Food Distribution ProgramsReduction of the Paperwork Burden

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: Final rule.

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SUMMARY: This final rule amends provisions of the Food Distribution

Program, Emergency Food Assistance Program (TEFAP), and Food

Distribution Program for Households on Indian Reservations (FDPIR)

regulations to reduce the paperwork burden associated with the

administration of food distribution programs at the State and local

level. This action was initiated by the Child Nutrition and WIC

Reauthorization Act of 1989, which amended the National School Lunch

Act to require the Secretary to endeavor to reduce the paperwork burden

for agencies participating in nutrition assistance programs. This final

rule contains provisions which 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.

EFFECTIVE DATE: This final rule is effective November 17, 1997.

FOR FURTHER INFORMATION 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, VA 22302-1594, or

telephone (703) 305-2662.

SUPPLEMENTARY INFORMATION:

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 (OMB).

Regulatory Flexibility Act

This action has 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

will 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 will 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), changes in the information collection burden that would result

from the adoption of the proposals contained in the proposed rule

published in the Federal Register on March 14, 1997 (62 FR 12108) were

submitted for public comment. As discussed below, no comments were

received. Current reporting and recordkeeping requirements were

approved by the Office of Management and Budget under Control Numbers

0584-0293 and 0584-0067.

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 EFFECTIVE DATE section of the preamble.

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

In response to the mandates of the Child Nutrition and WIC

Reauthorization Act of 1989 (Pub. L. 101-147), a notice was published

in the Federal Register (55 FR 13156) on April 9, 1990, soliciting

comments on ways to reduce the paperwork burden for food distribution

programs. In response to comments received, the Department implemented

several changes to reduce the paperwork burden and streamline

operations, including simplifying the process of reporting and acting

on commodity complaints, and eliminating or revising reports submitted

by distributing agencies. To respond to comments touching upon

procedures and reports established by Federal regulations, and to

incorporate the input provided in subsequent discussions with State

program administrators and representatives of commodity distribution

associations, the Department published a proposed rule in the Federal

Register (62 FR 12108) on March 14, 1997. The proposed rule provided a

60-day comment period.

Analysis of Comments Received

The Department received a total of 10 comment letters, including

four from distributing agencies, three from school food authorities,

two from commercial distributors, and one from a national commodity

distribution association. A total of 32 separate comments were

contained in the letters. While all commenters supported the provisions

contained in the proposed rule, a few suggested clarifications of

regulatory language or meaning. A description of the comments received,

and revisions made in response to the comments, are discussed in detail

below.

Information Collection Burden

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

3507), the Food and Consumer Service submitted for public comment the

changes in the information collection burden that would result from the

adoption of the provisions contained in the proposed rule published in

the Federal Register on March 14, 1997 (62 FR 12108). Comments were

solicited on: (a) Whether the proposed collection of

[[Page 53728]]

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. No comments were received

relative to the changes in the information collection burden resulting

from the proposed regulatory revisions. Therefore, the revised burden

hours will be submitted to the Office of Management and Budget for

approval as proposed.

Distributing Agency Agreements With the Department

The proposed rule would amend sections 250.12(a) and 251.2(c) to

make agreements between the Department and distributing agencies

permanent, with amendments to be made at the request of FCS. Three of

the ten respondents supported this proposal. However, one commenter

suggested that the language on amendments to agreements between the

Department and distributing agencies be modified to indicate that

distributing agencies may also propose to amend the agreement, which

would be subject to the Department's approval. The Department agrees

that the regulatory language should be modified to allow for this

contingency; hence, this final rule adopts the proposed changes to

sections 250.12(a) and 251.2(c) with the following modification: ``* *

* with amendments initiated by distributing agencies, or submitted by

them at the Department's request, all of which shall be subject to

approval by the Department.''

Distributing Agency Agreements With Recipient Agencies

The proposed rule would also amend sections 250.12(c)(1) and

251.2(c) to make agreements between distributing and recipient agencies

permanent, with amendments to be made as necessary. The three

respondents which commented on this provision supported the proposal.

Therefore, this final rule adopts the permanent agreement amendments

proposed for sections 250.12(c) and 251.2(c) without change.

The proposed rule did not propose to amend the duration of

agreements between distributing agencies and (1) subdistributing

agencies that are not also recipient agencies, (2) carriers, and (3)

other entities to which distributing agencies deliver donated foods,

which would remain one year, with an option for two additional one-year

periods. While no comments suggested amending the duration of these

agreements, one comment suggested adding a definition of

``subdistributing agency'' for the purpose of clarifying which agencies

are subject to the stated agreement period. Since section 250.3 already

contains a definition of subdistributing agency which accurately

describes the types of functions an organization must perform in order

to be considered a subdistributing agency, the final rule amends

section 250.12(c)(2) to reference the definition set forth in section

250.3, as well as incorporating the other proposed changes.

Storage Facility Contracts

Section 250.14(d) would be amended by the proposed rule to extend

the duration of contracts of distributing and subdistributing agencies

with storage facilities to a maximum of five years, including option

years. While the five respondents which commented on this provision

supported the proposal, one commenter suggested that the extended

contract period should also apply to facilities that both store and

deliver commodities since they would benefit from longer contracts in

the same manner as facilities engaged only in storage. The Department

did not intend to exclude such facilities under the proposed rule.

Therefore, in order to clarify the Department's intent, section 250.3

is revised under this final rule to add a definition of storage

facilities which specifically includes facilities that both store and

deliver commodities, as well as those that only store commodities. The

final rule extends the duration of contracts of distributing and

subdistributing agencies with storage facilities, as defined in section

250.3, to a maximum of five years, including option years, as proposed.

However, it should be noted that ``carriers''--those entities which

perform only a delivery function--are still limited to one-year

contracts, with options for two additional one-year periods, as

stipulated in section 250.12(c)(2), as amended by this final rule.

Food Service Management Company Contracts

The proposed rule would amend section 250.12(d) to extend the

duration of contracts between food service management companies and

charitable institutions, nutrition programs for the elderly, and

nonprofit summer camps for children to one year, with an option for

four additional one-year periods. The three respondents which commented

on this provision supported the proposal. Therefore, this provision is

retained in this final rule as proposed.

Commodity Acceptability Report Requirements

The proposed rule would amend section 250.13(k)(2) to exclude the

Summer Food Service Program (SFSP), summer camps, the Emergency Food

Assistance Program, and charitable institutions from those recipient

agencies for which distributing agencies are required to submit

commodity acceptability information. The proposed rule would also amend

section 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 clarify that

distributing agencies must submit commodity acceptability reports (for

those programs for which reports would be required, as stipulated in

section 250.13(k)(2)) to FCS Regional Offices by April 30th each year.

Additionally, the rule proposed to make a technical change to section

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 by section 1773(d) of Pub. L. 101-624, which mandates the

annual collection of commodity acceptability information. Since the

comments received support these provisions, proposed revisions to

sections 250.13(k)(2), 250.13(k)(3), and 250.24(d)(1) are retained in

this final rule.

Inventory Report Requirements

The proposed rule would amend section 250.17(a) to require

semiannual, instead of monthly, submissions of form FCS-155, the

Inventory Management Register, and describes the function of this form,

which is to report information on excessive commodity inventories. The

proposed rule would also allow FCS to require more frequent reporting,

if necessary to maintain program accountability, or less frequent

reporting, if sufficient to meet program needs. The language of section

251.10(d) would be modified by the proposed rule to refer to the

revised inventory reporting requirements in section 250.17(a), and to

require submission of household participation data for TEFAP utilizing

form FCS-155 at the same frequency that inventory information is

reported. Under the proposed rule, this section would also be revised

to delete

[[Page 53729]]

reference to a list of individual food orders received for each food

item delivered (the function of the FCS-155A, which has been determined

to be unnecessary). The three respondents which commented on these

provisions supported the proposed revisions. Thus, the proposed

amendments to sections 250.17 and 251.10 relative to the submission of

FCS Form FCS-155 are retained in this final rule.

Monitoring Review Requirements

The proposed rule would revise section 250.19(b) to require State

agencies to conduct 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. The comments

received supported this proposal. Hence, the revisions to this section

are retained in this final rule as proposed.

FDPIR State Plan

Section 253.5(a), as amended by the proposed rule, would make the

FDPIR State plan permanent, with amendments 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. Commenters supported this

proposal. Therefore, the proposed revision to section 253.5(a) remains

unchanged in this final rule.

TEFAP State Plan

One comment was received proposing that the TEFAP State plan be

made permanent. However, as stated in the preamble of the proposed

rule, section 871(b) of the Personal Responsibility and Work

Opportunity Reconciliation Act of 1996, Pub. L. 104-193, amended

section 202A of the Emergency Food Assistance Act of 1983, Pub. L. 98-

8, to require State agencies to submit a TEFAP State plan every four

years, with amendments submitted as necessary. This requirement, which

will be codified in a future rule, became effective with the enactment

of Pub. L. 104-193 on August 22, 1996. Given the requirements contained

in the legislation, the Department does not have the authority the make

TEFAP State plans permanent.

Application for Federal Assistance

The proposed rule would amend section 253.9(c) to reflect the

current form, i.e., SF-424, which Indian Tribal Organizations (ITOs)

must submit to receive Federal administrative funds on an annual basis

instead of form AD-623. This section would also be amended to delete

the statement encouraging ITOs which act as State agencies to first

submit applications for Federal administrative funds through the State

clearinghouse since the Department does not believe that this statement

is in the spirit of the ``Government-to-Government Relations with

Native American Tribal Governments'' Presidential directive which was

issued on April 29, 1994 and published in the Federal Register on May

4, 1994 (59 FR 22951). No comments were received concerning these

provisions. Therefore, the proposed revisions to section 253.9(c) are

retained in this final rule.

Technical Changes

A number of technical changes to regulatory provisions were

proposed in the proposed rule. Since no comments were received on any

of these changes, they are included in this final rule without

modification.

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 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.

2. Section 250.3 is amended by adding a definition of Storage

facility, in alphabetical order, to read as follows:

Sec. 250.3 Definitions.

* * * * *

Storage facility means an operation that provides warehousing

services, or provides both warehousing and delivery services.

* * * * *

Secs. 250.3, 250.40, 250.41, 250.42, 250.48, 250.49 [Amended]

3. In Sec. 250.3, in the definition of Food service management

company, and in Secs. 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.

4. In Sec. 250.12:

a. The third and fourth sentences of paragraph (a) are revised;

b. The undesignated text following paragraph (b)(4) 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 initiated by distributing

agencies, or submitted by them at the Department's request, all of

which shall be subject to approval by the Department. 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 initiated by these agencies, or submitted by

them at the Department's request, all of which amendments shall be

subject to approval by the Department.

* * * * *

(c) Duration of distributing agency agreements.--(1) Recipient

agencies.

[[Page 53730]]

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 (as

defined in Sec. 250.3) 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. 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 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).

* * * * *

5. 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 the word

``and'' before the words ``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.

6. 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. * * *

* * * * *

7. 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.

* * * * *

8. 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

[[Page 53731]]

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]

9. 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:

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 initiated by

distributing agencies, or submitted by them at the Department's

request, all of which shall be subject to approval by the Department.

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 part 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: October 2, 1997.

Yvette S. Jackson,

Acting Administrator.

[FR Doc. 97-27310 Filed 10-15-97; 8:45 am]

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