§ 2025. — Administrative costsharing and quality control.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2025]
TITLE 7--AGRICULTURE
CHAPTER 51--FOOD STAMP PROGRAM
Sec. 2025. Administrative cost-sharing and quality control
(a) Administrative costs
Subject to subsection (k) of this section, the Secretary is
authorized to pay to each State agency an amount equal to 50 per centum
of all administrative costs involved in each State agency's operation of
the food stamp program, which costs shall include, but not be limited
to, the cost of (1) the certification of applicant households, (2) the
acceptance, storage, protection, control, and accounting of coupons
after their delivery to receiving points within the State, (3) the
issuance of coupons to all eligible households, (4) food stamp
informational activities, including those undertaken under section
2020(e)(1)(A) of this title, but not including recruitment activities,
(5) fair hearings, (6) automated data processing and information
retrieval systems subject to the conditions set forth in subsection (g)
of this section, (7) food stamp program investigations and prosecutions,
and (8) implementing and operating the immigration status verification
system established under section 1137(d) of the Social Security Act (42
U.S.C. 1320b-7(d)): Provided, That the Secretary is authorized at the
Secretary's discretion to pay any State agency administering the food
stamp program on all or part of an Indian reservation under section
2020(d) of this title or in a Native village within the State of Alaska
identified in section 1610(b) of title 43.\1\ such amounts for
administrative costs as the Secretary determines to be necessary for
effective operation of the food stamp program, as well as to permit each
State to retain 35 percent of the value of all funds or allotments
recovered or collected pursuant to sections 2015(b) and 2022(c) of this
title and 20 percent of the value of any other funds or allotments
recovered or collected, except the value of funds or allotments
recovered or collected that arise from an error of a State agency. The
officials responsible for making determinations of ineligibility under
this chapter shall not receive or benefit from revenues retained by the
State under the provisions of this subsection.
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\1\ So in original. The period probably should not appear.
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(b) Work supplementation or support program
(1) ``Work supplementation or support program'' defined
In this subsection, the term ``work supplementation or support
program'' means a program under which, as determined by the
Secretary, public assistance (including any benefits provided under
a program established by the State and the food stamp program) is
provided to an employer to be used for hiring and employing a public
assistance recipient who was not employed by the employer at the
time the public assistance recipient entered the program.
(2) Program
A State agency may elect to use an amount equal to the allotment
that would otherwise be issued to a household under the food stamp
program, but for the operation of this subsection, for the purpose
of subsidizing or supporting a job under a work supplementation or
support program established by the State.
(3) Procedure
If a State agency makes an election under paragraph (2) and
identifies each household that participates in the food stamp
program that contains an individual who is participating in the work
supplementation or support program--
(A) the Secretary shall pay to the State agency an amount
equal to the value of the allotment that the household would be
eligible to receive but for the operation of this subsection;
(B) the State agency shall expend the amount received under
subparagraph (A) in accordance with the work supplementation or
support program in lieu of providing the allotment that the
household would receive but for the operation of this
subsection;
(C) for purposes of--
(i) sections 2014 and 2017(a) of this title, the amount
received under this subsection shall be excluded from
household income and resources; and
(ii) section 2017(b) of this title, the amount received
under this subsection shall be considered to be the value of
an allotment provided to the household; and
(D) the household shall not receive an allotment from the
State agency for the period during which the member continues to
participate in the work supplementation or support program.
(4) Other work requirements
No individual shall be excused, by reason of the fact that a
State has a work supplementation or support program, from any work
requirement under section 2015(d) of this title, except during the
periods in which the individual is employed under the work
supplementation or support program.
(5) Length of participation
A State agency shall provide a description of how the public
assistance recipients in the program shall, within a specific period
of time, be moved from supplemented or supported employment to
employment that is not supplemented or supported.
(6) Displacement
A work supplementation or support program shall not displace the
employment of individuals who are not supplemented or supported.
(c) Quality control system
(1) In general
(A) System
In carrying out the food stamp program, the Secretary shall
carry out a system that enhances payment accuracy and improves
administration by establishing fiscal incentives that require
State agencies with high payment error rates to share in the
cost of payment error.
(B) Adjustment of Federal share of administrative costs for
fiscal years before fiscal year 2003
(i) In general
Subject to clause (ii), with respect to any fiscal year
before fiscal year 2003, the Secretary shall adjust a State
agency's federally funded share of administrative costs
under subsection (a) of this section, other than the costs
already shared in excess of 50 percent under the proviso in
the first sentence of subsection (a) of this section or
under subsection (g) of this section, by increasing that
share of all such administrative costs by 1 percentage point
to a maximum of 60 percent of all such administrative costs
for each full \1/10\ of a percentage point by which the
payment error rate is less than 6 percent.
(ii) Limitation
Only States with a rate of invalid decisions in denying
eligibility that is less than a nationwide percentage that
the Secretary determines to be reasonable shall be entitled
to the adjustment under clause (i).
(C) Establishment of liability amount for fiscal year 2003 and
thereafter
With respect to fiscal year 2004 and any fiscal year
thereafter for which the Secretary determines that, for the
second or subsequent consecutive fiscal year, a 95 percent
statistical probability exists that the payment error rate of a
State agency exceeds 105 percent of the national performance
measure for payment error rates announced under paragraph (6),
the Secretary shall establish an amount for which the State
agency may be liable (referred to in this paragraph as the
``liability amount'') that is equal to the product obtained by
multiplying--
(i) the value of all allotments issued by the State
agency in the fiscal year;
(ii) the difference between--
(I) the payment error rate of the State agency; and
(II) 6 percent; and
(iii) 10 percent.
(D) Authority of Secretary with respect to liability amount
With respect to the liability amount established for a State
agency under subparagraph (C) for any fiscal year, the Secretary
shall--
(i)(I) waive the responsibility of the State agency to
pay all or any portion of the liability amount established
for the fiscal year (referred to in this paragraph as the
``waiver amount'');
(II) require that a portion, not to exceed 50 percent,
of the liability amount established for the fiscal year be
used by the State agency for new investment, approved by the
Secretary, to improve administration by the State agency of
the food stamp program (referred to in this paragraph as the
``new investment amount''), which new investment amount
shall not be matched by Federal funds;
(III) designate a portion, not to exceed 50 percent, of
the amount established for the fiscal year for payment to
the Secretary in accordance with subparagraph (E) (referred
to in this paragraph as the ``at-risk amount''); or
(IV) take any combination of the actions described in
subclauses (I) through (III); or
(ii) make the determinations described in clause (i) and
enter into a settlement with the State agency, only with
respect to any waiver amount or new investment amount,
before the end of the fiscal year in which the liability
amount is determined under subparagraph (C).
(E) Payment of at-risk amount for certain States
(i) In general
A State agency shall pay to the Secretary the at-risk
amount designated under subparagraph (D)(i)(III) for any
fiscal year in accordance with clause (ii), if, with respect
to the immediately following fiscal year, a liability amount
has been established for the State agency under subparagraph
(C).
(ii) Method of payment of at-risk amount
(I) Remission to the Secretary
In the case of a State agency required to pay an at-
risk amount under clause (i), as soon as practicable
after completion of all administrative and judicial
reviews with respect to that requirement to pay, the
chief executive officer of the State shall remit to the
Secretary the at-risk amount required to be paid.
(II) Alternative method of collection
(aa) In general
If the chief executive officer of the State
fails to make the payment under subclause (I) within
a reasonable period of time determined by the
Secretary, the Secretary may reduce any amount due
to the State agency under any other provision of
this section by the amount required to be paid under
clause (i).
(bb) Accrual of interest
During any period of time determined by the
Secretary under item (aa), interest on the payment
under subclause (I) shall not accrue under section
2022(a)(2) of this title.
(F) Use of portion of liability amount for new investment
(i) Reduction of other amounts due to State agency
In the case of a State agency that fails to comply with
a requirement for new investment under subparagraph
(D)(i)(II) or clause (iii)(I), the Secretary may reduce any
amount due to the State agency under any other provision of
this section by the portion of the liability amount that has
not been used in accordance with that requirement.
(ii) Effect of State agency's wholly prevailing on
appeal
If a State agency begins required new investment under
subparagraph (D)(i)(II), the State agency appeals the
liability amount of the State agency, and the determination
by the Secretary of the liability amount is reduced to $0 on
administrative or judicial review, the Secretary shall pay
to the State agency an amount equal to 50 percent of the new
investment amount that was included in the liability amount
subject to the appeal.
(iii) Effect of Secretary's wholly prevailing on
appeal
If a State agency does not begin required new investment
under subparagraph (D)(i)(II), the State agency appeals the
liability amount of the State agency, and the determination
by the Secretary of the liability amount is wholly upheld on
administrative or judicial review, the Secretary shall--
(I) require all or any portion of the new investment
amount to be used by the State agency for new
investment, approved by the Secretary, to improve
administration by the State agency of the food stamp
program, which amount shall not be matched by Federal
funds; and
(II) require payment of any remaining portion of the
new investment amount in accordance with subparagraph
(E)(ii).
(iv) Effect of neither party's wholly prevailing on
appeal
The Secretary shall promulgate regulations regarding
obligations of the Secretary and the State agency in a case
in which the State agency appeals the liability amount of
the State agency and neither the Secretary nor the State
agency wholly prevails.
(G) Corrective action plans
The Secretary shall foster management improvements by the
States by requiring State agencies, other than State agencies
with payment error rates of less than 6 percent, to develop and
implement corrective action plans to reduce payment errors.
(2) Error rate definitions
As used in this section--
(A) the term ``payment error rate'' means the sum of the
point estimates of an overpayment error rate and an underpayment
error rate determined by the Secretary from data collected in a
probability sample of participating households;
(B) the term ``overpayment error rate'' means the percentage
of the value of all allotments issued in a fiscal year by a
State agency that are either--
(i) issued to households that fail to meet basic program
eligibility requirements; or
(ii) overissued to eligible households; and
(C) the term ``underpayment error rate'' means the ratio of
the value of allotments underissued to recipient households to
the total value of allotments issued in a fiscal year by a State
agency.
(3) Exclusions
The following errors may be measured for management purposes but
shall not be included in the payment error rate:
(A) Any errors resulting in the application of new
regulations promulgated under this chapter during the first 120
days from the required implementation date for such regulations.
(B) Errors resulting from the use by a State agency of
correctly processed information concerning households or
individuals received from Federal agencies or from actions based
on policy information approved or disseminated, in writing, by
the Secretary or the Secretary's designee.
(4) Reporting requirements
The Secretary may require a State agency to report any factors
that the Secretary considers necessary to determine a State agency's
payment error rate, liability amount or new investment amount under
paragraph (1), or performance under the performance measures under
subsection (d) of this section. If a State agency fails to meet the
reporting requirements established by the Secretary, the Secretary
shall base the determination on all pertinent information available
to the Secretary.
(5) Procedures
To facilitate the implementation of this subsection, each State
agency shall expeditiously submit to the Secretary data concerning
the operations of the State agency in each fiscal year sufficient
for the Secretary to establish the State agency's payment error
rate, liability amount or new investment amount under paragraph (1),
or performance under the performance measures under subsection (d)
of this section. The Secretary shall initiate efforts to collect the
amount owed by the State agency as a claim established under
paragraph (1) for a fiscal year, subject to the conclusion of any
formal or informal appeal procedure and administrative or judicial
review under section 2023 of this title (as provided for in
paragraph (7)), before the end of the fiscal year following such
fiscal year.
(6) National performance measure for payment error rates
(A) Announcement
At the time the Secretary makes the notification to State
agencies of their error rates, the Secretary shall also announce
a national performance measure that shall be the sum of the
products of each State agency's error rate as developed for the
notifications under paragraph (8) times that State agency's
proportion of the total value of national allotments issued for
the fiscal year using the most recent issuance data available at
the time of the notifications issued pursuant to paragraph (8).
(B) Use of alternative measure of State error
Where a State fails to meet reporting requirements pursuant
to paragraph (4), the Secretary may use another measure of a
State's error developed pursuant to paragraph (5), to develop
the national performance measure.
(C) Use of national performance measure
The announced national performance measure shall be used in
determining the liability amount of a State under paragraph
(1)(C) for the fiscal year whose error rates are being announced
under paragraph (8).
(D) No administrative or judicial review
The national performance measure announced under this
paragraph shall not be subject to administrative or judicial
review.
(7) Administrative and judicial review
(A) In general
Except as provided in subparagraphs (B) and (C), if the
Secretary asserts a financial claim against or establishes a
liability amount with respect to a State agency under paragraph
(1), the State may seek administrative and judicial review of
the action pursuant to section 2023 of this title.
(B) Determination of payment error rate
With respect to any fiscal year, a determination of the
payment error rate of a State agency or a determination whether
the payment error rate exceeds 105 percent of the national
performance measure for payment error rates shall be subject to
administrative or judicial review only if the Secretary
establishes a liability amount with respect to the fiscal year
under paragraph (1)(C).
(C) Authority of Secretary with respect to liability amount
An action by the Secretary under subparagraph (D) or
(F)(iii) of paragraph (1) shall not be subject to administrative
or judicial review.
(8) Criteria for payment by a State agency
(A) This paragraph applies to the determination of whether a
payment is due by a State agency for a fiscal year under paragraph
(1).
(B) Not later than the first May 31 after the end of the fiscal
year referred to in subparagraph (A), the case review and all
arbitrations of State-Federal difference cases shall be completed.
(C) Not later than the first June 30 after the end of the fiscal
year referred to in subparagraph (A), the Secretary shall--
(i) determine final error rates, the national average
payment error rate, and the amounts of payment claimed against
State agencies or liability amount established with respect to
State agencies;
(ii) notify State agencies of the payment claims or
liability amounts; and
(iii) provide a copy of the document providing notification
under clause (ii) to the chief executive officer and the
legislature of the State.
(D) A State agency desiring to appeal a payment claim or
liability amount determined under subparagraph (C) shall submit to
an administrative law judge--
(i) a notice of appeal, not later than 10 days after
receiving a notice of the claim or liability amount; and
(ii) evidence in support of the appeal of the State agency,
not later than 60 days after receiving a notice of the claim or
liability amount.
(E) Not later than 60 days after a State agency submits evidence
in support of the appeal, the Secretary shall submit responsive
evidence to the administrative law judge to the extent such evidence
exists.
(F) Not later than 30 days after the Secretary submits
responsive evidence, the State agency shall submit rebuttal evidence
to the administrative law judge to the extent such evidence exists.
(G) The administrative law judge, after an evidentiary hearing,
shall decide the appeal--
(i) not later than 60 days after receipt of rebuttal
evidence submitted by the State agency; or
(ii) if the State agency does not submit rebuttal evidence,
not later than 90 days after the State agency submits the notice
of appeal and evidence in support of the appeal.
(H) In considering a claim or liability amount under this
paragraph, the administrative law judge shall consider all grounds
for denying the claim or liability amount, in whole or in part,
including the contention of a State agency that the claim or
liability amount should be waived, in whole or in part, for good
cause.
(I) The deadlines in subparagraphs (D), (E), (F), and (G) shall
be extended by the administrative law judge for cause shown.
(9) ``Good cause'' defined
As used in this subsection, the term ``good cause'' includes--
(A) a natural disaster or civil disorder that adversely
affects food stamp program operations;
(B) a strike by employees of a State agency who are
necessary for the determination of eligibility and processing of
case changes under the food stamp program;
(C) a significant growth in food stamp caseload in a State
prior to or during a fiscal year, such as a 15 percent growth in
caseload;
(D) a change in the food stamp program or other Federal or
State program that has a substantial adverse impact on the
management of the food stamp program of a State; and
(E) a significant circumstance beyond the control of the
State agency.
(d) Bonuses for States that demonstrate high or most improved
performance
(1) Fiscal years 2003 and 2004
(A) Guidance
With respect to fiscal years 2003 and 2004, the Secretary
shall establish, in guidance issued to State agencies not later
than October 1, 2002--
(i) performance criteria relating to--
(I) actions taken to correct errors, reduce rates of
error, and improve eligibility determinations; and
(II) other indicators of effective administration
determined by the Secretary; and
(ii) standards for high and most improved performance to
be used in awarding performance bonus payments under
subparagraph (B)(ii).
(B) Performance bonus payments
With respect to each of fiscal years 2003 and 2004, the
Secretary shall--
(i) measure the performance of each State agency with
respect to the criteria established under subparagraph
(A)(i); and
(ii) subject to paragraph (3), award performance bonus
payments in the following fiscal year, in a total amount of
$48,000,000 for each fiscal year, to State agencies that
meet standards for high or most improved performance
established by the Secretary under subparagraph (A)(ii).
(2) Fiscal years 2005 and thereafter
(A) Regulations
With respect to fiscal year 2005 and each fiscal year
thereafter, the Secretary shall--
(i) establish, by regulation, performance criteria
relating to--
(I) actions taken to correct errors, reduce rates of
error, and improve eligibility determinations; and
(II) other indicators of effective administration
determined by the Secretary;
(ii) establish, by regulation, standards for high and
most improved performance to be used in awarding performance
bonus payments under subparagraph (B)(ii); and
(iii) before issuing proposed regulations to carry out
clauses (i) and (ii), solicit ideas for performance criteria
and standards for high and most improved performance from
State agencies and organizations that represent State
interests.
(B) Performance bonus payments
With respect to fiscal year 2005 and each fiscal year
thereafter, the Secretary shall--
(i) measure the performance of each State agency with
respect to the criteria established under subparagraph
(A)(i); and
(ii) subject to paragraph (3), award performance bonus
payments in the following fiscal year, in a total amount of
$48,000,000 for each fiscal year, to State agencies that
meet standards for high or most improved performance
established by the Secretary under subparagraph (A)(ii).
(3) Prohibition on receipt of performance bonus payments
A State agency shall not be eligible for a performance bonus
payment with respect to any fiscal year for which the State agency
has a liability amount established under subsection (c)(1)(C) of
this section.
(4) Payments not subject to judicial review
A determination by the Secretary whether, and in what amount, to
award a performance bonus payment under this subsection shall not be
subject to administrative or judicial review.
(e) Use of social security account numbers; access to information
The Secretary and State agencies shall (1) require, as a condition
of eligibility for participation in the food stamp program, that each
household member furnish to the State agency their social security
account number (or numbers, if they have more than one number), and (2)
use such account numbers in the administration of the food stamp
program. The Secretary and State agencies shall have access to the
information regarding individual food stamp program applicants and
participants who receive benefits under title XVI of the Social Security
Act [42 U.S.C. 1381 et seq.] that has been provided to the Commissioner
of Social Security, but only to the extent that the Secretary and the
Commissioner of Social Security determine necessary for purposes of
determining or auditing a household's eligibility to receive assistance
or the amount thereof under the food stamp program, or verifying
information related thereto.
(f) Payment of certain legal fees
Notwithstanding any other provision of law, counsel may be employed
and counsel fees, court costs, bail, and other expenses incidental to
the defense of officers and employees of the Department of Agriculture
may be paid in judicial or administrative proceedings to which such
officers and employees have been made parties and that arise directly
out of their performance of duties under this chapter.
(g) Cost sharing for computerization
The Secretary is authorized to pay to each State agency the amount
provided under subsection (a)(6) of this section for the costs incurred
by the State agency in the planning, design, development, or
installation of automatic data processing and information retrieval
systems that the Secretary determines (1) will assist in meeting the
requirements of this chapter, (2) meet such conditions as the Secretary
prescribes, (3) are likely to provide more efficient and effective
administration of the food stamp program, and (4) will be compatible
with other such systems used in the administration of State programs
funded under part A of title IV of the Social Security Act [42 U.S.C.
601 et seq.]: Provided, That there shall be no such payments to the
extent that a State agency is reimbursed for such costs under any other
Federal program or uses such systems for purposes not connected with the
food stamp program: Provided further, That any costs matched under this
subsection shall be excluded in determining the State agency's
administrative costs under any other subsection of this section.
(h) Funding of employment and training programs
(1) In general.--
(A) Amounts.--To carry out employment and training programs, the
Secretary shall reserve for allocation to State agencies, to remain
available until expended, from funds made available for each fiscal
year under section 2027(a)(1) of this title the amount of--
(i) for fiscal year 1996, $75,000,000;
(ii) for fiscal year 1997, $79,000,000;
(iii) for fiscal year 1998--
(I) $81,000,000; and
(II) an additional amount of $131,000,000;
(iv) for fiscal year 1999--
(I) $84,000,000; and
(II) an additional amount of $31,000,000;
(v) for fiscal year 2000--
(I) $86,000,000; and
(II) an additional amount of $86,000,000;
(vi) for fiscal year 2001--
(I) $88,000,000; and
(II) an additional amount of $131,000,000; and
(vii) for each of fiscal years 2002 through 2007,
$90,000,000.
(B) Allocation.--Funds made available under subparagraph (A)
shall be made available to and reallocated among State agencies
under a reasonable formula that--
(i) is determined and adjusted by the Secretary; and
(ii) takes into account the number of individuals who are
not exempt from the work requirement under section 2015(o) of
this title.
(C) Reallocation.--If a State agency will not expend all of the
funds allocated to the State agency for a fiscal year under
subparagraph (B), the Secretary shall reallocate the unexpended
funds to other States (during the fiscal year or the subsequent
fiscal year) as the Secretary considers appropriate and equitable.
(D) Minimum allocation.--Notwithstanding subparagraph (B), the
Secretary shall ensure that each State agency operating an
employment and training program shall receive not less than $50,000
for each fiscal year.
(E) Additional allocations for states that ensure availability
of work opportunities.--
(i) In general.--In addition to the allocations under
subparagraph (A), from funds made available under section
2027(a)(1) of this title, the Secretary shall allocate not more
than $20,000,000 for each of fiscal years 2002 through 2007 to
reimburse a State agency that is eligible under clause (ii) for
the costs incurred in serving food stamp recipients who--
(I) are not eligible for an exception under section
2015(o)(3) of this title; and
(II) are placed in and comply with a program described
in subparagraph (B) or (C) of section 2015(o)(2) of this
title.
(ii) Eligibility.--To be eligible for an additional
allocation under clause (i), a State agency shall make and
comply with a commitment to offer a position in a program
described in subparagraph (B) or (C) of section 2015(o)(2) of
this title to each applicant or recipient who--
(I) is in the last month of the 3-month period described
in section 2015(o)(2) of this title;
(II) is not eligible for an exception under section
2015(o)(3) of this title;
(III) is not eligible for a waiver under section
2015(o)(4) of this title; and
(IV) is not exempt under section 2015(o)(6) of this
title.
(2) If, in carrying out such program during such fiscal year, a
State agency incurs costs that exceed the amount allocated to the State
agency under paragraph (1), the Secretary shall pay such State agency an
amount equal to 50 per centum of such additional costs, subject to the
first limitation in paragraph (3), including the costs for case
management and casework to facilitate the transition from economic
dependency to self-sufficiency through work.
(3) The Secretary shall also reimburse each State agency in an
amount equal to 50 per centum of the total amount of payments made or
costs incurred by the State agency in connection with transportation
costs and other expenses reasonably necessary and directly related to
participation in an employment and training program under section
2015(d)(4) of this title, except that the amount of the reimbursement
for dependent care expenses shall not exceed an amount equal to the
payment made under section 2015(d)(4)(I)(i)(II) of this title but not
more than the applicable local market rate, and such reimbursement shall
not be made out of funds allocated under paragraph (1).
(4) Funds provided to a State agency under this subsection may be
used only for operating an employment and training program under section
2015(d)(4) of this title, and may not be used for carrying out other
provisions of this chapter.
(5) The Secretary shall monitor the employment and training programs
carried out by State agencies under section 2015(d)(4) of this title to
measure their effectiveness in terms of the increase in the numbers of
household members who obtain employment and the numbers of such members
who retain such employment as a result of their participation in such
employment and training programs.
(i) Geographical error-prone profiles
(1) The Department of Agriculture may use quality control
information made available under this section to determine which project
areas have payment error rates (as defined in subsection (d)(1) of this
section) that impair the integrity of the food stamp program.
(2) The Secretary may require a State agency to carry out new or
modified procedures for the certification of households in areas
identified under paragraph (1) if the Secretary determines such
procedures would improve the integrity of the food stamp program and be
cost effective.
(j) Training materials regarding certification of farming households
Not later than 180 days after September 19, 1988, and annually
thereafter, the Secretary shall publish instructional materials
specifically designed to be used by the State agency to provide
intensive training to State agency personnel who undertake the
certification of households that include a member who engages in
farming.
(k) Reductions in payments for administrative costs
(1) Definitions
In this subsection:
(A) AFDC program
The term ``AFDC program'' means the program of aid to
families with dependent children established under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq. (as
in effect, with respect to a State, during the base period for
that State)).
(B) Base period
The term ``base period'' means the period used to determine
the amount of the State family assistance grant for a State
under section 403 of the Social Security Act (42 U.S.C. 603).
(C) Medicaid program
The term ``medicaid program'' means the program of medical
assistance under a State plan or under a waiver of the plan
under title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.).
(2) Determinations of amounts attributable to benefiting
programs
Not later than 180 days after June 23, 1998, the Secretary of
Health and Human Services, in consultation with the Secretary of
Agriculture and the States, shall, with respect to the base period
for each State, determine--
(A) the annualized amount the State received under section
403(a)(3) of the Social Security Act (42 U.S.C. 603(a)(3) (as in
effect during the base period)) for administrative costs common
to determining the eligibility of individuals, families, and
households eligible or applying for the AFDC program and the
food stamp program, the AFDC program and the medicaid program,
and the AFDC program, the food stamp program, and the medicaid
program that were allocated to the AFDC program; and
(B) the annualized amount the State would have received
under section 403(a)(3) of the Social Security Act (42 U.S.C.
603(a)(3) (as so in effect)), section 1903(a)(7) of the Social
Security Act (42 U.S.C. 1396b(a)(7) (as so in effect)), and
subsection (a) of this section (as so in effect), for
administrative costs common to determining the eligibility of
individuals, families, and households eligible or applying for
the AFDC program and the food stamp program, the AFDC program
and the medicaid program, and the AFDC program, the food stamp
program, and the medicaid program, if those costs had been
allocated equally among such programs for which the individual,
family, or household was eligible or applied for.
(3) Reduction in payment
(A) In general
Notwithstanding any other provision of this section,
effective for each of fiscal years 1999 through 2007, the
Secretary shall reduce, for each fiscal year, the amount paid
under subsection (a) of this section to each State by an amount
equal to the amount determined for the food stamp program under
paragraph (2)(B). The Secretary shall, to the extent
practicable, make the reductions required by this paragraph on a
quarterly basis.
(B) Application
If the Secretary of Health and Human Services does not make
the determinations required by paragraph (2) by September 30,
1999--
(i) during the fiscal year in which the determinations
are made, the Secretary shall reduce the amount paid under
subsection (a) of this section to each State by an amount
equal to the sum of the amounts determined for the food
stamp program under paragraph (2)(B) for fiscal year 1999
through the fiscal year during which the determinations are
made; and
(ii) for each subsequent fiscal year through fiscal year
2007, subparagraph (A) applies.
(4) Appeal of determinations
(A) In general
Not later than 5 days after the date on which the Secretary
of Health and Human Services makes any determination required by
paragraph (2) with respect to a State, the Secretary shall
notify the chief executive officer of the State of the
determination.
(B) Review by administrative law judge
(i) In general
Not later than 60 days after the date on which a State
receives notice under subparagraph (A) of a determination,
the State may appeal the determination, in whole or in part,
to an administrative law judge of the Department of Health
and Human Services by filing an appeal with the
administrative law judge.
(ii) Documentation
The administrative law judge shall consider an appeal
filed by a State under clause (i) on the basis of such
documentation as the State may submit and as the
administrative law judge may require to support the final
decision of the administrative law judge.
(iii) Review
In deciding whether to uphold a determination, in whole
or in part, the administrative law judge shall conduct a
thorough review of the issues and take into account all
relevant evidence.
(iv) Deadline
Not later than 60 days after the date on which the
record is closed, the administrative law judge shall--
(I) make a final decision with respect to an appeal
filed under clause (i); and
(II) notify the chief executive officer of the State
of the decision.
(C) Review by Departmental Appeals Board
(i) In general
Not later than 30 days after the date on which a State
receives notice under subparagraph (B) of a final decision,
the State may appeal the decision, in whole or in part, to
the Departmental Appeals Board established in the Department
of Health and Human Services (referred to in this paragraph
as the ``Board'') by filing an appeal with the Board.
(ii) Review
The Board shall review the decision on the record.
(iii) Deadline
Not later than 60 days after the date on which the
appeal is filed, the Board shall--
(I) make a final decision with respect to an appeal
filed under clause (i); and
(II) notify the chief executive officer of the State
of the decision.
(D) Judicial review
The determinations of the Secretary of Health and Human
Services under paragraph (2), and a final decision of the
administrative law judge or Board under subparagraphs (B) and
(C), respectively, shall not be subject to judicial review.
(E) Reduced payments pending appeal
The pendency of an appeal under this paragraph shall not
affect the requirement that the Secretary reduce payments in
accordance with paragraph (3).
(5) Allocation of administrative costs
(A) In general
No funds or expenditures described in subparagraph (B) may
be used to pay for costs--
(i) eligible for reimbursement under subsection (a) of
this section (or costs that would have been eligible for
reimbursement but for this subsection); and
(ii) allocated for reimbursement to the food stamp
program under a plan submitted by a State to the Secretary
of Health and Human Services to allocate administrative
costs for public assistance programs.
(B) Funds and expenditures
Subparagraph (A) applies to--
(i) funds made available to carry out part A of title
IV, or title XX, of the Social Security Act (42 U.S.C. 601
et seq., 1397 et seq.);
(ii) expenditures made as qualified State expenditures
(as defined in section 409(a)(7)(B) of that Act (42 U.S.C.
609(a)(7)(B)));
(iii) any other Federal funds (except funds provided
under subsection (a) of this section); and
(iv) any other State funds that are--
(I) expended as a condition of receiving Federal
funds; or
(II) used to match Federal funds under a Federal
program other than the food stamp program.
(Pub. L. 88-525, Sec. 16, Aug. 31, 1964, 78 Stat. 709; Pub. L. 90-91
Secs. 1, 2, Sept. 27, 1967, 81 Stat. 228; Pub. L. 90-552, Oct. 8, 1968,
82 Stat. 958; Pub. L. 91-116, Nov. 13, 1969, 83 Stat. 191; Pub. L. 91-
671, Sec. 9, Jan. 11, 1971, 84 Stat. 2052; Pub. L. 93-86, Sec. 3(j),
Aug. 10, 1973, 87 Stat. 248; Pub. L. 95-113, title XIII, Sec. 1301,
Sept. 29, 1977, 91 Stat. 976; Pub. L. 96-58, Secs. 4, 6, Aug. 14, 1979,
93 Stat. 391; Pub. L. 96-249, title I, Secs. 121, 125, 126, 128, 129,
May 26, 1980, 94 Stat. 363, 364, 367; Pub. L. 97-35, title I,
Secs. 111(b), 114, Aug. 13, 1981, 95 Stat. 362, 363; Pub. L. 97-98,
title XIII, Secs. 1325-1327, Dec. 22, 1981, 95 Stat. 1289; Pub. L. 97-
253, title I, Secs. 179, 180(a), 189(b)(3), (c), Sept. 8, 1982, 96 Stat.
782, 787; Pub. L. 99-198, title XV, Secs. 1517(c), 1524, 1535(c)(1),
1537(a), 1539, Dec. 23, 1985, 99 Stat. 1577, 1580, 1585, 1588; Pub. L.
99-603, title I, Sec. 121(b)(5), Nov. 6, 1986, 100 Stat. 3391; Pub. L.
100-77, title VIII, Sec. 808(b), July 22, 1987, 101 Stat. 536; Pub. L.
100-435, title II, Sec. 204(b), title III, Sec. 321(b), (c), title IV,
Sec. 404(e), (g), title VI, Sec. 604, Sept. 19, 1988, 102 Stat. 1657,
1662, 1668, 1675; Pub. L. 101-624, title XVII, Secs. 1750, 1752(a),
1753, Nov. 28, 1990, 104 Stat. 3797, 3798; Pub. L. 102-237, title IX,
Sec. 941(7), Dec. 13, 1991, 105 Stat. 1892; Pub. L. 103-66, title XIII,
Secs. 13922(c), 13951(c), 13961, Aug. 10, 1993, 107 Stat. 675, 678, 679;
Pub. L. 103-296, title I, Sec. 108(f)(2), Aug. 15, 1994, 108 Stat. 1487;
Pub. L. 104-66, title I, Sec. 1011(j), Dec. 21, 1995, 109 Stat. 710;
Pub. L. 104-127, title IV, Sec. 401(b), Apr. 4, 1996, 110 Stat. 1026;
Pub. L. 104-193, title I, Sec. 109(c), title VIII, Secs. 817(b)-(d),
844(c), 847, 848(a), (b)(2), 849, Aug. 22, 1996, 110 Stat. 2169, 2319,
2320, 2333-2335; Pub. L. 105-33, title I, Sec. 1002(a), Aug. 5, 1997,
111 Stat. 252; Pub. L. 105-185, title V, Secs. 501, 502(a), June 23,
1998, 112 Stat. 575; Pub. L. 106-78, title VII, Sec. 758, Oct. 22, 1999,
113 Stat. 1172; Pub. L. 107-171, title IV, Secs. 4118(a), 4119(a),
4120(a), 4121(a), (d), 4122(a), May 13, 2002, 116 Stat. 316, 321, 323,
324.)
References in Text
The Social Security Act, referred to in subsecs. (e), (g), and (k),
is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title
IV of the Act is classified generally to part A (Sec. 601 et seq.) of
subchapter IV of chapter 7 of Title 42, The Public Health and Welfare.
Titles XVI, XIX, and XX of the Act are classified generally to
subchapters XVI (Sec. 1381 et seq.), XIX (Sec. 1396 et seq.), and XX
(Sec. 1397 et seq.), respectively, of chapter 7 of Title 42. For
complete classification of this Act to the Code, see section 1305 of
Title 42 and Tables.
Codification
September 19, 1988, referred to in subsec. (d)(2), was in the
original ``the date of enactment of this section'', which was translated
as meaning the date of enactment of Pub. L. 100-435, which enacted
provisions of this section establishing the payment error improvement
system, as the probable intent of Congress.
Amendments
Subsec. (c). Pub. L. 107-171, Sec. 4118(a)(1), inserted heading.
Subsec. (c)(1). Pub. L. 107-171, Sec. 4118(a)(1), added par. (1) and
struck out former par. (1) which related to payment error improvement
system.
Subsec. (c)(4). Pub. L. 107-171, Sec. 4118(a)(2), inserted heading
and substituted ``The Secretary may require a State agency to report any
factors that the Secretary considers necessary to determine a State
agency's payment error rate, liability amount or new investment amount
under paragraph (1), or performance under the performance measures under
subsection (d) of this section.'' for ``The Secretary may require a
State agency to report any factors that the Secretary considers
necessary to determine a State agency's payment error rate, enhanced
administrative funding, or claim for payment error, under this
subsection.''
Subsec. (c)(5). Pub. L. 107-171, Sec. 4118(a)(3), inserted heading
and substituted ``To facilitate the implementation of this subsection,
each State agency shall expeditiously submit to the Secretary data
concerning the operations of the State agency in each fiscal year
sufficient for the Secretary to establish the State agency's payment
error rate, liability amount or new investment amount under paragraph
(1), or performance under the performance measures under subsection (d)
of this section.'' for ``To facilitate the implementation of this
subsection each State agency shall submit to the Secretary expeditiously
data regarding its operations in each fiscal year sufficient for the
Secretary to establish the payment error rate for the State agency for
such fiscal year and determine the amount of either incentive payments
under paragraph (1)(A) or claims under paragraph (1)(C). The Secretary
shall make a determination for a fiscal year, and notify the State
agency of such determination, within nine months following the end of
each fiscal year.'' and ``paragraph (1) for a fiscal year'' for
``paragraph (1)(C) for a fiscal year''.
Subsec. (c)(6). Pub. L. 107-171, Sec. 4118(a)(4), inserted heading,
designated first sentence as subpar. (A), inserted heading, struck out
``and incentive payments or claims pursuant to paragraphs (1)(A) and
(1)(C)'' after ``State agencies of their error rates'', and substituted
``paragraph (8)'' for ``paragraph (5)'' in two places, designated second
sentence as subpar. (B) and inserted heading, designated third sentence
as subpar. (C), inserted heading, and substituted ``the liability amount
of a State under paragraph (1)(C)'' for ``the State share of the cost of
payment error under paragraph (1)(C)'' and ``paragraph (8)'' for
``paragraph (5)'', and added subpar. (D).
Subsec. (c)(7). Pub. L. 107-171, Sec. 4118(a)(5), inserted heading,
designated existing provisions as subpar. (A), inserted heading,
substituted ``Except as provided in subparagraphs (B) and (C), if the
Secretary asserts a financial claim against or establishes a liability
amount with respect to'' for ``If the Secretary asserts a financial
claim against'' and ``paragraph (1)'' for ``paragraph (1)(C)'', and
added subpars. (B) and (C).
Subsec. (c)(8)(A). Pub. L. 107-171, Sec. 4118(a)(6)(A), substituted
``paragraph (1)'' for ``paragraph (1)(C)''.
Subsec. (c)(8)(B). Pub. L. 107-171, Sec. 4119(a)(1), substituted
``the first May 31 after the end of the fiscal year referred to in
subparagraph (A)'' for ``180 days after the end of the fiscal year''.
Subsec. (c)(8)(C). Pub. L. 107-171, Sec. 4119(a)(2), substituted
``the first June 30 after the end of the fiscal year referred to in
subparagraph (A)'' for ``30 days thereafter'' in introductory
provisions.
Subsec. (c)(8)(C)(i). Pub. L. 107-171, Sec. 4118(a)(6)(B)(i),
substituted ``payment claimed against State agencies or liability amount
established with respect to State agencies;'' for ``payment claimed
against State agencies; and''.
Subsec. (c)(8)(C)(ii). Pub. L. 107-171, Sec. 4118(a)(6)(B)(ii),
substituted ``claims or liability amounts; and'' for ``claims.''
Subsec. (c)(8)(C)(iii). Pub. L. 107-171, Sec. 4118(a)(6)(B)(iii),
added cl. (iii).
Subsec. (c)(8)(D), (H). Pub. L. 107-171, Sec. 4118(a)(6)(C),
inserted ``or liability amount'' after ``claim'' wherever appearing.
Subsec. (d). Pub. L. 107-171, Sec. 4120(a), added subsec. (d) and
struck out former subsec. (d) which read as follows: ``The Secretary
shall undertake the following studies of the payment error improvement
system established under subsection (c) of this section:
``(1) An assessment of the feasibility of measuring payment
errors due to improper denials and terminations of benefits or
otherwise developing performance standards with financial
consequences for improper denials and terminations, including
incorporation in subsection (c) of this section. The Secretary shall
report the results of such study and the recommendations of the
Secretary to the Congress by July 1, 1990.
``(2) An evaluation of the effectiveness of the system of
program improvement initiated under this section that shall be
reported to the Congress along with the Secretary's recommendations
no later than 3 years from September 19, 1988.''
Subsec. (h)(1)(A)(vii). Pub. L. 107-171, Sec. 4121(a)(1), added cl.
(vii) and struck out former cl. (vii) which read as follows: ``for
fiscal year 2002--
``(I) $90,000,000; and
``(II) an additional amount of $75,000,000.''
Subsec. (h)(1)(B). Pub. L. 107-171, Sec. 4121(a)(2), added subpar.
(B) and struck out heading and text of former subpar. (B). Text read as
follows:
``(i) Allocation formula.--The Secretary shall allocate the amounts
reserved under subparagraph (A) among the State agencies using a
reasonable formula, as determined and adjusted by the Secretary each
fiscal year, to reflect--
``(I) changes in each State's caseload (as defined in section
2015(o)(6)(A) of this title);
``(II) for fiscal year 1998, the portion of food stamp
recipients who reside in each State who are not eligible for an
exception under section 2015(o)(3) of this title; and
``(III) for each of fiscal years 1999 through 2002, the portion
of food stamp recipients who reside in each State who are not
eligible for an exception under section 2015(o)(3) of this title and
who--
``(aa) do not reside in an area subject to a waiver granted
by the Secretary under section 2015(o)(4) of this title; or
``(bb) do reside in an area subject to a waiver granted by
the Secretary under section 2015(o)(4) of this title, if the
State agency provides employment and training services in the
area to food stamp recipients who are not eligible for an
exception under section 2015(o)(3) of this title.
``(ii) Estimated factors.--The Secretary shall estimate the portion
of food stamp recipients who reside in each State who are not eligible
for an exception under section 2015(o)(3) of this title based on the
survey conducted to carry out subsection (c) of this section for fiscal
year 1996 and such other factors as the Secretary considers appropriate
due to the timing and limitations of the survey.
``(iii) Reporting requirement.--A State agency shall submit such
reports to the Secretary as the Secretary determines are necessary to
ensure compliance with this paragraph.''
Subsec. (h)(1)(E) to (G). Pub. L. 107-171, Sec. 4121(a)(3), added
subpar. (E) and struck out heading and text of former subpars. (E) to
(G) which related to use of funds, maintenance of effort, and component
costs, respectively.
Subsec. (h)(3). Pub. L. 107-171, Sec. 4121(d), substituted ``the
amount of the reimbursement for dependent care expenses shall not
exceed'' for ``such total amount shall not exceed an amount representing
$25 per participant per month for costs of transportation and other
actual costs (other than dependent care costs) and''.
Subsec. (k)(3)(A). Pub. L. 107-171, Sec. 4122(a)(1), substituted
``2007'' for ``2002''.
Subsec. (k)(3)(B)(ii). Pub. L. 107-171, Sec. 4122(a)(2), substituted
``2007'' for ``2002''.
1999--Subsec. (a). Pub. L. 106-78, which directed the amendment of
``the Food Stamp Act (Public Law 95-113, section 16(a))'' by inserting
``or in a Native village within the State of Alaska identified in
section 1610(b) of title 43.'' before ``such amounts'', was executed by
making the amendment to this section, which is section 16(a) of the Food
Stamp Act of 1977, Pub. L. 88-525, as amended by Pub. L. 95-113, to
reflect the probable intent of Congress.
1998--Subsec. (a). Pub. L. 105-185, Sec. 502(a)(1), substituted
``Subject to subsection (k) of this section, the Secretary'' for ``The
Secretary'' in first sentence.
Subsec. (h)(1)(A)(iv)(II). Pub. L. 105-185, Sec. 501(1), substituted
``$31,000,000'' for ``$131,000,000''.
Subsec. (h)(1)(A)(v)(II). Pub. L. 105-185, Sec. 501(2), substituted
``$86,000,000'' for ``$131,000,000''.
Subsec. (k). Pub. L. 105-185, Sec. 502(a)(2), added subsec. (k).
1997--Subsec. (h)(1). Pub. L. 105-33 added par. (1) and struck out
former par. (1) consisting of subpars. (A) to (D) requiring the
Secretary to reserve for allocation to State agencies specified amounts
for fiscal years 1996 to 2002 to carry out employment and training
programs.
1996--Subsec. (a). Pub. L. 104-193, Secs. 844(c), 847, inserted
``but not including recruitment activities,'' before ``(5) fair'' and
substituted ``35 percent of the value of all funds or allotments
recovered or collected pursuant to sections 2015(b) and 2022(c) of this
title and 20 percent of the value of any other funds or allotments
recovered or collected, except the value of funds or allotments
recovered or collected that arise'' for ``25 percent during the period
beginning October 1, 1990, and ending September 30, 1995, and 50 percent
thereafter of the value of all funds or allotments recovered or
collected pursuant to subsections (b)(1) and (c) of section 2022 of this
title and 10 percent during the period beginning October 1, 1990, and
ending September 30, 1995, and 25 percent thereafter of the value of all
funds or allotments recovered or collected pursuant to section
2022(b)(2) of this title, except the value of funds or allotments
recovered or collected pursuant to section 2022(b)(2) of this title
which arise''.
Subsec. (b). Pub. L. 104-193, Secs. 848(a), 849, added subsec. (b)
and struck out former subsec. (b) which read as follows: ``The Secretary
shall (1) establish standards for the efficient and effective
administration of the food stamp program by the States, including
standards for the periodic review of the hours that food stamp offices
are open during the day, week, or month to ensure that employed
individuals are adequately served by the food stamp program, and (2)
instruct each State to submit, at regular intervals, reports which shall
specify the specific administrative actions proposed to be taken and
implemented in order to meet the efficiency and effectiveness standards
established pursuant to clause (1) of this subsection.''
Subsec. (c)(1)(B). Pub. L. 104-193, Sec. 848(b)(2), struck out
``pursuant to subsection (b) of this section'' after ``by the States''.
Subsec. (g)(4). Pub. L. 104-193, Sec. 109(c), substituted ``State
programs funded under part A of'' for ``State plans under the Aid to
Families with Dependent Children Program under''.
Subsec. (h). Pub. L. 104-193, Sec. 817(b), inserted subsec. heading.
Subsec. (h)(1). Pub. L. 104-193, Sec. 817(b), added par. (1) and
struck out former par. (1) which authorized Secretary to allocate funds
among State agencies for each of the fiscal years 1991 through 2002 to
carry out employment and training program under section 2015(d)(4) of
this title.
Pub. L. 104-127, Sec. 401(b), substituted ``2002'' for ``1995''
wherever appearing in subpars. (A), (B), (D), and (E)(ii).
Subsec. (h)(2). Pub. L. 104-193, Sec. 817(c), inserted before period
at end ``, including the costs for case management and casework to
facilitate the transition from economic dependency to self-sufficiency
through work''.
Subsec. (h)(5). Pub. L. 104-193, Sec. 817(d)(1), struck out ``(A)''
before ``The Secretary shall'' and struck out subpar. (B) which read as
follows: ``The Secretary shall, not later than January 1, 1989, report
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate on the
effectiveness of such employment and training programs.''
Subsec. (h)(6). Pub. L. 104-193, Sec. 817(d)(2), struck out par. (6)
which read as follows: ``The Secretary shall develop, and transmit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate, a
proposal for modifying the rate of Federal payments under this
subsection so as to reflect the relative effectiveness of the various
States in carrying out employment and training programs under section
2015(d)(4) of this title.''
1995--Subsec. (i)(3). Pub. L. 104-66 struck out par. (3) which read
as follows: ``Not later than 12 months after December 23, 1985, and each
12 months 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 that lists
project areas identified under paragraph (1) and describes any
procedures required to be carried out under paragraph (2).''
1994--Subsec. (e). Pub. L. 103-296 substituted ``Commissioner of
Social Security'' for ``Secretary of Health and Human Services'' in two
places.
1993--Subsec. (a). Pub. L. 103-66, Sec. 13961(1), added cls. (6) to
(8) and in proviso struck out ``authorized to pay each State agency an
amount not less than 75 per centum of the costs of State food stamp
program investigations and prosecutions, and is further'' after ``That
the Secretary is''.
Subsec. (c)(1)(C). Pub. L. 103-66, Sec. 13951(c)(1), substituted
``national performance measure'' for ``payment error tolerance level''
and substituted ``equal to--'' followed by cl. (i) for ``equal to its
payment error rate less such tolerance level times the total value of
allotments issued in such a fiscal year by such State agency.''
Subsec. (c)(3)(A). Pub. L. 103-66, Sec. 13951(c)(2), substituted
``120 days'' for ``60 days (or 90 days at the discretion of the
Secretary)''.
Subsec. (c)(6). Pub. L. 103-66, Sec. 13951(c)(3), struck out ``shall
be used to establish a payment-error tolerance level. Such tolerance
level for any fiscal year will be one percentage point added to the
lowest national performance measure ever announced up to and including
such fiscal year under this section. The payment-error tolerance level''
after ``The announced national performance measure''.
Subsec. (c)(8), (9). Pub. L. 103-66, Sec. 13951(c)(4), added pars.
(8) and (9).
Subsec. (g). Pub. L. 103-66, Sec. 13961(2), which directed the
substitution of ``the amount provided under subsection (a)(6) of this
section for'' for ``an amount equal to 63 percent effective on October
1, 1991, of'', was executed to reflect the probable intent of Congress
by making the substitution for ``an amount equal to--
``63 percent effective on October 1, 1991, of''.
Subsec. (h)(3). Pub. L. 103-66, Sec. 13922(c), substituted ``equal
to the payment made under section 2015(d)(4)(I)(i)(II) of this title but
not more than the applicable local market rate,'' for ``representing
$160 per month per dependent''.
Subsecs. (j), (k). Pub. L. 103-66, Sec. 13961(3), (4), redesignated
subsec. (k) as (j) and struck out former subsec. (j) which read as
follows: ``The Secretary is authorized to pay to each State agency an
amount equal to 100 per centum of the costs incurred by the State agency
in implementing and operating the immigration status verification system
described in section 1137(d) of the Social Security Act.''
1991--Subsec. (g). Pub. L. 102-237, Sec. 941(7)(A), inserted a comma
after ``1991''.
Subsec. (h)(4). Pub. L. 102-237, Sec. 941(7)(B), substituted ``this
chapter'' for ``the chapter''.
1990--Subsec. (a). Pub. L. 101-624, Sec. 1750, substituted ``25
percent during the period beginning October 1, 1990, and ending
September 30, 1995, and 50 percent thereafter'' for ``50 per centum'',
and ``10 percent during the period beginning October 1, 1990, and ending
September 30, 1995, and 25 percent thereafter'' for ``25 per centum''.
Subsec. (g). Pub. L. 101-624, Sec. 1752(a), substituted ``The'' for
``Effective October 1, 1980, the'' and ``63 percent effective on October
1, 1991'' for ``75 per centum''.
Subsec. (h)(1). Pub. L. 101-624, Sec. 1753, amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``The Secretary
shall allocate among the State agencies in each fiscal year, from funds
appropriated for such fiscal year under section 2027(a)(1) of this
title, the amount of $40,000,000 for the fiscal year ending September
30, 1986, $50,000,000 for the fiscal year ending September 30, 1987,
$60,000,000 for the fiscal year ending September 30, 1988, and
$75,000,000 for each of the fiscal years ending September 30, 1989 and
September 30, 1990, to carry out the employment and training program
under section 2015(d)(4) of this title, except as provided in paragraph
(3), during such fiscal year.''
1988--Subsec. (a)(4). Pub. L. 100-435, Sec. 204(b), substituted ``,
including those undertaken'' for ``permitted''.
Subsec. (c). Pub. L. 100-435, Sec. 604(1), added subsec. (c) and
struck out former subsec. (c) which related to State incentives for
reducing error.
Subsec. (d). Pub. L. 100-435, Sec. 604(2), added subsec. (d) and
struck out former subsec. (d) which defined ``payment error rate'' and
instituted error rate reduction program.
Subsec. (h). Pub. L. 100-435, Sec. 321(c), redesignated subsec. (h),
relating to payment of costs of immigration status verification system,
as (j).
Subsec. (h)(3). Pub. L. 100-435, Sec. 404(g), inserted ``for costs
of transportation and other actual costs (other than dependent care
costs) and an amount representing $160 per month per dependent'' after
``month''.
Subsec. (h)(6). Pub. L. 100-435, Sec. 404(e), added par. (6).
Subsec. (j). Pub. L. 100-435, Sec. 321(c), redesignated subsec. (h),
relating to payment of costs of immigration status verification system,
as (j).
Subsec. (k). Pub. L. 100-435, Sec. 321(b), added subsec. (k).
1987--Subsec. (a). Pub. L. 100-77 substituted ``(4) food stamp
informational activities permitted under section 2020(e)(1)(A) of this
title, and (5)'' for ``and (4)'' in first sentence.
1986--Subsec. (h). Pub. L. 99-603 added, at end of section, subsec.
(h) relating to payment of costs of immigration status verification
system.
1985--Subsec. (a). Pub. L. 99-198, Sec. 1535(c)(1), substituted
``subsections (b)(1) and (c) of section 2022 of this title'' for
``section 2022(b)(1) of this title''.
Subsec. (b)(1). Pub. L. 99-198, Sec. 1524, inserted ``, including
standards for the periodic review of the hours that food stamp offices
are open during the day, week, or month to ensure that employed
individuals are adequately served by the food stamp program,'' after
``States''.
Subsec. (d)(2)(A). Pub. L. 99-198, Sec. 1537(a)(1), inserted ``less
any amount payable as a result of the use by the State agency of
correctly processed information received from an automatic information
exchange system made available by any Federal department or agency''.
Subsec. (d)(6). Pub. L. 99-198, Sec. 1537(a)(2), added par. (6).
Subsec. (h). Pub. L. 99-198, Sec. 1517(c), added subsec. (h)
relating to authorization of appropriations, etc.
Subsec. (i). Pub. L. 99-198, Sec. 1539, added subsec. (i).
1982--Subsec. (a). Pub. L. 97-253, Sec. 179, inserted ``, except the
value of funds or allotments recovered or collected pursuant to section
2022(b)(2) of this title which arise from an error of a State agency''.
Subsec. (c). Pub. L. 97-253, Sec. 180(a)(1), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ``The
Secretary is authorized to adjust a State agency's federally funded
share of administrative costs pursuant to subsection (a) of this
section, other than the costs already shared in excess of 50 per centum
as described in the exception clause of subsection (a) of this section,
by increasing such share to (1) effective October 1, 1978, 60 per centum
of all such administrative costs in the case of a State agency whose (A)
semiannual cumulative allotment error rates with respect to eligibility,
overissuance, and underissuance as calculated in the quality control
program undertaken pursuant to subsection (d)(1) of this section are
less than five per centum and (B) whose rate of invalid decisions in
denying eligibility as calculated in the quality control program
conducted under subsection (d)(1) of this section is less than a
nationwide percentage that the Secretary determines to be reasonable;
(2) effective October 1, 1980, 65 per centum of all such administrative
costs in the case of a State agency meeting the standards contained in
paragraph (1) of this subsection; (3) effective October 1, 1980, 60 per
centum of all such administrative costs in the case of a State agency
whose cumulative allotment error rate as determined under paragraph
(1)(A) of this subsection is greater than 5 per centum but less than 8
per centum or the national standard payment error rate for the base
period, whichever is lower, and which also meets the standard contained
in paragraph (1)(B) of this subsection; and (4) effective October 1,
1980, 55 per centum of all such administrative costs in the case of a
State agency whose annual rate of error reduction is equal to or exceeds
25 per centum, and, effective October 1, 1981, which also meets the
standard contained in paragraph (1)(B) of this subsection. No State
agency shall receive more than one of the increased federally funded
shares of administrative costs set forth in paragraphs (1) through (4)
of this subsection.''
Subsec. (d). Pub. L. 97-253, Sec. 180(a)(2), (3), added subsec. (d),
and struck out former subsec. (d) which provided that effective October
1, 1981, and annually thereafter, each State not receiving an increased
share of administrative costs pursuant to subsec. (c)(2) of this section
was required to develop and submit to the Secretary for approval, as
part of the plan of operation required to be submitted under section
2020(d) of this title, a quality control plan for the State which had to
specify the actions such State proposes to take in order to reduce the
incidence of error rates in and the value of food stamp allotments for
households which failed to meet basic program eligibility requirements,
food stamp allotments overissued to eligible households, and food stamp
allotments underissued to eligible households, and (2) the incidence of
invalid decisions in certifying or denying eligibility.
Subsec. (e). Pub. L. 97-253, Secs. 180(a)(2), 189(b)(3),
redesignated subsec. (f) as (e), substituted reference to the Secretary
of Health and Human Services for former reference to the Secretary of
Health, Education, and Welfare. Former subsec. (e), which defined
``quality control'' as the monitoring and reduction of the rate of
errors in determining basic eligibility and benefit levels, was struck
out.
Subsec. (f). Pub. L. 97-253, Secs. 180(a)(2), 189(c), redesignated
subsec. (h) as (f), substituted a period for the semicolon, and struck
out ``and'' at the end. Former subsec. (f) redesignated (e).
Subsec. (g). Pub. L. 97-253, Sec. 180(a)(2), redesignated former
subsec. (i) as (g). Former subsec. (g), which related to State liability
for error under this section, was struck out.
Subsecs. (h), (i). Pub. L. 97-253, Sec. 180(a)(2), redesignated
subsecs. (h) and (i) as (f) and (g), respectively.
1981--Subsec. (a). Pub. L. 97-35 substituted provisions relating to
recovery through section 2022(b)(1) and (2) of this title for provisions
relating to recovery through prosecutions or other State activities,
substituted ``determinations of ineligibility'' for ``determinations of
fraud'', struck out ``(1) outreach,'' and redesignated cls. (2) to (5)
as (1) to (4), respectively.
Subsec. (b)(1). Pub. L. 97-98, Sec. 1325, struck out ``, including,
but not limited to, staffing standards such as caseload per
certification worker limitations,'' after ``by the States''.
Subsec. (c). Pub. L. 97-98, Sec. 1326(1), inserted ``, and,
effective October 1, 1981, which also meets the standard contained in
paragraph (1)(B) of this subsection'' after ``exceeds 25 per centum''.
Subsec. (d). Pub. L. 97-98, Sec. 1326(2), substituted in provision
preceding par. (1) ``October 1, 1981'' for ``October 1, 1978'' and
``subsection (c)(2) of this section'' for ``subsection (c) of this
section''.
Subsec. (f). Pub. L. 97-98, Sec. 1327, substituted ``State agencies
shall'' for ``State agencies may''.
1980--Subsec. (b). Pub. L. 96-249, Sec. 121, struck out provisions
requiring that if the Secretary finds that a State has failed without
good cause to meet any of the Secretary's standards, or has failed to
carry out the approved State plan of operation under section 2020(d) of
this title, the Secretary withhold from the State such funds authorized
under subsections (a) and (c) of this section as the Secretary
determines to be appropriate.
Subsec. (c). Pub. L. 96-249, Sec. 125, designated existing
provisions as par. (1), substituted ``(A) semiannual cumulative'' for
``cumulative'', and added subpar. (B) and pars. (2) to (4).
Subsec. (g). Pub. L. 96-249, Sec. 126, added subsec. (g).
Subsec. (h). Pub. L. 96-249, Sec. 128, added subsec. (h).
Subsec. (i). Pub. L. 96-249, Sec. 129, added subsec. (i).
1979--Subsec. (a). Pub. L. 96-58, Sec. 6, authorized the Secretary
to permit each State to retain 50 per centum of the value of all funds
or allotments recovered or collected through prosecutions or other State
activities directed against individuals who fraudulently obtain
allotments as determined in accordance with this chapter but directed
that officials responsible for making determinations of fraud under this
chapter should not receive or benefit from revenues retained by the
State under the provisions of this subsection.
Subsec. (f). Pub. L. 96-58, Sec. 4, added subsec. (f).
1977--Pub. L. 95-113 substituted revised provisions relating to
administrative cost-sharing and quality control for provisions
authorizing appropriations and relating to the financial operation of
the program which are now covered by section 2027 of this title.
1973--Subsec. (a). Pub. L. 93-86 extended authorization of
appropriations from June 30, 1973, to June 30, 1977, and inserted
provision relating to availability of appropriated sums.
1971--Subsec. (a). Pub. L. 91-671 is substituted appropriation
authorization of ``$1,750,000,000 for the fiscal year ending June 30,
1971; and for the fiscal years ending June 30, 1972 and June 30, 1973
such sums as the Congress may appropriate'' for ``$170,000,000 for the
six months ending December 31, 1970''.
1969--Subsec. (a). Pub. L. 91-116 increased appropriation
authorization limitation for fiscal year ending June 30, 1970, from
$340,000,000 to $610,000,000.
1968--Subsec. (a). Pub. L. 90-552 increased appropriations
authorization limitation for fiscal year ending June 30, 1969, from
$225,000,000 to $315,000,000, authorized appropriations of $340,000,000
and $170,000,000 for fiscal year ending June 30, 1970, and for six
months ending Dec. 31, 1970, substituted ``fiscal period'' for ``fiscal
year'', and provided for submission of reports to Congress on or before
January 20 of each year setting forth operations under this chapter
during preceding calendar year and projecting needs for ensuing calendar
year.
1967--Subsec. (a). Pub. L. 90-91 provided for appropriations for the
fiscal years ending June 30, 1968 and 1969, and inserted provision
dealing with the carrying out of this chapter only with funds
appropriated from the general fund of the Treasury for the purposes of
this chapter.
Effective Date of 2002 Amendment
Amendment by section 4118(a) of Pub. L. 107-171 not applicable with
respect to any sanction, appeal, new investment agreement, or other
action by the Secretary of Agriculture or a State agency that is based
on a payment error rate calculated for any fiscal year before fiscal
year 2003, see section 4118(e) of Pub. L. 107-171, set out as a note
under section 2022 of this title.
Pub. L. 107-171, title IV, Sec. 4119(b), May 13, 2002, 116 Stat.
321, provided that: ``The amendments made by this section [amending this
section] take effect on the date of enactment of this Act [May 13,
2002].''
Pub. L. 107-171, title IV, Sec. 4120(b), May 13, 2002, 116 Stat.
323, provided that: ``The amendment made by this section [amending this
section] takes effect on the date of enactment of this Act [May 13,
2002].''
Amendment by section 4121(a), (d) of Pub. L. 107-171 effective May
13, 2002, see section 4121(e) of Pub. L. 107-171, set out as a note
under section 2015 of this title.
Amendment by section 4122(a) of Pub. L. 107-171 effective Oct. 1,
2002, except as otherwise provided, see section 4405 of Pub. L. 107-171,
set out as an Effective Date note under section 1161 of Title 2, The
Congress.
Effective Date of 1999 Amendment
Pub. L. 106-78, title VII, Sec. 758, Oct. 22, 1999, 113 Stat. 1172,
provided that the amendment made by section 758 is effective beginning
in fiscal year 2001 and thereafter.
Effective Date of 1998 Amendment
Pub. L. 105-185, title V, Sec. 510(a), June 23, 1998, 112 Stat. 580,
provided that: ``The amendments made by sections 501 and 502 [amending
this section] take effect on the date of enactment of this Act [June 23,
1998].''
Effective Date of 1997 Amendment
Amendment by Pub. L. 105-33 effective Oct. 1, 1997, without regard
to whether regulations have been promulgated to implement such
amendment, see section 1005(b) of Pub. L. 105-33, set out as a note
under section 2015 of this title.
Effective Date of 1996 Amendment
Amendment by section 109(c) of Pub. L. 104-193 effective July 1,
1997, with transition rules relating to State options to accelerate such
date, rules relating to claims, actions, and proceedings commenced
before such date, rules relating to closing out of accounts for
terminated or substantially modified programs and continuance in office
of Assistant Secretary for Family Support, and provisions relating to
termination of entitlement under AFDC program, see section 116 of Pub.
L. 104-193, as amended, set out as an Effective Date note under section
601 of Title 42, The Public Health and Welfare.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section
110(a) of Pub. L. 103-296, set out as a note under section 401 of Title
42, The Public Health and Welfare.
Effective Date of 1993 Amendment
Section 13971 of Pub. L. 103-66 provided that:
``(a) General Effective Date and Implementation.--Except as provided
in subsection (b), this chapter [chapter 3 (Secs. 13901-13971) of title
XIII of Pub. L. 103-66, amending this section and sections 2012, 2014,
2015, 2017, 2020 to 2023, 2026, and 2028 of this title, and enacting
provisions set out as a note under section 2011 of this title] and the
amendments made by this chapter shall take effect, and shall be
implemented beginning on, October 1, 1993.
``(b) Special Effective Dates and Implementation.--(1)(A) Except as
provided in subparagraph (B), section 13951 [amending this section and
sections 2022 and 2023 of this title] shall take effect on October 1,
1991.
``(B) The amendment made by section 13951(c)(2) [amending this
section] shall take effect on October 1, 1992.
``(2)(A) Except as provided in subparagraph (B), the amendments made
by section 13961 [amending this section] shall be effective with respect
to calendar quarters beginning on or after April 1, 1994.
``(B) In the case of a State whose legislature meets biennially, and
does not have a regular session scheduled in calendar year 1994, and
that demonstrates to the satisfaction of the Secretary of Agriculture
that there is no mechanism, under the constitution and laws of the
State, for appropriating the additional funds required by the amendments
made by this section before the next such regular legislative session,
the Secretary may delay the effective date of all or part of the
amendments made by section 13961 [amending this section] until the
beginning date of a calendar quarter that is not later than the first
calendar quarter beginning after the close of the first regular session
of the State legislature after the date of enactment of this Act [Aug.
10, 1993].
``(3) Sections 13912(a) and 13912(b)(1) [amending section 2014 of
this title] shall take effect, and shall be implemented beginning on,
July 1, 1994.
``(4) Sections 13911, 13913, 13914, 13915, 13916, 13922, 13924,
13931, 13932, and 13942 [amending this section and sections 2012, 2014,
2015, and 2017 of this title] shall take effect, and shall be
implemented beginning on, September 1, 1994.
``(5)(A) Except as provided in subparagraph (B), section 13921
[amending section 2014 of this title] shall take effect, and shall be
implemented beginning on, September 1, 1994.
``(B) State agencies shall implement the amendment made by section
13921 not later than October 1, 1995.
``(6) Section 13912(b)(2) [amending section 2014 of this title]
shall take effect, and shall be implemented beginning on, January 1,
1997.''
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-237 effective and to be implemented no
later than Feb. 1, 1992, see section 1101(d)(1) of Pub. L. 102-237, set
out as a note under section 1421 of this title.
Effective Date of 1990 Amendment
Amendment by section 1750 of Pub. L. 101-624 effective Oct. 1, 1990,
amendment by section 1752(a) of Pub. L. 101-624 effective and
implemented first day of month beginning 120 days after publication of
implementing regulations to be promulgated not later than Oct. 1, 1991,
and amendment by section 1753 of Pub. L. 101-624 effective Nov. 28,
1990, see section 1781(a), (b)(1), (2) of Pub. L. 101-624, set out as a
note under section 2012 of this title.
Section 1752(b) of Pub. L. 101-624 provided that: ``The amendment
made by subsection (a)(2) [amending this section] shall not apply to
proposals for automatic data processing and information retrieval
systems under section 16(g) of the Food Stamp Act of 1977 [subsec. (g)
of this section] that were approved by the Secretary of Agriculture
prior to the date of enactment of this Act [Nov. 28, 1990].''
Effective Date of 1988 Amendment
Amendment by sections 204(b), 321(b), and 404(e) of Pub. L. 100-435
to be effective and implemented on July 1, 1989, amendment by section
321(c) of Pub. L. 100-435 to be effective and implemented on Sept. 19,
1988, amendment by section 404(g) of Pub. L. 100-435 to be effective and
implemented on Oct. 1, 1988, and amendment by section 604 of Pub. L.
100-435 effective Oct. 1, 1985, with respect to claims under subsec. (c)
of this section for quality control review periods after such date,
except as otherwise provided, except that amendment by sections 204(b),
321(b), (c), 404(e), (g) of Pub. L. 100-435 to become effective and
implemented on Oct. 1, 1989, if final order is issued under section
902(b) of Title 2, The Congress, for fiscal year 1989 making reductions
and sequestrations specified in the report required under section
901(a)(3)(A) of Title 2, see section 701(a), (b)(1), (4), (5), (c)(2) of
Pub. L. 100-435, set out as a note under section 2012 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section
121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of
Title 42, The Public Health and Welfare.
Effective Date of 1985 Amendment
Section 1537(a) of Pub. L. 99-198 provided that the amendment made
by that section is effective with respect to the fiscal year beginning
Oct. 1, 1985, and each fiscal year thereafter.
Effective Date of 1982 Amendment
Amendment by section 179 of Pub. L. 97-253 effective Sept. 8, 1982,
see section 193(a) of Pub. L. 97-253, set out as a note under section
2012 of this title.
Enactment by section 180(a) of Pub. L. 97-253 effective Oct. 1,
1982, see section 193(b) of Pub. L. 97-253, set out as a note under
section 2012 of this title.
Effective Date of 1981 Amendments
Amendment by Pub. L. 97-35 effective on earlier of Sept. 8, 1982, or
date such amendment became effective pursuant to section 117 of Pub. L.
97-35, set out as a note under section 2012 of this title, see section
192(a) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Amendment by Pub. L. 97-98 effective on earlier of Sept. 8, 1982, or
date such amendment became effective pursuant to section 1338 of Pub. L.
97-98, set out as a note under section 2012 of this title, see section
192(b) of Pub. L. 97-253, set out as a note under section 2012 of this
title.
Amendment by Pub. L. 97-98 effective upon such date as Secretary of
Agriculture may prescribe, taking into account need for orderly
implementation, see section 1338 of Pub. L. 97-98, set out as a note
under section 2012 of this title.
Amendment by Pub. L. 97-35 effective and implemented upon such dates
as Secretary of Agriculture may prescribe, taking into account need for
orderly implementation, see section 117 of Pub. L. 97-35, set out as a
note under section 2012 of this title.
Effective Date of 1979 Amendment
Secretary of Agriculture to issue final regulations implementing the
amendment of this section by Pub. L. 96-58 within 150 days after Aug.
14, 1979, see section 10(b) of Pub. L. 96-58, set out as a note under
section 2012 of this title.
Effective Date of 1977 Amendment
Section 1301 of Pub. L. 95-113 provided that the amendment made by
that section is effective Oct. 1, 1977.
Regulations
Secretary of Agriculture to promulgate regulations necessary to
implement amendment of this section by Pub. L. 105-33, not later than
one year after Aug. 5, 1997, see section 1005(a) of Pub. L. 105-33, set
out as a note under section 2015 of this title.
Carryover Funds
Pub. L. 107-171, title IV, Sec. 4121(b), May 13, 2002, 116 Stat.
323, provided that: ``Notwithstanding any other provision of law, funds
provided under section 16(h)(1)(A) of the Food Stamp Act of 1977 (7
U.S.C. 2025(h)(1)(A)) for any fiscal year before fiscal year 2002 shall
be rescinded on the date of enactment of this Act [May 13, 2002], unless
obligated by a State agency before that date.''
Review of Methodology Used To Make Certain Determinations
Pub. L. 105-185, title V, Sec. 502(b), June 23, 1998, 112 Stat. 578,
provided that: ``Not later than 1 year after the date of enactment [June
23, 1998], the Comptroller General of the United States shall--
``(1) review the adequacy of the methodology used in making the
determinations required under section 16(k)(2)(B) of the Food Stamp
Act of 1977 [7 U.S.C. 2025(k)(2)(B)] (as added by subsection
(a)(2)); and
``(2) submit a written report on the results of the review to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate.''
Report to Congress
Section 1002(b) of Pub. L. 105-33 provided that: ``Not later than 30
months after the date of enactment of this Act [Aug. 5, 1997], the
Secretary of Agriculture 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 regarding whether the
amounts made available under section 16(h)(1)(A) of the Food Stamp Act
of 1977 [7 U.S.C. 2025(h)(1)(A)] (as a result of the amendment made by
subsection (a)) have been used by State agencies to increase the number
of work slots for recipients subject to section 6(o) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(o)) in employment and training programs and
workfare in the most efficient and effective manner practicable.''
Quality Control Sanctions
Section 1751 of Pub. L. 101-624 provided that:
``(a) In General.--No disallowance or other similar action shall be
applied to or collected from any State for any of the fiscal years 1983,
1984, or 1985 under section 16(c) of the Food Stamp Act of 1977 (7
U.S.C. 2025(c)) or any predecessor statutory or regulatory provision
relating to disallowances or other similar actions for erroneous
issuances made in carrying out a State plan under such Act [7 U.S.C.
2011 et seq.], except for amounts to be paid or collected after the date
of enactment of this Act [Nov. 28, 1990] pursuant to settlement
agreements which do not provide for payment adjustments based on future
changes in law.
``(b) Application.--Subsection (a) shall also apply to disallowances
described in subsection (a) with respect to which an administrative or
judicial appeal is pending on the date of enactment of this Act [Nov.
28, 1990], including any such disallowance that has been collected
before such date.''
Quality Control Studies and Penalty Moratorium
Section 1538 of Pub. L. 99-198, as amended by Pub. L. 99-260,
Sec. 12, Mar. 20, 1986, 100 Stat. 52, provided that:
``(a)(1)(A) The Secretary of Agriculture (hereinafter referred to in
this section as the `Secretary') shall conduct a study of the quality
control system used for the food stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
``(B) The study shall--
``(i) examine how best to operate such system in order to obtain
information that will allow the State agencies to improve the
quality of administration; and
``(ii) provide reasonable data on the basis of which Federal
funding may be withheld for State agencies with excessive levels of
erroneous payments.
``(2)(A) The Secretary shall also contract with the National Academy
of Sciences to conduct a concurrent independent study for the purpose
described in paragraph (1).
``(B) For purposes of such study, the Secretary shall provide to the
National Academy of Sciences any relevant data available to the
Secretary at the onset of the study and on an ongoing basis.
``(3) Not later than 1 year after the date the Secretary and the
National Academy of Sciences enter into the contract required under
paragraph (2), the Secretary and the National Academy of Sciences shall
report the results of their respective studies to the Congress.
``(b)(1) During the 6-month period beginning on the date of
enactment of this Act [Dec. 23, 1985] (hereinafter in this section
referred to as the `moratorium period'), the Secretary shall not impose
any reductions in payments to State agencies pursuant to section 16 of
the Food Stamp Act of 1977 (7 U.S.C. 2025).
``(2) During the moratorium period, the Secretary and the State
agencies shall continue to--
``(A) operate the quality control systems in effect under the
Food Stamp Act of 1977 [7 U.S.C. 2011 et seq.]; and
``(B) calculate error rates under section 16 of such Act [7
U.S.C. 2025].
``(c)(1) Not later than 6 months after the date on which the results
of both studies required under subsection (a)(3) have been reported, the
Secretary shall publish regulations that shall--
``(A) restructure the quality control system used under the Food
Stamp Act of 1977 [7 U.S.C. 2011 et seq.] to the extent the
Secretary determines to be appropriate, taking into account the
studies conducted under subsection (a); and
``(B) establish, taking into account the studies conducted under
subsection (a), criteria for adjusting the reductions that shall be
made for quarters prior to the implementation of the restructured
quality control system so as to eliminate reductions for those
quarters that would not be required if the restructured quality
control system had been in effect during those quarters.
``(2) Beginning 6 months after the date on which the results of both
studies required under subsection (a)(3) have been reported, the
Secretary shall--
``(A) implement the restructured quality control system; and
``(B) reduce payments to State agencies--
``(i) for quarters after implementation of such system in
accordance with the restructured quality control system; and
``(ii) for quarters before implementation of such system, as
provided under the regulations described in paragraph (1)(B).''
Section Referred to in Other Sections
This section is referred to in sections 2014, 2015, 2016, 2020,
2022, 2023, 2026, 2027, 2030, 2031, 2032, 2035 of this title; title 42
section 629c.
