[Federal Register: August 28, 2003 (Volume 68, Number 167)]
[Rules and Regulations]
[Page 51675-51677]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au03-1]
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Rules and Regulations
Federal Register
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[[Page 51675]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 247
RIN 0584-AD33
Commodity Supplemental Food Program--Allocation of Administrative
Funds
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends Commodity Supplemental Food Program
regulations to implement nondiscretionary provisions of the Farm
Security and Rural Investment Act of 2002 affecting the allocation of
administrative funds to State agencies. In accordance with that Act,
using whatever funds are appropriated for the fiscal year to support
the program, and any program funds remaining available from the
preceding fiscal year, this rule requires the allocation of an
administrative grant per assigned caseload slot, adjusted each year for
inflation, to pay State and local agency administrative costs. This
method of allocation provides States a specific amount of
administrative funds to support each caseload slot assigned.
DATES: This rule will become effective on September 29, 2003. The
statutory formula for determining the grant per assigned caseload slot
for fiscal year 2003 will apply for the entire fiscal year. The formula
for fiscal years 2004 through 2007 differs from that for 2003 and will
apply to each of those years respectively.
FOR FURTHER INFORMATION CONTACT: Lillie F. Ragan, Assistant Branch
Chief, Household Programs Branch, Food Distribution Division, Food and
Nutrition Service, U.S. Department of Agriculture, Room 500, 3101 Park
Center Drive, Alexandria, Virginia 22302-1594, or telephone (703) 305-
2662. Inquiries may also be sent via Internet to
Lillie.Ragan@FNS.USDA.GOV.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be significant and was
reviewed by the Office of Management and Budget under Executive Order
12866.
Public Law 104-4
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, the
Food and Nutrition Service (FNS) generally must prepare a written
statement, including a cost-benefit analysis, for proposed and final
rules with ``Federal mandates'' that may result in expenditures to
State, local, or tribal governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires FNS to identify and consider a reasonable number of regulatory
alternatives and adopt the least costly, more cost-effective or least
burdensome alternative that achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, and tribal
governments or the private sector of $100 million or more in any one
year. Thus, this rule is not subject to the requirements of sections
202 and 205 of the UMRA.
Executive Order 12372
The program addressed in this action is listed in the Catalog of
Federal Domestic Assistance under 10.565, and is 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).
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agency's considerations in terms of the three categories
called for under section (6)(b)(2)(B) of Executive Order 13132. The FNS
has considered the impact of this rule on State and local governments
and has determined that this rule does not have Federalism
implications. This rule does not impose substantial or direct
compliance costs on State and local governments. Therefore, under
section 6(b) of the Executive Order, a federalism summary impact
statement is not required.
Regulatory Impact Analysis
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). The regulatory
provisions contained in this rule will benefit State and local agencies
by providing a stable level of funding to support administration of the
program. Under the Farm Security and Rural Investment Act of 2002,
State agencies will receive a grant per assigned caseload slot to pay
for administrative program costs. The per caseload slot grant will be
adjusted for inflation each year. Funding to support the program,
including administrative grants, is discretionary. Therefore, an
increase in program funds is not mandatory. However, if additional
funds are not appropriated, the number of caseload slots allocated to
each State will be reduced.
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. The 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.
Prior to any judicial action challenging the application of Commodity
Supplemental Food Program (CSFP) rules, exhaustion of administrative
remedies, as set out in 7 CFR 247.33, would be required.
[[Page 51676]]
Paperwork Reduction Act
This final rule reflects no new information collection requirements
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). The
existing reporting and recordkeeping requirements for 7 CFR part 247,
which were approved under OMB control number 0584-0293, will not change
as a result of this rule.
Government Paperwork Elimination Act
FNS is committed to compliance with the Government Paperwork
Elimination Act (Pub. L. 105-277), which requires Government agencies
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
This action is published as a final rule without prior notice or
public comment under authority of 5 U.S.C. 553(b)(3)(B). This final
rule implements section 4201, a non-discretionary statutory provision
of the Farm Security and Rural Investment Act of 2002, Pub. L. 107-171,
by mandating the allocation of an administrative grant per assigned
caseload slot, adjusted each year for inflation, to pay State and local
agencies' administrative costs of the CSFP. Thus, the Department has
determined in accordance with 5 U.S.C. 553(b)(3)(B) that notice of
proposed rulemaking and opportunity for public comments are
impracticable and contrary to the public interest. The provisions will
become effective 30 days after publication in the Federal Register.
Background
Through the CSFP, the Department of Agriculture's FNS provides
commodities and administrative funds to participating State agencies,
which, through local agencies, distribute a package of foods each month
to participating pregnant, postpartum, and breastfeeding women,
infants, children up to age 6, and seniors (age 60 or older). FNS
utilizes funds provided in the CSFP appropriation and funds carried
over from the previous year to assign caseload and allocate
administrative funds to State agencies each year. State and local
agencies serve participants in accordance with their assigned caseload
limits, and utilize administrative funds to meet program costs, which
may include costs of storage and distribution of foods, determination
of eligibility, provision of nutrition education and other costs.
The Farm Security and Rural Investment Act of 2002 (2002 Act), Pub.
L. 107-171, which was enacted on May 13, 2002, amended the means by
which the Department provides administrative funds to State agencies.
Section 4201(b) of the 2002 Act amended section 5(a) of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c note) to provide
State agencies with a grant per assigned caseload slot to pay for
administrative program costs. It also deleted the limitation of total
administrative funding for the program, which before the deletion was
limited to 20 percent of the program appropriation and of food funds
carried over from the previous year.
Prior to the deletion of the 20 percent limit, as discussed above,
State agencies received a portion of the total administrative funding
equal to their share of total assigned caseload.
Thus, a State agency with a caseload assignment that was 10 percent
of the total for all State agencies would have received funds totaling
10 percent of the total funds allocated. However, since the cost of
food per caseload slot and related factors fluctuate from year to year
while the 80/20 split between food funds and administrative funds
remained constant, the actual amount of administrative funding
available for each assigned caseload slot could change from year to
year, having nothing to do with the State and local government price
index.
In order to remedy the situation described above, Congress allotted
specific amounts for CSFP administrative support in excess of the 20
percent limit, in the program appropriations legislation for each of
fiscal years (FY) 2001 and 2002. In FY 2001, Congress allotted
$20,781,000 to meet administrative costs, and in FY 2002 allotted
$20,820,000. These administrative allocations allowed FNS to provide
administrative support, on a per-caseload slot basis, of $50.89 in FY
2001 and $50.25 in FY 2002. This provided considerably more
administrative funding for each caseload slot assigned than in previous
years. However, administrative funding per slot continued to fluctuate
from year to year.
Section 4201(b)(2) of the 2002 Act stipulates the per-caseload slot
amounts State agencies are to receive in FY 2003, and for subsequent
fiscal years. For FY 2003, the grant per assigned caseload slot is
$51.49, an amount equal to the per-caseload slot amount provided in FY
2001 ($50.89), adjusted by the percentage change between:
(1) The value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30, 2001; and
(2) The value of that index for the 12-month period ending June 30,
2002.
For subsequent fiscal years, the amount of the grant per assigned
caseload slot is equal to the amount of the grant per assigned caseload
slot for the preceding fiscal year, adjusted by the percentage change
between:
(1) The value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30 of the second
preceding fiscal year; and
(2) The value of that index for the 12-month period ending June 30
of the preceding fiscal year.
FNS issued two memoranda to State Directors of CSFP which explained
and implemented these changes to the means of allocating administrative
funds to State agencies participating in CSFP. The first memorandum,
dated July 24, 2002, explained generally the statutory change resulting
in the method for calculating CSFP administrative funding based on the
per caseload slot formula. The second memorandum, dated September 16,
2002, specifically calculated the legislatively mandated administrative
grant assigned per caseload slot for FY 2003.
Regulatory provisions pertaining to the allocation of
administrative funds to State agencies administering CSFP are described
under 7 CFR 247.10(b). This rule revises subsections (b)(1), (b)(2),
and (b)(3) of Sec. 247.10 to reflect the new method of allocation of
administrative funds. Subsection (b)(1) describes the allocation to the
States of an administrative grant per assigned caseload slot, adjusted
each year for inflation. Subsection (b)(2) describes the means of
determining the amount of the per-caseload slot grant for FY 2003, and
subsection (b)(3) codifies the means for determining the amounts for
subsequent fiscal years, as set forth in the 2002 Act.
In accordance with the 2002 Act, the current language in
subsections (b)(1), (b)(2), and (b)(3) which limits administrative
funding to a percentage of total program funds, and describing the
portion of the total that each State receives, has been deleted. The
current language describing the separate allocation of administrative
funds to support the distribution of surplus commodities provided to
CSFP was rendered ineffective by legislation enacted previous to the
enactment of the 2002 Act, and has also been deleted.
List of Subjects in 7 CFR Part 247
Agricultural commodities, Food assistance programs, Infants and
[[Page 51677]]
children, Maternal and child health, Public assistance programs,
nutrition, women, aged.
0
Accordingly, 7 CFR part 247 is amended as follows:
PART 247--COMMODITY SUPPLEMENTAL FOOD PROGRAM
0
1. The authority citation for part 247 is revised to read as follows:
Authority: Sec. 5, Pub. L. 93-86, 87 Stat. 249, as added by Sec.
1304(b)(2), Pub. L. 95-113, 91 Stat. 980 (7 U.S.C. 612c note); sec.
1335, Pub. L. 97-98, 95 Stat. 1293 (7 U.S.C. 612c note); sec. 209,
Pub. L. 98-8, 97 Stat. 35 (7 U.S.C. 612c note); sec. 2(8), Pub. L.
98-92, 97 Stat. 611 (7 U.S.C. 612c note); sec. 1562, Pub. L. 99-198,
99 Stat. 1590 (7 U.S.C. 612c note); sec. 101(k), Pub. L. 100-202;
sec. 1771(a), Pub. L 101-624, 101 Stat. 3806 (7 U.S.C. 612c note);
sec. 402(a), Pub. L. 104-127, 110 Stat. 1028 (7 U.S.C. 612c note),
Sec. 4201(b), Pub. L. 107-171.
0
2. In Sec. 247.10, paragraphs (b)(1), (b)(2), and (b)(3) are revised
to read as follows:
Sec. 247.10 Caseload assignment and administrative funding.
* * * * *
(b) Administrative Funding. * * *
(1) FNS allocates to each State agency an administrative grant per
assigned caseload slot, adjusted each year for inflation.
(2) For fiscal year 2003, the amount of the grant per assigned
caseload slot is equal to the per-caseload slot amount provided in
fiscal year 2001, adjusted by the percentage change between:
(i) The value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30, 2001; and
(ii) The value of that index for the 12-month period ending June
30, 2002.
(3) For subsequent fiscal years, the amount of the grant per
assigned caseload slot is equal to the amount of the grant per assigned
caseload slot for the preceding fiscal year, adjusted by the percentage
change between:
(i) The value of the State and local government price index, as
published by the Bureau of Economic Analysis of the Department of
Commerce, for the 12-month period ending June 30 of the second
preceding fiscal year; and
(ii) The value of that index for the 12-month period ending June 30
of the preceding fiscal year.
* * * * *
Dated: August 21, 2003.
Eric M. Bost,
Under Secretary for Food, Nutrition, and Consumer Services.
[FR Doc. 03-22021 Filed 8-27-03; 8:45 am]
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