Section 4101 – Encouragement of Payment of Child Support
(effective October 1, 2002) – This provision allows States, at their
option, to treat legally obligated child support payments to a
non-household member as an income exclusion rather than a deduction (as
provided in current law). It requires USDA to establish simplified
procedures that States, at their option, could use to determine the amount
of child support paid by a household, including information from a State’s
child support enforcement agency.
Section 4102 – Simplified Definition of Income (effective October
1, 2002) – This provision allows a State option to exclude certain
types of income that are not counted under the State’s Temporary
Assistance for Needy Families (TANF) cash assistance or Medicaid programs.
Under this provision, States are allowed to exclude: educational
assistance not counted under Medicaid; State complementary assistance not
counted under section 1931 of Medicaid; and any type of income not counted
under section 1931 of Medicaid or TANF except for wages or salaries,
benefits from major assistance programs, regular payments from a
government source (such as unemployment benefits or general assistance),
worker’s compensation, child support payments, or other types as
determined by USDA through regulations that are essential to fair
determinations of food stamp eligibility and benefit amounts.
Section 4103 – Standard Deduction (effective October 1, 2002) –
This provision replaces the current, fixed standard deduction with a
deduction that varies according to household size and is adjusted annually
for cost-of-living increases. Larger households will receive a higher
deduction than they currently do. For households in the 48 contiguous
States and DC, AK, HI and VI, it sets the deduction at 8.31 percent of the
applicable net income limit based on household size. No household would
receive an amount less than the current deduction ($134, $229, $189 and
$118 respectively) or more than the standard deduction for a household of
six. Guamanian households receive a slightly higher deduction.
Section 4104 – Simplified Utility Allowance (effective October 1,
2002) – This provision allows States to simplify the Standard
Utility Allowance (SUA) if the States elect to use the SUA rather than
actual utility costs for all households. For these States, it eliminates
the current requirement to prorate the SUA when households share living
quarters and it allows the use of the SUA for households in public housing
with shared meters that are only charged for excess utility costs.
Section 4105 – Simplified Determination of Housing Costs
(effective October 1, 2002) – This provision allows States to use a
standard deduction from income of $143 per month for homeless households
with some shelter expenses.
Section 4106 – Simplified Determination
of Deductions (effective October 1, 2002) – This provision allows States
to disregard reported changes in deductions during certification periods
except for changes associated with a new residence or earned income until
the next recertification.
Section 4107 – Simplified Definition of Resources (effective
October 1, 2002) – This provision increases the resource limit for
households with a disabled member from $2,000 to $3,000 consistent with
the limit for households with an elderly member. It also provides a State
option to exclude certain types of resources that the State does not count
for TANF or Medicaid (section 1931). Under this option, States could not
exclude cash, licensed vehicles, amounts in financial institutions that
are readily available, or other resources as determined by USDA through
regulations that are essential to fair determinations of food stamp
eligibility and benefit amounts.
Section 4108 – Alternative Issuance Systems in Disasters
(effective on enactment of the Farm Bill) – This provision allows
USDA to approve alternate methods for issuing food stamp benefits during
disasters when reliance on electronic benefit transfer systems (EBT) is
impracticable.
Section 4109 – State Option to Reduce Reporting Requirements
(effective October 1, 2002) – This provision allows States to extend
semi-annual reporting of changes to all households not exempt from
periodic reporting. Under current regulations, this option is limited to
households with earnings. For States choosing the option, households
required to report less often than every three months would only have to
report when income exceeds the gross income limits.
Section 4110 – Cost Neutrality for Electronic Benefit Transfer
Systems (effective October 1, 2002) – This provision eliminates the
requirement that Federal costs for electronic benefit transfer systems
cannot exceed the costs of the paper systems they replace.
Section 4111 – Report on Electronic Benefit Transfer Systems
(effective on enactment of the Farm Bill) – Requires USDA to submit
a report not later than October 1, 2003 to the House and Senate
Agriculture Committees that
1) describes the status of EBT systems in each State;
2) specifies the number of vendors each State has contracted
with for EBT systems;
3) specifies the number of States with multiple vendor
contracts;
4) provides information on States in which EBT is not
operational by October 1, 2002;
5) describes the issues faced by States that have awarded a
second EBT contract during the
2-year period prior to the report and
the steps taken by the State to address those
problems;
6) describes the issues faced by States that plan to award a
second EBT contract within the
2-year period from the date of the
report and the strategies the States are planning to
address those issues;
7) describes initiatives being considered by USDA, retailers,
vendors, and advocacy groups to
address any outstanding EBT issues;
and
8) examines advances in electronic benefit delivery during
the 5- to 10-year period from the
date of the report including access at
farmers’ markets, increased use of transaction data
to identify and prosecute fraud, and fostering
increased competition among vendors.
Section 4112 – Alternative Procedures for Residents of Certain
Group Facilities (effective October 1, 2002) – This provision
requires USDA to conduct pilot projects to test the feasibility of issuing
standardized rather than individual allotments to residents of small group
facilities for the disabled, shelters for battered women/children or the
homeless, and drug or alcoholic treatment centers. It requires USDA at the
conclusion of the projects to determine whether alternative procedures
should be extended nationwide and to notify the House and Senate
Agriculture Committees of its determination. If USDA makes a determination
not to extend procedures nationwide, pilot projects are to be terminated
within a reasonable amount of time. States wishing to participate are
required to submit plans for approval by USDA that include identification
of the participating facilities, a schedule of reports on the project,
procedures for standardizing allotments that are based on allotment
amounts typically received by residents, and a commitment to comply with
program requirements.
Section 4113 – Redemption of Benefits through Group Living
Arrangements (effective on enactment of the Farm Bill) – This
provision allows group homes and institutions to redeem EBT benefits
directly through banks in areas where EBT has been implemented rather than
going through authorized wholesalers or other retailers.
Section 4114 –
Availability of Food Stamp Program Applications on the Internet (effective
18 months after enactment of the Farm Bill) – This provision
requires State agencies that have a Web site to post applications on these
sites in the same languages that the State uses for its written
applications.
Section 4115 – Transitional Food Stamp for Families Moving from
Welfare (effective October 1, 2002) – Under this provision, States
may extend from the current 3 months up to 5 months the period of time
households may receive transitional food stamp benefits when they lose
TANF cash assistance. Benefits would be equal to the amount received by
the household prior to the termination of TANF with adjustments in income
for the loss of TANF and, at State option, information from another
program in which the household participates. A household would not be
eligible for the extension if it was losing TANF cash assistance because
of a sanction, was disqualified from the Food Stamp Program, or is in a
category of households designated by the State as ineligible for
transitional benefits. Households may apply for recertification during the
transitional period with benefits determined according to current
circumstances. The provision also extends through the end of the
transitional period the length of time households can be certified for
benefits (currently limited to 12 months for most households).
Section 4116 – Grants for Simple Application and Eligibility
Determination Systems and Improved Access to Benefits (effective October
1, 2002) – Authorizes up to $5 million of appropriated funds for
each of fiscal years 2003 through 2007 to pay the full costs for projects
to improve access for food stamp eligible households or to develop and
implement simplified application and eligibility systems. It requires USDA
to develop selection criteria and USDA may give preference to
government-private partnerships in awarding grants. Funds could not be
used to carry out projects on an on-going basis. Projects may consist of:
coordinating food stamp application and eligibility processes with other
assistance programs; establishing alternative methods of applying that use
the telephone and internet or other system improvements; developing
materials and other resources to increase program access; improving
methods for informing eligible households about the program; or other
activities that USDA determines are appropriate.
Section 4117 – Delivery to Retailers of Notices of Adverse Action
(effective on enactment of the Farm Bill) – This provision allows
the Secretary to use mailing methods other than certified mail when
notifying retailers of adverse action so long as the method provides
evidence of delivery.
Section 4118 – Reform of Quality Control (QC) System (effective
October 1, 2002) — This provision makes substantial changes to the
QC system that measures States’ payment accuracy in issuing food stamp
benefits. Only those States with persistently high error rates would face
liabilities. Current law imposes liabilities each year a State’s payment
error rate is above the national average. Effective FY 2003, the reforms
raise this threshold so that States are not penalized unless there is a 95
percent probability that their error rate exceeds 105 percent of the
national average for two consecutive years. If a State’s error rate
exceeds the threshold for two years in a row, a liability will be
established that is equal to 10 percent of the cost of errors above 6
percent. Of that amount, USDA may waive all or part, and/or require up to
50 percent to be reinvested in corrective action programs and/or require
up to 50 percent to be set aside for possible recovery in the third year.
If a State’s error rate exceeds the threshold for three consecutive
years, the State is responsible for paying the second year at-risk amount
and USDA will again require up to 50 percent of the liability amount to be
reinvested in corrective action programs and up to 50 percent be set aside
for possible recovery in the following year if the State again exceeds the
threshold for that year. States are required to pay at-risk amounts as
soon as possible after all appeals have been exhausted. When a liability
against the State is established, USDA is required to provide to the
Governor and State legislature a copy of the notification letter sent to
the Food Stamp Program administrator. States’ right to appeal
liabilities and seek good cause relief are retained. As under current law,
States with payment error rates above 6 percent are required to submit
corrective action plans to reduce their error rate.
Section 4119 – Improvement of Calculation of State Performance
Measures (effective on enactment of the Farm Bill) – This provision
extends the date for completing QC reviews and resolving State/Federal
differences to May 31st and extends the date for announcing QC error rates
to June 30th.
Section 4120 – Bonuses for States that Demonstrate High or Most
Improved Performance (effective on enactment of the Farm Bill) – For
FY 2003, the current enhanced funding system that is based on error rates
is replaced with a performance system that will award $48 million in
bonuses each year to States with high or improved performance for actions
taken to correct errors, reduce the rates of error, improve eligibility
determinations, or other activities that demonstrate effective
administration as determined by USDA. USDA will establish guidance for
awarding FY 2003 and FY 2004 bonuses by October 1, 2002 and issue
regulations regarding the criteria for bonus awards for FY 2005 and
succeeding years. The Secretary will solicit ideas from State
agencies and organizations that represent State interests prior to issuing
proposed regulations.
Section 4121 – Employment and Training (E&T) Program (various
effective dates) – This provision authorizes for each of fiscal
years 2002 through 2007 $90 million for unrestricted E&T funding and
up to $20 million in additional funding for States that pledge to offer
work slots to unemployed, childless adults who are subject to the 3-month
time limit for food stamps. The provision also eliminates: 1) the
requirement that 80 percent of unmatched funds must be used for
able-bodied adults with dependents; 2) the requirement that States
maintain their 1996 E&T funding levels to access additional funds; and
3) the limits on the amounts that USDA will reimburse States for work
activities. Fiscal year 2001 and prior year funds are rescinded when the
Farm Bill is enacted unless States have already obligated these funds.
Effective on enactment, it eliminates the $25 per month cap that USDA will
reimburse States for transportation and other work costs incurred by
participants in E&T programs.
Section 4122 Reauthorization of
Food Stamp Program and Food Distribution Program on Indian Reservations
(effective October 1, 2002) – Reauthorizes programs for a 5-year period
from FY 2003 through FY 2007.
Section 4123 – Expanded Grant Authority (effective on enactment of
the Farm Bill) – This provision clarifies that USDA may exercise its
waiver authority to conduct Food Stamp Program research through grants to
public or private organizations.
Section 4124 – Consolidated Block
Grants for Puerto Rico and American Samoa (effective on enactment of the
Farm Bill) – This provision consolidates the block grant for Puerto Rico
and American Samoa beginning in FY 2003 and provides $1.401 billion in
consolidated funding for FY 2003 with annual adjustments through FY 2007
based on the thrifty food plan. Of these funds, 99.6 percent is available
to Puerto Rico to pay 100 percent of the costs to provide nutrition
assistance under its program and 50 percent of the administrative costs
and 0.4 percent is available for American Samoa to pay 100 percent of
costs for its nutrition assistance program. It allows Puerto Rico to spend
not more than $6 million of its FY 2002 amount (in effect prior to
enactment) in FY 2002 or FY 2003 to upgrade electronic data processing
systems, implement systems to simplify eligibility, and operate EBT
systems. Beginning in FY 2002, both Puerto Rico and American Samoa may
carry over not more than 2 percent of their funding from one fiscal year
to the next.
Section 4401 – Partial Restoration of Benefits to Legal Immigrants
(various effective dates) – This provision restores food stamp
eligibility to qualified aliens who are otherwise eligible AND who:are
receiving disability benefits regardless of date of entry (current law
requires them to have been in the country on 8/22/96) – effective FY
2003; are under 18 regardless of date of entry (current law limits
eligibility to children who were in the country on 8/22/96) – effective
FY 2004 & beyond; or have lived in the U.S. continuously for 5 years
as a qualified alien beginning on date of entry – effective April
2003. Effective FY 2004, the provision also eliminates the deeming
requirements for immigrant children that count the income and resources of
the immigrant’s sponsor when determining food stamp eligibility and
benefit amounts for the immigrant child. In a conforming amendment, it
also eliminates the 3-year deeming requirements under section 5(i) of the
Food Stamp Act for children.