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2. Comprehensive training program of all certification workers in conjunction with the revision of the certification regulations. Quality control workers should monitor the course. USDA should explore using temporary public service job holders as workers to meet temporary heavy caseload induced by the recession.

3. USDA should establish a realistic set of goals to be achieved in 1, 2 and 5 years. Separate tolerance levels should be set for percent eligiblity errors, percent benefit level errors and total bonus value errors. USDA should require, and submit to Congress, a plan from each state on how it intends to meet error tolerance goals, including specific administrative mechanisms, anticipated caseloads and man

power needs.

E. PROGRAM EVALUATION AND EXPERIMENTATION The subcommittee is concerned that the food stamp program has grown very large with a minimum evaluation of its operation and benefits to clients. From 1970 to January 1, 1975, only seven evaluation studies concerning food stamps had been completed by the Food & Nutrition Service. Only two of these related to nutritional effects. As of January 1, 1975, only three more evaluations are in progress, none of them dealing with nutritional impacts. Most of the evaluations cover very small samples in one or a few counties, leading to results which are not generalizable for a nationwide program serving 17 million participants. Recent contracts to develop program policy are working from census data and minimum available data about participants. The dearth of good program data was testified to by GAO, private researchers and state administrators. The Health and Nutrition Examination Survey (HANES) is the first large-sample study which will provide data about nutritional status of participants and non-participants. However, according to the director of the survey, it is questionable to what degree the survey will be able to differentiate the impact of food stamps from other factors affecting nutrition. We have already discussed the expansion of this survey under our recommendations for relations with HEW. We further recommend that:

1. USDA prepare and submit to Congress a plan for evaluating the major objectives of the program, including nutritional intake, nutritional status, equity among income and age groups, regional equity and the effects of outreach programs. The plan should include cost and time requirements.

2. Congress enact legislation authorizing the Secretary of Agriculture to conduct experimental programs under conditions different from those possible under the nationwide regulations. USDA should submit an annual report to Congress covering: issues considered, innovations attempted, evaluation of effects and need for further study. No specific authority for research and evaluation is presently authcrized or appropriated for the Food Stamp Act.

APPENDICES

APPENDIX A

Food STAMP ACT OF 1964' AN ACT To strengthen the agricultural economy; to help to achieve a fuller and more effective use of food abundances; to provide for improved levels of nutrition among low-income households through a cooperative Federal-State program of food assistance to be operated through normal channels of trade; and for

other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Food Stamp Act of 1964".

DECLARATION OF POLICY

Sec. 2. It is hereby declared to be the policy of Congress, in order to promote the general welfare, that the Nation's abundance of food should be utilized cooperatively by the States, the Federal Government, local governmental units, and other agencies to safeguard the health and well-being of the Nation's population and raise levels of nutrition among low-income households. The Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. The Congress further finds that increased utilization of food in establishing and maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of our agricultural abundances and will strengthen our agricultural economy, as well as result in more orderly marketing and distribution of food. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to purchase a nutritionally adequate diet through normal channels of trade.? (7 U.S.C. 2011.)

DEFINITIONS

SEC. 3. As used in this Act (a) The term "Secretary” means the Secretary of Agriculture.

(b) The term "food” means any food or food product for home consumption except alcoholic beverages and tobacco and shall also include seeds and plants for use in gardens to produce food for the personal consumption of the eligible household.

(c) The term "coupon” means any coupon, stamp, or type of certificate issued pursuant to the provisions of this Act.

(d) The term "coupon allotment” means the total value of coupons to be issued to a household during each month or other time period.

Pub. L. 88-525, 78 Stat. 703, approved August 31, 1961, as amended.

Section 2 was amended by Pub. L. 91-671, 84 Stat. 2018, approved January 11, 1971. Subsection (b) was amended by Pub. L. 93-86, 87 Stat, 248, approved August 10, 1973, to make imported loods and seeds and plants eligible for purchase with food coupons.

(e) The term "household" shall mean a group of related individuals (including legally adopted children and legally assigned foster children) or non-related individuals over age 60 who are not residents of an institution or boarding house, but are living as one economic unit sharing common cooking facilities and for whom food is customarily purchased in common. The term "household” shall also mean (1) a single individual living alone who has cooking facilities and who purchases and prepares food for home consumption, (2) an elderly person who meets the requirements of section 10(h) of this Act,4 or (3) any narcotics addict or alcoholic who lives under the supervision of a private nonprofit organization or institution for the purpose of regular participation in a drug or alcoholic treatment and rehabilitation probram. No individual who receives supplemental security income benefits under title XVI of the Social Security Act shall be considered to be a member of a household or an elderly person for any purpose of this Act for any month if such person receives for such month, as part of his supplemental security income benefits or payments described in section 1616(a) of the Social Security Act (if any), an amount equal to the bonus value of food stamps (according to the Food Stamp Schedule effective for July 1973) in addition to the amount of assistance such individual would be entitled to receive for such month under the provisions of the plan of the State approved under title I, X, XIV, or XVI, as appropriate, in effect for December 1973, assuming such plan were in effect for such month and such individual were aged, blind, or disabled, as the case may be, under the provisions of such State plan or under Public Law 92-603, as amended. The Secretary of Health, Education, and Welfare shall issue regulations for the implementation of the foregoing sentence after consultation with the Secretary of Agriculture. Residents of federally subsidized housing for the elderly, built under either section 202 of the Housing Act of 1959 (12 U.S.C. 17019), or section 236 of the National Housing Act (12 U.S.C. 17152-1) shall not be considered residents of an institution or boarding house for purposes of eligibility for food stamps under this Act.8

(f) The term “retail food store” means an establishment, including a recognized department thereof, or a house-to-house trade route which sells food to households for home consumption. It shall also mean a political subdivision or a private nonprofit organization or institution that meets the requirements of sections 10(h) or 10(i) of this Act.'

(g) The term "wholesale food concern” means an establishment which sells food to retail food stores for resale to households.

(h) The term “State agency”, with respect to any State, means the agency of State government which is designated by the Secretary for purposes of carrying out this Act in such State 10

* The definition of household in subsection (e) was amended by Puh. L. 91-671, 84 Stat. 2048, approved January 11, 1971, to require that, with some exceptions, a household shall consist of related individuals and to include an elderly person.

3 The second sentence was amended by Puh. L. 91-671, 84 Stat. 2018, approved January 11, 1971 and was further amended by Pub. L. 93 86, 87 Stat. 246, approved August 10, 1973.

The third sentence, added by Pub. L. 93–86, 87 Stat. 246, replaced the following sentence which was added by Pub. L. 92-603, 86 Stat. 1492, approved October 30, 1972: Effective January 1, 1974, "No person who is eligible (or upon application would be eligible) to receive supplemental security income benefits under title XVI of such Act shall be considered to be a member of a household or an elderly person for purposes of this ? The fourth sentence was added by Pub. L. 93-86, 87 Stat. 246, approved August 10, 1973. 8 The last sentence of subsection (e) was added by Pub. L. 93-86, 87 Stat. 249, approved August 10, 1973. • The last sentence of subsection (1) was added by Pub. L. 91-671, 84 Stat. 2018, approved January 11, 1971 and amended by Pub. L. 93 86, 87 Stat. 249, approved August 10, 1973.

10 Pub. L. 92-603, 86 Stat. 1491, approved October 30, 1972, substituted this definition for the definition in Pub. L. 88-525 (78 Stat. 703), approved August 31, 1961.

Act.'

(1) The term "bank” means member or nonmember banks of the Federal Reserve System.

() The term "State" means the fifty States and the District of Columbia, Guam, Puerto Rico, and the Virgin Islands of the United States.'

(k) The term "food stamp program” means any program promulgated pursuant to the provisions of this Act.

(1) Îhe term "elderly person” shall mean a person sixty years of age or over who is not a resident of an institution or boarding house, and who is living alone, or with spouse, whether or not he has cooking facilities in his home.12

(m) The term "authorization to purchase card” means any document issued by the State agency to an eligible household which shows the face value of the coupon allotment the household is entitled to be issued on presentment of such document and the amount to be paid by such household for such allotment.12

(n) The term "drug addiction or alcoholic treatment and rehabilitation program” means any drug addiction or alcoholic treatment and rehabilitation program conducted by a private nonprofit organization or institution which is certified by the State agency or agencies designated by the Governor as responsible for the administration of the State's programs for alcoholics and drug addicts pursuant to Public Law 91-616 "Comprehensive Alcohol Abuse and Alcohol Prevention, Treatment and Rehabilitation Act” and Public Law 92-255 "Drug Abuse Office and Treatment Act of 1972” as providing treatment that can lead to the rehabilitation of drug addicts or alcoholics.13 (7 U.S.C.

2012).

ESTABLISHMENT OF THE FOOD STAMP PROGRAM

Sec. 4. (a) The Secretary is authorized to formulate and administer a food stamp program under which, at the request of the State agency, eligible households within the State shall be provided with an opportunity to obtain a nutritionally adequate diet through the issuance to them of a coupon allotment which shall have a greater monetary value than the charge to be paid for such allotment by eligible households. The coupons so received by such households shall be used only to purchase food from retail food stores which have been approved for participation in the food stamp program. Coupons issued and used as provided in this Act shall be redeemable at face value by the Secretary through the facilities of the Treasury of the United States. 14

(b) In areas where the food stamp program is in operation, there shall be no distribution of federally donated foods to households under the authority of any other law except that distribution thereunder may be made: (1) during temporary emergency situations when the Secretary 15 determines that commercial channels of food distribution

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! Subsection (j) was amended by Pub. L. 91-671, 84 Stat. 2048, approved January 11, 1971, to add Guam
Puerto Rico and the Virgin Islands.
12 Subsections (1) and (m) were added by Pub. L. 91-671, 84 Stat. 2018, 2019, approved January 11, 1971,

New subsection (n) was added by Pub. L. 93-86, 87 Stat. 246. approved August 10, 1973.
* Pub. L. 91-671, 84 Stat. 2049, approved January 11, 1971, deleted the words more nearly” which ap-
Deared between the words "opportunity" and "to" and after the word “than” replaced their normal
expenditures for food" with the new wording at the end of the first sentence of (a) and added in (b) additional
circumstances under which the Food Stamp and Food Distribution Programs might be operated in the
Sime area.

See the Disaster Relief Act of 1970, Pub. L. 91-606, 84 Stat. 1755, approved December 31, 1970, author. izing Presidential determinations regarding availability of food stamps in a major disaster.

have been disrupted; (2) for such period of time as the Secretary determines necessary, to effect an orderly transition in an area in which the distribution of federally donated foods to households is being replaced by a food stamp program; or (3) on request of the State agency: Provided, That the Secretary shall not approve any plan established under this Act which permits any household to simultaneously participate in both the food stamp program and the distribution of federally donated foods under this clause (3).15

(c) The Secretary shall issue such regulations, not inconsistent with this Act, as he deems necessary or appropriate for the effective and efficient administration of the food stamp program. (7 U.S.C. 2013).

ELIGIBLE HOUSEHOLDS

SEC. 5.16 (a) Except for the temporary participation of households that are victims of a disaster as provided in subsection (b) of this section, participation in the food stamp program shall be limited to those households whose income and other financial resources are determined to be substantial limiting factors in permitting them to purchase a nutritionally adequate diet.

(b) The Secretary, in consultation with the Secretary of Health, Education, and Welfare, shall establish uniform national standards of eligibility for participation by households in the food stamp program and no plan of operation submitted by a State agency shall be approved unless the standards of eligibility meet those established by the Secretary. The standards established by the Secretary, at a minimum, shall prescribe the amounts of household income and other financial resources, including both liquid and nonliquid assets, to be used as criteria of eligibility: Provided, That such standards shall take into account payments in kind received from an employer by members of a household, if such payments are in lieu of or supplemental to household income: Provided further, That such payments in kind shall be limited only to housing provided by such employer to such employee and shall be the actual value of such housing but in no event shall such value be considered to be in excess of the sum of $25.00 per month.”? Any household which includes a member who has reached his eighteenth birthday and who is claimed as a dependent child for Federal income tax purposes by a taxpayer who is not a member of an eligible household, shall be ineligible to participate in any food stamp program established pursuant to this Act during the tax period such dependency is claimed and for a period of one year after expiration of such tax period. The Secretary may also establish temporary emergency standards of eligibility for the duration of the emergency without regard to income and other financial resources, for households that are victims of a mechanical disaster which disrupts the distribution of coupons, and for households that are the victims of a disaster which disrupted commercial channels of food distribution when he determines that such households are in need of temporary food assistance, and that commercial channels of food distribution have again become available to meet the temporary food needs of such 16 Section 5 was completely amended by Pub. L. 91-671, 84 Stat. 2019, approved January 11, 1971. 17 The provisos in the second sentence of subsection (b) were added by Pub. L. 93-86, 87 stat. 247, approved

1

August 10, 1973.

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