Ill STAT. 216 PUBLIC LAW 105-18^JUNE 12, 1997 TITLE VII—FOOD STAMP PROGRAM STATE OPTION TO ISSUE FOOD STAMP BENEFITS TO CERTAIN INDIVIDUALS MADE INELIGIBLE BY WELFARE REFORM (a) IN GENERAL. —Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is amended— (1) in subsection (a), by inserting after "necessary, and" the following: "(except as provided in subsection (j))"; aind (2) by adding at the end the following: " (j) STATE OPTION TO ISSUE BENEFITS TO CERTAIN INDIVIDUALS MADE INELIGIBLE BY WELFARE REFORM. — "(1) IN GENERAL. — Notwithstanding any other provision of law, a State agency may, with the approval of the Secretary, issue benefits under this Act to an individual who is ineligible to participate in the food stamp program solely as a result of section 6(o)(2) of this Act or section 402 or 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612 or 1613). "(2) STATE PAYMENTS TO SECRETARY. — "(A) IN GENERAL.—Not later than the date the State agency issues benefits to individuals under this subsection, the State agency shall pay the Secretary, in accordance with procedures established by the Secretary, an amount that is equal to— "(i) the value of the benefits; and "(ii) the costs of printing, shipping, and redeeming coupons, and other Federal costs, incurred in providing the benefits, as determined by the Secretary. "(B) CREDITING. — Notwithstanding section 3302(b) of title 31, United States Code, payments received under subparagraph (A) shall be credited to the food stamp program appropriation account or the account from which the costs were drawn, as appropriate, for the fiscal year in which the payment is received. "(3) REPORTING. —To be eligible to issue benefits under this subsection, a State agency shall comply with reporting requirements established by the Secretary to carry out this subsection. "(4) PLAN. —To be eligible to issue benefits under this subsection, a State agency shall— "(A) submit a plan to the Secretary that describes the conditions and procedures under which the benefits will be issued, including eligibility standards, benefit levels, and the methodology the State agency will use to determine amounts due the Secretary under paragraph (2); and "(B) obtain the approval of the Secretary for the plan. "(5) VIOLATIONS.—^A sanction, disqualification, fine, or other penalty prescribed under Federal law (including sections 12 and 15) shall apply to a violation committed in connection with a coupon issued under this subsection. " (6) INELIGIBILITY FOR ADMINISTRATIVE REIMBURSEMENT.— Administrative and other costs incurred in issuing a benefit under this subsection shall not be eligible for Federal funding under this Act.
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