[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR275.1]

[Page 866-867]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 275_PERFORMANCE REPORTING SYSTEM--Table of Contents
 
                        Subpart A_Administration
 
Sec.  275.1  General scope and purpose.


    (a) Under the Food Stamp Act, each State agency is responsible for 
the administration of the Food Stamp Program in accordance with the Act, 
Regulations, and the State agency's plan of operation. To fulfill the 
requirements of the Act, each State agency shall have a system for 
monitoring and improving its administration of the program. The State 
agency is also responsible for reporting on its administration to FNS. 
These reports shall identify program deficiencies and the specific 
administrative action proposed to meet the program requirements 
established by the Secretary. If it is determined, however, that a State 
has failed without good cause to meet any of the program requirements 
established by the Secretary, or has failed to carry out the approved 
State plan of operation, the Department shall suspend and/or disallow 
from the State such funds as are determined to be appropriate in 
accordance with part 276 of this chapter.
    (b)(1) The Food Stamp Act authorizes the Secretary to pay each State 
agency an amount equal to 50 percent of all administrative costs 
involved in each State agency's operation of the program. The Act 
further authorizes the Secretary to increase the percentage share if:
    (i) The State agency's payment error rate is less than or equal to 
5.90 percent, and
    (ii) The State agency's negative case error rate is less than the 
national weighted mean negative case error rate for the prior fiscal 
year.
    (2) If a State agency qualifies for an increased percentage share, 
the amount of increase will be an additional percentage point for each 
full tenth of a percentage point by which the payment error rate is less 
than six

[[Page 867]]

percent, up to a maximum of 60 percent of administrative costs. Those 
State agencies not receiving the increased share of funding shall 
develop and implement corrective action plans to reduce payment errors. 
Corrective action shall be completed as required in subpart E of this 
section.

[Amdt. 160, 45 FR 15898, Mar. 11, 1980, as amended by Amdt. 266, 52 FR 
3407, Feb. 4, 1987; Amdt. 328, 56 FR 60051, Nov. 27, 1991]