Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Rules and Regulations 53727

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.

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
53728 Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Rules and Regulations

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
Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Rules and Regulations 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-toGovernment 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:

§ 250.3 Definitions.

* * * * *

Storage facility means an operation

that provides warehousing services, or

provides both warehousing and delivery

services.

* * * * *

§§ 250.3, 250.40, 250.41, 250.42, 250.48,

250.49 [Amended]

3. In § 250.3, in the definition of Food

service management company, and in

§§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 §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:

§ 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.
53730 Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Rules and Regulations

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 § 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 oneyear 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 § 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 oneyear 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

§ 250.14(d).

* * * * *

5. In § 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:

§ 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 § 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 ‘‘§ 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:

§ 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:

§ 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 § 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 § 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:

§ 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

§ 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 § 250.14(b);

(ii) An on-site review of all charitable

institutions and nonprofit summer

camps for children under agreement in

accordance with § 250.12(b), and the

food service management companies
Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Rules and Regulations 53731

under contract with these recipient

agencies in accordance with § 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 § 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.

* * * * *

§ 250.24 [Amended]

9. In § 250.24, paragraph (d)(1) is

amended by removing the word ‘‘semiannual’’.

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:

§ 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 § 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 § 251.10:

a. Paragraph (a)(1) is amended by

removing the citation ‘‘§ 250.6(r)’’, and

adding in its place the citation

‘‘§ 250.16’’;

b. Paragraph (d)(2) is revised to read

as follows; and

c. Paragraph (d)(3) is removed.

§ 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

§ 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:

§ 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 § 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:

§ 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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

Soybean Promotion and Research;

Rules and Regulations

CFR Correction

In title 7 of the Code of Federal

Regulations, parts 1200 to 1499, revised

as of January 1, 1997, on page 130,

§ 1220.315 should be removed.

BILLING CODE 1505–01–D