Omnibus Budget Reconciliation Act of 1993;
Chapter 3, Mickey Leland
Childhood Hunger Relief Act
P.L. 103-66, 107 Stat. 312
August 10, 1993
Excluded as income of the household, earnings of
elementary or high school students who are members of
the household and are 21 years old or younger (instead
of 18 years old).
Eliminated the shelter deduction cap in increments. The
cap would be $231 from July 1, 1994, through September
30, 1995 ($402 for Alaska, $330 for Hawaii, $280 for
Guam, and $171 for the Virgin Islands); $247 from
October 1, 1995, through December 31, 1996 ($429 for
Alaska, $353 for Hawaii, $300 for Guam, and $182 for the
Virgin Islands); and no cap beginning January 1, 1997.
Excluded earned income tax credits (EITCs) as resources
for 12 months from receipt (instead of the current 2
months) if the individual receiving the EITC was
participating in the FSP when the EITC was received and
participates continuously during the 12-month period.
Excluded entire amount of vendor payments for
transitional housing for the homeless (instead of
excluding all but a portion equal to 50 percent of the
State's maximum shelter allowance).
Revised the provision on counting general assistance
(GA) vendor payments as income so that only those vendor
payments provided to cover housing expenses, exclusive
of energy or utility expenses, are included as income.
(GA vendor payments provided for living expenses were
previously included.)
Eliminated proration of benefits for households unless
they are off the FSP for more than 1 month. (households'
benefits were previously prorated following any break in
participation.)
Increased Puerto Rico's Nutrition Assistance Program
funding by $6 million for Fiscal Year 1994 and $10
million for Fiscal Year 1995.
Gave State agencies the option to provide a deduction
for legally-binding child support payments made to
nonhousehold members. By October 1, 1995, the deduction
would become mandatory.
Raised the cap on the dependent care deduction from $160
to $200 for children under 2 years old and $175 for all
other dependents.
Removed the specific dollar cap on dependent care
reimbursements under the Employment and Training
Program; use the applicable local market rate (using
procedures consistent with the Aid to Families with
Dependent Children's Job Opportunities and Basic Skills
Training Program) instead, but that rate must be at
least $200 for children under 2 and $175 for all other
dependents. Provided 50 percent Federal funding for
amounts State agencies reimburse up to the applicable
market rate.
Set the fair market value of vehicles which is excluded
in determining households' resources at $4550 (instead
of $4500) for September 1, 1994 - September 30, 1995 and
$4600 for October 1, 1995 - September 30, 1996. From
October 1, 1996, annually adjust the value using $5000
as a base and the CPI-U for new cars for the 12 months
ending the preceding June and rounding to the nearest
$50.
Excluded as resources, the value of vehicles used to
carry the primary source of fuel for heating or water
for home use.
Mandated that the Department conduct demonstration
projects testing allowing food stamp households to
accumulate up to $10,000 in resources without losing
their food stamp eligibility. Limited the demonstration
projects to 4 years duration (beginning after September
30, 1993) and 11,000 households. Required households to
maintain the additional resources in separate accounts
and required that the resources be intended for one of
the following purposes: (1) improving the education,
training, or employability (including self employment)
of household members, (2) purchasing a home for the
household, (3) changing the household's residence, and
(4) making major repairs to the household's home.
Simplified the household definition: children 21 years
old and under living with their parents cannot be
separate households from their parents unless they are
married and living with their spouses and/or living with
their children; children (other that foster children)
who are under 18 years old and live under the parental
control of an adult household member cannot be separate
households; adult siblings who live together and adult
children who live with their parents can be separate
households if they purchase and prepare food separately;
retained the Fenwick provision for separate household
status of elderly, disabled people.
Permitted the children of drug addicts and alcoholics
who live with their parents in treatment centers to
qualify for food stamps. Made the meals served to those
children by the centers eligible for purchase with food
stamps.
Effective October 1, 1993, expanded the disclosure
provision to permit collection of claims resulting from
intentional program violations and inadvertent household
errors by offsetting Federal pay. Authorized such claims
collection.
Disqualified recipients for 1 year (instead of 6 months)
for a first finding by a court that the recipient has
purchased illegal drugs with food stamps and permanently
for a second such finding or the first finding by a
court that the recipient has purchased firearms,
ammunition, or explosives with food stamps (instead of 1
year and 6 months, respectively).
Effective October 1, 1993, raised the cap on civil money
penalties for trafficking to $40,000 per investigation
(instead of $40,000 in a 2-year period).
Effective October 1, 1993, raised the cap on civil money
penalties for selling firearms, ammunition, or
explosives for food stamps to $40,000 per investigation
(instead of $40,000 in a 2-year period).
Modified the quality control (QC) system to:
--
Retroactive to October 1, 1991, permit interest
to accrue if bills are not paid after 1 year
(rather than 2 years)
--
Retroactive to October 1, 1991, use each year's
national performance measure to establish a
State agency's liability (instead of using the
payment-error tolerance level, which was the
lowest national performance measure ever plus 1
percentage point)
--
Retroactive to October 1, 1991, calculate a
State agency's liability by multiplying its
issuance times the ratio of the amount the State
agency's payment error rate exceeds the national
performance measure to the national performance
measure (but not greater than 1) times the
amount the State agency's payment error rate
exceeds the national performance measure
--
Retroactive to October 1, 1992, exclude errors
made in applying a new regulation for a 120-day
period following the required implementation
date (rather than 60 or 90 days)
--
Retroactive to October 1, 1991, require that all
case reviews and arbitrations be completed by
March 29 (or March 28 in leap years) and require
the Department to determine final error rates,
the national average payment error rate, and
billing amounts by April 28 (or April 27 in leap
years)
--
Retroactive to October 1, 1991, require that
good cause determinations be made by
administrative law judges (ALJs) rather than the
Secretary
--
Retroactive to October 1, 1991, provide the
following timeframes relative to the ALJs'
determination of billing amounts:
--
10 days after the billing for the State
agency to request an appeal
--
60 days for the State agency to submit
evidence in support of its appeal
--
60 days for the Department to respond
--
30 for State agency rebuttal, if any
--
60 days after the submission of the
State agency's rebuttal for the ALJs'
decision or, if there is no rebuttal, 90
days after the State agency's original
submission of evidence (60 of which are
available to the Department for the
preparation of its response)
--
Authorize the ALJs to extend any of the above
deadlines
--
Retroactive to October 1, 1991, require the ALJs
to hold evidentiary hearing upon the request of
either the State agency or the Department
--
Define "good cause" to include: a natural
disaster or civil disorder, a strike by State
agency employees, significant caseload growth
(e.g., 15%), a FSP change or other Federal or
State program change that substantially
adversely impacts FSP management, or a
significant circumstance beyond the control of
the State agency.
Effective April 1, 1994, provided 50 percent Federal
funding for State agencies' administrative costs for
automation (instead of 63 percent), fraud investigations
and prosecutions (instead of 75 percent), and the
Systematic Alien Verification for Entitlement system
(instead of 100 percent). Provided for later
implementation for States whose legislatures do not have
a regular session in calendar year 1994 and that have no
mechanism under constitutions or State laws for
appropriating the necessary additional funds before the
next regular legislative session.
NOTE: Although the legislation did not include any provisions
related to electronic benefits transfer (EBT), the Conference
Report did include a statement by the managers strongly urging
the Secretary to encourage State agencies to develop and
establish EBT systems. The Report also expanded on the current
requirement for cost neutrality by deleting the requirement that
each year's EBT cost cannot exceed the cost of a coupon system
and considering the value of governmental savings from reduced
losses and other savings or benefits.
