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USDA/FNS RIN: 0584-AD31 Publication ID: Fall 2002 
Title: ●FSP: Quality Control Provisions of the Farm Security and Rural Investment Act of 2002 
Abstract: This proposed rule will implement quality control changes to the Food Stamp Act required by sections 4118 and 4119 of the Farm Security and Rural Investment Act of 2002 in the following areas: 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. (02-008) 
Agency: Department of Agriculture(USDA)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 7 CFR 273    7 CFR 275   
Legal Authority: 7 USC 2011 to 2032    PL 107-171   
Legal Deadline:  None

Statement of Need: The rule is needed to implement the food stamp quality control provisions of Public Law 107-171, the Farm Security and Rural Investment Act of 2002.

Summary of the Legal Basis: The legal basis for this rule is Public Law 107-171, the Farm Security and Rural Investment Act of 2002.

Alternatives: This proposed rule deals with changes required by Public Law 107-171, the Farm Security and Rural Investment Act of 2002. The Department has limited discretion in implementing provisions of that law. The provisions in this rule are effective for fiscal year 2002 quality control review period and must be implemented by FNS and State agencies during fiscal year 2002.

Anticipated Costs and Benefits: The provisions of this rule will eliminate enhanced funding for low payment error rates and revise the quality control sanction and liability requirements. The provisions of Public Law 107-171 implemented by this rule will save $190 million over 5 years through elimination of the current enhanced funding system. This savings will be partially offset by costs of implementing a new performance system. The costs for the new performance system are estimated to be $144 million.

Risks: The FSP provides nutrition assistance to millions of Americans nationwide. The quality control system measures the accuracy of States providing food stamp benefits to the program recipients. This rule is intended to implement the quality control provisions of Public Law 107-701, the Farm Security and Rural Investment Act of 2002. The provisions of this rule will eliminate enhanced funding for low payment error rates. It will significantly revise the system for determining State agency liabilities and sanctions for high payment error rates.

Timetable:
Action Date FR Cite
NPRM  01/00/2003    
NPRM Comment Period End  04/00/2003    
Final Action  01/00/2004    
Final Action Effective  02/00/2004    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State 
Federalism: Undetermined 
Included in the Regulatory Plan: Yes 
Agency Contact:
Sharon Ackerman
Agency Regulatory Officer
Department of Agriculture
Food and Nutrition Service
Room 918, 3101 Park Center Drive,
Alexandria, VA 22302
Phone:703 305-2246
Email: sheri.ackerman@fns.usda.gov