\ 116 STAT. 316 PUBLIC LAW 107-171—MAY 13, 2002 "(D) improving methods for informing and enrolling eligible households; or "(E) carrying out such other activities as the Secretary determines to be appropriate. "(3) LIMITATION. —^A grant under this subsection shall not be made for the ongoing cost of carrying out any project. "(4) ELIGIBLE ENTITIES.— To be eligible to receive a grant under this subsection, an entity shall be— "(A) a State agency administering the food stamp program; "(B) a State or local government; "(C) an agency providing health or welfare services; "(D) a public health or educational entity; or "(E) a private nonprofit entity such as a community- based organization, food bank, or other emergency feeding organization. "(5) SELECTION OF ELIGIBLE ENTITIES. —The Secretary— "(A) shall develop criteria for the selection of eligible entities to receive grants under this subsection; and "(B) may give preference to any eligible entity that consists of a partnership between a governmental entity and a nongovernmental entity.", (b) CONFORMING AMENDMENTS.— Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended— (1) by striking subsection (i); and (2) by redesignating subsections (j) ^^^ (k) as subsections (i) and (j), respectively. SEC. 4117. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION. (a) IN GENERAL.—Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 2023(a)) is amended by striking paragraph (2) and inserting the following: "(2) DELIVERY OF NOTICES.—^A notice under paragraph (1) shall be delivered by any form of delivery that the Secretary determines will provide evidence of the delivery.". 7 USC 2023 note. (b) EFFECTIVE DATE. —The amendment made by this section takes effect on the date of enactment of this Act. SEC. 4118. REFORM OF QUALITY CONTROL SYSTEM. (a) IN GENERAL. —Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended— (1) by striking "(c)(1) The program" and all that follows through the end of paragraph (1) and inserting the following: "(c) QUALITY CONTROL SYSTEM.— "(1) IN GENERAL. — "(A) SYSTEM.— In carrying out the food stamp program, the Secretary shall carry out a system that enhances pay- ment accuracy and improves administration by establishing fiscal incentives that require State agencies with high pay- ment error rates to share in the cost of payment error. "(B) ADJUSTMENT OF FEDERAL SHARE OF ADMINISTRA- TIVE COSTS FOR FISCAL YEARS BEFORE FISCAL YEAR 2003. — "(i) IN GENERAL.— Subject to clause (ii), with respect to any fiscal year before fiscal year 2003, the Secretary shall adjust a State agency's federally funded share of administrative costs under subsection (a), other than the costs already shared in excess of 50
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