[Federal Register Volume 64, Number 216 (Tuesday, November 9, 1999)]
[Rules and Regulations]
[Pages 61015-61016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29319]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 216 / Tuesday, November 9, 1999 / 
Rules and Regulations  

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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 246

RIN 0584-AC74


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

AGENCY: Food and Nutrition Service, USDA.

ACTION: Direct final rule.

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SUMMARY: This direct final rule amends the regulations for the Special 
Supplemental Nutrition Program for Women, Infants, and Children (WIC) 
to give State agencies greater flexibility in the way they collect 
expenditure data from local agencies. State agencies will be allowed to 
permit local agencies to submit expenditure reports up to quarterly, 
rather than monthly as is currently required. This rule responds to a 
recommendation suggested by some State agencies and is intended to 
allow State agencies to streamline program administration.

DATES: This rule will become effective on January 24, 2000, unless we 
receive written adverse comments or notices of intent to submit adverse 
comments postmarked on or before December 9, 1999.

ADDRESSES: Comments should be sent to Patricia N. Daniels, Director, 
Supplemental Food Program Division, Food and Nutrition Service, U.S. 
Department of Agriculture, Park Office Center, Room 540, 3101 Park 
Center Drive, Alexandria, VA 22302-1594. All written submissions will 
be available for public inspection at this address during normal 
business hours (8:30 a.m. to 5 p.m., Mondays through Fridays).

FOR FURTHER INFORMATION CONTACT: Debbie McIntosh at the above address 
or telephone (703) 305-2710.

SUPPLEMENTARY INFORMATION:

Background

What is the Current Requirement for Reporting Expenditures?

    Under the WIC Program, we provide funds to State agencies to pay 
for the food costs and nutrition services and administration (NSA) 
costs incurred by the State agencies and their local agencies. We 
distribute these funds to State agencies pursuant to the funding 
formulas at 7 CFR 246.16. Section 246.16(d) requires State agencies to 
provide to local agencies all funds made available by the Department, 
except those funds necessary for allowable State agency NSA costs and 
food costs paid directly by the State agency. Section 246.16(d) further 
requires State agencies to distribute the funds based on claims 
submitted at least monthly by the local agency.

How Does This Direct Final Rule Change the Reporting Requirement?

    Some State agencies are experimenting with ways to streamline 
program administration. Among the suggestions we have received is a 
recommendation to permit local agency NSA expenditure reports to be 
filed quarterly, instead of monthly. State agencies have pointed out 
that many other Federal programs use quarterly reporting. Accordingly, 
we have decided to change the WIC regulations on this point.
    Under this change, State agencies may permit local agencies to 
submit their expenditure reports quarterly. State agencies may require 
more frequent reports if they wish. A parallel change is made to the 
current requirement that State agencies offset advances against 
incoming claims each month. Instead, offset is required as the claims 
are submitted. This accommodates whatever reporting period a State 
agency chooses.

Does This Change Affect Local Agency Reports of Food Cost 
Expenditures?

    This change would apply to local agency reports of both NSA 
expenditures and food cost expenditures. The primary effect of this 
change would be for NSA expenditure reports, because in most State 
agencies the food costs are paid by the State agency rather than the 
local agencies. However, this rule does extend State agencies the same 
flexibility in setting the reporting period for food cost reports by 
local agencies. If a State agency chooses to permit bimonthly or 
quarterly reporting of food cost expenditures, the food costs must 
still be broken down by month within the reporting period.

Why Is This a Direct Final Rule?

    The Department has decided to promulgate this change as a direct 
final rule in light of its noncontroversial nature and in order to give 
State agencies this option as quickly as possible. Readers should refer 
to our policy statement on the use of direct final rules (October 23, 
1997, 52 FR 55141) for a description of the direct final rulemaking 
process. If we receive timely adverse comments or notices of intent to 
submit adverse comments within the scope of this rulemaking, we will 
publish timely notification of withdrawal of this rule in the Federal 
Register.

Executive Order 12866

    This direct final rule has been determined to be not significant 
for purposes of Executive Order 12866, and, therefore, has not been 
reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    This action has been reviewed with regard to the requirements of 
the Regulatory Flexibility Act (5 U.S.C. 601-612). The Administrator of 
the Food and Nutrition Service (FNS) has certified that this action 
will not have a significant economic impact on a substantial number of 
small entities. While procedures in this rulemaking will affect State 
and local agencies that administer the WIC Program, any economic effect 
will not be significant.

Unfunded Mandate Reform Act of 1995

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, FNS 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, or tribal governments, in 
the aggregate, or

[[Page 61016]]

to the private sector, of $100 million or more in any one year. When 
such a statement is needed for a rule, section 205 of the UMRA 
generally requires FNS to identify and consider a reasonable number of 
regulatory alternatives and adopt the least costly, more cost-effective 
or lease burdensome alternative that achieves the objectives of the 
rule. This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, and tribal 
governments or the private sector of $100 million or more in any one 
year. Thus, this direct final rule is not subject to the requirements 
of sections 202 and 205 of the UMRA.

Executive Order 12372

    This program is listed in the Catalog of Federal Domestic 
Assistance under 10.557. For the reasons set forth in 7 CFR Part 3015, 
Subpart V and the final rule-related notice published at 48 FR 29115, 
June 24, 1983, this program is included in the scope of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials.

Paperwork Reduction Act of 1995

    This final rule contains no new information collection requirements 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). The 
existing recordkeeping and reporting requirements, which were approved 
by OMB under control number 0584-0045, will not change as a result of 
this final rule.

Executive Order 12988

    This direct final rule has been reviewed under Executive Order 
12988, Civil Justice Reform. This rule is intended to have preemptive 
effect with respect to any State or local laws, regulations, or 
policies which conflict with its provisions or which would otherwise 
impede its full implementation. This rule is not intended to have 
retroactive effect unless so specified in the EFFECTIVE DATE section of 
the preamble. Prior to any judicial challenge to the application of the 
provisions of this rule, all applicable administrative procedures must 
be exhausted.

List of Subjects in 7 CFR Part 246

    Administrative practice and procedure, Civil rights, Food 
assistance programs, Food and Nutrition Service, Food donations, Grant 
programs--health, Grant programs--social programs, Indians, Infants and 
children, Maternal and child health, Nutrition, Nutrition education, 
Penalties, Reporting and recordkeeping requirements, Public assistance 
programs, WIC, Women.
    Accordingly, 7 CFR Part 246 is amended as follows:

PART 246--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
INFANTS, AND CHILDREN

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

    Authority: 42 U.S.C. 1786.


Sec. 246.16  [Amended]

    2. In Sec. 246.16, amend the introductory text of paragraph (d) as 
follows:
    a. in the second sentence, remove the word ``monthly'' and add in 
its place the word ``quarterly'';
    b. in the third sentence, remove the words ``each month'' and add 
it their place the words ``as they are submitted''.

    Dated: October 29, 1999.
Samuel Chambers, Jr.,
Administrator, Food and Nutrition Service.
[FR Doc. 99-29319 Filed 11-8-99; 8:45 am]
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