Appendix A_Legal Authority

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FOOD AND NUTRITION ACT OF 2008
[As Amended Through P.L. 113–79, Enacted February 07, 2014]
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TABLE OF CONTENTS 1
1. ø2011 note¿ Short title.
2. ø2011¿ Declaration of policy.
3. ø2012¿ Definitions.
4. ø2013¿ Establishment of the supplemental nutrition assistance program.
5. ø2014¿ Eligible households.
6. ø2015¿ Eligibility disqualifications.
7. ø2016¿ Issuance and use of program benefits.
8. ø2017¿ Value of allotment.
9. ø2018¿ Approval of retail food stores and wholesale food concerns.
10. ø2019¿ Redemption of program benefits.
11. ø2020¿ Administration.
12. ø2021¿ Civil penalties and disqualification of retail food stores and wholesale food concerns.
13. ø2022¿ Collection and disposition of claims.
14. ø2023¿ Administrative and judicial review.
15. ø2024¿ Violations and enforcement.
16. ø2025¿ Administrative cost-sharing and quality control.
17. ø2026¿ Research, demonstration, and evaluations.
18. ø2027¿ Authorization for appropriations.
19. ø2028¿ Consolidated block grants for Puerto Rico and American Samoa.
20. ø2029¿ Workfare.
22. ø2031¿ Minnesota Family Investment Project.
23. ø2032¿ Automated data processing and information retrieval systems.
25. ø2034¿ Assistance for community food projects.
26. ø2035¿ Simplified supplemental nutrition assistance program.
27. ø2036¿ Availability of commodities for the emergency food assistance program.
28. ø2036a¿ Nutrition education and obesity prevention grant program.

AN ACT To strengthen the agricultural economy; to help to achieve a fuller and
more effective use of food abundances; to provide for improved levels of nutrition
among low-income households through a cooperative Federal-State program of
food assistance to be operated through normal channels of trade; and for other
purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, ø7 U.S.C. 2011
note¿ That this Act may be cited as the ‘‘Food and Nutrition Act
of 2008’’. 2
DECLARATION OF POLICY

SEC. 2. ø7 U.S.C. 2011¿ It is hereby declared to be the policy
of Congress, in order to promote the general welfare, to safeguard
1 This

table of contents is not part of the Act but is included for user convenience. The
numbers in brackets refer to section numbers in title 7, United States Code.
2 Sec. 4407 of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122 Stat. 1903)
provided: ‘‘Except as otherwise provided in this title, this title and the amendments made by
this title take effect on October 1, 2008.’’.

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the health and well-being of the Nation’s population by raising levels of nutrition among low-income households. Congress hereby
finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of
such households. Congress further finds that increased utilization
of food in establishing and maintaining adequate national levels of
nutrition will promote the distribution in a beneficial manner of
the Nation’s agricultural abundance and will strengthen the Nation’s agricultural economy, as well as result in more orderly marketing and distribution of foods. To alleviate such hunger and malnutrition, a supplemental nutrition assistance program is herein
authorized which will permit low-income households to obtain a
more nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for
participation.
DEFINITIONS

SEC. 3. ø7 U.S.C. 2012¿ As used in this Act, the term:
(a) ‘‘Access device’’ means any card, plate, code, account number, or other means of access, including point of sale devices, that
can be used, alone or in conjunction with another access device, to
obtain payments, allotments, benefits, money, goods, or other
things of value, or that can be used to initiate a transfer of funds
under this Act.
(b) ‘‘Allotment’’ means the total value of benefits a household
is authorized to receive during each month.
(c) ‘‘Allowable medical expenses’’ means expenditures for (1)
medical and dental care, (2) hospitalization or nursing care (including hospitalization or nursing care of an individual who was a
household member immediately prior to entering a hospital or
nursing home), (3) prescription drugs when prescribed by a licensed
practitioner authorized under State law and over-the-counter medication (including insulin) when approved by a licensed practitioner
or other qualified health professional, (4) health and hospitalization
insurance policies (excluding the costs of health and accident or income maintenance policies), (5) medicare premiums related to coverage under title XVIII of the Social Security Act ø(42 U.S.C. 1395
et seq.)¿, (6) dentures, hearing aids, and prosthetics (including the
costs of securing and maintaining a seeing eye dog), (7) eye glasses
prescribed by a physician skilled in eye disease or by an optometrist, (8) reasonable costs of transportation necessary to secure
medical treatment or services, and (9) maintaining an attendant,
homemaker, home health aide, housekeeper, or child care services
due to age, infirmity, or illness.
(d) BENEFIT.—The term ‘‘benefit’’ means the value of supplemental nutrition assistance provided to a household by means of—
(1) an electronic benefit transfer under section 7(i); or
(2) other means of providing assistance, as determined by
the Secretary.
(e) BENEFIT ISSUER.—The term ‘‘benefit issuer’’ means any office of the State agency or any person, partnership, corporation, organization, political subdivision, or other entity with which a State
agency has contracted for, or to which it has delegated functional
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responsibility in connection with, the issuance of benefits to households.
(f) ‘‘Certification period’’ means the period for which households
shall be eligible to receive benefits. The certification period shall
not exceed 12 months, except that the certification period may be
up to 24 months if all adult household members are elderly or disabled. A State agency shall have at least 1 contact with each certified household every 12 months. The limits specified in this subsection may be extended until the end of any transitional benefit
period established under section 11(s).
(g) ‘‘Coupon’’ means any coupon, stamp, type of certificate, authorization card, cash or check issued in lieu of a coupon.
(h) ‘‘Drug addiction or alcoholic treatment and rehabilitation
program’’ means any such program conducted by a private nonprofit organization or institution, or a publicly operated community
mental health center, under part B of title XIX of the Public Health
Service Act (42 U.S.C. 300x et seq.) to provide treatment that can
lead to the rehabilitation of drug addicts or alcoholics.
(i) EBT CARD.—The term ‘‘EBT card’’ means an electronic benefit transfer card issued under section 7(i).
(j) ‘‘Elderly or disabled member’’ means a member of a household who—
(1) is sixty years of age or older;
(2)(A) receives supplemental security income benefits
under title XVI of the Social Security Act (42 U.S.C. 1381 et
seq.), or Federally or State administered supplemental benefits
of the type described in section 212(a) of Public Law 93–66 (42
U.S.C. 1382 note), or
(B) receives Federally or State administered supplemental
assistance of the type described in section 1616(a) of the Social
Security Act (42 U.S.C. 1382e(a)), interim assistance pending
receipt of supplemental security income, disability-related medical assistance under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), or disability-based State general assistance benefits, if the Secretary determines that such benefits
are conditioned on meeting disability or blindness criteria at
least as stringent as those used under title XVI of the Social
Security Act;
(3) receives disability or blindness payments under title I,
II, X, XIV, or XVI of the Social Security Act (42 U.S.C. 301 et
seq.) or receives disability retirement benefits from a governmental agency because of a disability considered permanent
under section 221(i) of the Social Security Act (42 U.S.C.
421(i));
(4) is a veteran who—
(A) has a service-connected or non-service-connected
disability which is rated as total under title 38, United
States Code; or
(B) is considered in need of regular aid and attendance
or permanently housebound under such title;
(5) is a surviving spouse of a veteran and—
(A) is considered in need of regular aid and attendance
or permanently housebound under title 38, United States
Code; or
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(B) is entitled to compensation for a service-connected
death or pension benefits for a non-service-connected death
under title 38, United States Code, and has a disability
considered permanent under section 221(i) of the Social
Security Act (42 U.S.C. 421(i));
(6) is a child of a veteran and—
(A) is considered permanently incapable of self-support
under section 414 of title 38, United States Code; or
(B) is entitled to compensation for a service-connected
death or pension benefits for a non-service-connected death
under title 38, United States Code, and has a disability
considered permanent under section 221(i) of the Social
Security Act (42 U.S.C. 421(i)); or
(7) is an individual receiving an annuity under section
2(a)(1)(iv) or 2(a)(1)(v) of the Railroad Retirement Act of 1974
(45 U.S.C. 231a(a)(1)(iv) or 231a(a)(1)(v)), if the individual’s
service as an employee under the Railroad Retirement Act of
1974, after December 31, 1936, had been included in the term
‘‘employment’’ as defined in the Social Security Act ø(42 U.S.C.
301 et seq.)¿, and if an application for disability benefits had
been filed.
(k) ‘‘Food’’ means (1) any food or food product for home consumption except alcoholic beverages, tobacco, hot foods or hot food
products ready for immediate consumption other than those authorized pursuant to clauses (3), (4), (5), (7), (8), and (9) of this subsection, and any deposit fee in excess of the amount of the State
fee reimbursement (if any) required to purchase any food or food
product contained in a returnable bottle or can, regardless of
whether the fee is included in the shelf price posted for the food
or food product, (2) seeds and plants for use in gardens to produce
food for the personal consumption of the eligible household, (3) in
the case of those persons who are sixty years of age or over or who
receive supplemental security income benefits or disability or blindness payments under title I, II, X, XIV, or XVI of the Social Security Act ø(42 U.S.C. 1381 et seq.)¿, and their spouses, meals prepared by and served in senior citizens’ centers, apartment buildings
occupied primarily by such persons, public or private nonprofit establishments (eating or otherwise) that feed such persons, private
establishments that contract with the appropriate agency of the
State to offer meals for such persons at concessional prices subject
to section 9(h), and meals prepared for and served to residents of
federally subsidized housing for the elderly, (4) in the case of persons sixty years of age or over and persons who are physically or
mentally handicapped or otherwise so disabled that they are unable adequately to prepare all of their meals, meals prepared for
and delivered to them (and their spouses) at their home by a public
or private nonprofit organization or by a private establishment that
contracts with the appropriate State agency to perform such services at concessional prices subject to section 9(h), (5) in the case of
narcotics addicts or alcoholics, and their children, served by drug
addiction or alcoholic treatment and rehabilitation programs, meals
prepared and served under such programs, (6) in the case of certain eligible households living in Alaska, equipment for procuring
food by hunting and fishing, such as nets, hooks, rods, harpoons,
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and knives (but not equipment for purposes of transportation,
clothing, or shelter, and not firearms, ammunition, and explosives)
if the Secretary determines that such households are located in an
area of the State where it is extremely difficult to reach stores selling food and that such households depend to a substantial extent
upon hunting and fishing for subsistence, (7) in the case of disabled
or blind recipients of benefits under title I, II, X, XIV, or XVI of
the Social Security Act, and individuals described in paragraphs (2)
through (7) of subsection (j), who are residents in a public or private nonprofit group living arrangement that serves no more than
sixteen residents and is certified by the appropriate State agency
or agencies under regulations issued under section 1616(e) of the
Social Security Act or under standards determined by the Secretary
to be comparable to standards implemented by appropriate State
agencies under such section, meals prepared and served under such
arrangement, (8) in the case of women and children temporarily residing in public or private nonprofit shelters for battered women
and children, meals prepared and served, by such shelters, and (9)
in the case of households that do not reside in permanent dwellings
and households that have no fixed mailing addresses, meals prepared for and served by a public or private nonprofit establishment
(approved by an appropriate State or local agency) that feeds such
individuals and by private establishments that contract with the
appropriate agency of the State to offer meals for such individuals
at concessional prices subject to section 9(h).
(l) ‘‘Homeless individual’’ means—
(1) an individual who lacks a fixed and regular nighttime
residence; or
(2) an individual who has a primary nighttime residence
that is—
(A) a supervised publicly or privately operated shelter
(including a welfare hotel or congregate shelter) designed
to provide temporary living accommodations;
(B) an institution that provides a temporary residence
for individuals intended to be institutionalized;
(C) a temporary accommodation for not more than 90
days in the residence of another individual; or
(D) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for
human beings.
(m)(1) ‘‘Household’’ means—
(A) an individual who lives alone or who, while living with
others, customarily purchases food and prepares meals for
home consumption separate and apart from the others; or
(B) a group of individuals who live together and customarily purchase food and prepare meals together for home consumption.
(2) Spouses who live together, parents and their children 21
years of age or younger who live together, and children (excluding
foster children) under 18 years of age who live with and are under
the parental control of a person other than their parent together
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with the person exercising parental control 6 shall be treated as a
group of individuals who customarily purchase and prepare meals
together for home consumption even if they do not do so.
(3) Notwithstanding paragraphs (1) and (2), an individual who
lives with others, who is sixty years of age or older, and who is unable to purchase food and prepare meals because such individual
suffers, as certified by a licensed physician, from a disability which
would be considered a permanent disability under section 221(i) of
the Social Security Act (42 U.S.C. 421(i)) or from a severe, permanent, and disabling physical or mental infirmity which is not symptomatic of a disease shall be considered, together with any of the
others who is the spouse of such individual, an individual household, without regard to the purchase of food and preparation of
meals, if the income (as determined under section 5(d)) of the others, excluding the spouse, does not exceed the poverty line, as described in section 5(c)(1), by more than 65 per centum.
(4) In no event shall any individual or group of individuals constitute a household if they reside in an institution or boarding
house, or else live with others and pay compensation to the others
for meals.
(5) For the purposes of this subsection, the following persons
shall not be considered to be residents of institutions and shall be
considered to be individual households:
(A) Residents of federally subsidized housing for the elderly, disabled or blind recipients of benefits under title I, II, X,
XIV, or XVI of the Social Security Act.
(B) Individuals described in paragraphs (2) through (7) of
subsection (j), who are residents in a public or private nonprofit group living arrangement that serves no more than sixteen residents and is certified by the appropriate State agency
or agencies under regulations issued under section 1616(e) of
the Social Security Act ø(42 U.S.C. 1382e(e))¿ or under standards determined by the Secretary to be comparable to standards implemented by appropriate State agencies under that
section.
(C) Temporary residents of public or private nonprofit shelters for battered women and children.
(D) Residents of public or private nonprofit shelters for individuals who do not reside in permanent dwellings or have no
fixed mailing addresses, who are otherwise eligible for benefits.
(E) Narcotics addicts or alcoholics, together with their children, who live under the supervision of a private nonprofit institution, or a publicly operated community mental health center, for the purpose of regular participation in a drug or alcoholic treatment program.
(n) ‘‘Reservation’’ means the geographically defined area or
areas over which a tribal organization exercises governmental jurisdiction.
6 Effective September 1, 1994, section 13931(1)(B) of the Mickey Leland Childhood Hunger Relief Act (P.L. 103–66; 107 Stat. 676) amended the first sentence of section 3(i) by striking ‘‘, or
(3) a parent of minor children and that parent’s children’’ and all that follows through ‘‘parents
and children, or siblings, who live together’’ and inserting ‘‘. Spouses who live’’ and all that follows through ‘‘exercising parental control’’ as flush to the left margin matter. The amendment
was executed as a run-on amendment to effectuate the probable intent of Congress.

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(o) ‘‘Retail food store’’ means—
(1) an establishment or house-to-house trade route that
sells food for home preparation and consumption and—
(A) offers for sale, on a continuous basis, a variety of
at least 7 foods in each of the 4 categories of staple foods
specified in subsection (r)(1), including perishable foods in
at least 3 of the categories; or
(B) has over 50 percent of the total sales of the establishment or route in staple foods,
as determined by visual inspection, sales records, purchase
records, counting of stockkeeping units, or other inventory or
accounting recordkeeping methods that are customary or reasonable in the retail food industry;
(2) an establishment, organization, program, or group living arrangement referred to in paragraphs (3), (4), (5), (7), (8),
and (9) of subsection (k);
(3) a store purveying the hunting and fishing equipment
described in subsection (k)(6);
(4) any private nonprofit cooperative food purchasing venture, including those in which the members pay for food purchased prior to the receipt of such food, or agricultural producers who market agricultural products directly to consumers;
and
(5) a governmental or private nonprofit food purchasing
and delivery service that—
(A) purchases food for, and delivers the food to, individuals who are—
(i) unable to shop for food; and
(ii)(I) not less than 60 years of age; or
(II) physically or mentally handicapped or otherwise disabled;
(B) clearly notifies the participating household at the
time the household places a food order—
(i) of any delivery fee associated with the food purchase and delivery provided to the household by the
service; and
(ii) that a delivery fee cannot be paid with benefits
provided under supplemental nutrition assistance program; and
(C) sells food purchased for the household at the price
paid by the service for the food and without any additional
cost markup.
(p) ‘‘Secretary’’ means the Secretary of Agriculture.
(q)(1) Except as provided in paragraph (2), ‘‘staple foods’’
means foods in the following categories:
(A) Meat, poultry, or fish.
(B) Bread or cereals.
(C) Vegetables or fruits.
(D) Dairy products.
(2) ‘‘Staple foods’’ do not include accessory food items, such as
coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments, and spices.
(r) ‘‘State’’ means the fifty States, the District of Columbia,
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tions of an Indian tribe whose tribal organization meets the requirements of this Act for participation as a State agency.
(s) ‘‘State agency’’ means (1) the agency of State government,
including the local offices thereof, which has the responsibility for
the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term
shall include the counterpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering
a food distribution program under section 4(b) of this Act or a supplemental nutrition assistance program under section 11(d) of this
Act.
(t) ‘‘Supplemental nutrition assistance program’’ means the
program operated pursuant to this Act.
(u) ‘‘Thrifty food plan’’ means the diet required to feed a family
of four persons consisting of a man and a woman twenty through
fifty, a child six through eight, and a child nine through eleven
years of age, determined in accordance with the Secretary’s calculations. The cost of such diet shall be the basis for uniform allotments for all households regardless of their actual composition, except that the Secretary shall—
(1) make household-size adjustments (based on the
unrounded cost of such diet) taking into account economies of
scale;
(2) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost
of food in Hawaii and urban and rural Alaska;
(3) make cost adjustments in the separate thrifty food
plans for Guam, and the Virgin Islands of the United States
to reflect the cost of food in those States, but not to exceed the
cost of food in the fifty States and the District of Columbia;
and
(4) on October 1, 1996, and each October 1 thereafter, adjust the cost of the diet to reflect the cost of the diet in the preceding June, and round the result to the nearest lower dollar
increment for each household size, except that on October 1,
1996, the Secretary may not reduce the cost of the diet in effect
on September 30, 1996, and except that on October 1, 2003, in
the case of households residing in Alaska and Hawaii the Secretary may not reduce the cost of such diet in effect on September 30, 2002.
(v) ‘‘Tribal organization’’ means the recognized governing body
of an Indian tribe (including the tribally recognized intertribal organization of such tribes), as the term ‘‘Indian tribe’’ is defined in
the Indian Self-Determination Act (25 U.S.C. 450b(b)), as well as
any Indian tribe, band, or community holding a treaty with a State
government.
ESTABLISHMENT OF THE SUPPLEMENTAL NUTRITION ASSISTANCE
PROGRAM

SEC. 4. ø7 U.S.C. 2013¿ (a) Subject to the availability of funds
appropriated under section 18 of this Act, the Secretary is authorized to formulate and administer a supplemental nutrition assistFebruary 7, 2014

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ance program under which, at the request of the State agency, eligible households within the State shall be provided an opportunity
to obtain a more nutritious diet through the issuance to them of
an allotment, except that a State may not participate in the supplemental nutrition assistance program if the Secretary determines
that State or local sales taxes are collected within that State on
purchases of food made with benefits issued under this Act. The
benefits so received by such households shall be used only to purchase food from retail food stores which have been approved for
participation in the supplemental nutrition assistance program.
Benefits issued and used as provided in this Act shall be redeemable at face value by the Secretary through the facilities of the
Treasury of the United States.
(b) FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.—
(1) IN GENERAL.—Distribution of commodities, with or
without the supplemental nutrition assistance program, shall
be made whenever a request for concurrent or separate food
program operations, respectively, is made by a tribal organization.
(2) ADMINISTRATION.—
(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), in the event of distribution on all or part of an Indian
reservation, the appropriate agency of the State government in the area involved shall be responsible for the distribution.
(B) ADMINISTRATION BY TRIBAL ORGANIZATION.—If the
Secretary determines that a tribal organization is capable
of effectively and efficiently administering a distribution
described in paragraph (1), then the tribal organization
shall administer the distribution.
(C) PROHIBITION.—The Secretary shall not approve
any plan for a distribution described in paragraph (1) that
permits any household on any Indian reservation to participate simultaneously in the supplemental nutrition assistance program and the program established under this
subsection.
(3) DISQUALIFIED PARTICIPANTS.—An individual who is disqualified from participation in the food distribution program on
Indian reservations under this subsection is not eligible to participate in the supplemental nutrition assistance program
under this Act for a period of time to be determined by the Secretary.
(4) ADMINISTRATIVE COSTS.—The Secretary is authorized to
pay such amounts for administrative costs and distribution
costs on Indian reservations as the Secretary finds necessary
for effective administration of such distribution by a State
agency or tribal organization.
(5) BISON MEAT.—Subject to the availability of appropriations to carry out this paragraph, the Secretary may purchase
bison meat for recipients of food distributed under this subsection, including bison meat from—
(A) Native American bison producers; and
(B) producer–owned cooperatives of bison ranchers.
(6) TRADITIONAL AND LOCALLY-GROWN FOOD FUND.—
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(A) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall establish a fund for use in
purchasing traditional and locally-grown foods for recipients of food distributed under this subsection.
(B) NATIVE AMERICAN PRODUCERS.—Where practicable,
of the food provided under subparagraph (A), at least 50
percent shall be produced by Native American farmers,
ranchers, and producers.
(C) DEFINITION OF TRADITIONAL AND LOCALLY
GROWN.—The Secretary shall determine the definition of
the term ‘‘traditional and locally-grown’’ with respect to
food distributed under this paragraph.
(D) SURVEY.—In carrying out this paragraph, the Secretary shall—
(i) survey participants of the food distribution program on Indian reservations established under this
subsection to determine which traditional foods are
most desired by those participants; and
(ii) purchase or offer to purchase those traditional
foods that may be procured cost-effectively.
(E) REPORT.—Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the activities carried out under this paragraph
during the preceding calendar year.
(F) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out
this paragraph $5,000,000 for each of fiscal years 2008
through 2018.
(c) The Secretary shall issue such regulations consistent with
this Act as the Secretary deems necessary or appropriate for the
effective and efficient administration of the supplemental nutrition
assistance program and shall promulgate all such regulations in accordance with the procedures set forth in section 553 of title 5 of
the United States Code. In addition, prior to issuing any regulation, the Secretary shall provide the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a copy of the regulation with
a detailed statement justifying it.
ELIGIBLE HOUSEHOLDS

SEC. 5. ø7 U.S.C. 2014¿ (a) Participation in the supplemental
nutrition assistance program shall be limited to those households
whose incomes and other financial resources, held singly or in joint
ownership, are determined to be a substantial limiting factor in
permitting them to obtain a more nutritious diet. Notwithstanding
any other provisions of this Act except subsections (b), (d)(2), (g),
and (r) of section 6 and section 3(n)(4), 8 households in which each
8 Sec. 4115(b)(3)(A) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122 Stat.
1867) amended subsection (a) by striking ‘‘section 3(i)(4)’’ and inserting ‘‘section 3(n)(4)’’. The
phrase ‘‘section 3(i)(4)’’ appeared twice in the subsection. Amendment executed both places to
effectuate the probable intent of Congress.

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member receives benefits under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), supplemental security income benefits under title XVI of the Social Security Act ø(42 U.S.C. 1381 et seq.)¿, or aid to the aged, blind, or
disabled under title I, X, XIV, or XVI of the Social Security Act,
shall be eligible to participate in the supplemental nutrition assistance program. Except for sections 6, 16(e)(1), and section 3(n)(4),
households in which each member receives benefits under a State
or local general assistance program that complies with standards
established by the Secretary for ensuring that the program is based
on income criteria comparable to or more restrictive than those
under subsection (c)(2), and not limited to one-time emergency payments that cannot be provided for more than one consecutive
month, shall be eligible to participate in the supplemental nutrition
assistance program. Assistance under this program shall be furnished to all eligible households who make application for such
participation.
(b) ELIGIBILITY STANDARDS.—Except as otherwise provided in
this Act, the Secretary shall establish uniform national standards
of eligibility (other than the income standards for Alaska, Hawaii,
Guam, and the Virgin Islands of the United States established in
accordance with subsections (c) and (e) of this section) for participation by households in the supplemental nutrition assistance program in accordance with the provisions of this section. No plan of
operation submitted by a State agency shall be approved unless the
standards of eligibility meet those established by the Secretary,
and no State agency shall impose any other standards of eligibility
as a condition for participating in the program.
(c) The income standards of eligibility shall be adjusted each
October 1 and shall provide that a household shall be ineligible to
participate in the supplemental nutrition assistance program if—
(1) the household’s income (after the exclusions and deductions provided for in subsections (d) and (e)) exceeds the poverty line, as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), for the forty-eight
contiguous States and the District of Columbia, Alaska, Hawaii, the Virgin Islands of the United States, and Guam, respectively; and
(2) in the case of a household that does not include an elderly or disabled member, the household’s income (after the exclusions provided for in subsection (d) but before the deductions provided for in subsection (e)) exceeds such poverty line
by more than 30 per centum.
In no event shall the standards of eligibility for the Virgin Islands
of the United States or Guam exceed those in the forty-eight contiguous States.
(d) EXCLUSIONS FROM INCOME.—Household income for purposes of the supplemental nutrition assistance program shall include all income from whatever source excluding only—
(1) any gain or benefit which is not in the form of money
payable directly to a household (notwithstanding its conversion
in whole or in part to direct payments to households pursuant
to any demonstration project carried out or authorized under
Federal law including demonstration projects created by the
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waiver of provisions of Federal law), except as provided in subsection (k);
(2) any income in the certification period which is received
too infrequently or irregularly to be reasonably anticipated, but
not in excess of $30 in a quarter, subject to modification by the
Secretary in light of subsection (f);
(3) all educational loans on which payment is deferred,
grants, scholarships, fellowships, veterans’ educational benefits, and the like—
(A) awarded to a household member enrolled at a recognized institution of post-secondary education, at a school
for the handicapped, in a vocational education program, or
in a program that provides for completion of a secondary
school diploma or obtaining the equivalent thereof;
(B) to the extent that they do not exceed the amount
used for or made available as an allowance determined by
such school, institution, program, or other grantor, for tuition and mandatory fees (including the rental or purchase
of any equipment, materials, and supplies related to the
pursuit of the course of study involved), books, supplies,
transportation, and other miscellaneous personal expenses
(other than living expenses), of the student incidental to
attending such school, institution, or program; and
(C) to the extent loans include any origination fees
and insurance premiums;
(4) all loans other than educational loans on which repayment is deferred;
(5) reimbursements which do not exceed expenses actually
incurred and which do not represent a gain or benefit to the
household and any allowance a State agency provides no more
frequently than annually to families with children on the occasion of those children’s entering or returning to school or child
care for the purpose of obtaining school clothes (except that no
such allowance shall be excluded if the State agency reduces
monthly assistance under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
in the month for which the allowance is provided): Provided,
That no portion of benefits provided under title IV–A of the Social Security Act ø(42 U.S.C. 601 et seq.)¿, to the extent it is
attributable to an adjustment for work-related or child care expenses (except for payments or reimbursements for such expenses made under an employment, education, or training program initiated under such title after the date of enactment of
the Hunger Prevention Act of 1988 øSeptember 19, 1988¿), and
no portion of any educational loan on which payment is deferred, grant, scholarship, fellowship, veterans’ benefits, and
the like that are provided for living expenses, shall be considered such reimbursement;
(6) moneys received and used for the care and maintenance of a third-party beneficiary who is not a household member, and 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;
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(7) income earned by a child who is a member of the
household, who is an elementary or secondary school student,
and who is 17 years of age or younger;
(8) moneys received in the form of nonrecurring lump-sum
payments, including, but not limited to, income tax refunds, rebates, or credits, cash donations based on need that are received from one or more private nonprofit charitable organizations, but not in excess of $300 in the aggregate in a quarter,
retroactive lump-sum social security or railroad retirement
pension payments and retroactive lump-sum insurance settlements: Provided, That such payments shall be counted as resources, unless specifically excluded by other laws;
(9) the cost of producing self-employed income, but household income that otherwise is included under this subsection
shall be reduced by the extent that the cost of producing selfemployment income exceeds the income derived from self-employment as a farmer;
(10) any income that any other Federal law specifically excludes from consideration as income for purposes of determining eligibility for the supplemental nutrition assistance
program except as otherwise provided in subsection (k) of this
section;
(11)(A) any payments or allowances made for the purpose
of providing energy assistance under any Federal law (other
than part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.)); or
(B) a 1-time payment or allowance made under a Federal
or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or
other heating or cooling device;
(12) through September 30 of any fiscal year, any increase
in income attributable to a cost-of-living adjustment made on
or after July 1 of such fiscal year under title II or XVI of the
Social Security Act (42 U.S.C. 401 et seq.), section 3(a)(1) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231b(a)(1)), or section 3112 of title 38, United States Code, if the household was
certified as eligible to participate in the supplemental nutrition
assistance program or received an allotment in the month immediately preceding the first month in which the adjustment
was effective;
(13) any payment made to the household under section
3507 of the Internal Revenue Code of 1986 (relating to advance
payment of earned income credit);
(14) any payment made to the household under section
6(d)(4)(I) or a pilot project under section 16(h)(1)(F) for work
related expenses or for dependent care;
(15) any amounts necessary for the fulfillment of a plan for
achieving self-support of a household member as provided
under subparagraph (A)(iii) or (B)(iv) of section 1612(b)(4) of
the Social Security Act (42 U.S.C. 1382a(b)(4));
(16) at the option of the State agency, any educational
loans on which payment is deferred, grants, scholarships, fellowships, veterans’ educational benefits, and the like (other
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cational benefits, and the like excluded under paragraph (3)),
to the extent that they are required to be excluded under title
XIX of the Social Security Act (42 U.S.C. 1396 et seq.);
(17) at the option of the State agency, any State complementary assistance program payments that are excluded for
the purpose of determining eligibility for medical assistance
under section 1931 of the Social Security Act (42 U.S.C.
1396u–1);
(18) at the option of the State agency, any types of income
that the State agency does not consider when determining eligibility for (A) cash assistance under a program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) or the amount of such assistance, or (B) medical assistance under section 1931 of the Social Security Act (42 U.S.C.
1396u–1), except that this paragraph does not authorize a
State agency to exclude wages or salaries, benefits under title
I, II, IV, X, XIV, or XVI of the Social Security Act (42 U.S.C.
301 et seq.), regular payments from a government source (such
as unemployment benefits and general assistance), worker’s
compensation, child support payments made to a household
member by an individual who is legally obligated to make the
payments, or such other types of income the consideration of
which the Secretary determines by regulation to be essential to
equitable determinations of eligibility and benefit levels; and
(19) any additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by the Secretary
to be appropriate for exclusion under this paragraph, that is
received by or from a member of the United States Armed
Forces deployed to a designated combat zone, if the additional
pay—
(A) is the result of deployment to or service in a combat zone; and
(B) was not received immediately prior to serving in a
combat zone.
(e) DEDUCTIONS FROM INCOME.—
(1) STANDARD DEDUCTION.—
(A) IN GENERAL.—
(i) DEDUCTION.—The Secretary shall allow a
standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska,
Hawaii, and the Virgin Islands of the United States in
an amount that is—
(I) equal to 8.31 percent of the income standard of eligibility established under subsection
(c)(1); but
(II) not more than 8.31 percent of the income
standard of eligibility established under subsection (c)(1) for a household of 6 members.
(ii) MINIMUM AMOUNT.—Notwithstanding clause
(i), the standard deduction for each household in the
48 contiguous States and the District of Columbia,
Alaska, Hawaii, and the Virgin Islands of the United
States shall be not less than—
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(I) for fiscal year 2009, $144, $246, $203, and
$127, respectively; and
(II) for fiscal year 2010 and each fiscal year
thereafter, an amount that is equal to the amount
from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for
the 12-month period ending on the preceding June
30 in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other
than food.
(B) GUAM.—
(i) IN GENERAL.—The Secretary shall allow a
standard deduction for each household in Guam in an
amount that is—
(I) equal to 8.31 percent of twice the income
standard of eligibility established under subsection (c)(1) for the 48 contiguous States and the
District of Columbia; but
(II) not more than 8.31 percent of twice the
income standard of eligibility established under
subsection (c)(1) for the 48 contiguous States and
the District of Columbia for a household of 6
members.
(ii) MINIMUM AMOUNT.—Notwithstanding clause
(i), the standard deduction for each household in
Guam shall be not less than—
(I) for fiscal year 2009, $289; and
(II) for fiscal year 2010 and each fiscal year
thereafter, an amount that is equal to the amount
from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for
the 12-month period ending on the preceding June
30 in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other
than food.
(C) REQUIREMENT.—Each adjustment under subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based on the
unrounded amount for the prior 12-month period.
(2) EARNED INCOME DEDUCTION.—
(A) DEFINITION OF EARNED INCOME.—In this paragraph, the term ‘‘earned income’’ does not include—
(i) income excluded by subsection (d); or
(ii) any portion of income earned under a work
supplementation or support program, as defined under
section 16(b), that is attributable to public assistance.
(B) DEDUCTION.—Except as provided in subparagraph
(C), a household with earned income shall be allowed a deduction of 20 percent of all earned income to compensate
for taxes, other mandatory deductions from salary, and
work expenses.
(C) EXCEPTION.—The deduction described in subparagraph (B) shall not be allowed with respect to determining
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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 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) or
a pilot project under section 16(h)(1)(F).
(4) DEDUCTION FOR CHILD SUPPORT PAYMENTS.—
(A) IN GENERAL.—In lieu of providing an exclusion for
legally obligated child support payments made by a household member under subsection (d)(6), a State agency may
elect to provide a deduction for the amount of the payments.
(B) ORDER OF DETERMINING DEDUCTIONS.—A deduction
under this paragraph shall be determined before the computation of the excess shelter expense deduction under
paragraph (6).
(5) EXCESS MEDICAL EXPENSE DEDUCTION.—
(A) IN GENERAL.—A household containing an elderly or
disabled member shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical
expenses, incurred by the elderly or disabled member, exclusive of special diets, that exceeds $35 per month.
(B) METHOD OF CLAIMING DEDUCTION.—
(i) IN GENERAL.—A State agency shall offer an eligible household under subparagraph (A) a method of
claiming a deduction for recurring medical expenses
that are initially verified under the excess medical expense deduction in lieu of submitting information on,
or verification of, actual expenses on a monthly basis.
(ii) METHOD.—The method described in clause (i)
shall—
(I) be designed to minimize the burden for the
eligible elderly or disabled household member
choosing to deduct the recurrent medical expenses
of the member pursuant to the method;
(II) rely on reasonable estimates of the expected medical expenses of the member for the
certification period (including changes that can be
reasonably anticipated based on available inforFebruary 7, 2014

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mation 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.
(C) EXCLUSION OF MEDICAL MARIJUANA.—The Secretary shall promulgate rules to ensure that medical marijuana is not treated as a medical expense for purposes of
this paragraph.
(6) EXCESS SHELTER EXPENSE DEDUCTION.—
(A) IN GENERAL.—A household shall be entitled, with
respect to expenses other than expenses paid on behalf of
the household by a third party, to an excess shelter expense deduction to the extent that the monthly amount expended by a household for shelter exceeds an amount
equal to 50 percent of monthly household income after all
other applicable deductions have been allowed.
(B) MAXIMUM AMOUNT OF DEDUCTION.—In the case of
a household that does not contain an elderly or disabled
individual, in the 48 contiguous States and the District of
Columbia, Alaska, Hawaii, Guam, and the Virgin Islands
of the United States, the excess shelter expense deduction
shall not exceed—
(i) for the period beginning on the date of enactment of this subparagraph øAugust 22, 1996¿ and
ending on December 31, 1996, $247, $429, $353, $300,
and $182 per month, respectively;
(ii) for the period beginning on January 1, 1997,
and ending on September 30, 1998, $250, $434, $357,
$304, and $184 per month, respectively;
(iii) for fiscal year 1999, $275, $478, $393, $334,
and $203 per month, respectively;
(iv) for fiscal year 2000, $280, $483, $398, $339,
and $208 per month, respectively;
(v) for fiscal year 2001, $340, $543, $458, $399,
and $268 per month, respectively; and
(vi) for fiscal year 2002 and each subsequent fiscal
year, the applicable amount during the preceding fiscal year, as adjusted to reflect changes for the 12month period ending the preceding November 30 in
the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor.
(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, subject to clause (iv), except that a State agency may use an allowance that
does not fluctuate within a year to reflect seasonal
variations.
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(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 supplemental nutrition assistance program, another
household participating in the supplemental nutrition assistance 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 (without regard
to subclause (III)) 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.
(III) INAPPLICABILITY OF CERTAIN RESTRICTIONS.—Clauses (ii)(II) and (ii)(III) shall not apply
in the case of a State agency that has made the
use of a standard utility allowance mandatory
under subclause (I).
(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 and cooling costs, the
standard utility allowance shall be made available
to households that received a payment, or on behalf of which a payment was 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 in the current month or in
the immediately preceding 12 months, the houseFebruary 7, 2014

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hold either received such a payment, or such a
payment was made on behalf of the household,
that was greater than $20 annually, as determined by the Secretary.
(II) SEPARATE ALLOWANCE.—A State agency
may use a separate standard utility allowance for
households on behalf of which a payment described in subclause (I) is made, but may not be
required to do so.
(III) STATES NOT ELECTING TO USE SEPARATE
ALLOWANCE.—A State agency that does not elect
to use a separate allowance but makes a single
standard utility allowance available to households
incurring heating or cooling expenses (other than
a household described in subclause (I) or (II) of
clause (ii)) may not be required to reduce the allowance due to the provision (directly or indirectly) of assistance under the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).
(IV) PRORATION OF ASSISTANCE.—For the purpose of the supplemental nutrition assistance 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.
(D) HOMELESS HOUSEHOLDS.—
(i) ALTERNATIVE DEDUCTION.—In lieu of the deduction provided under subparagraph (A), a State agency
may elect to allow a household in which all members
are homeless individuals, but that is not receiving free
shelter throughout the month, to receive a deduction
of $143 per month.
(ii) INELIGIBILITY.—The State agency may make a
household with extremely low shelter costs ineligible
for the alternative deduction under clause (i).
(f)(1)(A) Household income for those households that, by contract for other than an hourly or piecework basis or by self-employment, derive their annual income in a period of time shorter than
one year shall be calculated by averaging such income over a
twelve-month period. Notwithstanding the preceding sentence,
household income resulting from the self-employment of a member
in a farming operation, who derives income from such farming operation and who has irregular expenses to produce such income,
may, at the option of the household, be calculated by averaging
such income and expenses over a 12-month period. Notwithstanding the first sentence, if the averaged amount does not accurately reflect the household’s actual monthly circumstances because
the household has experienced a substantial increase or decrease
in business earnings, the State agency shall calculate the self-employment income based on anticipated earnings.
(B) Household income for those households that receive nonexcluded income of the type described in subsection (d)(3) of this
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section shall be calculated by averaging such income over the period for which it is received.
(C) SIMPLIFIED DETERMINATION OF DEDUCTIONS.—
(i) IN GENERAL.—Except as provided in clause (ii),
for the purposes of subsection (e), a State agency may
elect to disregard until the next recertification of eligibility under section 11(e)(4) 1 or more types of changes
in the circumstances of a household that affect the
amount of deductions the household may claim under
subsection (e).
(ii) CHANGES THAT MAY NOT BE DISREGARDED.—
Under clause (i), a State agency may not disregard—
(I) any reported change of residence; or
(II) under standards prescribed by the Secretary, any change in earned income.
(2)(A) Except as provided in subparagraphs (B), (C), and (D),
households shall have their incomes calculated on a prospective
basis, as provided in paragraph (3)(A), or, at the option of the State
agency, on a retrospective basis, as provided in paragraph (3)(B).
(B) In the case of the first month, or at the option of the State,
the first and second months, during a continuous period in which
a household is certified, the State agency shall determine eligibility
and the amount of benefits on the basis of the household’s income
and other relevant circumstances in such first or second month.
(C) Households specified in clauses (i), (ii), and (iii) of section
6(c)(1)(A) shall have their income calculated on a prospective basis,
as provided in paragraph (3)(A).
(D) Except as provided in subparagraph (B), households required to submit monthly reports of their income and household
circumstances under section 6(c)(1) shall have their income calculated on a retrospective basis, as provided in paragraph (3)(B).
(3)(A) Calculation of household income on a prospective basis
is the calculation of income on the basis of the income reasonably
anticipated to be received by the household during the period for
which eligibility or benefits are being determined. Such calculation
shall be made in accordance with regulations prescribed by the Secretary which shall provide for taking into account both the income
reasonably anticipated to be received by the household during the
period for which eligibility or benefits are being determined and
the income received by the household during the preceding thirty
days.
(B) Calculation of household income on a retrospective basis is
the calculation of income for the period for which eligibility or benefits are being determined on the basis of income received in a previous period. Such calculation shall be made in accordance with
regulations prescribed by the Secretary which may provide for the
determination of eligibility on a prospective basis in some or all
cases in which benefits are calculated under this paragraph. Such
regulations shall provide for supplementing the initial allotments
of newly applying households in those cases in which the determination of income under this paragraph causes serious hardship.
(4) In promulgating regulations under this subsection, the Secretary shall consult with the Secretary of Health and Human Services in order to assure that, to the extent feasible and consistent
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with the purposes of this Act and the Social Security Act ø(42
U.S.C. 301 et seq.)¿, the income of households receiving benefits
under this Act and title IV–A of the Social Security Act ø(42 U.S.C.
601 et seq.)¿is calculated on a comparable basis under the two
Acts. The Secretary is authorized, upon the request of a State
agency, to waive any of the provisions of this subsection (except the
provisions of paragraph (2)(A)) to the extent necessary to permit
the State agency to calculate income for purposes of this Act on the
same basis that income is calculated under title IV–A of the Social
Security Act ø(42 U.S.C. 601 et seq.)¿in that State.
(g) ALLOWABLE FINANCIAL RESOURCES.—
(1) TOTAL AMOUNT.—
(A) IN GENERAL.—The Secretary shall prescribe the
types and allowable amounts of financial resources (liquid
and nonliquid assets) an eligible household may own, and
shall, in so doing, assure that a household otherwise eligible to participate in the supplemental nutrition assistance
program will not be eligible to participate if its resources
exceed $2,000 (as adjusted in accordance with subparagraph (B)), or, in the case of a household which consists of
or includes an elderly or disabled member, if its resources
exceed $3,000 (as adjusted in accordance with subparagraph (B)).
(B) ADJUSTMENT FOR INFLATION.—
(i) IN GENERAL.—Beginning on October 1, 2008,
and each October 1 thereafter, the amounts specified
in subparagraph (A) shall be adjusted and rounded
down to the nearest $250 increment to reflect changes
for the 12-month period ending the preceding June in
the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor.
(ii) REQUIREMENT.—Each adjustment under clause
(i) shall be based on the unrounded amount for the
prior 12-month period.
(2) INCLUDED ASSETS.—
(A) IN GENERAL.—Subject to the other provisions of
this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow
the regulations in force as of June 1, 1982 (other than
those relating to licensed vehicles and inaccessible resources).
(B) ADDITIONAL INCLUDED ASSETS.—The Secretary
shall include in financial resources—
(i) any boat, snowmobile, or airplane used for recreational purposes;
(ii) any vacation home;
(iii) any mobile home used primarily for vacation
purposes;
(iv) subject to subparagraphs (C) and (D), any licensed vehicle that is used for household transportation or to obtain or continue employment to the extent that the fair market value of the vehicle exceeds
$4,650;
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(v) any savings account, regardless of whether
there is a penalty for early withdrawal.
(C) EXCLUDED VEHICLES.—A vehicle (and any other
property, real or personal, to the extent the property is directly related to the maintenance or use of the vehicle)
shall not be included in financial resources under this
paragraph if the vehicle is—
(i) used to produce earned income;
(ii) necessary for the transportation of a physically
disabled household member; or
(iii) depended on by a household to carry fuel for
heating or water for home use and provides the primary source of fuel or water, respectively, for the
household.
(D) ALTERNATIVE VEHICLE ALLOWANCE.—If the vehicle
allowance standards that a State agency uses to determine
eligibility for assistance under the State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) would result in a lower attribution of
resources to certain households than under subparagraph
(B)(iv), in lieu of applying subparagraph (B)(iv), the State
agency may elect to apply the State vehicle allowance
standards to all households that would incur a lower attribution of resources under the State vehicle allowance
standards.
(3) The Secretary shall exclude from financial resources the
value of a burial plot for each member of a household and nonliquid resources necessary to allow the household to carry out a
plan for self-sufficiency approved by the State agency that constitutes adequate participation in an employment and training program under section 6(d) or a pilot project under section 16(h)(1)(F).
The Secretary shall also exclude from financial resources any
earned income tax credits received by any member of the household
for a period of 12 months from receipt if such member was participating in the supplemental nutrition assistance program at the
time the credits were received and participated in such program
continuously during the 12-month period. 9
(4) In the case of farm property (including land, equipment,
and supplies) that is essential to the self-employment of a household member in a farming operation, the Secretary shall exclude
from financial resources the value of such property until the expiration of the 1-year period beginning on the date such member
ceases to be self-employed in farming.
(5) The Secretary shall promulgate rules by which State agencies shall develop standards for identifying kinds of resources that,
as a practical matter, the household is unlikely to be able to sell
for any significant return because the household’s interest is relatively slight or because the cost of selling the household’s interest
would be relatively great. Resources so identified shall be excluded
as inaccessible resources. A resource shall be so identified if its sale
9 Effective September 1, 1994, section 13913 of the Mickey Leland Childhood Hunger Relief
Act (P.L. 103–66; 107 Stat. 673) amended section 5(g)(3) by adding this sentence. Section 13913
of such Act added the new sentence as a flush left margin sentence, but the amendment was
added as a run-on sentence to effectuate the probable intent of Congress.

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or other disposition is unlikely to produce any significant amount
of funds for the support of the household. The Secretary shall not
require the State agency to require verification of the value of a resource to be excluded under this paragraph unless the State agency
determines that the information provided by the household is questionable.
(6) EXCLUSION OF TYPES OF FINANCIAL RESOURCES NOT
CONSIDERED UNDER CERTAIN OTHER FEDERAL PROGRAMS.—
(A) IN GENERAL.—Subject to subparagraph (B), a State
agency may, at the option of the State agency, exclude
from financial resources under this subsection any types of
financial resources that the State agency does not consider
when determining eligibility for—
(i) cash assistance under a program funded under
part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.); or
(ii) medical assistance under section 1931 of the
Social Security Act (42 U.S.C. 1396u–1).
(B) LIMITATIONS.—Except to the extent that any of the
types of resources specified in clauses (i) through (iv) are
excluded under another paragraph of this subsection, subparagraph (A) does not authorize a State agency to exclude—
(i) cash;
(ii) licensed vehicles;
(iii) amounts in any account in a financial institution that are readily available to the household; or
(iv) any other similar type of resource the inclusion in financial resources of which the Secretary determines by regulation to be essential to equitable determinations of eligibility under the supplemental nutrition assistance program.
(7) EXCLUSION OF RETIREMENT ACCOUNTS FROM ALLOWABLE
FINANCIAL RESOURCES.—
(A) MANDATORY EXCLUSIONS.—The Secretary shall exclude from financial resources under this subsection the
value of—
(i) any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A,
457(b), and 501(c)(18) of the Internal Revenue Code of
1986 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title
5, United States Code; and
(ii) any retirement program or account included in
any successor or similar provision that may be enacted
and determined to be exempt from tax under the Internal Revenue Code of 1986.
(B) DISCRETIONARY EXCLUSIONS.—The Secretary may
exclude from financial resources under this subsection the
value of any other retirement plans, contracts, or accounts
(as determined by the Secretary).
(8) EXCLUSION OF EDUCATION ACCOUNTS FROM ALLOWABLE
FINANCIAL RESOURCES.—
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(A) MANDATORY EXCLUSIONS.—The Secretary shall exclude from financial resources under this subsection the
value of any funds in a qualified tuition program described
in section 529 of the Internal Revenue Code of 1986 or in
a Coverdell education savings account under section 530 of
that Code.
(B) DISCRETIONARY EXCLUSIONS.—The Secretary may
exclude from financial resources under this subsection the
value of any other education programs, contracts, or accounts (as determined by the Secretary).
(h)(1) The Secretary shall, after consultation with the official
empowered to exercise the authority provided for by sections 402
and 502 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), establish temporary emergency standards of eligibility for the duration of the emergency for
households who are victims of a disaster which disrupts commercial channels of food distribution, if such households are in need of
temporary food assistance and if commercial channels of food distribution have again become available to meet the temporary food
needs of such households. Such standards as are prescribed for individual emergencies may be promulgated without regard to section 4(c) of this Act or the procedures set forth in section 553 of
title 5 of the United States Code.
(2) The Secretary shall—
(A) establish a Disaster Task Force to assist States in implementing and operating the disaster program and the regular supplemental nutrition assistance program in the disaster
area; and
(B) if the Secretary, in the Secretary’s discretion, determines that it is cost-effective to send members of the Task
Force to the disaster area, the Secretary shall send them to
such area as soon as possible after the disaster occurs to provide direct assistance to State and local officials.
(3)(A) The Secretary shall provide, by regulation, for emergency allotments to eligible households to replace food destroyed in
a disaster. The regulations shall provide for replacement of the
value of food actually lost up to a limit approved by the Secretary
not greater than the applicable maximum monthly allotment for
the household size.
(B) The Secretary shall adjust issuance methods and reporting
and other application requirements to be consistent with what is
practicable under actual conditions in the affected area. In making
this adjustment, the Secretary shall consider the availability of the
State agency’s offices and personnel, any conditions that make reliance on electronic benefit transfer systems described in section 7(h)
impracticable, and any damage to or disruption of transportation
and communication facilities.
(i)(1) For purposes of determining eligibility for and the
amount of benefits under this Act for an individual who is an alien
as described in section 6(f)(2)(B) of this Act, the income and resources of any person who as a sponsor of such individual’s entry
into the United States executed an affidavit of support or similar
agreement with respect to such individual, and the income and resources of the sponsor’s spouse if such spouse is living with the
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sponsor, shall be deemed to be the income and resources of such
individual for a period of three years after the individual’s entry
into the United States. Any such income deemed to be income of
such individual shall be treated as unearned income of such individual.
(2)(A) The amount of income of a sponsor, and the sponsor’s
spouse if living with the sponsor, which shall be deemed to be the
unearned income of an alien for any year shall be determined as
follows:
(i) the total yearly rate of earned and unearned income of
such sponsor, and such sponsor’s spouse if such spouse is living
with the sponsor, shall be determined for such year under
rules prescribed by the Secretary;
(ii) the amount determined under clause (i) of this subparagraph shall be reduced by an amount equal to the income
eligibility standard as determined under section 5(c) of this Act
for a household equal in size to the sponsor, the sponsor’s
spouse if living with the sponsor, and any persons dependent
upon or receiving support from the sponsor or the sponsor’s
spouse if the spouse is living with the sponsor; and
(iii) the monthly income attributed to such alien shall be
one-twelfth of the amount calculated under clause (ii) of this
subparagraph.
(B) The amount of resources of a sponsor, and the sponsor’s
spouse if living with the sponsor, which shall be deemed to be the
resources of an alien for any year shall be determined as follows:
(i) the total amount of the resources of such sponsor and
such sponsor’s spouse if such spouse is living with the sponsor
shall be determined under rules prescribed by the Secretary;
(ii) the amount determined under clause (i) of this subparagraph shall be reduced by $1,500; and
(iii) the resources determined under clause (ii) of this subparagraph shall be deemed to be resources of such alien in addition to any resources of such alien.
(C)(i) Any individual who is an alien shall, during the period
of three years after entry into the United States, in order to be an
eligible individual or eligible spouse for purposes of this Act, be required to provide to the State agency such information and documentation with respect to the alien’s sponsor and sponsor’s spouse
as may be necessary in order for the State agency to make any determination required under this section, and to obtain any cooperation from such sponsor necessary for any such determination. Such
alien shall also be required to provide such information and documentation which such alien or the sponsor provided in support of
such alien’s immigration application as the State agency may request.
(ii) The Secretary shall enter into agreements with the Secretary of State and the Attorney General whereby any information
available to such persons and required in order to make any determination under this section will be provided by such persons to the
Secretary, and whereby such persons shall inform any sponsor of
an alien, at the time such sponsor executes an affidavit of support
or similar agreement, of the requirements imposed by this section.
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(D) Any sponsor of an alien, and such alien, shall be jointly
and severably liable for an amount equal to any overpayment made
to such alien during the period of three years after such alien’s
entry into the United States, on account of such sponsor’s failure
to provide correct information under the provisions of this section,
except where such sponsor was without fault, or where good cause
for such failure existed. Any such overpayment which is not repaid
shall be recovered in accordance with the provisions of section 13(b)
of this Act.
(E) The provisions of this subsection shall not apply with respect to any alien who is a member of the sponsor’s household or
to any alien who is under 18 years of age.
(j) Notwithstanding subsections (a) through (i), a State agency
shall consider a household member who receives supplemental security income benefits under title XVI of the Social Security Act (42
U.S.C. 1382 et seq.), aid to the aged, blind, or disabled under title
I, II, X, XIV, or XVI of such Act (42 U.S.C. 301 et seq.), or who
receives benefits under a State program funded under part A of
title IV of the Act (42 U.S.C. 601 et seq.) to have satisfied the resource limitations prescribed under subsection (g).
(k)(1) For purposes of subsection (d)(1), except as provided in
paragraph (2), assistance provided to a third party on behalf of a
household by a State or local government shall be considered
money payable directly to the household if the assistance is provided in lieu of—
(A) a regular benefit payable to the household for living expenses under a State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.); or
(B) a benefit payable to the household for housing expenses under—
(i) a State or local general assistance program; or
(ii) another basic assistance program comparable to
general assistance (as determined by the Secretary).
(2) Paragraph (1) shall not apply to—
(A) medical assistance;
(B) child care assistance;
(C) a payment or allowance described in subsection (d)(11);
(D) assistance provided by a State or local housing authority;
(E) emergency assistance for migrant or seasonal farmworker households during the period such households are in
the job stream;
(F) emergency and special assistance, to the extent excluded in regulations prescribed by the Secretary; or
(G) assistance provided to a third party on behalf of a
household under a State or local general assistance program,
or another local basic assistance program comparable to general assistance (as determined by the Secretary), if, under
State law, no assistance under the program may be provided
directly to the household in the form of a cash payment.
(3) For purposes of subsection (d)(1), educational loans on
which payment is deferred, grants, scholarships, fellowships, veterans’ educational benefits, and the like that are provided to a
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third party on behalf of a household for living expenses shall be
treated as money payable directly to the household.
(4) THIRD PARTY ENERGY ASSISTANCE PAYMENTS.—
(A) ENERGY ASSISTANCE PAYMENTS.—For purposes of
subsection (d)(1), a payment made under a State law
(other than a law referred to in paragraph (2)(G)) to provide energy assistance to a household shall be considered
money payable directly to the household.
(B) ENERGY ASSISTANCE EXPENSES.—For purposes of
subsection (e)(6), an expense paid on behalf of a household
under a State law to provide energy assistance shall be
considered an out-of-pocket expense incurred and paid by
the household.
(l) Notwithstanding section 181(a)(2) of the Workforce Investment Act of 1998 ø(29 U.S.C. 2931(a)(2))¿, earnings to individuals
participating in on-the-job training under title I of the Workforce
Investment Act of 1998 ø(29 U.S.C. 2801 et seq.)¿ shall be considered earned income for purposes of the supplemental nutrition assistance program, except for dependents less than 19 years of age.
(m) 12 SIMPLIFIED CALCULATION OF INCOME FOR THE SELF-EMPLOYED.—
(1) IN GENERAL.—Not later than 1 year after the date of
enactment of this subsection øAugust 22, 1996¿, the Secretary
shall establish a procedure by which a State may submit a
method, designed to not increase Federal costs, for the approval of the Secretary, that the Secretary determines will
produce a reasonable estimate of income excluded under subsection (d)(9) in lieu of calculating the actual cost of producing
self-employment income.
(2) INCLUSIVE OF ALL TYPES OF INCOME OR LIMITED TYPES
OF INCOME.—The method submitted by a State under paragraph (1) may allow a State to estimate income for all types
of self-employment income or may be limited to 1 or more
types of self-employment income.
(3) DIFFERENCES FOR DIFFERENT TYPES OF INCOME.—The
method submitted by a State under paragraph (1) may differ
for different types of self-employment income.
(n) STATE OPTIONS TO SIMPLIFY DETERMINATION OF CHILD
SUPPORT PAYMENTS.—Regardless of whether a State agency elects
to provide a deduction under subsection (e)(4), the Secretary shall
establish simplified procedures to allow State agencies, at the option of the State agencies, to determine the amount of any legally
obligated child support payments made, including procedures to
allow the State agency to rely on information from the agency responsible for implementing the program under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.) concerning payments
made in prior months in lieu of obtaining current information from
the households.
12 Effective August 22, 1996, section 812 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104–193) added subsec. (m) (relating to simplified calculation
of income for the self-employed). Effective July 1, 1997, section 109(a)(4) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104–193) struck subsec. (m). The
first subsec. (m) was struck to effectuate the probable intent of Congress.

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ELIGIBILITY DISQUALIFICATIONS

SEC. 6. ø7 U.S.C. 2015¿ (a) In addition to meeting the standards of eligibility prescribed in section 5 of this Act, households and
individuals who are members of eligible households must also meet
and comply with the specific requirements of this section to be eligible for participation in the supplemental nutrition assistance program.
(b)(1) Any person who has been found by any State or Federal
court or administrative agency to have intentionally (A) made a
false or misleading statement, or misrepresented, concealed or
withheld facts, or (B) committed any act that constitutes a violation
of this Act, the regulations issued thereunder, or any State statute,
for the purpose of using, presenting, transferring, acquiring, receiving, or possessing program benefits shall, immediately upon the
rendering of such determination, become ineligible for further participation in the program—
(i) for a period of 1 year upon the first occasion of any such
determination;
(ii) for a period of 2 years upon—
(I) the second occasion of any such determination; or
(II) the first occasion of a finding by a Federal, State,
or local court of the trading of a controlled substance (as
defined in section 102 of the Controlled Substances Act (21
U.S.C. 802)) for benefits; and
(iii) permanently upon—
(I) the third occasion of any such determination;
(II) the second occasion of a finding by a Federal,
State, or local court of the trading of a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)) for benefits;
(III) the first occasion of a finding by a Federal, State,
or local court of the trading of firearms, ammunition, or
explosives for benefits; or
(IV) a conviction of an offense under subsection (b) or
(c) of section 15 involving an item covered by subsection (b)
or (c) of section 15 having a value of $500 or more.
During the period of such ineligibility, no household shall receive
increased benefits under this Act as the result of a member of such
household having been disqualified under this subsection.
(2) Each State agency shall proceed against an individual alleged to have engaged in such activity either by way of administrative hearings, after notice and an opportunity for a hearing at the
State level, or by referring such matters to appropriate authorities
for civil or criminal action in a court of law.
(3) Such periods of ineligibility as are provided for in paragraph (1) of this subsection shall remain in effect, without possibility of administrative stay, unless and until the finding upon
which the ineligibility is based is subsequently reversed by a court
of appropriate jurisdiction, but in no event shall the period of ineligibility be subject to review.
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vidual is forwarded to the Office of the Secretary by any appropriate State or Federal entity for the use of the Secretary in administering the provisions of this section. No State shall withhold such
information from the Secretary or the Secretary’s designee for any
reason whatsoever.
(c) Except in a case in which a household is receiving transitional benefits during the transitional benefits period under section
11(s), no household shall be eligible to participate in the supplemental nutrition assistance program if it refuses to cooperate in
providing information to the State agency that is necessary for
making a determination of its eligibility or for completing any subsequent review of its eligibility.
(1)(A) A State agency may require certain categories of
households to file periodic reports of income and household circumstances in accordance with standards prescribed by the
Secretary, except that a State agency may not require periodic
reporting—
(i) for periods shorter than 4 months by migrant or
seasonal farmworker households;
(ii) for periods shorter than 4 months by households in
which all members are homeless individuals; or
(iii) for periods shorter than 1 year by households that
have no earned income and in which all adult members
are elderly or disabled.
(B) Each household that is not required to file such periodic reports shall be required to report or cause to be reported
to the State agency changes in income or household circumstances that the Secretary considers necessary to assure
accurate eligibility and benefit determinations.
(C) A State agency may require periodic reporting on a
monthly basis by households residing on a reservation only if—
(i) the State agency reinstates benefits, without requiring a new application, for any household residing on a
reservation that submits a report not later than 1 month
after the end of the month in which benefits would otherwise be provided;
(ii) the State agency does not delay, reduce, suspend,
or terminate the allotment of a household that submits a
report not later than 1 month after the end of the month
in which the report is due;
(iii) on the date of enactment of this subparagraph, the
State agency requires households residing on a reservation
to file periodic reports on a monthly basis; and
(iv) the certification period for households residing on
a reservation that are required to file periodic reports on
a monthly basis is 2 years, unless the State demonstrates
just cause to the Secretary for a shorter certification period.
(D) FREQUENCY OF REPORTING.—
(i) IN GENERAL.—Except as provided in subparagraphs (A) and (C), a State agency may require households that report on a periodic basis to submit reports—
(I) not less often than once each 6 months; but
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(II) not more often than once each month.
(ii) REPORTING BY HOUSEHOLDS WITH EXCESS INCOME.—A household required to report less often than
once each 3 months shall, notwithstanding subparagraph (B), report in a manner prescribed by the Secretary if the income of the household for any month
exceeds the income standard of eligibility established
under section 5(c)(2).
(2) Any household required to file a periodic report under
paragraph (1) of this subsection shall, (A) if it is eligible to participate and has filed a timely and complete report, receive its
allotment, based on the reported information for a given
month, within thirty days of the end of that month unless the
Secretary determines that a longer period of time is necessary,
(B) have available special procedures that permit the filing of
the required information in the event all adult members of the
household are mentally or physically handicapped or lacking in
reading or writing skills to such a degree as to be unable to
fill out the required forms, (C) have a reasonable period of time
after the close of the month in which to file their reports on
State agency designed forms, (D) be afforded prompt notice of
failure to file any report timely or completely, and given a reasonable opportunity to cure that failure (with any applicable
time requirements extended accordingly) and to exercise its
rights under section 11(e)(10) of this Act, and (E) be provided
each month (or other applicable period) with an appropriate,
simple form for making the required reports of the household
together with clear instructions explaining how to complete the
form and the rights and responsibilities of the household under
any periodic reporting system.
(3) Reports required to be filed under paragraph (1) of this
subsection shall be considered complete if they contain the information relevant to eligibility and benefit determinations
that is specified by the State agency. All report forms, including those related to periodic reports of circumstances, shall
contain a description, in understandable terms in prominent
and bold face lettering, of the appropriate civil and criminal
provisions dealing with violations of this Act including the prescribed penalties. Reports required to be filed monthly under
paragraph (1) shall be the sole reporting requirement for subject matter included in such reports. In promulgating regulations implementing these reporting requirements, the Secretary shall consult with the Commissioner of Social Security
and the Secretary of Health and Human Services, and, wherever feasible, households that receive assistance under title
IV–A of the Social Security Act ø(42 U.S.C. 601 et seq.)¿and
that are required to file comparable reports under that Act
shall be provided the opportunity to file reports at the same
time for purposes of both Acts.
(4) Except as provided in paragraph (1)(C), any household
that fails to submit periodic reports required by paragraph (1)
shall not receive an allotment for the payment period to which
the unsubmitted report applies until such report is submitted.
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(5) The Secretary is authorized, upon the request of a
State agency, to waive any provisions of this subsection (except
the provisions of the first sentence of paragraph (1) which relate to households which are not required to file periodic reports) to the extent necessary to permit the State agency to establish periodic reporting requirements for purposes of this Act
which are similar to the periodic reporting requirements established under the State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.) in that State.
(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 supplemental nutrition assistance program if the individual—
(i) refuses, at the time of application and every 12
months thereafter, to register for employment in a
manner prescribed by the Secretary;
(ii) refuses without good cause to participate in an
employment and training program established under
paragraph (4), to the extent required by the State
agency;
(iii) refuses without good cause to accept an offer
of employment, at a site or plant not subject to a
strike or lockout at the time of the refusal, at a wage
not less than the higher of—
(I) the applicable Federal or State minimum
wage; or
(II) 80 percent of the wage that would have
governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) been applicable to the
offer of employment;
(iv) refuses without good cause to provide a State
agency with sufficient information to allow the State
agency to determine the employment status or the job
availability of the individual;
(v) voluntarily and without good cause—
(I) quits a job; or
(II) reduces work effort and, after the reduction, the individual is working less than 30 hours
per week; or
(vi) fails to comply with section 20.
(B) HOUSEHOLD INELIGIBILITY.—If an individual who is
the head of a household becomes ineligible to participate
in the supplemental nutrition assistance program under
subparagraph (A), the household shall, at the option of the
State agency, become ineligible to participate in the supplemental nutrition assistance 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.
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(C) DURATION OF INELIGIBILITY.—
(i) FIRST VIOLATION.—The first time that an individual becomes ineligible to participate in the supplemental nutrition assistance 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 supplemental nutrition assistance 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 supplemental nutrition assistance program under subparagraph (A), the individual shall remain ineligible until the later of—
(I) the date the individual becomes eligible
under subparagraph (A);
(II) the date that is 6 months after the date
the individual became ineligible;
(III) a date determined by the State agency;
or
(IV) at the option of the State agency, permanently.
(D) ADMINISTRATION.—
(i) GOOD CAUSE.—The Secretary shall determine
the meaning of good cause for the purpose of this
paragraph.
(ii) VOLUNTARY QUIT.—The Secretary shall determine the meaning of voluntarily quitting and reducing
work effort for the purpose of this paragraph.
(iii) DETERMINATION BY STATE AGENCY.—
(I) IN GENERAL.—Subject to subclause (II) and
clauses (i) and (ii), a State agency shall determine—
(aa) the meaning of any term used in subparagraph (A);
(bb) the procedures for determining
whether an individual is in compliance with a
requirement under subparagraph (A); and
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(cc) whether an individual is in compliance with a requirement under subparagraph
(A).
(II) NOT LESS RESTRICTIVE.—A State agency
may not use a meaning, procedure, or determination under subclause (I) that is less restrictive on
individuals receiving benefits under this Act than
a comparable meaning, procedure, or determination under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.).
(iv) STRIKE AGAINST THE GOVERNMENT.—For the
purpose of subparagraph (A)(v), an employee of the
Federal Government, a State, or a political subdivision
of a State, who is dismissed for participating in a
strike against the Federal Government, the State, or
the political subdivision of the State shall be considered to have voluntarily quit without good cause.
(v) SELECTING A HEAD OF HOUSEHOLD.—
(I) IN GENERAL.—For purposes of this paragraph, the State agency shall allow the household
to select any adult parent of a child in the household as the head of the household if all adult
household members making application under the
supplemental nutrition assistance 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 supplemental nutrition assistance 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
supplemental nutrition assistance program under subparagraph (B)—
(I) the household shall, if otherwise eligible,
become eligible to participate in the supplemental
nutrition assistance 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 supplemental nutrition
assistance program for the remaining period of ineligibility.
(2) A person who otherwise would be required to comply with
the requirements of paragraph (1) of this subsection shall be exempt from such requirements if he or she is (A) currently subject
to and complying with a work registration requirement under title
IV of the Social Security Act, as amended (42 U.S.C. 602), or the
Federal-State unemployment compensation system, in which case,
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failure by such person to comply with any work requirement to
which such person is subject shall be the same as failure to comply
with that requirement of paragraph (1); (B) a parent or other member of a household with responsibility for the care of a dependent
child under age six or of an incapacitated person; (C) a bona fide
student enrolled at least half time in any recognized school, training program, or institution of higher education (except that any
such person enrolled in an institution of higher education shall be
ineligible to participate in the supplemental nutrition assistance
program unless he or she meets the requirements of subsection (e)
of this section); (D) a regular participant in a drug addiction or alcoholic treatment and rehabilitation program; (E) employed a minimum of thirty hours per week or receiving weekly earnings which
equal the minimum hourly rate under the Fair Labor Standards
Act of 1938, as amended (29 U.S.C. 206(a)(1)), multiplied by thirty
hours; or (F) a person between the ages of sixteen and eighteen
who is not a head of a household or who is attending school, or enrolled in an employment training program, on at least a half-time
basis. A State that requested a waiver to lower the age specified
in subparagraph (B) and had the waiver denied by the Secretary
as of August 1, 1996, may, for a period of not more than 3 years,
lower the age of a dependent child that qualifies a parent or other
member of a household for an exemption under subparagraph (B)
to between 1 and 6 years of age.
(3) Notwithstanding any other provision of law, a household
shall not participate in the supplemental nutrition assistance program at any time that any member of such household, not exempt
from the work registration requirements of paragraph (1) of this
subsection, is on strike as defined in section 501(2) of the Labor
Management Relations Act, 1947, ø(29 U.S.C. 142(2))¿because of a
labor dispute (other than a lockout) as defined in section 2(9) of the
National Labor Relations Act ø(29 U.S.C. 152(9))¿: Provided, That
a household shall not lose its eligibility to participate in the supplemental nutrition assistance program as a result of one of its members going on strike if the household was eligible immediately prior
to such strike, however, such household shall not receive an increased allotment as the result of a decrease in the income of the
striking member or members of the household: Provided further,
That such ineligibility shall not apply to any household that does
not contain a member on strike, if any of its members refuses to
accept employment at a plant or site because of a strike or lockout.
(4) EMPLOYMENT AND TRAINING.—
(A) IN GENERAL.—
(i) IMPLEMENTATION.—Each State agency shall implement an employment and training program designed by the State agency and approved by the Secretary for the purpose of assisting members of households participating in the supplemental nutrition assistance program in gaining skills, training, work, or
experience that will increase their ability to obtain
regular employment.
(ii) STATEWIDE WORKFORCE DEVELOPMENT SYSTEM.—Each component of an employment and training
program carried out under this paragraph shall be deFebruary 7, 2014

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livered through a statewide workforce development
system, unless the component is not available locally
through such a system.
(B) For purposes of this Act, an ‘‘employment and training program’’ means a program that contains one or more of the following
components, 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:
(i) Job search programs.
(ii) Job search training programs that include, to the extent determined appropriate by the State agency, reasonable
job search training and support activities that may consist of
jobs skills assessments, job finding clubs, training in techniques for employability, job placement services, or other direct
training or support activities, including educational programs,
determined by the State agency to expand the job search abilities or employability of those subject to the program.
(iii) Workfare programs operated under section 20.
(iv) Programs designed to improve the employability of
household members through actual work experience or training, or both, and to enable individuals employed or trained
under such programs to move promptly into regular public or
private employment. An employment or training experience
program established under this clause shall—
(I) not provide any work that has the effect of replacing the employment of an individual not participating in
the employment or training experience program; and
(II) provide the same benefits and working conditions
that are provided at the job site to employees performing
comparable work for comparable hours.
(v) Educational programs or activities to improve basic
skills and literacy, or otherwise improve employability, including educational programs determined by the State agency to
expand the job search abilities or employability of those subject
to the program under this paragraph.
(vi) Programs designed to increase the self-sufficiency of
recipients through self-employment, including programs that
provide instruction for self-employment ventures.
(vii) Programs intended to ensure job retention by providing job retention services, if the job retention services are
provided for a period of not more than 90 days after an individual who received employment and training services under
this paragraph gains employment.
(viii) As approved by the Secretary or the State under regulations issued by the Secretary, other employment, educational and training programs, projects, and experiments,
such as a supported work program, aimed at accomplishing the
purpose of the employment and training program.
(C) The State agency may provide that participation in an employment and training program may supplement or supplant other
employment-related requirements imposed on those subject to the
program.
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(D)(i) Each State agency may exempt from any requirement for
participation in any program under this paragraph categories of
household members.
(ii) Each State agency may exempt from any requirement for
participation individual household members not included in any
category designated as exempt under clause (i).
(iii) Any exemption of a category or individual under this subparagraph shall be periodically evaluated to determine whether the
exemption continues to be valid.
(E) Each State agency shall establish requirements for participation by individuals not exempt under subparagraph (D) in one or
more employment and training programs under this paragraph, including the extent to which any individual is required to participate. Such requirements may vary among participants.
(F)(i) The total hours of work in an employment and training
program carried out under this paragraph required of members of
a household, together with the hours of work of such members in
any program carried out under section 20, in any month collectively may not exceed a number of hours equal to the household’s
allotment for such month divided by the higher of the applicable
State minimum wage or Federal minimum hourly rate under the
Fair Labor Standards Act of 1938 ø(29 U.S.C. 201 et seq.)¿.
(ii) The total hours of participation in such program required
of any member of a household, individually, in any month, together
with any hours worked in another program carried out under section 20 and any hours worked for compensation (in cash or in kind)
in any other capacity, shall not exceed one hundred and twenty
hours per month.
(iii) Any individual voluntarily electing to participate in a program under this paragraph shall not be subject to the limitations
described in clauses (i) and (ii).
(G) The State agency may operate any program component
under this paragraph in which individuals elect to participate.
(H) Federal funds made available to a State agency for purposes of the component authorized under subparagraph (B)(v) shall
not be used to supplant non-Federal funds used for existing services and activities that promote the purposes of this component.
(I)(i) The State agency shall provide payments or reimbursements to participants in programs carried out under this paragraph, including individuals participating under subparagraph (G),
for—
(I) the actual costs of transportation and other actual costs
(other than dependent care costs), that are reasonably necessary and directly related to participation in the program; and
(II) the actual costs of such dependent care expenses that
are determined by the State agency to be necessary for the
participation of an individual in the program (other than an individual who is the caretaker relative of a dependent in a family receiving benefits under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in a local area where an employment, training, or education program under title IV of such
Act is in operation), except that no such payment or reimbursement shall exceed the applicable local market rate. Individuals
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quired to participate if dependent costs exceed the limit established by the State agency under this subclause or other actual
costs exceed any limit established under subclause (I).
(ii) In lieu of providing reimbursements or payments for dependent care expenses under clause (i), a State agency may, at its
option, arrange for dependent care through providers by the use of
purchase of service contracts or vouchers or by providing vouchers
to the household.
(iii) The value of any dependent care services provided for or
arranged under clause (ii), or any amount received as a payment
or reimbursement under clause (i), shall—
(I) not be treated as income for the purposes of any other
Federal or federally assisted program that bases eligibility for,
or the amount of benefits on, need; and
(II) not be claimed as an employment-related expense for
the purposes of the credit provided under section 21 of the Internal Revenue Code of 1986.
(J) The Secretary shall promulgate guidelines that (i) enable
State agencies, to the maximum extent practicable, to design and
operate an employment and training program that is compatible
and consistent with similar programs operated within the State,
and (ii) ensure, to the maximum extent practicable, that employment and training programs are provided for Indians on reservations.
(K) LIMITATION ON FUNDING.—Notwithstanding any
other provision of this paragraph, the amount of funds a
State agency uses to carry out this paragraph (including
funds used to carry out subparagraph (I)) for participants
who are receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) shall not exceed the amount of funds
the State agency used in fiscal year 1995 to carry out this
paragraph for participants who were receiving benefits in
fiscal year 1995 under a State program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.).
(L) The Secretary shall ensure that State agencies comply with
the requirements of this paragraph and section 11(e)(19).
(M) The facilities of the State public employment offices and
other State agencies and providers carrying out activities under
title I of the Workforce Investment Act of 1998 ø(29 U.S.C. 2801
et seq.)¿ may be used to find employment and training opportunities for household members under the programs under this paragraph.
(e) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any
other household if the individual is enrolled at least half-time in
an institution of higher education, unless the individual—
(1) is under age 18 or is age 50 or older;
(2) is not physically or mentally fit;
(3) is assigned to or placed in an institution of higher education through or in compliance with the requirements of—
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(A) a program under title I of the Workforce Investment Act of 1998 ø(29 U.S.C. 2801 et seq.)¿;
(B) an employment and training program under this
section, subject to the condition that the course or program
of study—
(i) is part of a program of career and technical
education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20
U.S.C. 2302)) that may be completed in not more than
4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002)); or
(ii) is limited to remedial courses, basic adult education, literacy, or English as a second language;
(C) a program under section 236 of the Trade Act of
1974 (19 U.S.C. 2296); or
(D) another program for the purpose of employment
and training operated by a State or local government, as
determined to be appropriate by the Secretary;
(4) is employed a minimum of 20 hours per week or participating in a State or federally financed work study program
during the regular school year;
(5) is—
(A) a parent with responsibility for the care of a dependent child under age 6; or
(B) a parent with responsibility for the care of a dependent child above the age of 5 and under the age of 12
for whom adequate child care is not available to enable the
individual to attend class and satisfy the requirements of
paragraph (4);
(6) is receiving benefits under a State program funded
under part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.);
(7) is so enrolled as a result of participation in the work
incentive program under title IV of the Social Security Act or
its successor programs; or
(8) is enrolled full-time in an institution of higher education, as determined by the institution, and is a single parent
with responsibility for the care of a dependent child under age
12.
(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any
other household unless he or she is (1) a resident of the United
States and (2) either (A) a citizen or (B) an alien lawfully admitted
for permanent residence as an immigrant as defined by sections
101(a)(15) and 101(a)(20) of the Immigration and Nationality Act
(8 U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)), excluding, among
others, alien visitors, tourists, diplomats, and students who enter
the United States temporarily with no intention of abandoning
their residence in a foreign country; or (C) an alien who entered
the United States prior to June 30, 1948, or such subsequent date
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dence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent
residence as a result of an exercise of discretion by the Attorney
General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C. 1259); or (D) an alien who has qualified for conditional entry pursuant to sections 207 and 208 of the Immigration
and Nationality Act (8 U.S.C. 1157 and 1158); or (E) an alien who
is lawfully present in the United States as a result of an exercise
of discretion by the Attorney General for emergent reasons or reasons deemed strictly in the public interest pursuant to section
212(d)(5) of the Immigration and Nationality Act (8 U.S.C.
1182(d)(5)); or (F) an alien within the United States as to whom
the Attorney General has withheld deportation pursuant to section
243 of the Immigration and Nationality Act (8 U.S.C. 1253(h)). No
aliens other than the ones specifically described in clauses (B)
through (F) of this subsection shall be eligible to participate in the
supplemental nutrition assistance program as a member of any
household. The income (less, at State option, a pro rata share) and
financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this
subsection shall be considered in determining the eligibility and
the value of the allotment of the household of which such individual is a member.
(g) No individual who receives supplemental security income
benefits under title XVI of the Social Security Act ø(42 U.S.C. 1381
et seq.)¿, State supplementary payments described in section 1616
of such Act ø(42 U.S.C. 1382e)¿, or payments of the type referred
to in section 212(a) of Public Law 93–66, as amended ø(42 U.S.C.
1382 note)¿, shall be considered to be a member of a household for
any month, if, for such month, such individual resides in a State
which provides State supplementary payments (1) of the type described in section 1616(a) of the Social Security Act ø(42 U.S.C.
1382e(a))¿ and section 212(a) of Public Law 93–66 ø(42 U.S.C. 1382
note)¿, and (2) the level of which has been found by the Commissioner of Social Security to have been specifically increased so as
to include the bonus value of food stamps.
(h) No household that knowingly transfers assets for the purpose of qualifying or attempting to qualify for the supplemental nutrition assistance program shall be eligible to participate in the
program for a period of up to one year from the date of discovery
of the transfer.
(i) COMPARABLE TREATMENT FOR DISQUALIFICATION.—
(1) IN GENERAL.—If a disqualification is imposed on a
member of a household for a failure of the member to perform
an action required under a Federal, State, or local law relating
to a means-tested public assistance program, the State agency
may impose the same disqualification on the member of the
household under the supplemental nutrition assistance program.
(2) RULES AND PROCEDURES.—If a disqualification is imposed under paragraph (1) for a failure of an individual to perform an action required under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), the State agency may use
the rules and procedures that apply under part A of title IV
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of the Act to impose the same disqualification under the supplemental nutrition assistance program.
(3) APPLICATION AFTER DISQUALIFICATION PERIOD.—A member of a household disqualified under paragraph (1) may, after
the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant, except
that a prior disqualification under subsection (d) shall be considered in determining eligibility.
(j) DISQUALIFICATION FOR RECEIPT OF MULTIPLE BENEFITS.—
An individual shall be ineligible to participate in the supplemental
nutrition assistance program as a member of any household for a
10-year period if the individual is found by a State agency to have
made, or is convicted in a Federal or State court of having made,
a fraudulent statement or representation with respect to the identity or place of residence of the individual in order to receive multiple benefits simultaneously under the supplemental nutrition assistance program.
(k) DISQUALIFICATION OF FLEEING FELONS.—
(1) IN GENERAL.—No member of a household who is otherwise eligible to participate in the supplemental nutrition assistance program shall be eligible to participate in the program
as a member of that or any other household during any period
during which the individual is—
(A) fleeing to avoid prosecution, or custody or confinement after conviction, under the law of the place from
which the individual is fleeing, for a crime, or attempt to
commit a crime, that is a felony under the law of the place
from which the individual is fleeing or that, in the case of
New Jersey, is a high misdemeanor under the law of New
Jersey; or
(B) violating a condition of probation or parole imposed under a Federal or State law.
(2) PROCEDURES.—The Secretary shall—
(A) define the terms ‘‘fleeing’’ and ‘‘actively seeking’’
for purposes of this subsection; and
(B) ensure that State agencies use consistent procedures established by the Secretary that disqualify individuals whom law enforcement authorities are actively seeking for the purpose of holding criminal proceedings against
the individual.
(l) CUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT
AGENCIES.—
(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), no natural or adoptive parent or
other individual (collectively referred to in this subsection as
‘‘the individual’’) who is living with and exercising parental
control over a child under the age of 18 who has an absent parent shall be eligible to participate in the supplemental nutrition assistance 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
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(B) in obtaining support for—
(i) the child; or
(ii) the individual and the child.
(2) GOOD CAUSE FOR NONCOOPERATION.—Paragraph (1)
shall not apply to the individual if good cause is found for refusing to cooperate, as determined by the State agency in accordance with standards prescribed by the Secretary in consultation with the Secretary of Health and Human Services.
The standards shall take into consideration circumstances
under which cooperation may be against the best interests of
the child.
(3) FEES.—Paragraph (1) shall not require the payment of
a fee or other cost for services provided under part D of title
IV of the Social Security Act (42 U.S.C. 651 et seq.).
(m) NONCUSTODIAL PARENT’S COOPERATION WITH CHILD SUPPORT AGENCIES.—
(1) IN GENERAL.—At the option of a State agency, subject
to paragraphs (2) and (3), a putative or identified noncustodial
parent of a child under the age of 18 (referred to in this subsection as ‘‘the individual’’) shall not be eligible to participate
in the supplemental nutrition assistance 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.
(n) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
(1) IN GENERAL.—At the option of a State agency, no individual shall be eligible to participate in the supplemental nutrition assistance 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
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(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.
(o) WORK REQUIREMENT.—
(1) DEFINITION OF WORK PROGRAM.—In this subsection, the
term ‘‘work program’’ means—
(A) a program under the title I of the Workforce Investment Act of 1998 ø(29 U.S.C. 2801 et seq.)¿;
(B) a program under section 236 of the Trade Act of
1974 (19 U.S.C. 2296); and
(C) a program of employment and training operated or
supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the
State, including a program under subsection (d)(4), other
than a job search program or a job search training program.
(2) WORK REQUIREMENT.—Subject to the other provisions
of this subsection, no individual shall be eligible to participate
in the supplemental nutrition assistance program as a member
of any household if, during the preceding 36-month period, the
individual received supplemental nutrition assistance program
benefits for not less than 3 months (consecutive or otherwise)
during which the individual did not—
(A) work 20 hours or more per week, averaged monthly;
(B) participate in and comply with the requirements of
a work program for 20 hours or more per week, as determined by the State agency;
(C) participate in and comply with the requirements of
a program under section 20 or a comparable program established by a State or political subdivision of a State; or
(D) receive benefits pursuant to paragraph (3), (4), (5),
or (6).
(3) EXCEPTION.—Paragraph (2) shall not apply to an individual if the individual is—
(A) under 18 or over 50 years of age;
(B) medically certified as physically or mentally unfit
for employment;
(C) a parent or other member of a household with responsibility for a dependent child;
(D) otherwise exempt under subsection (d)(2); or
(E) a pregnant woman.
(4) WAIVER.—
(A) IN GENERAL.—On the request of a State agency,
the Secretary may waive the applicability of paragraph (2)
to any group of individuals in the State if the Secretary
makes a determination that the area in which the individuals reside—
(i) has an unemployment rate of over 10 percent;
or
(ii) does not have a sufficient number of jobs to
provide employment for the individuals.
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(B) REPORT.—The Secretary shall report the basis for
a waiver under subparagraph (A) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(5) SUBSEQUENT ELIGIBILITY.—
(A) REGAINING ELIGIBILITY.—An individual denied eligibility under paragraph (2) shall regain eligibility to participate in the supplemental nutrition assistance program
if, during a 30-day period, the individual—
(i) works 80 or more hours;
(ii) participates in and complies with the requirements of a work program for 80 or more hours, as determined by a State agency; or
(iii) participates in and complies with the requirements of a program under section 20 or a comparable
program established by a State or political subdivision
of a State.
(B) MAINTAINING ELIGIBILITY.—An individual who regains eligibility under subparagraph (A) shall remain eligible as long as the individual meets the requirements of
subparagraph (A), (B), or (C) of paragraph (2).
(C) LOSS OF EMPLOYMENT.—
(i) IN GENERAL.—An individual who regained eligibility under subparagraph (A) and who no longer
meets the requirements of subparagraph (A), (B), or
(C) of paragraph (2) shall remain eligible for a consecutive 3-month period, beginning on the date the individual first notifies the State agency that the individual no longer meets the requirements of subparagraph (A), (B), or (C) of paragraph (2).
(ii) LIMITATION.—An individual shall not receive
any benefits pursuant to clause (i) for more than a single 3-month period in any 36-month period.
(6) 15-PERCENT EXEMPTION.—
(A) DEFINITIONS.—In this paragraph:
(i) CASELOAD.—The term ‘‘caseload’’ means the average monthly number of individuals receiving supplemental nutrition assistance program benefits during
the 12-month period ending the preceding June 30.
(ii) COVERED INDIVIDUAL.—The term ‘‘covered individual’’ means a member of a household that receives
supplemental nutrition assistance program benefits, or
an individual denied eligibility for supplemental nutrition assistance program benefits solely due to paragraph (2), who—
(I) is not eligible for an exception under paragraph (3);
(II) does not reside in an area covered by a
waiver granted under paragraph (4);
(III) is not complying with subparagraph (A),
(B), or (C) of paragraph (2);
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(IV) is not receiving supplemental nutrition
assistance program benefits during the 3 months
of eligibility provided under paragraph (2); and
(V) is not receiving supplemental nutrition assistance program benefits under paragraph (5).
(B) GENERAL RULE.—Subject to subparagraphs (C)
through (G), a State agency may provide an exemption
from the requirements of paragraph (2) for covered individuals.
(C) FISCAL YEAR 1998.—Subject to subparagraphs (E)
and (G), for fiscal year 1998, a State agency may provide
a number of exemptions such that the average monthly
number of the exemptions in effect during the fiscal year
does not exceed 15 percent of the number of covered individuals in the State in fiscal year 1998, as estimated by
the Secretary, based on the survey conducted to carry out
section 16(c) for fiscal year 1996 and such other factors as
the Secretary considers appropriate due to the timing and
limitations of the survey.
(D) SUBSEQUENT FISCAL YEARS.—Subject to subparagraphs (E) through (G), for fiscal year 1999 and each subsequent fiscal year, a State agency may provide a number
of exemptions such that the average monthly number of
the exemptions in effect during the fiscal year does not exceed 15 percent of the number of covered individuals in the
State, as estimated by the Secretary under subparagraph
(C), adjusted by the Secretary to reflect changes in the
State’s caseload and the Secretary’s estimate of changes in
the proportion of members of households that receive supplemental nutrition assistance program benefits covered by
waivers granted under paragraph (4).
(E) CASELOAD ADJUSTMENTS.—The Secretary shall adjust the number of individuals estimated for a State under
subparagraph (C) or (D) during a fiscal year if the number
of members of households that receive supplemental nutrition assistance program benefits in the State varies from
the State’s caseload by more than 10 percent, as determined by the Secretary.
(F) EXEMPTION ADJUSTMENTS.—During fiscal year
1999 and each subsequent fiscal year, the Secretary shall
increase or decrease the number of individuals who may be
granted an exemption by a State agency under this paragraph to the extent that the average monthly number of
exemptions in effect in the State for the preceding fiscal
year under this paragraph is lesser or greater than the average monthly number of exemptions estimated for the
State agency for such preceding fiscal year under this
paragraph.
(G) REPORTING REQUIREMENT.—A State agency shall
submit such reports to the Secretary as the Secretary determines are necessary to ensure compliance with this
paragraph.
(7) OTHER PROGRAM RULES.—Nothing in this subsection
shall make an individual eligible for benefits under this Act if
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the individual is not otherwise eligible for benefits under the
other provisions of this Act.
(p) DISQUALIFICATION FOR OBTAINING CASH BY DESTROYING
FOOD AND COLLECTING DEPOSITS.—Subject to any requirements established by the Secretary, any person who has been found by a
State or Federal court or administrative agency in a hearing under
subsection (b) to have intentionally obtained cash by purchasing
products with supplemental nutrition assistance program benefits
that have containers that require return deposits, discarding the
product, and returning the container for the deposit amount shall
be ineligible for benefits under this Act for such period of time as
the Secretary shall prescribe by regulation.
(q) DISQUALIFICATION FOR SALE OF FOOD PURCHASED WITH
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS.—Subject to any requirements established by the Secretary, any person
who has been found by a State or Federal court or administrative
agency in a hearing under subsection (b) to have intentionally sold
any food that was purchased using supplemental nutrition assistance program benefits shall be ineligible for benefits under this Act
for such period of time as the Secretary shall prescribe by regulation.
(r) DISQUALIFICATION FOR CERTAIN CONVICTED FELONS.—
(1) IN GENERAL.—An individual shall not be eligible for
benefits under this Act if—
(A) the individual is convicted of—
(i) aggravated sexual abuse under section 2241 of
title 18, United States Code;
(ii) murder under section 1111 of title 18, United
States Code;
(iii) an offense under chapter 110 of title 18,
United States Code;
(iv) a Federal or State offense involving sexual assault, as defined in 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C. 13925(a)); or
(v) an offense under State law determined by the
Attorney General to be substantially similar to an offense described in clause (i), (ii), or (iii); and
(B) the individual is not in compliance with the terms
of the sentence of the individual or the restrictions under
subsection (k).
(2) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS.—
The amount of benefits otherwise required to be provided to an
eligible household under this Act shall be determined by considering the individual to whom paragraph (1) applies not to
be a member of the household, except that the income and resources of the individual shall be considered to be income and
resources of the household.
(3) ENFORCEMENT.—Each State shall require each individual applying for benefits under this Act to attest to whether
the individual, or any member of the household of the individual, has been convicted of a crime described in paragraph
(1).
(s) INELIGIBILITY FOR BENEFITS DUE TO RECEIPT OF SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS.—
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(1) IN GENERAL.—Any household in which a member receives substantial lottery or gambling winnings, as determined
by the Secretary, shall lose eligibility for benefits immediately
upon receipt of the winnings.
(2) DURATION OF INELIGIBILITY.—A household described in
paragraph (1) shall remain ineligible for participation until the
household meets the allowable financial resources and income
eligibility requirements under subsections (c), (d), (e), (f), (g),
(i), (k), (l), (m), and (n) of section 5.
(3) AGREEMENTS.—As determined by the Secretary, each
State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or
sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance
program have received substantial lottery or gambling
winnings.
SEC. 7. ø7 U.S.C. 2016¿ ISSUANCE AND USE OF PROGRAM BENEFITS.
(a) IN GENERAL.—Except as provided in subsection (i), EBT

cards shall be issued only to households which have been duly certified as eligible to participate in the supplemental nutrition assistance program.
(b) USE.—Benefits issued to eligible households shall be used
by them only to purchase food from retail food stores which have
been approved for participation in the supplemental nutrition assistance program at prices prevailing in such stores: Provided, That
nothing in this Act shall be construed as authorizing the Secretary
to specify the prices at which food may be sold by wholesale food
concerns or retail food stores.
(c) DESIGN.—
(1) IN GENERAL.—EBT cards issued to eligible households
shall be simple in design and shall include only such words or
illustrations as are required to explain their purpose.
(2) PROHIBITION.—The name of any public official shall not
appear on any EBT card.
(d) The Secretary shall prescribe appropriate procedures for
the delivery of benefits to benefit issuers and for the subsequent
controls to be placed over such benefits by benefit issuers in order
to ensure adequate accountability.
(e) Notwithstanding any other provision of this Act, the State
agency shall be strictly liable to the Secretary for any financial
losses involved in the acceptance, storage and issuance of benefits,
except that in the case of losses resulting from the issuance and replacement of authorizations for benefits which are sent through the
mail, the State agency shall be liable to the Secretary to the extent
prescribed in the regulations promulgated by the Secretary.
(f) ALTERNATIVE BENEFIT DELIVERY.—
(1) IN GENERAL.—If the Secretary determines, in consultation with the Inspector General of the Department of Agriculture, that it would improve the integrity of the supplemental nutrition assistance program, the Secretary shall require a State agency to issue or deliver benefits using alternative methods.
(2) IMPOSITION OF COSTS.—
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(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary shall require participating retail food
stores (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic
benefit transfer point-of-sale equipment and supplies, including related services.
(B) EXEMPTIONS.—The Secretary may exempt from
subparagraph (A)—
(i) farmers’ markets and other direct-to-consumer
markets, military commissaries, nonprofit food buying
cooperatives, and establishments, organizations, programs, or group living arrangements described in
paragraphs (5), (7), and (8) of section 3(k); and
(ii) establishments described in paragraphs (3),
(4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.
(C) INTERCHANGE FEES.—Nothing in this paragraph
permits the charging of fees relating to the redemption of
supplemental nutrition assistance program benefits, in accordance with subsection (h)(13).
(3) DEVALUATION AND TERMINATION OF ISSUANCE OF PAPER
COUPONS.—
(A) COUPON ISSUANCE.—Effective on the date of enactment of the Food, Conservation, and Energy Act of 2008,
no State shall issue any coupon, stamp, certificate, or authorization card to a household that receives supplemental
nutrition assistance under this Act.
(B) EBT CARDS.—Effective beginning on the date that
is 1 year after the date of enactment of the Food, Conservation, and Energy Act of 2008, only an EBT card
issued under subsection (i) shall be eligible for exchange at
any retail food store.
(C) DE-OBLIGATION OF COUPONS.—Coupons not redeemed during the 1-year period beginning on the date of
enactment of the Food, Conservation, and Energy Act of
2008 shall—
(i) no longer be an obligation of the Federal Government; and
(ii) not be redeemable.
(4) TERMINATION OF MANUAL VOUCHERS.—
(A) IN GENERAL.—Effective beginning on the date of
enactment of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a
household that receives supplemental nutrition assistance
under this Act or allow retail food stores to accept manual
vouchers as payment, unless the Secretary determines
that the manual vouchers are necessary, such as in the
event of an electronic benefit transfer system failure or a
disaster situation.
(B) EXEMPTIONS.—The Secretary may exempt categories of retail food stores or individual retail food stores
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from subparagraph (A) based on criteria established by the
Secretary.
(5) UNIQUE IDENTIFICATION NUMBER REQUIRED.—
(A) IN GENERAL.—To enhance the anti-fraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide
for and maintain unique terminal identification number
information through the supplemental nutrition assistance
program electronic benefit transfer transaction routing
system.
(B) REGULATIONS.—
(i) IN GENERAL.—Not earlier than 2 years after the
date of enactment of this paragraph, the Secretary
shall issue proposed regulations to carry out this paragraph.
(ii) COMMERCIAL PRACTICES.—In issuing regulations to carry out this paragraph, the Secretary shall
consider existing commercial practices for other pointof-sale debit transactions.
(g)(1) The State agency may establish a procedure for staggering the issuance of benefits to eligible households throughout
the month. Upon the request of the tribal organization that exercises governmental jurisdiction over the reservation, the State
agency shall stagger the issuance of benefits for eligible households
located on reservations for at least 15 days of a month.
(2) REQUIREMENTS.—
(A) IN GENERAL.—Any procedure established under
paragraph (1) shall—
(i) not reduce the allotment of any household for
any period; and
(ii) ensure that no household experiences an interval between issuances of more than 40 days.
(B) MULTIPLE ISSUANCES.—The procedure may include
issuing benefits to a household in more than 1 issuance
during a month only when a benefit correction is necessary.
(h) ELECTRONIC BENEFIT TRANSFERS.—
(1) IN GENERAL.—
(A) IMPLEMENTATION.—Not later than October 1, 2002,
each State agency shall implement an electronic benefit
transfer system under which household benefits determined under section 8(a) or 26 are issued from and stored
in a central databank, unless the Secretary provides a
waiver for a State agency that faces unusual barriers to
implementing an electronic benefit transfer system.
(B) TIMELY IMPLEMENTATION.—Each State agency is
encouraged to implement an electronic benefit transfer
system under subparagraph (A) as soon as practicable.
(C) STATE FLEXIBILITY.—Subject to paragraph (2), a
State agency may procure and implement an electronic
benefit transfer system under the terms, conditions, and
design that the State agency considers appropriate.
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(D) OPERATION.—An electronic benefit transfer system
should take into account generally accepted standard operating rules based on—
(i) commercial electronic funds transfer technology;
(ii) the need to permit interstate operation and
law enforcement monitoring; and
(iii) the need to permit monitoring and investigations by authorized law enforcement agencies.
(2) The Secretary shall issue final regulations that establish
standards for the approval of such a system. The standards shall
include—
(A) defining the required level of recipient protection regarding privacy, ease of use, and access to and service in retail
food stores;
(B) the terms and conditions of participation by retail food
stores, financial institutions, and other appropriate parties;
(C)(i) measures to maximize the security of a system
using the most recent technology available that the State
agency considers appropriate and cost effective and which
may include personal identification numbers, photographic
identification on electronic benefit transfer cards, and
other measures to protect against fraud and abuse; and
(ii) unless determined by the Secretary to be located in an area with significantly limited access to
food, measures that require an electronic benefit
transfer system—
(I) to set and enforce sales restrictions based
on benefit transfer payment eligibility by using
scanning or product lookup entry; and
(II) to deny benefit tenders for manually entered sales of ineligible items.
(D) system transaction interchange, reliability, and processing speeds;
(E) financial accountability;
(F) the required testing of system operations prior to implementation;
(G) the analysis of the results of system implementation in
a limited project area prior to expansion; and
(H) procurement standards.
(3) In the case of a system described in paragraph (1) in which
participation is not optional for households, the Secretary shall not
approve such a system unless—
(A) a sufficient number of eligible retail food stores, including those stores able to serve minority language populations,
have agreed to participate in the system throughout the area
in which it will operate to ensure that eligible households will
not suffer a significant reduction in their choice of retail food
stores or a significant increase in the cost of food or transportation to participating food stores; and
(B) any special equipment necessary to allow households to
purchase food with the benefits issued under this Act is operational in the case of other participating stores, at a sufficient
number of registers to provide service that is comparable to
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service provided individuals who are not members of households receiving supplemental nutrition assistance program
benefits, as determined by the Secretary.
(4) Administrative costs incurred in connection with activities
under this subsection shall be eligible for reimbursement in accordance with section 16, subject to the limitations in section 16(g).
(5) The Secretary shall periodically inform State agencies of
the advantages of using electronic benefit systems to issue benefits
in accordance with this subsection in lieu of issuing coupons to
households.
(6) This subsection shall not diminish the authority of the Secretary to conduct projects to test automated or electronic benefit
delivery systems under section 17(f).
(7) REPLACEMENT OF BENEFITS.—Regulations issued by the
Secretary regarding the replacement of benefits and liability
for replacement of benefits under an electronic benefit transfer
system shall be similar to the regulations in effect for a paperbased supplemental nutrition assistance issuance system.
(8) REPLACEMENT OF CARDS.—
(A) FEES.—A State agency may collect a charge for replacement of an electronic benefit transfer card by reducing the monthly allotment of the household receiving the
replacement card.
(B) PURPOSEFUL LOSS OF CARDS.—
(i) IN GENERAL.—Subject to terms and conditions
established by the Secretary in accordance with clause
(ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the
household, the Secretary may require a State agency
to decline to issue a replacement card to the household
unless the household, upon request of the State agency, provides an explanation for the loss of the card.
(ii) REQUIREMENTS.—The terms and conditions established by the Secretary shall provide that—
(I) the household be given the opportunity to
provide the requested explanation and meet the
requirements under this paragraph promptly;
(II) after an excessive number of lost cards,
the head of the household shall be required to review program rights and responsibilities with
State agency personnel authorized to make determinations under section 5(a); and
(III) any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until
an explanation described in subclause (I) is provided, shall be consistent with the due process
protections under section 6(b) or 11(e)(10), as appropriate.
(C) PROTECTING VULNERABLE PERSONS.—In implementing this paragraph, a State agency shall act to protect
homeless persons, persons with disabilities, victims of
crimes, and other vulnerable persons who lose electronic
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benefit transfer cards but are not intentionally committing
fraud.
(D) EFFECT ON ELIGIBILITY.—While a State may decline to issue an electronic benefits transfer card until a
household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under
section 5.
(9) OPTIONAL PHOTOGRAPHIC IDENTIFICATION.—
(A) IN GENERAL.—A State agency may require that an
electronic benefit card contain a photograph of 1 or more
members of a household.
(B) OTHER AUTHORIZED USERS.—If a State agency requires a photograph on an electronic benefit card under
subparagraph (A), the State agency shall establish procedures to ensure that any other appropriate member of the
household or any authorized representative of the household may utilize the card.
(10) FEDERAL LAW NOT APPLICABLE.—Section 920 of the
Electronic Fund Transfer Act shall not apply to electronic benefit transfer or reimbursement systems under this Act.
(11) APPLICATION OF ANTI-TYING RESTRICTIONS TO ELECTRONIC BENEFIT TRANSFER SYSTEMS.—
(A) DEFINITIONS.—In this paragraph:
(i) AFFILIATE.—The term ‘‘affiliate’’ has the meaning provided the term in section 2(k) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(k)).
(ii) COMPANY.—The term ‘‘company’’ has the
meaning provided the term in section 106(a) of the
Bank Holding Company Act Amendments of 1970 (12
U.S.C. 1971), but shall not include a bank, a bank
holding company, or any subsidiary of a bank holding
company.
(iii) ELECTRONIC BENEFIT TRANSFER SERVICE.—The
term ‘‘electronic benefit transfer service’’ means the
processing of electronic transfers of household benefits,
determined under section 8(a) or 26, if the benefits
are—
(I) issued from and stored in a central
databank;
(II) electronically accessed by household members at the point of sale; and
(III) provided by a Federal or State government.
(iv) POINT-OF-SALE SERVICE.—The term ‘‘point-ofsale service’’ means any product or service related to
the electronic authorization and processing of payments for merchandise at a retail food store, including
credit or debit card services, automated teller machines, point-of-sale terminals, or access to on-line systems.
(B) RESTRICTIONS.—A company may not sell or provide
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sideration for electronic benefit transfer services, on the
condition or requirement that the customer—
(i) obtain some additional point-of-sale service
from the company or an affiliate of the company; or
(ii) not obtain some additional point-of-sale service
from a competitor of the company or competitor of any
affiliate of the company.
(C) CONSULTATION WITH THE FEDERAL RESERVE
BOARD.—Before promulgating regulations or interpretations of regulations to carry out this paragraph, the Secretary shall consult with the Board of Governors of the
Federal Reserve System.
(12) RECOVERING ELECTRONIC BENEFITS.—
(A) IN GENERAL.—A State agency shall establish a procedure for recovering electronic benefits from the account
of a household due to inactivity.
(B) BENEFIT STORAGE.—A State agency may store recovered electronic benefits off-line in accordance with subparagraph (D), if the household has not accessed the account after 6 months.
(C) BENEFIT EXPUNGING.—A State agency shall expunge benefits that have not been accessed by a household
after a period of 12 months.
(D) NOTICE.—A State agency shall—
(i) send notice to a household the benefits of which
are stored under subparagraph (B); and
(ii) not later than 48 hours after request by the
household, make the stored benefits available to the
household.
(13) INTERCHANGE FEES.—No interchange fees shall apply
to electronic benefit transfer transactions under this subsection.
(14) MOBILE TECHNOLOGIES.—
(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall approve retail food stores to redeem benefits through electronic means other than wired point of
sale devices for electronic benefit transfer transactions, if
the retail food stores—
(i) establish recipient protections regarding privacy, ease of use, access, and support similar to the
protections provided for transactions made in retail
food stores;
(ii) bear the costs of obtaining, installing, and
maintaining mobile technologies, including mechanisms needed to process EBT cards and transaction
fees;
(iii) demonstrate the foods purchased with benefits issued under this section through mobile technologies are purchased at a price not higher than the
price of the same food purchased by other methods
used by the retail food store, as determined by the
Secretary;
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(iv) provide adequate documentation for each authorized transaction, as determined by the Secretary;
and
(v) meet other criteria as established by the Secretary.
(B) DEMONSTRATION PROJECT ON ACCEPTANCE OF BENEFITS OF MOBILE TRANSACTIONS.—
(i) IN GENERAL.—Before authorizing implementation of subparagraph (A) in all States, the Secretary
shall pilot the use of mobile technologies determined
by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores to accept benefits from recipients
of supplemental nutrition assistance through mobile
transactions.
(ii) DEMONSTRATION PROJECTS.—To be eligible to
participate in a demonstration project under clause (i),
a retail food store shall submit to the Secretary for approval a plan that includes—
(I) a description of the technology;
(II) the manner by which the retail food store
will provide proof of the transaction to households;
(III) the provision of data to the Secretary,
consistent with requirements established by the
Secretary, in a manner that allows the Secretary
to evaluate the impact of the demonstration on
participant access, ease of use, and program integrity; and
(IV) such other criteria as the Secretary may
require.
(iii) DATE OF COMPLETION.—The demonstration
projects under this subparagraph shall be completed
and final reports submitted to the Secretary by not
later than July 1, 2016.
(C) REPORT TO CONGRESS.—The Secretary shall—
(i) by not later than January 1, 2017, authorize
implementation of subparagraph (A) in all States, unless the Secretary makes a finding, based on the data
provided under subparagraph (B), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and
(ii) if the determination made in clause (i) is not
to implement subparagraph (A) in all States, submit a
report to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate that includes the
basis of the finding.
(i) STATE OPTION TO ISSUE BENEFITS TO CERTAIN INDIVIDUALS
MADE INELIGIBLE BY WELFARE REFORM.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, a State agency may, with the approval of the Secretary,
issue benefits under this Act to an individual who is ineligible
to participate in the supplemental nutrition assistance program solely as a result of section 6(o)(2) of this Act or section
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402 or 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612 or 1613).
(2) STATE PAYMENTS TO SECRETARY.—
(A) IN GENERAL.—Not later than the date the State
agency issues benefits to individuals under this subsection,
the State agency shall pay the Secretary, in accordance
with procedures established by the Secretary, an amount
that is equal to—
(i) the value of the benefits; and
(ii) the costs of issuing and redeeming benefits,
and other Federal costs, incurred in providing the benefits, as determined by the Secretary.
(B) CREDITING.—Notwithstanding section 3302(b) of
title 31, United States Code, payments received under subparagraph (A) shall be credited to the supplemental nutrition assistance program appropriation account or the account from which the costs were drawn, as appropriate, for
the fiscal year in which the payment is received.
(3) REPORTING.—To be eligible to issue benefits under this
subsection, a State agency shall comply with reporting requirements established by the Secretary to carry out this subsection.
(4) PLAN.—To be eligible to issue benefits under this subsection, a State agency shall—
(A) submit a plan to the Secretary that describes the
conditions and procedures under which the benefits will be
issued, including eligibility standards, benefit levels, and
the methodology the State agency will use to determine
amounts due the Secretary under paragraph (2); and
(B) obtain the approval of the Secretary for the plan.
(5) VIOLATIONS.—A sanction, disqualification, fine, or other
penalty prescribed under Federal law (including sections 12
and 15) shall apply to a violation committed in connection with
a benefit issued under this subsection.
(6) INELIGIBILITY FOR ADMINISTRATIVE REIMBURSEMENT.—
Administrative and other costs incurred in issuing a benefit
under this subsection shall not be eligible for Federal funding
under this Act.
(7) EXCLUSION FROM ENHANCED PAYMENT ACCURACY SYSTEMS.—Section 16(c) shall not apply to benefits issued under
this subsection.
(j) INTEROPERABILITY AND PORTABILITY OF ELECTRONIC BENEFIT TRANSFER TRANSACTIONS.—
(1) DEFINITIONS.—In this subsection:
(A) ELECTRONIC BENEFIT TRANSFER CARD.—The term
‘‘electronic benefit transfer card’’ means a card that provides benefits under this Act through an electronic benefit
transfer service (as defined in subsection (h)(11)(A)). 16
(B) ELECTRONIC BENEFIT TRANSFER CONTRACT.—The
term ‘‘electronic benefit transfer contract’’ means a con16 Sec. 4115(a)(11)(C) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–236; 122
Stat. 1865) amended this subsection ‘‘in subparagraph (A), by striking ‘subsection (i)(11)(A)’ and
inserting ‘‘subsection (h)(11)(A)’ ’’. Amendment executed in paragraph (1)(A) to effectuate the
probable intent of Congress.

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tract that provides for the issuance, use, or redemption of
program benefits in the form of electronic benefit transfer
cards.
(C) INTEROPERABILITY.—The term ‘‘interoperability’’
means a system that enables program benefits in the form
of an electronic benefit transfer card to be redeemed in any
State.
(D) INTERSTATE TRANSACTION.—The term ‘‘interstate
transaction’’ means a transaction that is initiated in 1
State by the use of an electronic benefit transfer card that
is issued in another State.
(E) PORTABILITY.—The term ‘‘portability’’ means a system that enables program benefits in the form of an electronic benefit transfer card to be used in any State by a
household to purchase food at a retail food store or wholesale food concern approved under this Act.
(F) SETTLING.—The term ‘‘settling’’ means movement,
and reporting such movement, of funds from an electronic
benefit transfer card issuer that is located in 1 State to a
retail food store, or wholesale food concern, that is located
in another State, to accomplish an interstate transaction.
(G) SMART CARD.—The term ‘‘smart card’’ means an
intelligent benefit card described in section 17(f).
(H) SWITCHING.—The term ‘‘switching’’ means the
routing of an interstate transaction that consists of transmitting the details of a transaction electronically recorded
through the use of an electronic benefit transfer card in 1
State to the issuer of the card that is in another State.
(2) REQUIREMENT.—Not later than October 1, 2002, the
Secretary shall ensure that systems that provide for the electronic issuance, use, and redemption of program benefits in the
form of electronic benefit transfer cards are interoperable, and
supplemental nutrition assistance program benefits are portable, among all States.
(3) COST.—The cost of achieving the interoperability and
portability required under paragraph (2) shall not be imposed
on any retail store, or any wholesale food concern, approved to
participate in the supplemental nutrition assistance program.
(4) STANDARDS.—Not later than 210 days after the date of
enactment of this subsection, the Secretary shall promulgate
regulations that—
(A) adopt a uniform national standard of interoperability and portability required under paragraph (2) that is
based on the standard of interoperability and portability
used by a majority of State agencies; and
(B) require that any electronic benefit transfer contract that is entered into 30 days or more after the regulations are promulgated, by or on behalf of a State agency,
provide for the interoperability and portability required
under paragraph (2) in accordance with the national
standard.
(5) EXEMPTIONS.—
(A) CONTRACTS.—The requirements of paragraph (2)
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tronic benefit transfer contract before the expiration of the
term of the contract if the contract—
(i) is entered into before the date that is 30 days
after the regulations are promulgated under paragraph (4); and
(ii) expires after October 1, 2002.
(B) WAIVER.—At the request of a State agency, the
Secretary may provide 1 waiver to temporarily exempt, for
a period ending on or before the date specified under
clause (iii), the State agency from complying with the requirements of paragraph (2), if the State agency—
(i) establishes to the satisfaction of the Secretary
that the State agency faces unusual technological barriers to achieving by October 1, 2002, the interoperability and portability required under paragraph (2);
(ii) demonstrates that the best interest of the supplemental nutrition assistance program would be
served by granting the waiver with respect to the electronic benefit transfer system used by the State agency to administer the supplemental nutrition assistance
program; and
(iii) specifies a date by which the State agency will
achieve the interoperability and portability required
under paragraph (2).
(C) SMART CARD SYSTEMS.—The Secretary shall allow
a State agency that is using smart cards for the delivery
of supplemental nutrition assistance program benefits to
comply with the requirements of paragraph (2) at such
time after October 1, 2002, as the Secretary determines
that a practicable technological method is available for
interoperability with electronic benefit transfer cards.
(6) FUNDING.—
(A) IN GENERAL.—In accordance with regulations promulgated by the Secretary, the Secretary shall pay 100
percent of the costs incurred by a State agency under this
Act for switching and settling interstate transactions—
(i) incurred after the date of enactment of this
subsection and before October 1, 2002, if the State
agency uses the standard of interoperability and portability adopted by a majority of State agencies; and
(ii) incurred after September 30, 2002, if the State
agency uses the uniform national standard of interoperability and portability adopted under paragraph
(4)(A).
(B) LIMITATION.—The total amount paid to State agencies for each fiscal year under subparagraph (A) shall not
exceed $500,000.
(k) OPTION TO ACCEPT PROGRAM BENEFITS THROUGH ON-LINE
TRANSACTIONS.—
(1) IN GENERAL.—Subject to paragraph (4), the Secretary
shall approve retail food stores to accept benefits from recipients of supplemental nutrition assistance through on-line
transactions.
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(2) REQUIREMENTS TO ACCEPT BENEFITS.—A retail food
store seeking to accept benefits from recipients of supplemental
nutrition assistance through on-line transactions shall—
(A) establish recipient protections regarding privacy,
ease of use, access, and support similar to the protections
provided for transactions made in retail food stores;
(B) ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges;
(C) clearly notify participating households at the time
a food order is placed—
(i) of any delivery, ordering, convenience, or other
fee or charge associated with the food purchase; and
(ii) that any such fee cannot be paid with benefits
provided under this Act;
(D) ensure the security of on-line transactions by using
the most effective technology available that the Secretary
considers appropriate and cost-effective and that is comparable to the security of transactions at retail food stores;
and
(E) meet other criteria as established by the Secretary.
(3) STATE AGENCY ACTION.—Each State agency shall ensure that recipients of supplemental nutrition assistance can
use benefits on-line as described in this subsection as appropriate.
(4) DEMONSTRATION PROJECT ON ACCEPTANCE OF BENEFITS
THROUGH ON-LINE TRANSACTIONS.—
(A) IN GENERAL.—Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary
shall carry out a number of demonstration projects as determined by the Secretary to test the feasibility of allowing
retail food stores to accept benefits through on-line transactions.
(B) DEMONSTRATION PROJECTS.—To be eligible to participate in a demonstration project under subparagraph
(A), a retail food store shall submit to the Secretary for approval a plan that includes—
(i) a method of ensuring that benefits may be used
to purchase only eligible items under this Act;
(ii) a description of the method of educating participant households about the availability and operation of on-line purchasing;
(iii) adequate testing of the on-line purchasing option prior to implementation;
(iv) the provision of data as requested by the Secretary for purposes of analyzing the impact of the
project on participant access, ease of use, and program
integrity;
(v) reports on progress, challenges, and results, as
determined by the Secretary; and
(vi) such other criteria, including security criteria,
as established by the Secretary.
(C) DATE OF COMPLETION.—The demonstration
projects under this paragraph shall be completed and final
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reports submitted to the Secretary by not later than July
1, 2016.
(5) REPORT TO CONGRESS.—The Secretary shall—
(A) by not later than January 1, 2017, authorize implementation of paragraph (1) in all States, unless the Secretary makes a finding, based on the data provided under
paragraph (4), that implementation in all States is not in
the best interest of the supplemental nutrition assistance
program; and
(B) if the determination made in subparagraph (A) is
not to implement in all States, submit a report to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of
the Senate that includes the basis of the finding.
VALUE OF ALLOTMENT

SEC. 8. ø7 U.S.C. 2017¿ (a) The value of the allotment which
State agencies shall be authorized to issue to any households certified as eligible to participate in the supplemental nutrition assistance program shall be equal to the cost to such households of the
thrifty food plan reduced by an amount equal to 30 per centum of
the household’s income, as determined in accordance with section
5 (d) and (e) of this Act, rounded to the nearest lower whole dollar:
Provided, That for households of one and two persons the minimum
allotment shall be 8 percent of the cost of the thrifty food plan for
a household containing 1 member, as determined by the Secretary
under section 3, rounded to the nearest whole dollar increment.
(b) The value of benefits that may be provided under this Act
shall not be considered income or resources for any purpose under
any Federal, State, or local laws, including, but not limited to, laws
relating to taxation, welfare, and public assistance programs, and
no participating State or political subdivision thereof shall decrease
any assistance otherwise provided an individual or individuals because of the receipt of benefits under this Act.
(c)(1) The value of the allotment issued to any eligible household for the initial month or other initial period for which an allotment is issued shall have a value which bears the same ratio to
the value of the allotment for a full month or other initial period
for which the allotment is issued as the number of days (from the
date of application) remaining in the month or other initial period
for which the allotment is issued bears to the total number of days
in the month or other initial period for which the allotment is
issued, except that no allotment may be issued to a household for
the initial month or period if the value of the allotment which such
household would otherwise be eligible to receive under this subsection is less than $10. Households shall receive full months’ allotments for all months within a certification period, except as provided in the first sentence of this paragraph with respect to an initial month.
(2) As used in this subsection, the term ‘‘initial month’’ means
(A) the first month for which an allotment is issued to a household,
(B) the first month for which an allotment is issued to a household
following any period in which such household was not participating
in the supplemental nutrition assistance program under this Act
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after the expiration of a certification period or after the termination
of the certification of a household, during a certification period,
when the household ceased to be eligible after notice and an opportunity for a hearing under section 11(e)(10), and (C) in the case of
a migrant or seasonal farmworker household, the first month for
which allotment is issued to a household that applies following any
period of more than 30 days in which such household was not participating in the supplemental nutrition assistance program after
previous participation in such program.
(3) OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.—A State agency may provide to an eligible
household applying after the 15th day of a month, in lieu of
the initial allotment of the household and the regular allotment of the household for the following month, an allotment
that is equal to the total amount of the initial allotment and
the first regular allotment. The allotment shall be provided in
accordance with section 11(e)(3) in the case of a household that
is not entitled to expedited service and in accordance with
paragraphs (3) and (9) of section 11(e) in the case of a household that is entitled to expedited service.
(d) REDUCTION OF PUBLIC ASSISTANCE BENEFITS.—
(1) IN GENERAL.—If the benefits of a household are reduced
under a Federal, State, or local law relating to a means-tested
public assistance program for the failure of a member of the
household to perform an action required under the law or program, for the duration of the reduction—
(A) the household may not receive an increased allotment as the result of a decrease in the income of the
household to the extent that the decrease is the result of
the reduction; and
(B) the State agency may reduce the allotment of the
household by not more than 25 percent.
(2) RULES AND PROCEDURES.—If the allotment of a household is reduced under this subsection for a failure to perform
an action required under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the State agency may use the
rules and procedures that apply under part A of title IV of the
Act to reduce the allotment under the supplemental nutrition
assistance program.
(e) ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.—
(1) IN GENERAL.—In the case of an individual who resides
in a center for the purpose of a drug or alcoholic treatment program described in section 3(n)(5), a State agency may provide
an allotment for the individual to—
(A) the center as an authorized representative of the
individual for a period that is less than 1 month; and
(B) the individual, if the individual leaves the center.
(2) DIRECT PAYMENT.—A State agency may require an individual referred to in paragraph (1) to designate the center in
which the individual resides as the authorized representative
of the individual for the purpose of receiving an allotment.
(f) ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN
GROUP FACILITIES.—
(1) IN GENERAL.—
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(A) APPLICABILITY.—
(i) IN GENERAL.—Subject to clause (ii), at the option of the State agency, allotments for residents of
any facility described in subparagraph (B), (C), (D), or
(E) of section 3(n)(5) (referred to in this subsection as
a ‘‘covered facility’’) may be determined and issued
under this paragraph in lieu of subsection (a).
(ii) LIMITATION.—Unless the Secretary authorizes
implementation of this paragraph in all States under
paragraph (3), clause (i) shall apply only to residents
of covered facilities participating in a pilot project
under paragraph (2).
(B) AMOUNT OF ALLOTMENT.—The allotment for each
eligible resident described in subparagraph (A) shall be
calculated in accordance with standardized procedures established by the Secretary that take into account the allotments typically received by residents of covered facilities.
(C) ISSUANCE OF ALLOTMENT.—
(i) IN GENERAL.—The State agency shall issue an
allotment determined under this paragraph to a covered facility as the authorized representative of the
residents of the covered facility.
(ii) ADJUSTMENT.—The Secretary shall establish
procedures to ensure that a covered facility does not
receive a greater proportion of a resident’s monthly allotment than the proportion of the month during
which the resident lived in the covered facility.
(D) DEPARTURES OF RESIDENTS OF COVERED FACILITIES.—
(i) NOTIFICATION.—Any covered facility that receives an allotment for a resident under this paragraph shall—
(I) notify the State agency promptly on the departure of the resident; and
(II) notify the resident, before the departure
of the resident, that the resident—
(aa) is eligible for continued benefits
under the supplemental nutrition assistance
program; and
(bb) should contact the State agency concerning continuation of the benefits.
(ii) ISSUANCE TO DEPARTED RESIDENTS.—On receiving a notification under clause (i)(I) concerning the departure of a resident, the State agency—
(I) shall promptly issue the departed resident
an allotment for the days of the month after the
departure of the resident (calculated in a manner
prescribed by the Secretary) unless the departed
resident reapplies to participate in the supplemental nutrition assistance program; and
(II) may issue an allotment for the month following the month of the departure (but not any
subsequent month) based on this paragraph unFebruary 7, 2014

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less the departed resident reapplies to participate
in the supplemental nutrition assistance program.
(iii) STATE OPTION.—The State agency may elect
not to issue an allotment under clause (ii)(I) if the
State agency lacks sufficient information on the location of the departed resident to provide the allotment.
(iv) EFFECT OF REAPPLICATION.—If the departed
resident reapplies to participate in the supplemental
nutrition assistance program, the allotment of the departed resident shall be determined without regard to
this paragraph.
(2) PILOT PROJECTS.—
(A) IN GENERAL.—Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary
shall carry out, at the request of 1 or more State agencies
and in 1 or more areas of the United States, such number
of pilot projects as the Secretary determines to be sufficient to test the feasibility of determining and issuing allotments to residents of covered facilities under paragraph
(1) in lieu of subsection (a).
(B) PROJECT PLAN.—To be eligible to participate in a
pilot project under subparagraph (A), a State agency shall
submit to the Secretary for approval a project plan that includes—
(i) a specification of the covered facilities in the
State that will participate in the pilot project;
(ii) a schedule for reports to be submitted to the
Secretary on the pilot project;
(iii) procedures for standardizing allotment
amounts that takes into account the allotments typically received by residents of covered facilities; and
(iv) a commitment to carry out the pilot project in
compliance with the requirements of this subsection
other than paragraph (1)(B).
(3) AUTHORIZATION OF IMPLEMENTATION IN ALL STATES.—
(A) IN GENERAL.—The Secretary shall—
(i) determine whether to authorize implementation of paragraph (1) in all States; and
(ii) notify the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the
determination.
(B) DETERMINATION NOT TO AUTHORIZE IMPLEMENTATION IN ALL STATES.—
(i) IN GENERAL.—If the Secretary makes a finding
described in clause (ii), the Secretary—
(I) shall not authorize implementation of
paragraph (1) in all States; and
(II) shall terminate all pilot projects under
paragraph (2) within a reasonable period of time
(as determined by the Secretary).
(ii) FINDING.—The finding referred to in clause (i)
is that—
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(I) an insufficient number of project plans
that the Secretary determines to be eligible for approval are submitted by State agencies under
paragraph (2)(B); or
(II)(aa) a sufficient number of pilot projects
have been carried out under paragraph (2)(A); and
(bb) authorization of implementation of paragraph (1) in all States is not in the best interest
of the supplemental nutrition assistance program.
APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS

SEC. 9. ø7 U.S.C. 2018¿ (a)(1) Regulations issued pursuant to
this Act shall provide for the submission of applications for approval by retail food stores and wholesale food concerns which desire to be authorized to accept and redeem benefits under the supplemental nutrition assistance program and for the approval of
those applicants whose participation will effectuate the purposes of
the supplemental nutrition assistance program. In determining the
qualifications of applicants, there shall be considered among such
other factors as may be appropriate, the following: (A) the nature
and extent of the food business conducted by the applicant; (B) the
volume of benefit transactions which may reasonably be expected
to be conducted by the applicant food store or wholesale food concern; (C) whether the applicant is located in an area with significantly limited access to food; and (D) the business integrity and
reputation of the applicant. Approval of an applicant shall be evidenced by the issuance to such applicant of a nontransferable certificate of approval. No retail food store or wholesale food concern
of a type determined by the Secretary, based on factors that include size, location, and type of items sold, shall be approved to be
authorized or reauthorized for participation in the supplemental
nutrition assistance program unless an authorized employee of the
Department of Agriculture, a designee of the Secretary, or, if practicable, an official of the State or local government designated by
the Secretary has visited the store or concern for the purpose of determining whether the store or concern should be approved or reauthorized, as appropriate.
(2) The Secretary shall issue regulations providing for—
(A) the periodic reauthorization of retail food stores and
wholesale food concerns; and
(B) periodic notice to participating retail food stores and
wholesale food concerns of the definitions of ‘‘retail food store’’,
‘‘staple foods’’, ‘‘eligible foods’’, and ‘‘perishable foods’’.
(3) AUTHORIZATION PERIODS.—The Secretary shall establish
specific time periods during which authorization to accept and redeem benefits shall be valid under the supplemental nutrition assistance program.
(b)(1) No wholesale food concern may be authorized to accept
and redeem benefits unless the Secretary determines that its participation is required for the effective and efficient operation of the
supplemental nutrition assistance program. No co-located wholesale-retail food concern may be authorized to accept and redeem
benefits as a retail food store, unless (A) the concern does a substantial level of retail food business, or (B) the Secretary deterFebruary 7, 2014

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mines that failure to authorize such a food concern as a retail food
store would cause hardship to households that receive supplemental nutrition assistance program benefits. In addition, no firm
may be authorized to accept and redeem benefits as both a retail
food store and as a wholesale food concern at the same time.
(2)(A) A buyer or transferee (other than a bona fide buyer or
transferee) of a retail food store or wholesale food concern that has
been disqualified under section 12(a) may not accept or redeem
benefits until the Secretary receives full payment of any penalty
imposed on such store or concern.
(B) A buyer or transferee may not, as a result of the sale or
transfer of such store or concern, be required to furnish a bond
under section 12(d).
(c) Regulations issued pursuant to this Act shall require an applicant retail food store or wholesale food concern to submit information, which may include relevant income and sales tax filing
documents, purchase invoices, or program-related records, which
will permit a determination to be made as to whether such applicant qualifies, or continues to qualify, for approval under the provisions of this Act or the regulations issued pursuant to this Act. The
regulations may require retail food stores and wholesale food concerns to provide written authorization for the Secretary to verify all
relevant tax filings with appropriate agencies and to obtain corroborating documentation from other sources so that the accuracy
of information provided by the stores and concerns may be verified.
Regulations issued pursuant to this Act shall provide for safeguards which limit the use or disclosure of information obtained
under the authority granted by this subsection to purposes directly
connected with administration and enforcement of the provisions of
this Act or the regulations issued pursuant to this Act, except that
such information may be disclosed to any used by Federal law enforcement and investigative agencies and law enforcement and investigative agencies of a State government for the purposes of administering or enforcing this Act or any other Federal or State law
and the regulations issued under this Act or such law, and State
agencies that administer the special supplemental nutrition program for women, infants and children, authorized under section 17
of the Child Nutrition Act of 1966, for purposes of administering
the provisions of that Act and the regulations issued under that
Act. Any person who publishes, divulges, discloses, or makes
known in any manner or to any extent not authorized by Federal
law (including a regulation) any information obtained under this
subsection shall be fined not more than $1,000 or imprisoned not
more than 1 year, or both. The regulations shall establish the criteria to be used by the Secretary to determine whether the information is needed. The regulations shall not prohibit the audit and
examination of such information by the Comptroller General of the
United States authorized by any other provision of law.
(d) Any retail food store or wholesale food concern which has
failed upon application to receive approval to participate in the
supplemental nutrition assistance program may obtain a hearing
on such refusal as provided in section 14 of this Act. A retail food
store or wholesale food concern that is denied approval to accept
and redeem benefits because the store or concern does not meet criFebruary 7, 2014

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teria for approval established by the Secretary may not, for at least
6 months, submit a new application to participate in the program.
The Secretary may establish a longer time period under the preceding sentence, including permanent disqualification, that reflects
the severity of the basis of the denial.
(e) Approved retail food stores shall display a sign providing
information on how persons may report abuses they have observed
in the operation of the supplemental nutrition assistance program.
(f) In those areas in which the Secretary, in consultation with
the Inspector General of the Department of Agriculture, finds evidence that the operation of house-to-house trade routes damages
the program’s integrity, the Secretary shall limit the participation
of house-to-house trade routes to those routes that are reasonably
necessary to provide adequate access to households.
(g) EBT SERVICE REQUIREMENT.—An approved retail food store
shall provide adequate EBT service as described in section
7(h)(3)(B).
(h) PRIVATE ESTABLISHMENTS.—
(1) IN GENERAL.—Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals
at concessional prices as described in paragraphs (3), (4), and
(9) of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of
the private establishment is required to meet a documented
need in accordance with section 11(e)(25).
(2) EXISTING CONTRACTS.—
(A) IN GENERAL.—If, on the day before the date of enactment of this subsection, a State has entered into a contract with a private establishment described in paragraph
(1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a
documented need in accordance with section 11(e)(25), the
Secretary shall allow the operation of the private establishment to continue without that determination of need
for a period not to exceed 180 days from the date on which
the Secretary establishes determination criteria, by regulation, under section 11(e)(25).
(B) JUSTIFICATION.—If the Secretary determines to terminate a contract with a private establishment that is in
effect on the date of enactment of this subsection, the Secretary shall provide justification to the State in which the
private establishment is located for that termination.
(3) REPORT TO CONGRESS.—Not later than 90 days after
September 30, 2014, and 90 days after the last day of each fiscal year thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the effectiveness of a program under this subsection using any information received from States under section 11(e)(25) as well as any other information the Secretary
may have relating to the manner in which benefits are used.
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SEC. 10. ø7 U.S.C. 2019¿ REDEMPTION OF PROGRAM BENEFITS.

Regulations issued pursuant to this Act shall provide for the
redemption of benefits accepted by retail food stores through approved wholesale food concerns or through financial institutions
which are insured by the Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation, 18 or which
are insured under the Federal Credit Union Act and have retail
food stores or wholesale food concerns in their field of membership,
with the cooperation of the Treasury Department, except that retail
food stores defined in section 3(p)(4) shall be authorized to redeem
their members’ food benefits prior to receipt by the members of the
food so purchased, retail food stores authorized to accept and redeem benefits through on-line transactions shall be authorized to
accept benefits prior to the delivery of food if the delivery occurs
within a reasonable time of the purchase, as determined by the
Secretary, and publicly operated community mental health centers
or private nonprofit organizations or institutions which serve meals
to narcotics addicts or alcoholics in drug addiction or alcoholic
treatment and rehabilitation programs, public and private nonprofit shelters that prepare and serve meals for battered women
and children, and public or private nonprofit group living arrangements that serve meals to disabled or blind residents shall not be
authorized to redeem benefits through financial institutions which
are insured by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation or the Federal
Credit Union Act. Notwithstanding the preceding sentence, a center, organization, institution, shelter, group living arrangement, or
establishment described in that sentence may be authorized to redeem benefits through a financial institution described in that sentence if the center, organization, institution, shelter, group living
arrangement, or establishment is equipped with 1 or more pointof-sale devices and is operating in an area in which an electronic
benefit transfer system described in section 7(h) has been implemented. No financial institution may impose on or collect from a
retail food store a fee or other charge for the redemption of benefits
that are submitted to the financial institution in a manner consistent with the requirements, other than any requirements relating to cancellation of benefits, for the presentation of coupons by
financial institutions to the Federal Reserve banks.
SEC. 11. ø7 U.S.C. 2020¿ ADMINISTRATION.
(a) STATE RESPONSIBILITY.—
(1) IN GENERAL.—The State agency

of each participating
State shall have responsibility for certifying applicant households and issuing EBT cards.
(2) LOCAL ADMINISTRATION.—The responsibility of the
agency of the State government shall not be affected by whether the program is operated on a State-administered or countyadministered basis, as provided under section 3(t)(1).
(3) RECORDS.—
(A) IN GENERAL.—Each State agency shall keep such
records as may be necessary to determine whether the pro-

18 The Federal Savings and Loan Insurance Corporation was abolished by section 401(a)(1) of
P.L. 101–73, 103 Stat. 354, August 9, 1989.

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gram is being conducted in compliance with this Act (including regulations issued under this Act).
(B) INSPECTION AND AUDIT.—Records described in subparagraph (A) shall—
(i) be available for inspection and audit at any
reasonable time;
(ii) subject to subsection (e)(8), be available for review in any action filed by a household to enforce any
provision of this Act (including regulations issued
under this Act); and
(iii) be preserved for such period of not less than
3 years as may be specified in regulations.
(4) REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.—
(A) IN GENERAL.—The Secretary shall develop standards for identifying major changes in the operations of a
State agency, including—
(i) large or substantially-increased numbers of
low-income households that do not live in reasonable
proximity to an office performing the major functions
described in subsection (e);
(ii) substantial increases in reliance on automated
systems for the performance of responsibilities previously performed by personnel described in subsection
(e)(6)(B);
(iii) changes that potentially increase the difficulty
of reporting information under subsection (e) or section 6(c); and
(iv) changes that may disproportionately increase
the burdens on any of the types of households described in subsection (e)(2)(A).
(B) NOTIFICATION.—If a State agency implements a
major change in operations, the State agency shall—
(i) notify the Secretary; and
(ii) collect such information as the Secretary shall
require to identify and correct any adverse effects on
program integrity or access, including access by any of
the types of households described in subsection
(e)(2)(A).
(b) When a State agency learns, through its own reviews under
section 16 or other reviews, or through other sources, that it has
improperly denied, terminated, or underissued benefits to an eligible household, the State agency shall promptly restore any improperly denied benefits to the extent required by sections 11(e)(11) and
14(b), and shall take other steps to prevent a recurrence of such
errors where such error was caused by the application of State
agency practices, rules or procedures inconsistent with the requirements of this Act or with regulations or policies of the Secretary
issued under the authority of this Act.
(c) CIVIL RIGHTS COMPLIANCE.—
(1) IN GENERAL.—In the certification of applicant households for the supplemental nutrition assistance program, there
shall be no discrimination by reason of race, sex, religious
creed, national origin, or political affiliation.
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(2) RELATION TO OTHER LAWS.—The administration of the
program by a State agency shall be consistent with the rights
of households under the following laws (including implementing regulations):
(A) The Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.).
(B) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
(C) The Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
(d) The State agency (as defined in section 3(t)(1)) of each State
desiring to participate in the supplemental nutrition assistance
program shall submit for approval a plan of operation specifying
the manner in which such program will be conducted within the
State in every political subdivision. The Secretary may not, as a
part of the approval process for a plan of operation, require a State
to submit for prior approval by the Secretary the State agency instructions to staff, interpretations of existing policy, State agency
methods of administration, forms used by the State agency, or any
materials, documents, memoranda, bulletins, or other matter, unless the State determines that the materials, documents, memoranda, bulletins, or other matter alter or amend the State plan of
operation or conflict with the rights and levels of benefits to which
a household is entitled. In the case of all or part of an Indian reservation, the State agency as defined in section 3(t)(1) shall be responsible for conducting such program on such reservation unless
the Secretary determines that the State agency (as defined in section 3(t)(1)) is failing, subsequent to the enactment of this Act
øAmendatory Act enacted on September 29, 1977.¿, properly to administer such program on such reservation in accordance with the
purposes of this Act and further determines that the State agency
as defined in section 3(t)(2) is capable of effectively and efficiently
conducting such program, in light of the distance of the reservation
from State agency-operated certification and issuance centers, the
previous experience of such tribal organization in the operation of
programs authorized under the Indian Self-Determination Act (25
U.S.C. 450) and similar Acts of Congress, the tribal organization’s
management and fiscal capabilities, and the adequacy of measures
taken by the tribal organization to ensure that there shall be no
discrimination in the operation of the program on the basis of race,
color, sex, or national origin, in which event such State agency
shall be responsible for conducting such program and submitting
for approval a plan of operation specifying the manner in which
such program will be conducted. The Secretary, upon the request
of a tribal organization, shall provide the designees of such organization with appropriate training and technical assistance to enable
them to qualify as expeditiously as possible as a State agency pursuant to section 3(t)(2). A State agency, as defined in section
3(t)(1), before it submits its plan of operation to the Secretary for
the administration of the supplemental nutrition assistance program on all or part of an Indian reservation, shall consult in good
faith with the tribal organization about that portion of the State’s
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plan of operation pertaining to the implementation of the program
for members of the tribe, and shall implement the program in a
manner that is responsive to the needs of the Indians on the reservation as determined by ongoing consultation with the tribal organization.
(e) The State plan of operation required under subsection (d)
of this section shall provide, among such other provisions as may
be required by regulation—
(1) that the State agency shall—
(A) at the option of the State agency, inform low-income households about the availability, eligibility requirements, application procedures, and benefits of the supplemental nutrition assistance program; and
(B) comply with regulations of the Secretary requiring
the use of appropriate bilingual personnel and printed material in the administration of the program in those portions of political subdivisions in the State in which a substantial number of members of low-income households
speak a language other than English;
(2)(A) that the State agency shall establish procedures governing the operation of supplemental nutrition assistance program offices that the State agency determines best serve
households in the State, including households with special
needs, such as households with elderly or disabled members,
households in rural areas with low-income members, homeless
individuals, households residing on reservations, and households in areas in which a substantial number of members of
low-income households speak a language other than English.
(B) In carrying out subparagraph (A), a State agency—
(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the supplemental nutrition assistance program;
(ii)(I) shall develop an application containing the information necessary to comply with this Act; and
(II) if the State agency maintains a website for the
State agency, shall make the application available on the
website in each language in which the State agency makes
a printed application available;
(iii) shall permit an applicant household to apply to
participate in the program on the same day that the
household first contacts a supplemental nutrition assistance program office in person during office hours;
(iv) shall consider an application that contains the
name, address, and signature of the applicant to be filed
on the date the applicant submits the application;
(v) shall require that an adult representative of each
applicant household certify in writing, under penalty of
perjury, that—
(I) the information contained in the application is
true; and
(II) all members of the household are citizens or
are aliens eligible to receive supplemental nutrition
assistance program benefits under section 6(f);
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(vi) shall provide a method of certifying and issuing
benefits to eligible homeless individuals, to ensure that
participation in the supplemental nutrition assistance program is limited to eligible households; and
(vii) may establish operating procedures that vary for
local supplemental nutrition assistance program offices to
reflect regional and local differences within the State.
(C) 19 ELECTRONIC AND AUTOMATED SYSTEMS.—
(i) IN GENERAL.—Nothing in this Act shall prohibit
the use of signatures provided and maintained electronically, storage of records using automated retrieval
systems only, or any other feature of a State agency’s
application system that does not rely exclusively on
the collection and retention of paper applications or
other records.
(ii) STATE OPTION FOR TELEPHONIC SIGNATURE.—A
State agency may establish a system by which an applicant household may sign an application through a
recorded verbal assent over the telephone.
(iii) REQUIREMENTS.—A system established under
clause (ii) shall—
(I) record for future reference the verbal assent of the household member and the information
to which assent was given;
(II) include effective safeguards against impersonation, identity theft, and invasions of privacy;
(III) not deny or interfere with the right of the
household to apply in writing;
(IV) promptly provide to the household member a written copy of the completed application,
with instructions for a simple procedure for correcting any errors or omissions;
(V) comply with paragraph (1)(B);
(VI) satisfy all requirements for a signature
on an application under this Act and other laws
applicable to the supplemental nutrition assistance program, with the date on which the household member provides verbal assent considered as
the date of application for all purposes; and
(VII) comply with such other standards as the
Secretary may establish.
(D) The signature of any adult under this paragraph shall
be considered sufficient to comply with any provision of Federal law requiring a household member to sign an application
or statement;
(3) that the State agency shall thereafter promptly determine the eligibility of each applicant household by way of
verification of income other than that determined to be excluded by section 5(d) of this Act (in part through the use of
the information, if any, obtained under section 16(e) of this Act
19 Indentation so as in original (see sec. 4119(1) of the Food, Conservation, and Energy Act
of 2008 (P.L. 110–246; 122 Stat. 1873)).

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and after compliance with the requirement specified in paragraph (24)), household size (in any case such size is questionable), and such other eligibility factors as the Secretary determines to be necessary to implement sections 5 and 6 of this
Act, although the State agency may verify prior to certification,
whether questionable or not, the size of any applicant household and such other eligibility factors as the State agency determines are necessary, so as to complete certification of and
provide an allotment retroactive to the period of application to
any eligible household not later than thirty days following its
filing of an application, and that the State agency shall provide
each applicant household, at the time of application, a clear
written statement explaining what acts the household must
perform to cooperate in obtaining verification and otherwise
completing the application process;
(4) that the State agency shall insure that each participating household receive a notice of expiration of its certification prior to the start of the last month of its certification period advising the household that it must submit a new application in order to renew its eligibility for a new certification period and, further, that each such household which seeks to be
certified another time or more times thereafter by filing an application for such recertification no later than fifteen days prior
to the day upon which its existing certification period expires
shall, if found to be still eligible, receive its allotment no later
than one month after the receipt of the last allotment issued
to it pursuant to its prior certification, but if such household
is found to be ineligible or to be eligible for a smaller allotment
during the new certification period it shall not continue to participate and receive benefits on the basis authorized for the
preceding certification period even if it makes a timely request
for a fair hearing pursuant to paragraph (10) of this subsection: Provided, That the timeliness standards for submitting
the notice of expiration and filing an application for recertification may be modified by the Secretary in light of sections
5(f)(2) and 6(c) of this Act if administratively necessary;
(5) the specific standards to be used in determining the eligibility of applicant households which shall be in accordance
with sections 5 and 6 of this Act and shall include no additional requirements imposed by the State agency;
(6) that—
(A) the State agency shall undertake the certification
of applicant households in accordance with the general
procedures prescribed by the Secretary in the regulations
issued pursuant to this Act; and
(B) the State agency personnel utilized in undertaking
such certification shall be employed in accordance with the
current standards for a Merit System of Personnel Administration or any standards later prescribed by the Office of
Personnel Management pursuant to section 208 of the
Intergovernmental Personnel Act of 1970 ø(42 U.S.C.
4728)¿ modifying or superseding such standards relating
to the establishment and maintenance of personnel standards on a merit basis;
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(7) that an applicant household may be represented in the
certification process and that an eligible household may be represented in benefit issuance or food purchase by a person other
than a member of the household so long as that person has
been clearly designated as the representative of that household
for that purpose, by the head of the household or the spouse
of the head, and, where the certification process is concerned,
the representative is an adult who is sufficiently aware of relevant household circumstances, except that the Secretary may
restrict the number of households which may be represented
by an individual and otherwise establish criteria and
verification standards for representation under this paragraph;
(8) safeguards which prohibit the use or disclosure of information obtained from applicant households, except that—
(A) the safeguards shall permit—
(i) the disclosure of such information to persons
directly connected with the administration or enforcement of the provisions of this Act, regulations issued
pursuant to this Act, Federal assistance programs, or
federally-assisted State programs; and
(ii) the subsequent use of the information by persons described in clause (i) only for such administration or enforcement;
(B) the safeguards shall not prevent the use or disclosure of such information to the Comptroller General of the
United States for audit and examination authorized by any
other provision of law;
(C) notwithstanding any other provision of law, all information obtained under this Act from an applicant
household shall be made available, upon request, to local,
State or Federal law enforcement officials for the purpose
of investigating an alleged violation of this Act or any regulation issued under this Act;
(D) the safeguards shall not prevent the use by, or disclosure of such information, to agencies of the Federal Government (including the United States Postal Service) for
purposes of collecting the amount of an overissuance of
benefits, as determined under section 13(b) of this Act,
from Federal pay (including salaries and pensions) as authorized pursuant to section 5514 of title 5 of the United
States Code or a Federal income tax refund as authorized
by section 3720A of title 31, United States Code;
(E) notwithstanding any other provision of law, the
address, social security number, and, if available, photograph of any member of a household shall be made available, on request, to any Federal, State, or local law enforcement officer if the officer furnishes the State agency
with the name of the member and notifies the agency
that—
(i) the member—
(I) is fleeing to avoid prosecution, or custody
or confinement after conviction, for a crime (or attempt to commit a crime) that, under the law of
the place the member is fleeing, is a felony (or, in
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the case of New Jersey, a high misdemeanor), or
is violating a condition of probation or parole imposed under Federal or State law; or
(II) has information that is necessary for the
officer to conduct an official duty related to subclause (I);
(ii) locating or apprehending the member is an official duty; and
(iii) the request is being made in the proper exercise of an official duty; and
(F) the safeguards shall not prevent compliance with
paragraph (15) or (18)(B) or subsection (u);
(9) that the State agency shall—
(A) provide benefits no later than 7 days after the date
of application to any household which—
(i)(I) has gross income that is less than $150 per
month; or
(II) is a destitute migrant or a seasonal farmworker household in accordance with the regulations
governing such households in effect July 1, 1982; and
(ii) has liquid resources that do not exceed $100;
(B) provide benefits no later than 7 days after the date
of application to any household that has a combined gross
income and liquid resources that is less than the monthly
rent, or mortgage, and utilities of the household; and
(C) to the extent practicable, verify the income and liquid resources of a household referred to in subparagraph
(A) or (B) prior to issuance of benefits to the household;
(10) for the granting of a fair hearing and a prompt determination thereafter to any household aggrieved by the action
of the State agency under any provision of its plan of operation
as it affects the participation of such household in the supplemental nutrition assistance program or by a claim against the
household for an overissuance: Provided, That any household
which timely requests such a fair hearing after receiving individual notice of agency action reducing or terminating its benefits within the household’s certification period shall continue to
participate and receive benefits on the basis authorized immediately prior to the notice of adverse action until such time as
the fair hearing is completed and an adverse decision rendered
or until such time as the household’s certification period terminates, whichever occurs earlier, except that in any case in
which the State agency receives from the household a written
statement containing information that clearly requires a reduction or termination of the household’s benefits, the State agency may act immediately to reduce or terminate the household’s
benefits and may provide notice of its action to the household
as late as the date on which the action becomes effective. At
the option of a State, at any time prior to a fair hearing determination under this paragraph, a household may withdraw,
orally or in writing, a request by the household for the fair
hearing. If the withdrawal request is an oral request, the State
agency shall provide a written notice to the household conFebruary 7, 2014

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firming the withdrawal request and providing the household
with an opportunity to request a hearing;
(11) upon receipt of a request from a household, for the
prompt restoration in the form of benefits to a household of
any allotment or portion thereof which has been wrongfully denied or terminated, except that allotments shall not be restored for any period of time more than one year prior to the
date the State agency receives a request for such restoration
from a household or the State agency is notified or otherwise
discovers that a loss to a household has occurred;
(12) for the submission of such reports and other information as from time to time may be required by the Secretary;
(13) for indicators of expected performance in the administration of the program;
(14) that the State agency shall specify a plan of operation
for providing supplemental nutrition assistance program benefits for households that are victims of a disaster; that such
plan shall include, but not be limited to, procedures for informing the public about the disaster program and how to apply for
its benefits, coordination with Federal and private disaster relief agencies and local government officials, application procedures to reduce hardship and inconvenience and deter fraud,
and instruction of caseworkers in procedures for implementing
and operating the disaster program;
(15) notwithstanding paragraph (8) of this subsection, for
the immediate reporting to the Immigration and Naturalization Service by the State agency of a determination by personnel responsible for the certification or recertification of
households that any member of a household is ineligible to receive supplemental nutrition assistance program benefits because that member is present in the United States in violation
of the Immigration and Nationality Act ø(8 U.S.C. 1101 et
seq.)¿;
(16) at the option of the State agency, for the establishment and operation of an automatic data processing and information retrieval system that meets such conditions as the Secretary may prescribe and that is designed to provide efficient
and effective administration of the supplemental nutrition assistance program;
(17) at the option of the State agency, that information
may be requested and exchanged for purposes of income and
eligibility verification in accordance with a State system which
meets the requirements of section 1137 of the Social Security
Act ø(42 U.S.C. 1320b-7)¿ and that any additional information
available from agencies administering State unemployment
compensation laws under the provisions of section 303(d) of the
Social Security Act ø(42 U.S.C. 503(d)¿ may be requested and
utilized by the State agency described in section 3(t)(1) to the
extent permitted under the provisions of section 303(d) of the
Social Security Act;
(18) that the State agency shall establish a system and
take action on a periodic basis—
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(A) to verify and otherwise ensure that an individual
does not receive benefits in more than 1 jurisdiction within
the State; and
(B) to verify and otherwise ensure that an individual
who is placed under detention in a Federal, State, or local
penal, correctional, or other detention facility for more
than 30 days shall not be eligible to participate in the supplemental nutrition assistance program as a member of
any household, except that—
(i) the Secretary may determine that extraordinary circumstances make it impracticable for the
State agency to obtain information necessary to discontinue inclusion of the individual; and
(ii) a State agency that obtains information collected under section 1611(e)(1)(I)(i)(I) of the Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) pursuant to
section 1611(e)(1)(I)(ii)(II) of that Act (42 U.S.C.
1382(e)(1)(I)(ii)(II)), or under another program determined by the Secretary to be comparable to the program carried out under that section, shall be considered in compliance with this subparagraph.
(19) the plans of the State agency for carrying out employment and training programs under section 6(d)(4), including
the nature and extent of such programs, the geographic areas
and households to be covered under such program, and the
basis, including any cost information, for exemptions of categories and individuals and for the choice of employment and
training program components reflected in the plans;
(20) in a project area in which 5,000 or more households
participate in the supplemental nutrition assistance program,
for the establishment and operation of a unit for the detection
of fraud in the supplemental nutrition assistance program, including the investigation, and assistance in the prosecution, of
such fraud;
(21) at the option of the State, for procedures necessary to
obtain payment of uncollected overissuance of benefits from
unemployment compensation pursuant to section 13(c);
(22) the guidelines the State agency uses in carrying out
section 6(i);
(23) if a State elects to carry out a Simplified Supplemental Nutrition Assistance Program under section 26, the
plans of the State agency for operating the program, including—
(A) the rules and procedures to be followed by the
State agency to determine supplemental nutrition assistance program benefits;
(B) how the State agency will address the needs of
households that experience high shelter costs in relation to
the incomes of the households; and
(C) a description of the method by which the State
agency will carry out a quality control system under section 16(c);
(24) that the State agency shall request wage data directly
from the National Directory of New Hires established under
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section 453(i) of the Social Security Act (42 U.S.C. 653(i)) relevant to determining eligibility to receive supplemental nutrition assistance program benefits and determining the correct
amount of those benefits at the time of certification; and
(25) if the State elects to carry out a program to contract
with private establishments to offer meals at concessional
prices, as described in paragraphs (3), (4), and (9) of section
3(k)—
(A) the plans of the State agency for operating the program, including—
(i) documentation of a need that eligible homeless,
elderly, and disabled clients are underserved in a particular geographic area;
(ii) the manner by which the State agency will
limit participation to only those private establishments that the State determines necessary to meet the
need identified in clause (i); and
(iii) any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the
program; and
(B) a report by the State agency to the Secretary annually, the schedule of which shall be established by the
Secretary, that includes—
(i) the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and
(ii) an assessment of whether the program is
meeting an established need, as documented under
subparagraph (A)(i).
ø(f) 20 ¿
(g) If the Secretary determines, upon information received by
the Secretary, investigation initiated by the Secretary, or investigation that the Secretary shall initiate upon receiving sufficient information evidencing a pattern of lack of compliance by a State agency of a type specified in this subsection, that in the administration
of the supplemental nutrition assistance program there is a failure
by a State agency without good cause to comply with any of the
provisions of this Act, the regulations issued pursuant to this Act,
the State plan of operation submitted pursuant to subsection (d) of
this section, the State plan for automated data processing submitted pursuant to subsection (o)(2) of this section, or the requirements established pursuant to section 23 of this Act, the Secretary
shall immediately inform such State agency of such failure and
shall allow the State agency a specified period of time for the correction of such failure. If the State agency does not correct such
failure within that specified period, the Secretary may refer the
matter to the Attorney General with a request that injunctive relief
be sought to require compliance forthwith by the State agency and,
upon suit by the Attorney General in an appropriate district court
of the United States having jurisdiction of the geographic area in
20 Subsec.

February 7, 2014

(f) struck by sec. 241(b)(2) of P.L. 111–296, 124 Stat. 3236, Dec. 13, 2010.

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which the State agency is located and a showing that noncompliance has occurred, appropriate injunctive relief shall issue, and,
whether or not the Secretary refers such matter to the Attorney
General, the Secretary shall proceed to withhold from the State
such funds authorized under sections 16(a), 16(c), and 16(g) of this
Act as the Secretary determines to be appropriate, subject to administrative and judicial review under section 14 of this Act.
(h) If the Secretary determines that there has been negligence
or fraud on the part of the State agency in the certification of applicant households, the State shall, upon request of the Secretary, deposit into the Treasury of the United States, a sum equal to the
face value of any benefits issued as a result of such negligence or
fraud.
(i) APPLICATION AND DENIAL PROCEDURES.—
(1) APPLICATION PROCEDURES.—Notwithstanding any other
provision of law, households in which all members are applicants for or recipients of supplemental security income shall be
informed of the availability of benefits under the supplemental
nutrition assistance program and be assisted in making a simple application to participate in such program at the social security office and be certified for eligibility utilizing information
contained in files of the Social Security Administration.
(2) DENIAL AND TERMINATION.—Except in a case of disqualification as a penalty for failure to comply with a public
assistance program rule or regulation, no household shall have
its application to participate in the supplemental nutrition assistance program denied nor its benefits under the supplemental nutrition assistance program terminated solely on the
basis that its application to participate has been denied or its
benefits have been terminated under any of the programs carried out under the statutes specified in the second sentence of
section 5(a) and without a separate determination by the State
agency that the household fails to satisfy the eligibility requirements for participation in the supplemental nutrition assistance program.
(j)(1) Any individual who is an applicant for or recipient of supplemental security income or social security benefits (under regulations prescribed by the Secretary in conjunction with the Commissioner of Social Security) shall be informed of the availability of
benefits under the supplemental nutrition assistance program and
informed of the availability of a simple application to participate in
such program at the social security office.
(2) The Secretary and the Commissioner of Social Security
shall revise the memorandum of understanding in effect on the
date of enactment of the Food Security Act of 1985, regarding services to be provided in social security offices under this subsection
and subsection (i), in a manner to ensure that—
(A) applicants for and recipients of social security benefits
are adequately notified in social security offices that assistance
may be available to them under this Act;
(B) applications for assistance under this Act from households in which all members are applicants for or recipients of
supplemental security income will be forwarded immediately to
the State agency in an efficient and timely manner; and
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(C) the Commissioner of Social Security receives from the
Secretary reimbursement for costs incurred to provide such
services.
(k) Subject to the approval of the President, post offices in all
or part of the State may provide, on request by the State agency,
supplemental nutrition assistance program benefits to eligible
households.
(l) Whenever the ratio of a State’s average supplemental nutrition assistance program participation in any quarter of a fiscal year
to the State’s total population in that quarter (estimated on the
basis of the latest available population estimates as provided by
the Department of Commerce, Bureau of the Census, Series P–25,
Current Population Reports (or its successor series)) exceeds 60 per
centum, the Office of the Inspector General of the Department of
Agriculture shall immediately schedule a financial audit review of
a sample of project areas within that State. Any financial audit review subsequent to the first such review, required under the preceding sentence, shall be conducted at the option of the Office of
the Inspector General.
(m) The Secretary shall provide for the use of fee agents in
rural Alaska. As used in this subsection ‘‘fee agent’’ means a paid
agent who, although not a State employee, is authorized by the
State to make applications available to low-income households, assist in the completion of applications, conduct required interviews,
secure required verification, forward completed applications and
supporting documentation to the State agency, and provide other
services as required by the State agency. Such services shall not
include making final decisions on household eligibility or benefit
levels.
(n) The Secretary shall require State agencies to conduct
verification and implement other measures where necessary, but no
less often than annually, to assure that an individual does not receive both benefits and benefits or payments referred to in section
6(g) or both benefits and assistance provided in lieu of benefits
under section 17(b)(1).
(o)(1) The Secretary shall develop, after consultation with, and
with the assistance of, an advisory group of State agencies appointed by the Secretary without regard to the provisions of the
Federal Advisory Committee Act ø(5 U.S.C. App. 2)¿, a model plan
for the comprehensive automation of data processing and computerization of information systems under the supplemental nutrition
assistance program. The plan shall be developed and made available for public comment through publication of the proposed plan
in the Federal Register not later than October 1, 1986. The Secretary shall complete the plan, taking into consideration public
comments received, not later than February 1, 1987. The elements
of the plan may include intake procedures, eligibility determinations and calculation of benefits, verification procedures, coordination with related Federal and State programs, the issuance of benefits, reconciliation procedures, the generation of notices, and program reporting. In developing the plan, the Secretary shall take
into account automated data processing and information systems
already in existence in States and shall provide for consistency
with such systems.
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(2) Not later than October 1, 1987, each State agency shall develop and submit to the Secretary for approval a plan for the use
of an automated data processing and information retrieval system
to administer the supplemental nutrition assistance program in
such State. The State plan shall take into consideration the model
plan developed by the Secretary under paragraph (1) and shall provide time frames for completion of various phases of the State plan.
If a State agency already has a sufficient automated data processing and information retrieval system, the State plan may, subject to the Secretary’s approval, reflect the existing State system.
(3) Not later than April 1, 1988, the Secretary shall prepare
and submit to Congress an evaluation of the degree and sufficiency
of each State’s automated data processing and computerized information systems for the administration of the supplemental nutrition assistance program, including State plans submitted under
paragraph (2). Such report shall include an analysis of additional
steps needed for States to achieve effective and cost-efficient data
processing and information systems. The Secretary, thereafter,
shall periodically update such report.
(4) Based on the Secretary’s findings in such report submitted
under paragraph (3), the Secretary may require a State agency, as
necessary to rectify identified shortcomings in the administration of
the supplemental nutrition assistance program in the State, except
where such direction would displace State initiatives already under
way, to take specified steps to automate data processing systems
or computerize information systems for the administration of the
supplemental nutrition assistance program in the State if the Secretary finds that, in the absence of such systems, there will be program accountability or integrity problems that will substantially affect the administration of the supplemental nutrition assistance
program in the State.
(5)(A) Subject to subparagraph (B), in the case of a plan for an
automated data processing and information retrieval system submitted by a State agency to the Secretary under paragraph (2),
such State agency shall—
(i) commence implementation of its plan not later than October 1, 1988; and
(ii) meet the time frames set forth in the plan.
(B) The Secretary shall extend a deadline imposed under subparagraph (A) to the extent the Secretary deems appropriate based
on the Secretary’s finding of a good faith effort of a State agency
to implement its plan in accordance with subparagraph (A).
(p) STATE VERIFICATION OPTION.—In carrying out the supplemental nutrition assistance program, a State agency shall be required to use an immigration status verification system established
under section 1137 of the Social Security Act (42 U.S.C. 1320b–7),
and an income and eligibility verification system, in accordance
with standards set by the Secretary.
(q) DENIAL OF BENEFITS FOR PRISONERS.—The Secretary shall
assist States, to the maximum extent practicable, in implementing
a system to conduct computer matches or other systems to prevent
prisoners described in subsection (e)(18)(B) from participating in
the supplemental nutrition assistance program as a member of any
household.
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(r) DENIAL OF BENEFITS FOR DECEASED INDIVIDUALS.—Each
State agency shall—
(1) enter into a cooperative arrangement with the Commissioner of Social Security, pursuant to the authority of the Commissioner under section 205(r)(3) of the Social Security Act (42
U.S.C. 405(r)(3)), to obtain information on individuals who are
deceased; and
(2) use the information to verify and otherwise ensure that
benefits are not issued to individuals who are deceased.
(s) TRANSITIONAL BENEFITS OPTION.—
(1) IN GENERAL.—A State agency may provide transitional
supplemental nutrition assistance program benefits—
(A) to a household that ceases to receive cash assistance under a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.); or
(B) at the option of the State, to a household with children that ceases to receive cash assistance under a Statefunded public assistance program.
(2) TRANSITIONAL BENEFITS PERIOD.—Under paragraph (1),
a household may receive transitional supplemental nutrition
assistance program benefits for a period of not more than 5
months after the date on which cash assistance is terminated.
(3) AMOUNT OF BENEFITS.—During the transitional benefits
period under paragraph (2), a household shall receive an
amount of supplemental nutrition assistance program benefits
equal to the allotment received in the month immediately preceding the date on which cash assistance was terminated, adjusted for the change in household income as a result of—
(A) the termination of cash assistance; and
(B) at the option of the State agency, information from
another program in which the household participates.
(4) DETERMINATION OF FUTURE ELIGIBILITY.—In the final
month of the transitional benefits period under paragraph (2),
the State agency may—
(A) require the household to cooperate in a recertification of eligibility; and
(B) initiate a new certification period for the household
without regard to whether the preceding certification period has expired.
(5) LIMITATION.—A household shall not be eligible for transitional benefits under this subsection if the household—
(A) loses eligibility under section 6;
(B) is sanctioned for a failure to perform an action required by Federal, State, or local law relating to a cash assistance program described in paragraph (1); or
(C) is a member of any other category of households
designated by the State agency as ineligible for transitional benefits.
(6) APPLICATIONS FOR RECERTIFICATION.—
(A) IN GENERAL.—A household receiving transitional
benefits under this subsection may apply for recertification
at any time during the transitional benefits period under
paragraph (2).
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(B) DETERMINATION OF ALLOTMENT.—If a household
applies for recertification under subparagraph (A), the allotment of the household for all subsequent months shall
be determined without regard to this subsection.
(t) GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.—
(1) IN GENERAL.—Subject to the availability of appropriations under section 18(a), for each fiscal year, the Secretary
shall use not more than $5,000,000 of funds made available
under section 18(a)(1) to make grants to pay 100 percent of the
costs of eligible entities approved by the Secretary to carry out
projects to develop and implement—
(A) simple supplemental nutrition assistance program
application and eligibility determination systems; or
(B) measures to improve access to supplemental nutrition assistance program benefits by eligible households.
(2) TYPES OF PROJECTS.—A project under paragraph (1)
may consist of—
(A) coordinating application and eligibility determination processes, including verification practices, under the
supplemental nutrition assistance program and other Federal, State, and local assistance programs;
(B) establishing methods for applying for benefits and
determining eligibility that—
(i) more extensively use—
(I) communications by telephone; and
(II) electronic alternatives such as the Internet; or
(ii) otherwise improve the administrative infrastructure used in processing applications and determining eligibility;
(C) developing procedures, training materials, and
other resources aimed at reducing barriers to participation
and reaching eligible households;
(D) improving methods for informing and enrolling eligible households; or
(E) carrying out such other activities as the Secretary
determines to be appropriate.
(3) LIMITATION.—A grant under this subsection shall not
be made for the ongoing cost of carrying out any project.
(4) ELIGIBLE ENTITIES.—To be eligible to receive a grant
under this subsection, an entity shall be—
(A) a State agency administering the supplemental nutrition assistance program;
(B) a State or local government;
(C) an agency providing health or welfare services;
(D) a public health or educational entity; or
(E) a private nonprofit entity such as a communitybased organization, food bank, or other emergency feeding
organization.
(5) SELECTION OF ELIGIBLE ENTITIES.—The Secretary—
(A) shall develop criteria for the selection of eligible
entities to receive grants under this subsection; and
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Sec. 11

(B) may give preference to any eligible entity that consists of a partnership between a governmental entity and
a nongovernmental entity.
(u) AGREEMENT FOR DIRECT CERTIFICATION AND COOPERATION.—
(1) IN GENERAL.—Each State agency shall enter into an
agreement with the State agency administering the school
lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).
(2) CONTENTS.—The agreement shall establish procedures
that ensure that—
(A) any child receiving benefits under this Act shall be
certified as eligible for free lunches under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.)
and free breakfasts under the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.), without further application; and
(B) each State agency shall cooperate in carrying out
paragraphs (3)(F) and (4) of section 9(b) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)).
(v) DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.—
(1) DESIGNATION.—The Secretary shall, in consultation
with an interagency work group established by the Office of
Management and Budget, and considering State government
perspectives, designate data exchange standards to govern,
under this Act—
(A) necessary categories of information that State
agencies operating related programs are required under
applicable law to electronically exchange with another
State agency; and
(B) Federal reporting and data exchange required
under applicable law.
(2) REQUIREMENTS.—The data exchange standards required by paragraph (1) shall, to the maximum extent practicable—
(A) incorporate a widely accepted, nonproprietary,
searchable, computer-readable format, such as the eXtensible Markup Language;
(B) contain interoperable standards developed and
maintained by intergovernmental partnerships, such as
the National Information Exchange Model;
(C) incorporate interoperable standards developed and
maintained by Federal entities with authority over contracting and financial assistance;
(D) be consistent with and implement applicable accounting principles;
(E) be implemented in a manner that is cost-effective
and improves program efficiency and effectiveness; and
(F) be capable of being continually upgraded as necessary.
(3) RULES OF CONSTRUCTION.—Nothing in this subsection
requires a change to existing data exchange standards for Federal reporting found to be effective and efficient.
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SEC. 12. ø7 U.S.C. 2021¿ CIVIL PENALTIES AND DISQUALIFICATION OF
RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.
(a) DISQUALIFICATION.—
(1) IN GENERAL.—An approved retail food store or whole-

sale food concern that violates a provision of this Act or a regulation under this Act may be—
(A) disqualified for a specified period of time from further participation in the supplemental nutrition assistance
program;
(B) assessed a civil penalty of up to $100,000 for each
violation; or
(C) both.
(2) REGULATIONS.—Regulations promulgated under this
Act shall provide criteria for the finding of a violation of, the
suspension or disqualification of and the assessment of a civil
penalty against a retail food store or wholesale food concern on
the basis of evidence that may include facts established
through on-site investigations, inconsistent redemption data, or
evidence obtained through a transaction report under an electronic benefit transfer system.
(b) PERIOD OF DISQUALIFICATION.—Subject to subsection (c), a
disqualification under subsection (a) shall be—
(1) for a reasonable period of time, not to exceed 5 years,
upon the first occasion of disqualification;
(2) for a reasonable period of time, not to exceed 10 years,
upon the second occasion of disqualification;
(3) 21 permanent upon—
(A) the third occasion of disqualification;
(B) the first occasion or any subsequent occasion of a
disqualification based on the purchase of coupons or trafficking in coupons or authorization cards by a retail food
store or wholesale food concern or a finding of the unauthorized redemption, use, transfer, acquisition, alteration,
or possession of EBT cards, except that the Secretary shall
have the discretion to impose a civil penalty of up to
$20,000 for each violation (except that the amount of civil
penalties imposed for violations occurring during a single
investigation may not exceed $40,000) in lieu of disqualification under this subparagraph, for such purchase of coupons or trafficking in coupons or cards that constitutes a
violation of the provisions of this Act or the regulations
issued pursuant to this Act, if the Secretary determines
that there is substantial evidence that such store or food
concern had an effective policy and program in effect to
prevent violations of the Act and the regulations, including
evidence that—
21 Section 1 of the Act entitled ‘‘An Act to amend the Hunger Prevention Act of 1988 to make
a technical correction’’, approved November 5, 1988 (P.L. 100–619) provides that ‘‘In section
701(b)(4) strike out‘and sections 310 through 352’and insert in lieu thereof‘sections 310 through
343, and sections 345 through 352’.’’, thereby subjecting the amendment made by section 344
to the general effective date of October 1, 1988 prescribed in section 701(a). Section 1 of P.L.
100–619 did not specify which Act was being amended. The amendment was executed to section
701(b)(4) of the Hunger Prevention Act of 1988 to effectuate the probable intent of Congress.

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(i) the ownership of the store or food concern was
not aware of, did not approve of, did not benefit from,
and was not involved in the conduct of the violation;
and
(ii)(I) the management of the store or food concern
was not aware of, did not approve of, did not benefit
from, and was not involved in the conduct of the violation; or
(II) the management was aware of, approved of,
benefited from, or was involved in the conduct of no
more than 1 previous violation by the store or food
concern; or
(C) a finding of the sale of firearms, ammunition, explosives, or controlled substance (as defined in section 802
of title 21, United States Code) for coupons, except that
the Secretary shall have the discretion to impose a civil
penalty of up to $20,000 for each violation (except that the
amount of civil penalties imposed for violations occurring
during a single investigation may not exceed $40,000) in
lieu of disqualification under this subparagraph if the Secretary determines that there is substantial evidence (including evidence that neither the ownership nor management of the store or food concern was aware of, approved,
benefited from, or was involved in the conduct or approval
of the violation) that the store or food concern had an effective policy and program in effect to prevent violations of
this Act; and
(4) for a reasonable period of time to be determined by the
Secretary, including permanent disqualification, on the knowing submission of an application for the approval or reauthorization to accept and redeem coupons that contains false information about a substantive matter that was a part of the application.
(c) CIVIL PENALTY AND REVIEW OF DISQUALIFICATION AND PENALTY DETERMINATIONS.—
(1) CIVIL PENALTY.—In addition to a disqualification under
this section, the Secretary may assess a civil penalty in an
amount not to exceed $100,000 for each violation.
(2) REVIEW.—The action of disqualification or the imposition of a civil penalty shall be subject to review as provided in
section 14 of this Act.
(d) CONDITIONS OF AUTHORIZATION.—
(1) IN GENERAL.—As a condition of authorization to accept
and redeem benefits, the Secretary may require a retail food
store or wholesale food concern that, pursuant to subsection
(a), has been disqualified for more than 180 days, or has been
subjected to a civil penalty in lieu of a disqualification period
of more than 180 days, to furnish a collateral bond or irrevocable letter of credit for a period of not more than 5 years to
cover the value of benefits that the store or concern may in the
future accept and redeem in violation of this Act.
(2) COLLATERAL.—The Secretary also may require a retail
food store or wholesale food concern that has been sanctioned
for a violation and incurs a subsequent sanction regardless of
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the length of the disqualification period to submit a collateral
bond or irrevocable letter of credit.
(3) BOND REQUIREMENTS.—The Secretary shall, by regulation, prescribe the amount, terms, and conditions of such bond.
(4) FORFEITURE.—If the Secretary finds that such store or
concern has accepted and redeemed coupons in violation of this
Act after furnishing such bond, such store or concern shall forfeit to the Secretary an amount of such bond which is equal to
the value of coupons accepted and redeemed by such store or
concern in violation of this Act.
(5) HEARING.—A store or concern described in paragraph
(4) may obtain a hearing on such forfeiture pursuant to section
14.
(e)(1) In the event any retail food store or wholesale food concern that has been disqualified under subsection (a) is sold or the
ownership thereof is otherwise transferred to a purchaser or transferee, the person or persons who sell or otherwise transfer ownership of the retail food store or wholesale food concern shall be subjected to a civil penalty in an amount established by the Secretary
through regulations to reflect that portion of the disqualification
period that has not yet expired. If the retail food store or wholesale
food concern has been disqualified permanently, the civil penalty
shall be double the penalty for a ten-year disqualification period,
as calculated under regulations issued by the Secretary. The disqualification period imposed under subsection (b) shall continue in
effect as to the person or persons who sell or otherwise transfer
ownership of the retail food store or wholesale food concern notwithstanding the imposition of a civil penalty under this subsection.
(2) At any time after a civil penalty imposed under paragraph
(1) has become final under the provisions of section 14(a), the Secretary may request the Attorney General to institute a civil action
against the person or persons subject to the penalty in a district
court of the United States for any district in which such person or
persons are found, reside, or transact business to collect the penalty and such court shall have jurisdiction to hear and decide such
action. In such action, the validity and amount of such penalty
shall not be subject to review.
(3) The Secretary may impose a fine against any retail food
store or wholesale food concern that accepts food coupons that are
not accompanied by the corresponding book cover, other than the
denomination of coupons used for making change as specified in
regulations issued under this Act. The amount of any such fine
shall be established by the Secretary and may be assessed and collected in accordance with regulations issued under this Act separately or in combination with any fiscal claim established by the
Secretary. The Attorney General of the United States may institute
judicial action in any court of competent jurisdiction against the
store or concern to collect the fine.
(f) The Secretary may impose a fine against any person not approved by the Secretary to accept and redeem food coupons who
violates any provision of this Act or a regulation issued under this
Act, including violations concerning the acceptance of food coupons.
The amount of any such fine shall be established by the Secretary
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and may be assessed and collected in accordance with regulations
issued under this Act separately or in combination with any fiscal
claim established by the Secretary. The Attorney General of the
United States may institute judicial action in any court of competent jurisdiction against the person to collect the fine.
(g) DISQUALIFICATION OF RETAILERS WHO ARE DISQUALIFIED
UNDER THE WIC PROGRAM.—
(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this Act of an
approved retail food store or a wholesale food concern that is
disqualified from accepting benefits under the special supplemental nutrition program for women, infants, and children established under section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786).
(2) TERMS.—A disqualification under paragraph (1)—
(A) shall be for the same length of time as the disqualification from the program referred to in paragraph
(1);
(B) may begin at a later date than the disqualification
from the program referred to in paragraph (1); and
(C) notwithstanding section 14, shall not be subject to
judicial or administrative review.
(h) FLAGRANT VIOLATIONS.—
(1) IN GENERAL.—The Secretary, in consultation with the
Inspector General of the Department of Agriculture, shall establish procedures under which the processing of program benefit redemptions for a retail food store or wholesale food concern may be immediately suspended pending administrative
action to disqualify the retail food store or wholesale food concern.
(2) REQUIREMENTS.—Under the procedures described in
paragraph (1), if the Secretary, in consultation with the Inspector General, determines that a retail food store or wholesale
food concern is engaged in flagrant violations of this Act (including regulations promulgated under this Act), unsettled program benefits that have been redeemed by the retail food store
or wholesale food concern—
(A) may be suspended; and
(B)(i) if the program disqualification is upheld, may be
subject to forfeiture pursuant to section 15(g); or
(ii) if the program disqualification is not upheld, shall
be released to the retail food store or wholesale food concern.
(3) NO LIABILITY FOR INTEREST.—The Secretary shall not
be liable for the value of any interest on funds suspended
under this subsection.
(i) PILOT PROJECTS TO IMPROVE FEDERAL-STATE COOPERATION
IN IDENTIFYING AND REDUCING FRAUD IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
(1) PILOT PROJECTS REQUIRED.—
(A) IN GENERAL.—The Secretary shall carry out, under
such terms and conditions as are determined by the Secretary, pilot projects to test innovative Federal-State partnerships to identify, investigate, and reduce fraud by retail
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food stores and wholesale food concerns in the supplemental nutrition assistance program, including allowing
States to operate programs to investigate that fraud.
(B) REQUIREMENT.—At least 1 pilot project described
in subparagraph (A) shall be carried out in an urban area
that is among the 10 largest urban areas in the United
States (based on population), if—
(i) the supplemental nutrition assistance program
is separately administered in the area; and
(ii) if the administration of the supplemental nutrition assistance program in the area complies with
the other applicable requirements of the program.
(2) SELECTION CRITERIA.—Pilot projects shall be selected
based on criteria the Secretary establishes, which shall include—
(A) enhancing existing efforts by the Secretary to reduce fraud described in paragraph (1)(A);
(B) requiring participant States to maintain the overall level of effort of the States at addressing recipient
fraud, as determined by the Secretary, prior to participation in the pilot project;
(C) collaborating with other law enforcement authorities as necessary to carry out an effective pilot project;
(D) commitment of the participant State agency to follow Federal rules and procedures with respect to investigations described in paragraph (1)(A); and
(E) the extent to which a State has committed resources to recipient fraud and the relative success of those
efforts.
(3) EVALUATION.—
(A) IN GENERAL.—The Secretary shall evaluate the
pilot projects selected under this subsection to measure the
impact of the pilot projects.
(B) REQUIREMENTS.—The evaluation shall include—
(i) the impact of each pilot project on increasing
the capacity of the Secretary to address fraud described in paragraph (1)(A);
(ii) the effectiveness of the pilot projects in identifying, preventing and reducing fraud described in
paragraph (1)(A); and
(iii) the cost effectiveness of the pilot projects.
(4) REPORT TO CONGRESS.—Not later than September 30,
2017, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report
that includes a description of the results of each pilot project,
including—
(A) an evaluation of the impact of the pilot project on
fraud described in paragraph (1)(A); and
(B) the costs associated with the pilot project.
(5) FUNDING.—Any costs incurred by a State to operate
pilot projects under this subsection that are in excess of the
amount expended under this Act to identify, investigate, and
reduce fraud described in paragraph (1)(A) in the respective
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State in the previous fiscal year shall not be eligible for Federal reimbursement under this Act.
COLLECTION AND DISPOSITION OF CLAIMS

SEC. 13.
RETARY.—

ø7 U.S.C. 2022¿ (a) GENERAL AUTHORITY

OF THE

SEC-

(1) DETERMINATION OF CLAIMS.—Except in the case of an
at-risk amount required under section 16(c)(1)(D)(i)(II), the
Secretary shall have the power to determine the amount of and
settle and adjust any claim and to compromise or deny all or
part of any such claim or claims arising under the provisions
of this Act or the regulations issued pursuant to this Act, including, but not limited to, claims arising from fraudulent and
nonfraudulent overissuances to recipients, including the power
to waive claims if the Secretary determines that to do so would
serve the purposes of this Act. Such powers with respect to
claims against recipients may be delegated by the Secretary to
State agencies. The Secretary shall have the power to reduce
amounts otherwise due to a State agency under section 16 of
this Act to collect unpaid claims assessed against the State
agency if the State agency has declined or exhausted its appeal
rights under section 14 of this Act.
(2) CLAIMS ESTABLISHED UNDER QUALITY CONTROL SYSTEM.—To the extent that a State agency does not pay a claim
established under section 16(c)(1), including an agreement to
have all or part of the claim paid through a reduction in Federal administrative funding, within 30 days from the date on
which the bill for collection is received by the State agency, the
State agency shall be liable for interest on any unpaid portion
of such claim accruing from the date on which the bill for collection was received by the State agency, unless the State
agency appeals the claim under section 16(c)(7). If the State
agency appeals such claim (in whole or in part), the interest
on any unpaid portion of the claim shall accrue from the date
of the decision on the administrative appeal, or from a date
that is 1 year after the date the bill is received, whichever is
earlier, until the date the unpaid portion of the payment is received. If the State agency pays such claim (in whole or in
part, including an agreement to have all or part of the claim
paid through a reduction in Federal administrative funding)
and the claim is subsequently overturned through administrative or judicial appeal, any amounts paid by the State agency
shall be promptly returned with interest, accruing from the
date the payment is received until the date the payment is returned.
(3) COMPUTATION OF INTEREST.—Any interest assessed
under this paragraph shall be computed at a rate determined
by the Secretary based on the average of the bond equivalent
of the weekly 90-day Treasury bill auction rates during the period such interest accrues.
(4) JOINT AND SEVERAL LIABILITY OF HOUSEHOLD MEMBERS.—Each adult member of a household shall be jointly and
severally liable for the value of any overissuance of benefits.
(b) COLLECTION OF OVERISSUANCES.—
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(1) IN GENERAL.—Except as otherwise provided in this subsection, a State agency shall collect any overissuance of benefits issued to a household by—
(A) reducing the allotment of the household;
(B) withholding amounts from unemployment compensation from a member of the household under subsection (c);
(C) recovering from Federal pay or a Federal income
tax refund under subsection (d); or
(D) any other means.
(2) COST EFFECTIVENESS.—Paragraph (1) shall not apply if
the State agency demonstrates to the satisfaction of the Secretary that all of the means referred to in paragraph (1) are
not cost effective.
(3) MAXIMUM REDUCTION ABSENT FRAUD.—If a household
received an overissuance of benefits without any member of the
household being found ineligible to participate in the program
under section 6(b)(1) and a State agency elects to reduce the
allotment of the household under paragraph (1)(A), the State
agency shall not reduce the monthly allotment of the household under paragraph (1)(A) by an amount in excess of the
greater of—
(A) 10 percent of the monthly allotment of the household; or
(B) $10.
(4) PROCEDURES.—A State agency shall collect an
overissuance of benefits issued to a household under paragraph
(1) in accordance with the requirements established by the
State agency for providing notice, electing a means of payment,
and establishing a time schedule for payment.
(5) OVERISSUANCES CAUSED BY SYSTEMIC STATE ERRORS.—
(A) IN GENERAL.—If the Secretary determines that a
State agency overissued benefits to a substantial number
of households in a fiscal year as a result of a major systemic error by the State agency, as defined by the Secretary, the Secretary may prohibit the State agency from
collecting these overissuances from some or all households.
(B) PROCEDURES.—
(i) INFORMATION REPORTING BY STATES.—Every
State agency shall provide to the Secretary all information requested by the Secretary concerning the
issuance of benefits to households by the State agency
in the applicable fiscal year.
(ii) FINAL DETERMINATION.—After reviewing relevant information provided by a State agency, the Secretary shall make a final determination—
(I) whether the State agency overissued benefits to a substantial number of households as a result of a systemic error in the applicable fiscal
year; and
(II) as to the amount of the overissuance in
the applicable fiscal year for which the State
agency is liable.
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(iii) ESTABLISHING A CLAIM.—Upon determining
under clause (ii) that a State agency has overissued
benefits to households due to a major systemic error
determined under subparagraph (A), the Secretary
shall establish a claim against the State agency equal
to the value of the overissuance caused by the systemic error.
(iv) ADMINISTRATIVE AND JUDICIAL REVIEW.—Administrative and judicial review, as provided in section
14, shall apply to the final determinations by the Secretary under clause (ii).
(v) REMISSION TO THE SECRETARY.—
(I) DETERMINATION NOT APPEALED.—If the determination of the Secretary under clause (ii) is
not appealed, the State agency shall, as soon as
practicable, remit to the Secretary the dollar
amount specified in the claim under clause (iii).
(II) DETERMINATION APPEALED.—If the determination of the Secretary under clause (ii) is appealed, upon completion of administrative and judicial review under clause (iv), and a finding of liability on the part of the State, the appealing
State agency shall, as soon as practicable, remit to
the Secretary a dollar amount subject to the finding made in the administrative and judicial review.
(vi) ALTERNATIVE METHOD OF COLLECTION.—
(I) IN GENERAL.—If a State agency fails to
make a payment under clause (v) within a reasonable period of time, as determined by the Secretary, the Secretary may reduce any amount due
to the State agency under any other provision of
this Act by the amount due.
(II) ACCRUAL OF INTEREST.—During the period
of time determined by the Secretary to be reasonable under subclause (I), interest in the amount
owed shall not accrue.
(vii) LIMITATION.—Any liability amount established under section 16(c)(1)(C) shall be reduced by the
amount of the claim established under this subparagraph.
(c)(1) As used in this subsection, the term ‘‘uncollected
overissuance’’ means the amount of an overissuance of benefits, as
determined under subsection (b)(1), that has not been recovered
pursuant to subsection (b)(1).
(2) A State agency may determine on a periodic basis, from information supplied pursuant to section 3(b) of the Wagner-Peyser
Act (29 U.S.C. 49b(b)), whether an individual receiving compensation under the State’s unemployment compensation law (including
amounts payable pursuant to an agreement under a Federal unemployment compensation law) owes an uncollected overissuance.
(3) A State agency may recover an uncollected overissuance—
(A) by—
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(i) entering into an agreement with an individual described in paragraph (2) under which specified amounts
will be withheld from unemployment compensation otherwise payable to the individual; and
(ii) furnishing a copy of the agreement to the State
agency administering the unemployment compensation
law; or
(B) in the absence of an agreement, by obtaining a writ,
order, summons, or other similar process in the nature of garnishment from a court of competent jurisdiction to require the
withholding of amounts from the unemployment compensation.
(d) The amount of an overissuance of benefits, as determined
under subsection (b)(1), that has not been recovered pursuant to
such subsection may be recovered from Federal pay (including salaries and pensions) as authorized by section 5514 of title 5 of the
United States Code or a Federal income tax refund as authorized
by section 3720A of title 31, United States Code.
ADMINISTRATIVE AND JUDICIAL REVIEW

SEC. 14. ø7 U.S.C. 2023¿ (a)(1) Whenever an application of a
retail food store or wholesale food concern to participate in the supplemental nutrition assistance program is denied pursuant to section 9 of this Act, or a retail food store or wholesale food concern
is disqualified or subjected to a civil money penalty under the provisions of section 12 of this Act, or a retail food store or wholesale
food concern forfeits a bond under section 12(d) of this Act, or all
or part of any claim of a retail food store or wholesale food concern
is denied under the provisions of section 13 of this Act, or a claim
against a State agency is stated pursuant to the provisions of section 13 of this Act, notice of such administrative action shall be
issued to the retail food store, wholesale food concern, or State
agency involved.
(2) DELIVERY OF NOTICES.—A notice under paragraph (1)
shall be delivered by any form of delivery that the Secretary
determines will provide evidence of the delivery.
(3) If such store, concern, or State agency is aggrieved by such
action, it may, in accordance with regulations promulgated under
this Act, within ten days of the date of delivery of such notice, file
a written request for an opportunity to submit information in support of its position to such person or persons as the regulations
may designate.
(4) If such a request is not made or if such store, concern, or
State agency fails to submit information in support of its position
after filing a request, the administrative determination shall be
final.
(5) If such request is made by such store, concern, or State
agency, such information as may be submitted by the store, concern, or State agency, as well as such other information as may be
available, shall be reviewed by the person or persons designated by
the Secretary, who shall, subject to the right of judicial review
hereinafter provided, make a determination which shall be final
and which shall take effect thirty days after the date of the delivery or service of such final notice of determination.
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(6) Determinations regarding claims made pursuant to section
16(c) (including determinations as to whether there is good cause
for not imposing all or a portion of the penalty) shall be made on
the record after opportunity for an agency hearing in accordance
with section 556 and 557 of title 5, United States Code, in which
one or more administrative law judges appointed pursuant to section 3105 of such title shall preside over the taking of evidence.
(7) Such judges shall have authority to issue and enforce subpoenas in the manner prescribed in sections 13 (c) and (d) of the
Perishable Agricultural Commodities Act of 1930 (7 U.S.C. 499m
(c) and (d)) and to appoint expert witnesses under the provisions
of Rule 706 of the Federal Rules of Evidence.
(8) The Secretary may not limit the authority of such judges
presiding over determinations regarding claims made pursuant to
section 16(c).
(9) The Secretary shall provide a summary procedure for determinations regarding claims made pursuant to section 16(c) in
amounts less than $50,000.
(10) Such summary procedure need not include an oral hearing.
(11) On a petition by the State agency or sua sponte, the Secretary may permit the full administrative review procedure to be
used in lieu of such summary review procedure for a claim of less
than $50,000.
(12) Subject to the right of judicial review hereinafter provided,
a determination made by an administrative law judge regarding a
claim made pursuant to section 16(c) shall be final and shall take
effect thirty days after the date of the delivery or service of final
notice of such determination.
(13) If the store, concern, or State agency feels aggrieved by
such final determination, it may obtain judicial review thereof by
filing a complaint against the United States in the United States
court for the district in which it resides or is engaged in business,
or, in the case of a retail food store or wholesale food concern, in
any court of record of the State having competent jurisdiction,
within thirty days after the date of delivery or service of the final
notice of determination upon it, requesting the court to set aside
such determination.
(14) The copy of the summons and complaint required to be delivered to the official or agency whose order is being attacked shall
be sent to the Secretary or such person or persons as the Secretary
may designate to receive service of process.
(15) The suit in the United States district court or State court
shall be a trial de novo by the court in which the court shall determine the validity of the questioned administrative action in issue,
except that judicial review of determinations regarding claims
made pursuant to section 16(c) shall be a review on the administrative record.
(16) If the court determines that such administrative action is
invalid, it shall enter such judgment or order as it determines is
in accordance with the law and the evidence.
(17) During the pendency of such judicial review, or any appeal
therefrom, the administrative action under review shall be and remain in full force and effect, unless on application to the court on
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not less than ten days’ notice, and after hearing thereon and a consideration by the court of the applicant’s likelihood of prevailing on
the merits and of irreparable injury, the court temporarily stays
such administrative action pending disposition of such trial or appeal.
(18) SUSPENSION OF STORES PENDING REVIEW.—Notwithstanding any other provision of this subsection, any permanent
disqualification of a retail food store or wholesale food concern
under paragraph (3) or (4) of section 12(b) shall be effective
from the date of receipt of the notice of disqualification. If the
disqualification is reversed through administrative or judicial
review, the Secretary shall not be liable for the value of any
sales lost during the disqualification period.
(b) In any judicial action arising under this Act, any allotments
found to have been wrongfully withheld shall be restored only for
periods of not more than one year prior to the date of the commencement of such action, or in the case of an action seeking review of a final State agency determination, not more than one year
prior to the date of the filing of a request with the State for the
restoration of such allotments or, in either case, not more than one
year prior to the date the State agency is notified or otherwise discovers the possible loss to a household.
VIOLATIONS AND ENFORCEMENT

SEC. 15. ø7 U.S.C. 2024¿ (a) Notwithstanding any other provision of this Act, the Secretary may provide for the issuance or presentment for redemption of benefits to such person or persons, and
at such times and in such manner, as the Secretary deems necessary or appropriate to protect the interests of the United States
or to ensure enforcement of the provisions of this Act or the regulations issued pursuant to this Act.
(b)(1) Subject to the provisions of paragraph (2) of this subsection, whoever knowingly uses, transfers, acquires, alters, or possesses benefits in any manner contrary to this Act or the regulations issued pursuant to this Act shall, if such benefits are of a
value of $5,000 or more, be guilty of a felony and shall be fined not
more than $250,000 or imprisoned for not more than twenty years,
or both, and shall, if such benefits are of a value of $100 or more,
but less than $5,000, or if the item used, transferred, acquired, altered, or possessed is a benefit that has a value of $100 or more,
but less than $5,000, 25 be guilty of a felony and shall, upon the
first conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, and, upon the second
and any subsequent conviction thereof, shall be imprisoned for not
less than six months nor more than five years and may also be
fined not more than $10,000 or, if such benefits are of a value of
less than $100, or if the item used, transferred, acquired, altered,
or processed is a benefit that has a value of less than $100, shall
be guilty of a misdemeanor, and, upon the first conviction thereof,
25 Section 1748(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (P.L. 101–
624; 104 Stat. 3797) amended the first sentence of section 15(b)(1) by inserting ‘‘$100 or more’’
each place that such term appears the following: ‘‘but less than $5,000,’’. This amendment probably should have made reference to an earlier amendment that added the term ‘‘$100 or more’’
the second place it appears.

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shall be fined not more than $1,000 or imprisoned for not more
than one year, or both, and upon the second and any subsequent
conviction thereof, shall be imprisoned for not more than one year
and may also be fined not more than $1,000. In addition to such
penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the supplemental nutrition assistance program for an
additional period of up to eighteen months consecutive to that period of suspension mandated by section 6(b)(1) of this Act.
(2) In the case of any individual convicted of an offense under
paragraph (1) of this subsection, the court may permit such individual to perform work approved by the court for the purpose of
providing restitution for losses incurred by the United States and
the State agency as a result of the offense for which such individual was convicted. If the court permits such individual to perform such work and such individual agrees thereto, the court shall
withhold the imposition of the sentence on the condition that such
individual perform the assigned work. Upon the successful completion of the assigned work the court may suspend such sentence.
(c) Whoever presents, or causes to be presented, benefits for
payment or redemption of the value of $100 or more, knowing the
same to have been received, transferred, or used in any manner in
violation of the provisions of this Act or the regulations issued pursuant to this Act, shall be guilty of a felony and, upon the first conviction thereof, shall be fined not more than $20,000 or imprisoned
for not more than five years, or both, and, upon the second and any
subsequent conviction thereof, shall be imprisoned for not less than
one year nor more than five years and may also be fined not more
than $20,000, or, if such benefits are of a value of less than $100,
shall be guilty of a misdemeanor and, upon the first conviction
thereof, shall be fined not more than $1,000 or imprisoned for not
more than one year, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one
year and may also be fined not more than $1,000. In addition to
such penalties, any person convicted of a felony or misdemeanor
violation under this subsection may be suspended by the court from
participation in the supplemental nutrition assistance program for
an additional period of up to eighteen months consecutive to that
period of suspension mandated by section 6(b)(1) of this Act.
(d) Benefits issued pursuant to this Act shall be deemed to be
obligations of the United States within the meaning of section 8 of
title 18, United States Code.
(e) The Secretary may subject to forfeiture and denial of property rights any nonfood items, moneys, negotiable instruments, securities, or other things of value that are furnished by any person
in exchange for benefits, 27 or anything of value obtained by use of
an access device, in any manner contrary to this Act or the regulations issued under this Act. Any forfeiture and disposal of property
27 Sec. 4115(b)(10)(G) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122
Stat. 1869) amended this subsection by striking ‘‘coupon, authorization cards or access devices’’
and inserting ‘‘benefits’’. Original text read ‘‘coupons, authorization cards or access devices’’.
Amendment executed to effectuate the probable intent of Congress.

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forfeited under this subsection shall be conducted in accordance
with procedures contained in regulations issued by the Secretary.
(f) CRIMINAL FORFEITURE.—
(1) IN GENERAL.—In imposing a sentence on a person convicted of an offense in violation of subsection (b) or (c), a court
shall order, in addition to any other sentence imposed under
this section, that the person forfeit to the United States all
property described in paragraph (2).
(2) PROPERTY SUBJECT TO FORFEITURE.—All property, real
and personal, used in a transaction or attempted transaction,
to commit, or to facilitate the commission of, a violation (other
than a misdemeanor) of subsection (b) or (c), or proceeds traceable to a violation of subsection (b) or (c), shall be subject to
forfeiture to the United States under paragraph (1).
(3) INTEREST OF OWNER.—No interest in property shall be
forfeited under this subsection as the result of any act or omission established by the owner of the interest to have been committed or omitted without the knowledge or consent of the
owner.
(4) PROCEEDS.—The proceeds from any sale of forfeited
property and any monies forfeited under this subsection shall
be used—
(A) first, to reimburse the Department of Justice for
the costs incurred by the Department to initiate and complete the forfeiture proceeding;
(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office
incurred in the law enforcement effort resulting in the forfeiture;
(C) third, to reimburse any Federal or State law enforcement agency for any costs incurred in the law enforcement effort resulting in the forfeiture; and
(D) fourth, by the Secretary to carry out the approval,
reauthorization, and compliance investigations of retail
stores and wholesale food concerns under section 9.
ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

SEC. 16. ø7 U.S.C. 2025¿ (a) Subject to subsection (k), the Secretary is authorized to pay to each State agency an amount equal
to 50 per centum of all administrative costs involved in each State
agency’s operation of the supplemental nutrition assistance program, which costs shall include, but not be limited to, the cost of
(1) the certification of applicant households, (2) the acceptance,
storage, protection, control, and accounting of benefits after their
delivery to receiving points within the State, (3) the issuance of
benefits to all eligible households, (4) informational activities relating to the supplemental nutrition assistance program, including
those undertaken under section 11(e)(1)(A), but not including recruitment activities designed to persuade an individual to apply for
program benefits or that promote the program through television,radio, or billboard advertisements, (5) fair hearings, (6) automated data processing and information retrieval systems subject to
the conditions set forth in subsection (g), (7) supplemental nutrition
assistance program investigations and prosecutions, and (8) impleFebruary 7, 2014

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menting and operating the immigration status verification system
established under section 1137(d) of the Social Security Act (42
U.S.C. 1320b–7(d)): Provided, That the Secretary is authorized at
the Secretary’s discretion to pay any State agency administering
the supplemental nutrition assistance program on all or part of an
Indian reservation under section 11(d) of this Act or in a Native
village within the State of Alaska identified in section 11(b) of Public Law 92–203, such amounts for administrative costs as the Secretary determines to be necessary for effective operation of the supplemental nutrition assistance program, as well as to permit each
State to retain 35 percent of the value of all funds or allotments
recovered or collected pursuant to sections 6(b) and 13(c) and 20
percent of the value of any other funds or allotments recovered or
collected, except the value of funds or allotments recovered or collected that arise from an error of a State agency. The officials responsible for making determinations of ineligibility under this Act
shall not receive or benefit from revenues retained by the State
under the provisions of this subsection.
(b) WORK SUPPLEMENTATION OR SUPPORT PROGRAM.—
(1) DEFINITION OF WORK SUPPLEMENTATION OR SUPPORT
PROGRAM.—In this subsection, the term ‘‘work supplementation
or support program’’ means a program under which, as determined by the Secretary, public assistance (including any benefits provided under a program established by the State and the
supplemental nutrition assistance program) is provided to an
employer to be used for hiring and employing a public assistance recipient who was not employed by the employer at the
time the public assistance recipient entered the program.
(2) PROGRAM.—A State agency may elect to use an amount
equal to the allotment that would otherwise be issued to a
household under the supplemental nutrition assistance program, but for the operation of this subsection, for the purpose
of subsidizing or supporting a job under a work supplementation or support program established by the State.
(3) PROCEDURE.—If a State agency makes an election
under paragraph (2) and identifies each household that participates in the supplemental nutrition assistance program that
contains an individual who is participating in the work supplementation or support program—
(A) the Secretary shall pay to the State agency an
amount equal to the value of the allotment that the household would be eligible to receive but for the operation of
this subsection;
(B) the State agency shall expend the amount received
under subparagraph (A) in accordance with the work supplementation or support program in lieu of providing the
allotment that the household would receive but for the operation of this subsection;
(C) for purposes of—
(i) sections 5 and 8(a), the amount received under
this subsection shall be excluded from household income and resources; and
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(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an allotment provided to the household; and
(D) the household shall not receive an allotment from
the State agency for the period during which the member
continues to participate in the work supplementation or
support program.
(4) OTHER WORK REQUIREMENTS.—No individual shall be
excused, by reason of the fact that a State has a work supplementation or support program, from any work requirement
under section 6(d), except during the periods in which the individual is employed under the work supplementation or support
program.
(5) LENGTH OF PARTICIPATION.—A State agency shall provide a description of how the public assistance recipients in the
program shall, within a specific period of time, be moved from
supplemented or supported employment to employment that is
not supplemented or supported.
(6) DISPLACEMENT.—A work supplementation or support
program shall not displace the employment of individuals who
are not supplemented or supported.
(c) QUALITY CONTROL SYSTEM.— 29
(1) IN GENERAL.—
(A) SYSTEM.—
(i) IN GENERAL.—In carrying out the supplemental
nutrition assistance program, the Secretary shall carry
out a system that enhances payment accuracy and improves administration by establishing fiscal incentives
that require State agencies with high payment error
rates to share in the cost of payment error.
(ii) TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.—The Secretary shall set the tolerance level for
excluding small errors for the purposes of this subsection—
(I) for fiscal year 2014, at an amount not
greater than $37; and
(II) for each fiscal year thereafter, the amount
specified in subclause (I) adjusted by the percentage by which the thrifty food plan is adjusted
under section 3(u)(4) between June 30, 2013, and
June 30 of the immediately preceding fiscal year.
(B) ADJUSTMENT OF FEDERAL SHARE OF ADMINISTRATIVE COSTS FOR FISCAL YEARS BEFORE FISCAL YEAR 2003.—
(i) IN GENERAL.—Subject to clause (ii), with respect to any fiscal year before fiscal year 2003, the
Secretary shall adjust a State agency’s federally funded share of administrative costs under subsection (a),
other than the costs already shared in excess of 50
percent under the proviso in the first sentence of sub29 Sec. 4118(e) of the Farm Security and Rural Investment Act of 2002 (P.L. 107–171; 116
Stat. 321; May 13, 2002) provides that the amendments made by that section shall not apply
with respect to any sanction, appeal, new investment agreement, or other action by the Secretary of Agriculture or a State agency that is based on a payment error rate calculated for any
fiscal year before fiscal year 2003.

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section (a) or under subsection (g), by increasing that
share of all such administrative costs by 1 percentage
point to a maximum of 60 percent of all such administrative costs for each full 1⁄10 of a percentage point by
which the payment error rate is less than 6 percent.
(ii) LIMITATION.—Only States with a rate of invalid decisions in denying eligibility that is less than
a nationwide percentage that the Secretary determines to be reasonable shall be entitled to the adjustment under clause (i).
(C) ESTABLISHMENT OF LIABILITY AMOUNT FOR FISCAL
YEAR 2003 AND THEREAFTER.—With respect to fiscal year
2004 and any fiscal year thereafter for which the Secretary
determines that, for the second or subsequent consecutive
fiscal year, a 95 percent statistical probability exists that
the payment error rate of a State agency exceeds 105 percent of the national performance measure for payment
error rates announced under paragraph (6), the Secretary
shall establish an amount for which the State agency may
be liable (referred to in this paragraph as the ‘‘liability
amount’’) that is equal to the product obtained by multiplying—
(i) the value of all allotments issued by the State
agency in the fiscal year;
(ii) the difference between—
(I) the payment error rate of the State agency;
and
(II) 6 percent; and
(iii) 10 percent.
(D) AUTHORITY OF SECRETARY WITH RESPECT TO LIABILITY AMOUNT.—With respect to the liability amount established for a State agency under subparagraph (C) for any
fiscal year, the Secretary shall—
(i)
(I) require that a portion, not to exceed 50 percent, of the liability amount established for the fiscal
year be used by the State agency for new investment,
approved by the Secretary, to improve administration
by the State agency of the supplemental nutrition assistance program (referred to in this paragraph as the
‘‘new investment amount’’), which new investment
amount shall not be matched by Federal funds;
(II) designate a portion, not to exceed 50 percent,
of the amount established for the fiscal year for payment to the Secretary in accordance with subparagraph (E) (referred to in this paragraph as the ‘‘at-risk
amount’’); or
(III) take any combination of the actions described
in subclauses (I) and (II); or
(ii) make the determinations described in clause
(i) and enter into a settlement with the State agency,
only with respect to any new investment amount, before the end of the fiscal year in which the liability
amount is determined under subparagraph (C).
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FOOD AND NUTRITION ACT OF 2008
(E)

PAYMENT

OF

AT-RISK

AMOUNT

1–98
FOR

CERTAIN

STATES.—

(i) IN GENERAL.—A State agency shall pay to the
Secretary the at-risk amount designated under subparagraph (D)(i)(II) for any fiscal year in accordance
with clause (ii), if, with respect to the immediately following fiscal year, a liability amount has been established for the State agency under subparagraph (C).
(ii) METHOD OF PAYMENT OF AT-RISK AMOUNT.—
(I) REMISSION TO THE SECRETARY.—In the case
of a State agency required to pay an at-risk
amount under clause (i), as soon as practicable
after completion of all administrative and judicial
reviews with respect to that requirement to pay,
the chief executive officer of the State shall remit
to the Secretary the at-risk amount required to be
paid.
(II) ALTERNATIVE METHOD OF COLLECTION.—
(aa) IN GENERAL.—If the chief executive
officer of the State fails to make the payment
under subclause (I) within a reasonable period
of time determined by the Secretary, the Secretary may reduce any amount due to the
State agency under any other provision of this
section by the amount required to be paid
under clause (i).
(bb) ACCRUAL OF INTEREST.—During any
period of time determined by the Secretary
under item (aa), interest on the payment
under subclause (I) shall not accrue under
section 13(a)(2).
(F) USE OF PORTION OF LIABILITY AMOUNT FOR NEW INVESTMENT.—
(i) REDUCTION OF OTHER AMOUNTS DUE TO STATE
AGENCY.—In the case of a State agency that fails to
comply with a requirement for new investment under
subparagraph (D)(i)(I) or clause (iii)(I), the Secretary
may reduce any amount due to the State agency under
any other provision of this section by the portion of the
liability amount that has not been used in accordance
with that requirement.
(ii) EFFECT OF STATE AGENCY’S WHOLLY PREVAILING ON APPEAL.—If a State agency begins required
new investment under subparagraph (D)(i)(I), the
State agency appeals the liability amount of the State
agency, and the determination by the Secretary of the
liability amount is reduced to $0 on administrative or
judicial review, the Secretary shall pay to the State
agency an amount equal to 50 percent of the new investment amount that was included in the liability
amount subject to the appeal.
(iii) EFFECT OF SECRETARY’S WHOLLY PREVAILING
ON APPEAL.—If a State agency does not begin required
new investment under subparagraph (D)(i)(I), the
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State agency appeals the liability amount of the State
agency, and the determination by the Secretary of the
liability amount is wholly upheld on administrative or
judicial review, the Secretary shall—
(I) require all or any portion of the new investment amount to be used by the State agency
for new investment, approved by the Secretary, to
improve administration by the State agency of the
supplemental nutrition assistance program, which
amount shall not be matched by Federal funds;
and
(II) require payment of any remaining portion
of the new investment amount in accordance with
subparagraph (E)(ii).
(iv) EFFECT OF NEITHER PARTY’S WHOLLY PREVAILING ON APPEAL.—The Secretary shall promulgate
regulations regarding obligations of the Secretary and
the State agency in a case in which the State agency
appeals the liability amount of the State agency and
neither the Secretary nor the State agency wholly prevails.
(G) CORRECTIVE ACTION PLANS.—The Secretary shall
foster management improvements by the States by requiring State agencies, other than State agencies with payment error rates of less than 6 percent, to develop and implement corrective action plans to reduce payment errors.
(2) As used in this section—
(A) the term ‘‘payment error rate’’ means the sum of the
point estimates of an overpayment error rate and an underpayment error rate determined by the Secretary from data collected in a probability sample of participating households;
(B) the term ‘‘overpayment error rate’’ means the percentage of the value of all allotments issued in a fiscal year by a
State agency that are either—
(i) issued to households that fail to meet basic program eligibility requirements; or
(ii) overissued to eligible households; and
(C) the term ‘‘underpayment error rate’’ means the ratio of
the value of allotments underissued to recipient households to
the total value of allotments issued in a fiscal year by a State
agency.
(3) The following errors may be measured for management
purposes but shall not be included in the payment error rate:
(A) Any errors resulting in the application of new regulations promulgated under this Act during the first 120 days
from the required implementation date for such regulations.
(B) Errors resulting from the use by a State agency of correctly processed information concerning households or individuals received from Federal agencies or from actions based on
policy information approved or disseminated, in writing, by the
Secretary or the Secretary’s designee.
(4) REPORTING REQUIREMENTS.—The Secretary may require a State agency to report any factors that the Secretary
considers necessary to determine a State agency’s payment
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error rate, liability amount or new investment amount under
paragraph (1), or performance under the performance measures under subsection (d). If a State agency fails to meet the
reporting requirements established by the Secretary, the Secretary shall base the determination on all pertinent information available to the Secretary.
(5) PROCEDURES.—To facilitate the implementation of this
subsection, each State agency shall expeditiously submit to the
Secretary data concerning the operations of the State agency
in each fiscal year sufficient for the Secretary to establish the
State agency’s payment error rate, liability amount or new investment amount under paragraph (1), or performance under
the performance measures under subsection (d). The Secretary
shall initiate efforts to collect the amount owed by the State
agency as a claim established under paragraph (1) for a fiscal
year, subject to the conclusion of any formal or informal appeal
procedure and administrative or judicial review under section
14 (as provided for in paragraph (7)), before the end of the fiscal year following such fiscal year.
(6) NATIONAL PERFORMANCE MEASURE FOR PAYMENT ERROR
RATES.—
(A) ANNOUNCEMENT.—At the time the Secretary
makes the notification to State agencies of their error
rates, the Secretary shall also announce a national performance measure that shall be the sum of the products of
each State agency’s error rate as developed for the notifications under paragraph (8) times that State agency’s proportion of the total value of national allotments issued for
the fiscal year using the most recent issuance data available at the time of the notifications issued pursuant to
paragraph (8).
(B) USE OF ALTERNATIVE MEASURE OF STATE ERROR.—
Where a State fails to meet reporting requirements pursuant to paragraph (4), the Secretary may use another measure of a State’s error developed pursuant to paragraph (8),
to develop the national performance measure.
(C) USE OF NATIONAL PERFORMANCE MEASURE.—The
announced national performance measure shall be used in
determining the liability amount of a State under paragraph (1)(C) for the fiscal year whose error rates are being
announced under paragraph (8).
(D) NO ADMINISTRATIVE OR JUDICIAL REVIEW.—The national performance measure announced under this paragraph shall not be subject to administrative or judicial review.
(7) ADMINISTRATIVE AND JUDICIAL REVIEW.—
(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), if the Secretary asserts a financial
claim against or establishes a liability amount with respect
to a State agency under paragraph (1), the State may seek
administrative and judicial review of the action pursuant
to section 14.
(B) DETERMINATION OF PAYMENT ERROR RATE.—With
respect to any fiscal year, a determination of the payment
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error rate of a State agency or a determination whether
the payment error rate exceeds 105 percent of the national
performance measure for payment error rates shall be subject to administrative or judicial review only if the Secretary establishes a liability amount with respect to the
fiscal year under paragraph (1)(C).
(C) AUTHORITY OF SECRETARY WITH RESPECT TO LIABILITY AMOUNT.—An action by the Secretary under subparagraph (D) or (F)(iii) of paragraph (1) shall not be subject
to administrative or judicial review.
(8)(A) This paragraph applies to the determination of whether
a payment is due by a State agency for a fiscal year under paragraph (1).
(B) Not later than the first May 31 after the end of the fiscal
year referred to in subparagraph (A), the case review and all arbitrations of State-Federal difference cases shall be completed.
(C) Not later than the first June 30 after the end of the fiscal
year referred to in subparagraph (A), the Secretary shall—
(i) determine final error rates, the national average payment error rate, and the amounts of payment claimed against
State agencies or liability amount established with respect to
State agencies;
(ii) notify State agencies of the payment claims or liability
amounts; and
(iii) provide a copy of the document providing notification
under clause (ii) to the chief executive officer and the legislature of the State.
(D) A State agency desiring to appeal a payment claim or liability amount determined under subparagraph (C) shall submit to
an administrative law judge—
(i) a notice of appeal, not later than 10 days after receiving
a notice of the claim or liability amount; and
(ii) evidence in support of the appeal of the State agency,
not later than 60 days after receiving a notice of the claim or
liability amount.
(E) Not later than 60 days after a State agency submits evidence in support of the appeal, the Secretary shall submit responsive evidence to the administrative law judge to the extent such
evidence exists.
(F) Not later than 30 days after the Secretary submits responsive evidence, the State agency shall submit rebuttal evidence to
the administrative law judge to the extent such evidence exists.
(G) The administrative law judge, after an evidentiary hearing,
shall decide the appeal—
(i) not later than 60 days after receipt of rebuttal evidence
submitted by the State agency; or
(ii) if the State agency does not submit rebuttal evidence,
not later than 90 days after the State agency submits the notice of appeal and evidence in support of the appeal.
(H) In considering a claim or liability amount under this paragraph, the administrative law judge shall consider all grounds for
denying the claim or liability amount, in whole or in part, including
the contention of a State agency that the claim or liability amount
should be waived, in whole or in part, for good cause.
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(I) The deadlines in subparagraphs (D), (E), (F), and (G) shall
be extended by the administrative law judge for cause shown.
(9) As used in this subsection, the term ‘‘good cause’’ includes—
(A) a natural disaster or civil disorder that adversely affects supplemental nutrition assistance program operations;
(B) a strike by employees of a State agency who are necessary for the determination of eligibility and processing of
case changes under the supplemental nutrition assistance program;
(C) a significant growth in the caseload under the supplemental nutrition assistance program in a State prior to or during a fiscal year, such as a 15 percent growth in caseload;
(D) a change in the supplemental nutrition assistance program or other Federal or State program that has a substantial
adverse impact on the management of the supplemental nutrition assistance program of a State; and
(E) a significant circumstance beyond the control of the
State agency.
(d) BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST
IMPROVED PERFORMANCE.—
(1) FISCAL YEARS 2003 AND 2004.—
(A) GUIDANCE.—With respect to fiscal years 2003 and
2004, the Secretary shall establish, in guidance issued to
State agencies not later than October 1, 2002—
(i) performance criteria relating to—
(I) actions taken to correct errors, reduce
rates of error, and improve eligibility determinations; and
(II) other indicators of effective administration
determined by the Secretary; and
(ii) standards for high and most improved performance to be used in awarding performance bonus
payments under subparagraph (B)(ii).
(B) PERFORMANCE BONUS PAYMENTS.—With respect to
each of fiscal years 2003 and 2004, the Secretary shall—
(i) measure the performance of each State agency
with respect to the criteria established under subparagraph (A)(i); and
(ii) subject to paragraph (3), award performance
bonus payments in the following fiscal year, in a total
amount of $48,000,000 for each fiscal year, to State
agencies that meet standards for high or most improved performance established by the Secretary
under subparagraph (A)(ii).
(2) FISCAL YEARS 2005 AND THEREAFTER.—
(A) REGULATIONS.—With respect to fiscal year 2005
and each fiscal year thereafter, the Secretary shall—
(i) establish, by regulation, performance criteria
relating to—
(I) actions taken to correct errors, reduce
rates of error, and improve eligibility determinations; and
(II) other indicators of effective administration
determined by the Secretary;
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(ii) establish, by regulation, standards for high
and most improved performance to be used in awarding performance bonus payments under subparagraph
(B)(ii); and
(iii) before issuing proposed regulations to carry
out clauses (i) and (ii), solicit ideas for performance
criteria and standards for high and most improved
performance from State agencies and organizations
that represent State interests.
(B) PERFORMANCE BONUS PAYMENTS.—With respect to
fiscal year 2005 and each fiscal year thereafter, the Secretary shall—
(i) measure the performance of each State agency
with respect to the criteria established under subparagraph (A)(i); and
(ii) subject to paragraph (3), award performance
bonus payments in the following fiscal year, in a total
amount of $48,000,000 for each fiscal year, to State
agencies that meet standards for high or most improved performance established by the Secretary
under subparagraph (A)(ii).
(3) PROHIBITION ON RECEIPT OF PERFORMANCE BONUS PAYMENTS.—A State agency shall not be eligible for a performance
bonus payment with respect to any fiscal year for which the
State agency has a liability amount established under subsection (c)(1)(C).
(4) PAYMENTS NOT SUBJECT TO JUDICIAL REVIEW.—A determination by the Secretary whether, and in what amount, to
award a performance bonus payment under this subsection
shall not be subject to administrative or judicial review.
(5) USE OF PERFORMANCE BONUS PAYMENTS.—A State
agency may use a performance bonus payment received under
this subsection only to carry out the program established under
this Act, including investments in—
(A) technology;
(B) improvements in administration and distribution;
and
(C) actions to prevent fraud, waste, and abuse.
(e) The Secretary and State agencies shall (1) require, as a condition of eligibility for participation in the supplemental nutrition
assistance program, that each household member furnish to the
State agency their social security account number (or numbers, if
they have more than one number), and (2) use such account numbers in the administration of the supplemental nutrition assistance
program. The Secretary and State agencies shall have access to the
information regarding individual supplemental nutrition assistance
program applicants and participants who receive benefits under
title XVI of the Social Security Act ø(42 U.S.C. 1381 et seq.)¿that
has been provided to the Commissioner of Social Security, but only
to the extent that the Secretary and the Commissioner of Social Security determine necessary for purposes of determining or auditing
a household’s eligibility to receive assistance or the amount thereof
under the supplemental nutrition assistance program, or verifying
information related thereto.
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(f) Notwithstanding any other provision of law, counsel may be
employed and counsel fees, court costs, bail, and other expenses incidental to the defense of officers and employees of the Department
of Agriculture may be paid in judicial or administrative proceedings
to which such officers and employees have been made parties and
that arise directly out of their performance of duties under this Act.
(g) COST SHARING FOR COMPUTERIZATION.—
(1) IN GENERAL.—Except as provided in paragraphs (2) and
(3), the Secretary is authorized to pay to each State agency the
amount provided under subsection (a)(6) for the costs incurred
by the State agency in the planning, design, development, or
installation of 1 or more automatic data processing and information retrieval systems that the Secretary determines—
(A) would assist in meeting the requirements of this
Act;
(B) meet such conditions as the Secretary prescribes;
(C) are likely to provide more efficient and effective
administration of the supplemental nutrition assistance
program;
(D) would be compatible with other systems used in
the administration of State programs, including the program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.);
(E) would be tested adequately before and after implementation, including through pilot projects in limited
areas for major systems changes as determined under
rules promulgated by the Secretary, data from which shall
be thoroughly evaluated before the Secretary approves the
system to be implemented more broadly; and
(F) would be operated in accordance with an adequate
plan for—
(i) continuous updating to reflect changed policy
and circumstances; and
(ii) testing the effect of the system on access for eligible households and on payment accuracy.
(2) LIMITATION.—The Secretary shall not make payments
to a State agency under paragraph (1) to the extent that the
State agency—
(A) is reimbursed for the costs under any other Federal program; or
(B) uses the systems for purposes not connected with
the supplemental nutrition assistance program.
(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, to remain available for 24 months, from
funds made available for each fiscal year under section
18(a)(1), $90,000,000 for each fiscal year.
(B) ALLOCATION.—Funds made available under subparagraph (A) shall be made available to and reallocated
among State agencies under a reasonable formula that—
(i) is determined and adjusted by the Secretary;
and
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(ii) takes into account the number of individuals
who are not exempt from the work requirement under
section 6(o).
(C) REALLOCATION.—
(i) IN GENERAL.—If a State agency will not expend
all of the funds allocated to the State agency for a fiscal year under subparagraph (B), the Secretary shall
reallocate the unexpended funds to other States (during the fiscal year or the subsequent fiscal year) as the
Secretary considers appropriate and equitable.
(ii) TIMING.—The Secretary shall collect such information as the Secretary determines to be necessary
about the expenditures and anticipated expenditures
by the State agencies of the funds initially allocated to
the State agencies under subparagraph (A) to make
reallocations of unexpended funds under clause (i)
within a timeframe that allows each State agency to
which funds are reallocated at least 270 days to expend the reallocated funds.
(iii) OPPORTUNITY.—The Secretary shall ensure
that all State agencies have an opportunity to obtain
reallocated funds.
(D) MINIMUM ALLOCATION.—Notwithstanding subparagraph (B), the Secretary shall ensure that each State agency operating an employment and training program shall
receive not less than $50,000 for each fiscal year.
(E) ADDITIONAL ALLOCATIONS FOR STATES THAT ENSURE
AVAILABILITY OF WORK OPPORTUNITIES.—
(i) IN GENERAL.—In addition to the allocations
under subparagraph (A), from funds made available
under section 18(a)(1), the Secretary shall allocate not
more than $20,000,000 for each fiscal year to reimburse a State agency that is eligible under clause (ii)
for the costs incurred in serving members of households receiving supplemental nutrition assistance program benefits who—
(I) are not eligible for an exception under section 6(o)(3); and
(II) are placed in and comply with a program
described in subparagraph (B) or (C) of section
6(o)(2).
(ii) ELIGIBILITY.—To be eligible for an additional
allocation under clause (i), a State agency shall make
and comply with a commitment to offer a position in
a program described in subparagraph (B) or (C) of section 6(o)(2) to each applicant or recipient who—
(I) is in the last month of the 3-month period
described in section 6(o)(2);
(II) is not eligible for an exception under section 6(o)(3);
(III) is not eligible for a waiver under section
6(o)(4); and
(IV) is not exempt under section 6(o)(6).
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(F) PILOT PROJECTS TO REDUCE DEPENDENCY AND INCREASE WORK REQUIREMENTS AND WORK EFFORT UNDER
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
(i) PILOT PROJECTS REQUIRED.—
(I) IN GENERAL.—The Secretary shall carry
out pilot projects under which State agencies shall
enter into cooperative agreements with the Secretary to develop and test methods, including operating work programs with certain features comparable to the program of block grants to States
for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), for employment
and training programs and services to raise the
number of work registrants under section 6(d) of
this Act who obtain unsubsidized employment, increase the earned income of the registrants, and
reduce the reliance of the registrants on public assistance, so as to reduce the need for supplemental nutrition assistance benefits.
(II) REQUIREMENTS.—Pilot projects shall—
(aa) meet such terms and conditions as
the Secretary considers to be appropriate; and
(bb) except as otherwise provided in this
subparagraph, be in accordance with the requirements of sections 6(d) and 20.
(ii) SELECTION CRITERIA.—
(I) IN GENERAL.—The Secretary shall select
pilot projects under this subparagraph in accordance with the criteria established under this
clause and additional criteria established by the
Secretary.
(II) QUALIFYING CRITERIA.—To be eligible to
participate in a pilot project, a State agency
shall—
(aa) agree to participate in the evaluation
described in clause (vii), including providing
evidence that the State has a robust data collection system for program administration
and cooperating to make available State data
on the employment activities and post-participation employment, earnings, and public benefit receipt of participants to ensure proper
and timely evaluation;
(bb) commit to collaborate with the State
workforce board and other job training programs in the State and local area; and
(cc) commit to maintain at least the
amount of State funding for employment and
training programs and services under paragraphs (2) and (3) and under section 20 as the
State expended for fiscal year 2013.
(III) SELECTION CRITERIA.—In selecting pilot
projects, the Secretary shall—
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(aa) consider the degree to which the pilot
project would enhance existing employment
and training programs in the State;
(bb) consider the degree to which the pilot
project would enhance the employment and
earnings of program participants;
(cc) consider whether there is evidence
that the pilot project could be replicated easily
by other States or political subdivisions;
(dd) consider whether the State agency
has a demonstrated capacity to operate high
quality employment and training programs;
and
(ee) ensure the pilot projects, when considered as a group, test a range of strategies,
including strategies that—
(AA) target individuals with low
skills or limited work experience, individuals subject to the requirements under
section 6(o), and individuals who are
working;
(BB) are located in a range of geographic areas and States, including rural
and urban areas;
(CC) emphasize education and training, rehabilitative services for individuals
with barriers to employment, rapid attachment to employment, and mixed
strategies; and
(DD) test programs that assign work
registrants to mandatory and voluntary
participation in employment and training
activities.
(iii) ACCOUNTABILITY.—
(I) IN GENERAL.—The Secretary shall establish and implement a process to terminate a pilot
project for which the State has failed to meet the
criteria described in clause (ii) or other criteria established by the Secretary.
(II) TIMING.—The process shall include a reasonable time period, not to exceed 180 days, for
State agencies found noncompliant to correct the
noncompliance.
(iv) EMPLOYMENT AND TRAINING ACTIVITIES.—Allowable programs and services carried out under this
subparagraph shall include those programs and services authorized under this Act and employment and
training activities authorized under the program of
block grants to States for temporary assistance for
needy families established under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.), including:
(I) Employment in the public or private sector
that is not subsidized by any public program.
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(II) Employment in the private sector for
which the employer receives a subsidy from public
funds to offset all or a part of the wages and costs
of employing an adult.
(III) Employment in the public sector for
which the employer receives a subsidy from public
funds to offset all or a part of the wages and costs
of employing an adult.
(IV) A work activity that—
(aa) is performed in return for public benefits;
(bb) provides an adult with an opportunity to acquire the general skills, knowledge, and work habits necessary to obtain employment;
(cc) is designed to improve the employability of those who cannot find unsubsidized
employment; and
(dd) is supervised by an employer, work
site sponsor, or other responsible party on an
ongoing basis.
(V) Training in the public or private sector
that—
(aa) is given to a paid employee while the
employee is engaged in productive work; and
(bb) provides knowledge and skills essential to the full and adequate performance of
the job.
(VI) Job search, obtaining employment, or
preparation to seek or obtain employment, including—
(aa) life skills training;
(bb) substance abuse treatment or mental
health treatment, determined to be necessary
and documented by a qualified medical, substance abuse, or mental health professional;
and
(cc) rehabilitation activities, supervised
by a public agency or other responsible party
on an ongoing basis.
(VII) Structured programs and embedded activities—
(aa) in which adults perform work for the
direct benefit of the community under the
auspices of public or nonprofit organizations;
(bb) that are limited to projects that serve
useful community purposes in fields such as
health, social service, environmental protection, education, urban and rural redevelopment, welfare, recreation, public facilities,
public safety, and child care;
(cc) that are designed to improve the employability of adults not otherwise able to obtain unsubsidized employment;
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(dd) that are supervised on an ongoing
basis; and
(ee) with respect to which a State agency
takes into account, to the maximum extent
practicable, the prior training, experience, and
skills of a recipient in making appropriate
community service assignments.
(VIII) Career and technical training programs
that are—
(aa) directly related to the preparation of
adults for employment in current or emerging
occupations; and
(bb) supervised on an ongoing basis.
(IX) Training or education for job skills that
are—
(aa) required by an employer to provide
an adult with the ability to obtain employment or to advance or adapt to the changing
demands of the workplace; and
(bb) supervised on an ongoing basis.
(X) Education that is—
(aa) related to a specific occupation, job,
or job offer; and
(bb) supervised on an ongoing basis.
(XI) In the case of an adult who has not completed secondary school or received a certificate of
general equivalence, regular attendance that is—
(aa) in accordance with the requirements
of the secondary school or course of study, at
a secondary school or in a course of study
leading to a certificate of general equivalence;
and
(bb) supervised on an ongoing basis.
(XII) Providing child care to enable another
recipient of public benefits to participate in a community service program that—
(aa) does not provide compensation for
the community service;
(bb) is a structured program designed to
improve the employability of adults who participate in the program; and
(cc) is supervised on an ongoing basis.
(v) SANCTIONS.—Subject to clause (vi), no work
registrant shall be eligible to participate in the supplemental nutrition assistance program if the individual
refuses without good cause to participate in an employment and training program under this subparagraph, to the extent required by the State agency.
(vi) STANDARDS.—
(I) IN GENERAL.—Employment and training
activities under this subparagraph shall be considered to be carried out under section 6(d), including
for the purpose of satisfying any conditions of participation and duration of ineligibility.
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(II) STANDARDS FOR CERTAIN EMPLOYMENT ACTIVITIES.—The Secretary shall establish standards
for employment activities described in subclauses
(I), (II), and (III) of clause (iv) that ensure that
failure to work for reasons beyond the control of
an individual, such as involuntary reduction in
hours of employment, shall not result in ineligibility.
(III) PARTICIPATION IN OTHER PROGRAMS.—Before assigning a work registrant to mandatory employment and training activities, a State agency
shall—
(aa) assess whether the work registrant is
participating in substantial employment and
training activities outside of the pilot project
that are expected to result in the work registrant gaining increased skills, training,
work, or experience consistent with the objectives of the pilot project; and
(bb) if determined to be acceptable, count
hours engaged in the activities toward any
minimum participation requirement.
(vii) EVALUATION AND REPORTING.—
(I) INDEPENDENT EVALUATION.—
(aa) IN GENERAL.—The Secretary shall,
under such terms and conditions as the Secretary determines to be appropriate, conduct
for each State agency that enters into a cooperative agreement under clause (i) an independent longitudinal evaluation of each pilot
project of the State agency under this subparagraph, with results reported not less frequently than in consecutive 12-month increments.
(bb) PURPOSE.—The purpose of the independent evaluation shall be to measure the
impact of employment and training programs
and services provided by each State agency
under the pilot projects on the ability of
adults in each pilot project target population
to find and retain employment that leads to
increased household income and reduced reliance on public assistance, as well as other
measures of household well-being, compared
to what would have occurred in the absence of
the pilot project.
(cc) METHODOLOGY.—The independent
evaluation shall use valid statistical methods
that can determine, for each pilot project, the
difference, if any, between supplemental nutrition assistance and other public benefit receipt expenditures, employment, earnings and
other impacts as determined by the Secretary—
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(AA) as a result of the employment
and training programs and services provided by the State agency under the pilot
project; as compared to
(BB) a control group that is not subject to the employment and training programs and services provided by the State
agency under the pilot project.
(II) REPORTING.—Not later than December 31,
2015, and each December 31 thereafter until the
completion of the last evaluation under subclause
(I), the Secretary shall submit to the Committee
on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate and share broadly, including by posting on the Internet website of the Department of Agriculture, a report that includes a
description of—
(aa) the status of each pilot project carried out under this subparagraph;
(bb) the results of the evaluation completed during the previous fiscal year;
(cc) to the maximum extent practicable,
baseline information relevant to the stated
goals and desired outcomes of the pilot
project;
(dd) the employment and training programs and services each State tested under
the pilot, including—
(AA) the system of the State for assessing the ability of work registrants to
participate in and meet the requirements
of employment and training activities and
assigning work registrants to appropriate
activities; and
(BB) the employment and training
activities and services provided under the
pilot;
(ee) the impact of the employment and
training programs and services on appropriate
employment, income, and public benefit receipt as well as other outcomes among households participating in the pilot project, relative to households not participating; and
(ff) the steps and funding necessary to incorporate into State employment and training
programs and services the components of the
pilot projects that demonstrate increased employment and earnings.
(viii) FUNDING.—
(I) IN GENERAL.—Subject to subclause (II),
from amounts made available under section
18(a)(1), the Secretary shall use to carry out this
subparagraph—
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(aa) for fiscal year 2014, $10,000,000; and
(bb) for fiscal year 2015, $190,000,000.
(II) LIMITATIONS.—
(aa) IN GENERAL.—The Secretary shall
not fund more than 10 pilot projects under
this subparagraph.
(bb) DURATION.—Each pilot project shall
be in effect for not more than 3 years.
(III) AVAILABILITY OF FUNDS.—Funds made
available under subclause (I) shall remain available through September 30, 2018.
(ix) USE OF FUNDS.—
(I) IN GENERAL.—Funds made available under
this subparagraph for pilot projects shall be used
only for—
(aa) pilot projects that comply with this
Act;
(bb) the program and administrative costs
of carrying out the pilot projects;
(cc) the costs incurred in developing systems and providing information and data for
the independent evaluations under clause
(vii); and
(dd) the costs of the evaluations under
clause (vii).
(II) MAINTENANCE OF EFFORT.—Funds made
available under this subparagraph shall be used
only to supplement, not to supplant, non-Federal
funds used for existing employment and training
activities or services.
(III) OTHER FUNDS.—In carrying out pilot
projects, States may contribute additional funds
obtained from other sources, including Federal,
State, or private funds, on the condition that the
use of the contributions is permissible under Federal law.
(2) If, in carrying out such program during such fiscal year, a
State agency incurs costs that exceed the amount allocated to the
State agency under paragraph (1), the Secretary shall pay such
State agency an amount equal to 50 per centum of such additional
costs, subject to the first limitation in paragraph (3), including the
costs for case management and casework to facilitate the transition
from economic dependency to self-sufficiency through work.
(3) The Secretary shall also reimburse each State agency in an
amount equal to 50 per centum of the total amount of payments
made or costs incurred by the State agency in connection with
transportation costs and other expenses reasonably necessary and
directly related to participation in an employment and training program under section 6(d)(4) or a pilot project under paragraph
(1)(F), except that the amount of the reimbursement for dependent
care expenses shall not exceed an amount equal to the payment
made under section 6(d)(4)(I)(i)(II) but not more than the applicable
local market rate, and such reimbursement shall not be made out
of funds allocated under paragraph (1).
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(4) Funds provided to a State agency under this subsection
may be used only for operating an employment and training program under section 6(d)(4) or a pilot project under paragraph
(1)(F), and may not be used for carrying out other provisions of this
Act.
(5) MONITORING.—
(A) IN GENERAL.—The Secretary shall monitor the employment and training programs carried out by State agencies under section 6(d)(4) and assess the effectiveness of
the programs in—
(i) preparing members of households participating
in the supplemental nutrition assistance program for
employment, including the acquisition of basic skills
necessary for employment; and
(ii) increasing the number of household members
who obtain and retain employment subsequent to participation in the employment and training programs.
(B) REPORTING MEASURES.—
(i) IN GENERAL.—The Secretary, in consultation
with the Secretary of Labor, shall develop State reporting measures that identify improvements in the
skills, training, education, or work experience of members of households participating in the supplemental
nutrition assistance program.
(ii) REQUIREMENTS.—Measures shall—
(I) be based on common measures of performance for Federal workforce training programs; and
(II) include additional indicators that reflect
the challenges facing the types of members of
households participating in the supplemental nutrition assistance program who participate in a
specific employment and training component.
(iii) STATE REQUIREMENTS.—The Secretary shall
require that each State employment and training plan
submitted under section 11(e)(19) identifies appropriate reporting measures for each proposed component that serves a threshold number of participants
determined by the Secretary of at least 100 people a
year.
(iv) INCLUSIONS.—Reporting measures described
in clause (iii) may include—
(I) the percentage and number of program
participants who received employment and training services and are in unsubsidized employment
subsequent to the receipt of those services;
(II) the percentage and number of program
participants who obtain a recognized credential,
including a registered apprenticeship, or a regular
secondary school diploma or its recognized equivalent, while participating in, or within 1 year after
receiving, employment and training services;
(III) the percentage and number of program
participants who are in an education or training
program that is intended to lead to a recognized
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credential, including a registered apprenticeship
or on-the-job training program, a regular secondary school diploma or its recognized equivalent, or unsubsidized employment;
(IV) subject to terms and conditions established by the Secretary, measures developed by
each State agency to assess the skills acquisition
of employment and training program participants
that reflect the goals of the specific employment
and training program components of the State
agency, which may include, at a minimum—
(aa) the percentage and number of program participants who are meeting program
requirements in each component of the education and training program of the State
agency;
(bb) the percentage and number of program participants who are gaining skills likely to lead to employment as measured
through testing, quantitative or qualitative
assessment, or other method; and
(cc) the percentage and number of program participants who do not comply with
employment and training requirements and
who are ineligible under section 6(b); and
(V) other indicators approved by the Secretary.
(C) OVERSIGHT OF STATE EMPLOYMENT AND TRAINING
ACTIVITIES.—The Secretary shall assess State employment
and training programs on a periodic basis to ensure—
(i) compliance with Federal employment and
training program rules and regulations;
(ii) that program activities are appropriate to
meet the needs of the individuals referred by the State
agency to an employment and training program component;
(iii) that reporting measures are appropriate to
identify improvements in skills, training, work and experience for participants in an employment and training program component; and
(iv) for States receiving additional allocations
under paragraph (1)(E), any information the Secretary
may require to evaluate the compliance of the State
agency with paragraph (1), which may include—
(I) a report for each fiscal year of the number
of individuals in the State who meet the conditions of paragraph (1)(E)(ii), the number of individuals the State agency offers a position in a program described in subparagraph (B) or (C) of section 6(o)(2), and the number who participate in
such a program;
(II) a description of the types of employment
and training programs the State agency uses to
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comply with paragraph (1)(E) and the availability
of those programs throughout the State; and
(III) any additional information the Secretary
determines to be appropriate.
(D) STATE REPORT.—Each State agency shall annually
prepare and submit to the Secretary a report on the State
employment and training program that includes, using
measures identified under subparagraph (B), the numbers
of supplemental nutrition assistance program participants
who have gained skills, training, work, or experience that
will increase the ability of the participants to obtain regular employment.
(E) MODIFICATIONS TO THE STATE EMPLOYMENT AND
TRAINING PLAN.—Subject to terms and conditions established by the Secretary, if the Secretary determines that
the performance of a State agency with respect to employment and training outcomes is inadequate, the Secretary
may require the State agency to make modifications to the
State employment and training plan to improve the outcomes.
(F) PERIODIC EVALUATION.—Subject to terms and conditions established by the Secretary, not later than October 1, 2016, and not less frequently than once every 5
years thereafter, the Secretary shall conduct a study to review existing practice and research to identify employment
and training program components and practices that—
(i) effectively assist members of households participating in the supplemental nutrition assistance
program in gaining skills, training, work, or experience that will increase the ability of the participants
to obtain regular employment; and
(ii) are best integrated with statewide workforce
development systems.
(i)(1) The Department of Agriculture may use quality control
information made available under this section to determine which
project areas have payment error rates (as defined in subsection
(d)(1)) that impair the integrity of the supplemental nutrition assistance program.
(2) The Secretary may require a State agency to carry out new
or modified procedures for the certification of households in areas
identified under paragraph (1) if the Secretary determines such
procedures would improve the integrity of the supplemental nutrition assistance program and be cost effective.
(j) Not later than 180 days after the date of the enactment of
the Hunger Prevention Act of 1988 øenacted on September 19,
1988¿, and annually thereafter, the Secretary shall publish instructional materials specifically designed to be used by the State agency to provide intensive training to State agency personnel who undertake the certification of households that include a member who
engages in farming.
(k) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.—
(1) DEFINITIONS.—In this subsection:
(A) AFDC PROGRAM.—The term ‘‘AFDC program’’
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dren established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq. (as in effect, with respect
to a State, during the base period for that State)).
(B) BASE PERIOD.—The term ‘‘base period’’ means the
period used to determine the amount of the State family
assistance grant for a State under section 403 of the Social
Security Act (42 U.S.C. 603).
(C) MEDICAID PROGRAM.—The term ‘‘medicaid program’’ means the program of medical assistance under a
State plan or under a waiver of the plan under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.).
(2) DETERMINATIONS OF AMOUNTS ATTRIBUTABLE TO BENEFITING PROGRAMS.—Not later than 180 days after the date of
enactment of this subsection, the Secretary of Health and
Human Services, in consultation with the Secretary of Agriculture and the States, shall, with respect to the base period
for each State, determine—
(A) the annualized amount the State received under
section 403(a)(3) of the Social Security Act (42 U.S.C.
603(a)(3) (as in effect during the base period)) for administrative costs common to determining the eligibility of individuals, families, and households eligible or applying for
the AFDC program and the supplemental nutrition assistance program, the AFDC program and the medicaid program, and the AFDC program, the supplemental nutrition
assistance program, and the medicaid program that were
allocated to the AFDC program; and
(B) the annualized amount the State would have received under section 403(a)(3) of the Social Security Act
(42 U.S.C. 603(a)(3) (as so in effect)), section 1903(a)(7) of
the Social Security Act (42 U.S.C. 1396b(a)(7) (as so in effect)), and subsection (a) of this section (as so in effect), for
administrative costs common to determining the eligibility
of individuals, families, and households eligible or applying
for the AFDC program and the supplemental nutrition assistance program, the AFDC program and the medicaid
program, and the AFDC program, the supplemental nutrition assistance program, and the medicaid program, if
those costs had been allocated equally among such programs for which the individual, family, or household was
eligible or applied for.
(3) REDUCTION IN PAYMENT.—
(A) IN GENERAL.—Notwithstanding any other provision
of this section, the Secretary shall reduce, for each fiscal
year, the amount paid under subsection (a) to each State
by an amount equal to the amount determined for the supplemental nutrition assistance program under paragraph
(2)(B). The Secretary shall, to the extent practicable, make
the reductions required by this paragraph on a quarterly
basis.
(B) APPLICATION.—If the Secretary of Health and
Human Services does not make the determinations required by paragraph (2) by September 30, 1999—
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(i) during the fiscal year in which the determinations are made, the Secretary shall reduce the amount
paid under subsection (a) to each State by an amount
equal to the sum of the amounts determined for the
supplemental nutrition assistance program under
paragraph (2)(B) for fiscal year 1999 through the fiscal
year during which the determinations are made; and
(ii) for each subsequent fiscal year, subparagraph
(A) applies.
(4) APPEAL OF DETERMINATIONS.—
(A) IN GENERAL.—Not later than 5 days after the date
on which the Secretary of Health and Human Services
makes any determination required by paragraph (2) with
respect to a State, the Secretary shall notify the chief executive officer of the State of the determination.
(B) REVIEW BY ADMINISTRATIVE LAW JUDGE.—
(i) IN GENERAL.—Not later than 60 days after the
date on which a State receives notice under subparagraph (A) of a determination, the State may appeal
the determination, in whole or in part, to an administrative law judge of the Department of Health and
Human Services by filing an appeal with the administrative law judge.
(ii) DOCUMENTATION.—The administrative law
judge shall consider an appeal filed by a State under
clause (i) on the basis of such documentation as the
State may submit and as the administrative law judge
may require to support the final decision of the administrative law judge.
(iii) REVIEW.—In deciding whether to uphold a determination, in whole or in part, the administrative
law judge shall conduct a thorough review of the
issues and take into account all relevant evidence.
(iv) DEADLINE.—Not later than 60 days after the
date on which the record is closed, the administrative
law judge shall—
(I) make a final decision with respect to an
appeal filed under clause (i); and
(II) notify the chief executive officer of the
State of the decision.
(C) REVIEW BY DEPARTMENTAL APPEALS BOARD.—
(i) IN GENERAL.—Not later than 30 days after the
date on which a State receives notice under subparagraph (B) of a final decision, the State may appeal the
decision, in whole or in part, to the Departmental Appeals Board established in the Department of Health
and Human Services (referred to in this paragraph as
the ‘‘Board’’) by filing an appeal with the Board.
(ii) REVIEW.—The Board shall review the decision
on the record.
(iii) DEADLINE.—Not later than 60 days after the
date on which the appeal is filed, the Board shall—
(I) make a final decision with respect to an
appeal filed under clause (i); and
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(II) notify the chief executive officer of the
State of the decision.
(D) JUDICIAL REVIEW.—The determinations of the Secretary of Health and Human Services under paragraph (2),
and a final decision of the administrative law judge or
Board under subparagraphs (B) and (C), respectively, shall
not be subject to judicial review.
(E) REDUCED PAYMENTS PENDING APPEAL.—The pendency of an appeal under this paragraph shall not affect the
requirement that the Secretary reduce payments in accordance with paragraph (3).
(5) ALLOCATION OF ADMINISTRATIVE COSTS.—
(A) IN GENERAL.—No funds or expenditures described
in subparagraph (B) may be used to pay for costs—
(i) eligible for reimbursement under subsection (a)
(or costs that would have been eligible for reimbursement but for this subsection); and
(ii) allocated for reimbursement to the supplemental nutrition assistance program under a plan submitted by a State to the Secretary of Health and
Human Services to allocate administrative costs for
public assistance programs.
(B) FUNDS AND EXPENDITURES.—Subparagraph (A) applies to—
(i) funds made available to carry out part A of
title IV, or title XX, of the Social Security Act (42
U.S.C. 601 et seq., 1397 et seq.);
(ii) expenditures made as qualified State expenditures (as defined in section 409(a)(7)(B) of that Act (42
U.S.C. 609(a)(7)(B)));
(iii) any other Federal funds (except funds provided under subsection (a)); and
(iv) any other State funds that are—
(I) expended as a condition of receiving Federal funds; or
(II) used to match Federal funds under a Federal program other than the supplemental nutrition assistance program.
RESEARCH, DEMONSTRATION, AND EVALUATIONS

SEC. 17. ø7 U.S.C. 2026¿ (a)(1) The Secretary may enter into
contracts with or make grants to public or private organizations or
agencies under this section to undertake research that will help improve the administration and effectiveness of the supplemental nutrition assistance program in delivering nutrition-related benefits.
The waiver authority of the Secretary under subsection (b) shall extend to all contracts and grants under this section.
(2) The Secretary may, on application, permit not more than
two State agencies to establish procedures that allow households
whose monthly supplemental nutrition assistance program benefits
do not exceed $20, at their option, to receive, in lieu of their supplemental nutrition assistance program benefits for the initial period
under section 8 and their regular allotment in following months,
and at intervals of up to 3 months thereafter, aggregate allotments
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not to exceed $60 and covering not more than 3 months’ benefits.
The allotments shall be provided in accordance with paragraphs (3)
and (9) of section 11(e) (except that no household shall begin to receive combined allotments under this section until it has complied
with all applicable verification requirements of section 11(e)(3)) and
(with respect to the first aggregate allotment so issued) within 40
days of the last benefit issuance.
(b)(1)(A) The Secretary may conduct on a trial basis, in one or
more areas of the United States, pilot or experimental projects designed to test program changes that might increase the efficiency
of the supplemental nutrition assistance program and improve the
delivery of supplemental nutrition assistance program benefits to
eligible households, and may waive any requirement of this Act to
the extent necessary for the project to be conducted.
(B) PROJECT REQUIREMENTS.—
(i) PROGRAM GOAL.—The Secretary may not conduct a project under subparagraph (A) unless—
(I) the project is consistent with the goal of
the supplemental nutrition assistance program of
providing food assistance to raise levels of nutrition among low-income individuals; and
(II) the project includes an evaluation to determine the effects of the project.
(ii) PERMISSIBLE PROJECTS.—The Secretary may
conduct a project under subparagraph (A) to—
(I) improve program administration;
(II) increase the self-sufficiency of supplemental nutrition assistance program recipients;
(III) test innovative welfare reform strategies;
or
(IV) allow greater conformity with the rules of
other programs than would be allowed but for this
paragraph.
(iii) RESTRICTIONS ON PERMISSIBLE PROJECTS.—If
the Secretary finds that a project under subparagraph
(A) would reduce benefits by more than 20 percent for
more than 5 percent of households in the area subject
to the project (not including any household whose benefits are reduced due to a failure to comply with work
or other conduct requirements), the project—
(I) may not include more than 15 percent of
the number of households in the State receiving
supplemental nutrition assistance program benefits; and
(II) shall continue for not more than 5 years
after the date of implementation, unless the Secretary approves an extension requested by the
State agency at any time.
(iv) IMPERMISSIBLE PROJECTS.—The Secretary may
not conduct a project under subparagraph (A) that—
(I) involves the payment of the value of an allotment in the form of cash or otherwise providing
benefits in a form not restricted to the purchase
of food, unless the project was approved prior to
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the date of enactment of this subparagraph øAugust 22, 1996¿;
(II) has the effect of substantially transferring
funds made available under this Act to services or
benefits provided primarily through another public assistance program, or using the funds for any
purpose other than the purchase of food, program
administration, or an employment or training program;
(III) is inconsistent with—
(aa) paragraphs (4) and (5) of section 3(n);
(bb) the last sentence of section 5(a), insofar as a waiver denies assistance to an otherwise eligible household or individual if the
household or individual has not failed to comply with any work, behavioral, or other conduct requirement under this or another program;
(cc) section 5(c)(2);
(dd) paragraph (2)(B), (4)(F)(i), or (4)(K) of
section 6(d);
(ee) section 8(b);
(ff) section 11(e)(2)(B);
(gg) the time standard under section
11(e)(3);
(hh) subsection (a), (c), (g), (h)(1)(F),
(h)(2), or (h)(3) of section 16;
(ii) this paragraph; or
(jj) subsection (a)(1) or (g)(1) of section 20;
(IV) modifies the operation of section 5 so as
to have the effect of—
(aa) increasing the shelter deduction to
households with no out-of-pocket housing
costs or housing costs that consume a low percentage of the household’s income; or
(bb) absolving a State from acting with
reasonable promptness on substantial reported changes in income or household size
(except that this subclause shall not apply
with regard to changes related to supplemental nutrition assistance program deductions);
(V) is not limited to a specific time period;
(VI) waives a provision of section 26; or
(VII) waives a provision of section 7(i).
(v) ADDITIONAL INCLUDED PROJECTS.—A pilot or
experimental project may include projects involving
the payment of the value of allotments or the average
value of allotments by household size in the form of
cash to eligible households all of whose members are
age sixty-five or over or any of whose members are entitled to supplemental security income benefits under
title XVI of the Social Security Act ø(42 U.S.C. 1381
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gram funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), the use of identification mechanisms that do not invade a household’s privacy, and the use of food checks or other voucher-type
forms in place of EBT cards.
(vi) CASH PAYMENT PILOT PROJECTS.—Subject to
the availability of appropriations under section 18(a),
any pilot or experimental project implemented under
this paragraph and operating as of October 1, 1981,
involving the payment of the value of allotments in
the form of cash to eligible households all of whose
members are either age sixty-five or over or entitled to
supplemental security income benefits under title XVI
of the Social Security Act ø(42 U.S.C. 1381 et seq.)¿
shall be continued if the State so requests.
(C)(i) No waiver or demonstration program shall be approved
under this Act after the date of enactment of this subparagraph
unless—
(I) any household whose food assistance is issued in a form
other than EBT cards has its allotment increased to the extent
necessary to compensate for any State or local sales tax that
may be collected in all or part of the area covered by the demonstration project, the tax on purchases of food by any such
household is waived, or the Secretary determines on the basis
of information provided by the State agency that the increase
is unnecessary on the basis of the limited nature of the items
subject to the State or local sales tax; and
(II) the State agency conducting the demonstration project
pays the cost of any increased allotments.
(ii) Clause (i) shall not apply if a waiver or demonstration
project already provides a household with assistance that exceeds
that which the household would otherwise be eligible to receive by
more than the estimated amount of any sales tax on the purchases
of food that would be collected from the household in the project
area in which the household resides.
(D) RESPONSE TO WAIVERS.—
(i) RESPONSE.—Not later than 60 days after the
date of receiving a request for a waiver under subparagraph (A), the Secretary shall provide a response
that—
(I) approves the waiver request;
(II) denies the waiver request and describes
any modification needed for approval of the waiver request;
(III) denies the waiver request and describes
the grounds for the denial; or
(IV) requests clarification of the waiver request.
(ii) FAILURE TO RESPOND.—If the Secretary does
not provide a response in accordance with clause (i),
the waiver shall be considered approved, unless the
approval is specifically prohibited by this Act.
(iii) NOTICE OF DENIAL.—On denial of a waiver request under clause (i)(III), the Secretary shall provide
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a copy of the waiver request and a description of the
reasons for the denial to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
(2) The Secretary shall, jointly with the Secretary of Labor, implement two pilot projects involving the performance of work in return for supplemental nutrition assistance program benefits in
each of the seven administrative regions of the Food and Nutrition
Service of the Department of Agriculture, such projects to be (A)
appropriately divided in each region between locations that are
urban and rural in characteristics and among locations selected to
provide a representative cross-section of political subdivisions in
the States and (B) submitted for approval prior to project implementation, together with the names of the agencies or organizations that will be engaged in such projects, to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate. Under such
pilot projects, any person who is subject to the work registration
requirements pursuant to section 6(d) of this Act, and is a member
of a household that does not have earned income equal to or exceeding the allotment to which the household is otherwise entitled
pursuant to section 8(a) of this Act, shall be ineligible to participate
in the supplemental nutrition assistance program as a member of
any household during any month in which such person refuses,
after not being offered employment in the private sector of the
economy for more than thirty days (ten days in at least one pilot
project area designated by the Secretary) after the initial registration for employment referred to in section 6(d)(1)(A)(i) of this Act,
to accept an offer of employment from a political subdivision or provider pursuant to a program carried out under title I of the Workforce Investment Act of 1998 ø(29 U.S.C. 2801 et seq.)¿, for which
employment compensation shall be paid in the form of the allotment to which the household is otherwise entitled pursuant to section 8(a) of this Act, with each hour of employment entitling the
household to a portion of the allotment equal in value to 100 per
centum of the Federal minimum hourly rate under the Fair Labor
Standards Act of 1938, as amended (29 U.S.C. 206(a)(1)); which
employment shall not, together with any other hours worked in any
other capacity by such person exceed forty hours a week; and which
employment shall not be used by the employer to fill a job opening
created by the action of such employer in laying off or terminating
the employment of any regular employee not supported under this
paragraph in anticipation of filling the vacancy so created by hiring
an employee or employees to be supported under this paragraph,
if all of the jobs supported under the program have been made
available to participants in the program before the political subdivision or provider providing the jobs extends an offer of employment under this paragraph, and if the political subdivision or provider, in employing the person, complies with the requirements of
Federal law that relate to the program. The Secretary and the Secretary of Labor shall jointly issue reports to the appropriate committees of Congress on the progress of such pilot projects no later
than six and twelve months following enactment of this Act
øAmendatory Act enacted on September 29, 1977.¿, shall issue inFebruary 7, 2014

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terim reports no later than October 1, 1979, October 1, 1980, and
March 30, 1981, shall issue a final report describing the results of
such pilot projects based upon their operation from their commencement through the fiscal year ending September 30, 1981, and
shall pay to the agencies or organizations operating such pilot
projects 50 per centum of all administrative costs involved in such
operation.
(3)(A) The Secretary may conduct demonstration projects to
test improved consistency or coordination between the supplemental nutrition assistance program employment and training program and the Job Opportunities and Basic Skills program under
title IV of the Social Security Act (42 U.S.C. 601 et seq.).
(B) Notwithstanding paragraph (1), the Secretary may, as part
of a project authorized under this paragraph, waive requirements
under section 6(d) to permit a State to operate an employment and
training program for supplemental nutrition assistance program recipients on the same terms and conditions under which the State
operates its Job Opportunities and Basic Skills program for recipients of aid to families with dependent children under part F of title
IV of the Social Security Act (42 U.S.C. 681 et seq.). Any work experience program conducted as part of the project shall be conducted in conformity with section 482(f) of such Act (42 U.S.C.
682(f)).
(C) A State seeking such a waiver shall provide assurances
that the resulting employment and training program shall meet
the requirements of subsections (a)(19) and (g) of section 402 of
such Act (42 U.S.C. 602) (but not including the provision of transitional benefits under clauses (ii) through (vii) of section
402(g)(1)(A)) and sections 481 through 487 of such Act (42 U.S.C.
681 through 687). Each reference to ‘‘aid to families with dependent
children’’ in such sections shall be deemed to be a reference to supplemental nutrition assistance program benefits for purposes of the
demonstration project.
(D) Notwithstanding the other provisions of this paragraph,
participation in an employment and training activity in which supplemental nutrition assistance program benefits are converted to
cash shall occur only with the consent of the participant.
(E) For the purposes of any project conducted under this paragraph, the provisions of this Act affecting the rights of recipients
may be waived to the extent necessary to conform to the provisions
of section 402, and sections 481 through 487, of the Social Security
Act.
(F) At least 60 days prior to granting final approval of a project
under this paragraph, the Secretary shall publish the terms and
conditions for any demonstration project conducted under the paragraph for public comment in the Federal Register and shall notify
the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(G) Waivers may be granted under this paragraph to conduct
projects at any one time in a total of up to 60 project areas (or
parts of project areas), as such areas are defined in regulations in
effect on January 1, 1990.
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(H) A waiver for a change in program rules may be granted
under this paragraph only for a demonstration project that has
been approved by the Secretary, that will be evaluated according
to criteria prescribed by the Secretary, and that will be in operation for no more than 4 years.
(I) The Secretary may not grant a waiver under this paragraph
on or after the date of enactment of this subparagraph øAug. 22,
1996¿. Any reference in this paragraph to a provision of title IV of
the Social Security Act shall be deemed to be a reference to such
provision as in effect on the day before such date.
(c) The Secretary shall develop and implement measures for
evaluating, on an annual or more frequent basis, the effectiveness
of the supplemental nutrition assistance program in achieving its
stated objectives, including, but not limited to, the program’s impact upon the nutritional and economic status of participating
households, the program’s impact upon all sectors of the agricultural economy, including farmers and ranchers, as well as retail
food stores, and the program’s relative fairness to households of different income levels, different age composition, different size, and
different regions of residence. Further, the Secretary shall, by way
of making contracts with or grants to public or private organizations or agencies, implement pilot programs to test various means
of measuring on a continuing basis the nutritional status of low income people, with special emphasis on people who are eligible for
supplemental nutrition assistance, in order to develop minimum
common criteria and methods for systematic nutrition monitoring
that could be applied on a nationwide basis. The locations of the
pilot programs shall be selected to provide a representative geographic and demographic cross-section of political subdivisions that
reflect natural usage patterns of health and nutritional services
and that contain high proportions of low income people. The Secretary shall report on the progress of these pilot programs on an
annual basis commencing on July 1, 1982, to the Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, together with
such recommendations as the Secretary deems appropriate.
(d) EMPLOYMENT INITIATIVES PROGRAM.—
(1) ELECTION TO PARTICIPATE.—
(A) IN GENERAL.—Subject to the other provisions of
this subsection, a State may elect to carry out an employment initiatives program under this subsection.
(B) REQUIREMENT.—A State shall be eligible to carry
out an employment initiatives program under this subsection only if not less than 50 percent of the households
in the State that received supplemental nutrition assistance program benefits during the summer of 1993 also received benefits under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) during the summer of 1993.
(2) PROCEDURE.—
(A) IN GENERAL.—A State that has elected to carry out
an employment initiatives program under paragraph (1)
may use amounts equal to the allotments that would otherwise be issued to a household under the supplemental
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nutrition assistance program, but for the operation of this
subsection, to provide cash benefits in lieu of the allotments to the household if the household is eligible under
paragraph (3).
(B) PAYMENT.—The Secretary shall pay to each State
that has elected to carry out an employment initiatives
program under paragraph (1) an amount equal to the
value of the allotment that each household participating in
the program in the State would be eligible to receive under
this Act but for the operation of this subsection.
(C) OTHER PROVISIONS.—For purposes of the supplemental nutrition assistance program (other than this subsection)—
(i) cash assistance under this subsection shall be
considered to be an allotment; and
(ii) each household receiving cash benefits under
this subsection shall not receive any other supplemental nutrition assistance program benefits during
the period for which the cash assistance is provided.
(D) ADDITIONAL PAYMENTS.—Each State that has elected to carry out an employment initiatives program under
paragraph (1) shall—
(i) increase the cash benefits provided to each
household participating in the program in the State
under this subsection to compensate for any State or
local sales tax that may be collected on purchases of
food by the household, unless the Secretary determines on the basis of information provided by the
State that the increase is unnecessary on the basis of
the limited nature of the items subject to the State or
local sales tax; and
(ii) pay the cost of any increase in cash benefits
required by clause (i).
(3) ELIGIBILITY.—A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household—
(A) has worked in unsubsidized employment for not
less than the preceding 90 days;
(B) has earned not less than $350 per month from the
employment referred to in subparagraph (A) for not less
than the preceding 90 days;
(C)(i) is receiving benefits under a State program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.); or
(ii) was receiving benefits under a State program funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) at the time the member first received
cash benefits under this subsection and is no longer eligible for the State program because of earned income;
(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
(E) elects to receive cash benefits in lieu of supplemental nutrition assistance program benefits under this
subsection.
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(4) EVALUATION.—A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the Secretary, shall determine the content of the evaluation.
(e) The Secretary shall conduct a study of the effects of reductions made in benefits provided under this Act pursuant to part 1
of subtitle A of title I of the Omnibus Budget Reconciliation Act of
1981, the Food Stamp and Commodity Distribution Amendments of
1981, the Food Stamp Act Amendments of 1982, and any other
laws enacted by the Ninety-seventh Congress which affect the supplemental nutrition assistance program. The study shall include a
study of the effect of retrospective accounting and periodic reporting procedures established under such Acts, including the impact
on benefit and administrative costs and on error rates and the degree to which eligible households are denied supplemental nutrition assistance program benefits for failure to file complete periodic
reports. The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an interim report
on the results of such study no later than February 1, 1984, and
a final report on the results of such study no later than March 1,
1985.
(f) In order to encourage States to plan, design, develop, and
implement a system for making supplemental nutrition assistance
program benefits available through the use of intelligent benefit
cards or other automated or electronic benefit delivery systems, the
Secretary may conduct one or more pilot or experimental projects,
subject to the restrictions imposed by subsection (b)(1) and section
7(f)(2), designed to test whether the use of such cards or systems
can enhance the efficiency and effectiveness of program operations
while ensuring that individuals receive correct benefit amounts on
a timely basis. Intelligent benefit cards developed under such a
demonstration project shall contain information, encoded on a computer chip embedded in a credit card medium, including the eligibility of the individual and the amount of benefits to which such
individual is entitled. Any other automated or electronic benefit delivery system developed under such a demonstration project shall
be able to use a plastic card to access such information from a data
file.
(g) In order to assess the effectiveness of the employment and
training programs established under section 6(d) in placing individuals into the work force and withdrawing such individuals from the
supplemental nutrition assistance program, the Secretary is authorized to carry out studies comparing the pre- and post-program
labor force participation, wage rates, family income, level of receipt
of supplemental nutrition assistance program and other transfer
payments, and other relevant information, for samples of participants in such employment and training programs as compared to
the appropriate control or comparison groups that did not participate in such programs. Such studies shall, to the maximum extent
possible—
(1) collect such data for up to 3 years after the individual
has completed the employment and training program; and
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(2) yield results that can be generalized to the national
program as a whole.
The results of such studies and reports shall be considered in developing or updating the performance standards required under
section 6.
(h) The Secretary shall conduct a sufficient number of demonstration projects to evaluate the effects, in both rural and urban
areas, of including in financial resources under section 5(g) the fair
market value of licensed vehicles to the extent the value of each
vehicle exceeds $4,500, but excluding the value of—
(1) any licensed vehicle that is used to produce earned income, necessary for transportation of an elderly or physically
disabled household member, or used as the household’s home;
and
(2) one licensed vehicle used to obtain, continue, or seek
employment (including travel to and from work), used to pursue employment-related education or training, or used to secure food or the benefits of the supplemental nutrition assistance program.
(i) The Secretary shall conduct, under such terms and conditions as the Secretary shall prescribe, for a period not to exceed 4
years, projects to test allowing not more than 11,000 eligible households, in the aggregate, to accumulate resources up to $10,000 each
(which shall be excluded from consideration as a resource) for later
expenditure for a purpose directly related to improving the education, training, or employability (including self-employment) of
household members, for the purchase of a home for the household,
for a change of the household’s residence, or for making major repairs to the household’s home.
(j) The Secretary shall use up to $4,000,000 of the funds provided in advance in appropriations Acts for projects authorized by
this section to conduct demonstration projects in which State or
local supplemental nutrition assistance program agencies test innovative ideas for working with State or local law enforcement agencies to investigate and prosecute benefit trafficking.
(k) PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION
PROMOTION IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
(1) IN GENERAL.—The Secretary shall carry out, under
such terms and conditions as the Secretary considers to be appropriate, pilot projects to develop and test methods—
(A) of using the supplemental nutrition assistance program to improve the dietary and health status of households eligible for or participating in the supplemental nutrition assistance program; and
(B) to reduce overweight, obesity (including childhood
obesity), and associated co-morbidities in the United
States.
(2) GRANTS.—
(A) IN GENERAL.—In carrying out this subsection, the
Secretary may enter into competitively awarded contracts
or cooperative agreements with, or provide grants to, public or private organizations or agencies (as defined by the
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Secretary), for use in accordance with projects that meet
the strategy goals of this subsection.
(B) APPLICATION.—To be eligible to receive a contract,
cooperative agreement, or grant under this paragraph, an
organization shall submit to the Secretary an application
at such time, in such manner, and containing such information as the Secretary may require.
(C) SELECTION CRITERIA.—Pilot projects shall be evaluated against publicly disseminated criteria that may include—
(i) identification of a low-income target audience
that corresponds to individuals living in households
with incomes at or below 185 percent of the poverty
level;
(ii) incorporation of a scientifically based strategy
that is designed to improve diet quality through more
healthful food purchases, preparation, or consumption;
(iii) a commitment to a pilot project that allows for
a rigorous outcome evaluation, including data collection;
(iv) strategies to improve the nutritional value of
food served during school hours and during afterschool hours;
(v) innovative ways to provide significant improvement to the health and wellness of children;
(vi) other criteria, as determined by the Secretary.
(D) USE OF FUNDS.—Funds provided under this paragraph shall not be used for any project that limits the use
of benefits under this Act.
(3) PROJECTS.—Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food
purchases by and healthier diets among households participating in the supplemental nutrition assistance program result
from projects that—
(A) increase the supplemental nutrition assistance
purchasing power of the participating households by providing increased supplemental nutrition assistance program benefit allotments to the participating households;
(B) increase access to farmers markets by participating households through the electronic redemption of
supplemental nutrition assistance program benefits at
farmers’ markets;
(C) provide incentives to authorized supplemental nutrition assistance program retailers to increase the availability of healthy foods to participating households;
(D) subject authorized supplemental nutrition assistance program retailers to stricter retailer requirements
with respect to carrying and stocking healthful foods;
(E) provide incentives at the point of purchase to encourage households participating in the supplemental nutrition assistance program to purchase fruits, vegetables,
or other healthful foods; or
(F) provide to participating households integrated communication and education programs, including the proviFebruary 7, 2014

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sion of funding for a portion of a school-based nutrition coordinator to implement a broad nutrition action plan and
parent nutrition education programs in elementary
schools, separately or in combination with pilot projects
carried out under subparagraphs (A) through (E).
(4) EVALUATION AND REPORTING.—
(A) EVALUATION.—
(i) INDEPENDENT EVALUATION.—
(I) IN GENERAL.—The Secretary shall provide
for an independent evaluation of projects selected
under this subsection that measures the impact of
the pilot program on health and nutrition as described in paragraph (1).
(II) REQUIREMENT.—The independent evaluation under subclause (I) shall use rigorous methodologies, particularly random assignment or
other methods that are capable of producing scientifically valid information regarding which activities are effective.
(ii) COSTS.—The Secretary may use funds provided to carry out this section to pay costs associated
with monitoring and evaluating each pilot project.
(B) REPORTING.—Not later than 90 days after the last
day of fiscal year 2009 and each fiscal year thereafter until
the completion of the last evaluation under subparagraph
(A), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes a description of—
(i) the status of each pilot project;
(ii) the results of the evaluation completed during
the previous fiscal year; and
(iii) to the maximum extent practicable—
(I) the impact of the pilot project on appropriate health, nutrition, and associated behavioral
outcomes among households participating in the
pilot project;
(II) baseline information relevant to the stated goals and desired outcomes of the pilot project;
and
(III) equivalent information about similar or
identical measures among control or comparison
groups that did not participate in the pilot project.
(C) PUBLIC DISSEMINATION.—In addition to the reporting requirements under subparagraph (B), evaluation results shall be shared broadly to inform policy makers,
service providers, other partners, and the public in order
to promote wide use of successful strategies.
(5) FUNDING.—
(A) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012.
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(B) MANDATORY FUNDING.—Out of any funds made
available under section 18, on October 1, 2008, the Secretary shall make available $20,000,000 to carry out a
project described in paragraph (3)(E), to remain available
until expended.
(l) COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.—
Subject to the requirements of this Act, including protections under
section 11(e)(8), States, State agencies, local agencies, institutions,
facilities such as data consortiums, and contractors participating in
programs authorized under this Act shall—
(1) cooperate with officials and contractors acting on behalf
of the Secretary in the conduct of evaluations and studies
under this Act; and
(2) submit information at such time and in such manner
as the Secretary may require.
AUTHORIZATION 4030FOR APPROPRIATIONS

SEC. 18. ø7 U.S.C. 2027¿ (a)(1) To carry out this Act, there are
authorized to be appropriated such sums as are necessary for each
of fiscal years 2008 through 2018. Not to exceed one-fourth of 1 per
centum of the previous year’s appropriation is authorized in each
such fiscal year to carry out the provisions of section 17 of this Act,
subject to paragraph (3).
(2) No funds authorized to be appropriated under this Act or
any other Act of Congress shall be used by any person, firm, corporation, group, or organization at any time, directly or indirectly,
to interfere with or impede the implementation of any provision of
this Act or any rule, regulation, or project thereunder, except that
this limitation shall not apply to the provision of legal and related
assistance in connection with any proceeding or action before any
State or Federal agency or court. The President shall ensure that
this paragraph is complied with by such order or other means as
the President deems appropriate.
(3)(A) Of the amounts made available under the second sentence of paragraph (1), not more than $2,000,000 in any fiscal year
may be used by the Secretary to make 2-year competitive grants
that will—
(i) enhance interagency cooperation in nutrition education
activities; and
(ii) develop cost effective ways to inform people eligible for
supplemental nutrition assistance program benefits about nutrition, resource management, and community nutrition education programs, such as the expanded food and nutrition education program.
(B) The Secretary shall make awards under this paragraph to
one or more State cooperative extension services (as defined in section 1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) who shall administer
the grants in coordination with other State or local agencies serving low-income people.
(C) Each project shall include an evaluation component and
shall develop an implementation plan for replication in other
States.
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(D) The Secretary shall report to the appropriate committees
of Congress on the results of the projects and shall disseminate the
results through the cooperative extension service system and to
State human services and health department offices, local supplemental nutrition assistance program offices, and other entities
serving low-income households.
(b) In any fiscal year, the Secretary shall limit the value of
those allotments issued to an amount not in excess of the appropriation for such fiscal year. Notwithstanding any other provision
of this Act, if in any fiscal year the Secretary finds that the requirements of participating States will exceed the appropriation,
the Secretary shall direct State agencies to reduce the value of
such allotments to be issued to households certified as eligible to
participate in the supplemental nutrition assistance program to the
extent necessary to comply with the provisions of this subsection.
(c) In prescribing the manner in which allotments will be reduced under subsection (b) of this section, the Secretary shall ensure that such reductions reflect, to the maximum extent practicable, the ratio of household income, determined under sections
5(d) and 5(e) of this Act, to the income standards of eligibility, for
households of equal size, determined under section 5(c) of this Act.
The Secretary may, in prescribing the manner in which allotments
will be reduced, establish (1) special provisions applicable to persons sixty years of age or over and persons who are physically or
mentally handicapped or otherwise disabled, and (2) minimum allotments after any reductions are otherwise determined under this
section.
(d) Not later than sixty days after the issuance of a report
under subsection (a) of this section in which the Secretary expresses the belief that reductions in the value of allotments to be
issued to households certified to participate in the supplemental
nutrition assistance program will be necessary, the Secretary shall
take the requisite action to reduce allotments in accordance with
the requirements of this section. Not later than seven days after
the Secretary takes any action to reduce allotments under this section, the Secretary shall furnish the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a statement setting forth (1)
the basis of the Secretary’s determination, (2) the manner in which
the allotments will be reduced, and (3) the action that has been
taken by the Secretary to reduce the allotments.
(e) Funds collected from claims against households or State
agencies, including claims collected pursuant to section 7(f), subsections (g) and (h) of section 11, subsections (b) and (c) of section
13, and section 16(c)(1), claims resulting from resolution of audit
findings, and claims collected from households receiving
overissuances, shall be credited to the supplemental nutrition assistance program appropriation account for the fiscal year in which
the collection occurs. Funds provided to State agencies under section 16(c) of this Act shall be paid from the appropriation account
for the fiscal year in which the funds are provided.
(f) No funds appropriated to carry out this Act may be transferred to the Office of the Inspector General, or the Office of the
General Counsel, of the Department of Agriculture.
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(g) BAN ON RECRUITMENT AND PROMOTION ACTIVITIES.—
(1) IN GENERAL.—Except as provided in paragraph (2), no
funds authorized to be appropriated under this Act shall be
used by the Secretary for—
(A) recruitment activities designed to persuade an individual to apply for supplemental nutrition assistance
program benefits;
(B) television, radio, or billboard advertisements that
are designed to promote supplemental nutrition assistance
program benefits and enrollment; or
(C) any agreements with foreign governments designed to promote supplemental nutrition assistance program benefits and enrollment.
(2) LIMITATION.—Paragraph (1)(B) shall not apply to programmatic activities undertaken with respect to benefits made
under section 5(h).
(h) BAN ON RECRUITMENT BY ENTITIES THAT RECEIVE FUNDS.—
The Secretary shall issue regulations that prohibit entities that receive funds under this Act to compensate any person for conducting
outreach activities relating to participation in, or for recruiting individuals to apply to receive benefits under, the supplemental nutrition assistance program, if the amount of the compensation
would be based on the number of individuals who apply to receive
the benefits.
SEC. 19. ø7 U.S.C. 2028¿ CONSOLIDATED BLOCK GRANTS FOR PUERTO
RICO AND AMERICAN SAMOA.
(a) PAYMENTS TO GOVERNMENTAL ENTITIES.—
(1) DEFINITION OF GOVERNMENTAL ENTITY.—In this sub-

section, the term ‘‘governmental entity’’ means—
(A) the Commonwealth of Puerto Rico; and
(B) American Samoa.
(2) BLOCK GRANTS.—
(A) AMOUNT OF BLOCK GRANTS.—From the sums appropriated under this Act, the Secretary shall, subject to
this section, pay to governmental entities to pay the expenditures for nutrition assistance programs for needy persons as described in subparagraphs (B) and (C)—
(i) for fiscal year 2003, $1,401,000,000; and
(ii) subject to the availability of appropriations
under section 18(a), for each fiscal year thereafter, the
amount specified in clause (i), as adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2002,
and June 30 of the immediately preceding fiscal year.
(B) PAYMENTS TO COMMONWEALTH OF PUERTO RICO.—
(i) IN GENERAL.—For fiscal year 2003 and each fiscal year thereafter, the Secretary shall use 99.6 percent of the funds made available under subparagraph
(A) for payment to the Commonwealth of Puerto Rico
to pay—
(I) 100 percent of the expenditures by the
Commonwealth for the fiscal year for the provision of nutrition assistance included in the plan of
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the Commonwealth approved under subsection (b);
and
(II) 50 percent of the related administrative
expenses.
(ii) EXCEPTION FOR EXPENDITURES FOR CERTAIN
SYSTEMS.—Notwithstanding clause (i), the Commonwealth of Puerto Rico may spend in fiscal year 2002
or 2003 not more than $6,000,000 of the amount required to be paid to the Commonwealth for fiscal year
2002 under this paragraph (as in effect on the day before the date of enactment of this clause) to pay 100
percent of the costs of—
(I) upgrading and modernizing the electronic
data processing system used to carry out nutrition
assistance programs for needy persons;
(II) implementing systems to simplify the determination of eligibility to receive the nutrition
assistance; and
(III) operating systems to deliver the nutrition
assistance through electronic benefit transfers.
(C) PAYMENTS TO AMERICAN SAMOA.—For fiscal year
2003 and each fiscal year thereafter, the Secretary shall
use 0.4 percent of the funds made available under subparagraph (A) for payment to American Samoa to pay 100
percent of the expenditures by American Samoa for a nutrition assistance program extended under section 601(c) of
Public Law 96–597 (48 U.S.C. 1469d(c)).
(D) CARRYOVER OF FUNDS.—For fiscal year 2002 and
each fiscal year thereafter, not more than 2 percent of the
funds made available under this paragraph for the fiscal
year to each governmental entity may be carried over to
the following fiscal year.
(3) TIME AND MANNER OF PAYMENTS TO COMMONWEALTH OF
PUERTO RICO.—The Secretary shall, subject to the provisions of
subsection (b), pay to the Commonwealth for the applicable fiscal year, at such times and in such manner as the Secretary
may determine, the amount estimated by the Commonwealth
pursuant to subsection (b)(1)(A)(iv), reduced or increased to the
extent of any prior overpayment or current underpayment
which the Secretary determines has been made under this section and with respect to which adjustment has not already
been made under this subsection.
(b)(1)(A) In order to receive payments under this Act for any
fiscal year, the Commonwealth shall have a plan for that fiscal
year approved by the Secretary under this section. By July 1 of
each year, if the Commonwealth wishes to receive payments, it
shall submit a plan for the provision of the assistance described in
subsection (a)(2)(B) for the following fiscal year which—
(i) designates the agency or agencies directly responsible
for the administration, or supervision of the administration, of
the program for the provision of such assistance;
(ii) assesses the food and nutrition needs of needy persons
residing in the Commonwealth;
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(iii) describes the program for the provision of such assistance, including the assistance to be provided and the persons
to whom such assistance will be provided, and any agencies
designated to provide such assistance, which program must
meet such requirements as the Secretary may by regulation
prescribe for the purpose of assuring that assistance is provided to the most needy persons in the jurisdiction;
(iv) estimates the amount of expenditures necessary for
the provision of the assistance described in the program and
related administrative expenses, up to the amount provided for
payment by subsection (a)(2)(B); and
(v) includes such other information as the Secretary may
require.
(B)(i) The Secretary shall approve or disapprove any plan submitted pursuant to subparagraph (A) no later than August 1 of the
year in which it is submitted. The Secretary shall approve any plan
which complies with the requirements of subparagraph (A). If a
plan is disapproved because it does not comply with any of the requirements of that paragraph the Secretary shall, except as provided in subparagraph (B)(ii), notify the appropriate agency in the
Commonwealth that payments will not be made to it under subsection (a) for the fiscal year to which the plan applies until the
Secretary is satisfied that there is no longer any such failure to
comply, and until the Secretary is so satisfied, the Secretary will
make no payments.
(ii) The Secretary may suspend the denial of payments under
subparagraph (B)(i) for such period as the Secretary determines appropriate and instead withhold payments provided for under subsection (a), in whole or in part, for the fiscal year to which the plan
applies, until the Secretary is satisfied that there is no longer any
failure to comply with the requirements of subparagraph (A), at
which time such withheld payments shall be paid.
(2)(A) The Commonwealth shall provide for a biennial audit of
expenditures under its program for the provision of the assistance
described in subsection (a)(2)(B), and within 120 days of the end of
each fiscal year in which the audit is made, shall report to the Secretary the findings of such audit.
(B) Within 120 days of the end of the fiscal year, the Commonwealth shall provide the Secretary with a statement as to whether
the payments received under subsection (a) for that fiscal year exceeded the expenditures by it during that year for which payment
is authorized under this section, and if so, by how much, and such
other information as the Secretary may require.
(C)(i) If the Secretary finds that there is a substantial failure
by the Commonwealth to comply with any of the requirements of
subparagraphs (A) and (B), or to comply with the requirements of
subsection (b)(1)(A) in the administration of a plan approved under
subsection (b)(1)(B), the Secretary shall, except as provided in subparagraph (C)(ii), notify the appropriate agency in the Commonwealth that further payments will not be made to it under subsection (a) until the Secretary is satisfied that there will no longer
be any such failure to comply, and until the Secretary is so satisfied, the Secretary shall make no further payments.
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(ii) The Secretary may suspend the termination of payments
under subparagraph (C)(i) for such period as the Secretary determines appropriate, and instead withhold payments provided for
under subsection (a), in whole or in part, until the Secretary is satisfied that there will no longer be any failure to comply with the
requirements of subparagraphs (A) and (B) and subsection
(b)(1)(A), at which time such withheld payments shall be paid.
(iii) Upon a finding under subparagraph (C)(i) of a substantial
failure to comply with any of the requirements of subparagraphs
(A) and (B) and subsection (b)(1)(A), the Secretary may, in addition
to or in lieu of any action taken under subparagraphs (C)(i) and
(C)(ii), refer the matter to the Attorney General with a request that
injunctive relief be sought to require compliance by the Commonwealth of Puerto Rico, and upon suit by the Attorney General in
an appropriate district court of the United States and a showing
that noncompliance has occurred, appropriate injunctive relief shall
issue.
(c)(1) The Secretary shall provide for the review of the programs for the provision of the assistance described in subsection
(a)(2)(A) for which payments are made under this Act.
(2) The Secretary is authorized as the Secretary deems practicable to provide technical assistance with respect to the programs
for the provision of the assistance described in subsection (a)(2)(A).
(d) Whoever knowingly and willfully embezzles, misapplies,
steals, or obtains by fraud, false statement, or forgery, any funds,
assets, or property provided or financed under this section shall be
fined not more than $10,000 or imprisoned for not more than five
years, or both, but if the value of the funds, assets or property involved is not over $200, the penalty shall be a fine of not more than
$1,000 or imprisonment for not more than one year, or both.
(e) REVIEW, REPORT, AND REGULATION OF CASH NUTRITION ASSISTANCE PROGRAM BENEFITS PROVIDED IN PUERTO RICO.—
(1) REVIEW.—The Secretary, in consultation with the Secretary of Health and Human Services, shall carry out a review
of the provision of nutrition assistance in Puerto Rico in the
form of cash benefits under this section that shall include—
(A) an examination of the history of and purpose for
distribution of a portion of monthly benefits in the form of
cash;
(B) an examination of current barriers to the redemption of non-cash benefits by current program participants
and retailers;
(C) an examination of current usage of cash benefits
for the purchase of non-food and other prohibited items;
(D) an identification and assessment of potential adverse effects of the discontinuation of a portion of benefits
in the form of cash for program participants and retailers;
and
(E) an examination of such other factors as the Secretary determines to be relevant.
(2) REPORT.—Not later than 18 months after the date of
enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the
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ate, a report that describes the results of the review conducted
under this subsection.
(3) REGULATION.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), and notwithstanding the second sentence of subsection
(b)(1)(B)(i), the Secretary shall disapprove any plan submitted pursuant to subsection (b)(1)(A)—
(i) for fiscal year 2017 that provides for the distribution of more than 20 percent of the nutrition assistance benefit of a participant in the form of cash;
(ii) for fiscal year 2018 that provides for the distribution of more than 15 percent of the nutrition assistance benefit of a participant in the form of cash;
(iii) for fiscal year 2019 that provides for the distribution of more than 10 percent of the nutrition assistance benefit of a participant in the form of cash;
(iv) for fiscal year 2020 that provides for the distribution of more than 5 percent of the nutrition assistance benefit of a participant in the form of cash;
and
(v) for fiscal year 2021 that provides for the distribution of any portion of the nutrition assistance
benefit of a participant in the form of cash.
(B) EXCEPTION.—Notwithstanding subparagraph (A),
the Secretary, informed by the report required under paragraph (2), may approve a plan that exempts participants
or categories of participants if the Secretary determines
that discontinuation of benefits in the form of cash is likely
to have significant adverse effects.
(4) FUNDING.—Out of any funds made available under section 18 for fiscal year 2014, the Secretary shall make available
to carry out the review and report described in paragraphs (1)
and (2) $1,000,000, to remain available until expended.
WORKFARE

SEC. 20. ø7 U.S.C. 2029¿ (a)(1) The Secretary shall permit any
political subdivision, in any State, that applies and submits a plan
to the Secretary in compliance with guidelines promulgated by the
Secretary to operate a workfare program pursuant to which every
member of a household participating in the supplemental nutrition
assistance program who is not exempt by virtue of the provisions
of subsection (b) of this section shall accept an offer from such subdivision to perform work on its behalf, or may seek an offer to perform work, in return for compensation consisting of the allotment
to which the household is entitled under section 8(a) of this Act,
with each hour of such work entitling that household to a portion
of its allotment equal in value to 100 per centum of the higher of
the applicable State minimum wage or the Federal minimum hourly rate under the Fair Labor Standards Act of 1938 ø(29 U.S.C. 201
et seq.)¿.
(2)(A) The Secretary shall promulgate guidelines pursuant to
paragraph (1) which, to the maximum extent practicable, enable a
political subdivision to design and operate a workfare program
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under this section which is compatible and consistent with similar
workfare programs operated by the subdivision.
(B) A political subdivision may comply with the requirements
of this section by operating any workfare program which the Secretary determines meets the provisions and protections provided
under this section.
(b) A household member shall be exempt from workfare requirements imposed under this section if such member is—
(1) exempt from section 6(d)(1) as the result of clause (B),
(C), (D), (E), or (F) of section 6(d)(2);
(2) at the option of the operating agency, subject to and
currently actively and satisfactorily participating at least 20
hours a week in a work activity required under title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(3) mentally or physically unfit;
(4) under sixteen years of age;
(5) sixty years of age or older; or
(6) a parent or other caretaker of a child in a household
in which another member is subject to the requirements of this
section or is employed fulltime.
(c) No operating agency shall require any participating member to work in any workfare position to the extent that such work
exceeds in value the allotment to which the household is otherwise
entitled or that such work, when added to any other hours worked
during such week by such member for compensation (in cash or in
kind) in any other capacity, exceeds thirty hours a week.
(d) The operating agency shall—
(1) not provide any work that has the effect of replacing
or preventing the employment of an individual not participating in the workfare program;
(2) provide the same benefits and working conditions that
are provided at the job site to employees performing comparable work for comparable hours; and
(3) reimburse participants for actual costs of transportation and other actual costs all of which are reasonably necessary and directly related to participation in the program but
not to exceed $25 in the aggregate per month.
(e) The operating agency may allow a job search period, prior
to making workfare assignments, of up to thirty days following a
determination of eligibility.
(f) DISQUALIFICATION.—An individual or a household may become ineligible under section 6(d)(1) to participate in the supplemental nutrition assistance program for failing to comply with this
section.
(g)(1) The Secretary shall pay to each operating agency 50 per
centum of all administrative expenses incurred by such agency in
operating a workfare program, including reimbursements to participants for work-related expenses as described in subsection (d)(3)
of this section.
(2)(A) From 50 per centum of the funds saved from employment related to a workfare program operated under this section,
the Secretary shall pay to each operating agency an amount not to
exceed the administrative expenses described in paragraph (1) for
which no reimbursement is provided under such paragraph.
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(B) For purposes of subparagraph (A), the term ‘‘funds saved
from employment related to a workfare program operated under
this section’’ means an amount equal to three times the dollar
value of the decrease in allotments issued to households, to the extent that such decrease results from wages received by members of
such households for the first month of employment beginning after
the date such members commence such employment if such employment commences—
(i) while such members are participating for the first time
in a workfare program operated under this section; or
(ii) in the thirty-day period beginning on the date such
first participation is terminated.
(3) The Secretary may suspend or cancel some or all of these
payments, or may withdraw approval from a political subdivision
to operate a workfare program, upon a finding that the subdivision
has failed to comply with the workfare requirements.
øSEC. 21. ø7 U.S.C. 2030¿ DEMONSTRATION OF FAMILY INDEPENDENCE
PROGRAM. 31¿
MINNESOTA FAMILY INVESTMENT PROJECT

SEC. 22. ø7 U.S.C. 2031¿ (a) IN GENERAL.—
(1) Subject to paragraph (2), upon written application of
the State of Minnesota that complies with this section and sections 6 to 11, 13, 130, and 132 of article 5 of 282 of the 1989
Laws of Minnesota, and after approval of such application by
the Secretary in accordance with subsections (b) and (d), the
State may implement a family investment demonstration
project (hereinafter in this section referred to as the Project) in
parts of the State to determine whether the Project more effectively helps families to become self-supporting and enhances
their ability to care for their children than do the supplemental
nutrition assistance program and programs under parts A and
F of title IV of the Social Security Act. The State may provide
cash payments under the Project, subject to paragraph (2), that
replace assistance otherwise available under the supplemental
nutrition assistance program and under part A of title IV of
the Social Security Act.
(2) The Project may be implemented only in accordance
with this section and only if the Secretary of Health and
Human Services approves an application submitted by the
State permitting the State to include in the Project families
who are eligible to receive benefits under part A of title IV of
the Social Security Act.
(b) REQUIRED TERMS AND CONDITIONS OF THE PROJECT.—The
application submitted by the State under subsection (a) shall provide an assurance that the Project shall satisfy all of the following
requirements:
(1) Only families may be eligible to receive assistance and
services through the Project.
(2) Participating families, families eligible for or participating in the program authorized under part A of title IV of
31 Sec. 4115(b)(14) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122 Stat.
1870) repealed section 21.

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the Social Security Act or the supplemental nutrition assistance program that are assigned to and found eligible for the
Project, and families required to submit an application for the
Project that are found eligible for the Project shall be ineligible
to receive benefits under the supplemental nutrition assistance
program.
(3)(A) Subject to the provisions of this paragraph and any
reduction imposed under subsection (c)(3) of this section, the
value of assistance provided to participating families shall not
be less than the aggregate value of the assistance such families
could receive under the supplemental nutrition assistance program and part A of title IV of the Social Security Act if such
families did not participate in the Project.
(B) For purposes of satisfying the requirement specified in
subparagraph (A)—
(i) payments for child care expenses under the Project
shall be considered part of the value of assistance provided
to participating families with earnings;
(ii) payments for child care expenses for families without earnings shall not be considered part of the value of
assistance provided to participating families or the aggregate value of assistance that such families could have received under the supplemental nutrition assistance program and part A of title IV of the Social Security Act; and
(iii) any child support payments not assigned to the
State under the provisions of part A of title IV of the Social Security Act, less $50 per month, shall be considered
part of the aggregate value of assistance participating families would receive if such families did not participate in
the Project;
(C) For purposes of satisfying the requirement specified in
subparagraph (A), the State shall—
(i) identify the sets of characteristics indicative of families that might receive less assistance under the Project;
(ii) establish a mechanism to determine, for each participating family that has a set of characteristics identified
under clause (i) whether such family could receive more
assistance, in the aggregate, under the supplemental nutrition assistance program and part A of title IV of the Social Security Act if such family did not participate in the
project;
(iii) increase the amount of assistance provided under
the Project to any family that could receive more assistance, in the aggregate, under the supplemental nutrition
assistance program and part A of title IV of the Social Security Act if such family did not participate in the Project,
so that the assistance provided under the Project to such
family is not less than the aggregate amount of assistance
such family could receive under the supplemental nutrition
assistance program and part A of title IV of the Social Security Act if such family did not participate in the Project;
and
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(iv) increase the amount of assistance paid to participating families, if the State or locality imposes a sales tax
on food, by the amount needed to compensate for the tax.
This subparagraph shall not be construed to require the State
to make the determination under clause (ii) for families that do
not have a set of characteristics identified under clause (i).
(D)(i) The State shall designate standardized amounts of
assistance provided as food assistance under the Project and
notify monthly each participating family of such designated
amount.
(ii) The amount of food assistance so designated shall be
at least the value of benefits such family could have received
under the supplemental nutrition assistance program if the
Project had not been implemented. The provisions of this subparagraph shall not require that the State make individual determinations as to the amount of assistance under the Project
designated as food assistance.
(iii) The State shall periodically allow participating families the option to receive such food assistance in the form of
benefits.
(E)(i) Individuals ineligible for the Project who are members of a household including a participating family shall have
their eligibility for the supplemental nutrition assistance program determined and have their benefits calculated and issued
following the standards established under the supplemental
nutrition assistance program, except as provided differently in
this subparagraph.
(ii) The State agency shall determine such individuals’ eligibility for benefits under the supplemental nutrition assistance program and the amount of such benefits without regard
to the participating family.
(iii) In computing such individuals’ income for purposes of
determining eligibility (under section 5(c)(1)) and benefits, the
State agency shall apply the maximum excess shelter expense
deduction specified under section 5(e).
(iv) Such individuals’ monthly allotment shall be the higher of $10 or 75 percent of the amount calculated following the
standards of the supplemental nutrition assistance program
and the foregoing requirements of this subparagraph, rounded
to the nearest lower whole dollar.
(4) The Project shall include education, employment, and
training services equivalent to those offered under the employment and training program described in section 6(d)(4) to families similar to participating families elsewhere in the State.
(5) The State may select families for participation in the
Project through submission and approval of an application for
participation in the Project or by assigning to the Project families that are determined eligible for or are participating in the
program authorized by part A of title IV of the Social Security
Act or the supplemental nutrition assistance program.
(6) Whenever selection for participation in the Project is
accomplished through submission and approval of an application for the Project—
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(A) the State shall promptly determine eligibility for
the Project, and issue assistance to eligible families, retroactive to the date of application, not later than thirty days
following the family’s filing of an application;
(B) in the case of families determined ineligible for the
Project upon application, the application for the Project
shall be deemed an application for the supplemental nutrition assistance program, and benefits under the supplemental nutrition assistance program shall be issued to
those found eligible following the standards established
under the supplemental nutrition assistance program;
(C) expedited benefits shall be provided under terms
no more restrictive than under paragraph (9) of section
11(e) and the laws of Minnesota and shall include expedited issuance of designated food assistance provided
through the Project or expedited benefits through the supplemental nutrition assistance program;
(D) each individual who contacts the State in person
during office hours to make what may reasonably be interpreted as an oral or written request to receive financial assistance shall receive and shall be permitted to file an application form on the same day such contact is first made;
(E) provision shall be made for telephone contact by,
mail delivery of forms to and mail return of forms by, and
subsequent home or telephone interview with, elderly individuals, physically or mentally handicapped individuals,
and individuals otherwise unable to appear in person solely because of transportation difficulties and similar hardships;
(F) a family may be represented by another person if
the other person has clearly been designated as the representative of such family for that purpose and the representative is an adult who is sufficiently aware of relevant circumstances, except that the State may—
(i) restrict the number of families who may be represented by such person; and
(ii) otherwise establish criteria and verification
standards for representation under this subparagraph;
and
(G) the State shall provide a method for reviewing applications to participation in the Project submitted by, and
distributing assistance under the Project to, families that
do not reside in permanent dwellings or who have no fixed
mailing address.
(7) Whenever selection for participation in the Project is
accomplished by assigning families that are determined eligible
for or participating in the program authorized by part A of title
IV of the Social Security Act or the supplemental nutrition assistance program—
(A) the State shall provide eligible families assistance
under the Project no later than benefits would have been
provided following the standards established under the
supplemental nutrition assistance program; and
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(B) the State shall ensure that assistance under the
Project is provided so that there is no interruption in benefits for families participating in the program under part A
of title IV of the Social Security Act or the supplemental
nutrition assistance program.
(8) Paragraphs (1)(B) and (8) of section 11(e) shall apply
with respect to applicants and participating families in the
same manner as such paragraphs apply with respect to applicants and participants in the supplemental nutrition assistance program.
(9) Assistance provided under the Project shall be reduced
to reflect the pro rata value of any benefits received under the
supplemental nutrition assistance program for the same period.
(10)(A) The State shall provide each family or family member whose participation in the Project ends and each family
whose participation is terminated with notice of the existence
of the supplemental nutrition assistance program and the person or agency to contact for more information.
(B)(i) Following the standards specified in subparagraph
(C), the State shall ensure that benefits under the supplemental nutrition assistance program are provided to participating families in case the Project is terminated or to participating families or family members that are determined ineligible for the Project because of income, resources, or change in
household composition, if such families or individuals are determined eligible for the supplemental nutrition assistance program. Benefits 32 shall be issued to eligible families and individuals described in this clause retroactive to the date of termination from the Project; and
(ii) If sections 256.031 through 256.036 of the Minnesota
Statutes, 1989 Supplement, or Minnesota Laws 1989, chapter
282, article 5, section 130, are amended to reduce or eliminate
benefits provided under those sections or restrict the rights of
Project applicants or participating families, the State shall exclude from the Project applicants or participating families or
individuals affected by such amendments and follow the standards specified in subparagraph (C), except that the State shall
continue to pay from State funds an amount equal to the food
assistance portion to such families and individuals until the
State determines eligibility or ineligibility for the supplemental
nutrition assistance program or the family or individual has
failed to supply the needed additional information within ten
days. Food benefits 32 shall be provided to families and individuals excluded from the Project under this clause who are determined eligible for the supplemental nutrition assistance program retroactive to the date of the determination of eligibility.
The Secretary shall pay to the State the value of the benefits
32 Sec. 4115(b)(15)(A) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122
Stat. 1870) amended this section by striking ‘‘food coupons’’ each place it appears and inserting
‘‘benefits’’. Section 4115(b)(15)(B) amended this section by striking ‘‘coupons’’ each place it appears and inserting ‘‘benefits’’. The term ‘‘Food coupons’’ appears in the section twice. The first
amendment could not be executed due to capitalization. The second amendment resulted in the
term reading ‘‘Food benefits’’. This provision was subsequently amended by section 4030(k) of
Public Law 113–79 by striking ‘‘Food benefits’’ and inserting ‘‘Benefits’’.

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for which such families and individuals would have been eligible in the absence of food assistance payments under this
clause from the date of termination from the Project to the
date benefits are provided.
(C) Each family whose Project participation is terminated
shall be screened for potential eligibility for the supplemental
nutrition assistance program and if the screening indicates potential eligibility, the family or family member shall be given
a specific request to supply all additional information needed
to determine such eligibility and assistance in completing a
signed supplemental nutrition assistance program application
including provision of any relevant information obtained by the
State for purpose of the Project. If the family or family member
supplies such additional information within ten days after receiving the request, the State shall, within five days after the
State receives such information, determine whether the family
or family member is eligible for the supplemental nutrition assistance program. Each family or family member who is determined through the screening or otherwise to be ineligible for
the supplemental nutrition assistance program shall be notified of that determination.
(11) Section 11(e)(10) shall apply with respect to applicant
and participating families in the same manner as such paragraph applies with respect to applicants and participants in
the supplemental nutrition assistance program, except that
families shall be given notice of any action for which a hearing
is available in a manner consistent with the notice requirements of the regulations implementing sections 402(a)(4) and
482(h) of the Social Security Act.
(12) For each fiscal year, the Secretary shall not be liable
for any costs related to carrying out the Project in excess of
those that the Secretary would have been liable for had the
Project not been implemented, except for costs for evaluating
the Project, but shall adjust for the full amount of the federal
share of increases or decreases in costs that result from
changes in economic, demographic, and other conditions in the
State based on data specific to the State, changes in eligibility
or benefit levels authorized by this Act or changes in amounts
of Federal funds available to States and localities under the
supplemental nutrition assistance program.
(13) The State shall carry out the supplemental nutrition
assistance program throughout the State while the State carries out the Project.
(14)(A) Except as provided in subparagraph (B), the State
will carry out the Project during a five-year period beginning
on the date the first family receives assistance under the
Project.
(B) The Project may be terminated—
(i) by the State one hundred and eighty days after the
State gives notice to the Secretary that it intends to terminate the Project;
(ii) by the Secretary one hundred and eighty days
after the Secretary, after notice and an opportunity for a
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hearing, determines that the State materially failed to
comply with this section; or
(iii) whenever the State and the Secretary jointly
agree to terminate the Project.
(15) Not more than six thousand families may participate
in the Project simultaneously.
(c) ADDITIONAL TERMS AND CONDITIONS OF THE PROJECT.—The
Project shall be subject to the following additional terms and conditions:
(1) The State may require any parent in a participating
family to participate in education, employment, or training requirements unless the individual is a parent in a family with
one parent who—
(A) is ill, incapacitated, or sixty years of age or older;
(B) is needed in the home because of the illness or incapacity of another family member;
(C) is the parent of a child under one year of age and
is personally providing care for the child;
(D) is the parent of a child under six years of age and
is employed or participating in education or employment
and training services for twenty or more hours a week;
(E) works thirty or more hours a week or, if the number of hours worked cannot be verified, earns at least the
Federal minimum hourly wage rate multiplied by thirty
per week; or
(F) is in the second or third trimester of pregnancy.
(2) The State shall not require any parent of a child under
six years of age in a participating family with only one parent
to be employed or participate in education or employment and
training services for more than twenty hours a week.
(3) For any period during which an individual required to
participate in education, employment, or training requirements
fails to comply without good cause with a requirement imposed
by the State under paragraph (1), the amount of assistance to
the family under the Project may be reduced by an amount not
more than 10 percent of the assistance the family would be eligible for with no income other than that from the Project.
(d) FUNDING.—
(1) If an application submitted under subsection (a) complies with the requirements specified in subsection (b), then
the Secretary shall—
(A) approve such application; and
(B) subject to subsection (b)(12) from the funds appropriated under this Act provide grant awards and pay the
State each calendar quarter for—
(i) the cost of food assistance provided under the
Project equal to the amount that would have otherwise
been issued in the form of benefits under the supplemental nutrition assistance program had the Project
not been implemented, as estimated under a methodology satisfactory to the Secretary after negotiations
with the State; and
(ii) the administrative costs incurred by the State
to provide food assistance under the Project that are
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authorized under subsections (a), (g), (h)(2), and (h)(3)
of section 16 equal to the amount that otherwise
would have been paid under such subsections had the
Project not been implemented, as estimated under a
methodology satisfactory to the Secretary after negotiations with the State: Provided, That payments
made under subsection (g) of section 16 shall equal
payments that would have been made if the Project
had not been implemented.
(2) The Secretary shall periodically adjust payments made
to the State under paragraph (1) to reflect—
(A) the cost of benefits issued to individuals ineligible
for the Project specified in subsection (b)(3)(E) in excess of
the amount that would have been issued to such individuals had the Project not been implemented, as estimated
under a methodology satisfactory to the Secretary after negotiations with the State; and
(B) the cost of benefits issued to families exercising
the option specified in subsection (b)(3)(D)(iii) in excess of
the amount that would have been issued to such individuals had the Project not been implemented, as estimated
under a methodology satisfactory to the Secretary after negotiations with the State.
(3) Payments under paragraph (1)(B) shall include adjustments, as estimated under a methodology satisfactory to the
Secretary after negotiations with the State, for increases or decreases in the costs of providing food assistance and associated
administrative costs that result from changes in economic, demographic, or other conditions in the State based on data specific to the State, changes in eligibility or benefit levels authorized by this Act and changes in or additional amounts of Federal funds available to States and localities under the supplemental nutrition assistance program.
(e) WAIVER.—With respect to the Project, the Secretary shall
waive compliance with any requirement contained in this Act
(other than this section) that, if applied, would prevent the State
from carrying out the Project or effectively achieving its purpose.
(f) PROJECT AUDITS.—The Comptroller General of the United
States shall—
(1) conduct periodic audits of the operation of the Project
to verify the amounts payable to the State from time to time
under subsection (d); and
(2) submit to the Secretary, the Secretary of Health and
Human Services, the Committee on Agriculture of the House
of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results
of each such audit.
(g) CONSTRUCTION.—(1) For purposes of any Federal, State, or
local law other than part A of title IV of the Social Security Act
or this Act—
(A) cash assistance provided under the Project that is designated as food assistance by the State shall be treated in the
same manner as benefits allotments under the supplemental
nutrition assistance program are treated; and
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(B) participating families shall be treated in the same
manner as participants in the supplemental nutrition assistance program are treated.
(2) Nothing in this section shall—
(A) allow payments made to the State under the Project to
be less than the amounts the State and eligible households
within the State would have received if the Project had not
been implemented; or
(B) require the Secretary to incur costs as a result of the
Project in excess of costs that would have been incurred if the
Project had not been implemented, except for costs for evaluation.
(h) QUALITY CONTROL.—Participating families shall be excluded from any sample taken for purposes of making any determination under section 16(c). For purposes of establishing the total
value of allotments under section 16(c)(1), benefits and the amount
of federal liability for food assistance provided under the Project as
limited by subsection (b)(12) of this section shall be treated as allotments issued under the supplemental nutrition assistance program.
(i) EVALUATION.—(1) The State shall develop and implement a
plan for an independent evaluation designed to provide reliable information on Project impacts and implementation. The evaluation
will include treatment and control groups and will include random
assignment of families to treatment and control groups in an urban
setting. The evaluation plan shall satisfy the evaluation concerns
of the Secretary of Agriculture such as effects on benefits to participants, costs of the Project, payment accuracy, administrative consequences, any reduction in welfare dependency, any reduction in
total assistance payments, and the consequences of cash payments
on household expenditures, and food consumption. The evaluation
plan shall take into consideration the evaluation requirements and
administrative obligations of the State. The evaluation will measure the effects of the Project in regard to goals of increasing family
income, prevention of long-term dependency, movement toward
self-support, and simplification of the welfare system.
(2) The State shall pay 50 percent of the cost of developing and
implementing such plan and the Federal Government shall pay the
remainder.
(j) DEFINITIONS.—For purposes of this section, the following
definitions apply:
(1) The term ‘‘family’’ means the following individuals who
live together: a minor child or a group of minor children related to each other as siblings, half siblings, stepsiblings, or
adopted siblings, together with their natural or adoptive parents, or their caregiver. Family also includes a pregnant
woman in the third trimester of pregnancy with no children.
(2) The term ‘‘contract’’ means a plan to help a family pursue self-sufficiency, based on the State’s assessment of the family’s needs and abilities and developed with a parental caregiver.
(3) The term ‘‘caregiver’’ means a minor child’s natural or
adoptive parent or parents who live in the home with the
minor child. For purposes of determining eligibility for the
Project, ‘‘caregiver’’ also means any of the following individuals
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Sec. 23

who live with and provide care and support to a minor child
when the minor child’s natural or adoptive parent or parents
do not reside in the same home: grandfather, grandmother,
brother, sister, stepfather, stepmother, stepbrother, stepsister,
uncle, aunt, first cousin, nephew, niece, persons of preceding
generations as denoted by prefixes of ‘‘great’’ or ‘‘great-great’’
or a spouse of any person named in the above groups even
after the marriage ends by death or divorce.
(4) The term ‘‘State’’ means the State of Minnesota.
SEC. 23. ø7 U.S.C. 2032¿ AUTOMATED DATA PROCESSING AND INFORMATION RETRIEVAL SYSTEMS.
(a) STANDARDS AND PROCEDURES FOR REVIEWS.—
(1) INITIAL REVIEWS.—
(A) IN GENERAL.—Not later than 1 year after the date

of enactment of this section, the Secretary shall complete
a review of regulations and standards (in effect on the date
of enactment of this section) for the approval of an automated data processing and information retrieval system
maintained by a State (hereinafter in this section referred
to as a ‘‘system’’) to determine the extent to which the regulations and standards contribute to a more effective and
efficient program.
(B) REVISION OF REGULATIONS.—The Secretary shall
revise regulations (in effect on the date of enactment of
this Act) to take into account the findings of the review
conducted under subparagraph (A).
(C) INCORPORATION OF EXISTING SYSTEMS.—The regulations shall require States to incorporate all or part of
systems in use elsewhere, unless a State documents that
the design and operation of an alternative system would be
less costly. The Secretary shall establish standards to define the extent of modification of the systems for which
payments will be made under either section 16(a) or 16(g).
(D) IMPLEMENTATION.—Proposed systems shall meet
standards established by the Secretary for timely implementation of proper changes.
(E) COST EFFECTIVENESS.—Criteria for the approval of
a system under section 16(g) shall include the cost effectiveness of the proposed system. On implementation of the
approved system, a State shall document the actual cost
and benefits of the system.
(2) OPERATIONAL REVIEWS.—The Secretary shall conduct
such reviews as are necessary to ensure that systems—
(A) comply with conditions of initial funding approvals; and
(B) adequately support program delivery in compliance
with this Act and regulations issued under this Act.
(b) STANDARDS FOR APPROVAL OF SYSTEMS.—
(1) IN GENERAL.—After conducting the review required
under subsection (a), the Secretary shall establish standards
for approval of systems.
(2) IMPLEMENTATION.—A State shall implement the standards established by the Secretary within a reasonable period of
time, as determined by the Secretary.
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(3) PERIODIC COMPLIANCE REVIEWS.—The Secretary shall
conduct appropriate periodic reviews of systems to ensure compliance with the standards established by the Secretary.
(c) REPORT.—Not later than October 1, 1993, the Secretary
shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the extent to which State agencies have developed and are operating effective systems that support supplemental nutrition assistance program delivery in compliance with
this Act and regulations issued under this Act.
øSEC. 24. ø7 U.S.C. 2033¿ TERRITORY OF AMERICAN SAMOA. 33¿
SEC.

25.

(a)

ø7 U.S.C. 2034¿ ASSISTANCE FOR COMMUNITY FOOD
PROJECTS.
DEFINITIONS.—In this section:
(1) COMMUNITY FOOD PROJECT.—In this section, the term

‘‘community food project’’ means a community-based project
that—
(A) requires a 1-time contribution of Federal assistance to become self-sustaining; and
(B) is designed—
(i)(I) to meet the food needs of low-income individuals through food distribution, community outreach to
assist in participation in Federally assisted nutrition
programs, or improving access to food as part of a
comprehensive service;; 34
(II) to increase the self-reliance of communities in
providing for the food needs of the communities; and
(III) to promote comprehensive responses to local
food, food access, farm, and nutrition issues; or
(ii) to meet specific State, local, or neighborhood
food and agricultural needs, including needs relating
to—
(I) equipment necessary for the efficient operation of a project;
(II) planning for long-term solutions; or
(III) the creation of innovative marketing activities that mutually benefit agricultural producers and low-income consumers.
(2) GLEANER.—The term ‘‘gleaner’’ means an entity that—
(A) collects edible, surplus food that would be thrown
away and distributes the food to agencies or nonprofit organizations that feed the hungry; or
(B) harvests for free distribution to the needy, or for
donation to agencies or nonprofit organizations for ultimate distribution to the needy, an agricultural crop that
has been donated by the owner of the crop.
(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hungerfree communities goal’’ means any of the 14 goals described in
House Concurrent Resolution 302, 102nd Congress, agreed to
October 5, 1992.
33 Sec.

4124(b) of P.L. 107–171 (116 Stat. 325) repealed sec. 24.
semicolons at the end of subclause (I) is so in law. See amendment made by section
4026(1)(A)(i)(I) of Public Law 113–79.
34 Two

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(b) AUTHORITY TO PROVIDE ASSISTANCE.—
(1) IN GENERAL.—From amounts made available to carry
out this Act, the Secretary may make grants to assist eligible
private nonprofit entities to establish and carry out community
food projects.
(2) LIMITATION ON GRANTS.—The total amount of funds
provided as grants under this section may not exceed—
(A) $1,000,000 for fiscal year 1996;
(B) $5,000,000 for each of fiscal years 2008 through
2014; and
(C) $9,000,000 for fiscal year 2015 and each fiscal year
thereafter.
(c) ELIGIBLE ENTITIES.—To be eligible for a grant under subsection (b), a public food program service provider, a tribal organization, or a private nonprofit entity, including gleaners, must—
(1) have experience in the area of—
(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the development of new markets in low-income communities for agricultural producers;
(B) job training and business development activities
for food-related activities in low-income communities; or
(C) efforts to reduce food insecurity in the community,
including food distribution, improving access to services, or
coordinating services and programs;
(2) demonstrate competency to implement a project, provide fiscal accountability, collect data, and prepare reports and
other necessary documentation;
(3) demonstrate a willingness to share information with researchers, practitioners, and other interested parties; and
(4) collaborate with 1 or more local partner organizations
to achieve at least 1 hunger-free communities goal.
(d) PREFERENCE FOR CERTAIN PROJECTS.—In selecting community food projects to receive assistance under subsection (b), the
Secretary shall give a preference to projects designed to—
(1) develop linkages between 2 or more sectors of the food
system;
(2) support the development of entrepreneurial projects;
(3) develop innovative linkages between the for-profit and
nonprofit food sectors;
(4) encourage long-term planning activities, and multisystem, interagency approaches with multistakeholder collaborations, that build the long-term capacity of communities to address the food and agricultural problems of the communities,
such as food policy councils and food planning associations; or
(5) develop new resources and strategies to help reduce
food insecurity in the community and prevent food insecurity
in the future by—
(A) developing creative food resources;
(B) coordinating food services with park and recreation
programs and other community-based outlets to reduce
barriers to access; or
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(C) creating nutrition education programs for at- risk
populations to enhance food-purchasing and food- preparation skills and to heighten awareness of the connection between diet and health.
(e) MATCHING FUNDS REQUIREMENTS.—
(1) REQUIREMENTS.—The Federal share of the cost of establishing or carrying out a community food project that receives assistance under subsection (b) may not exceed 50 percent of the cost of the project during the term of the grant.
(2) CALCULATION.—In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a payment in cash or in kind, fairly evaluated, including facilities,
equipment, or services.
(3) SOURCES.—An entity may provide for the non-Federal
share through State government, local government, or private
sources.
(f) TERM OF GRANT.—
(1) SINGLE GRANT.—A community food project may be supported by only a single grant under subsection (b).
(2) TERM.—The term of a grant under subsection (b) may
not exceed 5 years.
(g) TECHNICAL ASSISTANCE AND RELATED INFORMATION.—
(1) TECHNICAL ASSISTANCE.—In carrying out this section,
the Secretary may provide technical assistance regarding community food projects, processes, and development to an entity
seeking the assistance.
(2) SHARING INFORMATION.—
(A) IN GENERAL.—The Secretary may provide for the
sharing of information concerning community food projects
and issues among and between government, private forprofit and nonprofit groups, and the public through publications, conferences, and other appropriate forums.
(B) OTHER INTERESTED PARTIES.—The Secretary may
share information concerning community food projects
with researchers, practitioners, and other interested parties.
(h) REPORTS TO CONGRESS.—Not later than September 30,
2014, and each year thereafter, the Secretary shall submit to Congress a report that describes each grant made under this section,
including—
(1) a description of any activity funded;
(2) the degree of success of each activity funded in achieving hunger-free community goals; and
(3) the degree of success in improving the long-term capacity of a community to address food and agriculture problems
related to hunger or access to healthy food.
SEC. 26. ø7 U.S.C. 2035¿ SIMPLIFIED SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.
(a) DEFINITION OF FEDERAL COSTS.—In this section, the term

‘‘Federal costs’’ does not include any Federal costs incurred under
section 17.
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(b) ELECTION.—Subject to subsection (d), a State may elect to
carry out a simplified supplemental nutrition assistance program 35
(referred to in this section as a ‘‘Program’’), statewide or in a political subdivision of the State, in accordance with this section.
(c) OPERATION OF PROGRAM.—If a State elects to carry out a
Program, within the State or a political subdivision of the State—
(1) a household in which no members receive assistance
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) may not participate
in the Program;
(2) a household in which all members receive assistance
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall automatically
be eligible to participate in the Program;
(3) if approved by the Secretary, a household in which 1
or more members but not all members receive assistance under
a State program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) may be eligible to participate in the Program; and
(4) subject to subsection (f), benefits under the Program
shall be determined under rules and procedures established by
the State under—
(A) a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.);
(B) the supplemental nutrition assistance program; or
(C) a combination of a State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.) and the supplemental nutrition assistance program.
(d) APPROVAL OF PROGRAM.—
(1) STATE PLAN.—A State agency may not operate a Program unless the Secretary approves a State plan for the operation of the Program under paragraph (2).
(2) APPROVAL OF PLAN.—The Secretary shall approve any
State plan to carry out a Program if the Secretary determines
that the plan—
(A) complies with this section; and
(B) contains sufficient documentation that the plan
will not increase Federal costs for any fiscal year.
(e) INCREASED FEDERAL COSTS.—
(1) DETERMINATION.—
(A) IN GENERAL.—The Secretary shall determine
whether a Program being carried out by a State agency is
increasing Federal costs under this Act.
(B) NO EXCLUDED HOUSEHOLDS.—In making a determination under subparagraph (A), the Secretary shall not
require the State agency to collect or report any information on households not included in the Program.
(C) ALTERNATIVE ACCOUNTING PERIODS.—The Secretary may approve the request of a State agency to apply
35 Sec. 4002(a)(12)(B) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122
Stat. 1857) amended this subsection by striking ‘‘simplified food stamp program’’ and inserting
‘‘simplified supplemental nutrition assistance program’’. Prior text read ‘‘Simplified Food Stamp
Program’’. Amendment executed to reflect probable intent of Congress.

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alternative accounting periods to determine if Federal
costs do not exceed the Federal costs had the State agency
not elected to carry out the Program.
(2) NOTIFICATION.—If the Secretary determines that the
Program has increased Federal costs under this Act for any fiscal year or any portion of any fiscal year, the Secretary shall
notify the State not later than 30 days after the Secretary
makes the determination under paragraph (1).
(3) ENFORCEMENT.—
(A) CORRECTIVE ACTION.—Not later than 90 days after
the date of a notification under paragraph (2), the State
shall submit a plan for approval by the Secretary for
prompt corrective action that is designed to prevent the
Program from increasing Federal costs under this Act.
(B) TERMINATION.—If the State does not submit a plan
under subparagraph (A) or carry out a plan approved by
the Secretary, the Secretary shall terminate the approval
of the State agency operating the Program and the State
agency shall be ineligible to operate a future Program.
(f) RULES AND PROCEDURES.—
(1) IN GENERAL.—In operating a Program, a State or political subdivision of a State may follow the rules and procedures
established by the State or political subdivision under a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) or under the supplemental nutrition
assistance program.
(2) STANDARDIZED DEDUCTIONS.—In operating a Program,
a State or political subdivision of a State may standardize the
deductions provided under section 5(e). In developing the
standardized deduction, the State shall consider the work expenses, dependent care costs, and shelter costs of participating
households.
(3) REQUIREMENTS.—In operating a Program, a State or
political subdivision shall comply with the requirements of—
(A) subsections (a) through (f) 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) paragraphs (8), (12), (15), (17), (18), (22), and (23)
of section 11(e);
(F) section 11(e)(10) (or a comparable requirement established by the State under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.)); and
(G) section 16.
(4) LIMITATION ON ELIGIBILITY.—Notwithstanding any
other provision of this section, a household may not receive
benefits under this section as a result of the eligibility of the
household under a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.), unless the
Secretary determines that any household with income above
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130 percent of the poverty guidelines is not eligible for the program.
SEC. 27. ø7 U.S.C. 2036¿ AVAILABILITY OF COMMODITIES FOR THE
EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) PURCHASE OF COMMODITIES.—
(1) IN GENERAL.—From amounts made available to carry

out this Act, for each of the fiscal years 2014 through 2018, the
Secretary shall purchase a dollar amount described in paragraph (2) of a variety of nutritious and useful commodities of
the types that the Secretary has the authority to acquire
through the Commodity Credit Corporation or under section 32
of the Act entitled ‘‘An Act to amend the Agricultural Adjustment Act, and for other purposes’’, approved August 24, 1935
(7 U.S.C. 612c), and distribute the commodities to States for
distribution in accordance with section 214 of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7515).
(2) AMOUNTS.—The Secretary shall use to carry out paragraph (1)—
(A) for fiscal year 2008, $190,000,000;
(B) for fiscal year 2009, $250,000,000;
(C) for each of fiscal years 2010 through 2018, the dollar amount of commodities specified in subparagraph (B)
adjusted by the percentage by which the thrifty food plan
has been adjusted under section 3(u)(4) between June 30,
2008, and June 30 of the immediately preceding fiscal
year;
(D) for each of fiscal years 2015 through 2018, the sum
obtained by adding the total dollar amount of commodities
specified in subparagraph (C) and—
(i) for fiscal year 2015, $50,000,000;
(ii) for fiscal year 2016, $40,000,000;
(iii) for fiscal year 2017, $20,000,000; and
(iv) for fiscal year 2018, $15,000,000; and
(E) for fiscal year 2019 and each subsequent fiscal
year, the total dollar amount of commodities specified in
subparagraph (D)(iv) adjusted by the percentage by which
the thrifty food plan has been adjusted under section
3(u)(4) to reflect changes between June 30, 2017, and June
30 of the immediately preceding fiscal year.
(3) FUNDS AVAILABILITY.—For purposes of the funds described in this subsection, the Secretary shall—
(A) make the funds available for 2 fiscal years; and
(B) allow States to carry over unexpended balances to
the next fiscal year pursuant to such terms and conditions
as are determined by the Secretary.
(b) BASIS FOR COMMODITY PURCHASES.—In purchasing commodities under subsection (a), the Secretary shall, to the extent
practicable and appropriate, make purchases based on—
(1) agricultural market conditions;
(2) preferences and needs of States and distributing agencies; and
(3) preferences of recipients.
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SEC. 28. ø7 U.S.C. 2036a¿ NUTRITION EDUCATION AND OBESITY PREVENTION GRANT PROGRAM.
(a) DEFINITION OF ELIGIBLE INDIVIDUAL.—In this section, the

term ‘‘eligible individual’’ means an individual who is eligible to receive benefits under a nutrition education and obesity prevention
program under this section as a result of being—
(1) an individual eligible for benefits under—
(A) this Act;
(B) sections 9(b)(1)(A) and 17(c)(4) of the Richard B
Russell National School Lunch Act (42 U.S.C.
1758(b)(1)(A), 1766(c)(4)); or
(C) section 4(e)(1)(A) of the Child Nutrition Act of 1966
(42 U.S.C. 1773(e)(1)(A));
(2) an individual who resides in a community with a significant low-income population, as determined by the Secretary; or
(3) such other low-income individual as is determined to be
eligible by the Secretary.
(b) PROGRAMS.—Consistent with the terms and conditions of
grants awarded under this section, State agencies may implement
a nutrition education and obesity prevention program for eligible
individuals that promotes healthy food choices and physical activity
consistent with the most recent Dietary Guidelines for Americans
published under section 301 of the National Nutrition Monitoring
and Related Research Act of 1990 (7 U.S.C. 5341).
(c) DELIVERY OF NUTRITION EDUCATION AND OBESITY PREVENTION SERVICES.—
(1) IN GENERAL.—State agencies may deliver nutrition education and obesity prevention services under a program described in subsection (b)—
(A) directly to eligible individuals; or
(B) through agreements with other State or local agencies or community organizations.
(2) NUTRITION EDUCATION STATE PLANS.—
(A) IN GENERAL.—A State agency that elects to provide
nutrition education and obesity prevention services under
this subsection shall submit to the Secretary for approval
a nutrition education State plan.
(B) REQUIREMENTS.—Except as provided in subparagraph (C), a nutrition education State plan shall—
(i) identify the uses of the funding for local
projects;
(ii) ensure that the interventions are appropriate
for eligible individuals who are members of low-income
populations by recognizing the constrained resources,
and the potential eligibility for Federal food assistance
programs, of members of those populations; and
(iii) conform to standards established by the Secretary through regulations, guidance, or grant award
documents.
(C) TRANSITION PERIOD.—During each of fiscal years
2011 and 2012, a nutrition education State plan under this
section shall be consistent with the requirements of section
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11(f) (as that section, other than paragraph (3)(C), existed
on the day before the date of enactment of this section).
(3) USE OF FUNDS.—
(A) IN GENERAL.—A State agency may use funds provided under this section for any evidence-based allowable
use of funds identified by the Administrator of the Food
and Nutrition Service of the Department of Agriculture in
consultation with the Director of the Centers for Disease
Control and Prevention of the Department of Health and
Human Services, including—
(i) individual and group-based nutrition education,
health promotion, and intervention strategies;
(ii) comprehensive, multilevel interventions at
multiple complementary organizational and institutional levels; and
(iii) community and public health approaches to
improve nutrition.
(B) CONSULTATION.—In identifying allowable uses of
funds under subparagraph (A) and in seeking to strengthen delivery, oversight, and evaluation of nutrition education, the Administrator of the Food and Nutrition Service shall consult with the Director of the Centers for Disease Control and Prevention and outside stakeholders and
experts, including—
(i) representatives of the academic and research
communities;
(ii) nutrition education practitioners;
(iii) representatives of State and local governments; and
(iv) community organizations that serve low-income populations.
(4) NOTIFICATION.—To the maximum extent practicable,
State agencies shall notify applicants, participants, and eligible
individuals under this Act of the availability of nutrition education and obesity prevention services under this section in
local communities.
(5) COORDINATION.—Subject to the approval of the Secretary, projects carried out with funds received under this section may be coordinated with other health promotion or nutrition improvement strategies, whether public or privately funded, if the projects carried out with funds received under this
section remain under the administrative control of the State
agency.
(d) FUNDING.—
(1) IN GENERAL.—Of funds made available each fiscal year
under section 18(a)(1), the Secretary shall reserve for allocation to State agencies to carry out the nutrition education and
obesity prevention grant program under this section, to remain
available for obligation for a period of 2 fiscal years—
(A) for fiscal year 2011, $375,000,000;
(B) for fiscal year 2012, $388,000,000;
(C) for fiscal year 2013, $285,000,000;
(D) for fiscal year 2014, $401,000,000;
(E) for fiscal year 2015, $407,000,000; and
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(F) for fiscal year 2016 and each subsequent fiscal
year, the applicable amount during the preceding fiscal
year, as adjusted to reflect any increases for the 12-month
period ending the preceding June 30 in the Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
(2) ALLOCATION.—
(A) INITIAL ALLOCATION.—Of the funds set aside under
paragraph (1), as determined by the Secretary—
(i) for each of fiscal years 2011 through 2013, 100
percent shall be allocated to State agencies in direct
proportion to the amount of funding that the State received for carrying out section 11(f) (as that section existed on the day before the date of enactment of this
section) during fiscal year 2009, as reported to the
Secretary as of February 2010; and
(ii) subject to a reallocation under subparagraph
(B)—
(I) for fiscal year 2014—
(aa) 90 percent shall be allocated to State
agencies in accordance with clause (i); and
(bb) 10 percent shall be allocated to State
agencies based on the respective share of each
State of the number of individuals participating in the supplemental nutrition assistance program during the 12-month period
ending the preceding January 31;
(II) for fiscal year 2015—
(aa) 80 percent shall be allocated to State
agencies in accordance with clause (i); and
(bb) 20 percent shall be allocated in accordance with subclause (I)(bb);
(III) for fiscal year 2016—
(aa) 70 percent shall be allocated to State
agencies in accordance with clause (i); and
(bb) 30 percent shall be allocated in accordance with subclause (I)(bb);
(IV) for fiscal year 2017—
(aa) 60 percent shall be allocated to State
agencies in accordance with clause (i); and
(bb) 40 percent shall be allocated in accordance with subclause (I)(bb); and
(V) for fiscal year 2018 and each fiscal year
thereafter—
(aa) 50 percent shall be allocated to State
agencies in accordance with clause (i); and
(bb) 50 percent shall be allocated in accordance with subclause (I)(bb).
(B) REALLOCATION.—
(i) IN GENERAL.—If the Secretary determines that
a State agency will not expend all of the funds allocated to the State agency for a fiscal year under paragraph (1) or in the case of a State agency that elects
not to receive the entire amount of funds allocated to
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the State agency for a fiscal year, the Secretary shall
reallocate the unexpended funds to other States during the fiscal year or the subsequent fiscal year (as determined by the Secretary) that have approved State
plans under which the State agencies may expend the
reallocated funds.
(ii) EFFECT OF ADDITIONAL FUNDS.—
(I) FUNDS RECEIVED.—Any reallocated funds
received by a State agency under clause (i) for a
fiscal year shall be considered to be part of the fiscal year 2009 base allocation of funds to the State
agency for that fiscal year for purposes of determining allocation under subparagraph (A) for the
subsequent fiscal year.
(II) FUNDS SURRENDERED.—Any funds surrendered by a State agency under clause (i) shall not
be considered to be part of the fiscal year 2009
base allocation of funds to a State agency for that
fiscal year for purposes of determining allocation
under subparagraph (A) for the subsequent fiscal
year.
(3) LIMITATION ON FEDERAL FINANCIAL PARTICIPATION.—
(A) IN GENERAL.—Grants awarded under this section
shall be the only source of Federal financial participation
under this Act in nutrition education and obesity prevention.
(B) EXCLUSION.—Any costs of nutrition education and
obesity prevention in excess of the grants authorized under
this section shall not be eligible for reimbursement under
section 16(a).
(e) IMPLEMENTATION.—Not later than January 1, 2012, the
Secretary shall publish in the Federal Register a description of the
requirements for the receipt of a grant under this section.
SEC. 29. ø7 U.S.C. 2036b¿ RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.
(a) PURPOSE.—The purpose of this section is to provide the De-

partment of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retail
food store program integrity.
(b) USE OF FUNDS.—
(1) IN GENERAL.—Additional funds are provided under this
section to supplement the retail food store and recipient integrity activities of the Department.
(2) INFORMATION TECHNOLOGIES.—The Secretary shall use
an appropriate amount of the funds provided under this section
to employ information technologies known as data mining and
data warehousing and other available information technologies
to administer the supplemental nutrition assistance program
and enforce regulations promulgated under section 4(c).
(c) FUNDING.—
(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2014 through 2018.
(2) MANDATORY FUNDING.—
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(A) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this section not
less than $15,000,000 for fiscal year 2014, to remain available until expended.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under subparagraph (A),
without further appropriation.
(C) MAINTENANCE OF FUNDING.—The funding provided
under subparagraph (A) shall supplement (and not supplant) other Federal funding for programs carried out
under this Act.

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