GAO-02-874R 

United States General Accounting Office

Washington, DC 20548 

B-290739 

July 17, 2002 

The Honorable Tom Harkin 

Chairman 

The Honorable Richard G. Lugar 

Ranking Minority Member 

Committee on Agriculture, Nutrition, and Forestry 

United States Senate 

The Honorable Larry Combest 

Chairman 

The Honorable Charles W. Stenholm 

Ranking Minority Member 

Committee on Agriculture 

House of Representatives 

Subject: Department of Agriculture, Food and Nutrition Service: Food Stamp 

Program: Work Provisions of the Personal Responsibility and Work 

Opportunity Reconciliation Act of 1996 and Food Stamp Provisions of the 

Balanced Budget Act of 1997

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a 

major rule promulgated by the Department of Agriculture, Food and Nutrition 

Service (FNS), entitled “Food Stamp Program: Work Provisions of the Personal 

Responsibility and Work Opportunity Reconciliation Act of 1996 and Food Stamp 

Provisions of the Balanced Budget Act of 1997” (RIN: 0584-AC45). Our Office 

received the rule on July 2, 2002. It was published in the Federal Register as a final 

rule on June 19, 2002. 67 Fed. Reg. 41589. 

The final rule follows the issuance of an interim rule and a proposed rule that 

incorporated provisions of the Balanced Budget Act of 1997 and the Personal 

Responsibility and Work Opportunity Reconciliation Act of 1996. The rule finalizes 

provisions dealing with enhanced state flexibility in exempting portions of a state 

agency’s caseload from the food stamp time limit and to increase the funding 

available to create work opportunities for recipients who are subject to the time 

limit. It also makes changes to current work rules, including requirements for the 

Food Stamp Employment and Training Program and the optional workfare program, 

as well as simplifying disqualification requirements for failure to comply with work 

rules. 
Page 2 GAO-02-874R 

The final rule has an announced effective date of August 19, 2002. The 

Congressional Review Act requires a 60-day delay in the effective date of a major 

rule from the date of publication in the Federal Register or receipt of the rule by 

Congress, whichever is later. 5 U.S.C. 801(a)(3)(A). While the final rule was 

published in the Federal Register on June 19, 2002, the House of Representatives did 

not receive the rule until July 9, 2002. The Senate received the rule on July 3, 2002. 

Therefore, the final rule does not have the required 60-day delay in the effective date 

to allow for congressional review. 

Enclosed is our assessment of the FNS’s compliance with the procedural steps 

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 

Our review indicates that, with the exception of the failure to allow the 60-day delay 

in the effective date, the FNS complied with the applicable requirements. 

If you have any questions about this report, please contact James W. Vickers, 

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO 

evaluation work relating to the subject matter of the rule is Cindy Fagnoni, Managing 

Director, Education, Workforce, and Income Security. Ms. Fagnoni can be reached 

at (202) 512-7215. 

 signed 

Kathleen E. Wannisky 

Managing Associate General Counsel 

Enclosure 

Cc: Eric M. Bost 

Under Secretary 

Food, Nutrition, and Consumer 

 Services 

Department of Agriculture 
GAO-02-874R 

ENCLOSURE 

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE 

ISSUED BY THE 

DEPARTMENT OF AGRICULTURE, 

FOOD AND NUTRITION SERVICE 

ENTITLED 

"FOOD STAMP PROGRAM: WORK PROVISIONS OF THE PERSONAL 

RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996 

AND FOOD STAMP PROVISIONS OF THE BALANCED BUDGET ACT OF 1997" 

(RIN: 0584-AC45) 

(i) Cost-benefit analysis

According to FNS, since all of the provisions of the final rule, except the elimination 

of the maximum slot reimbursement rate, were already in effect, they will have no 

new cost effects resulting from them. Depending on state agency actions, FNS 

estimates that the elimination of the maximum slot reimbursement rate will increase 

Food Stamp Program expenditures by a range of $25.3 million to $62 million over the 

period of fiscal years 2002-2012. 

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605, 

607, and 609

The Undersecretary for Food, Nutrition, and Consumer Services has certified that 

the final rule will not have a significant economic impact on a substantial number of 

small entities. 

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform 

Act of 1995, 2 U.S.C. §§ 1532-1535

The final rule does not contain either an intergovernmental or private sector 

mandate, as defined in title II, of more than $100 million in any one year. 

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. 

The final rule was issued using the notice and comment procedures contained at 

5 U.S.C. 553. On September 3, 1999, an interim rule with request for comments 

dealing with two food stamp provisions of the Balanced Budget Act of 1997 was 

published in the Federal Register. 64 Fed. Reg. 48246. On December 23, 1999, a 

proposed rule was published to amend the Food Stamp Act to incorporate provisions 

of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. 

64 Fed. Reg. 72196. 
Page 2 GAO-02-874R 

FNS received 234 comments on the interim rule and 24 on the proposed rule, which 

are discussed in the preamble to the final rule. 

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520 

The information collections contained in the final rule have already been approved 

by the Office of Management and Budget (OMB) under the Paperwork Reduction Act 

and assigned OMB Control No. 0584-0339. When these collections are revised to 

eliminate the maximum slot reimbursement rate, public comments will be solicited 

and OMB approval obtained. 

Statutory authorization for the rule 

The final rule is issued pursuant to the authority contained at 7 U.S.C. 2011-2036. 

Executive Order No. 12866 

The final rule was reviewed by OMB and found to be an “economically significant”

regulatory action under the order. 

Executive Order No. 13132 (Federalism) 

In accordance with the order, the preamble to the final rule contains a discussion of 

the numerous steps taken by FNS to work with state officials regarding the final rule 

to resolve their concerns including greater flexibility in implementing the Food 

Stamp Program.