Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Local Agency Expenditure Reports

DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 246

RIN 0584-AC74

Special Supplemental Nutrition Program for Women, Infants, and

Children (WIC): Local Agency Expenditure Reports

AGENCY: Food and Nutrition Service, USDA.

ACTION: Direct final rule.

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SUMMARY: This direct final rule amends the regulations for the Special

Supplemental Nutrition Program for Women, Infants, and Children (WIC)

to give State agencies greater flexibility in the way they collect

expenditure data from local agencies. State agencies will be allowed to

permit local agencies to submit expenditure reports up to quarterly,

rather than monthly as is currently required. This rule responds to a

recommendation suggested by some State agencies and is intended to

allow State agencies to streamline program administration.

DATES: This rule will become effective on January 24, 2000, unless we

receive written adverse comments or notices of intent to submit adverse

comments postmarked on or before December 9, 1999.

ADDRESSES: Comments should be sent to Patricia N. Daniels, Director,

Supplemental Food Program Division, Food and Nutrition Service, U.S.

Department of Agriculture, Park Office Center, Room 540, 3101 Park

Center Drive, Alexandria, VA 22302-1594. All written submissions will

be available for public inspection at this address during normal

business hours (8:30 a.m. to 5 p.m., Mondays through Fridays).

FOR FURTHER INFORMATION CONTACT: Debbie McIntosh at the above address

or telephone (703) 305-2710.

SUPPLEMENTARY INFORMATION:

Background

What is the Current Requirement for Reporting Expenditures?

Under the WIC Program, we provide funds to State agencies to pay

for the food costs and nutrition services and administration (NSA)

costs incurred by the State agencies and their local agencies. We

distribute these funds to State agencies pursuant to the funding

formulas at 7 CFR 246.16. Section 246.16(d) requires State agencies to

provide to local agencies all funds made available by the Department,

except those funds necessary for allowable State agency NSA costs and

food costs paid directly by the State agency. Section 246.16(d) further

requires State agencies to distribute the funds based on claims

submitted at least monthly by the local agency.

How Does This Direct Final Rule Change the Reporting Requirement?

Some State agencies are experimenting with ways to streamline

program administration. Among the suggestions we have received is a

recommendation to permit local agency NSA expenditure reports to be

filed quarterly, instead of monthly. State agencies have pointed out

that many other Federal programs use quarterly reporting. Accordingly,

we have decided to change the WIC regulations on this point.

Under this change, State agencies may permit local agencies to

submit their expenditure reports quarterly. State agencies may require

more frequent reports if they wish. A parallel change is made to the

current requirement that State agencies offset advances against

incoming claims each month. Instead, offset is required as the claims

are submitted. This accommodates whatever reporting period a State

agency chooses.

Does This Change Affect Local Agency Reports of Food Cost

Expenditures?

This change would apply to local agency reports of both NSA

expenditures and food cost expenditures. The primary effect of this

change would be for NSA expenditure reports, because in most State

agencies the food costs are paid by the State agency rather than the

local agencies. However, this rule does extend State agencies the same

flexibility in setting the reporting period for food cost reports by

local agencies. If a State agency chooses to permit bimonthly or

quarterly reporting of food cost expenditures, the food costs must

still be broken down by month within the reporting period.

Why Is This a Direct Final Rule?

The Department has decided to promulgate this change as a direct

final rule in light of its noncontroversial nature and in order to give

State agencies this option as quickly as possible. Readers should refer

to our policy statement on the use of direct final rules (October 23,

1997, 52 FR 55141) for a description of the direct final rulemaking

process. If we receive timely adverse comments or notices of intent to

submit adverse comments within the scope of this rulemaking, we will

publish timely notification of withdrawal of this rule in the Federal

Register.

Executive Order 12866

This direct 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 (5 U.S.C. 601-612). The Administrator of

the Food and Nutrition Service (FNS) has certified that this action

will not have a significant economic impact on a substantial number of

small entities. While procedures in this rulemaking will affect State

and local agencies that administer the WIC Program, any economic effect

will not be significant.

Unfunded Mandate Reform Act of 1995

Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public

Law 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 to State, local, or tribal governments, in

the aggregate, or

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to 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 lease 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 direct final rule is not subject to the requirements

of sections 202 and 205 of the UMRA.

Executive Order 12372

This program is listed in the Catalog of Federal Domestic

Assistance under 10.557. For the reasons set forth in 7 CFR Part 3015,

Subpart V and the final rule-related notice published at 48 FR 29115,

June 24, 1983, this program is included in the scope of Executive Order

12372 which requires intergovernmental consultation with State and

local officials.

Paperwork Reduction Act of 1995

This final rule contains no new information collection requirements

under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). The

existing recordkeeping and reporting requirements, which were approved

by OMB under control number 0584-0045, will not change as a result of

this final rule.

Executive Order 12988

This direct 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. Prior to any judicial challenge to the application of the

provisions of this rule, all applicable administrative procedures must

be exhausted.

List of Subjects in 7 CFR Part 246

Administrative practice and procedure, Civil rights, Food

assistance programs, Food and Nutrition Service, Food donations, Grant

programs--health, Grant programs--social programs, Indians, Infants and

children, Maternal and child health, Nutrition, Nutrition education,

Penalties, Reporting and recordkeeping requirements, Public assistance

programs, WIC, Women.

Accordingly, 7 CFR Part 246 is amended as follows:

PART 246--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,

INFANTS, AND CHILDREN

1. The authority citation for Part 246 continues to read as

follows:

Authority: 42 U.S.C. 1786.

Sec. 246.16 [Amended]

2. In Sec. 246.16, amend the introductory text of paragraph (d) as

follows:

a. in the second sentence, remove the word ``monthly'' and add in

its place the word ``quarterly'';

b. in the third sentence, remove the words ``each month'' and add

it their place the words ``as they are submitted''.

Dated: October 29, 1999.

Samuel Chambers, Jr.,

Administrator, Food and Nutrition Service.

[FR Doc. 99-29319 Filed 11-8-99; 8:45 am]

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