S.Amdt. 3338

SA 3338. Mr. CRUZ (for himself and Mr. Lee) submitted an amendment
intended to be proposed to amendment SA 3224 proposed by Mr. Roberts
(for himself and Ms. Stabenow) to the bill H.R. 2, to provide for the
reform and continuation of agricultural and other programs of the
Department of Agriculture through fiscal year 2023, and for other
purposes; which was ordered to lie on the table; as follows:

Strike sections 4103 through 4116 and insert the following:

[[Page S4678]]

SEC. 4103. WORK REQUIREMENTS FOR ABLE-BODIED ADULTS WITHOUT
DEPENDENTS; WORK ACTIVATION PROGRAM FOR ADULTS
WITH DEPENDENT CHILDREN.

(a) Declaration of Policy.--Section 2 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2011) is amended by adding at
the end the following: ``Congress further finds that it
should also be the purpose of the supplemental nutrition
assistance program to increase employment, to encourage
healthy marriage, and to promote prosperous self-sufficiency,
which means the ability of households to maintain an income
above the poverty level without services and benefits from
the Federal Government.''.
(b) Definitions.--
(1) Food.--Section 3(k) of the Food and Nutrition Act of
2008 (7 U.S.C. 2012(k)) is amended by inserting before the
period at the end the following: ``, except that a food, food
product, meal, or other item described in this subsection
shall be considered a food under this Act only if it is an
essential (as determined by the Secretary)''.
(2) Supervised job search.--Section 3 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012) is amended--
(A) by redesignating subsections (t) through (v) as
subsections (u) through (w), respectively; and
(B) by inserting after subsection (s) the following:
``(t) Supervised Job Search.--The term `supervised job
search' means a job search program that has the following
characteristics:
``(1) The job search occurs at an official location where
the presence and activity of the recipient can be directly
observed, supervised, and monitored.
``(2) The entry, time onsite, and exit of the recipient
from the official job search location are recorded in a
manner that prevents fraud.
``(3) The recipient is expected to remain and undertake job
search activities at the job search center.
``(4) The quantity of time the recipient is observed and
monitored engaging in job search at the official location is
recorded for purposes of compliance with the work and work
activation requirements of sections 6(o) and 30.''.
(3) Conforming amendment.--Section 27(a)(2) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)(2)) is amended in
subparagraphs (C) and (E) by striking ``3(u)(4)'' each place
it appears and inserting ``3(v)(4)''.
(c) Work Requirement for Able-Bodied Adults Without
Dependents.--Section 6(o) of the Food and Nutrition Act of
2008 (7 U.S.C. 2015(o)) is amended--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``not less than 3 months (consecutive or otherwise)'' and
inserting ``more than 1 month'';
(B) in subparagraph (C), by striking ``or'' at the end;
(C) in subparagraph (D), by striking the period at the end
and inserting ``; or''; and
(D) by adding at the end the following:
``(E) participate in supervised job search for at least 8
hours per week.'';
(2) in paragraph (4), by adding at the end the following:
``(C) Termination.--Subparagraph (A) shall not apply with
respect to any fiscal year that begins after the effective
date of the Agriculture Improvement Act of 2018.'';
(3) in paragraph (6)--
(A) in the paragraph heading, by striking ``15-percent''
and inserting ``5-percent'';
(B) in subparagraph (A)(ii)(IV), by striking ``3 months''
and inserting ``1 month''; and
(C) in subparagraph (D), by striking ``15 percent'' and
inserting ``5 percent''; and
(4) by adding at the end the following:
``(8) Promoting work.--As a condition of receiving
supplemental nutrition assistance program funds under this
Act, a State agency shall provide each individual subject to
the work requirement of this subsection with the opportunity
to participate in an activity selected by the State from
among the options described in subparagraphs (B), (C), and
(E) of paragraph (2).
``(9) Penalties for inadequate state performance.--If a
State agency fails to fully comply with this section,
including the requirement to terminate the benefits of
individuals who fail to fulfill the work requirements
described in paragraph (2) during a fiscal quarter, the
funding allotment of the State for the supplemental nutrition
assistance program shall be reduced by 10 percent for the
quarter that begins 180 days after the first day of the
quarter in which the noncompliance occurred.''.

SEC. 4104. IMPROVEMENTS TO ELECTRONIC BENEFIT TRANSFER
SYSTEM.

(a) Prohibited Fees.--Section 7 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2016) is amended--
(1) in subsection (f)(2)(C), in the subparagraph heading,
by striking ``Interchange'' and inserting ``Prohibited''; and
(2) in subsection (h), by striking paragraph (13) and
inserting the following:
``(13) Prohibited fees.--
``(A) Definition of switching.--In this paragraph, the term
`switching' means the routing of an intrastate or interstate
transaction that consists of transmitting the details of a
transaction electronically recorded through the use of an EBT
card in 1 State to the issuer of the card in--
``(i) the same State; or
``(ii) another State.
``(B) Prohibition.--
``(i) Interchange fees.--No interchange fee shall apply to
an electronic benefit transfer transaction under this
subsection.
``(ii) Other fees.--

``(I) In general.--No fee charged by a benefit issuer
(including any affiliate of a benefit issuer), or by any
agent or contractor when acting on behalf of such benefit
issuer, to a third party relating to the switching or routing
of benefits to the same benefit issuer (including any
affiliate of the benefit issuer) shall apply to an electronic
benefit transfer transaction under this subsection.
``(II) Effective date.--The prohibition under subclause (I)
shall be effective through fiscal year 2022.''.

(b) EBT Portability.--Section 7(f)(5) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2016(f)(5)) is amended by
adding at the end the following:
``(C) Operation of individual point of sale device by
farmers' markets and direct marketing farmers.--A farmers'
market or direct marketing farmer that is exempt under
paragraph (2)(B)(i) shall be allowed to operate an individual
electronic benefit transfer point of sale device at more than
1 location under the same supplemental nutrition assistance
program authorization, if--
``(i) the farmers' market or direct marketing farmer
provides to the Secretary information on location and hours
of operation at each location; and
``(ii)(I) the point of sale device used by the farmers'
market or direct marketing farmer is capable of providing
location information of the device through the electronic
benefit transfer system; or
``(II) if the Secretary determines that the technology is
not available for a point of sale device to meet the
requirement under subclause (I), the farmers' market or
direct marketing farmer provides to the Secretary any other
information, as determined by the Secretary, necessary to
ensure the integrity of transactions processed using the
point of sale device.''.
(c) Evaluation of State Electronic Benefit Transfer
Systems.--Section 7(h) of the Food and Nutrition Act of 2008
(7 U.S.C. 2016(h)) is amended by adding at the end the
following:
``(15) GAO evaluation and study of state electronic benefit
transfer systems.--
``(A) Evaluation.--
``(i) In general.--Not later than 18 months after the date
of enactment of this paragraph, the Comptroller General of
the United States (referred to in this paragraph as the
`Comptroller General') shall evaluate for each electronic
benefit transfer system of a State agency selected in
accordance with clause (ii)--

``(I) any type of fee charged--

``(aa) by the benefit issuer (or an affiliate, agent, or
contractor of the benefit issuer) of the State agency for
electronic benefit transfer-related services, including
electronic benefit transfer-related services that did not
exist before February 7, 2014; and
``(bb) to any retail food stores, including retail food
stores that are exempt under subsection (f)(2)(B)(i) for
electronic benefit transfer-related services;

``(II) in consultation with the Secretary and the retail
food stores within the State, any electronic benefit transfer
system outages affecting the EBT cards of the State agency;
``(III) in consultation with the Secretary, any type of
entity that--

``(aa) provides electronic benefit transfer equipment and
related services to the State agency, any benefit issuers of
the State agency, or any retail food stores within the State;
``(bb) routes or switches transactions through the
electronic benefit transfer system of the State agency; or
``(cc) has access to transaction information in the
electronic benefit transfer system of the State agency; and

``(IV) in consultation with the Secretary, any emerging
entities, services, or technologies in use with respect to
the electronic benefit transfer system of the State agency.

``(ii) Selection criteria.--The Comptroller General shall
select for evaluation under clause (i)--

``(I) with respect to each benefit issuer that provides
electronic benefit transfer-related services to 1 or more
State agencies, not fewer than 1 electronic benefit transfer
system provided by that benefit issuer; and
``(II) any electronic benefit transfer system of a State
agency that has experienced significant or frequent outages
during the 2-year period preceding the date of enactment of
this paragraph.

``(B) Study.--Not later than 2 years after the date of
enactment of this paragraph, the Comptroller General 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 based on the evaluation
carried out under subparagraph (A) that includes--
``(i) a description of the types of entities that--

``(I) provide electronic benefit transfer equipment and
related services to State agencies, benefit issuers, and
retail food stores;
``(II) route or switch transactions through electronic
benefit transfer systems of State agencies; or
``(III) have access to transaction information in
electronic benefit transfer systems of State agencies;

[[Page S4679]]

``(ii) a description of emerging entities, services, and
technologies in use with respect to electronic benefit
transfer systems of State agencies; and
``(iii) a summary of--

``(I) the types of fees charged--

``(aa) by benefit issuers (or affiliates, agents, or
contractors of benefit issuers) of State agencies for
electronic benefit transfer-related services, including
whether the types of fees existed before February 7, 2014;
and
``(bb) to any retail food stores, including retail food
stores that are exempt under subsection (f)(2)(B)(i) for
electronic benefit transfer-related services;

``(II)(aa) the causes of any electronic benefit transfer
system outages affecting EBT cards; and
``(bb) potential solutions to minimize the disruption of
outages to participating households.

``(16) Review of ebt systems requirements.--
``(A) Review.--
``(i) In general.--Not later than 18 months after the date
of enactment of this paragraph, the Secretary shall review
for each electronic benefit transfer system of a State agency
selected under clause (ii)--

``(I) any contracts or other agreements between the State
agency and the benefit issuer of the State agency to
determine--

``(aa) the customer service requirements of the benefit
issuer, including call center requirements; and
``(bb) the consistency and compatibility of data provided
by the benefit issuer to the Secretary for appropriate
oversight of possible fraudulent transactions; and

``(II) the use of third-party applications that access the
electronic benefit transfer system to provide electronic
benefit transfer account information to participating
households.

``(ii) Selection criteria.--The Secretary shall select for
the review under clause (i) not fewer than 5 electronic
benefit transfer systems of State agencies, of which--

``(I) with respect to each benefit issuer that provides
electronic benefit transfer-related services to 1 or more
State agencies, not fewer than 1 shall be provided by that
benefit issuer; and
``(II) not more than 4 shall have experienced significant
or frequent outages during the 2-year period preceding the
date of enactment of this paragraph.

``(B) Regulations and guidance.--Based on the study
conducted by the Comptroller General of the United States
under paragraph (15)(B) and the review conducted by the
Secretary under subparagraph (A), the Secretary shall
promulgate such regulations or issue such guidance as the
Secretary determines appropriate--
``(i) to prohibit the imposition of any fee that is
inconsistent with paragraph (13);
``(ii) to minimize electronic benefit system outages;
``(iii) to update procedures to handle electronic benefit
transfer system outages that minimize disruption to
participating households and retail food stores while
protecting against fraud and abuse;
``(iv) to develop cost-effective customer service standards
for benefit issuers, including benefit issuer call centers or
other customer service options equivalent to call centers,
that would ensure adequate customer service for participating
households;
``(v) to address the use of third-party applications that
access electronic benefit transfer systems to provide
electronic benefit transfer account information to
participating households, including by establishing
safeguards consistent with sections 9(c) and 11(e)(8) to
protect the privacy of data relating to participating
households and approved retail food stores; and
``(vi) to improve the reliability of electronic benefit
transfer systems.
``(C) Report.--Not later than 2 years after the date of
enactment of this paragraph, 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
effects, if any, on an electronic benefit transfer system of
a State agency from the use of third-party applications that
access the electronic benefit transfer system to provide
electronic benefit transfer account information to
participating households.''.
(d) Approval of Retail Food Stores.--Section 9 of the Food
and Nutrition Act (7 U.S.C. 2018) is amended--
(1) in subsection (a)(1)--
(A) in the fourth sentence, by striking ``No retail food
store'' and inserting the following:
``(D) Visit required.--No retail food store'';
(B) in the third sentence, by striking ``Approval'' and
inserting the following:
``(C) Certificate.--Approval'';
(C) in the second sentence--
(i) by striking ``food; and (D) the'' and inserting the
following: ``food;
``(iv) any information, if available, about the ability of
the anticipated or existing electronic benefit transfer
equipment and service provider of the applicant to provide
sufficient information through the electronic benefit
transfer system to minimize the risk of fraudulent
transactions; and
``(v) the'';
(ii) by striking ``concern; (C) whether'' and inserting the
following: ``concern;
``(iii) whether'';
(iii) by striking ``applicant; (B) the'' and inserting the
following: ``applicant;
``(ii) the'';
(iv) by striking ``following: (A) the nature'' and
inserting the following: ``following:
``(i) the nature''; and
(v) in the matter preceding clause (i) (as so designated),
by striking ``In determining'' and inserting the following:
``(B) Factors for consideration.--In determining''; and
(D) in the first sentence, by striking ``(a)(1)
Regulations'' and inserting the following:
``(a) Authorization to Accept and Redeem Benefits.--
``(1) Applications.--
``(A) In general.--Regulations'';
(2) in subsection (a), by adding at the end the following:
``(4) Electronic benefit transfer equipment and service
providers.--Before implementing clause (iv) of paragraph
(1)(B), the Secretary shall issue guidance for retail food
stores on how to select electronic benefit transfer equipment
and service providers that are able to meet the requirements
of that clause.''; and
(3) in subsection (c), in the first sentence, by inserting
``records relating to electronic benefit transfer equipment
and related services, transaction and redemption data
provided through the electronic benefit transfer system,''
after ``purchase invoices,''.

SEC. 4105. RETAIL INCENTIVES.

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C.
2018) is amended by adding at the end the following:
``(i) Incentives.--
``(1) Definition of eligible incentive food.--In this
subsection, the term `eligible incentive food' means food
that is--
``(A) identified for increased consumption by 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); and
``(B) a fruit, a vegetable, low-fat dairy, or a whole
grain.
``(2) Regulations.--
``(A) In general.--The Secretary shall promulgate
regulations to clarify the process by which an approved
retail food store may seek a waiver to offer an incentive
that may be used only for the purchase of eligible incentive
food at the point of purchase to a household purchasing food
with benefits issued under this Act.
``(B) Regulations.--The regulations under subparagraph (A)
shall establish a process under which an approved retail food
store, prior to carrying out an incentive program under this
subsection, shall provide to the Secretary information
describing the incentive program, including--
``(i) the types of incentives that will be offered;
``(ii) the types of foods that will be incentivized for
purchase; and
``(iii) an explanation of how the incentive program intends
to support meeting dietary intake goals.
``(3) No limitation on benefits.--A waiver granted under
this subsection shall not be used to carry out any activity
that limits the use of benefits under this Act or any other
Federal nutrition law.
``(4) Effect.--Regulations promulgated under this
subsection shall not affect any requirements under section
4405 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 7517) or section 4304 of the Agriculture Improvement
Act of 2018, including the eligibility of a retail food store
to participate in a project funded under those sections.
``(5) Report.--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 annual report describing the types of incentives
approved under this subsection.''.

SEC. 4106. REQUIRED ACTION ON DATA MATCH INFORMATION.

Section 11(e) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)) is amended--
(1) in paragraph (24), by striking ``and'' after the
semicolon;
(2) in paragraph (25), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(26) that for a household participating in the
supplemental nutrition assistance program, the State agency
shall pursue clarification and verification, if applicable,
of information relating to the circumstances of the household
received from data matches for the purpose of ensuring an
accurate eligibility and benefit determination, only if the
information--
``(A) appears to present significantly conflicting
information from the information that was used by the State
agency at the time of certification of the household;
``(B) is obtained from data matches carried out under
subsection (q), (r), or (w); or
``(C)(i) is fewer than 60 days old relative to the current
month of participation of the household; and
``(ii) if accurate, would have been required to be reported
by the household based on the reporting requirements assigned
to the household by the State agency under section 6(c).''.

SEC. 4107. INCOME VERIFICATION.

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
2026) is amended by adding at the end the following:
``(m) Pilot Projects for Improving Earned Income
Verification.--
``(1) In general.--Under such terms and conditions as the
Secretary considers to be

[[Page S4680]]

appropriate, the Secretary shall establish a pilot program
(referred to in this subsection as the `pilot program') under
which not more than 8 States may carry out pilot projects to
test strategies to improve the accuracy or efficiency of the
process for verification of earned income at certification
and recertification of applicant households for the
supplemental nutrition assistance program.
``(2) Contract options.--
``(A) In general.--In carrying out the pilot program, prior
to soliciting applications for pilot projects from State
agencies, the Secretary shall--
``(i) assess the availability of up-to-date earned income
information from different commercial data service providers;
and
``(ii) make a determination regarding the overall cost-
effectiveness to the Department of Agriculture and the State
agencies administering the supplemental nutrition assistance
program of--

``(I) the Secretary entering into a contract with a
commercial data service provider to provide to State agencies
carrying out pilot projects up-to-date earned income
information for verification of the earned income at
certification and recertification of applicant households for
the supplemental nutrition assistance program;
``(II) the Secretary entering into an agreement with the
Secretary of Health and Human Services to allow State
agencies carrying out pilot projects to verify earned income
information at certification and recertification of applicant
households for the supplemental nutrition assistance program
in the State using up-to-date earned income information from
a commercial data service provider under the electronic
interface developed by the State and used by the State
Medicaid agency to verify income eligibility for the State
Medicaid program under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.); or
``(III) a State agency carrying out a pilot project
entering into a contract with a commercial data service
provider to obtain up-to-date earned income information to
verify the earned income at certification and recertification
of applicant households for the supplemental nutrition
assistance program in the State.

``(B) Authority to enter into contracts.--If determined
appropriate by the Secretary, the Secretary may, based on the
cost-effectiveness determination described in subparagraph
(A)(ii)--
``(i) enter into a contract described in subclause (I) of
that subparagraph;
``(ii) enter into an agreement described in subclause (II)
of that subparagraph; or
``(iii) allow each State agency carrying out a pilot
project to enter into a contract described in subclause (III)
of that subparagraph, on the condition that the Federal share
of the cost of the contract shall not exceed 75 percent of
the total cost of the contract.
``(C) Report.--Not later than 1 year after the date of
enactment of this subsection, 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 describes the results of the
assessment and determination under subparagraph (A).
``(3) Pilot projects.--
``(A) Application.--A State agency seeking to carry out a
pilot project under the pilot program shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including--
``(i) an identification of the 1 or more proposed changes
to the process for verifying earned income used by the State
agency;
``(ii) a description of how the proposed changes under
clause (i) would meet the purpose described in paragraph (1);
and
``(iii) a plan to evaluate how the proposed changes under
clause (i) would improve the accuracy or efficiency of the
verification of earned income at certification and
recertification of applicant households for the supplemental
nutrition assistance program in the State.
``(B) Selection criteria.--The Secretary shall select to
carry out pilot projects State agencies that, as determined
by the Secretary--
``(i) do not have access to up-to-date earned income
information for the verification of earned income at
certification and recertification of applicant households for
the supplemental nutrition assistance program in the State;
``(ii) would be able to access and use, for the
verification of earned income at certification and
recertification of applicant households for the supplemental
nutrition assistance program in the State, up-to-date earned
income information used to determine eligibility for another
Federal assistance program; or
``(iii) have cost-effective, innovative approaches to
verifying earned income that would improve the accuracy or
efficiency of the verification of earned income at
certification and recertification of applicant households for
the supplemental nutrition assistance program in the State.
``(4) Grants.--The Secretary may make grants to a State
agency to carry out a pilot project.
``(5) Effect on other requirements.--A pilot project
carried out under this subsection shall not alter the
eligibility requirements under section 5 or the reporting
requirements under section 6(c).
``(6) Report.--Not later than 180 days after the date on
which the pilot program terminates under paragraph (8), 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 describes
the results of the pilot projects carried out under the pilot
program.
``(7) Funding.--
``(A) In general.--Out of funds made available under
section 18(a)(1), on October 1, 2018, the Secretary shall
make available $10,000,000 to carry out this subsection, to
remain available until expended.
``(B) Costs.--The Secretary shall allocate not more than 10
percent of the amounts made available under subparagraph (A)
to carry out subparagraphs (A) and (C) of paragraph (2) and
paragraph (6).
``(8) Termination.--The pilot program shall terminate not
later than September 30, 2022.''.

SEC. 4108. PILOT PROJECTS TO IMPROVE HEALTHY DIETARY PATTERNS
RELATED TO FLUID MILK IN THE SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
2026) (as amended by section 4107) is amended by adding at
the end the following:
``(n) Pilot Projects to Improve Healthy Dietary Patterns
Related to Fluid Milk Consumption Among Participants or
Households in the Supplemental Nutrition Assistance Program
That Under-consume Fluid Milk.--
``(1) Definition of fluid milk.--In this subsection, the
term `fluid milk' means cow milk, without flavoring or
sweeteners, 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), that is packaged in liquid form.
``(2) Pilot projects.--The Secretary shall carry out, under
such terms and conditions as the Secretary considers to be
appropriate, pilot projects to develop and test methods that
would increase the purchase of fluid milk, in a manner
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), by individuals or households participating in
the supplemental nutrition assistance program that under-
consume fluid milk by providing an incentive for the purchase
of fluid milk at the point of purchase to a household
purchasing food with supplemental nutrition assistance
program benefits.
``(3) Grants or cooperative agreements.--
``(A) In general.--In carrying out this subsection, the
Secretary may enter into competitively awarded cooperative
agreements with, or provide grants to, a government agency or
nonprofit organization for use in accordance with projects
that meet the strategic goals of this subsection, including
allowing the government agency or nonprofit organization to
award subgrants to retail food stores authorized under this
Act.
``(B) Application.--To be eligible to receive a cooperative
agreement or grant under this paragraph, a government agency
or nonprofit 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 shall
include--
``(i) incorporation of a scientifically based strategy that
is designed to improve diet quality through the increased
purchase of fluid milk for participants or households in the
supplemental nutrition assistance program that under-consume
fluid milk;
``(ii) a commitment to a pilot project that allows for a
rigorous outcome evaluation, including data collection; and
``(iii) 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.
``(E) Duration.--Each pilot project carried out under this
subsection shall be in effect for not more than 24 months.
``(4) Projects.--Pilot projects carried out under paragraph
(2) shall include projects to determine whether incentives
for the purchase of fluid milk by individuals or households
participating in the supplemental nutrition assistance
program that under-consume fluid milk result in--
``(A) improved nutritional outcomes for participating
individuals or households;
``(B) changes in purchasing and consumption of fluid milk
among participating individuals or households; or
``(C) diets more closely aligned with healthy eating
patterns 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).
``(5) 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 paragraphs (2) through
(4).
``(II) Requirement.--The independent evaluation under
subclause (I) shall use rigorous

[[Page S4681]]

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 subsection 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 2019 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 to promote wide use of
successful strategies.
``(6) Funding.--
``(A) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $20,000,000,
to remain available until expended.
``(B) Appropriations in advance.--Only funds appropriated
under subparagraph (A) in advance specifically to carry out
this subsection shall be available to carry out this
subsection.''.

SEC. 4109. INTERSTATE DATA MATCHING TO PREVENT MULTIPLE
ISSUANCES.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by adding at the end the following:
``(w) National Accuracy Clearinghouse.--
``(1) Definition of indication of multiple issuance.--In
this subsection, the term `indication of multiple issuance'
means an indication, based on a computer match, that benefits
are being issued to an individual under the supplemental
nutrition assistance program from more than 1 State
simultaneously.
``(2) Establishment.--
``(A) In general.--The Secretary shall establish an
interstate data system, to be known as the `National Accuracy
Clearinghouse', to prevent the simultaneous issuance of
benefits to an individual by more than 1 State under the
supplemental nutrition assistance program.
``(B) Data matching.--The Secretary shall require that
States make available to the National Accuracy Clearinghouse
only such information as is necessary for the purpose
described in subparagraph (A).
``(C) Data protection.--The information made available by
States under subparagraph (B)--
``(i) shall be used only for the purpose described in
subparagraph (A); and
``(ii) shall not be retained for longer than is necessary
to accomplish that purpose.
``(3) Issuance of interim final regulations.--Not later
than 18 months after the date of enactment of this
subsection, the Secretary shall promulgate regulations (which
shall include interim final regulations) to carry out this
subsection that--
``(A) incorporate best practices and lessons learned from
the pilot program under section 4032(c) of the Agricultural
Act of 2014 (7 U.S.C. 2036c(c));
``(B) require a State to take appropriate action, as
determined by the Secretary, with respect to each indication
of multiple issuance or indication that an individual
receiving benefits in 1 State has applied to receive benefits
in another State, while ensuring timely and fair service to
applicants for, and participants in, the supplemental
nutrition assistance program;
``(C) limit the information submitted through or retained
by the National Accuracy Clearinghouse to information
necessary to accomplish the purpose described in paragraph
(2)(A);
``(D) establish safeguards to protect--
``(i) the information submitted through or retained by the
National Accuracy Clearinghouse, including by limiting the
period of time that information is retained to the period
necessary to accomplish the purpose described in paragraph
(2)(A); and
``(ii) the privacy of information that is submitted through
or retained by the National Accuracy Clearinghouse, which
shall include--

``(I) prohibiting any contractor who has access to
information that is submitted through or retained by the
National Accuracy Clearinghouse from using that information
for purposes not directly related to the purpose described in
paragraph (2)(A); and
``(II) other safeguards, consistent with subsection (e)(8);

``(E) establish a process by which a State shall--
``(i) not later than 3 years after the date of enactment of
this subsection, conduct a computer match using the National
Accuracy Clearinghouse;
``(ii) after the first computer match under clause (i),
conduct computer matches on an ongoing basis, as determined
by the Secretary;
``(iii) identify and take appropriate action, as determined
by the Secretary, with respect to each indication of multiple
issuance or indication that an individual receiving benefits
in 1 State has applied to receive benefits in another State;
and
``(iv) protect the identity and location of a vulnerable
individual (including a victim of domestic violence) that is
an applicant to or participant of the supplemental nutrition
assistance program; and
``(F) include other rules and standards, as determined by
the Secretary.''.

SEC. 4110. QUALITY CONTROL.

(a) Records.--
(1) In general.--Section 11(a)(3)(B) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2020(a)(3)(B)) is amended in
the matter preceding clause (i) by inserting ``and systems
containing those records'' after ``subparagraph (A)''.
(2) Cost sharing for computerization.--Section 16(g)(1) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2025(g)(1)) is
amended--
(A) in subparagraph (E), by striking ``and'' at the end;
(B) in subparagraph (F)(ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(G) would be accessible by the Secretary for inspection
and audit under section 11(a)(3)(B); and''.
(b) Quality Control System.--Section 16(c)(1) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)) is amended by
striking subparagraph (B) and inserting the following:
``(B) Quality control system integrity.--
``(i) In general.--Not later than 180 days after the date
of enactment of the Agriculture Improvement Act of 2018, the
Secretary shall issue interim final regulations that--

``(I) ensure that the quality control system established
under this subsection produces valid statistical results;
``(II) provide for oversight of contracts entered into by a
State agency for the purpose of improving payment accuracy;
``(III) ensure the accuracy of data collected under the
quality control system established under this subsection; and
``(IV) to the maximum extent practicable, for each fiscal
year, evaluate the integrity of the quality control process
of not fewer than 2 State agencies, selected in accordance
with criteria determined by the Secretary.

``(ii) Debarment.--In accordance with the nonprocurement
debarment procedures under part 417 of title 2, Code of
Federal Regulations (or successor regulations), the Secretary
shall bar any person that, in carrying out the quality
control system established under this subsection, knowingly
submits, or causes to be submitted, false information to the
Secretary.''.
(c) Elimination of State Bonuses for Error Rates.--
(1) In general.--Section 16(d) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(d)) is amended--
(A) by striking the subsection heading and inserting
``State Performance Indicators and Bonuses.--''; and
(B) in paragraph (2)--
(i) in subparagraph (A)(ii), by striking ``subparagraph
(B)(ii)'' and inserting ``clauses (ii) and (iii) of
subparagraph (B)''; and
(ii) in subparagraph (B)--

(I) in the matter preceding clause (i), by striking ``With
respect'' and all that follows through the end of clause (i)
and inserting the following:

``(i) Performance measurement.--With respect to fiscal year
2005 and each fiscal year thereafter, the Secretary shall
measure the performance of each State agency with respect to
the criteria established under subparagraph (A)(i).'';

(II) in clause (ii), by striking ``(ii) subject to
paragraph (3),'' and inserting the following:

``(ii) Performance bonuses for fiscal years 2005 through
2017.--With respect to each of fiscal years 2005 through
2017, subject to paragraph (3), the Secretary shall''; and

(III) by adding at the end the following:

``(iii) Performance bonuses for fiscal years 2018 and
thereafter.--

``(I) In general.--With respect to fiscal year 2018 and
each fiscal year thereafter, subject to subclause (II) and
paragraph (3), the Secretary shall award performance bonus
payments in the following fiscal year, in a total amount of
$6,000,000 for each fiscal year, to State agencies that meet
standards for high or most improved performance established
by the Secretary under subparagraph (A)(ii) for the measure
of application processing timeliness.
``(II) Performance bonus payments for fiscal year 2018
performance.--The Secretary shall award performance bonus
payments in a total amount of $6,000,000 to State agencies in
fiscal year 2019 for fiscal year 2018 performance, in
accordance with subclause (I).''.

(2) Conforming amendment.--Section 16(i)(1) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(i)(1)) is amended by
striking ``(as defined in subsection (d)(1))''.

[[Page S4682]]

SEC. 4111. REQUIREMENT OF LIVE-PRODUCTION ENVIRONMENTS FOR
CERTAIN PILOT PROJECTS RELATING TO COST SHARING
FOR COMPUTERIZATION.

Section 16(g)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(g)(1)) (as amended by section 4110(a)(2)) is
amended--
(1) in subparagraph (F), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and indenting
appropriately;
(2) by redesignating subparagraphs (A) through (G) as
clauses (i) through (vii), respectively, and indenting
appropriately;
(3) in the matter preceding clause (i) (as so
redesignated)--
(A) by striking ``paragraphs (2) and (3)'' and inserting
``paragraph (2)''; and
(B) by striking ``in the planning'' and inserting the
following: ``in the--
``(A) planning'';
(4) in clause (v) (as so redesignated) of subparagraph (A)
(as so designated), by striking ``implementation, including
through pilot projects in limited areas for major systems
changes as determined under rules promulgated by the
Secretary, data from which'' and inserting the following:
``implementation, including a requirement that--

``(I) such testing shall be accomplished through pilot
projects in limited areas for major systems changes (as
determined under rules promulgated by the Secretary);
``(II) each pilot project described in subclause (I) that
is carried out before the implementation of a system shall be
conducted in a live-production environment; and
``(III) the data resulting from each pilot project carried
out under this clause''; and

(5) by adding at the end the following:
``(B) operation of 1 or more automatic data processing and
information retrieval systems that the Secretary determines
may continue to be operated in accordance with clauses (i)
through (vii) of subparagraph (A).''.

SEC. 4112. AUTHORIZATION OF APPROPRIATIONS.

Section 18(a)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(a)(1)) is amended in the first sentence by
striking ``2018'' and inserting ``2023''.

SEC. 4113. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

Section 25(b)(2) of the Food and Nutrition Act of 2008 (7
U.S.C. 2034(b)(2)) is amended--
(1) in subparagraph (B) by striking ``and'' at the end;
(2) in subparagraph (C) by striking ``fiscal year 2015 and
each fiscal year thereafter.'' and inserting ``each of fiscal
years 2015 through 2018; and''; and
(3) by adding at the end the following:
``(D) $5,000,000 for fiscal year 2019 and each fiscal year
thereafter.''.

SEC. 4114. NUTRITION EDUCATION STATE PLANS.

Section 28(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036a(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B)--
(i) in the matter preceding clause (i), by striking
``Except as provided in subparagraph (C), a'' and inserting
``A'';
(ii) in clause (ii), by striking ``and'' after the
semicolon;
(iii) by redesignating clause (iii) as clause (iv); and
(iv) by inserting after clause (ii) the following:
``(iii) describe how the State agency shall use an
electronic reporting system that measures and evaluates the
projects; and''; and
(B) by striking subparagraph (C);
(2) in paragraph (3)(B), in the matter preceding clause
(i), by inserting ``, the Director of the National Institute
of Food and Agriculture,'' before ``and outside
stakeholders'';
(3) in paragraph (5), by inserting ``the expanded food and
nutrition education program or'' before ``other health
promotion''; and
(4) by adding at the end the following:
``(6) Report.--The State agency shall submit to the
Secretary an annual evaluation report in accordance with
regulations issued by the Secretary.''.

SEC. 4115. WORK ACTIVATION PROGRAM FOR ADULTS WITH DEPENDENT
CHILDREN.

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:

``SEC. 30. WORK ACTIVATION PROGRAM FOR ADULTS WITH DEPENDENT
CHILDREN.

``(a) Definitions.--In this section:
``(1) Eligible participant.--The term `eligible
participant' means an individual who, during a particular
month, is--
``(A) a parent in a household with dependent children;
``(B) at least 19, and not more than 55, years of age;
``(C) not disabled;
``(D) a member of a household in which 1 or more parents or
children receive supplemental nutrition assistance program
benefits in the month;
``(E) a member of a household that received supplemental
nutrition assistance program benefits for more than 3 months
in the year; and
``(F) employed less than 100 hours in the month.
``(2) Married couple household.--The term `married couple
household' means a household that includes 2 eligible
participants who are married to each other and have dependent
children.
``(3) Successful engagement in work activation.--The term
`successful engagement in work activation' means--
``(A) in the case of an individual who is eligible and
required to participate in interim work activation,
performance during the month that fulfills the activity and
hour requirements of subsection (c);
``(B) in the case of an individual who is required to
participate in full work activation, performance during the
month that fulfills the activity and hour requirements of
subsection (d); and
``(C) in the case of an individual who meets the
eligibility criteria described in subsection (e)(1),
performance that fulfills the activity and hour requirements
of that subsection.
``(4) Work and work preparation activities.--The term `work
and work preparation activities' means--
``(A) unsubsidized employment;
``(B) subsidized private sector employment;
``(C) subsidized public sector employment;
``(D) work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient
private sector employment is not available;
``(E) on-the-job training;
``(F) job readiness assistance;
``(G) a community service program;
``(H) vocational educational training (not to exceed 1 year
with respect to any individual);
``(I) job skills training directly related to employment;
``(J) education directly related to employment, in the case
of a recipient who has not received a high school diploma or
a certificate of high school equivalency;
``(K) satisfactory attendance at secondary school or in a
course of study leading to a certificate of general
equivalence, in the case of a recipient who has not completed
secondary school or received such a certificate;
``(L) the provision of child care services to an individual
who is participating in a community service program;
``(M) workfare under section 20; and
``(N) supervised job search.
``(b) Work Activation Program.--
``(1) In general.--As a condition of receiving supplemental
nutrition assistance program funds under this Act, a State
agency shall be required to operate a work activation program
for eligible participants.
``(2) Special rules for married couple households.--
``(A) In general.--In the case of eligible participants who
are spouses in a married couple household--
``(i) the work activation requirement of this section shall
apply only if the sum of the combined current employment of
both spouses is less than 100 hours per month; and
``(ii) both spouses shall be considered to have achieved
successful engagement in the work activation program if
either spouse fulfills the work activation requirements
described in subsection (c), (d), or (e)(1).
``(B) Total required hours.--The total combined number of
hours of required work and work preparation activities for
both spouses in a married couple household shall not be
greater than the total number of hours required for a single
head of household.
``(C) Requirement.--In carrying out this section, a State
agency shall ensure that, for any month--
``(i) the proportion that--

``(I) the number of married couple households that are
required to participate in work activation under this section
in a month; bears to
``(II) the number of all households that are required to
participate in work activation under this section in the same
month; is not greater than--

``(ii) the proportion that--

``(I) the number of all married couple households with
eligible participants in the month; bears to
``(II) the number of all households with eligible
participants in the same month.

``(c) Short-Term Interim Work Activation.--
``(1) In general.--A State agency may require eligible
participants who meet the criteria in paragraph (2) to engage
in--
``(A) interim work activation as described in this
subsection; or
``(B) full work activation as described in subsection (d).
``(2) Eligibility.--A State agency may require an eligible
participant to participate in interim work activation instead
of full work activation if the eligible participant has not
engaged in work activation under this section in the
preceding 3 years.
``(3) Required job search.--A participant in interim work
activation shall be required--
``(A) to participate in supervised job search for at least
6 hours per week; and
``(B) to engage in such additional activities as the State
agency may require.
``(4) Time limit on interim work activation.--
``(A) In general.--An eligible participant shall not
participate in interim work activation for more than 3
months.
``(B) Additional time.--After an eligible participant has
participated in interim work activation for 3 months, the
State agency shall require the eligible participant--
``(i) to maintain at least 100 hours of employment per
month; or
``(ii) to participate in full work activation.
``(d) Full Work Activation.--
``(1) In general.--As a condition of receiving supplemental
nutrition assistance program funds under this Act, a State
agency

[[Page S4683]]

shall require all or part of the eligible participants in the
State to engage in full work activation under this section.
``(2) Requirements.--An eligible participant who is
required to participate in full work activation in a month
shall be required to engage in 1 or more work and work
preparation activities for an average of 100 hours per month.
``(3) Limitation.--Of the total number of required hours
described in paragraph (2), not fewer than 20 hours per week
shall be attributable to an activity described in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (L),
(M), or (N) of subsection (a)(4).
``(4) Participation in community service or workfare.--At
least 10 percent of the eligible participants that a State
requires to participate in full work activation under this
section shall be required to participate in activities
described in subparagraph (D), (G), or (M) of subsection
(a)(4).
``(5) Work activation not employment.--Other than
unsubsidized employment described in subsection (a)(4)(A),
participation in work and work preparation activities under
this section shall not be--
``(A) considered to be employment; or
``(B) subject to any law pertaining to wages, compensation,
hours, or conditions of employment under any law administered
by the Secretary of Labor.
``(6) Additional required activity.--Except as provided in
subsection (g), nothing in this section prevents a State from
requiring more than 100 hours per month of participation in
work and work preparation activities.
``(e) Limitations and Special Rules.--
``(1) Single teen head of household or married teen who
maintains satisfactory school attendance.--For purposes of
determining monthly participation rates under this section,
an eligible participant who is married or a head of household
and who has not attained 20 years of age shall be considered
to have completed successful engagement in work activation
for a month if the eligible participant--
``(A) maintains satisfactory attendance at secondary school
or the equivalent during the month; or
``(B) participates in education directly related to
employment for an average of at least 20 hours per week
during the month.
``(2) Limitation on number of persons who may be treated as
engaged in work activation by reason of participation in
educational activities.--For purposes of determining monthly
participation rates under this section, not more than 30
percent of the number of individuals in a State who are
treated as having completed successful engagement in work
activation for a month may be individuals who are determined
to be engaged in work activation for the month by reason of
participation in vocational educational training.
``(f) State Option for Participation Requirement
Exemptions.--
``(1) In general.--For any fiscal year, a State agency, at
the option of the State agency, may--
``(A) exempt a household that includes a child who has not
attained 12 months of age from engaging in work activation;
and
``(B) disregard that household in determining the monthly
participation rates under this section until the child has
attained 12 months of age.
``(2) Exclusion.--For purposes of determining monthly
participation rates under this section, a household that
includes a child who has not attained 6 years of age shall be
considered to be successfully engaged in work activation for
a month if a member of the household receiving supplemental
nutrition assistance program benefits is engaged in work
activation for an average of at least 20 hours per week
during the month.
``(g) Penalties Against Individuals.--
``(1) In general.--Except as provided in paragraph (3), if
an eligible participant in a household receiving assistance
under the State program funded under this section fails to
complete successful engagement in work activation in
accordance with this section, the State agency shall--
``(A) in accordance with paragraph (2), reduce the amount
of assistance otherwise payable to the entire household pro
rata (or more, at the option of the State agency) with
respect to the month immediately after any month in which the
eligible participant fails to perform; or
``(B) terminate the assistance entirely.
``(2) Pro rata reduction.--For purposes of paragraph
(1)(A), the amount of the pro rata reduction shall equal the
product obtained by multiplying--
``(A) the normal monthly amount of assistance to the entire
household that would have been received if not for the
reduction under paragraph (1)(A); by
``(B) the proportion that--
``(i) the hours of required work and work preparation
activities performed by the eligible participant during the
month; bears to
``(ii) the number or hours of work and work preparation
activities the State agency required the eligible participant
to perform in accordance with this section.
``(3) Exception.--A State may not reduce or terminate
assistance under the State program funded under this section
or any other State program funded with qualified State
expenditures (as defined in section 409(a)(7)(B) of the
Social Security Act (42 U.S.C. 609(a)(7)(B))) based on a
refusal of an eligible participant to engage in work and work
preparation activities required under this section if--
``(A) the eligible participant is a single custodial parent
caring for a child who has not attained 6 years of age; and
``(B) the eligible participant proves that the eligible
participant has a demonstrated inability (as determined by
the State agency) to obtain needed child care, due to--
``(i) unavailability of appropriate child care within a
reasonable distance from the home or work site of the
eligible participant; or
``(ii) unavailability of all affordable child care
arrangements, including formal child care and all informal
child care by a relative or under other arrangements.
``(h) Limitation on Hours of Required Participation in
Community Service or Workfare.--
``(1) In general.--The maximum number of hours during a
month that an eligible participant shall be required under
this section to work in a community service program or a
workfare program under section 20 shall not exceed the
quotient obtained by dividing--
``(A) the total dollar cost of all means-tested benefits
received by the household for that month, as determined under
paragraph (2); by
``(B) the Federal minimum wage.
``(2) Total dollar cost of all means-tested benefits
defined.--
``(A) In general.--Except as provided in subparagraph (B),
the total dollar cost of all means-tested benefits shall
equal the sum of the dollar cost of all benefits received by
the household from--
``(i) the supplemental nutrition assistance program;
``(ii) the State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) or any other
State program funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i) of that Act (42 U.S.C.
609(a)(7)(B)(i))); and
``(iii) any assistance provided to a household, landlord,
or public housing agency (as defined in section 3(b)(6) of
the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(6))) to subsidize the rental payment for a dwelling
unit, including assistance provided for public housing
dwelling units under section 3 of the United States Housing
Act of 1937 (42 U.S.C. 1437a) and assistance provided under
section 8 of that Act (42 U.S.C. 1437f).
``(B) Value of benefits during sanction.--For purposes of
subparagraph (A), if the dollar value of 1 or more benefits
received by a household in a month has been reduced under
subsection (g) or another sanction requirement, the
calculated dollar value of the sanctioned benefits shall
equal the dollar value of the benefit that would have been
received if the benefit had not been reduced by the sanction.
``(3) Additional activities.--Nothing in this subsection
prevents a State agency from requiring an eligible
participant to engage in activities not described in
paragraph (1) for additional hours during the month.
``(i) Work Activation Participation Goals.--
``(1) In general.--As a condition of receiving supplemental
nutrition assistance program funds under this Act, except as
provided in paragraph (2), a State agency shall achieve for
each quarter of the fiscal year with respect to all eligible
participants receiving assistance under the State program
funded under this section for that fiscal year at least the
participation rate specified in the following table:

------------------------------------------------------------------------
The quarterly  participation
``If the fiscal year is:             rate  shall be at least:
------------------------------------------------------------------------
2019......................................  20 percent
2020......................................  35 percent
2021......................................  50 percent
2022......................................  65 percent
2023......................................  80 percent.
------------------------------------------------------------------------

``(2) Adjustment if recessionary period.--If the average
national unemployment rate during a quarter of a fiscal year,
as determined by the Bureau of Labor Statistics of the
Department of Labor, is more than 8 percent, the
participation goal for the immediately succeeding quarter
shall equal the product obtained by multiplying--

[[Page S4684]]

``(A) the applicable quarterly participation rate under
paragraph (1); by
``(B) 0.8.
``(j) Calculation of Work Activation Participation Rates.--
``(1) Definition of sanctioned recipient.--In this
subsection, the term `sanctioned recipient' means any
eligible participant who--
``(A) was required to participate in work activation in a
month;
``(B) failed to perform the assigned work and work
preparation activities so as to meet the relevant hourly
requirements in subsection (c), (d), or (e)(2); and
``(C) was sanctioned by a reduced benefit payment in the
subsequent month under subsection (g).
``(2) Requirements.--The work activation participation rate
for a State for any quarter of a fiscal year shall equal the
average of the monthly participation rates for the State
during the 3 months of that quarter.
``(3) Monthly participation rate.--For purposes of
paragraph (2), the monthly participation rate shall equal the
ratio of all countable participants to all eligible
participants in the month, as determined under paragraph (4).
``(4) Ratio of all countable participants to all eligible
participants.--Subject to paragraph (5), the ratio of all
countable participants to all eligible participants in a
month equals the proportion that--
``(A) the sum obtained by adding--
``(i) all eligible participants who--

``(I) were required by the State to engage in interim work
activation, full work activation, or education under
subsection (e)(1) during the month; and
``(II) fulfilled the criteria for successful engagement in
work activation for that activity during the month; and

``(ii) all sanctioned recipients for that month; bears to
``(B) the average number of eligible participants in the
State in that month.
``(5) Multiple eligible participants.--A married couple
household consisting of more than 1 eligible participant
shall be counted as a single eligible participant for
purposes of calculating the participation rate under this
subsection.
``(k) Penalties for Inadequate State Performance.--
``(1) In general.--Beginning in the first quarter of fiscal
year 2020 and for each subsequent quarter of fiscal year 2020
and of each subsequent fiscal year, each State shall count
the monthly average number of countable participants under
this section.
``(2) Reduction in funding.--If the monthly average number
of countable participants in a State of a fiscal year is not
sufficient to fulfill the relevant work activation
participation goal under subsection (i) during that quarter,
the supplemental nutrition assistance program funding for the
State under this Act shall be reduced for the fiscal quarter
that begins 180 days after the first day of the quarter in
which the inadequate performance occurred in accordance with
paragraph (3).
``(3) Funding in penalized quarter.--The total amount of
funding a State shall receive for all households with
eligible participants for a quarter for which funding is
reduced under paragraph (2) shall equal the product obtained
by multiplying--
``(A) the total amount of funding that the State would have
received in the preceding quarter for all households with
eligible participants if no reduction had been in place; by
``(B) the ratio of all countable participants to all
eligible participants (as determined under subsection (j)(4))
for the quarter that began 180 days before the first day of
the quarter for which funding is reduced.
``(l) Funding To Administer Work Activation.--
``(1) TANF funding.--
``(A) In general.--Notwithstanding any other provision of
law, for fiscal year 2019 and each subsequent fiscal year, a
State that receives supplemental nutrition assistance program
funds under this Act may use during that fiscal year to carry
out the work activation program of the State under this
section--
``(i) any of the Federal funds available to the State
through the State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.) in that
fiscal year; and
``(ii) any of the funds from State sources allocated to the
operation of the program described in clause (i).
``(B) Effect.--Any State that uses State funds allocated to
the State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) to administer the
work activation program of that State under this section may
treat those funds as qualified State expenditures (as defined
in section 409(a)(7)(B)(i) of that Act (42 U.S.C.
609(a)(7)(B)(i))) for purposes of meeting the requirements of
section 409(a)(7) of that Act (42 U.S.C. 609(a)(7)) in that
fiscal year.
``(2) Workforce investment act funding.--Notwithstanding
any other provision of law, for fiscal year 2019 and each
subsequent fiscal year, a State that receives Federal funds
under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.) may use up to 50 percent of those funds during that
fiscal year to carry out the work activation program of the
State under this section.
``(3) Supplemental nutrition assistance program employment
and training program.--Notwithstanding any other provision of
law, for fiscal year 2019 and each subsequent fiscal year, a
State that receives Federal funds under this Act for an
employment and training program under section 6(d) may use
those funds during that fiscal year to carry out the work
activation program of the State under this section.''.

SEC. 4116. EMERGENCY FOOD ASSISTANCE PROGRAM.

(a) State Plan.--Section 202A(b) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7503(b)) is amended--
(1) in paragraph (3), by striking ``and'' after the
semicolon;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) at the option of the State agency, describe a plan of
operation for 1 or more projects in partnership with 1 or
more emergency feeding organizations located in the State to
harvest, process, and package donated commodities received
under section 203D(d); and
``(6) describe a plan, which may include the use of a State
advisory board established under subsection (c), that
provides emergency feeding organizations or eligible
recipient agencies within the State an opportunity to provide
input on the commodity preferences and needs of the emergency
feeding organization or eligible recipient agency.''.
(b) State and Local Supplementation of Commodities.--
Section 203D of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7507) is amended by adding at the end the following:
``(d) Projects to Harvest, Process, and Package Donated
Commodities.--
``(1) Definition of project.--In this subsection, the term
`project' means the harvesting, processing, or packaging of
unharvested, unprocessed, or unpackaged commodities donated
by agricultural producers, processors, or distributors for
use by emergency feeding organizations under subsection (a).
``(2) Federal funding for projects.--
``(A) In general.--Subject to subparagraphs (B) and (C) and
paragraph (3), using funds made available under paragraph
(5), the Secretary may provide funding to States to pay for
the costs of carrying out a project.
``(B) Federal share.--The Federal share of the cost of a
project under subparagraph (A) shall not exceed 50 percent of
the total cost of the project.
``(C) Allocation.--
``(i) In general.--Each fiscal year, the Secretary shall
allocate to States that have submitted under section
202A(b)(5) a State plan describing a plan of operation for a
project the funds made available under subparagraph (A) based
on a formula determined by the Secretary.
``(ii) Reallocation.--If the Secretary determines that a
State will not expend all of the funds allocated to the State
for a fiscal year under clause (i), the Secretary shall
reallocate the unexpended funds to other States that have
submitted under section 202A(b)(5) a State plan describing a
plan of operation for a project during that fiscal year or
the subsequent fiscal year, as the Secretary determines
appropriate.
``(iii) Reports.--Each State to which funds are allocated
for a fiscal year under this subparagraph shall, on a regular
basis, submit to the Secretary financial reports describing
the use of the funds.
``(3) Project purposes.--A State may only use Federal funds
received under paragraph (2) for a project the purposes of
which are--
``(A) to reduce food waste at the agricultural production,
processing, or distribution level through the donation of
food;
``(B) to provide food to individuals in need; and
``(C) to build relationships between agricultural
producers, processors, and distributors and emergency feeding
organizations through the donation of food.
``(4) Cooperative agreements.--The Secretary may encourage
a State agency that carries out a project using Federal funds
received under paragraph (2) to enter into cooperative
agreements with State agencies of other States under section
203B(d) to maximize the use of commodities donated under the
project.
``(5) Funding.--Out of funds not otherwise appropriated,
the Secretary of the Treasury shall transfer to the Secretary
to carry out this subsection $4,000,000 for each of fiscal
years 2019 through 2023, to remain available until the end of
the subsequent fiscal year.''.
(c) Food Waste.--Section 203D of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7507) (as amended by
subsection (b)) is amended by adding at the end the
following:
``(e) Food Waste.--The Secretary shall issue guidance
outlining best practices to minimize the food waste of the
commodities donated under subsection (a).''.
(d) Emergency Food Program Infrastructure Grants.--Section
209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C.
7511a(d)) is amended by striking ``2018'' and inserting
``2023''.
(e) Availability of Commodities for the Emergency Food
Assistance Program.--Section 27(a) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2036(a)) is amended--
(1) in paragraph (1), by striking ``2018'' and inserting
``2023''; and
(2) in paragraph (2)--
(A) in subparagraph (C), by striking ``2018'' and inserting
``2023'';
(B) in subparagraph (D)--
(i) in the matter preceding clause (i), by striking
``2018'' and inserting ``2023'';

[[Page S4685]]

(ii) in clause (iii), by striking ``and'' after the
semicolon;
(iii) in clause (iv), by striking ``and'' after the
semicolon;
(iv) by adding at the end the following:
``(v) for fiscal year 2019, $23,000,000;
``(vi) for fiscal year 2020, $35,000,000;
``(vii) for fiscal year 2021, $35,000,000;
``(viii) for fiscal year 2022, $35,000,000; and
``(ix) for fiscal year 2023, $35,000,000; and''; and
(C) in subparagraph (E)--
(i) by striking ``2019'' and inserting ``2024'';
(ii) by striking ``(D)(iv)'' and inserting ``(D)(ix)''; and
(iii) by striking ``June 30, 2017'' and inserting ``June
30, 2023''.

SEC. 4117. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended--
(1) in subsection (d), by striking ``7(i)'' and inserting
``7(h)'';
(2) in subsection (i), by striking ``7(i)'' and inserting
``7(h)''; and
(3) in subsection (o)(1)(A), by striking ``(r)(1)'' and
inserting ``(q)(1)''.
(b) Section 5(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(a)) is amended by striking ``3(n)(4)'' each place
it appears and inserting ``3(m)(4)''.
(c) Section 8 of the Food and Nutrition Act of 2008 (7
U.S.C. 2017) is amended--
(1) in subsection (e)(1), by striking ``3(n)(5)'' and
inserting ``3(m)(5)''; and
(2) in subsection (f)(1)(A), by striking ``3(n)(5)'' and
inserting ``3(m)(5)''.
(d) Section 9(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2018(c)) is amended in the third sentence by striking
``to any used by'' and inserting ``to, and used by,''.
(e) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended in the first sentence--
(1) by striking ``or the Federal Savings and Loan Insurance
Corporation'' each place it appears; and
(2) by striking ``3(p)(4)'' and inserting ``3(o)(4)''.
(f) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(1) by striking ``3(t)(1)'' each place it appears and
inserting ``3(s)(1)''; and
(2) by striking ``3(t)(2)'' each place it appears and
inserting ``3(s)(2)''.
(g) Section 18(e) of the Food and Nutrition Act of 2008 (7
U.S.C. 2027(e)) is amended in the first sentence by striking
``7(f)'' and inserting ``7(e)''.
(h) Section 25(a)(1)(B)(i)(I) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2034(a)(1)(B)(i)(I)) is amended by striking
``service;;'' and inserting ``service;''.
______