[Federal Register Volume 68, Number 167 (Thursday, August 28, 2003)]
[Rules and Regulations]
[Pages 51675-51677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22021]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 68, No. 167 / Thursday, August 28, 2003 / 
Rules and Regulations  

[[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.

-----------------------------------------------------------------------

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 
[email protected].

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]
BILLING CODE 3410-30-P