This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

12108

Vol. 62, No. 50

Friday, March 14, 1997

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: Proposed rule.

SUMMARY: This rule proposes to amend

the Food Distribution Program

regulations, the Emergency Food

Assistance Program regulations, and the

Food Distribution Program for

Households on Indian Reservations

regulations to implement the provisions

of the Child Nutrition and WIC

Reauthorization Act of 1989 regarding

paperwork reduction for food

distribution programs. The proposals

contained in this rule would 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. The proposals

would, in short, effect a substantial

reduction in the information collection

requirements imposed on distributing

and recipient agencies, and the

paperwork generated in fulfilling these

requirements, in administering food

distribution programs.

DATES: To be assured of consideration,

comments must be postmarked on or

before May 13, 1997.

ADDRESSES: Comments should be sent

to: 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. Comments in response

to this rule may be inspected at 3101

Park Center Drive, Room 502,

Alexandria VA, during normal business

hours (8:30 a.m. to 5 p.m., Mondays

through Fridays).

FOR FURTHER INFORMATION CONTACT:

Lillie Ragan at the above address or

telephone (703) 305–2662.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed 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 for

any purpose other than approval of the

changes in the information collection

burden proposed in the rule.

Regulatory Flexibility Act

This action has also 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

would 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 would 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),

the Food and Consumer Service is

submitting for public comment the

changes in the information collection

burden that would result from the

adoption of the proposals in the rule.

Comments are invited on: (a) whether

the proposed collection of 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. To be assured of

consideration, comments must be

postmarked on or before May 13, 1997.

Comments may be sent to Wendy

Taylor, Desk Officer, Office of

Information and Regulatory Affairs,

Office of Management and Budget

(OMB), Washington DC 20503. All

comments will be summarized and

included in the request for OMB

approval of the proposed changes in the

information collection burden. All

comments will become a matter of

public record. For further information,

or for copies of the information

collections discussed below, please

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, Virginia 22302–1594, or

telephone (703)305–2662.

Title: Food Distribution Regulations

and Forms.

OMB Number: 0584–0293.

Expiration Date: 9/30/97.
Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules 12109

Type of Request: Revision of a

currently approved collection.

Abstract: Agreements, contracts, and

plans of operation. The rule proposes to:

(1) make agreements between

distributing agencies and recipient

agencies (food banks, soup kitchens,

charitable institutions, emergency

feeding organizations, etc.) to operate

food distribution programs permanent,

with amendments made as necessary,

instead of annual; (2) allow distributing

or subdistributing agencies to sign

contracts with storage facilities for the

storage of donated foods for a maximum

duration of five years, instead of the

present one year, with options for two

additional years; (3) allow recipient

agencies (charitable institutions,

summer camps, and nutrition programs

for the elderly) to sign contracts with

food service management companies for

one year, with four additional one-year

options, instead of one year with two

additional one-year options; and, (4)

make the plan submitted by State

agencies and Indian Tribal

Organizations to operate the Food

Distribution Program on Indian

Reservations (FDPIR) ongoing, instead

of annual, with amendments made as

necessary.

Submission of Inventory Reports. The

rule proposes to require semiannual

submission of the recently revised form

FCS–155, the Inventory Management

Register (the revised form has been

approved by OMB). This form is a report

of excessive commodity inventories—

i.e., inventories exceeding a six-month

supply—that helps to ensure that

commodities will be utilized before

going out of condition. Regulations

presently require monthly submission of

form FCS–155.

Collection of Commodity

Acceptability Information. The rule

proposes to exclude certain food

distribution program categories from

those for which distributing agencies

must submit commodity acceptability

information, because of the substantial

reduction in surplus commodities now

available to these programs. The

exempted program categories would be

charitable institutions, summer camps,

the Summer Food Service Program for

Children (SFSP), and the Emergency

Food Assistance Program (TEFAP).

Commodity acceptability information is

collected for other food distribution

programs to ensure that commodities

distributed are of the types and forms

most acceptable to program recipients.

Respondents: Respondents include

State agencies and Indian Tribal

Organizations administering food

distribution programs, and, in some

cases, recipient agencies responsible for

local administration and distribution of

donated commodities.

Estimated Number of Respondents:

State agencies and Indian Tribal

Organizations administering food

distribution programs number 171;

recipient agencies number

approximately 11,200.

Estimated Number of Responses per

Respondent: Frequency of response for

the inventory reports would be

semiannual, or 2 per year. Frequency of

response for agreements between

distributing and recipient agencies, the

State plans, and the distributing and

recipient agency contracts with storage

facilities and food service management

companies would vary, depending on

necessary amendments to the

agreements and plans, and the length of

the contracts. It is estimated that, on

average, both amendments and contracts

would be completed every four years, or

at a frequency of 0.25 per year.

Frequency of response for the

commodity acceptability reports would

continue to be annual, but distributing

agencies would not be required to

submit commodity acceptability

information for charitable institutions,

summer camps, SFSP, and TEFAP, thus

reducing the number of responses to be

submitted.

Estimate of Burden: The present and

proposed estimates of the reporting

burden for the information collections

affected by this rule are detailed below.

These estimates are based on

information obtained from distributing

and recipient agencies administering

food distribution programs through

various vehicles such as meetings and

the review of information submitted in

State plans. The information includes

the number of respondents, frequency of

responses per year for each respondent,

number of hours per response, and the

total burden hours for each information

collection.

Respndnts. Freq. Hrs./Resp. Total Hrs.

Distributing and Recipient Agency Agreement:

Present .................................................................................................................. 11,211 1 0.33 3,700

Proposed ............................................................................................................... 11,211 0.25 0.20 561

Distributing or Subdistributing Agency Contracts w/Storage Facilities:

Present .................................................................................................................. 250 1 0.33 83

Proposed ............................................................................................................... 250 0.25 0.33 21

Contracts w/Food Service Management Companies:

Present .................................................................................................................. 300 1 0.33 99

Proposed ............................................................................................................... 300 0.25 0.33 25

Inventory Reports (FCS–155):

Present .................................................................................................................. 80 12 1.75 1,680

Proposed ............................................................................................................... 80 2 0.25 40

Commodity Acceptability Reports:

Present .................................................................................................................. 466 1 50 23,300

Proposed ............................................................................................................... 252 1 50 12,600

FDPIR State Plan:

Present .................................................................................................................. 97 1 10 970

Proposed ............................................................................................................... 97 0.25 3 73

Estimated Total Annual Burden on

Respondents: The total annual burden

under OMB Control Number 0584–0293

would be reduced from 1,190,971 hours

to 1,174,459 hours: a difference of

16,512 hours.

Title: Federal-State Agreement, FCS–

74

OMB Number: 0584–0067

Expiration Date: 6/30/98

Type of Request: Revision of a

currently approved collection.

Abstract: The Federal-State

Agreement, form FCS–74, is used to

ensure that distributing agencies

administering child nutrition and food

distribution programs comply with

Federal regulations applicable to the

programs. This rule proposes to make
12110 Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules

permanent, instead of annual, the

agreement that distributing agencies

administering food distribution

programs (and not child nutrition

programs) sign with the Food and

Consumer Service (FCS). Amendments

would be made as necessary, at the

request of FCS.

Respondents: State agencies and

Indian Tribal Organizations

administering food distribution

programs.

Estimated Number of Respondents:

147 State agencies and Indian Tribal

Organizations would be affected.

Estimated Number of Responses per

Respondent: The agreements would be

permanent for the affected State

agencies, with amendments to the

agreement submitted as necessary. It is

estimated that such amendments would

be required, on average, every four

years. Thus, the annual number of

responses per respondent would be

0.25.

Estimate of Burden: The following

estimates are based on the anticipated

frequency of need for changes. For each

of the 147 affected State agencies and

Indian Tribal Organizations, the

agreement would take approximately

0.25 hours to complete, and would be

completed, on average, 0.25 times per

year. Thus, the annual reporting burden

for these agencies would be 9.2 hours.

Estimated Total Annual Burden on

Respondents: The total annual burden

under OMB Number 0584–0067 would

be reduced from 34,494 hours to 34,466

hours: a difference of 28 hours.

Executive Order 12988

This proposed 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

of the final rule. 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

The Child Nutrition and WIC

Reauthorization Act of 1989, Pub. L.

101–147, (hereinafter referred to as ‘‘the

Act’’), was enacted on November 10,

1989. Section 108 of the Act amended

what was then Section 19 of the

National School Lunch Act (NSLA), 42

U.S.C 1769a, to include a requirement

that the Secretary endeavor to reduce

the paperwork burden for State and

local educational agencies, schools, and

other agencies participating in nutrition

assistance programs. The Act required

that, in determining ways to reduce the

paperwork burden, the Secretary (1)

consult with State and local

administrators of nutrition assistance

programs; (2) convene at least one

meeting with the program

administrators; and (3) solicit

suggestions from the general public.

(Section 710 of Pub. L 104–193, the

Personal Responsibility and Work

Opportunity Reconciliation Act of 1996,

repealed Section 49 of the NSLA.)

Accordingly, on April 9, 1990, a

Notice was published in the Federal

Register (55 FR 13156) soliciting

comments regarding the reduction of the

paperwork burden associated with the

administration of the child nutrition

and food distribution programs. One

hundred and sixty-five comments

addressing issues associated with

paperwork reduction for food

distribution programs were received.

Comments were received from 105

schools, 49 State agencies, five food

processors, four professional

associations (including the American

Commodity Distribution Association

and the American School Food Service

Association), one Indian Tribal

Organization, and one consultant.

Following the receipt of comments, on

July 30, 1990, a Paperwork Reduction

Task Force (hereinafter referred to as the

‘‘Task Force’’), comprised of

representatives from two commodity

distribution associations, 13 school or

food distribution program

administrators, and two FCS Regional

Office directors, was convened to

review the comments received in

response to the Notice. The actions

taken to date by the Department in

response to Congress’ directive in

Section 108 of Pub. L. 101–147 are

discussed in detail below.

Five commenters recommended that

the amount of information a State is

required to submit to the Department

before a commodity complaint can be

investigated be reduced. In response to

these recommendations, through

consultation with FCS Regional Office

and State agency representatives, a list

of data that must be provided prior to

FCS taking any action regarding a

complaint was developed and made

available to all Regional Offices for

dissemination to State agencies. While

other information may subsequently be

requested, submission of all required

basic data at the time the complaint is

reported permits FCS to begin taking

appropriate action in a much more

timely manner.

FCS has also taken steps to simplify

the process of transmitting the data

needed to act on commodity complaints

by revising the Special Nutrition

Programs Integrated Information System

(SNPIIS) to allow FCS Regional Offices

to submit complaint data electronically.

An informational booklet containing

instructions as to how to input

complaint data into the system has been

disseminated to all FCS Regional

Offices.

In order to streamline the process of

reporting commodity complaints, FCS

has set up a telephone ‘‘hot line’’ for use

on a pilot basis. Under the pilot project,

selected distributing or recipient

agencies within certain States may

report commodity complaints to FCS

Headquarters directly, via a toll-free 800

number or facsimile machine. All FDPIR

State agencies, including all Indian

Tribal Organizations acting as State

agencies pursuant to 7 CFR 253.2(h),

may report commodity complaints to

FCS Headquarters directly via the hot

line also. While those agencies utilizing

the hot line must still provide certain

basic information before the problem

can be resolved, they have more

flexibility in the format used to report

the information than those agencies

reporting commodity complaints

through State and FCS Regional offices,

and receive a more immediate response

to their concerns. If the pilot project, the

initial phase of which concluded on

September 30, 1996, indicates that

direct reporting of commodity

complaints to the national office

provides better service to the recipients

utilizing USDA commodities, by

reducing the amount of time required to

resolve complaints, then access to the

hot line will be extended to all States.

Five commenters suggested that the

Department allow distributing agencies

to waive commodity losses of $100 or

less. Since this was already the

Department’s policy, the Department

has considered how to provide

clarification of the policy. In addition,

FCS has consulted with Regional Offices

to resolve various issues relating to

losses resulting from the improper

storage or distribution of commodities,

including the responsibility for

initiating claims, and the cost efficiency

of the claims process. This consultation

has resulted in the development of draft

guidance material which was

disseminated to FCS Regional Offices

for comment on April 15, 1994. The

guidance material establishes the

Department’s position on issues relative

to: (1) what entity is responsible for

pursuing the various types of claims; (2)

conditions under which storage

facilities can offset shortages with
Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules 12111

overages; (3) allowable uses of funds

derived from salvage and recycling; (4)

what funds should be deposited into the

distributing agency’s general salvage

account and the allowable uses of such

funds; (5) the handling of losses of

‘‘bonus’’ commodities; and (6) the

thresholds that have been established

for use in determining what entity has

the authority to make a claim

determination, and to compromise,

waive, or suspend claims. Several of the

changes discussed in the guidance

material have been implemented

through policy memoranda. However,

some changes can only be effectuated by

revising ‘‘Non-Audit Claims—Food

Distribution Program,’’ FCS Instruction

410–1, and/or through the rulemaking

process. The issue of increasing the

limit under which State agencies can

waive a claim is one that must be

addressed through the rulemaking

process for the Emergency Food

Assistance Program (TEFAP) and by

revision of the FCS instruction for all

other food distribution programs.

Twenty-one commenters suggested

that forms FCS–155 (Monthly Report of

Receipt and Distribution of Donated

Foods) and FCS–155A (Shipment of

Commodities by Delivery Order) be

eliminated, or that these inventory

reports be required less frequently. After

a review of the usefulness of the forms

in 1991 and 1992, FCS concluded that

it would not be feasible to eliminate

them, but that they could be modified

to reduce the paperwork burden for

State agencies. Accordingly, forms FCS–

155 and FCS–155A were modified by

removing some columns that collected

duplicate information.

With full implementation of the

Processed Commodities Inventory

Management System (PCIMS), FCS

decided to reexplore the usefulness of

forms FCS–155 and FCS–155A, and

initiated a pilot project in 1994 to

determine if information entered in

PCIMS would make the collection of

information in the reports redundant.

After identifying relevant information

that can be accessed through this

system, an alternate, less timeconsuming inventory reporting form

was developed for use by those State

agencies participating in the pilot

project. After evaluating the results of

the pilot project, this form—the revised

FCS–155—was further refined to collect

information on excessive commodity

inventories only, and not the detailed

information on receipt and distribution

of commodities currently reported.

Excessive commodity inventories are

defined in 7 CFR 250.14(f) as those that

exceed a six-month supply. The revised

FCS–155—renamed the Inventory

Management Register—was submitted

for approval to the Office of

Management and Budget (OMB), and

was approved by OMB on September

13, 1995, as part of OMB #0584–0293.

Also resulting from the pilot project,

submittal of form FCS–155A, which

served to verify receipt of shipments of

commodity delivery orders, was found

to be unnecessary. Distributing agencies

report receipts for foods delivered to the

Kansas City Commodity Office, utilizing

form KC–269A, the Distributing Agency

Consignee Receipt, as directed in FCS

Instruction 709–5, Shipment and

Receipt of Foods. Thus, distributing

agencies administering child nutrition

and food distribution programs—except

for FDPIR and the Commodity

Supplemental Food Program (CSFP)—

now submit the revised FCS–155, the

Inventory Management Register, to FCS

regional offices, and no longer submit

form FCS–155A. State agencies and

Indian Tribal Organizations

administering FDPIR and CSFP submit

more detailed information on program

participation, inventories of donated

foods, and distribution of donated foods

to households, on a monthly basis,

utilizing forms FCS–152 (for FDPIR) and

FCS–153 (for CSFP). Unlike other

programs, the information reported on

these inventory forms is not currently

available through automated systems.

Thus, State agencies and Indian Tribal

Organizations must continue to submit

forms FCS–152 and FCS–153 for FDPIR

and CSFP, respectively. As with other

programs, however, the submittal of

form FCS–155A to verify the shipment

of commodities by delivery order is no

longer required. This form was

discontinued in October 1995 for

FDPIR, and in November 1995 for CSFP.

Twenty-eight commenters to the 1990

Notice suggested that commodity

acceptability reports be submitted

annually, rather than semi-annually, as

was then required by law. Subsequent to

the publication of the Notice, however,

Section 1773(d) of Pub. L. 101–624, the

Food, Agriculture, Conservation, and

Trade Act of 1990, subsequently

amended Section 3(f)(2) of the

Commodity Distribution Reform Act

and WIC Amendments of 1987 (Pub. L.

100–237; 7 U.S.C. 612c note) to require

the collection of commodity

acceptability information annually. In

order to further reduce the paperwork

burden, however, we are proposing to

amend regulations to exempt certain

program categories from the annual

reporting requirement, while still

conforming to the mandate of Pub. L.

100–237. This proposal is described

below, in the section of this preamble

entitled ‘‘Food Distribution Program

Regulations (7 CFR Part 250).’’

Additionally, a revision of form FCS–

663, Commodity Acceptability Report,

has been developed with input from

FCS Regional Offices and State agencies.

This revised form will substantially

decrease the paperwork burden for

distributing and recipient agencies in

reporting commodity acceptability

information, while still providing

valuable information on the commodity

preferences of program recipients. The

revised form FCS–663 was approved by

OMB on September 13, 1995, as part of

OMB #0584–0293.

Five commenters recommended that

the State plan describing the operation

and administration of TEFAP, presently

submitted annually, be considered

permanent, with amendments submitted

as specific changes in the

administration of the program are made.

However, on August 22, 1996, President

Clinton signed into law the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104–

193, which, in Section 871(b) amended

Section 202A of the Emergency Food

Assistance Act of 1983, Pub. L. 98–8 (7

U.S.C. 7503(a)), to require State agencies

to submit a TEFAP State plan every four

years, with amendments submitted as

necessary, for the Department’s

approval. The four-year requirement for

submission of the TEFAP State Plan,

instead of annual submission, became

effective on August 22, 1996. The

Department will address these, as well

as other changes in the administration

of TEFAP resulting from passage of Pub.

L. 104–193, through a separate

rulemaking.

Four commenters recommended that

the distributing agency evaluation of the

cost efficiency of storage facilities be

discontinued, or required less

frequently. The requirement that

distributing agencies periodically

evaluate the cost-effectiveness of their

current storage systems (7 CFR 250.14)

will be addressed in a separate rule.

Comments relative to commodity

processing have been addressed in a

final rule which was published in the

Federal Register on December 7, 1994

(59 FR 62973).

In addition to the policy and

regulatory changes discussed above, the

Department is proposing to amend

several regulatory requirements

contained in Parts 250, 251, and 253,

based on comments received in

response to the Notice. The proposed

regulatory amendments contained in

this rule are discussed in detail below.
12112 Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules

Food Distribution Program Regulations

(7 CFR Part 250)

Duration Requirements for Agreements

and Contracts

Currently, Section 250.12(a) of the

regulations requires that distributing

agencies enter into agreements with the

Department that are effective for only

one year. In addition, Section 250.12(b)

limits agreements between State and

recipient entities to only one year, with

the possibility of two one-year

extensions. Sections 250.12(b) and

250.14(d) limit the length of contracts of

distributing and subdistributing

agencies with storage facilities to only

one year, with the possibility of two

one-year extensions. These regulations

also restrict the length of contracts

between distributing agencies and

carriers to the same duration limits.

Agreements between State agencies and

subdistributing or recipient agencies

must establish (1) the conditions under

which donated foods will be made

available, and (2) responsibility for loss,

damage, or improper use of donated

foods. Agreements of State or

subdistributing agencies with storage

facilities must contain provisions

designed to ensure that storage facilities

properly identify, store, and account for

donated commodities.

Numerous commenters suggested that

the one-year limit on agreements be

removed. Thirty-one commenters

suggested that agreements between State

and recipient agencies be made

permanent with provision for

amendments as necessary. Eleven

commenters also suggested that the

annual agreement between the

Department and State agencies be made

permanent. Eighteen commenters also

recommended extending the duration of

contracts between distributing and

subdistributing agencies and storage

facilities for the storage of donated

foods.

The Department agrees that requiring

Federal-State agreements to be

completed anew each year is

burdensome and unnecessary.

Accordingly, this rule proposes to

amend § 250.12(a) to provide for

permanent agreements between the

Department and State agencies, with

amendments to be made at the request

of FCS. In addition, distributing

agencies would be required to notify

FCS of the information as the agreement

changes. The Department’s authority

under §§ 3015.124(a) and 3016.43 to

terminate agreements for cause would

not be affected by this proposed change.

Furthermore, the availability of funds

and commodities beyond those amounts

available at the time the ‘‘permanent’’

agreements are signed is dependent

upon future Congressional

appropriations and FCS’s annual

decision to continue the agreement.

With regard to annual agreements

between distributing and recipient

agencies, the Department recognizes the

need for a relaxation of the paperwork

burden, and proposes to amend

§ 250.12(b) to provide for permanent

agreements between distributing

agencies and recipient agencies, with

amendments to be made as necessary.

Distributing agencies must ensure that

recipient agencies provide, on a timely

basis, by amendment to the agreement,

any information on changes in program

administration, including, but not

limited to, changes in site locations,

number of meals or needy persons to be

served, or changes resulting from

amendments to Federal regulatory

requirements and policy. Because of the

nature of, and volatility in costs of,

services provided by carriers, and by

subdistributing agencies that are not

recipient agencies (i.e., do not distribute

donated foods to eligible recipients or

utilize foods to provide services to those

eligible), the Department believes that

agreements between distributing

agencies and these entities should

remain one year, with an option for two

one-year extensions. The proposed

restructuring of § 250.12 to detail the

different duration requirements for

agreements between distributing

agencies and the various types of local

entities is described below.

The Department agrees that contracts

of longer duration between State

agencies and storage facilities would

reduce the paperwork burden. Such

contracts would also be attractive to

storage facilities, as they would not have

to bid so frequently for a new contract.

Furthermore, longer contracts would

provide more time to amortize expenses

incurred in ensuring a high quality of

service. Therefore, to provide

distributing agencies with maximum

flexibility in contracting for storage

facilities, the Department proposes to

amend § 250.14(d) to extend the

contract period to be effective for no

longer than five years, including option

years. Thus, distributing agencies may

choose to negotiate contracts for a fiveyear, or three-year, period, or for one

year with option years not exceeding

four, etc. This flexibility will enable

State agencies to enter into contracts of

whatever duration in their estimation

will yield the best combination of

quality service and cost, subject only to

the five-year maximum. This rule also

proposes to make some technical

changes in paragraphs (d) and (e) of

§ 250.14 by revising some incorrect

references.

Under current regulations, food

service management companies may be

employed to conduct the food service

operations of charitable institutions,

nonprofit summer camps for children,

nutrition programs for the elderly,

schools, nonresidential child care

institutions, and service institutions

receiving donated foods. The duration

of contracts between these companies

and charitable institutions, nonprofit

summer camps for children, and

nutrition programs for the elderly is

limited, in § 250.12(c), to one year, with

an option for two additional one-year

periods. Section 210.16(d) sets the

duration of contracts between school

food authorities, which administer

school nutrition programs, and food

service management companies at one

year, with an option for four additional

one-year periods. Although the

commenters to the 1990 Notice did not

address agreements with food service

management companies, this rule

proposes, in the interest of reducing the

paperwork burden, to revise § 250.12(c)

to make contracts between these

companies and charitable institutions,

nonprofit summer camps for children,

and nutrition programs for the elderly,

of the same maximum duration as those

between food service management

companies and school food authorities.

As part of the proposed revision of this

section, paragraph (2), addressing the

length of time that records shall remain

available, would be removed, as

recordkeeping requirements will be

established for all entities contracting

with distributing, subdistributing, or

recipient agencies in § 250.16.

This rule proposes to restructure

§ 250.12 so as to more clearly state the

duration requirements for all food

distribution program agreements, as

described above. The restructuring

entails the revision of § 250.12(b) to

describe the terms and conditions of

distributing agency agreements with

recipient agencies, subdistributing

agencies, carriers, and other entities,

and the creation of a new § 250.12(c) to

address the duration of such

agreements. §§ 250.12(c), 250.12(d), and

250.12(e) would be redesignated as

§§ 250.12(d), 250.12(e), and 250.12(f),

respectively. In conformance with the

restructuring of § 250.12, this rule

proposes to delete reference to

§ 250.12(c) and insert instead reference

to § 250.12(d) in the following §§ 250.3,

in the definition of ‘‘food service

management company’’;

250.19(b)(1)(iv); 250.40(a)(4);

250.41(a)(3); 250.42(a); 250.48(a)(1);

and, 250.49(a). Additionally, this rule
Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules 12113

proposes to make a technical change in

the redesignated § 250.12(e), which

addresses storage facility contracts, by

replacing the incorrect reference to

§ 250.14(c) (‘‘Reviews’’) with a reference

to § 250.14(d) (‘‘Contracts’’).

Collection and Submission of

Commodity Acceptability Information

7 CFR 250.13(k)(1) currently requires

that State agencies obtain information

from recipient agencies which reflects:

(1) The types and forms of donated

foods that are most useful to recipients;

(2) commodity specification

recommendations; and (3) requests for

options regarding package sizes and

forms of commodities. Paragraph (k)(2)

of this Section lists the categories of

recipient agencies from which State

agencies are to obtain this information;

paragraph (k)(3) stipulates that this

information be submitted to FCS on an

annual basis, utilizing form FCS–663.

Historically, USDA has donated a

steady, dependable supply of foods

acquired under the Commodity Credit

Corporation’s price-support operations

to a variety of outlets, including

charitable institutions and nonprofit

summer camps for children. These

donated foods have included cereal and

grain products such as flour, cornmeal,

rice, rolled wheat and oats, bulgur,

macaroni, and spaghetti; peanut and oil

products, such as roasted peanuts,

peanut butter, peanut granules, soybean

oil, and soybean shortening; and dairy

products. However, due to the

significant amounts of these foods that

were distributed to recipient agencies in

the past, changes in price-support

legislation, and changes in agricultural

market conditions, the inventories of

available donated foods have been

greatly reduced. At the present time,

Federal inventories of surplus

commodities are insufficient to supply

food distribution programs on a regular

basis.

While donated foods may also become

available to charitable institutions and

nonprofit summer camps for children

through surplus-removal actions, their

availability cannot be assured, and the

types of commodities available can be

expected to vary significantly over time.

Because of the variety in the types

and forms of donated foods previously

available on an ongoing basis to

charitable institutions and nonprofit

summer camps for children, the

Department applied to these institutions

the regulatory requirement for annual

collection and reporting of commodity

acceptability information. However,

since surplus commodities are not

currently available to these institutions

on a regular basis, the Department has

determined that collection of

commodity acceptability information

from them no longer serves a useful

purpose.

For the same reasons, surplus

commodities are also no longer

available in TEFAP on a regular basis.

Although, since 1989, commodities

have been purchased, under authority of

the Emergency Food Assistance Act of

1983 (Pub. L. 98–8; 7 U.S.C. 7501–16),

to supplement the distribution of the

dwindling surplus foods to needy

households, the amount of funds

appropriated for commodity purchases

in TEFAP has been greatly reduced in

recent years. Since the foods from

which States may select for distribution

to TEFAP households are the same as

those available for distribution to

eligible households in CSFP or FDPIR,

the Department believes that it is not

necessary to require State agencies to

submit separate commodity

acceptability reports for TEFAP.

USDA regulations (7 CFR 250.13(k))

also presently require that commodity

acceptability information for SFSP be

submitted. However, because the target

group is the same as that for the

National School Lunch and School

Breakfast Programs (which are included

in the legislative requirement), and

because the donated foods provided are

the same, or similar, to donated foods

provided in those programs, the

Department considers the collection and

submission of commodity acceptability

information for recipient agencies

participating in SFSP to be redundant.

The Commodity Distribution Reform

Act and WIC Amendments of 1987 (Pub.

L. 100–237; 7 U.S.C. 612c note) provides

the basis for the Department’s

regulations requiring the collection of

commodity acceptability information

from recipient agencies. Section

3(a)(1)(B) of Pub. L. 100–237 provides

that this data must be utilized by the

Department in determining the types

and forms of foods to be purchased for

certain food distribution programs. The

law does not, however, specifically

include SFSP or nonprofit summer

camps for children among those

recipient agencies from which such

information must be obtained.

Additionally, the law requires the

collection and use of commodity

acceptability information only to the

extent practicable for TEFAP, and for

the donation of foods to charitable

institutions. Therefore, as part of the

Department’s effort to reduce the

paperwork burden, and for the reasons

discussed above, this rule proposes to

revise § 250.13(k)(2) to exclude SFSP,

summer camp, TEFAP, and charitable

institution recipient agencies from those

for which distributing agencies are

required to submit commodity

acceptability information. Such

distributing agencies may still choose to

collect and submit to FCS information

on commodity acceptability from these

categories of recipient agencies, and all

such submissions would be carefully

reviewed by FCS.

In conformance with the above

proposals, this rule also proposes to

amend § 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 to

clarify that distributing agencies must

submit commodity acceptability reports

(for those programs for which reports

would be required, as stipulated in

§ 250.13(k)(2)) to FCS Regional Offices

by April 30th each year. Additionally,

this rule proposes to make a technical

change to § 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, which mandates the annual

collection of commodity acceptability

information. This statutory change was

addressed in a final rule published in

the Federal Register on July 22, 1993

(58 CFR 39113).

Submission of Inventory Reports

As previously described in this

Preamble, most distributing agencies

report excessive inventories of donated

foods on the revised FCS–155, the

Inventory Management Register, while

distributing agencies administering

FDPIR and CSFP use the more detailed

inventory reports, forms FCS–152

(FDPIR) and FCS–153 (CSFP), to submit

data on program participation,

commodity distribution to households,

and inventory levels. This rule proposes

to revise the language in § 250.17(a) to

accurately describe the reporting

function of FCS–155, which now

requires reporting of excessive

inventories only, and to require

semiannual submission of this form,

instead of monthly submissions, unless

FCS determines that (a) more frequent

reporting is necessary to maintain

program accountability, or (b) less

frequent reporting is sufficient to meet

program needs. Reference would

continue to be made to the submission

of the FCS–155, or ‘‘other format

approved by FCS’’—the other currently

approved formats being, of course,

forms FCS–152 and FCS–153, utilized

in FDPIR and CSFP, respectively. Lastly,

we propose to delete reference to a list

of individual food orders received for

each food item delivered (the function
12114 Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules

of the FCS–155A, which has been found

to be unnecessary, as discussed above).

Monitoring Requirements for Charitable

Institutions and Summer Camps

7 CFR 250.19(b) requires State

agencies to establish review procedures

to ensure compliance with Federal

regulations addressing household

eligibility, food ordering and storage,

inventory controls, reporting and

recordkeeping requirements, and civil

rights provisions. Section 250.19(b)(1)(i)

presently requires State agencies to

conduct on-site reviews of each

participating charitable institution,

nonprofit summer camp for children,

and nutrition program for the elderly at

least once every four years, with at least

25 percent of the total number of such

institutions reviewed each year. Section

250.19(b)(1)(iv) requires biennial

reviews of all food service management

companies under contract with

recipient agencies that have agreements

with distributing agencies. Because of

the reduced availability of USDA

commodities for charitable institutions

and nonprofit summer camps for

children, as discussed in detail above,

the Department believes that the

requirements governing monitoring

reviews for these recipient agencies, as

well as the food service management

companies under contract with them,

are excessive. Thus, the Department

proposes in this rule to revise

§ 250.19(b)(1)(i) to require that State

agencies perform 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.

State agencies are encouraged to

conduct more frequent reviews as

resources and work schedules permit.

Section 250.19(b)(1)(iv) is proposed to

be revised to note the exception of food

service management companies under

contract with charitable institutions and

nonprofit summer camps for children

from the biennial review requirement

for food service management companies

under contract with other types of

recipient agencies.

FCS Instruction 113–3, ‘‘Civil Rights

Compliance and Enforcement—Food

Distribution Programs,’’ presently

includes an on-site review requirement

of recipient agencies every five years to

ensure compliance with civil rights

regulations. In accordance with the

above proposed change in on-site

review requirements for charitable

institutions and nonprofit summer

camps for children, this provision of the

instruction would be removed. The

revised instruction would require that

on-site reviews to ensure compliance

with civil rights provisions be

conducted under conditions, and at the

frequency, established by Federal

regulations for the various types of

recipient agencies. While the proposed

rule relaxes on-site review

requirements, distributing,

subdistributing, and recipient agencies

would be required to continue to

comply with all other provisions in

Federal regulations and FCS Instruction

113–3, including the collection of

racial/ethnic participation data, to

ensure that discrimination because of

race, color, national origin, age, sex, or

handicap does not occur in the

operation of food distribution programs.

This rule also proposes to restructure

§ 250.19(b)(1) to address in separate

subparagraphs nutrition programs for

the elderly, on the one hand, and

charitable institutions and nonprofit

summer camps for children, on the

other, because of the different

monitoring requirements that would

result from adoption of the proposal

described above. In addition, this rule

proposes to make a technical change in

§ 250.19(b)(1)(i) by deleting the

incorrect reference to § 250.14(a)

(‘‘Standards for Warehousing and

Distribution Systems’’) and inserting

instead reference to § 250.14(b)

(‘‘Standards for Storage Facilities’’).

The Emergency Food Assistance

Program (7 CFR Part 251)

Duration Requirements for Agreements

with Distributing and Recipient

Agencies

Section 251.2(c) of the regulations

requires that distributing agencies enter

into an agreement with the Department

for the receipt of TEFAP foods and

Federal funds for administrative costs.

In addition to entering into agreements

with the Department, distributing

agencies are also required to enter into

agreements with eligible emergency

feeding organizations (EFOs). As stated

in § 251.4(a), Part 250 applies to the

administration of TEFAP, to the extent

that it is not inconsistent with Part 251.

While the duration requirements for

these types of agreements are not

stipulated under this Part, 7 CFR

250.12(b) limits the length of such

agreements to one year. The provisions

contained in § 251.2(c) also require that

distributing agencies enter into

agreements with EFOs that receive

Federal funds and that such agreements

be limited to one year, with an option

for renewal for two one-year periods.

As discussed in detail above,

commenters recommended that FederalState agreements be made ongoing in

order to reduce the paperwork burden.

The Department concurs with this

recommendation, and proposes to

amend § 251.2(c) to make TEFAP

Federal-State agreements permanent,

with amendments to be made at the

request of FCS, and to make agreements

between distributing agencies and EFOs

permanent, with amendments to be

made as necessary. In addition,

distributing agencies must ensure that

EFOs provide, on a timely basis, by

amendment to the agreement, any

changed information, including any

changes resulting from amendments to

Federal regulations or policy. Such

information must include, but not be

limited to, changes in the number of

distribution sites and their locations,

number of needy persons to be served,

frequency of distributions, household

eligibility criteria to be used in

certifying households, and allocation of

TEFAP administrative funds.

Submission of Inventory Reports

This rule proposes to amend

§ 251.10(d)(2) to direct State agencies to

adhere to the inventory reporting

requirements stipulated in § 250.17(a),

since State agencies administering

TEFAP will also utilize the revised form

FCS–155, the Inventory Management

Register, to report excessive commodity

inventories. Household participation

data will also continue to be reported

utilizing this form, at the same

frequency that inventory information is

reported. This rule proposes to include

this requirement in the final sentence of

§ 251.10(d)(2), and to delete

§ 251.10(d)(3), which presently

addresses this requirement, for both

State agencies and EFOs. It will be up

to each State agency to determine how

best to collect the necessary information

from the EFOs. Additionally, this rule

proposes to amend § 251.10(a)(1) to

remove reference to the obsolete

§ 250.6(r), and to refer to § 250.16

instead.

Food Distribution Program on Indian

Reservations (7 CFR Part 253)

Plan of Operation

Section 253.5(a) of the regulations

requires that the State agency (including

Indian Tribal Organizations acting as

the State agency) responsible for the
Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules 12115

administration of the Food Distribution

Program on Indian Reservations submit

a plan of operation each year to FCS for

approval. The provisions in this section

require that such plans contain a

description of the storage and

distribution facilities to be utilized, the

method of assuring that only eligible

households receive benefits, and other

information relative to the

administration of the program.

Although the commenters did not

recommend a change to the requirement

that State agencies submit a plan of

operation to FCS each year, the

Department believes that, because the

plan’s contents do not change much

from year to year, the plan should be

permanent, with amendments added as

changes in program administration are

made. Thus, this rule proposes to

amend § 253.5(a) to make the plan of

operation permanent, with amendments

to be added as: (a) changes in State

agency administration of the program,

as described in the plan, are made; or,

(b) at the request of FCS, e.g., in

response to changes in State agency

plan requirements or guidance. The

Department’s authority under

§§ 3015.124(a) and 3016.43 to terminate

agreements for cause would not be

affected by this proposed change.

Application for Federal Assistance

State agencies and Indian Tribal

Organizations must continue to submit

an application to receive Federal

administrative funds on an annual basis,

as required by § 253.9(c). However, this

rule proposes to amend this section of

the regulations to reflect the fact that

this application is now made through

completion of standard form SF–424,

which is mandated by 7 CFR Part 3016

(‘‘Uniform Administrative Requirements

for Grants and Cooperative Agreements

to State and Local Governments’’),

instead of form AD–623. This rule also

proposes to delete the statement in this

section encouraging Indian Tribal

Organizations which act as State

agencies to first submit applications

through the State clearinghouse, as

agencies of State government are

required to do under 7 CFR Part 3015

(Uniform Federal Assistance

Regulations), Subpart V. The

Department does not believe that this

statement is in the spirit of the

Presidential directive of April 29, 1994

(‘‘Government-to-Government Relations

with Native American Tribal

Governments,’’ 59 FR 22951, May 4,

1994), which encourages agencies of the

Federal government to work directly

with Native American Tribal

Governments.

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 proposed to be 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.

§§ 250.3, 250.19, 250.40, 250.41, 250.42,

250.48, 250.49 [Amended]

2. In § 250.3, in the definition of Food

service management company, and in

§§ 250.19(b)(1)(iv), 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.

3. In Section 250.12:

a. The third and fourth sentences of

paragraph (a) are revised;

b. The concluding text of paragraph

(b) 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 to be made at the request

of FCS. 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 to be

made at the request of FCS.

* * * * *

(c) Duration of distributing agency

agreements.—(1) Recipient agencies.

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 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. In

instances 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
12116 Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules

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 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

§ 250.14(d).

* * * * *

4. 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 ‘‘and’’ before

‘‘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.

5. 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. * * *

* * * * *

6. 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.

* * * * *

7. 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

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]

8. 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:
Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Proposed Rules 12117

§ 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 to be made at the request

of FCS. 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 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: March 10, 1997.

William E. Ludwig,

Administrator.

[FR Doc. 97–6427 Filed 3–13–97; 8:45 am]

BILLING CODE 3410–30–U

Food Safety and Inspection Service

9 CFR Part 318

[Docket No. 95–052P]

RIN 0583–AC02

Use of Sorbitol in Cooked Roast Beef

Products

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Food Safety and

Inspection Service (FSIS) is proposing

to amend the Federal meat inspection

regulations to add cooked roast beef

products to the list of products in which

sorbitol is permitted. FSIS proposes this

action in response to a petition

requesting that FSIS allow the use of

sorbitol, both to sweeten and to reduce

charring in cooked roast beef products,

at the level of up to 2 percent of the

product formulation. The sorbitol would

be added to a solution of ingredients

that are pumped into the beef prior to

cooking.

DATES: Comments must be received on

or before May 13, 1997.

ADDRESSES: Send an original and two

copies of written comments to: FSIS

Docket Clerk, Docket ι95–052P, Room

3806, South Agriculture Building, 1400

Independence Avenue, SW.,

Washington, DC 20250–3700. Reference

material cited in this document and any

comments received in response to this

proposal will be available for public

inspection in the FSIS Docket Room

from 8:30 a.m. to 1:00 p.m., and from

2:00 p.m. to 4:30 p.m., Monday through

Friday.

FOR FURTHER INFORMATION CONTACT:

Charles R. Edwards, Director, Product

Assessment Division, Regulatory

Programs, (202) 418–8900.

SUPPLEMENTARY INFORMATION:

FSIS was petitioned to allow the use

of sorbitol in cooked roast beef products

in the amount currently approved for

use in other meat and meat food

products. The petitioner requested that

FSIS amend § 318.7(c)(4) of the Federal

meat inspection regulations to allow the

use of sorbitol both to sweeten and to

reduce charring in cooked roast beef

products in an amount not to exceed

two percent of the product formulation,

excluding the formula weight of water

or ice. The sorbitol would be added to

a solution of ingredients that are

pumped into the beef prior to cooking.

Sorbitol is a common sugar alcohol; it

can be found in apples, pears, and other

foods. About half as sweet as sucrose

(i.e., sugar), it is often used as a