BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED PERFORMANCE.

SEC. 4120. BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED PERFORMANCE. (a) In General.—Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by striking subsection (d) and inserting the following: “(d) Bonuses for States That Demonstrate High or Most Improved Performance.— “(1) Fiscal years 2003 and 2004.—116 STAT. 322 “(A) Guidance.—With respect to fiscal years 2003 and 2004, the Secretary shall establish, in guidance issued to State agencies not later than October 1, 2002— “(i) performance criteria relating to— “(I) actions taken to correct errors, reduce rates of error, and improve eligibility determinations; and “(II) other indicators of effective administration determined by the Secretary; and “(ii) standards for high and most improved performance to be used in awarding performance bonus payments under subparagraph (B)(ii). “(B) Performance bonus payments.—With respect to each of fiscal years 2003 and 2004, the Secretary shall— “(i) measure the performance of each State agency with respect to the criteria established under subparagraph (A)(i); and “(ii) subject to paragraph (3), award performance bonus payments in the following fiscal year, in a total amount of $48,000,000 for each fiscal year, to State agencies that meet standards for high or most improved performance established by the Secretary under subparagraph (A)(ii). “(2) Fiscal years 2005 and thereafter.— “(A) Regulations.—With respect to fiscal year 2005 and each fiscal year thereafter, the Secretary shall— “(i) establish, by regulation, performance criteria relating to— “(I) actions taken to correct errors, reduce rates of error, and improve eligibility determinations; and “(II) other indicators of effective administration determined by the Secretary; “(ii) establish, by regulation, standards for high and most improved performance to be used in awarding performance bonus payments under subparagraph (B)(ii); and “(iii) before issuing proposed regulations to carry out clauses (i) and (ii), solicit ideas for performance criteria and standards for high and most improved performance from State agencies and organizations that represent State interests. “(B) Performance bonus payments.—With respect to fiscal year 2005 and each fiscal year thereafter, the Secretary shall— “(i) measure the performance of each State agency with respect to the criteria established under subparagraph (A)(i); and “(ii) subject to paragraph (3), award performance bonus payments in the following fiscal year, in a total amount of $48,000,000 for each fiscal year, to State agencies that meet standards for high or most improved performance established by the Secretary under subparagraph (A)(ii). “(3) Prohibition on receipt of performance bonus payments.—A State agency shall not be eligible for a performance bonus payment with respect to any fiscal year for which the 116 STAT. 323 State agency has a liability amount established under subsection (c)(1)(C). “(4) Payments not subject to judicial review.—A determination by the Secretary whether, and in what amount, to award a performance bonus payment under this subsection shall not be subject to administrative or judicial review.”. (b) Effective Date.—The amendment made by this section takes effect on the date of enactment of this Act.