7 U.S.C. § 2025 — Administrative cost-sharing and quality

Page 1338 TITLE 7—AGRICULTURE § 2025 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) and 4115(b)(10) 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 1981 AMENDMENT Amendment by Pub. L. 97–98 effective on earlier of Sept. 8, 1982, or date such amendment became effective pursuant to section 1338 of Pub. L. 97–98, set out as a note under section 2012 of this title, see section 192(b) of Pub. L. 97–253, set out as a note under section 2012 of this title. Amendment by Pub. L. 97–98 effective upon such date as Secretary of Agriculture may prescribe, taking into account need for orderly implementation, see section 1338 of Pub. L. 97–98, set out as a note under section 2012 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Pub. L. 95–113, title XIII, § 1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendment made by section 1301 is effective Oct. 1, 1977. § 2025. Administrative cost-sharing and quality control (a) Administrative costs Subject to subsection (k), the Secretary is au- thorized 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 supplemental nutrition assistance pro- gram, which costs shall include, but not be lim- ited to, the cost of (1) the certification of appli- cant households, (2) the acceptance, storage, protection, control, and accounting of benefits after their delivery to receiving points within the State, (3) the issuance of benefits to all eli- gible households, (4) informational activities re- lating to the supplemental nutrition assistance program, including those undertaken under sec- tion 2020(e)(1)(A) of this title, but not including recruitment activities designed to persuade an individual to apply for program benefits or that promote the program through television, radio, or billboard advertisements, (5) fair hearings, (6) automated data processing and information re- trieval systems subject to the conditions set forth in subsection (g), (7) supplemental nutri- tion assistance program investigations and pros- ecutions, (8) implementing and operating the immigration status verification system estab- lished under section 1137(d) of the Social Secu- rity Act (42 U.S.C. 1320b–7(d)), and (9) estab- lishing and operating a longitudinal database in accordance with section 2026(n) of this title: Pro- vided, That the Secretary is authorized at the Secretary’s discretion to pay any State agency administering the supplemental nutrition as- sistance program on all or part of an Indian res- ervation under section 2020(d) of this title or in a Native village within the State of Alaska iden- tified in section 1610(b) of title 43, such amounts for administrative costs as the Secretary deter- mines to be necessary for effective operation of the supplemental nutrition assistance program, as well as to permit each State to retain 35 per- cent of the value of all funds or allotments re- covered 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 allot- ments 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 provi- sions of this subsection. (b) Work supplementation or support program (1) ‘‘Work supplementation or support pro- gram’’ defined In this subsection, the term ‘‘work sup- plementation 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 supplemental nutrition assistance program) is provided to an em- ployer to be used for hiring and employing a public assistance recipient who was not em- ployed 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 supple- mental nutrition assistance program, but for the operation of this subsection, for the pur- pose of subsidizing or supporting a job under a work supplementation or support program es- tablished by the State. (3) Procedure If a State agency makes an election under paragraph (2) and identifies each household that participates in the supplemental nutri- tion assistance program that contains an indi- vidual who is participating in the work sup- plementation 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 eligi- ble 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 al- lotment from the State agency for the pe- riod during which the member continues to participate in the work supplementation or support program. Page 1339 TITLE 7—AGRICULTURE § 2025 (4) Other work requirements No individual shall be excused, by reason of the fact that a State has a work supplemen- tation or support program, from any work re- quirement under section 2015(d) of this title, except during the periods in which the indi- vidual is employed under the work supplemen- tation 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 em- ployment to employment that is not supple- mented or supported. (6) Displacement A work supplementation or support program shall not displace the employment of individ- uals who are not supplemented or supported. (c) Quality control system (1) In general (A) System (i) In general In carrying out the supplemental nutri- tion assistance program, the Secretary shall carry out a system that enhances payment accuracy and improves adminis- tration by establishing fiscal incentives that require State agencies with high pay- ment error rates to share in the cost of payment error. (ii) Tolerance level for excluding small er- rors The Secretary shall set the tolerance level for excluding small errors for the purposes of this subsection— (I) for fiscal year 2014, at an amount not greater than $37; and (II) for each fiscal year thereafter, the amount specified in subclause (I) ad- justed by the percentage by which the thrifty food plan is adjusted under sec- tion 2012(u)(4) of this title between June 30, 2013, and June 30 of the immediately preceding fiscal year. (B) Quality control system integrity (i) In general Not later than 180 days after December 20, 2018, the Secretary shall issue interim final regulations that— (I) ensure that the quality control sys- tem established under this subsection produces valid statistical results; (II) provide for oversight of contracts entered into by a State agency for the purpose of improving payment accuracy; (III) ensure the accuracy of data col- lected under the quality control system established under this subsection; and (IV) for each fiscal year, to the max- imum extent practicable, provide for the evaluation of the integrity of the quality control process of not fewer than 2 State agencies, selected in accordance with criteria determined by the Secretary. (ii) Debarment In accordance with the nonprocurement debarment procedures under part 417 of title 2, Code of Federal Regulations, or successor regulations, the Secretary shall debar any person that, in carrying out the quality control system established under this subsection, knowingly submits, or causes to be submitted, false information to the Secretary. (C) Establishment of liability amount for fis- cal year 2003 and thereafter With respect to fiscal year 2004 and any fis- cal year thereafter for which the Secretary determines that, for the second or subse- quent consecutive fiscal year, a 95 percent statistical probability exists that the pay- ment error rate of a State agency exceeds 105 percent of the national performance measure for payment error rates announced under paragraph (6), the Secretary shall es- tablish an amount for which the State agen- cy may be liable (referred to in this para- graph as the ‘‘liability amount’’) that is equal to the product obtained by multi- plying— (i) the value of all allotments issued by the State agency in the fiscal year; (ii) the difference between— (I) the payment error rate of the State agency; and (II) 6 percent; and (iii) 10 percent. (D) Authority of Secretary with respect to li- ability amount With respect to the liability amount estab- lished for a State agency under subpara- graph (C) for any fiscal year, the Secretary shall— (i)(I) require that a portion, not to ex- ceed 50 percent, of the liability amount es- tablished for the fiscal year be used by the State agency for new investment, ap- proved by the Secretary, to improve ad- ministration by the State agency of the supplemental nutrition assistance pro- gram (referred to in this paragraph as the ‘‘new investment amount’’), which new in- vestment amount shall not be matched by Federal funds; (II) designate a portion, not to exceed 50 percent, of the amount established for the fiscal year for payment to the Secretary in accordance with subparagraph (E) (re- ferred to in this paragraph as the ‘‘at-risk amount’’); or (III) take any combination of the actions described in subclauses (I) and (II); or (ii) make the determinations described in clause (i) and enter into a settlement with the State agency, only with respect to any new investment amount, before the end of the fiscal year in which the liability amount is determined under subparagraph (C). (E) Payment of at-risk amount for certain States (i) In general A State agency shall pay to the Sec- retary the at-risk amount designated under subparagraph (D)(i)(II) for any fiscal Page 1340 TITLE 7—AGRICULTURE § 2025 year in accordance with clause (ii), if, with respect to the immediately following fiscal year, a liability amount has been estab- lished for the State agency under subpara- graph (C). (ii) Method of payment of at-risk amount (I) Remission to the Secretary In the case of a State agency required to pay an at-risk amount under clause (i), as soon as practicable after comple- tion of all administrative and judicial re- views with respect to that requirement to pay, the chief executive officer of the State shall remit to the Secretary the at-risk amount required to be paid. (II) Alternative method of collection (aa) In general If the chief executive officer of the State fails to make the payment under subclause (I) within a reasonable pe- riod of time determined by the Sec- retary, the Secretary may reduce any amount due to the State agency under any other provision of this section by the amount required to be paid under clause (i). (bb) Accrual of interest During any period of time deter- mined by the Secretary under item (aa), interest on the payment under subclause (I) shall not accrue under section 2022(a)(2) of this title. (F) Use of portion of liability amount for new investment (i) Reduction of other amounts due to State agency In the case of a State agency that fails to comply with a requirement for new in- vestment under subparagraph (D)(i)(I) or clause (iii)(I), the Secretary may reduce any amount due to the State agency under any other provision of this section by the portion of the liability amount that has not been used in accordance with that re- quirement. (ii) Effect of State agency’s wholly pre- vailing on appeal If a State agency begins required new in- vestment under subparagraph (D)(i)(I), the State agency appeals the liability amount of the State agency, and the determina- tion by the Secretary of the liability amount is reduced to $0 on administrative or judicial review, the Secretary shall pay to the State agency an amount equal to 50 percent of the new investment amount that was included in the liability amount subject to the appeal. (iii) Effect of Secretary’s wholly prevailing on appeal If a State agency does not begin required new investment under subparagraph (D)(i)(I), the State agency appeals the li- ability amount of the State agency, and the determination by the Secretary of the liability amount is wholly upheld on ad- ministrative or judicial review, the Sec- retary shall— (I) require all or any portion of the new investment amount to be used by the State agency for new investment, ap- proved by the Secretary, to improve ad- ministration by the State agency of the supplemental nutrition assistance pro- gram, which amount shall not be matched by Federal funds; and (II) require payment of any remaining portion of the new investment amount in accordance with subparagraph (E)(ii). (iv) Effect of neither party’s wholly pre- vailing on appeal The Secretary shall promulgate regula- tions regarding obligations of the Sec- retary and the State agency in a case in which the State agency appeals the liabil- ity amount of the State agency and nei- ther the Secretary nor the State agency wholly prevails. (G) Corrective action plans The Secretary shall foster management improvements by the States by requiring State agencies, other than State agencies with payment error rates of less than 6 per- cent, to develop and implement corrective action plans to reduce payment errors. (2) Error rate definitions As used in this section— (A) the term ‘‘payment error rate’’ means the sum of the point estimates of an over- payment error rate and an underpayment error rate determined by the Secretary from data collected in a probability sample of par- ticipating households; (B) the term ‘‘overpayment error rate’’ means the percentage of the value of all al- lotments issued in a fiscal year by a State agency that are either— (i) issued to households that fail to meet basic program eligibility requirements; or (ii) overissued to eligible households; and (C) the term ‘‘underpayment error rate’’ means the ratio of the value of allotments underissued to recipient households to the total value of allotments issued in a fiscal year by a State agency. (3) Exclusions The following errors may be measured for management purposes but shall not be in- cluded 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 re- quired implementation date for such regula- tions. (B) Errors resulting from the use by a State agency of correctly processed informa- tion concerning households or individuals received from Federal agencies or from ac- tions based on policy information approved or disseminated, in writing, by the Sec- retary or the Secretary’s designee. (4) Reporting requirements The Secretary may require a State agency to report any factors that the Secretary con- Page 1341 TITLE 7—AGRICULTURE § 2025 siders necessary, including providing access to applicable State records and the entire infor- mation systems in which the records are con- tained, to determine a State agency’s payment error rate, liability amount or new investment amount under paragraph (1), or performance under the performance measures under sub- section (d). If a State agency fails to meet the reporting requirements established by the Sec- retary, the Secretary shall base the deter- mination on all pertinent information avail- able to the Secretary. (5) Procedures To facilitate the implementation of this sub- section, each State agency shall expeditiously submit to the Secretary data concerning the operations of the State agency in each fiscal year sufficient for the Secretary to establish the State agency’s payment error rate, liabil- ity amount or new investment amount under paragraph (1), or performance under the per- formance measures under subsection (d). The Secretary shall initiate efforts to collect the amount owed by the State agency as a claim established under paragraph (1) for a fiscal year, subject to the conclusion of any formal or informal appeal procedure and administra- tive or judicial review under section 2023 of this title (as provided for in paragraph (7)), be- fore the end of the fiscal year following such fiscal year. (6) National performance measure for payment error rates (A) Announcement At the time the Secretary makes the noti- fication to State agencies of their error rates, the Secretary shall also announce a national performance measure that shall be the sum of the products of each State agen- cy’s error rate as developed for the notifica- tions under paragraph (8) times that State agency’s proportion of the total value of na- tional allotments issued for the fiscal year using the most recent issuance data avail- able at the time of the notifications issued pursuant to paragraph (8). (B) Use of alternative measure of State error Where a State fails to meet reporting re- quirements pursuant to paragraph (4), the Secretary may use another measure of a State’s error developed pursuant to para- graph (5), to develop the national perform- ance measure. (C) Use of national performance measure The announced national performance measure shall be used in determining the li- ability amount of a State under paragraph (1)(C) for the fiscal year whose error rates are being announced under paragraph (8). (D) No administrative or judicial review The national performance measure an- nounced under this paragraph shall not be subject to administrative or judicial review. (7) Administrative and judicial review (A) In general Except as provided in subparagraphs (B) and (C), if the Secretary asserts a financial claim against or establishes a liability amount with respect to a State agency under paragraph (1), the State may seek ad- ministrative and judicial review of the ac- tion pursuant to section 2023 of this title. (B) Determination of payment error rate With respect to any fiscal year, a deter- mination of the payment error rate of a State agency or a determination whether the payment error rate exceeds 105 percent of the national performance measure for payment error rates shall be subject to ad- ministrative or judicial review only if the Secretary establishes a liability amount with respect to the fiscal year under para- graph (1)(C). (C) Authority of Secretary with respect to li- ability amount An action by the Secretary under subpara- graph (D) or (F)(iii) of paragraph (1) shall not be subject to administrative or judicial review. (8) Criteria for payment by a State agency (A) This paragraph applies to the determina- tion of whether a payment is due by a State agency for a fiscal year under paragraph (1). (B) Not later than the first May 31 after the end of the fiscal year referred to in subpara- graph (A), the case review and all arbitrations of State-Federal difference cases shall be com- pleted. (C) Not later than the first June 30 after the end of the fiscal year referred to in subpara- graph (A), the Secretary shall— (i) determine final error rates, the na- tional average payment error rate, and the amounts of payment claimed against State agencies or liability amount established with respect to State agencies; (ii) notify State agencies of the payment claims or liability amounts; and (iii) provide a copy of the document pro- viding notification under clause (ii) to the chief executive officer and the legislature of the State. (D) A State agency desiring to appeal a pay- ment claim or liability amount determined under subparagraph (C) shall submit to an ad- ministrative law judge— (i) a notice of appeal, not later than 10 days after receiving a notice of the claim or liability amount; and (ii) evidence in support of the appeal of the State agency, not later than 60 days after re- ceiving a notice of the claim or liability amount. (E) Not later than 60 days after a State agen- cy submits evidence in support of the appeal, the Secretary shall submit responsive evi- dence to the administrative law judge to the extent such evidence exists. (F) Not later than 30 days after the Sec- retary 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— Page 1342 TITLE 7—AGRICULTURE § 2025 (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 re- buttal evidence, not later than 90 days after the State agency submits the notice of ap- peal and evidence in support of the appeal. (H) In considering a claim or liability amount under this paragraph, the administra- tive law judge shall consider all grounds for denying the claim or liability amount, in whole or in part, including the contention of a State agency that the claim or liability amount should be waived, in whole or in part, for good cause. (I) The deadlines in subparagraphs (D), (E), (F), and (G) shall be extended by the adminis- trative law judge for cause shown. (9) ‘‘Good cause’’ defined As used in this subsection, the term ‘‘good cause’’ includes— (A) a natural disaster or civil disorder that adversely affects supplemental nutrition as- sistance program operations; (B) a strike by employees of a State agen- cy who are necessary for the determination of eligibility and processing of case changes under the supplemental nutrition assistance program; (C) a significant growth in the caseload under the supplemental nutrition assistance program in a State prior to or during a fiscal year, such as a 15 percent growth in case- load; (D) a change in the supplemental nutrition assistance program or other Federal or State program that has a substantial ad- verse impact on the management of the sup- plemental nutrition assistance program of a State; and (E) a significant circumstance beyond the control of the State agency. (d) State performance indicators (1) Fiscal years 2003 and 2004 (A) Guidance With respect to fiscal years 2003 and 2004, the Secretary shall establish, in guidance issued to State agencies not later than Octo- ber 1, 2002— (i) performance criteria relating to— (I) actions taken to correct errors, re- duce rates of error, and improve eligi- bility determinations; and (II) other indicators of effective admin- istration determined by the Secretary; and (ii) standards for high and most im- proved performance to be used in awarding performance bonus payments under sub- paragraph (B)(ii). (B) Performance bonus payments With respect to each of fiscal years 2003 and 2004, the Secretary shall— (i) measure the performance of each State agency with respect to the criteria established under subparagraph (A)(i); and (ii) subject to paragraph (3), award per- formance bonus payments in the following fiscal year, in a total amount of $48,000,000 for each fiscal year, to State agencies that meet standards for high or most improved performance established by the Secretary under subparagraph (A)(ii). (2) Fiscal years 2005 through 2017 (A) Regulations With respect to fiscal year 2005 through fiscal year 2017, the Secretary shall— (i) establish, by regulation, performance criteria relating to— (I) actions taken to correct errors, re- duce rates of error, and improve eligi- bility determinations; and (II) other indicators of effective admin- istration determined by the Secretary; (ii) establish, by regulation, standards for high and most improved performance to be used in awarding performance bonus payments under subparagraph (B)(ii); and (iii) before issuing proposed regulations to carry out clauses (i) and (ii), solicit ideas for performance criteria and stand- ards for high and most improved perform- ance from State agencies and organiza- tions that represent State interests. (B) Performance bonus payments With respect to fiscal year 2005 through fiscal year 2017, the Secretary shall— (i) measure the performance of each State agency with respect to the criteria established under subparagraph (A)(i); and (ii) subject to paragraph (3), award per- formance bonus payments in the following fiscal year, in a total amount of $48,000,000 for each fiscal year, to State agencies that meet standards for high or most improved performance established by the Secretary under subparagraph (A)(ii). (3) Prohibition on receipt of performance bonus payments A State agency shall not be eligible for a performance bonus payment with respect to any fiscal year for which the State agency has a liability amount established under sub- section (c)(1)(C). (4) Payments not subject to judicial review A determination by the Secretary whether, and in what amount, to award a performance bonus payment under this subsection shall not be subject to administrative or judicial re- view. (5) Use of performance bonus payments A State agency may use a performance bonus payment received under this subsection only to carry out the program established under this chapter, including investments in— (A) technology; (B) improvements in administration and distribution; and (C) actions to prevent fraud, waste, and abuse. (6) Fiscal year 2018 and fiscal years thereafter (A) With respect to fiscal year 2018 and each fiscal year thereafter, the Secretary shall es- tablish, by regulation, performance criteria relating to— Page 1343 TITLE 7—AGRICULTURE § 2025 (i) actions taken to correct errors, reduce rates of error, and improve eligibility deter- minations; and (ii) other indicators of effective adminis- tration determined by the Secretary. (B) The Secretary shall not award perform- ance bonus payments to State agencies in fis- cal year 2019 for fiscal year 2018 performance. (e) Use of social security account numbers; ac- cess to information The Secretary and State agencies shall (1) re- quire, as a condition of eligibility for participa- tion in the supplemental nutrition assistance program, that each household member furnish to the State agency their social security ac- count number (or numbers, if they have more than one number), and (2) use such account numbers in the administration of the supple- mental nutrition assistance program. The Sec- retary and State agencies shall have access to the information regarding individual supple- mental nutrition assistance 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 Commis- sioner of Social Security, but only to the extent that the Secretary and the Commissioner of So- cial Security determine necessary for purposes of determining or auditing a household’s eligi- bility to receive assistance or the amount there- of under the supplemental nutrition assistance program, or verifying information related there- to. (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 Depart- ment of Agriculture may be paid in judicial or administrative proceedings to which such offi- cers and employees have been made parties and that arise directly out of their performance of duties under this chapter. (g) Cost sharing for computerization (1) In general Except as provided in paragraph (2), the Sec- retary is authorized to pay to each State agen- cy the amount provided under subsection (a)(6) for the costs incurred by the State agency in the— (A) planning, design, development, or in- stallation of 1 or more automatic data proc- essing and information retrieval systems that the Secretary determines— (i) would assist in meeting the require- ments of this chapter; (ii) meet such conditions as the Sec- retary prescribes; (iii) are likely to provide more efficient and effective administration of the supple- mental nutrition assistance program; (iv) would be compatible with other sys- tems used in the administration of State programs, including the program funded under part A of title IV of the Social Secu- rity Act (42 U.S.C. 601 et seq.); (v) would be tested adequately before and after implementation, including a re- quirement that— (I) such testing shall be accomplished through pilot projects in limited areas for major systems changes (as deter- mined under rules promulgated by the Secretary); (II) each pilot project described in sub- clause (I) that is carried out before the implementation of a system shall be con- ducted in a live-production environment; and (III) the data resulting from each pilot project carried out under this clause shall be thoroughly evaluated before the Secretary approves the system to be im- plemented more broadly; (vi) would be operated in accordance with an adequate plan for— (I) continuous updating to reflect changed policy and circumstances; and (II) testing the effect of the system on access for eligible households and on payment accuracy; and (vii) would be accessible by the Sec- retary for inspection and audit under sec- tion 2020(a)(3)(B) of this title; and (B) operation of 1 or more automatic data processing and information retrieval sys- tems that the Secretary determines may continue to be operated in accordance with clauses (i) through (vii) of subparagraph (A). (2) Limitation The Secretary shall not make payments to a State agency under paragraph (1) to the extent that the State agency— (A) is reimbursed for the costs under any other Federal program; or (B) uses the systems for purposes not con- nected with the supplemental nutrition as- sistance program. (h) Funding of employment and training pro- grams (1) IN GENERAL.— (A) AMOUNTS.—To carry out employment and training programs, the Secretary shall re- serve for allocation to State agencies, to re- main available for 24 months, from funds made available for each fiscal year under section 2027(a)(1) of this title, $103,900,000 for each fis- cal year. (B) ALLOCATION.—Funds made available under subparagraph (A) shall be made avail- able to and reallocated among State agencies under a reasonable formula that— (i) is determined and adjusted by the Sec- retary; and (ii) takes into account the number of indi- viduals who are not exempt from the work requirement under section 2015(o) of this title. (C) REALLOCATION.— (i) IN GENERAL.—If a State agency will not expend all of the funds allocated to the State agency for a fiscal year under subpara- graph (B), the Secretary, subject to clauses (ii) through (v), shall reallocate the unex- pended funds to other States (during the fis- cal year or the subsequent fiscal year) as the Secretary considers appropriate and equi- table. Page 1344 TITLE 7—AGRICULTURE § 2025 (ii) TIMING.—The Secretary shall collect such information as the Secretary deter- mines to be necessary about the expendi- tures and anticipated expenditures by the State agencies of the funds initially allo- cated to the State agencies under subpara- graph (A) to make reallocations of unex- pended funds under clause (i) within a time- frame that allows each State agency to which funds are reallocated at least 270 days to expend the reallocated funds. (iii) OPPORTUNITY.—The Secretary shall ensure that all State agencies have an op- portunity to obtain reallocated funds. (iv) PRIORITY.—The Secretary shall reallo- cate funds under this subparagraph as fol- lows: (I)(aa) Subject to items (bb) and (cc), not less than 50 percent shall be reallocated to State agencies requesting such funds to conduct employment and training pro- grams and activities for which such State agencies had previously received funding under subparagraph (F)(viii) that the Sec- retary determines have the most demon- strable impact on the ability of partici- pants to find and retain employment that leads to increased household income and reduced reliance on public assistance. (bb) The Secretary shall base the deter- mination under item (aa) on— (AA) project results from the inde- pendent evaluations conducted under subparagraph (F)(vii)(I); or (BB) if the project results from the independent evaluations conducted under subparagraph (F)(vii)(I) are not yet available, the reports under subpara- graph (F)(vii)(II) or other information relating to performance of the programs and activities funded under subpara- graph (F)(viii). (cc) Employment and training activities funded under this subclause are not sub- ject to subparagraph (F)(vii), but are sub- ject to monitoring under paragraph (h)(5). (II) Not less than 30 percent shall be re- allocated to State agencies requesting such funds to implement or continue em- ployment and training programs and ac- tivities under section 2015(d)(4)(B)(i) of this title that the Secretary determines have the most demonstrable impact on the abil- ity of participants to find and retain em- ployment that leads to increased house- hold income and reduced reliance on public assistance, including programs and activi- ties that are targeted to— (aa) individuals 50 years of age or older; (bb) formerly incarcerated individuals; (cc) individuals participating in a sub- stance abuse treatment program; (dd) homeless individuals; (ee) people with disabilities seeking to enter the workforce; (ff) other individuals with substantial barriers to employment; or (gg) households facing multi- generational poverty, to support employ- ment and workforce participation through an integrated and family-fo- cused approach in providing supportive services. (III) The Secretary shall reallocate any remaining funds available under this sub- paragraph, to State agencies requesting such funds to use for employment and training programs and activities that the Secretary determines have the most de- monstrable impact on the ability of par- ticipants to find and retain employment that leads to increased household income and reduced reliance on public assistance under section 2015(d)(4)(B)(i) of this title. (v) CONSIDERATION.—In reallocating funds under this subparagraph, a State agency that receives reallocated funds under clause (iv)(I) may also be considered for reallocated funding under clause (iv)(II). (D) MINIMUM ALLOCATION.—Notwithstanding subparagraph (B), the Secretary shall ensure that each State agency operating an employ- ment and training program shall receive not less than $100,000 for each fiscal year. (E) ADDITIONAL ALLOCATIONS FOR STATES THAT ENSURE AVAILABILITY OF WORK OPPORTUNI- TIES.— (i) IN GENERAL.—In addition to the alloca- tions under subparagraph (A), from funds made available under section 2027(a)(1) of this title, the Secretary shall allocate not more than $20,000,000 for each fiscal year to reimburse a State agency that is eligible under clause (ii) for the costs incurred in serving members of households receiving supplemental nutrition assistance program benefits 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 pro- gram described in subparagraph (B) or (C) of section 2015(o)(2) of this title. (ii) ELIGIBILITY.—To be eligible for an ad- ditional allocation under clause (i), a State agency shall make and comply with a com- mitment to offer a position in a program de- scribed in subparagraph (B) or (C) of section 2015(o)(2) of this title to each applicant or re- cipient who— (I) is in the last month of the 3-month period described in section 2015(o)(2) of this title; (II) is not eligible for an exception under section 2015(o)(3) of this title; (III) is not eligible for a waiver under section 2015(o)(4) of this title; and (IV) is not exempt under section 2015(o)(6) of this title. (F) PILOT PROJECTS TO REDUCE DEPENDENCY AND INCREASE WORK REQUIREMENTS AND WORK EFFORT UNDER SUPPLEMENTAL NUTRITION AS- SISTANCE PROGRAM.— (i) PILOT PROJECTS REQUIRED.— (I) IN GENERAL.—The Secretary shall carry out pilot projects under which State agencies shall enter into cooperative agreements with the Secretary to develop and test methods, including operating work programs with certain features com- Page 1345 TITLE 7—AGRICULTURE § 2025 parable to the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), for employment and training pro- grams and services to raise the number of work registrants under section 2015(d) of this title who obtain unsubsidized employ- ment, increase the earned income of the registrants, and reduce the reliance of the registrants on public assistance, so as to reduce the need for supplemental nutrition assistance benefits. (II) REQUIREMENTS.—Pilot projects shall— (aa) meet such terms and conditions as the Secretary considers to be appro- priate; and (bb) except as otherwise provided in this subparagraph, be in accordance with the requirements of sections 2015(d) and 2029 of this title. (ii) SELECTION CRITERIA.— (I) IN GENERAL.—The Secretary shall se- lect pilot projects under this subparagraph in accordance with the criteria established under this clause and additional criteria established by the Secretary. (II) QUALIFYING CRITERIA.—To be eligible to participate in a pilot project, a State agency shall— (aa) agree to participate in the evalua- tion described in clause (vii), including providing evidence that the State has a robust data collection system for pro- gram administration and cooperating to make available State data on the em- ployment activities and post-participa- tion employment, earnings, and public benefit receipt of participants to ensure proper and timely evaluation; (bb) commit to collaborate with the State workforce board and other job training programs in the State and local area; and (cc) commit to maintain at least the amount of State funding for employment and training programs and services under paragraphs (2) and (3) and under section 2029 of this title as the State ex- pended for fiscal year 2013. (III) SELECTION CRITERIA.—In selecting pilot projects, the Secretary shall— (aa) consider the degree to which the pilot project would enhance existing em- ployment and training programs in the State; (bb) consider the degree to which the pilot project would enhance the employ- ment and earnings of program partici- pants; (cc) consider whether there is evidence that the pilot project could be replicated easily by other States or political sub- divisions; (dd) consider whether the State agency has a demonstrated capacity to operate high quality employment and training programs; and (ee) ensure the pilot projects, when considered as a group, test a range of strategies, including strategies that— (AA) target individuals with low skills or limited work experience, indi- viduals subject to the requirements under section 2015(o) of this title, and individuals who are working; (BB) are located in a range of geo- graphic areas and States, including rural and urban areas; (CC) emphasize education and train- ing, rehabilitative services for individ- uals with barriers to employment, rapid attachment to employment, and mixed strategies; and (DD) test programs that assign work registrants to mandatory and vol- untary participation in employment and training activities. (iii) ACCOUNTABILITY.— (I) IN GENERAL.—The Secretary shall es- tablish and implement a process to termi- nate a pilot project for which the State has failed to meet the criteria described in clause (ii) or other criteria established by the Secretary. (II) TIMING.—The process shall include a reasonable time period, not to exceed 180 days, for State agencies found noncompli- ant to correct the noncompliance. (iv) EMPLOYMENT AND TRAINING ACTIVI- TIES.—Allowable programs and services car- ried out under this subparagraph shall in- clude those programs and services author- ized under this chapter and employment and training activities authorized under the pro- gram of block grants to States for tem- porary assistance for needy families estab- lished under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), includ- ing: (I) Employment in the public or private sector that is not subsidized by any public program. (II) Employment in the private sector for which the employer receives a subsidy from public funds to offset all or a part of the wages and costs of employing an adult. (III) Employment in the public sector for which the employer receives a subsidy from public funds to offset all or a part of the wages and costs of employing an adult. (IV) A work activity that— (aa) is performed in return for public benefits; (bb) provides an adult with an oppor- tunity to acquire the general skills, knowledge, and work habits necessary to obtain employment; (cc) is designed to improve the employ- ability of those who cannot find unsub- sidized employment; and (dd) is supervised by an employer, work site sponsor, or other responsible party on an ongoing basis. (V) Training in the public or private sec- tor that— (aa) is given to a paid employee while the employee is engaged in productive work; and (bb) provides knowledge and skills es- sential to the full and adequate perform- ance of the job. Page 1346 TITLE 7—AGRICULTURE § 2025 (VI) Job search, obtaining employment, or preparation to seek or obtain employ- ment, including— (aa) life skills training; (bb) substance abuse treatment or mental health treatment, determined to be necessary and documented by a quali- fied medical, substance abuse, or mental health professional; and (cc) rehabilitation activities, super- vised by a public agency or other respon- sible party on an ongoing basis. (VII) Structured programs and embedded activities— (aa) in which adults perform work for the direct benefit of the community under the auspices of public or nonprofit organizations; (bb) that are limited to projects that serve useful community purposes in fields such as health, social service, envi- ronmental protection, education, urban and rural redevelopment, welfare, recre- ation, public facilities, public safety, and child care; (cc) that are designed to improve the employability of adults not otherwise able to obtain unsubsidized employment; (dd) that are supervised on an ongoing basis; and (ee) with respect to which a State agency takes into account, to the max- imum extent practicable, the prior train- ing, experience, and skills of a recipient in making appropriate community serv- ice assignments. (VIII) Career and technical training pro- grams that are— (aa) directly related to the preparation of adults for employment in current or emerging occupations; and (bb) supervised on an ongoing basis. (IX) Training or education for job skills that are— (aa) required by an employer to pro- vide an adult with the ability to obtain employment or to advance or adapt to the changing demands of the workplace; and (bb) supervised on an ongoing basis. (X) Education that is— (aa) related to a specific occupation, job, or job offer; and (bb) supervised on an ongoing basis. (XI) In the case of an adult who has not completed secondary school or received a certificate of general equivalence, regular attendance that is— (aa) in accordance with the require- ments of the secondary school or course of study, at a secondary school or in a course of study leading to a certificate of general equivalence; and (bb) supervised on an ongoing basis. (XII) Providing child care to enable an- other recipient of public benefits to par- ticipate in a community service program that— (aa) does not provide compensation for the community service; (bb) is a structured program designed to improve the employability of adults who participate in the program; and (cc) is supervised on an ongoing basis. (v) SANCTIONS.—Subject to clause (vi), no work registrant shall be eligible to partici- pate in the supplemental nutrition assist- ance program if the individual refuses with- out good cause to participate in an employ- ment and training program under this sub- paragraph, to the extent required by the State agency. (vi) STANDARDS.— (I) IN GENERAL.—Employment and train- ing activities under this subparagraph shall be considered to be carried out under section 2015(d) of this title, including for the purpose of satisfying any conditions of participation and duration of ineligibility. (II) STANDARDS FOR CERTAIN EMPLOYMENT ACTIVITIES.—The Secretary shall establish standards for employment activities de- scribed in subclauses (I), (II), and (III) of clause (iv) that ensure that failure to work for reasons beyond the control of an indi- vidual, such as involuntary reduction in hours of employment, shall not result in ineligibility. (III) PARTICIPATION IN OTHER PRO- GRAMS.—Before assigning a work reg- istrant to mandatory employment and training activities, a State agency shall— (aa) assess whether the work reg- istrant is participating in substantial employment and training activities out- side of the pilot project that are ex- pected to result in the work registrant gaining increased skills, training, work, or experience consistent with the objec- tives of the pilot project; and (bb) if determined to be acceptable, count hours engaged in the activities to- ward any minimum participation re- quirement. (vii) EVALUATION AND REPORTING.— (I) INDEPENDENT EVALUATION.— (aa) IN GENERAL.—The Secretary shall, under such terms and conditions as the Secretary determines to be appropriate, conduct for each State agency that en- ters into a cooperative agreement under clause (i) an independent longitudinal evaluation of each pilot project of the State agency under this subparagraph, with results reported not less frequently than in consecutive 12-month incre- ments. (bb) PURPOSE.—The purpose of the independent evaluation shall be to meas- ure the impact of employment and train- ing programs and services provided by each State agency under the pilot projects on the ability of adults in each pilot project target population to find and retain employment that leads to in- creased household income and reduced reliance on public assistance, as well as other measures of household well-being, Page 1347 TITLE 7—AGRICULTURE § 2025 compared to what would have occurred in the absence of the pilot project. (cc) METHODOLOGY.—The independent evaluation shall use valid statistical methods that can determine, for each pilot project, the difference, if any, be- tween supplemental nutrition assistance and other public benefit receipt expendi- tures, employment, earnings and other impacts as determined by the Sec- retary— (AA) as a result of the employment and training programs and services provided by the State agency under the pilot project; as compared to (BB) a control group that is not sub- ject to the employment and training programs and services provided by the State agency under the pilot project. (II) REPORTING.—Not later than Decem- ber 31, 2015, and each December 31 there- after until the completion of the last eval- uation under subclause (I), the Secretary shall submit to the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutri- tion, and Forestry of the Senate and share broadly, including by posting on the Inter- net website of the Department of Agri- culture, a report that includes a descrip- tion of— (aa) the status of each pilot project carried out under this subparagraph; (bb) the results of the evaluation com- pleted during the previous fiscal year; (cc) to the maximum extent prac- ticable, baseline information relevant to the stated goals and desired outcomes of the pilot project; (dd) the employment and training pro- grams and services each State tested under the pilot, including— (AA) the system of the State for as- sessing the ability of work registrants to participate in and meet the require- ments of employment and training ac- tivities and assigning work registrants to appropriate activities; and (BB) the employment and training activities and services provided under the pilot; (ee) the impact of the employment and training programs and services on appro- priate employment, income, and public benefit receipt as well as other outcomes among households participating in the pilot project, relative to households not participating; and (ff) the steps and funding necessary to incorporate into State employment and training programs and services the com- ponents of the pilot projects that dem- onstrate increased employment and earnings. (viii) FUNDING.— (I) IN GENERAL.—Subject to subclause (II), from amounts made available under section 2027(a)(1) of this title, the Sec- retary shall use to carry out this subpara- graph— (aa) for fiscal year 2014, $10,000,000; and (bb) for fiscal year 2015, $190,000,000. (II) LIMITATIONS.— (aa) IN GENERAL.—The Secretary shall not fund more than 10 pilot projects under this subparagraph. (bb) DURATION.—Each pilot project shall be in effect for not more than 3 years. (III) AVAILABILITY OF FUNDS.—Funds made available under subclause (I) shall remain available through September 30, 2018. (ix) USE OF FUNDS.— (I) IN GENERAL.—Funds made available under this subparagraph for pilot projects shall be used only for— (aa) pilot projects that comply with this chapter; (bb) the program and administrative costs of carrying out the pilot projects; (cc) the costs incurred in developing systems and providing information and data for the independent evaluations under clause (vii); and (dd) the costs of the evaluations under clause (vii). (II) MAINTENANCE OF EFFORT.—Funds made available under this subparagraph shall be used only to supplement, not to supplant, non-Federal funds used for exist- ing employment and training activities or services. (III) OTHER FUNDS.—In carrying out pilot projects, States may contribute additional funds obtained from other sources, includ- ing Federal, State, or private funds, on the condition that the use of the contributions is permissible under Federal law. (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 fa- cilitate the transition from economic depend- ency to self-sufficiency through work. (3) The Secretary shall also reimburse each State agency in an amount equal to 50 per cen- tum of the total amount of payments made or costs incurred by the State agency in connec- tion with transportation costs and other ex- penses reasonably necessary and directly related to participation in an employment and training program under section 2015(d)(4) of this title or a pilot project under paragraph (1)(F), except that the amount of the reimbursement for de- pendent care expenses shall not exceed an amount equal to the payment made under sec- tion 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 sec- tion 2015(d)(4) of this title or a pilot project Page 1348 TITLE 7—AGRICULTURE § 2025 under paragraph (1)(F), and may not be used for carrying out other provisions of this chapter. (5) MONITORING.— (A) IN GENERAL.—The Secretary shall mon- itor the employment and training programs carried out by State agencies under section 2015(d)(4) of this title and assess the effective- ness of the programs in— (i) preparing members of households par- ticipating in the supplemental nutrition as- sistance program for employment, including the acquisition of basic skills necessary for employment; and (ii) increasing the number of household members who obtain and retain employment subsequent to participation in the employ- ment and training programs. (B) REPORTING MEASURES.— (i) IN GENERAL.—The Secretary, in con- sultation with the Secretary of Labor, shall develop State reporting measures that iden- tify improvements in the skills, training, education, or work experience of members of households participating in the supple- mental nutrition assistance program. (ii) REQUIREMENTS.—Measures shall— (I) be based on common measures of per- formance for Federal workforce training programs; and (II) include additional indicators that re- flect the challenges facing the types of members of households participating in the supplemental nutrition assistance pro- gram who participate in a specific employ- ment and training component. (iii) STATE REQUIREMENTS.—The Secretary shall require that each State employment and training plan submitted under section 2020(e)(19) of this title identifies appropriate reporting measures for each proposed com- ponent that serves a threshold number of participants determined by the Secretary of at least 100 people a year. (iv) INCLUSIONS.—Reporting measures de- scribed in clause (iii) may include— (I) the percentage and number of pro- gram participants who received employ- ment and training services and are in un- subsidized employment subsequent to the receipt of those services; (II) the percentage and number of pro- gram participants who obtain a recognized credential, including a registered appren- ticeship, or a regular secondary school di- ploma or its recognized equivalent, while participating in, or within 1 year after re- ceiving, employment and training services; (III) the percentage and number of pro- gram participants who are in an education or training program that is intended to lead to a recognized credential, including a registered apprenticeship or on-the-job training program, a regular secondary school diploma or its recognized equiva- lent, or unsubsidized employment; (IV) subject to terms and conditions es- tablished by the Secretary, measures de- veloped by each State agency to assess the skills acquisition of employment and training program participants that reflect the goals of the specific employment and training program components of the State agency, which may include, at a min- imum— (aa) the percentage and number of pro- gram participants who are meeting pro- gram requirements in each component of the education and training program of the State agency; (bb) the percentage and number of pro- gram participants who are gaining skills likely to lead to employment as meas- ured through testing, quantitative or qualitative assessment, or other method; and (cc) the percentage and number of pro- gram participants who do not comply with employment and training require- ments and who are ineligible under sec- tion 2015(b) of this title; and (V) other indicators approved by the Sec- retary. (v) STATE OPTION.—The State agency may report relevant data from a workforce part- nership carried out under section 2015(d)(4)(N) of this title to demonstrate the number of program participants served by the workforce partnership. (C) OVERSIGHT OF STATE EMPLOYMENT AND TRAINING ACTIVITIES.—The Secretary shall as- sess State employment and training programs on a periodic basis to ensure— (i) compliance with Federal employment and training program rules and regulations; (ii) that program activities are appropriate to meet the needs of the individuals referred by the State agency to an employment and training program component; (iii) that reporting measures are appro- priate to identify improvements in skills, training, work and experience for partici- pants in an employment and training pro- gram component; and (iv) for States receiving additional alloca- tions under paragraph (1)(E), any informa- tion the Secretary may require to evaluate the compliance of the State agency with paragraph (1), which may include— (I) a report for each fiscal year of the number of individuals in the State who meet the conditions of paragraph (1)(E)(ii), the number of individuals the State agen- cy offers a position in a program described in subparagraph (B) or (C) of section 2015(o)(2) of this title, and the number who participate in such a program; (II) a description of the types of employ- ment and training programs the State agency uses to comply with paragraph (1)(E) and the availability of those pro- grams throughout the State; and (III) any additional information the Sec- retary determines to be appropriate. (D) STATE REPORT.—Each State agency shall annually prepare and submit to the Secretary a report on the State employment and train- ing program that includes, using measures identified under subparagraph (B), the num- bers of supplemental nutrition assistance pro- Page 1349 TITLE 7—AGRICULTURE § 2025 gram participants who have gained skills, training, work, or experience that will in- crease the ability of the participants to obtain regular employment. (E) MODIFICATIONS TO THE STATE EMPLOY- MENT AND TRAINING PLAN.—Subject to terms and conditions established by the Secretary, if the Secretary determines that the perform- ance of a State agency with respect to employ- ment and training outcomes is inadequate, the Secretary may require the State agency to make modifications to the State employment and training plan to improve the outcomes. (F) PERIODIC EVALUATION.—Subject to terms and conditions established by the Secretary, not later than October 1, 2016, and not less fre- quently than once every 5 years thereafter, the Secretary shall conduct a study to review existing practice and research to identify em- ployment and training program components and practices that— (i) effectively assist members of house- holds participating in the supplemental nu- trition assistance program in gaining skills, training, work, or experience that will in- crease the ability of the participants to ob- tain regular employment; and (ii) are best integrated with statewide workforce development systems. (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)) that impair the integrity of the supplemental nutrition assistance 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 supplemental nutrition assistance 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 specifi- cally designed to be used by the State agency to provide intensive training to State agency per- sonnel who undertake the certification of house- holds 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 pro- gram of aid to families with dependent chil- dren 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 Agri- culture and the States, shall, with respect to the base period for each State, determine— (A) the annualized amount the State re- ceived 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 eli- gible or applying for the AFDC program and the supplemental nutrition assistance pro- gram, the AFDC program and the medicaid program, and the AFDC program, the supple- mental nutrition assistance 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 Se- curity Act (42 U.S.C. 1396b(a)(7) (as so in ef- fect)), and subsection (a) of this section (as so in effect), for administrative costs com- mon to determining the eligibility of indi- viduals, families, and households eligible or applying for the AFDC program and the sup- plemental nutrition assistance program, the AFDC program and the medicaid program, and the AFDC program, the supplemental nutrition assistance program, and the med- icaid program, if those costs had been allo- cated 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, the Secretary shall reduce, for each fiscal year, the amount paid under sub- section (a) to each State by an amount equal to the amount determined for the supple- mental nutrition assistance program under paragraph (2)(B). The Secretary shall, to the extent practicable, make the reductions re- quired 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 de- terminations are made, the Secretary shall reduce the amount paid under sub- section (a) to each State by an amount Page 1350 TITLE 7—AGRICULTURE § 2025 equal to the sum of the amounts deter- mined for the supplemental nutrition as- sistance 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, sub- paragraph (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 of- ficer 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 sub- paragraph (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 con- sider an appeal filed by a State under clause (i) on the basis of such documenta- tion as the State may submit and as the administrative law judge may require to support the final decision of the adminis- trative law judge. (iii) Review In deciding whether to uphold a deter- mination, in whole or in part, the adminis- trative 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 administra- tive 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 sub- paragraph (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 ap- peal 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 para- graph shall not affect the requirement that the Secretary reduce payments in accord- ance with paragraph (3). (5) Allocation of administrative costs (A) In general No funds or expenditures described in sub- paragraph (B) may be used to pay for costs— (i) eligible for reimbursement under sub- section (a) (or costs that would have been eligible for reimbursement but for this subsection); and (ii) allocated for reimbursement to the supplemental nutrition assistance pro- gram under a plan submitted by a State to the Secretary of Health and Human Serv- ices 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)); 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 supple- mental nutrition assistance program. (Pub. L. 88–525, § 16, Aug. 31, 1964, 78 Stat. 709; Pub. L. 90–91 §§ 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, § 9, Jan. 11, 1971, 84 Stat. 2052; Pub. L. 93–86, § 3(j), Aug. 10, 1973, 87 Stat. 248; Pub. L. 95–113, title XIII, § 1301, Sept. 29, 1977, 91 Stat. 976; Pub. L. 96–58, §§ 4, 6, Aug. 14, 1979, 93 Stat. 391; Pub. L. 96–249, title I, §§ 121, 125, 126, 128, 129, May 26, 1980, 94 Stat. 363, 364, 367; Pub. L. 97–35, title I, §§ 111(b), 114, Aug. 13, 1981, 95 Stat. 362, 363; Pub. L. 97–98, title XIII, §§ 1325–1327, Dec. 22, 1981, 95 Stat. 1289; Pub. L. 97–253, title I, §§ 179, 180(a), 189(b)(3), (c), Sept. 8, 1982, 96 Stat. 782, 787; Pub. L. 99–198, title XV, §§ 1517(c), 1524, 1535(c)(1), 1537(a), 1539, Dec. 23, 1985, 99 Stat. 1577, 1580, 1585, 1588; Pub. L. 99–603, title I, § 121(b)(5), Nov. 6, 1986, 100 Stat. 3391; Pub. L. 100–77, title VIII, § 808(b), July 22, 1987, 101 Stat. 536; Pub. L. 100–435, title II, § 204(b), title III, § 321(b), (c), title Page 1351 TITLE 7—AGRICULTURE § 2025 IV, § 404(e), (g), title VI, § 604, Sept. 19, 1988, 102 Stat. 1657, 1662, 1668, 1675; Pub. L. 101–624, title XVII, §§ 1750, 1752(a), 1753, Nov. 28, 1990, 104 Stat. 3797, 3798; Pub. L. 102–237, title IX, § 941(7), Dec. 13, 1991, 105 Stat. 1892; Pub. L. 103–66, title XIII, §§ 13922(c), 13951(c), 13961, Aug. 10, 1993, 107 Stat. 675, 678, 679; Pub. L. 103–296, title I, § 108(f)(2), Aug. 15, 1994, 108 Stat. 1487; Pub. L. 104–66, title I, § 1011(j), Dec. 21, 1995, 109 Stat. 710; Pub. L. 104–127, title IV, § 401(b), Apr. 4, 1996, 110 Stat. 1026; Pub. L. 104–193, title I, § 109(c), title VIII, §§ 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, § 1002(a), Aug. 5, 1997, 111 Stat. 252; Pub. L. 105–185, title V, §§ 501, 502(a), June 23, 1998, 112 Stat. 575; Pub. L. 106–78, title VII, § 758, Oct. 22, 1999, 113 Stat. 1172; Pub. L. 107–171, title IV, §§ 4118(a), 4119(a), 4120(a), 4121(a), (d), 4122(a), May 13, 2002, 116 Stat. 316, 321, 323, 324; Pub. L. 110–234, title IV, §§ 4001(b), 4002(a)(8), 4115(b)(11), 4121, 4122, 4406(a)(3), (4), May 22, 2008, 122 Stat. 1092, 1094, 1108, 1113, 1140, 1141; Pub. L. 110–246, § 4(a), title IV, §§ 4001(b), 4002(a)(8), 4115(b)(11), 4121, 4122, 4406(a)(3), (4), June 18, 2008, 122 Stat. 1664, 1853, 1855, 1869, 1874, 1875, 1902; Pub. L. 112–240, title VII, § 701(d)(1), Jan. 2, 2013, 126 Stat. 2363; Pub. L. 113–76, div. A, title VII, § 717, Jan. 17, 2014, 128 Stat. 36; Pub. L. 113–79, title IV, §§ 4018(a), 4019, 4020(a), (b)(2), 4021, 4022(a), (b)(2), 4030(i), Feb. 7, 2014, 128 Stat. 797–799, 808, 814; Pub. L. 115–334, title IV, §§ 4005(d), 4012, 4013(b)–(e), 4015(b), Dec. 20, 2018, 132 Stat. 4632, 4641–4643, 4648.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsecs. (e), (g)(1)(D), (h)(1)(F)(i)(I), (iv), and (k), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is clas- sified generally to part A (§ 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 gen- erally to subchapters XVI (§ 1381 et seq.), XIX (§ 1396 et seq.), and XX (§ 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 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 2018—Subsec. (a). Pub. L. 115–334, § 4015(b), added cl. (9). Subsec. (c)(1)(B). Pub. L. 115–334, § 4013(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) related to adjustment of Federal share of administra- tive costs for fiscal years before fiscal year 2003. Subsec. (c)(4). Pub. L. 115–334, § 4013(c), inserted ‘‘, including providing access to applicable State records and the entire information systems in which the records are contained,’’ after ‘‘the Secretary con- siders necessary’’. Subsec. (d). Pub. L. 115–334, § 4013(d)(1), substituted ‘‘State performance indicators’’ for ‘‘Bonuses for States that demonstrate high or most improved performance’’ in heading. Subsec. (d)(2). Pub. L. 115–334, § 4013(d)(2)(A), sub- stituted ‘‘through 2017’’ for ‘‘and thereafter’’ in head- ing. Subsec. (d)(2)(A), (B). Pub. L. 115–334, § 4013(d)(2)(B), (C), substituted ‘‘through fiscal year 2017’’ for ‘‘and each fiscal year thereafter’’ in introductory provisions. Subsec. (d)(6). Pub. L. 115–334, § 4013(d)(3), added par. (6). Subsec. (g)(1). Pub. L. 115–334, § 4012(2), (3), in intro- ductory provisions, substituted ‘‘paragraph (2)’’ for ‘‘paragraphs (2) and (3)’’ and ‘‘in the—’’ for ‘‘in the’’, in- serted subpar. (A) designation before ‘‘planning’’, and redesignated former subpars. (A) to (D) as cls. (i) to (iv), respectively, of subpar. (A). Subsec. (g)(1)(A)(v). Pub. L. 115–334, § 4012(2), (4), re- designated subsec. (g)(1)(E) as cl. (v) of subsec. (g)(1)(A) and substituted ‘‘, including a requirement that—’’, subcls. (I) and (II), and ‘‘(III) the data resulting from each pilot project carried out under this clause’’ for ‘‘, including through pilot projects in limited areas for major systems changes as determined under rules pro- mulgated by the Secretary, data from which’’. Subsec. (g)(1)(A)(vi). Pub. L. 115–334, § 4012(1), (2), re- designated subsec. (g)(1)(F) as cl. (vi) of subsec. (g)(1)(A) and cls. (i) and (ii) of former subpar. (F) as subcls. (I) and (II), respectively, of cl. (vi). Subsec. (g)(1)(A)(vii). Pub. L. 115–334, §§ 4012(5), 4013(e), added cl. (vii). Subsec. (g)(1)(B). Pub. L. 115–334, § 4012(6), added sub- par. (B). Former subpar. (B) redesignated cl. (ii) of sub- sec. (g)(1)(A). Subsec. (g)(1)(C) to (F). Pub. L. 115–334, § 4012(2), redes- ignated subpars. (C) to (F) as cls. (iii) to (vi), respec- tively, of subsec. (g)(1)(A). Subsec. (h)(1)(A). Pub. L. 115–334, § 4005(d)(1)(A), sub- stituted ‘‘$103,900,000’’ for ‘‘$90,000,000’’. Subsec. (h)(1)(C)(i). Pub. L. 115–334, § 4005(d)(1)(B)(i), inserted ‘‘, subject to clauses (ii) through (v),’’ before ‘‘shall reallocate’’. Subsec. (h)(1)(C)(iv), (v). Pub. L. 115–334, § 4005(d)(1)(B)(ii), added cls. (iv) and (v). Subsec. (h)(1)(D). Pub. L. 115–334, § 4005(d)(1)(C), sub- stituted ‘‘$100,000’’ for ‘‘$50,000’’. Subsec. (h)(5)(B)(v). Pub. L. 115–334, § 4005(d)(2), added cl. (v). 2014—Subsec. (a). Pub. L. 113–79, § 4030(i), made tech- nical amendment to reference in original act which was executed in text by striking out period after ‘‘section 1610(b) of title 43’’ in proviso following cl. (8). Subsec. (a)(4). Pub. L. 113–79, § 4018(a), inserted ‘‘de- signed to persuade an individual to apply for program benefits or that promote the program through tele- vision, radio, or billboard advertisements’’ after ‘‘re- cruitment activities’’. Subsec. (c)(1)(A). Pub. L. 113–79, § 4019, designated ex- isting provisions as cl. (i), inserted heading, and added cl. (ii). Subsec. (c)(1)(D)(i). Pub. L. 113–79, § 4020(a), (b)(2)(A)(i), redesignated subcls. (II) to (IV) as (I) to (III), respectively, substituted ‘‘and (II)’’ for ‘‘through (III)’’ in subcl. (III), and struck out former subcl. (I) which read as follows: ‘‘waive the responsibility of the State agency to pay all or any portion of the liability amount established for the fiscal year (referred to in this paragraph as the ‘waiver amount’);’’. Subsec. (c)(1)(D)(ii). Pub. L. 113–79, § 4020(b)(2)(A)(ii), struck out ‘‘waiver amount or’’ before ‘‘new invest- ment’’. Subsec. (c)(1)(E)(i). Pub. L. 113–79, § 4020(b)(2)(B), sub- stituted ‘‘(D)(i)(II)’’ for ‘‘(D)(i)(III)’’. Subsec. (c)(1)(F). Pub. L. 113–79, § 4020(b)(2)(C), sub- stituted ‘‘(D)(i)(I)’’ for ‘‘(D)(i)(II)’’ wherever appearing. Subsec. (d)(5). Pub. L. 113–79, § 4021, added par. (5). Subsec. (h)(1)(A). Pub. L. 113–79, § 4022(a)(1)(A), sub- stituted ‘‘24 months’’ for ‘‘15 months’’ and struck out ‘‘, except that for fiscal year 2013 and fiscal year 2014, the amount shall be $79,000,000’’ before period at end. Pub. L. 113–76 inserted ‘‘and fiscal year 2014’’ after ‘‘2013’’. Subsec. (h)(1)(C). Pub. L. 113–79, § 4022(a)(1)(B), des- ignated existing provisions as cl. (i), inserted heading, and added cls. (ii) and (iii). Subsec. (h)(1)(F). Pub. L. 113–79, § 4022(a)(1)(C), added subpar. (F). Subsec. (h)(3), (4). Pub. L. 113–79, § 4022(b)(2), inserted ‘‘or a pilot project under paragraph (1)(F)’’ after ‘‘sec- tion 2015(d)(4) of this title’’. Page 1352 TITLE 7—AGRICULTURE § 2025 Subsec. (h)(5). Pub. L. 113–79, § 4022(a)(2), added par. (5) and struck out former par. (5) which read as follows: ‘‘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 effec- tiveness 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.’’ 2013—Subsec. (h)(1)(A). Pub. L. 112–240 inserted ‘‘, except that for fiscal year 2013, the amount shall be $79,000,000’’ before period at end. 2008—Pub. L. 110–246, § 4001(b), substituted ‘‘supple- mental nutrition assistance program’’ for ‘‘food stamp program’’ wherever appearing in subsecs. (a) to (c), (e), (i), and (k). Subsec. (a)(2), (3). Pub. L. 110–246, § 4115(b)(11), sub- stituted ‘‘benefits’’ for ‘‘coupons’’. Subsec. (a)(4). Pub. L. 110–246, § 4002(a)(8)(A), sub- stituted ‘‘informational activities relating to the sup- plemental nutrition assistance program’’ for ‘‘food stamp informational activities’’. Subsec. (c)(9)(C). Pub. L. 110–246, § 4002(a)(8)(B), sub- stituted ‘‘the caseload under the supplemental nutri- tion assistance program’’ for ‘‘food stamp caseload’’. Subsec. (g). Pub. L. 110–246, § 4121, added subsec. (g) and struck out former subsec. (g) which read as follows: ‘‘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: Provided, That there shall be no such payments to the extent that a State agency is re- imbursed for such costs under any other Federal pro- gram or uses such systems for purposes not connected with the food stamp program: Provided further, That any costs matched under this subsection shall be ex- cluded in determining the State agency’s administra- tive costs under any other subsection of this section.’’ Subsec. (h)(1)(A). Pub. L. 110–246, § 4406(a)(3)(A), sub- stituted provisions relating to reservation of $90,000,000 for each fiscal year for provisions relating to reserva- tion of $75,000,000 for fiscal year 1996, $79,000,000 for fis- cal year 1997, $81,000,000 and an additional $131,000,000 for fiscal year 1998, $84,000,000 and an additional $31,000,000 for fiscal year 1999, $86,000,000 and an addi- tional $86,000,000 fiscal year 2000, $88,000,000 and an addi- tional $131,000,000 for fiscal year 2001, and $90,000,000 for each of fiscal years 2002 through 2007. Pub. L. 110–246, § 4122, substituted ‘‘to remain avail- able for 15 months’’ for ‘‘to remain available until ex- pended’’. Subsec. (h)(1)(E)(i). Pub. L. 110–246, § 4406(a)(3)(B), sub- stituted ‘‘for each fiscal year’’ for ‘‘for each of fiscal years 2002 through 2007’’ in introductory provisions. Pub. L. 110–246, § 4002(a)(8)(C), substituted ‘‘members of households receiving supplemental nutrition assist- ance program benefits’’ for ‘‘food stamp recipients’’ in introductory provisions. Subsec. (k)(3)(A). Pub. L. 110–246, § 4406(a)(4)(A), struck out ‘‘effective for each of fiscal years 1999 through 2007,’’ before ‘‘the Secretary shall reduce’’. Subsec. (k)(3)(B)(ii). Pub. L. 110–246, § 4406(a)(4)(B), struck out ‘‘through fiscal year 2007’’ after ‘‘for each subsequent fiscal year’’. 2002—Subsec. (c). Pub. L. 107–171, § 4118(a)(1), inserted heading. Subsec. (c)(1). Pub. L. 107–171, § 4118(a)(1), added par. (1) and struck out former par. (1) which related to pay- ment error improvement system. Subsec. (c)(4). Pub. L. 107–171, § 4118(a)(2), inserted heading and substituted ‘‘The Secretary may require a State agency to report any factors that the Secretary considers necessary to determine a State agency’s pay- ment error rate, liability amount or new investment amount under paragraph (1), or performance under the performance measures under subsection (d).’’ for ‘‘The Secretary may require a State agency to report any factors that the Secretary considers necessary to deter- mine a State agency’s payment error rate, enhanced administrative funding, or claim for payment error, under this subsection.’’ Subsec. (c)(5). Pub. L. 107–171, § 4118(a)(3), inserted heading and substituted ‘‘To facilitate the implementa- tion of this subsection, each State agency shall expedi- tiously submit to the Secretary data concerning the operations of the State agency in each fiscal year suffi- cient for the Secretary to establish the State agency’s payment error rate, liability amount or new invest- ment amount under paragraph (1), or performance under the performance measures under subsection (d).’’ for ‘‘To facilitate the implementation of this sub- section each State agency shall submit to the Sec- retary expeditiously data regarding its operations in each fiscal year sufficient for the Secretary to estab- lish the payment error rate for the State agency for such fiscal year and determine the amount of either in- centive payments under paragraph (1)(A) or claims under paragraph (1)(C). The Secretary shall make a de- termination for a fiscal year, and notify the State agency of such determination, within nine months fol- lowing the end of each fiscal year.’’ and ‘‘paragraph (1) for a fiscal year’’ for ‘‘paragraph (1)(C) for a fiscal year’’. Subsec. (c)(6). Pub. L. 107–171, § 4118(a)(4), inserted heading, designated first sentence as subpar. (A), in- serted heading, struck out ‘‘and incentive payments or claims pursuant to paragraphs (1)(A) and (1)(C)’’ after ‘‘State agencies of their error rates’’, and substituted ‘‘paragraph (8)’’ for ‘‘paragraph (5)’’ in two places, des- ignated second sentence as subpar. (B) and inserted heading, designated third sentence as subpar. (C), in- serted heading, and substituted ‘‘the liability amount of a State under paragraph (1)(C)’’ for ‘‘the State share of the cost of payment error under paragraph (1)(C)’’ and ‘‘paragraph (8)’’ for ‘‘paragraph (5)’’, and added sub- par. (D). Subsec. (c)(7). Pub. L. 107–171, § 4118(a)(5), inserted heading, designated existing provisions as subpar. (A), inserted heading, substituted ‘‘Except as provided in subparagraphs (B) and (C), if the Secretary asserts a fi- nancial claim against or establishes a liability amount with respect to’’ for ‘‘If the Secretary asserts a finan- cial claim against’’ and ‘‘paragraph (1)’’ for ‘‘paragraph (1)(C)’’, and added subpars. (B) and (C). Subsec. (c)(8)(A). Pub. L. 107–171, § 4118(a)(6)(A), sub- stituted ‘‘paragraph (1)’’ for ‘‘paragraph (1)(C)’’. Subsec. (c)(8)(B). Pub. L. 107–171, § 4119(a)(1), sub- stituted ‘‘the first May 31 after the end of the fiscal year referred to in subparagraph (A)’’ for ‘‘180 days after the end of the fiscal year’’. Subsec. (c)(8)(C). Pub. L. 107–171, § 4119(a)(2), sub- stituted ‘‘the first June 30 after the end of the fiscal year referred to in subparagraph (A)’’ for ‘‘30 days thereafter’’ in introductory provisions. Subsec. (c)(8)(C)(i). Pub. L. 107–171, § 4118(a)(6)(B)(i), substituted ‘‘payment claimed against State agencies or liability amount established with respect to State agencies;’’ for ‘‘payment claimed against State agen- cies; and’’. Subsec. (c)(8)(C)(ii). Pub. L. 107–171, § 4118(a)(6)(B)(ii), substituted ‘‘claims or liability amounts; and’’ for ‘‘claims.’’ Subsec. (c)(8)(C)(iii). Pub. L. 107–171, § 4118(a)(6)(B)(iii), added cl. (iii). Subsec. (c)(8)(D), (H). Pub. L. 107–171, § 4118(a)(6)(C), inserted ‘‘or liability amount’’ after ‘‘claim’’ wherever appearing. Subsec. (d). Pub. L. 107–171, § 4120(a), added subsec. (d) and struck out former subsec. (d) which read as follows: ‘‘The Secretary shall undertake the following studies of the payment error improvement system established under subsection (c) of this section: Page 1353 TITLE 7—AGRICULTURE § 2025 ‘‘(1) An assessment of the feasibility of measuring payment errors due to improper denials and termi- nations of benefits or otherwise developing perform- ance standards with financial consequences for im- proper denials and terminations, including incorpora- tion in subsection (c) of this section. The Secretary shall report the results of such study and the rec- ommendations of the Secretary to the Congress by July 1, 1990. ‘‘(2) An evaluation of the effectiveness of the sys- tem of program improvement initiated under this section that shall be reported to the Congress along with the Secretary’s recommendations no later than 3 years from September 19, 1988.’’ Subsec. (h)(1)(A)(vii). Pub. L. 107–171, § 4121(a)(1), added cl. (vii) and struck out former cl. (vii) which read as follows: ‘‘for fiscal year 2002— ‘‘(I) $90,000,000; and ‘‘(II) an additional amount of $75,000,000.’’ Subsec. (h)(1)(B). Pub. L. 107–171, § 4121(a)(2), added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: ‘‘(i) ALLOCATION FORMULA.—The Secretary shall allo- cate the amounts reserved under subparagraph (A) among the State agencies using a reasonable formula, as determined and adjusted by the Secretary each fis- cal 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 eligi- ble 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 sec- tion 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 re- cipients who are not eligible for an exception under section 2015(o)(3) of this title. ‘‘(ii) ESTIMATED FACTORS.—The Secretary shall esti- mate 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 con- ducted to carry out subsection (c) of this section for fis- cal year 1996 and such other factors as the Secretary considers appropriate due to the timing and limitations of the survey. ‘‘(iii) REPORTING REQUIREMENT.—A State agency shall submit such reports to the Secretary as the Secretary determines are necessary to ensure compliance with this paragraph.’’ Subsec. (h)(1)(E) to (G). Pub. L. 107–171, § 4121(a)(3), added subpar. (E) and struck out heading and text of former subpars. (E) to (G) which related to use of funds, maintenance of effort, and component costs, respec- tively. Subsec. (h)(3). Pub. L. 107–171, § 4121(d), substituted ‘‘the amount of the reimbursement for dependent care expenses shall not exceed’’ for ‘‘such total amount shall not exceed an amount representing $25 per participant per month for costs of transportation and other actual costs (other than dependent care costs) and’’. Subsec. (k)(3)(A). Pub. L. 107–171, § 4122(a)(1), sub- stituted ‘‘2007’’ for ‘‘2002’’. Subsec. (k)(3)(B)(ii). Pub. L. 107–171, § 4122(a)(2), sub- stituted ‘‘2007’’ for ‘‘2002’’. 1999—Subsec. (a). Pub. L. 106–78, which directed the amendment of ‘‘the Food Stamp Act (Public Law 95–113, section 16(a))’’ by inserting ‘‘or in a Native vil- lage within the State of Alaska identified in section 1610(b) of title 43.’’ before ‘‘such amounts’’, was exe- cuted 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 prob- able intent of Congress. 1998—Subsec. (a). Pub. L. 105–185, § 502(a)(1), sub- stituted ‘‘Subject to subsection (k), the Secretary’’ for ‘‘The Secretary’’ in first sentence. Subsec. (h)(1)(A)(iv)(II). Pub. L. 105–185, § 501(1), sub- stituted ‘‘$31,000,000’’ for ‘‘$131,000,000’’. Subsec. (h)(1)(A)(v)(II). Pub. L. 105–185, § 501(2), sub- stituted ‘‘$86,000,000’’ for ‘‘$131,000,000’’. Subsec. (k). Pub. L. 105–185, § 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, §§ 844(c), 847, in- serted ‘‘but not including recruitment activities,’’ be- fore ‘‘(5) fair’’ and substituted ‘‘35 percent of the value of all funds or allotments recovered or collected pursu- ant 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 al- lotments recovered or collected that arise’’ for ‘‘25 per- cent 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 col- lected pursuant to subsections (b)(1) and (c) of section 2022 of this title and 10 percent during the period begin- ning October 1, 1990, and ending September 30, 1995, and 25 percent thereafter of the value of all funds or allot- ments recovered or collected pursuant to section 2022(b)(2) of this title, except the value of funds or al- lotments recovered or collected pursuant to section 2022(b)(2) of this title which arise’’. Subsec. (b). Pub. L. 104–193, §§ 848(a), 849, added subsec. (b) and struck out former subsec. (b) which read as fol- lows: ‘‘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 ef- fectiveness standards established pursuant to clause (1) of this subsection.’’ Subsec. (c)(1)(B). Pub. L. 104–193, § 848(b)(2), struck out ‘‘pursuant to subsection (b) of this section’’ after ‘‘by the States’’. Subsec. (g)(4). Pub. L. 104–193, § 109(c), substituted ‘‘State programs funded under part A of’’ for ‘‘State plans under the Aid to Families with Dependent Chil- dren Program under’’. Subsec. (h). Pub. L. 104–193, § 817(b), inserted subsec. heading. Subsec. (h)(1). Pub. L. 104–193, § 817(b), added par. (1) and struck out former par. (1) which authorized Sec- retary to allocate funds among State agencies for each of the fiscal years 1991 through 2002 to carry out em- ployment and training program under section 2015(d)(4) of this title. Pub. L. 104–127, § 401(b), substituted ‘‘2002’’ for ‘‘1995’’ wherever appearing in subpars. (A), (B), (D), and (E)(ii). Subsec. (h)(2). Pub. L. 104–193, § 817(c), inserted before period at end ‘‘, including the costs for case manage- ment and casework to facilitate the transition from economic dependency to self-sufficiency through work’’. Subsec. (h)(5). Pub. L. 104–193, § 817(d)(1), struck out ‘‘(A)’’ before ‘‘The Secretary shall’’ and struck out sub- par. (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, § 817(d)(2), struck out par. (6) which read as follows: ‘‘The Secretary shall de- Page 1354 TITLE 7—AGRICULTURE § 2025 velop, 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 effec- tiveness of the various States in carrying out employ- ment 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 Agri- culture of the House of Representatives and the Com- mittee 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 ‘‘Com- missioner of Social Security’’ for ‘‘Secretary of Health and Human Services’’ in two places. 1993—Subsec. (a). Pub. L. 103–66, § 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 cen- tum of the costs of State food stamp program inves- tigations and prosecutions, and is further’’ after ‘‘That the Secretary is’’. Subsec. (c)(1)(C). Pub. L. 103–66, § 13951(c)(1), sub- stituted ‘‘national performance measure’’ for ‘‘payment error tolerance level’’ and substituted ‘‘equal to—’’ fol- lowed 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, § 13951(c)(2), sub- stituted ‘‘120 days’’ for ‘‘60 days (or 90 days at the dis- cretion of the Secretary)’’. Subsec. (c)(6). Pub. L. 103–66, § 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 per- formance measure ever announced up to and including such fiscal year under this section. The payment-error tolerance level’’ after ‘‘The announced national per- formance measure’’. Subsec. (c)(8), (9). Pub. L. 103–66, § 13951(c)(4), added pars. (8) and (9). Subsec. (g). Pub. L. 103–66, § 13961(2), which directed the substitution of ‘‘the amount provided under sub- section (a)(6) of this section for’’ for ‘‘an amount equal to 63 percent effective on October 1, 1991, of’’, was exe- cuted 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, § 13922(c), substituted ‘‘equal to the payment made under section 2015(d)(4)(I)(i)(II) of this title but not more than the ap- plicable local market rate,’’ for ‘‘representing $160 per month per dependent’’. Subsecs. (j), (k). Pub. L. 103–66, § 13961(3), (4), redesig- nated 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, § 941(7)(A), inserted a comma after ‘‘1991’’. Subsec. (h)(4). Pub. L. 102–237, § 941(7)(B), substituted ‘‘this chapter’’ for ‘‘the chapter’’. 1990—Subsec. (a). Pub. L. 101–624, § 1750, substituted ‘‘25 percent during the period beginning October 1, 1990, and ending September 30, 1995, and 50 percent there- after’’ 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, § 1752(a), substituted ‘‘The’’ for ‘‘Effective October 1, 1980, the’’ and ‘‘63 per- cent effective on October 1, 1991’’ for ‘‘75 per centum’’. Subsec. (h)(1). Pub. L. 101–624, § 1753, amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘The Secretary shall allocate among the State agen- cies 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 Sep- tember 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, § 204(b), sub- stituted ‘‘, including those undertaken’’ for ‘‘per- mitted’’. Subsec. (c). Pub. L. 100–435, § 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, § 604(2), added subsec. (d) and struck out former subsec. (d) which defined ‘‘pay- ment error rate’’ and instituted error rate reduction program. Subsec. (h). Pub. L. 100–435, § 321(c), redesignated sub- sec. (h), relating to payment of costs of immigration status verification system, as (j). Subsec. (h)(3). Pub. L. 100–435, § 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, § 404(e), added par. (6). Subsec. (j). Pub. L. 100–435, § 321(c), redesignated sub- sec. (h), relating to payment of costs of immigration status verification system, as (j). Subsec. (k). Pub. L. 100–435, § 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 sec- tion, subsec. (h) relating to payment of costs of immi- gration status verification system. 1985—Subsec. (a). Pub. L. 99–198, § 1535(c)(1), sub- stituted ‘‘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, § 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, § 1537(a)(1), inserted ‘‘less any amount payable as a result of the use by the State agency of correctly processed information re- ceived from an automatic information exchange system made available by any Federal department or agency’’. Subsec. (d)(6). Pub. L. 99–198, § 1537(a)(2), added par. (6). Subsec. (h). Pub. L. 99–198, § 1517(c), added subsec. (h) relating to authorization of appropriations, etc. Subsec. (i). Pub. L. 99–198, § 1539, added subsec. (i). 1982—Subsec. (a). Pub. L. 97–253, § 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, § 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 administra- tive costs in the case of a State agency whose (A) semi- annual cumulative allotment error rates with respect to eligibility, overissuance, and underissuance as cal- culated in the quality control program undertaken pur- suant 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 con- trol program conducted under subsection (d)(1) of this Page 1355 TITLE 7—AGRICULTURE § 2025 section is less than a nationwide percentage that the Secretary determines to be reasonable; (2) effective Oc- tober 1, 1980, 65 per centum of all such administrative costs in the case of a State agency meeting the stand- ards contained in paragraph (1) of this subsection; (3) effective October 1, 1980, 60 per centum of all such ad- ministrative 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, which- ever is lower, and which also meets the standard con- tained in paragraph (1)(B) of this subsection; and (4) ef- fective October 1, 1980, 55 per centum of all such admin- istrative costs in the case of a State agency whose an- nual 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 sub- section. 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 sub- section.’’ Subsec. (d). Pub. L. 97–253, § 180(a)(2), (3), added sub- sec. (d), and struck out former subsec. (d) which pro- vided that effective October 1, 1981, and annually there- after, each State not receiving an increased share of ad- ministrative costs pursuant to subsec. (c)(2) of this sec- tion was required to develop and submit to the Sec- retary for approval, as part of the plan of operation re- quired 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, §§ 180(a)(2), 189(b)(3), redes- ignated subsec. (f) as (e), substituted reference to the Secretary of Health and Human Services for former ref- erence to the Secretary of Health, Education, and Wel- fare. Former subsec. (e), which defined ‘‘quality con- trol’’ as the monitoring and reduction of the rate of er- rors in determining basic eligibility and benefit levels, was struck out. Subsec. (f). Pub. L. 97–253, §§ 180(a)(2), 189(c), redesig- nated 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, § 180(a)(2), redesignated former subsec. (i) as (g). Former subsec. (g), which re- lated to State liability for error under this section, was struck out. Subsecs. (h), (i). Pub. L. 97–253, § 180(a)(2), redesig- nated 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 ‘‘de- terminations 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, § 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, § 1326(1), inserted ‘‘, and, ef- fective 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, § 1326(2), substituted in pro- vision preceding par. (1) ‘‘October 1, 1981’’ for ‘‘October 1, 1978’’ and ‘‘subsection (c)(2) of this section’’ for ‘‘sub- section (c) of this section’’. Subsec. (f). Pub. L. 97–98, § 1327, substituted ‘‘State agencies shall’’ for ‘‘State agencies may’’. 1980—Subsec. (b). Pub. L. 96–249, § 121, struck out pro- visions 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 ap- proved 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, § 125, designated existing provisions as par. (1), substituted ‘‘(A) semiannual cu- mulative’’ for ‘‘cumulative’’, and added subpar. (B) and pars. (2) to (4). Subsec. (g). Pub. L. 96–249, § 126, added subsec. (g). Subsec. (h). Pub. L. 96–249, § 128, added subsec. (h). Subsec. (i). Pub. L. 96–249, § 129, added subsec. (i). 1979—Subsec. (a). Pub. L. 96–58, § 6, authorized the Secretary to permit each State to retain 50 per centum of the value of all funds or allotments recovered or col- lected through prosecutions or other State activities directed against individuals who fraudulently obtain allotments as determined in accordance with this chap- ter 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, § 4, added subsec. (f). 1977—Pub. L. 95–113 substituted revised provisions re- lating to administrative cost-sharing and quality con- trol for provisions authorizing appropriations and re- lating 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 authoriza- tion 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 substituted appro- priation authorization of ‘‘$1,750,000,000 for the fiscal year ending June 30, 1971; and for the fiscal years end- ing 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 appropria- tion 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 appropria- tions 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 Con- gress on or before January 20 of each year setting forth operations under this chapter during preceding cal- endar year and projecting needs for ensuing calendar year. 1967—Subsec. (a). Pub. L. 90–91 provided for appropria- tions 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 gen- eral fund of the Treasury for the purposes of this chap- ter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by section 4022 of Pub. L. 113–79, other than amendment by section 4022(a)(2) of Pub. L. 113–79, applicable beginning on Feb. 7, 2014, see section 4022(c)(1) of Pub. L. 113–79, set out as a note under sec- tion 2014 of this title. EFFECTIVE DATE OF 2013 AMENDMENT Amendment by Pub. L. 112–240 effective Sept. 30, 2012, see section 701(j) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title. 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- Page 1356 TITLE 7—AGRICULTURE § 2025 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)(8), 4115(b)(11), 4121, 4122, and 4406(a)(3), (4) 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 Amendment by section 4118(a) 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. Pub. L. 107–171, title IV, § 4119(b), May 13, 2002, 116 Stat. 321, provided that: ‘‘The amendments made by this section [amending this section] take effect on the date of enactment of this Act [May 13, 2002].’’ Pub. L. 107–171, title IV, § 4120(b), May 13, 2002, 116 Stat. 323, provided that: ‘‘The amendment made by this section [amending this section] takes effect on the date of enactment of this Act [May 13, 2002].’’ Amendment by section 4121(a), (d) of Pub. L. 107–171 effective May 13, 2002, see section 4121(e) of Pub. L. 107–171, set out as a note under section 2015 of this title. Amendment by section 4122(a) of Pub. L. 107–171 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 1999 AMENDMENT Pub. L. 106–78, title VII, § 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, § 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 pro- mulgated 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 effec- tive 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 enti- tlement 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 Pub. L. 103–66, title XIII, § 13971, Aug. 10, 1993, 107 Stat. 680, provided that: ‘‘(a) GENERAL EFFECTIVE DATE AND IMPLEMENTA- TION.—Except as provided in subsection (b), this chap- ter [chapter 3 (§§ 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 en- acting 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 IMPLEMENTA- TION.—(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 sec- tion] shall be effective with respect to calendar quar- ters beginning on or after April 1, 1994. ‘‘(B) In the case of a State whose legislature meets bi- ennially, and does not have a regular session scheduled in calendar year 1994, and that demonstrates to the sat- isfaction 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 sec- tion] until the beginning date of a calendar quarter that is not later than the first calendar quarter begin- ning 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 sec- tion 2014 of this title] shall take effect, and shall be im- plemented 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, Sep- tember 1, 1994. ‘‘(5)(A) Except as provided in subparagraph (B), sec- tion 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 begin- ning on, January 1, 1997.’’ 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 section 1750 of Pub. L. 101–624 effec- tive 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. Pub. L. 101–624, title XVII, § 1752(b), Nov. 28, 1990, 104 Stat. 3797, as amended by Pub. L. 110–234, title IV, § 4002(b)(1)(B), (2)(KK), May 22, 2008, 122 Stat. 1096, 1098; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(B), (2)(KK), June 18, 2008, 122 Stat. 1664, 1857, 1859, 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 and Nutrition Act of 2008 [7 U.S.C. 2025(g)] that were approved by the Sec- retary 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 Page 1357 TITLE 7—AGRICULTURE § 2025 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 ef- fective and implemented on Oct. 1, 1988, and amend- ment 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 amend- ment 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 Pub. L. 99–198, title XV, § 1537(a), Dec. 23, 1985, 99 Stat. 1585, provided that the amendment made by section 1537(a) is effective with respect to the fiscal year begin- ning 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 imple- mented upon such dates as Secretary of Agriculture may prescribe, taking into account need for orderly im- plementation, 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 Pub. L. 95–113, title XIII, § 1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendment made by section 1301 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. PROCESS FOR SELECTING PILOT PROGRAMS Pub. L. 113–79, title IV, § 4022(c)(2), Feb. 7, 2014, 128 Stat. 808, provided that: ‘‘(A) IN GENERAL.—Not later than 180 days after the date of enactment of this Act [Feb. 7, 2014], the Sec- retary [of Agriculture] shall— ‘‘(i) develop and publish the process for selecting pilot projects under section 16(h)(1)(F) of the Food and Nutrition Act of 2008 [7 U.S.C. 2025(h)(1)(F)] (as added by subsection (a)(1)(C)); and ‘‘(ii) issue such request for proposals for the inde- pendent evaluation as is determined appropriate by the Secretary. ‘‘(B) APPLICATION.—The Secretary shall begin consid- ering proposals not earlier than 90 days after the date on which the Secretary completes the actions described in subparagraph (A). ‘‘(C) SELECTION.—Not later than 180 days after the date on which the Secretary completes the actions de- scribed in subparagraph (A), the Secretary shall select pilot projects from the applications submitted in re- sponse to the request for proposals issued under sub- paragraph (A).’’ MONITORING OF EMPLOYMENT AND TRAINING PROGRAMS Pub. L. 113–79, title IV, § 4022(c)(3), Feb. 7, 2014, 128 Stat. 809, provided that: ‘‘(A) IN GENERAL.—Not later than 18 months after the date of enactment of this Act [Feb. 7, 2014], the Sec- retary [of Agriculture] shall issue interim final regula- tions implementing the amendments made by sub- section (a)(2) [amending this section]. ‘‘(B) STATE ACTION.—States shall include reporting measures required under section 16(h)(5) of the Food and Nutrition Act of 2008 [7 U.S.C. 2025(h)(5)] (as amend- ed by subsection (a)(2)) in the employment and training plans of the States for the first full fiscal year that be- gins not earlier than 180 days after the date that the regulations described in subparagraph (A) are pub- lished.’’ CARRYOVER FUNDS Pub. L. 107–171, title IV, § 4121(b), May 13, 2002, 116 Stat. 323, 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: ‘‘Notwith- standing any other provision of law, funds provided under section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year before fiscal year 2002 shall be rescinded on the date of enact- ment of this Act [May 13, 2002], unless obligated by a State agency before that date.’’ REVIEW OF METHODOLOGY USED TO MAKE CERTAIN DETERMINATIONS Pub. L. 105–185, title V, § 502(b), June 23, 1998, 112 Stat. 578, as amended by Pub. L. 110–234, title IV, § 4002(b)(1)(B), (2)(G), May 22, 2008, 122 Stat. 1096, 1097; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(B), (2)(G), June 18, 2008, 122 Stat. 1664, 1857, 1858, 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 and Nutrition Act of 2008 [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 Agri- culture, Nutrition, and Forestry of the Senate.’’ REPORT TO CONGRESS Pub. L. 105–33, title I, § 1002(b), Aug. 5, 1997, 111 Stat. 254, provided that: ‘‘Not later than 30 months after the date of enactment of this Act [Aug. 5, 1997], the Sec- Page 1358 TITLE 7—AGRICULTURE § 2026 retary 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 [now the Food and Nutrition Act of 2008, 7 U.S.C. 2025(h)(1)(A)] (as a result of the amend- ment made by subsection (a)) have been used by State agencies to increase the number of work slots for re- cipients 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 effec- tive manner practicable.’’ QUALITY CONTROL SANCTIONS Pub. L. 101–624, title XVII, § 1751, Nov. 28, 1990, 104 Stat. 3797, 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 sec- tion 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) or any predecessor statutory or regulatory pro- vision relating to disallowances or other similar ac- tions 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 en- actment of this Act [Nov. 28, 1990] pursuant to settle- ment agreements which do not provide for payment ad- justments 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 pend- ing on the date of enactment of this Act [Nov. 28, 1990], including any such disallowance that has been col- lected before such date.’’ QUALITY CONTROL STUDIES AND PENALTY MORATORIUM Pub. L. 99–198, title XV, § 1538, Dec. 23, 1985, 99 Stat. 1587, as amended by Pub. L. 99–260, § 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 con- duct a study of the quality control system used for the food stamp program established under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008] (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 para- graph (1). ‘‘(B) For purposes of such study, the Secretary shall provide to the National Academy of Sciences any rel- evant 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] (herein- after in this section referred to as the ‘moratorium pe- riod’), 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 sub- section (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 ap- propriate, taking into account the studies conducted under subsection (a); and ‘‘(B) establish, taking into account the studies con- ducted under subsection (a), criteria for adjusting the reductions that shall be made for quarters prior to the implementation of the restructured quality con- trol system so as to eliminate reductions for those quarters that would not be required if the restruc- tured quality control system had been in effect dur- ing 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).’’ [References to the food stamp program established under the Food and Nutrition Act of 2008 considered to refer to the supplemental nutrition assistance program established under that Act, see section 4002(c) of Pub. L. 110–246, set out as a note under section 2012 of this title.] § 2026. Research, demonstration, and evaluations (a) Contracts or grants; issuance of aggregate al- lotments (1) The Secretary may enter into contracts with or make grants to public or private organi- zations or agencies under this section to under- take research that will help improve the admin- istration and effectiveness of the supplemental nutrition assistance program in delivering nu- trition-related benefits. The waiver authority of the Secretary under subsection (b) shall extend to all contracts and grants under this section. (2) The Secretary may, on application, permit not more than two State agencies to establish procedures that allow households whose month- ly supplemental nutrition assistance program benefits do not exceed $20, at their option, to re- ceive, in lieu of their supplemental nutrition as- sistance program benefits for the initial period under section 2017 of this title and their regular allotment in following months, and at intervals of up to 3 months thereafter, aggregate allot- ments not to exceed $60 and covering not more than 3 months’ benefits. The allotments shall be provided in accordance with paragraphs (3) and (9) of section 2020(e) of this title (except that no household shall begin to receive combined allot- ments under this section until it has complied with all applicable verification requirements of section 2020(e)(3) of this title) and (with respect to the first aggregate allotment so issued) with- in 40 days of the last benefit issuance. (b) Pilot projects (1)(A) The Secretary may conduct on a trial basis, in one or more areas of the United States, pilot or experimental projects designed to test program changes that might increase the effi- ciency of the supplemental nutrition assistance