US (United States) Code. Title 7. Chapter 51: Food stamp program

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Agriculture

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-CITE-

7 USC CHAPTER 51 - FOOD STAMP PROGRAM 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

.

-HEAD-

CHAPTER 51 - FOOD STAMP PROGRAM

-MISC1-

Sec.

2011. Congressional declaration of policy.

2012. Definitions.

2012a. Publicly operated community health centers.

2013. Establishment of program.

(a) Use of coupons; redeemability.

(b) Distribution of federally donated foods.

(c) Regulations; transmittal of copy of regulations

to Congressional committees prior to issuance.

2014. Eligible households.

(a) Income and other financial resources as

substantial limiting factors in obtaining more

nutritious diet; recipients under Social

Security Act.

(b) Eligibility standards.

(c) Gross income standard.

(d) Income excluded in computing household income.

(e) Deductions from income.

(f) Calculation of household income; prospective or

retrospective accounting basis; consistency.

(g) Allowable financial resources which eligible

household may own.

(h) Temporary emergency standards of eligibility;

Food Stamp Disaster Task Force; direct

assistance to State and local officials.

(i) Attribution of income and resources to sponsored

aliens; coverage, computations, etc.

(j) Resource exemption for otherwise exempt

households.

(k) Assistance to third parties included; educational

benefits; exceptions.

(l) Earnings to participants of on-the-job training

programs; exception.

(m) Simplified calculation of income for

self-employed.

(n) State options to simplify determination of child

support payments.

2015. Eligibility disqualifications.

(a) Additional specific conditions rendering

individuals ineligible.

(b) Fraud and misrepresentation; disqualification

penalties; ineligibility period; applicable

procedures.

(c) Refusal to provide necessary information.

(d) Conditions of participation.

(e) Students.

(f) Aliens.

(g) Residents of States which provide State

supplementary payments.

(h) Transfer of assets to qualify.

(i) Comparable treatment for disqualification.

(j) Disqualification for receipt of multiple food

stamp benefits.

(k) Disqualification of fleeing felons.

(l) Custodial parent's cooperation with child support

agencies.

(m) Noncustodial parent's cooperation with child

support agencies.

(n) Disqualification for child support arrears.

(o) Work requirement.

2016. Issuance and use of coupons.

(a) Printing.

(b) Approved food stores; receipt of cash in change

for coupons used to purchase food.

(c) Design of coupons.

(d) Coupon level inventories; monitorship; monthly

operations report.

(e) Delivery and control procedures.

(f) State issuance liability.

(g) Alternative system or documents; costs.

(h) Staggered issuance procedures.

(i) Electronic benefit transfers.

(j) State option to issue benefits to certain

individuals made ineligible by welfare reform.

(k) Interoperability and portability of electronic

benefit transfer transactions.

2017. Value of allotment.

(a) Calculation.

(b) Benefits not deemed income or resources for

certain purposes.

(c) First month benefits prorated.

(d) Reduction of public assistance benefits.

(e) Allotments for households residing in centers.

(f) Alternative procedures for residents of certain

group facilities.

2018. Approval of retail food stores and wholesale food concerns.

(a) Applications; qualifications; certificate of

approval; periodic reauthorization.

(b) Effective and efficient operation of program;

effect of disqualification; posting of bond.

(c) Information submitted by applicants; safeguards;

disclosure to and use by State agencies.

(d) Hearing upon failure of applicant to receive

approval; waiting period for new application.

(e) Reporting of abuses by public.

(f) Limitation on participation of house-to-house

trade routes.

2019. Redemption of coupons.

2020. Administration.

(a) State responsibility; records, inspection, and

audit.

(b) Correction of improper denials and

underissuances.

(c) Discrimination prohibited.

(d) Plan of operation by State agency; approval by

Secretary; Indians.

(e) Requisites of State plan of operation.

(f) Nutrition education.

(g) State noncompliance; correction of failures.

(h) Deposit by State to cover fraudulently or

negligently issued coupons.

(i) Application and denial procedures.

(j) Notice of availability of benefits and

applications; revision of memorandum of

understanding.

(k) Use of post offices.

(l) Special financial audit review of high

participation States.

(m) Alaskan fee agents; use and services.

(n) Verification by State agencies.

(o) Data processing systems; model plan;

comprehensive automation and computerization;

State plans; evaluation and report to Congress;

corrective measures by State; time for

implementation.

(p) State verification option.

(q) Denial of food stamps for prisoners.

(r) Denial of food stamps for deceased individuals.

(s) Transitional benefits option.

(t) Grants for simple application and eligibility

determination systems and improved access to

benefits.

2021. Civil money penalties and disqualification of retail food

stores and wholesale food concerns.

(a) Disqualification or civil penalty.

(b) Period of disqualification.

(c) Review.

(d) Bonds.

(e) Transfer of ownership; penalty in lieu of

disqualification period; fines for acceptance

of loose coupons; judicial action to recover

penalty or fine.

(f) Fines for unauthorized third parties that accept

food stamps.

(g) Disqualification of retailers who are

disqualified under WIC program.

2022. Disposition of claims.

(a) General authority of the Secretary.

(b) Collection of overissuances.

(c) Food stamp intercept of unemployment benefits.

(d) Recovery of overissuance of coupons.

2023. Administrative and judicial review; restoration of rights.

2024. Violations and enforcement.

(a) Coupon redemption.

(b) Unauthorized use, transfer, acquisition,

alteration, or possession of coupons or

authorization cards; restitution by convicted

individuals.

(c) Presentation for payment or redemption of coupons

that have been illegally received, transferred,

or used.

(d) Coupons as obligations of the United States.

(e) Failure to provide monthly operations report;

violation of regulations; delivery and control

procedures.

(f) Liability for financial losses involved in

acceptance, storage, and issuance of coupons.

(g) Forfeiture of property involved in illegal food

stamp transactions.

(h) Criminal forfeiture.

2025. Administrative cost-sharing and quality control.

(a) Administrative costs.

(b) Work supplementation or support program.

(c) Quality control system.

(d) Bonuses for States that demonstrate high or most

improved performance.

(e) Use of social security account numbers; access to

information.

(f) Payment of certain legal fees.

(g) Cost sharing for computerization.

(h) Funding of employment and training programs.

(i) Geographical error-prone profiles.

(j) Training materials regarding certification of

farming households.

(k) Reductions in payments for administrative costs.

2026. Research, demonstration, and evaluations.

(a) Contracts or grants; issuance of aggregate

allotments.

(b) Pilot projects.

(c) Evaluation measures; pilot programs for

nutritional monitoring.

(d) Employment initiatives program.

(e) Study and report to Congressional committees of

effect of reduction of benefits.

(f) Demonstration projects for development and use of

intelligent computer benefit cards to pay food

stamp benefits.

(g) Study of effectiveness of food stamp employment

and training program.

(h) Demonstration projects for vehicle exclusion

limits.

(i) Testing resource accumulation.

(j) Demonstration projects directed at food coupon

trafficking.

2027. Appropriations and allotments.

(a) Authorization of allotments; monthly reports of

expenditures to Congressional committees;

restriction on use of funds; nutrition

education improvements.

(b) Limitation of value of allotments; reduction of

allotments.

(c) Manner of reducing allotments.

(d) Requisite action by Secretary to reduce

allotments; statement to Congressional

committees.

(e) Disposition of funds collected pursuant to

claims.

(f) Transfer of funds.

2028. Consolidated block grants for Puerto Rico and American Samoa.

(a) Payments to governmental entities.

(b) Plan for provision of assistance; approval;

noncompliance.

(c) Review; technical assistance.

(d) Penalty for violations.

2029. Workfare.

(a) Program plan; guidelines; compliance.

(b) Exempt household members.

(c) Valuation or duration of work.

(d) Nature, conditions, and costs of work.

(e) Job search period.

(f) Disqualification.

(g) Payment of administrative expenses.

2030. Washington Family Independence Demonstration Project.

(a) In general.

(b) Nature of Project.

(c) Funding.

(d) Project application.

(e) Waiver.

(f) Construction.

(g) Project audits.

(h) Evaluation.

2031. Food stamp portion of Minnesota Family Investment Plan.

(a) In general.

(b) Required terms and conditions of Project.

(c) Additional terms and conditions of Project.

(d) Funding.

(e) Waiver.

(f) Project audits.

(g) Construction.

(h) Quality control.

(i) Evaluation.

(j) Definitions.

2032. Automated data processing and information retrieval systems.

(a) Standards and procedures for reviews.

(b) Standards for approval of systems.

(c) Report.

2033. Repealed.

2034. Assistance for community food projects.

(a) ''Community food projects'' defined.

(b) Authority to provide assistance.

(c) Eligible entities.

(d) Preference for certain projects.

(e) Matching funds requirements.

(f) Term of grant.

(g) Technical assistance and related information.

(h) Innovative programs for addressing common

community problems.

2035. Simplified Food Stamp Program.

(a) ''Federal costs'' defined.

(b) Election.

(c) Operation of Program.

(d) Approval of Program.

(e) Increased Federal costs.

(f) Rules and procedures.

2036. Availability of commodities for emergency food assistance

program.

(a) Purchase of commodities.

(b) Basis for commodity purchases.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 2270, 3175a, 3175b of

this title; title 8 sections 1255a, 1612, 1613, 1631; title 21

section 862a; title 26 sections 32, 51, 6103, 6109; title 29

sections 49b, 2801; title 42 sections 405, 503, 603, 608, 608a,

1314a, 1320b-7, 1383, 1437f, 1758, 1766, 1786, 3012, 3056g, 3058e,

5179, 8622, 8624, 9858i; title 43 section 1626; title 48 section

1841.

-CITE-

7 USC Sec. 2011 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2011. Congressional declaration of policy

-STATUTE-

It is declared to be the policy of Congress, in order to promote

the general welfare, to safeguard the health and well-being of the

Nation's population by raising levels of nutrition among low-income

households. Congress finds that the limited food purchasing power

of low-income households contributes to hunger and malnutrition

among members of such households. Congress further finds that

increased utilization of food in establishing and maintaining

adequate national levels of nutrition will promote the distribution

in a beneficial manner of the Nation's agricultural abundance and

will strengthen the Nation's agricultural economy, as well as

result in more orderly marketing and distribution of foods. To

alleviate such hunger and malnutrition, a food stamp program is

herein authorized which will permit low-income households to obtain

a more nutritious diet through normal channels of trade by

increasing food purchasing power for all eligible households who

apply for participation.

-SOURCE-

(Pub. L. 88-525, Sec. 2, Aug. 31, 1964, 78 Stat. 703; Pub. L.

91-671, Sec. 1, Jan. 11, 1971, 84 Stat. 2048; Pub. L. 95-113, title

XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 958.)

-MISC1-

AMENDMENTS

1977 - Pub. L. 95-113 substituted ''a more nutritious diet'' for

''a nutritionally adequate diet'' as the object of the program.

1971 - Pub. L. 91-671 provided for cooperation in utilization of

Nation's abundance of food by other agencies, struck out ''to the

maximum extent practicable'' before ''to safeguard the health'',

enunciated finding that limited food purchasing power of low-income

households contributes to hunger and malnutrition, and substituted

''promote the distribution'' for ''will tend to cause the

distribution'' and authorization of a program (to alleviate hunger

and malnutrition) which will permit low-income households to

purchase a nutritionally adequate diet through normal channels of

trade for prior authorization of a program (to effectuate policy of

Congress and purposes of this chapter) which will permit such

households to receive a greater share of Nation's abundance of

food.

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.

SHORT TITLE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4001, May 13, 2002, 116 Stat.

305, provided that: ''This title (enacting section 3007 of this

title and section 1161 of Title 2, The Congress, amending sections

1431e, 2012, 2014 to 2017, 2019, 2020, 2022, 2023, 2025 to 2028,

2031, 2034, 2036, and 7508 of this title, sections 1612, 1613, and

1631 of Title 8, Aliens and Nationality, and sections 1755, 1758,

1760, 1769, and 1786 of Title 42, The Public Health and Welfare,

repealing section 2033 of this title, enacting provisions set out

as notes under sections 612c, 2014 to 2016, 2019, 2020, 2022, 2023,

2025, 2026, 2028, 2034, 2036, and 3171 of this title, section 1161

of Title 2, section 1612 of Title 8, and sections 1755, 1758, 1769,

and 1786 of Title 42, and amending provisions set out as a note

under section 612c of this title) may be cited as the 'Food Stamp

Reauthorization Act of 2002'.''

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-171, Sec. 1, Feb. 11, 2000, 114 Stat. 3, provided

that: ''This Act (amending section 2016 of this title and enacting

provisions set out as notes under section 2016 of this title) may

be cited as the 'Electronic Benefit Transfer Interoperability and

Portability Act of 2000'.''

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-225, Sec. 1, Mar. 25, 1994, 108 Stat. 106, provided

that: ''This Act (amending sections 2012, 2014 to 2016, 2018, and

2026 of this title, enacting provisions set out as notes under

section 2012 of this title, and repealing provisions set out as

notes under sections 2015 and 2016 of this title) may be cited as

the 'Food Stamp Program Improvements Act of 1994'.''

SHORT TITLE OF 1993 AMENDMENT

Pub. L. 103-66, title XIII, Sec. 13901(a), Aug. 10, 1993, 107

Stat. 672, provided that: ''This chapter (chapter 3 (Sec.

13901-13971) of title XIII of Pub. L. 103-66, amending sections

2012, 2014, 2015, 2017, 2020 to 2023, 2025, 2026, and 2028 of this

title, and enacting provisions set out as a note under section 2025

of this title) may be cited as the 'Mickey Leland Childhood Hunger

Relief Act'.''

SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-624, title XVII, Sec. 1701, Nov. 28, 1990, 104 Stat.

3783, provided that: ''This title (enacting section 2032 of this

title, amending sections 1431, 1431e, 2012, 2014 to 2018, 2020 to

2022, 2024 to 2028, 3175, and 3175e of this title, section 6109 of

Title 26, Internal Revenue Code, and sections 405 and 9904 of Title

42, The Public Health and Welfare, enacting provisions set out as

notes under this section and sections 612c, 2012, 2014, 2020, 2025,

and 2028 of this title and section 1751 of Title 42, and amending

provisions set out as notes under sections 612c and 2012 of this

title) may be cited as the 'Mickey Leland Memorial Domestic Hunger

Relief Act'.''

SHORT TITLE OF 1988 AMENDMENTS

Pub. L. 100-435, Sec. 1(a), Sept. 19, 1988, 102 Stat. 1645,

provided that: ''This Act (amending sections 2012, 2014 to 2017,

2020 to 2023, 2025, and 2026 of this title, section 713a-14 of

Title 15, Commerce and Trade, and sections 1761, 1766, 1773, and

1786 of Title 42, The Public Health and Welfare, enacting

provisions set out as notes under sections 612c and 2012 of this

title and sections 1766 and 1786 of Title 42, and amending

provisions set out as notes under sections 612c, 1731, and 2012 of

this title) may be cited as the 'Hunger Prevention Act of 1988'.''

Pub. L. 100-232, Sec. 1, Jan. 5, 1988, 101 Stat. 1566, provided

that: ''This Act (amending section 2014 of this title and enacting

provisions set out as a note under section 612c of this title) may

be cited as the 'Charitable Assistance and Food Bank Act of

1987'.''

SHORT TITLE OF 1986 AMENDMENT

Pub. L. 99-570, title XI, Sec. 11001, Oct. 27, 1986, 100 Stat.

3207-167, provided that: ''This title (amending sections 2012, 2018

and 2019 of this title, sections 1531 and 1603 of Title 29, Labor,

sections 3003 and 3020 (now 5103 and 5120) of Title 38, Veterans'

Benefits, and sections 1383 and 1396a of Title 42, The Public

Health and Welfare, and enacting provisions set out as notes under

section 2012 of this title, sections 5103 and 5120 of Title 38, and

sections 602, 1383 and 1396a of Title 42) may be cited as the

'Homeless Eligibility Clarification Act'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-253, title I, Sec. 140, Sept. 8, 1982, 96 Stat. 772,

provided that: ''This subtitle (subtitle E (Sec. 140-193) of title

I of Pub. L. 97-253, amending sections 2012, 2014, 2015, 2016,

2017, 2018, 2020, 2021, 2022, 2023, 2025, 2026, 2027, 2028, and

2029 of this title and enacting provisions set out as notes under

sections 1624, 2012, and 2028 of this title) may be cited as the

'Food Stamp Act Amendments of 1982'.''

SHORT TITLE OF 1981 AMENDMENT

Pub. L. 97-98, title XIII, Sec. 1301, Dec. 22, 1981, 95 Stat.

1282, provided that: ''This title (enacting sections 2029 and 2270

of this title, amending sections 2012, 2014 to 2016, 2018 to 2020,

and 2023 to 2027 of this title, enacting a provision set out as a

note under section 2012 of this title, and amending provisions set

out as notes under section 612c of this title) may be cited as the

'Food Stamp and Commodity Distribution Amendments of 1981'.''

SHORT TITLE OF 1980 AMENDMENT

Pub. L. 96-249, Sec. 1, May 26, 1980, 94 Stat. 357, provided:

''That this Act (amending sections 2012, 2014, 2015, 2019, 2020,

and 2024 to 2027 of this title, sections 6103 and 7213 of Title 26,

Internal Revenue Code, and sections 503 and 504 of Title 42, The

Public Health and Welfare, and enacting provisions set out as notes

under sections 2014 and 2026 of this title, section 6103 of Title

26, and section 503 of Title 42) may be cited as the 'Food Stamp

Act Amendments of 1980'.''

SHORT TITLE OF 1976 AMENDMENT

Pub. L. 94-339, Sec. 1, July 5, 1976, 90 Stat. 799, provided:

''That this Act (amending sections 2012, 2015, and 2016 of this

title) may be cited as the 'Emergency Food Stamp Vendor

Accountability Act of 1976'.''

SHORT TITLE

Section 1 of Pub. L. 88-525, as amended by Pub. L. 95-113, title

XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 958, provided that:

''This Act (this chapter) may be cited as the 'Food Stamp Act of

1977'.''

STUDY OF NATIONAL DATABASE FOR FEDERAL MEANS-TESTED PUBLIC

ASSISTANCE PROGRAMS

Pub. L. 105-379, Sec. 2, Nov. 12, 1998, 112 Stat. 3399, provided

that:

''(a) In General. - The Secretary of Agriculture shall conduct a

study of options for the design, development, implementation, and

operation of a national database to track participation in Federal

means-tested public assistance programs.

''(b) Administration. - In conducting the study, the Secretary

shall -

''(1) analyze available data to determine -

''(A) whether the data have addressed the needs of the food

stamp program established under the Food Stamp Act of 1977 (7

U.S.C. 2011 et seq.);

''(B) whether additional or unique data need to be developed

to address the needs of the food stamp program; and

''(C) the feasibility and cost-benefit ratio of each

available option for a national database;

''(2) survey the States to determine how the States are

enforcing the prohibition on recipients receiving assistance in

more than one State under Federal means-tested public assistance

programs;

''(3) determine the functional requirements of each available

option for a national database; and

''(4) ensure that all options provide safeguards to protect

against the unauthorized use or disclosure of information in the

national database.

''(c) Report. - Not later than 1 year after the date of enactment

of this Act (Nov. 12, 1998), the Secretary shall submit to Congress

a report on the results of the study conducted under this section.

''(d) Funding. - Out of any moneys in the Treasury not otherwise

appropriated, the Secretary of the Treasury shall provide to the

Secretary of Agriculture $500,000 to carry out this section. The

Secretary shall be entitled to receive the funds and shall accept

the funds, without further appropriation.''

WELFARE SIMPLIFICATION AND COORDINATION ADVISORY COMMITTEE

Pub. L. 101-624, title XVII, Sec. 1778, Nov. 28, 1990, 104 Stat.

3814, provided that:

''(a) Appointment and Membership. -

''(1) Establisment (sic). - There is established an Advisory

Committee on Welfare Simplification and Coordination (hereafter

in this section referred to as the 'Committee') consisting of not

fewer than 7, nor more than 11, members appointed by the

Secretary of Agriculture (hereafter in this section referred to

as the 'Secretary'), after consultation with the Secretary of

Health and Human Services and the Secretary of Housing and Urban

Development, and with the advice of State and local officials

responsible for administering the food stamp program, cash and

medical assistance programs for low-income families and

individuals under the Social Security Act (42 U.S.C. 301 et

seq.), and programs providing housing assistance to needy

families and individuals, and representatives of recipients and

recipient advocacy organizations associated with such programs.

''(2) Qualifications. - The members of the Committee shall be

individuals who are familiar with the rules, goals, and

limitations of Federal food stamp, cash, medical, and housing

assistance programs for low-income families and individuals, and

may include individuals who have demonstrated expertise in

evaluating the operations of and interaction among such programs

as they affect administrators and recipients, persons who have

experience in administering such programs at the Federal, State,

or local level, and representatives of administrators and

recipients affected by such programs.

''(b) Purpose. - It shall be the purpose of the Committee, in

consultation, where appropriate, with program administrators and

representatives of recipients -

''(1) to identify the significant policies implemented in the

food stamp program, cash and medical assistance programs under

the Social Security Act (42 U.S.C. 301 et seq.), and housing

assistance programs (whether resulting from law, regulations, or

administrative practice) that, because they differ substantially,

make it difficult for those eligible to apply for and obtain

benefits from more than one program and restrict the ability of

administrators of such programs to provide efficient, timely, and

appropriate benefits to those eligible for more than one type of

assistance, drawing, where appropriate, on previous efforts to

coordinate and simplify such programs and policies;

''(2) to examine the major reasons for such different programs

and policies;

''(3) to evaluate how and the extent to which such different

programs and policies hinder, to a significant degree, the

receipt of benefits from more than one program and substantially

restrict administrators' ability to provide efficient, timely,

and appropriate benefits;

''(4) to recommend common or simplified programs and policies

(including recommendations for changes in law, regulations, and

administrative practice and for policies that do not currently

exist in such programs) that would substantially reduce

difficulties in applying for and obtaining benefits from more

than one program and significantly increase the ability of

administrators of such programs to efficiently provide timely and

appropriate assistance to those eligible for more than one type

of assistance; and

''(5) to describe the major effects of such common or

simplified programs and policies (including how such common or

simplified programs and policies would enhance or conflict with

the purposes of such programs, how they would ease burdens on

administrators and recipients, how they would affect program

costs and participation, and the degree to which they would

change the relationships between the Federal Government and the

States in such programs) and the reasons for recommending such

programs and policies (including reasons, if any, that might be

sufficient to override special rules derived from the purposes of

individual programs).

''(c) Administrative Support. - The Secretary shall provide the

Committee with such technical and other assistance, including

secretarial and clerical assistance, as may be required to carry

out its functions.

''(d) Reimbursement. - Members of the Committee shall serve

without compensation but shall receive reimbursement for necessary

travel and subsistence expenses incurred by such members in the

performance of the duties of the Committee.

''(e) Reports. - Not later than July 1, 1993, the Committee shall

prepare and submit, to the appropriate committees of Congress, the

Secretary of Agriculture, the Secretary of Health and Human

Services, and the Secretary of Housing and Urban Development a

final report, including recommendations for common or simplified

programs and policies and the effects of and reasons for such

programs and policies and may submit interim reports, including

reports on common or simplified programs and policies covering less

than the complete range of programs and policies under review, to

the committees and such Secretaries as deemed appropriate by the

Committee.''

RULES

Pub. L. 99-198, title XV, Sec. 1583, Dec. 23, 1985, 99 Stat.

1595, provided that: ''Not later than April 1, 1987, the Secretary

shall issue rules to carry out the amendments made by this title

(amending sections 612c, 1431e, 2012 to 2023, and 2025 to 2029 of

this title, section 49b of Title 29, Labor, and section 503 of

Title 42, The Public Health and Welfare, and amending provisions

set out as notes under section 612c of this title).''

IMPLEMENTATION OF 1977 AMENDMENT; SAVINGS PROVISION; AVAILABILITY

OF APPROPRIATED FUNDS; REPORT

Section 1303 of Pub. L. 95-113, as amended by Pub. L. 97-375,

title I, Sec. 103(a), Dec. 21, 1982, 96 Stat. 1819, provided that:

''(a) The Secretary of Agriculture shall implement the Food Stamp

Act of 1977 (this chapter as amended by Pub. L. 95-113) as

expeditiously as possible consistent with the efficient and

effective administration of the food stamp program. The provisions

of the Food Stamp Act of 1964, as amended (this chapter prior to

amendment by Pub. L. 95-113), which are relevant to current

regulations of the Secretary governing the food stamp program,

shall remain in effect until such regulations are revoked,

superseded, amended, or modified by regulations issued pursuant to

the Food Stamp Act of 1977. Coupons issued pursuant to the Food

Stamp Act of 1964, as amended, and in general use as of the

effective date of the Food Stamp Act of 1977 (Oct. 1, 1977), shall

continue to be usable to purchase food, and all other liabilities

of the Secretary, States, and applicant or participating

households, under the Food Stamp Act of 1964, as amended, shall

continue in force until finally resolved or terminated by

administrative or judicial action, or otherwise.

''(b) Pending proceedings under the Food Stamp Act of 1964, as

amended, shall not be abated by reason of any provision of the Food

Stamp Act of 1977, but shall be disposed of pursuant to the

applicable provisions of the Food Stamp Act of 1964, as amended, in

effect prior to the effective date of the Food Stamp Act of 1977

(Oct. 1, 1977).

''(c) Appropriations made available to carry out the Food Stamp

Act of 1964, as amended, shall be available to carry out the

provisions of the Food Stamp Act of 1977.

''(d) (Repealed. Pub. L. 97-375, title I, Sec. 103(a), Dec. 1,

1982, 96 Stat. 1819.)''

-CITE-

7 USC Sec. 2012 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2012. Definitions

-STATUTE-

As used in this chapter, the term:

(a) ''Allotment'' means the total value of coupons a household is

authorized to receive during each month.

(b) ''Authorization card'' means the document issued by the State

agency to an eligible household which shows the allotment the

household is entitled to be issued.

(c) ''Certification period'' means the period for which

households shall be eligible to receive authorization cards. The

certification period shall not exceed 12 months, except that the

certification period may be up to 24 months if all adult household

members are elderly or disabled. A State agency shall have at

least 1 contact with each certified household every 12 months. The

limits specified in this subsection may be extended until the end

of any transitional benefit period established under section

2020(s) of this title.

(d) ''Coupon'' means any coupon, stamp, type of certificate,

authorization card, cash or check issued in lieu of a coupon, or

access device, including an electronic benefit transfer card or

personal identification number, issued pursuant to the provisions

of this chapter.

(e) ''Coupon issuer'' means any office of the State agency or any

person, partnership, corporation, organization, political

subdivision, or other entity with which a State agency has

contracted for, or to which it has delegated functional

responsibility in connection with, the issuance of coupons to

households.

(f) ''Drug addiction or alcoholic treatment and rehabilitation

program'' means any such program conducted by a private nonprofit

organization or institution, or a publicly operated community

mental health center, under part B of title XIX of the Public

Health Service Act (42 U.S.C. 300x et seq.) to provide treatment

that can lead to the rehabilitation of drug addicts or alcoholics.

(g) ''Food'' means (1) any food or food product for home

consumption except alcoholic beverages, tobacco, and hot foods or

hot food products ready for immediate consumption other than those

authorized pursuant to clauses (3), (4), (5), (7), (8), and (9) of

this subsection, (2) seeds and plants for use in gardens to produce

food for the personal consumption of the eligible household, (3) in

the case of those persons who are sixty years of age or over or who

receive supplemental security income benefits or disability or

blindness payments under title I, II, X, XIV, or XVI of the Social

Security Act (42 U.S.C. 301 et seq., 401 et seq., 1201 et seq.,

1351 et seq., 1381 et seq.), and their spouses, meals prepared by

and served in senior citizens' centers, apartment buildings

occupied primarily by such persons, public or private nonprofit

establishments (eating or otherwise) that feed such persons,

private establishments that contract with the appropriate agency of

the State to offer meals for such persons at concessional prices,

and meals prepared for and served to residents of federally

subsidized housing for the elderly, (4) in the case of persons

sixty years of age or over and persons who are physically or

mentally handicapped or otherwise so disabled that they are unable

adequately to prepare all of their meals, meals prepared for and

delivered to them (and their spouses) at their home by a public or

private nonprofit organization or by a private establishment that

contracts with the appropriate State agency to perform such

services at concessional prices, (5) in the case of narcotics

addicts or alcoholics, and their children, served by drug addiction

or alcoholic treatment and rehabilitation programs, meals prepared

and served under such programs, (6) in the case of certain eligible

households living in Alaska, equipment for procuring food by

hunting and fishing, such as nets, hooks, rods, harpoons, and

knives (but not equipment for purposes of transportation, clothing,

or shelter, and not firearms, ammunition, and explosives) if the

Secretary determines that such households are located in an area of

the State where it is extremely difficult to reach stores selling

food and that such households depend to a substantial extent upon

hunting and fishing for subsistence, (7) in the case of disabled or

blind recipients of benefits under title I, II, X, XIV, or XVI of

the Social Security Act (42 U.S.C. 301 et seq., 401 et seq., 1201

et seq., 1351 et seq., 1381 et seq.), or are (FOOTNOTE 1)

individuals described in paragraphs (2) through (7) of subsection

(r) of this section, who are residents in a public or private

nonprofit group living arrangement that serves no more than sixteen

residents and is certified by the appropriate State agency or

agencies under regulations issued under section 1616(e) of the

Social Security Act (42 U.S.C. 1382e(e)) or under standards

determined by the Secretary to be comparable to standards

implemented by appropriate State agencies under such section, meals

prepared and served under such arrangement, (8) in the case of

women and children temporarily residing in public or private

nonprofit shelters for battered women and children, meals prepared

and served, by such shelters, and (9) in the case of households

that do not reside in permanent dwellings and households that have

no fixed mailing addresses, meals prepared for and served by a

public or private nonprofit establishment (approved by an

appropriate State or local agency) that feeds such individuals and

by private establishments that contract with the appropriate agency

of the State to offer meals for such individuals at concessional

prices.

(FOOTNOTE 1) So in original. The word ''are'' probably should

not appear.

(h) ''Food stamp program'' means the program operated pursuant to

the provisions of this chapter.

(i)(1) ''Household'' means -

(A) an individual who lives alone or who, while living with

others, customarily purchases food and prepares meals for home

consumption separate and apart from the others; or

''(B) a group of individuals who live together and customarily

purchase food and prepare meals together for home consumption.

(2) Spouses who live together, parents and their children 21

years of age or younger who live together, and children (excluding

foster children) under 18 years of age who live with and are under

the parental control of a person other than their parent together

with the person exercising parental control shall be treated as a

group of individuals who customarily purchase and prepare meals

together for home consumption even if they do not do so.

(3) Notwithstanding paragraphs (1) and (2), an individual who

lives with others, who is sixty years of age or older, and who is

unable to purchase food and prepare meals because such individual

suffers, as certified by a licensed physician, from a disability

which would be considered a permanent disability under section

221(i) of the Social Security Act (42 U.S.C. 421(i)) or from a

severe, permanent, and disabling physical or mental infirmity which

is not symptomatic of a disease shall be considered, together with

any of the others who is the spouse of such individual, an

individual household, without regard to the purchase of food and

preparation of meals, if the income (as determined under section

2014(d) of this title) of the others, excluding the spouse, does

not exceed the poverty line, as described in section 2014(c)(1) of

this title, by more than 65 per centum.

(4) In no event shall any individual or group of individuals

constitute a household if they reside in an institution or boarding

house, or else live with others and pay compensation to the others

for meals.

(5) For the purposes of this subsection, the following persons

shall not be considered to be residents of institutions and shall

be considered to be individual households:

(A) Residents of federally subsidized housing for the elderly,

disabled or blind recipients of benefits under title I, II, X,

XIV, or XVI of the Social Security Act (42 U.S.C. 301 et seq.,

401 et seq., 1201 et seq., 1351 et seq., 1381 et seq.).

(B) Individuals described in paragraphs (2) through (7) of

subsection (r) of this section, who are residents in a public or

private nonprofit group living arrangement that serves no more

than sixteen residents and is certified by the appropriate State

agency or agencies under regulations issued under section 1616(e)

of the Social Security Act (42 U.S.C. 1382e(e)) or under

standards determined by the Secretary to be comparable to

standards implemented by appropriate State agencies under that

section.

(C) Temporary residents of public or private nonprofit shelters

for battered women and children.

(D) Residents of public or private nonprofit shelters for

individuals who do not reside in permanent dwellings or have no

fixed mailing addresses, who are otherwise eligible for coupons.

(E) Narcotics addicts or alcoholics, together with their

children, who live under the supervision of a private nonprofit

institution, or a publicly operated community mental health

center, for the purpose of regular participation in a drug or

alcoholic treatment program.

(j) ''Reservation'' means the geographically defined area or

areas over which a tribal organization (as that term is defined in

subsection (p) of this section) exercises governmental

jurisdiction.

(k) ''Retail food store'' means -

(1) an establishment or house-to-house trade route that sells

food for home preparation and consumption and -

(A) offers for sale, on a continuous basis, a variety of

foods in each of the 4 categories of staple foods specified in

subsection (u)(1) of this section, including perishable foods

in at least 2 of the categories; or

(B) has over 50 percent of the total sales of the

establishment or route in staple foods,

as determined by visual inspection, sales records, purchase

records, counting of stockkeeping units, or other inventory or

accounting recordkeeping methods that are customary or reasonable

in the retail food industry;

(2) an establishment, organization, program, or group living

arrangement referred to in subsections (g)(3), (4), (5), (7),

(8), and (9) of this section;

(3) a store purveying the hunting and fishing equipment

described in subsection (g)(6) of this section; and

(4) any private nonprofit cooperative food purchasing venture,

including those in which the members pay for food purchased prior

to the receipt of such food.

(l) ''Secretary'' means the Secretary of Agriculture.

(m) ''State'' means the fifty States, the District of Columbia,

Guam, the Virgin Islands of the United States, and the reservations

of an Indian tribe whose tribal organization meets the requirements

of this chapter for participation as a State agency.

(n) ''State agency'' means (1) the agency of State government,

including the local offices thereof, which has the responsibility

for the administration of the federally aided public assistance

programs within such State, and in those States where such

assistance programs are operated on a decentralized basis, the term

shall include the counterpart local agencies administering such

programs, and (2) the tribal organization of an Indian tribe

determined by the Secretary to be capable of effectively

administering a food distribution program under section 2013(b) of

this title or a food stamp program under section 2020(d) of this

title.

(o) ''Thrifty food plan'' means the diet required to feed a

family of four persons consisting of a man and a woman twenty

through fifty, a child six through eight, and a child nine through

eleven years of age, determined in accordance with the Secretary's

calculations. The cost of such diet shall be the basis for uniform

allotments for all households regardless of their actual

composition, except that the Secretary shall -

(1) make household-size adjustments (based on the unrounded

cost of such diet) taking into account economies of scale;

(2) make cost adjustments in the thrifty food plan for Hawaii

and the urban and rural parts of Alaska to reflect the cost of

food in Hawaii and urban and rural Alaska;

(3) make cost adjustments in the separate thrifty food plans

for Guam, and the Virgin Islands of the United States to reflect

the cost of food in those States, but not to exceed the cost of

food in the fifty States and the District of Columbia; and

(4) on October 1, 1996, and each October 1 thereafter, adjust

the cost of the diet to reflect the cost of the diet in the

preceding June, and round the result to the nearest lower dollar

increment for each household size, except that on October 1,

1996, the Secretary may not reduce the cost of the diet in effect

on September 30, 1996.

(p) ''Tribal organization'' means the recognized governing body

of an Indian tribe (including the tribally recognized intertribal

organization of such tribes), as the term ''Indian tribe'' is

defined in the Indian Self-Determination Act (25 U.S.C. 450b(b)),

as well as any Indian tribe, band, or community holding a treaty

with a State government.

(q) ''Allowable medical expenses'' means expenditures for (1)

medical and dental care, (2) hospitalization or nursing care

(including hospitalization or nursing care of an individual who was

a household member immediately prior to entering a hospital or

nursing home), (3) prescription drugs when prescribed by a licensed

practitioner authorized under State law and over-the-counter

medication (including insulin) when approved by a licensed

practitioner or other qualified health professional, (4) health and

hospitalization insurance policies (excluding the costs of health

and accident or income maintenance policies), (5) medicare premiums

related to coverage under title XVIII of the Social Security Act

(42 U.S.C. 1395 et seq.), (6) dentures, hearing aids, and

prosthetics (including the costs of securing and maintaining a

seeing eye dog), (7) eye glasses prescribed by a physician skilled

in eye disease or by an optometrist, (8) reasonable costs of

transportation necessary to secure medical treatment or services,

and (9) maintaining an attendant, homemaker, home health aide,

housekeeper, or child care services due to age, infirmity, or

illness.

(r) ''Elderly or disabled member'' means a member of a household

who -

(1) is sixty years of age or older;

(2)(A) receives supplemental security income benefits under

title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), or

Federally or State administered supplemental benefits of the type

described in section 212(a) of Public Law 93-66 (42 U.S.C. 1382

note), or

(B) receives Federally or State administered supplemental

assistance of the type described in section 1616(a) of the Social

Security Act (42 U.S.C. 1382e(a)), interim assistance pending

receipt of supplemental security income, disability-related

medical assistance under title XIX of the Social Security Act (42

U.S.C. 1396 et seq.), or disability-based State general

assistance benefits, if the Secretary determines that such

benefits are conditioned on meeting disability or blindness

criteria at least as stringent as those used under title XVI of

the Social Security Act;

(3) receives disability or blindness payments under title I,

II, X, XIV, or XVI of the Social Security Act (42 U.S.C. 301 et

seq., 401 et seq., 1201 et seq., 1351 et seq., 1381 et seq.) or

receives disability retirement benefits from a governmental

agency because of a disability considered permanent under section

221(i) of the Social Security Act (42 U.S.C. 421(i));

(4) is a veteran who -

(A) has a service-connected or non-service-connected

disability which is rated as total under title 38; or

(B) is considered in need of regular aid and attendance or

permanently housebound under such title;

(5) is a surviving spouse of a veteran and -

(A) is considered in need of regular aid and attendance or

permanently housebound under title 38; or

(B) is entitled to compensation for a service-connected death

or pension benefits for a non-service-connected death under

title 38, and has a disability considered permanent under

section 221(i) of the Social Security Act (42 U.S.C. 421(i));

(6) is a child of a veteran and -

(A) is considered permanently incapable of self-support under

section 1314 of title 38; or

(B) is entitled to compensation for a service-connected death

or pension benefits for a non-service-connected death under

title 38, and has a disability considered permanent under

section 221(i) of the Social Security Act (42 U.S.C. 421(i));

or

(7) is an individual receiving an annuity under section

2(a)(1)(iv) or 2(a)(1)(v) of the Railroad Retirement Act of 1974

(45 U.S.C. 231a(a)(1)(iv) or 231a(a)(1)(v)), if the individual's

service as an employee under the Railroad Retirement Act of 1974

(45 U.S.C. 231 et seq.), after December 31, 1936, had been

included in the term ''employment'' as defined in the Social

Security Act (42 U.S.C. 301 et seq.), and if an application for

disability benefits had been filed.

(s) ''Homeless individual'' means -

(1) an individual who lacks a fixed and regular nighttime

residence; or

(2) an individual who has a primary nighttime residence that is

-

(A) a supervised publicly or privately operated shelter

(including a welfare hotel or congregate shelter) designed to

provide temporary living accommodations;

(B) an institution that provides a temporary residence for

individuals intended to be institutionalized;

(C) a temporary accommodation for not more than 90 days in

the residence of another individual; or

(D) a public or private place not designed for, or ordinarily

used as, a regular sleeping accommodation for human beings.

(t) ''Access device'' means any card, plate, code, account

number, or other means of access that can be used, alone or in

conjunction with another access device, to obtain payments,

allotments, benefits, money, goods, or other things of value, or

that can be used to initiate a transfer of funds under this

chapter.

(u)(1) Except as provided in paragraph (2), ''staple foods''

means foods (as defined in subsection (g) of this section) in the

following categories:

(A) Meat, poultry, or fish.

(B) Bread or cereals.

(C) Vegetables or fruits.

(D) Dairy products.

(2) ''Staple foods'' do not include accessory food items, such as

coffee, tea, cocoa, carbonated and uncarbonated drinks, candy,

condiments, and spices.

-SOURCE-

(Pub. L. 88-525, Sec. 3, Aug. 31, 1964, 78 Stat. 703; Pub. L.

91-671, Sec. 2, Jan. 11, 1971, 84 Stat. 2048; Pub. L. 92-603, title

IV, Sec. 411(a), (b), Oct. 30, 1972, 86 Stat. 1491; Pub. L. 93-86,

Sec. 3(a)-(c), (l), (o), (p), Aug. 10, 1973, 87 Stat. 246, 248,

249; Pub. L. 93-125, Sec. 1(h), Oct. 18, 1973, 87 Stat. 450; Pub.

L. 94-339, Sec. 4, July 5, 1976, 90 Stat. 801; Pub. L. 95-113,

title XIII, Sec. 1301, 1302(a)(1), Sept. 29, 1977, 91 Stat. 958,

979; Pub. L. 96-58, Sec. 3, 7, Aug. 14, 1979, 93 Stat. 390, 392;

Pub. L. 96-181, Sec. 15(b), Jan. 2, 1980, 93 Stat. 1316; Pub. L.

96-249, title I, Sec. 101(a), 111, 135, May 26, 1980, 94 Stat. 357,

360, 369; Pub. L. 97-35, title I, Sec. 101-103, 108(a), 116(a)(1),

Aug. 13, 1981, 95 Stat. 358, 361, 364; Pub. L. 97-98, title XII,

Sec. 1302-1304, Dec. 22, 1981, 95 Stat. 1282; Pub. L. 97-253, title

I, Sec. 142, 143(a), 144, 145(a), (b), Sept. 8, 1982, 96 Stat.

772-774; Pub. L. 98-204, Sec. 3, Dec. 2, 1983, 97 Stat. 1385; Pub.

L. 99-198, title XV, Sec. 1501(a), 1502-1504, Dec. 23, 1985, 99

Stat. 1566; Pub. L. 99-570, title XI, Sec. 11002(a)-(c), Oct. 27,

1986, 100 Stat. 3207-167, 3207-168; Pub. L. 100-77, title VIII,

Sec. 801, 802(a), July 22, 1987, 101 Stat. 533, 534; Pub. L.

100-435, title I, Sec. 120, title III, Sec. 350, Sept. 19, 1988,

102 Stat. 1655, 1664; Pub. L. 101-624, title XVII, Sec. 1712,

1713(a), 1747(b), Nov. 28, 1990, 104 Stat. 3783, 3796; Pub. L.

102-83, Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-237,

title IX, Sec. 901, 941(1), Dec. 13, 1991, 105 Stat. 1884, 1891;

Pub. L. 102-351, Sec. 1, Aug. 26, 1992, 106 Stat. 937; Pub. L.

103-66, title XIII, Sec. 13931, 13932, Aug. 10, 1993, 107 Stat.

676; Pub. L. 103-225, title I, Sec. 101(b)(1), title II, Sec. 201,

Mar. 25, 1994, 108 Stat. 107, 108; Pub. L. 103-354, title III, Sec.

303(a), Oct. 13, 1994, 108 Stat. 3239; Pub. L. 104-193, title VIII,

Sec. 801-805, Aug. 22, 1996, 110 Stat. 2308, 2309; Pub. L. 107-171,

title IV, Sec. 4112(b)(1), 4115(b)(1), May 13, 2002, 116 Stat. 312,

315.)

-REFTEXT-

REFERENCES IN TEXT

The Public Health Service Act, referred to in subsec. (f), is act

July 1, 1944, ch. 373, 58 Stat. 682, as amended. Part B of title

XIX of the Act is classified generally to part B (Sec. 300x et

seq.) of subchapter XVII of chapter 6A of Title 42, The Public

Health and Welfare. For complete classification of this Act to the

Code, see Short Title note set out under section 201 of Title 42

and Tables.

The Social Security Act, referred to in subsecs. (g), (i)(5)(A),

(q), and (r), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as

amended, which is classified generally to chapter 7 (Sec. 301 et

seq.) of Title 42. Titles I, II, X, XIV, XVI, XVIII, and XIX of the

Social Security Act are classified generally to subchapters I (Sec.

301 et seq.), II (Sec. 401 et seq.), X (Sec. 1201 et seq.), XIV

(Sec. 1351 et seq.), XVI (Sec. 1381 et seq.), XVIII (Sec. 1395 et

seq.), and XIX (Sec. 1396 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.

The Indian Self-Determination Act (25 U.S.C. 450b(b)), referred

to in subsec. (p), probably means the Indian Self-Determination and

Education Assistance Act, Pub. L. 93-638, Jan. 4, 1975, 88 Stat.

2203, as amended, which is classified principally to subchapter II

(Sec. 450 et seq.) of chapter 14 of Title 25, Indians. Section 450b

of Title 25 was amended generally by Pub. L. 100-472, title I, Sec.

103, Oct. 5, 1988, 102 Stat. 2286, and, as so amended, subsec. (b)

of such section no longer defines the term ''Indian tribe''.

However, such term is defined elsewhere in that section. For

complete classification of this Act to the Code, see Short Title

note set out under section 450 of Title 25 and Tables.

The Railroad Retirement Act of 1974, referred to in subsec.

(r)(7), is act Aug. 29, 1935, ch. 812, as amended generally by Pub.

L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, which

is classified generally to subchapter IV (Sec. 231 et seq.) of

chapter 9 of Title 45, Railroads. For further details and complete

classification of this Act to the Code, see Codification note set

out preceding section 231 of Title 45, section 231t of Title 45,

and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-171, Sec. 4115(b)(1), inserted at

end ''The limits specified in this subsection may be extended until

the end of any transitional benefit period established under

section 2020(s) of this title.''

Subsec. (i)(1). Pub. L. 107-171, Sec. 4112(b)(1)(A), (B),

designated first sentence as par. (1) and redesignated former pars.

(1) and (2) as subpars. (A) and (B) of par. (1), respectively.

Subsec. (i)(2). Pub. L. 107-171, Sec. 4112(b)(1)(C), designated

second sentence as par. (2). Former par. (2) redesignated subpar.

(B) of par. (1).

Subsec. (i)(3). Pub. L. 107-171, Sec. 4112(b)(1)(D), (E),

designated third sentence as par. (3) and substituted

''Notwithstanding paragraphs (1) and (2)'' for ''Notwithstanding

the preceding sentences''.

Subsec. (i)(4). Pub. L. 107-171, Sec. 4112(b)(1)(F), designated

fourth sentence as par. (4).

Subsec. (i)(5). Pub. L. 107-171, Sec. 4112(b)(1)(G), (H),

designated fifth sentence as par. (5), substituted ''For the

purposes of this subsection, the following persons shall not be

considered to be residents of institutions and shall be considered

to be individual households:'' for ''For the purposes of this

subsection,'', restructured the remainder of that sentence into

five sentences and designated them as subpars. (A) to (E)

respectively, and struck out ''shall not be considered residents of

institutions and shall be considered individual households'' at

end.

1996 - Subsec. (c). Pub. L. 104-193, Sec. 801, substituted second

and third sentences containing provisions relating to limits on

certification period and requirement of yearly contact with

household for provisions setting limits to certification period for

households required to submit periodic reports, households whose

members all receive federal assistance grant, households of

unemployable, elderly or primarily self-employed individuals, and

all other households, and allowing waivers.

Subsec. (d). Pub. L. 104-193, Sec. 802, substituted ''type of

certificate, authorization card, cash or check issued in lieu of a

coupon, or access device, including an electronic benefit transfer

card or personal identification number,'' for ''or type of

certificate''.

Subsec. (i). Pub. L. 104-193, Sec. 803, in second sentence,

struck out ''(who are not themselves parents living with their

children or married and living with their spouses)'' after ''age or

younger''.

Subsec. (o). Pub. L. 104-193, Sec. 804, in second sentence,

substituted ''the Secretary shall - '' for ''the Secretary shall'',

realigned margins of pars. (1) to (3), substituted semicolon for

comma at end of pars. (1) and (2) and ''; and'' for comma at end of

par. (3), added par. (4), and struck out former pars. (4) to (11)

which authorized adjustment of cost of thrifty food plan diet to

reflect changes in cost of food constituting diet for period from

Jan. 1, 1980, to Oct. 1, 1990, and each Oct. 1 thereafter, and

prohibited Secretary from reducing cost of such diet on Oct. 1,

1992, and, in case of households residing in Alaska, on Oct. 1,

1994.

Subsec. (s)(2)(C). Pub. L. 104-193, Sec. 805, inserted ''for not

more than 90 days'' after ''temporary accommodation''.

1994 - Subsec. (c). Pub. L. 103-225, Sec. 101(b)(1), substituted

''Except as provided in section 2015(c)(1)(C) of this title, for''

for ''For''.

Subsec. (k). Pub. L. 103-225, Sec. 201(1), realigned margins of

pars. (1) to (4), substituted semicolon for comma at end of pars.

(2) and (3), and substituted ''means - '' for ''means'' and par.

(1) for former par. (1) which read as follows: ''an establishment

or recognized department thereof or house-to-house trade route,

over 50 per centum of whose food sales volume, as determined by

visual inspection, sales records, purchase records, or other

inventory or accounting recordkeeping methods that are customary or

reasonable in the retail food industry, consists of staple food

items for home preparation and consumption, such as meat, poultry,

fish, bread, cereals, vegetables, fruits, dairy products, and the

like, but not including accessory food items, such as coffee, tea,

cocoa, carbonated and uncarbonated drinks, candy, condiments, and

spices,''.

Subsec. (o)(11). Pub. L. 103-354 inserted ''and (in the case of

households residing in Alaska) on October 1, 1994,'' after

''1992,''.

Subsec. (u). Pub. L. 103-225, Sec. 201(2), added subsec. (u).

1993 - Subsec. (g)(5). Pub. L. 103-66, Sec. 13932(2), inserted

'', and their children,'' after ''or alcoholics''.

Subsec. (i). Pub. L. 103-66, Sec. 13932(1), in last sentence

inserted '', together with their children,'' after ''narcotics

addicts or alcoholics''.

Pub. L. 103-66, Sec. 13931, in first sentence, substituted ''or

(2) a group of individuals'' for ''(2) a group of individuals'' and

substituted a period for '', '' after end of cl. (2), inserted

''Spouses who live together, parents and their children 21 years of

age or younger (who are not themselves parents living with their

children or married and living with their spouses) who live

together, and children (excluding foster children) under 18 years

of age who live with and are under the parental control of a person

other than their parent together with the person exercising

parental control'' before ''shall be treated as a group of

individuals'' to create new second sentence and struck out '',

unless one of the parents, or siblings, is an elderly or disabled

member'' after ''if they do not do so'', and in next sentence

substituted ''Notwithstanding the preceding sentences'' for

''Notwithstanding clause (1) of the preceding sentence''.

1992 - Subsec. (o)(11). Pub. L. 102-351 inserted before period at

end '', except that on October 1, 1992, the Secretary may not

reduce the cost of such diet''.

1991 - Subsecs. (g)(7), (i). Pub. L. 102-237, Sec. 901, inserted

'', or are individuals described in paragraphs (2) through (7) of

subsection (r) of this section,'' after ''title I, II, X, XIV, or

XVI of the Social Security Act''.

Subsec. (j). Pub. L. 102-237, Sec. 941(1)(A), made technical

amendment to reference to subsection (p) of this section involving

corresponding provision of original act.

Subsec. (o)(6). Pub. L. 102-237, Sec. 941(1)(B), substituted

''percent'' for ''per centun'' (sic).

Subsec. (r)(6)(A). Pub. L. 102-83 substituted ''section 1314 of

title 38'' for ''section 414 of title 38''.

Subsecs. (t), (u). Pub. L. 102-237, Sec. 941(1)(C), redesignated

subsec. (u) as (t).

1990 - Subsec. (g)(3). Pub. L. 101-624, Sec. 1712(a)(1),

substituted ''or disability or blindness payments under title I,

II, X, XIV, or XVI'' for ''under title XVI''.

Subsec. (g)(7). Pub. L. 101-624, Sec. 1712(a)(2), substituted

''title I, II, X, XIV, or XVI'' for ''title II or title XVI'', and

inserted ''or under standards determined by the Secretary to be

comparable to standards implemented by appropriate State agencies

under such section''.

Subsec. (g)(9). Pub. L. 101-624, Sec. 1713(a), substituted

''individuals and by private establishments that contract with the

appropriate agency of the State to offer meals for such individuals

at concessional prices'' for ''individuals and by a public or

private nonprofit shelter (approved by an appropriate State or

local agency) in which such households temporarily reside (except

that such establishments and shelters may only request voluntary

use of food stamps by such individuals and may not request such

households to pay more than the average cost of the food contained

in a meal served by the establishment or shelter).''

Subsec. (i). Pub. L. 101-624, Sec. 1712(b), substituted ''title

I, II, X, XIV, or XVI'' for ''title II or title XVI'', and inserted

''or under standards determined by the Secretary to be comparable

to standards implemented by appropriate State agencies under such

section''.

Subsec. (u). Pub. L. 101-624, Sec. 1747(b), added subsec. (u).

1988 - Subsec. (o). Pub. L. 100-435, Sec. 120, inserted ''through

October 1, 1987'' in cl. (8) and substituted cls. (9) to (11) for

proviso that periods upon which adjustments are based would be

subject to revision by Act of Congress.

Subsec. (r)(2). Pub. L. 100-435, Sec. 350, amended par. (2)

generally. Prior to amendment, par. (2) read as follows:

''receives supplemental security income benefits under title XVI of

the Social Security Act (42 U.S.C. 1381 et seq.), federally or

State administered supplemental benefits of the type described in

section 1616(a) of the Social Security Act if the Secretary

determines that such benefits are conditioned on meeting the

disability or blindness criteria used under title XVI of the Social

Security Act, or federally or State administered supplemental

benefits of the type described in section 212(a) of Public Law

93-66 (42 U.S.C. 1382 note);''.

1987 - Subsec. (i). Pub. L. 100-77, Sec. 802(a), substituted

''(2)'' for ''or (2)'', inserted cl. (3), and inserted ''(other

than as provided in clause (3))'' after ''except that''.

Subsec. (s). Pub. L. 100-77, Sec. 801, added subsec. (s).

1986 - Subsec. (g). Pub. L. 99-570, Sec. 11002(a), substituted

''(8), and (9)'' for ''and (8)'' in cl. (1) and added cl. (9).

Subsec. (i). Pub. L. 99-570, Sec. 11002(b), inserted ''residents

of public or private nonprofit shelters for individuals who do not

reside in permanent dwellings or have no fixed mailing addresses,

who are otherwise eligible for coupons,''.

Subsec. (k). Pub. L. 99-570, Sec. 11002(c), substituted ''(8),

and (9)'' for ''and (8)''.

1985 - Subsec. (f). Pub. L. 99-198, Sec. 1501(a)(1), substituted

'', or a publicly operated community mental health center, under

part B of title XIX of the Public Health Service Act (42 U.S.C.

300x et seq.) to provide'' for ''which is certified by the State

agency or agencies designated by the Governor as responsible for

the administration of the State's programs for alcoholics and drug

addicts pursuant to Public Law 91-616 (Comprehensive Alcohol Abuse

and Alcoholism Prevention, Treatment, and Rehabilitation Act of

1970) and Public Law 92-255 (Drug Abuse Prevention, Treatment, and

Rehabilitation Act) as providing''.

Subsec. (i). Pub. L. 99-198, Sec. 1501(a)(2), inserted '', or a

publicly operated community mental health center,'' after ''private

nonprofit institution'' in last sentence.

Subsec. (k). Pub. L. 99-198, Sec. 1502, inserted '', as

determined by visual inspection, sales records, purchase records,

or other inventory or accounting recordkeeping methods that are

customary or reasonable in the retail food industry,'' in cl. (1).

Subsec. (o). Pub. L. 99-198, Sec. 1503, substituted ''fifty'' for

''fifty-four''.

Subsec. (r)(2). Pub. L. 99-198, Sec. 1504(1), inserted '',

federally or State administered supplemental benefits of the type

described in section 1616(a) of the Social Security Act (42 U.S.C.

1382e(a)) if the Secretary determines that such benefits are

conditioned on meeting the disability or blindness criteria used

under title XVI of the Social Security Act, or federally or State

administered supplemental benefits of the type described in section

212(a) of Public Law 93-66 (42 U.S.C. 1382 note)''.

Subsec. (r)(3). Pub. L. 99-198, Sec. 1504(2), inserted ''or

receives disability retirement benefits from a governmental agency

because of a disability considered permanent under section 221(i)

of the Social Security Act (42 U.S.C. 421(i))''.

Subsec. (r)(4)(A). Pub. L. 99-198, Sec. 1504(3), inserted ''or

non-service-connected'' after ''service-connected''.

Subsec. (r)(7). Pub. L. 99-198, Sec. 1504(4)-(6), added par. (7).

1983 - Subsec. (c). Pub. L. 98-204, Sec. 3(1), substituted ''the

foregoing limits on the certification period may, with the approval

of the Secretary, be waived by a State agency for certain

categories of households where such waiver will improve the

administration of the program'' for ''the limit of twelve months

may be waived by the Secretary to improve the administration of the

program'' in provisions preceding par. (1).

Subsec. (c)(2). Pub. L. 98-204, Sec. 3(2), inserted provision

that ''The maximum limit of twelve months for such period under the

foregoing proviso may be waived by the Secretary where such waiver

will improve the administration of the program.''

1982 - Subsec. (i). Pub. L. 97-253, Sec. 142, 145(b), substituted

''except that parents and children, or siblings, who live together

shall be treated as a group of individuals who customarily purchase

and prepare meals together for home consumption even if they do not

do so, unless one of the parents, or siblings, is an elderly or

disabled member'' for ''except that parents and children who live

together shall be treated as a group of individuals who customarily

purchase and prepare meals together for home consumption even if

they do not do so, unless one of the parents is sixty years of age

or older, or receives supplemental security income benefits under

title XVI of the Social Security Act or disability or blindness

payments under title I, II, X, XIV, or XVI of the Social Security

Act'', and inserted provision that notwithstanding cl. (1) of the

preceding sentence, an individual who lives with others, who is

sixty years of age or older, and who is unable to purchase food and

prepare meals because such individual suffers, as certified by a

licensed physician, from a disability which would be considered a

permanent disability under section 221(i) of the Social Security

Act (42 U.S.C. 421(i)) or from a severe, permanent, and disabling

physical or mental infirmity which is not symptomatic of a disease

shall be considered, together with any of the others who is the

spouse of such individual, an individual household, without regard

to the purchase of food and preparation of meals, if the income (as

determined under section 2014(d) of this title) of the others,

excluding the spouse, does not exceed the poverty line, as

described in section 2014(c)(1) of this title, by more than 65 per

centum.

Subsec. (o)(1). Pub. L. 97-253, Sec. 143(a)(1), substituted

''adjustments (based on the unrounded cost of such diet)'' for

''adjustments''.

Subsec. (o)(6). Pub. L. 97-253, Sec. 143(a)(2), 144, substituted

provisions requiring the Secretary, on Oct. 1, 1982, to adjust the

cost of the diet to reflect changes in the cost of the thrifty food

plan for the twenty-one months ending June 30, 1982, reduce the

cost of such diet by one per centum, and round the result to the

nearest lower dollar increment for each household size for former

provision requiring the Secretary, on Oct. 1, 1982, to adjust the

cost of such diet to the nearest dollar increment to reflect the

changes in the cost of the thrifty food plan for the twenty-one

months ending on June 30, 1982.

Subsec. (o)(7). Pub. L. 97-253, Sec. 143(a)(2), 144, substituted

provisions requiring the Secretary, on Oct. 1, 1983, and Oct. 1,

1984, to adjust the cost of the diet to reflect changes in the cost

of the thrifty food plan for the twelve months ending the preceding

June 30, reduce the cost of such diet by one per centum, and round

the result to the nearest lower dollar increment for each household

size for former provision requiring the Secretary, on Oct. 1, 1983,

and each Oct. 1 thereafter, to adjust the cost of such diet to the

nearest dollar increment to reflect changes in the cost of the

thrifty food plan for the twelve months ending the preceding June

30.

Subsec. (o)(8). Pub. L. 97-253, Sec. 143(a)(2), 144, added and

amended par. (8).

Subsec. (r). Pub. L. 97-253, Sec. 145(a), added subsec. (r).

1981 - Subsec. (c). Pub. L. 97-35, Sec. 108(a), inserted

provisions respecting waiver of twelve-month period for improvement

of program.

Subsec. (i). Pub. L. 97-98, Sec. 1302, inserted provision

relating to supplemental security income benefits under title XVI

of the Social Security Act or disability or blindness payments

under title I, II, X, XIV, or XVI of the Social Security Act.

Pub. L. 97-35, Sec. 101, 102, inserted provisions relating to

treatment as a group of parents and children who live together, and

restructured provisions respecting living with others and paying

compensation for meals.

Subsec. (m). Pub. L. 97-35, Sec. 116(a)(1), struck out reference

to Puerto Rico.

Subsec. (o). Pub. L. 97-98, Sec. 1303, 1304, substituted in cl.

(2) ''Hawaii and the urban and rural parts of Alaska to reflect the

cost of food in Hawaii and urban and rural Alaska'' for ''Alaska

and Hawaii to reflect the cost of food in those States'', in cl.

(6) provision that on Oct. 1, 1982, the Secretary adjust the cost

of such diet to reflect changes for the twenty-one months ending

the preceding June 30, 1982, for provision that on Apr. 1, 1982,

the Secretary adjust the cost of such diet to reflect changes for

the fifteen months ending the preceding Dec. 31, in cl. (7)

provision that on Oct. 1, 1983, and each Oct. 1 thereafter, the

Secretary adjust the cost of such diet to reflect changes for the

twelve months ending the preceding June 30, for provision that on

July 1, 1983, the Secretary adjust the cost of such diet to reflect

changes for the fifteen months ending the preceding Mar. 31, struck

out cl. (8) which provided that on Oct. 1, 1984, the Secretary

adjust the cost of such diet to reflect changes for the fifteen

months ending the preceding June 30, and struck out cl. (9) which

provided that on Oct. 1, 1985, and each Oct. 1 thereafter, the

Secretary adjust the cost of such diet to reflect changes for the

twelve months ending the preceding June 30, and, as of every Jan. 1

thereafter, for the nine months ending the preceding Sept. 30 and

the subsequent three months ending Dec. 31 as projected by the

Secretary in light of the best available data, and inserted

provision that the periods upon which adjustments are based be

subject to revision by Act of Congress.

Pub. L. 97-35, Sec. 103, 116(a)(1) struck out applicability to

Puerto Rico in clause (3), substituted provisions respecting

adjustments on Apr. 1, 1982, for provisions respecting adjustments

on Jan. 1, 1982, in cl. (6), and added cls. (7) to (9).

1980 - Subsec. (c). Pub. L. 96-249, Sec. 111, inserted provisions

requiring that for those households that are required to submit

periodic reports under section 2015(c)(1) of this title, the

certification period be at least six months but no longer than

twelve months.

Subsec. (f). Pub. L. 96-181 substituted ''Drug Abuse Prevention,

Treatment, and Rehabilitation Act'' for ''Drug Abuse Office and

Treatment Act of 1972''.

Subsec. (g). Pub. L. 96-249, Sec. 101(a)(1)-(3), substituted

''(7), and (8)'' for ''and (7)'' in cl. (1) and added cl. (8).

Subsec. (i). Pub. L. 96-249, Sec. 101(a)(4), inserted ''temporary

residents of public or private nonprofit shelters for battered

women and children,'' after ''section 1616(e) of the Social

Security Act,''.

Subsec. (k)(2). Pub. L. 96-249, Sec. 101(a)(5), substituted

''(7), and (8)'' for ''and (7)''.

Subsec. (o). Pub. L. 96-249, Sec. 135, inserted ''through January

1, 1980,'' before ''adjust the cost'' in cl. (4) and added cls. (5)

and (6).

1979 - Subsec. (g). Pub. L. 96-58, Sec. 7(1)-(3), substituted

''clauses (3), (4), (5), and (7)'' for ''clauses (3), (4), and

(5)'' and added cl. (7) relating to disabled or blind recipients of

benefits who are residents in certain public or private nonprofit

group living arrangements.

Subsec. (i). Pub. L. 96-58, Sec. 7(4), (5), inserted provisions

relating to disabled or blind recipients of benefits who are

residents in certain public or private nonprofit group living

arrangements and inserted provisions that all residents of

federally subsidized housing for the elderly, disabled or blind

recipients of benefits, and narcotic addicts or alcoholics who live

under the supervision of a private nonprofit institution for the

purpose of regular participation in a drug or alcoholic treatment

program be considered individual households.

Subsec. (k). Pub. L. 96-58, Sec. 7(6), inserted reference to

group living arrangements referred to in subsec. (g)(7) of this

section in cl. (2).

Subsec. (q). Pub. L. 96-58, Sec. 3, added subsec. (q).

1977 - Pub. L. 95-113 redefined terms ''Secretary'', ''food'',

''coupon'', ''household'', ''retail food store'', ''State agency'',

''State'', ''food stamp program'', and ''drug addiction or

alcoholic treatment and rehabilitation program'' and changed

designations of those terms, as thus redefined, from subsecs. (a),

(b), (c), (e), (f), (h), (j), (k), and (n), respectively, to (l),

(g), (d), (i), (k), (n), (m), (h), and (f), substituted definitions

of ''allotment'', ''authorization card'', and ''coupon issuer'' for

''coupon allotment'', ''authorization to purchase card'', and

''coupon vendor'', respectively, and changed designations of those

terms as thus substituted from subsecs. (d), (m), and (o),

respectively, to (a), (b), and (e), struck out definitions of

''wholesale food concern'', ''bank'', and ''elderly person'' which

had been set out, respectively, in subsecs. (g), (i), and (l), and

inserted definitions of ''certification period'', ''reservation'',

''thrifty food plan'', and ''tribal organization'' in subsecs. (c),

(j), (o), and (p), respectively.

1976 - Subsec. (o). Pub. L. 94-339 added subsec. (o).

1973 - Subsec. (b). Pub. L. 93-86, Sec. 3(l), substituted

''home'' for ''human'' and substituted provisions including in

definition of ''food'' seeds and plants for use in gardens to

produce food for the personal consumption of the eligible

household, for provisions excluding from such definition foods

identified on the package as imported and imported meat and meat

products.

Subsec. (e). Pub. L. 93-125 substituted ''foregoing'' for

''foreoging''.

Pub. L. 93-86, Sec. 3(a), (b), (p), inserted provision of cl. (3)

relating to inclusion of narcotic addict or alcoholic within

definition of ''household'' and provision relating to residents of

federally subsidized housing for the elderly, and substituted

provisions relating to the treatment of individuals receiving

supplemental security income benefits under subchapter XVI of

chapter 7 of title 42, for provisions relating to the treatment of

persons eligible to receive supplemental security income benefits

under subchapter XVI of chapter 7 of title 42.

Subsec. (f). Pub. L. 93-86, Sec. 3(o), inserted references to

nonprofit institution and section 2019(i) of this title.

Subsec. (n). Pub. L. 93-86, Sec. 3(c), added subsec. (n).

1972 - Subsec. (e). Pub. L. 92-603, Sec. 411(a), inserted

provision that persons eligible or would be eligible to receive

supplemental security income benefits under sections 1381 to 1383c

of Title 42, may not be considered as members of a household or

elderly persons under this chapter.

Subsec. (h). Pub. L. 92-603, Sec. 411(b), substituted provisions

defining State agency as the agency designated by the Secretary for

carrying out this chapter in such state, for provisions defining it

as the agency having the responsibility for the administration of

the federally aided public assistance program.

1971 - Subsec. (e). Pub. L. 91-671, Sec. 2(a), substituted in

definition of ''household'', ''related individuals (including

legally adopted children and legally assigned foster children) or

non-related individuals over age 60 who are not residents'' for

''related or non-related individuals, who are not residents'',

designated existing provisions as cl. (1), and added cl. (2).

Subsec. (f). Pub. L. 91-671, Sec. 2(b), included in definition of

''retail food store'' a political subdivision or a private

nonprofit organization that meets requirements of section 2019(h)

of this title.

Subsec. (j). Pub. L. 91-671, Sec. 2(c), included in definition of

''State'' Guam, Puerto Rico, and the Virgin Islands.

Subsec. (l). Pub. L. 91-671, Sec. 2(d), added subsec. (l).

Subsec. (m). Pub. L. 91-671, Sec. 2(e), added subsec. (m).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by 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 1994 AMENDMENT

Section 303(b) of Pub. L. 103-354 provided that: ''The amendment

made by subsection (a) (amending this section) shall be effective

beginning on September 30, 1994.''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective, and to be implemented

beginning on, Sept. 1, 1994, see section 13971(b)(4) 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

Section 1781 of title XVII of Pub. L. 101-624 provided that:

''(a) In General. - Except as otherwise provided in subsection

(b) and other provisions of this title, this title (see Short Title

of 1990 Amendment note set out under section 2011 of this title)

and the amendments made by this title shall become effective and

implemented the 1st day of the month beginning 120 days after the

publication of implementing regulations. Such regulations shall be

promulgated not later than October 1, 1991.

''(b) Special Effective Dates. -

''(1) October 1, 1990. - The amendments made by sections 1721,

1730, 1750, 1754, 1760(1)(A), 1761, 1762, 1771(a), 1771(d),

1772(c), 1772(f), 1772(g), and 1776 (amending sections 2014,

2017, 2025 to 2028, 3175, and 3175e of this title and provisions

set out as notes under section 612c of this title) shall be

effective on October 1, 1990.

''(2) Date of enactment. - The amendments made by sections

1718, 1729, 1731, 1739, 1742, 1746, 1747, 1748, 1749, 1751, 1753,

1755, 1756, 1757, 1758, 1759, 1760(1)(B) and (2), 1763, 1771(b),

1771(c), 1772(a), 1772(b), 1772(d), 1772(h), 1773, 1774(a)(1),

1774(b), 1774(c), 1775(a), 1775(b), 1777, 1778, and 1779

(enacting section 2032 of this title, amending this section,

sections 1431, 1431e, 2014, 2016, 2020, 2022, and 2024 to 2027 of

this title and section 9904 of Title 42, The Public Health and

Welfare, enacting provisions set out as notes under sections

2011, 2020, and 2025 of this title and section 1751 of Title 42,

and amending provisions set out as notes under section 612c of

this title) shall become effective on the date of enactment of

this Act (Nov. 28, 1990).

''(3) April 1, 1991. - The amendments made by sections 1716,

1722, and 1736(2) (amending sections 2014 and 2020 of this title)

shall become effective and implemented the 1st day of the month

beginning 120 days after the promulgation of implementing

regulations. Such regulations shall be promulgated not later

than April 1, 1991.

''(4) Categorical eligibility. - The amendment made by section

1714(2) (amending section 2014 of this title) shall become

effective and implemented the 1st day of the month beginning 120

days after the promulgation of implementing regulations. Such

regulations shall be promulgated -

''(A) in the case of a State general assistance program, not

later than October 1, 1991; and

''(B) in the case of a local general assistance program, not

later than April 1, 1992.''

EFFECTIVE DATE OF 1988 AMENDMENT

Section 701 of Pub. L. 100-435, as amended by Pub. L. 100-619,

Sec. 1, Nov. 5, 1988, 102 Stat. 3198, provided that:

''(a) In General. - Except as otherwise provided for in section

503 (set out as a note under section 1766 of Title 42, The Public

Health and Welfare) and in subsection (b) of this section, this Act

and the amendments made by this Act (amending sections 2012, 2014

to 2017, 2020 to 2023, 2025, and 2026 of this title, section

713a-14 of Title 15, Commerce and Trade, and sections 1761, 1766,

1773, and 1786 of Title 42, enacting provisions set out as notes

under sections 612c and 2011 of this title and sections 1766 and

1786 of Title 42, and amending provisions set out as notes under

sections 612c, 1731, and 2012 of this title) shall become effective

and be implemented on October 1, 1988.

''(b) Special Rules. -

''(1) The amendments made by sections 101, 103, 301, 321(c),

343, and 401 (amending sections 2014 and 2025 of this title and

amending provisions set out as a note under section 612c of this

title) shall become effective and be implemented on the date of

enactment of this Act (Sept. 19, 1988).

''(2) The amendments made by section 402 (amending section 2014

of this title) shall become effective and be implemented on

January 1, 1989.

''(3)(A) The amendments made by section 203(a) (amending

section 2017 of this title) shall become effective on January 1,

1989, and the States shall implement such section by January 1,

1990.

''(B) The amendments made by section 203(b) (amending section

2016 of this title) shall become effective on January 1, 1989,

except with regards to those States not implementing section

203(a).

''(4) The amendments made by sections 204, 210, 211,

subsections (a)(1), (c), and (e) of section 404, sections 310

through 343, and sections 345 through 352 (amending sections

2012, 2014, 2015, 2020, and 2025 of this title and sections 1766

and 1773 of Title 42) shall become effective and implemented on

July 1, 1989.

''(5) The amendments made by title VI (amending sections 2022,

2023, and 2025 of this title) shall be effective as follows:

''(A) Except as provided in subparagraph (D), the provisions

of section 16(c) of the Food Stamp Act of 1977, as amended by

section 604 (section 2025(c) of this title), shall become

effective on October 1, 1985, with respect to claims under

section 16(c) for quality control review periods after such

date, except that -

''(i) the provisions of section 16(c)(1)(A), as amended,

shall become effective on October 1, 1988, with respect to

payment error rates for quality control review periods after

such date; and

''(ii) the provisions of section 16(c)(3), as amended,

shall become effective on October 1, 1988, with respect to

payment error rates for quality control review periods after

such date.

''(B) The amendments made by sections 601 and 602 (amending

section 2022 of this title) shall become effective on October

1, 1985, with respect to claims under section 16(c) for quality

control review periods after such date.

''(C) Except as provided in subparagraph (D), the amendments

made to section 14 of the Food Stamp Act of 1977 (section 2023

of this title) by section 603 shall become effective on October

1, 1985, with respect to claims under section 16(c) for quality

control review periods after such date.

''(D)(i) The provisions of sections 13, 14, and 16 of the

Food Stamp Act of 1977 (sections 2022, 2023, and 2025 of this

title) that relate to claims against State agencies and that

were in effect for any quality control review period or periods

through fiscal year 1985 shall remain in effect for claims

arising with respect to such period or periods.

''(ii) The provisions of sections 14 and 16(c) of the Food

Stamp Act of 1977 that relate to enhanced administrative

funding for State agencies and that were in effect for any

quality control review period or periods through fiscal year

1988 shall remain in effect for such funding with respect to

such period or periods.

''(c) Sequestration. -

''(1) In general. - Notwithstanding any other provision of law,

if a final order is issued for fiscal year 1989 under section

252(b) of the Balanced Budget and Emergency Deficit Control Act

of 1985 (2 U.S.C. 902(b)), the amount made available to carry out

the food stamp program under section 18 of the Food Stamp Act of

1977 (7 U.S.C. 2027) shall be reduced by an amount equal to

$110,000,000 multiplied by the amount of the percentage reduction

for domestic programs required under such order. The reduction

required by the preceding sentence shall be achieved by reducing

the amount of the adjustment to the cost of the thrifty food plan

for fiscal year 1989 under section 3(o)(9) of the Food Stamp Act

of 1977 (as added by section 120 of this Act) (section 2012(o)(9)

of this title).

''(2) Effective dates if sequestration occurs. -

Notwithstanding subsections (a) and (b), if a final order is

issued under section 252(b) of the Emergency Deficit Control Act

of 1985 (2 U.S.C. 902(b)) for fiscal year 1989 to make reductions

and sequestrations specified in the report required under section

251(a)(3)(A) of such Act (2 U.S.C. 901(a)(3)(A)), sections 111,

201, 204, 310, 311, 321, 322, 323, 341, 342, 350, 351, 352, 402,

403, 404, 502, 504, and 505 (amending sections 2012, 2014, 2015,

2020, 2025, and 2026 of this title and enacting provisions set

out as notes under section 612c of this title) shall become

effective and be implemented on October 1, 1989.''

EFFECTIVE DATE OF 1987 AMENDMENT

Section 802(b) of Pub. L. 100-77 provided that: ''The amendments

made by this section (amending this section) shall become effective

on October 1, 1987.''

EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENT

Section 11002(f) of Pub. L. 99-570, as amended by Pub. L.

100-435, title II, Sec. 205, Sept. 19, 1988, 102 Stat. 1657; Pub.

L. 101-624, title XVII, Sec. 1713(b), Nov. 28, 1990, 104 Stat.

3783; Pub. L. 102-237, title IX, Sec. 913, Dec. 13, 1991, 105 Stat.

1887, provided that:

''(1) The amendments made by this section (amending this section

and sections 2018 and 2019 of this title) shall become effective,

and be implemented by issuance of final regulations, not later than

April 1, 1987.

''(2) Not later than September 30, 1988, 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 that evaluates the

program established by the amendments made by this section,

including any proposed legislative recommendations.

''(3) The amendments made by this section, except those

amendments made by subsections (a), (b), and (c) (amending this

section), shall cease to be effective after September 30, 1990.''

(Amendment by Pub. L. 102-237 to section 11002(f) of Pub. L.

99-570, set out above, effective Oct. 1, 1990, and not applicable

with respect to any period occurring before such date, see section

1101(d)(5) of Pub. L. 102-237, set out as an Effective Date of 1991

Amendment note under section 1421 of this title.)

(Section 1713(b) of Pub. L. 101-624 provided that the amendment

made by that section is effective Sept. 29, 1990.)

EFFECTIVE DATE OF 1982 AMENDMENT

Section 193 of subtitle E (Sec. 140-193) of title I of Pub. L.

97-253 provided that:

''(a) Except as provided in subsection (b), this subtitle

(amending this section and sections 2014, 2015, 2016, 2017, 2018,

2020, 2021, 2022, 2023, 2025, 2026, 2027, 2028, and 2029 of this

title and enacting provisions set out as notes under this section

and sections 1624, 2011, and 2028 of this title) and the amendments

made by this subtitle shall take effect on the date of the

enactment of this subtitle (Sept. 8, 1982).

''(b) Sections 180 and 188 (amending sections 2020, 2025, 2027,

and 2029 of this title) shall take effect on October 1, 1982.''

EFFECTIVE DATE OF 1981 AMENDMENTS

Section 192 of Pub. L. 97-253 provided that:

''(a) Notwithstanding section 117 of the Omnibus Budget

Reconciliation Act of 1981 (7 U.S.C. 2012 note) (section 117 of

Pub. L. 97-35, set out below), the amendments made by sections 101

through 114 of such Act (amending this section and sections 2014,

2015, 2017, 2020, 2022, and 2025 of this title), other than

sections 107(b) and 108(c) of such Act (amending sections 2014 and

2015 of this title), shall take effect on the earlier of the date

of the enactment of this subtitle (Sept. 8, 1982) or the date on

which such amendments became effective pursuant to section 117 of

such Act.

''(b) Notwithstanding section 1338 of the Agriculture and Food

Act of 1981 (7 U.S.C. 2012 note) (section 1338 of Pub. L. 97-98,

set out below), the amendments made by sections 1302 through 1333

of such Act (enacting section 2029 of this title and amending this

section and sections 2014 to 2016, 2018 to 2020, and 2023 to 2027

of this title) shall take effect on the earlier of the date of the

enactment of this subtitle (Sept. 8, 1982) or the date on which

such amendments became effective pursuant to section 1338 of such

Act.''

Section 1338 of title XIII of Pub. L. 97-98 provided that:

''Except as otherwise specifically provided, the amendments made by

this title (enacting sections 2029 and 2270 of this title, amending

this section and sections 2014 to 2016, 2018 to 2020, and 2023 to

2027 of this title, and enacting provisions set out as a note under

section 2011 of this title) shall be effective upon such dates as

the Secretary of Agriculture may prescribe, taking into account the

need for orderly implementation.''

Section 116(a) of Pub. L. 97-35 provided that the amendment made

by that section is effective July 1, 1982.

Section 117 of Pub. L. 97-35 provided that: ''Except as otherwise

specifically provided, the amendments made by sections 101 through

116 of this Act (amending this section and sections 2014, 2015,

2017, 2020, 2022, and 2025 of this title) shall be effective and

implemented upon such dates as the Secretary of Agriculture may

prescribe, taking into account the need for orderly

implementation.''

EFFECTIVE DATE OF 1979 AMENDMENT

Section 10 of Pub. L. 96-58 provided that:

''(a) The provisions of sections 2 and 3 of this Act (amending

this section and sections 2014 of this section) shall be

implemented in all States by January 1, 1980, and shall not affect

the rights or liabilities of the Secretary, States, and applicant

or participant households, under the Food Stamp Act of 1977 (this

chapter) in effect on July 1, 1979, until implemented.

''(b) Notwithstanding any other provision of law, the Secretary

of Agriculture shall issue final regulations implementing the

provisions of sections 4 through 6 of this Act (amending sections

2015 and 2025 of this title) within one hundred and fifty days

after the date of enactment of this Act (Aug. 14, 1979).

''(c) The provisions of sections 7 and 8 of this Act (amending

this section and section 2019 of this title) shall be implemented

in all States by July 1, 1980, and shall not affect the rights or

liabilities of the Secretary, States, and applicant or

participating households, under the Food Stamp Act of 1977 (this

chapter) in effect on July 1, 1979, until implemented.''

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.

Section 1302(b) of Pub. L. 95-113 provided that: ''The amendments

made by this section (repealing section 3(b) of Pub. L. 93-86 as

described in the Repeals note below and amending section 1431 of

this title and provisions set out as notes under sections 612c of

this title and 1382e of Title 42, The Public Health and Welfare)

shall be effective October 1, 1977.''

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment of section 8(a) of Pub. L. 93-233 by section 1(a), (b)

of Pub. L. 93-335, effective July 1, 1974, see section 1(c) of Pub.

L. 93-335, set out as a note under section 1382 of Title 42, The

Public Health and Welfare. See Repeals note below.

EFFECTIVE DATE OF 1972 AMENDMENT

Section 411(a) of Pub. L. 92-603 provided that the amendment made

by that section is effective January 1, 1974.

Section 411(h) of Pub. L. 92-603 provided that: ''Except as

otherwise provided in this section, the amendments made by this

section (amending this section and sections 2019 and 2023 of this

title) shall take effect on January 1, 1973''.

REPEALS

Section 3(b) of Pub. L. 93-86, cited as a credit to this section,

was repealed, effective Oct. 1, 1977, by section 1302(a)(1) of Pub.

L. 95-113. Section 3(b) of Pub. L. 93-86 had amended the definition

of ''household'' in 1973 to exclude individuals receiving

supplementary security income benefits under title XVI of the

Social Security Act in certain months. For the period beginning

Jan. 1, 1974, and ending September 30, 1978, Pub. L. 93-233, Sec.

8(a), Dec. 30, 1973, 87 Stat. 956, as amended by Pub. L. 93-335,

Sec. 1(a), (b), July 8, 1974, 88 Stat. 291; Pub. L. 94-44, Sec. 3,

June 28, 1975, 89 Stat. 235; Pub. L. 94-365, Sec. 2, July 14, 1976,

90 Stat. 990; Pub. L. 95-59, Sec. 3, June 30, 1977, 91 Stat. 255,

provided that the amendment by section 3(b) of Pub. 93-86 should

not be effective and that the definition of ''household'' should

read as it did before such amendment but with the addition of a new

sentence to exclude individuals receiving certain Federal or State

supplementary payments under certain circumstances.

CONTINUED ELIGIBILITY

Section 205 of Pub. L. 103-225 provided that: ''An establishment

or house-to-house trade route that is otherwise authorized to

accept and redeem coupons under the Food Stamp Act of 1977 (7

U.S.C. 2011 et seq.) on the day before the date of enactment of

this Act (Mar. 25, 1994) shall be considered to meet the definition

of 'retail food store' in section 3(k) of such Act (7 U.S.C.

2012(k)) (as amended by section 201) until the earlier of -

''(1) the periodic reauthorization of the establishment or

route; or

''(2) such time as the eligibility of the establishment or

route for continued participation in the food stamp program is

evaluated for any reason.''

REPORT ON IMPACT ON RETAIL FOOD STORES

Section 206 of Pub. L. 103-225 provided that: ''Not later than 18

months after the date of enactment of this Act (Mar. 25, 1994), the

Secretary of Agriculture shall prepare and submit to the Committee

on Agriculture of the House of Representatives and the Committee on

Agriculture, Nutrition, and Forestry of the Senate a report on the

impact of the amendments made by sections 201 and 202 (amending

this section and section 2018 of this title) on the involvement of

retail food stores in the food stamp program established under the

Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), including a

description of -

''(1) the numbers and types of stores that were newly

authorized to participate in the food stamp program after

implementation of the amendments;

''(2) the numbers and types of stores that were withdrawn from

the food stamp program after implementation of the amendments;

''(3) the procedures used by the Secretary, and the adequacy of

the procedures used, to determine the eligibility of stores to

participate in the food stamp program and to authorize and

reauthorize the stores to participate in the food stamp program;

''(4) the adequacy of the guidance provided by the Secretary to

retail food stores concerning -

''(A) the definitions of 'retail food store', 'staple foods',

'eligible foods', and 'perishable foods' for purposes of the

food stamp program; and

''(B) eligibility criteria for stores to participate in the

food stamp program; and

''(5) an assessment of whether the amendment to the definition

of 'retail food store' under section 3(k) of such Act (subsec.

(k) of this section) (as amended by section 201(1)) has had an

adverse effect on the integrity of the food stamp program.''

CONTINUING ELIGIBILITY OF CERTAIN RETAIL FOOD STORES

Pub. L. 103-205, Sec. 2, Dec. 17, 1993, 107 Stat. 2418, provided

that: ''Notwithstanding any other provision of law, during the

period beginning on the date of enactment of this Act (Dec. 17,

1993) and ending on March 15, 1994, an establishment or

house-to-house trade route that is otherwise authorized to accept

and redeem coupons under the Food Stamp Act of 1977 (7 U.S.C. 2011

et seq.) on the date of enactment of this Act may not be

disqualified from participation in the food stamp program solely

because the establishment or trade route does not meet the

definition of 'retail food store' under section 3(k)(1) of such Act

(7 U.S.C. 2012(k)(1)).''

PUBLICLY OPERATED COMMUNITY HEALTH CENTERS

Pub. L. 98-107, Sec. 101(b), Oct. 1, 1983, 97 Stat. 734, provided

in part: ''That notwithstanding any other provision of law or this

joint resolution, the provisions of subsections (f) and (i) of

section 3 and section 10 of the Food Stamp Act of 1977, as amended

(7 U.S.C. 2012(f), (i) and 2019), concerning private, nonprofit

drug addiction or alcoholic treatment and rehabilitation programs,

shall also be applicable to publicly operated community health

centers''.

(Reference to community health center, migrant health center,

public housing health center, or homeless health center considered

reference to health center, see section 4(c) of Pub. L. 104-299,

set out as a note under section 254b of Title 42, The Public Health

and Welfare.)

ELIGIBILITY OF SUPPLEMENTAL SECURITY INCOME RECIPIENTS FOR FOOD

STAMPS DURING PRESCRIBED PERIOD BEGINNING JANUARY 1, 1974

Provisions respecting eligibility of supplemental security income

recipients for food stamps during prescribed period beginning Jan.

1, 1974, see section 8(c) of Pub. L. 93-233, Dec. 31, 1974, 87

Stat. 957, set out as a note under section 1832e of Title 42, The

Public Health and Welfare.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012a, 2014, 2017, 2019,

2020, 2026, 2028 of this title; title 8 section 1612; title 21

section 862a; title 31 section 3803; title 37 section 402a; title

42 sections 503, 604, 654, 8011.

-CITE-

7 USC Sec. 2012a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2012a. Publicly operated community health centers

-STATUTE-

Notwithstanding any other provision of law, the provisions of

subsections (f) and (i) of section 2012 of this title and section

2019 of this title, concerning private, nonprofit drug addiction or

alcohol treatment and rehabilitation programs, shall henceforth

also be applicable to publicly operated community health centers.

-SOURCE-

(Pub. L. 99-88, title I, Sec. 100, Aug. 15, 1985, 99 Stat. 297.)

-COD-

CODIFICATION

Section was enacted as part of the Supplemental Appropriations

Act, 1985, and not as part of the Food Stamp Act of 1977 which

comprises this chapter.

-MISC3-

REFERENCE TO COMMUNITY, MIGRANT, PUBLIC HOUSING, OR HOMELESS HEALTH

CENTER CONSIDERED REFERENCE TO HEALTH CENTER

Reference to community health center, migrant health center,

public housing health center, or homeless health center considered

reference to health center, see section 4(c) of Pub. L. 104-299,

set out as a note under section 254b of Title 42, The Public Health

and Welfare.

-CITE-

7 USC Sec. 2013 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2013. Establishment of program

-STATUTE-

(a) Use of coupons; redeemability

Subject to the availability of funds appropriated under section

2027 of this title, the Secretary is authorized to formulate and

administer a food stamp program under which, at the request of the

State agency, eligible households within the State shall be

provided an opportunity to obtain a more nutritious diet through

the issuance to them of an allotment, except that a State may not

participate in the food stamp program if the Secretary determines

that State or local sales taxes are collected within that State on

purchases of food made with coupons issued under this chapter. The

coupons so received by such households shall be used only to

purchase food from retail food stores which have been approved for

participation in the food stamp program. Coupons issued and used

as provided in this chapter shall be redeemable at face value by

the Secretary through the facilities of the Treasury of the United

States.

(b) Distribution of federally donated foods

Distribution of commodities, with or without the food stamp

program, shall be made whenever a request for concurrent or

separate food program operations, respectively, is made by a tribal

organization. In the event of distribution on all or part of an

Indian reservation, the appropriate agency of the State government

in the area involved shall be responsible for such distribution,

except that, if the Secretary determines that the tribal

organization is capable of effectively and efficiently

administering such distribution, then such tribal organizations

shall administer such distribution: Provided, That the Secretary

shall not approve any plan for such distribution which permits any

household on any Indian reservation to participate simultaneously

in the food stamp program and the distribution of federally donated

foods. The Secretary is authorized to pay such amounts for

administrative costs of such distribution on Indian reservations as

the Secretary finds necessary for effective administration of such

distribution by a State agency or tribal organization.

(c) Regulations; transmittal of copy of regulations to

Congressional committees prior to issuance

The Secretary shall issue such regulations consistent with this

chapter as the Secretary deems necessary or appropriate for the

effective and efficient administration of the food stamp program

and shall promulgate all such regulations in accordance with the

procedures set forth in section 553 of title 5. In addition, prior

to issuing any regulation, the Secretary shall provide the

Committee on Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the Senate a

copy of the regulation with a detailed statement justifying it.

-SOURCE-

(Pub. L. 88-525, Sec. 4, Aug. 31, 1964, 78 Stat. 704; Pub. L.

91-671, Sec. 3, Jan. 11, 1971, 84 Stat. 2049; Pub. L. 95-113, title

XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 961; Pub. L. 99-198,

title XV, Sec. 1505(a), 1506, Dec. 23, 1985, 99 Stat. 1567.)

-MISC1-

AMENDMENTS

1985 - Subsec. (a). Pub. L. 99-198, Sec. 1505(a), inserted '',

except that a State may not participate in the food stamp program

if the Secretary determines that State or local sales taxes are

collected within that State on purchases of food made with coupons

issued under this chapter'' at end of first sentence.

Subsec. (b). Pub. L. 99-198, Sec. 1506, struck out first sentence

which directed that in jurisdictions where the food stamp program

is in operation, there shall be no distribution of federally

donated foods to households under the authority of any law, except

that distribution may be made (1) on a temporary basis under

programs authorized by law to meet disaster relief needs, or (2)

for the purpose of the commodity supplemental food program, and

struck out ''also'' after ''shall'' in second sentence.

1977 - Subsec. (a). Pub. L. 95-113 made establishment of food

stamp program subject to availability of funds appropriated under

section 2027 of this title.

Subsec. (b). Pub. L. 95-113 inserted provisions relating to

requests by tribal organizations.

Subsec. (c). Pub. L. 95-113 inserted provisions relating to

transmittal of regulations and accompanying statement of

justification to Congressional committees.

1971 - Subsec. (a). Pub. L. 91-671 substituted ''the State

agency'' and ''the charge to be paid for such allotment by eligible

households'' for ''an appropriate State agency'' and ''their normal

expenditures for food'', respectively, and struck out ''more

nearly'' before ''to obtain''.

Subsec. (b). Pub. L. 91-671 substituted ''operation'' for

''effect'', ''federally donated foods'' for ''federally owned

foods'' where first appearing, and exception provision for

distributions to households: during temporary emergency situations,

for period of time necessary to effect transition to a food stamp

program as a replacement of distribution of federally donated

foods, or on request of the State agency without simultaneous

participation in both the food stamp program and distribution of

federally donated foods for prior exception during emergency

situations caused by a national or other disaster.

EFFECTIVE DATE OF 1985 AMENDMENT

Section 1505(b) of Pub. L. 99-198 provided that:

''(1) Except as provided in paragraph (2), the amendment made by

subsection (a) (amending this section) shall take effect with

respect to a State beginning on the first day of the fiscal year

that commences in the calendar year during which the first regular

session of the legislature of such State is convened following the

date of enactment of this Act (Dec. 23, 1985).

''(2) Upon a showing by a State, to the satisfaction of the

Secretary, that the application of paragraph (1), without regard to

this paragraph, would have an adverse and disruptive effect on the

administration of the food stamp program in such State or would

provide inadequate time for retail stores to implement changes in

sales tax policy required as a result of the amendment made by

subsection (a) (amending this section), the Secretary may delay the

effective date of subsection (a) with respect to such State to a

date not later than October 1, 1987.''

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2014, 4004a, 7509

of this title; title 8 section 1615; title 37 section 402a.

-CITE-

7 USC Sec. 2014 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2014. Eligible households

-STATUTE-

(a) Income and other financial resources as substantial limiting

factors in obtaining more nutritious diet; recipients under

Social Security Act

Participation in the food stamp program shall be limited to those

households whose incomes and other financial resources, held singly

or in joint ownership, are determined to be a substantial limiting

factor in permitting them to obtain a more nutritious diet.

Notwithstanding any other provisions of this chapter except

sections 2015(b), 2015(d)(2), and 2015(g) of this title and section

2012(i)(4) of this title, households in which each member receives

benefits under a State program funded under part A of title IV of

the Social Security Act (42 U.S.C. 601 et seq.), supplemental

security income benefits under title XVI of the Social Security Act

(42 U.S.C. 1381 et seq.), or aid to the aged, blind, or disabled

under title I, X, XIV, or XVI of the Social Security Act (42 U.S.C.

301 et seq., 1201 et seq., 1351 et seq., or 1381 et seq.), shall be

eligible to participate in the food stamp program. Except for

sections 2015, 2025(e)(1), and section 2012(i)(4) of this title,

households in which each member receives benefits under a State or

local general assistance program that complies with standards

established by the Secretary for ensuring that the program is based

on income criteria comparable to or more restrictive than those

under subsection (c)(2) of this section, and not limited to

one-time emergency payments that cannot be provided for more than

one consecutive month, shall be eligible to participate in the food

stamp program. Assistance under this program shall be furnished to

all eligible households who make application for such

participation.

(b) Eligibility standards

Except as otherwise provided in this chapter, the Secretary shall

establish uniform national standards of eligibility (other than the

income standards for Alaska, Hawaii, Guam, and the Virgin Islands

of the United States established in accordance with subsections (c)

and (e) of this section) for participation by households in the

food stamp program in accordance with the provisions of this

section. No plan of operation submitted by a State agency shall be

approved unless the standards of eligibility meet those established

by the Secretary, and no State agency shall impose any other

standards of eligibility as a condition for participating in the

program.

(c) Gross income standard

The income standards of eligibility shall be adjusted each

October 1 and shall provide that a household shall be ineligible to

participate in the food stamp program if -

(1) the household's income (after the exclusions and deductions

provided for in subsections (d) and (e) of this section) exceeds

the poverty line, as defined in section 673(2) of the Community

Services Block Grant Act (42 U.S.C. 9902(2)), for the forty-eight

contiguous States and the District of Columbia, Alaska, Hawaii,

the Virgin Islands of the United States, and Guam, respectively;

and

(2) in the case of a household that does not include an elderly

or disabled member, the household's income (after the exclusions

provided for in subsection (d) of this section but before the

deductions provided for in subsection (e) of this section)

exceeds such poverty line by more than 30 per centum.

In no event shall the standards of eligibility for the Virgin

Islands of the United States or Guam exceed those in the

forty-eight contiguous States.

(d) Income excluded in computing household income

Household income for purposes of the food stamp program shall

include all income from whatever source excluding only (1) any gain

or benefit which is not in the form of money payable directly to a

household (notwithstanding its conversion in whole or in part to

direct payments to households pursuant to any demonstration project

carried out or authorized under Federal law including demonstration

projects created by the waiver of provisions of Federal law), (2)

any income in the certification period which is received too

infrequently or irregularly to be reasonably anticipated, but not

in excess of $30 in a quarter, subject to modification by the

Secretary in light of subsection (f) of this section, (3) all

educational loans on which payment is deferred, grants,

scholarships, fellowships, veterans' educational benefits, and the

like (A) awarded to a household member enrolled at a recognized

institution of post-secondary education, at a school for the

handicapped, in a vocational education program, or in a program

that provides for completion of a secondary school diploma or

obtaining the equivalent thereof, (B) to the extent that they do

not exceed the amount used for or made available as an allowance

determined by such school, institution, program, or other grantor,

for tuition and mandatory fees (including the rental or purchase of

any equipment, materials, and supplies related to the pursuit of

the course of study involved), books, supplies, transportation, and

other miscellaneous personal expenses (other than living expenses),

of the student incidental to attending such school, institution, or

program, and (C) to the extent loans include any origination fees

and insurance premiums, (4) all loans other than educational loans

on which repayment is deferred, (5) reimbursements which do not

exceed expenses actually incurred and which do not represent a gain

or benefit to the household and any allowance a State agency

provides no more frequently than annually to families with children

on the occasion of those children's entering or returning to school

or child care for the purpose of obtaining school clothes (except

that no such allowance shall be excluded if the State agency

reduces monthly assistance under a State program funded under part

A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in

the month for which the allowance is provided): Provided, That no

portion of benefits provided under title IV-A of the Social

Security Act (42 U.S.C. 601 et seq.), to the extent it is

attributable to an adjustment for work-related or child care

expenses (except for payments or reimbursements for such expenses

made under an employment, education, or training program initiated

under such title after September 19, 1988), and no portion of any

educational loan on which payment is deferred, grant, scholarship,

fellowship, veterans' benefits, and the like that are provided for

living expenses, shall be considered such reimbursement, (6) moneys

received and used for the care and maintenance of a third-party

beneficiary who is not a household member, and child support

payments made by a household member to or for an individual who is

not a member of the household if the household member is legally

obligated to make the payments, (7) income earned by a child who is

a member of the household, who is an elementary or secondary school

student, and who is 17 years of age or younger, (8) moneys received

in the form of nonrecurring lump-sum payments, including, but not

limited to, income tax refunds, rebates, or credits, cash donations

based on need that are received from one or more private nonprofit

charitable organizations, but not in excess of $300 in the

aggregate in a quarter, retroactive lump-sum social security or

railroad retirement pension payments and retroactive lump-sum

insurance settlements: Provided, That such payments shall be

counted as resources, unless specifically excluded by other laws,

(9) the cost of producing self-employed income, but household

income that otherwise is included under this subsection shall be

reduced by the extent that the cost of producing self-employment

income exceeds the income derived from self-employment as a farmer,

(10) any income that any other Federal law specifically excludes

from consideration as income for purposes of determining

eligibility for the food stamp program except as otherwise provided

in subsection (k) of this section, (11)(A) any payments or

allowances made for the purpose of providing energy assistance

under any Federal law (other than part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.)), or (B) a 1-time payment or

allowance made under a Federal or State law for the costs of

weatherization or emergency repair or replacement of an unsafe or

inoperative furnace or other heating or cooling device, (12)

through September 30 of any fiscal year, any increase in income

attributable to a cost-of-living adjustment made on or after July 1

of such fiscal year under title II or XVI of the Social Security

Act (42 U.S.C. 401 et seq., 1381 et seq.), section 3(a)(1) of the

Railroad Retirement Act of 1974 (45 U.S.C. 231b(a)(1)), or section

5312 of title 38, if the household was certified as eligible to

participate in the food stamp program or received an allotment in

the month immediately preceding the first month in which the

adjustment was effective, (13) any payment made to the household

under section 3507 of title 26 (relating to advance payment of

earned income credit), (14) any payment made to the household under

section 2015(d)(4)(I) of this title for work related expenses or

for dependent care, (15) any amounts necessary for the fulfillment

of a plan for achieving self-support of a household member as

provided under subparagraph (A)(iii) or (B)(iv) of section

1612(b)(4) of the Social Security Act (42 U.S.C. 1382a(b)(4)), (16)

at the option of the State agency, any educational loans on which

payment is deferred, grants, scholarships, fellowships, veterans'

educational benefits, and the like (other than loans, grants,

scholarships, fellowships, veterans' educational benefits, and the

like excluded under paragraph (3)), to the extent that they are

required to be excluded under title XIX of the Social Security Act

(42 U.S.C. 1396 et seq.), (17) at the option of the State agency,

any State complementary assistance program payments that are

excluded for the purpose of determining eligibility for medical

assistance under section 1931 of the Social Security Act (42 U.S.C.

1396u-1), and (18) at the option of the State agency, any types of

income that the State agency does not consider when determining

eligibility for (A) cash assistance under a program funded under

part A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.) or the amount of such assistance, or (B) medical assistance

under section 1931 of the Social Security Act (42 U.S.C. 1396u-1),

except that this paragraph does not authorize a State agency to

exclude wages or salaries, benefits under title I, II, IV, X, XIV,

or XVI of the Social Security Act (42 U.S.C. 301 et seq. (, 401 et

seq., 601 et seq., 1201 et seq., 1351 et seq., 1381 et seq.)),

regular payments from a government source (such as unemployment

benefits and general assistance), worker's compensation, child

support payments made to a household member by an individual who is

legally obligated to make the payments, or such other types of

income the consideration of which the Secretary determines by

regulation to be essential to equitable determinations of

eligibility and benefit levels.

(e) Deductions from income

(1) Standard deduction

(A) In general

(i) Deduction

The Secretary shall allow a standard deduction for each

household in the 48 contiguous States and the District of

Columbia, Alaska, Hawaii, and the Virgin Islands of the

United States in an amount that is -

(I) equal to 8.31 percent of the income standard of

eligibility established under subsection (c)(1) of this

section; but

(II) not more than 8.31 percent of the income standard of

eligibility established under subsection (c)(1) of this

section for a household of 6 members.

(ii) Minimum amount

Notwithstanding clause (i), the standard deduction for each

household in the 48 contiguous States and the District of

Columbia, Alaska, Hawaii, and the Virgin Islands of the

United States shall be not less than $134, $229, $189, and

$118, respectively.

(B) Guam

(i) In general

The Secretary shall allow a standard deduction for each

household in Guam in an amount that is -

(I) equal to 8.31 percent of twice the income standard of

eligibility established under subsection (c)(1) of this

section for the 48 contiguous States and the District of

Columbia; but

(II) not more than 8.31 percent of twice the income

standard of eligibility established under subsection (c)(1)

of this section for the 48 contiguous States and the

District of Columbia for a household of 6 members.

(ii) Minimum amount

Notwithstanding clause (i), the standard deduction for each

household in Guam shall be not less than $269.

(2) Earned income deduction

(A) ''Earned income'' defined

In this paragraph, the term ''earned income'' does not

include -

(i) income excluded by subsection (d) of this section; or

(ii) any portion of income earned under a work

supplementation or support program, as defined under section

2025(b) of this title, that is attributable to public

assistance.

(B) Deduction

Except as provided in subparagraph (C), a household with

earned income shall be allowed a deduction of 20 percent of all

earned income to compensate for taxes, other mandatory

deductions from salary, and work expenses.

(C) Exception

The deduction described in subparagraph (B) shall not be

allowed with respect to determining an overissuance due to the

failure of a household to report earned income in a timely

manner.

(3) Dependent care deduction

(A) In general

A household shall be entitled, with respect to expenses

(other than excluded expenses described in subparagraph (B))

for dependent care, to a dependent care deduction, the maximum

allowable level of which shall be $200 per month for each

dependent child under 2 years of age and $175 per month for

each other dependent, for the actual cost of payments necessary

for the care of a dependent if the care enables a household

member to accept or continue employment, or training or

education that is preparatory for employment.

(B) Excluded expenses

The excluded expenses referred to in subparagraph (A) are -

(i) expenses paid on behalf of the household by a third

party;

(ii) amounts made available and excluded, for the expenses

referred to in subparagraph (A), under subsection (d)(3) of

this section; and

(iii) expenses that are paid under section 2015(d)(4) of

this title.

(4) Deduction for child support payments

(A) In general

In lieu of providing an exclusion for legally obligated child

support payments made by a household member under subsection

(d)(6) of this section, a State agency may elect to provide a

deduction for the amount of the payments.

(B) Order of determining deductions

A deduction under this paragraph shall be determined before

the computation of the excess shelter expense deduction under

paragraph (6).

(5) Excess medical expense deduction

(A) In general

A household containing an elderly or disabled member shall be

entitled, with respect to expenses other than expenses paid on

behalf of the household by a third party, to an excess medical

expense deduction for the portion of the actual costs of

allowable medical expenses, incurred by the elderly or disabled

member, exclusive of special diets, that exceeds $35 per month.

(B) Method of claiming deduction

(i) In general

A State agency shall offer an eligible household under

subparagraph (A) a method of claiming a deduction for

recurring medical expenses that are initially verified under

the excess medical expense deduction in lieu of submitting

information on, or verification of, actual expenses on a

monthly basis.

(ii) Method

The method described in clause (i) shall -

(I) be designed to minimize the burden for the eligible

elderly or disabled household member choosing to deduct the

recurrent medical expenses of the member pursuant to the

method;

(II) rely on reasonable estimates of the expected medical

expenses of the member for the certification period

(including changes that can be reasonably anticipated based

on available information about the medical condition of the

member, public or private medical insurance coverage, and

the current verified medical expenses incurred by the

member); and

(III) not require further reporting or verification of a

change in medical expenses if such a change has been

anticipated for the certification period.

(6) Excess shelter expense deduction

(A) In general

A household shall be entitled, with respect to expenses other

than expenses paid on behalf of the household by a third party,

to an excess shelter expense deduction to the extent that the

monthly amount expended by a household for shelter exceeds an

amount equal to 50 percent of monthly household income after

all other applicable deductions have been allowed.

(B) Maximum amount of deduction

In the case of a household that does not contain an elderly

or disabled individual, in the 48 contiguous States and the

District of Columbia, Alaska, Hawaii, Guam, and the Virgin

Islands of the United States, the excess shelter expense

deduction shall not exceed -

(i) for the period beginning on August 22, 1996, and ending

on December 31, 1996, $247, $429, $353, $300, and $182 per

month, respectively;

(ii) for the period beginning on January 1, 1997, and

ending on September 30, 1998, $250, $434, $357, $304, and

$184 per month, respectively;

(iii) for fiscal year 1999, $275, $478, $393, $334, and

$203 per month, respectively;

(iv) for fiscal year 2000, $280, $483, $398, $339, and $208

per month, respectively;

(v) for fiscal year 2001, $340, $543, $458, $399, and $268

per month, respectively; and

(vi) for fiscal year 2002 and each subsequent fiscal year,

the applicable amount during the preceding fiscal year, as

adjusted to reflect changes for the 12-month period ending

the preceding November 30 in the Consumer Price Index for All

Urban Consumers published by the Bureau of Labor Statistics

of the Department of Labor.

(C) Standard utility allowance

(i) In general

In computing the excess shelter expense deduction, a State

agency may use a standard utility allowance in accordance

with regulations promulgated by the Secretary, except that a

State agency may use an allowance that does not fluctuate

within a year to reflect seasonal variations.

(ii) Restrictions on heating and cooling expenses

An allowance for a heating or cooling expense may not be

used in the case of a household that -

(I) does not incur a heating or cooling expense, as the

case may be;

(II) does incur a heating or cooling expense but is

located in a public housing unit that has central utility

meters and charges households, with regard to the expense,

only for excess utility costs; or

(III) shares the expense with, and lives with, another

individual not participating in the food stamp program,

another household participating in the food stamp program,

or both, unless the allowance is prorated between the

household and the other individual, household, or both.

(iii) Mandatory allowance

(I) In general

A State agency may make the use of a standard utility

allowance mandatory for all households with qualifying

utility costs if -

(aa) the State agency has developed 1 or more standards

that include the cost of heating and cooling and 1 or

more standards that do not include the cost of heating

and cooling; and

(bb) the Secretary finds (without regard to subclause

(III)) that the standards will not result in an increased

cost to the Secretary.

(II) Household election

A State agency that has not made the use of a standard

utility allowance mandatory under subclause (I) shall allow

a household to switch, at the end of a certification

period, between the standard utility allowance and a

deduction based on the actual utility costs of the

household.

(III) Inapplicability of certain restrictions

Clauses (ii)(II) and (ii)(III) shall not apply in the

case of a State agency that has made the use of a standard

utility allowance mandatory under subclause (I).

(iv) Availability of allowance to recipients of energy

assistance

(I) In general

Subject to subclause (II), if a State agency elects to

use a standard utility allowance that reflects heating or

cooling costs, the standard utility allowance shall be made

available to households receiving a payment, or on behalf

of which a payment is made, under the Low-Income Home

Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or

other similar energy assistance program, if the household

still incurs out-of-pocket heating or cooling expenses in

excess of any assistance paid on behalf of the household to

an energy provider.

(II) Separate allowance

A State agency may use a separate standard utility

allowance for households on behalf of which a payment

described in subclause (I) is made, but may not be required

to do so.

(III) States not electing to use separate allowance

A State agency that does not elect to use a separate

allowance but makes a single standard utility allowance

available to households incurring heating or cooling

expenses (other than a household described in subclause (I)

or (II) of clause (ii)) may not be required to reduce the

allowance due to the provision (directly or indirectly) of

assistance under the Low-Income Home Energy Assistance Act

of 1981 (42 U.S.C. 8621 et seq.).

(IV) Proration of assistance

For the purpose of the food stamp program, assistance

provided under the Low-Income Home Energy Assistance Act of

1981 (42 U.S.C. 8621 et seq.) shall be considered to be

prorated over the entire heating or cooling season for

which the assistance was provided.

(D) Homeless households

(i) Alternative deduction

In lieu of the deduction provided under subparagraph (A), a

State agency may elect to allow a household in which all

members are homeless individuals, but that is not receiving

free shelter throughout the month, to receive a deduction of

$143 per month.

(ii) Ineligibility

The State agency may make a household with extremely low

shelter costs ineligible for the alternative deduction under

clause (i).

(f) Calculation of household income; prospective or retrospective

accounting basis; consistency

(1)(A) Household income for those households that, by contract

for other than an hourly or piecework basis or by self-employment,

derive their annual income in a period of time shorter than one

year shall be calculated by averaging such income over a

twelve-month period. Notwithstanding the preceding sentence,

household income resulting from the self-employment of a member in

a farming operation, who derives income from such farming operation

and who has irregular expenses to produce such income, may, at the

option of the household, be calculated by averaging such income and

expenses over a 12-month period. Notwithstanding the first

sentence, if the averaged amount does not accurately reflect the

household's actual monthly circumstances because the household has

experienced a substantial increase or decrease in business

earnings, the State agency shall calculate the self-employment

income based on anticipated earnings.

(B) Household income for those households that receive

nonexcluded income of the type described in subsection (d)(3) of

this section shall be calculated by averaging such income over the

period for which it is received.

(C) Simplified determination of deductions. -

(i) In general. - Except as provided in clause (ii), for the

purposes of subsection (e) of this section, a State agency may

elect to disregard until the next recertification of eligibility

under section 2020(e)(4) of this title 1 or more types of changes

in the circumstances of a household that affect the amount of

deductions the household may claim under subsection (e) of this

section.

(ii) Changes that may not be disregarded. - Under clause (i), a

State agency may not disregard -

(I) any reported change of residence; or

(II) under standards prescribed by the Secretary, any change

in earned income.

(2)(A) Except as provided in subparagraphs (B), (C), and (D),

households shall have their incomes calculated on a prospective

basis, as provided in paragraph (3)(A), or, at the option of the

State agency, on a retrospective basis, as provided in paragraph

(3)(B).

(B) In the case of the first month, or at the option of the

State, the first and second months, during a continuous period in

which a household is certified, the State agency shall determine

eligibility and the amount of benefits on the basis of the

household's income and other relevant circumstances in such first

or second month.

(C) Households specified in clauses (i), (ii), and (iii) of

section 2015(c)(1)(A) of this title shall have their income

calculated on a prospective basis, as provided in paragraph (3)(A).

(D) Except as provided in subparagraph (B), households required

to submit monthly reports of their income and household

circumstances under section 2015(c)(1) of this title shall have

their income calculated on a retrospective basis, as provided in

paragraph (3)(B).

(3)(A) Calculation of household income on a prospective basis is

the calculation of income on the basis of the income reasonably

anticipated to be received by the household during the period for

which eligibility or benefits are being determined. Such

calculation shall be made in accordance with regulations prescribed

by the Secretary which shall provide for taking into account both

the income reasonably anticipated to be received by the household

during the period for which eligibility or benefits are being

determined and the income received by the household during the

preceding thirty days.

(B) Calculation of household income on a retrospective basis is

the calculation of income for the period for which eligibility or

benefits are being determined on the basis of income received in a

previous period. Such calculation shall be made in accordance with

regulations prescribed by the Secretary which may provide for the

determination of eligibility on a prospective basis in some or all

cases in which benefits are calculated under this paragraph. Such

regulations shall provide for supplementing the initial allotments

of newly applying households in those cases in which the

determination of income under this paragraph causes serious

hardship.

(4) In promulgating regulations under this subsection, the

Secretary shall consult with the Secretary of Health and Human

Services in order to assure that, to the extent feasible and

consistent with the purposes of this chapter and the Social

Security Act (42 U.S.C. 301 et seq.), the income of households

receiving benefits under this chapter and title IV-A of the Social

Security Act (42 U.S.C. 601 et seq.) is calculated on a comparable

basis under this chapter and the Social Security Act. The Secretary

is authorized, upon the request of a State agency, to waive any of

the provisions of this subsection (except the provisions of

paragraph (2)(A)) to the extent necessary to permit the State

agency to calculate income for purposes of this chapter on the same

basis that income is calculated under title IV-A of the Social

Security Act in that State.

(g) Allowable financial resources which eligible household may own

(1) The Secretary shall prescribe the types and allowable amounts

of financial resources (liquid and nonliquid assets) an eligible

household may own, and shall, in so doing, assure that a household

otherwise eligible to participate in the food stamp program will

not be eligible to participate if its resources exceed $2,000, or,

in the case of a household which consists of or includes an elderly

or disabled member, if its resources exceed $3,000.

(2) Included assets. -

(A) In general. - Subject to the other provisions of this

paragraph, the Secretary shall, in prescribing inclusions in, and

exclusions from, financial resources, follow the regulations in

force as of June 1, 1982 (other than those relating to licensed

vehicles and inaccessible resources).

(B) Additional included assets. - The Secretary shall include

in financial resources -

(i) any boat, snowmobile, or airplane used for recreational

purposes;

(ii) any vacation home;

(iii) any mobile home used primarily for vacation purposes;

(iv) subject to subparagraphs (C) and (D), any licensed

vehicle that is used for household transportation or to obtain

or continue employment to the extent that the fair market value

of the vehicle exceeds $4,650; and

(v) any savings or retirement account (including an

individual account), regardless of whether there is a penalty

for early withdrawal.

(C) Excluded vehicles. - A vehicle (and any other property,

real or personal, to the extent the property is directly related

to the maintenance or use of the vehicle) shall not be included

in financial resources under this paragraph if the vehicle is -

(i) used to produce earned income;

(ii) necessary for the transportation of a physically

disabled household member; or

(iii) depended on by a household to carry fuel for heating or

water for home use and provides the primary source of fuel or

water, respectively, for the household.

(D) Alternative vehicle allowance. - If the vehicle allowance

standards that a State agency uses to determine eligibility for

assistance under the State program funded under part A of title

IV of the Social Security Act (42 U.S.C. 601 et seq.) would

result in a lower attribution of resources to certain households

than under subparagraph (B)(iv), in lieu of applying subparagraph

(B)(iv), the State agency may elect to apply the State vehicle

allowance standards to all households that would incur a lower

attribution of resources under the State vehicle allowance

standards.

(3) The Secretary shall exclude from financial resources the

value of a burial plot for each member of a household and nonliquid

resources necessary to allow the household to carry out a plan for

self-sufficiency approved by the State agency that constitutes

adequate participation in an employment and training program under

section 2015(d) of this title. The Secretary shall also exclude

from financial resources any earned income tax credits received by

any member of the household for a period of 12 months from receipt

if such member was participating in the food stamp program at the

time the credits were received and participated in such program

continuously during the 12-month period.

(4) In the case of farm property (including land, equipment, and

supplies) that is essential to the self-employment of a household

member in a farming operation, the Secretary shall exclude from

financial resources the value of such property until the expiration

of the 1-year period beginning on the date such member ceases to be

self-employed in farming.

(5) The Secretary shall promulgate rules by which State agencies

shall develop standards for identifying kinds of resources that, as

a practical matter, the household is unlikely to be able to sell

for any significant return because the household's interest is

relatively slight or because the cost of selling the household's

interest would be relatively great. Resources so identified shall

be excluded as inaccessible resources. A resource shall be so

identified if its sale or other disposition is unlikely to produce

any significant amount of funds for the support of the household.

The Secretary shall not require the State agency to require

verification of the value of a resource to be excluded under this

paragraph unless the State agency determines that the information

provided by the household is questionable.

(6) Exclusion of types of financial resources not considered

under certain other federal programs. -

(A) In general. - Subject to subparagraph (B), a State agency

may, at the option of the State agency, exclude from financial

resources under this subsection any types of financial resources

that the State agency does not consider when determining

eligibility for -

(i) cash assistance under a program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.); or

(ii) medical assistance under section 1931 of the Social

Security Act (42 U.S.C. 1396u-1).

(B) Limitations. - Except to the extent that any of the types

of resources specified in clauses (i) through (iv) are excluded

under another paragraph of this subsection, subparagraph (A) does

not authorize a State agency to exclude -

(i) cash;

(ii) licensed vehicles;

(iii) amounts in any account in a financial institution that

are readily available to the household; or

(iv) any other similar type of resource the inclusion in

financial resources of which the Secretary determines by

regulation to be essential to equitable determinations of

eligibility under the food stamp program.

(h) Temporary emergency standards of eligibility; Food Stamp

Disaster Task Force; direct assistance to State and local

officials

(1) The Secretary shall, after consultation with the official

empowered to exercise the authority provided for by sections 5170a

and 5192 of title 42, establish temporary emergency standards of

eligibility for the duration of the emergency for households who

are victims of a disaster which disrupts commercial channels of

food distribution, if such households are in need of temporary food

assistance and if commercial channels of food distribution have

again become available to meet the temporary food needs of such

households. Such standards as are prescribed for individual

emergencies may be promulgated without regard to section 2013(c) of

this title or the procedures set forth in section 553 of title 5.

(2) The Secretary shall -

(A) establish a Food Stamp Disaster Task Force to assist States

in implementing and operating the disaster program and the

regular food stamp program in the disaster area; and

(B) if the Secretary, in the Secretary's discretion, determines

that it is cost-effective to send members of the Task Force to

the disaster area, the Secretary shall send them to such area as

soon as possible after the disaster occurs to provide direct

assistance to State and local officials.

(3)(A) The Secretary shall provide, by regulation, for emergency

allotments to eligible households to replace food destroyed in a

disaster. The regulations shall provide for replacement of the

value of food actually lost up to a limit approved by the Secretary

not greater than the applicable maximum monthly allotment for the

household size.

(B) The Secretary shall adjust issuance methods and reporting and

other application requirements to be consistent with what is

practicable under actual conditions in the affected area. In

making this adjustment, the Secretary shall consider the

availability of the State agency's offices and personnel, any

conditions that make reliance on electronic benefit transfer

systems described in section 2016(i) of this title impracticable,

and any damage to or disruption of transportation and communication

facilities.

(i) Attribution of income and resources to sponsored aliens;

coverage, computations, etc.

(1) For purposes of determining eligibility for and the amount of

benefits under this chapter for an individual who is an alien as

described in section 2015(f)(2)(B) of this title, the income and

resources of any person who as a sponsor of such individual's entry

into the United States executed an affidavit of support or similar

agreement with respect to such individual, and the income and

resources of the sponsor's spouse if such spouse is living with the

sponsor, shall be deemed to be the income and resources of such

individual for a period of three years after the individual's entry

into the United States. Any such income deemed to be income of such

individual shall be treated as unearned income of such individual.

(2)(A) The amount of income of a sponsor, and the sponsor's

spouse if living with the sponsor, which shall be deemed to be the

unearned income of an alien for any year shall be determined as

follows:

(i) the total yearly rate of earned and unearned income of such

sponsor, and such sponsor's spouse if such spouse is living with

the sponsor, shall be determined for such year under rules

prescribed by the Secretary;

(ii) the amount determined under clause (i) of this

subparagraph shall be reduced by an amount equal to the income

eligibility standard as determined under subsection (c) of this

section for a household equal in size to the sponsor, the

sponsor's spouse if living with the sponsor, and any persons

dependent upon or receiving support from the sponsor or the

sponsor's spouse if the spouse is living with the sponsor; and

(iii) the monthly income attributed to such alien shall be

one-twelfth of the amount calculated under clause (ii) of this

subparagraph.

(B) The amount of resources of a sponsor, and the sponsor's

spouse if living with the sponsor, which shall be deemed to be the

resources of an alien for any year shall be determined as follows:

(i) the total amount of the resources of such sponsor and such

sponsor's spouse if such spouse is living with the sponsor shall

be determined under rules prescribed by the Secretary;

(ii) the amount determined under clause (i) of this

subparagraph shall be reduced by $1,500; and

(iii) the resources determined under clause (ii) of this

subparagraph shall be deemed to be resources of such alien in

addition to any resources of such alien.

(C)(i) Any individual who is an alien shall, during the period of

three years after entry into the United States, in order to be an

eligible individual or eligible spouse for purposes of this

chapter, be required to provide to the State agency such

information and documentation with respect to the alien's sponsor

and sponsor's spouse as may be necessary in order for the State

agency to make any determination required under this section, and

to obtain any cooperation from such sponsor necessary for any such

determination. Such alien shall also be required to provide such

information and documentation which such alien or the sponsor

provided in support of such alien's immigration application as the

State agency may request.

(ii) The Secretary shall enter into agreements with the Secretary

of State and the Attorney General whereby any information available

to such persons and required in order to make any determination

under this section will be provided by such persons to the

Secretary, and whereby such persons shall inform any sponsor of an

alien, at the time such sponsor executes an affidavit of support or

similar agreement, of the requirements imposed by this section.

(D) Any sponsor of an alien, and such alien, shall be jointly and

severably liable for an amount equal to any overpayment made to

such alien during the period of three years after such alien's

entry into the United States, on account of such sponsor's failure

to provide correct information under the provisions of this

section, except where such sponsor was without fault, or where good

cause for such failure existed. Any such overpayment which is not

repaid shall be recovered in accordance with the provisions of

section 2022(b)(2) (FOOTNOTE 1) of this title.

(FOOTNOTE 1) See References in Text note below.

(E) The provisions of this subsection shall not apply with

respect to any alien who is a member of the sponsor's household, as

defined in section 2012(i) of this title, or to any alien who is

under 18 years of age.

(j) Resource exemption for otherwise exempt households

Notwithstanding subsections (a) through (i) of this section, a

State agency shall consider a household member who receives

supplemental security income benefits under title XVI of the Social

Security Act (42 U.S.C. 1381 et seq.), aid to the aged, blind, or

disabled under title I, II, X, XIV, or XVI of such Act (42 U.S.C.

301 et seq., 401 et seq., 1201 et seq., 1351 et seq., 1381 et

seq.), or who receives benefits under a State program funded under

part A of title IV of the Act (42 U.S.C. 601 et seq.) to have

satisfied the resource limitations prescribed under subsection (g)

of this section.

(k) Assistance to third parties included; educational benefits;

exceptions

(1) For purposes of subsection (d)(1) of this section, except as

provided in paragraph (2), assistance provided to a third party on

behalf of a household by a State or local government shall be

considered money payable directly to the household if the

assistance is provided in lieu of -

(A) a regular benefit payable to the household for living

expenses under a State program funded under part A of title IV of

the Social Security Act (42 U.S.C. 601 et seq.); or

(B) a benefit payable to the household for housing expenses

under -

(i) a State or local general assistance program; or

(ii) another basic assistance program comparable to general

assistance (as determined by the Secretary).

(2) Paragraph (1) shall not apply to -

(A) medical assistance;

(B) child care assistance;

(C) a payment or allowance described in subsection (d)(11) of

this section;

(D) assistance provided by a State or local housing authority;

(E) emergency assistance for migrant or seasonal farmworker

households during the period such households are in the job

stream;

(F) emergency and special assistance, to the extent excluded in

regulations prescribed by the Secretary; or

(G) assistance provided to a third party on behalf of a

household under a State or local general assistance program, or

another local basic assistance program comparable to general

assistance (as determined by the Secretary), if, under State law,

no assistance under the program may be provided directly to the

household in the form of a cash payment.

(3) For purposes of subsection (d)(1) of this section,

educational loans on which payment is deferred, grants,

scholarships, fellowships, veterans' educational benefits, and the

like that are provided to a third party on behalf of a household

for living expenses shall be treated as money payable directly to

the household.

(4) Third party energy assistance payments. -

(A) Energy assistance payments. - For purposes of subsection

(d)(1) of this section, a payment made under a State law (other

than a law referred to in paragraph (2)(H)) (FOOTNOTE 1) to

provide energy assistance to a household shall be considered

money payable directly to the household.

(B) Energy assistance expenses. - For purposes of subsection

(e)(6) of this section, an expense paid on behalf of a household

under a State law to provide energy assistance shall be

considered an out-of-pocket expense incurred and paid by the

household.

(l) Earnings to participants of on-the-job training programs;

exception

Notwithstanding section 181(a)(2) of the Workforce Investment Act

of 1998 (29 U.S.C. 2931(a)(2)), earnings to individuals

participating in on-the-job training under title I of the Workforce

Investment Act of 1998 (29 U.S.C. 2801 et seq.) shall be considered

earned income for purposes of the food stamp program, except for

dependents less than 19 years of age.

(m) Simplified calculation of income for self-employed

(1) In general

Not later than 1 year after August 22, 1996, the Secretary

shall establish a procedure by which a State may submit a method,

designed to not increase Federal costs, for the approval of the

Secretary, that the Secretary determines will produce a

reasonable estimate of income excluded under subsection (d)(9) of

this section in lieu of calculating the actual cost of producing

self-employment income.

(2) Inclusive of all types of income or limited types of income

The method submitted by a State under paragraph (1) may allow a

State to estimate income for all types of self-employment income

or may be limited to 1 or more types of self-employment income.

(3) Differences for different types of income

The method submitted by a State under paragraph (1) may differ

for different types of self-employment income.

(n) State options to simplify determination of child support

payments

Regardless of whether a State agency elects to provide a

deduction under subsection (e)(4) of this section, the Secretary

shall establish simplified procedures to allow State agencies, at

the option of the State agencies, to determine the amount of any

legally obligated child support payments made, including procedures

to allow the State agency to rely on information from the agency

responsible for implementing the program under part D of title IV

of the Social Security Act (42 U.S.C. 651 et seq.) concerning

payments made in prior months in lieu of obtaining current

information from the households.

-SOURCE-

(Pub. L. 88-525, Sec. 5, Aug. 31, 1964, 78 Stat. 704; Pub. L.

91-671, Sec. 4, Jan. 11, 1971, 84 Stat. 2049; Pub. L. 93-86, Sec.

3(d), (e), (g), (h), Aug. 10, 1973, 87 Stat. 246, 247; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 962; Pub.

L. 96-58, Sec. 2, Aug. 14, 1979, 93 Stat. 390; Pub. L. 96-223,

title III, Sec. 313(c)(2), Apr. 2, 1980, 94 Stat. 299; Pub. L.

96-249, title I, Sec. 102-108, 112, 136-138, May 26, 1980, 94 Stat.

357-359, 361, 369, 370; Pub. L. 97-35, title I, Sec. 104(a),

105-107, 115, 116(a)(1), title XXVI, Sec. 2611, Aug. 13, 1981, 95

Stat. 358-361, 364, 902; Pub. L. 97-98, title XIII, Sec. 1305-1309,

Dec. 22, 1981, 95 Stat. 1283, 1284; Pub. L. 97-253, title I, Sec.

143(b), 145(c), (d), 146-152(a), 153, 189(a), Sept. 8, 1982, 96

Stat. 773-776, 787; Pub. L. 98-204, Sec. 4, Dec. 2, 1983, 97 Stat.

1385; Pub. L. 99-198, title XV, Sec. 1507(a)(1), 1508-1513(a),

1514, 1515, Dec. 23, 1985, 99 Stat. 1567-1572; Pub. L. 99-500, Sec.

101(a) (title VI, Sec. 638(a)), Oct. 18, 1986, 100 Stat. 1783,

1783-34, and Pub. L. 99-591, Sec. 101(a) (title VI, Sec. 638(a)),

Oct. 30, 1986, 100 Stat. 3341, 3341-34; Pub. L. 100-77, title VIII,

Sec. 803(a), 804(a), 805(a), 806(a), 807(a), July 22, 1987, 101

Stat. 534, 535; Pub. L. 100-232, Sec. 2(a), Jan. 5, 1988, 101 Stat.

1566; Pub. L. 100-387, title V, Sec. 501(a), Aug. 11, 1988, 102

Stat. 960; Pub. L. 100-435, title II, Sec. 201, 202(a), title III,

Sec. 340-343, 351, title IV, Sec. 402, 403, 404(f), Sept. 19, 1988,

102 Stat. 1655, 1656, 1663-1665, 1668; Pub. L. 100-707, title I,

Sec. 109(d), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 101-624, title

XVII, Sec. 1714-1718(a), 1719-1722, 1726(b)(2), Nov. 28, 1990, 104

Stat. 3783-3787; Pub. L. 102-40, title IV, Sec. 402(d)(2), May 7,

1991, 105 Stat. 239; Pub. L. 102-237, title IX, Sec. 902-906,

941(2), Dec. 13, 1991, 105 Stat. 1884, 1885, 1892; Pub. L. 102-265,

Sec. 1(a), Mar. 26, 1992, 106 Stat. 90; Pub. L. 102-367, title VII,

Sec. 702(b), Sept. 7, 1992, 106 Stat. 1113; Pub. L. 103-66, title

XIII, Sec. 13911-13915, 13921, 13922(a), 13923, 13924, Aug. 10,

1993, 107 Stat. 673-675; Pub. L. 103-225, title I, Sec. 101(b)(2),

Mar. 25, 1994, 108 Stat. 107; Pub. L. 104-193, title I, Sec.

109(a), title VIII, Sec. 806-809(a), 810-812, Aug. 22, 1996, 110

Stat. 2169, 2309, 2313, 2314; Pub. L. 105-277, div. A, Sec. 101(f)

(title VIII, Sec. 405(d)(2)(A), (f)(2)(A)), Oct. 21, 1998, 112

Stat. 2681-337, 2681-418, 2681-429; Pub. L. 106-387, Sec. 1(a)

(title VIII, Sec. 846(a), 847(a)), Oct. 28, 2000, 114 Stat. 1549,

1549A-65, 1549A-66; Pub. L. 107-171, title IV, Sec. 4101-4108(a),

4112(b)(2), 4401(b)(2)(C), May 13, 2002, 116 Stat. 305-309, 313,

333.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (a), (d)(5),

(11), (12), (16), (18), (f)(4), (g)(2)(D), (6)(A)(i), (j),

(k)(1)(A), and (n), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as

amended. Titles I, II, IV, X, XIV, XVI, and XIX of the Social

Security Act are classified generally to subchapters I (Sec. 301 et

seq.), II (Sec. 401 et seq.), IV (Sec. 601 et seq.), X (Sec. 1201

et seq.), XIV (Sec. 1351 et seq.), XVI (Sec. 1381 et seq.), and XIX

(Sec. 1396 et seq.), respectively, of chapter 7 of Title 42, The

Public Health and Welfare. Parts A and D of title IV of the Act are

classified generally to parts A (Sec. 601 et seq.) and D (Sec. 651

et seq.) of subchapter IV of chapter 7 of Title 42. For complete

classification of this Act to the Code, see section 1305 of Title

42 and Tables.

The Low-Income Home Energy Assistance Act of 1981, referred to in

subsec. (e)(7)(C)(iv), is title XXVI of Pub. L. 97-35, Aug. 13,

1981, 95 Stat. 893, as amended, which is classified generally to

subchapter II (Sec. 8621 et seq.) of chapter 94 of Title 42. For

complete classification of this Act to the Code, see Short Title

note set out under section 8621 of Title 42 and Tables.

Section 2022(b) of this title, referred to in subsec. (i)(2)(D),

was amended generally by Pub. L. 104-193, title VIII, Sec.

844(a)(1), Aug. 22, 1996, 110 Stat. 2332, and, as so amended,

provisions formerly appearing in section 2022(b)(2) of this title

now appear in section 2022(b)(1) of this title.

Paragraph (2)(H), referred to in subsec. (k)(4)(A), meaning par.

(2)(H) of subsec. (k), was redesignated par. (2)(G) by Pub. L.

104-193, title VIII, Sec. 811(2), Aug. 22, 1996, 110 Stat. 2314.

The Workforce Investment Act of 1998, referred to in subsec. (l),

is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as amended. Title

I of the Act is classified principally to chapter 30 (Sec. 2801 et

seq.) of Title 29, Labor. For complete classification of this Act

to the Code, see Short Title note set out under section 9201 of

Title 20, Education, and Tables.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

-MISC3-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 4112(b)(2), substituted

''section 2012(i)(4) of this title'' for ''the third sentence of

section 2012(i) of this title'' in two places.

Subsec. (d)(6). Pub. L. 107-171, Sec. 4101(a), inserted at end

''and child support payments made by a household member to or for

an individual who is not a member of the household if the household

member is legally obligated to make the payments,''.

Subsec. (d)(16) to (18). Pub. L. 107-171, Sec. 4102, added pars.

(16) to (18).

Subsec. (e)(1). Pub. L. 107-171, Sec. 4103, added par. (1) and

struck out heading and text of former par. (1). Text read as

follows: ''The Secretary shall allow a standard deduction for each

household in the 48 contiguous States and the District of Columbia,

Alaska, Hawaii, Guam, and the Virgin Islands of the United States

of $134, $229, $189, $269, and $118, respectively.''

Subsec. (e)(4). Pub. L. 107-171, Sec. 4101(b)(1), added par. (4)

and struck out heading and text of former par. (4). Text read as

follows:

''(A) In general. - A household shall be entitled to a deduction

for child support payments made by a household member to or for an

individual who is not a member of the household if the household

member is legally obligated to make the payments.

''(B) Methods for determining amount. - The Secretary may

prescribe by regulation the methods, including calculation on a

retrospective basis, that a State agency shall use to determine the

amount of the deduction for child support payments.''

Subsec. (e)(5), (6). Pub. L. 107-171, Sec. 4105(b)(1),

redesignated pars. (6) and (7) as (5) and (6), respectively, and

struck out heading and text of former par. (5). Text read as

follows: ''Under rules prescribed by the Secretary, a State agency

may develop a standard homeless shelter allowance, which shall not

exceed $143 per month, for such expenses as may reasonably be

expected to be incurred by households in which all members are

homeless individuals but are not receiving free shelter throughout

the month. A State agency that develops the allowance may use the

allowance in determining eligibility and allotments for the

households. The State agency may make a household with extremely

low shelter costs ineligible for the allowance.''

Subsec. (e)(7). Pub. L. 107-171, Sec. 4105(b)(1)(B), redesignated

par. (7) as (6). Former par. (6) redesignated (5).

Subsec. (e)(7)(C)(iii)(I)(bb). Pub. L. 107-171, Sec. 4104(1),

inserted ''(without regard to subclause (III))'' after ''Secretary

finds''.

Subsec. (e)(7)(C)(iii)(III). Pub. L. 107-171, Sec. 4104(2), added

subcl. (III).

Subsec. (e)(7)(D). Pub. L. 107-171, Sec. 4105(a), added subpar.

(D).

Subsec. (f)(1)(C). Pub. L. 107-171, Sec. 4106, added subpar. (C).

Subsec. (g)(1). Pub. L. 107-171, Sec. 4107(1), substituted ''an

elderly or disabled member'' for ''a member who is 60 years of age

or older''.

Subsec. (g)(6). Pub. L. 107-171, Sec. 4107(2), added par. (6).

Subsec. (h)(3)(B). Pub. L. 107-171, Sec. 4108(a), inserted

''issuance methods and'' after ''Secretary shall adjust'' in first

sentence and inserted '', any conditions that make reliance on

electronic benefit transfer systems described in section 2016(i) of

this title impracticable,'' after ''personnel'' in second sentence.

Subsec. (i)(2)(E). Pub. L. 107-171, Sec. 4401(b)(2)(C), inserted

'', or to any alien who is under 18 years of age'' before period at

end.

Subsec. (k)(4)(B). Pub. L. 107-171, Sec. 4105(b)(2), substituted

''subsection (e)(6) of this section'' for ''subsection (e)(7) of

this section''.

Subsec. (n). Pub. L. 107-171, Sec. 4101(b)(2), added subsec. (n).

2000 - Subsec. (e)(7)(B)(iii) to (vi). Pub. L. 106-387, Sec. 1(a)

(title VIII, Sec. 846(a)), added cls. (iii) to (vi) and struck out

former cls. (iii) and (iv) which read as follows:

''(iii) for fiscal years 1999 and 2000, $275, $478, $393, $334,

and $203 per month, respectively; and

''(iv) for fiscal year 2001 and each subsequent fiscal year,

$300, $521, $429, $364, and $221 per month, respectively.''

Subsec. (g)(2)(B)(iv). Pub. L. 106-387, Sec. 1(a) (title VIII,

Sec. 847(a)(1)), substituted ''subparagraphs (C) and (D)'' for

''subparagraph (C)'' and ''to the extent that the fair market value

of the vehicle exceeds $4,650; and'' for ''to the extent that the

fair market value of the vehicle exceeds $4,600 through September

30, 1996, and $4,650 beginning October 1, 1996; and''.

Subsec. (g)(2)(D). Pub. L. 106-387, Sec. 1(a) (title VIII, Sec.

847(a)(2)), added subpar. (D).

1998 - Subsec. (l). Pub. L. 105-277, Sec. 101(f) (title VIII,

Sec. 405(f)(2)(A)), substituted ''Notwithstanding section 181(a)(2)

of the Workforce Investment Act of 1998, earnings to individuals

participating in on-the-job training under title I of the Workforce

Investment Act of 1998'' for ''Notwithstanding section 1552(b) of

title 29 or section 181(a)(2) of the Workforce Investment Act of

1998, earnings to individuals participating in on-the-job training

programs under section 1604(b)(1)(C) or 1644(c)(1)(A) of title 29

or in on-the-job training under title I of the Workforce Investment

Act of 1998''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec. 405(d)(2)(A)),

substituted ''Notwithstanding section 1552(b) of title 29 or

section 181(a)(2) of the Workforce Investment Act of 1998, earnings

to individuals participating in on-the-job training programs under

section 1604(b)(1)(C) or 1644(c)(1)(A) of title 29 or in on-the-job

training under title I of the Workforce Investment Act of 1998''

for ''Notwithstanding section 1552(b) of title 29, earnings to

individuals participating in on-the-job training programs under

section 1604(b)(1)(C) or section 1644(c)(1)(A) of title 29''.

1996 - Subsec. (a). Pub. L. 104-193, Sec. 109(a)(1), substituted

''program funded under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.)'' for ''plan approved under part A of

title IV of the Social Security Act''.

Subsec. (b). Pub. L. 104-193, Sec. 806, inserted heading and

substituted ''Except as otherwise provided in this chapter, the

Secretary'' for ''The Secretary''.

Subsec. (d)(5). Pub. L. 104-193, Sec. 109(a)(2)(A), substituted

''assistance under a State program funded'' for ''assistance to

families with dependent children''.

Subsec. (d)(7). Pub. L. 104-193, Sec. 807, substituted ''17'' for

''21''.

Subsec. (d)(11). Pub. L. 104-193, Sec. 808(a), added par. (11)

and struck out former par. (11) which read as follows: ''any

payments or allowances made for the purpose of providing energy

assistance (A) under any Federal law, or (B) under any State or

local laws, designated by the State or local legislative body

authorizing such payments or allowances as energy assistance, and

determined by the Secretary to be calculated as if provided by the

State or local government involved on a seasonal basis for an

aggregate period not to exceed six months in any year even if such

payments or allowances (including tax credits) are not provided on

a seasonal basis because it would be administratively infeasible or

impracticable to do so,''.

Subsec. (d)(13) to (16). Pub. L. 104-193, Sec. 109(a)(2)(B),

redesignated pars. (14) to (16) as (13) to (15), respectively, and

struck out former par. (13) which read as follows: ''at the option

of a State agency and subject to subsection (m) of this section,

child support payments that are excluded under section

402(a)(8)(A)(vi) of the Social Security Act (42 U.S.C.

602(a)(8)(A)(vi)),''.

Subsec. (e). Pub. L. 104-193, Sec. 809(a), added subsec. (e) and

struck out former subsec. (e) which provided for deductions in

computing household income for purposes of determining eligibility

and benefit levels for households containing an elderly or disabled

member and determining benefit levels only for all other

households.

Subsec. (g)(2). Pub. L. 104-193, Sec. 810, added par. (2) and

struck out former par. (2) which read as follows: ''The Secretary

shall, in prescribing inclusions in, and exclusions from, financial

resources, follow the regulations in force as of June 1, 1982

(other than those relating to licensed vehicles and inaccessible

resources), and shall, in addition, include in financial resources

any boats, snowmobiles, and airplanes used for recreational

purposes, any vacation homes, any mobile homes used primarily for

vacation purposes, any licensed vehicle (other than one used to

produce earned income or that is necessary for transportation of a

physically disabled household member and any other property, real

or personal, to the extent that it is directly related to the

maintenance or use of such vehicle) used for household

transportation or used to obtain or continue employment to the

extent that the fair market value of any such vehicle exceeds a

level set by the Secretary, which shall be $4,500 through August

31, 1994, $4,550 beginning September 1, 1994, through September 30,

1995, $4,600 beginning October 1, 1995, through September 30, 1996,

and $5,000 beginning October 1, 1996, as adjusted on such date and

on each October 1 thereafter to reflect changes in the new car

component of the Consumer Price Index for All Urban Consumers

published by the Bureau of Labor Statistics for the 12-month period

ending on June 30 preceding the date of such adjustment and rounded

to the nearest $50, and, regardless of whether there is a penalty

for early withdrawal, any savings or retirement accounts (including

individual accounts). The Secretary shall exclude from financial

resources the value of a vehicle that a household depends upon to

carry fuel for heating or water for home use when such transported

fuel or water is the primary source of fuel or water for the

household.''

Subsec. (j). Pub. L. 104-193, Sec. 109(a)(3), substituted

''program funded under part A of title IV of the Act (42 U.S.C. 601

et seq.)'' for ''plan approved under part A of title IV of such Act

(42 U.S.C. 601 et seq.)''.

Subsec. (k)(1). Pub. L. 104-193, Sec. 808(b)(1), in subpar. (A),

substituted ''State program funded'' for ''State plan for aid to

families with dependent children approved'' and in subpar. (B),

struck out '', not including energy or utility-cost assistance,''

before ''under'' in introductory provisions.

Subsec. (k)(2)(C). Pub. L. 104-193, Sec. 808(b)(2), added subpar.

(C) and struck out former subpar. (C) which read as follows:

''energy assistance;''.

Subsec. (k)(2)(F) to (H). Pub. L. 104-193, Sec. 811, redesignated

subpars. (G) and (H) as (F) and (G), respectively, and struck out

former subpar. (F) which read as follows: ''housing assistance

payments made to a third party on behalf of the household residing

in transitional housing for the homeless;''.

Subsec. (k)(4). Pub. L. 104-193, Sec. 808(b)(3), added par. (4).

Subsec. (m). Pub. L. 104-193, Sec. 812, added subsec. (m).

Pub. L. 104-193, Sec. 109(a)(4), struck out subsec. (m) which

read as follows: ''If a State agency excludes payments from income

for purposes of the food stamp program under subsection (d)(13) of

this section, such State agency shall pay to the Federal

Government, in a manner prescribed by the Secretary, the cost of

any additional benefits provided to households in such State that

arise under such program as the result of such exclusion.''

1994 - Subsec. (f)(2)(C). Pub. L. 103-225 substituted ''clauses

(i), (ii), and (iii)'' for ''clauses (i), (ii), (iii), and (iv)''.

1993 - Subsec. (d)(7). Pub. L. 103-66, Sec. 13911, substituted

''who is an elementary or secondary school student, and who is 21

years of age or younger'' for ''who is a student, and who has not

attained his eighteenth birthday''.

Subsec. (e). Pub. L. 103-66, Sec. 13922(a), in cl. (1) of fourth

sentence, substituted ''$200 a month for each dependent child under

2 years of age and $175 a month for each other dependent'' for

''$160 a month for each dependent'', and struck out '', regardless

of the dependent's age,'' before ''when such care enables a

household member to accept''.

Pub. L. 103-66, Sec. 13912(a)(1), in fourth sentence struck out

'': Provided, That the amount of such excess shelter expense

deduction shall not exceed $164 a month in the forty-eight

contiguous States and the District of Columbia, and shall not

exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the

United States $285, $234, $199, and $121 a month, respectively,

adjusted on October 1, 1988, and on each October 1 thereafter, to

the nearest lower dollar increment to reflect changes in the

shelter, fuel, and utilities components of housing costs in the

Consumer Price Index for All Urban Consumers published by the

Bureau of Labor Statistics, as appropriately adjusted by the Bureau

of Labor Statistics after consultation with the Secretary, for the

twelve months ending the preceding June 30'' after ''deductions

have been allowed''.

Pub. L. 103-66, Sec. 13912(b)(2), which directed amendment of

subsec. (e), as amended by section 13912(b)(1) of Pub. L. 103-66,

by striking out the fifth and sixth sentences, could not be

executed in view of amendment by Pub. L. 104-193. See 1996

Amendment note above and Effective Date of 1993 Amendment note

below.

Pub. L. 103-66, Sec. 13912(b)(1), inserted new fifth and sixth

sentences: ''In the 15-month period ending September 30, 1995, such

excess shelter expense deduction shall not exceed $231 a month in

the 48 contiguous States and the District of Columbia, and shall

not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the

United States, $402, $330, $280, and $171 a month, respectively.

In the 15-month period ending December 31, 1996, such excess

shelter expense deduction shall not exceed $247 a month in the 48

contiguous States and the District of Columbia, and shall not

exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the

United States, $429, $353, $300, and $182 a month, respectively.''

Pub. L. 103-66, Sec. 13912(a)(2), in seventh sentence struck out

''under clause (2) of the preceding sentence'' after ''shelter

expense deduction''.

Pub. L. 103-66, Sec. 13921, inserted at end: ''Before determining

the excess shelter expense deduction, all households shall be

entitled to a deduction for child support payments made by a

household member to or for an individual who is not a member of the

household if such household member was legally obligated to make

such payments, except that the Secretary is authorized to prescribe

by regulation the methods, including calculation on a retrospective

basis, that State agencies shall use to determine the amount of the

deduction for child support payments.''

Subsec. (g)(2). Pub. L. 103-66, Sec. 13924, inserted at end:

''The Secretary shall exclude from financial resources the value of

a vehicle that a household depends upon to carry fuel for heating

or water for home use when such transported fuel or water is the

primary source of fuel or water for the household.''

Pub. L. 103-66, Sec. 13923, substituted ''a level set by the

Secretary, which shall be $4,500 through August 31, 1994, $4,550

beginning September 1, 1994, through September 30, 1995, $4,600

beginning October 1, 1995, through September 30, 1996, and $5,000

beginning October 1, 1996, as adjusted on such date and on each

October 1 thereafter to reflect changes in the new car component of

the Consumer Price Index for All Urban Consumers published by the

Bureau of Labor Statistics for the 12-month period ending on June

30 preceding the date of such adjustment and rounded to the nearest

$50'' for ''$4,500''.

Subsec. (g)(3). Pub. L. 103-66, Sec. 13913, inserted at end:

''The Secretary shall also exclude from financial resources any

earned income tax credits received by any member of the household

for a period of 12 months from receipt if such member was

participating in the food stamp program at the time the credits

were received and participated in such program continuously during

the 12-month period.''

Subsec. (k)(1)(B). Pub. L. 103-66, Sec. 13915, substituted

''housing expenses, not including energy or utility-cost

assistance,'' for ''living expenses''.

Subsec. (k)(2)(F). Pub. L. 103-66, Sec. 13914, amended subpar.

(F) generally. Prior to amendment, subpar. (F) read as follows:

''housing assistance payments made to a third party on behalf of a

household residing in transitional housing for the homeless in an

amount equal to 50 percent of the maximum shelter allowance

provided to families not residing in such transitional housing

under the States' plan for aid to families with dependent children

approved under part A of title IV of the Social Security Act (42

U.S.C. 601 et seq.), if the State agency calculates a shelter

allowance to be paid under the State plan separate and apart from

payments for other household needs even though it may be paid in

combination with other allowances in some cases;''.

1992 - Subsec. (d)(16). Pub. L. 102-265 substituted

''subparagraph (A)(iii) or (B)(iv) of section 1612(b)(4) of the

Social Security Act (42 U.S.C. 1382a(b)(4))'' for ''section

1612(b)(4)(B)(iv) of the Social Security Act (42 U.S.C.

1382a(b)(4)(B)(iv))''.

Subsec. (l). Pub. L. 102-367 substituted ''section 1604(b)(1)(C)

or section 1644(c)(1)(A) of title 29'' for ''section 1604(5) of

title 29''.

1991 - Subsec. (a). Pub. L. 102-237, Sec. 902, substituted

''based on income criteria comparable to or more restrictive than

those under subsection (c)(2) of this section, and not limited to

one-time emergency payments that cannot be provided for more than

one consecutive month,'' for ''appropriate for categorical

treatment''.

Subsec. (d)(2). Pub. L. 102-237, Sec. 941(2)(A), made technical

amendment to reference to subsection (f) of this section involving

corresponding provision of original act.

Subsec. (d)(3)(A). Pub. L. 102-237, Sec. 903(1)(A), substituted

''awarded to a household member enrolled'' for ''to the extent that

they are used for tuition and mandatory school fees (including the

rental or purchase of any equipment, materials, and supplies

required to pursue the course of study involved)''.

Subsec. (d)(3)(B). Pub. L. 102-237, Sec. 903(1)(B), inserted

''used for or'' after ''amount'' and substituted ''program, or

other grantor, for tuition and mandatory fees (including the rental

or purchase of any equipment, materials, and supplies related to

the pursuit of the course of study involved),'' for ''or program

for''.

Subsec. (d)(12). Pub. L. 102-40 substituted ''section 5312 of

title 38'' for ''section 3112 of title 38''.

Subsec. (d)(16). Pub. L. 102-237, Sec. 903(2), (3), added par.

(16).

Subsec. (g)(5). Pub. L. 102-237, Sec. 904, inserted at end ''A

resource shall be so identified if its sale or other disposition is

unlikely to produce any significant amount of funds for the support

of the household. The Secretary shall not require the State agency

to require verification of the value of a resource to be excluded

under this paragraph unless the State agency determines that the

information provided by the household is questionable.''

Subsec. (h)(1). Pub. L. 102-237, Sec. 941(2)(B), made technical

amendment to references to sections 5170a and 5192 of title 42 to

reflect change in reference to corresponding provision of original

act.

Subsec. (j). Pub. L. 102-237, Sec. 905, amended subsec. (j)

generally. Prior to amendment, subsec. (j) read as follows:

''Notwithstanding subsections (a) through (i) of this section, a

State agency may consider the resources of a household member who

receives supplemental security income benefits under title XVI of

the Social Security Act, aid to the aged, blind, or disabled under

title I, X, XIV, or XVI of the Social Security Act or who receives

benefits under a State plan approved under part A of title IV of

the Social Security Act (42 U.S.C. 601 et seq.) and whose income

does not exceed the applicable income standard of eligibility

described in subsection (c)(2) of this section to be exempt for

purposes of satisfying the resource limitations prescribed under

subsection (g) of this section if the resources are considered

exempt for purposes of such title.''

Subsec. (k)(2)(E). Pub. L. 102-237, Sec. 941(2)(C), realigned the

margin.

Subsec. (k)(2)(F). Pub. L. 102-237, Sec. 906, inserted before

semicolon at end '', if the State agency calculates a shelter

allowance to be paid under the State plan separate and apart from

payments for other household needs even though it may be paid in

combination with other allowances in some cases''.

1990 - Subsec. (a). Pub. L. 101-624, Sec. 1714(2), inserted after

second sentence ''Except for sections 2015, 2025(e)(1), and the

third sentence of section 2012(i) of this title, households in

which each member receives benefits under a State or local general

assistance program that complies with standards established by the

Secretary for ensuring that the program is appropriate for

categorical treatment shall be eligible to participate in the food

stamp program.''

Pub. L. 101-624, Sec. 1714(1), struck out ''and beginning on

December 23, 1985,'' before ''households in which each member

receives''.

Subsec. (d)(3). Pub. L. 101-624, Sec. 1715(a)(1), inserted

''(A)'' after ''the like'' and substituted ''(including the rental

or purchase of any equipment, materials, and supplies required to

pursue the course of study involved) at a recognized institution of

post-secondary education, at a school for the handicapped, in a

vocational education program, or in a program that provides for

completion of a secondary school diploma or obtaining the

equivalent thereof, (B) to the extent that they do not exceed the

amount made available as an allowance determined by such school,

institution, or program for books, supplies, transportation, and

other miscellaneous personal expenses (other than living expenses),

of the student incidental to attending such school, institution, or

program, and (C)'' for ''at an institution of post-secondary

education or school for the handicapped, and''.

Subsec. (d)(5). Pub. L. 101-624, Sec. 1716, inserted ''and any

allowance a State agency provides no more frequently than annually

to families with children on the occasion of those children's

entering or returning to school or child care for the purpose of

obtaining school clothes (except that no such allowance shall be

excluded if the State agency reduces monthly assistance to families

with dependent children under part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.) in the month for which the

allowance is provided)'' after ''household''.

Pub. L. 101-624, Sec. 1715(a)(2), inserted ''and'' after

''1988),'', struck out ''non-Federal'' after ''no portion of any'',

and struck out ''and no portion of any Federal educational loan on

which payment is deferred, grant, scholarship, fellowship,

veterans' benefits, and the like to the extent it provides income

assistance beyond that used for tuition and mandatory school

fees,'' before ''shall be considered such reimbursement''.

Subsec. (e). Pub. L. 101-624, Sec. 1717, inserted before period

at end of last sentence '', shall rely on reasonable estimates of

the member's expected medical expenses for the certification period

(including changes that can be reasonably anticipated based on

available information about the member's medical condition, public

or private medical insurance coverage, and the current verified

medical expenses incurred by the member), and shall not require

further reporting or verification of a change in medical expenses

if such a change has been anticipated for the certification

period''.

Pub. L. 101-624, Sec. 1715(b), inserted '', amounts made

available and excluded for the expenses under subsection (d)(3) of

this section,'' after ''third party'' in fourth sentence.

Subsec. (f)(2). Pub. L. 101-624, Sec. 1718(a), amended par. (2)

generally. Prior to amendment, par. (2) read as follows:

''(A) Households not required to submit monthly reports of their

income and household circumstances under section 2015(c)(1) of this

title shall have their income calculated on a prospective basis, as

provided in paragraph (3)(A).

''(B) Households required to submit monthly reports of their

income and household circumstances under section 2015(c)(1) of this

title shall have their income calculated on a retrospective basis,

as provided in paragraph (3)(B), except that in the case of the

first month, or at the option of the State the first and second

months, in a continuous period in which a household is certified,

the State agency shall determine the amount of benefits on the

basis of the household's income and other relevant circumstances in

such first or second month.''

Subsec. (g). Pub. L. 101-624, Sec. 1726(b)(2), inserted before

period at end of par. (3) ''and nonliquid resources necessary to

allow the household to carry out a plan for self-sufficiency

approved by the State agency that constitutes adequate

participation in an employment and training program under section

2015(d) of this title''.

Pub. L. 101-624, Sec. 1719(1), designated first through fourth

sentences as pars. (1) to (4), respectively, and added par. (5).

Subsec. (h)(3). Pub. L. 101-624, Sec. 1720, added par. (3).

Subsec. (j). Pub. L. 101-624, Sec. 1719(2), substituted ''the

resources of a household member who receives supplemental security

income benefits under title XVI of the Social Security Act, aid to

the aged, blind, or disabled under title I, X, XIV, or XVI of the

Social Security Act or who receives'' for ''a household in which

all members of the household receive'' and ''be exempt for purposes

of satisfying the resource limitations prescribed under subsection

(g) of this section if the resources are considered exempt for

purposes of such title'' for ''have satisfied the resource

limitations prescribed under subsection (g) of this section''.

Subsec. (k)(2)(F). Pub. L. 101-624, Sec. 1721, added subpar. (F)

and struck out former subpar. (F) which read as follows: ''housing

assistance payments made to a third party on behalf of a household

residing in temporary housing if the temporary housing unit

provided for the household as a result of such assistance payments

lacks facilities for the preparation and cooking of hot meals or

the refrigerated storage of food for home consumption; or''.

Subsec. (k)(2)(H). Pub. L. 101-624, Sec. 1722, added subpar. (H).

1988 - Subsec. (a). Pub. L. 100-435, Sec. 201, struck out

''during the period'' before ''beginning on December 23, 1985'' and

''and ending on September 30, 1989'' after ''beginning on December

23, 1985,''.

Subsec. (d)(1). Pub. L. 100-435, Sec. 340(2), inserted

''(notwithstanding its conversion in whole or in part to direct

payments to households pursuant to any demonstration project

carried out or authorized under Federal law including demonstration

projects created by the waiver of provisions of Federal law)''

after ''to a household''.

Pub. L. 100-435, Sec. 340(1), which directed that ''and except as

provided in subsection (k),'' be struck out was executed by

striking out ''except as provided in subsection (k),'' as the

probable intent of Congress.

Subsec. (d)(5). Pub. L. 100-435, Sec. 404(f), inserted ''(except

for payments or reimbursements for such expenses made under an

employment, education, or training program initiated under such

title after September 19, 1988)'' after ''child care expenses''.

Subsec. (d)(8). Pub. L. 100-232 inserted ''cash donations based

on need that are received from one or more private nonprofit

charitable organizations, but not in excess of $300 in the

aggregate in a quarter,'' after ''or credits,''.

Subsec. (d)(11). Pub. L. 100-435, Sec. 343, substituted

''allowances made for the purpose of providing energy assistance

(A) under any Federal law, or (B) under any State or local laws,

designated'' for ''allowances made under (A) any Federal law for

the purpose of providing energy assistance, or (B) any State or

local laws for the purpose of providing energy assistance,

designated''.

Subsec. (d)(14). Pub. L. 100-435, Sec. 402, added cl. (14).

Subsec. (d)(15). Pub. L. 100-435, Sec. 403(a), added cl. (15).

Subsec. (e). Pub. L. 100-435, Sec. 403(b), in fourth sentence

inserted ''and expenses that are paid under section 2015(d)(4)(I)

of this title for dependent care'' after ''third party'' and

substituted ''$160 a month for each dependent'' for ''$160 a

month''.

Pub. L. 100-435, Sec. 351, inserted provisions at end respecting

method of claiming recurring medical expense deduction.

Subsec. (f)(1)(A). Pub. L. 100-435, Sec. 341, inserted provisions

relating to permitted averaging of income and expenses in

calculation of household income from member self-employed in

farming operation and substituted ''first'' for ''preceding''.

Subsec. (f)(2). Pub. L. 100-435, Sec. 202(a), added par. (2) and

struck out former par. (2) which read as follows:

''(A) Household income for -

''(i) migrant farmworker households, and

''(ii) households -

''(I) that have no earned income, and

''(II) in which all adult members are elderly or disabled

members,

shall be calculated on a prospective basis, as provided in

paragraph (3)(A).

''(B) Household income for households that are permitted to

report household circumstances at specified intervals less frequent

than monthly under the first sentence of section 2015(c)(1) of this

title, may, with the approval of the Secretary, be calculated by a

State agency on a prospective basis, as provided in paragraph

(3)(A) of this subsection.

''(C) Except as provided in subparagraphs (A) and (B), household

income for households that have earned income and for households

that include any member who has recent work history shall be

calculated on a retrospective basis as provided in paragraph

(3)(B).

''(D) Household income for all other households may be

calculated, at the option of the State agency, on a prospective

basis as provided in paragraph (3)(A) or on a retrospective basis

as provided in paragraph (3)(B).''

Subsec. (g). Pub. L. 100-435, Sec. 342, inserted provisions at

end relating to exclusion of farm property from financial

resources.

Subsec. (h). Pub. L. 100-707 substituted ''sections 5170a and

5192'' for ''section 5142(a)''.

Subsec. (k)(2)(E) to (G). Pub. L. 100-387 added subpar. (E) and

redesignated former subpars. (E) and (F) as (F) and (G),

respectively.

1987 - Subsec. (c). Pub. L. 100-77, Sec. 803(a), inserted ''shall

be adjusted each October 1 and'' after first reference to

''eligibility''.

Subsec. (e). Pub. L. 100-77, Sec. 804(a), in second sentence

substituted ''(3)'' for ''and (3)'' and ''October 1, 1986'' for

''each October 1 thereafter'', and inserted cl. (4).

Pub. L. 100-77, Sec. 805(a), inserted at end of third sentence

'', except that such additional deduction shall not be allowed with

respect to earned income that a household willfully or fraudulently

fails (as proven in a proceeding provided for in section 2015(b) of

this title) to report in a timely manner''.

Pub. L. 100-77, Sec. 806(a), amended proviso in fourth sentence

generally. Prior to amendment, the proviso read as follows: ''That

the amount of such excess shelter expense deduction shall not

exceed $147 a month in the forty-eight contiguous States and the

District of Columbia, and shall not exceed, in Alaska, Hawaii,

Guam, and the Virgin Islands of the United States, $256, $210,

$179, and $109 a month, respectively, adjusted on October 1, 1986,

and on each October 1 thereafter, to the nearest lower dollar

increment to reflect changes in the shelter (exclusive of

homeowners' costs and maintenance and repair component of shelter

costs), fuel, and utilities components of housing costs in the

Consumer Price Index for All Urban Consumers published by the

Bureau of Labor Statistics, as appropriately adjusted by the Bureau

of Labor Statistics after consultation with the Secretary, for the

twelve months ending the preceding June 30.''

Subsec. (k)(2). Pub. L. 100-77, Sec. 807, temporarily added

subpar. (E) and redesignated former subpar. (E) as (F). See

Effective and Termination Dates of 1987 Amendment note below.

1986 - Subsec. (e)(B). Pub. L. 99-500 and Pub. L. 99-591

substituted ''contained in clause (1)'' for ''for the excess

shelter expense deduction contained in clause (2)''.

1985 - Subsec. (a). Pub. L. 99-198, Sec. 1507(a)(1), inserted

sentence providing that, notwithstanding any other provisions of

this chapter except sections 2015(b), 2015(d)(2), and 2015(g) and

the third sentence of section 2012(i) of this title, and during the

period beginning on December 23, 1985, and ending on September 30,

1989, households in which each member receives benefits under a

State plan approved under part A of title IV of the Social Security

Act, supplemental security income benefits under title XVI of the

Social Security Act, or aid to the aged, blind, or disabled under

title I, X, XIV, or XVI of the Social Security Act, shall be

eligible to participate in the food stamp program.

Subsec. (d)(1). Pub. L. 99-198, Sec. 1508(1), inserted ''except

as provided in subsection (k) of this section,'' after ''payable

directly to a household,''. Such amendment was duplicated exactly

by section 1509(a)(1) of Pub. L. 99-198 except that the amendment

by section 1509(a)(1) inserted an ''and'' at beginning of phrase

inserted.

Pub. L. 99-198, Sec. 1509(a)(1), which directed that ''and except

as provided in subsection (k) of this section,'' be inserted after

''payable directly to a household,'', was not executed to text

because it exactly duplicates the amendment made by section 1508(1)

of Pub. L. 99-198 except that the amendment by section 1508(1) of

Pub. L. 99-198 does not contain the ''and'' at beginning of phrase

inserted.

Subsec. (d)(3). Pub. L. 99-198, Sec. 1509(a)(2), substituted

''post-secondary education'' for ''higher education'' and inserted

''and to the extent loans include any obligation fees and insurance

premiums,''.

Subsec. (d)(5). Pub. L. 99-198, Sec. 1509(a)(3), inserted ''no

portion of any non-Federal educational loan on which payment is

deferred, grant, scholarship, fellowship, veterans' benefits, and

the like that are provided for living expenses, and no portion of

any Federal educational loan on which payment is deferred, grant,

scholarship, fellowship, veterans' benefits, and the like to the

extent it provides income assistance beyond that used for tuition

and mandatory school fees,'' after ''child care expenses,''.

Subsec. (d)(9). Pub. L. 99-198, Sec. 1509(a)(4), inserted '', but

household income that otherwise is included under this subsection

shall be reduced by the extent that the cost of producing

self-employment income exceeds the income derived from

self-employment as a farmer''.

Subsec. (d)(10). Pub. L. 99-198, Sec. 1509(a)(5), inserted

''except as otherwise provided in subsection (k) of this section''.

Subsec. (d)(13). Pub. L. 99-198, Sec. 1510(1), added cl. (13).

Subsec. (e). Pub. L. 99-198, Sec. 1511(1), substituted

''homeowners' costs and maintenance and repair component'' for

''homeownership component'' in second sentence.

Pub. L. 99-198, Sec. 1511(2), substituted ''20 per centum'' for

''18 per centum'' in third sentence.

Pub. L. 99-198, Sec. 1511(3)(B), in cl. (1) of the fourth

sentence substituted ''$160 a month'' for ''the same as that for

the excess shelter expense deduction contained in clause (2) of

this subsection''.

Pub. L. 99-198, Sec. 1511(3)(C), substituted ''and (2)'' for '',

or (2)'' in fourth sentence.

Pub. L. 99-198, Sec. 1511(3)(A), amended proviso in cl. (2)

generally. Prior to amendment, proviso read as follows: ''That the

amount of such excess shelter expense deduction shall not exceed

$115 a month in the forty-eight contiguous States and the District

of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the

Virgin Islands of the United States, $200, $165, $140, and $85,

respectively, adjusted (i) on October 1, 1983, to the nearest lower

dollar increment to reflect changes in the shelter (exclusive of

homeownership costs), fuel, and utilities components of housing

costs in the Consumer Price Index for all urban consumers published

by the Bureau of Labor Statistics, as appropriately adjusted by the

Bureau of Labor Statistics after consultation with the Secretary,

for the fifteen months ending the preceding March 31, (ii) on

October 1, 1984, to the nearest lower dollar increment to reflect

such changes for the fifteen months ending the preceding June 30,

and (iii) on October 1, 1985, and each October 1 thereafter, to the

nearest lower dollar increment to reflect such changes for the

twelve months ending the preceding June 30,''.

Pub. L. 99-198, Sec. 1511(3)(D), in fourth sentence struck out

'', or (3) a deduction combining the dependent care and excess

shelter expense deductions under clauses (1) and (2) of this

subsection, the maximum allowable level of which shall not exceed

the maximum allowable deduction under clause (2) of this

subsection, on January 1, 1981, adjusted to the nearest $5

increment to reflect such changes for the eighteen-month period

ending the preceding September 30, and, on January 1, 1982,

adjusted to the nearest $5 to reflect such changes for the twelve

months ending the preceding September 30 and the subsequent three

months ending December 31 as projected by the Secretary in light of

the best available data, and, on every January 1 thereafter,

adjusted annually to the nearest $5 increment to reflect such

changes for the nine months ending the preceding September 30 and

the subsequent three months ending December 31 projected by the

Secretary in light of the best available data''.

Pub. L. 99-198, Sec. 1511(4), inserted five new sentences after

the existing seventh sentence beginning, respectively, ''If a State

agency'', ''A State agency may use'', ''A State agency not

electing'', ''For purposes of'', and ''A State agency shall

allow'', thereby repositioning existing sentence beginning

''Households containing an elderly or disabled member'' to a new

position as 13th sentence of subsec. (e).

Subsec. (f)(1)(A). Pub. L. 99-198, Sec. 1512, inserted sentence

at end providing that notwithstanding preceding sentence, if the

averaged amount does not accurately reflect the household's actual

monthly circumstances because the household has experienced a

substantial increase or decrease in business earnings, the State

agency shall calculate the self-employment income based on

anticipated earnings.

Subsec. (f)(2)(A). Pub. L. 99-198, Sec. 1513(a)(1), amended

subpar. (A) generally, inserting reference to households that have

no earned income and in which all adult members are elderly or

disabled members.

Subsec. (f)(2)(B). Pub. L. 99-198, Sec. 1513(a)(2), substituted

''households that are permitted to report household circumstances

at specified intervals less frequent than monthly under the first

sentence of section 2015(c)(1) of this title, may, with the

approval'' for ''households that (i) are permitted to report

household circumstances at specified intervals less frequent than

monthly under section 2015(c)(1) of this title, (ii) have no earned

income and in which all adult members are elderly or disabled

members, or (iii) are any other households, other than a migrant

household, not required to report monthly or at less frequent

intervals under section 2015(c)(1) of this title, may, with the

approval''.

Subsec. (f)(2)(C). Pub. L. 99-198, Sec. 1513(a)(3), substituted

''Except as provided in subparagraphs (A) and (B), household income

for households that have earned income and for households that

include any member who has recent work history shall be calculated

on a retrospective basis as provided in paragraph (3)(B)'' for

''Household income for all other households shall be calculated on

a retrospective basis as provided in paragraph (3)(B)''.

Subsec. (f)(2)(D). Pub. L. 99-198, Sec. 1513(a)(3), added subpar.

(D).

Subsec. (g). Pub. L. 99-198, Sec. 1514(1), substituted ''$2,000,

or, in the case of a household which consists of or includes a

member who is 60 years of age or older, if its resources exceed

$3,000'' for ''$1,500, or, in the case of a household consisting of

two or more persons, one of whom is age 60 or over, if its

resources exceed $3,000''.

Pub. L. 99-198, Sec. 1514(2), (3), inserted in second sentence

''and inaccessible resources'' after ''relating to licensed

vehicles'' and ''and any other property, real or personal, to the

extent that it is directly related to the maintenance or use of

such vehicle'' after ''physically disabled household member'', and

inserted provision directing the Secretary to exclude from

financial resources the value of a burial plot for each member of a

household.

Subsec. (h)(2). Pub. L. 99-198, Sec. 1515, amended par. (2)

generally. Prior to amendment, par. (2) read as follows: ''The

Secretary shall establish a Food Stamp Disaster Task Force, to

assist States in implementing and operating the disaster program,

which shall be available to go into a disaster area and provide

direct assistance to State and local officials.''

Subsec. (k)(1), (2). Pub. L. 99-198, Sec. 1508(2), added subsec.

(k) consisting of pars. (1) and (2).

Subsec. (k)(3). Pub. L. 99-198, Sec. 1509(b), added par. (3).

Subsec. (l). Pub. L. 99-198, Sec. 1509(c), added subsec. (l).

Subsec. (m). Pub. L. 99-198, Sec. 1510(2), added subsec. (m).

1983 - Subsec. (f)(2). Pub. L. 98-204 added subpar. (B), and

redesignated former subpar. (B) as (C).

1982 - Subsec. (c). Pub. L. 97-253, Sec. 145(c), 146(a),

substituted provisions that the income standards of eligibility

shall render a household ineligible for food stamps if the

household's income, after certain exclusions and deductions,

exceeds the poverty line, or, in the case of a household not

including an elderly or disabled member (after the exclusions

provided for in subsec. (d) but before the deductions provided for

in subsec. (e)) exceeds such poverty line by more than 30 per

centum, for former provisions that the income standards of

eligibility were, for households containing a member who was sixty

years of age or over or a member who received supplemental security

income benefits under title XVI of the Social Security Act or

disability and blindness payments under titles I, II, X, XIV, and

XVI of the Social Security Act, 100 per centum, and for all other

households, 130 per centum, of the nonfarm income poverty

guidelines prescribed by the Office of Management and Budget

adjusted annually pursuant to section 2971d of title 42, for the

forty-eight States and the District of Columbia, Alaska, Hawaii,

the Virgin Islands of the United States, and Guam, respectively.

Subsec. (d)(12). Pub. L. 97-253, Sec. 147, added par. (12).

Subsec. (e). Pub. L. 97-253, Sec. 143(b), 145(d), 146(b), 148,

149, in first sentence substituted reference for households

containing an elderly or disabled member for reference to

households described in subsec. (c)(1) of this section, substituted

reference to October 1, 1983, for reference to July 1, 1983, and

reference to the nearest lower dollar increment for reference to

the nearest $5 increment, respectively, wherever appearing in

second sentence and in the proviso of cl. (2) of fourth sentence,

respectively, in fourth and seventh sentences and in par. (A)

substituted reference to elderly or disabled members for references

to members who were sixty years of age or over or who received

supplemental security income benefits under title XVI of the Social

Security Act or disability and blindness payments under titles I,

II, X, XIV, and XVI of the Social Security Act, in par. (B)

substituted reference to the fourth sentence of this subsection for

former reference to the preceding sentence of this subsection, and

inserted provisions that in computing the excess shelter expense

deduction under cl. (2) of the preceding sentence, a State agency

may use a standard utility allowance in accordance with regulations

promulgated by the Secretary, except that a State agency may use an

allowance which does not fluctuate within a year to reflect

seasonal variations, and that an allowance for a heating or cooling

expense may not be used for a household that does not incur a

heating or cooling expense, as the case may be, or does incur a

heating or cooling expense but is located in a public housing unit

which has central utility meters and charges households, with

regard to such expense, only for excess utility costs, and that no

such allowance may be used for a household that shares such expense

with, and lives with, another individual not participating in the

food stamp program, another household participating in the food

stamp program, or both, unless the allowance is prorated between

the household and the other individual, household, or both.

Subsec. (f)(2)(A). Pub. L. 97-253, Sec. 189(a), corrected a

typographical error by substituting ''prospective'' for

''propsective''.

Subsec. (f)(4). Pub. L. 97-253, Sec. 150, inserted ''(except the

provisions of paragraph (2)(A))'' after ''of this subsection''.

Subsec. (g). Pub. L. 97-253, Sec. 151, 152(a), substituted ''June

1, 1982'' for ''June 1, 1977'', substituted ''any licensed

vehicle'' for ''and any licensed vehicle'', struck out the

designation ''(1)'' before ''include in financial resources'',

substituted ''$4,500, and, regardless of whether there is a penalty

for early withdrawal, any savings or retirement accounts (including

individual accounts).'' for ''$4,500,'' and struck out provision

requiring the Secretary to study and develop means of improving the

effectiveness of the resource requirements adopted under this

subsection in limiting participation to households in need of food

assistance, and implement and report the results of such study and

the Secretary's plans to the Committee on Agriculture of the House

of Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate no later than June 1, 1978.

Subsec. (j). Pub. L. 97-253, Sec. 153, added subsec. (j).

1981 - Subsec. (b). Pub. L. 97-35, Sec. 116(a)(1), struck out

reference to Puerto Rico.

Subsec. (c). Pub. L. 97-35, Sec. 104(a)(1), 116(a)(1), added cls.

(1) and (2) and struck out reference to Puerto Rico.

Subsec. (d). Pub. L. 97-98, Sec. 1305, 1306, inserted in cl. (5)

a proviso that no portion of benefits provided under title IV-A of

the Social Security Act, to the extent it is attributable to an

adjustment for work-related or child care expenses, be considered

such reimbursement, substituted in cl. (10) ''any other Federal

law'' for ''any other law'', and inserted in cl. (11) provision

requiring that State and local laws be designated as energy

assistance and determined by the Secretary to be calculated as if

provided on a seasonal basis for an aggregate period not to exceed

six months in any year even if not so provided on such basis.

Pub. L. 97-35, Sec. 107(c), 2611, struck out ''(2)'' after

''(f)'' in cl. (2), struck out cl. (10) relating to increased home

energy costs during fiscal year 1981, and redesignated cl. (11),

relating to income specifically excluded from consideration by any

other law, as cl. (10).

Subsec. (e). Pub. L. 97-98, Sec. 1307, inserted '', with respect

to expenses other than expenses paid on behalf of the household by

a third party,'' after ''entitled'' in two places.

Pub. L. 97-35, Sec. 104(a)(2), 105, 106, 115, 116(a)(1),

completely revised and reorganized provisions to provide for

computation of standard deduction of $85 per month instead of

standard deduction of $60 per month and accompanying determinations

respecting adjustments, applicability, etc., for computation.

Subsec. (f). Pub. L. 97-35, Sec. 107(a), completely revised and

reorganized provisions to provide for calculation of household

income through a prospective or retrospective basis instead of

calculation of household income by the State agency, and

accompanying determination respecting criteria, methodologies,

etc., for calculation.

Subsec. (f)(2)(B). Pub. L. 97-35, Sec. 107(b), substituted

provisions requiring calculation on a retrospective basis, for

provisions requiring calculation on either a retrospective or

prospective basis as elected by the State agency.

Subsec. (g). Pub. L. 97-98, Sec. 1309, inserted ''(other than

those relating to licensed vehicles)'' after ''June 1, 1977''.

Subsec. (i). Pub. L. 97-98, Sec. 1308, added subsec. (i).

1980 - Subsec. (c). Pub. L. 96-249, Sec. 137, struck out

provisions requiring that the income poverty guidelines for the

period commencing July 1, 1978, be made as up to date as possible

by multiplying the income poverty guidelines for 1977 by the change

between the average 1977 Consumer Price Index and the Consumer

Price Index for March 1978, utilizing the most current procedures

which have been used by the Office of Management and Budget, and

that the income poverty guidelines for future periods be similarly

adjusted.

Subsec. (d). Pub. L. 96-249, Sec. 102, 112, inserted in cl. (2)

''subject to modification by the Secretary in light of subsection

(f)(2) of this section,'' after ''quarter,'' and added cl. (11),

relating to energy assistance payments or allowances.

Pub. L. 96-223 added cl. (10) and redesignated former cl. (10),

relating to income specifically excluded from consideration by any

other law, as cl. (11).

Subsec. (e). Pub. L. 96-249, Sec. 103, 136, substituted

provisions requiring that the standard deduction be adjusted every

Jan. 1 to the nearest $5 to reflect changes in the Consumer Price

Index for all urban consumers for items other than food for the

last 12 months ending the preceding Sept. 30 for provisions

requiring that the standard deduction be adjusted every July 1 and

Jan. 1 and provisions requiring that the excess shelter expense

deduction be adjusted every Jan. 1 to the nearest $5 increment to

reflect changes in the shelter, fuel, and utilities components of

housing costs in the Consumer Price Index for all urban consumers

for provisions requiring that the excess shelter expense deduction

be adjusted annually as of July 1.

Pub. L. 96-249, Sec. 104, 105, increased monthly maximum

deduction per household for dependent care expenses related to

employment, or employment related training or education from $75 to

$90, decreased the threshold amount of the excess medical expense

for the elderly, blind, and disabled from $35 to $25, and extended

availability of the excess medical expense deduction to blind and

disabled persons and their spouses in Puerto Rico, Guam, and the

Virgin Islands, when they receive cash welfare payments through

programs equivalent to the Social Security Income program. See

Repeals note below.

Subsec. (f). Pub. L. 96-249, Sec. 107, inserted provisions giving

States the option of determining program eligibility and benefits

by using income received in a previous month, following standards

prescribed by the Secretary.

Subsec. (g). Pub. L. 96-249, Sec. 108, 138, substituted

''$1,500'' for ''$1,750'', inserted ''or that is necessary for

transportation of a physically disabled household member'' after

''used to produce earned income'', and struck out ''or to transport

disabled household members'' after ''or continue employment''.

1979 - Subsec. (e). Pub. L. 96-58 inserted provisions allowing

for an excess medical expense deduction, a dependent care

deduction, and an excess shelter expense deduction for elderly

persons and persons receiving supplemental security income benefits

or disability payments under the Social Security Act.

1977 - Subsec. (a). Pub. L. 95-113 substituted reference to a

more nutritious diet for reference to a nutritionally adequate

diet, inserted provision that assistance under the program be

furnished to all eligible households making application for

participation, inserted reference to other financial resources held

singly or in joint ownership, and struck out provisions excepting

the limitation of the section in the case of disaster victims.

Subsec. (b). Pub. L. 95-113 inserted parenthetical reference to

income standards for Alaska, Hawaii, Guam, Puerto Rico, and the

Virgin Islands of the United States established pursuant to

subsecs. (c) and (e) of this section, inserted provision that no

State agency may impose standards for participation in the program

additional to those meeting the eligibility standards established

by the Secretary, and struck out provisions that had dealt with

specific areas of income and financial resources for eligible

households. See subsecs. (d) to (h).

Subsec. (c). Pub. L. 95-113 substituted provisions covering

guidelines with regard to income standards for provisions covering

employment of able-bodied adults in eligible households.

Subsec. (d). Pub. L. 95-113 substituted provisions specifying the

specific items making up household income for provisions that

required that the Secretary establish uniform national standards.

Subsecs. (e) to (h). Pub. L. 95-113 added subsecs. (e) to (h).

1973 - Subsec. (b). Pub. L. 93-86, Sec. 3(g), (h), inserted

provisos relating to payments in kind received from an employer by

members of a household as bearing upon the promulgation of uniform

national standards, provision limiting the authority of the

Secretary to establish temporary emergency standards of eligibility

to the duration of the emergency, and the provision authorizing

such standards for households that are victims of a mechanical

disaster disrupting the distribution of coupons.

Subsec. (c). Pub. L. 93-86, Sec. 3(e), inserted definition of

''able-bodied adult person''.

Subsec. (d). Pub. L. 93-86, Sec. 3(d), added subsec. (d).

1971 - Subsec. (a). Pub. L. 91-671 inserted introductory phrase

''Except for the temporary participation of households that are

victims of a disaster as provided in subsection (b) of this

section'' and provision respecting other financial resources as

being a limitation factor and substituted ''in permitting them to

purchase'' for ''in the attainment of''.

Subsec. (b). Pub. L. 91-671 substituted provisions for

establishment of uniform national standards of eligibility for

participation by households in the food stamp program and minimum

criteria of eligibility, ineligibility of any household which

includes a member claimed as a dependent child for Federal income

tax purposes by a taxpayer who is not a member of an eligible

household, temporary emergency standards of eligibility, and

special standards of eligibility and coupon allotment schedules in

Puerto Rico and the Virgin Islands, not exceeding standards of

eligibility or coupon allotment schedules of the States for prior

establishment of standards of eligibility by the State agency,

including maximum income limitations and limitation on resources to

be allowed eligible households, and approval of such standards by

the Secretary.

Subsec. (c). Pub. L. 91-671 added subsec. (c).

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4108(b), May 13, 2002, 116 Stat.

309, 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. 4401(b)(3), May 13, 2002, 116

Stat. 333, provided that: ''The amendments made by this subsection

(amending this section and sections 1612, 1613, and 1631 of Title

8, Aliens and Nationality) take effect on October 1, 2003.''

Amendment by sections 4101-4107 and 4112(b)(2) 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 2000 AMENDMENT

Pub. L. 106-387, Sec. 1(a) (title VIII, Sec. 846(b)), Oct. 28,

2000, 114 Stat. 1549, 1549A-66, provided that:

''(1) Except as provided in paragraph (2), the amendment made by

this section (amending this section) shall take effect on March 1,

2001.

''(2) The amendment made by this section shall not apply with

respect to certification periods beginning before March 1, 2001.''

Pub. L. 106-387, Sec. 1(a) (title VIII, Sec. 847(b)), Oct. 28,

2000, 114 Stat. 1549, 1549A-66, provided that:

''(1) Except as provided in paragraph (2), the amendments made by

this section (amending this section) shall take effect on July 1,

2001.

''(2) The amendments made by this section shall not apply with

respect to certification periods beginning before July 1, 2001.''

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 101(f) (title VIII, Sec. 405(d)(2)(A)) of

Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section

101(f) (title VIII, Sec. 405(f)(2)(A)) of Pub. L. 105-277 effective

July 1, 2000, see section 101(f) (title VIII, Sec. 405(g)(1),

(2)(B)) of Pub. L. 105-277, set out as a note under section 3502 of

Title 5, Government Organization and Employees.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 109(a) 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 1993 AMENDMENT

Amendment by section 13923 of 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.

Amendment by section 13912(a), (b)(1) of Pub. L. 103-66

effective, and to be implemented beginning on, July 1, 1994, see

section 13971(b)(3) of Pub. L. 103-66, set out as a note under

section 2025 of this title.

Amendment by sections 13911, 13913 to 13915, 13922(a), and 13924

of Pub. L. 103-66 effective, and to be implemented beginning on,

Sept. 1, 1994, see section 13971(b)(4) of Pub. L. 103-66, set out

as a note under section 2025 of this title.

Amendment by section 13921 of Pub. L. 103-66 effective, and to be

implemented beginning on, Sept. 1, 1994, except that State agencies

to implement such amendment not later than Oct. 1, 1995, see

section 13971(b)(5) of Pub. L. 103-66, set out as a note under

section 2025 of this title.

Amendment by section 13912(b)(2) of Pub. L. 103-66, effective,

and to be implemented beginning on, Jan. 1, 1997, see section

13971(b)(6) of Pub. L. 103-66, set out as a note under section 2025

of this title.

EFFECTIVE DATE OF 1992 AMENDMENTS

Amendment by Pub. L. 102-367 effective July 1, 1993, see section

701(a) of Pub. L. 102-367, formerly set out as a note under section

1501 of Title 29, Labor.

Section 1(b) of Pub. L. 102-265 provided that:

''(1) In general. - The amendment made by subsection (a)

(amending this section) shall take effect on the earlier of -

''(A) December 13, 1991;

''(B) October 1, 1990, for food stamp households for which the

State agency knew, or had notice, that a member of the household

had a plan for achieving self-support as provided under section

1612(b)(4)(A)(iii) of the Social Security Act (42 U.S.C.

1382a(b)(4)(A)(iii)); or

''(C) beginning on the date that a fair hearing was requested

under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)

contesting the denial of an exclusion for food stamp purposes for

amounts necessary for the fulfillment of such a plan for

achieving self-support.

''(2) Limitation on application of section. - Notwithstanding

section 11(b) of the Food Stamp Act of 1977 (7 U.S.C. 2020(b)), no

State agency shall be required to search its files for cases to

which the amendment made by subsection (a) applies, except where

the excludability of amounts described in section 5(d)(16) of the

Food Stamp Act of 1977 (7 U.S.C. 2014(d)(16)) was raised with the

State agency prior to December 13, 1991.''

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by sections 902, 903(1), (2), 904-906, and 941(2) of

Pub. L. 102-237 effective and to be implemented no later than Feb.

1, 1992, and amendment by section 903(3) of Pub. L. 102-237

effective on the earlier of Dec. 13, 1991, Oct. 1, 1990, for

certain food stamp households, or beginning on date of request for

hearing where exclusion of certain amounts for food stamp purposes

was denied, with limitation on application of amendment, see

section 1101(d)(1), (2) of Pub. L. 102-237, set out as a note under

section 1421 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by sections 1714(1), 1715, 1717, 1719, 1720, and

1726(b)(2) 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,

amendment by section 1714(2) of Pub. L. 101-624 effective and

implemented first day of month beginning 120 days after

promulgation of implementing regulations to be promulgated not

later than Oct. 1, 1991, in case of State general assistance

program, and Apr. 1, 1992, in case of local general assistance

program, amendment by sections 1716 and 1722 of Pub. L. 101-624

effective and implemented first day of month beginning 120 days

after promulgation of implementing regulations to be promulgated

not later than Apr. 1, 1991, amendment by section 1718(a) of Pub.

L. 101-624 effective Nov. 28, 1990, and amendment by section 1721

of Pub. L. 101-624 effective Oct. 1, 1990, see section 1781 of Pub.

L. 101-624, set out as a note under section 2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENTS

Amendment by sections 201, 202(a), 403, and 404(f) of Pub. L.

100-435 to be effective and implemented on Oct. 1, 1988, amendment

by sections 340 to 342 and 351 of Pub. L. 100-435 to be effective

and implemented on July 1, 1989, amendment by section 343 of Pub.

L. 100-435 to be effective and implemented on Sept. 19, 1988, and

amendment by section 402 of Pub. L. 100-435 to be effective and

implemented on Jan. 1, 1989, except that amendment by sections 201,

341, 342, 351, 402, 403, and 404(f) 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), (2), (4), (c)(2) of Pub. L. 100-435, set out as a note

under section 2012 of this title.

Section 501(b) of Pub. L. 100-387 provided that:

''(1) The amendments made by this section (amending this section)

shall take effect on the date of enactment of this Act (Aug. 11,

1988).

''(2) The amendments made by this section shall not apply with

respect to allotments issued under the Food Stamp Act of 1977 (this

chapter) to any household for any month beginning before the

effective period of this section begins.''

Section 2(b) of Pub. L. 100-232 provided that:

''(1) Effective Date. - Except as provided in paragraph (2), the

amendment made by this section (amending this section) shall become

effective upon the date of enactment of this Act (Jan. 5, 1988).

''(2) Application of Amendment. - The amendment made by this

section shall not apply with respect to allotments issued under the

Food Stamp Act of 1977 (this chapter) to any household for any

month beginning before the date of enactment of this Act.''

EFFECTIVE AND TERMINATION DATES OF 1987 AMENDMENT

Section 803(b) of Pub. L. 100-77 provided that: ''The amendment

made by this section (amending this section) shall become effective

on July 1, 1988.''

Section 804(b) of Pub. L. 100-77 provided that: ''The amendments

made by this section (amending this section) shall become effective

on October 1, 1987.''

Section 805(b) of Pub. L. 100-77 provided that:

''(1) The amendment made by this section (amending this section)

shall become effective and shall be implemented 45 days after the

date of enactment of this Act (July 22, 1987).

''(2) The amendment made by this section shall not apply with

respect to allotments issued under the Food Stamp Act of 1977 (this

chapter) to any household for any month beginning before the

effective date of the amendment.''

Section 806(b) of Pub. L. 100-77 provided that:

''(1) The amendment made by this section (amending this section)

shall become effective on October 1, 1987.

''(2) The amendment made by this section shall not apply with

respect to an allotment issued under the Food Stamp Act of 1977

(this chapter) to a household for a certification period beginning

before October 1, 1987.''

Section 807(b) of Pub. L. 100-77, as amended by Pub. L. 101-220,

Sec. 10, Dec. 12, 1989, 103 Stat. 1882, provided that:

''(1) The amendments made by this section (amending this section)

shall be effective and shall be implemented for the period

beginning 90 days after the date of enactment of this Act (July 22,

1987) and ending September 30, 1990.

''(2) The Secretary shall adjust the level of benefits provided

to households under the Food Stamp Act of 1977 (7 U.S.C. 2011 et

seq.) during the period between September 30, 1989 and the

effective date of this paragraph (Dec. 12, 1989) to ensure that the

level of such benefits is no less than the level determined in

accordance with the provisions of section 5(k)(2)(F) of the Food

Stamp Act of 1977 (7 U.S.C. 2014(k)(2)(F)).

''(3) The amendments made by this section shall not apply with

respect to allotments issued under the Food Stamp Act of 1977 (this

chapter) to any household for any month beginning before the

effective period of this section begins.''

EFFECTIVE DATE OF 1986 AMENDMENT

Section 101(a) (title VI, Sec. 638(b)) of Pub. L. 99-500 and Pub.

L. 99-591 provided that:

''(1) Except as provided in paragraphs (2) and (3), the amendment

made by subsection (a) (amending this section) shall become

effective 30 days after the date of enactment of this Act (Oct. 18,

1986).

''(2) Except as provided in paragraph (3), the amendment made by

subsection (a) shall not apply to an allotment issued to any

eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2011

et seq.) for any month beginning before the effective date of this

subsection.

''(3) If a State elected before the date of enactment of this Act

to compute household income in accordance with section 5(e) of the

Food Stamp Act of 1977 (7 U.S.C. 2014(e)) (as amended by subsection

(a)), the amendment made by subsection (a) shall become effective

on May 1, 1986.''

EFFECTIVE DATE OF 1985 AMENDMENT

Sections 1511(2), (3) and 1514(1) of Pub. L. 99-198 provided that

the amendments made by those sections are effective May 1, 1986.

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.

EFFECTIVE DATE OF 1981 AMENDMENTS

Amendment by Pub. L. 97-35, except section 107(b) of Pub. L.

97-35 (which amended this section), 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.

Section 116(a) of Pub. L. 97-35 provided that the amendment made

by that section is effective July 1, 1982.

Amendment by sections 104(a), 105, 106, 107(a), (c), and 115 of

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.

Section 107(b) of Pub. L. 97-35 provided that the amendment made

by that section is effective Oct. 1, 1983.

Section 2611 of Pub. L. 97-35 provided that the amendment made by

that section is effective Oct. 1, 1981.

EFFECTIVE DATE OF 1980 AMENDMENT

Sections 104 to 106 of Pub. L. 96-249 provided that the

amendments made by those sections are effective Oct. 1, 1981.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-58 to be implemented in all States by

Jan. 1, 1980, but not to affect the rights or liabilities of

Secretary, States, and applicant or participant households under

provisions of this chapter as in effect on July 1, 1979, until

implemented, see section 10(a) 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 amendments made

by that section are effective Oct. 1, 1977.

INAPPLICABILITY OF SUBSECTION (J) BETWEEN DECEMBER 23, 1985, AND

SEPTEMBER 30, 1989

Section 1507(a)(2) of Pub. L. 99-198 provided that: ''During the

period beginning on the date of the enactment of this Act (Dec. 23,

1985) and ending on September 30, 1989, section 5(j) of the Food

Stamp Act of 1977 (7 U.S.C. 2014(j)) shall not apply.''

REPEALS

Sections 104 and 105 of Pub. L. 96-249, cited as a credit to this

section, were repealed by Pub. L. 97-35, title I, Sec. 115, Aug.

13, 1981, 95 Stat. 364.

Section 313(c)(2) of Pub. L. 96-223, cited as a credit to this

section, was repealed by Pub. L. 97-35, title XXVI, Sec. 2611, Aug.

13, 1981, 95 Stat. 902, effective Oct. 1, 1981.

CALCULATION OF HOUSEHOLD INCOME

Section 1718(b) of Pub. L. 101-624 provided that:

''(1) In general. - Notwithstanding any other provision of law,

during the period beginning October 1, 1988, and ending on the

first day of the first month beginning at least 120 days after the

date of enactment of this Act (Nov. 28, 1990), a State agency may

elect to implement the amendment to section 5(f)(2) of the Food

Stamp Act of 1977 (7 U.S.C. 2014(f)(2)) made by section 202(a) of

the Hunger Prevention Act of 1988 (Public Law 100-435; 102 Stat.

1656) (with respect to the requirement that income be calculated on

a prospective basis in the case of households that are not required

to report monthly on their income and household circumstances).

''(2) Payment error rates. - Notwithstanding section 16(c) of the

Food Stamp Act of 1977 (7 U.S.C. 2025(c)), during the period

referred to in paragraph (1), errors resulting solely from

implementation by a State agency of the amendment referred to in

paragraph (1) shall not be included in payment error rates

determined under section 16(c) of such Act.''

STUDY AND REPORT TO CONGRESSIONAL COMMITTEES ON IMPLEMENTATION OF

AMENDMENT TO SUBSECTION (A) BY PUB. L. 99-198

Section 1507(c) of Pub. L. 99-198 provided that: ''Not later than

2 years after the date of the enactment of this Act (Dec. 23,

1985), the Secretary shall -

''(1) evaluate the implementation of the second sentence of

section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 2014(a)), as

amended by subsection (a) of this section; and

''(2) submit to the Committee on Agriculture, Nutrition, and

Forestry of the Senate and the Committee on Agriculture of the

House of Representatives a report summarizing the results of such

evaluation.''

STUDY AND REPORT RESPECTING RESTRICTING BENEFITS OF FOOD STAMP

PROGRAM BASED ON VALUE OF ASSETS OF PARTICIPANTS

Pub. L. 96-243, May 16, 1980, 94 Stat. 345, directed the

Department of Agriculture to study the effects of regulations which

would limit benefits to participants in the food stamp program

based upon value of the participants' assets, to recommend an

appropriate level of asset value which would deny or reduce

benefits to a participant and analyze the impacts of such a

restriction, to consider appropriate exemptions to this

restriction, to analyze the administrative burden which this will

impose upon the States, and to report to Congress its findings in

this matter not later than Jan. 15, 1981.

STUDY AND REPORT OF IMPACT AND ADVISABILITY OF COUNTING FOR INCOME

ELIGIBILITY IN FOOD STAMP PROGRAM EDUCATIONAL LOANS, ETC. RECEIVED

BY INDIVIDUAL OR HOUSEHOLD

Pub. L. 96-243, May 16, 1980, 94 Stat. 345, provided for the

Secretary of Agriculture to study the impact and advisability of

counting, for the purposes of income in determining eligibility:

all educational loans on which payment is deferred; grants,

fellowships, scholarships, and veteran's educational benefits used

for the payment of tuition and mandatory fees at any educational

institution of higher learning; and all housing subsidies

including, but not limited to payments made by an outside party on

behalf of an individual or household, and further provided for the

Department of Agriculture to report to Congress its findings in

this matter not later than Jan. 15, 1981.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2015, 2017, 2020,

2025, 2026, 2027, 2031, 2035 of this title; title 37 section 402a;

title 42 sections 1396r-5, 8624; title 43 section 1626.

-CITE-

7 USC Sec. 2015 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2015. Eligibility disqualifications

-STATUTE-

(a) Additional specific conditions rendering individuals ineligible

In addition to meeting the standards of eligibility prescribed in

section 2014 of this title, households and individuals who are

members of eligible households must also meet and comply with the

specific requirements of this section to be eligible for

participation in the food stamp program.

(b) Fraud and misrepresentation; disqualification penalties;

ineligibility period; applicable procedures

(1) Any person who has been found by any State or Federal court

or administrative agency to have intentionally (A) made a false or

misleading statement, or misrepresented, concealed or withheld

facts, or (B) committed any act that constitutes a violation of

this chapter, the regulations issued thereunder, or any State

statute, for the purpose of using, presenting, transferring,

acquiring, receiving, or possessing coupons or authorization cards

shall, immediately upon the rendering of such determination, become

ineligible for further participation in the program -

(i) for a period of 1 year upon the first occasion of any such

determination;

(ii) for a period of 2 years upon -

(I) the second occasion of any such determination; or

(II) the first occasion of a finding by a Federal, State, or

local court of the trading of a controlled substance (as

defined in section 802 of title 21) for coupons; and

(iii) permanently upon -

(I) the third occasion of any such determination;

(II) the second occasion of a finding by a Federal, State, or

local court of the trading of a controlled substance (as

defined in section 802 of title 21) for coupons;

(III) the first occasion of a finding by a Federal, State, or

local court of the trading of firearms, ammunition, or

explosives for coupons; or

(IV) a conviction of an offense under subsection (b) or (c)

of section 2024 of this title involving an item covered by

subsection (b) or (c) of section 2024 of this title having a

value of $500 or more.

During the period of such ineligibility, no household shall receive

increased benefits under this chapter as the result of a member of

such household having been disqualified under this subsection.

(2) Each State agency shall proceed against an individual alleged

to have engaged in such activity either by way of administrative

hearings, after notice and an opportunity for a hearing at the

State level, or by referring such matters to appropriate

authorities for civil or criminal action in a court of law.

(3) Such periods of ineligibility as are provided for in

paragraph (1) of this subsection shall remain in effect, without

possibility of administrative stay, unless and until the finding

upon which the ineligibility is based is subsequently reversed by a

court of appropriate jurisdiction, but in no event shall the period

of ineligibility be subject to review.

(4) The Secretary shall prescribe such regulations as the

Secretary may deem appropriate to ensure that information

concerning any such determination with respect to a specific

individual is forwarded to the Office of the Secretary by any

appropriate State or Federal entity for the use of the Secretary in

administering the provisions of this section. No State shall

withhold such information from the Secretary or the Secretary's

designee for any reason whatsoever.

(c) Refusal to provide necessary information

Except in a case in which a household is receiving transitional

benefits during the transitional benefits period under section

2020(s) of this title, no household shall be eligible to

participate in the food stamp program if it refuses to cooperate in

providing information to the State agency that is necessary for

making a determination of its eligibility or for completing any

subsequent review of its eligibility.

(1)(A) A State agency may require certain categories of

households to file periodic reports of income and household

circumstances in accordance with standards prescribed by the

Secretary, except that a State agency may not require periodic

reporting by -

(i) migrant or seasonal farmworker households;

(ii) households in which all members are homeless

individuals; or

(iii) households that have no earned income and in which all

adult members are elderly or disabled.

(B) Each household that is not required to file such periodic

reports shall be required to report or cause to be reported to

the State agency changes in income or household circumstances

that the Secretary considers necessary to assure accurate

eligibility and benefit determinations.

(C) A State agency may require periodic reporting on a monthly

basis by households residing on a reservation only if -

(i) the State agency reinstates benefits, without requiring a

new application, for any household residing on a reservation

that submits a report not later than 1 month after the end of

the month in which benefits would otherwise be provided;

(ii) the State agency does not delay, reduce, suspend, or

terminate the allotment of a household that submits a report

not later than 1 month after the end of the month in which the

report is due;

(iii) on March 25, 1994, the State agency requires households

residing on a reservation to file periodic reports on a monthly

basis; and

(iv) the certification period for households residing on a

reservation that are required to file periodic reports on a

monthly basis is 2 years, unless the State demonstrates just

cause to the Secretary for a shorter certification period.

(D) Frequency of reporting. -

(i) In general. - Except as provided in subparagraphs (A) and

(C), a State agency may require households that report on a

periodic basis to submit reports -

(I) not less often than once each 6 months; but

(II) not more often than once each month.

(ii) Reporting by households with excess income. - A

household required to report less often than once each 3 months

shall, notwithstanding subparagraph (B), report in a manner

prescribed by the Secretary if the income of the household for

any month exceeds the income standard of eligibility

established under section 2014(c)(2) of this title.

(2) Any household required to file a periodic report under

paragraph (1) of this subsection shall, (A) if it is eligible to

participate and has filed a timely and complete report, receive

its allotment, based on the reported information for a given

month, within thirty days of the end of that month unless the

Secretary determines that a longer period of time is necessary,

(B) have available special procedures that permit the filing of

the required information in the event all adult members of the

household are mentally or physically handicapped or lacking in

reading or writing skills to such a degree as to be unable to

fill out the required forms, (C) have a reasonable period of time

after the close of the month in which to file their reports on

State agency designed forms, (D) be afforded prompt notice of

failure to file any report timely or completely, and given a

reasonable opportunity to cure that failure (with any applicable

time requirements extended accordingly) and to exercise its

rights under section 2020(e)(10) of this title, and (E) be

provided each month (or other applicable period) with an

appropriate, simple form for making the required reports of the

household together with clear instructions explaining how to

complete the form and the rights and responsibilities of the

household under any periodic reporting system.

(3) Reports required to be filed under paragraph (1) of this

subsection shall be considered complete if they contain the

information relevant to eligibility and benefit determinations

that is specified by the State agency. All report forms,

including those related to periodic reports of circumstances,

shall contain a description, in understandable terms in prominent

and bold face lettering, of the appropriate civil and criminal

provisions dealing with violations of this chapter including the

prescribed penalties. Reports required to be filed monthly under

paragraph (1) shall be the sole reporting requirement for subject

matter included in such reports. In promulgating regulations

implementing these reporting requirements, the Secretary shall

consult with the Commissioner of Social Security and the

Secretary of Health and Human Services, and, wherever feasible,

households that receive assistance under title IV-A of the Social

Security Act (42 U.S.C. 601 et seq.) and that are required to

file comparable reports under that Act (42 U.S.C. 301 et seq.)

shall be provided the opportunity to file reports at the same

time for purposes of this chapter and the Social Security Act.

(4) Except as provided in paragraph (1)(C), any household that

fails to submit periodic reports required by paragraph (1) shall

not receive an allotment for the payment period to which the

unsubmitted report applies until such report is submitted.

(5) The Secretary is authorized, upon the request of a State

agency, to waive any provisions of this subsection (except the

provisions of the first sentence of paragraph (1) which relate to

households which are not required to file periodic reports) to

the extent necessary to permit the State agency to establish

periodic reporting requirements for purposes of this chapter

which are similar to the periodic reporting requirements

established under the State program funded under part A of title

IV of the Social Security Act (42 U.S.C. 601 et seq.) in that

State.

(d) Conditions of participation

(1) Work requirements. -

(A) In general. - No physically and mentally fit individual

over the age of 15 and under the age of 60 shall be eligible to

participate in the food stamp program if the individual -

(i) refuses, at the time of application and every 12 months

thereafter, to register for employment in a manner prescribed

by the Secretary;

(ii) refuses without good cause to participate in an

employment and training program established under paragraph

(4), to the extent required by the State agency;

(iii) refuses without good cause to accept an offer of

employment, at a site or plant not subject to a strike or

lockout at the time of the refusal, at a wage not less than the

higher of -

(I) the applicable Federal or State minimum wage; or

(II) 80 percent of the wage that would have governed had

the minimum hourly rate under section 6(a)(1) of the Fair

Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been

applicable to the offer of employment;

(iv) refuses without good cause to provide a State agency

with sufficient information to allow the State agency to

determine the employment status or the job availability of the

individual;

(v) voluntarily and without good cause -

(I) quits a job; or

(II) reduces work effort and, after the reduction, the

individual is working less than 30 hours per week; or

(vi) fails to comply with section 2029 of this title.

(B) Household ineligibility. - If an individual who is the head

of a household becomes ineligible to participate in the food

stamp program under subparagraph (A), the household shall, at the

option of the State agency, become ineligible to participate in

the food stamp program for a period, determined by the State

agency, that does not exceed the lesser of -

(i) the duration of the ineligibility of the individual

determined under subparagraph (C); or

(ii) 180 days.

(C) Duration of ineligibility. -

(i) First violation. - The first time that an individual

becomes ineligible to participate in the food stamp program

under subparagraph (A), the individual shall remain ineligible

until the later of -

(I) the date the individual becomes eligible under

subparagraph (A);

(II) the date that is 1 month after the date the individual

became ineligible; or

(III) a date determined by the State agency that is not

later than 3 months after the date the individual became

ineligible.

(ii) Second violation. - The second time that an individual

becomes ineligible to participate in the food stamp program

under subparagraph (A), the individual shall remain ineligible

until the later of -

(I) the date the individual becomes eligible under

subparagraph (A);

(II) the date that is 3 months after the date the

individual became ineligible; or

(III) a date determined by the State agency that is not

later than 6 months after the date the individual became

ineligible.

(iii) Third or subsequent violation. - The third or

subsequent time that an individual becomes ineligible to

participate in the food stamp program under subparagraph (A),

the individual shall remain ineligible until the later of -

(I) the date the individual becomes eligible under

subparagraph (A);

(II) the date that is 6 months after the date the

individual became ineligible;

(III) a date determined by the State agency; or

(IV) at the option of the State agency, permanently.

(D) Administration. -

(i) Good cause. - The Secretary shall determine the meaning

of good cause for the purpose of this paragraph.

(ii) Voluntary quit. - The Secretary shall determine the

meaning of voluntarily quitting and reducing work effort for

the purpose of this paragraph.

(iii) Determination by state agency. -

(I) In general. - Subject to subclause (II) and clauses (i)

and (ii), a State agency shall determine -

(aa) the meaning of any term used in subparagraph (A);

(bb) the procedures for determining whether an individual

is in compliance with a requirement under subparagraph (A);

and

(cc) whether an individual is in compliance with a

requirement under subparagraph (A).

(II) Not less restrictive. - A State agency may not use a

meaning, procedure, or determination under subclause (I) that

is less restrictive on individuals receiving benefits under

this chapter than a comparable meaning, procedure, or

determination under a State program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(iv) Strike against the government. - For the purpose of

subparagraph (A)(v), an employee of the Federal Government, a

State, or a political subdivision of a State, who is dismissed

for participating in a strike against the Federal Government,

the State, or the political subdivision of the State shall be

considered to have voluntarily quit without good cause.

(v) Selecting a head of household. -

(I) In general. - For purposes of this paragraph, the State

agency shall allow the household to select any adult parent

of a child in the household as the head of the household if

all adult household members making application under the food

stamp program agree to the selection.

(II) Time for making designation. - A household may

designate the head of the household under subclause (I) each

time the household is certified for participation in the food

stamp program, but may not change the designation during a

certification period unless there is a change in the

composition of the household.

(vi) Change in head of household. - If the head of a

household leaves the household during a period in which the

household is ineligible to participate in the food stamp

program under subparagraph (B) -

(I) the household shall, if otherwise eligible, become

eligible to participate in the food stamp program; and

(II) if the head of the household becomes the head of

another household, the household that becomes headed by the

individual shall become ineligible to participate in the food

stamp program for the remaining period of ineligibility.

(2) A person who otherwise would be required to comply with the

requirements of paragraph (1) of this subsection shall be exempt

from such requirements if he or she is (A) currently subject to and

complying with a work registration requirement under title IV of

the Social Security Act, as amended (42 U.S.C. 602), or the

Federal-State unemployment compensation system, in which case,

failure by such person to comply with any work requirement to which

such person is subject shall be the same as failure to comply with

that requirement of paragraph (1); (B) a parent or other member of

a household with responsibility for the care of a dependent child

under age six or of an incapacitated person; (C) a bona fide

student enrolled at least half time in any recognized school,

training program, or institution of higher education (except that

any such person enrolled in an institution of higher education

shall be ineligible to participate in the food stamp program unless

he or she meets the requirements of subsection (e) of this

section); (D) a regular participant in a drug addiction or

alcoholic treatment and rehabilitation program; (E) employed a

minimum of thirty hours per week or receiving weekly earnings which

equal the minimum hourly rate under the Fair Labor Standards Act of

1938, as amended (29 U.S.C. 206(a)(1)), multiplied by thirty hours;

or (F) a person between the ages of sixteen and eighteen who is not

a head of a household or who is attending school, or enrolled in an

employment training program, on at least a half-time basis. A

State that requested a waiver to lower the age specified in

subparagraph (B) and had the waiver denied by the Secretary as of

August 1, 1996, may, for a period of not more than 3 years, lower

the age of a dependent child that qualifies a parent or other

member of a household for an exemption under subparagraph (B) to

between 1 and 6 years of age.

(3) Notwithstanding any other provision of law, a household shall

not participate in the food stamp program at any time that any

member of such household, not exempt from the work registration

requirements of paragraph (1) of this subsection, is on strike as

defined in section 142(2) of title 29, because of a labor dispute

(other than a lockout) as defined in section 152(9) of title 29:

Provided, That a household shall not lose its eligibility to

participate in the food stamp program as a result of one of its

members going on strike if the household was eligible for food

stamps immediately prior to such strike, however, such household

shall not receive an increased allotment as the result of a

decrease in the income of the striking member or members of the

household: Provided further, That such ineligibility shall not

apply to any household that does not contain a member on strike, if

any of its members refuses to accept employment at a plant or site

because of a strike or lockout.

(4) Employment and training. -

(A) In general. -

(i) Implementation. - Each State agency shall implement an

employment and training program designed by the State agency

and approved by the Secretary for the purpose of assisting

members of households participating in the food stamp program

in gaining skills, training, work, or experience that will

increase their ability to obtain regular employment.

(ii) Statewide workforce development system. - Each component

of an employment and training program carried out under this

paragraph shall be delivered through a statewide workforce

development system, unless the component is not available

locally through such a system.

(B) For purposes of this chapter, an ''employment and training

program'' means a program that contains one or more of the

following components, except that the State agency shall retain

the option to apply employment requirements prescribed under this

subparagraph to a program applicant at the time of application:

(i) Job search programs.

(ii) Job search training programs that include, to the extent

determined appropriate by the State agency, reasonable job

search training and support activities that may consist of jobs

skills assessments, job finding clubs, training in techniques

for employability, job placement services, or other direct

training or support activities, including educational programs,

determined by the State agency to expand the job search

abilities or employability of those subject to the program.

(iii) Workfare programs operated under section 2029 of this

title.

(iv) Programs designed to improve the employability of

household members through actual work experience or training,

or both, and to enable individuals employed or trained under

such programs to move promptly into regular public or private

employment. An employment or training experience program

established under this clause shall -

(I) not provide any work that has the effect of replacing

the employment of an individual not participating in the

employment or training experience program; and

(II) provide the same benefits and working conditions that

are provided at the job site to employees performing

comparable work for comparable hours.

(v) Educational programs or activities to improve basic

skills and literacy, or otherwise improve employability,

including educational programs determined by the State agency

to expand the job search abilities or employability of those

subject to the program under this paragraph.

(vi) Programs designed to increase the self-sufficiency of

recipients through self-employment, including programs that

provide instruction for self-employment ventures.

(vii) As approved by the Secretary or the State under

regulations issued by the Secretary, other employment,

educational and training programs, projects, and experiments,

such as a supported work program, aimed at accomplishing the

purpose of the employment and training program.

(C) The State agency may provide that participation in an

employment and training program may supplement or supplant other

employment-related requirements imposed on those subject to the

program.

(D)(i) Each State agency may exempt from any requirement for

participation in any program under this paragraph categories of

household members.

(ii) Each State agency may exempt from any requirement for

participation individual household members not included in any

category designated as exempt under clause (i).

(iii) Any exemption of a category or individual under this

subparagraph shall be periodically evaluated to determine whether

the exemption continues to be valid.

(E) Each State agency shall establish requirements for

participation by individuals not exempt under subparagraph (D) in

one or more employment and training programs under this

paragraph, including the extent to which any individual is

required to participate. Such requirements may vary among

participants.

(F)(i) The total hours of work in an employment and training

program carried out under this paragraph required of members of a

household, together with the hours of work of such members in any

program carried out under section 2029 of this title, in any

month collectively may not exceed a number of hours equal to the

household's allotment for such month divided by the higher of the

applicable State minimum wage or Federal minimum hourly rate

under the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)).

(ii) The total hours of participation in such program required

of any member of a household, individually, in any month,

together with any hours worked in another program carried out

under section 2029 of this title and any hours worked for

compensation (in cash or in kind) in any other capacity, shall

not exceed one hundred and twenty hours per month.

(G) The State agency may operate any program component under

this paragraph in which individuals elect to participate.

(H) Federal funds made available to a State agency for purposes

of the component authorized under subparagraph (B)(v) shall not

be used to supplant non-Federal funds used for existing services

and activities that promote the purposes of this component.

(I)(i) The State agency shall provide payments or

reimbursements to participants in programs carried out under this

paragraph, including individuals participating under subparagraph

(G), for -

(I) the actual costs of transportation and other actual costs

(other than dependent care costs), that are reasonably

necessary and directly related to participation in the program;

and

(II) the actual costs of such dependent care expenses that

are determined by the State agency to be necessary for the

participation of an individual in the program (other than an

individual who is the caretaker relative of a dependent in a

family receiving benefits under part A of title IV of the

Social Security Act (42 U.S.C. 601 et seq.) in a local area

where an employment, training, or education program under title

IV of such Act (42 U.S.C. 601 et seq.) is in operation), except

that no such payment or reimbursement shall exceed the

applicable local market rate. Individuals subject to the

program under this paragraph may not be required to participate

if dependent costs exceed the limit established by the State

agency under this subclause or other actual costs exceed any

limit established under subclause (I).

(ii) In lieu of providing reimbursements or payments for

dependent care expenses under clause (i), a State agency may, at

its option, arrange for dependent care through providers by the

use of purchase of service contracts or vouchers or by providing

vouchers to the household.

(iii) The value of any dependent care services provided for or

arranged under clause (ii), or any amount received as a payment

or reimbursement under clause (i), shall -

(I) not be treated as income for the purposes of any other

Federal or federally assisted program that bases eligibility

for, or the amount of benefits on, need; and

(II) not be claimed as an employment-related expense for the

purposes of the credit provided under section 21 of title 26.

(J) The Secretary shall promulgate guidelines that (i) enable

State agencies, to the maximum extent practicable, to design and

operate an employment and training program that is compatible and

consistent with similar programs operated within the State, and

(ii) ensure, to the maximum extent practicable, that employment

and training programs are provided for Indians on reservations.

(K) Limitation on funding. - Notwithstanding any other

provision of this paragraph, the amount of funds a State agency

uses to carry out this paragraph (including funds used to carry

out subparagraph (I)) for participants who are receiving benefits

under a State program funded under part A of title IV of the

Social Security Act (42 U.S.C. 601 et seq.) shall not exceed the

amount of funds the State agency used in fiscal year 1995 to

carry out this paragraph for participants who were receiving

benefits in fiscal year 1995 under a State program funded under

part A of title IV of the Act (42 U.S.C. 601 et seq.).

(L) The Secretary shall ensure that State agencies comply with

the requirements of this paragraph and section 2020(e)(22)

(FOOTNOTE 1) of this title.

(FOOTNOTE 1) See References in Text note below.

(M) The facilities of the State public employment offices and

other State agencies and providers carrying out activities under

title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801

et seq.) may be used to find employment and training

opportunities for household members under the programs under this

paragraph.

(e) Students

No individual who is a member of a household otherwise eligible

to participate in the food stamp program under this section shall

be eligible to participate in the food stamp program as a member of

that or any other household if the individual is enrolled at least

half-time in an institution of higher education, unless the

individual -

(1) is under age 18 or is age 50 or older;

(2) is not physically or mentally fit;

(3) is assigned to or placed in an institution of higher

education through or in compliance with the requirements of -

(A) a program under title I of the Workforce Investment Act

of 1998 (29 U.S.C. 2801 et seq.);

(B) an employment and training program under this section;

(C) a program under section 2296 of title 19; or

(D) another program for the purpose of employment and

training operated by a State or local government, as determined

to be appropriate by the Secretary;

(4) is employed a minimum of 20 hours per week or participating

in a State or federally financed work study program during the

regular school year;

(5) is -

(A) a parent with responsibility for the care of a dependent

child under age 6; or

(B) a parent with responsibility for the care of a dependent

child above the age of 5 and under the age of 12 for whom

adequate child care is not available to enable the individual

to attend class and satisfy the requirements of paragraph (4);

(6) is receiving benefits under a State program funded under

part A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.);

(7) is so enrolled as a result of participation in the work

incentive program under title IV of the Social Security Act (42

U.S.C. 601 et seq.) or its successor programs; or

(8) is enrolled full-time in an institution of higher

education, as determined by the institution, and is a single

parent with responsibility for the care of a dependent child

under age 12.

(f) Aliens

No individual who is a member of a household otherwise eligible

to participate in the food stamp program under this section shall

be eligible to participate in the food stamp program as a member of

that or any other household unless he or she is (1) a resident of

the United States and (2) either (A) a citizen or (B) an alien

lawfully admitted for permanent residence as an immigrant as

defined by sections 1101(a)(15) and 1101(a)(20) of title 8,

excluding, among others, alien visitors, tourists, diplomats, and

students who enter the United States temporarily with no intention

of abandoning their residence in a foreign country; or (C) an alien

who entered the United States prior to June 30, 1948, or such

subsequent date as is enacted by law, has continuously maintained

his or her residence in the United States since then, and is not

ineligible for citizenship, but who is deemed to be lawfully

admitted for permanent residence as a result of an exercise of

discretion by the Attorney General pursuant to section 1259 of

title 8; or (D) an alien who has qualified for conditional entry

pursuant to sections 1157 and 1158 of title 8; or (E) an alien who

is lawfully present in the United States as a result of an exercise

of discretion by the Attorney General for emergent reasons or

reasons deemed strictly in the public interest pursuant to section

1182(d)(5) of title 8; or (F) an alien within the United States as

to whom the Attorney General has withheld deportation pursuant to

section 1231(b)(3) of title 8. No aliens other than the ones

specifically described in clauses (B) through (F) of this

subsection shall be eligible to participate in the food stamp

program as a member of any household. The income (less, at State

option, a pro rata share) and financial resources of the individual

rendered ineligible to participate in the food stamp program under

this subsection shall be considered in determining the eligibility

and the value of the allotment of the household of which such

individual is a member.

(g) Residents of States which provide State supplementary payments

No individual who receives supplemental security income benefits

under title XVI of the Social Security Act (42 U.S.C. 1381 et

seq.), State supplementary payments described in section 1616 of

such Act (42 U.S.C. 1382e), or payments of the type referred to in

section 212(a) of Public Law 93-66, as amended, shall be considered

to be a member of a household for any month, if, for such month,

such individual resides in a State which provides State

supplementary payments (1) of the type described in section 1616(a)

of the Social Security Act (42 U.S.C. 1382e(a)) and section 212(a)

of Public Law 93-66, and (2) the level of which has been found by

the Commissioner of Social Security to have been specifically

increased so as to include the bonus value of food stamps.

(h) Transfer of assets to qualify

No household that knowingly transfers assets for the purpose of

qualifying or attempting to qualify for the food stamp program

shall be eligible to participate in the program for a period of up

to one year from the date of discovery of the transfer.

(i) Comparable treatment for disqualification

(1) In general

If a disqualification is imposed on a member of a household for

a failure of the member to perform an action required under a

Federal, State, or local law relating to a means-tested public

assistance program, the State agency may impose the same

disqualification on the member of the household under the food

stamp program.

(2) Rules and procedures

If a disqualification is imposed under paragraph (1) for a

failure of an individual to perform an action required under part

A of title IV of the Social Security Act (42 U.S.C. 601 et seq.),

the State agency may use the rules and procedures that apply

under part A of title IV of the Act to impose the same

disqualification under the food stamp program.

(3) Application after disqualification period

A member of a household disqualified under paragraph (1) may,

after the disqualification period has expired, apply for benefits

under this chapter and shall be treated as a new applicant,

except that a prior disqualification under subsection (d) of this

section shall be considered in determining eligibility.

(j) Disqualification for receipt of multiple food stamp benefits

An individual shall be ineligible to participate in the food

stamp program as a member of any household for a 10-year period if

the individual is found by a State agency to have made, or is

convicted in a Federal or State court of having made, a fraudulent

statement or representation with respect to the identity or place

of residence of the individual in order to receive multiple

benefits simultaneously under the food stamp program.

(k) Disqualification of fleeing felons

No member of a household who is otherwise eligible to participate

in the food stamp program shall be eligible to participate in the

program as a member of that or any other household during any

period during which the individual is -

(1) fleeing to avoid prosecution, or custody or confinement

after conviction, under the law of the place from which the

individual is fleeing, for a crime, or attempt to commit a crime,

that is a felony under the law of the place from which the

individual is fleeing or that, in the case of New Jersey, is a

high misdemeanor under the law of New Jersey; or

(2) violating a condition of probation or parole imposed under

a Federal or State law.

(l) Custodial parent's cooperation with child support agencies

(1) In general

At the option of a State agency, subject to paragraphs (2) and

(3), no natural or adoptive parent or other individual

(collectively referred to in this subsection as ''the

individual'') who is living with and exercising parental control

over a child under the age of 18 who has an absent parent shall

be eligible to participate in the food stamp program unless the

individual cooperates with the State agency administering the

program established under part D of title IV of the Social

Security Act (42 U.S.C. 651 et seq.) -

(A) in establishing the paternity of the child (if the child

is born out of wedlock); and

(B) in obtaining support for -

(i) the child; or

(ii) the individual and the child.

(2) Good cause for noncooperation

Paragraph (1) shall not apply to the individual if good cause

is found for refusing to cooperate, as determined by the State

agency in accordance with standards prescribed by the Secretary

in consultation with the Secretary of Health and Human Services.

The standards shall take into consideration circumstances under

which cooperation may be against the best interests of the child.

(3) Fees

Paragraph (1) shall not require the payment of a fee or other

cost for services provided under part D of title IV of the Social

Security Act (42 U.S.C. 651 et seq.).

(m) Noncustodial parent's cooperation with child support agencies

(1) In general

At the option of a State agency, subject to paragraphs (2) and

(3), a putative or identified noncustodial parent of a child

under the age of 18 (referred to in this subsection as ''the

individual'') shall not be eligible to participate in the food

stamp program if the individual refuses to cooperate with the

State agency administering the program established under part D

of title IV of the Social Security Act (42 U.S.C. 651 et seq.) -

(A) in establishing the paternity of the child (if the child

is born out of wedlock); and

(B) in providing support for the child.

(2) Refusal to cooperate

(A) Guidelines

The Secretary, in consultation with the Secretary of Health

and Human Services, shall develop guidelines on what

constitutes a refusal to cooperate under paragraph (1).

(B) Procedures

The State agency shall develop procedures, using guidelines

developed under subparagraph (A), for determining whether an

individual is refusing to cooperate under paragraph (1).

(3) Fees

Paragraph (1) shall not require the payment of a fee or other

cost for services provided under part D of title IV of the Social

Security Act (42 U.S.C. 651 et seq.).

(4) Privacy

The State agency shall provide safeguards to restrict the use

of information collected by a State agency administering the

program established under part D of title IV of the Social

Security Act (42 U.S.C. 651 et seq.) to purposes for which the

information is collected.

(n) Disqualification for child support arrears

(1) In general

At the option of a State agency, no individual shall be

eligible to participate in the food stamp program as a member of

any household during any month that the individual is delinquent

in any payment due under a court order for the support of a child

of the individual.

(2) Exceptions

Paragraph (1) shall not apply if -

(A) a court is allowing the individual to delay payment; or

(B) the individual is complying with a payment plan approved

by a court or the State agency designated under part D of title

IV of the Social Security Act (42 U.S.C. 651 et seq.) to

provide support for the child of the individual.

(o) Work requirement

(1) ''Work program'' defined

In this subsection, the term ''work program'' means -

(A) a program under the (FOOTNOTE 2) title I of the Workforce

Investment Act of 1998 (29 U.S.C. 2801 et seq.);

(FOOTNOTE 2) So in original. The word ''the'' probably should

not appear.

(B) a program under section 2296 of title 19; and

(C) a program of employment and training operated or

supervised by a State or political subdivision of a State that

meets standards approved by the Governor of the State,

including a program under subsection (d)(4) of this section,

other than a job search program or a job search training

program.

(2) Work requirement

Subject to the other provisions of this subsection, no

individual shall be eligible to participate in the food stamp

program as a member of any household if, during the preceding

36-month period, the individual received food stamp benefits for

not less than 3 months (consecutive or otherwise) during which

the individual did not -

(A) work 20 hours or more per week, averaged monthly;

(B) participate in and comply with the requirements of a work

program for 20 hours or more per week, as determined by the

State agency;

(C) participate in and comply with the requirements of a

program under section 2029 of this title or a comparable

program established by a State or political subdivision of a

State; or

(D) receive benefits pursuant to paragraph (3), (4), (5), or

(6).

(3) Exception

Paragraph (2) shall not apply to an individual if the

individual is -

(A) under 18 or over 50 years of age;

(B) medically certified as physically or mentally unfit for

employment;

(C) a parent or other member of a household with

responsibility for a dependent child;

(D) otherwise exempt under subsection (d)(2) of this section;

or

(E) a pregnant woman.

(4) Waiver

(A) In general

On the request of a State agency, the Secretary may waive the

applicability of paragraph (2) to any group of individuals in

the State if the Secretary makes a determination that the area

in which the individuals reside -

(i) has an unemployment rate of over 10 percent; or

(ii) does not have a sufficient number of jobs to provide

employment for the individuals.

(B) Report

The Secretary shall report the basis for a waiver under

subparagraph (A) to the Committee on Agriculture of the House

of Representatives and the Committee on Agriculture, Nutrition,

and Forestry of the Senate.

(5) Subsequent eligibility

(A) Regaining eligibility

An individual denied eligibility under paragraph (2) shall

regain eligibility to participate in the food stamp program if,

during a 30-day period, the individual -

(i) works 80 or more hours;

(ii) participates in and complies with the requirements of

a work program for 80 or more hours, as determined by a State

agency; or

(iii) participates in and complies with the requirements of

a program under section 2029 of this title or a comparable

program established by a State or political subdivision of a

State.

(B) Maintaining eligibility

An individual who regains eligibility under subparagraph (A)

shall remain eligible as long as the individual meets the

requirements of subparagraph (A), (B), or (C) of paragraph (2).

(C) Loss of employment

(i) In general

An individual who regained eligibility under subparagraph

(A) and who no longer meets the requirements of subparagraph

(A), (B), or (C) of paragraph (2) shall remain eligible for a

consecutive 3-month period, beginning on the date the

individual first notifies the State agency that the

individual no longer meets the requirements of subparagraph

(A), (B), or (C) of paragraph (2).

(ii) Limitation

An individual shall not receive any benefits pursuant to

clause (i) for more than a single 3-month period in any

36-month period.

(6) 15-percent exemption

(A) Definitions

In this paragraph:

(i) Caseload

The term ''caseload'' means the average monthly number of

individuals receiving food stamps during the 12-month period

ending the preceding June 30.

(ii) Covered individual

The term ''covered individual'' means a food stamp

recipient, or an individual denied eligibility for food stamp

benefits solely due to paragraph (2), who -

(I) is not eligible for an exception under paragraph (3);

(II) does not reside in an area covered by a waiver

granted under paragraph (4);

(III) is not complying with subparagraph (A), (B), or (C)

of paragraph (2);

(IV) is not receiving food stamp benefits during the 3

months of eligibility provided under paragraph (2); and

(V) is not receiving food stamp benefits under paragraph

(5).

(B) General rule

Subject to subparagraphs (C) through (G), a State agency may

provide an exemption from the requirements of paragraph (2) for

covered individuals.

(C) Fiscal year 1998

Subject to subparagraphs (E) and (G), for fiscal year 1998, a

State agency may provide a number of exemptions such that the

average monthly number of the exemptions in effect during the

fiscal year does not exceed 15 percent of the number of covered

individuals in the State in fiscal year 1998, as estimated by

the Secretary, based on the survey conducted to carry out

section 2025(c) of this title for fiscal year 1996 and such

other factors as the Secretary considers appropriate due to the

timing and limitations of the survey.

(D) Subsequent fiscal years

Subject to subparagraphs (E) through (G), for fiscal year

1999 and each subsequent fiscal year, a State agency may

provide a number of exemptions such that the average monthly

number of the exemptions in effect during the fiscal year does

not exceed 15 percent of the number of covered individuals in

the State, as estimated by the Secretary under subparagraph

(C), adjusted by the Secretary to reflect changes in the

State's caseload and the Secretary's estimate of changes in the

proportion of food stamp recipients covered by waivers granted

under paragraph (4).

(E) Caseload adjustments

The Secretary shall adjust the number of individuals

estimated for a State under subparagraph (C) or (D) during a

fiscal year if the number of food stamp recipients in the State

varies from the State's caseload by more than 10 percent, as

determined by the Secretary.

(F) Exemption adjustments

During fiscal year 1999 and each subsequent fiscal year, the

Secretary shall increase or decrease the number of individuals

who may be granted an exemption by a State agency under this

paragraph to the extent that the average monthly number of

exemptions in effect in the State for the preceding fiscal year

under this paragraph is lesser or greater than the average

monthly number of exemptions estimated for the State agency for

such preceding fiscal year under this paragraph.

(G) Reporting requirement

A State agency shall submit such reports to the Secretary as

the Secretary determines are necessary to ensure compliance

with this paragraph.

(7) Other program rules

Nothing in this subsection shall make an individual eligible

for benefits under this chapter if the individual is not

otherwise eligible for benefits under the other provisions of

this chapter.

-SOURCE-

(Pub. L. 88-525, Sec. 6, Aug. 31, 1964, 78 Stat. 704; Pub. L.

94-339, Sec. 3, July 5, 1976, 90 Stat. 800; Pub. L. 95-113, title

XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 964; Pub. L. 96-58, Sec.

5, 9, Aug. 14, 1979, 93 Stat. 391, 392; Pub. L. 96-249, title I,

Sec. 109, 110, 114, 115, 139, 140, May 26, 1980, 94 Stat. 359, 361,

370; Pub. L. 97-35, title I, Sec. 108(b), (c), 109, 112, Aug. 13,

1981, 95 Stat. 361, 362; Pub. L. 97-98, title XIII, Sec. 1310,

1311, Dec. 22, 1981, 95 Stat. 1284, 1285; Pub. L. 97-253, title I,

Sec. 145(e), 154-161, 189(b)(1), 190(a), (b), Sept. 8, 1982, 96

Stat. 774, 777, 778, 787; Pub. L. 98-204, Sec. 5, 6, Dec. 2, 1983,

97 Stat. 1385, 1386; Pub. L. 99-198, title XV, Sec. 1513(b), 1516,

1517(a), Dec. 23, 1985, 99 Stat. 1571-1573; Pub. L. 100-435, title

II, Sec. 202(b), (c), title IV, Sec. 404(a)-(d), Sept. 19, 1988,

102 Stat. 1656, 1665-1667; Pub. L. 101-624, title XVII, Sec.

1723-1726(b)(1), (c), (d), 1727, Nov. 28, 1990, 104 Stat.

3786-3788; Pub. L. 102-237, title IX, Sec. 907, 941(3), Dec. 13,

1991, 105 Stat. 1885, 1892; Pub. L. 103-66, title XIII, Sec.

13922(b), 13942, Aug. 10, 1993, 107 Stat. 675, 677; Pub. L.

103-225, title I, Sec. 101(a), 104(b), Mar. 25, 1994, 108 Stat.

106, 107; Pub. L. 103-296, title I, Sec. 108(f)(1), (2), Aug. 15,

1994, 108 Stat. 1486, 1487; Pub. L. 104-193, title I, Sec. 109(b),

title VIII, Sec. 813-815(a), 816, 817(a), 818, 819(a), (c),

820-824(a), Aug. 22, 1996, 110 Stat. 2169, 2314, 2315, 2318,

2320-2323; Pub. L. 104-208, div. C, title III, Sec.

308(g)(7)(D)(i), Sept. 30, 1996, 110 Stat. 3009-624; Pub. L.

105-33, title I, Sec. 1001, Aug. 5, 1997, 111 Stat. 251; Pub. L.

105-277, div. A, Sec. 101(f) (title VIII, Sec. 405(d)(2)(B),

(f)(2)(B)), Oct. 21, 1998, 112 Stat. 2681-337, 2681-418, 2681-429;

Pub. L. 107-171, title IV, Sec. 4109, 4115(b)(2), 4121(c), May 13,

2002, 116 Stat. 309, 315, 324.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (c)(3), (5),

(d)(1)(D)(iii)(II), (2), (4)(I)(i)(II), (K), (e)(6), (7), (g),

(i)(2), (l)(1), (3), (m), and (n)(2)(B), is act Aug. 14, 1935, ch.

531, 49 Stat. 620, as amended, which is classified generally to

chapter 7 (Sec. 301 et seq.) of Title 42, The Public Health and

Welfare. Part D of title IV of the Act is classified generally to

part D (Sec. 651 et seq.) of subchapter IV of chapter 7 of Title

42. Title IV-A of the Act (part A of title IV) is classified

generally to part A (Sec. 601 et seq.) of subchapter IV of chapter

7 of Title 42. Titles IV and XVI of the Social Security Act are

classified generally to subchapters IV (Sec. 601 et seq.) and XVI

(Sec. 1381 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.

The Fair Labor Standards Act of 1938, as amended, referred to in

subsec. (d)(2), (4)(F)(i), is act June 25, 1938, ch. 676, 52 Stat.

1060, as amended, which is classified generally to chapter 8 (Sec.

201 et seq.) of Title 29, Labor. For complete classification of

this Act to the Code, see section 201 of Title 29 and Tables.

Section 2020(e)(22) of this title, referred to in subsec.

(d)(4)(L), was redesignated section 2020(e)(21) of this title by

Pub. L. 104-193, title VIII, Sec. 835(1)(D)(i), Aug. 22, 1996, 110

Stat. 2330.

The Workforce Investment Act of 1998, referred to in subsecs.

(d)(4)(M), (e)(3)(A), and (o)(1)(A), is Pub. L. 105-220, Aug. 7,

1998, 112 Stat. 936, as amended. Title I of the Act is classified

principally to chapter 30 (Sec. 2801 et seq.) of Title 29, Labor.

For complete classification of this Act to the Code, see Short

Title note set out under section 9201 of Title 20, Education, and

Tables.

Section 212(a) of Pub. L. 93-66, referred to in subsec. (g), is

Pub. L. 93-66, title II, Sec. 212(a), July 9, 1973, 87 Stat. 155,

which is set out as a note under section 1382 of Title 42, The

Public Health and Welfare.

-MISC2-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-171, Sec. 4115(b)(2), substituted

''Except in a case in which a household is receiving transitional

benefits during the transitional benefits period under section

2020(s) of this title, no household'' for ''No household'' in

introductory provisions.

Subsec. (c)(1)(B). Pub. L. 107-171, Sec. 4109(1), struck out ''on

a monthly basis'' after ''periodic reports''.

Subsec. (c)(1)(D). Pub. L. 107-171, Sec. 4109(2), added subpar.

(D).

Subsec. (d)(4)(I)(i)(I). Pub. L. 107-171, Sec. 4121(c), struck

out '', except that the State agency may limit such reimbursement

to each participant to $25 per month'' before semicolon.

1998 - Subsec. (d)(4)(M). Pub. L. 105-277, Sec. 101(f) (title

VIII, Sec. 405(f)(2)(B)(i)), struck out ''the State public

employment offices and agencies operating programs under the Job

Training Partnership Act or of'' after ''The facilities of''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec. 405(d)(2)(B)(i)),

substituted ''the State public employment offices and agencies

operating programs under the Job Training Partnership Act or of the

State public employment offices and other State agencies and

providers carrying out activities under title I of the Workforce

Investment Act of 1998'' for ''the State public employment offices

and agencies operating programs under the Job Training Partnership

Act''.

Subsec. (e)(3)(A). Pub. L. 105-277, Sec. 101(f) (title VIII, Sec.

405(f)(2)(B)(ii)), added subpar. (A) and struck out former subpar.

(A) which read as follows: ''a program under the Job Training

Partnership Act or title I of the Workforce Investment Act of

1998;''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec. 405(d)(2)(B)(ii)),

added subpar. (A) and struck out former subpar. (A) which read as

follows: ''a program under the Job Training Partnership Act (29

U.S.C. 1501 et seq.);''.

Subsec. (o)(1)(A). Pub. L. 105-277, Sec. 101(f) (title VIII, Sec.

405(f)(2)(B)(iii)), struck out ''Job Training Partnership Act or''

before ''title I''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec.

405(d)(2)(B)(iii)), substituted ''Job Training Partnership Act or

title I of the Workforce Investment Act of 1998'' for ''Job

Training Partnership Act (29 U.S.C. 1501 et seq.)''

1997 - Subsec. (o)(2)(D). Pub. L. 105-33, Sec. 1001(1),

substituted ''(5), or (6)'' for ''or (5)''.

Subsec. (o)(6), (7). Pub. L. 105-33, Sec. 1001(2), (3), added

par. (6) and redesignated former par. (6) as (7).

1996 - Subsec. (b)(1)(i). Pub. L. 104-193, Sec. 813(1),

substituted ''1 year'' for ''six months''.

Subsec. (b)(1)(ii). Pub. L. 104-193, Sec. 813(2), substituted ''2

years'' for ''1 year''.

Subsec. (b)(1)(iii)(IV). Pub. L. 104-193, Sec. 814, added subcl.

(IV).

Subsec. (c)(5). Pub. L. 104-193, Sec. 109(b)(1), substituted

''the State program funded'' for ''the State plan approved''.

Subsec. (d). Pub. L. 104-193, Sec. 815(a), inserted subsec.

heading.

Subsec. (d)(1). Pub. L. 104-193, Sec. 815(a), added par. (1) and

struck out former par. (1) which related to ineligibility in case

of refusal of person or head of household to register for or accept

employment.

Subsec. (d)(2). Pub. L. 104-193, Sec. 816, 819(c), struck out

''that is comparable to a requirement of paragraph (1)'' after

''person is subject'' in cl. (A) and inserted at end ''A State that

requested a waiver to lower the age specified in subparagraph (B)

and had the waiver denied by the Secretary as of August 1, 1996,

may, for a period of not more than 3 years, lower the age of a

dependent child that qualifies a parent or other member of a

household for an exemption under subparagraph (B) to between 1 and

6 years of age.''

Subsec. (d)(4). Pub. L. 104-193, Sec. 817(a)(1), inserted par.

heading.

Subsec. (d)(4)(A). Pub. L. 104-193, Sec. 817(a)(1), (2), inserted

subpar. heading, designated existing provisions as cl. (i),

inserted heading, substituted ''Each State'' for ''Not later than

April 1, 1987, each State'', inserted ''work,'' after ''skills,

training,'', and added cl. (ii).

Subsec. (d)(4)(B). Pub. L. 104-193, Sec. 817(a)(3), in

introductory provisions, inserted before colon '', except that the

State agency shall retain the option to apply employment

requirements prescribed under this subparagraph to a program

applicant at the time of application'', in cl. (i), struck out

''with terms and conditions comparable to those prescribed in

subparagraphs (A) and (B) of section 402(a)(35) of part A of title

IV of the Social Security Act, except that the State agency shall

retain the option to apply employment requirements prescribed under

this clause to program applicants at the time of application''

after ''search programs'', and in cl. (iv), redesignated subcls.

(III) and (IV) as (I) and (II), respectively, and struck out former

subcls. (I) and (II) which read as follows:

''(I) limit employment experience assignments to projects that

serve a useful public purpose in fields such as health, social

services, environmental protection, urban and rural development and

redevelopment, welfare, recreation, public facilities, public

safety, and day care;

''(II) to the extent possible, use the prior training,

experience, and skills of the participating member in making

appropriate employment or training experience assignments;''.

Subsec. (d)(4)(D). Pub. L. 104-193, Sec. 817(a)(4), in cl. (i),

struck out ''to which the application of such participation

requirement is impracticable as applied to such categories due to

factors such as the availability of work opportunities and the

cost-effectiveness of the employment requirements. In making such

a determination, the State agency may designate a category

consisting of all such household members residing in a specific

area of the State. Each State may exempt, with the approval of the

Secretary, members of households that have participated in the food

stamp program 30 days or less'' after ''household members'', in cl.

(ii), struck out ''but with respect to whom such participation is

impracticable because of personal circumstances such as lack of job

readiness and employability, the remote location of work

opportunities, and unavailability of child care'' after ''clause

(i)'', and in cl. (iii), substituted ''the exemption continues to

be valid'' for '', on the basis of the factors used to make a

determination under clause (i) or (ii), the exemption continues to

be valid. Such evaluations shall occur no less often than at each

certification or recertification in the case of exemptions under

clause (ii)''.

Subsec. (d)(4)(E). Pub. L. 104-193, Sec. 817(a)(5), struck out at

end ''Through September 30, 1995, two States may, on application to

and after approval by the Secretary, give priority in the provision

of services to voluntary participants (including both exempt and

non-exempt participants), except that this sentence shall not

excuse a State from compliance with the performance standards

issued under subparagraphs (K) and (L), and the Secretary may, at

the Secretary's discretion, approve additional States' requests to

give such priority if the Secretary reports to Congress on the

number and characteristics of voluntary participants given priority

under this sentence and such other information as the Secretary

determines to be appropriate.''

Subsec. (d)(4)(G). Pub. L. 104-193, Sec. 817(a)(6), struck out

''(i)'' after ''(G)'' and struck out cl. (ii) which read as

follows: ''The State agency shall permit, to the extent it

determines practicable, individuals not subject to requirements

imposed under subparagraph (E) or who have complied, or are in the

process of complying, with such requirements to participate in any

program under this paragraph.''

Subsec. (d)(4)(H). Pub. L. 104-193, Sec. 817(a)(7), struck out

''(ii)'' before ''Federal funds'' and struck out cl. (i) which read

as follows: ''The Secretary shall issue regulations under which

each State agency shall establish a conciliation procedure for the

resolution of disputes involving the participation of an individual

in the program.''

Subsec. (d)(4)(I)(i)(II). Pub. L. 104-193, Sec. 817(a)(8),

substituted ''), except that no such payment or reimbursement shall

exceed the applicable local market rate'' for '', or was in

operation, on September 19, 1988) up to any limit set by the State

agency (which limit shall not be less than the limit for the

dependent care deduction under section 2014(e) of this title), but

in no event shall such payment or reimbursements exceed the

applicable local market rate as determined by procedures consistent

with any such determination under the Social Security Act''.

Subsec. (d)(4)(K). Pub. L. 104-193, Sec. 817(a)(9)(A), added

subpar. (K) and struck out former subpar. (K) which authorized

establishment of performance standards for each State that, in case

of persons who were subject to employment requirements under this

section and who were not exempt under subpar. (D), designated

minimum percentages (not to exceed 10 percent in fiscal years 1992

and 1993, and 15 percent in fiscal years 1994 and 1995) of such

persons that State agencies were to place in employment and

training programs.

Subsec. (d)(4)(L). Pub. L. 104-193, Sec. 817(a)(10), struck out

''(i)'' before ''The Secretary'' and struck out cl. (ii) which read

as follows: ''If the Secretary determines that a State agency has

failed, without good cause, to comply with such a requirement,

including any failure to meet a performance standard under

subparagraph (J), the Secretary may withhold from such State, in

accordance with section 2025(a), (c), and (h) of this title, such

funds as the Secretary determines to be appropriate, subject to

administrative and judicial review under section 2023 of this

title.''

Pub. L. 104-193, Sec. 817(a)(9), redesignated subpar. (M) as (L)

and struck out former subpar. (L) which authorized Secretary to

establish performance standards and measures applicable to

employment and training programs that were based on employment

outcomes, including increases in earnings.

Subsec. (d)(4)(M), (N). Pub. L. 104-193, Sec. 817(a)(9)(B),

redesignated subpars. (M) and (N) as (L) and (M), respectively.

Subsec. (e)(6). Pub. L. 104-193, Sec. 109(b)(2), substituted

''benefits under a State program funded'' for ''aid to families

with dependent children''.

Subsec. (f). Pub. L. 104-193, Sec. 818, in last sentence,

inserted '', at State option,'' after ''(less''.

Subsec. (f)(2)(F). Pub. L. 104-208 substituted ''1231(b)(3)'' for

''1253(h)''.

Subsec. (i). Pub. L. 104-193, Sec. 819(a), added subsec. (i).

Subsec. (j). Pub. L. 104-193, Sec. 820, added subsec. (j).

Subsec. (k). Pub. L. 104-193, Sec. 821, added subsec. (k).

Subsecs. (l), (m). Pub. L. 104-193, Sec. 822, added subsecs. (l)

and (m).

Subsec. (n). Pub. L. 104-193, Sec. 823, added subsec. (n).

Subsec. (o). Pub. L. 104-193, Sec. 824(a), added subsec. (o).

1994 - Subsec. (c)(1)(A)(ii) to (iv). Pub. L. 103-225, Sec.

101(a)(1), redesignated cls. (iii) and (iv) as (ii) and (iii),

respectively, and struck out former cl. (ii) which read

''households residing on a reservation;''.

Subsec. (c)(1)(C). Pub. L. 103-225, Sec. 101(a)(2), added subpar.

(C).

Subsec. (c)(3). Pub. L. 103-296, Sec. 108(f)(1), inserted ''the

Commissioner of Social Security and'' before ''the Secretary of

Health and Human Services''.

Subsec. (c)(4). Pub. L. 103-225, Sec. 104(b), substituted

''Except as provided in paragraph (1)(C), any'' for ''Any''.

Subsec. (g). Pub. L. 103-296, Sec. 108(f)(2), substituted

''Commissioner of Social Security'' for ''Secretary of Health and

Human Services''.

1993 - Subsec. (b)(1)(ii), (iii). Pub. L. 103-66, Sec. 13942,

added cls. (ii) and (iii) and struck out former cls. (ii) and (iii)

which read as follows:

''(ii) for a period of one year upon the second occasion of any

such determination; and

''(iii) permanently upon the third occasion of any such

determination.''

Subsec. (d)(4)(I)(i)(II). Pub. L. 103-66, Sec. 13922(b), amended

subcl. (II) generally. Prior to amendment, subcl. (II) read as

follows: ''the actual costs of such dependent care expenses that

are determined by the State agency to be necessary for the

participation of an individual in the program (other than an

individual who is the caretaker relative of a dependent in a family

receiving benefits under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.) in a local area where an employment,

training, or education program under title IV of such Act is in

operation or was in operation, on September 19, 1988), but in no

event shall such payment or reimbursements exceed $160 per

dependent per month. Individuals subject to the program under this

paragraph may not be required to participate if dependent care

costs exceed $160 per dependent per month.''

1991 - Subsec. (c)(1)(A)(ii). Pub. L. 102-237, Sec. 941(3)(A),

realigned margin.

Subsec. (d)(1)(A). Pub. L. 102-237, Sec. 941(3)(B), substituted

''who is a physically'' for ''who is physically'', ''Secretary;

(ii) refuses'' for ''Secretary; (ii) refuses'' requiring no change

in text, and ''two months; or (iii) refuses'' for ''two months;

(iii) refuses''.

Subsec. (d)(4)(B)(vii). Pub. L. 102-237, Sec. 941(3)(C),

substituted ''Secretary,'' for ''Secretary,,'' and ''aimed at'' for

''aimed an''.

Subsec. (d)(4)(D)(iii). Pub. L. 102-237, Sec. 941(3)(D),

substituted ''clause (i) or (ii)'' for ''clauses (i) or (ii)''.

Subsec. (d)(4)(I)(i)(II). Pub. L. 102-237, Sec. 941(3)(E),

substituted ''601 et seq.)'' for ''601 et seq.))'' and ''), but

in'' for '', but in''.

Subsec. (d)(4)(K)(i). Pub. L. 102-237, Sec. 907(b), substituted

''10 percent in fiscal years 1992 and 1993, and 15 percent in

fiscal years 1994 and 1995'' for ''50 percent through September 30,

1989'' and inserted at end ''The Secretary shall not require the

plan of a State agency to provide for the participation of a number

of recipients greater than 10 percent in fiscal years 1992 and

1993, and 15 percent in fiscal years 1994 and 1995, of the persons

who are subject to employment requirements under this section and

who are not exempt under subparagraph (D).''

Subsec. (d)(4)(L). Pub. L. 102-237, Sec. 907(a), amended subpar.

(L) generally, substituting present provisions for provisions

requiring establishment of performance standards by the Secretary,

after consultation with the Office of Technology Assessment,

Secretary of Labor, Secretary of Health and Human Services, and

appropriate designated State officials, which standards were to be

coordinated with the corresponding standards under the Job Training

Partnership Act and the performance standards under title IV of the

Social Security Act, which were to permit variations to take into

account differing conditions in different States, and which were to

be published and implemented not later than Oct. 1, 1991, and

directing the Office of Technology Assessment, not later than 180

days after the Secretary publishes proposed measures for

performance standards, to develop model performance standards,

compare these standards with the Secretary, and report the result

of such comparison to the Speaker of the House of Representatives,

President pro tempore of the Senate, and Secretary of Agriculture.

1990 - Subsec. (c)(1)(A)(ii) to (iv). Pub. L. 101-624, Sec. 1723,

added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii)

and (iv), respectively.

Subsec. (c)(2)(C). Pub. L. 101-624, Sec. 1724(1), substituted

''State agency designed forms'' for ''forms approved by the

Secretary''.

Subsec. (c)(3). Pub. L. 101-624, Sec. 1724(2), substituted ''they

contain the information relevant to eligibility and benefit

determinations that is specified by the State agency'' for '', in

accordance with standards prescribed by the Secretary, they contain

sufficient information to enable the State agency to determine

household eligibility and allotment levels''.

Subsec. (d)(1). Pub. L. 101-624, Sec. 1725, inserted after first

sentence ''The State agency shall allow the household to select an

adult parent of children in the household as its head where all

adult household members making application agree to the selection.

The household may designate its head of household under this

paragraph each time the household is certified for participation in

the food stamp program, but may not change the designation during a

certification period unless there is a change in the composition of

the household.''

Subsec. (d)(4)(B)(v). Pub. L. 101-624, Sec. 1726(a), inserted

''and literacy,'' after ''basic skills''.

Subsec. (d)(4)(B)(vi), (vii). Pub. L. 101-624, Sec. 1726(b)(1),

added cl. (vi) and redesignated former cl. (vi) as (vii).

Subsec. (d)(4)(E). Pub. L. 101-624, Sec. 1726(c), inserted at end

''Through September 30, 1995, two States may, on application to and

after approval by the Secretary, give priority in the provision of

services to voluntary participants (including both exempt and

non-exempt participants), except that this sentence shall not

excuse a State from compliance with the performance standards

issued under subparagraphs (K) and (L), and the Secretary may, at

the Secretary's discretion, approve additional States' requests to

give such priority if the Secretary reports to Congress on the

number and characteristics of voluntary participants given priority

under this sentence and such other information as the Secretary

determines to be appropriate.''

Subsec. (d)(4)(L)(iii). Pub. L. 101-624, Sec. 1726(d),

substituted ''October'' for ''April''.

Subsec. (e). Pub. L. 101-624, Sec. 1727, amended subsec. (e)

generally. Prior to amendment, subsec. (e) read as follows: ''No

individual who is a member of a household otherwise eligible to

participate in the food stamp program under this section shall be

eligible to participate in the food stamp program as a member of

that or any other household if he or she (1) is physically and

mentally fit and is between the ages of eighteen and sixty, (2) is

enrolled at least half time in an institution of higher education,

or is an individual who is not assigned to or placed in an

institution of higher learning through a program under the Job

Training Partnership Act, and (3)(A) is not employed a minimum of

twenty hours per week or does not participate in a federally

financed work study program during the regular school year; (B) is

not a parent with responsibility for the care of a dependent child

under age six; (C) is not a parent with responsibility for the care

of a dependent child above the age of five and under the age of

twelve for whom adequate child care is not available; (D) is not

receiving aid to families with dependent children under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.); or (E)

is not so enrolled as a result of participation in the work

incentive program under title IV of the Social Security Act, as

amended (42 U.S.C. 602).''

1988 - Subsec. (c)(1). Pub. L. 100-435, Sec. 202(b), substituted

subpars. (A) and (B) for undesignated provisions requiring

households with household income determined on retrospective basis

to file periodic reports with system of less frequent reporting for

certain categories of households.

Subsec. (c)(2). Pub. L. 100-435, Sec. 202(c), added cl. (E).

Subsec. (d)(4)(B)(i). Pub. L. 100-435, Sec. 404(a)(1), struck out

''have no obligation to incur costs exceeding $25 per participant

per month, as provided in subparagraph (B)(vi), and the State

agency shall'' before ''retain the option''.

Subsec. (d)(4)(B)(v). Pub. L. 100-435, Sec. 404(a)(3), (4), added

cl. (v). Former cl. (v) redesignated (vi).

Subsec. (d)(4)(B)(vi). Pub. L. 100-435, Sec. 404(a)(2), (3),

redesignated former cl. (v) as (vi) and inserted ''or the State

under regulations issued by the Secretary,'' after ''the

Secretary'' and ''employment, educational and training'' after

''other''.

Subsec. (d)(4)(H). Pub. L. 100-435, Sec. 404(b), added subpar.

(H). Former subpar. (H) redesignated (I).

Subsec. (d)(4)(I). Pub. L. 100-435, Sec. 404(b)(1), (c),

redesignated subpar. (H) as (I) and amended subpar. generally.

Prior to amendment, subpar. (I) read as follows: ''The State agency

shall reimburse participants in programs carried out under this

paragraph, including those participating under subparagraph (G),

for the actual costs of transportation, and other actual costs,

that are reasonably necessary and directly related to participation

in the program, except that the State agency may limit such

reimbursement to each participant to $25 per month.'' Former

subpar. (I) redesignated (J).

Subsec. (d)(4)(J), (K). Pub. L. 100-435, Sec. 404(b)(1),

redesignated subpars. (I) and (J) as (J) and (K), respectively.

Former subpar. (K) redesignated (M).

Subsec. (d)(4)(L). Pub. L. 100-435, Sec. 404(b)(1), (d), added

subpar. (L) and redesignated former subpar. (L) as (N).

Subsec. (d)(4)(M), (N). Pub. L. 100-435, Sec. 404(b)(1),

redesignated former subpars. (K) and (L) as (M) and (N),

respectively.

1985 - Subsec. (c)(1). Pub. L. 99-198, Sec. 1513(b)(1), amended

first sentence generally. Prior to amendment, first sentence read

as follows: ''State agencies shall require certain categories of

households, including all households with earned income, except

migrant farmworker households, all households with potential

earners, including individuals receiving unemployment compensation

benefits and individuals required by subsection (d) of this section

to register for work, and all households required to file a similar

report under title IV-A of the Social Security Act, but not

including households that have no earned income and in which all

adult members are elderly or disabled members, to file periodic

reports of household circumstances in accordance with standards

prescribed by the Secretary, except that a State agency may, with

the prior approval of the Secretary, select categories of

households which may report at specified less frequent intervals

upon a showing by the State agency, which is satisfactory to the

Secretary, that to require households in such categories to report

monthly would result in unwarranted expenditures for administration

of this subsection.''

Pub. L. 99-198, Sec. 1513(b)(2), inserted after second sentence,

provision empowering State agencies to require households, other

than households with respect to which household income is required

by section 2014(f)(2)(A) of this title to be calculated on a

prospective basis, to file periodic reports of household

circumstances in accordance with the standards prescribed by the

Secretary under the preceding provisions of this paragraph.

Subsec. (d)(1). Pub. L. 99-198, Sec. 1516(2), inserted sentences

at end of par. (1) directing that any period of ineligibility for

violations under this paragraph shall end when the household member

who committed the violation complies with the requirement that has

been violated, and that if the household member who committed the

violation leaves the household during the period of ineligibility,

such household shall no longer be subject to sanction for such

violation and, if it is otherwise eligible, may resume

participation in the food stamp program, but any other household of

which such person thereafter becomes the head of the household

shall be ineligible for the balance of the period of ineligibility.

Subsec. (d)(1)(A). Pub. L. 99-198, Sec. 1516(1)(A), (B),

designated existing provisions of first sentence of par. (1) as cl.

(A) and in provisions of cl. (A) as so designated substituted ''no

person shall be eligible to participate in the food stamp program

who is a physically and mentally fit person between the ages of

sixteen and sixty'' for ''no household shall be eligible for

assistance under this chapter if it includes a physically and

mentally fit person between the ages of eighteen and sixty'' in

provisions preceding subcl. (i).

Subsec. (d)(1)(A)(ii). Pub. L. 99-198, Sec. 1517(a)(1),

substituted ''refuses without good cause to participate in an

employment and training program under paragraph (4), to the extent

required under paragraph (4), including any reasonable employment

requirements as are prescribed by the State agency in accordance

with paragraph (4), and the period of ineligibility shall be two

months'' for ''refuses to fulfill whatever reasonable reporting and

inquiry about employment requirements as are prescribed by the

Secretary, which may include a requirement that, at the option of

the State agency, such reporting and inquiry commence at the time

of application''.

Subsec. (d)(1)(A)(iii), (iv). Pub. L. 99-198, Sec. 1516(1)(C),

redesignated cl. (iv) as (iii). Former cl. (iii), relating to a

head of household who voluntarily quits any job without good cause,

with a proviso that the period of ineligibility would be ninety

days, was struck out.

Subsec. (d)(1)(B). Pub. L. 99-198, Sec. 1516(1)(D), added cl.

(B).

Subsec. (d)(2)(F). Pub. L. 99-198, Sec. 1516(3), added cl. (F).

Subsec. (d)(4). Pub. L. 99-198, Sec. 1517(a)(2), added par. (4).

Subsec. (e)(2). Pub. L. 99-198, Sec. 1516(4), inserted ''or is an

individual who is not assigned to or placed in an institution of

higher learning through a program under the Job Training

Partnership Act,''.

Subsec. (f)(2)(D). Pub. L. 99-198, Sec. 1516(5)(A), (B),

substituted ''sections 1157 and 1158 of title 8'' for ''section

1153(a)(7) of title 8 because of persecution or fear of persecution

on account of race, religion, or political opinion or because of

being uprooted by catastrophic natural calamity''.

Subsec. (f)(2)(F). Pub. L. 99-198, Sec. 1516(5)(C), struck out

''because of the judgment of the Attorney General that the alien

would otherwise be subject to persecution on account of race,

religion, or political opinion'' after ''section 1253(h) of title

8''.

1983 - Subsec. (c)(1). Pub. L. 98-204, Sec. 5, inserted sentence

authorizing the Secretary to permit State agencies to accept, as

satisfying the requirement that households report at such specified

less frequent intervals, (i) recertifications conducted in

accordance with section 2020(e)(4) of this title, (ii) in-person

interviews conducted during a certification period, (iii) written

reports filed by households, or (iv) such other documentation or

actions as the Secretary may prescribe.

Subsec. (c)(3). Pub. L. 98-204, Sec. 6, substituted ''Reports

required to be filed monthly under paragraph (1) shall be the sole

reporting requirement for subject matter included in such reports''

for ''The reporting requirements contained in paragraph (1) of this

subsection shall be the sole such requirements for reporting

changes in circumstances for participating households''.

1982 - Subsec. (c)(1). Pub. L. 97-253, Sec. 145(e), 154, 155, in

first sentence substituted ''in which all adult members are elderly

or disabled members'' for ''in which all members are sixty years of

age or over or receive supplemental security income benefits under

title XVI of the Social Security Act or disability and blindness

payments under title I, II, X, XIV, and XVI of the Social Security

Act'' and inserted provision that a State agency may, with the

prior approval of the Secretary, select categories of households

which may report at specified less frequent intervals upon a

showing by the State agency, which is satisfactory to the

Secretary, that to require households in such categories to report

monthly would result in unwarranted expenditures for administration

of this subsection, and, in last sentence, struck out '', on a form

designed or approved by the Secretary,'' after ''to the State

agency''.

Subsec. (c)(5). Pub. L. 97-253, Sec. 156, added par. (5).

Subsec. (d)(1). Pub. L. 97-253, Sec. 157, 158, inserted '', which

may include a requirement that, at the option of the State agency,

such reporting and inquiry commence at the time of application''

after ''Secretary'' in cl. (ii), substituted ''ninety days'' for

''sixty days from the time of the voluntary quit'' in cl. (iii),

and inserted provision that an employee of the Federal Government,

or of a State or political subdivision of a State, who engaged in a

strike against the Federal Government, a State or political

subdivision of a State and is dismissed from his job because of his

participation in the strike shall be considered to have voluntarily

quit such job without good cause.

Subsec. (d)(2)(C). Pub. L. 97-253, Sec. 159, 190(a), redesignated

subpar. (D) as (C), and struck out former subpar. (C) which

provided that a person who would otherwise be required to comply

with the requirements of par. (1) was exempt if he or she was a

parent or other caretaker of a child in a household where there was

another able-bodied parent subject to the requirements of this

subsection.

Subsec. (d)(2)(D) to (F). Pub. L. 97-253, Sec. 190(a),

redesignated subpars. (D) to (F) as (C) to (E), respectively.

Former subpar. (D) redesignated (C).

Subsec. (d)(3), (4). Pub. L. 97-253, Sec. 160, 190(b),

redesignated par. (4) as (3), and struck out former par. (3) which

provided that to the extent that a State employment service was

assigned responsibility for administering the provisions of this

subsection, it had to comply with regulations issued jointly by the

Secretary and the Secretary of Labor, which regulations had to be

patterned to the maximum extent practicable on the work incentive

program requirements set forth in title IV of the Social Security

Act and had to take into account the diversity of the needs of the

food stamp work registration population.

Subsec. (e)(3)(B). Pub. L. 97-253, Sec. 161, substituted ''; (B)

is not a parent with responsibility for the care of a dependent

child under age six;'' for ''or (B) is not the head of a household

(or spouse of such head) containing one or more other persons who

are dependents of that individual because he or she supplies more

than half of their support, or''.

Subsec. (e)(3)(C) to (E). Pub. L. 97-253, Sec. 161, added

subpars. (C) and (D) and redesignated former subpar. (C) as (E).

Subsec. (g)(2). Pub. L. 97-253, Sec. 189(b)(1), substituted

reference to the Secretary of Health and Human Services for former

reference to the Secretary of Health, Education, and Welfare.

1981 - Subsec. (b). Pub. L. 97-35, Sec. 112, substituted

provisions setting forth disqualification penalties for fraud and

misrepresentation, ineligibility period for benefits, and

applicable procedures, for provisions relating to prior fraudulent

use of coupons or authorization cards, ineligibility period for

benefits, and repayment for fraudulent conduct.

Subsec. (c). Pub. L. 97-35, Sec. 108(b), in par. (1) inserted

provisions enumerating categories of households subject to

requirements, and substituted ''(f)'' for ''(f)(2)'', and added

par. (4).

Subsec. (c)(1). Pub. L. 97-35, Sec. 108(c), struck out provisions

respecting election of retrospective accounting system, and filing

of periodic reports by household categories.

Subsec. (d)(1). Pub. L. 97-98, Sec. 1310, 1311(1), (2),

substituted in cl. (i) ''twelve'' for ''six'', struck out in cl.

(iii) '', unless the household was certified for benefits under

this chapter immediately prior to such unemployment'' after

''without good cause'', and inserted in cl. (iv) ''(including the

lack of adequate child care for children above the age of five and

under the age of twelve)'' after ''good cause''.

Subsec. (d)(2). Pub. L. 97-98, Sec. 1311(3), (4), inserted in cl.

(A) '', in which case, failure by such person to comply with any

work requirement to which such person is subject that is comparable

to a requirement of paragraph (1) shall be the same as failure to

comply with that requirement of paragraph (1)'' after

''compensation system'' and substituted in cl. (B) ''six'' for

''twelve''.

Subsec. (d)(4). Pub. L. 97-35, Sec. 109(a), inserted provisions

relating to an increase in allotments as a result of a decrease in

income of striking members of a household, and struck out proviso

relating to income qualifications, etc., of subsec. (i).

Subsec. (i). Pub. L. 97-35, Sec. 109(c), struck out subsec. (i)

which related to eligibility of a household containing a person

involved in a labor-management dispute.

1980 - Subsec. (b). Pub. L. 96-249, Sec. 109, inserted provisions

permitting each State to decide to proceed against alleged fraud in

the program either by way of administrative fraud hearings or by

way of reference to appropriate legal authorities for civil or

criminal action, or both.

Subsec. (c). Pub. L. 96-249, Sec. 110, inserted provisions

compelling States electing to use a retrospective accounting system

to require that certain categories of households file periodic

reports of household circumstances following standards prescribed

by the Secretary.

Subsec. (d)(2)(D). Pub. L. 96-249, Sec. 140, substituted

''enrolled in an institution of higher education shall be

ineligible to participate in the food stamp program unless he or

she meets the requirements of subsection (e) of this section)'' for

''shall be subject to the requirements of paragraph (1) of this

subsection during any period of more than thirty days when such

school or program is in vacation or recess and any such person

enrolled in an institution of higher education shall be subject to

the requirements of subsection (e)(3)(B) of this section as

well)''.

Subsec. (d)(4). Pub. L. 96-249, Sec. 114, added par. (4).

Subsec. (e). Pub. L. 96-249, Sec. 139, substituted requirement

that he or she is physically and mentally fit and is between the

ages of eighteen and sixty for requirement that he or she has

reached his or her eighteenth birthday, inserted requirement that

he or she is not so enrolled as a result of participation in the

work incentive program under title IV of the Social Security Act,

and struck out requirement that he or she is properly claimed or

could properly be claimed as a dependent child for Federal income

tax purposes.

Subsec. (f). Pub. L. 96-249, Sec. 115, inserted provisions

requiring that the income (less a pro rata share) and financial

resources of the individual rendered ineligible to participate in

the food stamp program under this subsection be considered in

determining the eligibility and the value of the allotment of the

household of which such individual is a member.

1979 - Subsec. (b). Pub. L. 96-58, Sec. 5, provided that, after

any specified period of disqualification pursuant to findings under

clauses (1) or (2) of this subsection, no disqualified individual

would be eligible to participate in the food stamp program unless

that individual agreed to a reduction in the allotment of the

household of which that individual is a member or to repayment in

cash, in accordance with a reasonable schedule as determined by the

Secretary that would be sufficient over time to reimburse the

Federal Government for the value of the coupons obtained through

the fraudulent conduct, and that if any disqualified individual

elected repayment in cash under the provisions of the preceding

sentence and failed to make payments in accordance with the

schedule determined by the Secretary, the household of which that

individual was a member would be subject to appropriate allotment

reductions.

Subsec. (i). Pub. L. 96-58, Sec. 9, added subsec. (i).

1977 - Pub. L. 95-113 substituted revised provisions covering

eligibility disqualifications for provisions relating to the

issuance, usage, and design of coupons which are now covered by

section 2016 of this title.

1976 - Subsecs. (b) to (e). Pub. L. 94-339 added subsecs. (b) and

(c) and redesignated former subsecs. (b) and (c) as (d) and (e),

respectively.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4121(e), May 13, 2002, 116 Stat.

324, provided that: ''The amendments made by this section (amending

this section and section 2025 of this title) take effect on the

date of enactment of this Act (May 13, 2002).''

Amendment by sections 4109, 4115(b)(2) 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 1998 AMENDMENT

Amendment by section 101(f) (title VIII, Sec. 405(d)(2)(B)) of

Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section

101(f) (title VIII, Sec. 405(f)(2)(B)) of Pub. L. 105-277 effective

July 1, 2000, see section 101(f) (title VIII, Sec. 405(g)(1),

(2)(B)) of Pub. L. 105-277, set out as a note under section 3502 of

Title 5, Government Organization and Employees.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1005(b) of Pub. L. 105-33 provided that: ''The amendments

made by sections 1001 and 1002 (amending this section and section

2025 of this title) take effect on October 1, 1997, without regard

to whether regulations have been promulgated to implement the

amendments made by such sections.''

EFFECTIVE DATE OF 1996 AMENDMENTS

Amendment by Pub. L. 104-208 effective, with certain transitional

provisions, on the first day of the first month beginning more than

180 days after Sept. 30, 1996, see section 309 of Pub. L. 104-208,

set out as a note under section 1101 of Title 8, Aliens and

Nationality.

Amendment by section 109(b) 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

Amendment by Pub. L. 103-66 effective, and to be implemented

beginning on, Sept. 1, 1994, see section 13971(b)(4) of Pub. L.

103-66, set out as a note under section 2025 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 908 (probably should be 907) of Pub. L.

102-237 effective Sept. 30, 1991, and amendment by section 941(3)

of Pub. L. 102-237 effective and to be implemented no later than

Feb. 1, 1992, see section 1101(d)(1), (3) 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 and implemented first day

of month beginning 120 days after publication of implementing

regulations to be promulgated not later than Oct. 1, 1991, see

section 1781(a) of Pub. L. 101-624, set out as a note under section

2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by sections 202(b), (c) and 404(a)(2)-(4), (b), (d) of

Pub. L. 100-435 to be effective and implemented on Oct. 1, 1988,

and amendment by section 404(a)(1), (c) of Pub. L. 100-435 to be

effective and implemented on July 1, 1989, except that amendment by

section 404 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)(4), (c)(2) of Pub.

L. 100-435, set out as a note under section 2012 of this title.

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.

EFFECTIVE DATE OF 1981 AMENDMENTS

Amendment by Pub. L. 97-35, except section 108(c) of Pub. L.

97-35 (which amended this section), 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.

Amendments by Pub. L. 97-35, except for amendment made by section

108(c) of 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.

Section 108(c) of Pub. L. 97-35 provided that the amendment made

by that section is effective Oct. 1, 1983.

EFFECTIVE DATE OF 1979 AMENDMENT

Secretary of Agriculture to issue final regulations implementing

the amendment of subsec. (b) 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

Section 1005(a) of title I of Pub. L. 105-33 provided that: ''Not

later than 1 year after the date of enactment of this Act (Aug. 5,

1997), the Secretary of Agriculture shall promulgate such

regulations as are necessary to implement the amendments made by

this title (amending this section and sections 2020 and 2025 of

this title).''

-TRANS-

ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF

FUNCTIONS

For abolition of Immigration and Naturalization Service, transfer

of functions, and treatment of related references, see note set out

under section 1551 of Title 8, Aliens and Nationality.

-MISC5-

TRANSITION PROVISION FOR WORK REQUIREMENT

Section 824(b) of Pub. L. 104-193 provided that: ''The term

'preceding 36-month period' in section 6(o) of the Food Stamp Act

of 1977 (7 U.S.C. 2015(o)), as added by subsection (a), does not

include, with respect to a State, any period before the earlier of

-

''(1) the date the State notifies recipients of food stamp

benefits of the application of section 6(o); or

''(2) the date that is 3 months after the date of enactment of

this Act (Aug. 22, 1996).''

EXEMPTION FROM MONTHLY REPORTING SYSTEMS FOR HOUSEHOLDS RESIDING ON

INDIAN RESERVATIONS

Section 908(a)(2) of Pub. L. 102-237, as amended by Pub. L.

103-11, Sec. 1, Apr. 1, 1993, 107 Stat. 41; Pub. L. 103-205, Sec.

1, Dec. 17, 1993, 107 Stat. 2418, provided that no State agency be

required to exempt households residing on Indian reservations from

food stamp program monthly reporting systems until Mar. 15, 1994,

and directed Secretary of Agriculture to issue final regulations

requiring exemption of households residing on Indian reservations

from food stamp program monthly reporting systems no later than

Dec. 1, 1992, prior to repeal by Pub. L. 103-225, title I, Sec.

104(a), Mar. 25, 1994, 108 Stat. 107.

MANDATORY MONTHLY REPORTING-RETROSPECTIVE BUDGETING FOR FOOD STAMP

PROGRAM; PROHIBITION

Pub. L. 98-107, Sec. 101(b), Oct. 1, 1983, 97 Stat. 735, provided

in part: ''That notwithstanding any other provision of this joint

resolution, no part of any of the funds appropriated or otherwise

made available by this or any other Act may be used to implement

mandatory monthly reporting-retrospective budgeting for the food

stamp program during the first three months of the fiscal year

ending September 30, 1984''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2014, 2016, 2020, 2022,

2024, 2025, 2026, 2029, 2030, 2031 of this title; title 20 section

9271; title 26 section 51; title 29 sections 2822, 2841; title 42

section 654.

-CITE-

7 USC Sec. 2016 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2016. Issuance and use of coupons

-STATUTE-

(a) Printing

Coupons shall be printed under such arrangements and in such

denominations as may be determined by the Secretary to be

necessary, and (except as provided in subsection (j) of this

section) shall be issued only to households which have been duly

certified as eligible to participate in the food stamp program.

(b) Approved food stores; receipt of cash in change for coupons

used to purchase food

Coupons issued to eligible households shall be used by them only

to purchase food in retail food stores which have been approved for

participation in the food stamp program at prices prevailing in

such stores: Provided, That nothing in this chapter shall be

construed as authorizing the Secretary to specify the prices at

which food may be sold by wholesale food concerns or retail food

stores: Provided further, That eligible households using coupons to

purchase food may receive cash in change therefor so long as the

cash received does not equal or exceed the value of the lowest

coupon denomination issued.

(c) Design of coupons

Coupons issued to eligible households shall be simple in design

and shall include only such words or illustrations as are required

to explain their purpose and define their denomination. The name

of any public official shall not appear on such coupons.

(d) Coupon level inventories; monitorship; monthly operations

report

The Secretary shall develop an appropriate procedure for

determining and monitoring the level of coupon inventories in the

hands of coupon issuers for the purpose of providing that such

inventories are at proper levels (taking into consideration the

historical and projected volume of coupon distribution by such

issuers). Such procedures shall provide that coupon inventories in

the hands of such issuers are not in excess of the reasonable needs

of such issuers taking into consideration the ease with which such

coupon inventories may be resupplied. The Secretary shall require

each coupon issuer at intervals prescribed by the Secretary, but

not less often than monthly, to send to the Secretary or the

Secretary's designee, which may include the State agency, a written

report of the issuer's operations during such period. In addition

to other information deemed by the Secretary to be appropriate, the

Secretary shall require that the report contain an oath, or

affirmation, signed by the coupon issuer, or in the case of a

corporation or other entity not a natural person, by an appropriate

official of the coupon issuer, certifying that the information

contained in the report is true and correct to the best of such

person's knowledge and belief.

(e) Delivery and control procedures

The Secretary shall prescribe appropriate procedures for the

delivery of coupons to coupon issuers and for the subsequent

controls to be placed over such coupons by coupon issuers in order

to ensure adequate accountability.

(f) State issuance liability

Notwithstanding any other provision of this chapter, the State

agency shall be strictly liable to the Secretary for any financial

losses involved in the acceptance, storage and issuance of coupons,

including any losses involving failure of a coupon issuer to comply

with the requirements specified in section 2020(e)(20) (FOOTNOTE 1)

of this title, except that in the case of losses resulting from the

issuance and replacement of authorizations for coupons and

allotments which are sent through the mail, the State agency shall

be liable to the Secretary to the extent prescribed in the

regulations promulgated by the Secretary.

(FOOTNOTE 1) See References in Text note below.

(g) Alternative system or documents; costs

(1) If the Secretary determines, in consultation with the

Inspector General of the Department of Agriculture, that it would

improve the integrity of the food stamp program, the Secretary

shall require a State agency -

(A) to issue or deliver coupons using alternative methods,

including an automatic data processing and information retrieval

system; or

(B) to issue, in lieu of coupons, reusable documents to be used

as part of an automatic data processing and information retrieval

system and to be presented by, and returned to, recipients at

retail food stores for the purpose of purchasing food.

(2) The cost of documents or systems that may be required

pursuant to this subsection may not be imposed upon a retail food

store participating in the food stamp program.

(h) Staggered issuance procedures

(1) The State agency may establish a procedure for staggering the

issuance of coupons to eligible households throughout the month.

Upon the request of the tribal organization that exercises

governmental jurisdiction over the reservation, the State agency

shall stagger the issuance of benefits for eligible households

located on reservations for at least 15 days of a month.

(2) Any procedure established under paragraph (1) shall not

reduce the allotment of any household and shall ensure that no

household experiences an interval between issuances of more than 40

days. The procedure may include issuing a household's benefits in

more than one issuance.

(i) Electronic benefit transfers

(1) In general. -

(A) Implementation. - Not later than October 1, 2002, each

State agency shall implement an electronic benefit transfer

system under which household benefits determined under section

2017(a) or 2035 of this title are issued from and stored in a

central databank, unless the Secretary provides a waiver for a

State agency that faces unusual barriers to implementing an

electronic benefit transfer system.

(B) Timely implementation. - Each State agency is encouraged to

implement an electronic benefit transfer system under

subparagraph (A) as soon as practicable.

(C) State flexibility. - Subject to paragraph (2), a State

agency may procure and implement an electronic benefit transfer

system under the terms, conditions, and design that the State

agency considers appropriate.

(D) Operation. - An electronic benefit transfer system should

take into account generally accepted standard operating rules

based on -

(i) commercial electronic funds transfer technology;

(ii) the need to permit interstate operation and law

enforcement monitoring; and

(iii) the need to permit monitoring and investigations by

authorized law enforcement agencies.

(2) The Secretary shall issue final regulations that establish

standards for the approval of such a system. The standards shall

include -

(A) defining the required level of recipient protection

regarding privacy, ease of use, and access to and service in

retail food stores;

(B) the terms and conditions of participation by retail food

stores, financial institutions, and other appropriate parties;

(C)(i) measures to maximize the security of a system using the

most recent technology available that the State agency considers

appropriate and cost effective and which may include personal

identification numbers, photographic identification on electronic

benefit transfer cards, and other measures to protect against

fraud and abuse; and

(ii) effective not later than 2 years after August 22, 1996, to

the extent practicable, measures that permit a system to

differentiate items of food that may be acquired with an

allotment from items of food that may not be acquired with an

allotment;

(D) system transaction interchange, reliability, and processing

speeds;

(E) financial accountability;

(F) the required testing of system operations prior to

implementation;

(G) the analysis of the results of system implementation in a

limited project area prior to expansion; and

(H) procurement standards.

(3) In the case of a system described in paragraph (1) in which

participation is not optional for households, the Secretary shall

not approve such a system unless -

(A) a sufficient number of eligible retail food stores,

including those stores able to serve minority language

populations, have agreed to participate in the system throughout

the area in which it will operate to ensure that eligible

households will not suffer a significant reduction in their

choice of retail food stores or a significant increase in the

cost of food or transportation to participating food stores; and

(B) any special equipment necessary to allow households to

purchase food with the benefits issued under this chapter is

operational -

(i) in the case of a participating retail food store in which

coupons are used to purchase 15 percent or more of the total

dollar amount of food sold by the store (as determined by the

Secretary), at all registers in the store; and

(ii) in the case of other participating stores, at a

sufficient number of registers to provide service that is

comparable to service provided individuals who are not members

of food stamp households, as determined by the Secretary.

(4) Administrative costs incurred in connection with activities

under this subsection shall be eligible for reimbursement in

accordance with section 2025 of this title, subject to the

limitations in section 2025(g) of this title.

(5) The Secretary shall periodically inform State agencies of the

advantages of using electronic benefit systems to issue benefits in

accordance with this subsection in lieu of issuing coupons to

households.

(6) This subsection shall not diminish the authority of the

Secretary to conduct projects to test automated or electronic

benefit delivery systems under section 2026(f) of this title.

(7) Replacement of benefits. - Regulations issued by the

Secretary regarding the replacement of benefits and liability for

replacement of benefits under an electronic benefit transfer system

shall be similar to the regulations in effect for a paper-based

food stamp issuance system.

(8) Replacement card fee. - A State agency may collect a charge

for replacement of an electronic benefit transfer card by reducing

the monthly allotment of the household receiving the replacement

card.

(9) Optional photographic identification. -

(A) In general. - A State agency may require that an electronic

benefit card contain a photograph of 1 or more members of a

household.

(B) Other authorized users. - If a State agency requires a

photograph on an electronic benefit card under subparagraph (A),

the State agency shall establish procedures to ensure that any

other appropriate member of the household or any authorized

representative of the household may utilize the card.

(10) Applicable law. - Disclosures, protections,

responsibilities, and remedies established by the Federal Reserve

Board under section 1693b of title 15 shall not apply to benefits

under this chapter delivered through any electronic benefit

transfer system.

(11) Application of anti-tying restrictions to electronic benefit

transfer systems. -

(A) Definitions. - In this paragraph:

(i) Affiliate. - The term ''affiliate'' has the meaning

provided the term in section 1841(k) of title 12.

(ii) Company. - The term ''company'' has the meaning provided

the term in section 1971 of title 12, but shall not include a

bank, a bank holding company, or any subsidiary of a bank

holding company.

(iii) Electronic benefit transfer service. - The term

''electronic benefit transfer service'' means the processing of

electronic transfers of household benefits, determined under

section 2017(a) or 2035 of this title, if the benefits are -

(I) issued from and stored in a central databank;

(II) electronically accessed by household members at the

point of sale; and

(III) provided by a Federal or State government.

(iv) Point-of-sale service. - The term ''point-of-sale

service'' means any product or service related to the

electronic authorization and processing of payments for

merchandise at a retail food store, including credit or debit

card services, automated teller machines, point-of-sale

terminals, or access to on-line systems.

(B) Restrictions. - A company may not sell or provide

electronic benefit transfer services, or fix or vary the

consideration for electronic benefit transfer services, on the

condition or requirement that the customer -

(i) obtain some additional point-of-sale service from the

company or an affiliate of the company; or

(ii) not obtain some additional point-of-sale service from a

competitor of the company or competitor of any affiliate of the

company.

(C) Consultation with the federal reserve board. - Before

promulgating regulations or interpretations of regulations to

carry out this paragraph, the Secretary shall consult with the

Board of Governors of the Federal Reserve System.

(j) State option to issue benefits to certain individuals made

ineligible by welfare reform

(1) In general

Notwithstanding any other provision of law, a State agency may,

with the approval of the Secretary, issue benefits under this

chapter to an individual who is ineligible to participate in the

food stamp program solely as a result of section 2015(o)(2) of

this title or section 1612 or 1613 of title 8.

(2) State payments to Secretary

(A) In general

Not later than the date the State agency issues benefits to

individuals under this subsection, the State agency shall pay

the Secretary, in accordance with procedures established by the

Secretary, an amount that is equal to -

(i) the value of the benefits; and

(ii) the costs of printing, shipping, and redeeming

coupons, and other Federal costs, incurred in providing the

benefits, as determined by the Secretary.

(B) Crediting

Notwithstanding section 3302(b) of title 31, payments

received under subparagraph (A) shall be credited to the food

stamp program appropriation account or the account from which

the costs were drawn, as appropriate, for the fiscal year in

which the payment is received.

(3) Reporting

To be eligible to issue benefits under this subsection, a State

agency shall comply with reporting requirements established by

the Secretary to carry out this subsection.

(4) Plan

To be eligible to issue benefits under this subsection, a State

agency shall -

(A) submit a plan to the Secretary that describes the

conditions and procedures under which the benefits will be

issued, including eligibility standards, benefit levels, and

the methodology the State agency will use to determine amounts

due the Secretary under paragraph (2); and

(B) obtain the approval of the Secretary for the plan.

(5) Violations

A sanction, disqualification, fine, or other penalty prescribed

under Federal law (including sections 2021 and 2024 of this

title) shall apply to a violation committed in connection with a

coupon issued under this subsection.

(6) Ineligibility for administrative reimbursement

Administrative and other costs incurred in issuing a benefit

under this subsection shall not be eligible for Federal funding

under this chapter.

(7) Exclusion from enhanced payment accuracy systems

Section 2025(c) of this title shall not apply to benefits

issued under this subsection.

(k) Interoperability and portability of electronic benefit transfer

transactions

(1) Definitions

In this subsection:

(A) Electronic benefit transfer card

The term ''electronic benefit transfer card'' means a card

that provides benefits under this chapter through an electronic

benefit transfer service (as defined in subsection (i)(11)(A)

of this section).

(B) Electronic benefit transfer contract

The term ''electronic benefit transfer contract'' means a

contract that provides for the issuance, use, or redemption of

coupons in the form of electronic benefit transfer cards.

(C) Interoperability

The term ''interoperability'' means a system that enables a

coupon issued in the form of an electronic benefit transfer

card to be redeemed in any State.

(D) Interstate transaction

The term ''interstate transaction'' means a transaction that

is initiated in 1 State by the use of an electronic benefit

transfer card that is issued in another State.

(E) Portability

The term ''portability'' means a system that enables a coupon

issued in the form of an electronic benefit transfer card to be

used in any State by a household to purchase food at a retail

food store or wholesale food concern approved under this

chapter.

(F) Settling

The term ''settling'' means movement, and reporting such

movement, of funds from an electronic benefit transfer card

issuer that is located in 1 State to a retail food store, or

wholesale food concern, that is located in another State, to

accomplish an interstate transaction.

(G) Smart card

The term ''smart card'' means an intelligent benefit card

described in section 2026(f) of this title.

(H) Switching

The term ''switching'' means the routing of an interstate

transaction that consists of transmitting the details of a

transaction electronically recorded through the use of an

electronic benefit transfer card in 1 State to the issuer of

the card that is in another State.

(2) Requirement

Not later than October 1, 2002, the Secretary shall ensure that

systems that provide for the electronic issuance, use, and

redemption of coupons in the form of electronic benefit transfer

cards are interoperable, and food stamp benefits are portable,

among all States.

(3) Cost

The cost of achieving the interoperability and portability

required under paragraph (2) shall not be imposed on any food

stamp retail store, or any wholesale food concern, approved to

participate in the food stamp program.

(4) Standards

Not later than 210 days after February 11, 2000, the Secretary

shall promulgate regulations that -

(A) adopt a uniform national standard of interoperability and

portability required under paragraph (2) that is based on the

standard of interoperability and portability used by a majority

of State agencies; and

(B) require that any electronic benefit transfer contract

that is entered into 30 days or more after the regulations are

promulgated, by or on behalf of a State agency, provide for the

interoperability and portability required under paragraph (2)

in accordance with the national standard.

(5) Exemptions

(A) Contracts

The requirements of paragraph (2) shall not apply to the

transfer of benefits under an electronic benefit transfer

contract before the expiration of the term of the contract if

the contract -

(i) is entered into before the date that is 30 days after

the regulations are promulgated under paragraph (4); and

(ii) expires after October 1, 2002.

(B) Waiver

At the request of a State agency, the Secretary may provide 1

waiver to temporarily exempt, for a period ending on or before

the date specified under clause (iii), the State agency from

complying with the requirements of paragraph (2), if the State

agency -

(i) establishes to the satisfaction of the Secretary that

the State agency faces unusual technological barriers to

achieving by October 1, 2002, the interoperability and

portability required under paragraph (2);

(ii) demonstrates that the best interest of the food stamp

program would be served by granting the waiver with respect

to the electronic benefit transfer system used by the State

agency to administer the food stamp program; and

(iii) specifies a date by which the State agency will

achieve the interoperability and portability required under

paragraph (2).

(C) Smart card systems

The Secretary shall allow a State agency that is using smart

cards for the delivery of food stamp program benefits to comply

with the requirements of paragraph (2) at such time after

October 1, 2002, as the Secretary determines that a practicable

technological method is available for interoperability with

electronic benefit transfer cards.

(6) Funding

(A) In general

In accordance with regulations promulgated by the Secretary,

the Secretary shall pay 100 percent of the costs incurred by a

State agency under this chapter for switching and settling

interstate transactions -

(i) incurred after February 11, 2000, and before October 1,

2002, if the State agency uses the standard of

interoperability and portability adopted by a majority of

State agencies; and

(ii) incurred after September 30, 2002, if the State agency

uses the uniform national standard of interoperability and

portability adopted under paragraph (4)(A).

(B) Limitation

The total amount paid to State agencies for each fiscal year

under subparagraph (A) shall not exceed $500,000.

-SOURCE-

(Pub. L. 88-525, Sec. 7, Aug. 31, 1964, 78 Stat. 705; Pub. L.

91-671, Sec. 5, Jan. 11, 1971, 84 Stat. 2050; Pub. L. 93-86, Sec.

3(m), Aug. 10, 1973, 87 Stat. 248; Pub. L. 93-125, Sec. 1(k), Oct.

18, 1973, 87 Stat. 450; Pub. L. 94-339, Sec. 2, July 5, 1976, 90

Stat. 799; Pub. L. 95-113, title XIII, Sec. 1301, Sept. 29, 1977,

91 Stat. 967; Pub. L. 97-98, title XIII, Sec. 1312, Dec. 22, 1981,

95 Stat. 1285; Pub. L. 97-253, title I, Sec. 162, 190(c)(2), Sept.

8, 1982, 96 Stat. 778, 787; Pub. L. 99-198, title XV, Sec. 1518,

1519, Dec. 23, 1985, 99 Stat. 1578; Pub. L. 100-435, title II, Sec.

203(b), Sept. 19, 1988, 102 Stat. 1657; Pub. L. 101-624, title

XVII, Sec. 1728, 1729(a), Nov. 28, 1990, 104 Stat. 3788, 3789; Pub.

L. 103-225, title I, Sec. 102, Mar. 25, 1994, 108 Stat. 107; Pub.

L. 104-193, title VIII, Sec. 825(a), Aug. 22, 1996, 110 Stat. 2324;

Pub. L. 105-18, title VII, ((a)), June 12, 1997, 111 Stat. 216;

Pub. L. 106-171, Sec. 3, Feb. 11, 2000, 114 Stat. 3; Pub. L.

107-171, title IV, Sec. 4110, May 13, 2002, 116 Stat. 309.)

-REFTEXT-

REFERENCES IN TEXT

Section 2020(e)(20) of this title, referred to in subsec. (f),

was redesignated section 2020(e)(19) of this title by Pub. L.

104-193, title VIII, Sec. 835(1)(D)(i), Aug. 22, 1996, 110 Stat.

2330.

-MISC2-

AMENDMENTS

2002 - Subsec. (i)(2). Pub. L. 107-171 redesignated subpars. (B)

to (I) as (A) to (H), respectively, and struck out former subpar.

(A) which read as follows: ''determining the cost-effectiveness of

the system to ensure that its operational cost, including the pro

rata cost of capital expenditures and other reasonable startup

costs, does not exceed the operational cost of issuance systems in

use prior to the implementation of the electronic benefit transfer

system;''.

2000 - Subsec. (k). Pub. L. 106-171 added subsec. (k).

1997 - Subsec. (a). Pub. L. 105-18, title VII, ((a)(1)), inserted

''(except as provided in subsection (j) of this section)'' after

''necessary, and''.

Subsec. (j). Pub. L. 105-18, title VII, ((a)(2)), added subsec.

(j).

1996 - Subsec. (i). Pub. L. 104-193, Sec. 825(a)(1), inserted

subsec. heading.

Subsec. (i)(1). Pub. L. 104-193, Sec. 825(a)(1), added par. (1)

and struck out former par. (1) which read as follows:

''(1)(A) Any State agency may, with the approval of the

Secretary, implement an on-line electronic benefit transfer system

in which household benefits determined under section 2017(a) of

this title are issued from and stored in a central data bank and

electronically accessed by household members at the point-of-sale.

''(B) No State agency may implement or expand an electronic

benefit transfer system without prior approval from the

Secretary.''

Subsec. (i)(2). Pub. L. 104-193, Sec. 825(a)(2)(A), struck out

''effective no later than April 1, 1992,'' after ''regulations'' in

introductory provisions.

Subsec. (i)(2)(A). Pub. L. 104-193, Sec. 825(a)(2)(B), struck out

'', in any 1 year,'' after ''does not exceed'' and ''on-line''

before ''electronic benefit''.

Subsec. (i)(2)(D). Pub. L. 104-193, Sec. 825(a)(2)(C), added

subpar. (D) and struck out former subpar. (D) which read as

follows: ''system security;''.

Subsec. (i)(2)(I). Pub. L. 104-193, Sec. 825(a)(2)(D)-(F), added

subpar. (I).

Subsec. (i)(7) to (11). Pub. L. 104-193, Sec. 825(a)(3), added

pars. (7) to (11).

1994 - Subsec. (h)(1). Pub. L. 103-225 inserted second sentence

and struck out former second sentence which read as follows: ''The

State agency shall establish such a procedure for eligible

households residing on reservations.''

1990 - Subsec. (h). Pub. L. 101-624, Sec. 1728, amended subsec.

(h) generally. Prior to amendment, subsec. (h) read as follows:

''The State agency may implement a procedure for staggering the

issuance of coupons to eligible households throughout the entire

month: Provided, That the procedure ensures that, in the transition

period from other issuance procedures, no eligible household

experiences an interval between coupon issuances of more than 40

days, either through regular issuances by the State agency or

through supplemental issuances.''

Subsec. (i). Pub. L. 101-624, Sec. 1729(a), added subsec. (i).

1988 - Subsec. (h). Pub. L. 100-435 struck out par. (1)

designation and par. (2) which read as follows: ''For any eligible

household that applies for participation in the food stamp program

during the last fifteen days of a month and is issued benefits

within that period, coupons shall be issued for the first full

month of participation by the the (sic) eighth day of the first

full month of participation.''

1985 - Subsec. (g)(1). Pub. L. 99-198, Sec. 1519, substituted

''shall'' for ''may'' in provisions preceding subpar. (A).

Subsec. (h). Pub. L. 99-198, Sec. 1518, added subsec. (h).

1982 - Subsec. (f). Pub. L. 97-253, Sec. 190(c)(2), substituted

reference to section 2020(e)(20) of this title for former reference

to section 2020(e)(21) of this title.

Subsec. (g). Pub. L. 97-253, Sec. 162, added subsec. (g).

1981 - Subsec. (f). Pub. L. 97-98 substituted ''strictly liable''

for ''responsible'' and inserted provision including any losses

involving failure of a coupon issuer to comply with the

requirements of section 2020(e)(21) of this title, except that in

the case of losses resulting from the issuance and replacement of

authorizations for coupons and allotments sent through the mail,

State agency liability be to the extent prescribed in regulations.

1977 - Pub. L. 95-113 substituted revised provisions relating to

issuance and use of coupons for provisions relating to value of the

coupon allotment which are now covered by section 2017 of this

title.

1976 - Subsec. (d). Pub. L. 94-339 designated existing provisions

as par. (1) and added pars. (2) to (7).

1973 - Subsec. (a). Pub. L. 93-125 substituted ''for households

of a given size unless the increase in the face value'' for ''for

value''.

Pub. L. 93-86 substituted provisions relating to determination of

semiannual adjustments in face value of coupon allotment for

provisions relating to determination of annual adjustments in such

allotment.

1971 - Subsec. (a). Pub. L. 91-671 substituted provision for

issuance of coupon allotment in such amount as the Secretary

determines to be the cost of a nutritionally adequate diet,

adjusted annually to reflect changes in prices of food published by

Bureau of Labor Statistics for prior provision for issuance in such

amount as will provide households with an opportunity more nearly

to obtain a low-cost nutritionally adequate diet and inserted

''any'' before ''households''.

Subsec. (b). Pub. L. 91-671 substituted provisions respecting

charges to households for coupon allotments representing reasonable

investment on part of the households, issuance of coupon allotments

without charge where monthly income is less than $30 for a family

of four, and election of coupon allotment with a lesser face value

than the face value authorized to be issued for prior provision for

a charge determined to be equivalent to normal expenditures for

food.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by 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 1990 AMENDMENT

Amendment by section 1728 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 1729 of Pub. L. 101-624 effective

Nov. 28, 1990, see section 1781(a), (b)(2) of Pub. L. 101-624, set

out as a note under section 2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 effective Jan. 1, 1989, except with

regard to those States not implementing section 203(a) of Pub. L.

100-435 (amending section 2017 of this title), see section

701(b)(3)(B) of Pub. L. 100-435, set out as a note under section

2012 of this title.

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

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.

REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS

Pub. L. 107-171, title IV, Sec. 4111, May 13, 2002, 116 Stat.

309, provided that:

''(a) Definition of EBT System. - In this section, the term 'EBT

system' means an electronic benefit transfer system used in

issuance of benefits under the food stamp program under the Food

Stamp Act of 1977 (7 U.S.C. 2011 et seq.).

''(b) Report. - Not later than October 1, 2003, 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 that -

''(1) describes the status of use by each State agency of EBT

systems;

''(2) specifies the number of vendors that have entered into a

contract for an EBT system with a State agency;

''(3)(A) specifies the number of State agencies that have

entered into an EBT-system contract with multiple EBT-system

vendors; and

''(B) describes, for each State agency described in

subparagraph (A), how responsibilities are divided among the

various vendors;

''(4) with respect to any State in which an EBT system is not

operational throughout the State as of October 1, 2002 -

''(A) provides an explanation of the reasons why an EBT

system is not operational throughout the State;

''(B) describes how the reasons are being addressed; and

''(C) specifies the expected date of operation of an EBT

system throughout the State;

''(5) provides a description of -

''(A) the issues faced by any State agency that has awarded a

second EBT-system contract in the 2-year period preceding the

date of the report; and

''(B) the steps that the State agency has taken to address

those issues;

''(6) provides a description of -

''(A) the issues faced by any State agency that will award a

second EBT-system contract within the 2-year period beginning

on the date of the report; and

''(B) strategies that the State agency is considering to

address those issues;

''(7) describes initiatives being considered or taken by the

Department of Agriculture, food retailers, EBT-system vendors,

and client advocates to address any outstanding issues with

respect to EBT systems; and

''(8) examines areas of potential advances in electronic

benefit delivery in the 5- to 10-year period beginning on the

date of the report, including -

''(A) access to EBT systems at farmers' markets;

''(B) increased use of transaction data from EBT systems to

identify and prosecute fraud; and

''(C) fostering of increased competition among EBT-system

vendors to ensure cost containment and optimal service.''

CONGRESSIONAL STATEMENT OF PURPOSE

Pub. L. 106-171, Sec. 2, Feb. 11, 2000, 114 Stat. 3, provided

that: ''The purposes of this Act (amending this section and

enacting provisions set out as notes under this section and section

2011 of this title) are -

''(1) to protect the integrity of the food stamp program;

''(2) to ensure cost-effective portability of food stamp

benefits across State borders without imposing additional

administrative expenses for special equipment to address problems

relating to the portability;

''(3) to enhance the flow of interstate commerce involving

electronic transactions involving food stamp benefits under a

uniform national standard of interoperability and portability;

and

''(4) to eliminate the inefficiencies resulting from a

patchwork of State-administered systems and regulations

established to carry out the food stamp program.''

STUDY OF ALTERNATIVES FOR HANDLING ELECTRONIC BENEFIT TRANSACTIONS

INVOLVING FOOD STAMP BENEFITS

Pub. L. 106-171, Sec. 4, Feb. 11, 2000, 114 Stat. 6, provided

that: ''Not later than 1 year after the date of enactment of this

Act (Feb. 11, 2000), the Secretary of Agriculture shall study and

report to the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate on alternatives for handling interstate

electronic benefit transactions involving food stamp benefits

provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),

including the feasibility and desirability of a single hub for

switching (as defined in section 7(k)(1) of that Act (7 U.S.C.

2016(k)(1)) (as added by section 3)).''

SUSPENSION OF STAGGERED ISSUANCE OF FOOD STAMP COUPONS

Pub. L. 102-237, title IX, Sec. 908(a)(1), Dec. 13, 1991, 105

Stat. 1886, as amended by Pub. L. 103-11, Sec. 1, Apr. 1, 1993, 107

Stat. 41; Pub. L. 103-205, Sec. 1, Dec. 17, 1993, 107 Stat. 2418,

provided that no State agency be required to implement 7 U.S.C.

2016(h)(1), regarding staggering of issuance of food stamp coupons,

until Mar. 15, 1994, and directed Secretary of Agriculture to issue

final regulations requiring staggered issuance of coupons no later

than Dec. 1, 1992, prior to repeal by Pub. L. 103-225, title I,

Sec. 104(a), Mar. 25, 1994, 108 Stat. 107.

FOOD STAMP COUPONS, COST INCREASE SUSPENSION

Pub. L. 94-4, Feb. 20, 1975, 89 Stat. 6, provided that

notwithstanding the provisions of 7 U.S.C. 2016(b), the charge

imposed on any household for a coupon allotment under this chapter

after Feb. 20, 1975, and prior to Dec. 30, 1975, could not exceed

the charge that would have been imposed on such household for such

coupon allotment under rules and regulations promulgated under this

chapter and in effect on Jan. 1, 1975.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2014, 2019, 2024, 2026,

2027, 2035 of this title.

-CITE-

7 USC Sec. 2017 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2017. Value of allotment

-STATUTE-

(a) Calculation

The value of the allotment which State agencies shall be

authorized to issue to any households certified as eligible to

participate in the food stamp program shall be equal to the cost to

such households of the thrifty food plan reduced by an amount equal

to 30 per centum of the household's income, as determined in

accordance with section 2014(d) and (e) of this title, rounded to

the nearest lower whole dollar: Provided, That for households of

one and two persons the minimum allotment shall be $10 per month.

(b) Benefits not deemed income or resources for certain purposes

The value of benefits that may be provided under this chapter,

whether through coupons, access devices, or otherwise (FOOTNOTE 1)

shall not be considered income or resources for any purpose under

any Federal, State, or local laws, including, but not limited to,

laws relating to taxation, welfare, and public assistance programs,

and no participating State or political subdivision thereof shall

decrease any assistance otherwise provided an individual or

individuals because of the receipt of benefits under this chapter.

(FOOTNOTE 1) So in original. Probably should be followed by a

comma.

(c) First month benefits prorated

(1) The value of the allotment issued to any eligible household

for the initial month or other initial period for which an

allotment is issued shall have a value which bears the same ratio

to the value of the allotment for a full month or other initial

period for which the allotment is issued as the number of days

(from the date of application) remaining in the month or other

initial period for which the allotment is issued bears to the total

number of days in the month or other initial period for which the

allotment is issued, except that no allotment may be issued to a

household for the initial month or period if the value of the

allotment which such household would otherwise be eligible to

receive under this subsection is less than $10. Households shall

receive full months' allotments for all months within a

certification period, except as provided in the first sentence of

this paragraph with respect to an initial month.

(2) As used in this subsection, the term ''initial month'' means

(A) the first month for which an allotment is issued to a

household, (B) the first month for which an allotment is issued to

a household following any period in which such household was not

participating in the food stamp program under this chapter after

the expiration of a certification period or after the termination

of the certification of a household, during a certification period,

when the household ceased to be eligible after notice and an

opportunity for a hearing under section 2020(e)(10) of this title,

and (C) in the case of a migrant or seasonal farmworker household,

the first month for which allotment is issued to a household that

applies following any period of more than 30 days in which such

household was not participating in the food stamp program after

previous participation in such program.

(3) Optional combined allotment for expedited households. - A

State agency may provide to an eligible household applying after

the 15th day of a month, in lieu of the initial allotment of the

household and the regular allotment of the household for the

following month, an allotment that is equal to the total amount of

the initial allotment and the first regular allotment. The

allotment shall be provided in accordance with section 2020(e)(3)

of this title in the case of a household that is not entitled to

expedited service and in accordance with paragraphs (3) and (9) of

section 2020(e) of this title in the case of a household that is

entitled to expedited service.

(d) Reduction of public assistance benefits

(1) In general

If the benefits of a household are reduced under a Federal,

State, or local law relating to a means-tested public assistance

program for the failure of a member of the household to perform

an action required under the law or program, for the duration of

the reduction -

(A) the household may not receive an increased allotment as

the result of a decrease in the income of the household to the

extent that the decrease is the result of the reduction; and

(B) the State agency may reduce the allotment of the

household by not more than 25 percent.

(2) Rules and procedures

If the allotment of a household is reduced under this

subsection for a failure to perform an action required under part

A of title IV of the Social Security Act (42 U.S.C. 601 et seq.),

the State agency may use the rules and procedures that apply

under part A of title IV of the Act to reduce the allotment under

the food stamp program.

(e) Allotments for households residing in centers

(1) In general

In the case of an individual who resides in a center for the

purpose of a drug or alcoholic treatment program described in

section 2012(i)(5) of this title, a State agency may provide an

allotment for the individual to -

(A) the center as an authorized representative of the

individual for a period that is less than 1 month; and

(B) the individual, if the individual leaves the center.

(2) Direct payment

A State agency may require an individual referred to in

paragraph (1) to designate the center in which the individual

resides as the authorized representative of the individual for

the purpose of receiving an allotment.

(f) Alternative procedures for residents of certain group

facilities

(1) In general

(A) Applicability

(i) In general

Subject to clause (ii), at the option of the State agency,

allotments for residents of any facility described in

subparagraph (B), (C), (D), or (E) of section 2012(i)(5) of

this title (referred to in this subsection as a ''covered

facility'') may be determined and issued under this paragraph

in lieu of subsection (a) of this section.

(ii) Limitation

Unless the Secretary authorizes implementation of this

paragraph in all States under paragraph (3), clause (i) shall

apply only to residents of covered facilities participating

in a pilot project under paragraph (2).

(B) Amount of allotment

The allotment for each eligible resident described in

subparagraph (A) shall be calculated in accordance with

standardized procedures established by the Secretary that take

into account the allotments typically received by residents of

covered facilities.

(C) Issuance of allotment

(i) In general

The State agency shall issue an allotment determined under

this paragraph to a covered facility as the authorized

representative of the residents of the covered facility.

(ii) Adjustment

The Secretary shall establish procedures to ensure that a

covered facility does not receive a greater proportion of a

resident's monthly allotment than the proportion of the month

during which the resident lived in the covered facility.

(D) Departures of residents of covered facilities

(i) Notification

Any covered facility that receives an allotment for a

resident under this paragraph shall -

(I) notify the State agency promptly on the departure of

the resident; and

(II) notify the resident, before the departure of the

resident, that the resident -

(aa) is eligible for continued benefits under the food

stamp program; and

(bb) should contact the State agency concerning

continuation of the benefits.

(ii) Issuance to departed residents

On receiving a notification under clause (i)(I) concerning

the departure of a resident, the State agency -

(I) shall promptly issue the departed resident an

allotment for the days of the month after the departure of

the resident (calculated in a manner prescribed by the

Secretary) unless the departed resident reapplies to

participate in the food stamp program; and

(II) may issue an allotment for the month following the

month of the departure (but not any subsequent month) based

on this paragraph unless the departed resident reapplies to

participate in the food stamp program.

(iii) State option

The State agency may elect not to issue an allotment under

clause (ii)(I) if the State agency lacks sufficient

information on the location of the departed resident to

provide the allotment.

(iv) Effect of reapplication

If the departed resident reapplies to participate in the

food stamp program, the allotment of the departed resident

shall be determined without regard to this paragraph.

(2) Pilot projects

(A) In general

Before the Secretary authorizes implementation of paragraph

(1) in all States, the Secretary shall carry out, at the

request of 1 or more State agencies and in 1 or more areas of

the United States, such number of pilot projects as the

Secretary determines to be sufficient to test the feasibility

of determining and issuing allotments to residents of covered

facilities under paragraph (1) in lieu of subsection (a) of

this section.

(B) Project plan

To be eligible to participate in a pilot project under

subparagraph (A), a State agency shall submit to the Secretary

for approval a project plan that includes -

(i) a specification of the covered facilities in the State

that will participate in the pilot project;

(ii) a schedule for reports to be submitted to the

Secretary on the pilot project;

(iii) procedures for standardizing allotment amounts that

takes into account the allotments typically received by

residents of covered facilities; and

(iv) a commitment to carry out the pilot project in

compliance with the requirements of this subsection other

than paragraph (1)(B).

(3) Authorization of implementation in all States

(A) In general

The Secretary shall -

(i) determine whether to authorize implementation of

paragraph (1) in all States; and

(ii) notify the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition,

and Forestry of the Senate of the determination.

(B) Determination not to authorize implementation in all States

(i) In general

If the Secretary makes a finding described in clause (ii),

the Secretary -

(I) shall not authorize implementation of paragraph (1)

in all States; and

(II) shall terminate all pilot projects under paragraph

(2) within a reasonable period of time (as determined by

the Secretary).

(ii) Finding

The finding referred to in clause (i) is that -

(I) an insufficient number of project plans that the

Secretary determines to be eligible for approval are

submitted by State agencies under paragraph (2)(B); or

(II)(aa) a sufficient number of pilot projects have been

carried out under paragraph (2)(A); and

(bb) authorization of implementation of paragraph (1) in

all States is not in the best interest of the food stamp

program.

-SOURCE-

(Pub. L. 88-525, Sec. 8, Aug. 31, 1964, 78 Stat. 705; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 968; Pub.

L. 97-35, title I, Sec. 104(b), 110, Aug. 13, 1981, 95 Stat. 359,

361; Pub. L. 97-253, title I, Sec. 143(c), 152(b), 163, 164, Sept.

8, 1982, 96 Stat. 773, 776, 778; Pub. L. 99-198, title XV, Sec.

1520, Dec. 23, 1985, 99 Stat. 1578; Pub. L. 100-387, title V, Sec.

502(a), Aug. 11, 1988, 102 Stat. 960; Pub. L. 100-435, title II,

Sec. 203(a), Sept. 19, 1988, 102 Stat. 1656; Pub. L. 101-624, title

XVII, Sec. 1730, 1732, Nov. 28, 1990, 104 Stat. 3790; Pub. L.

102-237, title IX, Sec. 909, 910, Dec. 13, 1991, 105 Stat. 1887;

Pub. L. 103-66, title XIII, Sec. 13916, Aug. 10, 1993, 107 Stat.

674; Pub. L. 103-296, title I, Sec. 108(f)(1), Aug. 15, 1994, 108

Stat. 1486; Pub. L. 104-193, title VIII, Sec. 826-830, 854(c)(1),

Aug. 22, 1996, 110 Stat. 2327, 2342; Pub. L. 107-171, title IV,

Sec. 4112(a), (b)(3), May 13, 2002, 116 Stat. 310, 313.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (d)(2), 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. For complete classification of this Act to the Code, see

section 1305 of this title and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (e)(1). Pub. L. 107-171, Sec. 4112(b)(3),

substituted ''section 2012(i)(5) of this title'' for ''the last

sentence of section 2012(i) of this title'' in introductory

provisions.

Subsec. (f). Pub. L. 107-171, Sec. 4112(a), added subsec. (f).

1996 - Subsec. (a). Pub. L. 104-193, Sec. 826, struck out before

period at end '', and shall be adjusted on each October 1 to

reflect the percentage change in the cost of the thrifty food plan

without regard to the special adjustments under section 2012(o) of

this title for the 12-month period ending the preceding June, with

the result rounded to the nearest $5''.

Subsec. (c)(2)(B). Pub. L. 104-193, Sec. 827, struck out ''of

more than one month'' after ''following any period''.

Subsec. (c)(3). Pub. L. 104-193, Sec. 828, added par. (3) and

struck out former par. (3) which read as follows: ''A State agency

-

''(A) in the case of a household that is not entitled in the

month in which it applies to expedited service under section

2020(e)(9) of this title, may provide that an eligible household

applying after the 15th day of the month shall receive, in lieu

of its initial allotment and its regular allotment for the

following month, an allotment that is the aggregate of the

initial allotment and the first regular allotment, which shall be

provided in accordance with paragraph (3) of section 2020(e) of

this title; and

''(B) in the case of a household that is entitled in the month

in which it applies to expedited service under section 2020(e)(9)

of this title, shall provide that an eligible household applying

after the 15th day of the month shall receive, in lieu of its

initial allotment and its regular allotment for the following

month, an allotment that is the aggregate of the initial

allotment and the first regular allotment, which shall be

provided in accordance with paragraphs (3) and (9) of section

2020(e) of this title.''

Subsec. (d). Pub. L. 104-193, Sec. 829, added subsec. (d) and

struck out former subsec. (d) which read as follows: ''A household

against which a penalty has been imposed for an intentional failure

to comply with a Federal, State, or local law relating to welfare

or a public assistance program may not, for the duration of the

penalty, receive an increased allotment as the result of a decrease

in the household's income (as determined under sections 2014(d) and

2014(e) of this title) to the extent that the decrease is the

result of such penalty.''

Subsec. (e). Pub. L. 104-193, Sec. 854(c)(1), redesignated

subsec. (f) as (e) and struck out former subsec. (e) which provided

for simplified application procedures for beneficiaries of other

programs, and for allotments, evaluation, cost sharing, and

standardized procedures and benefits.

Subsec. (f). Pub. L. 104-193, Sec. 854(c)(1), redesignated

subsec. (f) as (e).

Pub. L. 104-193, Sec. 830, added subsec. (f).

1994 - Subsec. (e)(6). Pub. L. 103-296 inserted ''the

Commissioner of Social Security and'' before ''the Secretary of

Health and Human Services''.

1993 - Subsec. (c)(2)(B). Pub. L. 103-66 inserted ''of more than

one month in'' after ''following any period''.

1991 - Subsec. (b). Pub. L. 102-237, Sec. 909, substituted

''benefits that may be provided under this chapter, whether through

coupons, access devices, or otherwise'' for ''the allotment

provided any eligible household'' and ''benefits'' for ''an

allotment''.

Subsec. (c)(1). Pub. L. 102-237, Sec. 910(1), inserted at end

''Households shall receive full months' allotments for all months

within a certification period, except as provided in the first

sentence of this paragraph with respect to an initial month.''

Subsec. (c)(2)(B). Pub. L. 102-237, Sec. 910(2), substituted

''the expiration of a certification period or after the termination

of the certification of a household, during a certification period,

when the household ceased to be eligible after notice and an

opportunity for a hearing under section 2020(e)(10) of this title''

for ''previous participation in such program''.

1990 - Subsec. (a). Pub. L. 101-624, Sec. 1730, inserted before

period at end '', and shall be adjusted on each October 1 to

reflect the percentage change in the cost of the thrifty food plan

without regard to the special adjustments under section 2012(o) of

this title for the 12-month period ending the preceding June, with

the result rounded to the nearest $5''.

Subsec. (c)(3). Pub. L. 101-624, Sec. 1732, amended par. (3)

generally. Prior to amendment, par. (3) read as follows: ''An

eligible household applying after the 15th day of the month shall

receive, in lieu of its initial allotment and its regular allotment

for the following month, an allotment that is the aggregate of the

initial allotment and the first regular allotment, which shall be

provided in accordance with paragraphs (3) and (9) of section

2020(e) of this title.''

1988 - Subsec. (c). Pub. L. 100-387 substituted ''(2)'' for ''and

(2)'' and added cl. (3).

Subsec. (c)(1), (2). Pub. L. 100-435, Sec. 203(a)(1), (2),

designated first sentence of subsec. (c) as par. (1) and designated

second sentence of subsec. (c) as par. (2), and redesignated cls.

(1) to (3) of par. (2) as cls. (A) to (C), respectively.

Subsec. (c)(3). Pub. L. 100-435, Sec. 203(a)(3), added par. (3).

1985 - Subsec. (e). Pub. L. 99-198 added subsec. (e).

1982 - Subsec. (a). Pub. L. 97-253, Sec. 143(c), 152(b),

substituted ''nearest lower whole dollar'' for ''nearest whole

dollar'', and struck out provision which required the Secretary,

six months after the implementation of the elimination of the

charge for allotments and annually thereafter, to report to

Congress the effect on participation and cost thereof.

Subsec. (c). Pub. L. 97-253, Sec. 163, inserted provision that no

allotment may be issued to a household for the initial month or

period if the value of the allotment which such household would

otherwise be eligible to receive under this subsection is less than

$10, and substituted ''following any period'' for ''following any

period of more than thirty days'' in cl. (2).

Subsec. (d). Pub. L. 97-253, Sec. 164, added subsec. (d).

1981 - Subsec. (a). Pub. L. 97-35, Sec. 104(b), inserted ''(d)

and (e)'' after ''2014''.

Subsec. (c). Pub. L. 97-35, Sec. 110, added subsec. (c).

1977 - Pub. L. 95-113 substituted revised provisions relating to

the value of the coupon allotment for provisions covering approval

of retail stores and wholesale food concerns which are now covered

by section 2018 of this title.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by 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 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

Amendment by Pub. L. 103-66 effective, and to be implemented

beginning on, Sept. 1, 1994, see section 13971(b)(4) 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 section 1730 of Pub. L. 101-624 effective Oct. 1,

1990, and amendment by section 1732 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, see section 1781(a), (b)(1) of Pub. L. 101-624,

set out as a note under section 2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENTS

Amendment by Pub. L. 100-435 effective Jan. 1, 1989, and

implemented by States by Jan. 1, 1990, see section 701(b)(3)(A) of

Pub. L. 100-435, set out as a note under section 2012 of this

title.

Section 502(b) of Pub. L. 100-387 provided that:

''(1) The amendments made by this section (amending this section)

take effect on the date of enactment of this Act (Aug. 11, 1988).

''(2) The amendments made by this section shall not apply with

respect to allotments issued under the Food Stamp Act of 1977 (this

chapter) to any household for any month beginning before the

effective period of this section begins.''

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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. 97-35 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 1977 AMENDMENT

Section 1301 of Pub. L. 95-113 provided that the amendment made

by that section is effective Oct. 1, 1977.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2016, 2025, 2026, 2029,

2035 of this title.

-CITE-

7 USC Sec. 2018 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2018. Approval of retail food stores and wholesale food

concerns

-STATUTE-

(a) Applications; qualifications; certificate of approval; periodic

reauthorization

(1) Regulations issued pursuant to this chapter shall provide for

the submission of applications for approval by retail food stores

and wholesale food concerns which desire to be authorized to accept

and redeem coupons under the food stamp program and for the

approval of those applicants whose participation will effectuate

the purposes of the food stamp program. In determining the

qualifications of applicants, there shall be considered among such

other factors as may be appropriate, the following: (A) the nature

and extent of the food business conducted by the applicant; (B) the

volume of coupon business which may reasonably be expected to be

conducted by the applicant food store or wholesale food concern;

and (C) the business integrity and reputation of the applicant.

Approval of an applicant shall be evidenced by the issuance to such

applicant of a nontransferable certificate of approval. No retail

food store or wholesale food concern of a type determined by the

Secretary, based on factors that include size, location, and type

of items sold, shall be approved to be authorized or reauthorized

for participation in the food stamp program unless an authorized

employee of the Department of Agriculture, a designee of the

Secretary, or, if practicable, an official of the State or local

government designated by the Secretary has visited the store or

concern for the purpose of determining whether the store or concern

should be approved or reauthorized, as appropriate.

(2) The Secretary shall issue regulations providing for -

(A) the periodic reauthorization of retail food stores and

wholesale food concerns; and

(B) periodic notice to participating retail food stores and

wholesale food concerns of the definitions of ''retail food

store'', ''staple foods'', ''eligible foods'', and ''perishable

foods''.

(3) Authorization periods. - The Secretary shall establish

specific time periods during which authorization to accept and

redeem coupons, or to redeem benefits through an electronic benefit

transfer system, shall be valid under the food stamp program.

(b) Effective and efficient operation of program; effect of

disqualification; posting of bond

(1) No wholesale food concern may be authorized to accept and

redeem coupons unless the Secretary determines that its

participation is required for the effective and efficient operation

of the food stamp program. No co-located wholesale-retail food

concern may be authorized to accept and redeem coupons as a retail

food store, unless (A) the concern does a substantial level of

retail food business, or (B) the Secretary determines that failure

to authorize such a food concern as a retail food store would cause

hardship to food stamp households. In addition, no firm may be

authorized to accept and redeem coupons as both a retail food store

and as a wholesale food concern at the same time.

(2)(A) A buyer or transferee (other than a bona fide buyer or

transferee) of a retail food store or wholesale food concern that

has been disqualified under section 2021(a) of this title may not

accept or redeem coupons until the Secretary receives full payment

of any penalty imposed on such store or concern.

(B) A buyer or transferee may not, as a result of the sale or

transfer of such store or concern, be required to furnish a bond

under section 2021(d) of this title.

(c) Information submitted by applicants; safeguards; disclosure to

and use by State agencies

Regulations issued pursuant to this chapter shall require an

applicant retail food store or wholesale food concern to submit

information, which may include relevant income and sales tax filing

documents, which will permit a determination to be made as to

whether such applicant qualifies, or continues to qualify, for

approval under the provisions of this chapter or the regulations

issued pursuant to this chapter. The regulations may require

retail food stores and wholesale food concerns to provide written

authorization for the Secretary to verify all relevant tax filings

with appropriate agencies and to obtain corroborating documentation

from other sources so that the accuracy of information provided by

the stores and concerns may be verified. Regulations issued

pursuant to this chapter shall provide for safeguards which limit

the use or disclosure of information obtained under the authority

granted by this subsection to purposes directly connected with

administration and enforcement of the provisions of this chapter or

the regulations issued pursuant to this chapter, except that such

information may be disclosed to and used by Federal law enforcement

and investigative agencies and law enforcement and investigative

agencies of a State government for the purposes of administering or

enforcing this chapter or any other Federal or State law and the

regulations issued under this chapter or such law, and State

agencies that administer the special supplemental nutrition program

for women, infants and children, authorized under section 17 of the

Child Nutrition Act of 1966 (42 U.S.C. 1786), for purposes of

administering the provisions of that Act (42 U.S.C. 1771 et seq.)

and the regulations issued under that Act. Any person who

publishes, divulges, discloses, or makes known in any manner or to

any extent not authorized by Federal law (including a regulation)

any information obtained under this subsection shall be fined not

more than $1,000 or imprisoned not more than 1 year, or both. The

regulations shall establish the criteria to be used by the

Secretary to determine whether the information is needed. The

regulations shall not prohibit the audit and examination of such

information by the Comptroller General of the United States

authorized by any other provision of law.

(d) Hearing upon failure of applicant to receive approval; waiting

period for new application

Any retail food store or wholesale food concern which has failed

upon application to receive approval to participate in the food

stamp program may obtain a hearing on such refusal as provided in

section 2023 of this title. A retail food store or wholesale food

concern that is denied approval to accept and redeem coupons

because the store or concern does not meet criteria for approval

established by the Secretary may not, for at least 6 months, submit

a new application to participate in the program. The Secretary may

establish a longer time period under the preceding sentence,

including permanent disqualification, that reflects the severity of

the basis of the denial.

(e) Reporting of abuses by public

Approved retail food stores shall display a sign providing

information on how persons may report abuses they have observed in

the operation of the food stamp program.

(f) Limitation on participation of house-to-house trade routes

In those areas in which the Secretary, in consultation with the

Inspector General of the Department of Agriculture, finds evidence

that the operation of house-to-house trade routes damages the

program's integrity, the Secretary shall limit the participation of

house-to-house trade routes to those routes that are reasonably

necessary to provide adequate access to households.

-SOURCE-

(Pub. L. 88-525, Sec. 9, Aug. 31, 1964, 78 Stat. 705; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 968; Pub.

L. 97-98, title XIII, Sec. 1313, 1314, Dec. 22, 1981, 95 Stat.

1285; Pub. L. 97-253, title I, Sec. 165, Sept. 8, 1982, 96 Stat.

779; Pub. L. 99-198, title XV, Sec. 1521, 1532(b), Dec. 23, 1985,

99 Stat. 1579, 1583; Pub. L. 99-570, title XI, Sec. 11002(d), Oct.

27, 1986, 100 Stat. 3207-168; Pub. L. 101-624, title XVII, Sec.

1733, 1734, Nov. 28, 1990, 104 Stat. 3791; Pub. L. 102-237, title

IX, Sec. 941(4), Dec. 13, 1991, 105 Stat. 1892; Pub. L. 103-225,

title II, Sec. 202, 203, Mar. 25, 1994, 108 Stat. 108; Pub. L.

103-448, title II, Sec. 204(w)(2)(A), Nov. 2, 1994, 108 Stat. 4746;

Pub. L. 104-193, title VIII, Sec. 831-834, Aug. 22, 1996, 110 Stat.

2328.)

-REFTEXT-

REFERENCES IN TEXT

That Act, meaning the Child Nutrition Act of 1966, referred to in

subsec. (c), is Pub. L. 89-642, Oct. 11, 1966, 80 Stat. 885, as

amended, which is classified generally to chapter 13A (Sec. 1771 et

seq.) of Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see Short Title note set

out under section 1771 of Title 42 and Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (a)(1). Pub. L. 104-193, Sec. 831, inserted at end

''No retail food store or wholesale food concern of a type

determined by the Secretary, based on factors that include size,

location, and type of items sold, shall be approved to be

authorized or reauthorized for participation in the food stamp

program unless an authorized employee of the Department of

Agriculture, a designee of the Secretary, or, if practicable, an

official of the State or local government designated by the

Secretary has visited the store or concern for the purpose of

determining whether the store or concern should be approved or

reauthorized, as appropriate.''

Subsec. (a)(3). Pub. L. 104-193, Sec. 832, added par. (3).

Subsec. (c). Pub. L. 104-193, Sec. 833, in first sentence,

inserted '', which may include relevant income and sales tax filing

documents,'' after ''submit information'' and inserted after first

sentence ''The regulations may require retail food stores and

wholesale food concerns to provide written authorization for the

Secretary to verify all relevant tax filings with appropriate

agencies and to obtain corroborating documentation from other

sources so that the accuracy of information provided by the stores

and concerns may be verified.''

Subsec. (d). Pub. L. 104-193, Sec. 834, inserted at end ''A

retail food store or wholesale food concern that is denied approval

to accept and redeem coupons because the store or concern does not

meet criteria for approval established by the Secretary may not,

for at least 6 months, submit a new application to participate in

the program. The Secretary may establish a longer time period

under the preceding sentence, including permanent disqualification,

that reflects the severity of the basis of the denial.''

1994 - Subsec. (a)(2). Pub. L. 103-225, Sec. 202, amended par.

(2) generally. Prior to amendment, par. (2) read as follows: ''The

Secretary is authorized to issue regulations providing for a

periodic reauthorization of retail food stores and wholesale food

concerns.''

Subsec. (c). Pub. L. 103-448 in second sentence substituted

''special supplemental nutrition program'' for ''special

supplemental food program''.

Pub. L. 103-225, Sec. 203, in second sentence inserted ''Federal

law enforcement and investigative agencies and law enforcement and

investigative agencies of a State government for the purposes of

administering or enforcing this chapter or any other Federal or

State law and the regulations issued under this chapter or such

law, and'' after ''disclosed to and used by'', inserted after

second sentence ''Any person who publishes, divulges, discloses, or

makes known in any manner or to any extent not authorized by

Federal law (including a regulation) any information obtained under

this subsection shall be fined not more than $1,000 or imprisoned

not more than 1 year, or both.'', and in last sentence substituted

''The regulations shall establish the criteria to be used by the

Secretary to determine whether the information is needed. The

regulations shall not prohibit'' for ''Such purposes shall not

exclude''.

1991 - Subsec. (a)(1). Pub. L. 102-237 redesignated cls. (1) to

(3) as (A) to (C), respectively.

1990 - Subsec. (a). Pub. L. 101-624, Sec. 1733, designated

existing provisions as par. (1) and added par. (2).

Subsec. (b)(1). Pub. L. 101-624, Sec. 1734, inserted after first

sentence ''No co-located wholesale-retail food concern may be

authorized to accept and redeem coupons as a retail food store,

unless (A) the concern does a substantial level of retail food

business, or (B) the Secretary determines that failure to authorize

such a food concern as a retail food store would cause hardship to

food stamp households.''

1986 - Subsec. (g). Pub. L. 99-570, Sec. 1102(d), (f)(3),

temporarily added subsec. (g) which read as follows: ''In an area

in which the Secretary, in consultation with the Inspector General

of the Department of Agriculture, finds evidence that the

participation of an establishment or shelter described in section

2012(g)(9) of this title damages the program's integrity, the

Secretary shall limit the participation of such establishment or

shelter in the food stamp program, unless the establishment or

shelter is the only establishment or shelter serving the area.''.

See Effective and Termination Dates of 1986 Amendment note below.

1985 - Subsec. (b). Pub. L. 99-198, Sec. 1532(b), designated

existing provisions as par. (1) and added par. (2).

Subsec. (c). Pub. L. 99-198, Sec. 1521, inserted provisions

relating to disclosure of information to, and the use by, State

agencies which administer the special supplemental food program for

women, infants, and children, authorized under section 17 of the

Child Nutrition Act of 1966.

1982 - Subsec. (f). Pub. L. 97-253 added subsec. (f).

1981 - Subsec. (c). Pub. L. 97-98, Sec. 1313, inserted provision

that such purposes not exclude the audit and examination of such

information by the Comptroller General of the United States

authorized by any other provision of law.

Subsec. (e). Pub. L. 97-98, Sec. 1314, added subsec. (e).

1977 - Pub. L. 95-113 substituted revised provisions covering

approval of retail food stores and wholesale food concerns for

provisions relating to redemption of coupons which are now covered

by section 2019 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-448 effective Oct. 1, 1994, see section

401 of Pub. L. 103-448, set out as a note under section 1755 of

Title 42, The Public Health and Welfare.

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 and implemented first day

of month beginning 120 days after publication of implementing

regulations to be promulgated not later than Oct. 1, 1991, see

section 1781(a) of Pub. L. 101-624, set out as a note under section

2012 of this title.

EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENT

Amendment by Pub. L. 99-570 effective, and to be implemented by

issuance of final regulations, not later than Apr. 1, 1987, and

cease to be effective after Sept. 30, 1990, see section

11002(f)(1), (2) of Pub. L. 99-570, set out as a note under section

2012 of this title.

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2023, 2024 of this title;

title 26 section 6109; title 42 sections 405, 8011.

-CITE-

7 USC Sec. 2019 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2019. Redemption of coupons

-STATUTE-

Regulations issued pursuant to this chapter shall provide for the

redemption of coupons accepted by retail food stores through

approved wholesale food concerns or through financial institutions

which are insured by the Federal Deposit Insurance Corporation or

the Federal Savings and Loan Insurance Corporation, or which are

insured under the Federal Credit Union Act (12 U.S.C. 1751 et seq.)

and have retail food stores or wholesale food concerns in their

field of membership, with the cooperation of the Treasury

Department, except that retail food stores defined in section

2012(k)(4) of this title shall be authorized to redeem their

members' food coupons prior to receipt by the members of the food

so purchased, and publicly operated community mental health centers

or private nonprofit organizations or institutions which serve

meals to narcotics addicts or alcoholics in drug addiction or

alcoholic treatment and rehabilitation programs, public and private

nonprofit shelters that prepare and serve meals for battered women

and children, and public or private nonprofit group living

arrangements that serve meals to disabled or blind residents, shall

not be authorized to redeem coupons through financial institutions

which are insured by the Federal Deposit Insurance Corporation or

the Federal Savings and Loan Insurance Corporation or the Federal

Credit Union Act. Notwithstanding the preceding sentence, a center,

organization, institution, shelter, group living arrangement, or

establishment described in that sentence may be authorized to

redeem coupons through a financial institution described in that

sentence if the center, organization, institution, shelter, group

living arrangement, or establishment is equipped with 1 or more

point-of-sale devices and is operating in an area in which an

electronic benefit transfer system described in section 2016(i) of

this title has been implemented. No financial institution may

impose on or collect from a retail food store a fee or other charge

for the redemption of coupons that are submitted to the financial

institution in a manner consistent with the requirements, other

than any requirements relating to cancellation of coupons, for the

presentation of coupons by financial institutions to the Federal

Reserve banks.

-SOURCE-

(Pub. L. 88-525, Sec. 10, Aug. 31, 1964, 78 Stat. 706; Pub. L.

91-671, Sec. 6, Jan. 11, 1971, 84 Stat. 2051; Pub. L. 92-603, title

IV, Sec. 411(c)-(e), Oct. 30, 1972, 86 Stat. 1491; Pub. L. 93-86,

Sec. 3(f), (i), (k), Aug. 10, 1973, 87 Stat. 247, 248; Pub. L.

93-125, Sec. 1(j), Oct. 18, 1973, 87 Stat. 450; Pub. L. 95-113,

title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 969; Pub. L. 96-58,

Sec. 8, Aug. 14, 1979, 93 Stat. 392; Pub. L. 96-249, title I, Sec.

101(b), May 26, 1980, 94 Stat. 357; Pub. L. 97-98, title XIII, Sec.

1315, Dec. 22, 1981, 95 Stat. 1285; Pub. L. 99-198, title XV, Sec.

1501(b), 1522, 1523(a), Dec. 23, 1985, 99 Stat. 1566, 1580; Pub. L.

99-570, title XI, Sec. 11002(e), Oct. 27, 1986, 100 Stat. 3207-168;

Pub. L. 107-171, title IV, Sec. 4113(a), May 13, 2002, 116 Stat.

313.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Credit Union Act, referred to in text, is act June

26, 1934, ch. 750, 48 Stat. 1216, as amended, which is classified

generally to chapter 14 (Sec. 1751 et seq.) of Title 12, Banks and

Banking. For complete classification of this Act to the Code, see

section 1751 of Title 12 and Tables.

-MISC2-

AMENDMENTS

2002 - Pub. L. 107-171 inserted after first sentence

''Notwithstanding the preceding sentence, a center, organization,

institution, shelter, group living arrangement, or establishment

described in that sentence may be authorized to redeem coupons

through a financial institution described in that sentence if the

center, organization, institution, shelter, group living

arrangement, or establishment is equipped with 1 or more

point-of-sale devices and is operating in an area in which an

electronic benefit transfer system described in section 2016(i) of

this title has been implemented.''

1986 - Pub. L. 99-570, Sec. 11002(e), (f), temporarily struck out

''and'' after ''battered women and children,'' and inserted '', and

public or private nonprofit establishments, or public or private

nonprofit shelters that feed individuals who do not reside in

permanent dwellings and individuals who have no fixed mailing

addresses''. See Effective and Termination Dates of 1986 Amendment

note below.

1985 - Pub. L. 99-198, Sec. 1501(b), inserted reference to

publicly operated community mental health centers.

Pub. L. 99-198, Sec. 1522, inserted '', or which are insured

under the Federal Credit Union Act and have retail food stores or

wholesale food concerns in their field of membership'' and ''or the

Federal Credit Union Act''.

Pub. L. 99-198, Sec. 1523(a), inserted sentence providing that no

financial institution may impose on or collect from a retail food

store a fee or other charge for the redemption of coupons that are

submitted to the financial institution in a manner consistent with

the requirements, other than any requirements relating to

cancellation of coupons, for the presentation of coupons by

financial institutions to the Federal Reserve banks.

1981 - Pub. L. 97-98 substituted ''financial institutions which

are insured by the Federal Deposit Insurance Corporation or the

Federal Savings and Loan Insurance Corporation'' for ''banks''

wherever appearing.

1980 - Pub. L. 96-249 substituted ''purchased,'' for

''purchased'' and ''residents'' for ''residents,'' and inserted '',

public and private nonprofit shelters that prepare and serve meals

for battered women and children'' after ''programs''.

1979 - Pub. L. 96-58 inserted provisions relating to public and

private nonprofit group living arrangements that serve meals to

disabled or blind residents.

1977 - Pub. L. 95-113 substituted revised provisions covering

redemption of coupons for provisions relating to administration of

program which are now covered by section 2020 of this title.

1973 - Subsec. (e). Pub. L. 93-86, Sec. 3(i), inserted cls. (6)

and (7), designated former cl. (6) as (8), and inserted provision

relating to time for submission of plan of operation to Secretary

for approval and time for Secretary to make a determination of

approval or disapproval of such plan.

Subsec. (h). Pub. L. 93-125 inserted ''members of'' after ''the

Secretary shall permit''.

Pub. L. 93-86, Sec. 3(k), inserted provisions authorizing meal

purchases from senior citizens' centers, apartment buildings

occupied primarily by elderly persons, any public or nonprofit

private school which prepares meals especially for elderly persons,

any public or nonprofit private eating establishment which prepares

meals especially for elderly persons during special hours, and any

other public or nonprofit private establishment approved for such

purpose by the Secretary.

Subsec. (i). Pub. L. 93-86, Sec. 3(f), added subsec. (i).

1972 - Subsec. (c). Pub. L. 92-603, Sec. 411(c), struck out

provisions relating to filing of an affidavit by household for

certification of eligibility for public assistance.

Subsec. (e). Pub. L. 92-603, Sec. 411(d), (e), substituted

''prescribed by the Secretary in the regulations issued pursuant to

this chapter'' for ''used by them in the certification of

applicants for benefits under the federally aided public assistance

programs'' in cl. (2), and struck out provisions requiring the

State agency to institute procedures under which any household

participating in the food stamp program shall be entitled to have

the charges for its coupon allotment deducted from grants or

payments such household is entitled to receive and have its coupon

allotment distributed to it with such grant or payment.

1971 - Subsec. (c). Pub. L. 91-671, Sec. 6(a), inserted

provisions respecting certification of eligibility for benefits by

execution of an affidavit and duration of validity of a

certification upon removal of a household from one political

subdivision to another.

Subsec. (e). Pub. L. 91-671, Sec. 6(b), substituted

''regulations'' for ''regulation'' in second sentence preceding cl.

(1) and ''from time to time may'' for ''may from time to time'',

and added cls. (5) and (6) and provision for withholding in the

State plan.

Subsec. (h). Pub. L. 91-671, Sec. 6(c), added subsec. (h).

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4113(b), May 13, 2002, 116 Stat.

314, provided that: ''The amendment made by this section (amending

this section) takes effect on the date of enactment of this Act

(May 13, 2002).''

EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENT

Amendment by Pub. L. 99-570 effective, and to be implemented by

issuance of final regulations, not later than Apr. 1, 1987, and

cease to be effective after Sept. 30, 1990, see section

11002(f)(1), (2) of Pub. L. 99-570, set out as a note under section

2012 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-58 to be implemented in all States by

July 1, 1980, but not to affect the rights or liabilities of

Secretary, States, and applicant or participant households under

provisions of this chapter as in effect on July 1, 1979, until

implemented, see section 10(c) 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.

EFFECTIVE DATE OF 1972 AMENDMENT

Amendment by Pub. L. 92-603 effective Jan. 1, 1973, see section

411(h) of Pub. L. 92-603, set out as a note under section 2012 of

this title.

-TRANS-

TRANSFER OF FUNCTIONS

Federal Savings and Loan Insurance Corporation abolished and

functions transferred, see Pub. L. 101-73, title IV, Sec. 401-406,

Aug. 9, 1989, 103 Stat. 354-363, set out as a note under section

1437 of Title 12, Banks and Banking.

-MISC5-

PROMULGATION OF REGULATIONS REGARDING CHARGES FOR REDEMPTION OF

COUPONS

Section 1523(b) of Pub. L. 99-198 provided that: ''The Secretary

of Agriculture, in consultation with the Board of Governors of the

Federal Reserve System, shall issue regulations implementing the

amendment made by subsection (a) (amending this section).''

PUBLICLY OPERATED COMMUNITY HEALTH CENTERS

Provisions of this section concerning private, nonprofit drug

addiction or alcoholic treatment and rehabilitation programs to be

applicable to publicly operated community health centers, see

section 101(b) of Pub. L. 98-107, set out in part as a note under

section 2012 of this title.

EXTENSION UNTIL OCTOBER 1, 1976, OF FINAL DATE FOR COMPLIANCE WITH

REGULATIONS GOVERNING USE OF FOOD STAMPS BY AFDC FAMILIES

Pub. L. 94-182, title II, Sec. 201, Dec. 31, 1975, 89 Stat. 1056,

permitted the final date for compliance with regulations

implementing former subsec. (e)(7) of this section to be extended

until Oct. 1, 1976.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2012a of this

title; title 42 section 4728.

-CITE-

7 USC Sec. 2020 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2020. Administration

-STATUTE-

(a) State responsibility; records, inspection, and audit

The State agency of each participating State shall assume

responsibility for the certification of applicant households and

for the issuance of coupons and the control and accountability

thereof. There shall be kept such records as may be necessary to

ascertain whether the program is being conducted in compliance with

the provisions of this chapter and the regulations issued pursuant

to this chapter. Such records shall be available for inspection

and audit at any reasonable time and shall be preserved for such

period of time, not less than three years, as may be specified in

the regulations issued pursuant to this chapter.

(b) Correction of improper denials and underissuances

When a State agency learns, through its own reviews under section

2025 of this title or other reviews, or through other sources, that

it has improperly denied, terminated, or underissued benefits to an

eligible household, the State agency shall promptly restore any

improperly denied benefits to the extent required by subsection

(e)(11) of this section and section 2023(b) of this title, and

shall take other steps to prevent a recurrence of such errors where

such error was caused by the application of State agency practices,

rules or procedures inconsistent with the requirements of this

chapter or with regulations or policies of the Secretary issued

under the authority of this chapter.

(c) Discrimination prohibited

In the certification of applicant households for the food stamp

program, there shall be no discrimination by reason of race, sex,

religious creed, national origin, or political beliefs.

(d) Plan of operation by State agency; approval by Secretary;

Indians

The State agency (as defined in section 2012(n)(1) of this title)

of each State desiring to participate in the food stamp program

shall submit for approval a plan of operation specifying the manner

in which such program will be conducted within the State in every

political subdivision. The Secretary may not, as a part of the

approval process for a plan of operation, require a State to submit

for prior approval by the Secretary the State agency instructions

to staff, interpretations of existing policy, State agency methods

of administration, forms used by the State agency, or any

materials, documents, memoranda, bulletins, or other matter, unless

the State determines that the materials, documents, memoranda,

bulletins, or other matter alter or amend the State plan of

operation or conflict with the rights and levels of benefits to

which a household is entitled. In the case of all or part of an

Indian reservation, the State agency as defined in section

2012(n)(1) of this title shall be responsible for conducting such

program on such reservation unless the Secretary determines that

the State agency (as defined in section 2012(n)(1) of this title)

is failing, subsequent to August 31, 1964, properly to administer

such program on such reservation in accordance with the purposes of

this chapter and further determines that the State agency as

defined in section 2012(n)(2) of this title is capable of

effectively and efficiently conducting such program, in light of

the distance of the reservation from State agency-operated

certification and issuance centers, the previous experience of such

tribal organization in the operation of programs authorized under

the Indian Self-Determination Act (25 U.S.C. 450) and similar Acts

of Congress, the tribal organization's management and fiscal

capabilities, and the adequacy of measures taken by the tribal

organization to ensure that there shall be no discrimination in the

operation of the program on the basis of race, color, sex, or

national origin, in which event such State agency shall be

responsible for conducting such program and submitting for approval

a plan of operation specifying the manner in which such program

will be conducted. The Secretary, upon the request of a tribal

organization, shall provide the designees of such organization with

appropriate training and technical assistance to enable them to

qualify as expeditiously as possible as a State agency pursuant to

section 2012(n)(2) of this title. A State agency, as defined in

section 2012(n)(1) of this title, before it submits its plan of

operation to the Secretary for the administration of the food stamp

program on all or part of an Indian reservation, shall consult in

good faith with the tribal organization about that portion of the

State's plan of operation pertaining to the implementation of the

program for members of the tribe, and shall implement the program

in a manner that is responsive to the needs of the Indians on the

reservation as determined by ongoing consultation with the tribal

organization.

(e) Requisites of State plan of operation

The State plan of operation required under subsection (d) of this

section shall provide, among such other provisions as may be

required by regulation -

(1) that the State agency shall (A) at the option of the State

agency, inform low-income households about the availability,

eligibility requirements, application procedures, and benefits of

the food stamp program; and (B) use appropriate bilingual

personnel and printed material in the administration of the

program in those portions of political subdivisions in the State

in which a substantial number of members of low-income households

speak a language other than English;

(2)(A) that the State agency shall establish procedures

governing the operation of food stamp offices that the State

agency determines best serve households in the State, including

households with special needs, such as households with elderly or

disabled members, households in rural areas with low-income

members, homeless individuals, households residing on

reservations, and households in areas in which a substantial

number of members of low-income households speak a language other

than English.

(B) In carrying out subparagraph (A), a State agency -

(i) shall provide timely, accurate, and fair service to

applicants for, and participants in, the food stamp program;

(ii)(I) shall develop an application containing the

information necessary to comply with this chapter; and

(II) if the State agency maintains a website for the State

agency, shall make the application available on the website in

each language in which the State agency makes a printed

application available;

(iii) shall permit an applicant household to apply to

participate in the program on the same day that the household

first contacts a food stamp office in person during office

hours;

(iv) shall consider an application that contains the name,

address, and signature of the applicant to be filed on the date

the applicant submits the application;

(v) shall require that an adult representative of each

applicant household certify in writing, under penalty of

perjury, that -

(I) the information contained in the application is true;

and

(II) all members of the household are citizens or are

aliens eligible to receive food stamps under section 2015(f)

of this title;

(vi) shall provide a method of certifying and issuing coupons

to eligible homeless individuals, to ensure that participation

in the food stamp program is limited to eligible households;

and

(vii) may establish operating procedures that vary for local

food stamp offices to reflect regional and local differences

within the State.

(C) Nothing in this chapter shall prohibit the use of

signatures provided and maintained electronically, storage of

records using automated retrieval systems only, or any other

feature of a State agency's application system that does not rely

exclusively on the collection and retention of paper applications

or other records.

(D) The signature of any adult under this paragraph shall be

considered sufficient to comply with any provision of Federal law

requiring a household member to sign an application or statement;

(3) that the State agency shall thereafter promptly determine

the eligibility of each applicant household by way of

verification of income other than that determined to be excluded

by section 2014(d) of this title (in part through the use of the

information, if any, obtained under section 2025(e) of this

title), household size (in any case such size is questionable),

and such other eligibility factors as the Secretary determines to

be necessary to implement sections 2014 and 2015 of this title,

although the State agency may verify prior to certification,

whether questionable or not, the size of any applicant household

and such other eligibility factors as the State agency determines

are necessary, so as to complete certification of and provide an

allotment retroactive to the period of application to any

eligible household not later than thirty days following its

filing of an application, and that the State agency shall provide

each applicant household, at the time of application, a clear

written statement explaining what acts the household must perform

to cooperate in obtaining verification and otherwise completing

the application process;

(4) that the State agency shall insure that each participating

household receive a notice of expiration of its certification

prior to the start of the last month of its certification period

advising the household that it must submit a new application in

order to renew its eligibility for a new certification period

and, further, that each such household which seeks to be

certified another time or more times thereafter by filing an

application for such recertification no later than fifteen days

prior to the day upon which its existing certification period

expires shall, if found to be still eligible, receive its

allotment no later than one month after the receipt of the last

allotment issued to it pursuant to its prior certification, but

if such household is found to be ineligible or to be eligible for

a smaller allotment during the new certification period it shall

not continue to participate and receive benefits on the basis

authorized for the preceding certification period even if it

makes a timely request for a fair hearing pursuant to paragraph

(10) of this subsection: Provided, That the timeliness standards

for submitting the notice of expiration and filing an application

for recertification may be modified by the Secretary in light of

sections 2014(f)(2) and 2015(c) of this title if administratively

necessary;

(5) the specific standards to be used in determining the

eligibility of applicant households which shall be in accordance

with sections 2014 and 2015 of this title and shall include no

additional requirements imposed by the State agency;

(6) that -

(A) the State agency shall undertake the certification of

applicant households in accordance with the general procedures

prescribed by the Secretary in the regulations issued pursuant

to this chapter; and

(B) the State agency personnel utilized in undertaking such

certification shall be employed in accordance with the current

standards for a Merit System of Personnel Administration or any

standards later prescribed by the Office of Personnel

Management pursuant to section 4728 of title 42 modifying or

superseding such standards relating to the establishment and

maintenance of personnel standards on a merit basis;

(7) that an applicant household may be represented in the

certification process and that an eligible household may be

represented in coupon issuance or food purchase by a person other

than a member of the household so long as that person has been

clearly designated as the representative of that household for

that purpose by the head of the household or the spouse of the

head, and, where the certification process is concerned, the

representative is an adult who is sufficiently aware of relevant

household circumstances, except that the Secretary may restrict

the number of households which may be represented by an

individual and otherwise establish criteria and verification

standards for representation under this paragraph;

(8) safeguards which limit the use or disclosure of information

obtained from applicant households to persons directly connected

with the administration or enforcement of the provisions of this

chapter, regulations issued pursuant to this chapter, Federal

assistance programs, or federally assisted State programs, except

that -

(A) the safeguards shall not prevent the use or disclosure of

such information to the Comptroller General of the United

States for audit and examination authorized by any other

provision of law;

(B) notwithstanding any other provision of law, all

information obtained under this chapter from an applicant

household shall be made available, upon request, to local,

State or Federal law enforcement officials for the purpose of

investigating an alleged violation of this chapter or any

regulation issued under this chapter;

(C) the safeguards shall not prevent the use by, or

disclosure of such information, to agencies of the Federal

Government (including the United States Postal Service) for

purposes of collecting the amount of an overissuance of

coupons, as determined under section 2022(b) of this title,

from Federal pay (including salaries and pensions) as

authorized pursuant to section 5514 of title 5 or a Federal

income tax refund as authorized by section 3720A of title 31;

(D) notwithstanding any other provision of law, the address,

social security number, and, if available, photograph of any

member of a household shall be made available, on request, to

any Federal, State, or local law enforcement officer if the

officer furnishes the State agency with the name of the member

and notifies the agency that -

(i) the member -

(I) is fleeing to avoid prosecution, or custody or

confinement after conviction, for a crime (or attempt to

commit a crime) that, under the law of the place the member

is fleeing, is a felony (or, in the case of New Jersey, a

high misdemeanor), or is violating a condition of probation

or parole imposed under Federal or State law; or

(II) has information that is necessary for the officer to

conduct an official duty related to subclause (I);

(ii) locating or apprehending the member is an official

duty; and

(iii) the request is being made in the proper exercise of

an official duty; and

(E) the safeguards shall not prevent compliance with

paragraph (16) or (20)(B);

(9) that the State agency shall -

(A) provide coupons no later than 7 days after the date of

application to any household which -

(i)(I) has gross income that is less than $150 per month;

or

(II) is a destitute migrant or a seasonal farmworker

household in accordance with the regulations governing such

households in effect July 1, 1982; and

(ii) has liquid resources that do not exceed $100;

(B) provide coupons no later than 7 days after the date of

application to any household that has a combined gross income

and liquid resources that is less than the monthly rent, or

mortgage, and utilities of the household; and

(C) to the extent practicable, verify the income and liquid

resources of a household referred to in subparagraph (A) or (B)

prior to issuance of coupons to the household;

(10) for the granting of a fair hearing and a prompt

determination thereafter to any household aggrieved by the action

of the State agency under any provision of its plan of operation

as it affects the participation of such household in the food

stamp program or by a claim against the household for an

overissuance: Provided, That any household which timely requests

such a fair hearing after receiving individual notice of agency

action reducing or terminating its benefits within the

household's certification period shall continue to participate

and receive benefits on the basis authorized immediately prior to

the notice of adverse action until such time as the fair hearing

is completed and an adverse decision rendered or until such time

as the household's certification period terminates, whichever

occurs earlier, except that in any case in which the State agency

receives from the household a written statement containing

information that clearly requires a reduction or termination of

the household's benefits, the State agency may act immediately to

reduce or terminate the household's benefits and may provide

notice of its action to the household as late as the date on

which the action becomes effective. At the option of a State, at

any time prior to a fair hearing determination under this

paragraph, a household may withdraw, orally or in writing, a

request by the household for the fair hearing. If the withdrawal

request is an oral request, the State agency shall provide a

written notice to the household confirming the withdrawal request

and providing the household with an opportunity to request a

hearing;

(11) upon receipt of a request from a household, for the prompt

restoration in the form of coupons to a household of any

allotment or portion thereof which has been wrongfully denied or

terminated, except that allotments shall not be restored for any

period of time more than one year prior to the date the State

agency receives a request for such restoration from a household

or the State agency is notified or otherwise discovers that a

loss to a household has occurred;

(12) for the submission of such reports and other information

as from time to time may be required by the Secretary;

(13) for indicators of expected performance in the

administration of the program;

(14) that the State agency shall specify a plan of operation

for providing food stamps for households that are victims of a

disaster; that such plan shall include, but not be limited to,

procedures for informing the public about the disaster program

and how to apply for its benefits, coordination with Federal and

private disaster relief agencies and local government officials,

application procedures to reduce hardship and inconvenience and

deter fraud, and instruction of caseworkers in procedures for

implementing and operating the disaster program;

(15) that the State agency shall require each household

certified as eligible to participate by methods other than the

out-of-office methods specified in the fourth sentence of

paragraph (2) of this subsection in those project areas or parts

of project areas in which the Secretary, in consultation with the

Department's Inspector General, finds that it would be useful to

protect the program's integrity and would be cost effective, to

present a photographic identification card when using its

authorization card in order to receive its coupons. The State

agency may permit a member of a household to comply with this

paragraph by presenting a photographic identification card used

to receive assistance under a welfare or public assistance

program;

(16) notwithstanding paragraph (8) of this subsection, for the

immediate reporting to the Immigration and Naturalization Service

by the State agency of a determination by personnel responsible

for the certification or recertification of households that any

member of a household is ineligible to receive food stamps

because that member is present in the United States in violation

of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.);

(17) at the option of the State agency, for the establishment

and operation of an automatic data processing and information

retrieval system that meets such conditions as the Secretary may

prescribe and that is designed to provide efficient and effective

administration of the food stamp program;

(18) at the option of the State agency, that information may be

requested and exchanged for purposes of income and eligibility

verification in accordance with a State system which meets the

requirements of section 1320b-7 of title 42 and that any

additional information available from agencies administering

State unemployment compensation laws under the provisions of

section 503(d) of title 42 may be requested and utilized by the

State agency (described in section 2012(n)(1) of this title) to

the extent permitted under the provisions of section 503(d) of

title 42;

(19) that, in project areas or parts thereof where

authorization cards are used, and eligible households are

required to present photographic identification cards in order to

receive their coupons, the State agency shall include, in any

agreement or contract with a coupon issuer, a provision that (A)

the issuer shall (i) require the presenter to furnish a

photographic identification card at the time the authorization

card is presented, and (ii) record on the authorization card the

identification number shown on the photographic identification

card; and (B) if the State agency determines that the

authorization card has been stolen or otherwise was not received

by a household certified as eligible, the issuer shall be liable

to the State agency for the face value of any coupons issued in

the transaction in which such card is used and the issuer fails

to comply with the requirements of clause (A) of this paragraph;

(20) that the State agency shall establish a system and take

action on a periodic basis -

(A) to verify and otherwise ensure that an individual does

not receive coupons in more than 1 jurisdiction within the

State; and

(B) to verify and otherwise ensure that an individual who is

placed under detention in a Federal, State, or local penal,

correctional, or other detention facility for more than 30 days

shall not be eligible to participate in the food stamp program

as a member of any household, except that -

(i) the Secretary may determine that extraordinary

circumstances make it impracticable for the State agency to

obtain information necessary to discontinue inclusion of the

individual; and

(ii) a State agency that obtains information collected

under section 1382(e)(1)(I)(i)(I) of title 42 pursuant to

section 1382(e)(1)(I)(ii)(II) of title 42, or under another

program determined by the Secretary to be comparable to the

program carried out under that section, shall be considered

in compliance with this subparagraph.

(21) the plans of the State agency for carrying out employment

and training programs under section 2015(d)(4) of this title,

including the nature and extent of such programs, the geographic

areas and households to be covered under such program, and the

basis, including any cost information, for exemptions of

categories and individuals and for the choice of employment and

training program components reflected in the plans;

(22) in a project area in which 5,000 or more households

participate in the food stamp program, for the establishment and

operation of a unit for the detection of fraud in the food stamp

program, including the investigation, and assistance in the

prosecution, of such fraud;

(23) at the option of the State, for procedures necessary to

obtain payment of uncollected overissuance of coupons from

unemployment compensation pursuant to section 2022(c) of this

title;

(24) the guidelines the State agency uses in carrying out

section 2015(i) of this title; and

(25) if a State elects to carry out a Simplified Food Stamp

Program under section 2035 of this title, the plans of the State

agency for operating the program, including -

(A) the rules and procedures to be followed by the State

agency to determine food stamp benefits;

(B) how the State agency will address the needs of households

that experience high shelter costs in relation to the incomes

of the households; and

(C) a description of the method by which the State agency

will carry out a quality control system under section 2025(c)

of this title.

(f) Nutrition education

(1) In general

To encourage the purchase, preparation, and consumption of

nutritious foods, the Secretary is authorized to assign

responsibility for the nutrition education of individuals

eligible for food stamps, or the program for the distribution of

commodities on reservations, to the Cooperative Extension

Service, in cooperation with the Food and Nutrition Service.

State agencies shall encourage food stamp program participants to

participate in the expanded food and nutrition education program

conducted under section 343(d) of this title, and any program

established under sections 3175a through 3175e of this title. At

the request of personnel of such education program, State

agencies, wherever practicable, shall allow personnel and

information materials of such education program to be placed in

food stamp offices.

(2) Grants

(A) In general

The Secretary shall make available not more than $600,000 for

each of fiscal years 1998 through 2001 to pay the Federal share

of grants made to eligible private nonprofit organizations and

State agencies to carry out subparagraph (B).

(B) Eligibility

A private nonprofit organization or State agency shall be

eligible to receive a grant under subparagraph (A) if the

organization or agency agrees -

(i) to use the funds to direct a collaborative effort to

coordinate and integrate nutrition education into health,

nutrition, social service, and food distribution programs for

food stamp participants and other low-income households; and

(ii) to design the collaborative effort to reach large

numbers of food stamp participants and other low-income

households through a network of organizations, including

schools, child care centers, farmers' markets, health

clinics, and outpatient education services.

(C) Preference

In deciding between 2 or more private nonprofit organizations

or State agencies that are eligible to receive a grant under

subparagraph (B), the Secretary shall give a preference to an

organization or agency that conducted a collaborative effort

described in subparagraph (B) and received funding for the

collaborative effort from the Secretary before August 5, 1997.

(D) Federal share

(i) In general

Subject to subparagraph (E), the Federal share of a grant

under this paragraph shall be 50 percent.

(ii) No in-kind contributions

The non-Federal share of a grant under this paragraph shall

be in cash.

(iii) Private funds

The non-Federal share of a grant under this paragraph may

include amounts from private nongovernmental sources.

(E) Limit on individual grant

The Federal share of a grant under subparagraph (A) may not

exceed $200,000 for a fiscal year.

(g) State noncompliance; correction of failures

If the Secretary determines, upon information received by the

Secretary, investigation initiated by the Secretary, or

investigation that the Secretary shall initiate upon receiving

sufficient information evidencing a pattern of lack of compliance

by a State agency of a type specified in this subsection, that in

the administration of the food stamp program there is a failure by

a State agency without good cause to comply with any of the

provisions of this chapter, the regulations issued pursuant to this

chapter, the State plan of operation submitted pursuant to

subsection (d) of this section, the State plan for automated data

processing submitted pursuant to subsection (o)(2) of this section,

or the requirements established pursuant to section 2032 of this

title the Secretary shall immediately inform such State agency of

such failure and shall allow the State agency a specified period of

time for the correction of such failure. If the State agency does

not correct such failure within that specified period, the

Secretary may refer the matter to the Attorney General with a

request that injunctive relief be sought to require compliance

forthwith by the State agency and, upon suit by the Attorney

General in an appropriate district court of the United States

having jurisdiction of the geographic area in which the State

agency is located and a showing that noncompliance has occurred,

appropriate injunctive relief shall issue, and, whether or not the

Secretary refers such matter to the Attorney General, the Secretary

shall proceed to withhold from the State such funds authorized

under sections 2025(a), 2025(c), and 2025(g) of this title as the

Secretary determines to be appropriate, subject to administrative

and judicial review under section 2023 of this title.

(h) Deposit by State to cover fraudulently or negligently issued

coupons

If the Secretary determines that there has been negligence or

fraud on the part of the State agency in the certification of

applicant households, the State shall, upon request of the

Secretary, deposit into the Treasury of the United States, a sum

equal to the face value of any coupon or coupons issued as a result

of such negligence or fraud.

(i) Application and denial procedures

(1) Application procedures

Notwithstanding any other provision of law, households in which

all members are applicants for or recipients of supplemental

security income shall be informed of the availability of benefits

under the food stamp program and be assisted in making a simple

application to participate in such program at the social security

office and be certified for eligibility utilizing information

contained in files of the Social Security Administration.

(2) Denial and termination

Except in a case of disqualification as a penalty for failure

to comply with a public assistance program rule or regulation, no

household shall have its application to participate in the food

stamp program denied nor its benefits under the food stamp

program terminated solely on the basis that its application to

participate has been denied or its benefits have been terminated

under any of the programs carried out under the statutes

specified in the second sentence of section 2014(a) of this title

and without a separate determination by the State agency that the

household fails to satisfy the eligibility requirements for

participation in the food stamp program.

(j) Notice of availability of benefits and applications; revision

of memorandum of understanding

(1) Any individual who is an applicant for or recipient of

supplemental security income or social security benefits (under

regulations prescribed by the Secretary in conjunction with the

Commissioner of Social Security) shall be informed of the

availability of benefits under the food stamp program and informed

of the availability of a simple application to participate in such

program at the social security office.

(2) The Secretary and the Commissioner of Social Security shall

revise the memorandum of understanding in effect on December 23,

1985, regarding services to be provided in social security offices

under this subsection and subsection (i) of this section, in a

manner to ensure that -

(A) applicants for and recipients of social security benefits

are adequately notified in social security offices that

assistance may be available to them under this chapter;

(B) applications for assistance under this chapter from

households in which all members are applicants for or recipients

of supplemental security income will be forwarded immediately to

the State agency in an efficient and timely manner; and

(C) the Commissioner of Social Security receives from the

Secretary reimbursement for costs incurred to provide such

services.

(k) Use of post offices

Subject to the approval of the President, post offices in all or

part of the State may issue, upon request by the State agency, food

stamps to eligible households.

(l) Special financial audit review of high participation States

Whenever the ratio of a State's average food stamp participation

in any quarter of a fiscal year to the State's total population in

that quarter (estimated on the basis of the latest available

population estimates as provided by the Department of Commerce,

Bureau of the Census, Series P-25, Current Population Reports (or

its successor series)) exceeds 60 per centum, the Office of the

Inspector General of the Department of Agriculture shall

immediately schedule a financial audit review of a sample of

project areas within that State. Any financial audit review

subsequent to the first such review, required under the preceding

sentence, shall be conducted at the option of the Office of the

Inspector General.

(m) Alaskan fee agents; use and services

The Secretary shall provide for the use of fee agents in rural

Alaska. As used in this subsection ''fee agent'' means a paid agent

who, although not a State employee, is authorized by the State to

make applications available to low-income households, assist in the

completion of applications, conduct required interviews, secure

required verification, forward completed applications and

supporting documentation to the State agency, and provide other

services as required by the State agency. Such services shall not

include making final decisions on household eligibility or benefit

levels.

(n) Verification by State agencies

The Secretary shall require State agencies to conduct

verification and implement other measures where necessary, but no

less often than annually, to assure that an individual does not

receive both coupons and benefits or payments referred to in

section 2015(g) of this title or both coupons and assistance

provided in lieu of coupons under section 2026(b)(1) of this title.

(o) Data processing systems; model plan; comprehensive automation

and computerization; State plans; evaluation and report to

Congress; corrective measures by State; time for implementation

(1) The Secretary shall develop, after consultation with, and

with the assistance of, an advisory group of State agencies

appointed by the Secretary without regard to the provisions of the

Federal Advisory Committee Act, a model plan for the comprehensive

automation of data processing and computerization of information

systems under the food stamp program. The plan shall be developed

and made available for public comment through publication of the

proposed plan in the Federal Register not later than October 1,

1986. The Secretary shall complete the plan, taking into

consideration public comments received, not later than February 1,

1987. The elements of the plan may include intake procedures,

eligibility determinations and calculation of benefits,

verification procedures, coordination with related Federal and

State programs, the issuance of benefits, reconciliation

procedures, the generation of notices, and program reporting. In

developing the plan, the Secretary shall take into account

automated data processing and information systems already in

existence in States and shall provide for consistency with such

systems.

(2) Not later than October 1, 1987, each State agency shall

develop and submit to the Secretary for approval a plan for the use

of an automated data processing and information retrieval system to

administer the food stamp program in such State. The State plan

shall take into consideration the model plan developed by the

Secretary under paragraph (1) and shall provide time frames for

completion of various phases of the State plan. If a State agency

already has a sufficient automated data processing and information

retrieval system, the State plan may, subject to the Secretary's

approval, reflect the existing State system.

(3) Not later than April 1, 1988, the Secretary shall prepare and

submit to Congress an evaluation of the degree and sufficiency of

each State's automated data processing and computerized information

systems for the administration of the food stamp program, including

State plans submitted under paragraph (2). Such report shall

include an analysis of additional steps needed for States to

achieve effective and cost-efficient data processing and

information systems. The Secretary, thereafter, shall periodically

update such report.

(4) Based on the Secretary's findings in such report submitted

under paragraph (3), the Secretary may require a State agency, as

necessary to rectify identified shortcomings in the administration

of the food stamp program in the State, except where such direction

would displace State initiatives already under way, to take

specified steps to automate data processing systems or computerize

information systems for the administration of the food stamp

program in the State if the Secretary finds that, in the absence of

such systems, there will be program accountability or integrity

problems that will substantially affect the administration of the

food stamp program in the State.

(5)(A) Subject to subparagraph (B), in the case of a plan for an

automated data processing and information retrieval system

submitted by a State agency to the Secretary under paragraph (2),

such State agency shall -

(i) commence implementation of its plan not later than October

1, 1988; and

(ii) meet the time frames set forth in the plan.

(B) The Secretary shall extend a deadline imposed under

subparagraph (A) to the extent the Secretary deems appropriate

based on the Secretary's finding of a good faith effort of a State

agency to implement its plan in accordance with subparagraph (A).

(p) State verification option

Notwithstanding any other provision of law, in carrying out the

food stamp program, a State agency shall not be required to use an

income and eligibility or an immigration status verification system

established under section 1320b-7 of title 42.

(q) Denial of food stamps for prisoners

The Secretary shall assist States, to the maximum extent

practicable, in implementing a system to conduct computer matches

or other systems to prevent prisoners described in subsection

(e)(20)(B) of this section from participating in the food stamp

program as a member of any household.

(r) Denial of food stamps for deceased individuals

Each State agency shall -

(1) enter into a cooperative arrangement with the Commissioner

of Social Security, pursuant to the authority of the Commissioner

under section 405(r)(3) of title 42, to obtain information on

individuals who are deceased; and

(2) use the information to verify and otherwise ensure that

benefits are not issued to individuals who are deceased.

(s) Transitional benefits option

(1) In general

A State agency may provide transitional food stamp benefits to

a household that ceases to receive cash assistance under a State

program funded under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.).

(2) Transitional benefits period

Under paragraph (1), a household may receive transitional food

stamp benefits for a period of not more than 5 months after the

date on which cash assistance is terminated.

(3) Amount of benefits

During the transitional benefits period under paragraph (2), a

household shall receive an amount of food stamp benefits equal to

the allotment received in the month immediately preceding the

date on which cash assistance was terminated, adjusted for the

change in household income as a result of -

(A) the termination of cash assistance; and

(B) at the option of the State agency, information from

another program in which the household participates.

(4) Determination of future eligibility

In the final month of the transitional benefits period under

paragraph (2), the State agency may -

(A) require the household to cooperate in a recertification

of eligibility; and

(B) initiate a new certification period for the household

without regard to whether the preceding certification period

has expired.

(5) Limitation

A household shall not be eligible for transitional benefits

under this subsection if the household -

(A) loses eligibility under section 2015 of this title;

(B) is sanctioned for a failure to perform an action required

by Federal, State, or local law relating to a cash assistance

program described in paragraph (1); or

(C) is a member of any other category of households

designated by the State agency as ineligible for transitional

benefits.

(6) Applications for recertification

(A) In general

A household receiving transitional benefits under this

subsection may apply for recertification at any time during the

transitional benefits period under paragraph (2).

(B) Determination of allotment

If a household applies for recertification under subparagraph

(A), the allotment of the household for all subsequent months

shall be determined without regard to this subsection.

(t) Grants for simple application and eligibility determination

systems and improved access to benefits

(1) In general

For each of fiscal years 2003 through 2007, the Secretary shall

use not more than $5,000,000 of funds made available under

section 2027(a)(1) of this title to make grants to pay 100

percent of the costs of eligible entities approved by the

Secretary to carry out projects to develop and implement -

(A) simple food stamp application and eligibility

determination systems; or

(B) measures to improve access to food stamp benefits by

eligible households.

(2) Types of projects

A project under paragraph (1) may consist of -

(A) coordinating application and eligibility determination

processes, including verification practices, under the food

stamp program and other Federal, State, and local assistance

programs;

(B) establishing methods for applying for benefits and

determining eligibility that -

(i) more extensively use -

(I) communications by telephone; and

(II) electronic alternatives such as the Internet; or

(ii) otherwise improve the administrative infrastructure

used in processing applications and determining eligibility;

(C) developing procedures, training materials, and other

resources aimed at reducing barriers to participation and

reaching eligible households;

(D) improving methods for informing and enrolling eligible

households; or

(E) carrying out such other activities as the Secretary

determines to be appropriate.

(3) Limitation

A grant under this subsection shall not be made for the ongoing

cost of carrying out any project.

(4) Eligible entities

To be eligible to receive a grant under this subsection, an

entity shall be -

(A) a State agency administering the food stamp program;

(B) a State or local government;

(C) an agency providing health or welfare services;

(D) a public health or educational entity; or

(E) a private nonprofit entity such as a community-based

organization, food bank, or other emergency feeding

organization.

(5) Selection of eligible entities

The Secretary -

(A) shall develop criteria for the selection of eligible

entities to receive grants under this subsection; and

(B) may give preference to any eligible entity that consists

of a partnership between a governmental entity and a

nongovernmental entity.

-SOURCE-

(Pub. L. 88-525, Sec. 11, Aug. 31, 1964, 78 Stat. 707; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 969; Pub.

L. 96-249, title I, Sec. 113, 116-120, 122, 123, May 26, 1980, 94

Stat. 361-363; Pub. L. 97-35, title I, Sec. 111(a), Aug. 13, 1981,

95 Stat. 362; Pub. L. 97-98, title XIII, Sec. 1316-1320(a),

1321-1323, Dec. 22, 1981, 95 Stat. 1286, 1287; Pub. L. 97-253,

title I, Sec. 166-174, 180(b)(1), 189(b)(2), 190(c)(1), Sept. 8,

1982, 96 Stat. 779, 780, 783, 787; Pub. L. 98-204, Sec. 7, Dec. 2,

1983, 97 Stat. 1386; Pub. L. 98-369, div. B, title VI, Sec.

2651(i), July 18, 1984, 98 Stat. 1150; Pub. L. 99-198, title XV,

Sec. 1507(b), 1517(b), 1525-1531(a), (b), 1535(b)(1), 1537(b), (c),

Dec. 23, 1985, 99 Stat. 1568, 1576, 1580-1582, 1584, 1586, 1587;

Pub. L. 100-77, title VIII, Sec. 808(a), 809(a), July 22, 1987, 101

Stat. 536; Pub. L. 100-435, title II, Sec. 204(a), title III, Sec.

310, 311, 320, 321(a), 322, 323, 330, 352, Sept. 19, 1988, 102

Stat. 1657, 1660-1662, 1665; Pub. L. 101-624, title XVII, Sec.

1736-1741, 1763(b), Nov. 28, 1990, 104 Stat. 3793, 3794, 3806; Pub.

L. 102-237, title IX, Sec. 941(5), (6), Dec. 13, 1991, 105 Stat.

1892; Pub. L. 103-66, title XIII, Sec. 13941(a), Aug. 10, 1993, 107

Stat. 676; Pub. L. 103-296, title I, Sec. 108(f)(2), (3), Aug. 15,

1994, 108 Stat. 1487; Pub. L. 104-66, title I, Sec. 1011(x), Dec.

21, 1995, 109 Stat. 711; Pub. L. 104-193, title VIII, Sec. 809(b),

819(b), 835-840, 844(b), 848(b)(1), 854(b), Aug. 22, 1996, 110

Stat. 2313, 2320, 2329-2331, 2333, 2334, 2342; Pub. L. 105-33,

title I, Sec. 1003(a)(1), (2), (b), 1004, Aug. 5, 1997, 111 Stat.

255, 256; Pub. L. 105-379, Sec. 1(a), Nov. 12, 1998, 112 Stat.

3399; Pub. L. 107-171, title IV, Sec. 4114(a), 4115(a), 4116(a),

May 13, 2002, 116 Stat. 314, 315.)

-REFTEXT-

REFERENCES IN TEXT

The Indian Self-Determination Act (25 U.S.C. 450), referred to in

subsec. (d), is title I of Pub. L. 93-638, Jan. 4, 1975, 88 Stat.

2203, as amended, which is classified principally to part A (Sec.

450f et seq.) of subchapter II of chapter 14 of Title 25, Indians.

For complete classification of this Act to the Code, see Short

Title note set out under section 450 of Title 25 and Tables.

The Immigration and Nationality Act, referred to in subsec.

(e)(16), is act June 27, 1952, ch. 477, 66 Stat. 163, as amended,

which is classified principally to chapter 12 (Sec. 1101 et seq.)

of Title 8, Aliens and Nationality. For complete classification of

this Act to the Code, see Short Title note set out under section

1101 of Title 8 and Tables.

The Federal Advisory Committee Act, referred to in subsec.

(o)(1), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended,

which is set out in the Appendix to Title 5, Government

Organization and Employees.

The Social Security Act, referred to in subsec. (s)(1), 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. For complete classification of this Act to the Code, see

section 1305 of Title 42 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (e)(2)(B)(ii). Pub. L. 107-171, Sec. 4114(a),

designated existing provisions as subcl. (I) and added subcl. (II).

Subsec. (s). Pub. L. 107-171, Sec. 4115(a), added subsec. (s).

Subsec. (t). Pub. L. 107-171, Sec. 4116(a), added subsec. (t).

1998 - Subsec. (r). Pub. L. 105-379 added subsec. (r).

1997 - Subsec. (e)(8)(E). Pub. L. 105-33, Sec. 1003(a)(2),

substituted ''paragraph (16) or (20)(B)'' for ''paragraph (16)''.

Subsec. (e)(20). Pub. L. 105-33, Sec. 1003(a)(1), added par. (20)

and struck out former par. (20) which read as follows: ''that the

State agency shall establish a system and take action on a periodic

basis to verify and otherwise assure that an individual does not

receive coupons in more than one jurisdiction within the State;''.

Subsec. (f). Pub. L. 105-33, Sec. 1004, inserted subsec. heading,

designated existing provisions as par. (1), inserted par. heading,

and added par. (2).

Subsec. (q). Pub. L. 105-33, Sec. 1003(b), added subsec. (q).

1996 - Subsec. (e)(2). Pub. L. 104-193, Sec. 835(1)(A), added

par. (2) and struck out former par. (2) which required that each

State plan of operation was to provide that each household which

contacted food stamp office in person during office hours to make

what could reasonably be interpreted as oral or written request for

food stamp assistance was to receive and be permitted to file, on

same day that such contact was first made, simplified, uniform

national application form for participation in food stamp program.

Subsec. (e)(3). Pub. L. 104-193, Sec. 809(b), 835(1)(B),

substituted ''shall'' for ''shall - '' after ''and that the State

agency'', struck out ''(A)'' before ''provide each applicant

household'' and struck out subpars. (B) to (E) and concluding

provisions which provided that State agency was to assist each

applicant household in obtaining appropriate verification and

completing application process, not require any household to submit

additional proof of matter on which State agency already had

current verification, not deny any application for participation

solely because of failure of person outside household to cooperate,

process applications if household complied with requirements of

first sentence of section 2015(c) of this title by taking

appropriate steps to verify information otherwise required to be

verified under this chapter, provide household, at time of each

certification and recertification, with statement describing

reporting responsibilities of household under this chapter, and

provide toll-free or local telephone number, or telephone number at

which collect calls would be accepted by State agency, at which

household could reach appropriate representative of State agency.

Subsec. (e)(6). Pub. L. 104-193, Sec. 836, substituted ''(6) that

- '' for ''(6) that'', realigned margins of subpars. (A) and (B),

in subpar. (B) substituted ''Office of Personnel Management'' for

''United States Civil Service Commission'', and struck out subpars.

(C) to (E) which read as follows: ''(C) the State agency shall

provide a continuing, comprehensive program of training for all

personnel undertaking such certification so that eligible

households are promptly and accurately certified to receive the

allotments for which they are eligible under this chapter; (D) the

State agency, at its option, may undertake intensive training to

ensure that State agency personnel who undertake the certification

of households that include a member who engages in farming are

qualified to perform such certification; and (E) at its option, the

State agency may provide, or contract for the provision of,

training and assistance to persons working with volunteer or

nonprofit organizations that provide program information activities

or eligibility screening to persons potentially eligible for food

stamps;''.

Subsec. (e)(8). Pub. L. 104-193, Sec. 837, 844(b), in

introductory provisions, substituted ''except that - '' for

''except that'', in subpar. (A), realigned margin, substituted

''the safeguards'' for ''such safeguards'' and semicolon for comma

at end, in subpar. (B), realigned margin and substituted

''chapter;'' for ''chapter, and'', in subpar. (C), realigned

margin, substituted ''the safeguards'' for ''such safeguards'',

struck out ''and excluding claims arising from an error of the

State agency, that has not been recovered pursuant to such

section'' before '', from Federal pay'', and inserted before

semicolon at end ''or a Federal income tax refund as authorized by

section 3720A of title 31'', and added subpars. (D) and (E).

Subsec. (e)(9). Pub. L. 104-193, Sec. 838, in subpar. (A),

substituted ''7 days'' for ''five days'', redesignated subpar. (C)

as (B), substituted ''7 days'' for ''five days'', and struck out

former subpar. (B) which read as follows: ''provide coupons no

later than five days after the date of application to any household

in which all members are homeless individuals and that meets the

income and resource criteria for coupons under this chapter;'', and

redesignated subpar. (D) as (C) and substituted ''or (B)'' for '',

(B), or (C)''.

Subsec. (e)(10). Pub. L. 104-193, Sec. 839, inserted before

semicolon at end a period and ''At the option of a State, at any

time prior to a fair hearing determination under this paragraph, a

household may withdraw, orally or in writing, a request by the

household for the fair hearing. If the withdrawal request is an

oral request, the State agency shall provide a written notice to

the household confirming the withdrawal request and providing the

household with an opportunity to request a hearing''.

Subsec. (e)(14). Pub. L. 104-193, Sec. 835(1)(C), (D)(i),

redesignated par. (15) as (14) and struck out former par. (14)

which read as follows: ''that the State agency shall prominently

display in all food stamp and public assistance offices posters

prepared or obtained by the Secretary describing the information

contained in subparagraphs (A) through (D) of this paragraph and

shall make available in such offices for home use pamphlets

prepared or obtained by the Secretary listing (A) foods that

contain substantial amounts of recommended daily allowances of

vitamins, minerals, and protein for children and adults; (B) menus

that combine such foods into meals; (C) details on eligibility for

other programs administered by the Secretary that provide nutrition

benefits; and (D) general information on the relationship between

health and diet;''.

Subsec. (e)(15) to (17). Pub. L. 104-193, Sec. 835(1)(D)(i),

redesignated pars. (16) to (18) as (15) to (17), respectively.

Former par. (15) redesignated (14).

Subsec. (e)(18). Pub. L. 104-193, Sec. 840, substituted ''at the

option of the State agency, that information may be'' for ''that

information is'' and ''may be requested'' for ''shall be

requested''.

Pub. L. 104-193, Sec. 835(1)(D)(i), redesignated par. (19) as

(18). Former par. (18) redesignated (17).

Subsec. (e)(19) to (22). Pub. L. 104-193, Sec. 835(1)(D)(i),

redesignated pars. (20) to (23) as (19) to (22), respectively.

Former par. (19) redesignated (18).

Subsec. (e)(23). Pub. L. 104-193, Sec. 819(b)(1), 835(1)(D)(i),

redesignated par. (24) as (23) and struck out ''and'' at end.

Former par. (23) redesignated (22).

Subsec. (e)(24). Pub. L. 104-193, Sec. 835(1)(D)(ii),

redesignated par. (26) as (24). Former par. (24) redesignated (23).

Subsec. (e)(25). Pub. L. 104-193, Sec. 854(b), added par. (25).

Pub. L. 104-193, Sec. 819(b)(2), 835(1)(C), substituted semicolon

for concluding period and struck out par. (25) which read as

follows: ''a procedure for designating project areas or parts of

project areas that are rural and in which low-income persons face

substantial difficulties in obtaining transportation. The State

agency shall designate the areas according to procedures approved

by the Secretary. In each area so designated, the State agency

shall provide for the issuance of coupons by mail to all eligible

households in the area, except that any household with mail losses

exceeding levels established by the Secretary shall not be entitled

to such a mailing and the State agency shall not be required to

issue coupons by mail in those localities within such area where

the mail loss rates exceed standards set by the Secretary.''

Subsec. (e)(26). Pub. L. 104-193, Sec. 835(1)(D)(ii),

redesignated par. (26) as (24).

Pub. L. 104-193, Sec. 819(b)(3), added par. (26).

Subsec. (g). Pub. L. 104-193, Sec. 848(b)(1), in first sentence,

struck out ''the Secretary's standards for the efficient and

effective administration of the program established under section

2025(b)(1) of this title or'' before ''the requirements established

pursuant to section 2032''.

Subsec. (i). Pub. L. 104-193, Sec. 835(2)(A), inserted subsec.

heading.

Subsec. (i)(1). Pub. L. 104-193, Sec. 835(2)(A), designated

portion of existing provisions as par. (1), inserted heading, and

substituted ''Notwithstanding any other provision of law,'' for

''Notwithstanding any other provision of law, the Secretary, the

Commissioner of Social Security and the Secretary of Health and

Human Services shall develop a system by which (1) a single

interview shall be conducted to determine eligibility for the food

stamp program and the aid to families with dependent children

program under part A of title IV of the Social Security Act; (2)''.

Subsec. (i)(2). Pub. L. 104-193, Sec. 835(2)(B), substituted a

period, par. (2) designation, heading, and ''Except in a case of

disqualification as a penalty for failure to comply with a public

assistance program rule or regulation, no'' for ''; (3) households

in which all members are included in a federally aided public

assistance or State or local general assistance grant in a State

that has a single State-wide general assistance application form

shall have their application for participation in the food stamp

program contained in the public assistance or general assistance

application form, and households applying for a local general

assistance grant in a local jurisdiction in which the agency

administering the general assistance program also administers the

food stamp program shall be provided an application for

participation in the food stamp program at the time of their

application for general assistance, along with information

concerning how to apply for the food stamp program; and (4) new

applicants, as well as households which have recently lost or been

denied eligibility for public assistance or general assistance,

shall be certified for participation in the food stamp program

based on information in the public assistance or general assistance

case file to the extent that reasonably verified information is

available in such case file. In addition to implementing

paragraphs (1) through (4), the State agency shall inform

applicants for benefits under part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.) that such applicants may file,

along with their application for such benefits, an application for

benefits under this chapter, and that if such applicants file, they

shall have a single interview for food stamps and for benefits

under part A of title IV of the Social Security Act. No''.

Subsec. (p). Pub. L. 104-193, Sec. 840(2), added subsec. (p).

1995 - Subsec. (l). Pub. L. 104-66 struck out '', and shall, upon

completion of the audit, provide a report to Congress of its

findings and recommendations within one hundred and eighty days''

after ''within that State'' in first sentence.

1994 - Subsec. (i). Pub. L. 103-296, Sec. 108(f)(3), inserted '',

the Commissioner of Social Security'' after ''the Secretary'' in

first sentence.

Subsec. (j). Pub. L. 103-296, Sec. 108(f)(2), substituted

''Commissioner of Social Security'' for ''Secretary of Health and

Human Services'' wherever appearing.

1993 - Subsec. (e)(8)(C). Pub. L. 103-66 added cl. (C).

1991 - Subsec. (b). Pub. L. 102-237, Sec. 941(6), redesignated

subsec. (p) as (b) and transferred it to follow subsec. (a).

Subsec. (e)(2). Pub. L. 102-237, Sec. 941(5)(A), substituted a

semicolon for period at end.

Subsec. (e)(3)(D). Pub. L. 102-237, Sec. 941(5)(B)(i),

substituted ''section 2015 of this title)'' for ''section 2015 of

this title''.

Subsec. (e)(3)(E). Pub. L. 102-237, Sec. 941(5)(B)(ii), made

technical amendment to clarify alignment of margin of concluding

provisions.

Subsec. (e)(15). Pub. L. 102-237, Sec. 941(5)(C), substituted a

semicolon for period at end.

Subsec. (p). Pub. L. 102-237, Sec. 941(6), redesignated subsec.

(p) as (b) and transferred it to follow subsec. (a).

1990 - Subsec. (e)(2). Pub. L. 101-624, Sec. 1736(1), substituted

''on or near its front cover) explanations'' for ''instructions''

in third sentence.

Pub. L. 101-624, Sec. 1736(2), substituted ''The State agency

shall require that an adult representative of each household that

is applying for food stamp benefits shall certify in writing, under

penalty of perjury, that the information contained in the

application is true and that all members of the household are

either citizens or are aliens eligible to receive food stamps under

section 2015(f) of this title. The signature of the adult under

this section shall be deemed sufficient to comply with any

provision of Federal law requiring household members to sign the

application or statements in connection with the application

process.'' for ''One adult member of a household that is applying

for a coupon allotment shall be required to certify in writing,

under penalty of perjury, the truth of the information contained in

the application for the allotment.''

Subsec. (e)(3)(E). Pub. L. 101-624, Sec. 1737, inserted before

semicolon at end a period followed by ''Under rules prescribed by

the Secretary, a State agency shall develop standard estimates of

the shelter expenses that may reasonably be expected to be incurred

by households in which all members are homeless but that are not

receiving free shelter throughout the month. The Secretary may

issue regulations to preclude the use of the estimates for

households with extremely low shelter costs for whom the following

sentence shall not apply. A State agency shall use the estimates

in determining the allotments of the households, unless a household

verifies higher expenses''.

Subsec. (e)(21). Pub. L. 101-624, Sec. 1738(1), struck out

''and'' after ''within the State;''.

Subsec. (e)(22). Pub. L. 101-624, Sec. 1738(2), substituted

semicolon for period at end.

Subsec. (e)(25). Pub. L. 101-624, Sec. 1738(3)-(5), added par.

(25).

Subsec. (f). Pub. L. 101-624, Sec. 1739, inserted first sentence

and struck out former first sentence which read as follows: ''To

encourage the purchase of nutritious foods, the Secretary is

authorized to extend food and nutrition education to reach food

stamp program participants, using the methods and techniques

developed in the expanded food and nutrition education and other

programs.''

Subsec. (g). Pub. L. 101-624, Sec. 1763(b), inserted ''or the

requirements established pursuant to section 2032 of this title''

after ''section 2025(b)(1) of this title'' in first sentence.

Subsec. (i)(3). Pub. L. 101-624, Sec. 1740, inserted ''in a State

that has a single State-wide general assistance application form''

after ''grant'' and inserted before semicolon at end '', and

households applying for a local general assistance grant in a local

jurisdiction in which the agency administering the general

assistance program also administers the food stamp program shall be

provided an application for participation in the food stamp program

at the time of their application for general assistance, along with

information concerning how to apply for the food stamp program''.

Subsec. (j)(1). Pub. L. 101-624, Sec. 1741, inserted

''supplemental security income or'' after ''recipient of''.

1988 - Subsec. (e)(1)(A). Pub. L. 100-435, Sec. 204(a), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: ''not conduct food stamp outreach activities with funds

provided under this chapter except, at the option of the State

agency, food stamp informational activities directed at homeless

individuals; and''.

Subsec. (e)(2). Pub. L. 100-435, Sec. 310, inserted provisions

relating to brief, simply-written, and readable application forms.

Pub. L. 100-435, Sec. 330, substituted ''The State agency shall

waive in-office interviews, on a household's request, if a

household is unable to appoint an authorized representative

pursuant to paragraph (7) and has no adult household members able

to come to the appropriate State agency office because such members

are elderly, are mentally or physically handicapped, live in a

location not served by a certification office, or have

transportation difficulties or similar hardships as determined by

the State agency (including hardships due to residing in a rural

area, illness, care of a household member, prolonged severe

weather, or work or training hours). If an in-office interview is

waived, the State agency may conduct a telephone interview or a

home visit. The State agency shall provide for telephone contact

by, mail delivery of forms to, and mail return of forms by,

households that have transportation difficulties or similar

hardships.'' for ''The State agency shall comply with the standards

established by the Secretary for telephone contact by, mail

delivery of forms to and mail return of forms by, and subsequent

home or telephone interview with, the elderly, physically or

mentally handicapped, and persons otherwise unable, solely because

of transportation difficulties and similar hardships, to appear in

person at a certification office or through a representative

pursuant to paragraph (7) of this subsection, so that such persons

may have an adequate opportunity to be certified properly;''.

Subsec. (e)(3). Pub. L. 100-435, Sec. 323, inserted provisions at

end relating to dissemination of statements describing reporting

responsibilities and telephone number to call State agency.

Pub. L. 100-435, Sec. 311, inserted cls. (A) to (E).

Subsec. (e)(6)(C). Pub. L. 100-435, Sec. 322(a), substituted

''shall provide'' for ''shall undertake to provide'' and inserted

''so that eligible households are promptly and accurately certified

to receive the allotments for which they are eligible under this

chapter'' after ''such certification''.

Subsec. (e)(6)(D). Pub. L. 100-435, Sec. 321(a), added cl. (D).

Subsec. (e)(6)(E). Pub. L. 100-435, Sec. 322(b), added cl. (E).

Subsec. (i). Pub. L. 100-435, Sec. 352, amended second sentence

generally. Prior to amendment, second sentence read as follows:

''Each State agency shall implement clauses (1) and (2) and may

implement clause (3) or (4), or both such clauses.''

Subsec. (p). Pub. L. 100-435, Sec. 320, added subsec. (p).

1987 - Subsec. (e)(1)(A). Pub. L. 100-77, Sec. 808(a), inserted

''except, at the option of the State agency, food stamp

informational activities directed at homeless individuals'' after

''this chapter''.

Subsec. (e)(9). Pub. L. 100-77, Sec. 809(a), added subpars. (B)

and (C), redesignated former subpar. (B) as (D), and directed the

substitution of ''a household referred to in subparagraph (A), (B),

or (C)'' for ''the household'' which was executed by making the

substitution for the first reference to ''the household'' as the

probable intent of Congress.

1985 - Subsec. (e)(2). Pub. L. 99-198, Sec. 1529, inserted

provision directing the State agency to provide a method of

certifying and issuing coupons to eligible households that do not

reside in permanent dwellings or who do not have fixed mailing

addresses and to take such steps as are necessary to ensure that

participation in the food stamp program is limited to eligible

households.

Pub. L. 99-198, Sec. 1525, inserted requirement that one adult

member of a household that is applying for a coupon allotment

certify in writing, under penalty of perjury, the truth of the

information contained in the application for the allotment.

Subsec. (e)(3). Pub. L. 99-198, Sec. 1527, struck out ''only''

after ''verification'', inserted '', household size (in any case

such size is questionable,'', and substituted ''such other

eligibility factors as the State agency determines are necessary''

for ''any factors of eligibility involving households that fall

within the State agency's error-prone household profiles as

developed by the State agency from the error rate reduction system

conducted under section 2025 of this title and as approved by the

Secretary''.

Subsec. (e)(16). Pub. L. 99-198, Sec. 1528, substituted ''fourth

sentence'' for ''last sentence'', inserted ''and would be cost

effective'' after ''integrity'', and inserted provision authorizing

the State agency to permit a member of a household to comply with

this paragraph by presenting a photographic identification card

used to receive assistance under a welfare or public assistance

program.

Subsec. (e)(22). Pub. L. 99-198, Sec. 1517(b), added par. (22).

Subsec. (e)(23). Pub. L. 99-198, Sec. 1526, added par. (23).

Subsec. (e)(24). Pub. L. 99-198, Sec. 1535(b)(1), added par.

(24).

Subsec. (f). Pub. L. 99-198, Sec. 1530, inserted provisions

directing State agencies to encourage food stamp program

participants to participate in the expanded food and nutrition

education program conducted under section 343(d) of this title and

any program established under sections 3175a through 3175e of this

title and, at the request of personnel of such education program,

allow personnel and information materials of such education program

to be placed in food stamp offices.

Subsec. (g). Pub. L. 99-198, Sec. 1537(c), inserted ''the State

plan for automated data processing submitted pursuant to subsection

(o)(2) of this section,'' and substituted ''sections 2025(a),

2025(c), and 2025(g) of this title'' for ''sections 2025(a) and

2025(c) of this title''.

Subsec. (i). Pub. L. 99-198, Sec. 1531(a), in cl. (2) of first

sentence, inserted ''applicants for or'' after ''members are'' and

substituted ''informed of the availability of benefits under the

food stamp program and be assisted in making a simple application

to participate in such program'' for ''permitted to apply for

participation in the food stamp program by executing a simple

application'', effective Oct. 1, 1986.

Pub. L. 99-198, Sec. 1507(b), inserted sentence directing that no

household shall have its application to participate in the food

stamp program denied nor its benefits under the food stamp program

terminated solely on the basis that its application to participate

has been denied or its benefits have been terminated under any of

the programs carried out under the statutes specified in the second

sentence of section 2014(a) of this title and without a separate

determination by the State agency that the household fails to

satisfy the eligibility requirements for participation in the food

stamp program.

Subsec. (j). Pub. L. 99-198, Sec. 1531(b), amended subsec. (j)

generally, effective Oct. 1, 1986. Prior to amendment, subsec. (j)

read as follows: ''The Secretary, in conjunction with the Secretary

of Health and Human Services, is authorized to prescribe

regulations permitting applicants for and recipients of social

security benefits to apply for food stamps at social security

offices and be certified for food stamp eligibility in such offices

in order that the application and certification for food stamp

assistance may be accomplished as efficiently and conveniently as

possible.''

Subsec. (o). Pub. L. 99-198, Sec. 1537(b), added subsec. (o).

1984 - Subsec. (e)(19). Pub. L. 98-369 amended par. (19)

generally. Prior to amendment, par. (19) read as follows: ''that -

''(A) in any case in which information is available from

agencies administering State unemployment compensation laws under

section 303(d) of the Social Security Act (42 U.S.C. 503(d)), the

information shall be requested and utilized by the State agency

to the extent permitted under such section; or

''(B) in any case in which information is not available from

agencies administering State unemployment compensation laws under

section 303(d) of the Social Security Act -

''(i) information available from the Social Security

Administration under section 6103(l)(7) of title 26 shall be

requested and utilized by the State agency to the extent

permitted under such section; or

''(ii) similar information available from other sources shall

be requested and utilized by the State agency to the extent

approved by the Secretary and permitted by any law controlling

access to the information;''.

1983 - Subsec. (e)(19). Pub. L. 98-204 amended par. (19)

generally. Prior to amendment, par. (19) read as follows: ''that

information available from the Social Security Administration under

the provisions of section 6103(i)(7) of title 26, and information

available from agencies administering State unemployment

compensation laws under the provisions of section 303(d) of the

Social Security Act, shall be requested and utilized by the State

agency (described in section 2012(n)(1) of this title), to the

extent permitted under the provisions of such sections, except that

the State agency shall not be required to request such information

from the Social Security Administration if such information is

available from the agency administering the State unemployment

compensation laws;''.

1982 - Subsec. (d). Pub. L. 97-253, Sec. 166, inserted provision

that the Secretary may not, as a part of the approval process for a

plan of operation, require a State to submit for prior approval by

the Secretary the State agency instructions to staff,

interpretations of existing policy, State agency methods of

administration, forms used by the State agency, or any materials,

documents, memoranda, bulletins, or other matter, unless the State

determines that the materials, documents, memoranda, bulletins, or

other matter alter or amend the State plan of operation or conflict

with the rights and levels of benefits to which a household is

entitled.

Subsec. (e)(2). Pub. L. 97-253, Sec. 167(a), struck out ''points

and hours of certification, and for'' after ''Secretary for'' in

last sentence.

Subsec. (e)(3). Pub. L. 97-253, Sec. 180(b)(1), substituted

''section 2025(e) of this title'' for ''subsections (h) and (i) of

section 2025 of this title'' and ''error rate reduction system''

for ''quality control program'', respectively.

Subsec. (e)(7). Pub. L. 97-253, Sec. 168, substituted ''an'' for

''any'' wherever appearing and inserted provision that the

Secretary may restrict the number of households which may be

represented by an individual and otherwise establish criteria and

verification standards for representation under this paragraph.

Subsec. (e)(8). Pub. L. 97-253, Sec. 169, substituted '',

regulations issued pursuant to this chapter, Federal assistance

programs, or federally assisted State programs'' for ''or the

regulations issued pursuant to this chapter''.

Subsec. (e)(9). Pub. L. 97-253, Sec. 170, added par. (9). Former

par. (9), which required that the State plan of operation provide

that households in immediate need because of no income as defined

in section 2014(d) and (e) of this title would receive coupons on

an expedited basis, was struck out.

Subsec. (e)(10). Pub. L. 97-253, Sec. 171, inserted provision

that in any case in which the State agency receives from the

household a written statement containing information that clearly

requires a reduction or termination of the household's benefits,

the State agency may act immediately to reduce or terminate the

household's benefits and may provide notice of its action to the

household as late as the date on which the action becomes

effective.

Subsec. (e)(13). Pub. L. 97-253, Sec. 167(b), 190(c)(1),

redesignated par. (14) as (13) and struck out former par. (13)

which provided that the State plan of operation provide for

compliance with standards set by the Secretary with respect to

points and hours of coupon issuance.

Subsec. (e)(14) to (21). Pub. L. 97-253, Sec. 190(c)(1),

redesignated pars. (14) to (22) as (13) to (21), respectively.

Subsec. (e)(22). Pub. L. 97-253, Sec. 172, 190(c)(1), added par.

(22) and redesignated it as par. (21).

Subsec. (i). Pub. L. 97-253, Sec. 173, 189(b)(2)(A), inserted

provision requiring each State agency to implement pars. (1) and

(2), and permitting each such agency to implement either par. (3)

or (4), or both, and substituted reference to the Secretary of

Health and Human Services for former reference to the Secretary of

Health, Education, and Welfare.

Subsec. (j). Pub. L. 97-253, Sec. 189(b)(2)(B), substituted

reference to the Secretary of Health and Human Services for former

reference to the Secretary of Health, Education, and Welfare.

Subsec. (n). Pub. L. 97-253, Sec. 174, added subsec. (n).

1981 - Subsec. (b). Pub. L. 97-98, Sec. 1316, struck out subsec.

(b) which provided that certification of a household as eligible in

any political subdivision, in the event of removal of such

household to another political subdivision in which the food stamp

program is operating, remains valid for participation in the food

stamp program for a period of sixty days from the date of such

removal.

Subsec. (e)(1). Pub. L. 97-35 added cl. (A) and redesignated cl.

(C) as (B). Former cls. (A) and (B), relating to informing

low-income households about the program, and conducting other

outreach activities, respectively, were struck out.

Subsec. (e)(2). Pub. L. 97-98, Sec. 1317, inserted provision that

the application contain in understandable terms and in prominent

and boldface lettering a statement that the information provided by

the applicant is subject to verification and if incorrect the

applicant may be subject to denial of food stamps and criminal

prosecution.

Subsec. (e)(4). Pub. L. 97-98, Sec. 1318, substituted ''prior

to'' for ''immediately prior to or at'' and ''advising the

household'' for ''advising it''.

Subsec. (e)(8). Pub. L. 97-98, Sec. 1319, inserted provision that

such safeguards not prevent the use or disclosure of such

information to the Comptroller General of the United States for

audit and examination authorized by any other provision of law and

that, notwithstanding any other provision of law, all information

obtained under this chapter from an applicant household be

available to local, State, or Federal law enforcement officials for

the purpose of investigating an alleged violation of this chapter

or any regulation issued under this chapter.

Subsec. (e)(11). Pub. L. 97-98, Sec. 1320(a), inserted provision

that allotments not be restored for any period of time more than

one year prior to the date the State agency receives a request for

such restoration from a household or the State agency is notified

or otherwise discovers that a loss to a household has occurred.

Subsec. (e)(20), (21). Pub. L. 97-98, Sec. 1321, added pars. (20)

and (21).

Subsec. (f). Pub. L. 97-98, Sec. 1322, substituted ''is

authorized to extend food and nutrition education to reach food

stamp participants, using methods and techniques developed in the

expanded food and nutrition education and other programs'' for

''shall extend the expanded food and nutrition education program to

the greatest extent possible to reach food stamp program

participants'' and struck out provision that the program be

supplemented by the development of single concept printed

materials, specifically designed for persons with low reading and

comprehension levels, on how to buy and prepare more nutritious and

economical meals and on the relationship between food and good

health.

Subsec. (m). Pub. L. 97-98, Sec. 1323, added subsec. (m).

1980 - Subsec. (e)(3). Pub. L. 96-249, Sec. 116, inserted ''(in

part through the use of the information, if any, obtained under

subsections (h) and (i) of section 2025 of this title)'' after

''section 2014(d) of this title'' and ''although the State agency

may verify prior to certification, whether questionable or not, the

size of any applicant household and any factors of eligibility

involving households that fall within the State agency's

error-prone household profiles as developed by the State agency

from the quality control program conducted under section 2025 of

this title and as approved by the Secretary'' after ''sections 2014

and 2015 of this title,''.

Subsec. (e)(4). Pub. L. 96-249, Sec. 113, inserted proviso that

the timeliness standards for submitting the notice of expiration

and filing an application for recertification may be modified by

the Secretary in light of sections 2014(f)(2) and 2015(c) of this

title if administratively necessary.

Subsec. (e)(17) to (19). Pub. L. 96-249, Sec. 117-119, added

pars. (17) to (19).

Subsec. (g). Pub. L. 96-249, Sec. 120, inserted '', upon

information received by the Secretary, investigation initiated by

the Secretary, or investigation that the Secretary shall initiate

upon receiving sufficient information evidencing a pattern of lack

of compliance by a State agency of a type specified in this

subsection,'' after ''the Secretary determines'', ''without good

cause'' after ''to comply'', ''or the Secretary's standards for the

efficient and effective administration of the program established

under section 2025(b)(1) of this title'' after ''subsection (d) of

this section,'', and '', and whether or not the Secretary refers

such matter to the Attorney General, the Secretary shall proceed to

withhold from the State such funds authorized under sections

2025(a) and (c) of this title as the Secretary determines to be

appropriate, subject to administrative and judicial review under

section 2023 of this title'' after ''relief shall issue''.

Subsec. (i)(2). Pub. L. 96-249, Sec. 122, substituted ''simple

application'' for ''simplified affidavit''.

Subsec. (l). Pub. L. 96-249, Sec. 123, added subsec. (l).

1977 - Pub. L. 95-113 substituted revised provisions relating to

the administration of the program for provisions relating to the

disqualification of retail stores and wholesale concerns which are

now covered by section 2021 of this title.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4114(b), May 13, 2002, 116 Stat.

314, provided that: ''The amendments made by this section (amending

this section) take effect 18 months after the date of enactment of

this Act (May 13, 2002).''

Amendment by sections 4115(a) and 4116(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 1998 AMENDMENT

Pub. L. 105-379, Sec. 1(c), Nov. 12, 1998, 112 Stat. 3399,

provided that: ''This section (amending this section and enacting

provisions set out as a note below) and the amendments made by this

section take effect on June 1, 2000.''

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1003(a)(3) of Pub. L. 105-33 provided that:

''(A) In general. - Except as provided in subparagraph (B), the

amendments made by this subsection (amending this section) shall

take effect on the date that is 1 year after the date of enactment

of this Act (Aug. 5, 1997).

''(B) Extension. - The Secretary of Agriculture may grant a State

an extension of time to comply with the amendments made by this

subsection, not to exceed beyond the date that is 2 years after the

date of enactment of this Act, if the chief executive officer of

the State submits a request for the extension to the Secretary -

''(i) stating the reasons why the State is not able to comply

with the amendments made by this subsection by the date that is 1

year after the date of enactment of this Act;

''(ii) providing evidence that the State is making a good faith

effort to comply with the amendments made by this subsection as

soon as practicable; and

''(iii) detailing a plan to bring the State into compliance

with the amendments made by this subsection as soon as

practicable but not later than the date of the requested

extension.''

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

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 sections 1736(1), 1737, 1738, 1740, and 1741 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, amendment by section

1736(2) of Pub. L. 101-624 effective and implemented first day of

month beginning 120 days after promulgation of implementing

regulations to be promulgated not later than Apr. 1, 1991, and

amendment by sections 1739 and 1763(b) of Pub. L. 101-624 effective

Nov. 28, 1990, see section 1781(a), (b)(2), (3) of Pub. L. 101-624,

set out as a note under section 2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 to be effective and implemented on

July 1, 1989, except that amendment by sections 204(a), 310, 311,

321(a), 322, 323, and 352 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(b)(4), (c)(2) of Pub. L. 100-435, set out as a note under

section 2012 of this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Section 809(b) of Pub. L. 100-77 provided that: ''The amendments

made by this section (amending this section) shall become effective

and be implemented as soon as the Secretary of Agriculture

determines is practicable after the date of enactment of this Act

(July 22, 1987), but not later than 160 days after the date of

enactment of this Act.''

EFFECTIVE DATE OF 1985 AMENDMENT

Section 1531(a), (b) of Pub. L. 99-198 provided that the

amendments made by that section are effective Oct. 1, 1986.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective Apr. 1, 1985, unless a

waiver has been granted to a State to delay effective date but in

no event beyond Sept. 30, 1986, see section 2651(l)(2) of Pub. L.

98-369, set out as a note under section 1320b-7 of Title 42, The

Public Health and Welfare.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendments by sections 166 to 174, 189(b)(2), and 190(c)(1) 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.

Amendment by section 180(b)(1) 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 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 Sec. 1005(a) of Pub. L.

105-33 set out as a note under section 2015 of this title.

-TRANS-

ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF

FUNCTIONS

For abolition of Immigration and Naturalization Service, transfer

of functions, and treatment of related references, see note set out

under section 1551 of Title 8, Aliens and Nationality.

-MISC5-

REPORT

Pub. L. 105-379, Sec. 1(b), Nov. 12, 1998, 112 Stat. 3399,

provided that: ''Not later than September 1, 2000, the Secretary of

Agriculture shall submit a report regarding the progress and

effectiveness of the cooperative arrangements entered into by State

agencies under section 11(r) of the Food Stamp Act of 1977 (7

U.S.C. 2020(r)) (as added by subsection (a)) to -

''(1) the Committee on Agriculture of the House of

Representatives;

''(2) the Committee on Agriculture, Nutrition, and Forestry of

the Senate;

''(3) the Committee on Ways and Means of the House of

Representatives;

''(4) the Committee on Finance of the Senate; and

''(5) the Secretary of the Treasury.''

AUDIT OF SIMPLIFIED FOOD STAMP APPLICATION AT SOCIAL SECURITY

ADMINISTRATION OFFICES

Section 1742 of Pub. L. 101-624 directed Comptroller General to

conduct an audit of programs established under 7 U.S.C. 2020(i) and

(j) under which an applicant for or recipient of social security

benefits may make or be provided a simple application to

participate in the food stamp program at social security offices,

and, not later than Dec. 31, 1991, deliver a report on results of

study to Committee on Agriculture of House of Representatives,

Committee on Agriculture, Nutrition, and Forestry of Senate, and

Special Committee on Aging of Senate.

-EXEC-

EX. ORD. NO. 12116. ISSUANCE OF FOOD STAMPS BY POSTAL SERVICE

Ex. Ord. No. 12116, Jan. 19, 1979, 44 F.R. 4647, provided:

By the authority vested in me as President of the United States

of America by Section 11(k) of the Food Stamp Act of 1977 (91 Stat.

974; 7 U.S.C. 2020(k)), the United States Postal Service is hereby

granted approval for post offices in all or part of any State to

issue food stamps to eligible households, upon request by the

appropriate State agency, as defined in Section 3(n) of the Food

Stamp Act of 1977 (91 Stat. 960; 7 U.S.C. 2012(n)).

Jimmy Carter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2014, 2015, 2016,

2017, 2025, 2026, 2027, 2030, 2031, 2035 of this title.

-CITE-

7 USC Sec. 2021 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2021. Civil money penalties and disqualification of retail

food stores and wholesale food concerns

-STATUTE-

(a) Disqualification or civil penalty

Any approved retail food store or wholesale food concern may be

disqualified for a specified period of time from further

participation in the food stamp program, or subjected to a civil

money penalty of up to $10,000 for each violation if the Secretary

determines that its disqualification would cause hardship to food

stamp households, on a finding, made as specified in the

regulations, that such store or concern has violated any of the

provisions of this chapter or the regulations issued pursuant to

this chapter. Regulations issued pursuant to this chapter shall

provide criteria for the finding of a violation and the suspension

or disqualification of a retail food store or wholesale food

concern on the basis of evidence that may include facts established

through on-site investigations, inconsistent redemption data, or

evidence obtained through a transaction report under an electronic

benefit transfer system.

(b) Period of disqualification

Disqualification under subsection (a) of this section shall be -

(1) for a reasonable period of time, of no less than six months

nor more than five years, upon the first occasion of

disqualification;

(2) for a reasonable period of time, of no less than twelve

months nor more than ten years, upon the second occasion of

disqualification;

(3) permanent upon -

(A) the third occasion of disqualification;

(B) the first occasion or any subsequent occasion of a

disqualification based on the purchase of coupons or

trafficking in coupons or authorization cards by a retail food

store or wholesale food concern, except that the Secretary

shall have the discretion to impose a civil money penalty of up

to $20,000 for each violation (except that the amount of civil

money penalties imposed for violations occurring during a

single investigation may not exceed $40,000) in lieu of

disqualification under this subparagraph, for such purchase of

coupons or trafficking in coupons or cards that constitutes a

violation of the provisions of this chapter or the regulations

issued pursuant to this chapter, if the Secretary determines

that there is substantial evidence that such store or food

concern had an effective policy and program in effect to

prevent violations of the chapter and the regulations,

including evidence that -

(i) the ownership of the store or food concern was not

aware of, did not approve of, did not benefit from, and was

not involved in the conduct of the violation; and

(ii)(I) the management of the store or food concern was not

aware of, did not approve of, did not benefit from, and was

not involved in the conduct of the violation; or

(II) the management was aware of, approved of, benefited

from, or was involved in the conduct of no more than 1

previous violation by the store or food concern; or

(C) a finding of the sale of firearms, ammunition,

explosives, or controlled substance (as defined in section 802

of title 21) for coupons, except that the Secretary shall have

the discretion to impose a civil money penalty of up to $20,000

for each violation (except that the amount of civil money

penalties imposed for violations occurring during a single

investigation may not exceed $40,000) in lieu of

disqualification under this subparagraph if the Secretary

determines that there is substantial evidence (including

evidence that neither the ownership nor management of the store

or food concern was aware of, approved, benefited from, or was

involved in the conduct or approval of the violation) that the

store or food concern had an effective policy and program in

effect to prevent violations of this chapter; and

(4) for a reasonable period of time to be determined by the

Secretary, including permanent disqualification, on the knowing

submission of an application for the approval or reauthorization

to accept and redeem coupons that contains false information

about a substantive matter that was a part of the application.

(c) Review

The action of disqualification or the imposition of a civil money

penalty shall be subject to review as provided in section 2023 of

this title.

(d) Bonds

As a condition of authorization to accept and redeem coupons, the

Secretary may require a retail food store or wholesale food concern

which has been disqualified or subjected to a civil penalty

pursuant to subsection (a) of this section to furnish a bond to

cover the value of coupons which such store or concern may in the

future accept and redeem in violation of this chapter. The

Secretary shall, by regulation, prescribe the amount, terms, and

conditions of such bond. If the Secretary finds that such store or

concern has accepted and redeemed coupons in violation of this

chapter after furnishing such bond, such store or concern shall

forfeit to the Secretary an amount of such bond which is equal to

the value of coupons accepted and redeemed by such store or concern

in violation of this chapter. Such store or concern may obtain a

hearing on such forfeiture pursuant to section 2023 of this title.

(e) Transfer of ownership; penalty in lieu of disqualification

period; fines for acceptance of loose coupons; judicial action

to recover penalty or fine

(1) In the event any retail food store or wholesale food concern

that has been disqualified under subsection (a) of this section is

sold or the ownership thereof is otherwise transferred to a

purchaser or transferee, the person or persons who sell or

otherwise transfer ownership of the retail food store or wholesale

food concern shall be subjected to a civil money penalty in an

amount established by the Secretary through regulations to reflect

that portion of the disqualification period that has not yet

expired. If the retail food store or wholesale food concern has

been disqualified permanently, the civil money penalty shall be

double the penalty for a ten-year disqualification period, as

calculated under regulations issued by the Secretary. The

disqualification period imposed under subsection (b) of this

section shall continue in effect as to the person or persons who

sell or otherwise transfer ownership of the retail food store or

wholesale food concern notwithstanding the imposition of a civil

money penalty under this subsection.

(2) At any time after a civil money penalty imposed under

paragraph (1) has become final under the provisions of section

2023(a) of this title, the Secretary may request the Attorney

General to institute a civil action against the person or persons

subject to the penalty in a district court of the United States for

any district in which such person or persons are found, reside, or

transact business to collect the penalty and such court shall have

jurisdiction to hear and decide such action. In such action, the

validity and amount of such penalty shall not be subject to review.

(3) The Secretary may impose a fine against any retail food store

or wholesale food concern that accepts food coupons that are not

accompanied by the corresponding book cover, other than the

denomination of coupons used for making change as specified in

regulations issued under this chapter. The amount of any such fine

shall be established by the Secretary and may be assessed and

collected in accordance with regulations issued under this chapter

separately or in combination with any fiscal claim established by

the Secretary. The Attorney General of the United States may

institute judicial action in any court of competent jurisdiction

against the store or concern to collect the fine.

(f) Fines for unauthorized third parties that accept food stamps

The Secretary may impose a fine against any person not approved

by the Secretary to accept and redeem food coupons who violates any

provision of this chapter or a regulation issued under this

chapter, including violations concerning the acceptance of food

coupons. The amount of any such fine shall be established by the

Secretary and may be assessed and collected in accordance with

regulations issued under this chapter separately or in combination

with any fiscal claim established by the Secretary. The Attorney

General of the United States may institute judicial action in any

court of competent jurisdiction against the person to collect the

fine.

(g) Disqualification of retailers who are disqualified under WIC

program

(1) In general

The Secretary shall issue regulations providing criteria for

the disqualification under this chapter of an approved retail

food store or a wholesale food concern that is disqualified from

accepting benefits under the special supplemental nutrition

program for women, infants, and children established under

section 1786 of title 42.

(2) Terms

A disqualification under paragraph (1) -

(A) shall be for the same length of time as the

disqualification from the program referred to in paragraph (1);

(B) may begin at a later date than the disqualification from

the program referred to in paragraph (1); and

(C) notwithstanding section 2023 of this title, shall not be

subject to judicial or administrative review.

-SOURCE-

(Pub. L. 88-525, Sec. 12, Aug. 31, 1964, 78 Stat. 707; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 974; Pub.

L. 97-253, title I, Sec. 175, 176(a), Sept. 8, 1982, 96 Stat. 781;

Pub. L. 99-198, title XV, Sec. 1532(a), Dec. 23, 1985, 99 Stat.

1582; Pub. L. 100-435, title III, Sec. 344, Sept. 19, 1988, 102

Stat. 1664; Pub. L. 101-624, title XVII, Sec. 1743-1745, Nov. 28,

1990, 104 Stat. 3795, 3796; Pub. L. 103-66, title XIII, Sec. 13943,

13944, Aug. 10, 1993, 107 Stat. 677; Pub. L. 104-127, title IV,

Sec. 401(a), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 104-193, title

VIII, Sec. 841-843, Aug. 22, 1996, 110 Stat. 2331, 2332.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-193, Sec. 841, inserted at end

''Regulations issued pursuant to this chapter shall provide

criteria for the finding of a violation and the suspension or

disqualification of a retail food store or wholesale food concern

on the basis of evidence that may include facts established through

on-site investigations, inconsistent redemption data, or evidence

obtained through a transaction report under an electronic benefit

transfer system.''

Subsec. (b)(3)(B). Pub. L. 104-127, Sec. 401(a), struck out

''(including evidence that neither the ownership nor management of

the store or food concern was aware of, approved, benefited from,

or was involved in the conduct or approval of the violation)''

after ''substantial evidence'' and substituted '', including

evidence that - '' and cls. (i) and (ii) for ''; or''.

Subsec. (b)(4). Pub. L. 104-193, Sec. 842, added par. (4).

Subsec. (g). Pub. L. 104-193, Sec. 843, added subsec. (g).

1993 - Subsec. (b)(3)(B). Pub. L. 103-66, Sec. 13943, substituted

''for violations occurring during a single investigation'' for

''during a 2-year period''.

Subsec. (b)(3)(C). Pub. L. 103-66, Sec. 13944, substituted

''substance (as'' for ''substances (as the term is'' and ''for

violations occurring during a single investigation'' for ''during a

2-year period''.

1990 - Subsec. (b)(3). Pub. L. 101-624, Sec. 1743, in subpar. (A)

struck out ''or'' after ''disqualification;'', in subpar. (B)

inserted ''for each violation (except that the amount of civil

money penalties imposed during a 2-year period may not exceed

$40,000)'' after ''$20,000'' and ''(including evidence that neither

the ownership nor management of the store or food concern was aware

of, approved, benefited from, or was involved in the conduct or

approval of the violation)'' after ''evidence'', and substituted

''; or'' for period at end, and added subpar. (C).

Subsec. (e)(3). Pub. L. 101-624, Sec. 1744, added par. (3).

Subsec. (f). Pub. L. 101-624, Sec. 1745, added subsec. (f).

1988 - Subsec. (b)(3). Pub. L. 100-435 amended par. (3)

generally. Prior to amendment, par. (3) read as follows:

''permanent upon the third occasion of disqualification or the

first occasion of a disqualification based on the purchase of

coupons or trafficking in coupons or authorization cards by a

retail food store or wholesale food concern.''

1985 - Subsec. (e). Pub. L. 99-198 added subsec. (e).

1982 - Subsec. (a). Pub. L. 97-253, Sec. 175(1)-(3), redesignated

first sentence as subsec. (a), substituted ''$10,000'' for

''$5,000'', and struck out second sentence relating to

disqualification.

Subsec. (b). Pub. L. 97-253, Sec. 175(3), added subsec. (b)

relating to disqualification.

Subsec. (c). Pub. L. 97-253, Sec. 175(4), redesignated last

sentence as subsec. (c).

Subsec. (d). Pub. L. 97-253, Sec. 176(a), added subsec. (d).

1977 - Pub. L. 95-113 substituted revised provisions covering

civil money penalties and disqualification of retail food stores

and wholesale food concerns for provisions relating to the

determination and disposition of claims which are now covered by

section 2022 of this title.

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 1990 AMENDMENT

Amendment by 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, see

section 1781(a) of Pub. L. 101-624, set out as a note under section

2012 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 to be effective and implemented on

Oct. 1, 1988, see section 701(a) of Pub. L. 100-435, set out as a

note under section 2012 of this title.

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.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2016, 2018, 2023 of this

title; title 26 section 6109; title 42 section 405.

-CITE-

7 USC Sec. 2022 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2022. Disposition of claims

-STATUTE-

(a) General authority of the Secretary

(1) Determination of claims

Except in the case of an at-risk amount required under section

2025(c)(1)(D)(i)(III) of this title, the Secretary shall have the

power to determine the amount of and settle and adjust any claim

and to compromise or deny all or part of any such claim or claims

arising under the provisions of this chapter or the regulations

issued pursuant to this chapter, including, but not limited to,

claims arising from fraudulent and nonfraudulent overissuances to

recipients, including the power to waive claims if the Secretary

determines that to do so would serve the purposes of this

chapter. Such powers with respect to claims against recipients

may be delegated by the Secretary to State agencies. The

Secretary shall have the power to reduce amounts otherwise due to

a State agency under section 2025 of this title to collect unpaid

claims assessed against the State agency if the State agency has

declined or exhausted its appeal rights under section 2023 of

this title.

(2) Claims established under quality control system

To the extent that a State agency does not pay a claim

established under section 2025(c)(1) of this title, including an

agreement to have all or part of the claim paid through a

reduction in Federal administrative funding, within 30 days from

the date on which the bill for collection is received by the

State agency, the State agency shall be liable for interest on

any unpaid portion of such claim accruing from the date on which

the bill for collection was received by the State agency, unless

the State agency appeals the claim under section 2025(c)(7) of

this title. If the State agency appeals such claim (in whole or

in part), the interest on any unpaid portion of the claim shall

accrue from the date of the decision on the administrative

appeal, or from a date that is 1 year after the date the bill is

received, whichever is earlier, until the date the unpaid portion

of the payment is received. If the State agency pays such claim

(in whole or in part, including an agreement to have all or part

of the claim paid through a reduction in Federal administrative

funding) and the claim is subsequently overturned through

administrative or judicial appeal, any amounts paid by the State

agency shall be promptly returned with interest, accruing from

the date the payment is received until the date the payment is

returned.

(3) Computation of interest

Any interest assessed under this paragraph shall be computed at

a rate determined by the Secretary based on the average of the

bond equivalent of the weekly 90-day Treasury bill auction rates

during the period such interest accrues.

(4) Joint and several liability of household members

Each adult member of a household shall be jointly and severally

liable for the value of any overissuance of coupons.

(b) Collection of overissuances

(1) In general

Except as otherwise provided in this subsection, a State agency

shall collect any overissuance of coupons issued to a household

by -

(A) reducing the allotment of the household;

(B) withholding amounts from unemployment compensation from a

member of the household under subsection (c) of this section;

(C) recovering from Federal pay or a Federal income tax

refund under subsection (d) of this section; or

(D) any other means.

(2) Cost effectiveness

Paragraph (1) shall not apply if the State agency demonstrates

to the satisfaction of the Secretary that all of the means

referred to in paragraph (1) are not cost effective.

(3) Maximum reduction absent fraud

If a household received an overissuance of coupons without any

member of the household being found ineligible to participate in

the program under section 2015(b)(1) of this title and a State

agency elects to reduce the allotment of the household under

paragraph (1)(A), the State agency shall not reduce the monthly

allotment of the household under paragraph (1)(A) by an amount in

excess of the greater of -

(A) 10 percent of the monthly allotment of the household; or

(B) $10.

(4) Procedures

A State agency shall collect an overissuance of coupons issued

to a household under paragraph (1) in accordance with the

requirements established by the State agency for providing

notice, electing a means of payment, and establishing a time

schedule for payment.

(c) Food stamp intercept of unemployment benefits

(1) As used in this subsection, the term ''uncollected

overissuance'' means the amount of an overissuance of coupons, as

determined under subsection (b)(1) of this section, that has not

been recovered pursuant to subsection (b)(1) of this section.

(2) A State agency may determine on a periodic basis, from

information supplied pursuant to section 49b(b) of title 29,

whether an individual receiving compensation under the State's

unemployment compensation law (including amounts payable pursuant

to an agreement under a Federal unemployment compensation law) owes

an uncollected overissuance.

(3) A State agency may recover an uncollected overissuance -

(A) by -

(i) entering into an agreement with an individual described

in paragraph (2) under which specified amounts will be withheld

from unemployment compensation otherwise payable to the

individual; and

(ii) furnishing a copy of the agreement to the State agency

administering the unemployment compensation law; or

(B) in the absence of an agreement, by obtaining a writ, order,

summons, or other similar process in the nature of garnishment

from a court of competent jurisdiction to require the withholding

of amounts from the unemployment compensation.

(d) Recovery of overissuance of coupons

The amount of an overissuance of coupons, as determined under

subsection (b)(1) of this section, that has not been recovered

pursuant to such subsection may be recovered from Federal pay

(including salaries and pensions) as authorized by section 5514 of

title 5 or a Federal income tax refund as authorized by section

3720A of title 31.

-SOURCE-

(Pub. L. 88-525, Sec. 13, Aug. 31, 1964, 78 Stat. 707; Pub. L.

95-113, title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 974; Pub.

L. 97-35, title I, Sec. 113, Aug. 13, 1981, 95 Stat. 363; Pub. L.

97-253, title I, Sec. 177, 178, Sept. 8, 1982, 96 Stat. 781, 782;

Pub. L. 99-198, title XV, Sec. 1533-1535(a), Dec. 23, 1985, 99

Stat. 1583; Pub. L. 100-435, title VI, Sec. 601, 602, Sept. 19,

1988, 102 Stat. 1674; Pub. L. 101-624, title XVII, Sec. 1746, Nov.

28, 1990, 104 Stat. 3796; Pub. L. 102-237, title IX, Sec. 911, Dec.

13, 1991, 105 Stat. 1887; Pub. L. 103-66, title XIII, Sec.

13941(b), 13951(a), Aug. 10, 1993, 107 Stat. 676, 677; Pub. L.

104-193, title VIII, Sec. 844(a), Aug. 22, 1996, 110 Stat. 2332;

Pub. L. 107-171, title IV, Sec. 4118(b), May 13, 2002, 116 Stat.

321.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, inserted subsec. (a)

heading, redesignated par. (2) as (4) and inserted heading,

designated existing provisions of par. (1) as pars. (1) to (3) and

inserted headings, in par. (1) substituted ''Except in the case of

an at-risk amount required under section 2025(c)(1)(D)(i)(III) of

this title, the Secretary'' for ''The Secretary'' and struck out

''In determining whether to settle, adjust, compromise, or waive a

claim arising against a State agency pursuant to section 2025(c) of

this title, the Secretary shall review a State agency's plans for

new dollar investment in activities to improve program

administration in order to reduce payment error, and shall take the

State agency's plans for new dollar investment in such activities

into consideration as the Secretary considers appropriate.'' after

''section 2023 of this title.'', and in par. (2) substituted

''claim established under section 2025(c)(1) of this title'' for

''claim established under section 2025(c)(1)(C) of this title''.

1996 - Subsec. (b). Pub. L. 104-193, Sec. 844(a)(1), added

subsec. (b) and struck out former subsec. (b) which provided for

reduction of allotment for households with ineligible individuals

and collection by State agencies of claims against households

arising from overissuance of coupons.

Subsec. (d). Pub. L. 104-193, Sec. 844(a)(2), substituted '', as

determined under subsection (b)(1) of this section,'' for ''as

determined under subsection (b) of this section and except for

claims arising from an error of the State agency,'' and inserted

before period at end ''or a Federal income tax refund as authorized

by section 3720A of title 31''.

1993 - Subsec. (a)(1). Pub. L. 103-66, Sec. 13951(a), in fifth

sentence, struck out ''(after a determination on any request for a

waiver for good cause related to the claim has been made by the

Secretary)'' after ''30 days from the date on which the bill for

collection'' and in sixth sentence substituted ''1 year'' for ''2

years''.

Subsec. (d). Pub. L. 103-66, Sec. 13941(b), added subsec. (d).

1991 - Subsec. (b)(2)(A). Pub. L. 102-237 inserted before period

at end of first sentence '', except that the household shall be

given notice permitting it to elect another means of repayment and

given 10 days to make such an election before the State agency

commences action to reduce the household's monthly allotment''.

1990 - Subsec. (b)(1)(A). Pub. L. 101-624 substituted ''on the

date of receipt (or, if the date of receipt is not a business day,

on the next business day)'' for ''within thirty days''.

1988 - Subsec. (a)(1). Pub. L. 100-435, Sec. 601, inserted

provisions relating to review of State agency's plans for program

investment to reduce payment error when Secretary determines

whether to settle, etc., claims under section 2025(c) of this

title.

Pub. L. 100-435, Sec. 602, inserted provisions relating to

failure of State agency to pay a claim under section 2025(c)(1)(C)

of this title and interest with respect to unpaid portion of such

claims.

1985 - Subsec. (a). Pub. L. 99-198, Sec. 1533, designated

existing provisions as par. (1) and added par. (2).

Subsec. (b)(1)(B). Pub. L. 99-198, Sec. 1534, substituted

''shall'' for ''may'' and inserted '', unless the State agency

demonstrates to the satisfaction of the Secretary that such other

means are not cost effective''.

Subsec. (c). Pub. L. 99-198, Sec. 1535(a), added subsec. (c).

1982 - Subsec. (b)(1). Pub. L. 97-253, Sec. 177(a), 178,

redesignated existing provisions, which were formerly undesignated,

as subpar. (A), inserted ''within thirty days of a demand for an

election'' after ''make an election'', and added subpar. (B).

Subsec. (b)(2). Pub. L. 97-253, Sec. 177(b), redesignated

existing provisions, which had been undesignated, as subpar. (A)

and added subpar. (B).

1981 - Pub. L. 97-35 designated existing provisions as subsec.

(a), inserted provisions relating to power to waive claims, and the

power to otherwise reduce amounts, and added subsec. (b).

1977 - Pub. L. 95-113 substituted revised provisions relating to

the determination and disposition of claims for provisions relating

to administrative and judicial review which are now covered by

section 2023 of this title.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4118(e), May 13, 2002, 116 Stat.

321, provided that: ''The amendments made by this section (amending

this section and sections 2025, 2027, and 2031 of this title) shall

not apply 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.''

Amendment by 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 1993 AMENDMENT

Amendment by section 13941(b) of Pub. L. 103-66 effective, and to

be implemented beginning on, Oct. 1, 1993, and amendment by section

13951(a) of Pub. L. 103-66 effective Oct. 1, 1991, see section

13971(a), (b)(1)(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 Dec. 13, 1991, see section

1101(d)(4) of Pub. L. 102-237, set out as a note under section 1421

of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 effective Oct. 1, 1985, with respect

to claims under section 2025(c) of this title for quality control

review periods after such date, and provisions of this section that

relate to claims against State agencies and that were in effect for

any quality control review period or periods through fiscal year

1985 to remain in effect for claims arising with respect to such

periods, see section 701(b)(5)(B), (D)(i) of Pub. L. 100-435, set

out as a note under section 2012 of this title.

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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. 97-35 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 1977 AMENDMENT

Section 1301 of Pub. L. 95-113 provided that the amendment made

by that section is effective Oct. 1, 1977.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2014, 2020, 2023, 2025,

2027 of this title; title 42 section 503.

-CITE-

7 USC Sec. 2023 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2023. Administrative and judicial review; restoration of

rights

-STATUTE-

(a)(1) Whenever an application of a retail food store or

wholesale food concern to participate in the food stamp program is

denied pursuant to section 2018 of this title, or a retail food

store or wholesale food concern is disqualified or subjected to a

civil money penalty under the provisions of section 2021 of this

title, or a retail food store or wholesale food concern forfeits a

bond under section 2021(d) of this title, or all or part of any

claim of a retail food store or wholesale food concern is denied

under the provisions of section 2022 of this title, or a claim

against a State agency is stated pursuant to the provisions of

section 2022 of this title, notice of such administrative action

shall be issued to the retail food store, wholesale food concern,

or State agency involved.

(2) Delivery of notices. - A notice under paragraph (1) shall be

delivered by any form of delivery that the Secretary determines

will provide evidence of the delivery.

(3) If such store, concern, or State agency is aggrieved by such

action, it may, in accordance with regulations promulgated under

this chapter, within ten days of the date of delivery of such

notice, file a written request for an opportunity to submit

information in support of its position to such person or persons as

the regulations may designate.

(4) If such a request is not made or if such store, concern, or

State agency fails to submit information in support of its position

after filing a request, the administrative determination shall be

final.

(5) If such request is made by such store, concern, or State

agency, such information as may be submitted by the store, concern,

or State agency, as well as such other information as may be

available, shall be reviewed by the person or persons designated by

the Secretary, who shall, subject to the right of judicial review

hereinafter provided, make a determination which shall be final and

which shall take effect thirty days after the date of the delivery

or service of such final notice of determination.

(6) Determinations regarding claims made pursuant to section

2025(c) of this title (including determinations as to whether there

is good cause for not imposing all or a portion of the penalty)

shall be made on the record after opportunity for an agency hearing

in accordance with section 556 and 557 of title 5 in which one or

more administrative law judges appointed pursuant to section 3105

of such title shall preside over the taking of evidence.

(7) Such judges shall have authority to issue and enforce

subpoenas in the manner prescribed in sections (FOOTNOTE 1) 499m(c)

and (d) of this title and to appoint expert witnesses under the

provisions of Rule 706 of the Federal Rules of Evidence.

(FOOTNOTE 1) So in original. Probably should be ''section''.

(8) The Secretary may not limit the authority of such judges

presiding over determinations regarding claims made pursuant to

section 2025(c) of this title.

(9) The Secretary shall provide a summary procedure for

determinations regarding claims made pursuant to section 2025(c) of

this title in amounts less than $50,000.

(10) Such summary procedure need not include an oral hearing.

(11) On a petition by the State agency or sua sponte, the

Secretary may permit the full administrative review procedure to be

used in lieu of such summary review procedure for a claim of less

than $50,000.

(12) Subject to the right of judicial review hereinafter

provided, a determination made by an administrative law judge

regarding a claim made pursuant to section 2025(c) of this title

shall be final and shall take effect thirty days after the date of

the delivery or service of final notice of such determination.

(13) If the store, concern, or State agency feels aggrieved by

such final determination, it may obtain judicial review thereof by

filing a complaint against the United States in the United States

court for the district in which it resides or is engaged in

business, or, in the case of a retail food store or wholesale food

concern, in any court of record of the State having competent

jurisdiction, within thirty days after the date of delivery or

service of the final notice of determination upon it, requesting

the court to set aside such determination.

(14) The copy of the summons and complaint required to be

delivered to the official or agency whose order is being attacked

shall be sent to the Secretary or such person or persons as the

Secretary may designate to receive service of process.

(15) The suit in the United States district court or State court

shall be a trial de novo by the court in which the court shall

determine the validity of the questioned administrative action in

issue, except that judicial review of determinations regarding

claims made pursuant to section 2025(c) of this title shall be a

review on the administrative record.

(16) If the court determines that such administrative action is

invalid, it shall enter such judgment or order as it determines is

in accordance with the law and the evidence.

(17) During the pendency of such judicial review, or any appeal

therefrom, the administrative action under review shall be and

remain in full force and effect, unless on application to the court

on not less than ten days' notice, and after hearing thereon and a

consideration by the court of the applicant's likelihood of

prevailing on the merits and of irreparable injury, the court

temporarily stays such administrative action pending disposition of

such trial or appeal.

(18) Suspension of stores pending review. - Notwithstanding any

other provision of this subsection, any permanent disqualification

of a retail food store or wholesale food concern under paragraph

(3) or (4) of section 2021(b) of this title shall be effective from

the date of receipt of the notice of disqualification. If the

disqualification is reversed through administrative or judicial

review, the Secretary shall not be liable for the value of any

sales lost during the disqualification period.

(b) In any judicial action arising under this chapter, any food

stamp allotments found to have been wrongfully withheld shall be

restored only for periods of not more than one year prior to the

date of the commencement of such action, or in the case of an

action seeking review of a final State agency determination, not

more than one year prior to the date of the filing of a request

with the State for the restoration of such allotments or, in either

case, not more than one year prior to the date the State agency is

notified or otherwise discovers the possible loss to a household.

-SOURCE-

(Pub. L. 88-525, Sec. 14, Aug. 31, 1964, 78 Stat. 708; Pub. L.

91-671, Sec. 7, Jan. 11, 1971, 84 Stat. 2052; Pub. L. 92-603, title

IV, Sec. 411(f), Oct. 30, 1972, 86 Stat. 1492; Pub. L. 95-113,

title XIII, Sec. 1301, Sept. 29, 1977, 91 Stat. 974; Pub. L. 97-98,

title XIII, Sec. 1320(b), Dec. 22, 1981, 95 Stat. 1286; Pub. L.

97-253, title I, Sec. 176(b), Sept. 8, 1982, 96 Stat. 781; Pub. L.

99-198, title XV, Sec. 1536, Dec. 23, 1985, 99 Stat. 1585; Pub. L.

100-435, title VI, Sec. 603, Sept. 19, 1988, 102 Stat. 1674; Pub.

L. 103-66, title XIII, Sec. 13951(b), Aug. 10, 1993, 107 Stat. 678;

Pub. L. 104-193, title VIII, Sec. 845, Aug. 22, 1996, 110 Stat.

2333; Pub. L. 107-171, title IV, Sec. 4117(a), May 13, 2002, 116

Stat. 316.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Evidence, referred to in subsec. (a)(7), are

set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(2). Pub. L. 107-171 added heading and text of

par. (2) and struck out former par. (2) which read as follows:

''Such notice shall be delivered by certified mail or personal

service.''

1996 - Subsec. (a). Pub. L. 104-193 designated first through

seventeenth sentences as pars. (1) to (17), respectively, and added

par. (18).

1993 - Subsec. (a). Pub. L. 103-66 inserted ''(including

determinations as to whether there is good cause for not imposing

all or a portion of the penalty)'' after ''Determinations regarding

claims made pursuant to section 2025(c) of this title'' in sixth

sentence and struck out at end ''Notwithstanding the administrative

or judicial review procedures set forth in this subsection,

determinations by the Secretary concerning whether a State agency

had good cause for its failure to meet error rate tolerance levels

established under section 2025(c) of this title are final.''

1988 - Subsec. (a). Pub. L. 100-435 inserted provisions relating

to judicial review and determinations regarding excessive payment

error rate claims pursuant to section 2025(c) of this title.

1985 - Subsec. (a). Pub. L. 99-198 substituted ''on application''

for ''an application'' and ''consideration by the court of the

applicant's likelihood of prevailing on the merits and of

irreparable injury'' for ''showing of irreparable injury''.

1982 - Subsec. (a). Pub. L. 97-253 substituted ''section 2021 of

this title, or a retail food store or wholesale food concern

forfeits a bond under section 2021(d) of this title,'' for

''section 2021 of this title,''.

1981 - Pub. L. 97-98 designated existing provision as subsec. (a)

and added subsec. (b).

1977 - Pub. L. 95-113 substituted revised provisions for

administrative and judicial review for provisions relating to

violations and enforcement which are now covered by section 2024 of

this title.

1972 - Subsec. (e). Pub. L. 92-603 struck out subsec. (e) which

provided that no person be charged with violation of this chapter

or any other law on the basis of statements or information

contained in affidavits filed under section 2019(c) of this title,

except for fraud.

1971 - Subsec. (a). Pub. L. 91-671, Sec. 7(a), provided for

purchase of coupons.

Subsec. (b). Pub. L. 91-671, Sec. 7(a), included alteration as an

offense and made authorization to purchase cards the subject matter

of the enumerated offenses.

Subsec. (e). Pub. L. 91-671, Sec. 7(b), added subsec. (e).

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4117(b), May 13, 2002, 116 Stat.

316, provided that: ''The amendment made by this section (amending

this section) takes effect on the date of enactment of this Act

(May 13, 2002).''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Oct. 1, 1991, see section

13971(b)(1)(A) of Pub. L. 103-66, set out as a note under section

2025 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 effective Oct. 1, 1985, with respect

to claims under section 2025(c) of this title for quality control

review periods after such date, except as otherwise provided, see

section 701(b)(5)(C), (D) of Pub. L. 100-435, set out as a note

under section 2012 of this title.

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

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.

EFFECTIVE DATE OF 1972 AMENDMENT

Amendment by Pub. L. 92-603 effective Jan. 1, 1973, see section

411(h) of Pub. L. 92-603, set out as a note under section 2012 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2018, 2020, 2021, 2022,

2025 of this title.

-CITE-

7 USC Sec. 2024 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2024. Violations and enforcement

-STATUTE-

(a) Coupon redemption

Notwithstanding any other provision of this chapter, the

Secretary may provide for the issuance or presentment for

redemption of coupons to such person or persons, and at such times

and in such manner, as the Secretary deems necessary or appropriate

to protect the interests of the United States or to ensure

enforcement of the provisions of this chapter or the regulations

issued pursuant to this chapter.

(b) Unauthorized use, transfer, acquisition, alteration, or

possession of coupons or authorization cards; restitution by

convicted individuals

(1) Subject to the provisions of paragraph (2) of this

subsection, whoever knowingly uses, transfers, acquires, alters, or

possesses coupons, authorization cards, or access devices in any

manner contrary to this chapter or the regulations issued pursuant

to this chapter shall, if such coupons, authorization cards, or

access devices are of a value of $5,000 or more, be guilty of a

felony and shall be fined not more than $250,000 or imprisoned for

not more than twenty years, or both, and shall, if such coupons or

authorization cards are of a value of $100 or more, but less than

$5,000, or if the item used, transferred, acquired, altered, or

possessed is an access device that has a value of $100 or more, but

less than $5,000, be guilty of a felony and shall, upon the first

conviction thereof, be fined not more than $10,000 or imprisoned

for not more than five years, or both, and, upon the second and any

subsequent conviction thereof, shall be imprisoned for not less

than six months nor more than five years and may also be fined not

more than $10,000 or, if such coupons or authorization cards are of

a value of less than $100, or if the item used, transferred,

acquired, altered, or processed is an access device that has a

value of less than $100, shall be guilty of a misdemeanor, and,

upon the first conviction thereof, shall be fined not more than

$1,000 or imprisoned for not more than one year, or both, and upon

the second and any subsequent conviction thereof, shall be

imprisoned for not more than one year and may also be fined not

more than $1,000. In addition to such penalties, any person

convicted of a felony or misdemeanor violation under this

subsection may be suspended by the court from participation in the

food stamp program for an additional period of up to eighteen

months consecutive to that period of suspension mandated by section

2015(b)(1) of this title.

(2) In the case of any individual convicted of an offense under

paragraph (1) of this subsection, the court may permit such

individual to perform work approved by the court for the purpose of

providing restitution for losses incurred by the United States and

the State agency as a result of the offense for which such

individual was convicted. If the court permits such individual to

perform such work and such individual agrees thereto, the court

shall withhold the imposition of the sentence on the condition that

such individual perform the assigned work. Upon the successful

completion of the assigned work the court may suspend such

sentence.

(c) Presentation for payment or redemption of coupons that have

been illegally received, transferred, or used

Whoever presents, or causes to be presented, coupons for payment

or redemption of the value of $100 or more, knowing the same to

have been received, transferred, or used in any manner in violation

of the provisions of this chapter or the regulations issued

pursuant to this chapter, shall be guilty of a felony and, upon the

first conviction thereof, shall be fined not more than $20,000 or

imprisoned for not more than five years, or both, and, upon the

second and any subsequent conviction thereof, shall be imprisoned

for not less than one year nor more than five years and may also be

fined not more than $20,000, or, if such coupons are of a value of

less than $100, shall be guilty of a misdemeanor and, upon the

first conviction thereof, shall be fined not more than $1,000 or

imprisoned for not more than one year, or both, and, upon the

second and any subsequent conviction thereof, shall be imprisoned

for not more than one year and may also be fined not more than

$1,000. In addition to such penalties, any person convicted of a

felony or misdemeanor violation under this subsection may be

suspended by the court from participation in the food stamp program

for an additional period of up to eighteen months consecutive to

that period of suspension mandated by section 2015(b)(1) of this

title.

(d) Coupons as obligations of the United States

Coupons issued pursuant to this chapter shall be deemed to be

obligations of the United States within the meaning of section 8 of

title 18.

(e) Failure to provide monthly operations report; violation of

regulations; delivery and control procedures

Any coupon issuer or any officer, employee, or agent thereof

convicted of failing to provide the report required under section

2016(d) of this title or of violating the regulations issued under

section 2016(d) and (e) of this title shall be fined not more than

$1,000 or imprisoned for not more than one year, or both.

(f) Liability for financial losses involved in acceptance, storage,

and issuance of coupons

Any coupon issuer or any officer, employee, or agent thereof

convicted of knowingly providing false information in the report

required under section 2016(d) of this title shall be fined not

more than $10,000 or imprisoned not more than five years, or both.

(g) Forfeiture of property involved in illegal food stamp

transactions

The Secretary may subject to forfeiture and denial of property

rights any nonfood items, moneys, negotiable instruments,

securities, or other things of value that are furnished by any

person in exchange for coupons, authorization cards or access

devices, or anything of value obtained by use of an access device,

in any manner contrary to this chapter or the regulations issued

under this chapter. Any forfeiture and disposal of property

forfeited under this subsection shall be conducted in accordance

with procedures contained in regulations issued by the Secretary.

(h) Criminal forfeiture

(1) In general

In imposing a sentence on a person convicted of an offense in

violation of subsection (b) or (c) of this section, a court shall

order, in addition to any other sentence imposed under this

section, that the person forfeit to the United States all

property described in paragraph (2).

(2) Property subject to forfeiture

All property, real and personal, used in a transaction or

attempted transaction, to commit, or to facilitate the commission

of, a violation (other than a misdemeanor) of subsection (b) or

(c) of this section, or proceeds traceable to a violation of

subsection (b) or (c) of this section, shall be subject to

forfeiture to the United States under paragraph (1).

(3) Interest of owner

No interest in property shall be forfeited under this

subsection as the result of any act or omission established by

the owner of the interest to have been committed or omitted

without the knowledge or consent of the owner.

(4) Proceeds

The proceeds from any sale of forfeited property and any monies

forfeited under this subsection shall be used -

(A) first, to reimburse the Department of Justice for the

costs incurred by the Department to initiate and complete the

forfeiture proceeding;

(B) second, to reimburse the Department of Agriculture Office

of Inspector General for any costs the Office incurred in the

law enforcement effort resulting in the forfeiture;

(C) third, to reimburse any Federal or State law enforcement

agency for any costs incurred in the law enforcement effort

resulting in the forfeiture; and

(D) fourth, by the Secretary to carry out the approval,

reauthorization, and compliance investigations of retail stores

and wholesale food concerns under section 2018 of this title.

-SOURCE-

(Pub. L. 88-525, Sec. 15, Aug. 31, 1964, 78 Stat. 708; Pub. L.

91-671, Sec. 8, Jan. 11, 1971, 84 Stat. 2052; Pub. L. 93-347, Sec.

2, July 12, 1974, 88 Stat. 341; Pub. L. 95-113, title XIII, Sec.

1301, Sept. 29, 1977, 91 Stat. 975; Pub. L. 96-249, title I, Sec.

124, May 26, 1980, 94 Stat. 363; Pub. L. 97-98, title XIII, Sec.

1324, Dec. 22, 1981, 95 Stat. 1288; Pub. L. 101-624, title XVII,

Sec. 1747(a), (c), 1748, 1749, Nov. 28, 1990, 104 Stat. 3796, 3797;

Pub. L. 104-193, title VIII, Sec. 846, Aug. 22, 1996, 110 Stat.

2334.)

-MISC1-

AMENDMENTS

1996 - Subsec. (g). Pub. L. 104-193, Sec. 846(a), struck out ''or

intended to be furnished'' after ''that are furnished''.

Subsec. (h). Pub. L. 104-193, Sec. 846(b), added subsec. (h).

1990 - Subsec. (b)(1). Pub. L. 101-624, Sec. 1748, inserted ''if

such coupons, authorization cards, or access devices are of a value

of $5,000 or more, be guilty of a felony and shall be fined not

more than $250,000 or imprisoned for not more than twenty years, or

both, and shall,'' after ''chapter shall'', and inserted ''but less

than $5,000,'' after ''$100 or more'' in two places.

Pub. L. 101-624, Sec. 1747(a), substituted '', authorization

cards, or access devices in any manner contrary to'' for ''or

authorization cards in any manner not authorized by'', and inserted

''or if the item used, transferred, acquired, altered, or possessed

is an access device that has a value of $100 or more,'' after ''a

value of $100 or more,'', and inserted ''or if the item used,

transferred, acquired, altered, or processed is an access device

that has a value of less than $100,'' after ''a value of less than

$100,''.

Subsec. (c). Pub. L. 101-624, Sec. 1749, substituted ''$20,000''

for ''$10,000'' in two places.

Subsec. (g). Pub. L. 101-624, Sec. 1747(c), substituted '',

authorization cards or access devices, or anything of value

obtained by use of an access device, in any manner contrary to''

for ''or authorization cards in any manner not authorized by''.

1981 - Subsec. (b). Pub. L. 97-98 designated existing provision

as par. (1), inserted provisions specifying the minimum and maximum

sentences for the second and any subsequent convictions for

felonies and misdemeanors and provision authorizing the court to

suspend a person convicted of a felony or misdemeanor under this

subsection from participation in the food stamp program for an

additional period of up to eighteen months consecutive to that

period of suspension mandated by section 2015(b)(1) of this title,

and added par. (2).

Subsec. (c). Pub. L. 97-98 inserted provisions specifying the

minimum and maximum sentences for the second and any subsequent

convictions for felonies and misdemeanors and provision authorizing

the court to suspend a person convicted of a felony or misdemeanor

under this subsection from participation in the food stamp program

for an additional period of up to eighteen months consecutive to

that period of suspension mandated by section 2015(b)(1) of this

title.

1980 - Subsec. (g). Pub. L. 96-249 added subsec. (g).

1977 - Pub. L. 95-113 substituted revised provisions relating to

violations and enforcement for provisions relating to the State

financing of administrative costs which are now covered by section

2025 of this title.

1974 - Pub. L. 93-347 authorized the Secretary of Agriculture to

pay each State agency 50 percent of all the State agency's costs in

administering the Food Stamp Program and required that each State

make reports from time to time at the request of the Secretary of

Agriculture on the effectiveness of the administration of the Food

Stamp Program in that State.

1971 - Subsec. (b). Pub. L. 91-671 struck out ''cooperate with

State agencies in the certification of households which are not

receiving any type of public assistance so as to insure the

effective certification of such households in accordance with the

eligibility standards approved under the provisions of section 2019

of this title. Such cooperation shall include payments to State

agencies for part of the cost they incur in the certification of

such households'' after ''is authorized to'', and in providing for

payments to State agencies, increased percentage from 50 to 62 1/2,

and substituted cl. (1) provisions for travel and travel-related

cost of personnel for such time as they are employed in taking the

action required under section 2019(e) of this title and in making

certification determinations for households other than those which

consist solely of recipients of welfare assistance for prior cl.

(1) for direct salary costs of personnel used to make interviews

and such postinterview investigations as are necessary to certify

eligibility of such households, for periods of employment, in

certifying the eligibility of such households; cl. (2) respecting

direct salary, travel, and travel-related costs (including such

fringe benefits as are normally paid) of personnel for time of

employment as hearing officials under section 2019(e) of this title

for prior cl. (2) respecting travel and related costs incurred by

personnel in postinterview field investigations of households, and

deleted cl. (3) for an amount not to exceed 25 per centum of the

costs computed under former cls. (1) and (2).

EFFECTIVE DATE OF 1981 AMENDMENT

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.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2015, 2016 of this title;

title 18 section 1956; title 26 section 6109; title 42 section 405.

-CITE-

7 USC Sec. 2025 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2025. Administrative cost-sharing and quality control

-STATUTE-

(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.

(FOOTNOTE 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.

(FOOTNOTE 1) So in original. The period probably should not

appear.

(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.

-SOURCE-

(Pub. L. 88-525, Sec. 16, Aug. 31, 1964, 78 Stat. 709; Pub. L.

90-91 Sec. 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,

Sec. 4, 6, Aug. 14, 1979, 93 Stat. 391; Pub. L. 96-249, title I,

Sec. 121, 125, 126, 128, 129, May 26, 1980, 94 Stat. 363, 364, 367;

Pub. L. 97-35, title I, Sec. 111(b), 114, Aug. 13, 1981, 95 Stat.

362, 363; Pub. L. 97-98, title XIII, Sec. 1325-1327, Dec. 22, 1981,

95 Stat. 1289; Pub. L. 97-253, title I, Sec. 179, 180(a),

189(b)(3), (c), Sept. 8, 1982, 96 Stat. 782, 787; Pub. L. 99-198,

title XV, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 4118(a), 4119(a),

4120(a), 4121(a), (d), 4122(a), May 13, 2002, 116 Stat. 316, 321,

323, 324.)

-REFTEXT-

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.

-COD-

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.

-MISC3-

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, Sec. 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, Sec. 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, Sec. 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, Sec. 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 (Sec.

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).''

-SECREF-

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.

-CITE-

7 USC Sec. 2026 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2026. Research, demonstration, and evaluations

-STATUTE-

(a) Contracts or grants; issuance of aggregate allotments

(1) The Secretary may enter into contracts with or make grants to

public or private organizations or agencies under this section to

undertake research that will help improve the administration and

effectiveness of the food stamp program in delivering

nutrition-related benefits. The waiver authority of the Secretary

under subsection (b) of this section shall extend to all contracts

and grants under this section.

(2) The Secretary may, on application, permit not more than two

State agencies to establish procedures that allow households whose

monthly food stamp benefits do not exceed $20, at their option, to

receive, in lieu of their food stamp benefits for the initial

period under section 2017 of this title and their regular allotment

in following months, and at intervals of up to 3 months thereafter,

aggregate allotments not to exceed $60 and covering not more than 3

months' benefits. The allotments shall be provided in accordance

with paragraphs (3) and (9) of section 2020(e) of this title

(except that no household shall begin to receive combined

allotments under this section until it has complied with all

applicable verification requirements of section 2020(e)(3) of this

title) and (with respect to the first aggregate allotment so

issued) within 40 days of the last coupon issuance.

(b) Pilot projects

(1)(A) The Secretary may conduct on a trial basis, in one or more

areas of the United States, pilot or experimental projects designed

to test program changes that might increase the efficiency of the

food stamp program and improve the delivery of food stamp benefits

to eligible households, and may waive any requirement of this

chapter to the extent necessary for the project to be conducted.

(B) Project requirements. -

(i) Program goal. - The Secretary may not conduct a project

under subparagraph (A) unless -

(I) the project is consistent with the goal of the food stamp

program of providing food assistance to raise levels of

nutrition among low-income individuals; and

(II) the project includes an evaluation to determine the

effects of the project.

(ii) Permissible projects. - The Secretary may conduct a

project under subparagraph (A) to -

(I) improve program administration;

(II) increase the self-sufficiency of food stamp recipients;

(III) test innovative welfare reform strategies; or

(IV) allow greater conformity with the rules of other

programs than would be allowed but for this paragraph.

(iii) Restrictions on permissible projects. - If the Secretary

finds that a project under subparagraph (A) would reduce benefits

by more than 20 percent for more than 5 percent of households in

the area subject to the project (not including any household

whose benefits are reduced due to a failure to comply with work

or other conduct requirements), the project -

(I) may not include more than 15 percent of the State's food

stamp households; and

(II) shall continue for not more than 5 years after the date

of implementation, unless the Secretary approves an extension

requested by the State agency at any time.

(iv) Impermissible projects. - The Secretary may not conduct a

project under subparagraph (A) that -

(I) involves the payment of the value of an allotment in the

form of cash, unless the project was approved prior to August

22, 1996;

(II) has the effect of substantially transferring funds made

available under this chapter to services or benefits provided

primarily through another public assistance program, or using

the funds for any purpose other than the purchase of food,

program administration, or an employment or training program;

(III) is inconsistent with -

(aa) paragraphs (4) and (5) of section 2012(i) of this

title;

(bb) the last sentence of section 2014(a) of this title,

insofar as a waiver denies assistance to an otherwise

eligible household or individual if the household or

individual has not failed to comply with any work,

behavioral, or other conduct requirement under this or

another program;

(cc) section 2014(c)(2) of this title;

(dd) paragraph (2)(B), (4)(F)(i), or (4)(K) of section

2015(d) of this title;

(ee) section 2017(b) of this title;

(ff) section 2020(e)(2)(B) of this title;

(gg) the time standard under section 2020(e)(3) of this

title;

(hh) subsection (a), (c), (g), (h)(2), or (h)(3) of section

2025 of this title;

(ii) this paragraph; or

(jj) subsection (a)(1) or (g)(1) of section 2029 of this

title;

(IV) modifies the operation of section 2014 of this title so

as to have the effect of -

(aa) increasing the shelter deduction to households with no

out-of-pocket housing costs or housing costs that consume a

low percentage of the household's income; or

(bb) absolving a State from acting with reasonable

promptness on substantial reported changes in income or

household size (except that this subclause shall not apply

with regard to changes related to food stamp deductions);

(V) is not limited to a specific time period;

(VI) waives a provision of section 2035 of this title; or

(VII) waives a provision of section 2016(j) of this title.

(v) Additional included projects. - A pilot or experimental

project may include projects involving the payment of the value

of allotments or the average value of allotments by household

size in the form of cash to eligible households all of whose

members are age sixty-five or over or any of whose members are

entitled to supplemental security income benefits under title XVI

of the Social Security Act (42 U.S.C. 1381 et seq.) or are

receiving assistance under a State program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.), the

use of countersigned food coupons or similar identification

mechanisms that do not invade a household's privacy, and the use

of food checks or other voucher-type forms in place of food

coupons.

(vi) Cash payment pilot projects. - Any pilot or experimental

project implemented under this paragraph and operating as of

October 1, 1981, involving the payment of the value of allotments

in the form of cash to eligible households all of whose members

are either age sixty-five or over or entitled to supplemental

security income benefits under title XVI of the Social Security

Act shall be continued through October 1, 2007, if the State so

requests.

(C)(i) No waiver or demonstration program shall be approved under

this chapter after November 28, 1990, unless -

(I) any household whose food assistance is issued in a form

other than coupons has its allotment increased to the extent

necessary to compensate for any State or local sales tax that may

be collected in all or part of the area covered by the

demonstration project, the tax on purchases of food by any such

household is waived, or the Secretary determines on the basis of

information provided by the State agency that the increase is

unnecessary on the basis of the limited nature of the items

subject to the State or local sales tax; and

(II) the State agency conducting the demonstration project pays

the cost of any increased allotments.

(ii) Clause (i) shall not apply if a waiver or demonstration

project already provides a household with assistance that exceeds

that which the household would otherwise be eligible to receive by

more than the estimated amount of any sales tax on the purchases of

food that would be collected from the household in the project area

in which the household resides.

(D) Response to waivers. -

(i) Response. - Not later than 60 days after the date of

receiving a request for a waiver under subparagraph (A), the

Secretary shall provide a response that -

(I) approves the waiver request;

(II) denies the waiver request and describes any modification

needed for approval of the waiver request;

(III) denies the waiver request and describes the grounds for

the denial; or

(IV) requests clarification of the waiver request.

(ii) Failure to respond. - If the Secretary does not provide a

response in accordance with clause (i), the waiver shall be

considered approved, unless the approval is specifically

prohibited by this chapter.

(iii) Notice of denial. - On denial of a waiver request under

clause (i)(III), the Secretary shall provide a copy of the waiver

request and a description of the reasons for the denial to the

Committee on Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the Senate.

(2) The Secretary shall, jointly with the Secretary of Labor,

implement two pilot projects involving the performance of work in

return for food stamp benefits in each of the seven administrative

regions of the Food and Nutrition Service of the Department of

Agriculture, such projects to be (A) appropriately divided in each

region between locations that are urban and rural in

characteristics and among locations selected to provide a

representative cross-section of political subdivisions in the

States and (B) submitted for approval prior to project

implementation, together with the names of the agencies or

organizations that will be engaged in such projects, to the

Committee on Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the Senate.

Under such pilot projects, any person who is subject to the work

registration requirements pursuant to section 2015(d) of this

title, and is a member of a household that does not have earned

income equal to or exceeding the allotment to which the household

is otherwise entitled pursuant to section 2017(a) of this title,

shall be ineligible to participate in the food stamp program as a

member of any household during any month in which such person

refuses, after not being offered employment in the private sector

of the economy for more than thirty days (ten days in at least one

pilot project area designated by the Secretary) after the initial

registration for employment referred to in section 2015(d)(1)(A)(i)

of this title, to accept an offer of employment from a political

subdivision or provider pursuant to a program carried out under

title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et

seq.), for which employment compensation shall be paid in the form

of the allotment to which the household is otherwise entitled

pursuant to section 2017(a) of this title, with each hour of

employment entitling the household to a portion of the allotment

equal in value to 100 per centum of the Federal minimum hourly rate

under the Fair Labor Standards Act of 1938, as amended (29 U.S.C.

206(a)(1)); which employment shall not, together with any other

hours worked in any other capacity by such person exceed forty

hours a week; and which employment shall not be used by the

employer to fill a job opening created by the action of such

employer in laying off or terminating the employment of any regular

employee not supported under this paragraph in anticipation of

filling the vacancy so created by hiring an employee or employees

to be supported under this paragraph, if all of the jobs supported

under the program have been made available to participants in the

program before the political subdivision or provider providing the

jobs extends an offer of employment under this paragraph, and if

the political subdivision or provider, in employing the person,

complies with the requirements of Federal law that relate to the

program. The Secretary and the Secretary of Labor shall jointly

issue reports to the appropriate committees of Congress on the

progress of such pilot projects no later than six and twelve months

following September 29, 1977, shall issue interim reports no later

than October 1, 1979, October 1, 1980, and March 30, 1981, shall

issue a final report describing the results of such pilot projects

based upon their operation from their commencement through the

fiscal year ending September 30, 1981, and shall pay to the

agencies or organizations operating such pilot projects 50 per

centum of all administrative costs involved in such operation.

(3)(A) The Secretary may conduct demonstration projects to test

improved consistency or coordination between the food stamp

employment and training program and the Job Opportunities and Basic

Skills program under title IV of the Social Security Act (42 U.S.C.

601 et seq.).

(B) Notwithstanding paragraph (1), the Secretary may, as part of

a project authorized under this paragraph, waive requirements under

section 2015(d) of this title to permit a State to operate an

employment and training program for food stamp recipients on the

same terms and conditions under which the State operates its Job

Opportunities and Basic Skills program for recipients of aid to

families with dependent children under part F (FOOTNOTE 1) of title

IV of the Social Security Act (42 U.S.C. 681 et seq.). Any work

experience program conducted as part of the project shall be

conducted in conformity with section 482(f) (FOOTNOTE 1) of such

Act (42 U.S.C. 682(f)).

(FOOTNOTE 1) See References in Text note below.

(C) A State seeking such a waiver shall provide assurances that

the resulting employment and training program shall meet the

requirements of subsections (a)(19) and (g) of section 402

(FOOTNOTE 1) of such Act (42 U.S.C. 602) (but not including the

provision of transitional benefits under clauses (ii) through (vii)

of section 402(g)(1)(A) (FOOTNOTE 1) ) and sections 481 through 487

(FOOTNOTE 1) of such Act (42 U.S.C. 681 through 687). Each

reference to ''aid to families with dependent children'' in such

sections shall be deemed to be a reference to food stamps for

purposes of the demonstration project.

(D) Notwithstanding the other provisions of this paragraph,

participation in an employment and training activity in which food

stamp benefits are converted to cash shall occur only with the

consent of the participant.

(E) For the purposes of any project conducted under this

paragraph, the provisions of this chapter affecting the rights of

recipients may be waived to the extent necessary to conform to the

provisions of section 402, and sections 481 through 487, (FOOTNOTE

1) of the Social Security Act.

(F) At least 60 days prior to granting final approval of a

project under this paragraph, the Secretary shall publish the terms

and conditions for any demonstration project conducted under the

paragraph for public comment in the Federal Register and shall

notify the Committee on Agriculture of the House of Representatives

and the Committee on Agriculture, Nutrition, and Forestry of the

Senate.

(G) Waivers may be granted under this paragraph to conduct

projects at any one time in a total of up to 60 project areas (or

parts of project areas), as such areas are defined in regulations

in effect on January 1, 1990.

(H) A waiver for a change in program rules may be granted under

this paragraph only for a demonstration project that has been

approved by the Secretary, that will be evaluated according to

criteria prescribed by the Secretary, and that will be in operation

for no more than 4 years.

(I) The Secretary may not grant a waiver under this paragraph on

or after August 22, 1996. Any reference in this paragraph to a

provision of title IV of the Social Security Act (42 U.S.C. 601 et

seq.) shall be deemed to be a reference to such provision as in

effect on the day before August 22, 1996.

(c) Evaluation measures; pilot programs for nutritional monitoring

The Secretary shall develop and implement measures for

evaluating, on an annual or more frequent basis, the effectiveness

of the food stamp program in achieving its stated objectives,

including, but not limited to, the program's impact upon the

nutritional and economic status of participating households, the

program's impact upon all sectors of the agricultural economy,

including farmers and ranchers, as well as retail food stores, and

the program's relative fairness to households of different income

levels, different age composition, different size, and different

regions of residence. Further, the Secretary shall, by way of

making contracts with or grants to public or private organizations

or agencies, implement pilot programs to test various means of

measuring on a continuing basis the nutritional status of low

income people, with special emphasis on people who are eligible for

food stamps, in order to develop minimum common criteria and

methods for systematic nutrition monitoring that could be applied

on a nationwide basis. The locations of the pilot programs shall

be selected to provide a representative geographic and demographic

cross-section of political subdivisions that reflect natural usage

patterns of health and nutritional services and that contain high

proportions of low income people. The Secretary shall report on

the progress of these pilot programs on an annual basis commencing

on July 1, 1982, to the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate, together with such recommendations as the

Secretary deems appropriate.

(d) Employment initiatives program

(1) Election to participate

(A) In general

Subject to the other provisions of this subsection, a State

may elect to carry out an employment initiatives program under

this subsection.

(B) Requirement

A State shall be eligible to carry out an employment

initiatives program under this subsection only if not less than

50 percent of the households in the State that received food

stamp benefits during the summer of 1993 also received benefits

under a State program funded under part A of title IV of the

Social Security Act (42 U.S.C. 601 et seq.) during the summer

of 1993.

(2) Procedure

(A) In general

A State that has elected to carry out an employment

initiatives program under paragraph (1) may use amounts equal

to the food stamp allotments that would otherwise be issued to

a household under the food stamp program, but for the operation

of this subsection, to provide cash benefits in lieu of the

food stamp allotments to the household if the household is

eligible under paragraph (3).

(B) Payment

The Secretary shall pay to each State that has elected to

carry out an employment initiatives program under paragraph (1)

an amount equal to the value of the allotment that each

household participating in the program in the State would be

eligible to receive under this chapter but for the operation of

this subsection.

(C) Other provisions

For purposes of the food stamp program (other than this

subsection) -

(i) cash assistance under this subsection shall be

considered to be an allotment; and

(ii) each household receiving cash benefits under this

subsection shall not receive any other food stamp benefit

during the period for which the cash assistance is provided.

(D) Additional payments

Each State that has elected to carry out an employment

initiatives program under paragraph (1) shall -

(i) increase the cash benefits provided to each household

participating in the program in the State under this

subsection to compensate for any State or local sales tax

that may be collected on purchases of food by the household,

unless the Secretary determines on the basis of information

provided by the State that the increase is unnecessary on the

basis of the limited nature of the items subject to the State

or local sales tax; and

(ii) pay the cost of any increase in cash benefits required

by clause (i).

(3) Eligibility

A household shall be eligible to receive cash benefits under

paragraph (2) if an adult member of the household -

(A) has worked in unsubsidized employment for not less than

the preceding 90 days;

(B) has earned not less than $350 per month from the

employment referred to in subparagraph (A) for not less than

the preceding 90 days;

(C)(i) is receiving benefits under a State program funded

under part A of title IV of the Social Security Act (42 U.S.C.

601 et seq.); or

(ii) was receiving benefits under a State program funded

under part A of title IV of the Social Security Act (42 U.S.C.

601 et seq.) at the time the member first received cash

benefits under this subsection and is no longer eligible for

the State program because of earned income;

(D) is continuing to earn not less than $350 per month from

the employment referred to in subparagraph (A); and

(E) elects to receive cash benefits in lieu of food stamp

benefits under this subsection.

(4) Evaluation

A State that operates a program under this subsection for 2

years shall provide to the Secretary a written evaluation of the

impact of cash assistance under this subsection. The State

agency, with the concurrence of the Secretary, shall determine

the content of the evaluation.

(e) Study and report to Congressional committees of effect of

reduction of benefits

The Secretary shall conduct a study of the effects of reductions

made in benefits provided under this chapter pursuant to part 1 of

subtitle A of title I of the Omnibus Budget Reconciliation Act of

1981, the Food Stamp and Commodity Distribution Amendments of 1981,

the Food Stamp Act Amendments of 1982, and any other laws enacted

by the Ninety-seventh Congress which affect the food stamp

program. The study shall include a study of the effect of

retrospective accounting and periodic reporting procedures

established under such Acts, including the impact on benefit and

administrative costs and on error rates and the degree to which

eligible households are denied food stamp benefits for failure to

file complete periodic reports. 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 an

interim report on the results of such study no later than February

1, 1984, and a final report on the results of such study no later

than March 1, 1985.

(f) Demonstration projects for development and use of intelligent

computer benefit cards to pay food stamp benefits

In order to encourage States to plan, design, develop, and

implement a system for making food stamp benefits available through

the use of intelligent benefit cards or other automated or

electronic benefit delivery systems, the Secretary may conduct one

or more pilot or experimental projects, subject to the restrictions

imposed by subsection (b)(1) of this section and section 2016(g)(2)

of this title, designed to test whether the use of such cards or

systems can enhance the efficiency and effectiveness of program

operations while ensuring that individuals receive correct benefit

amounts on a timely basis. Intelligent benefit cards developed

under such a demonstration project shall contain information,

encoded on a computer chip embedded in a credit card medium,

including the eligibility of the individual and the amount of

benefits to which such individual is entitled. Any other automated

or electronic benefit delivery system developed under such a

demonstration project shall be able to use a plastic card to access

such information from a data file.

(g) Study of effectiveness of food stamp employment and training

program

In order to assess the effectiveness of the employment and

training programs established under section 2015(d) of this title

in placing individuals into the work force and withdrawing such

individuals from the food stamp program, the Secretary is

authorized to carry out studies comparing the pre- and post-program

labor force participation, wage rates, family income, level of

receipt of food stamp and other transfer payments, and other

relevant information, for samples of participants in such

employment and training programs as compared to the appropriate

control or comparison groups that did not participate in such

programs. Such studies shall, to the maximum extent possible -

(1) collect such data for up to 3 years after the individual

has completed the employment and training program; and

(2) yield results that can be generalized to the national

program as a whole.

The results of such studies and reports shall be considered in

developing or updating the performance standards required under

section 2015 of this title.

(h) Demonstration projects for vehicle exclusion limits

The Secretary shall conduct a sufficient number of demonstration

projects to evaluate the effects, in both rural and urban areas, of

including in financial resources under section 2014(g) of this

title the fair market value of licensed vehicles to the extent the

value of each vehicle exceeds $4,500, but excluding the value of -

(1) any licensed vehicle that is used to produce earned income,

necessary for transportation of an elderly or physically disabled

household member, or used as the household's home; and

(2) one licensed vehicle used to obtain, continue, or seek

employment (including travel to and from work), used to pursue

employment-related education or training, or used to secure food

or the benefits of the food stamp program.

(i) Testing resource accumulation

The Secretary shall conduct, under such terms and conditions as

the Secretary shall prescribe, for a period not to exceed 4 years,

projects to test allowing not more than 11,000 eligible households,

in the aggregate, to accumulate resources up to $10,000 each (which

shall be excluded from consideration as a resource) for later

expenditure for a purpose directly related to improving the

education, training, or employability (including self-employment)

of household members, for the purchase of a home for the household,

for a change of the household's residence, or for making major

repairs to the household's home.

(j) Demonstration projects directed at food coupon trafficking

The Secretary shall use up to $4,000,000 of the funds provided in

advance in appropriations Acts for projects authorized by this

section to conduct demonstration projects in which State or local

food stamp agencies test innovative ideas for working with State or

local law enforcement agencies to investigate and prosecute coupon

trafficking.

-SOURCE-

(Pub. L. 88-525, Sec. 17, as added Pub. L. 93-86, Sec. 3(n), Aug.

10, 1973, 87 Stat. 248; amended Pub. L. 95-113, title XIII, Sec.

1301, Sept. 29, 1977, 91 Stat. 977; Pub. L. 95-400, Sept. 30, 1978,

92 Stat. 856; Pub. L. 96-249, title I, Sec. 130-132(a), 133, May

26, 1980, 94 Stat. 367, 368; Pub. L. 97-98, title XIII, Sec.

1328-1330, Dec. 22, 1981, 95 Stat. 1289, 1290; Pub. L. 97-253,

title I, Sec. 152(c), 181, 182, 190(d), Sept. 8, 1982, 96 Stat.

776, 784, 785, 787; Pub. L. 99-114, Sec. 4, Oct. 1, 1985, 99 Stat.

488; Pub. L. 99-157, Sec. 2, Nov. 15, 1985, 99 Stat. 818; Pub. L.

99-182, Sec. 2, Dec. 13, 1985, 99 Stat. 1173; Pub. L. 99-198, title

XV, Sec. 1540, Dec. 23, 1985, 99 Stat. 1588; Pub. L. 100-435, title

V, Sec. 504, 505, Sept. 19, 1988, 102 Stat. 1673; Pub. L. 101-624,

title XVII, Sec. 1729(b), 1731, 1754-1759, Nov. 28, 1990, 104 Stat.

3790, 3798-3800, 3802; Pub. L. 102-237, title IX, Sec. 941(8), Dec.

13, 1991, 105 Stat. 1893; Pub. L. 103-66, title XIII, Sec. 13925,

Aug. 10, 1993, 107 Stat. 675; Pub. L. 103-225, title II, Sec. 204,

Mar. 25, 1994, 108 Stat. 109; Pub. L. 104-127, title IV, Sec.

401(c), (d), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 104-193, title

I, Sec. 109(d), title VIII, Sec. 815(b)(1), 850-852, 854(c)(2),

Aug. 22, 1996, 110 Stat. 2169, 2317, 2336-2338, 2342; Pub. L.

105-18, title VII, ((b)), June 12, 1997, 111 Stat. 217; Pub. L.

105-277, div. A, Sec. 101(f) (title VIII, Sec. 405(d)(2)(C),

(f)(2)(C)), Oct. 21, 1998, 112 Stat. 2681-337, 2681-418, 2681-429;

Pub. L. 107-171, title IV, Sec. 4112(b)(4), 4116(b), 4122(b),

4123(a), May 13, 2002, 116 Stat. 313, 316, 324.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (b)(1)(B)(v),

(vi), (3)(A), (B), (I) and (d)(1)(B), (3)(C), is act Aug. 14, 1935,

ch. 531, 49 Stat. 620, as amended. Title IV, part A of title IV,

and title XVI of the Act are classified generally to subchapter IV

(Sec. 601 et seq.), part A (Sec. 601 et seq.) of subchapter IV, and

subchapter XVI (Sec. 1381 et seq.), respectively, of chapter 7 of

Title 42, The Public Health and Welfare. Part F of title IV of the

Act was classified generally to part F (Sec. 681 et seq.) of

subchapter IV of chapter 7 of Title 42, prior to repeal by Pub. L.

104-193, title I, Sec. 108(e), Aug. 22, 1996, 110 Stat. 2167. For

complete classification of this Act to the Code, see section 1305

of Title 42 and Tables.

The Workforce Investment Act of 1998, referred to in subsec.

(b)(2), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as

amended. Title I of the Act is classified principally to chapter

30 (Sec. 2801 et seq.) of Title 29, Labor. For complete

classification of this Act to the Code, see Short Title note set

out under section 9201 of Title 20, Education, and Tables.

The Fair Labor Standards Act of 1938, as amended, referred to in

subsec. (b)(2), is act June 25, 1938, ch. 676, 52 Stat. 1060, as

amended, which is classified generally to chapter 8 (Sec. 201 et

seq.) of Title 29, Labor. For complete classification of this Act

to the Code, see section 201 of Title 29 and Tables.

Sections 481 to 487 of the Social Security Act, referred to in

subsec. (b)(3)(C), (E), were classified to section 681 to 687,

respectively, of Title 42, The Public Health and Welfare, prior to

repeal by Pub. L. 104-193, title I, Sec. 108(e), Aug. 22, 1996, 110

Stat. 2167.

Section 402 of the Social Security Act, referred to in subsec.

(b)(3)(C), which was classified to section 602 of Title 42, The

Public Health and Welfare, was repealed and a new section 402

enacted by Pub. L. 104-193, title I, Sec. 103(a)(1), Aug. 22, 1996,

110 Stat. 2112, and, as so enacted, no longer contains subsecs.

(a)(19) and (g).

The Omnibus Budget Reconciliation Act of 1981, referred to in

subsec. (e), is Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 357. Part 1

of subtitle A of title I of the Omnibus Budget Reconciliation Act

amended this chapter generally. For complete classification of

this Act to the Code, see Tables.

The Food Stamp and Commodity Distribution Amendments of 1981,

referred to in subsec. (e), is title XIII of Pub. L. 97-98, Dec.

22, 1981, 95 Stat. 1282, which amended this chapter generally. For

complete classification of this Act to the Code, see Short Title of

1981 Amendment note set out under section 2011 of this title and

Tables.

The Food Stamp Act Amendments of 1982, referred to in subsec.

(e), is subtitle E of title I of Pub. L. 97-253, Sept. 8, 1982, 96

Stat. 772, which amended this chapter generally. For complete

classification of this Act to the Code, see Short Title of 1982

Amendment note set out under section 2011 of this title and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-171, Sec. 4123(a), substituted

''enter into contracts with or make grants to public or private

organizations or agencies under this section to'' for '', by way of

making contracts with or grants to public or private organizations

or agencies,'' and inserted at end ''The waiver authority of the

Secretary under subsection (b) of this section shall extend to all

contracts and grants under this section.''

Subsec. (b)(1)(B)(iv)(III)(aa). Pub. L. 107-171, Sec. 4112(b)(4),

substituted ''paragraphs (4) and (5) of section 2012(i) of this

title'' for ''the last 2 sentences of section 2012(i) of this

title''.

Subsec. (b)(1)(B)(vi). Pub. L. 107-171, Sec. 4122(b), substituted

''2007'' for ''2002''.

Subsecs. (i) to (k). Pub. L. 107-171, Sec. 4116(b), redesignated

subsecs. (j) and (k) as (i) and (j), respectively, and struck out

former subsec. (i) which related to grants to improve food stamp

participation.

1998 - Subsec. (b)(2). Pub. L. 105-277, Sec. 101(f) (title VIII,

Sec. 405(f)(2)(C)), in second sentence, struck out ''the Job

Training Partnership Act or'' before ''title I of the Workforce''.

Pub. L. 105-277, Sec. 101(f) (title VIII, Sec. 405(d)(2)(C)), in

second sentence, substituted ''to accept an offer of employment

from a political subdivision or provider pursuant to a program

carried out under the Job Training Partnership Act or title I of

the Workforce Investment Act of 1998,'' for ''to accept an offer of

employment from a political subdivision or a prime sponsor pursuant

to the Comprehensive Employment and Training Act of 1973, as

amended (29 U.S.C. 812),'' and substituted '', if all of the jobs

supported under the program have been made available to

participants in the program before the political subdivision or

provider providing the jobs extends an offer of employment under

this paragraph, and if the political subdivision or provider, in

employing the person, complies with the requirements of Federal law

that relate to the program.'' for '': Provided, That all of the

political subdivision's or prime sponsor's public service jobs

supported under the Comprehensive Employment and Training Act of

1973, as amended (29 U.S.C. 812), are filled before such

subdivision or sponsor can extend a job offer pursuant to this

paragraph: Provided further, That the sponsor of each such project

shall provide the assurances required of prime sponsors under

section 205(c)(7), (8), (15), (19), and (24) of the Comprehensive

Employment and Training Act of 1973, as amended (29 U.S.C. 845(c)),

and the Secretary shall require such sponsors to comply with the

conditions contained in sections 208(a)(1), (4), and (5) and (c)

and 703(4) of the Comprehensive Employment and Training Act of

1973, as amended (29 U.S.C. 848(a) and (c) and 983).''

1997 - Subsec. (b)(1)(B)(iv)(VII). Pub. L. 105-18 added subcl.

(VII).

1996 - Subsec. (b)(1). Pub. L. 104-193, Sec. 850, 851, in first

sentence, substituted ''benefits to eligible households, and may

waive any requirement of this chapter to the extent necessary for

the project to be conducted.'' along with subpar. (B) heading, cls.

(i) to (iv), cl. (v) of subpar. (B) heading, and ''A pilot or

experimental project may include'' for ''benefits to eligible

households, including'', in subpar. (B)(v), substituted ''are

receiving assistance under a State program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.)'' for

''to aid to families with dependent children under part A of title

IV of the Social Security Act'', substituted ''coupons.'' along

with cl. (vi) of subpar. (B) heading and ''Any pilot'' for

''coupons. The Secretary may waive the requirements of this chapter

to the degree necessary for such projects to be conducted, except

that no project, other than a project involving the payment of the

average value of allotments by household size in the form of cash

to eligible households or a project conducted under paragraph (3),

shall be implemented which would lower or further restrict the

income or resource standards or benefit levels provided pursuant to

sections 2014 and 2017 of this title. Any pilot'', redesignated

former subpar. (B) as (C), and added subpar. (D).

Pub. L. 104-193, Sec. 109(d)(1), which directed substitution of

''or are receiving assistance under a State program funded under

part A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.)'' for ''to aid to families with dependent children under part

A of title IV of the Social Security Act'' in first sentence of

subsec. (b)(1)(A), effective July 1, 1997, could not be executed

because of amendment by Pub. L. 104-193 which redesignated portions

of subsec. (b)(1)(A) and struck out the language sought to be

amended. See above.

Pub. L. 104-127, Sec. 401(c), substituted ''October 1, 2002'' for

''October 1, 1995'' in last sentence of par. (1)(A).

Subsec. (b)(2). Pub. L. 104-193, Sec. 815(b)(1), substituted

''section 2015(d)(1)(A)(i)'' for ''section 2015(d)(1)(i)'' in

second sentence.

Subsec. (b)(3)(I). Pub. L. 104-193, Sec. 109(d)(2), added subpar.

(I).

Subsec. (d). Pub. L. 104-193, Sec. 852, added subsec. (d) and

struck out former subsec. (d) which authorized pilot projects for

employment of applicants and recipients, defined ''qualification

period'', and provided for exceptions, waiver of requirements, and

reestablishment of eligibility.

Subsec. (i). Pub. L. 104-193, Sec. 854(c)(2), redesignated

subsec. (j) as (i) and struck out former subsec. (i) which

authorized four demonstration projects, in both urban and rural

areas, under which households in which each member received

benefits under State plan approved under part A of title IV of

Social Security Act would be issued monthly allotments following

rules and procedures of programs under part A of title IV of Social

Security Act, and without regard to eligibility, benefit, and

administrative rules established under this chapter.

Subsec. (j). Pub. L. 104-193, Sec. 854(c)(2), redesignated

subsec. (k) as (j). Former subsec. (j) redesignated (i).

Subsec. (j)(1)(A). Pub. L. 104-127, Sec. 401(d), substituted

''2002'' for ''1995''.

Subsecs. (k), (l). Pub. L. 104-193, Sec. 854(c)(2)(B),

redesignated subsec. (l) as (k). Former subsec. (k) redesignated

(j).

1994 - Subsec. (l). Pub. L. 103-225 added subsec. (l).

1993 - Subsec. (k). Pub. L. 103-66 added subsec. (k).

1991 - Subsec. (b)(3)(C). Pub. L. 102-237 inserted a closing

parenthesis after ''402(g)(1)(A)''.

1990 - Subsec. (a). Pub. L. 101-624, Sec. 1731, designated

existing provisions as par. (1) and added par. (2).

Subsec. (b)(1). Pub. L. 101-624, Sec. 1756(1), inserted ''or a

project conducted under paragraph (3)'' after ''eligible

households'' in second sentence of subpar. (A).

Pub. L. 101-624, Sec. 1755, designated existing provisions as

subpar. (A) and added subpar. (B).

Pub. L. 101-624, Sec. 1754, substituted ''1995'' for ''1990''.

Subsec. (b)(3). Pub. L. 101-624, Sec. 1756(2), added par. (3).

Subsec. (f). Pub. L. 101-624, Sec. 1729(b), struck out par. (1)

designation preceding text.

Subsec. (h). Pub. L. 101-624, Sec. 1757, added subsec. (h).

Subsec. (i). Pub. L. 101-624, Sec. 1758, added subsec. (i).

Subsec. (j). Pub. L. 101-624, Sec. 1759, added subsec. (j).

1988 - Subsec. (f). Pub. L. 100-435, Sec. 504, added subsec. (f).

Subsec. (g). Pub. L. 100-435, Sec. 505, added subsec. (g).

1985 - Subsec. (b)(1). Pub. L. 99-198, Sec. 1540(a), substituted

''October 1, 1990'' for ''December 31, 1985''.

Pub. L. 99-182 substituted ''December 31, 1985'' for ''December

13, 1985''.

Pub. L. 99-157 substituted ''December 13, 1985'' for ''November

15, 1985''.

Pub. L. 99-114 substituted ''through November 15, 1985'' for

''until October 1, 1985''.

Subsecs. (d) to (f). Pub. L. 99-198, Sec. 1540(b), (c), struck

out subsec. (d) which had authorized the Secretary to conduct

statewide pilot projects respecting the processing of applications

for certain recipients, and redesignated subsecs. (e) and (f) as

(d) and (e), respectively.

1982 - Subsec. (d). Pub. L. 97-253, Sec. 152(c), 190(d),

redesignated subsec. (f) as (d), and struck out former subsec. (d),

which provided that notwithstanding any other provision of law, the

Secretary has required, in consultation with the Secretary of the

Treasury, to conduct a study, through the use of Federal income tax

data, of the feasibility, alternative methods of implementation,

and the effects of a program to recover food stamp benefits from

members of eligible households in which the adjusted gross income

of members of such households for a calendar year (as defined by

the Internal Revenue Code of 1954) exceeded twice the income

poverty guidelines set forth in section 2014(c) of this title, and

that such study had to be conducted in rural and urban areas only

on a voluntary basis by food stamp recipients, and that the

Secretary was required, no later than twelve months and eighteen

months from September 29, 1977, to report the results of the study

to the Committees on Agriculture and Ways and Means of the House of

Representatives and to the Committees on Agriculture, Nutrition,

and Forestry and Finance of the Senate, together with such

recommendations as the Secretary deemed appropriate.

Subsec. (e). Pub. L. 97-253, Sec. 152(c), 190(d), redesignated

subsec. (g) as (e) and struck out former subsec. (e) which provided

for a study of the Consumer Price Index and other alternative

consumer price or cost-of-living indices.

Subsec. (f). Pub. L. 97-253, Sec. 190(d), redesignated subsec.

(h) as (f). Former subsec. (f) redesignated (d).

Subsecs. (g), (h). Pub. L. 97-253, Sec. 181, 182, 190(d), added

subsecs. (g) and (h) and redesignated them as (e) and (f),

respectively.

1981 - Subsec. (b)(1). Pub. L. 97-98, Sec. 1328, substituted

''may conduct'' for ''is authorized to conduct'', ''age sixty-five

or over and any of whose members are entitled to supplemental

security income benefits under title XVI of the Social Security Act

or to aid to families with dependent children under part A of title

IV of the Social Security Act'' for ''either age sixty-five or over

or entitled to supplemental security income benefits under title

XVI of the Social Security Act'', and ''October 1, 1985'' for

''October 1, 1981'' and inserted ''or the average value of

allotments by household size'' after ''value of allotments'', '',

other than a project involving the payment of the average value of

allotments by household size in the form of cash to eligible

households,'' after ''no project'', ''and operating as of October

1, 1981,'' after ''under this paragraph'' and ''all of whose

members are either age sixty-five or over or entitled to

supplemental security income benefits under title XVI of the Social

Security Act'' before ''shall be continued''.

Subsec. (c). Pub. L. 97-98, Sec. 1329, inserted provision

authorizing the Secretary to implement pilot programs to test

various means of measuring on a continual basis the nutritional

status of low income people in order to develop minimum common

criteria and methods for systematic nutrition monitoring that could

be applied on a nationwide basis and directing the Secretary to

report on the progress of these pilot programs on an annual basis

commencing on July 1, 1982, to designated Congressional committees.

Subsec. (f). Pub. L. 97-98, Sec. 1330, added subsec. (f).

1980 - Subsec. (b)(1). Pub. L. 96-249, Sec. 130, inserted

provisions requiring that any pilot or experimental project

implemented under this paragraph involving the payment of the value

of allotments in the form of cash to eligible households be

continued until October 1, 1981, if the State so requests.

Subsec. (b)(2). Pub. L. 96-249, Sec. 131, 132(a), inserted ''(ten

days in at least one pilot project area designated by the

Secretary)'' after ''thirty days'' and substituted ''interim

reports no later than October 1, 1979, October 1, 1980, and March

30, 1981, shall issue a final report describing the results of such

pilot project based upon their operation from their commencement

through the fiscal year ending September 30, 1981, and shall pay to

the agencies or organizations operating such pilot projects 50 per

centum of all administrative costs involved in such operation'' for

''an interim report no later than October 1, 1979, and shall issue

a final report describing the results of such pilot projects no

later than October 1, 1980''.

Subsec. (e). Pub. L. 96-249, Sec. 133, added subsec. (e).

1978 - Subsec. (b)(2). Pub. L. 95-400 required issuance of an

interim report no later than Oct. 1, 1979, and substituted

requirement for issuance of a final report no later than Oct. 1,

1980, for prior requirement of a final report no later than

eighteen months following Sept. 29, 1977.

1977 - Pub. L. 95-113 substituted provisions relating to

research, demonstrations, and evaluations for provisions relating

to the purchase with coupons of hunting and fishing equipment for

procuring food by members of eligible households living in Alaska.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4123(b), May 13, 2002, 116 Stat.

324, provided that: ''The amendments made by this section (amending

this section) take effect on the date of enactment of this Act (May

13, 2002).''

Amendment by sections 4112(b)(4), 4116(b), and 4122(b) 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 1998 AMENDMENT

Amendment by section 101(f) (title VIII, Sec. 405(d)(2)(C)) of

Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section

101(f) (title VIII, Sec. 405(f)(2)(C)) of Pub. L. 105-277 effective

July 1, 2000, see section 101(f) (title VIII, Sec. 405(g)(1),

(2)(B)) of Pub. L. 105-277, set out as a note under section 3502 of

Title 5, Government Organization and Employees.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 109(d) 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 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 sections 1729(b), 1731, and 1755 to 1759 of Pub. L.

101-624 effective Nov. 28, 1990, and amendment by section 1754 of

Pub. L. 101-624 effective Oct. 1, 1990, see section 1781(a), (b)(1)

of Pub. L. 101-624, set out as a note under section 2012 of this

title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-435 to be effective and implemented on

Oct. 1, 1988, except that such amendment 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), (c)(2)

of Pub. L. 100-435, set out as a note under section 2012 of this

title.

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.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 132(b) of Pub. L. 96-249 provided that: ''The provisions

of section 17(b)(2) of the Food Stamp Act of 1977 (subsec. (b)(2)

of this section) for the sharing of administrative costs, as added

by subsection (a) of this section, shall be effective on the date

of enactment of this Act (May 26, 1980).''

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.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(c) of this section relating to annual reports on the progress of

pilot programs, see section 3003 of Pub. L. 104-66, as amended, set

out as a note under section 1113 of Title 31, Money and Finance,

and page 48 of House Document No. 103-7.

STUDY OF USE OF FOOD STAMPS TO PURCHASE VITAMINS AND MINERALS

Section 855 of Pub. L. 104-193 provided that:

''(a) In General. - The Secretary of Agriculture, in consultation

with the National Academy of Sciences and the Center for Disease

Control and Prevention, shall conduct a study on the use of food

stamps provided under the Food Stamp Act of 1977 (7 U.S.C. 2011 et

seq.) to purchase vitamins and minerals.

''(b) Analysis. - The study shall include -

''(1) an analysis of scientific findings on the efficacy of and

need for vitamins and minerals, including -

''(A) the adequacy of vitamin and mineral intakes in

low-income populations, as shown by research and surveys

conducted prior to the study; and

''(B) the potential value of nutritional supplements in

filling nutrient gaps that may exist in the United States

population as a whole or in vulnerable subgroups in the

population;

''(2) the impact of nutritional improvements (including vitamin

or mineral supplementation) on the health status and health care

costs of women of childbearing age, pregnant or lactating women,

and the elderly;

''(3) the cost of commercially available vitamin and mineral

supplements;

''(4) the purchasing habits of low-income populations with

regard to vitamins and minerals;

''(5) the impact of using food stamps to purchase vitamins and

minerals on the food purchases of low-income households; and

''(6) the economic impact on the production of agricultural

commodities of using food stamps to purchase vitamins and

minerals.

''(c) Report. - Not later than December 15, 1998, the Secretary

shall report the results of the study to the Committee on

Agriculture of the House of Representatives and the Committee on

Agriculture, Nutrition, and Forestry of the Senate.''

DEMONSTRATION PROJECTS FOR VEHICLE EXCLUSION LIMIT

Section 912 of Pub. L. 102-237 provided that: ''The Secretary of

Agriculture shall solicit requests to participate in the

demonstration projects required by section 17(h) of the Food Stamp

Act of 1977 (7 U.S.C. 2026(h)) by May 1, 1992. The projects shall

commence operations no later than January 1, 1993.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2016, 2020, 2027, 2035 of

this title.

-CITE-

7 USC Sec. 2027 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2027. Appropriations and allotments

-STATUTE-

(a) Authorization of allotments; monthly reports of expenditures to

Congressional committees; restriction on use of funds;

nutrition education improvements

(1) To carry out this chapter, there are authorized to be

appropriated such sums as are necessary for each of the fiscal

years 2003 through 2007. Not to exceed one-fourth of 1 per centum

of the previous year's appropriation is authorized in each such

fiscal year to carry out the provisions of section 2026 of this

title, subject to paragraph (3).

(2) No funds authorized to be appropriated under this chapter or

any other Act of Congress shall be used by any person, firm,

corporation, group, or organization at any time, directly or

indirectly, to interfere with or impede the implementation of any

provision of this chapter or any rule, regulation, or project

thereunder, except that this limitation shall not apply to the

provision of legal and related assistance in connection with any

proceeding or action before any State or Federal agency or court.

The President shall ensure that this paragraph is complied with by

such order or other means as the President deems appropriate.

(3)(A) Of the amounts made available under the second sentence of

paragraph (1), not more than $2,000,000 in any fiscal year may be

used by the Secretary to make 2-year competitive grants that will -

(i) enhance interagency cooperation in nutrition education

activities; and

(ii) develop cost effective ways to inform people eligible for

food stamps about nutrition, resource management, and community

nutrition education programs, such as the expanded food and

nutrition education program.

(B) The Secretary shall make awards under this paragraph to one

or more State cooperative extension services (as defined in section

3103(5) of this title) who shall administer the grants in

coordination with other State or local agencies serving low-income

people.

(C) Each project shall include an evaluation component and shall

develop an implementation plan for replication in other States.

(D) The Secretary shall report to the appropriate committees of

Congress on the results of the projects and shall disseminate the

results through the cooperative extension service system and to

State human services and health department offices, local food

stamp program offices, and other entities serving low-income

households.

(b) Limitation of value of allotments; reduction of allotments

In any fiscal year, the Secretary shall limit the value of those

allotments issued to an amount not in excess of the appropriation

for such fiscal year. Notwithstanding any other provision of this

chapter, if in any fiscal year the Secretary finds that the

requirements of participating States will exceed the appropriation,

the Secretary shall direct State agencies to reduce the value of

such allotments to be issued to households certified as eligible to

participate in the food stamp program to the extent necessary to

comply with the provisions of this subsection.

(c) Manner of reducing allotments

In prescribing the manner in which allotments will be reduced

under subsection (b) of this section, the Secretary shall ensure

that such reductions reflect, to the maximum extent practicable,

the ratio of household income, determined under sections 2014(d)

and 2014(e) of this title, to the income standards of eligibility,

for households of equal size, determined under section 2014(c) of

this title. The Secretary may, in prescribing the manner in which

allotments will be reduced, establish (1) special provisions

applicable to persons sixty years of age or over and persons who

are physically or mentally handicapped or otherwise disabled, and

(2) minimum allotments after any reductions are otherwise

determined under this section.

(d) Requisite action by Secretary to reduce allotments; statement

to Congressional committees

Not later than sixty days after the issuance of a report under

subsection (a) of this section in which the Secretary expresses the

belief that reductions in the value of allotments to be issued to

households certified to participate in the food stamp program will

be necessary, the Secretary shall take the requisite action to

reduce allotments in accordance with the requirements of this

section. Not later than seven days after the Secretary takes any

action to reduce allotments under this section, the Secretary shall

furnish the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate a statement setting forth (1) the basis of

the Secretary's determination, (2) the manner in which the

allotments will be reduced, and (3) the action that has been taken

by the Secretary to reduce the allotments.

(e) Disposition of funds collected pursuant to claims

Funds collected from claims against households or State agencies,

including claims collected pursuant to sections (FOOTNOTE 1)

2016(f) of this title, subsections (g) and (h) of section 2020 of

this title, subsections (b) and (c) of section 2022 of this title,

and section 2025(c)(1) of this title, claims resulting from

resolution of audit findings, and claims collected from households

receiving overissuances, shall be credited to the food stamp

program appropriation account for the fiscal year in which the

collection occurs. Funds provided to State agencies under section

2025(c) of this title shall be paid from the appropriation account

for the fiscal year in which the funds are provided.

(FOOTNOTE 1) So in original. Probably should be ''section''.

(f) Transfer of funds

No funds appropriated to carry out this chapter may be

transferred to the Office of the Inspector General, or the Office

of the General Counsel, of the Department of Agriculture.

-SOURCE-

(Pub. L. 88-525, Sec. 18, as added Pub. L. 95-113, title XIII, Sec.

1301, Sept. 29, 1977, 91 Stat. 979; amended Pub. L. 96-58, Sec. 1,

Aug. 14, 1979, 93 Stat. 389; Pub. L. 96-249, title I, Sec. 134,

title II, Sec. 201, May 26, 1980, 94 Stat. 368, 370; Pub. L. 97-18,

Sec. 1, June 30, 1981, 95 Stat. 102; Pub. L. 97-98, title XIII,

Sec. 1331, 1332, Dec. 22, 1981, 95 Stat. 1291; Pub. L. 97-253,

title I, Sec. 180(b)(2), 183, Sept. 8, 1982, 96 Stat. 784, 785;

Pub. L. 99-198, title XV, Sec. 1535(c)(2), 1541, 1542(a), Dec. 23,

1985, 99 Stat. 1585, 1589; Pub. L. 101-624, title XVII, Sec. 1760,

1761, Nov. 28, 1990, 104 Stat. 3803, 3804; Pub. L. 104-127, title

IV, Sec. 401(e), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 104-193,

title VIII, Sec. 853, Aug. 22, 1996, 110 Stat. 2339; Pub. L.

105-362, title I, Sec. 101(b), Nov. 10, 1998, 112 Stat. 3281; Pub.

L. 107-171, title IV, Sec. 4118(c), 4122(c), May 13, 2002, 116

Stat. 321, 324.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-171, Sec. 4122(c), substituted

''2003 through 2007'' for ''1996 through 2002''.

Subsec. (e). Pub. L. 107-171, Sec. 4118(c), substituted

''subsections (g) and (h) of section 2020 of this title,'' for

''2020(g) and (h), and'' and inserted ''and section 2025(c)(1) of

this title,'' after ''section 2022 of this title,''.

1998 - Subsec. (a)(1). Pub. L. 105-362 struck out at end ''The

Secretary shall, by the fifteenth day of each month, submit a

report to the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate setting forth the Secretary's best estimate

of the second preceding month's expenditure, including

administrative costs, as well as the cumulative totals for the

fiscal year. In each monthly report, the Secretary shall also

state whether there is reason to believe that supplemental

appropriations will be needed to support the operation of the

program through the end of the fiscal year.''

1996 - Subsec. (a)(1). Pub. L. 104-193 substituted ''1996 through

2002'' for ''1991 through 1997'' in first sentence.

Pub. L. 104-127 substituted ''1991 through 1997'' for ''1991

through 1995'' in first sentence.

1990 - Subsec. (a)(1). Pub. L. 101-624, Sec. 1760(1)(A), 1761(1),

substituted ''To carry out this chapter, there are authorized to be

appropriated such sums as are necessary for each of the fiscal

years 1991 through 1995.'' for former first two sentences which

related to authorizations of appropriation for fiscal years ending

September 30, 1978 through September 30, 1990, and inserted '',

subject to paragraph (3)''.

Pub. L. 101-624, Sec. 1760(1)(B), substituted ''supplemental

appropriations will be needed to support the operation of the

program through the end of the fiscal year'' for ''reductions in

the value of allotments issued to households certified to

participate in the food stamp program will be necessary under

subsection (b) of this section''.

Subsec. (a)(3). Pub. L. 101-624, Sec. 1761(2), added par. (3).

Subsec. (b). Pub. L. 101-624, Sec. 1760(2), struck out ''amount

authorized in subsection (a)(1) of this section'' after ''exceed

the appropriation''.

1985 - Subsec. (a)(1). Pub. L. 99-198, Sec. 1541(1), inserted

provisions authorizing appropriations for fiscal years ending Sept.

30, 1986, 1987, 1988, 1989, and 1990.

Subsec. (b). Pub. L. 99-198, Sec. 1541(2), substituted ''the

appropriation amount authorized in subsection (a)(1) of this

section,'' for ''the limitation set herein,''.

Subsec. (e). Pub. L. 99-198, Sec. 1535(c)(2), substituted

reference to subsections (b) and (c) of section 2022 of this title

for reference to 2022(b) of this title.

Subsec. (f). Pub. L. 99-198, Sec. 1542(a), added subsec. (f).

1982 - Subsec. (a)(1). Pub. L. 97-253, Sec. 183, inserted

provisions for appropriations for the fiscal years ending on

September 30, 1983-1985, inclusive.

Subsec. (e). Pub. L. 97-253, Sec. 180(b)(2), struck out reference

to section 2025(g) of this title in first sentence.

1981 - Subsec. (a)(1). Pub. L. 97-98, Sec. 1331, struck out

''and'' after ''September 30, 1980;'' and inserted ''; and not in

excess of $11,300,000,000 for the fiscal year ending September 30,

1982''.

Pub. L. 97-18 substituted ''$11,480,000,000'' for

''$9,739,276,000'' in appropriation authorization for the fiscal

year ending Sept. 30, 1981.

Subsec. (e). Pub. L. 97-98, Sec. 1332, added subsec. (e).

1980 - Subsec. (a). Pub. L. 96-249 designated existing provisions

as par. (1) and substituted ''$9,491,000,000'' for

''$6,188,600,000'' and ''$9,739,276,000'' for ''$6,235,900,000'',

and added par. (2).

1979 - Subsec. (a). Pub. L. 96-58, Sec. 1(1), (2), substituted

''$6,778,900,000'' for ''$6,158,900,000'' in provisions authorizing

appropriations for the fiscal year ending Sept. 30, 1979, struck

out provisions directing that sums appropriated under this chapter

would continue to remain available until expended, and inserted

provisions requiring the Secretary to submit monthly reports to

Senate and House Committees relating to monthly expenditures and

stating whether or not there is reason to believe that reductions

in the value of allotments issued to households certified to

participate in the food stamp program will be necessary under

subsec. (b) of this section.

Subsec. (b). Pub. L. 96-58, Sec. 1(3), substituted

''Notwithstanding any other provision of this chapter, if'' for

''If'' at beginning of second sentence.

Subsecs. (c), (d). Pub. L. 96-58, Sec. 1(4), added subsecs. (c)

and (d).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by section 4118(c) 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.

Amendment by section 4122(c) 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 1990 AMENDMENT

Amendment by sections 1760(1)(A) and 1761 of Pub. L. 101-624

effective Oct. 1, 1990, and amendment by section 1760(1)(B), (2) of

Pub. L. 101-624 effective Nov. 28, 1990, see section 1781(b)(1),

(2) of Pub. L. 101-624, set out as a note under section 2012 of

this title.

EFFECTIVE DATE OF 1985 AMENDMENT

Section 1542(b) of Pub. L. 99-198 provided that: ''The amendment

made by this section (amending this section) shall become effective

on October 1, 1986.''

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by section 180(b)(2) 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.

Amendment by section 183 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.

EFFECTIVE DATE OF 1981 AMENDMENT

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.

EFFECTIVE DATE

Section 1301 of Pub L. 95-113 provided that this section is

effective Oct. 1, 1977.

AVAILABILITY OF AMOUNTS IF SEQUESTRATION ORDER ISSUED FOR FISCAL

YEAR 1989

Amounts available to carry out food stamp program under this

section to be reduced if sequestration order is issued under

section 902(b) of Title 2, The Congress, see section 702(c)(1) of

Pub. L. 100-435, set out as an Effective Date of 1988 Amendment

note under section 2012 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2013, 2020, 2025, 2030 of

this title.

-CITE-

7 USC Sec. 2028 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2028. Consolidated block grants for Puerto Rico and American

Samoa

-STATUTE-

(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.

-SOURCE-

(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.)

-MISC1-

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.''

-CITE-

7 USC Sec. 2029 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2029. Workfare

-STATUTE-

(a) Program plan; guidelines; compliance

(1) The Secretary shall permit any political subdivision, in any

State, that applies and submits a plan to the Secretary in

compliance with guidelines promulgated by the Secretary to operate

a workfare program pursuant to which every member of a household

participating in the food stamp program who is not exempt by virtue

of the provisions of subsection (b) of this section shall accept an

offer from such subdivision to perform work on its behalf, or may

seek an offer to perform work, in return for compensation

consisting of the allotment to which the household is entitled

under section 2017(a) of this title, with each hour of such work

entitling that household to a portion of its allotment equal in

value to 100 per centum of the higher of the applicable State

minimum wage or the Federal minimum hourly rate under the Fair

Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).

(2)(A) The Secretary shall promulgate guidelines pursuant to

paragraph (1) which, to the maximum extent practicable, enable a

political subdivision to design and operate a workfare program

under this section which is compatible and consistent with similar

workfare programs operated by the subdivision.

(B) A political subdivision may comply with the requirements of

this section by operating any workfare program which the Secretary

determines meets the provisions and protections provided under this

section.

(b) Exempt household members

A household member shall be exempt from workfare requirements

imposed under this section if such member is -

(1) exempt from section 2015(d)(1) of this title as the result

of clause (B), (C), (D), (E), or (F) of section 2015(d)(2) of

this title;

(2) at the option of the operating agency, subject to and

currently actively and satisfactorily participating at least 20

hours a week in a work activity required under title IV of the

Social Security Act (42 U.S.C. 601 et seq.);

(3) mentally or physically unfit;

(4) under sixteen years of age;

(5) sixty years of age or older; or

(6) a parent or other caretaker of a child in a household in

which another member is subject to the requirements of this

section or is employed fulltime.

(c) Valuation or duration of work

No operating agency shall require any participating member to

work in any workfare position to the extent that such work exceeds

in value the allotment to which the household is otherwise entitled

or that such work, when added to any other hours worked during such

week by such member for compensation (in cash or in kind) in any

other capacity, exceeds thirty hours a week.

(d) Nature, conditions, and costs of work

The operating agency shall -

(1) not provide any work that has the effect of replacing or

preventing the employment of an individual not participating in

the workfare program;

(2) provide the same benefits and working conditions that are

provided at the job site to employees performing comparable work

for comparable hours; and

(3) reimburse participants for actual costs of transportation

and other actual costs all of which are reasonably necessary and

directly related to participation in the program but not to

exceed $25 in the aggregate per month.

(e) Job search period

The operating agency may allow a job search period, prior to

making workfare assignments, of up to thirty days following a

determination of eligibility.

(f) Disqualification

An individual or a household may become ineligible under section

2015(d)(1) of this title to participate in the food stamp program

for failing to comply with this section.

(g) Payment of administrative expenses

(1) The Secretary shall pay to each operating agency 50 per

centum of all administrative expenses incurred by such agency in

operating a workfare program, including reimbursements to

participants for work-related expenses as described in subsection

(d)(3) of this section.

(2)(A) From 50 per centum of the funds saved from employment

related to a workfare program operated under this section, the

Secretary shall pay to each operating agency an amount not to

exceed the administrative expenses described in paragraph (1) for

which no reimbursement is provided under such paragraph.

(B) For purposes of subparagraph (A), the term ''funds saved from

employment related to a workfare program operated under this

section'' means an amount equal to three times the dollar value of

the decrease in allotments issued to households, to the extent that

such decrease results from wages received by members of such

households for the first month of employment beginning after the

date such members commence such employment if such employment

commences -

(i) while such members are participating for the first time in

a workfare program operated under this section; or

(ii) in the thirty-day period beginning on the date such first

participation is terminated.

(3) The Secretary may suspend or cancel some or all of these

payments, or may withdraw approval from a political subdivision to

operate a workfare program, upon a finding that the subdivision has

failed to comply with the workfare requirements.

-SOURCE-

(Pub. L. 88-525, Sec. 20, as added Pub. L. 97-98, title XIII, Sec.

1333, Dec. 22, 1981, 95 Stat. 1291; amended Pub. L. 97-253, title

I, Sec. 185-188, Sept. 8, 1982, 96 Stat. 786; Pub. L. 99-198, title

XV, Sec. 1517(d), Dec. 23, 1985, 99 Stat. 1577; Pub. L. 102-237,

title IX, Sec. 941(10), Dec. 13, 1991, 105 Stat. 1893; Pub. L.

104-193, title I, Sec. 109(e), title VIII, Sec. 815(b)(2), Aug. 22,

1996, 110 Stat. 2170, 2317.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Labor Standards Act of 1938, referred to in subsec.

(a)(1), is act June 25, 1938, ch. 676, 52 Stat. 1060, as amended,

which is classified generally to chapter 8 (Sec. 201 et seq.) of

Title 29, Labor. For complete classification of this Act to the

Code, see section 201 of Title 29 and Tables.

The Social Security Act, referred to in subsec. (b)(2), is act

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title IV of the

Act is classified generally to subchapter IV (Sec. 601 et seq.) of

chapter 7 of Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see section 1305 of Title

42 and Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (a)(2)(B). Pub. L. 104-193, Sec. 109(e)(1),

substituted ''operating any'' for ''operating -

''(i) a workfare program pursuant to title IV of the Social

Security Act (42 U.S.C. 601 et seq.); or

''(ii) any other''.

Subsec. (b). Pub. L. 104-193, Sec. 109(e)(2), struck out ''(1)''

before ''A household member shall be exempt'', redesignated

subpars. (A) to (F) as pars. (1) to (6), respectively, in par. (2),

substituted ''a work activity'' for ''a work training program'',

and struck out former par. (2) which read as follows:

''(2)(A) Subject to subparagraphs (B) and (C), in the case of a

household that is exempt from work requirements imposed under this

chapter as the result of participation in a community work

experience program established under section 409 of the Social

Security Act (42 U.S.C. 609), the maximum number of hours in a

month for which all members of such household may be required to

participate in such program shall equal the result obtained by

dividing -

''(i) the amount of assistance paid to such household for such

month under title IV of such Act, together with the value of the

food stamp allotment of such household for such month; by

''(ii) the higher of the Federal or State minimum wage in

effect for such month.

''(B) In no event may any such member be required to participate

in such program more than 120 hours per month.

''(C) For the purpose of subparagraph (A)(i), the value of the

food stamp allotment of a household for a month shall be determined

in accordance with regulations governing the issuance of an

allotment to a household that contains more members than the number

of members in an assistance unit established under title IV of such

Act.''

Subsec. (f). Pub. L. 104-193, Sec. 815(b)(2), added subsec. (f)

and struck out former subsec. (f) which read as follows: ''In the

event that any person fails to comply with the requirements of this

section, neither that person nor the household to which that person

belongs shall be eligible to participate in the food stamp program

for two months, unless that person or another person in the

household satisfies all outstanding workfare obligations prior to

the end of the two-month disqualification period.''

1991 - Subsec. (g)(2). Pub. L. 102-237 realigned the margins of

subpars. (A) and (B) and cls. (i) and (ii) of subpar. (B).

1985 - Subsec. (b). Pub. L. 99-198 in amending subsec. (b)

generally, designated existing provisions of subsec. (b) as par.

(1), reorganized and expanded provisions of par. (1) as thus

designated, lowered minimum age for exempted household members from

eighteen years to sixteen years, and added par. (2).

1982 - Subsec. (a). Pub. L. 97-253, Sec. 185, redesignated

existing provisions, formerly undesignated, as par. (1), and added

par. (2).

Subsec. (b)(4). Pub. L. 97-253, Sec. 186, substituted ''at the

option of the operating agency, subject to and currently actively

and satisfactorily participating'' for ''subject to and currently

involved''.

Subsec. (c). Pub. L. 97-253, Sec. 187, substituted '', when added

to any other hours worked during such week by such member for

compensation (in cash or in kind) in any other capacity, exceeds

thirty hours a week'' for ''either exceeds twenty hours a week or

would, together with any other hours worked in any other

compensated capacity by such member on a regular or predictable

part-time basis, exceed thirty hours a week''.

Subsec. (g)(2), (3). Pub. L. 97-253, Sec. 188, added par. (2) and

redesignated former par. (2) as (3).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 109(e) 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 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 1982 AMENDMENT

Amendment by sections 185 to 187 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.

Amendment by section 188 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

Section effective on earlier of Sept. 8, 1982, or date effective

pursuant to section 1338 of Pub. L. 97-98, set out as an Effective

Date of 1981 Amendment note under section 2012 of this title, which

made the section effective on such date as Secretary of Agriculture

may prescribe, taking into account need for orderly implementation,

see section 192(b) of Pub. L. 97-253 set out as an Effective Date

of 1982 Amendment note under section 2012 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2015, 2026 of this title.

-CITE-

7 USC Sec. 2030 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2030. Washington Family Independence Demonstration Project

-STATUTE-

(a) In general

Upon written application of the State of Washington (in this

section referred to as the ''State'') and after the approval of

such application by the Secretary, the State may conduct a Family

Independence Demonstration Project (in this section referred to as

the ''Project'') in all or in part of the State in accordance with

this section to determine whether the Project, as an alternative to

providing benefits under the food stamp program, would more

effectively break the cycle of poverty and would provide families

with opportunities for economic independence and strengthened

family functioning.

(b) Nature of Project

In an application submitted under subsection (a) of this section,

the State shall provide the following:

(1) Except as provided in this section, the provisions of

chapter 434 of the 1987 Washington Laws, as enacted in May 1987,

shall apply to the operation of the Project.

(2) All of the following terms and conditions shall be in

effect under the Project:

(A)(i) Except as provided in clause (ii), individuals with

respect to whom benefits may be paid under part A of title IV

of the Social Security Act (42 U.S.C. 601 et seq.), and such

other individuals as are included in the Project pursuant to

chapter 434 of the 1987 Washington Laws, as enacted in May

1987, shall be eligible to participate in the Project in lieu

of receiving benefits under the food stamp program and cash

assistance under any other Federal program covered by the

Project.

(ii) Individuals who receive only child care or medical

benefits under the Project shall not be eligible to receive

food assistance under the Project. Such individuals may receive

coupons under the food stamp program if eligible.

(B) Individuals who participate in the Project shall receive

for each month an amount of cash assistance that is not less

than the total value of the assistance such individuals would

otherwise receive, in the aggregate, under the food stamp

program and any cash-assistance Federal program covered by the

Project for such month, including income and resource

exclusions and deductions, and benefit levels.

(C)(i) The State may provide a standard benefit for food

assistance under the Project, except that individuals who

participate in the Project shall receive as food assistance for

a month an amount of cash that is not less than the value of

the assistance such individuals would otherwise receive under

the food stamp program.

(ii) The State may provide a cash benefit for food assistance

equal to the value of the thrifty food plan.

(D) Each month participants in the Project shall be notified

by the State of the amount of Project assistance that is

provided as food assistance for such month.

(E) The State shall have a program to require participants to

engage in employment and training activities carried out under

chapter 434 of the 1987 Washington Laws, as enacted in May

1987.

(F) Food assistance shall be provided under the Project -

(i) to any individual who is accepted for participation in

the Project, not later than 30 days after such individual

applies to participate in the Project;

(ii) to any participant for the period that begins on the

date such participant applies to participate in the Project,

except that the amount of such assistance shall be reduced to

reflect the pro rata value of any coupons received under the

food stamp program for such period for the benefit of such

participant; and

(iii) until -

(I) the participant's cash assistance under the Project

is terminated;

(II) such participant is informed of such termination and

is advised of the eligibility requirements for

participation in the food stamp program;

(III) the State determines whether such participant will

be eligible to receive coupons as a member of a household

under the food stamp program; and

(IV) coupons under the food stamp program are received by

such participant if such participant will be eligible to

receive coupons as a member of a household under the food

stamp program.

(G)(i) Paragraphs (1)(B), (8), (10), and (19) (FOOTNOTE 1) of

section 2020(e) of this title shall apply with respect to the

participants in the Project in the same manner as such

paragraphs apply with respect to participants in the food stamp

program.

(FOOTNOTE 1) See References in Text note below.

(ii) Each individual who contacts the State in person during

office hours to make what may reasonably be interpreted as an

oral or written request to participate in the Project shall

receive and shall be permitted to file on the same day that

such contact is first made, an application form to participate

in the Project.

(iii) The Project shall provide for telephone contact by,

mail delivery of forms to and mail return of forms by, and

subsequent home or telephone interview with, the elderly

persons, physically or mentally handicapped, and persons

otherwise unable, solely because of transportation difficulties

and similar hardships, to appear in person.

(iv) An individual who applies to participate in the Project

may be represented by another person in the review process if

the other person has been clearly designated as the

representative of such individual for that purpose, by such

individual or the spouse of such individual, and, in the case

of the review process, the representative is an adult who is

sufficiently aware of relevant circumstances, except that the

State may -

(I) restrict the number of individuals who may be

represented by such person; and

(II) otherwise establish criteria and verification

standards for representation under this clause.

(v) The State shall provide a method for reviewing

applications to participate in the Project submitted by, and

distributing food assistance under the Project to, individuals

who do not reside in permanent dwellings or who have no fixed

mailing address. In carrying out the preceding sentence, the

State shall take such steps as are necessary to ensure that

participation in the Project is limited to eligible

individuals.

(3) An assurance that the State will allow any individual to

apply to participate in the food stamp program without applying

to participate in the Project.

(4) An assurance that the cost of food assistance provided

under the Project will not be such that the aggregate amount of

payments made under this section by the Secretary to the State

over the period of the Project will exceed the sum of -

(A) the anticipated aggregate value of the coupons that would

have been distributed under the food stamp program if the

individuals who participate in the Project had participated

instead in the food stamp program; and

(B) the portion of the administrative costs for which the

State would have received reimbursement under -

(i) subsections (a) and (g) of section 2025 of this title

(without regard to the first proviso to such subsection (g))

if the individuals who participated in the Project had

participated instead in the food stamp program; and

(ii) section 2025(h) of this title if the individuals who

participated in the Project had participated in an employment

and training program under section 2015(d)(4) of this title;

except that this paragraph shall not be construed to prevent

the State from claiming payments for additional households that

would qualify for benefits under the food stamp program in the

absence of a cash out of such benefits as a result of changes

in economic, demographic, and other conditions in the State or

a subsequent change in the benefit levels approved by the State

legislature.

(5) An assurance that the State will continue to carry out the

food stamp program while the State carries out the Project.

(6) If there is a change in existing State law that would

eliminate guaranteed benefits or reduce the rights of applicants

or participants under this section during, or as a result of

participation in, the Project, the Project shall be terminated.

(7) An assurance that the Project shall include procedures and

due process guarantees no less beneficial than those which are

available under Federal law and under State law to participants

in the food stamp program.

(8)(A) An assurance that, except as provided in subparagraph

(B), the State will carry out the Project during a 5-year period

beginning on the date the first individual is approved for

participation in the Project.

(B) The Project may be terminated 180 days after -

(i) the State gives notice to the Secretary that it intends

to terminate the Project; or

(ii) the Secretary, after notice and an opportunity for a

hearing, determines that the State materially failed to comply

with this section.

(c) Funding

If an application submitted under subsection (a) of this section

by the State complies with the requirements specified in subsection

(b) of this section, then the Secretary shall -

(1) approve such application; and

(2) from funds appropriated under this chapter, pay the State

for -

(A) the actual cost of the food assistance provided under the

Project; and

(B) the percentage of the administrative costs incurred by

the State to provide food assistance under the Project that is

equal to the percentage of the State's aggregate administrative

costs incurred in operating the food stamp program in the most

recent fiscal year for which data are available, that was paid

under subsections (a), (g), and (h) of section 2025 of this

title.

(d) Project application

(1) Unless and until an application to participate in the Project

is approved, and food assistance under the Project is made

available to the applicant -

(A) such application shall also be treated as an application to

participate in the food stamp program; and

(B) section 2020(e)(9) of this title shall apply with respect

to such application.

(2) Coupons provided under the food stamp program with respect to

an individual who -

(A) is participating in such program; and

(B) applies to participate in the Project;

may not be reduced or terminated because such individual applies to

participate in the Project.

(3) For households eligible to participate in the food stamp

program that contain some members who participate in the Project

and other members who do not participate in the Project, those

members who do not participate in the Project shall receive a

separate benefit in food coupons under the food stamp program that

is not less than the amount of food stamp benefits that such

members would have received were the Project not implemented.

(e) Waiver

The Secretary shall (with respect to the Project) waive

compliance with any requirement contained in this chapter (other

than this section) that (if applied) would prevent the State from

carrying out the Project or effectively achieving its purpose.

(f) Construction

For purposes of any other Federal, State or local law -

(1) cash assistance provided under the Project that represents

food assistance shall be treated in the same manner as coupons

provided under the food stamp program are treated; and

(2) participants in the program who receive food assistance

under the Project shall be treated in the same manner as

recipients of coupons under the food stamp program are treated.

(g) Project audits

The Comptroller General of the United States may -

(1) conduct periodic audits of the operation of the Project to

verify the amounts payable to the State from time to time under

subsection (b)(4) of this section; and

(2) submit to the Secretary of Agriculture, the Secretary of

Health and Human Services, the Committee on Agriculture of the

House of Representatives, and the Committee on Agriculture,

Nutrition, and Forestry of the Senate a report describing the

results of each such audit.

(h) Evaluation

With funds appropriated under section 2027(a)(1) of this title,

the Secretary shall conduct, in consultation with the Secretary of

Health and Human Services, an evaluation of the Project.

-SOURCE-

(Pub. L. 88-525, Sec. 21, as added Pub. L. 100-203, title I, Sec.

1509, Dec. 22, 1987, 101 Stat. 1330-29; amended Pub. L. 100-481,

Sec. 1, Oct. 11, 1988, 102 Stat. 2336; Pub. L. 104-316, title I,

Sec. 104(a), Oct. 19, 1996, 110 Stat. 3829.)

-REFTEXT-

REFERENCES IN TEXT

Paragraph (19) of section 2020(e) of this title, referred to in

subsec. (b)(2)(G)(i), was redesignated paragraph (18) of section

2020(e) of this title by Pub. L. 104-193, title VIII, Sec.

835(1)(D)(i), Aug. 22, 1996, 110 Stat. 2330.

The Social Security Act, referred to in subsec. (b)(2)(A)(i), is

act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of

title IV of the Social Security 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. For complete classification of this Act

to the Code, see section 1305 of Title 42 and Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (g). Pub. L. 104-316 substituted ''may'' for

''shall'' in introductory provisions.

1988 - Subsec. (d)(3). Pub. L. 100-481 amended par. (3)

generally. Prior to amendment, par. (3) read as follows: ''For

purposes of the food stamp program, individuals who participate in

the Project shall not be considered to be members of a household

during the period of such participation.''

EFFECTIVE DATE OF 1988 AMENDMENT

Section 2 of Pub. L. 100-481 provided that: ''The amendment made

by this Act (amending this section) shall become effective on July

1, 1988.''

-CITE-

7 USC Sec. 2031 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2031. Food stamp portion of Minnesota Family Investment Plan

-STATUTE-

(a) In general

(1) Subject to paragraph (2), upon written application of the

State of Minnesota that complies with this section and sections 6

to 11, 13, 130, and 132 of article 5 of 282 of the 1989 Laws of

Minnesota, and after approval of such application by the Secretary

in accordance with subsections (b) and (d) of this section, the

State may implement a family investment demonstration project

(hereinafter in this section referred to as the ''Project'') in

parts of the State to determine whether the Project more

effectively helps families to become self-supporting and enhances

their ability to care for their children than do the food stamp

program and programs under parts A and F (FOOTNOTE 1) of title IV

of the Social Security Act (42 U.S.C. 601 et seq.). The State may

provide cash payments under the Project, subject to paragraph (2),

that replace assistance otherwise available under the food stamp

program and under part A of title IV of the Social Security Act.

(FOOTNOTE 1) See References in Text note below.

(2) The Project may be implemented only in accordance with this

section and only if the Secretary of Health and Human Services

approves an application submitted by the State permitting the State

to include in the Project families who are eligible to receive

benefits under part A of title IV of the Social Security Act.

(b) Required terms and conditions of Project

The application submitted by the State under subsection (a) of

this section shall provide an assurance that the Project shall

satisfy all of the following requirements:

(1) Only families may be eligible to receive assistance and

services through the Project.

(2) Participating families, families eligible for or

participating in the program authorized under part A of title IV

of the Social Security Act (42 U.S.C. 601 et seq.) or the food

stamp program that are assigned to and found eligible for the

Project, and families required to submit an application for the

Project that are found eligible for the Project shall be

ineligible to receive benefits under the food stamp program.

(3)(A) Subject to the provisions of this paragraph and any

reduction imposed under subsection (c)(3) of this section, the

value of assistance provided to participating families shall not

be less than the aggregate value of the assistance such families

could receive under the food stamp program and part A of title IV

of the Social Security Act if such families did not participate

in the Project.

(B) For purposes of satisfying the requirement specified in

subparagraph (A) -

(i) payments for child care expenses under the Project shall

be considered part of the value of assistance provided to

participating families with earnings;

(ii) payments for child care expenses for families without

earnings shall not be considered part of the value of

assistance provided to participating families or the aggregate

value of assistance that such families could have received

under the food stamp program and part A of title IV of the

Social Security Act; and

(iii) any child support payments not assigned to the State

under the provisions of part A of title IV of the Social

Security Act, less $50 per month, shall be considered part of

the aggregate value of assistance participating families would

receive if such families did not participate in the Project;

(C) For purposes of satisfying the requirement specified in

subparagraph (A), the State shall -

(i) identify the sets of characteristics indicative of

families that might receive less assistance under the Project;

(ii) establish a mechanism to determine, for each

participating family that has a set of characteristics

identified under clause (i) whether such family could receive

more assistance, in the aggregate, under the food stamp program

and part A of title IV of the Social Security Act if such

family did not participate in the project;

(iii) increase the amount of assistance provided under the

Project to any family that could receive more assistance, in

the aggregate, under the food stamp program and part A of title

IV of the Social Security Act if such family did not

participate in the Project, so that the assistance provided

under the Project to such family is not less than the aggregate

amount of assistance such family could receive under the food

stamp program and part A of title IV of the Social Security Act

if such family did not participate in the Project; and

(iv) increase the amount of assistance paid to participating

families, if the State or locality imposes a sales tax on food,

by the amount needed to compensate for the tax.

This subparagraph shall not be construed to require the State to

make the determination under clause (ii) for families that do not

have a set of characteristics identified under clause (i).

(D)(i) The State shall designate standardized amounts of

assistance provided as food assistance under the Project and

notify monthly each participating family of such designated

amount.

(ii) The amount of food assistance so designated shall be at

least the value of coupons such family could have received under

the food stamp program if the Project had not been implemented.

The provisions of this subparagraph shall not require that the

State make individual determinations as to the amount of

assistance under the Project designated as food assistance.

(iii) The State shall periodically allow participating families

the option to receive such food assistance in the form of

coupons.

(E)(i) Individuals ineligible for the Project who are members

of a household including a participating family shall have their

eligibility for the food stamp program determined and have their

benefits calculated and issued following the standards

established under the food stamp program, except as provided

differently in this subparagraph.

(ii) The State agency shall determine such individuals'

eligibility for benefits under the food stamp program and the

amount of such benefits without regard to the participating

family.

(iii) In computing such individuals' income for purposes of

determining eligibility (under section 2014(c)(1) of this title)

and benefits, the State agency shall apply the maximum excess

shelter expense deduction specified under section 2014(e) of this

title.

(iv) Such individuals' monthly allotment shall be the higher of

$10 or 75 percent of the amount calculated following the

standards of the food stamp program and the foregoing

requirements of this subparagraph, rounded to the nearest lower

whole dollar.

(4) The Project shall include education, employment, and

training services equivalent to those offered under the

employment and training program described in section 2015(d)(4)

of this title to families similar to participating families

elsewhere in the State.

(5) The State may select families for participation in the

Project through submission and approval of an application for

participation in the Project or by assigning to the Project

families that are determined eligible for or are participating in

the program authorized by part A of title IV of the Social

Security Act or the food stamp program.

(6) Whenever selection for participation in the Project is

accomplished through submission and approval of an application

for the Project -

(A) the State shall promptly determine eligibility for the

Project, and issue assistance to eligible families, retroactive

to the date of application, not later than thirty days

following the family's filing of an application;

(B) in the case of families determined ineligible for the

Project upon application, the application for the Project shall

be deemed an application for the food stamp program, and

benefits under the food stamp program shall be issued to those

found eligible following the standards established under the

food stamp program;

(C) expedited benefits shall be provided under terms no more

restrictive than under paragraph (9) of section 2020(e) of this

title and the laws of Minnesota and shall include expedited

issuance of designated food assistance provided through the

Project or expedited benefits through the food stamp program;

(D) each individual who contacts the State in person during

office hours to make what may reasonably be interpreted as an

oral or written request to receive financial assistance shall

receive and shall be permitted to file an application form on

the same day such contact is first made;

(E) provision shall be made for telephone contact by, mail

delivery of forms to and mail return of forms by, and

subsequent home or telephone interview with, elderly

individuals, physically or mentally handicapped individuals,

and individuals otherwise unable to appear in person solely

because of transportation difficulties and similar hardships;

(F) a family may be represented by another person if the

other person has clearly been designated as the representative

of such family for that purpose and the representative is an

adult who is sufficiently aware of relevant circumstances,

except that the State may -

(i) restrict the number of families who may be represented

by such person; and

(ii) otherwise establish criteria and verification

standards for representation under this subparagraph; and

(G) the State shall provide a method for reviewing

applications to participate in the Project submitted by, and

distributing assistance under the Project to, families that do

not reside in permanent dwellings or who have no fixed mailing

address.

(7) Whenever selection for participation in the Project is

accomplished by assigning families that are determined eligible

for or participating in the program authorized by part A of title

IV of the Social Security Act or the food stamp program -

(A) the State shall provide eligible families assistance

under the Project no later than benefits would have been

provided following the standards established under the food

stamp program; and

(B) the State shall ensure that assistance under the Project

is provided so that there is no interruption in benefits for

families participating in the program under part A of title IV

of the Social Security Act or the food stamp program.

(8) Paragraphs (1)(B) and (8) of section 2020(e) of this title

shall apply with respect to applicants and participating families

in the same manner as such paragraphs apply with respect to

applicants and participants in the food stamp program.

(9) Assistance provided under the Project shall be reduced to

reflect the pro rata value of any coupons received under the food

stamp program for the same period.

(10)(A) The State shall provide each family or family member

whose participation in the Project ends and each family whose

participation is terminated with notice of the existence of the

food stamp program and the person or agency to contact for more

information.

(B)(i) Following the standards specified in subparagraph (C),

the State shall ensure that benefits under the food stamp program

are provided to participating families in case the Project is

terminated or to participating families or family members that

are determined ineligible for the Project because of income,

resources, or change in household composition, if such families

or individuals are determined eligible for the food stamp

program. Food coupons shall be issued to eligible families and

individuals described in this clause retroactive to the date of

termination from the Project; and

(ii) If sections 256.031 through 256.036 of the Minnesota

Statutes, 1989 Supplement, or Minnesota Laws 1989, chapter 282,

article 5, section 130, are amended to reduce or eliminate

benefits provided under those sections or restrict the rights of

Project applicants or participating families, the State shall

exclude from the Project applicants or participating families or

individuals affected by such amendments and follow the standards

specified in subparagraph (C), except that the State shall

continue to pay from State funds an amount equal to the food

assistance portion to such families and individuals until the

State determines eligibility or ineligibility for the food stamp

program or the family or individual has failed to supply the

needed additional information within ten days. Food coupons

shall be provided to families and individuals excluded from the

Project under this clause who are determined eligible for the

food stamp program retroactive to the date of the determination

of eligibility. The Secretary shall pay to the State the value

of the food coupons for which such families and individuals would

have been eligible in the absence of food assistance payments

under this clause from the date of termination from the Project

to the date food coupons are provided.

(C) Each family whose Project participation is terminated shall

be screened for potential eligibility for the food stamp program

and if the screening indicates potential eligibility, the family

or family member shall be given a specific request to supply all

additional information needed to determine such eligibility and

assistance in completing a signed food stamp program application

including provision of any relevant information obtained by the

State for purpose of the Project. If the family or family member

supplies such additional information within ten days after

receiving the request, the State shall, within five days after

the State receives such information, determine whether the family

or family member is eligible for the food stamp program. Each

family or family member who is determined through the screening

or otherwise to be ineligible for the food stamp program shall be

notified of that determination.

(11) Section 2020(e)(10) of this title shall apply with respect

to applicant and participating families in the same manner as

such paragraph applies with respect to applicants and

participants in the food stamp program, except that families

shall be given notice of any action for which a hearing is

available in a manner consistent with the notice requirements of

the regulations implementing sections 402(a)(4) and 482(h)

(FOOTNOTE 1) of the Social Security Act (42 U.S.C. 602(a)(4)).

(12) For each fiscal year, the Secretary shall not be liable

for any costs related to carrying out the Project in excess of

those that the Secretary would have been liable for had the

Project not been implemented, except for costs for evaluating the

Project, but shall adjust for the full amount of the federal

share of increases or decreases in costs that result from changes

in economic, demographic, and other conditions in the State based

on data specific to the State, changes in eligibility or benefit

levels authorized by this chapter, or changes in amounts of

Federal funds available to States and localities under the food

stamp program.

(13) The State shall carry out the food stamp program

throughout the State while the State carries out the Project.

(14)(A) Except as provided in subparagraph (B), the State will

carry out the Project during a five-year period beginning on the

date the first family receives assistance under the Project.

(B) The Project may be terminated -

(i) by the State one hundred and eighty days after the State

gives notice to the Secretary that it intends to terminate the

Project;

(ii) by the Secretary one hundred and eighty days after the

Secretary, after notice and an opportunity for a hearing,

determines that the State materially failed to comply with this

section; or

(iii) whenever the State and the Secretary jointly agree to

terminate the Project.

(15) Not more than six thousand families may participate in the

Project simultaneously.

(c) Additional terms and conditions of Project

The Project shall be subject to the following additional terms

and conditions:

(1) The State may require any parent in a participating family

to participate in education, employment, or training requirements

unless the individual is a parent in a family with one parent who

-

(A) is ill, incapacitated, or sixty years of age or older;

(B) is needed in the home because of the illness or

incapacity of another family member;

(C) is the parent of a child under one year of age and is

personally providing care for the child;

(D) is the parent of a child under six years of age and is

employed or participating in education or employment and

training services for twenty or more hours a week;

(E) works thirty or more hours a week or, if the number of

hours worked cannot be verified, earns at least the Federal

minimum hourly wage rate multiplied by thirty per week; or

(F) is in the second or third trimester of pregnancy.

(2) The State shall not require any parent of a child under six

years of age in a participating family with only one parent to be

employed or participate in education or employment and training

services for more than twenty hours a week.

(3) For any period during which an individual required to

participate in education, employment, or training requirements

fails to comply without good cause with a requirement imposed by

the State under paragraph (1), the amount of assistance to the

family under the Project may be reduced by an amount not more

than 10 percent of the assistance the family would be eligible

for with no income other than that from the Project.

(d) Funding

(1) If an application submitted under subsection (a) of this

section complies with the requirements specified in subsection (b)

of this section, then the Secretary shall -

(A) approve such application; and

(B) subject to subsection (b)(12) of this section from the

funds appropriated under this chapter provide grant awards and

pay the State each calendar quarter for -

(i) the cost of food assistance provided under the Project

equal to the amount that would have otherwise been issued in

the form of coupons under the food stamp program had the

Project not been implemented, as estimated under a methodology

satisfactory to the Secretary after negotiations with the

State; and

(ii) the administrative costs incurred by the State to

provide food assistance under the Project that are authorized

under subsections (a), (g), (h)(2), and (h)(3) of section 2025

of this title equal to the amount that otherwise would have

been paid under such subsections had the Project not been

implemented, as estimated under a methodology satisfactory to

the Secretary after negotiations with the State: Provided, That

payments made under subsection (g) of section 2025 of this

title shall equal payments that would have been made if the

Project had not been implemented.

(2) The Secretary shall periodically adjust payments made to the

State under paragraph (1) to reflect -

(A) the cost of coupons issued to individuals ineligible for

the Project specified in subsection (b)(3)(E) of this section in

excess of the amount that would have been issued to such

individuals had the Project not been implemented, as estimated

under a methodology satisfactory to the Secretary after

negotiations with the State; and

(B) the cost of coupons issued to families exercising the

option specified in subsection (b)(3)(D)(iii) of this section in

excess of the amount that would have been issued to such

individuals had the Project not been implemented, as estimated

under a methodology satisfactory to the Secretary after

negotiations with the State.

(3) Payments under paragraph (1)(B) shall include adjustments, as

estimated under a methodology satisfactory to the Secretary after

negotiations with the State, for increases or decreases in the

costs of providing food assistance and associated administrative

costs that result from changes in economic, demographic, or other

conditions in the State based on data specific to the State,

changes in eligibility or benefit levels authorized by this

chapter, and changes in or additional amounts of Federal funds

available to States and localities under the food stamp program.

(e) Waiver

With respect to the Project, the Secretary shall waive compliance

with any requirement contained in this chapter (other than this

section) that, if applied, would prevent the State from carrying

out the Project or effectively achieving its purpose.

(f) Project audits

The Comptroller General of the United States shall -

(1) conduct periodic audits of the operation of the Project to

verify the amounts payable to the State from time to time under

subsection (d) of this section; and

(2) submit to the Secretary, the Secretary of Health and Human

Services, the Committee on Agriculture of the House of

Representatives, and the Committee on Agriculture, Nutrition, and

Forestry of the Senate a report describing the results of each

such audit.

(g) Construction

(1) For purposes of any Federal, State, or local law other than

part A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.) or this chapter -

(A) cash assistance provided under the Project that is

designated as food assistance by the State shall be treated in

the same manner as coupon allotments under the food stamp program

are treated; and

(B) participating families shall be treated in the same manner

as participants in the food stamp program are treated.

(2) Nothing in this section shall -

(A) allow payments made to the State under the Project to be

less than the amounts the State and eligible households within

the State would have received if the Project had not been

implemented; or

(B) require the Secretary to incur costs as a result of the

Project in excess of costs that would have been incurred if the

Project had not been implemented, except for costs for

evaluation.

(h) Quality control

Participating families shall be excluded from any sample taken

for purposes of making any determination under section 2025(c) of

this title. For purposes of establishing the total value of

allotments under section 2025(c)(1) of this title, food coupons and

the amount of federal liability for food assistance provided under

the Project as limited by subsection (b)(12) of this section shall

be treated as allotments issued under the food stamp program.

(i) Evaluation

(1) The State shall develop and implement a plan for an

independent evaluation designed to provide reliable information on

Project impacts and implementation. The evaluation will include

treatment and control groups and will include random assignment of

families to treatment and control groups in an urban setting. The

evaluation plan shall satisfy the evaluation concerns of the

Secretary of Agriculture such as effects on benefits to

participants, costs of the Project, payment accuracy,

administrative consequences, any reduction in welfare dependency,

any reduction in total assistance payments, and the consequences of

cash payments on household expenditures, and food consumption. The

evaluation plan shall take into consideration the evaluation

requirements and administrative obligations of the State. The

evaluation will measure the effects of the Project in regard to

goals of increasing family income, prevention of long-term

dependency, movement toward self-support, and simplification of the

welfare system.

(2) The State shall pay 50 percent of the cost of developing and

implementing such plan and the Federal Government shall pay the

remainder.

(j) Definitions

For purposes of this section, the following definitions apply:

(1) The term ''family'' means the following individuals who

live together: a minor child or a group of minor children related

to each other as siblings, half siblings, stepsiblings, or

adopted siblings, together with their natural or adoptive

parents, or their caregiver. Family also includes a pregnant

woman in the third trimester of pregnancy with no children.

(2) The term ''contract'' means a plan to help a family pursue

self-sufficiency, based on the State's assessment of the family's

needs and abilities and developed with a parental caregiver.

(3) The term ''caregiver'' means a minor child's natural or

adoptive parent or parents who live in the home with the minor

child. For purposes of determining eligibility for the Project,

''caregiver'' also means any of the following individuals who

live with and provide care and support to a minor child when the

minor child's natural or adoptive parent or parents do not reside

in the same home: grandfather, grandmother, brother, sister,

stepfather, stepmother, stepbrother, stepsister, uncle, aunt,

first cousin, nephew, niece, persons of preceding generations as

denoted by prefixes of ''great'' or ''great-great'' or a spouse

of any person named in the above groups even after the marriage

ends by death or divorce.

(4) The term ''State'' means the State of Minnesota.

-SOURCE-

(Pub. L. 88-525, Sec. 22, as added Pub. L. 101-202, Dec. 6, 1989,

103 Stat. 1796; amended Pub. L. 102-237, title IX, Sec. 941(11),

Dec. 13, 1991, 105 Stat. 1893; Pub. L. 107-171, title IV, Sec.

4118(d), May 13, 2002, 116 Stat. 321.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (a), (b)(2),

(3)(A), (B)(ii), (iii), (C)(ii), (iii), (5), (7), and (g)(1), 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. Part F of title IV of the Act was classified generally

to part F (Sec. 681 et seq.) of subchapter IV of chapter 7 of Title

42, prior to repeal by Pub. L. 104-193, title I, Sec. 108(e), Aug.

22, 1996, 110 Stat. 2167. For complete classification of this Act

to the Code, see section 1305 of Title 42 and Tables.

Section 482 of the Social Security Act, referred to in subsec.

(b)(11), was classified to section 682 of Title 42, The Public

Health and Welfare, prior to repeal by Pub. L. 104-193, title I,

Sec. 108(e), Aug. 22, 1996, 110 Stat. 2167.

-MISC2-

AMENDMENTS

Subsec. (h). Pub. L. 107-171 substituted ''section 2025(c)(1) of

this title'' for ''section 2025(c)(1)(C) of this title'' and struck

out ''Payments for administrative costs incurred by the State shall

be included for purposes of establishing the adjustment under

section 2025(c)(1)(A) of this title.'' at end.

1991 - Pub. L. 102-237, Sec. 941(11)(A), inserted section

catchline.

Subsec. (d)(2)(B). Pub. L. 102-237, Sec. 941(11)(B), substituted

''subsection (b)(3)(D)(iii)'' for ''paragraph (b)(3)(D)(iii)''.

Subsec. (h). Pub. L. 102-237, Sec. 941(11)(C), substituted

''subsection (b)(12)'' for ''subsection b(12)''.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by 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.''

Amendment by 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 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.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(f)(2) of this section relating to submitting reports on periodic

audits to certain committees of Congress, see section 3003 of Pub.

L. 104-66, as amended, set out as a note under section 1113 of

Title 31, Money and Finance, and page 2 of House Document No.

103-7.

-CITE-

7 USC Sec. 2032 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2032. Automated data processing and information retrieval

systems

-STATUTE-

(a) Standards and procedures for reviews

(1) Initial reviews

(A) In general

Not later than 1 year after November 28, 1990, the Secretary

shall complete a review of regulations and standards (in effect

on November 28, 1990) for the approval of an automated data

processing and information retrieval system maintained by a

State (hereinafter in this section referred to as a ''system'')

to determine the extent to which the regulations and standards

contribute to a more effective and efficient program.

(B) Revision of regulations

The Secretary shall revise regulations (in effect on November

28, 1990) to take into account the findings of the review

conducted under subparagraph (A).

(C) Incorporation of existing systems

The regulations shall require States to incorporate all or

part of systems in use elsewhere, unless a State documents that

the design and operation of an alternative system would be less

costly. The Secretary shall establish standards to define the

extent of modification of the systems for which payments will

be made under either section 2025(a) or 2025(g) of this title.

(D) Implementation

Proposed systems shall meet standards established by the

Secretary for timely implementation of proper changes.

(E) Cost effectiveness

Criteria for the approval of a system under section 2025(g)

of this title shall include the cost effectiveness of the

proposed system. On implementation of the approved system, a

State shall document the actual cost and benefits of the

system.

(2) Operational reviews

The Secretary shall conduct such reviews as are necessary to

ensure that systems -

(A) comply with conditions of initial funding approvals; and

(B) adequately support program delivery in compliance with

this chapter and regulations issued under this chapter.

(b) Standards for approval of systems

(1) In general

After conducting the review required under subsection (a) of

this section, the Secretary shall establish standards for

approval of systems.

(2) Implementation

A State shall implement the standards established by the

Secretary within a reasonable period of time, as determined by

the Secretary.

(3) Periodic compliance reviews

The Secretary shall conduct appropriate periodic reviews of

systems to ensure compliance with the standards established by

the Secretary.

(c) Report

Not later than October 1, 1993, the Secretary shall report to the

Committee on Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the Senate on

the extent to which State agencies have developed and are operating

effective systems that support food stamp program delivery in

compliance with this chapter and regulations issued under this

chapter.

-SOURCE-

(Pub. L. 88-525, Sec. 23, as added Pub. L. 101-624, title XVII,

Sec. 1763(a), Nov. 28, 1990, 104 Stat. 3805.)

-COD-

CODIFICATION

November 28, 1990, referred to in subsec. (a)(1)(B), was in the

original ''the date of enactment of this Act'', which was

translated as meaning the date of enactment of Pub. L. 101-624,

which enacted this section, to reflect the probable intent of

Congress.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2020 of this title.

-CITE-

7 USC Sec. 2033 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2033. Repealed. Pub. L. 107-171, title IV, Sec. 4124(b), May

13, 2002, 116 Stat. 326

-MISC1-

Section, Pub. L. 88-525, Sec. 24, as added Pub. L. 104-127, title

IV, Sec. 401(g), Apr. 4, 1996, 110 Stat. 1027, related to payments

by the Secretary to the Territory of American Samoa for fiscal

years 1996 through 2002 to finance expenditures for nutrition

assistance program extended under section 1469d(c) of title 48.

EFFECTIVE DATE OF REPEAL

Repeal effective May 13, 2002 and applicable beginning on Oct. 1,

2002, see section 4124(c), (d) of Pub. L. 107-171, set out as an

Effective Date of 2002 Amendment note under section 2028 of this

title.

-CITE-

7 USC Sec. 2034 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2034. Assistance for community food projects

-STATUTE-

(a) ''Community food projects'' defined

In this section, the term ''community food project'' means a

community-based project that requires a 1-time infusion of Federal

assistance to become self-sustaining and that is designed to -

(1)(A) meet the food needs of low-income people;

(B) increase the self-reliance of communities in providing for

their own food needs; and

(C) promote comprehensive responses to local food, farm, and

nutrition issues; or

(2) meet specific State, local, or neighborhood food and

agricultural needs, including needs for -

(A) infrastructure improvement and development;

(B) planning for long-term solutions; or

(C) the creation of innovative marketing activities that

mutually benefit agricultural producers and low-income

consumers.

(b) Authority to provide assistance

(1) In general

From amounts made available to carry out this chapter, the

Secretary may make grants to assist eligible private nonprofit

entities to establish and carry out community food projects.

(2) Limitation on grants

The total amount of funds provided as grants under this section

may not exceed -

(A) $1,000,000 for fiscal year 1996; and

(B) $5,000,000 for each of fiscal years 1997 through 2007.

(c) Eligible entities

To be eligible for a grant under subsection (b) of this section,

a private nonprofit entity must -

(1) have experience in the area of -

(A) community food work, particularly concerning small and

medium-sized farms, including the provision of food to people

in low-income communities and the development of new markets in

low-income communities for agricultural producers; or

(B) job training and business development activities for

food-related activities in low-income communities;

(2) demonstrate competency to implement a project, provide

fiscal accountability, collect data, and prepare reports and

other necessary documentation; and

(3) demonstrate a willingness to share information with

researchers, practitioners, and other interested parties.

(d) Preference for certain projects

In selecting community food projects to receive assistance under

subsection (b) of this section, the Secretary shall give a

preference to projects designed to -

(1) develop linkages between 2 or more sectors of the food

system;

(2) support the development of entrepreneurial projects;

(3) develop innovative linkages between the for-profit and

nonprofit food sectors; or

(4) encourage long-term planning activities, and multisystem,

interagency approaches with multistakeholder collaborations, that

build the long-term capacity of communities to address the food

and agricultural problems of the communities, such as food policy

councils and food planning associations.

(e) Matching funds requirements

(1) Requirements

The Federal share of the cost of establishing or carrying out a

community food project that receives assistance under subsection

(b) of this section may not exceed 50 percent of the cost of the

project during the term of the grant.

(2) Calculation

In providing for the non-Federal share of the cost of carrying

out a community food project, the entity receiving the grant

shall provide for the share through a payment in cash or in kind,

fairly evaluated, including facilities, equipment, or services.

(3) Sources

An entity may provide for the non-Federal share through State

government, local government, or private sources.

(f) Term of grant

(1) Single grant

A community food project may be supported by only a single

grant under subsection (b) of this section.

(2) Term

The term of a grant under subsection (b) of this section may

not exceed 3 years.

(g) Technical assistance and related information

(1) Technical assistance

In carrying out this section, the Secretary may provide

technical assistance regarding community food projects,

processes, and development to an entity seeking the assistance.

(2) Sharing information

(A) In general

The Secretary may provide for the sharing of information

concerning community food projects and issues among and between

government, private for-profit and nonprofit groups, and the

public through publications, conferences, and other appropriate

forums.

(B) Other interested parties

The Secretary may share information concerning community food

projects with researchers, practitioners, and other interested

parties.

(h) Innovative programs for addressing common community problems

(1) In general

The Secretary shall offer to enter into a contract with, or

make a grant to, 1 nongovernmental organization that meets the

requirements of paragraph (2) to coordinate with Federal

agencies, States, political subdivisions, and nongovernmental

organizations (collectively referred to in this subsection as

''targeted entities'') to gather information, and recommend to

the targeted entities, innovative programs for addressing common

community problems, including -

(A) loss of farms and ranches;

(B) rural poverty;

(C) welfare dependency;

(D) hunger;

(E) the need for job training; and

(F) the need for self-sufficiency by individuals and

communities.

(2) Nongovernmental organization

The nongovernmental organization referred to in paragraph (1)

shall -

(A) be selected by the Secretary on a competitive basis;

(B) be experienced in working with other targeted entities

and in organizing workshops that demonstrate programs to other

targeted entities;

(C) be experienced in identifying programs that effectively

address community problems described in paragraph (1) that can

be implemented by other targeted entities;

(D) be experienced in, and capable of, receiving information

from and communicating with other targeted entities throughout

the United States;

(E) be experienced in operating a national information

clearinghouse that addresses 1 or more of the community

problems described in paragraph (1); and

(F) as a condition of entering into the contract or receiving

the grant referred to in paragraph (1), agree -

(i) to contribute in-kind resources toward implementation

of the contract or grant;

(ii) to provide to other targeted entities information and

guidance on the innovative programs referred to in paragraph

(1); and

(iii) to operate a national information clearinghouse on

innovative means for addressing community problems described

in paragraph (1) that -

(I) is easily usable by -

(aa) Federal, State, and local government agencies;

(bb) local community leaders;

(cc) nongovernmental organizations; and

(dd) the public; and

(II) includes information on approved community food

projects.

(3) Audits; effective use of funds

The Secretary shall establish auditing procedures and otherwise

ensure the effective use of funds made available to carry out

this subsection.

(4) Funding

Not later than 90 days after May 13, 2002, and on October 1 of

each of fiscal years 2003 through 2007, the Secretary shall

allocate to carry out this subsection $200,000 of the funds made

available under subsection (b) of this section, to remain

available until expended.

-SOURCE-

(Pub. L. 88-525, Sec. 25, as added Pub. L. 104-127, title IV, Sec.

401(h), Apr. 4, 1996, 110 Stat. 1027; amended Pub. L. 107-171,

title IV, Sec. 4125(a), May 13, 2002, 116 Stat. 326.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 4125(a)(1), designated

pars. (1) to (3) as subpars. (A) to (C) of par. (1), respectively,

and added par. (2).

Subsec. (b)(2)(B). Pub. L. 107-171, Sec. 4125(a)(2), substituted

''$5,000,000'' for ''$2,500,000'' and ''2007'' for ''2002''.

Subsec. (d)(4). Pub. L. 107-171, Sec. 4125(a)(3), added par. (4)

and struck out former par. (4) which read as follows: ''encourage

long-term planning activities and multi-system, interagency

approaches.''

Subsec. (h). Pub. L. 107-171, Sec. 4125(a)(4), added subsec. (h)

and struck out heading and text of former subsec. (h). Text read as

follows:

''(1) In general. - The Secretary shall provide for the

evaluation of the success of community food projects supported

using funds under this section.

''(2) Report. - Not later than January 30, 2002, the Secretary

shall submit a report to Congress regarding the results of the

evaluation.''

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4125(b), May 13, 2002, 116 Stat.

327, provided that: ''The amendments made by this section (amending

this section) take effect on the date of enactment of this Act (May

13, 2002).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3315 of this title.

-CITE-

7 USC Sec. 2035 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2035. Simplified Food Stamp Program

-STATUTE-

(a) ''Federal costs'' defined

In this section, the term ''Federal costs'' does not include any

Federal costs incurred under section 2026 of this title.

(b) Election

Subject to subsection (d) of this section, a State may elect to

carry out a Simplified Food Stamp Program (referred to in this

section as a ''Program''), statewide or in a political subdivision

of the State, in accordance with this section.

(c) Operation of Program

If a State elects to carry out a Program, within the State or a

political subdivision of the State -

(1) a household in which no members receive assistance under a

State program funded under part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.) may not participate in the

Program;

(2) a household in which all members receive assistance under a

State program funded under part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.) shall automatically be

eligible to participate in the Program;

(3) if approved by the Secretary, a household in which 1 or

more members but not all members receive assistance under a State

program funded under part A of title IV of the Social Security

Act (42 U.S.C. 601 et seq.) may be eligible to participate in the

Program; and

(4) subject to subsection (f) of this section, benefits under

the Program shall be determined under rules and procedures

established by the State under -

(A) a State program funded under part A of title IV of the

Social Security Act (42 U.S.C. 601 et seq.);

(B) the food stamp program; or

(C) a combination of a State program funded under part A of

title IV of the Social Security Act (42 U.S.C. 601 et seq.) and

the food stamp program.

(d) Approval of Program

(1) State plan

A State agency may not operate a Program unless the Secretary

approves a State plan for the operation of the Program under

paragraph (2).

(2) Approval of plan

The Secretary shall approve any State plan to carry out a

Program if the Secretary determines that the plan -

(A) complies with this section; and

(B) contains sufficient documentation that the plan will not

increase Federal costs for any fiscal year.

(e) Increased Federal costs

(1) Determination

(A) In general

The Secretary shall determine whether a Program being carried

out by a State agency is increasing Federal costs under this

chapter.

(B) No excluded households

In making a determination under subparagraph (A), the

Secretary shall not require the State agency to collect or

report any information on households not included in the

Program.

(C) Alternative accounting periods

The Secretary may approve the request of a State agency to

apply alternative accounting periods to determine if Federal

costs do not exceed the Federal costs had the State agency not

elected to carry out the Program.

(2) Notification

If the Secretary determines that the Program has increased

Federal costs under this chapter for any fiscal year or any

portion of any fiscal year, the Secretary shall notify the State

not later than 30 days after the Secretary makes the

determination under paragraph (1).

(3) Enforcement

(A) Corrective action

Not later than 90 days after the date of a notification under

paragraph (2), the State shall submit a plan for approval by

the Secretary for prompt corrective action that is designed to

prevent the Program from increasing Federal costs under this

chapter.

(B) Termination

If the State does not submit a plan under subparagraph (A) or

carry out a plan approved by the Secretary, the Secretary shall

terminate the approval of the State agency operating the

Program and the State agency shall be ineligible to operate a

future Program.

(f) Rules and procedures

(1) In general

In operating a Program, a State or political subdivision of a

State may follow the rules and procedures established by the

State or political subdivision under a State program funded under

part A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.) or under the food stamp program.

(2) Standardized deductions

In operating a Program, a State or political subdivision of a

State may standardize the deductions provided under section

2014(e) of this title. In developing the standardized deduction,

the State shall consider the work expenses, dependent care costs,

and shelter costs of participating households.

(3) Requirements

In operating a Program, a State or political subdivision shall

comply with the requirements of -

(A) subsections (a) through (g) of section 2016 of this

title;

(B) section 2017(a) of this title (except that the income of

a household may be determined under a State program funded

under part A of title IV of the Social Security Act (42 U.S.C.

601 et seq.));

(C) subsection (FOOTNOTE 1) (b) and (d) of section 2017 of

this title;

(FOOTNOTE 1) So in original. Probably should be

''subsections''.

(D) subsections (a), (c), (d), and (n) of section 2020 of

this title;

(E) paragraphs (8), (12), (16), (18), (20), (24), and (25) of

section 2020(e) of this title;

(F) section 2020(e)(10) of this title (or a comparable

requirement established by the State under a State program

funded under part A of title IV of the Social Security Act (42

U.S.C. 601 et seq.)); and

(G) section 2025 of this title.

(4) Limitation on eligibility

Notwithstanding any other provision of this section, a

household may not receive benefits under this section as a result

of the eligibility of the household under a State program funded

under part A of title IV of the Social Security Act (42 U.S.C.

601 et seq.), unless the Secretary determines that any household

with income above 130 percent of the poverty guidelines is not

eligible for the program.

-SOURCE-

(Pub. L. 88-525, Sec. 26, as added Pub. L. 104-193, title VIII,

Sec. 854(a), Aug. 22, 1996, 110 Stat. 2340.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (c) and (f), 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. For complete classification of this Act to the Code,

see section 1305 of Title 42 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2016, 2020, 2026 of this

title.

-CITE-

7 USC Sec. 2036 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 51 - FOOD STAMP PROGRAM

-HEAD-

Sec. 2036. Availability of commodities for emergency food

assistance program

-STATUTE-

(a) Purchase of commodities

From amounts made available to carry out this chapter, for each

of fiscal years 2002 through 2007, the Secretary shall purchase

$140,000,000 of a variety of nutritious and useful commodities of

the types that the Secretary has the authority to acquire through

the Commodity Credit Corporation or under section 612c of this

title and distribute the commodities to States for distribution in

accordance with section 7515 of this title.

(b) Basis for commodity purchases

In purchasing commodities under subsection (a) of this section,

the Secretary shall, to the extent practicable and appropriate,

make purchases based on -

(1) agricultural market conditions;

(2) preferences and needs of States and distributing agencies;

and

(3) preferences of recipients.

-SOURCE-

(Pub. L. 88-525, Sec. 27, as added Pub. L. 104-193, title VIII,

Sec. 871(g), Aug. 22, 1996, 110 Stat. 2346; amended Pub. L.

107-171, title IV, Sec. 4126(a), May 13, 2002, 116 Stat. 328.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171 substituted ''2002 through

2007'' for ''1997 through 2002'' and ''$140,000,000'' for

''$100,000,000''.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-171, title IV, Sec. 4126(b), May 13, 2002, 116 Stat.

328, provided that: ''The amendments made by this section amending

this section) take effect on October 1, 2001.''

-CITE-