§ 2028. — Puerto Rico block grant.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2028]
TITLE 7--AGRICULTURE
CHAPTER 51--FOOD STAMP PROGRAM
Sec. 2028. Consolidated block grants for Puerto Rico and
American Samoa
(a) Payments to governmental entities
(1) Definition of governmental entity
In this subsection, the term ``governmental entity'' means--
(A) the Commonwealth of Puerto Rico; and
(B) American Samoa.
(2) Block grants
(A) Amount of block grants
From the sums appropriated under this chapter, the Secretary
shall, subject to this section, pay to governmental entities to
pay the expenditures for nutrition assistance programs for needy
persons as described in subparagraphs (B) and (C)--
(i) for fiscal year 2003, $1,401,000,000; and
(ii) for each of fiscal years 2004 through 2007, the
amount specified in clause (i), as adjusted by the
percentage by which the thrifty food plan has been adjusted
under section 2012(o)(4) of this title between June 30,
2002, and June 30 of the immediately preceding fiscal year.
(B) Payments to Commonwealth of Puerto Rico
(i) In general
For fiscal year 2003 and each fiscal year thereafter,
the Secretary shall use 99.6 percent of the funds made
available under subparagraph (A) for payment to the
Commonwealth of Puerto Rico to pay--
(I) 100 percent of the expenditures by the
Commonwealth for the fiscal year for the provision of
nutrition assistance included in the plan of the
Commonwealth approved under subsection (b) of this
section; and
(II) 50 percent of the related administrative
expenses.
(ii) Exception for expenditures for certain systems
Notwithstanding clause (i), the Commonwealth of Puerto
Rico may spend in fiscal year 2002 or 2003 not more than
$6,000,000 of the amount required to be paid to the
Commonwealth for fiscal year 2002 under this paragraph (as
in effect on the day before May 13, 2002) to pay 100 percent
of the costs of--
(I) upgrading and modernizing the electronic data
processing system used to carry out nutrition assistance
programs for needy persons;
(II) implementing systems to simplify the
determination of eligibility to receive the nutrition
assistance; and
(III) operating systems to deliver the nutrition
assistance through electronic benefit transfers.
(C) Payments to American Samoa
For fiscal year 2003 and each fiscal year thereafter, the
Secretary shall use 0.4 percent of the funds made available
under subparagraph (A) for payment to American Samoa to pay 100
percent of the expenditures by American Samoa for a nutrition
assistance program extended under section 1469d(c) of title 48.
(D) Carryover of funds
For fiscal year 2002 and each fiscal year thereafter, not
more than 2 percent of the funds made available under this
paragraph for the fiscal year to each governmental entity may be
carried over to the following fiscal year.
(3) Time and manner of payments to Commonwealth of Puerto
Rico
The Secretary shall, subject to the provisions of subsection (b)
of this section, pay to the Commonwealth for the applicable fiscal
year, at such times and in such manner as the Secretary may
determine, the amount estimated by the Commonwealth pursuant to
subsection (b)(1)(A)(iv) of this section, reduced or increased to
the extent of any prior overpayment or current underpayment which
the Secretary determines has been made under this section and with
respect to which adjustment has not already been made under this
subsection.
(b) Plan for provision of assistance; approval; noncompliance
(1)(A) In order to receive payments under this chapter for any
fiscal year, the Commonwealth shall have a plan for that fiscal year
approved by the Secretary under this section. By July 1 of each year, if
the Commonwealth wishes to receive payments, it shall submit a plan for
the provision of the assistance described in subsection (a)(2)(B) of
this section for the following fiscal year which--
(i) designates the agency or agencies directly responsible for
the administration, or supervision of the administration, of the
program for the provision of such assistance;
(ii) assesses the food and nutrition needs of needy persons
residing in the Commonwealth;
(iii) describes the program for the provision of such
assistance, including the assistance to be provided and the persons
to whom such assistance will be provided, and any agencies
designated to provide such assistance, which program must meet such
requirements as the Secretary may by regulation prescribe for the
purpose of assuring that assistance is provided to the most needy
persons in the jurisdiction;
(iv) estimates the amount of expenditures necessary for the
provision of the assistance described in the program and related
administrative expenses, up to the amount provided for payment by
subsection (a)(2)(B) of this section; and
(v) includes such other information as the Secretary may
require.
(B)(i) The Secretary shall approve or disapprove any plan submitted
pursuant to subparagraph (A) no later than August 1 of the year in which
it is submitted. The Secretary shall approve any plan which complies
with the requirements of subparagraph (A). If a plan is disapproved
because it does not comply with any of the requirements of that
paragraph the Secretary shall, except as provided in subparagraph
(B)(ii), notify the appropriate agency in the Commonwealth that payments
will not be made to it under subsection (a) of this section for the
fiscal year to which the plan applies until the Secretary is satisfied
that there is no longer any such failure to comply, and until the
Secretary is so satisfied, the Secretary will make no payments.
(ii) The Secretary may suspend the denial of payments under
subparagraph (B)(i) for such period as the Secretary determines
appropriate and instead withhold payments provided for under subsection
(a) of this section, in whole or in part, for the fiscal year to which
the plan applies, until the Secretary is satisfied that there is no
longer any failure to comply with the requirements of subparagraph (A),
at which time such withheld payments shall be paid.
(2)(A) The Commonwealth shall provide for a biennial audit of
expenditures under its program for the provision of the assistance
described in subsection (a)(2)(B) of this section, and within 120 days
of the end of each fiscal year in which the audit is made, shall report
to the Secretary the findings of such audit.
(B) Within 120 days of the end of the fiscal year, the Commonwealth
shall provide the Secretary with a statement as to whether the payments
received under subsection (a) of this section for that fiscal year
exceeded the expenditures by it during that year for which payment is
authorized under this section, and if so, by how much, and such other
information as the Secretary may require.
(C)(i) If the Secretary finds that there is a substantial failure by
the Commonwealth to comply with any of the requirements of subparagraphs
(A) and (B), or to comply with the requirements of subsection (b)(1)(A)
of the section in the administration of a plan approved under subsection
(b)(1)(B) of this section, the Secretary shall, except as provided in
subparagraph (C)(ii), notify the appropriate agency in the Commonwealth
that further payments will not be made to it under subsection (a) of
this section until the Secretary is satisfied that there will no longer
be any such failure to comply, and until the Secretary is so satisfied,
the Secretary shall make no further payments.
(ii) The Secretary may suspend the termination of payments under
subparagraph (C)(i) for such period as the Secretary determines
appropriate, and instead withhold payments provided for under subsection
(a) of this section, in whole or in part, until the Secretary is
satisfied that there will no longer be any failure to comply with the
requirements of subparagraphs (A) and (B) and subsection (b)(1)(A) of
this section, at which time such withheld payments shall be paid.
(iii) Upon a finding under subparagraph (C)(i) of a substantial
failure to comply with any of the requirements of subparagraphs (A) and
(B) and subsection (b)(1)(A) of this section, the Secretary may, in
addition to or in lieu of any action taken under subparagraphs (C)(i)
and (C)(ii), refer the matter to the Attorney General with a request
that injunctive relief be sought to require compliance by the
Commonwealth of Puerto Rico, and upon suit by the Attorney General in an
appropriate district court of the United States and a showing that
noncompliance has occurred, appropriate injunctive relief shall issue.
(c) Review; technical assistance
(1) The Secretary shall provide for the review of the programs for
the provision of the assistance described in subsection (a)(2)(A) of
this section for which payments are made under this chapter.
(2) The Secretary is authorized as the Secretary deems practicable
to provide technical assistance with respect to the programs for the
provision of the assistance described in subsection (a)(2)(A) of this
section.
(d) Penalty for violations
Whoever knowingly and willfully embezzles, misapplies, steals, or
obtains by fraud, false statement, or forgery, any funds, assets, or
property provided or financed under this section shall be fined not more
than $10,000 or imprisoned for not more than five years, or both, but if
the value of the funds, assets or property involved is not over $200,
the penalty shall be a fine of not more than $1,000 or imprisonment for
not more than one year, or both.
(Pub. L. 88-525, Sec. 19, as added Pub. L. 97-35, title I,
Sec. 116(a)(2), Aug. 13, 1981, 95 Stat. 364; amended Pub. L. 97-253,
title I, Sec. 184(a), Sept. 8, 1982, 96 Stat. 785; Pub. L. 98-204,
Sec. 1, Dec. 2, 1983, 97 Stat. 1385; Pub. L. 99-114, Sec. 2, Oct. 1,
1985, 99 Stat. 488; Pub. L. 99-157, Sec. 3, Nov. 15, 1985, 99 Stat. 818;
Pub. L. 99-182, Sec. 3, Dec. 13, 1985, 99 Stat. 1173; Pub. L. 99-198,
title XV, Sec. 1543, Dec. 23, 1985, 99 Stat. 1589; Pub. L. 101-624,
title XVII, Sec. 1762(b), Nov. 28, 1990, 104 Stat. 3804; Pub. L. 102-
237, title IX, Sec. 941(9), Dec. 13, 1991, 105 Stat. 1893; Pub. L. 103-
66, title XIII, Sec. 13917, Aug. 10, 1993, 107 Stat. 674; Pub. L. 104-
127, title IV, Sec. 401(f), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 106-
387, Sec. 1(a) [title VIII, Sec. 821], Oct. 28, 2000, 114 Stat. 1549,
1549A-59; Pub. L. 107-171, title IV, Sec. 4124(a), May 13, 2002, 116
Stat. 324.)
Amendments
2002--Pub. L. 107-171, Sec. 4124(a)(1), substituted ``Consolidated
block grants for Puerto Rico and American Samoa'' for ``Puerto Rico
block grant'' in section catchline.
Subsec. (a). Pub. L. 107-171, Sec. 4124(a)(1), inserted heading,
added pars. (1) and (2), redesignated former par. (2) as (3) and
inserted heading, and struck out former par. (1) which read as follows:
``(1)(A) From the sums appropriated under this chapter, the
Secretary shall, subject to the provisions of this section, pay to the
Commonwealth of Puerto Rico--
``(i) for fiscal year 2000, $1,268,000,000;
``(ii) for fiscal year 2001, the amount required to be paid
under clause (i) for fiscal year 2000, as adjusted by the change in
the Food at Home series of the Consumer Price Index for All Urban
Consumers, published by the Bureau of Labor Statistics of the
Department of Labor, for the most recent 12-month period ending in
June; and
``(iii) for fiscal year 2002, the amount required to be paid
under clause (ii) for fiscal year 2001, as adjusted by the
percentage by which the thrifty food plan is adjusted for fiscal
year 2002 under section 2012(o)(4) of this title;
to finance 100 percent of the expenditures for food assistance provided
to needy persons and 50 percent of the administrative expenses related
to the provision of the assistance.
``(B) The payments to the Commonwealth for any fiscal year shall not
exceed the expenditures by that jurisdiction during that year for the
provision of the assistance the provision of which is included in the
plan of the Commonwealth approved under subsection (b) of this section
and 50 per centum of the related administrative expenses.''
Subsec. (b). Pub. L. 107-171, Sec. 4124(a)(2), substituted
``subsection (a)(2)(B) of this section'' for ``subsection (a)(1)(A) of
this section'' wherever appearing.
Subsec. (c). Pub. L. 107-171, Sec. 4124(a)(3), substituted
``subsection (a)(2)(A) of this section'' for ``subsection (a)(1)(A) of
this section'' in two places.
2000--Subsec. (a)(1)(A). Pub. L. 106-387 substituted ``Puerto Rico--
'' and cls. (i) to (iii) for ``Puerto Rico $1,143,000,000 for fiscal
year 1996, $1,174,000,000 for fiscal year 1997, $1,204,000,000 for
fiscal year 1998, $1,236,000,000 for fiscal year 1999, $1,268,000,000
for fiscal year 2000, $1,301,000,000 for fiscal year 2001, and
$1,335,000,000 for fiscal year 2002,''.
1996--Subsec. (a)(1)(A). Pub. L. 104-127 substituted
``$1,143,000,000 for fiscal year 1996, $1,174,000,000 for fiscal year
1997, $1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal
year 1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for
fiscal year 2001, and $1,335,000,000 for fiscal year 2002'' for
``$974,000,000 for fiscal year 1991, $1,013,000,000 for fiscal year
1992, $1,051,000,000 for fiscal year 1993, $1,097,000,000 for fiscal
year 1994, and $1,143,000,000 for fiscal year 1995''.
1993--Subsec. (a)(1)(A). Pub. L. 103-66 substituted
``$1,097,000,000'' for ``$1,091,000,000'' and ``$1,143,000,000'' for
``$1,133,000,000''.
1991--Subsec. (b)(1)(A)(i). Pub. L. 102-237 struck out a period
after ``directly''.
1990--Subsec. (a)(1)(A). Pub. L. 101-624 amended subpar. (A)
generally. Prior to amendment, subpar. (A) read as follows: ``From the
sums appropriated under this chapter the Secretary shall, subject to the
provisions of this subsection and subsection (b) of this section, pay to
the Commonwealth of Puerto Rico not to exceed $825,000,000 for the
fiscal year ending September 30, 1986, $852,750,000 for the fiscal year
ending September 30, 1987, $879,750,000 for the fiscal year ending
September 30, 1988, $908,250,000 for the fiscal year ending September
30, 1989, and $936,750,000 for the fiscal year ending September 30,
1990, to finance 100 per centum of the expenditures for food assistance
provided to needy persons, and 50 per centum of the administrative
expenses related to the provision of such assistance.''
1985--Subsec. (a)(1)(A). Pub. L. 99-198, Sec. 1543(1), (2),
substituted ``for the fiscal year ending September 30, 1986,
$852,750,000 for the fiscal year ending September 30, 1987, $879,750,000
for the fiscal year ending September 30, 1988, $908,250,000 for the
fiscal year ending September 30, 1989, and $936,750,000 for the fiscal
year ending September 30, 1990,'' for ``for each fiscal year'' and
struck out ``noncash'' after ``100 per centum of the expenditures for''.
Pub. L. 99-114, Pub. L. 99-157, and Pub. L. 99-182, made identical
amendments which temporarily struck out ``noncash'' after ``100 per
centum of the expenditures for'', for specified periods of time. See
Effective and Termination Dates of 1985 Amendments note below.
Subsec. (b)(1)(A)(i). Pub. L. 99-198, Sec. 1543(3), substituted
``the agency or agencies directly.'' for ``a single agency which shall
be''.
1983--Subsec. (a)(1)(A). Pub. L. 98-204 temporarily struck out
``noncash'' after ``100 per centum of the expenditures for''. See
Effective and Termination Dates of 1983 Amendment note below.
1982--Subsec. (a)(1)(A). Pub. L. 97-253 substituted ``the
expenditures for noncash food assistance'' for ``the expenditures for
food assistance''.
Effective Date of 2002 Amendment
Pub. L. 107-171, title IV, Sec. 4124(c), (d), May 13, 2002, 116
Stat. 326, provided that:
``(c)Applicability.--
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section [amending this section and repealing
section 2033 of this title] apply beginning on October 1, 2002.
``(2) Exceptions.--Subparagraphs (B)(ii) and (D) of section
19(a)(2) of the Food Stamp Act of 1977 [7 U.S.C. 2028(a)(2)] (as
amended by subsection (a)(1)) apply beginning on the date of
enactment of this Act [May 13, 2002].
``(d) Effective Date.--The amendments made by this section [amending
this section and repealing section 2033 of this title] take effect on
the date of enactment of this Act [May 13, 2002].''
Effective and Termination Dates of 1985 Amendments
Section 3 of Pub. L. 99-182 provided that the amendment made by that
section is effective for the period beginning Dec. 14, 1985, and ending
Dec. 31, 1985.
Section 3 of Pub. L. 99-157 provided that the amendment made by that
section is effective for the period beginning Nov. 16, 1985, and ending
Dec. 13, 1985.
Section 2 of Pub. L. 99-114 provided that the amendment made by that
section is effective for the period beginning Oct. 1, 1985, and ending
Nov. 15, 1985.
Effective Date of 1993 Amendment
Amendment by Pub. L. 103-66 effective, and to be implemented
beginning on, Oct. 1, 1993, see section 13971(a) of Pub. L. 103-66, set
out as a note under section 2025 of this title.
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 Pub. L. 101-624 effective Oct. 1, 1990, see section
1781(b)(1) of Pub. L. 101-624, set out as a note under section 2012 of
this title.
Effective and Termination Dates of 1983 Amendment
Section 1 of Pub. L. 98-204 provided that the amendment made by that
section is effective for the period beginning Jan. 1, 1984, and ending
Sept. 30, 1985.
Effective Date of 1982 Amendment
Amendment by 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.
Section 184(b) of Pub. L. 97-253, as amended by Pub. L. 98-107,
Sec. 101(b), Oct. 1, 1983, 97 Stat. 734, provided that: ``The amendment
made by subsection (a) [amending this section] shall not apply with
respect to any plan submitted under section 19(b) of the Food Stamp Act
of 1977 (7 U.S.C. 2028(b)) [subsec. (b) of this section] by the
Commonwealth of Puerto Rico in order to receive payments for the fiscal
year ending September 30, 1982, or the fiscal year ending September 30,
1983, or for the first three months of the fiscal year ending September
30, 1984.''
Effective Date
Section 116(a) of Pub. L. 97-35 provided that this section is
effective July 1, 1982.
Nutrition Assistance Program in Puerto Rico
Section 1762(a) of Pub. L. 101-624 provided that: ``It is the policy
of Congress that citizens of the United States who reside in the
Commonwealth of Puerto Rico should be safeguarded against hunger and
treated on an equitable and fair basis with other citizens under Federal
nutritional programs.''
Nutritional Needs of Puerto Ricans; Study and Report to Congress
Section 1762(c), (d) of Pub. L. 101-624 provided that:
``(c) Study of Nutritional Needs of Puerto Ricans.--The Comptroller
General of the United States shall conduct a study of--
``(1) the nutritional needs of the citizens of the Commonwealth
of Puerto Rico, including--
``(A) the adequacy of the nutritional level of the diets of
members of households receiving assistance under the nutrition
assistance program and other households not currently receiving
the assistance;
``(B) the incidence of inadequate nutrition among children
and the elderly residing in the Commonwealth;
``(C) the nutritional impact of restoring the level of
nutritional assistance provided to households in the
Commonwealth to the level of the assistance provided to other
households in the United States; and
``(D) such other factors as the Comptroller General
considers appropriate; and
``(2) the potential alternative means of providing nutritional
assistance in the Commonwealth of Puerto Rico, including--
``(A) the impact of restoring the Commonwealth to the food
stamp program;
``(B) increasing the benefits provided under the nutrition
assistance program to the aggregate value of food stamp coupons
that would be distributed to households in the Commonwealth if
the Commonwealth were to participate in the food stamp program;
and
``(C) the usefulness of adjustments to standards of
eligibility and other factors appropriate to the circumstances
of the Commonwealth comparable to those adjustments made under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) for Alaska,
Hawaii, Guam, and the Virgin Islands of the United States.
``(d) Report of Findings.--Not later than August 1, 1992, the
Comptroller General shall submit a final report on the findings of the
study required under subsection (c) to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.''
Study of Food Assistance Program in Puerto Rico; Report to Congress by
March 1, 1985
Section 2 of Pub. L. 98-204 provided that: ``The Secretary of
Agriculture shall conduct a study of the food assistance program in
Puerto Rico carried out under section 19 of the Food Stamp Act of 1977
(7 U.S.C. 2028) which shall include (1) an assessment of its impact on
the adequacy of the nutritional level of the diets of households
receiving food assistance in the form of cash rather than in a noncash
form, (2) an assessment of the expenditure levels for food of such
households, and (3) any other factors the Secretary considers
appropriate. The Secretary shall submit a final report of the findings
of the study to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate no later than March 1, 1985.''
Amount Payable to the Commonwealth of Puerto Rico for Fiscal Year 1982;
Plans To Be Submitted to the Secretary for Grants for Fiscal Years 1982
and 1983
Section 116(b) of Pub. L. 97-35 provided that: ``Notwithstanding the
provisions of section 19 of the Food Stamp Act of 1977 [this section],
as added by this section--
``(1) the amount payable to the Commonwealth of Puerto Rico
under section 19 for fiscal year 1982 shall be $206,500,000, and the
Secretary of Agriculture is authorized to grant such waivers of the
requirements imposed by that section with respect to that fiscal
year as the Secretary determines appropriate to carry out the
purposes of that section; and
``(2) in order to receive the amounts payable under this
subsection or section 19 for fiscal years 1982 and 1983, the
Commonwealth shall submit, for the Secretary's approval, the plan
required by the provisions of subsection (b) of section 19 by April
1, 1982.''
