[Federal Register Volume 62, Number 200 (Thursday, October 16, 1997)]
[Rules and Regulations]
[Pages 53727-53731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27310]



[[Page 53727]]

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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

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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]
BILLING CODE 3410-30-P