(1) (a) In implementing the supplemental nutrition assistance program, the state department and county departments shall endeavor to exceed federal performance measures in the following areas: (I) Application processing timeliness; (II) Payment error rate; and (III) Case and procedural error rate. (b) If the state department receives federal performance bonus money as a result of meeting the federal performance measures set forth in paragraph (a) of this subsection (1), the state department shall pass the federal performance bonus money through to the county departments; except that a county department shall only receive that portion of federal performance bonus money attributable to the county department's performance. (c) In addition to federal performance bonus money, subject to available appropriations for purposes of this paragraph (c), the state may award state-funded administration performance bonuses to county departments. (d) The state department, county departments, and any additional parties identified by the state department and county departments, shall mutually agree upon a method and formula for distributing to county departments any federal performance bonus money pursuant to paragraph (b) of this subsection (1) and any state-funded administration performance bonuses pursuant to paragraph (c) of this subsection (1). Performance bonuses may be used by county departments for the administration of the supplemental nutrition assistance program upon receipt of federal approval of the county departments' plans. (2) (a) The state department shall pass through to the county departments any monetary sanctions imposed by the federal government for failing to meet federal performance measures in any of the following areas: (I) Application processing timeliness; (II) Payment error rate; and (III) Unresolved compliance issues over which the county department has control, as mutually determined by the state department and county departments based upon analysis of validated data, specific to a county department's responsibilities in administering the supplemental nutrition assistance program, including claim discrepancies. (b) The state department, county departments, and any additional parties identified by the state department and county departments, shall mutually agree upon a method and formula for charging to county departments any federal monetary sanction for failing to meet performance measures pursuant to paragraph (a) of this subsection (2); except that a county department shall only be responsible for the portion of a federal monetary sanction attributable to the county department's performance relating to activities within the county department's control, as mutually determined by the state department and county departments based upon analysis of validated data.
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