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2 In addition, because USDA has not published any regulations regarding this provision, the Department has said that states largely must interpret it for themselves.¹ Until USDA has published binding regulations, quality control (QC) reviews will test a state's actions against the interpretations and policies the state itself has adopted. Because of extensive delays in the clearance process, final USDA rules on this provision are unlikely for several years.² In addition, USDA has provided a 120-day QC "grace period" beginning three months after this provision becomes effective in a state.³ During this period - which typically will run from late February through late May 1997 - any errors a state makes in implementing this provision will not be counted in determining the state's QC error rate. This paper begins with a brief overview of the provision's operation. It then addresses five principal areas of state choice in implementing the new time limits. First, it analyzes timing issues such as how states can simplify determinations of the amount of time individuals have remaining on their "three-month clocks" and how states can give themselves additional time to implement this provision. Second, the paper briefly considers the law's provisions authorizing waivers due to high unemployment or insufficient numbers of jobs (this subject is not discussed in detail because it is expected soon to be the subject of guidance from USDA). Third, the paper addresses statutory exemptions from the time limits, several of which offer states important options to simplify administration of this provision and moderate its impact on low-income individuals. Fourth, the paper looks in detail at the financing and design of work slots for persons subject to the time limits; it finds that although the new provision gives states substantially less discretion than they are accustomed to having under the food stamp employment and training (E&T) program, it gives them far more flexibility about both the nature of and the number of hours required for employment and training components than is commonly understood. Finally, the paper identifies issues relating to the treatment of persons terminated after having exhausted the time limits. 1 "When questions address provisions which cannot be answered by direct reference to the law or regulations, State agencies should use their best judgment." Memo of Arthur T. Foley, Director, Program Development Division, Food Stamp Program, FCS, USDA (October 3, 1996). The Food Stamp Act generally requires USDA to follow the rule-making procedures of the Administrative Procedure Act when establishing policy for the food stamp program. 7 U.S.C. §§ 2013(c) and 2014(b). Because the time limit provision includes numerous issues of interpretation and discretion, USDA has announced it will first publish non-binding proposed regulations on this provision. (See Letter of August 26, 1996, from Deputy FCS Administrator Yvette S. Jackson to state administrators, Part B, page 10.) Final rules will be published only after USDA has had the opportunity to review comments submitted on the proposed regulations. Publication of final regulations could take several years. Until then, states must make their own decisions on this provision. ²Recent events illustrate the delays that have come to surround the clearance process for USDA rule-making in the food stamp area. On October 17, 1996, the Department published final regulations implementing some food stamp amendments enacted in various pieces of legislation, some as long ago as 1990; most of these provisions had not previously been implemented through interim final rules. 61 Fed. Reg. 54292. On November 1, 1993, USDA issued final rules to implement some food stamp changes made by the legislation enacted in 1985 and 1987. 59 Fed. Reg. 58444. One expert who has long-time familiarity with the food stamp regulatory process estimates that final, binding regulations should not be expected before 1999. ³Letter of August 26, 1996, from Deputy FCS Administrator Yvette S. Jackson to state administrators, page 4.

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    "ocrText": "2\nIn addition, because USDA has not published any regulations regarding this provision, the\nDepartment has said that states largely must interpret it for themselves.¹ Until USDA has\npublished binding regulations, quality control (QC) reviews will test a state's actions against the\ninterpretations and policies the state itself has adopted. Because of extensive delays in the\nclearance process, final USDA rules on this provision are unlikely for several years.²\nIn addition, USDA has provided a 120-day QC \"grace period\" beginning three months\nafter this provision becomes effective in a state.³ During this period - which typically will run\nfrom late February through late May 1997 - any errors a state makes in implementing this\nprovision will not be counted in determining the state's QC error rate.\nThis paper begins with a brief overview of the provision's operation. It then addresses\nfive principal areas of state choice in implementing the new time limits. First, it analyzes timing\nissues such as how states can simplify determinations of the amount of time individuals have\nremaining on their \"three-month clocks\" and how states can give themselves additional time to\nimplement this provision. Second, the paper briefly considers the law's provisions authorizing\nwaivers due to high unemployment or insufficient numbers of jobs (this subject is not discussed in\ndetail because it is expected soon to be the subject of guidance from USDA). Third, the paper\naddresses statutory exemptions from the time limits, several of which offer states important\noptions to simplify administration of this provision and moderate its impact on low-income\nindividuals. Fourth, the paper looks in detail at the financing and design of work slots for persons\nsubject to the time limits; it finds that although the new provision gives states substantially less\ndiscretion than they are accustomed to having under the food stamp employment and training\n(E&T) program, it gives them far more flexibility about both the nature of and the number of\nhours required for employment and training components than is commonly understood. Finally,\nthe paper identifies issues relating to the treatment of persons terminated after having exhausted\nthe time limits.\n1 \"When questions address provisions which cannot be answered by direct reference to the law or regulations, State\nagencies should use their best judgment.\" Memo of Arthur T. Foley, Director, Program Development Division,\nFood Stamp Program, FCS, USDA (October 3, 1996). The Food Stamp Act generally requires USDA to follow the\nrule-making procedures of the Administrative Procedure Act when establishing policy for the food stamp program.\n7 U.S.C. §§ 2013(c) and 2014(b). Because the time limit provision includes numerous issues of interpretation and\ndiscretion, USDA has announced it will first publish non-binding proposed regulations on this provision. (See\nLetter of August 26, 1996, from Deputy FCS Administrator Yvette S. Jackson to state administrators, Part B, page\n10.) Final rules will be published only after USDA has had the opportunity to review comments submitted on the\nproposed regulations. Publication of final regulations could take several years. Until then, states must make their\nown decisions on this provision.\n²Recent events illustrate the delays that have come to surround the clearance process for USDA rule-making in the\nfood stamp area. On October 17, 1996, the Department published final regulations implementing some food\nstamp amendments enacted in various pieces of legislation, some as long ago as 1990; most of these provisions had\nnot previously been implemented through interim final rules. 61 Fed. Reg. 54292. On November 1, 1993, USDA\nissued final rules to implement some food stamp changes made by the legislation enacted in 1985 and 1987. 59\nFed. Reg. 58444. One expert who has long-time familiarity with the food stamp regulatory process estimates that\nfinal, binding regulations should not be expected before 1999.\n³Letter of August 26, 1996, from Deputy FCS Administrator Yvette S. Jackson to state administrators, page 4."
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