[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6567 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6567

To replace certain Federal nutrition programs with a block grant to the 
                    States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2012

   Mr. Huelskamp (for himself, Mr. Broun of Georgia, Mr. Chabot, Mr. 
  Jordan, Mr. King of Iowa, Mr. Bishop of Utah, and Mr. Westmoreland) 
 introduced the following bill; which was referred to the Committee on 
 Agriculture, and in addition to the Committees on Ways and Means and 
Education and the Workforce, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To replace certain Federal nutrition programs with a block grant to the 
                    States, 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 ``State Nutrition 
Assistance Flexibility Act of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Grants to States.
Sec. 4. Administrative and fiscal accountability.
Sec. 5. Nondiscrimination provisions.
Sec. 6. Definitions.
Sec. 7. Report on reduction of Federal administrative expenditures.
Sec. 8. Repeals.
Sec. 9. Severability.
Sec. 10. Effective date.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide Federal financial assistance 
to the States, in the form of a single grant, to allow the States 
maximum flexibility in providing, and financing the provision of, 
supplemental food and nutrition assistance.

SEC. 3. GRANTS TO STATES.

    (a) In General.--Subject to the requirements of this Act, each 
State that meets the requirements of subsection (d) is entitled to 
receive from the Secretary of the Treasury a grant for each quarter of 
fiscal years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 
2022, in an amount that is equal to 25 percent of the sum of--
            (1) the total amount of funds received by a State; and
            (2) with funds not received by a State, the dollar value of 
        in-kind benefits (as determined by the Secretary of 
        Agriculture) provided to residents of such State;
under the provisions listed in section 8 for fiscal year 2008.
    (b) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated for fiscal 
years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021 and 2022 
such sums as are necessary for grants under this subsection (a).
    (c) Requirements Relating to Intergovernmental Financing.--The 
Secretary of the Treasury shall make the transfer of funds under grants 
under subsection (a) directly to each State in accordance with the 
requirements of section 6503 of title 31, United States Code.
    (d) State Requirements.--In order to receive a grant under 
subsection (a), the Governor of a State shall certify to the Secretary 
of the Treasury that the supplemental food and nutrition assistance 
that will be provided by the State using such grant will include--
            (1) as conditions of receiving supplemental food and 
        nutrition assistance, work requirements that are at least as 
        strict as the work requirements which a State is required to 
        impose under a State program funded under part A of title IV of 
        the Social Security Act on recipients of assistance under such 
        a program; and
            (2) limitations on the eligible uses of benefits that are 
        at least as restrictive as the limitations in place for the 
        supplemental nutrition assistance program established under the 
        Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) as of 
        May 31, 2012.
    (e) Expenditure of Funds.--
            (1) In general.--Except as provided in paragraph (2), 
        amounts received by a State under subsection (a) for any fiscal 
        year shall be expended by the State in such fiscal year or in 
        the succeeding fiscal year.
            (2) Use of rainy day fund permitted.--Of the amounts 
        received by a State under subsection (a), the State may set 
        aside, in a separate account, such amounts as the State deems 
        necessary to provide, without fiscal limitation, supplemental 
        food and nutrition assistance and services for indigent 
        individuals during--
                    (A) periods of unexpectedly high rates of 
                unemployment; or
                    (B) periods related to circumstances that are not 
                described in subparagraph (A) and that cause unexpected 
                increases in the need for such assistance and services 
                for such individuals.
            (3) Funds remaining after fiscal year 2022.--If, after 
        2022, a State has funds in the account under paragraph (2), the 
        State may only expend such funds if such funds are used in a 
        manner that is permitted under subsection (f), as such 
        subsection is in effect on September 30, 2022.
    (f) Use of Funds.--A State may only use the amounts received under 
subsection (a) as follows:
            (1) General purpose.--For the purpose under section 2, 
        except that nothing in this Act shall be construed as limiting 
        the flexibility of a State to determine which providers of such 
        assistance and services qualify to receive payment from a grant 
        made to the State under subsection (a).
            (2) Authority to use portion of federal assistance for 
        other welfare-related programs.--
                    (A) In general.--Subject to the limit under 
                subparagraph (B), to carry out a State program pursuant 
                to any or all of the following provisions of law:
                            (i) Part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.).
                            (ii) Section 1616 of such Act (42 U.S.C. 
                        1382e).
                    (B) Limitation.--A State may not use more than 30 
                percent of the amount received under subsection (a) for 
                a fiscal year to carry out a State program, or 
                programs, under subparagraph (A).
                    (C) Requirements on funds.--Any amounts that are 
                used under subparagraph (A)--
                            (i) shall not be subject to any of the 
                        requirements of subsection (e) or section 5; 
                        and
                            (ii) shall be subject to--
                                    (I) the audit requirements under 
                                section 4; and
                                    (II) any requirements that apply to 
                                Federal funds provided directly for 
                                such State program.
    (g) No Funding for Illegal Aliens.--Except as provided under this 
Act, no funds appropriated in this Act may be used to provide 
supplemental food and nutrition assistance to an alien who is not 
lawfully admitted for permanent residence or otherwise permanently 
residing in the United States under color of law.
    (h) Nonentitlement.--Nothing in this Act shall be construed as 
providing an individual with an entitlement to supplemental food and 
nutrition assistance under this Act.

SEC. 4. ADMINISTRATIVE AND FISCAL ACCOUNTABILITY.

    (a) Audits.--
            (1) Contract with approved auditing entity.--Not later than 
        October 1, 2013, and annually thereafter, a State shall 
        contract with an approved auditing entity (as defined under 
        paragraph (3)(B)) for purposes of conducting an audit under 
        paragraph (2) (with respect to the fiscal year ending September 
        30 of such year).
            (2) Audit requirement.--Under a contract under paragraph 
        (1), an approved auditing entity shall conduct an audit of the 
        expenditures or transfers made by a State from amounts received 
        under a grant under this section 3(a) with respect to the 
        fiscal year which such audit covers, to determine the extent to 
        which such expenditures and transfers were expended in 
        accordance with this Act.
            (3) Entity conducting audit.--
                    (A) In general.--With respect to a State, the audit 
                under paragraph (2) shall be conducted by an approved 
                auditing entity in accordance with generally accepted 
                auditing principles.
                    (B) Approved auditing entity.--For purposes of this 
                section, the term ``approved auditing entity'' means, 
                with respect to a State, an entity that is--
                            (i) approved by the Secretary of the 
                        Treasury;
                            (ii) approved by the chief executive 
                        officer of the State; and
                            (iii) independent of any Federal, State, or 
                        local agency.
            (4) Submission of audit.--Not later than December 31, 2013, 
        and annually thereafter, a State shall submit the results of 
        the audit under paragraph (2) (with respect to the fiscal year 
        ending on September 30 of such year) to the State legislature 
        and to the Secretary of the Treasury.
            (5) Additional accounting requirements.--The provisions of 
        chapter 75 of title 31, United States Code, shall apply to the 
        audit requirements of this section.
    (b) Reimbursement and Penalty.--If, through an audit conducted 
under subsection (a), an approved auditing entity finds that any 
amounts paid to a State under a grant under section 3(a) were not 
expended in accordance with this Act--
            (1) the State shall pay to the Treasury of the United 
        States any such amount, plus 10 percent of such amount as a 
        penalty; or
            (2) the Secretary of the Treasury shall offset such amount 
        plus the 10 percent penalty against any other amount in any 
        other fiscal year that the State may be entitled to receive 
        under a grant under section 3(a).
    (c) Annual Reporting Requirements.--
            (1) In general.--Not later than January 31, 2014, and 
        annually thereafter, each State shall submit to the Secretary 
        of the Treasury and the State legislature a report on the 
        activities carried out by the State during the most recently 
        completed fiscal year with funds received by the State under a 
        grant under section 3(a) for such fiscal year.
            (2) Content.--A report under paragraph (1) shall, with 
        respect to a fiscal year--
                    (A) contain the results of the audit conducted by 
                an approved auditing entity for a State for such fiscal 
                year, in accordance with the requirements of subsection 
                (a) of this section;
                    (B) specify the amount of the grant made to the 
                State under section 3(a) that is used to carry out a 
                program under section 3(f)(2); and
                    (C) be in such form and contain such other 
                information as the State determines is necessary to 
                provide--
                            (i) an accurate description of the 
                        activities conducted by the State for the 
                        purpose described under section 2 and any other 
                        use of funds permitted under subsections (d) 
                        and (e) of section 3; and
                            (ii) a complete record of the purposes for 
                        which amounts were expended in accordance with 
                        this Act.
            (3) Conformity with accounting principles.--Any financial 
        information in the report under paragraph (1) shall be prepared 
        and reported in accordance with generally accepted accounting 
        principles, including the provisions of chapter 75 of title 31, 
        United States Code.
            (4) Public availability.--A State shall make copies of the 
        reports required under this section available on a public Web 
        site and shall make copies available in other formats upon 
        request.
    (d) Failure To Comply With Requirements.--The Secretary of the 
Treasury shall not make any payment to a State under a grant authorized 
by section 3(a)--
            (1) if an audit for a State is not submitted as required 
        under subsection (a), during the period between the date such 
        audit is due and the date on which such audit is submitted; or
            (2) if a State fails to submit a report as required under 
        subsection (c), during the period between the date such report 
        is due and the date on which such report is submitted.
    (e) Administrative Supervision and Oversight.--
            (1) Limited role for secretary of the treasury and the 
        attorney general.--
                    (A) Treasury.--The authority of the Secretary of 
                the Treasury under this Act is limited to--
                            (i) promulgating regulations, issuing 
                        rules, or publishing guidance documents to the 
                        extent necessary for purposes of implementing 
                        subsections (a)(3)(B), (b), and (d);
                            (ii) making quarterly payments to the 
                        States under grants under this Act in 
                        accordance with section 3(a);
                            (iii) approving entities under subsection 
                        (a)(3)(B) for purposes of the audits required 
                        under subsection (a);
                            (iv) withholding payment to a State of a 
                        grant under subsection (d) or offsetting a 
                        payment of such a grant to a State under 
                        subsection (b); and
                            (v) exercising the authority relating to 
                        nondiscrimination that is specified in section 
                        5(b).
                    (B) Attorney general.--The authority of the 
                Attorney General to supervise the amounts received by a 
                State under section 3(a) is limited to the authority 
                under section 5(c).
            (2) Federal supervision.--
                    (A) In general.--Except as provided under paragraph 
                (1), an administrative officer, employee, department, 
                or agency of the United States (including the 
                Secretaries of Agriculture and Health and Human 
                Services) may not--
                            (i) supervise--
                                    (I) the amounts received by the 
                                States under section 3(a); or
                                    (II) the use of such amounts by the 
                                States; or
                            (ii) promulgate regulations or issue rules 
                        in accordance with this Act.
                    (B) Limitation on secretaries of agriculture and 
                health and human services.--The Secretaries of 
                Agriculture and Health and Human Services shall have no 
                authority over any provision of this Act.
    (f) Reservation of State Powers.--Nothing in this section shall be 
construed to limit the power of a State, including the power of a State 
to pursue civil and criminal penalties under State law against any 
individual or entity that misuses, or engages in fraud or abuse related 
to the funds provided to a State under this Act.

SEC. 5. NONDISCRIMINATION PROVISIONS.

    (a) Nondiscrimination Against Individuals.--No individual shall be 
excluded from participation in, denied the benefits of, or subjected to 
discrimination under, any program or activity funded in whole or in 
part with amounts paid to a State under this section 3(a) on the basis 
of such individual's--
            (1) disability under section 504 of the Rehabilitation Act 
        of 1973 (29 U.S.C. 794);
            (2) sex under title IX of the Education Amendments of 1972 
        (20 U.S.C. 1681 et seq.); or
            (3) race, color, or national origin under title VI of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
    (b) Compliance.--
            (1) In general.--If the Secretary of the Treasury 
        determines that a State or an entity that has received funds 
        from amounts paid to a State under a grant under section 3(a) 
        has failed to comply with a provision of law referred to in 
        subsection (a), the Secretary of the Treasury shall notify the 
        chief executive officer of the State of such failure to comply 
        and shall request that such chief executive officer secure such 
        compliance.
            (2) Refusal to secure compliance.--If, not later than 60 
        days after receiving notification under paragraph (1), the 
        chief executive officer of a State fails or refuses to secure 
        compliance with the provision of law referred to in such 
        notification, the Secretary of the Treasury may--
                    (A) refer the matter to the Attorney General with a 
                recommendation that an appropriate civil action be 
                instituted; or
                    (B) exercise the powers and functions provided 
                under section 505 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794a), title IX of the Education Amendments of 
                1972 (20 U.S.C. 1681 et seq.), or title VI of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000d et seq.) (as 
                applicable).
    (c) Civil Actions.--If a matter is referred to the Attorney General 
under subsection (b)(2)(A), or the Attorney General has reason to 
believe that a State or entity has failed to comply with a provision of 
law referred to in subsection (a), the Attorney General may bring a 
civil action in an appropriate district court of the United States for 
such relief as may be appropriate, including injunctive relief.

SEC. 6. DEFINITIONS.

    For purposes of this Act:
            (1) Supplemental food and nutrition assistance.--The term 
        ``supplemental food and nutrition assistance'' shall be defined 
        by a State with respect to use of such term for purposes of the 
        application of this Act to the State.
            (2) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2012) as of May 31, 2012.

SEC. 7. REPORT ON REDUCTION OF FEDERAL ADMINISTRATIVE EXPENDITURES.

    Beginning not later than October 31, 2013, and annually thereafter 
until October 31, 2022, the Secretaries of Agriculture and Health and 
Human Services, in consultation with the Secretary of the Treasury, 
shall submit a report to the Committee on Energy and Commerce in the 
House of Representatives and the Finance Committee in the Senate 
containing a description of the total reduction in Federal expenditures 
required to administer and provide oversight for the programs to 
provide supplemental food and nutrition assistance to indigent 
individuals under this Act, compared to the expenditures required to 
administer and provide oversight for the programs listed in section 8, 
as such programs were in effect on September 30, 2012.

SEC. 8. REPEALS.

    The following provisions are repealed:
            (1) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
        7501 et seq.).
            (2) Section 5 of the Agriculture and Consumer Protection 
        Act of 1973, (commonly known as the commodity supplemental food 
        program) (7 U.S.C. 612c note).
            (3) Section 4402 of Public Law 107-171 (relating to the 
        seniors farmers' market nutrition program) (7 U.S.C. 3007).
            (4) The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
        seq.).
            (5) Section 19 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1769a).

SEC. 9. SEVERABILITY.

    If any provision of this Act, or the application of such provision 
to any person or circumstance, is found to be unconstitutional, the 
remainder of this Act, or the application of that provision to other 
persons or circumstances, shall not be affected.

SEC. 10. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect with 
respect to items and services furnished on or after October 1, 2012.
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