To amend the Food Stamp Act of 1977 to improve food stamp informational activities in those States with the greatest rate of hunger.

To amend the Food Stamp Act of 1977 to improve food stamp informational activities in those States with the greatest rate of hunger.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `State Hunger Assistance in Response to Emergency Act of 2001'.

SEC. 2. FINDINGS.

Congress finds that--

(1) the Secretary of Agriculture conducts an annual report that measures food security and hunger by State; and

(2) many households that are eligible to receive food stamps under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) do not know that the households are eligible to receive food stamps.

SEC. 3. FUNDING FOR FOOD STAMP INFORMATIONAL ACTIVITIES BY STATES WITH GREATEST RATE OF HUNGER.

Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended--

(1) in subsection (a), by striking `subsection (k)' and inserting `subsections (k) and (l)'; and

(2) by adding at the end the following:

`(l) FUNDING FOR FOOD STAMP INFORMATIONAL ACTIVITIES BY STATES WITH GREATEST RATE OF HUNGER-

`(1) DESIGNATION OF STATES-

`(A) IN GENERAL- For each of fiscal years 2001 through 2005, the Secretary--

`(i) shall designate the 10 States that have the greatest rate of hunger, as determined on the basis of the most recent report that measures food security and hunger by State prepared by the Secretary for which data are available; and

`(ii) may designate not more than 5 additional States if the Secretary determines, on the basis of a proposal submitted by a State, that the State will carry out a demonstration project to carry out food stamp informational activities under this paragraph that uses innovative approaches that have national significance.

`(B) NOTIFICATION OF STATES- As soon as practicable after designation of a State under subparagraph (A), the Secretary shall notify the State agency of the State that the State agency is eligible to receive payments for administrative costs incurred in carrying out food stamp informational activities in accordance with paragraph (2).

`(C) ACCEPTANCE BY STATES- If a State agency of a State notified under subparagraph (B) elects to carry out food stamp informational activities in exchange for payments under paragraph (2), not later than 90 days after the date of notification by the Secretary, the State agency shall--

`(i) notify the Secretary that the State agency will carry out food stamp informational activities in exchange for the payments; and

`(ii) provide to the Secretary a summary describing the manner in which--

`(I) the payments will be used;

`(II) the outcomes of the activities will be measured; and

`(III) any other eligibility criteria established by the Secretary for payments under paragraph (2) will be met.

`(2) PAYMENTS-

`(A) IN GENERAL- Subject to subparagraph (B), if the State agency of a State elects to carry out food stamp informational activities under paragraph (1), subject to subparagraphs (B) through (E), the Secretary shall pay the State agency of the State 100 percent of the administrative costs incurred by the State agency in carrying out food stamp informational activities, including activities under section 11(e)(1)(A) and outreach activities.

`(B) ELIGIBILITY- A State agency shall be eligible for payments under subparagraph (A) for only 1 period of 3 fiscal years.

`(C) STATE ADMINISTRATIVE COSTS- The amount of administrative costs for which the State agency of a State may receive payments for a fiscal year under subparagraph (A) shall not exceed such amount as the Secretary determines is reasonable, as determined on the basis of--

`(i) the population of the State;

`(ii) the rate of hunger in the State;

`(iii) the number of households that are eligible to participate in the food stamp program but are not participating in the program; and

`(iv) other factors determined by the Secretary.

`(D) MAXIMUM PAYMENT- The amount of payments made to the State agency of a State for a fiscal year under subparagraph (A) shall not exceed $1,000,000.

`(E) MAINTENANCE OF EFFORT- The expenditure of funds by the State agency of a State for the maintenance of food stamp informational activities described in subparagraph (A) shall not be diminished as a result of payments made available under this paragraph.

`(3) REPORT- Not later than 1 year after the end of the third fiscal year for which the State agency of a State receives payments under paragraph (2), the State agency shall submit to the Secretary a brief report that measures the outcomes of food stamp informational activities described in paragraph (2) carried out by the State agency during the preceding 3 fiscal years.'.