to submit 
                a policy statement.''.

SEC. 222. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Permitting Offer Versus Serve.--Section 13(f) of the National 
School Lunch Act (42 U.S.C. 1761(f)) is amended--
            (1) by striking ``(f) Service'' and inserting the 
        following:
    ``(f) Nutritional Standards.--
            ``(1) In general.--Service''; and
            (2) by adding at the end the following:
            ``(2) Offer versus serve.--At the option of a local school 
        food authority, a student in a school under the authority that 
        participates in the program may be allowed to refuse not more 
        than 1 item of a meal that the student does not intend to 
        consume. A refusal of an offered food item shall not affect the 
        amount of payments made under this section to a school for the 
        meal.''.
    (b) Removing Mandatory Notice to Institutions.--Section 13(n)(2) of 
the Act is amended by striking ``and its plans and schedule'' and 
inserting ``except that the Secretary may not require a State to submit 
a plan or schedule''.

SEC. 223. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Payments to Sponsor Employees.--Paragraph (2) of the last 
sentence of section 17(a) of the National School Lunch Act (42 U.S.C. 
1766(a)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) in the case of a family or group day care 
                home sponsoring organization that employs more than 1 
                employee, the organization does not base payments to an 
                employee of the organization on the number of family or 
                group day care homes recruited, managed, or 
                monitored.''.
    (b) Improved Targeting of Day Care Home Reimbursements.--
            (1) Restructured day care home reimbursements.--Section 
        17(f)(3) of the Act is amended by striking ``(3)(A) 
        Institutions'' and all that follows through the end of 
        subparagraph (A) and inserting the following:
            ``(3) Reimbursement of family or group day care home 
        sponsoring organizations.--
                    ``(A) Reimbursement factor.--
                            ``(i) In general.--An institution that 
                        participates in the program under this section 
                        as a family or group day care home sponsoring 
                        organization shall be provided, for payment to 
                        a home of the organization, reimbursement 
                        factors in accordance with this subparagraph 
                        for the cost of obtaining and preparing food 
                        and prescribed labor costs involved in 
                        providing meals under this section.
                            ``(ii) Tier i family or group day care 
                        homes.--
                                    ``(I) Definition.--In this 
                                paragraph, the term `tier I family or 
                                group day care home' means--
                                            ``(aa) a family or group 
                                        day care home that is located 
                                        in a geographic area, as 
                                        defined by the Secretary based 
                                        on census data, in which at 
                                        least 50 percent of the 
                                        children residing in the area 
                                        are members of households whose 
                                        incomes meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9;
                                            ``(bb) a family or group 
                                        day care home that is located 
                                        in an area served by a school 
                                        enrolling elementary students 
                                        in which at least 50 percent of 
                                        the total number of children 
                                        enrolled are certified eligible 
                                        to receive free or reduced 
                                        price school meals under this 
                                        Act or the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.); or
                                            ``(cc) a family or group 
                                        day care home that is operated 
                                        by a provider whose household 
                                        meets the eligibility standards 
                                        for free or reduced price meals 
                                        under section 9 and whose 
                                        income is verified by a 
                                        sponsoring organization under 
                                        regulations established by the 
                                        Secretary.
                                    ``(II) Reimbursement.--Except as 
                                provided in subclause (III), a tier I 
                                family or group day care home shall be 
                                provided reimbursement factors under 
                                this clause without a requirement for 
                                documentation of the costs described in 
                                clause (i), except that reimbursement 
                                shall not be provided under this 
                                subclause for meals or supplements 
                                served to the children of a person 
                                acting as a family or group day care 
                                home provider unless the children meet 
                                the eligibility standards for free or 
                                reduced price meals under section 9.
                                    ``(III) Factors.--Except as 
                                provided in subclause (IV), the 
                                reimbursement factors applied to a home 
                                referred to in subclause (II) shall be 
                                the factors in effect on the date of 
                                enactment of this subclause.
                                    ``(IV) Adjustments.--The 
                                reimbursement factors under this 
                                subparagraph shall be adjusted on 
                                August 1, 1996, July 1, 1997, and each 
                                July 1 thereafter, to reflect changes 
                                in the Consumer Price Index for food at 
                                home for the most recent 12-month 
                                period for which the data are 
                                available. The reimbursement factors 
                                under this subparagraph shall be 
                                rounded to the nearest lower cent 
                                increment and based on the unrounded 
                                adjustment for the preceding 12-month 
                                period.
                            ``(iii) Tier ii family or group day care 
                        homes.--
                                    ``(I) In general.--
                                            ``(aa) Factors.--Except as 
                                        provided in subclause (II), 
                                        with respect to meals or 
                                        supplements served under this 
                                        clause by a family or group day 
                                        care home that does not meet 
                                        the criteria set forth in 
                                        clause (ii)(I), the 
                                        reimbursement factors shall be 
                                        $1 for lunches and suppers, 30 
                                        cents for breakfasts, and 15 
                                        cents for supplements.
                                            ``(bb) Adjustments.--The 
                                        factors shall be adjusted on 
                                        July 1, 1997, and each July 1 
                                        thereafter, to reflect changes 
                                        in the Consumer Price Index for 
                                        food at home for the most 
                                        recent 12-month period for 
                                        which the data are available. 
                                        The reimbursement factors under 
                                        this item shall be rounded down 
                                        to the nearest lower cent 
                                        increment and based on the 
                                        unrounded adjustment for the 
                                        preceding 12-month period.
                                            ``(cc) Reimbursement.--A 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors under this subclause 
                                        without a requirement for 
                                        documentation of the costs 
                                        described in clause (i), except 
                                        that reimbursement shall not be 
                                        provided under this subclause 
                                        for meals or supplements served 
                                        to the children of a person 
                                        acting as a family or group day 
                                        care home provider unless the 
                                        children meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9.
                                    ``(II) Other factors.--A family or 
                                group day care home that does not meet 
                                the criteria set forth in clause 
                                (ii)(I) may elect to be provided 
                                reimbursement factors determined in 
                                accordance with the following 
                                requirements:
                                            ``(aa) Children eligible 
                                        for free or reduced price 
                                        meals.--In the case of meals or 
                                        supplements served under this 
                                        subsection to children who are 
                                        members of households whose 
                                        incomes meet the eligibility 
                                        standards for free or reduced 
                                        price meals under section 9, 
                                        the family or group day care 
                                        home shall be provided 
                                        reimbursement factors set by 
                                        the Secretary in accordance 
                                        with clause (ii)(III).
                                            ``(bb) Ineligible 
                                        children.--In the case of meals 
                                        or supplements served under 
                                        this subsection to children who 
                                        are members of households whose 
                                        incomes do not meet the 
                                        eligibility standards, the 
                                        family or group day care home 
                                        shall be provided reimbursement 
                                        factors in accordance with 
                                        subclause (I).
                                    ``(III) Information and 
                                determinations.--
                                            ``(aa) In general.--If a 
                                        family or group day care home 
                                        elects to claim the factors 
                                        described in subclause (II), 
                                        the family or group day care 
                                        home sponsoring organization 
                                        serving the home shall collect 
                                        the necessary income 
                                        information, as determined by 
                                        the Secretary, from any parent 
                                        or other caretaker to make the 
                                        determinations specified in 
                                        subclause (II) and shall make 
                                        the determinations in 
                                        accordance with rules 
                                        prescribed by the Secretary.
                                            ``(bb) Categorical 
                                        eligibility.--In making a 
                                        determination under item (aa), 
                                        a family or group day care home 
                                        sponsoring organization may 
                                        consider a child participating 
                                        in or subsidized under, or a 
                                        child with a parent 
                                        participating in or subsidized 
                                        under, a federally or State 
                                        supported child care or other 
                                        benefit program with an income 
                                        eligibility limit that does not 
                                        exceed the eligibility standard 
                                        for free or reduced price meals 
                                        under section 9 to be a child 
                                        who is a member of a household 
                                        whose income meets the 
                                        eligibility standards under 
                                        section 9.
                                            ``(cc) Factors for children 
                                        only.--A family or group day 
                                        care home may elect to receive 
                                        the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) solely for the 
                                        children participating in a 
                                        program referred to in item 
                                        (bb) if the home elects not to 
                                        have income statements 
                                        collected from parents or other 
                                        caretakers.
                                    ``(IV) Simplified meal counting and 
                                reporting procedures.--The Secretary 
                                shall prescribe simplified meal 
                                counting and reporting procedures for 
                                use by a family or group day care home 
                                that elects to claim the factors under 
                                subclause (II) and by a family or group 
                                day care
                                 home sponsoring organization that 
serves the home. The procedures the Secretary prescribes may include 1 
or more of the following:
                                            ``(aa) Setting an annual 
                                        percentage for each home of the 
                                        number of meals served that are 
                                        to be reimbursed in accordance 
                                        with the reimbursement factors 
                                        prescribed under clause 
                                        (ii)(III) and an annual 
                                        percentage of the number of 
                                        meals served that are to be 
                                        reimbursed in accordance with 
                                        the reimbursement factors 
                                        prescribed under clause 
                                        (iii)(I), based on the family 
                                        income of children enrolled in 
                                        the home in a specified month 
                                        or other period.
                                            ``(bb) Placing a home into 
                                        1 of 2 or more reimbursement 
                                        categories annually based on 
                                        the percentage of children in 
                                        the home whose households have 
                                        incomes that meet the 
                                        eligibility standards under 
                                        section 9, with each such 
                                        reimbursement category carrying 
                                        a set of reimbursement factors 
                                        such as the factors prescribed 
                                        under clause (ii)(II) or 
                                        subclause (I) or factors 
                                        established within the range of 
                                        factors prescribed under clause 
                                        (ii)(II) and subclause (I).
                                            ``(cc) Such other 
                                        simplified procedures as the 
                                        Secretary may prescribe.
                                    ``(V) Minimum verification 
                                requirements.--The Secretary may 
                                establish any necessary minimum 
                                verification requirements.''.
            (2) Grants to states to provide assistance to family or 
        group day care homes.--Section 17(f)(3) of the Act is amended 
        by adding at the end the following:
                    ``(D) Grants to states to provide assistance to 
                family or group day care homes.--
                            ``(i) In general.--
                                    ``(I) Reservation.--From amounts 
                                made available to carry out this 
                                section, the Secretary shall reserve 
                                $5,000,000 of the amount made available 
                                for fiscal year 1996.
                                    ``(II) Purpose.--The Secretary 
                                shall use the funds made available 
                                under subclause (I) to provide grants 
                                to States for the purpose of 
                                providing--
                                            ``(aa) assistance, 
                                        including grants, to family and 
                                        day care home sponsoring 
                                        organizations and other 
                                        appropriate organizations, in 
                                        securing and providing 
                                        training, materials, automated 
                                        data processing assistance, and 
                                        other assistance for the staff 
                                        of the sponsoring 
                                        organizations; and
                                            ``(bb) training and other 
                                        assistance to family and group 
                                        day care homes in the 
                                        implementation of the 
                                        amendments to subparagraph (A) 
                                        made by section 574(b)(1) of 
                                        the Family Self-Sufficiency Act 
                                        of 1995.
                            ``(ii) Allocation.--The Secretary shall 
                        allocate from the funds reserved under clause 
                        (i)(II)--
                                    ``(I) $30,000 in base funding to 
                                each State; and
                                    ``(II) any remaining amount among 
                                the States, based on the number of 
                                family day care homes participating in 
                                the program in a State in 1994 as a 
                                percentage of the number of all family 
                                day care homes participating in the 
                                program in 1994.
                            ``(iii) Retention of funds.--Of the amount 
                        of funds made available to a State for a fiscal 
                        year under clause (i), the State may retain not 
                        to exceed 30 percent of the amount to carry out 
                        this subparagraph.
                            ``(iv) Additional payments.--Any payments 
                        received under this subparagraph shall be in 
                        addition to payments that a State receives 
                        under subparagraph (A) (as amended by section 
                        134(b)(1) of the Family Self-Sufficiency Act of 
                        1995).''.
            (3) Provision of data.--Section 17(f)(3) of the Act (as 
        amended by paragraph (2)) is further amended by adding at the 
        end the following:
                    ``(E) Provision of data to family or group day care 
                home sponsoring organizations.--
                            ``(i) Census data.--The Secretary shall 
                        provide to each State agency administering a 
                        child and adult care food program under this 
                        section data from the most recent decennial 
                        census survey or other appropriate census 
                        survey for which the data are available showing 
                        which areas in the State meet the requirements 
                        of subparagraph (A)(ii)(I)(aa). The State 
                        agency shall provide the data to family or 
                        group day care home sponsoring organizations 
                        located in the State.
                            ``(ii) School data.--
                                    ``(I) In general.--A State agency 
                                administering the school lunch program 
                                under this Act or the school breakfast 
                                program under the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et seq.) shall 
                                provide data for each elementary school 
                                in the State, or shall direct each 
                                school within the State to provide data 
                                for the school, to approved family or 
                                group day care home sponsoring 
                                organizations that request the data, on 
                                the percentage of enrolled children who 
                                are eligible for free or reduced price 
                                meals.
                                    ``(II) Use of data from preceding 
                                school year.--In determining for a 
                                fiscal year or other annual period 
                                whether a home qualifies as a tier I 
                                family or group day care home under 
                                subparagraph (A)(ii)(I), the State 
                                agency administering the program under 
                                this section, and a family or group day 
                                care home sponsoring organization, 
                                shall use the most current available 
                                data at the time of the determination.
                            ``(iii) Duration of determination.--For 
                        purposes of this section, a determination that 
                        a family or group day care home is located in 
                        an area that qualifies the home as a tier I 
                        family or group day care home (as the term is 
                        defined in subparagraph (A)(ii)(I)), shall be 
                        in effect for 3 years (unless the determination 
                        is made on the basis of census data, in which 
                        case the determination shall remain in effect 
                        until more recent census data are available) 
                        unless the State agency determines that the 
                        area in which the home is located no longer 
                        qualifies the home as a tier I family or group 
                        day care home.''.
            (4) Conforming amendments.--Section 17(c) of the Act is 
        amended by inserting ``except as provided in subsection 
        (f)(3),'' after ``For purposes of this section,'' each place it 
        appears in paragraphs (1), (2), and (3).
    (c) Disallowing Meal Claims.--The fourth sentence of section 
17(f)(4) of the Act is amended by inserting ``(including institutions 
that are not family or group day care home sponsoring organizations)'' 
after ``institutions''.
    (d) Elimination of State Paperwork and Outreach Burden.--Section 17 
of the Act is amended by striking subsection (k) and inserting the 
following:
    ``(k) Training and Technical Assistance.--A State participating in 
the program established under this
 section shall provide sufficient training, technical assistance, and 
monitoring to facilitate effective operation of the program. The 
Secretary shall assist the State in developing plans to fulfill the 
requirements of this subsection.''.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall become effective on the 
        date of enactment of this Act.
            (2) Improved targeting of day care home reimbursements.--
        The amendments made by paragraphs (1), (3), and (4) of 
        subsection (b) shall become effective on August 1, 1996.

SEC. 224. REDUCING REQUIRED REPORTS TO STATE AGENCIES AND SCHOOLS.

    Section 19 of the National School Lunch Act (42 U.S.C. 1769a) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Family Self-Sufficiency Act of 1995, the Secretary shall--
            ``(1) review all reporting requirements under this Act and 
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) that 
        are in effect, as of the date of enactment of the Family Self-
        Sufficiency Act of 1995, for agencies and schools referred to 
        in subsection (a); and
            ``(2) provide a report to the Committee on Economic and 
        Educational Opportunities of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate that--
                    ``(A) describes the reporting requirements 
                described in paragraph (1) that are required by law;
                    ``(B) makes recommendations concerning the 
                elimination of any requirement described in 
                subparagraph (A) because the contribution of the 
                requirement to program effectiveness is not sufficient 
                to warrant the paperwork burden that is placed on 
                agencies and schools referred to in subsection (a); and
                    ``(C) provides a justification for reporting 
                requirements described in paragraph (1) that are 
                required solely by regulation.''.

                       TITLE III--REAUTHORIZATION

SEC. 301. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD 
              PROGRAMS.

    (a) Reauthorization.--The first sentence of section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 
U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2000''.
    (b) Administrative Funding.--Section 5(a)(2) of the Act (Public Law 
93-86; 7 U.S.C. 612c note) is amended by striking ``1995'' and 
inserting ``2000''.

SEC. 302. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Reauthorization.--The first sentence of section 204(a)(1) of 
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 
612c note) is amended by striking ``1995'' and inserting ``2000''.
    (b) Program Termination.--Section 212 of the Act (Public Law 98-8; 
7 U.S.C. 612c note) is amended by striking ``1995'' and inserting 
``2000''.
    (c) Required Purchases of Commodities.--Section 214 of the Act 
(Public Law 98-8; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2000''; and
            (2) in subsection (e), by striking ``1995'' each place it 
        appears and inserting ``2000''.

SEC. 303. SOUP KITCHENS PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``1995'' and inserting ``2000''; and
            (2) in subsection (c)(2)--
                    (A) in the paragraph heading, by striking ``1995'' 
                and inserting ``2000''; and
                    (B) by striking ``1995'' each place it appears and 
                inserting ``2000''.

SEC. 304. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1775(2)(A) of the Agriculture and 
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995'' 
and inserting ``2000''.
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