PUBLIC LAW 107-171—MAY 13, 2002 116 STAT. 317 percent under the proviso in the first sentence of subsection (a) or under subsection (g), by increasing that share of all such administrative costs by 1 percentage point to a maximum of 60 percent of all such administrative costs for each full Vio of a percentage point by which the payment error rate is less than 6 percent. "(ii) LIMITATION.—Only States with a rate of invalid decisions in denying eligibility that is less than a nationwide percentage that the Secretary determines to be reasonable shall be entitled to the adjustment under clause (i). "(C) ESTABLISHMENT OF LIABILITY AMOUNT FOR FISCAL YEAR 2003 AND THEREAFTER. —With respect to fiscal year 2004 and any fiscal year thereafter for which the Secretary determines that, for the second or subsequent consecutive fiscal year, a 95 percent statistical probability exists that the payment error rate of a State agency exceeds 105 percent of the national performance measure for payment error rates announced under paragraph (6), the Secretary shall establish an amount for which the State agency may be liable (referred to in this paragraph as the liability amount') that is equal to the product obtained by multiplying— "(i) the value of all allotments issued by the State agency in the fiscal year; "(ii) the difference between— "(I) the payment error rate of the State agency; and "(II) 6 percent; and "(iii) 10 percent. "(D) AUTHORITY OF SECRETARY WITH RESPECT TO LIABILITY AMOUNT. — With respect to the liability amount established for a State agency under subparagraph (C) for any fiscal year, the Secretary shall— "(i)(I) waive the responsibility of the State agency to pay all or any portion of the liability amount established for the fiscal year (referred to in this paragraph as the 'waiver amount'); "(II) require that a portion, not to exceed 50 percent, of the liability amount established for the fiscal year be used by the State agency for new investment, approved by the Secretary, to improve administration by the State agency of the food stamp program (referred to in this paragraph as the 'new investment amount'), which new investment amount shall not be matched by Federal funds; "(III) designate a portion, not to exceed 50 percent, of the amount established for the fiscal year for pay- ment to the Secretary in accordance with subparagraph (E) (referred to in this paragraph as the 'at-risk amount'); or "(IV) take any combination of the actions described in subclauses (I) through (III); or "(ii) make the determinations described in clause (i) and enter into a settlement with the State agency, only with respect to any waiver amount or new investment amount, before the end of the fiscal year in
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