[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Proposed Rules]
[Pages 12108-12117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6427]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 /
Proposed Rules
[[Page 12108]]
DEPARTMENT OF AGRICULTURE
Food and Consumer Service
7 CFR Parts 250, 251, and 253
RIN 0584-AB27
Food Distribution Programs--Reduction of the Paperwork Burden
AGENCY: Food and Consumer Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule proposes to amend the Food Distribution Program
regulations, the Emergency Food Assistance Program regulations, and the
Food Distribution Program for Households on Indian Reservations
regulations to implement the provisions of the Child Nutrition and WIC
Reauthorization Act of 1989 regarding paperwork reduction for food
distribution programs. The proposals contained in this rule would
extend the maximum effective periods for agreements between Federal,
distributing, and recipient agencies, contracts of distributing and
subdistributing agencies with storage facilities, contracts between
recipient agencies and food service management companies, and State
plans of operation; remove the requirement that commodity acceptability
information be submitted for the following program categories:
charitable institutions, nonprofit summer camps, the Summer Food
Service Program for Children, and the Emergency Food Assistance
Program; relax monitoring requirements for distributing agencies with
regard to charitable institutions and nonprofit summer camps, and the
food service management companies under contract with them; and, amend
regulatory language to reflect modified information collection
requirements. The proposals would, in short, effect a substantial
reduction in the information collection requirements imposed on
distributing and recipient agencies, and the paperwork generated in
fulfilling these requirements, in administering food distribution
programs.
DATES: To be assured of consideration, comments must be postmarked on
or before May 13, 1997.
ADDRESSES: Comments should be sent to: Lillie Ragan, Assistant Branch
Chief, Household Programs Branch, Food Distribution Division, Food and
Consumer Service, U.S. Department of Agriculture, Park Office Center,
Room 502, 3101 Park Center Drive, Alexandria VA 22302-1594. Comments in
response to this rule may be inspected at 3101 Park Center Drive, Room
502, Alexandria VA, during normal business hours (8:30 a.m. to 5 p.m.,
Mondays through Fridays).
FOR FURTHER INFORMATION CONTACT: Lillie Ragan at the above address or
telephone (703) 305-2662.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866, and therefore has not been reviewed
by the Office of Management and Budget for any purpose other than
approval of the changes in the information collection burden proposed
in the rule.
Regulatory Flexibility Act
This action has also been reviewed with regard to the requirements
of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). The
Administrator of the Food and Consumer Service (FCS) has certified that
this action will not have a significant economic impact on a
substantial number of small entities. The procedures in this rulemaking
would primarily affect FCS Regional Offices, and the distributing and
recipient agencies that administer food distribution programs. Private
enterprises that enter into agreements for the storage of donated food
or meal service management would also be affected. While some of these
entities constitute small entities, a substantial number will not be
affected. Further, any economic impact will not be significant.
Executive Order 12372
These programs are listed in the Catalog of Federal Domestic
Assistance under 10.550, 10.568, and 10.569, respectively, and are
subject to the provisions of Executive Order 12372, which requires
intergovernmental consultation with State and local officials (7 CFR
part 3015, Subpart V and final rule-related notices published at 48 FR
29114, June 24, 1983 and 49 FR 22676, May 31, 1984).
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), the Food and Consumer Service is submitting for public comment
the changes in the information collection burden that would result from
the adoption of the proposals in the rule.
Comments are invited on: (a) whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology. To be assured of consideration,
comments must be postmarked on or before May 13, 1997. Comments may be
sent to Wendy Taylor, Desk Officer, Office of Information and
Regulatory Affairs, Office of Management and Budget (OMB), Washington
DC 20503. All comments will be summarized and included in the request
for OMB approval of the proposed changes in the information collection
burden. All comments will become a matter of public record. For further
information, or for copies of the information collections discussed
below, please contact Lillie Ragan, Assistant Branch Chief, Household
Programs Branch, Food Distribution Division, Food and Consumer Service,
U.S. Department of Agriculture, Park Office Center, Room 502, 3101 Park
Center Drive, Alexandria, Virginia 22302-1594, or telephone (703)305-
2662.
Title: Food Distribution Regulations and Forms.
OMB Number: 0584-0293.
Expiration Date: 9/30/97.
[[Page 12109]]
Type of Request: Revision of a currently approved collection.
Abstract: Agreements, contracts, and plans of operation. The rule
proposes to: (1) make agreements between distributing agencies and
recipient agencies (food banks, soup kitchens, charitable institutions,
emergency feeding organizations, etc.) to operate food distribution
programs permanent, with amendments made as necessary, instead of
annual; (2) allow distributing or subdistributing agencies to sign
contracts with storage facilities for the storage of donated foods for
a maximum duration of five years, instead of the present one year, with
options for two additional years; (3) allow recipient agencies
(charitable institutions, summer camps, and nutrition programs for the
elderly) to sign contracts with food service management companies for
one year, with four additional one-year options, instead of one year
with two additional one-year options; and, (4) make the plan submitted
by State agencies and Indian Tribal Organizations to operate the Food
Distribution Program on Indian Reservations (FDPIR) ongoing, instead of
annual, with amendments made as necessary.
Submission of Inventory Reports. The rule proposes to require
semiannual submission of the recently revised form FCS-155, the
Inventory Management Register (the revised form has been approved by
OMB). This form is a report of excessive commodity inventories--i.e.,
inventories exceeding a six-month supply--that helps to ensure that
commodities will be utilized before going out of condition. Regulations
presently require monthly submission of form FCS-155.
Collection of Commodity Acceptability Information. The rule
proposes to exclude certain food distribution program categories from
those for which distributing agencies must submit commodity
acceptability information, because of the substantial reduction in
surplus commodities now available to these programs. The exempted
program categories would be charitable institutions, summer camps, the
Summer Food Service Program for Children (SFSP), and the Emergency Food
Assistance Program (TEFAP). Commodity acceptability information is
collected for other food distribution programs to ensure that
commodities distributed are of the types and forms most acceptable to
program recipients.
Respondents: Respondents include State agencies and Indian Tribal
Organizations administering food distribution programs, and, in some
cases, recipient agencies responsible for local administration and
distribution of donated commodities.
Estimated Number of Respondents: State agencies and Indian Tribal
Organizations administering food distribution programs number 171;
recipient agencies number approximately 11,200.
Estimated Number of Responses per Respondent: Frequency of response
for the inventory reports would be semiannual, or 2 per year. Frequency
of response for agreements between distributing and recipient agencies,
the State plans, and the distributing and recipient agency contracts
with storage facilities and food service management companies would
vary, depending on necessary amendments to the agreements and plans,
and the length of the contracts. It is estimated that, on average, both
amendments and contracts would be completed every four years, or at a
frequency of 0.25 per year. Frequency of response for the commodity
acceptability reports would continue to be annual, but distributing
agencies would not be required to submit commodity acceptability
information for charitable institutions, summer camps, SFSP, and TEFAP,
thus reducing the number of responses to be submitted.
Estimate of Burden: The present and proposed estimates of the
reporting burden for the information collections affected by this rule
are detailed below. These estimates are based on information obtained
from distributing and recipient agencies administering food
distribution programs through various vehicles such as meetings and the
review of information submitted in State plans. The information
includes the number of respondents, frequency of responses per year for
each respondent, number of hours per response, and the total burden
hours for each information collection.
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Respndnts. Freq. Hrs./Resp. Total Hrs.
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Distributing and Recipient Agency Agreement:
Present............................................... 11,211 1 0.33 3,700
Proposed.............................................. 11,211 0.25 0.20 561
Distributing or Subdistributing Agency Contracts w/Storage
Facilities:
Present............................................... 250 1 0.33 83
Proposed.............................................. 250 0.25 0.33 21
Contracts w/Food Service Management Companies:
Present............................................... 300 1 0.33 99
Proposed.............................................. 300 0.25 0.33 25
Inventory Reports (FCS-155):
Present............................................... 80 12 1.75 1,680
Proposed.............................................. 80 2 0.25 40
Commodity Acceptability Reports:
Present............................................... 466 1 50 23,300
Proposed.............................................. 252 1 50 12,600
FDPIR State Plan:
Present............................................... 97 1 10 970
Proposed.............................................. 97 0.25 3 73
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Estimated Total Annual Burden on Respondents: The total annual
burden under OMB Control Number 0584-0293 would be reduced from
1,190,971 hours to 1,174,459 hours: a difference of 16,512 hours.
Title: Federal-State Agreement, FCS-74
OMB Number: 0584-0067
Expiration Date: 6/30/98
Type of Request: Revision of a currently approved collection.
Abstract: The Federal-State Agreement, form FCS-74, is used to
ensure that distributing agencies administering child nutrition and
food distribution programs comply with Federal regulations applicable
to the programs. This rule proposes to make
[[Page 12110]]
permanent, instead of annual, the agreement that distributing agencies
administering food distribution programs (and not child nutrition
programs) sign with the Food and Consumer Service (FCS). Amendments
would be made as necessary, at the request of FCS.
Respondents: State agencies and Indian Tribal Organizations
administering food distribution programs.
Estimated Number of Respondents: 147 State agencies and Indian
Tribal Organizations would be affected.
Estimated Number of Responses per Respondent: The agreements would
be permanent for the affected State agencies, with amendments to the
agreement submitted as necessary. It is estimated that such amendments
would be required, on average, every four years. Thus, the annual
number of responses per respondent would be 0.25.
Estimate of Burden: The following estimates are based on the
anticipated frequency of need for changes. For each of the 147 affected
State agencies and Indian Tribal Organizations, the agreement would
take approximately 0.25 hours to complete, and would be completed, on
average, 0.25 times per year. Thus, the annual reporting burden for
these agencies would be 9.2 hours.
Estimated Total Annual Burden on Respondents: The total annual
burden under OMB Number 0584-0067 would be reduced from 34,494 hours to
34,466 hours: a difference of 28 hours.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is intended to have preemptive effect
with respect to any State or local laws, regulations or policies which
conflict with its provisions, or which would otherwise impede its full
implementation. This rule is not intended to have retroactive effect
unless so specified in the ``Effective Date'' section of the preamble
of the final rule. There are no administrative procedures which must be
exhausted prior to any judicial challenge to the provisions of this
rule or the application of its provisions.
Background
The Child Nutrition and WIC Reauthorization Act of 1989, Pub. L.
101-147, (hereinafter referred to as ``the Act''), was enacted on
November 10, 1989. Section 108 of the Act amended what was then Section
19 of the National School Lunch Act (NSLA), 42 U.S.C 1769a, to include
a requirement that the Secretary endeavor to reduce the paperwork
burden for State and local educational agencies, schools, and other
agencies participating in nutrition assistance programs. The Act
required that, in determining ways to reduce the paperwork burden, the
Secretary (1) consult with State and local administrators of nutrition
assistance programs; (2) convene at least one meeting with the program
administrators; and (3) solicit suggestions from the general public.
(Section 710 of Pub. L 104-193, the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, repealed Section 49 of the
NSLA.)
Accordingly, on April 9, 1990, a Notice was published in the
Federal Register (55 FR 13156) soliciting comments regarding the
reduction of the paperwork burden associated with the administration of
the child nutrition and food distribution programs. One hundred and
sixty-five comments addressing issues associated with paperwork
reduction for food distribution programs were received. Comments were
received from 105 schools, 49 State agencies, five food processors,
four professional associations (including the American Commodity
Distribution Association and the American School Food Service
Association), one Indian Tribal Organization, and one consultant.
Following the receipt of comments, on July 30, 1990, a Paperwork
Reduction Task Force (hereinafter referred to as the ``Task Force''),
comprised of representatives from two commodity distribution
associations, 13 school or food distribution program administrators,
and two FCS Regional Office directors, was convened to review the
comments received in response to the Notice. The actions taken to date
by the Department in response to Congress' directive in Section 108 of
Pub. L. 101-147 are discussed in detail below.
Five commenters recommended that the amount of information a State
is required to submit to the Department before a commodity complaint
can be investigated be reduced. In response to these recommendations,
through consultation with FCS Regional Office and State agency
representatives, a list of data that must be provided prior to FCS
taking any action regarding a complaint was developed and made
available to all Regional Offices for dissemination to State agencies.
While other information may subsequently be requested, submission of
all required basic data at the time the complaint is reported permits
FCS to begin taking appropriate action in a much more timely manner.
FCS has also taken steps to simplify the process of transmitting
the data needed to act on commodity complaints by revising the Special
Nutrition Programs Integrated Information System (SNPIIS) to allow FCS
Regional Offices to submit complaint data electronically. An
informational booklet containing instructions as to how to input
complaint data into the system has been disseminated to all FCS
Regional Offices.
In order to streamline the process of reporting commodity
complaints, FCS has set up a telephone ``hot line'' for use on a pilot
basis. Under the pilot project, selected distributing or recipient
agencies within certain States may report commodity complaints to FCS
Headquarters directly, via a toll-free 800 number or facsimile machine.
All FDPIR State agencies, including all Indian Tribal Organizations
acting as State agencies pursuant to 7 CFR 253.2(h), may report
commodity complaints to FCS Headquarters directly via the hot line
also. While those agencies utilizing the hot line must still provide
certain basic information before the problem can be resolved, they have
more flexibility in the format used to report the information than
those agencies reporting commodity complaints through State and FCS
Regional offices, and receive a more immediate response to their
concerns. If the pilot project, the initial phase of which concluded on
September 30, 1996, indicates that direct reporting of commodity
complaints to the national office provides better service to the
recipients utilizing USDA commodities, by reducing the amount of time
required to resolve complaints, then access to the hot line will be
extended to all States.
Five commenters suggested that the Department allow distributing
agencies to waive commodity losses of $100 or less. Since this was
already the Department's policy, the Department has considered how to
provide clarification of the policy. In addition, FCS has consulted
with Regional Offices to resolve various issues relating to losses
resulting from the improper storage or distribution of commodities,
including the responsibility for initiating claims, and the cost
efficiency of the claims process. This consultation has resulted in the
development of draft guidance material which was disseminated to FCS
Regional Offices for comment on April 15, 1994. The guidance material
establishes the Department's position on issues relative to: (1) what
entity is responsible for pursuing the various types of claims; (2)
conditions under which storage facilities can offset shortages with
[[Page 12111]]
overages; (3) allowable uses of funds derived from salvage and
recycling; (4) what funds should be deposited into the distributing
agency's general salvage account and the allowable uses of such funds;
(5) the handling of losses of ``bonus'' commodities; and (6) the
thresholds that have been established for use in determining what
entity has the authority to make a claim determination, and to
compromise, waive, or suspend claims. Several of the changes discussed
in the guidance material have been implemented through policy
memoranda. However, some changes can only be effectuated by revising
``Non-Audit Claims--Food Distribution Program,'' FCS Instruction 410-1,
and/or through the rulemaking process. The issue of increasing the
limit under which State agencies can waive a claim is one that must be
addressed through the rulemaking process for the Emergency Food
Assistance Program (TEFAP) and by revision of the FCS instruction for
all other food distribution programs.
Twenty-one commenters suggested that forms FCS-155 (Monthly Report
of Receipt and Distribution of Donated Foods) and FCS-155A (Shipment of
Commodities by Delivery Order) be eliminated, or that these inventory
reports be required less frequently. After a review of the usefulness
of the forms in 1991 and 1992, FCS concluded that it would not be
feasible to eliminate them, but that they could be modified to reduce
the paperwork burden for State agencies. Accordingly, forms FCS-155 and
FCS-155A were modified by removing some columns that collected
duplicate information.
With full implementation of the Processed Commodities Inventory
Management System (PCIMS), FCS decided to reexplore the usefulness of
forms FCS-155 and FCS-155A, and initiated a pilot project in 1994 to
determine if information entered in PCIMS would make the collection of
information in the reports redundant. After identifying relevant
information that can be accessed through this system, an alternate,
less time-consuming inventory reporting form was developed for use by
those State agencies participating in the pilot project. After
evaluating the results of the pilot project, this form--the revised
FCS-155--was further refined to collect information on excessive
commodity inventories only, and not the detailed information on receipt
and distribution of commodities currently reported. Excessive commodity
inventories are defined in 7 CFR 250.14(f) as those that exceed a six-
month supply. The revised FCS-155--renamed the Inventory Management
Register--was submitted for approval to the Office of Management and
Budget (OMB), and was approved by OMB on September 13, 1995, as part of
OMB #0584-0293. Also resulting from the pilot project, submittal of
form FCS-155A, which served to verify receipt of shipments of commodity
delivery orders, was found to be unnecessary. Distributing agencies
report receipts for foods delivered to the Kansas City Commodity
Office, utilizing form KC-269A, the Distributing Agency Consignee
Receipt, as directed in FCS Instruction 709-5, Shipment and Receipt of
Foods. Thus, distributing agencies administering child nutrition and
food distribution programs--except for FDPIR and the Commodity
Supplemental Food Program (CSFP)--now submit the revised FCS-155, the
Inventory Management Register, to FCS regional offices, and no longer
submit form FCS-155A. State agencies and Indian Tribal Organizations
administering FDPIR and CSFP submit more detailed information on
program participation, inventories of donated foods, and distribution
of donated foods to households, on a monthly basis, utilizing forms
FCS-152 (for FDPIR) and FCS-153 (for CSFP). Unlike other programs, the
information reported on these inventory forms is not currently
available through automated systems. Thus, State agencies and Indian
Tribal Organizations must continue to submit forms FCS-152 and FCS-153
for FDPIR and CSFP, respectively. As with other programs, however, the
submittal of form FCS-155A to verify the shipment of commodities by
delivery order is no longer required. This form was discontinued in
October 1995 for FDPIR, and in November 1995 for CSFP.
Twenty-eight commenters to the 1990 Notice suggested that commodity
acceptability reports be submitted annually, rather than semi-annually,
as was then required by law. Subsequent to the publication of the
Notice, however, Section 1773(d) of Pub. L. 101-624, the Food,
Agriculture, Conservation, and Trade Act of 1990, subsequently amended
Section 3(f)(2) of the Commodity Distribution Reform Act and WIC
Amendments of 1987 (Pub. L. 100-237; 7 U.S.C. 612c note) to require the
collection of commodity acceptability information annually. In order to
further reduce the paperwork burden, however, we are proposing to amend
regulations to exempt certain program categories from the annual
reporting requirement, while still conforming to the mandate of Pub. L.
100-237. This proposal is described below, in the section of this
preamble entitled ``Food Distribution Program Regulations (7 CFR Part
250).''
Additionally, a revision of form FCS-663, Commodity Acceptability
Report, has been developed with input from FCS Regional Offices and
State agencies. This revised form will substantially decrease the
paperwork burden for distributing and recipient agencies in reporting
commodity acceptability information, while still providing valuable
information on the commodity preferences of program recipients. The
revised form FCS-663 was approved by OMB on September 13, 1995, as part
of OMB #0584-0293.
Five commenters recommended that the State plan describing the
operation and administration of TEFAP, presently submitted annually, be
considered permanent, with amendments submitted as specific changes in
the administration of the program are made. However, on August 22,
1996, President Clinton signed into law the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, Pub. L. 104-193, which, in
Section 871(b) amended Section 202A of the Emergency Food Assistance
Act of 1983, Pub. L. 98-8 (7 U.S.C. 7503(a)), to require State agencies
to submit a TEFAP State plan every four years, with amendments
submitted as necessary, for the Department's approval. The four-year
requirement for submission of the TEFAP State Plan, instead of annual
submission, became effective on August 22, 1996. The Department will
address these, as well as other changes in the administration of TEFAP
resulting from passage of Pub. L. 104-193, through a separate
rulemaking.
Four commenters recommended that the distributing agency evaluation
of the cost efficiency of storage facilities be discontinued, or
required less frequently. The requirement that distributing agencies
periodically evaluate the cost-effectiveness of their current storage
systems (7 CFR 250.14) will be addressed in a separate rule.
Comments relative to commodity processing have been addressed in a
final rule which was published in the Federal Register on December 7,
1994 (59 FR 62973).
In addition to the policy and regulatory changes discussed above,
the Department is proposing to amend several regulatory requirements
contained in Parts 250, 251, and 253, based on comments received in
response to the Notice. The proposed regulatory amendments contained in
this rule are discussed in detail below.
[[Page 12112]]
Food Distribution Program Regulations (7 CFR Part 250)
Duration Requirements for Agreements and Contracts
Currently, Section 250.12(a) of the regulations requires that
distributing agencies enter into agreements with the Department that
are effective for only one year. In addition, Section 250.12(b) limits
agreements between State and recipient entities to only one year, with
the possibility of two one-year extensions. Sections 250.12(b) and
250.14(d) limit the length of contracts of distributing and
subdistributing agencies with storage facilities to only one year, with
the possibility of two one-year extensions. These regulations also
restrict the length of contracts between distributing agencies and
carriers to the same duration limits. Agreements between State agencies
and subdistributing or recipient agencies must establish (1) the
conditions under which donated foods will be made available, and (2)
responsibility for loss, damage, or improper use of donated foods.
Agreements of State or subdistributing agencies with storage facilities
must contain provisions designed to ensure that storage facilities
properly identify, store, and account for donated commodities.
Numerous commenters suggested that the one-year limit on agreements
be removed. Thirty-one commenters suggested that agreements between
State and recipient agencies be made permanent with provision for
amendments as necessary. Eleven commenters also suggested that the
annual agreement between the Department and State agencies be made
permanent. Eighteen commenters also recommended extending the duration
of contracts between distributing and subdistributing agencies and
storage facilities for the storage of donated foods.
The Department agrees that requiring Federal-State agreements to be
completed anew each year is burdensome and unnecessary. Accordingly,
this rule proposes to amend Sec. 250.12(a) to provide for permanent
agreements between the Department and State agencies, with amendments
to be made at the request of FCS. In addition, distributing agencies
would be required to notify FCS of the information as the agreement
changes. The Department's authority under Secs. 3015.124(a) and 3016.43
to terminate agreements for cause would not be affected by this
proposed change. Furthermore, the availability of funds and commodities
beyond those amounts available at the time the ``permanent'' agreements
are signed is dependent upon future Congressional appropriations and
FCS's annual decision to continue the agreement.
With regard to annual agreements between distributing and recipient
agencies, the Department recognizes the need for a relaxation of the
paperwork burden, and proposes to amend Sec. 250.12(b) to provide for
permanent agreements between distributing agencies and recipient
agencies, with amendments to be made as necessary. Distributing
agencies must ensure that recipient agencies provide, on a timely
basis, by amendment to the agreement, any information on changes in
program administration, including, but not limited to, changes in site
locations, number of meals or needy persons to be served, or changes
resulting from amendments to Federal regulatory requirements and
policy. Because of the nature of, and volatility in costs of, services
provided by carriers, and by subdistributing agencies that are not
recipient agencies (i.e., do not distribute donated foods to eligible
recipients or utilize foods to provide services to those eligible), the
Department believes that agreements between distributing agencies and
these entities should remain one year, with an option for two one-year
extensions. The proposed restructuring of Sec. 250.12 to detail the
different duration requirements for agreements between distributing
agencies and the various types of local entities is described below.
The Department agrees that contracts of longer duration between
State agencies and storage facilities would reduce the paperwork
burden. Such contracts would also be attractive to storage facilities,
as they would not have to bid so frequently for a new contract.
Furthermore, longer contracts would provide more time to amortize
expenses incurred in ensuring a high quality of service. Therefore, to
provide distributing agencies with maximum flexibility in contracting
for storage facilities, the Department proposes to amend Sec. 250.14(d)
to extend the contract period to be effective for no longer than five
years, including option years. Thus, distributing agencies may choose
to negotiate contracts for a five-year, or three-year, period, or for
one year with option years not exceeding four, etc. This flexibility
will enable State agencies to enter into contracts of whatever duration
in their estimation will yield the best combination of quality service
and cost, subject only to the five-year maximum. This rule also
proposes to make some technical changes in paragraphs (d) and (e) of
Sec. 250.14 by revising some incorrect references.
Under current regulations, food service management companies may be
employed to conduct the food service operations of charitable
institutions, nonprofit summer camps for children, nutrition programs
for the elderly, schools, nonresidential child care institutions, and
service institutions receiving donated foods. The duration of contracts
between these companies and charitable institutions, nonprofit summer
camps for children, and nutrition programs for the elderly is limited,
in Sec. 250.12(c), to one year, with an option for two additional one-
year periods. Section 210.16(d) sets the duration of contracts between
school food authorities, which administer school nutrition programs,
and food service management companies at one year, with an option for
four additional one-year periods. Although the commenters to the 1990
Notice did not address agreements with food service management
companies, this rule proposes, in the interest of reducing the
paperwork burden, to revise Sec. 250.12(c) to make contracts between
these companies and charitable institutions, nonprofit summer camps for
children, and nutrition programs for the elderly, of the same maximum
duration as those between food service management companies and school
food authorities. As part of the proposed revision of this section,
paragraph (2), addressing the length of time that records shall remain
available, would be removed, as recordkeeping requirements will be
established for all entities contracting with distributing,
subdistributing, or recipient agencies in Sec. 250.16.
This rule proposes to restructure Sec. 250.12 so as to more clearly
state the duration requirements for all food distribution program
agreements, as described above. The restructuring entails the revision
of Sec. 250.12(b) to describe the terms and conditions of distributing
agency agreements with recipient agencies, subdistributing agencies,
carriers, and other entities, and the creation of a new Sec. 250.12(c)
to address the duration of such agreements. Secs. 250.12(c), 250.12(d),
and 250.12(e) would be redesignated as Secs. 250.12(d), 250.12(e), and
250.12(f), respectively. In conformance with the restructuring of
Sec. 250.12, this rule proposes to delete reference to Sec. 250.12(c)
and insert instead reference to Sec. 250.12(d) in the following
Secs. 250.3, in the definition of ``food service management company'';
250.19(b)(1)(iv); 250.40(a)(4); 250.41(a)(3); 250.42(a); 250.48(a)(1);
and, 250.49(a). Additionally, this rule
[[Page 12113]]
proposes to make a technical change in the redesignated Sec. 250.12(e),
which addresses storage facility contracts, by replacing the incorrect
reference to Sec. 250.14(c) (``Reviews'') with a reference to Sec.
250.14(d) (``Contracts'').
Collection and Submission of Commodity Acceptability Information
7 CFR 250.13(k)(1) currently requires that State agencies obtain
information from recipient agencies which reflects: (1) The types and
forms of donated foods that are most useful to recipients; (2)
commodity specification recommendations; and (3) requests for options
regarding package sizes and forms of commodities. Paragraph (k)(2) of
this Section lists the categories of recipient agencies from which
State agencies are to obtain this information; paragraph (k)(3)
stipulates that this information be submitted to FCS on an annual
basis, utilizing form FCS-663.
Historically, USDA has donated a steady, dependable supply of foods
acquired under the Commodity Credit Corporation's price-support
operations to a variety of outlets, including charitable institutions
and nonprofit summer camps for children. These donated foods have
included cereal and grain products such as flour, cornmeal, rice,
rolled wheat and oats, bulgur, macaroni, and spaghetti; peanut and oil
products, such as roasted peanuts, peanut butter, peanut granules,
soybean oil, and soybean shortening; and dairy products. However, due
to the significant amounts of these foods that were distributed to
recipient agencies in the past, changes in price-support legislation,
and changes in agricultural market conditions, the inventories of
available donated foods have been greatly reduced. At the present time,
Federal inventories of surplus commodities are insufficient to supply
food distribution programs on a regular basis.
While donated foods may also become available to charitable
institutions and nonprofit summer camps for children through surplus-
removal actions, their availability cannot be assured, and the types of
commodities available can be expected to vary significantly over time.
Because of the variety in the types and forms of donated foods
previously available on an ongoing basis to charitable institutions and
nonprofit summer camps for children, the Department applied to these
institutions the regulatory requirement for annual collection and
reporting of commodity acceptability information. However, since
surplus commodities are not currently available to these institutions
on a regular basis, the Department has determined that collection of
commodity acceptability information from them no longer serves a useful
purpose.
For the same reasons, surplus commodities are also no longer
available in TEFAP on a regular basis. Although, since 1989,
commodities have been purchased, under authority of the Emergency Food
Assistance Act of 1983 (Pub. L. 98-8; 7 U.S.C. 7501-16), to supplement
the distribution of the dwindling surplus foods to needy households,
the amount of funds appropriated for commodity purchases in TEFAP has
been greatly reduced in recent years. Since the foods from which States
may select for distribution to TEFAP households are the same as those
available for distribution to eligible households in CSFP or FDPIR, the
Department believes that it is not necessary to require State agencies
to submit separate commodity acceptability reports for TEFAP.
USDA regulations (7 CFR 250.13(k)) also presently require that
commodity acceptability information for SFSP be submitted. However,
because the target group is the same as that for the National School
Lunch and School Breakfast Programs (which are included in the
legislative requirement), and because the donated foods provided are
the same, or similar, to donated foods provided in those programs, the
Department considers the collection and submission of commodity
acceptability information for recipient agencies participating in SFSP
to be redundant.
The Commodity Distribution Reform Act and WIC Amendments of 1987
(Pub. L. 100-237; 7 U.S.C. 612c note) provides the basis for the
Department's regulations requiring the collection of commodity
acceptability information from recipient agencies. Section 3(a)(1)(B)
of Pub. L. 100-237 provides that this data must be utilized by the
Department in determining the types and forms of foods to be purchased
for certain food distribution programs. The law does not, however,
specifically include SFSP or nonprofit summer camps for children among
those recipient agencies from which such information must be obtained.
Additionally, the law requires the collection and use of commodity
acceptability information only to the extent practicable for TEFAP, and
for the donation of foods to charitable institutions. Therefore, as
part of the Department's effort to reduce the paperwork burden, and for
the reasons discussed above, this rule proposes to revise
Sec. 250.13(k)(2) to exclude SFSP, summer camp, TEFAP, and charitable
institution recipient agencies from those for which distributing
agencies are required to submit commodity acceptability information.
Such distributing agencies may still choose to collect and submit to
FCS information on commodity acceptability from these categories of
recipient agencies, and all such submissions would be carefully
reviewed by FCS.
In conformance with the above proposals, this rule also proposes to
amend Sec. 250.13(k)(3) to delete reference to the annual submission by
November 30th of commodity acceptability reports for summer camps and
SFSP (for which reports would not be required), and to clarify that
distributing agencies must submit commodity acceptability reports (for
those programs for which reports would be required, as stipulated in
Sec. 250.13(k)(2)) to FCS Regional Offices by April 30th each year.
Additionally, this rule proposes to make a technical change to
Sec. 250.24(d)(1) by removing the word ``semi-annual'' to reflect the
current requirement contained in section 3(f)(2) of Pub. L. 100-237, as
amended, which mandates the annual collection of commodity
acceptability information. This statutory change was addressed in a
final rule published in the Federal Register on July 22, 1993 (58 CFR
39113).
Submission of Inventory Reports
As previously described in this Preamble, most distributing
agencies report excessive inventories of donated foods on the revised
FCS-155, the Inventory Management Register, while distributing agencies
administering FDPIR and CSFP use the more detailed inventory reports,
forms FCS-152 (FDPIR) and FCS-153 (CSFP), to submit data on program
participation, commodity distribution to households, and inventory
levels. This rule proposes to revise the language in Sec. 250.17(a) to
accurately describe the reporting function of FCS-155, which now
requires reporting of excessive inventories only, and to require
semiannual submission of this form, instead of monthly submissions,
unless FCS determines that (a) more frequent reporting is necessary to
maintain program accountability, or (b) less frequent reporting is
sufficient to meet program needs. Reference would continue to be made
to the submission of the FCS-155, or ``other format approved by FCS''--
the other currently approved formats being, of course, forms FCS-152
and FCS-153, utilized in FDPIR and CSFP, respectively. Lastly, we
propose to delete reference to a list of individual food orders
received for each food item delivered (the function
[[Page 12114]]
of the FCS-155A, which has been found to be unnecessary, as discussed
above).
Monitoring Requirements for Charitable Institutions and Summer Camps
7 CFR 250.19(b) requires State agencies to establish review
procedures to ensure compliance with Federal regulations addressing
household eligibility, food ordering and storage, inventory controls,
reporting and recordkeeping requirements, and civil rights provisions.
Section 250.19(b)(1)(i) presently requires State agencies to conduct
on-site reviews of each participating charitable institution, nonprofit
summer camp for children, and nutrition program for the elderly at
least once every four years, with at least 25 percent of the total
number of such institutions reviewed each year. Section
250.19(b)(1)(iv) requires biennial reviews of all food service
management companies under contract with recipient agencies that have
agreements with distributing agencies. Because of the reduced
availability of USDA commodities for charitable institutions and
nonprofit summer camps for children, as discussed in detail above, the
Department believes that the requirements governing monitoring reviews
for these recipient agencies, as well as the food service management
companies under contract with them, are excessive. Thus, the Department
proposes in this rule to revise Sec. 250.19(b)(1)(i) to require that
State agencies perform on-site reviews of charitable institutions,
nonprofit summer camps for children, and the food service management
companies under contract with them, at a minimum: (1) whenever the
State agency identifies actual or probable deficiencies in program
administration through audits, investigations of complaints, reports
submitted by recipient agencies, or any other information available to
the State agency which, at the discretion of the State agency, warrants
an on-site review; or, (2) at the request of FCS. State agencies are
encouraged to conduct more frequent reviews as resources and work
schedules permit. Section 250.19(b)(1)(iv) is proposed to be revised to
note the exception of food service management companies under contract
with charitable institutions and nonprofit summer camps for children
from the biennial review requirement for food service management
companies under contract with other types of recipient agencies.
FCS Instruction 113-3, ``Civil Rights Compliance and Enforcement--
Food Distribution Programs,'' presently includes an on-site review
requirement of recipient agencies every five years to ensure compliance
with civil rights regulations. In accordance with the above proposed
change in on-site review requirements for charitable institutions and
nonprofit summer camps for children, this provision of the instruction
would be removed. The revised instruction would require that on-site
reviews to ensure compliance with civil rights provisions be conducted
under conditions, and at the frequency, established by Federal
regulations for the various types of recipient agencies. While the
proposed rule relaxes on-site review requirements, distributing,
subdistributing, and recipient agencies would be required to continue
to comply with all other provisions in Federal regulations and FCS
Instruction 113-3, including the collection of racial/ethnic
participation data, to ensure that discrimination because of race,
color, national origin, age, sex, or handicap does not occur in the
operation of food distribution programs.
This rule also proposes to restructure Sec. 250.19(b)(1) to address
in separate subparagraphs nutrition programs for the elderly, on the
one hand, and charitable institutions and nonprofit summer camps for
children, on the other, because of the different monitoring
requirements that would result from adoption of the proposal described
above. In addition, this rule proposes to make a technical change in
Sec. 250.19(b)(1)(i) by deleting the incorrect reference to
Sec. 250.14(a) (``Standards for Warehousing and Distribution Systems'')
and inserting instead reference to Sec. 250.14(b) (``Standards for
Storage Facilities'').
The Emergency Food Assistance Program (7 CFR Part 251)
Duration Requirements for Agreements with Distributing and Recipient
Agencies
Section 251.2(c) of the regulations requires that distributing
agencies enter into an agreement with the Department for the receipt of
TEFAP foods and Federal funds for administrative costs. In addition to
entering into agreements with the Department, distributing agencies are
also required to enter into agreements with eligible emergency feeding
organizations (EFOs). As stated in Sec. 251.4(a), Part 250 applies to
the administration of TEFAP, to the extent that it is not inconsistent
with Part 251. While the duration requirements for these types of
agreements are not stipulated under this Part, 7 CFR 250.12(b) limits
the length of such agreements to one year. The provisions contained in
Sec. 251.2(c) also require that distributing agencies enter into
agreements with EFOs that receive Federal funds and that such
agreements be limited to one year, with an option for renewal for two
one-year periods.
As discussed in detail above, commenters recommended that Federal-
State agreements be made ongoing in order to reduce the paperwork
burden. The Department concurs with this recommendation, and proposes
to amend Sec. 251.2(c) to make TEFAP Federal-State agreements
permanent, with amendments to be made at the request of FCS, and to
make agreements between distributing agencies and EFOs permanent, with
amendments to be made as necessary. In addition, distributing agencies
must ensure that EFOs provide, on a timely basis, by amendment to the
agreement, any changed information, including any changes resulting
from amendments to Federal regulations or policy. Such information must
include, but not be limited to, changes in the number of distribution
sites and their locations, number of needy persons to be served,
frequency of distributions, household eligibility criteria to be used
in certifying households, and allocation of TEFAP administrative funds.
Submission of Inventory Reports
This rule proposes to amend Sec. 251.10(d)(2) to direct State
agencies to adhere to the inventory reporting requirements stipulated
in Sec. 250.17(a), since State agencies administering TEFAP will also
utilize the revised form FCS-155, the Inventory Management Register, to
report excessive commodity inventories. Household participation data
will also continue to be reported utilizing this form, at the same
frequency that inventory information is reported. This rule proposes to
include this requirement in the final sentence of Sec. 251.10(d)(2),
and to delete Sec. 251.10(d)(3), which presently addresses this
requirement, for both State agencies and EFOs. It will be up to each
State agency to determine how best to collect the necessary information
from the EFOs. Additionally, this rule proposes to amend
Sec. 251.10(a)(1) to remove reference to the obsolete Sec. 250.6(r),
and to refer to Sec. 250.16 instead.
Food Distribution Program on Indian Reservations (7 CFR Part 253)
Plan of Operation
Section 253.5(a) of the regulations requires that the State agency
(including Indian Tribal Organizations acting as the State agency)
responsible for the
[[Page 12115]]
administration of the Food Distribution Program on Indian Reservations
submit a plan of operation each year to FCS for approval. The
provisions in this section require that such plans contain a
description of the storage and distribution facilities to be utilized,
the method of assuring that only eligible households receive benefits,
and other information relative to the administration of the program.
Although the commenters did not recommend a change to the
requirement that State agencies submit a plan of operation to FCS each
year, the Department believes that, because the plan's contents do not
change much from year to year, the plan should be permanent, with
amendments added as changes in program administration are made. Thus,
this rule proposes to amend Sec. 253.5(a) to make the plan of operation
permanent, with amendments to be added as: (a) changes in State agency
administration of the program, as described in the plan, are made; or,
(b) at the request of FCS, e.g., in response to changes in State agency
plan requirements or guidance. The Department's authority under
Secs. 3015.124(a) and 3016.43 to terminate agreements for cause would
not be affected by this proposed change.
Application for Federal Assistance
State agencies and Indian Tribal Organizations must continue to
submit an application to receive Federal administrative funds on an
annual basis, as required by Sec. 253.9(c). However, this rule proposes
to amend this section of the regulations to reflect the fact that this
application is now made through completion of standard form SF-424,
which is mandated by 7 CFR Part 3016 (``Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments''), instead of form AD-623. This rule also proposes to
delete the statement in this section encouraging Indian Tribal
Organizations which act as State agencies to first submit applications
through the State clearinghouse, as agencies of State government are
required to do under 7 CFR Part 3015 (Uniform Federal Assistance
Regulations), Subpart V. The Department does not believe that this
statement is in the spirit of the Presidential directive of April 29,
1994 (``Government-to-Government Relations with Native American Tribal
Governments,'' 59 FR 22951, May 4, 1994), which encourages agencies of
the Federal government to work directly with Native American Tribal
Governments.
List of Subjects
7 CFR Part 250
Aged, Agricultural commodities, Business and industry, Food
assistance programs, Food donations, Food processing, Grant programs-
social programs, Indians, Infants and children, Price support programs,
Reporting and recordkeeping requirements, School breakfast and lunch
programs, Surplus agricultural commodities.
7 CFR Part 251
Aged, Agricultural commodities, Business and industry, Food
assistance programs, Food donations, Grant programs-social programs,
Indians, Infants and children, Price support programs, Reporting and
recordkeeping requirements, School breakfast and lunch programs,
Surplus agricultural commodities.
7 CFR Part 253
Administrative practice and procedure, Food assistance programs,
Grant programs, Social programs, Indians, Reporting and recordkeeping
requirements, Surplus agricultural commodities.
Accordingly, 7 CFR parts 250, 251, and 253 are proposed to be
amended as follows.
PART 250--DONATION OF FOODS FOR USE IN THE UNITED STATES, ITS
TERRITORIES AND POSSESSIONS AND AREAS UNDER ITS JURISDICTION
1. The authority citation for part 250 continues to read as
follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 612c, 612c note, 1431, 1431b,
1431e, 1431 note, 1446a-1, 1859, 2014, 2025; 15 U.S.C. 713c; 22
U.S.C. 1922; 42 U.S.C. 1751, 1755, 1758, 1760, 1761, 1762a, 1766,
3030a, 5179, 5180.
Secs. 250.3, 250.19, 250.40, 250.41, 250.42, 250.48, 250.49 [Amended]
2. In Sec. 250.3, in the definition of Food service management
company, and in Secs. 250.19(b)(1)(iv), 250.40(a)(4), 250.41(a)(3),
250.42(a), 250.48(a)(1), and 250.49(a), the citation ``250.12(c)'' is
removed wherever it appears, and the citation ``250.12(d)'' is added in
its place.
3. In Section 250.12:
a. The third and fourth sentences of paragraph (a) are revised;
b. The concluding text of paragraph (b) is removed;
c. Paragraphs (c), (d), and (e) are redesignated as paragraphs (d),
(e) and (f), and a new paragraph (c) is added; and
d. Newly redesignated paragraphs (d) and (e) are revised.
The revisions and addition read as follows:
Sec. 250.12 Agreements and contracts.
(a) Agreements with Department. * * * The agreements shall be
considered permanent, with amendments to be made at the request of FCS.
In addition, agreements between the Department and State Agencies on
Aging that elect to receive cash in lieu of commodities shall also be
considered permanent, with amendments to be made at the request of FCS.
* * * * *
(c) Duration of distributing agency agreements.--(1) Recipient
agencies. Distributing agency agreements with recipient agencies shall
be considered permanent, with amendments to be made as necessary.
Distributing agencies shall ensure that recipient agencies provide, on
a timely basis, by amendment to the agreement, any changed information,
including, but not limited to, any changes resulting from amendments to
Federal regulatory requirements and policy and changes in site
locations, and number of meals or needy persons to be served.
(2) Subdistributing agencies, carriers, and other entities.
Distributing agency agreements with subdistributing agencies that are
not recipient agencies, carriers, and other entities shall be in effect
for not longer than one year, and shall provide that they may be
extended at the option of both parties for two additional one-year
periods. The party contracting with the distributing agency shall
update all pertinent information and demonstrate that all donated food
received during the period of the previous agreement has been accounted
for, before an agreement is extended.
(3) Termination of agreements. Agreements may be terminated for
cause by either party upon 30 days notice.
(d) Food service management company contracts. Food service
management companies may be employed to conduct the food service
operations of nonprofit summer camps for children, charitable
institutions, nutrition programs for the elderly, schools,
nonresidential child care institutions, and service institutions. In
instances when a food service management company is employed to provide
such services, the recipient agency shall enter into a written contract
with the food service management company. The contract shall expressly
provide that any donated foods received by the recipient agency and
made available to the food service management company shall be utilized
[[Page 12116]]
solely for the purpose of providing benefits for the employing agency's
food service operation, and it shall be the responsibility of the
recipient agency to demonstrate that the full value of all donated
foods is used solely for the benefit of the recipient agency. All food
service management companies shall be subject to review by the
distributing agency for compliance with contractual requirements, in
accordance with Sec. 250.19(b)(1). In the case of nonprofit summer
camps for children, charitable institutions, and nutrition programs for
the elderly, the contract shall be in effect for no longer than one
year, and may provide that it be extended at the option of both parties
for not more than four additional one-year periods. Contracts shall
provide that they may be terminated for cause by either party upon 30
days notice. Prior to extension of the contract, the nonprofit summer
camp for children, charitable institution, or nutrition program for the
elderly shall update all pertinent information and demonstrate that all
donated food received during the previous contract period has been
accounted for.
(e) Storage facility contracts. When contracting for storage
facilities, distributing agencies and subdistributing agencies shall
enter into a written contract, in accordance with Sec. 250.14(d).
* * * * *
4. In Sec. 250.13:
a. Paragraph (k)(2) is amended by removing the words ``the Summer
Food Service Program'', ``charitable institutions, summer camps,'' and
``, and the Emergency Food Assistance Program''; and by adding ``and''
before ``the Food Distribution Program on Indian Reservations''; and
b. Paragraph (k)(3) is revised to read as follows:
Sec. 250.13 Distribution and control of donated foods.
* * * * *
(k) * * *
(3) Timeframes for submission. Distributing agencies shall submit
commodity acceptability reports to the appropriate FCSRO by April 30th
of each year on form FCS-663.
5. In Sec. 250.14:
a. The introductory text of paragraph (d) is amended by removing
the first three sentences, and adding two new sentences in their place;
b. Paragraph (d)(1) is amended by removing the reference to
``paragraph (a)'' and adding in its place a reference to ``paragraph
(b)''; and
c. Paragraph (e) is amended by removing the citation
``Sec. 250.14(b)'' in the first sentence, and adding in its place a
reference to ``paragraph (c) of this section''; and, by removing the
reference to ``paragraph (e)'' in the fourth sentence, and adding in
its place a reference to ``paragraph (f)''.
The additions read as follows:
Sec. 250.14 Warehousing, distribution and storage of donated foods.
* * * * *
(d) Contracts. When contracting for storage facilities,
distributing agencies and subdistributing agencies shall enter into
written contracts to be effective for no longer than five years,
including option years extending a contract. Before the exercise of
option years, the storage facility shall update all pertinent
information and demonstrate that all donated foods received during the
previous contract period have been accounted for. * * *
* * * * *
6. Section 250.17 is amended by revising paragraph (a) to read as
follows:
Sec. 250.17 Reports.
(a) Inventory reports and receipt of donated foods. Distributing
agencies shall complete and submit to the FCSRO semiannual reports
regarding excessive inventories (as defined in Sec. 250.14(f)) of
donated foods, utilizing form FCS-155, the Inventory Management
Register, except that distributing agencies shall submit monthly
inventory information on form FCS-152, for the Food Distribution
Program on Indian Reservations, and on form FCS-153, for the Commodity
Supplemental Food Program. FCS may require the use of other reporting
formats. FCS may also require that form FCS-155 be submitted more
frequently than semiannually if necessary to maintain program
accountability, and that any inventory report be submitted less
frequently if sufficient to meet program needs. Reports shall be
submitted not later than 30 calendar days after the last month in the
reporting period as established by FCS.
* * * * *
7. In Sec. 250.19:
a. Paragraph (b)(1)(i) is revised;
b. Paragraphs (b)(1)(ii), (b)(1)(iii), and (b)(1)(iv) are
redesignated as paragraphs (b)(1)(iii), b(1)(iv), and b(1)(v),
respectively;
c. A new paragraph (b)(1)(ii) is added; and,
d. Newly redesignated paragraph (b)(1)(v) is revised.
The revisions and addition read as follows:
Sec. 250.19 Reviews.
* * * * *
(b) Responsibilities of distributing agencies.
(1) * * *
(i) An on-site review of all nutrition programs for the elderly
under agreement in accordance with Sec. 250.12(b), at least once every
four years, with not fewer than 25 percent of these programs being
reviewed each year. These reviews shall also include on-site reviews of
the storage facilities of sites receiving donated foods to ensure
compliance with Sec. 250.14(b);
(ii) An on-site review of all charitable institutions and nonprofit
summer camps for children under agreement in accordance with
Sec. 250.12(b), and the food service management companies under
contract with these recipient agencies in accordance with
Sec. 250.12(d), at a minimum, whenever the distributing agency
identifies actual or probable deficiencies in program administration,
including compliance with civil rights provisions, through audits,
investigations of complaints, reports submitted by recipient agencies,
or any other information available to the State agency which, at the
discretion of the State agency, warrants an on-site review, or at the
request of FCS;
* * * * *
(v) A biennial review of all food service management companies
under contract with recipient agencies in accordance with
Sec. 250.12(d), except that:
(A) Food service management companies under contract with
charitable institutions and nonprofit summer camps for children shall
be reviewed in accordance with paragraph (b)(1)(ii) of this section;
and,
(B) Food service management companies under contract with schools
participating in the National School Lunch Program or commodity schools
under part 210 of this chapter, or with schools participating in the
School Breakfast Program under part 220 of this chapter, shall be
reviewed in accordance with the provisions set forth in parts 210 and
220.
* * * * *
Sec. 250.24 [Amended]
8. In Sec. 250.24, paragraph (d)(1) is amended by removing the word
``semi-annual''.
PART 251--THE EMERGENCY FOOD ASSISTANCE PROGRAM
1. The authority citation for part 251 is revised to read as
follows:
Authority: 7 U.S.C. 7501-7516.
2. Section 251.2 is amended by revising paragraph (c) to read as
follows:
[[Page 12117]]
Sec. 251.2 Administration.
* * * * *
(c) Each State agency that distributes donated foods to emergency
feeding organizations or receives payments for storage and distribution
costs in accordance with Sec. 251.8 shall perform those functions
pursuant to an agreement entered into with the Department. This
agreement shall be considered permanent, with amendments to be made at
the request of FCS. Such State agencies shall enter into a written
agreement with eligible emergency feeding organizations. This agreement
shall provide that emergency feeding organizations agree to operate the
program in accordance with the requirements of this part, and, as
applicable, Part 250 of this chapter. The agreement shall be considered
permanent, with amendments to be made as necessary. State agencies
shall ensure that emergency feeding organizations provide, on a timely
basis, by amendment to the agreement, any information on changes in
program administration, including, but not limited to, any changes
resulting from amendments to Federal regulations or policy.
3. In Sec. 251.10:
a. Paragraph (a)(1) is amended by removing the citation
``Sec. 250.6(r)'' and adding in its place the citation ``Sec. 250.16'';
b. Paragraph (d)(2) is revised to read as follows; and
c. Paragraph (d)(3) is removed.
Sec. 251.10 Miscellaneous provisions.
* * * * *
(d) Reports. * * *
(2) Each State agency shall complete and submit to the FCSRO
reports to ensure that excessive inventories of donated foods are not
maintained, in accordance with the requirements of Sec. 250.17(a) of
this chapter. Such reports shall also include the total number of
households served in the State since the previous report submittal,
based upon current information received from emergency feeding
organizations.
* * * * *
PART 253--ADMINISTRATION OF THE FOOD DISTRIBUTION PROGRAM FOR
HOUSEHOLDS ON INDIAN RESERVATIONS
1. The authority citation for part 253 continues to read as
follows:
Authority: 91 Stat. 958 (7 U.S.C. 2011-2027), unless otherwise
noted.
2. Section 253.5 is amended by removing the first two sentences of
the introductory text of paragraph (a)(1) and adding, in their place,
three new sentences to read as follows:
Sec. 253.5 State agency requirements.
(a) Plan of operation. (1) The State agency that assumes
responsibility for the Food Distribution Program shall submit a plan of
operation for approval by FCS. Approval of the plan shall be a
prerequisite to the donation of commodities available for use by
households under Sec. 253.9. The approved plan shall be considered
permanent, with amendments to be added as changes in State agency
administration or management of the program, as described in the plan,
are made, or at the request of FCS. * * *
* * * * *
3. Section 253.9 is amended by revising paragraph (c)(1) to read as
follows:
Sec. 253.9 Administrative funds for State agencies.
* * * * *
(c) Application for funds. (1) Any State agency administering a
Food Distribution Program that desires to receive administrative funds
under this section shall submit form SF-424, ``Application for Federal
Assistance,'' to the appropriate FCS Regional Office at least three
months prior to the beginning of a Federal fiscal year. The application
shall include budget information, reflecting by category of expenditure
the State agency's best estimate of the total amount to be expended in
the administration of the program during the fiscal year. FCS may
require that detailed information be submitted by the State agency to
support or explain the total estimated amounts shown for each budget
cost category. As required by 7 CFR 3015, Subpart V, agencies of State
government shall submit the application for Federal assistance to the
State clearinghouse before submitting it to the FCSRO. ITOs shall not
be subject to this requirement.
* * * * *
Dated: March 10, 1997.
William E. Ludwig,
Administrator.
[FR Doc. 97-6427 Filed 3-13-97; 8:45 am]
BILLING CODE 3410-30-U
