US Codex
Pub. L.
Notes

Title IV — Nutrition

113th Congress · Approved Feb 7, 2014 · 128 Stat. 649 · Lineage

TITLE IV Nutrition

Subtitle A Supplemental Nutrition Assistance Program

SEC. 4001. Preventing Payment of Cash to Recipients of Supplemental Nutrition Assistance Benefits for the Return of Empty Bottles and Cans Used to Contain Food Purchased with Benefits Provided under the Program.

Section 3(k)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)(1)) is amended—
(1)
by striking “ and hot foods” and inserting “ hot foods”; and
(2)
by adding at the end the following: “ 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,”.

SEC. 4002. Retail Food Stores.

(a)
Definition of Retail Food Store.— Section 3(p)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is amended—
(1)
by inserting “ at least 7” after “ a variety of”; and
(2)
by striking “ at least 2” and inserting “ at least 3”.
(b)
Alternative Benefit Delivery.— Section 7(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended—
(1)
by striking paragraph (2) and inserting the following:

“(2) Imposition of costs.—

“(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).”

; and

(2)
by adding at the end the following:

“(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 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 point-of-sale debit transactions.”

(c)
Electronic Benefit Transfer Auditability.— Section 7(h)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(2)(C)) is amended by striking clause (ii) and inserting the following:

“(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)
Electronic Benefit Transfers.— Section 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking “ is operational—” and all that follows through “ (ii) in the case of other participating stores,” and inserting “ is operational”.
(e)
Approval of Retail Food Stores and Wholesale Food Concerns.— Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended—
(1)
in subsection (a)(1), in the second sentence, by striking “ ; and (C)” and inserting “ ; (C) whether the applicant is located in an area with significantly limited access to food; and (D)”;
(2)
in subsection (c), in the first sentence, by inserting “ purchase invoices, or program-related records,” after “ relevant income and sales tax filing documents,”; and
(3)
by adding at the end the following:

“(g) EBT Service Requirement.—An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).”

SEC. 4003. Enhancing Services to Elderly and Disabled Supplemental Nutrition Assistance Program Participants.

(a)
Enhancing Services to Elderly and Disabled Program Participants.— Section 3(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)) is amended—
(1)
in paragraph (3), by striking “ and” at the end;
(2)
in paragraph (4), by striking the period at the end and inserting “ ; and”; and
(3)
by inserting after paragraph (4) the following:

“(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.”

(b)
Implementation.—
(1)
Issuance of rules.— The Secretary shall issue regulations that—
(A)
establish criteria to identify a food purchasing and delivery service referred to in section 3(p)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(5)); and
(B)
establish procedures to ensure that the service—
(i)
does not charge more for a food item than the price paid by the service for the food item;
(ii)
offers food delivery service at no or low cost to households under that Act;
(iii)
ensures that benefits provided under the supplemental nutrition assistance program are used only to purchase food (as defined in section 3 of that Act (7 U.S.C. 2012));
(iv)
limits the purchase of food, and the delivery of the food, to households eligible to receive services described in section 3(p)(5) of that Act (7 U.S.C. 2012(p)(5));
(v)
has established adequate safeguards against fraudulent activities, including unauthorized use of electronic benefit cards issued under that Act; and
(vi)
meets such other requirements as the Secretary determines to be appropriate.
(2)
Limitation.— Before the issuance of rules under paragraph (1), the Secretary may not approve more than 20 food purchasing and delivery services referred to in section 3(p)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(5)) to participate as retail food stores under the supplemental nutrition assistance program.

SEC. 4004. Food Distribution Program on Indian Reservations.

(a)
In General.— Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by striking “ 2012” and inserting “ 2018”.
(b)
Feasibility Study, Report, and Demonstration Project for Indian Tribes.—
(1)
Definitions.— In this subsection:
(A)
Indian; indian tribe.— The terms “Indian” and “Indian tribe” have the meaning given the terms in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(B)
Tribal organization.— The term “tribal organization” has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(2)
Study.— The Secretary shall conduct a study to determine the feasibility of tribal administration of Federal food assistance programs, services, functions, and activities (or portions thereof), in lieu of State agencies or other administrating entities.
(3)
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 Committee on Agriculture, Nutrition, and Forestry of the Senate a report that—
(A)
contains a list of programs, services, functions, and activities with respect to which it would be feasible to be administered by a tribal organization;
(B)
a description of whether that administration would necessitate a statutory or regulatory change; and
(C)
such other issues that may be determined by the Secretary and developed through consultation pursuant to paragraph (4).
(4)
Consultation with indian tribes.— In developing the report required by paragraph (3), the Secretary shall consult with tribal organizations.
(5)
Funding.— Out of any funds made available under section 18 for fiscal year 2014, the Secretary shall make available to carry out the study and report described in paragraphs (2) and (3) $1,000,000, to remain available until expended.
(6)
Traditional and local foods demonstration project.—
(A)
In general.— Subject to the availability of appropriations, the Secretary shall pilot a demonstration project by awarding a grant to 1 or more tribal organizations authorized to administer the food distribution program on Indian reservations under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)) for the purpose of purchasing nutritious and traditional foods, and when practicable, foods produced locally by Indian producers, for distribution to recipients of foods distributed under that program.
(B)
Administration.— The Secretary may award a grant on a noncompetitive basis to 1 or more tribal organizations that have the administrative and financial capability to conduct a demonstration project, as determined by the Secretary.
(C)
Consultation, technical assistance, and training.— During the implementation phase of the demonstration project, the Secretary shall consult with Indian tribes and provide outreach to Indian farmers, ranchers, and producers regarding the training and capacity to participate in the demonstration project.
(D)
Funding.—
(i)
Authorization of appropriations.— There is authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2014 through 2018.
(ii)
Relationship to other authorities.— The funds and authorities provided under this subparagraph are in addition to any other funds or authorities the Secretary may have to carry out activities described in this paragraph.

SEC. 4005. Exclusion of Medical Marijuana from Excess Medical Expense Deduction.

Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(5)) is amended by adding at the end the following:

“(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.”

SEC. 4006. Standard Utility Allowances Based on the Receipt of Energy Assistance Payments.

(a)
Standard Utility Allowances in the Supplemental Nutrition Assistance Program.— Section 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended—
(1)
in clause (i), by inserting “ , subject to clause (iv)” after “ Secretary”; and
(2)
in clause (iv), by striking subclause (I) and inserting the following:

“(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 household 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.”

(b)
Conforming Amendment.— Section 2605(f)(2)(A) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended by inserting before the semicolon the following: “ , except that, for purposes of the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such payments or allowances were greater than $20 annually, consistent with section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the Secretary of Agriculture”.
(c)
Application and Implementation.—
(1)
In general.— Except as provided in paragraph (2), this section and the amendments made by this section shall—
(A)
take effect 30 days after the date of enactment of this Act; and
(B)
apply with respect to certification periods that begin after that date.
(2)
State option to delay implementation for current recipients.— A State may, at the option of the State, implement a policy that eliminates or reduces the effect of the amendments made by this section on households that received a standard utility allowance as of the date of enactment of this Act, for not more than a 5-month period beginning on the date on which the amendments would otherwise apply to the respective household.

SEC. 4007. Eligibility Disqualifications.

Section 6(e)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking “ section;” and inserting the following:

“(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;”

SEC. 4008. Eligibility Disqualifications for Certain Convicted Felons.

(a)
In General.— Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by adding at the end the following:

“(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).”

(b)
Conforming Amendment.— Section 5(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the second sentence by striking “ sections 6(b), 6(d)(2), and 6(g)” and inserting “ subsections (b), (d)(2), (g), and (r) of section 6”.
(c)
Inapplicability to Convictions Occurring on or Before Enactment.— The amendments made by this section shall not apply to a conviction if the conviction is for conduct occurring on or before the date of enactment of this Act.

SEC. 4009. Ending Supplemental Nutrition Assistance Program Benefits for Lottery or Gambling Winners.

(a)
In General.— Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) (as amended by section 4008) is amended by adding at the end the following:

“(s) Ineligibility for Benefits Due to Receipt of Substantial Lottery or Gambling Winnings.—

“(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. 4010. Improving Security of Food Assistance.

Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(8)) is amended—
(1)
in the paragraph heading, by striking “ card fee” and inserting “ of cards”;
(2)
by striking “ A State” and inserting the following:

“(A) Fees.—A State”

; and

(3)
by adding after subparagraph (A) (as so designated) the following:

“(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 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.”

SEC. 4011. Technology Modernization for Retail Food Stores.

(a)
Mobile Technologies.— Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by section 4030(e)) is amended by adding at the end the following:

“(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;

“(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.”

(b)
Acceptance of Benefits Through On-line Transactions.—
(1)
In general.— Section 7 of the Food and Nutrition Act of 2008 (7 U.S.C. 2016) is amended by adding at the end the following:

“(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.

“(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 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.”

(2)
Conforming amendments.—
(A)
Section 7(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(b)) is amended by striking “ purchase food in retail food stores” and inserting “ purchase food from retail food stores”.
(B)
Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is amended in the first sentence by inserting “ 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,” after “ food so purchased,”.
(c)
Savings Clause.— Nothing in this section or an amendment made by this section alters any requirements of the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless specifically authorized in this section or an amendment made by this section.

SEC. 4012. Use of Benefits for Purchase of Community-Supported Agriculture Share.

Subsection (o)(4) of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as redesignated by section 4030(a)(4)) is amended by inserting “ , or agricultural producers who market agricultural products directly to consumers” after “ such food”.

SEC. 4013. Improved Wage Verification Using the National Directory of New Hires.

Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)) is amended—
(1)
in paragraph (3), by inserting “ and after compliance with the requirement specified in paragraph (24)” after “ section 16(e) of this Act”;
(2)
in paragraph (22), by striking “ and” at the end;
(3)
in paragraph (23)(C), by striking the period at the end and inserting “ ; and”; and
(4)
by adding at the end the following:

“(24) that the State agency shall request wage data directly from the National Directory of New Hires established under 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.”

SEC. 4014. Restaurant Meals Program.

(a)
In General.— Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)) (as amended by section 4013) is amended—
(1)
in paragraph (23)(C), by striking “ and” at the end;
(2)
in paragraph (24), by striking the period at the end and inserting “ ; and”; and
(3)
by adding at the end the following:

“(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).”

(b)
Approval of Retail Food Stores and Wholesale Food Concerns.— Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) (as amended by section 4002(d)(2)) is amended by adding at the end the following:

“(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.”

(c)
Conforming Amendments.— Section 3(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting “ subject to section 9(h)” after “ concessional prices” each place it appears.

SEC. 4015. Mandating State Immigration Verification.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is amended by striking subsection (p) and inserting the following:

“(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.”

SEC. 4016. Data Exchange Standardization for Improved Interoperability.

(a)
Data Exchange Standardization.— Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding at the end the following:

“(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.”

(b)
Application Date.—
(1)
In general.— Not later than 2 years after the date of enactment of this Act, the Secretary shall issue a proposed rule to carry out the amendments made by this section.
(2)
Requirements.— The rule shall—
(A)
identify federally required data exchanges;
(B)
include specification and timing of exchanges to be standardized;
(C)
address the factors used in determining whether and when to standardize data exchanges;
(D)
specify State implementation options; and
(E)
describe future milestones.

SEC. 4017. Pilot Projects to Improve Federal-State Cooperation in Identifying and Reducing Fraud in the Supplemental Nutrition Assistance Program.

Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended by adding at the end the following:

“(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 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 State in the previous fiscal year shall not be eligible for Federal reimbursement under this Act.”

SEC. 4018. Prohibiting Government-Sponsored Recruitment Activities.

(a)
Administrative Cost-sharing and Quality Control.— Section 16(a)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)(4)) is amended by inserting after “ recruitment activities” the following: “ designed to persuade an individual to apply for program benefits or that promote the program through television, radio, or billboard advertisements”.
(b)
Limitation on Use of Funds Authorized to Be Appropriated Under Act.— Section 18 of the Food and Nutrition Act of 2008 (7 U.S.C. 2027) is amended by adding at the end the following:

“(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).”

(c)
Ban on Recruitment Activities by Entities That Receive Funds.— Section 18 of the Food and Nutrition Act of 2008 (7 U.S.C. 2027) (as amended by subsection (b)) is amended by adding at the end the following:

“(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. 4019. Tolerance Level for Excluding Small Errors.

Section 16(c)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(A)) is amended—
(1)
by striking “ In carrying” and inserting the following:

“(i) In general.—In carrying”

; and

(2)
by adding at the end the following:

“(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.”

SEC. 4020. Quality Control Standards.

(a)
In General.— Section 16(c)(1)(D)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is amended by striking subclause (I).
(b)
Conforming Amendments.—
(1)
Section 13(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first sentence by striking “ section 16(c)(1)(D)(i)(III)” and inserting “ section 16(c)(1)(D)(i)(II)”.
(2)
Section 16(c)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)) is amended—
(A)
in subparagraph (D)—
(i)
in clause (i)—
(I)
by redesignating subclauses (II) through (IV) as subclauses (I) through (III), respectively; and
(II)
in subclause (III) (as so redesignated), by striking “ through (III)” and inserting “ and (II)”; and
(ii)
in clause (ii), by striking “ waiver amount or”;
(B)
in subparagraph (E)(i), by striking “ (D)(i)(III)” and inserting “ (D)(i)(II)”; and
(C)
in subparagraph (F), by striking “ (D)(i)(II)” each place it appears and inserting “ (D)(i)(I)”.

SEC. 4021. Performance Bonus Payments.

Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended by adding at the end the following:

“(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.”

SEC. 4022. Pilot Projects to Reduce Dependency and Increase Work Requirements and Work Effort under Supplemental Nutrition Assistance Program.

(a)
In General.— Section 16(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)) is amended—
(1)
in paragraph (1)—
(A)
in subparagraph (A)—
(i)
by striking “ 15 months” and inserting “ 24 months”; and
(ii)
by striking “ , except that for fiscal year 2013 and fiscal year 2014, the amount shall be $79,000,000”;
(B)
in subparagraph (C)—
(i)
by striking “ If a State” and inserting the following:

“(i) In general.—If a State”

; and

(ii)
by adding at the end the following:

“(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.”

; and

(C)
by adding at the end the following:

“(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—

“(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.

“(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;

“(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.

“(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—

“(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—

“(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.”

; and

(2)
by striking paragraph (5) and inserting the following:

“(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 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 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.”

(b)
Conforming Amendments.—
(1)
Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—
(A)
in subsection (d)(14), by inserting “ or a pilot project under section 16(h)(1)(F)” after “ 6(d)(4)(I)”;
(B)
in subsection (e)(3)(B)(iii), by inserting “ or a pilot project under section 16(h)(1)(F)” after “ 6(d)(4)”; and
(C)
in subsection (g)(3), in the first sentence, by inserting “ or a pilot project under section 16(h)(1)(F)” after “ 6(d)”.
(2)
Section 16(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)) is amended—
(A)
in paragraph (3), by inserting “ or a pilot project under paragraph (1)(F)” after “ 6(d)(4)”; and
(B)
in paragraph (4), by inserting “ or a pilot project under paragraph (1)(F)” after “ 6(d)(4)”.
(3)
Section 17(b)(1)(B)(iv)(III)(hh) of the Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh)) is amended by inserting “ (h)(1)(F),” after “ (g),”.
(c)
Application Date.—
(1)
In general.— The amendments made by this section (other than the amendments made by subsection (a)(2)) shall apply beginning on the date of enactment of this Act.
(2)
Process for selecting pilot programs.—
(A)
In general.— Not later than 180 days after the date of enactment of this Act, the Secretary shall—
(i)
develop and publish the process for selecting pilot projects under section 16(h)(1)(F) of the Food and Nutrition Act of 2008 (as added by subsection (a)(1)(C)); and
(ii)
issue such request for proposals for the independent evaluation as is determined appropriate by the Secretary.
(B)
Application.— The Secretary shall begin considering proposals not earlier than 90 days after the date on which the Secretary completes the actions described in subparagraph (A).
(C)
Selection.— Not later than 180 days after the date on which the Secretary completes the actions described in subparagraph (A), the Secretary shall select pilot projects from the applications submitted in response to the request for proposals issued under subparagraph (A).
(3)
Monitoring of employment and training programs.—
(A)
In general.— Not later than 18 months after the date of enactment of this Act, the Secretary shall issue interim final regulations implementing the amendments made by subsection (a)(2).
(B)
State action.— States shall include reporting measures required under section 16(h)(5) of the Food and Nutrition Act of 2008 (as amended by subsection (a)(2)) in the employment and training plans of the States for the first full fiscal year that begins not earlier than 180 days after the date that the regulations described in subparagraph (A) are published.

SEC. 4023. Cooperation with Program Research and Evaluation.

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by adding at the end the following:

“(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.”

SEC. 4024. 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 “ 2012” and inserting “ 2018”.

SEC. 4025. Review, Report, and Regulation of Cash Nutrition Assistance Program Benefits Provided in Puerto Rico.

Section 19 of the Food and Nutrition Act of 2008 (7 U.S.C. 2028) is amended by adding at the end the following:

“(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 Committee on Agriculture, Nutrition, and Forestry of the Senate, 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.”

SEC. 4026. Assistance for Community Food Projects.

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended—
(1)
in subsection (a)—
(A)
in paragraph (1)(B)—
(i)
in clause (i)—
(I)
in subclause (I), by inserting after “ individuals” the following: “ 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;”; and
(II)
in subclause (III), by inserting “ food access,” after “ food,”; and
(ii)
in clause (ii), by striking subclause (I) and inserting the following:

“(I) equipment necessary for the efficient operation of a project;”

; and

(B)
by striking paragraphs (2) and (3) and inserting the following:

“(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 ‘hunger-free communities goal’ means any of the 14 goals described in House Concurrent Resolution 302, 102nd Congress, agreed to October 5, 1992.”

(2)
in subsection (b)(2)—
(A)
in subparagraph (A), by striking “ and” at the end;
(B)
in subparagraph (B), by striking “ fiscal year 2008 and each fiscal year thereafter.” and inserting the following:

“(C) $9,000,000 for fiscal year 2015 and each fiscal year thereafter.”

(3)
in subsection (c)—
(A)
in the matter preceding paragraph (1), by striking “ private nonprofit entity” and inserting “ public food program service provider, a tribal organization, or a private nonprofit entity, including gleaners,”;
(B)
in paragraph (1)—
(i)
in subparagraph (A), by striking “ or” after the semicolon at the end;
(ii)
in subparagraph (B), by inserting “ or” after the semicolon at the end; and
(iii)
by adding at the end the following:

“(C) efforts to reduce food insecurity in the community, including food distribution, improving access to services, or coordinating services and programs;”

(C)
in paragraph (2), by striking “ and” after the semicolon at the end;
(D)
in paragraph (3), by striking the period at the end and inserting “ ; and”; and
(E)
by adding at the end the following:

“(4) collaborate with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.”

(4)
in subsection (d)—
(A)
in paragraph (3), by striking “ or” after the semicolon at the end;
(B)
in paragraph (4), by striking the period at the end and inserting “ ; or”; and
(C)
by adding at the end the following:

“(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

“(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.”

(5)
in subsection (f)(2), by striking “ 3 years” and inserting “ 5 years”; and
(6)
by striking subsections (h) and (i) and inserting the following:

“(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. 4027. Emergency Food Assistance.

(a)
Purchase of Commodities.— 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 “ 2008 through 2012” and inserting “ 2014 through 2018”;
(2)
in paragraph (2)—
(A)
in subparagraph (B), by striking “ and” at the end;
(B)
in subparagraph (C)—
(i)
by striking “ 2012” and inserting “ 2018”; and
(ii)
by striking the period at the end and inserting a semicolon; and
(C)
by adding at the end the following:

“(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.”

; and

(3)
by adding at the end the following:

“(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)
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 “ 2012” and inserting “ 2018”.

SEC. 4028. Nutrition Education.

Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(b)) is amended by inserting “ and physical activity” after “ healthy food choices”.

SEC. 4029. Retail Food Store and Recipient Trafficking.

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

“SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

“(a) Purpose.—The purpose of this section is to provide the Department 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.—

“(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.”

SEC. 4030. 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 (g), by striking “ coupon,” the last place it appears and inserting “ coupon”;
(2)
in subsection (k)(7), by striking “ or are” and inserting “ and”;
(3)
by striking subsection (l);
(4)
by redesignating subsections (m) through (t) as subsections (l) through (s), respectively; and
(5)
by inserting after subsection (s) (as so redesignated) the following:

“(t) ‘Supplemental nutrition assistance program’ means the program operated pursuant to this Act.”

(b)
Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the last sentence by striking “ benefits” and inserting “ Benefits”.
(c)
Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—
(1)
in the last sentence of subsection (i)(2)(D), by striking “ section 13(b)(2)” and inserting “ section 13(b)”; and
(2)
in subsection (k)(4)(A), by striking “ paragraph (2)(H)” and inserting “ paragraph (2)(G)”.
(d)
Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii) and (F)(iii) by indenting both clauses appropriately.
(e)
Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by redesignating the second paragraph (12) (relating to interchange fees) as paragraph (13).
(f)
Section 9(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2018(a)) is amended by indenting paragraph (3) appropriately.
(g)
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended—
(1)
in subsection (b)(3)(C), by striking “ civil money penalties” and inserting “ civil penalties”; and
(2)
in subsection (g)(1), by striking “ (7 U.S.C. 1786)” and inserting “ (42 U.S.C. 1786)”.
(h)
Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2024(b)(1)) is amended in the first sentence by striking “ an benefit” both places it appears and inserting “ a benefit”.
(i)
Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the proviso following paragraph (8) by striking “ as amended.”.
(j)
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 “ sections 7(f)” and inserting “ section 7(f)”.
(k)
Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by striking “ Food benefits” and inserting “ Benefits”.
(l)
Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking “ subsection” and inserting “ subsections”.
(m)
Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking “ (Public Law 98–8; 7 U.S.C. 612c note)” and inserting “ (7 U.S.C. 7515)”.
(n)
Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is amended—
(1)
in subsection (a)(2), by striking “ food stamp program (as defined in section 3(l) of the Food Stamp Act of 1977) or any State program carried out under the Food Stamp Act of 1977” and inserting “ supplemental nutrition assistance program (as defined in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)) or any State program carried out under that Act”;
(2)
in subsection (b)(2)—
(A)
in the paragraph heading, by striking “ the food stamp act of 1977” and inserting “ the food and nutrition act of 2008”; and
(B)
by striking “ food stamp program (as defined in section 3(l) of the Food Stamp Act of 1977), or any State program carried out under the Food Stamp Act of 1977” and inserting “ supplemental nutrition assistance program (as defined in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)), or any State program carried out under that Act”; and
(3)
in subsection (e)(2), by striking “ section 3(s) of the Food Stamp Act of 1977, when referring to the food stamp program (as defined in section 3(l) of the Food Stamp Act of 1977) or any State program carried out under the Food Stamp Act of 1977” and inserting “ section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), when referring to the supplemental nutrition assistance program (as defined in that section) or any State program carried out under that Act”.
(o)
Section 3803(c)(2)(C)(vii) of title 31 of the United States Code is amended by striking “ section 3(l)” and inserting “ section 3”.
(p)
Section 453(j)(10) of the Social Security Act (42 U.S.C. 653(j)(10)) is amended in the paragraph heading by striking “ food stamp programs” and inserting “ supplemental nutrition assistance program benefits”.
(q)
Section 1137 of the Social Security Act (42 U.S.C. 1320b–7)—
(1)
in subsection (a)(5)(B), by striking “ food stamp” and inserting “ supplemental nutrition assistance”; and
(2)
in subsection (b)(4), by striking “ food stamp program under the Food Stamp Act of 1977” and inserting “ supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)”.
(r)
Section 1631(n) of the Social Security Act (42 U.S.C. 1383) is amended in the subsection heading by striking “ Food Stamp” and inserting “ Supplemental Nutrition Assistance”.
(s)
Section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g) is amended in the section heading by striking “ food stamp programs” and inserting “ supplemental nutrition assistance programs”.
(t)
Section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended by striking “ Food Stamp Act of 1977” and inserting “ Food and Nutrition Act of 2008”.
(u)
Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended—
(1)
in subsection (h)(1), by striking “ food stamps” and inserting “ the supplemental nutrition assistance program”;
(2)
in subsection (i)(1), by striking “ food stamps provided under the Food Stamp Act of 1977” and inserting “ supplemental nutrition assistance benefits provided under the Food and Nutrition Act of 2008”; and
(3)
in subsection (l)(2)(B), by striking “ Food Stamp Act of 1977” and inserting “ Food and Nutrition Act of 2008”.
(v)
Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1871) is amended by striking “ 531” and inserting “ 454”.

SEC. 4031. Commonwealth of the Northern Mariana Islands Pilot Program.

(a)
Study.—
(1)
In general.— Prior to establishing the pilot program under subsection (b), the Secretary shall conduct a study to be completed not later than 2 years after the date of enactment of this Act to assess—
(A)
the capabilities of the Commonwealth of the Northern Mariana Islands to operate the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) in a similar manner as the program is operated in the States (as defined in section 3 of that Act (7 U.S.C. 2012)); and
(B)
alternative models of the supplemental nutrition assistance program operation and benefit delivery that best meet the nutrition assistance needs of the Commonwealth of the Northern Mariana Islands.
(2)
Scope.— The study conducted under paragraph (1)(A) shall assess the capability of the Commonwealth of the Northern Mariana Islands to fulfill the responsibilities of a State agency (as defined in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)), including—
(A)
extending and limiting participation to eligible households, as required by sections 5 and 6 of that Act (7 U.S.C. 2014, 2015);
(B)
issuing benefits through EBT cards, as required by section 7 of that Act (7 U.S.C. 2016);
(C)
maintaining the integrity of the program, including operation of a quality control system, as required by section 16(c) of that Act (7 U.S.C. 2025(c));
(D)
implementing work requirements, including operating an employment and training program, as required by section 6(d) of that Act (7 U.S.C. 2015(d)); and
(E)
paying a share of administrative costs with non-Federal funds, as required by section 16(a) of that Act (7 U.S.C. 2016(a)).
(b)
Establishment.— If the Secretary determines that a pilot program is feasible, the Secretary shall establish a pilot program for the Commonwealth of the Northern Mariana Islands to operate the supplemental nutrition assistance program in the same manner in which the program is operated in the States.
(c)
Scope.— The Secretary shall use the information obtained from the study conducted under subsection (a) to establish the scope of the pilot program established under subsection (b).
(d)
Report.— Not later than June 30, 2019, 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 pilot program carried out under this section, including an analysis of the feasibility of operating the supplemental nutrition assistance program in the Commonwealth of the Northern Mariana Islands in the same manner in which the program is operated in the States.
(e)
Funding.—
(1)
Study.— Of the funds made available under section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)), the Secretary may use to conduct the study described in subsection (a) not more than $1,000,000 for each of fiscal years 2014 and 2015.
(2)
Pilot program.—
(A)
In general.— Except as provided in subparagraph (B), of the funds made available under section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)), the Secretary may use to establish and carry out the pilot program under subsection (b), including the Federal costs for providing technical assistance to the Commonwealth of the Northern Mariana Islands, authorizing and monitoring retail food stores, and assessing pilot operations, not more than—
(i)
$13,500,000 for fiscal year 2016; and
(ii)
$8,500,000 for each of fiscal years 2017 and 2018.
(B)
Exception.— If the Secretary determines that a pilot program described in subsection (b) is not feasible, the Secretary shall provide to the Commonwealth of the Northern Mariana Islands any unspent funds described in subparagraph (A), which shall—
(i)
be made available for obligation under the Commonwealth of the Northern Mariana Islands nutrition assistance program block grant in addition to any other funds made available for that grant; and
(ii)
remain available until expended.

SEC. 4032. Annual State Report on Verification of Snap Participation.

(a)
Annual Report.— Not later than 1 year after the date specified by the Secretary during the 180-day period beginning on the date of enactment of this Act, and annually thereafter, each State agency that carries out the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) shall submit to the Secretary a report containing sufficient information for the Secretary to determine whether the State agency has, for the most recently concluded fiscal year preceding that annual date, verified that the State agency in that fiscal year—
(1)
did not issue benefits to a deceased individual; and
(2)
did not issue benefits to an individual who had been permanently disqualified from receiving benefits.
(b)
Penalty for Noncompliance.— For any fiscal year for which a State agency fails to comply with subsection (a), the Secretary shall impose a penalty that includes a reduction of up to 50 percent of the amount that would be otherwise payable to the State agency under section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) with respect to that fiscal year.
(c)
Report of Pilot Program to Test Prevention of Duplicate Participation.— Not later than 90 days after the completion in multiple States of a temporary pilot program to test the detection and prevention of duplicate participation by beneficiaries of the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), 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 assessing the feasibility, effectiveness, and cost for the expansion of the pilot program nationwide.

SEC. 4033. Service of Traditional Foods in Public Facilities.

(a)
Purposes.— The purposes of this section are—
(1)
to provide access to traditional foods in food service programs;
(2)
to encourage increased consumption of traditional foods to decrease health disparities among Indians, particularly Alaska Natives; and
(3)
to provide alternative food options for food service programs.
(b)
Definitions.— In this section:
(1)
Alaska native.— The term “Alaska Native” means a person who is a member of any Native village, Village Corporation, or Regional Corporation (as those terms are defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
(2)
Commissioner.— The term “Commissioner” means the Commissioner of Food and Drugs.
(3)
Food service program.— The term “food service program” includes—
(A)
food service at residential child care facilities that have a license from an appropriate State agency;
(B)
any child nutrition program (as that term is defined in section 25(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769f(b));
(C)
food service at hospitals, clinics, and long-term care facilities; and
(D)
senior meal programs.
(4)
Indian; indian tribe.— The terms “Indian” and “Indian tribe” have the meanings given those terms in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(5)
Traditional food.—
(A)
In general.— The term “traditional food” means food that has traditionally been prepared and consumed by an Indian tribe.
(B)
Inclusions.— The term “traditional food” includes—
(i)
wild game meat;
(ii)
fish;
(iii)
seafood;
(iv)
marine mammals;
(v)
plants; and
(vi)
berries.
(6)
Tribal organization.— The term “tribal organization” has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(c)
Program.— The Secretary and the Commissioner shall allow the donation to and serving of traditional food through food service programs at public facilities and nonprofit facilities, including facilities operated by Indian tribes and facilities operated by tribal organizations, that primarily serve Indians if the operator of the food service program—
(1)
ensures that the food is received whole, gutted, gilled, as quarters, or as a roast, without further processing;
(2)
makes a reasonable determination that—
(A)
the animal was not diseased;
(B)
the food was butchered, dressed, transported, and stored to prevent contamination, undesirable microbial growth, or deterioration; and
(C)
the food will not cause a significant health hazard or potential for human illness;
(3)
carries out any further preparation or processing of the food at a different time or in a different space from the preparation or processing of other food for the applicable program to prevent cross-contamination;
(4)
cleans and sanitizes food-contact surfaces of equipment and utensils after processing the traditional food;
(5)
labels donated traditional food with the name of the food;
(6)
stores the traditional food separately from other food for the applicable program, including through storage in a separate freezer or refrigerator or in a separate compartment or shelf in the freezer or refrigerator;
(7)
follows Federal, State, local, county, tribal, or other non-Federal law regarding the safe preparation and service of food in public or nonprofit facilities; and
(8)
follows other such criteria as established by the Secretary and Commissioner.
(d)
Liability.—
(1)
In general.— The United States, an Indian tribe, and a tribal organization shall not be liable in any civil action for any damage, injury, or death caused to any person by the donation to or serving of traditional foods through food service programs.
(2)
Rule of construction.— Nothing in paragraph (1) alters any liability or other obligation of the United States under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 1450 et seq.).

Subtitle B Commodity Distribution Programs

SEC. 4101. Commodity Distribution Program.

Section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended in the first sentence by striking “ 2012” and inserting “ 2018”.

SEC. 4102. Commodity Supplemental Food Program.

Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended—
(1)
in paragraphs (1) and (2)(B) of subsection (a), by striking “ 2012” each place it appears and inserting “ 2018”;
(2)
in the first sentence of subsection (d)(2), by striking “ 2012” and inserting “ 2018”;
(3)
by striking subsection (g) and inserting the following:

“(g) Eligibility.—Except as provided in subsection (m), the States shall only provide assistance under the commodity supplemental food program to low-income persons aged 60 and older.”

; and

(4)
by adding at the end the following:

“(m) Phase-Out.—Notwithstanding any other provision of law, an individual who receives assistance under the commodity supplemental food program on the day before the date of enactment of this subsection shall continue to receive that assistance until the date on which the individual is no longer eligible for assistance under the eligibility requirements for the program in effect on the day before the date of enactment of this subsection.”

SEC. 4103. Distribution of Surplus Commodities to Special Nutrition Projects.

Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by striking “ 2012” and inserting “ 2018”.

SEC. 4104. Processing of Commodities.

(a)
In General.— Section 17 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended—
(1)
in the section heading, by inserting “ and processing” after “ donations”; and
(2)
by adding at the end the following:

“(c) Processing.—

“(1) In general.—For any program included under subsection (b), the Secretary may, notwithstanding any other provision of Federal or State law relating to the procurement of goods and services—

“(A) retain title to commodities delivered to a processor, on behalf of a State (including a State distributing agency and a recipient agency), until such time as end products containing the commodities, or similar commodities as approved by the Secretary, are delivered to a State distributing agency or to a recipient agency; and

“(B) promulgate regulations to ensure accountability for commodities provided to a processor for processing into end products, and to facilitate processing of commodities into end products for use by recipient agencies.

“(2) Regulations.—The regulations described in paragraph (1)(B) may provide that—

“(A) a processor that receives commodities for processing into end products, or provides a service with respect to the commodities or end products, in accordance with the agreement of the processor with a State distributing agency or a recipient agency, provide to the Secretary a bond or other means of financial assurance to protect the value of the commodities; and

“(B) in the event a processor fails to deliver to a State distributing agency or a recipient agency an end product in conformance with the processing agreement entered into under this Act, the Secretary—

“(i) take action with respect to the bond or other means of financial assurance pursuant to regulations promulgated under this subsection; and

“(ii) distribute any proceeds obtained by the Secretary to 1 or more State distributing agencies and recipient agencies, as determined appropriate by the Secretary.”

(b)
Definitions.— Section 18 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended by striking paragraphs (1) and (2) and inserting the following:

“(1) Commodities.—The term ‘commodities’ means agricultural commodities and their products that are donated by the Secretary for use by recipient agencies.

“(2) End product.—The term ‘end product’ means a food product that contains processed commodities.”

(c)
Technical and Conforming Amendments.— Section 3 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended—
(1)
in subsection (a)—
(A)
in paragraph (2), by striking subparagraph (B) and inserting the following:

“(B) the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));”

; and

(B)
in paragraph (3)(D), by striking “ the Committee on Education and Labor” and inserting “ the Committee on Education and the Workforce”;
(2)
in subsection (b)(1)(A)(ii), by striking “ section 32 of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)” and inserting “ section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)”;
(3)
in subsection (e)(1)(D)(iii), by striking subclause (II) and inserting the following:

“(II) the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));”

; and

(4)
in subsection (k), by striking “ the Committee on Education and Labor” and inserting “ the Committee on Education and the Workforce”.

Subtitle C Miscellaneous

SEC. 4201. Purchase of Fresh Fruits and Vegetables for Distribution to Schools and Service Institutions.

Section 10603(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4(b)) is amended by striking “ 2012” and inserting “ 2018”.

SEC. 4202. Pilot Project for Procurement of Unprocessed Fruits and Vegetables.

Section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755) is amended by adding at the end the following:

“(f) Pilot Project for Procurement of Unprocessed Fruits and Vegetables.—

“(1) In general.—The Secretary shall conduct a pilot project under which the Secretary shall facilitate the procurement of unprocessed fruits and vegetables in not more than 8 States receiving funds under this Act.

“(2) Purpose.—The purpose of the pilot project required by this subsection is to provide selected States flexibility for the procurement of unprocessed fruits and vegetables by permitting each State—

“(A) to utilize multiple suppliers and products established and qualified by the Secretary; and

“(B) to allow geographic preference, if desired, in the procurement of the products under the pilot project.

“(3) Selection and participation.—

“(A) In general.—The Secretary shall select States for participation in the pilot project in accordance with criteria established by the Secretary and terms and conditions established for participation.

“(B) Requirement.—The Secretary shall ensure that at least 1 project is located in a State in each of—

“(i) the Pacific Northwest Region;

“(ii) the Northeast Region;

“(iii) the Western Region;

“(iv) the Midwest Region; and

“(v) the Southern Region.

“(4) Priority.—In selecting States for participation in the pilot project, the Secretary shall prioritize applications based on—

“(A) the quantity and variety of growers of local fruits and vegetables in the States on a per capita basis;

“(B) the demonstrated commitment of the States to farm-to-school efforts, as evidenced by prior efforts to increase and promote farm-to-school programs in the States; and

“(C) whether the States contain a sufficient quantity of local educational agencies, various population sizes, and geographical locations.

“(5) Recordkeeping and reporting requirements.—

“(A) Recordkeeping requirement.—States selected to participate in the pilot project, and participating school food authorities within those States, shall keep records of the fruits and vegetables received under the pilot project in such manner and form as requested by the Secretary.

“(B) Reporting requirement.—Each participating State shall submit to the Secretary a report on the success of the pilot project in the State, including information on—

“(i) the quantity and cost of each type of fruit and vegetable received by the State under the pilot project; and

“(ii) the benefit provided by those procurements in conducting school food service in the State, including meeting school meal requirements.”

SEC. 4203. Seniors Farmers’ Market Nutrition Program.

(a)
In General.— Section 4402(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended by striking “ 2012” and inserting “ 2018”.
(b)
Effective Date.— The amendment made by subsection (a) takes effect on October 1, 2013.

SEC. 4204. Dietary Guidelines for Americans.

Section 301(a) of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341(a)) is amended by adding at the end the following:

“(3) Pregnant women and young children.—Not later than the 2020 report and in each report thereafter, the Secretaries shall include national nutritional and dietary information and guidelines for pregnant women and children from birth until the age of 2.”

SEC. 4205. Multiagency Task Force.

Subtitle D of title II of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is amended by adding at the end the following:

“SEC. 242. MULTIAGENCY TASK FORCE.

“(a) In General.—The Secretary shall establish, in the office of the Under Secretary for Food, Nutrition, and Consumer Services, a multiagency task force for the purpose of providing coordination and direction for commodity programs.

“(b) Composition.—The Task Force shall be composed of at least 4 members, including—

“(1) a representative from the Food Distribution Division of the Food and Nutrition Service, who shall—

“(A) be appointed by the Under Secretary for Food, Nutrition, and Consumer Services; and

“(B) serve as Chairperson of the Task Force;

“(2) at least 1 representative from the Agricultural Marketing Service, who shall be appointed by the Under Secretary for Marketing and Regulatory Programs;

“(3) at least 1 representative from the Farm Services Agency, who shall be appointed by the Under Secretary for Farm and Foreign Agricultural Services; and

“(4) at least 1 representative from the Food Safety and Inspection Service, who shall be appointed by the Under Secretary for Food Safety.

“(c) Duties.—

“(1) In general.—The Task Force shall be responsible for evaluation and monitoring of the commodity programs to ensure that the commodity programs meet the mission of the Department—

“(A) to support the United States farm sector; and

“(B) to contribute to the health and well-being of individuals in the United States through the distribution of domestic agricultural products through commodity programs.

“(2) Specific duties.—In carrying out paragraph (1), the Task Force shall—

“(A) review and make recommendations regarding the specifications used for the procurement of food commodities;

“(B) review and make recommendations regarding the efficient and effective distribution of food commodities; and

“(C) review and make recommendations regarding the degree to which the quantity, quality, and specifications of procured food commodities align the needs of producers and the preferences of recipient agencies.

“(d) Reports.—Not later than 1 year after the date of enactment of this section, and annually thereafter, the Secretary shall submit to Congress a report that describes, for the period covered by the report—

“(1) the findings and recommendations of the Task Force; and

“(2) policies implemented for the improvement of commodity procurement programs.”

SEC. 4206. Healthy Food Financing Initiative.

Subtitle D of title II of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by section 4205) is amended by adding at the end the following:

“SEC. 243. HEALTHY FOOD FINANCING INITIATIVE.

“(a) Purpose.—The purpose of this section is to enhance the authorities of the Secretary to support efforts to provide access to healthy food by establishing an initiative to improve access to healthy foods in underserved areas, to create and preserve quality jobs, and to revitalize low-income communities by providing loans and grants to eligible fresh, healthy food retailers to overcome the higher costs and initial barriers to entry in underserved areas.

“(b) Definitions.—In this section:

“(1) Community development financial institution.—The term ‘community development financial institution’ has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702).

“(2) Initiative.—The term ‘Initiative’ means the Healthy Food Financing Initiative established under subsection (c)(1).

“(3) National fund manager.—The term ‘national fund manager’ means a community development financial institution that is—

“(A) in existence on the date of enactment of this section; and

“(B) certified by the Community Development Financial Institution Fund of the Department of Treasury to manage the Initiative for purposes of—

“(i) raising private capital;

“(ii) providing financial and technical assistance to partnerships; and

“(iii) funding eligible projects to attract fresh, healthy food retailers to underserved areas, in accordance with this section.

“(4) Partnership.—The term ‘partnership’ means a regional, State, or local public-private partnership that—

“(A) is organized to improve access to fresh, healthy foods;

“(B) provides financial and technical assistance to eligible projects; and

“(C) meets such other criteria as the Secretary may establish.

“(5) Perishable food.—The term ‘perishable food’ means a staple food that is fresh, refrigerated, or frozen.

“(6) Quality job.—The term ‘quality job’ means a job that provides wages and other benefits comparable to, or better than, similar positions in existing businesses of similar size in similar local economies.

“(7) Staple food.—

“(A) In general.—The term ‘staple food’ means food that is a basic dietary item.

“(B) Inclusions.—The term ‘staple food’ includes—

“(i) bread or cereal;

“(ii) flour;

“(iii) fruits;

“(iv) vegetables;

“(v) meat; and

“(vi) dairy products.

“(c) Initiative.—

“(1) Establishment.—The Secretary shall establish an initiative to achieve the purpose described in subsection (a) in accordance with this subsection.

“(2) Implementation.—

“(A) In general.—

“(i) In general.—In carrying out the Initiative, the Secretary shall provide funding to entities with eligible projects, as described in subparagraph (B), subject to the priorities described in subparagraph (C).

“(ii) Use of funds.—Funds provided to an entity pursuant to clause (i) shall be used—

“(I) to create revolving loan pools of capital or other products to provide loans to finance eligible projects or partnerships;

“(II) to provide grants for eligible projects or partnerships;

“(III) to provide technical assistance to funded projects and entities seeking Initiative funding; and

“(IV) to cover administrative expenses of the national fund manager in an amount not to exceed 10 percent of the Federal funds provided.

“(B) Eligible projects.—Subject to the approval of the Secretary, the national fund manager shall establish eligibility criteria for projects under the Initiative, which shall include the existence or planned execution of agreements—

“(i) to expand or preserve the availability of staple foods in underserved areas with moderate- and low-income populations by maintaining or increasing the number of retail outlets that offer an assortment of perishable food and staple food items, as determined by the Secretary, in those areas; and

“(ii) to accept benefits under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).

“(C) Priorities.—In carrying out the Initiative, priority shall be given to projects that—

“(i) are located in severely distressed low-income communities, as defined by the Community Development Financial Institutions Fund of the Department of Treasury; and

“(ii) include 1 or more of the following characteristics:

“(I) The project will create or retain quality jobs for low-income residents in the community.

“(II) The project supports regional food systems and locally grown foods, to the maximum extent practicable.

“(III) In areas served by public transit, the project is accessible by public transit.

“(IV) The project involves women- or minority-owned businesses.

“(V) The project receives funding from other sources, including other Federal agencies.

“(VI) The project otherwise advances the purpose of this section, as determined by the Secretary.

“(d) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary to carry out this section $125,000,000, to remain available until expended.”

SEC. 4207. Purchase of Halal and Kosher Food for Emergency Food Assistance Program.

Section 202 of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7502) is amended by adding at the end the following:

“(h) Kosher and Halal Food.—As soon as practicable after the date of enactment of this subsection, the Secretary shall finalize and implement a plan—

“(1) to increase the purchase of Kosher and Halal food from food manufacturers with a Kosher or Halal certification to carry out the program established under this Act if the Kosher and Halal food purchased is cost neutral as compared to food that is not from food manufacturers with a Kosher or Halal certification; and

“(2) to modify the labeling of the commodities list used to carry out the program in a manner that enables Kosher and Halal distribution entities to identify which commodities to obtain from local food banks.”

SEC. 4208. Food Insecurity Nutrition Incentive.

Section 4405 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517) is amended to read as follows:

“SEC. 4405. FOOD INSECURITY NUTRITION INCENTIVE.

“(a) In General.—In this section:

“(1) Eligible entity.—The term ‘eligible entity’ means—

“(A) a nonprofit organization (including an emergency feeding organization);

“(B) an agricultural cooperative;

“(C) a producer network or association;

“(D) a community health organization;

“(E) a public benefit corporation;

“(F) an economic development corporation;

“(G) a farmers’ market;

“(H) a community-supported agriculture program;

“(I) a buying club;

“(J) a retail food store participating in the supplemental nutrition assistance program;

“(K) a State, local, or tribal agency; and

“(L) any other entity the Secretary designates.

“(2) Emergency feeding organization.—The term ‘emergency feeding organization’ has the meaning given the term in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501).

“(3) Supplemental nutrition assistance program.—The term ‘supplemental nutrition assistance program’ means the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).

“(b) Food Insecurity Nutrition Incentive Grants.—

“(1) Authorization.—

“(A) In general.—In each of the years specified in subsection (c), the Secretary shall make grants to eligible entities in accordance with paragraph (2).

“(B) Federal share.—The Federal share of the cost of carrying out an activity under this subsection shall not exceed 50 percent of the total cost of the activity.

“(C) Non-federal share.—

“(i) In general.—The non-Federal share of the cost of an activity under this subsection may be provided—

“(I) in cash or in-kind contributions as determined by the Secretary, including facilities, equipment, or services; and

“(II) by a State or local government or a private source.

“(ii) Limitation.—In the case of a for-profit entity, the non-Federal share described in clause (i) shall not include services of an employee, including salaries paid or expenses covered by the employer.

“(2) Criteria.—

“(A) In general.—For purposes of this subsection, an eligible entity is a governmental agency or nonprofit organization that—

“(i) meets the application criteria set forth by the Secretary; and

“(ii) proposes a project that, at a minimum—

“(I) has the support of the State agency;

“(II) would increase the purchase of fruits and vegetables by low-income consumers participating in the supplemental nutrition assistance program by providing incentives at the point of purchase;

“(III) agrees to participate in the evaluation described in paragraph (4);

“(IV) ensures that the same terms and conditions apply to purchases made by individuals with benefits issued under this Act and incentives provided for in this subsection as apply to purchases made by individuals who are not members of households receiving benefits, such as provided for in section 278.2(b) of title 7, Code of Federal Regulations (or a successor regulation); and

“(V) includes effective and efficient technologies for benefit redemption systems that may be replicated in other States and communities.

“(B) Priority.—In awarding grants under this section, the Secretary shall give priority to projects that—

“(i) maximize the share of funds used for direct incentives to participants;

“(ii) use direct-to-consumer sales marketing;

“(iii) demonstrate a track record of designing and implementing successful nutrition incentive programs that connect low-income consumers and agricultural producers;

“(iv) provide locally or regionally produced fruits and vegetables;

“(v) are located in underserved communities; or

“(vi) address other criteria as established by the Secretary.

“(3) Applicability.—

“(A) In general.—The value of any benefit provided to a participant in any activity funded under this subsection shall be treated as supplemental nutrition benefits under section 8(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2017(b)).

“(B) Prohibition on collection of sales taxes.—Each State shall ensure that no State or local tax is collected on a purchase of food under this subsection.

“(C) No limitation on benefits.—A grant made available under this subsection shall not be used to carry out any project that limits the use of benefits under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other Federal nutrition law.

“(D) Household allotment.—Assistance provided under this subsection to households receiving benefits under the supplemental nutrition assistance program shall not—

“(i) be considered part of the supplemental nutrition assistance program benefits of the household; or

“(ii) be used in the collection or disposition of claims under section 13 of the Food and Nutrition Act of 2008 (7 U.S.C. 2022).

“(4) Evaluation.—

“(A) Independent evaluation.—The Secretary shall provide for an independent evaluation of projects selected under this subsection that measures the impact of each project on—

“(i) improving the nutrition and health status of participating households receiving incentives under this subsection; and

“(ii) increasing fruit and vegetable purchases in participating households.

“(B) Requirement.—The independent evaluation under subparagraph (A) shall use rigorous methodologies capable of producing scientifically valid information regarding the effectiveness of a project.

“(C) Costs.—The Secretary may use funds not to exceed 10 percent of the funding provided to carry out this section to pay costs associated with administering, monitoring, and evaluating each project.

“(c) Funding.—

“(1) Authorization of appropriations.—There is authorized to be appropriated to carry out subsection (b) $5,000,000 for each of fiscal years 2014 through 2018.

“(2) Mandatory funding.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out subsection (b)—

“(A) $35,000,000 for the period of fiscal years 2014 and 2015;

“(B) $20,000,000 for each of fiscal years 2016 and 2017; and

“(C) $25,000,000 for fiscal year 2018.”

SEC. 4209. Food and Agriculture Service Learning Program.

Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7630 et seq.) is amended by adding at the end the following:

“SEC. 413. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.

“(a) In General.—Subject to the availability of appropriations under subsection (e), the Secretary, acting through the Director of the National Institute of Food and Agriculture, and working in consultation with other appropriate Federal agencies that oversee national service programs, shall administer a competitively awarded food and agriculture service learning grant program (referred to in this section as the ‘Program’) to increase knowledge of agriculture and improve the nutritional health of children.

“(b) Purposes.—The purposes of the Program are—

“(1) to increase capacity for food, garden, and nutrition education within host organizations or entities and school cafeterias and in the classroom;

“(2) to complement and build on the efforts of the farm to school programs implemented under section 18(g) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(g));

“(3) to complement efforts by the Department and school food authorities to implement the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773);

“(4) to carry out activities that advance the nutritional health of children and nutrition education in elementary schools and secondary schools (as those terms are defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)); and

“(5) to foster higher levels of community engagement and support the expansion of national service and volunteer opportunities.

“(c) Grants.—

“(1) In general.—In carrying out the Program, the Director of the National Institute of Food and Agriculture shall make competitive grants to eligible entities that carry out the purposes described in paragraphs (1) through (5) of subsection (b).

“(2) Priorities.—In making grants under this section, the Secretary may consider projects that are carried out by entities that—

“(A) have a proven track record in carrying out the purposes described in subsection (b);

“(B) work in underserved rural and urban communities;

“(C) teach and engage children in experiential learning about agriculture, gardening, nutrition, cooking, and where food comes from; and

“(D) facilitate a connection between elementary schools and secondary schools and agricultural producers in the local and regional area.

“(d) Accountability.—

“(1) In general.—The Secretary may require a partner organization or other qualified entity to collect and report any data on the activities carried out under the Program, as determined by the Secretary.

“(2) Evaluation.—The Secretary shall—

“(A) conduct regular evaluations of the activities carried out under the Program; and

“(B) 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 evaluation conducted under subparagraph (A).

“(e) Funding.—

“(1) Authorization of appropriations.—There is authorized to be appropriated to carry out the Program $25,000,000, to remain available until expended.

“(2) Administration.—Paragraphs (4), (7), (8), and (11)(B) of subsection (b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply with respect to the making of a competitive grant under this section.

“(3) Maintenance of effort.—Funds made available under paragraph (1) shall be used only to supplement, not to supplant, the amount of Federal funding otherwise expended for nutrition, research, and extension programs of the Department.”

SEC. 4210. Nutrition Information and Awareness Pilot Program.

Section 4403 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) is repealed.

SEC. 4211. Termination of Existing Agreement.

Effective beginning on the date of the enactment of this Act, the memorandum of understanding entered into on July 22, 2004, by the Secretary of Agriculture of the United States Department of Agriculture and the Secretary of Foreign Affairs of the Republic of Mexico and known as the “Partnership for Nutrition Assistance Initiative” is null and void.

SEC. 4212. Review of Sole-Source Contracts in Federal Nutrition Programs.

(a)
In General.— The Secretary shall conduct an evaluation of sole-source contracts in Federal nutrition programs carried out by the Secretary, and the effect the contracts have on program participation, program goals, nonprogram consumers, retailers, and free market dynamics.
(b)
Report.— Not later than 1 year after the date of enactment of this Act, 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 findings of the review conducted under subsection (a).

SEC. 4213. Pulse Crop Products.

(a)
Purpose.— The purpose of this section is to encourage greater awareness and interest in the number and variety of pulse crop products available to schoolchildren, as recommended 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).
(b)
Definitions.— In this section:
(1)
Eligible pulse crop.— The term “eligible pulse crop” means dry beans, dry peas, lentils, and chickpeas.
(2)
Pulse crop product.— The term “pulse crop product” means a food product derived in whole or in part from an eligible pulse crop.
(c)
Purchase of Pulse Crops and Pulse Crop Products.— In addition to the commodities delivered under section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755), subject to the availability of appropriations, the Secretary shall purchase eligible pulse crops and pulse crop products for use in—
(1)
the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); and
(2)
the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d)
Evaluation.— Not later than September 30, 2016, the Secretary shall conduct an evaluation of the activities conducted under subsection (c), including—
(1)
an evaluation of whether children participating in the school lunch and breakfast programs described in subsection (c) increased overall consumption of eligible pulse crops as a result of the activities;
(2)
an evaluation of which eligible pulse crops and pulse crop products are most acceptable for use in the school lunch and breakfast programs;
(3)
any recommendations of the Secretary regarding the integration of the use of pulse crop products in carrying out the school lunch and breakfast programs;
(4)
an evaluation of any change in the nutrient composition in the school lunch and breakfast programs due to the activities; and
(5)
an evaluation of any other outcomes determined to be appropriate by the Secretary.
(e)
Report.— As soon as practicable after the completion of the evaluation under subsection (d), the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Education and the Workforce of the House of Representative a report describing the results of the evaluation.
(f)
Authorization of Appropriations.— There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.

SEC. 4214. Pilot Project for Canned, Frozen, or Dried Fruits and Vegetables.

(a)
In General.— Subject to subsection (b), in the 2014–2015 school year, the Secretary shall carry out a pilot project in schools participating in the Fresh Fruit and Vegetable Program under section 19 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769a) (referred to in this section as the “Program”), in not less than 5 States, to evaluate the impact of allowing schools to offer canned, frozen, or dried fruits and vegetables as part of the Program.
(b)
Requirements.— Not later than 60 days after the date of enactment of this Act, the Secretary shall establish criteria for the conditions under which canned, frozen, or dried fruits and vegetables may be offered, which shall be in accordance 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)
Evaluation.— With respect to the pilot project, the Secretary shall evaluate—
(1)
the impacts on fruit and vegetable consumption at the schools participating in the pilot project;
(2)
the impacts of the pilot project on school participation in the Program and operation of the Program;
(3)
the implementation strategies used by the schools participating in the pilot project;
(4)
the acceptance of the pilot project by key stakeholders; and
(5)
such other outcomes as are determined by the Secretary.
(d)
Reports.—
(1)
Interim report.— Not later than January 1, 2015, the Secretary shall submit to the Committee on Education and Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the evaluation under subsection (c).
(2)
Final report.— On completion of the pilot project, the Secretary shall submit to the Committee on Education and Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the evaluation under subsection (c).
(e)
Notice of Availability.— As soon as practicable after the date on which the Secretary establishes the criteria for the pilot project under subsection (b), the Secretary shall notify potentially eligible schools of the potential eligibility of the schools for participation in the pilot project.
(f)
Relationship to Fresh Fruit and Vegetable Program.— Nothing in this section permits a school that is not a part of the pilot project to offer anything other than fresh fruits and vegetables through the Program.
(g)
Funding.— The Secretary shall use $5,000,000 of amounts otherwise made available to the Secretary to carry out this section.