7 U.S.C. § 2028 — Consolidated block grants for Puerto Rico

Page 1373 TITLE 7—AGRICULTURE § 2028 the second preceding month’s expenditure, including administrative costs, as well as the cumulative totals for the fiscal year. In each monthly report, the Sec- retary shall also state whether there is reason to be- lieve 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, §§ 1760(1)(A), 1761(1), substituted ‘‘To carry out this chapter, there are authorized to be appropriated such sums as are nec- essary for each of the fiscal years 1991 through 1995.’’ for former first two sentences which related to author- izations of appropriation for fiscal years ending Sep- tember 30, 1978 through September 30, 1990, and inserted ‘‘, subject to paragraph (3)’’. Pub. L. 101–624, § 1760(1)(B), substituted ‘‘supple- mental appropriations will be needed to support the op- eration 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, § 1761(2), added par. (3). Subsec. (b). Pub. L. 101–624, § 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, § 1541(1), inserted provisions authorizing appropriations for fiscal years ending Sept. 30, 1986, 1987, 1988, 1989, and 1990. Subsec. (b). Pub. L. 99–198, § 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, § 1535(c)(2), substituted ref- erence 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, § 1542(a), added subsec. (f). 1982—Subsec. (a)(1). Pub. L. 97–253, § 183, inserted pro- visions for appropriations for the fiscal years ending on September 30, 1983–1985, inclusive. Subsec. (e). Pub. L. 97–253, § 180(b)(2), struck out ref- erence to section 2025(g) of this title in first sentence. 1981—Subsec. (a)(1). Pub. L. 97–98, § 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, § 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, § 1(1), (2), substituted ‘‘$6,778,900,000’’ for ‘‘$6,158,900,000’’ in provisions author- izing appropriations for the fiscal year ending Sept. 30, 1979, struck out provisions directing that sums appro- priated under this chapter would continue to remain available until expended, and inserted provisions re- quiring the Secretary to submit monthly reports to Senate and House Committees relating to monthly ex- penditures 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, § 1(3), substituted ‘‘Notwith- standing any other provision of this chapter, if’’ for ‘‘If’’ at beginning of second sentence. Subsecs. (c), (d). Pub. L. 96–58, § 1(4), added subsecs. (c) and (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. Amendment by sections 4001(b), 4002(a)(10), and 4406(a)(1) of Pub. L. 110–246 effective Oct. 1, 2008, see sec- tion 4407 of Pub. L. 110–246, set out as a note under sec- tion 1161 of Title 2, The Congress. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by section 4118(c) of Pub. L. 107–171 not applicable with respect to any sanction, appeal, new in- vestment agreement, or other action by the Secretary of Agriculture or a State agency that is based on a pay- ment 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 effec- tive Oct. 1, 2002, except as otherwise provided, see sec- tion 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 Pub. L. 99–198, title XV, § 1542(b), Dec. 23, 1985, 99 Stat. 1589, provided that: ‘‘The amendment made by this sec- tion [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 ef- fective 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 Pub. L. 95–113, title XIII, § 1301, Sept. 29, 1977, 91 Stat. 958, 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 [now supplemental nutrition assistance program] under this section to be reduced if sequestration order is issued under section 902(b) of Title 2, The Congress, see section 701(c)(1) of Pub. L. 100–435, set out as an Effec- tive Date of 1988 Amendment note under section 2012 of this title. § 2028. Consolidated block grants for Puerto Rico and American Samoa (a) Payments to governmental entities (1) Definition of governmental entity In this subsection, the term ‘‘governmental entity’’ means— Page 1374 TITLE 7—AGRICULTURE § 2028 (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) subject to the availability of appro- priations under section 2027(a) of this title, for each fiscal year thereafter, the amount specified in clause (i), as adjusted by the percentage by which the thrifty food plan has been adjusted under section 2012(u)(4) of this title between June 30, 2002, and June 30 of the immediately preceding fis- cal 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 per- cent of the funds made available under subparagraph (A) for payment to the Com- monwealth 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 Common- wealth approved under subsection (b); and (II) 50 percent of the related adminis- trative expenses. (ii) Exception for expenditures for certain systems Notwithstanding clause (i), the Common- wealth 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 be- fore May 13, 2002) to pay 100 percent of the costs of— (I) upgrading and modernizing the elec- tronic data processing system used to carry out nutrition assistance programs for needy persons; (II) implementing systems to simplify the determination of eligibility to re- ceive 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 per- cent of the funds made available under sub- paragraph (A) for payment to American Samoa to pay 100 percent of the expenditures by American Samoa for a nutrition assist- ance 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 en- tity may be carried over to the following fis- cal year. (3) Time and manner of payments to Common- wealth of Puerto Rico The Secretary shall, subject to the provi- sions of subsection (b), pay to the Common- wealth 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), reduced or increased to the extent of any prior overpayment or current under- payment 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 re- ceive payments, it shall submit a plan for the provision of the assistance described in sub- section (a)(2)(B) for the following fiscal year which— (i) designates the agency or agencies di- rectly responsible for the administration, or supervision of the administration, of the pro- gram 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 as- sistance 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 adminis- trative expenses, up to the amount provided for payment by subsection (a)(2)(B); and (v) includes such other information as the Secretary may require. (B)(i) The Secretary shall approve or dis- approve any plan submitted pursuant to sub- paragraph (A) no later than August 1 of the year in which it is submitted. The Secretary shall ap- prove any plan which complies with the require- ments of subparagraph (A). If a plan is dis- approved because it does not comply with any of the requirements of that paragraph the Sec- retary 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) 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 satis- fied, the Secretary will make no payments. (ii) The Secretary may suspend the denial of payments under subparagraph (B)(i) for such pe- Page 1375 TITLE 7—AGRICULTURE § 2028 riod as the Secretary determines appropriate and instead withhold payments provided for under subsection (a), 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 sub- paragraph (A), at which time such withheld pay- ments 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), 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 Sec- retary with a statement as to whether the pay- ments received under subsection (a) for that fis- cal 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 sub- stantial failure by the Commonwealth to com- ply with any of the requirements of subpara- graphs (A) and (B), or to comply with the re- quirements of subsection (b)(1)(A) in the admin- istration of a plan approved under subsection (b)(1)(B), the Secretary shall, except as provided in subparagraph (C)(ii), notify the appropriate agency in the Commonwealth that further pay- ments will not be made to it under subsection (a) until the Secretary is satisfied that there will no longer be any such failure to comply, and until the Secretary is so satisfied, the Sec- retary shall make no further payments. (ii) The Secretary may suspend the termi- nation of payments under subparagraph (C)(i) for such period as the Secretary determines ap- propriate, and instead withhold payments pro- vided for under subsection (a), 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), at which time such with- held 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), 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 in- junctive 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 show- ing that noncompliance has occurred, appro- priate injunctive relief shall issue. (c) Review; technical assistance (1) The Secretary shall provide for the review of the programs for the provision of the assist- ance described in subsection (a)(2)(A) for which payments are made under this chapter. (2) The Secretary is authorized as the Sec- retary deems practicable to provide technical assistance with respect to the programs for the provision of the assistance described in sub- section (a)(2)(A). (d) Penalty for violations Whoever knowingly and willfully embezzles, misapplies, steals, or obtains by fraud, false statement, or forgery, any funds, assets, or prop- erty provided or financed under this section shall be fined not more than $10,000 or impris- oned for not more than five years, or both, but if the value of the funds, assets or property in- volved 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. (e) Review, report, and regulation of cash nutri- tion assistance program benefits provided in Puerto Rico (1) Review The Secretary, in consultation with the Sec- retary of Health and Human Services, shall carry out a review of the provision of nutri- tion assistance in Puerto Rico in the form of cash benefits under this section that shall in- clude— (A) an examination of the history of and purpose for distribution of a portion of monthly benefits in the form of cash; (B) an examination of current barriers to the redemption of non-cash benefits by cur- rent program participants and retailers; (C) an examination of current usage of cash benefits for the purchase of non-food and other prohibited items; (D) an identification and assessment of po- tential adverse effects of the discontinuation of a portion of benefits in the form of cash for program participants and retailers; and (E) an examination of such other factors as the Secretary determines to be relevant. (2) Report Not later than 18 months after February 7, 2014, the Secretary shall submit to the Com- mittee on Agriculture of the House of Rep- resentatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate, a report that describes the results of the re- view conducted under this subsection. (3) Regulation (A) In general Except as provided in subparagraph (B), and notwithstanding the second sentence of subsection (b)(1)(B)(i), the Secretary shall disapprove any plan submitted pursuant to subsection (b)(1)(A)— (i) for fiscal year 2017 that provides for the distribution of more than 20 percent of the nutrition assistance benefit of a par- ticipant in the form of cash; (ii) for fiscal year 2018 that provides for the distribution of more than 15 percent of the nutrition assistance benefit of a par- ticipant in the form of cash; (iii) for fiscal year 2019 that provides for the distribution of more than 10 percent of the nutrition assistance benefit of a par- ticipant in the form of cash; (iv) for fiscal year 2020 that provides for the distribution of more than 5 percent of the nutrition assistance benefit of a par- ticipant in the form of cash; and (v) for fiscal year 2021 that provides for the distribution of any portion of the nu- Page 1376 TITLE 7—AGRICULTURE § 2028 trition assistance benefit of a participant in the form of cash. (B) Exception Notwithstanding subparagraph (A), the Secretary, informed by the report required under paragraph (2), may approve a plan that exempts participants or categories of participants if the Secretary determines that discontinuation of benefits in the form of cash is likely to have significant adverse effects. (4) Funding Out of any funds made available under sec- tion 2027 of this title for fiscal year 2014, the Secretary shall make available to carry out the review and report described in paragraphs (1) and (2) $1,000,000, to remain available until expended. (Pub. L. 88–525, § 19, as added Pub. L. 97–35, title I, § 116(a)(2), Aug. 13, 1981, 95 Stat. 364; amended Pub. L. 97–253, title I, § 184(a), Sept. 8, 1982, 96 Stat. 785; Pub. L. 98–204, § 1, Dec. 2, 1983, 97 Stat. 1385; Pub. L. 99–114, § 2, Oct. 1, 1985, 99 Stat. 488; Pub. L. 99–157, § 3, Nov. 15, 1985, 99 Stat. 818; Pub. L. 99–182, § 3, Dec. 13, 1985, 99 Stat. 1173; Pub. L. 99–198, title XV, § 1543, Dec. 23, 1985, 99 Stat. 1589; Pub. L. 101–624, title XVII, § 1762(b), Nov. 28, 1990, 104 Stat. 3804; Pub. L. 102–237, title IX, § 941(9), Dec. 13, 1991, 105 Stat. 1893; Pub. L. 103–66, title XIII, § 13917, Aug. 10, 1993, 107 Stat. 674; Pub. L. 104–127, title IV, § 401(f), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 106–387, § 1(a) [title VIII, § 821], Oct. 28, 2000, 114 Stat. 1549, 1549A–59; Pub. L. 107–171, title IV, § 4124(a), May 13, 2002, 116 Stat. 324; Pub. L. 110–234, title IV, §§ 4115(b)(13), 4406(a)(6), May 22, 2008, 122 Stat. 1108, 1141; Pub. L. 110–246, § 4(a), title IV, §§ 4115(b)(13), 4406(a)(6), June 18, 2008, 122 Stat. 1664, 1870, 1902; Pub. L. 113–79, title IV, § 4025, Feb. 7, 2014, 128 Stat. 809.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2014—Subsec. (e). Pub. L. 113–79 added subsec. (e). 2008—Subsec. (a)(2)(A)(ii). Pub. L. 110–246, §§ 4115(b)(13), 4406(a)(6), substituted ‘‘subject to the availability of appropriations under section 2027(a) of this title, for each fiscal year thereafter’’ for ‘‘for each of fiscal years 2004 through 2007’’ and ‘‘section 2012(u)(4)’’ for ‘‘section 2012(o)(4)’’. 2002—Pub. L. 107–171, § 4124(a)(1), substituted ‘‘Con- solidated block grants for Puerto Rico and American Samoa’’ for ‘‘Puerto Rico block grant’’ in section catchline. Subsec. (a). Pub. L. 107–171, § 4124(a)(1), inserted head- ing, 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 chap- ter, 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 Con- sumer Price Index for All Urban Consumers, pub- lished by the Bureau of Labor Statistics of the De- partment of Labor, for the most recent 12-month pe- riod 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 as- sistance 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 fis- cal year shall not exceed the expenditures by that ju- risdiction during that year for the provision of the as- sistance 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 adminis- trative expenses.’’ Subsec. (b). Pub. L. 107–171, § 4124(a)(2), substituted ‘‘subsection (a)(2)(B)’’ for ‘‘subsection (a)(1)(A)’’ wher- ever appearing. Subsec. (c). Pub. L. 107–171, § 4124(a)(3), substituted ‘‘subsection (a)(2)(A)’’ for ‘‘subsection (a)(1)(A)’’ 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 sub- par. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘From the sums appropriated under this chapter the Secretary shall, subject to the provi- sions of this subsection and subsection (b) of this sec- tion, 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 Sep- tember 30, 1987, $879,750,000 for the fiscal year ending September 30, 1988, $908,250,000 for the fiscal year end- ing September 30, 1989, and $936,750,000 for the fiscal year ending September 30, 1990, to finance 100 per cen- tum 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, § 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 Sep- tember 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, § 1543(3), sub- stituted ‘‘the agency or agencies directly.’’ for ‘‘a sin- gle agency which shall be’’. 1983—Subsec. (a)(1)(A). Pub. L. 98–204 temporarily struck out ‘‘noncash’’ after ‘‘100 per centum of the ex- Page 1377 TITLE 7—AGRICULTURE § 2028 penditures 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 ex- penditures for food assistance’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. Amendment by sections 4115(b)(13) and 4406(a)(6) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress. EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107–171, title IV, § 4124(c), (d), May 13, 2002, 116 Stat. 326, as amended by Pub. L. 110–234, title IV, § 4002(b)(1)(B), (2)(C), May 22, 2008, 122 Stat. 1096; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(B), (2)(C), June 18, 2008, 122 Stat. 1664, 1857, 1858, 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 and Nutrition Act of 2008 [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 DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 effective, and to be im- plemented beginning on, Oct. 1, 1993, see section 13971(a) of Pub. L. 103–66, set out as a note under sec- tion 2025 of this title. EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102–237 effective and to be im- plemented no later than Feb. 1, 1992, see section 1101(d)(1) of Pub. L. 102–237, set out as a note under sec- tion 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 1985 AMENDMENTS Pub. L. 99–182, § 3, Dec. 13, 1985, 99 Stat. 1173, provided that the amendment made by section 3 is effective for the period beginning Dec. 14, 1985, and ending Dec. 31, 1985. Pub. L. 99–157, § 3, Nov. 15, 1985, 99 Stat. 818, provided that the amendment made by section 3 is effective for the period beginning Nov. 16, 1985, and ending Dec. 13, 1985. Pub. L. 99–114, § 2, Oct. 1, 1985, 99 Stat. 488, provided that the amendment made by section 2 is effective for the period beginning Oct. 1, 1985, and ending Nov. 15, 1985. EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENT Pub. L. 98–204, § 1, Dec. 2, 1983, 97 Stat. 1385, 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. Pub. L. 97–253, title I, § 184(b), Sept. 8, 1982, 96 Stat. 785, as amended by Pub. L. 98–107, § 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 [now the Food and Nutri- tion Act of 2008] (7 U.S.C. 2028(b)) by the Common- wealth 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 Pub. L. 97–35, title I, § 116(a), Aug. 13, 1981, 95 Stat. 364, provided that this section is effective July 1, 1982. NUTRITION ASSISTANCE PROGRAM IN PUERTO RICO Pub. L. 101–624, title XVII, § 1762(a), Nov. 28, 1990, 104 Stat. 3804, 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 pro- grams.’’ NUTRITIONAL NEEDS OF PUERTO RICANS; STUDY AND REPORT TO CONGRESS Pub. L. 101–624, title XVII, § 1762(c), (d), Nov. 28, 1990, 104 Stat. 3805, as amended by Pub. L. 110–234, title IV, § 4002(b)(1)(A), (B), (D), (2)(KK), May 22, 2008, 122 Stat. 1095, 1096, 1098; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(A), (B), (D), (2)(KK), June 18, 2008, 122 Stat. 1664, 1857, 1859, 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 Common- wealth; ‘‘(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 Gen- eral considers appropriate; and ‘‘(2) the potential alternative means of providing nutritional assistance in the Commonwealth of Puer- to Rico, including— ‘‘(A) the impact of restoring the Commonwealth to the supplemental nutrition assistance program; ‘‘(B) increasing the benefits provided under the nutrition assistance program to the aggregate value of supplemental nutrition assistance program benefits coupons that would be distributed to households in the Commonwealth if the Common- wealth were to participate in the supplemental nu- trition assistance program; and ‘‘(C) the usefulness of adjustments to standards of eligibility and other factors appropriate to the cir- cumstances of the Commonwealth comparable to those adjustments made under the Food and Nutri- tion Act of 2008 (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 re- port on the findings of the study required under sub- section (c) to the Committee on Agriculture of the Page 1378 TITLE 7—AGRICULTURE § 2029 House of Representatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate.’’ STUDY OF FOOD ASSISTANCE PROGRAM IN PUERTO RICO; REPORT TO CONGRESS BY MARCH 1, 1985 Pub. L. 98–204, § 2, Dec. 2, 1983, 97 Stat. 1385, directed the Secretary of Agriculture to conduct a study of the food assistance program in Puerto Rico and to submit a final report of the findings of the study to Commit- tees of Congress no later than Mar. 1, 1985. AMOUNT PAYABLE TO THE COMMONWEALTH OF PUERTO RICO FOR FISCAL YEAR 1982; PLANS TO BE SUB- MITTED TO THE SECRETARY FOR GRANTS FOR FISCAL YEARS 1982 AND 1983 Pub. L. 97–35, title I, § 116(b), Aug. 13, 1981, 95 Stat. 366, provided for a payment of $206,500,000 to Puerto Rico for fiscal year 1982, notwithstanding the provisions of this section, and required Puerto Rico to submit the plan required by the provisions of subsec. (b) of this section by Apr. 1, 1982, to receive payments for fiscal years 1982 and 1983. § 2029. Workfare (a) Program plan; guidelines; compliance (1) The Secretary shall permit any political subdivision, in any State, that applies and sub- mits a plan to the Secretary in compliance with guidelines promulgated by the Secretary to op- erate a workfare program pursuant to which every member of a household participating in the supplemental nutrition assistance 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 al- lotment to which the household is entitled under section 2017(a) of this title, with each hour of such work entitling that household to a por- tion 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 guide- lines 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 de- termines 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 sec- tion 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 satisfac- torily 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 sub- ject to the requirements of this section or is employed fulltime. (c) Valuation or duration of work No operating agency shall require any partici- pating member to work in any workfare position to the extent that such work exceeds in value the allotment to which the household is other- wise 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 in- eligible under section 2015(d)(1) of this title to participate in the supplemental nutrition assist- ance 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 ex- penses incurred by such agency in operating a workfare program, including reimbursements to participants for work-related expenses as de- scribed 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 dol- lar value of the decrease in allotments issued to households, to the extent that such decrease re- sults from wages received by members of such households for the first month of employment beginning after the date such members com- mence 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