
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC2025]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 51--FOOD STAMP PROGRAM
 
Sec. 2025. Administrative cost-sharing and quality control


(a) Administrative costs

    Subject to subsection (k) of this section, the Secretary is 
authorized to pay to each State agency an amount equal to 50 per centum 
of all administrative costs involved in each State agency's operation of 
the food stamp program, which costs shall include, but not be limited 
to, the cost of (1) the certification of applicant households, (2) the 
acceptance, storage, protection, control, and accounting of coupons 
after their delivery to receiving points within the State, (3) the 
issuance of coupons to all eligible households, (4) food stamp 
informational activities, including those undertaken under section 
2020(e)(1)(A) of this title, but not including recruitment activities, 
(5) fair hearings, (6) automated data processing and information 
retrieval systems subject to the conditions set forth in subsection (g) 
of this section, (7) food stamp program investigations and prosecutions, 
and (8) implementing and operating the immigration status verification 
system established under section 1137(d) of the Social Security Act (42 
U.S.C. 1320b-7(d)): Provided, That the Secretary is authorized at the 
Secretary's discretion to pay any State agency administering the food 
stamp program on all or part of an Indian reservation under section 
2020(d) of this title or in a Native village within the State of Alaska 
identified in section 1610(b) of title 43.\1\ such amounts for 
administrative costs as the Secretary determines to be necessary for 
effective operation of the food stamp program, as well as to permit each 
State to retain 35 percent of the value of all funds or allotments 
recovered or collected pursuant to sections 2015(b) and 2022(c) of this 
title and 20 percent of the value of any other funds or allotments 
recovered or collected, except the value of funds or allotments 
recovered or collected that arise from an error of a State agency. The 
officials responsible for making determinations of ineligibility under 
this chapter shall not receive or benefit from revenues retained by the 
State under the provisions of this subsection.
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    \1\ So in original. The period probably should not appear.
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(b) Work supplementation or support program

       (1) ``Work supplementation or support program'' defined

        In this subsection, the term ``work supplementation or support 
    program'' means a program under which, as determined by the 
    Secretary, public assistance (including any benefits provided under 
    a program established by the State and the food stamp program) is 
    provided to an employer to be used for hiring and employing a public 
    assistance recipient who was not employed by the employer at the 
    time the public assistance recipient entered the program.

                             (2) Program

        A State agency may elect to use an amount equal to the allotment 
    that would otherwise be issued to a household under the food stamp 
    program, but for the operation of this subsection, for the purpose 
    of subsidizing or supporting a job under a work supplementation or 
    support program established by the State.

                            (3) Procedure

        If a State agency makes an election under paragraph (2) and 
    identifies each household that participates in the food stamp 
    program that contains an individual who is participating in the work 
    supplementation or support program--
            (A) the Secretary shall pay to the State agency an amount 
        equal to the value of the allotment that the household would be 
        eligible to receive but for the operation of this subsection;
            (B) the State agency shall expend the amount received under 
        subparagraph (A) in accordance with the work supplementation or 
        support program in lieu of providing the allotment that the 
        household would receive but for the operation of this 
        subsection;
            (C) for purposes of--
                (i) sections 2014 and 2017(a) of this title, the amount 
            received under this subsection shall be excluded from 
            household income and resources; and
                (ii) section 2017(b) of this title, the amount received 
            under this subsection shall be considered to be the value of 
            an allotment provided to the household; and

            (D) the household shall not receive an allotment from the 
        State agency for the period during which the member continues to 
        participate in the work supplementation or support program.

                     (4) Other work requirements

        No individual shall be excused, by reason of the fact that a 
    State has a work supplementation or support program, from any work 
    requirement under section 2015(d) of this title, except during the 
    periods in which the individual is employed under the work 
    supplementation or support program.

                     (5) Length of participation

        A State agency shall provide a description of how the public 
    assistance recipients in the program shall, within a specific period 
    of time, be moved from supplemented or supported employment to 
    employment that is not supplemented or supported.

                          (6) Displacement

        A work supplementation or support program shall not displace the 
    employment of individuals who are not supplemented or supported.

(c) Payment error improvement system; purposes, establishment, 
        definitions, implementation, etc.

    (1) The program authorized under this chapter shall include a system 
that enhances payment accuracy by establishing fiscal incentives that 
require State agencies with high error rates to share in the cost of 
payment error and provide enhanced administrative funding to States with 
the lowest error rates. Under such system--
        (A) the Secretary shall 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 percent 
    under the proviso in the first sentence of subsection (a) of this 
    section or under subsection (g) of this section, by increasing such 
    share of all such administrative costs by one percentage point to a 
    maximum of 60 percent of all such administrative costs for each full 
    one-tenth of a percentage point by which the payment error rate is 
    less than 6 percent, except that only States whose rate of invalid 
    decisions in denying eligibility is less than a nationwide 
    percentage that the Secretary determines to be reasonable shall be 
    entitled to the adjustment prescribed in this subsection;
        (B) the Secretary shall foster management improvements by the 
    States by requiring State agencies other than those receiving 
    adjustments under subparagraph (A) to develop and implement 
    corrective action plans to reduce payment errors; and
        (C) for any fiscal year in which a State agency's payment error 
    rate exceeds the national performance measure for payment error 
    rates announced under paragraph (6), other than for good cause 
    shown, the State agency shall pay to the Secretary an amount equal 
    to--
            (i) \2\ the product of--
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    \2\ So in original. No cl. (ii) has been enacted.
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                (I) the value of all allotments issued by the State 
            agency in the fiscal year; times
                (II) the lesser of--
                    (aa) the ratio of--
                        (aaa) the amount by which the payment error rate 
                    of the State agency for the fiscal year exceeds the 
                    national performance measure for the fiscal year; to
                        (bbb) the national performance measure for the 
                    fiscal year, or

                    (bb) 1; times

                (III) the amount by which the payment error rate of the 
            State agency for the fiscal year exceeds the national 
            performance measure for the fiscal year.

    The amount of liability shall not be affected by corrective action 
    under subparagraph (B).

    (2) 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) 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) 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. 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) 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. 
The Secretary shall initiate efforts to collect the amount owed by the 
State agency as a claim established under paragraph (1)(C) 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) At the time the Secretary makes the notification to State 
agencies of their error rates and incentive payments or claims pursuant 
to paragraphs (1)(A) and (1)(C), 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 (5) 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 (5). 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. The announced national performance measure 
shall be used in determining the State share of the cost of payment 
error under paragraph (1)(C) for the fiscal year whose error rates are 
being announced under paragraph (5).
    (7) If the Secretary asserts a financial claim against a State 
agency under paragraph (1)(C), the State may seek administrative and 
judicial review of the action pursuant to section 2023 of this title.
    (8)(A) This paragraph applies to the determination of whether a 
payment is due by a State agency for a fiscal year under paragraph 
(1)(C).
    (B) Not later than 180 days after the end of the fiscal year, the 
case review and all arbitrations of State-Federal difference cases shall 
be completed.
    (C) Not later than 30 days thereafter, the Secretary shall--
        (i) determine final error rates, the national average payment 
    error rate, and the amounts of payment claimed against State 
    agencies; and
        (ii) notify State agencies of the payment claims.

    (D) A State agency desiring to appeal a payment claim 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; and
        (ii) evidence in support of the appeal of the State agency, not 
    later than 60 days after receiving a notice of the claim.

    (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 under this paragraph, the administrative 
law judge shall consider all grounds for denying the claim, in whole or 
in part, including the contention of a State agency that the claim 
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) 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) Assessment and evaluation of payment error improvement system

    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.

(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 fiscal year 2002--
                (I) $90,000,000; and
                (II) an additional amount of $75,000,000.

        (B) Allocation.--
            (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.

        (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) Use of funds.--Of the amount of funds a State agency 
    receives under subparagraphs (A) through (D) for a fiscal year, not 
    less than 80 percent of the funds shall be used by the State agency 
    during the fiscal year to serve 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.

        (F) Maintenance of effort.--To receive an allocation of an 
    additional amount made available under subclause (II) of each of 
    clauses (iii) through (vii) of subparagraph (A), a State agency 
    shall maintain the expenditures of the State agency for employment 
    and training programs and workfare programs for any fiscal year 
    under paragraph (2), and administrative expenses described in 
    section 2029(g)(1) of this title, at a level that is not less than 
    the level of the expenditures by the State agency to carry out the 
    programs and such expenses for fiscal year 1996.
        (G) Component costs.--The Secretary shall monitor State 
    agencies' expenditure of funds for employment and training programs 
    provided under this paragraph, including the costs of individual 
    components of State agencies' programs. The Secretary may determine 
    the reimbursable costs of employment and training components, and, 
    if the Secretary makes such a determination, the Secretary shall 
    determine that the amounts spent or planned to be spent on the 
    components reflect the reasonable cost of efficiently and 
    economically providing components appropriate to recipient 
    employment and training needs, taking into account, as the Secretary 
    deems appropriate, prior expenditures on the components, the 
    variability of costs among State agencies' components, the 
    characteristics of the recipients to be served, and such other 
    factors as the Secretary considers necessary.

    (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 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 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 2002, 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 
            2002, subparagraph (A) applies.

                    (4) Appeal of determinations

        (A) In general

            Not later than 5 days after the date on which the Secretary 
        of Health and Human Services makes any determination required by 
        paragraph (2) with respect to a State, the Secretary shall 
        notify the chief executive officer of the State of the 
        determination.

        (B) Review by administrative law judge

            (i) In general

                Not later than 60 days after the date on which a State 
            receives notice under subparagraph (A) of a determination, 
            the State may appeal the determination, in whole or in part, 
            to an administrative law judge of the Department of Health 
            and Human Services by filing an appeal with the 
            administrative law judge.
            (ii) Documentation

                The administrative law judge shall consider an appeal 
            filed by a State under clause (i) on the basis of such 
            documentation as the State may submit and as the 
            administrative law judge may require to support the final 
            decision of the administrative law judge.
            (iii) Review

                In deciding whether to uphold a determination, in whole 
            or in part, the administrative law judge shall conduct a 
            thorough review of the issues and take into account all 
            relevant evidence.
            (iv) Deadline

                Not later than 60 days after the date on which the 
            record is closed, the administrative law judge shall--
                    (I) make a final decision with respect to an appeal 
                filed under clause (i); and
                    (II) notify the chief executive officer of the State 
                of the decision.

        (C) Review by Departmental Appeals Board

            (i) In general

                Not later than 30 days after the date on which a State 
            receives notice under subparagraph (B) of a final decision, 
            the State may appeal the decision, in whole or in part, to 
            the Departmental Appeals Board established in the Department 
            of Health and Human Services (referred to in this paragraph 
            as the ``Board'') by filing an appeal with the Board.
            (ii) Review

                The Board shall review the decision on the record.
            (iii) Deadline

                Not later than 60 days after the date on which the 
            appeal is filed, the Board shall--
                    (I) make a final decision with respect to an appeal 
                filed under clause (i); and
                    (II) notify the chief executive officer of the State 
                of the decision.

        (D) Judicial review

            The determinations of the Secretary of Health and Human 
        Services under paragraph (2), and a final decision of the 
        administrative law judge or Board under subparagraphs (B) and 
        (C), respectively, shall not be subject to judicial review.

        (E) Reduced payments pending appeal

            The pendency of an appeal under this paragraph shall not 
        affect the requirement that the Secretary reduce payments in 
        accordance with paragraph (3).

               (5) Allocation of administrative costs

        (A) In general

            No funds or expenditures described in subparagraph (B) may 
        be used to pay for costs--
                (i) eligible for reimbursement under subsection (a) of 
            this section (or costs that would have been eligible for 
            reimbursement but for this subsection); and
                (ii) allocated for reimbursement to the food stamp 
            program under a plan submitted by a State to the Secretary 
            of Health and Human Services to allocate administrative 
            costs for public assistance programs.

        (B) Funds and expenditures

            Subparagraph (A) applies to--
                (i) funds made available to carry out part A of title 
            IV, or title XX, of the Social Security Act (42 U.S.C. 601 
            et seq., 1397 et seq.);
                (ii) expenditures made as qualified State expenditures 
            (as defined in section 409(a)(7)(B) of that Act (42 U.S.C. 
            609(a)(7)(B)));
                (iii) any other Federal funds (except funds provided 
            under subsection (a) of this section); and
                (iv) any other State funds that are--
                    (I) expended as a condition of receiving Federal 
                funds; or
                    (II) used to match Federal funds under a Federal 
                program other than the food stamp program.

(Pub. L. 88-525, Sec. 16, Aug. 31, 1964, 78 Stat. 709; Pub. L. 90-91 
Secs. 1, 2, Sept. 27, 1967, 81 Stat. 228; Pub. L. 90-552, Oct. 8, 1968, 
82 Stat. 958; Pub. L. 91-116, Nov. 13, 1969, 83 Stat. 191; Pub. L. 91-
671, Sec. 9, Jan. 11, 1971, 84 Stat. 2052; Pub. L. 93-86, Sec. 3(j), 
Aug. 10, 1973, 87 Stat. 248; Pub. L. 95-113, title XIII, Sec. 1301, 
Sept. 29, 1977, 91 Stat. 976; Pub. L. 96-58, Secs. 4, 6, Aug. 14, 1979, 
93 Stat. 391; Pub. L. 96-249, title I, Secs. 121, 125, 126, 128, 129, 
May 26, 1980, 94 Stat. 363, 364, 367; Pub. L. 97-35, title I, 
Secs. 111(b), 114, Aug. 13, 1981, 95 Stat. 362, 363; Pub. L. 97-98, 
title XIII, Secs. 1325-1327, Dec. 22, 1981, 95 Stat. 1289; Pub. L. 97-
253, title I, Secs. 179, 180(a), 189(b)(3), (c), Sept. 8, 1982, 96 Stat. 
782, 787; Pub. L. 99-198, title XV, Secs. 1517(c), 1524, 1535(c)(1), 
1537(a), 1539, Dec. 23, 1985, 99 Stat. 1577, 1580, 1585, 1588; Pub. L. 
99-603, title I, Sec. 121(b)(5), Nov. 6, 1986, 100 Stat. 3391; Pub. L. 
100-77, title VIII, Sec. 808(b), July 22, 1987, 101 Stat. 536; Pub. L. 
100-435, title II, Sec. 204(b), title III, Sec. 321(b), (c), title IV, 
Sec. 404(e), (g), title VI, Sec. 604, Sept. 19, 1988, 102 Stat. 1657, 
1662, 1668, 1675; Pub. L. 101-624, title XVII, Secs. 1750, 1752(a), 
1753, Nov. 28, 1990, 104 Stat. 3797, 3798; Pub. L. 102-237, title IX, 
Sec. 941(7), Dec. 13, 1991, 105 Stat. 1892; Pub. L. 103-66, title XIII, 
Secs. 13922(c), 13951(c), 13961, Aug. 10, 1993, 107 Stat. 675, 678, 679; 
Pub. L. 103-296, title I, Sec. 108(f)(2), Aug. 15, 1994, 108 Stat. 1487; 
Pub. L. 104-66, title I, Sec. 1011(j), Dec. 21, 1995, 109 Stat. 710; 
Pub. L. 104-127, title IV, Sec. 401(b), Apr. 4, 1996, 110 Stat. 1026; 
Pub. L. 104-193, title I, Sec. 109(c), title VIII, Secs. 817(b)-(d), 
844(c), 847, 848(a), (b)(2), 849, Aug. 22, 1996, 110 Stat. 2169, 2319, 
2320, 2333-2335; Pub. L. 105-33, title I, Sec. 1002(a), Aug. 5, 1997, 
111 Stat. 252; Pub. L. 105-185, title V, Secs. 501, 502(a), June 23, 
1998, 112 Stat. 575; Pub. L. 106-78, title VII, Sec. 758, Oct. 22, 1999, 
113 Stat. 1172.)

                       References in Text

    The Social Security Act, referred to in subsecs. (e), (g), and (k), 
is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title 
IV of the Act is classified generally to part A (Sec. 601 et seq.) of 
subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. 
Titles XVI, XIX, and XX of the Act are classified generally to 
subchapters XVI (Sec. 1381 et seq.), XIX (Sec. 1396 et seq.), and XX 
(Sec. 1397 et seq.), respectively, of chapter 7 of Title 42. For 
complete classification of this Act to the Code, see section 1305 of 
Title 42 and Tables.

                          Codification

    September 19, 1988, referred to in subsec. (d)(2), was in the 
original ``the date of enactment of this section'', which was translated 
as meaning the date of enactment of Pub. L. 100-435, which enacted 
provisions of this section establishing the payment error improvement 
system, as the probable intent of Congress.


                               Amendments

    1999--Subsec. (a). Pub. L. 106-78, which directed the amendment of 
``the Food Stamp Act (Public Law 95-113, section 16(a))'' by inserting 
``or in a Native village within the State of Alaska identified in 
section 1610(b) of title 43.'' before ``such amounts'', was executed by 
making the amendment to this section, which is section 16(a) of the Food 
Stamp Act of 1977, Pub. L. 88-525, as amended by Pub. L. 95-113, to 
reflect the probable intent of Congress.
    1998--Subsec. (a). Pub. L. 105-185, Sec. 502(a)(1), substituted 
``Subject to subsection (k) of this section, the Secretary'' for ``The 
Secretary'' in first sentence.
    Subsec. (h)(1)(A)(iv)(II). Pub. L. 105-185, Sec. 501(1), substituted 
``$31,000,000'' for ``$131,000,000''.
    Subsec. (h)(1)(A)(v)(II). Pub. L. 105-185, Sec. 501(2), substituted 
``$86,000,000'' for ``$131,000,000''.
    Subsec. (k). Pub. L. 105-185, Sec. 502(a)(2), added subsec. (k).
    1997--Subsec. (h)(1). Pub. L. 105-33 added par. (1) and struck out 
former par. (1) consisting of subpars. (A) to (D) requiring the 
Secretary to reserve for allocation to State agencies specified amounts 
for fiscal years 1996 to 2002 to carry out employment and training 
programs.
    1996--Subsec. (a). Pub. L. 104-193, Secs. 844(c), 847, inserted 
``but not including recruitment activities,'' before ``(5) fair'' and 
substituted ``35 percent of the value of all funds or allotments 
recovered or collected pursuant to sections 2015(b) and 2022(c) of this 
title and 20 percent of the value of any other funds or allotments 
recovered or collected, except the value of funds or allotments 
recovered or collected that arise'' for ``25 percent during the period 
beginning October 1, 1990, and ending September 30, 1995, and 50 percent 
thereafter of the value of all funds or allotments recovered or 
collected pursuant to subsections (b)(1) and (c) of section 2022 of this 
title and 10 percent during the period beginning October 1, 1990, and 
ending September 30, 1995, and 25 percent thereafter of the value of all 
funds or allotments recovered or collected pursuant to section 
2022(b)(2) of this title, except the value of funds or allotments 
recovered or collected pursuant to section 2022(b)(2) of this title 
which arise''.
    Subsec. (b). Pub. L. 104-193, Secs. 848(a), 849, added subsec. (b) 
and struck out former subsec. (b) which read as follows: ``The Secretary 
shall (1) establish standards for the efficient and effective 
administration of the food stamp program by the States, including 
standards for the periodic review of the hours that food stamp offices 
are open during the day, week, or month to ensure that employed 
individuals are adequately served by the food stamp program, and (2) 
instruct each State to submit, at regular intervals, reports which shall 
specify the specific administrative actions proposed to be taken and 
implemented in order to meet the efficiency and effectiveness standards 
established pursuant to clause (1) of this subsection.''
    Subsec. (c)(1)(B). Pub. L. 104-193, Sec. 848(b)(2), struck out 
``pursuant to subsection (b) of this section'' after ``by the States''.
    Subsec. (g)(4). Pub. L. 104-193, Sec. 109(c), substituted ``State 
programs funded under part A of'' for ``State plans under the Aid to 
Families with Dependent Children Program under''.
    Subsec. (h). Pub. L. 104-193, Sec. 817(b), inserted subsec. heading.
    Subsec. (h)(1). Pub. L. 104-193, Sec. 817(b), added par. (1) and 
struck out former par. (1) which authorized Secretary to allocate funds 
among State agencies for each of the fiscal years 1991 through 2002 to 
carry out employment and training program under section 2015(d)(4) of 
this title.
    Pub. L. 104-127, Sec. 401(b), substituted ``2002'' for ``1995'' 
wherever appearing in subpars. (A), (B), (D), and (E)(ii).
    Subsec. (h)(2). Pub. L. 104-193, Sec. 817(c), inserted before period 
at end ``, including the costs for case management and casework to 
facilitate the transition from economic dependency to self-sufficiency 
through work''.
    Subsec. (h)(5). Pub. L. 104-193, Sec. 817(d)(1), struck out ``(A)'' 
before ``The Secretary shall'' and struck out subpar. (B) which read as 
follows: ``The Secretary shall, not later than January 1, 1989, report 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate on the 
effectiveness of such employment and training programs.''
    Subsec. (h)(6). Pub. L. 104-193, Sec. 817(d)(2), struck out par. (6) 
which read as follows: ``The Secretary shall develop, and transmit to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, a 
proposal for modifying the rate of Federal payments under this 
subsection so as to reflect the relative effectiveness of the various 
States in carrying out employment and training programs under section 
2015(d)(4) of this title.''
    1995--Subsec. (i)(3). Pub. L. 104-66 struck out par. (3) which read 
as follows: ``Not later than 12 months after December 23, 1985, and each 
12 months thereafter, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that lists 
project areas identified under paragraph (1) and describes any 
procedures required to be carried out under paragraph (2).''
    1994--Subsec. (e). Pub. L. 103-296 substituted ``Commissioner of 
Social Security'' for ``Secretary of Health and Human Services'' in two 
places.
    1993--Subsec. (a). Pub. L. 103-66, Sec. 13961(1), added cls. (6) to 
(8) and in proviso struck out ``authorized to pay each State agency an 
amount not less than 75 per centum of the costs of State food stamp 
program investigations and prosecutions, and is further'' after ``That 
the Secretary is''.
    Subsec. (c)(1)(C). Pub. L. 103-66, Sec. 13951(c)(1), substituted 
``national performance measure'' for ``payment error tolerance level'' 
and substituted ``equal to--'' followed by cl. (i) for ``equal to its 
payment error rate less such tolerance level times the total value of 
allotments issued in such a fiscal year by such State agency.''
    Subsec. (c)(3)(A). Pub. L. 103-66, Sec. 13951(c)(2), substituted 
``120 days'' for ``60 days (or 90 days at the discretion of the 
Secretary)''.
    Subsec. (c)(6). Pub. L. 103-66, Sec. 13951(c)(3), struck out ``shall 
be used to establish a payment-error tolerance level. Such tolerance 
level for any fiscal year will be one percentage point added to the 
lowest national performance measure ever announced up to and including 
such fiscal year under this section. The payment-error tolerance level'' 
after ``The announced national performance measure''.
    Subsec. (c)(8), (9). Pub. L. 103-66, Sec. 13951(c)(4), added pars. 
(8) and (9).
    Subsec. (g). Pub. L. 103-66, Sec. 13961(2), which directed the 
substitution of ``the amount provided under subsection (a)(6) of this 
section for'' for ``an amount equal to 63 percent effective on October 
1, 1991, of'', was executed to reflect the probable intent of Congress 
by making the substitution for ``an amount equal to--
    ``63 percent effective on October 1, 1991, of''.
    Subsec. (h)(3). Pub. L. 103-66, Sec. 13922(c), substituted ``equal 
to the payment made under section 2015(d)(4)(I)(i)(II) of this title but 
not more than the applicable local market rate,'' for ``representing 
$160 per month per dependent''.
    Subsecs. (j), (k). Pub. L. 103-66, Sec. 13961(3), (4), redesignated 
subsec. (k) as (j) and struck out former subsec. (j) which read as 
follows: ``The Secretary is authorized to pay to each State agency an 
amount equal to 100 per centum of the costs incurred by the State agency 
in implementing and operating the immigration status verification system 
described in section 1137(d) of the Social Security Act.''
    1991--Subsec. (g). Pub. L. 102-237, Sec. 941(7)(A), inserted a comma 
after ``1991''.
    Subsec. (h)(4). Pub. L. 102-237, Sec. 941(7)(B), substituted ``this 
chapter'' for ``the chapter''.
    1990--Subsec. (a). Pub. L. 101-624, Sec. 1750, substituted ``25 
percent during the period beginning October 1, 1990, and ending 
September 30, 1995, and 50 percent thereafter'' for ``50 per centum'', 
and ``10 percent during the period beginning October 1, 1990, and ending 
September 30, 1995, and 25 percent thereafter'' for ``25 per centum''.
    Subsec. (g). Pub. L. 101-624, Sec. 1752(a), substituted ``The'' for 
``Effective October 1, 1980, the'' and ``63 percent effective on October 
1, 1991'' for ``75 per centum''.
    Subsec. (h)(1). Pub. L. 101-624, Sec. 1753, amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``The Secretary 
shall allocate among the State agencies in each fiscal year, from funds 
appropriated for such fiscal year under section 2027(a)(1) of this 
title, the amount of $40,000,000 for the fiscal year ending September 
30, 1986, $50,000,000 for the fiscal year ending September 30, 1987, 
$60,000,000 for the fiscal year ending September 30, 1988, and 
$75,000,000 for each of the fiscal years ending September 30, 1989 and 
September 30, 1990, to carry out the employment and training program 
under section 2015(d)(4) of this title, except as provided in paragraph 
(3), during such fiscal year.''
    1988--Subsec. (a)(4). Pub. L. 100-435, Sec. 204(b), substituted ``, 
including those undertaken'' for ``permitted''.
    Subsec. (c). Pub. L. 100-435, Sec. 604(1), added subsec. (c) and 
struck out former subsec. (c) which related to State incentives for 
reducing error.
    Subsec. (d). Pub. L. 100-435, Sec. 604(2), added subsec. (d) and 
struck out former subsec. (d) which defined ``payment error rate'' and 
instituted error rate reduction program.
    Subsec. (h). Pub. L. 100-435, Sec. 321(c), redesignated subsec. (h), 
relating to payment of costs of immigration status verification system, 
as (j).
    Subsec. (h)(3). Pub. L. 100-435, Sec. 404(g), inserted ``for costs 
of transportation and other actual costs (other than dependent care 
costs) and an amount representing $160 per month per dependent'' after 
``month''.
    Subsec. (h)(6). Pub. L. 100-435, Sec. 404(e), added par. (6).
    Subsec. (j). Pub. L. 100-435, Sec. 321(c), redesignated subsec. (h), 
relating to payment of costs of immigration status verification system, 
as (j).
    Subsec. (k). Pub. L. 100-435, Sec. 321(b), added subsec. (k).
    1987--Subsec. (a). Pub. L. 100-77 substituted ``(4) food stamp 
informational activities permitted under section 2020(e)(1)(A) of this 
title, and (5)'' for ``and (4)'' in first sentence.
    1986--Subsec. (h). Pub. L. 99-603 added, at end of section, subsec. 
(h) relating to payment of costs of immigration status verification 
system.
    1985--Subsec. (a). Pub. L. 99-198, Sec. 1535(c)(1), substituted 
``subsections (b)(1) and (c) of section 2022 of this title'' for 
``section 2022(b)(1) of this title''.
    Subsec. (b)(1). Pub. L. 99-198, Sec. 1524, inserted ``, including 
standards for the periodic review of the hours that food stamp offices 
are open during the day, week, or month to ensure that employed 
individuals are adequately served by the food stamp program,'' after 
``States''.
    Subsec. (d)(2)(A). Pub. L. 99-198, Sec. 1537(a)(1), inserted ``less 
any amount payable as a result of the use by the State agency of 
correctly processed information received from an automatic information 
exchange system made available by any Federal department or agency''.
    Subsec. (d)(6). Pub. L. 99-198, Sec. 1537(a)(2), added par. (6).
    Subsec. (h). Pub. L. 99-198, Sec. 1517(c), added subsec. (h) 
relating to authorization of appropriations, etc.
    Subsec. (i). Pub. L. 99-198, Sec. 1539, added subsec. (i).
    1982--Subsec. (a). Pub. L. 97-253, Sec. 179, inserted ``, except the 
value of funds or allotments recovered or collected pursuant to section 
2022(b)(2) of this title which arise from an error of a State agency''.
    Subsec. (c). Pub. L. 97-253, Sec. 180(a)(1), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``The 
Secretary is authorized to adjust a State agency's federally funded 
share of administrative costs pursuant to subsection (a) of this 
section, other than the costs already shared in excess of 50 per centum 
as described in the exception clause of subsection (a) of this section, 
by increasing such share to (1) effective October 1, 1978, 60 per centum 
of all such administrative costs in the case of a State agency whose (A) 
semiannual cumulative allotment error rates with respect to eligibility, 
overissuance, and underissuance as calculated in the quality control 
program undertaken pursuant to subsection (d)(1) of this section are 
less than five per centum and (B) whose rate of invalid decisions in 
denying eligibility as calculated in the quality control program 
conducted under subsection (d)(1) of this section is less than a 
nationwide percentage that the Secretary determines to be reasonable; 
(2) effective October 1, 1980, 65 per centum of all such administrative 
costs in the case of a State agency meeting the standards contained in 
paragraph (1) of this subsection; (3) effective October 1, 1980, 60 per 
centum of all such administrative costs in the case of a State agency 
whose cumulative allotment error rate as determined under paragraph 
(1)(A) of this subsection is greater than 5 per centum but less than 8 
per centum or the national standard payment error rate for the base 
period, whichever is lower, and which also meets the standard contained 
in paragraph (1)(B) of this subsection; and (4) effective October 1, 
1980, 55 per centum of all such administrative costs in the case of a 
State agency whose annual rate of error reduction is equal to or exceeds 
25 per centum, and, effective October 1, 1981, which also meets the 
standard contained in paragraph (1)(B) of this subsection. No State 
agency shall receive more than one of the increased federally funded 
shares of administrative costs set forth in paragraphs (1) through (4) 
of this subsection.''
    Subsec. (d). Pub. L. 97-253, Sec. 180(a)(2), (3), added subsec. (d), 
and struck out former subsec. (d) which provided that effective October 
1, 1981, and annually thereafter, each State not receiving an increased 
share of administrative costs pursuant to subsec. (c)(2) of this section 
was required to develop and submit to the Secretary for approval, as 
part of the plan of operation required to be submitted under section 
2020(d) of this title, a quality control plan for the State which had to 
specify the actions such State proposes to take in order to reduce the 
incidence of error rates in and the value of food stamp allotments for 
households which failed to meet basic program eligibility requirements, 
food stamp allotments overissued to eligible households, and food stamp 
allotments underissued to eligible households, and (2) the incidence of 
invalid decisions in certifying or denying eligibility.
    Subsec. (e). Pub. L. 97-253, Secs. 180(a)(2), 189(b)(3), 
redesignated subsec. (f) as (e), substituted reference to the Secretary 
of Health and Human Services for former reference to the Secretary of 
Health, Education, and Welfare. Former subsec. (e), which defined 
``quality control'' as the monitoring and reduction of the rate of 
errors in determining basic eligibility and benefit levels, was struck 
out.
    Subsec. (f). Pub. L. 97-253, Secs. 180(a)(2), 189(c), redesignated 
subsec. (h) as (f), substituted a period for the semicolon, and struck 
out ``and'' at the end. Former subsec. (f) redesignated (e).
    Subsec. (g). Pub. L. 97-253, Sec. 180(a)(2), redesignated former 
subsec. (i) as (g). Former subsec. (g), which related to State liability 
for error under this section, was struck out.
    Subsecs. (h), (i). Pub. L. 97-253, Sec. 180(a)(2), redesignated 
subsecs. (h) and (i) as (f) and (g), respectively.
    1981--Subsec. (a). Pub. L. 97-35 substituted provisions relating to 
recovery through section 2022(b)(1) and (2) of this title for provisions 
relating to recovery through prosecutions or other State activities, 
substituted ``determinations of ineligibility'' for ``determinations of 
fraud'', struck out ``(1) outreach,'' and redesignated cls. (2) to (5) 
as (1) to (4), respectively.
    Subsec. (b)(1). Pub. L. 97-98, Sec. 1325, struck out ``, including, 
but not limited to, staffing standards such as caseload per 
certification worker limitations,'' after ``by the States''.
    Subsec. (c). Pub. L. 97-98, Sec. 1326(1), inserted ``, and, 
effective October 1, 1981, which also meets the standard contained in 
paragraph (1)(B) of this subsection'' after ``exceeds 25 per centum''.
    Subsec. (d). Pub. L. 97-98, Sec. 1326(2), substituted in provision 
preceding par. (1) ``October 1, 1981'' for ``October 1, 1978'' and 
``subsection (c)(2) of this section'' for ``subsection (c) of this 
section''.
    Subsec. (f). Pub. L. 97-98, Sec. 1327, substituted ``State agencies 
shall'' for ``State agencies may''.
    1980--Subsec. (b). Pub. L. 96-249, Sec. 121, struck out provisions 
requiring that if the Secretary finds that a State has failed without 
good cause to meet any of the Secretary's standards, or has failed to 
carry out the approved State plan of operation under section 2020(d) of 
this title, the Secretary withhold from the State such funds authorized 
under subsections (a) and (c) of this section as the Secretary 
determines to be appropriate.
    Subsec. (c). Pub. L. 96-249, Sec. 125, designated existing 
provisions as par. (1), substituted ``(A) semiannual cumulative'' for 
``cumulative'', and added subpar. (B) and pars. (2) to (4).
    Subsec. (g). Pub. L. 96-249, Sec. 126, added subsec. (g).
    Subsec. (h). Pub. L. 96-249, Sec. 128, added subsec. (h).
    Subsec. (i). Pub. L. 96-249, Sec. 129, added subsec. (i).
    1979--Subsec. (a). Pub. L. 96-58, Sec. 6, authorized the Secretary 
to permit each State to retain 50 per centum of the value of all funds 
or allotments recovered or collected through prosecutions or other State 
activities directed against individuals who fraudulently obtain 
allotments as determined in accordance with this chapter but directed 
that officials responsible for making determinations of fraud under this 
chapter should not receive or benefit from revenues retained by the 
State under the provisions of this subsection.
    Subsec. (f). Pub. L. 96-58, Sec. 4, added subsec. (f).
    1977--Pub. L. 95-113 substituted revised provisions relating to 
administrative cost-sharing and quality control for provisions 
authorizing appropriations and relating to the financial operation of 
the program which are now covered by section 2027 of this title.
    1973--Subsec. (a). Pub. L. 93-86 extended authorization of 
appropriations from June 30, 1973, to June 30, 1977, and inserted 
provision relating to availability of appropriated sums.
    1971--Subsec. (a). Pub. L. 91-671 is substituted appropriation 
authorization of ``$1,750,000,000 for the fiscal year ending June 30, 
1971; and for the fiscal years ending June 30, 1972 and June 30, 1973 
such sums as the Congress may appropriate'' for ``$170,000,000 for the 
six months ending December 31, 1970''.
    1969--Subsec. (a). Pub. L. 91-116 increased appropriation 
authorization limitation for fiscal year ending June 30, 1970, from 
$340,000,000 to $610,000,000.
    1968--Subsec. (a). Pub. L. 90-552 increased appropriations 
authorization limitation for fiscal year ending June 30, 1969, from 
$225,000,000 to $315,000,000, authorized appropriations of $340,000,000 
and $170,000,000 for fiscal year ending June 30, 1970, and for six 
months ending Dec. 31, 1970, substituted ``fiscal period'' for ``fiscal 
year'', and provided for submission of reports to Congress on or before 
January 20 of each year setting forth operations under this chapter 
during preceding calendar year and projecting needs for ensuing calendar 
year.
    1967--Subsec. (a). Pub. L. 90-91 provided for appropriations for the 
fiscal years ending June 30, 1968 and 1969, and inserted provision 
dealing with the carrying out of this chapter only with funds 
appropriated from the general fund of the Treasury for the purposes of 
this chapter.


                    Effective Date of 1999 Amendment

    Pub. L. 106-78, title VII, Sec. 758, Oct. 22, 1999, 113 Stat. 1172, 
provided that the amendment made by section 758 is effective beginning 
in fiscal year 2001 and thereafter.


                    Effective Date of 1998 Amendment

    Pub. L. 105-185, title V, Sec. 510(a), June 23, 1998, 112 Stat. 580, 
provided that: ``The amendments made by sections 501 and 502 [amending 
this section] take effect on the date of enactment of this Act [June 23, 
1998].''


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 effective Oct. 1, 1997, without regard 
to whether regulations have been promulgated to implement such 
amendment, see section 1005(b) of Pub. L. 105-33, set out as a note 
under section 2015 of this title.


                    Effective Date of 1996 Amendment

    Amendment by section 109(c) of Pub. L. 104-193 effective July 1, 
1997, with transition rules relating to State options to accelerate such 
date, rules relating to claims, actions, and proceedings commenced 
before such date, rules relating to closing out of accounts for 
terminated or substantially modified programs and continuance in office 
of Assistant Secretary for Family Support, and provisions relating to 
termination of entitlement under AFDC program, see section 116 of Pub. 
L. 104-193, as amended, set out as an Effective Date note under section 
601 of Title 42, The Public Health and Welfare.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section 
110(a) of Pub. L. 103-296, set out as a note under section 401 of Title 
42, The Public Health and Welfare.


                    Effective Date of 1993 Amendment

    Section 13971 of Pub. L. 103-66 provided that:
    ``(a) General Effective Date and Implementation.--Except as provided 
in subsection (b), this chapter [chapter 3 (Secs. 13901-13971) of title 
XIII of Pub. L. 103-66, amending this section and sections 2012, 2014, 
2015, 2017, 2020 to 2023, 2026, and 2028 of this title, and enacting 
provisions set out as a note under section 2011 of this title] and the 
amendments made by this chapter shall take effect, and shall be 
implemented beginning on, October 1, 1993.
    ``(b) Special Effective Dates and Implementation.--(1)(A) Except as 
provided in subparagraph (B), section 13951 [amending this section and 
sections 2022 and 2023 of this title] shall take effect on October 1, 
1991.
    ``(B) The amendment made by section 13951(c)(2) [amending this 
section] shall take effect on October 1, 1992.
    ``(2)(A) Except as provided in subparagraph (B), the amendments made 
by section 13961 [amending this section] shall be effective with respect 
to calendar quarters beginning on or after April 1, 1994.
    ``(B) In the case of a State whose legislature meets biennially, and 
does not have a regular session scheduled in calendar year 1994, and 
that demonstrates to the satisfaction of the Secretary of Agriculture 
that there is no mechanism, under the constitution and laws of the 
State, for appropriating the additional funds required by the amendments 
made by this section before the next such regular legislative session, 
the Secretary may delay the effective date of all or part of the 
amendments made by section 13961 [amending this section] until the 
beginning date of a calendar quarter that is not later than the first 
calendar quarter beginning after the close of the first regular session 
of the State legislature after the date of enactment of this Act [Aug. 
10, 1993].
    ``(3) Sections 13912(a) and 13912(b)(1) [amending section 2014 of 
this title] shall take effect, and shall be implemented beginning on, 
July 1, 1994.
    ``(4) Sections 13911, 13913, 13914, 13915, 13916, 13922, 13924, 
13931, 13932, and 13942 [amending this section and sections 2012, 2014, 
2015, and 2017 of this title] shall take effect, and shall be 
implemented beginning on, September 1, 1994.
    ``(5)(A) Except as provided in subparagraph (B), section 13921 
[amending section 2014 of this title] shall take effect, and shall be 
implemented beginning on, September 1, 1994.
    ``(B) State agencies shall implement the amendment made by section 
13921 not later than October 1, 1995.
    ``(6) Section 13912(b)(2) [amending section 2014 of this title] 
shall take effect, and shall be implemented beginning on, January 1, 
1997.''


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-237 effective and to be implemented no 
later than Feb. 1, 1992, see section 1101(d)(1) of Pub. L. 102-237, set 
out as a note under section 1421 of this title.


                    Effective Date of 1990 Amendment

    Amendment by section 1750 of Pub. L. 101-624 effective Oct. 1, 1990, 
amendment by section 1752(a) of Pub. L. 101-624 effective and 
implemented first day of month beginning 120 days after publication of 
implementing regulations to be promulgated not later than Oct. 1, 1991, 
and amendment by section 1753 of Pub. L. 101-624 effective Nov. 28, 
1990, see section 1781(a), (b)(1), (2) of Pub. L. 101-624, set out as a 
note under section 2012 of this title.
    Section 1752(b) of Pub. L. 101-624 provided that: ``The amendment 
made by subsection (a)(2) [amending this section] shall not apply to 
proposals for automatic data processing and information retrieval 
systems under section 16(g) of the Food Stamp Act of 1977 [subsec. (g) 
of this section] that were approved by the Secretary of Agriculture 
prior to the date of enactment of this Act [Nov. 28, 1990].''


                    Effective Date of 1988 Amendment

    Amendment by sections 204(b), 321(b), and 404(e) of Pub. L. 100-435 
to be effective and implemented on July 1, 1989, amendment by section 
321(c) of Pub. L. 100-435 to be effective and implemented on Sept. 19, 
1988, amendment by section 404(g) of Pub. L. 100-435 to be effective and 
implemented on Oct. 1, 1988, and amendment by section 604 of Pub. L. 
100-435 effective Oct. 1, 1985, with respect to claims under subsec. (c) 
of this section for quality control review periods after such date, 
except as otherwise provided, except that amendment by sections 204(b), 
321(b), (c), 404(e), (g) of Pub. L. 100-435 to become effective and 
implemented on Oct. 1, 1989, if final order is issued under section 
902(b) of Title 2, The Congress, for fiscal year 1989 making reductions 
and sequestrations specified in the report required under section 
901(a)(3)(A) of Title 2, see section 701(a), (b)(1), (4), (5), (c)(2) of 
Pub. L. 100-435, set out as a note under section 2012 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-603 effective Oct. 1, 1987, see section 
121(c)(2) of Pub. L. 99-603, set out as a note under section 502 of 
Title 42, The Public Health and Welfare.


                    Effective Date of 1985 Amendment

    Section 1537(a) of Pub. L. 99-198 provided that the amendment made 
by that section is effective with respect to the fiscal year beginning 
Oct. 1, 1985, and each fiscal year thereafter.


                    Effective Date of 1982 Amendment

    Amendment by section 179 of Pub. L. 97-253 effective Sept. 8, 1982, 
see section 193(a) of Pub. L. 97-253, set out as a note under section 
2012 of this title.
    Enactment by section 180(a) of Pub. L. 97-253 effective Oct. 1, 
1982, see section 193(b) of Pub. L. 97-253, set out as a note under 
section 2012 of this title.


                    Effective Date of 1981 Amendments

    Amendment by Pub. L. 97-35 effective on earlier of Sept. 8, 1982, or 
date such amendment became effective pursuant to section 117 of Pub. L. 
97-35, set out as a note under section 2012 of this title, see section 
192(a) of Pub. L. 97-253, set out as a note under section 2012 of this 
title.
    Amendment by Pub. L. 97-98 effective on earlier of Sept. 8, 1982, or 
date such amendment became effective pursuant to section 1338 of Pub. L. 
97-98, set out as a note under section 2012 of this title, see section 
192(b) of Pub. L. 97-253, set out as a note under section 2012 of this 
title.
    Amendment by Pub. L. 97-98 effective upon such date as Secretary of 
Agriculture may prescribe, taking into account need for orderly 
implementation, see section 1338 of Pub. L. 97-98, set out as a note 
under section 2012 of this title.
    Amendment by Pub. L. 97-35 effective and implemented upon such dates 
as Secretary of Agriculture may prescribe, taking into account need for 
orderly implementation, see section 117 of Pub. L. 97-35, set out as a 
note under section 2012 of this title.


                    Effective Date of 1979 Amendment

    Secretary of Agriculture to issue final regulations implementing the 
amendment of this section by Pub. L. 96-58 within 150 days after Aug. 
14, 1979, see section 10(b) of Pub. L. 96-58, set out as a note under 
section 2012 of this title.


                    Effective Date of 1977 Amendment

    Section 1301 of Pub. L. 95-113 provided that the amendment made by 
that section is effective Oct. 1, 1977.


                               Regulations

    Secretary of Agriculture to promulgate regulations necessary to 
implement amendment of this section by Pub. L. 105-33, not later than 
one year after Aug. 5, 1997, see section 1005(a) of Pub. L. 105-33, set 
out as a note under section 2015 of this title.


        Review of Methodology Used To Make Certain Determinations

    Pub. L. 105-185, title V, Sec. 502(b), June 23, 1998, 112 Stat. 578, 
provided that: ``Not later than 1 year after the date of enactment [June 
23, 1998], the Comptroller General of the United States shall--
        ``(1) review the adequacy of the methodology used in making the 
    determinations required under section 16(k)(2)(B) of the Food Stamp 
    Act of 1977 [7 U.S.C. 2025(k)(2)(B)] (as added by subsection 
    (a)(2)); and
        ``(2) submit a written report on the results of the review to 
    the Committee on Agriculture of the House of Representatives and the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate.''


                           Report to Congress

    Section 1002(b) of Pub. L. 105-33 provided that: ``Not later than 30 
months after the date of enactment of this Act [Aug. 5, 1997], the 
Secretary of Agriculture shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report regarding whether the 
amounts made available under section 16(h)(1)(A) of the Food Stamp Act 
of 1977 [7 U.S.C. 2025(h)(1)(A)] (as a result of the amendment made by 
subsection (a)) have been used by State agencies to increase the number 
of work slots for recipients subject to section 6(o) of the Food Stamp 
Act of 1977 (7 U.S.C. 2015(o)) in employment and training programs and 
workfare in the most efficient and effective manner practicable.''


                        Quality Control Sanctions

    Section 1751 of Pub. L. 101-624 provided that:
    ``(a) In General.--No disallowance or other similar action shall be 
applied to or collected from any State for any of the fiscal years 1983, 
1984, or 1985 under section 16(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)) or any predecessor statutory or regulatory provision 
relating to disallowances or other similar actions for erroneous 
issuances made in carrying out a State plan under such Act [7 U.S.C. 
2011 et seq.], except for amounts to be paid or collected after the date 
of enactment of this Act [Nov. 28, 1990] pursuant to settlement 
agreements which do not provide for payment adjustments based on future 
changes in law.
    ``(b) Application.--Subsection (a) shall also apply to disallowances 
described in subsection (a) with respect to which an administrative or 
judicial appeal is pending on the date of enactment of this Act [Nov. 
28, 1990], including any such disallowance that has been collected 
before such date.''


             Quality Control Studies and Penalty Moratorium

    Section 1538 of Pub. L. 99-198, as amended by Pub. L. 99-260, 
Sec. 12, Mar. 20, 1986, 100 Stat. 52, provided that:
    ``(a)(1)(A) The Secretary of Agriculture (hereinafter referred to in 
this section as the `Secretary') shall conduct a study of the quality 
control system used for the food stamp program established under the 
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
    ``(B) The study shall--
        ``(i) examine how best to operate such system in order to obtain 
    information that will allow the State agencies to improve the 
    quality of administration; and
        ``(ii) provide reasonable data on the basis of which Federal 
    funding may be withheld for State agencies with excessive levels of 
    erroneous payments.
    ``(2)(A) The Secretary shall also contract with the National Academy 
of Sciences to conduct a concurrent independent study for the purpose 
described in paragraph (1).
    ``(B) For purposes of such study, the Secretary shall provide to the 
National Academy of Sciences any relevant data available to the 
Secretary at the onset of the study and on an ongoing basis.
    ``(3) Not later than 1 year after the date the Secretary and the 
National Academy of Sciences enter into the contract required under 
paragraph (2), the Secretary and the National Academy of Sciences shall 
report the results of their respective studies to the Congress.
    ``(b)(1) During the 6-month period beginning on the date of 
enactment of this Act [Dec. 23, 1985] (hereinafter in this section 
referred to as the `moratorium period'), the Secretary shall not impose 
any reductions in payments to State agencies pursuant to section 16 of 
the Food Stamp Act of 1977 (7 U.S.C. 2025).
    ``(2) During the moratorium period, the Secretary and the State 
agencies shall continue to--
        ``(A) operate the quality control systems in effect under the 
    Food Stamp Act of 1977 [7 U.S.C. 2011 et seq.]; and
        ``(B) calculate error rates under section 16 of such Act [7 
    U.S.C. 2025].
    ``(c)(1) Not later than 6 months after the date on which the results 
of both studies required under subsection (a)(3) have been reported, the 
Secretary shall publish regulations that shall--
        ``(A) restructure the quality control system used under the Food 
    Stamp Act of 1977 [7 U.S.C. 2011 et seq.] to the extent the 
    Secretary determines to be appropriate, taking into account the 
    studies conducted under subsection (a); and
        ``(B) establish, taking into account the studies conducted under 
    subsection (a), criteria for adjusting the reductions that shall be 
    made for quarters prior to the implementation of the restructured 
    quality control system so as to eliminate reductions for those 
    quarters that would not be required if the restructured quality 
    control system had been in effect during those quarters.
    ``(2) Beginning 6 months after the date on which the results of both 
studies required under subsection (a)(3) have been reported, the 
Secretary shall--
        ``(A) implement the restructured quality control system; and
        ``(B) reduce payments to State agencies--
            ``(i) for quarters after implementation of such system in 
        accordance with the restructured quality control system; and
            ``(ii) for quarters before implementation of such system, as 
        provided under the regulations described in paragraph (1)(B).''

                  Section Referred to in Other Sections

    This section is referred to in sections 2014, 2015, 2016, 2020, 
2022, 2023, 2026, 2027, 2030, 2031, 2032, 2035 of this title; title 42 
section 629c.
