[Federal Register Volume 64, Number 170 (Thursday, September 2, 1999)]
[Rules and Regulations]
[Pages 48075-48077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22903]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 64, No. 170 / Thursday, September 2, 1999 /
Rules and Regulations
[[Page 48075]]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 246
RIN 0584-AC80
WIC Farmers' Market Nutrition Program: Legislative Changes From
the William F. Goodling Child Nutrition Reauthorization Act of 1998
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements three WIC Farmers' Market Nutrition
Program (FMNP) related nondiscretionary provisions mandated in the
William F. Goodling Child Nutrition Reauthorization Act of 1998. The
three provisions pertain to the use of program income as a State
matching fund source, elimination of specific State Plan ranking
criteria used to determine funding preferences, and use of expansion
funds to increase the value of benefits to recipients.
DATES: This regulation is effective October 1, 1998.
FOR FURTHER INFORMATION CONTACT: Debra Whitford, Supplemental Food
Programs Division, Food and Nutrition Service, USDA, 3101 Park Center
Drive, Room 542, Alexandria, Virginia 22302. (703) 305-2746.
SUPPLEMENTARY INFORMATION:
Background
On October 31, 1998, the President signed Pub. L. 105-336, the
William F. Goodling Child Nutrition Reauthorization Act of 1998 (the
Goodling Act), which included three non-discretionary provisions
regarding the FMNP. The three provisions address: program income as an
allowable State matching fund source, elimination of specific State
Plan ranking criteria used to determine funding preferences, and use of
expansion funds to increase the value of benefits to recipients. This
final rule implements those nondiscretionary FMNP provisions as
reflected in section 203(o) of the Goodling Act. These provisions serve
the interests of the President and Congress by providing greater
flexibility for FMNP State agencies in the operation of the program,
and expanding the allowable sources for meeting the State matching fund
requirement. Because of the nondiscretionary nature of these
legislative provisions, the Administrator of the Food and Nutrition
Service has determined that, in accordance with 5 U.S.C. 553, prior
notice and comment is unnecessary and contrary to the public interest,
and for the same reason, that good cause exists for the publication of
this rule less than 30 days prior to its effective date. The effective
date of this rule is October 1, 1998, the same date on which the
Goodling Act was signed.
Program Income
Section 203(o)(1) of the Goodling Act amended section 17(m)(3) of
the Child Nutrition Act of 1966 (CNA) (42 U.S.C. 1786(m)(3)) to allow
States to use program income as a source for meeting the FMNP State
matching fund requirement. The conference report accompanying the
Goodling Act [House Report No. 105-786, October 6, 1998] stated that
the term ``program income'' was to be defined as in the Uniform Federal
Assistance Regulations (7 CFR Part 3016.25), thereby permitting
donations by companies and vendor fines for violations in the WIC
Program to be used to meet the State matching fund requirement.
Sections 248.2 and 248.14(a)(1) of the FMNP regulations are hereby
amended to reflect this change. Current section 248.13 defines program
income for FMNP purposes.
Expansion Funds
Section 203(o)(2) of the Goodling Act amended Section 17(m)(6)(C)
of the CNA, (42 U.S.C. 1786(m)(6)(C)) by permitting use of Federal
expansion funds for increases in the value of benefits in lieu of, or
in addition to, the criterion that State agencies must serve additional
recipients in order to receive the expansion funds. It also replaced
the requirement for documentation that justifies the need for an
increase in participation when seeking expansion funds with language
requiring the Department of Agriculture (the Department) to consider
the State agency's need for an increase in funding, and whether the use
of the increased funding would be consistent with serving nutritionally
at-risk persons and expanding program awareness. The law also added a
requirement that the Department consider whether the rate of coupon
redemption will be increased in those State agencies that use expansion
funds to increase the value of benefits provided to individual
recipients. The Department wishes to point out that under section
17(m)(5)(C) 42 U.S.C. 1786(m)(5)(C), the maximum Federal FMNP benefit
level remains unchanged at $20 per recipient, per year. Sections
248.4(a)(19) and 248.14(e) are hereby amended to reflect these changes.
Selection of New State Agencies
Section 203(o)(3) of the Goodling Act eliminated section
17(m)(6)(F) of the CNA (42 U.S.C. 1786(m)(6)(F)) which outlined
specific criteria and preferences for consideration by the Department
in ranking State Plans from new FMNP State agencies for the purposes of
determining the amount of Federal funds to be allocated. Accordingly,
section 248.5 is hereby amended to reflect elimination of the criteria
and preferences.
Executive Order 12866
This final 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.
Regulatory Flexibility Act
This final rule has been reviewed with regard to the requirements
of the Regulatory Flexibility Act (5 U.S.C. 601-612). Samuel Chambers,
Jr., Administrator of the Food and Nutrition Service, has certified
that this rule will not have a significant impact on a substantial
number of small entities. This rule provides additional flexibility in
program initiation and operation for FMNP State agencies, some of whom
are small entities.
Paperwork Reduction Act
This final rule imposes no new reporting or recordkeeping
requirements that are subject to OMB review in accordance with the
Paperwork
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Reduction Act of 1995 (44 U.S.C. 3501-20).
Executive Order 12372
The WIC Farmers Market Nutrition Program is listed in the Catalog
of Federal Domestic Assistance Programs under 10.572. For reasons set
forth in the final rule in 7 CFR part 3015, subpart V, and related
notice (48 FR 29115), this program is included in the scope of
Executive Order 12372, which requires intergovernmental consultation
with State and local officials.
Executive Order 12988
This final 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 DATES paragraph of the final rule. Prior to
any judicial challenge to the application of provisions of this rule,
all applicable administrative procedures must be exhausted.
Public Law 104-4
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law (Pub. L.) 104-4, establishes requirements for Federal agencies to
assess the effects of their regulatory actions on State, local and
tribal governments and the private sector. Under section 202 of the
UMRA, FNS generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures by State, local or tribal
governments, in the aggregate, or the private sector, of $100 million
or more in any one year. When such a statement is needed for a rule,
section 205 of the UMRA generally requires FNS to identify and consider
a reasonable number of regulatory alternatives and adopt the least
costly, more cost-effective or least burdensome alternative that
achieves the objectives of the rule. This rule contains no Federal
mandates (under the regulatory provisions of Title II of the UMRA) for
State, local and tribal governments or the private sector of $100
million or more in any one year. Thus, this rule is not subject to the
requirements of sections 202 and 205 of the UMRA.
List of Subjects in 7 CFR Part 248
Administrative practice and procedure, Civil rights, Food
assistance programs, Food donations, Grant programs--health, Grant
programs--social programs, Indians, Infants and children, Maternal and
child health, Nutrition, Nutrition education, Penalties, Public
assistance programs, Reporting and recordkeeping requirements, WIC,
Women.
For the reasons set forth in the preamble, 7 CFR part 248 is
amended as follows:
PART 248--WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)
1. The authority citation for part 248 continues to read as
follows:
Authority: 42 U.S.C. 1786.
2. In Sec. 248.2 the definitions of ``FMNP funds'' and ``Matching
requirement'' are revised to read as follows:
Sec. 248.2 Definitions.
* * * * *
FMNP funds means Federal grant funds provided for the FMNP, plus
the required matching funds.
* * * * *
Matching requirement means State, local or private funds, or
program income equal to not less than 30 percent of the total FMNP
costs for the fiscal year. The Secretary may negotiate with an Indian
State agency a lower percentage of matching funds, but not less than 10
percent of the total cost of the program, if the Indian State agency
demonstrates to the Secretary financial hardship for the affected
Indian tribe, band, group, or council. The match may be satisfied
through expenditures for similar farmers' market programs which operate
during the same period as the FMNP. Similar programs include other
farmers' market programs which serve low-income women, infants and
children (who may or may not be WIC participants or on the waiting list
for WIC services), as well as other categories of low-income
recipients, such as, but not limited to, low-income elderly persons.
* * * * *
3. In Sec. 248.4, paragraph (a)(19) is revised to read as follows:
Sec. 248.4 State Plan.
(a) * * *
(19) For States making expansion requests, documentation which
demonstrates:
(i) The need for an increase in funding;
(ii) That the use of the increased funding will be consistent with
serving WIC participants, or persons on a waiting list for WIC
benefits, by expanding benefits to more persons, by enhancing current
benefits, or a combination of both, and expanding the awareness and use
of farmers' markets;
(iii) The ability to satisfactorily operate the existing FMNP;
(iv) The management capabilities of the State agency to expand; and
(v) Whether, in the case of a State agency that intends to use the
funding to increase the value of the Federal share of the benefits
received by a recipient, the funding provided will increase the rate of
coupon redemption.
* * * * *
4. Section 248.5 is revised to read as follows:
Sec. 248.5 Selection of new State agencies.
In selecting new State agencies, the Department will use objective
criteria to rank and approve State plans submitted in accordance with
Sec. 248.4. In making this ranking, the Department will consider the
amount of funds necessary to successfully operate the FMNP in the State
compared with other States and with the total amount of funds available
to the FMNP. Approval of a State Plan does not equate to an obligation
on the part of the Department to fund the FMNP within that State
agency.
5. In Sec. 248.14, paragraphs (a)(1)(i) and (e) are revised to read
as follows.
Sec. 248.14 Distribution of funds.
(a) * * *
(1) * * *
(i) Match amount. As a prerequisite to the receipt of Federal
funds, a State agency must agree to contribute State, local or private
funds, or program income, equal to not less than 30 percent of its
total FMNP cost. The Secretary may negotiate a lower percentage of
matching funds, but not lower than 10 percent of the total cost of the
program, in the case of an Indian State agency that demonstrates to the
Secretary financial hardship for the affected Indian tribe, band,
group, or council. The State agency may contribute more than this
minimum amount. State, local or private funds for similar programs as
defined in (248.2 may satisfy the State matching requirement.
* * * * *
(e) Expansion for current State agencies. In providing funds to
State agencies that participated in the FMNP in the previous fiscal
year, the Department shall consider on a case-by-case basis, the
following:
(1) Whether the State agency utilized at least 80 percent of its
prior year food grant. States that did not spend at least 80 percent of
their prior year food grant may still be eligible for expansion funding
if, in the judgment of the Department, good cause existed which
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was beyond the management control of the State, such as severe weather
conditions, or unanticipated decreases in participant caseload in the
WIC Program.
(2) Documentation supporting the funds expansion request as
outlined in Sec. 248.4(a)(19).
* * * * *
Dated: August 23, 1999.
Samuel Chambers, Jr.,
Administrator.
[FR Doc. 99-22903 Filed 9-1-99; 8:45 am]
BILLING CODE 3410-30-P
