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USDA/FNS RIN: 0584-AD31 Publication ID: Spring 2010 
Title: Quality Control Provisions 
Abstract: This rule finalizes the interim rule "Non-Discretionary Quality Control Provisions of Title IV of Public Law 107-171" (published Oct. 16, 2003, at 68 FR 59519) and the proposed rule "Discretionary Quality Control Provisions of Title IV of Public Law 107-171" (published Sep. 23, 2005, at 70 FR 55776). The following quality control (QC) provisions required by sections 4118 and 4119 of the Farm Security and Rural Investment Act of 2002 (title IV of Pub. L. 107-171) and contained in the interim rule are implemented by this final rule: 1) Timeframes for completing quality control reviews; 2) Timeframes for completing the arbitration process; 3) Timeframes for determining final error rates; 4) The threshold for potential sanctions and time period for sanctions; 5) The calculation of State error rates; 6) The formula for determining States' liability amounts; 7) Sanction notification and method of payment; and 8) Corrective action plans. The following provisions required by sections 4118 and 4119 and additional policy and technical changes, and contained in the proposed rule, are implemented by this final rule. Legislative changes based on or required by sections 4118 and 4119: 1) Eliminate enhanced funding; 2) Establish timeframes for completing individual quality control reviews; and 3) Establish procedures for adjusting liability determinations following appeal decisions. Policy and technical changes: 1) Require State agency QC reviewers to attempt to complete review when a household refuses to cooperate; 2) Mandate FNS validation of negative sample for purposes of high performance bonuses; 3) Revise procedures for conducting negative case reviews; 4) Revise timeframes for household penalties for refusal to cooperate with State and Federal QC reviews; 5) Revise procedures for QC reviews of demonstration and SSA processed cases; 6) Eliminate requirement to report differences resulting from Federal information exchange systems (FIX) errors; 7) Eliminate references to integrated QC; and 8) Update definitions section to remove out-dated definitions (02-014). 
Agency: Department of Agriculture(USDA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 7 CFR 273    7 CFR 275   
Legal Authority: 7 USC 2011 to 2032    PL 107-171   
Legal Deadline:  None
Action Date FR Cite
Interim Final Rule  10/16/2003  68 FR 59519   
Interim Final Rule Effective  12/15/2003    
Interim Final Rule Comment Period End  01/14/2004    
NPRM  09/23/2005  70 FR 55776   
NPRM Comment Period End  12/22/2005    
Final Action  06/00/2010    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State 
Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Related RINs: Merged with 0584-AD37 
Agency Contact:
James F Herbert
Regulatory Review Specialist
Department of Agriculture
Food and Nutrition Service
3101 Park Center Drive,
Alexandria, VA 22302
Phone:703 305-2572

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