{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where agency = \"FNS\" sorted by section_id", "rows": [["7:7:4.1.1.1.1.1.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "A", "Subpart A\u2014General", "", "\u00a7 210.1 General purpose and scope.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 78 FR 39090, June 28, 2013]", "(a)  Purpose of the program.  Section 2 of the National School Lunch Act (42 U.S.C. 1751), states: \u201cIt is declared to be the policy of Congress, as a measure of national security, to safeguard the health and well-being of the Nation's children and to encourage the domestic consumption of nutritious agricultural commodities and other food, by assisting the States, through grants-in-aid and other means, in providing an adequate supply of food and other facilities for the establishment, maintenance, operation, and expansion of nonprofit school lunch programs.\u201d Pursuant to this act, the Department provides States with general and special cash assistance and donations of foods acquired by the Department to be used to assist schools in serving nutritious lunches to children each school day. In furtherance of Program objectives, participating schools shall serve lunches that are nutritionally adequate, as set forth in these regulations, and shall to the extent practicable, ensure that participating children gain a full understanding of the relationship between proper eating and good health.\n\n(b)  Scope of the regulations.  This part sets forth the requirements for participation in the National School Lunch and Commodity School Programs. It specifies Program responsibilities of State and local officials in the areas of program administration, preparation and service of nutritious lunches, the sale of competitive foods, payment of funds, use of program funds, program monitoring, and reporting and recordkeeping requirements."], ["7:7:4.1.1.1.1.1.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "A", "Subpart A\u2014General", "", "\u00a7 210.2 Definitions.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988]", "For the purposes of this part:\n\n2 CFR part 200,  means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published by OMB. The part reference covers applicable: Acronyms and Definitions (subpart A), General Provisions (subpart B), Post Federal Award Requirements (subpart D), Cost Principles (subpart E), and Audit Requirements (subpart F). (NOTE: Pre-Federal Award Requirements and Contents of Federal Awards (subpart C) does not apply to the National School Lunch Program).\n\nAct  means the National School Lunch Act, as amended.\n\nAfterschool care program  means a program providing organized child care services to enrolled school-age children afterschool hours for the purpose of care and supervision of children. Those programs must be distinct from any extracurricular programs organized primarily for scholastic, cultural or athletic purposes.\n\nApplicable credits  shall have the meaning established in 2 CFR part 200 and USDA implementing regulations 2 CFR parts 400 and 415.\n\nAttendance factor  means a percentage developed no less than once each school year which accounts for the difference between enrollment and attendance. The attendance factor may be developed by the school food authority, subject to State agency approval, or may be developed by the State agency. In the absence of a local or State attendance factor, the school food authority will use an attendance factor developed FNS. When taking the attendance factor into consideration, school food authorities will assume that all children eligible for free and reduced price lunches attend school at the same rate as the general school population.\n\nAverage Daily Participation  means the average number of children, by eligibility category, participating in the Program each operating day. These numbers are obtained by dividing:\n\n(1) The total number of free lunches claimed during a reporting period by the number of operating days in the same period;\n\n(2) The total number of reduced price lunches claimed during a reporting period by the number of operating days in the same period; and\n\n(3) The total number of paid lunches claimed during a reporting period by the number of operating days in the same period.\n\nChild  means:\n\n(1) A student of high school grade or under as determined by the State educational agency, who is enrolled in an educational unit of high school grade or under as described in paragraphs (1) and (2) of the definition of \u201cSchool\u201d in this section, including students with a disability who participate in a school program established for persons with disabilities;\n\n(2) A person under 21 chronological years of age who is enrolled in an institution or center as described in paragraph (3) of the definition of \u201cSchool\u201d in this section; or\n\n(3) For afterschool care programs, persons aged 18 and under at the start of the school year, and persons of any age with a disability who participate in a school program established for persons with disabilities.\n\nChild with a disability  means any child who has a physical or mental impairment that substantially limits one or more major life activities of such individual, has a record of such an impairment, or has been regarded as having such an impairment.\n\nCommodity School Program  means the Program under which participating schools operate a nonprofit lunch program in accordance with this part and receive donated food assistance in lieu of general cash assistance. Schools participating in the Commodity School Program will also receive special cash and donated food assistance in accordance with \u00a7 210.4(c).\n\nContractor  means a commercial enterprise, public or nonprofit private organization or individual that enters into a contract with a school food authority.\n\nCost reimbursable contract  means a contract that provides for payment of incurred costs to the extent prescribed in the contract, with or without a fixed fee.\n\nDays  means calendar days unless otherwise specified.\n\nDepartment  means the United States Department of Agriculture.\n\nDistributing agency  means a State agency which enters into an agreement with the Department for the distribution to schools of donated foods pursuant to part 250 of this chapter.\n\nDonated foods  means food commodities donated by the Department for use in nonprofit lunch programs.\n\nFiscal year  means a period of 12 calendar months beginning October 1 of any year and ending with September 30 of the following year.\n\nFixed fee  means an agreed upon amount that is fixed at the inception of the contract. In a cost reimbursable contract, the fixed fee includes the contractor's direct and indirect administrative costs and profit allocable to the contract.\n\nFixed-price contract  means a contract that charges a fixed cost per meal, or a fixed cost for a certain time period. Fixed-price contracts may include an economic price adjustment tied to a standard index.\n\nFNS  means the Food and Nutrition Service, United States Department of Agriculture.\n\nFNSRO  means the appropriate Regional Office of the Food and Nutrition Service of the Department.\n\nFood item  means a specific food offered within a food component.\n\nFood service management company  means a commercial enterprise or a nonprofit organization which is or may be contracted with by the school food authority to manage any aspect of the school food service.\n\nFree lunch  means a lunch served under the Program to a child from a household eligible for such benefits under part 245 of this chapter and for which neither the child nor any member of the household pays or is required to work.\n\nLocal educational agency  means a public board of education or other public or private nonprofit authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public or private nonprofit elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public or private nonprofit elementary schools or secondary schools. The term also includes any other public or private nonprofit institution or agency having administrative control and direction of a public or private nonprofit elementary school or secondary school, including residential child care institutions, Bureau of Indian Affairs schools, and educational service agencies and consortia of those agencies, as well as the State educational agency in a State or territory in which the State educational agency is the sole educational agency for all public or private nonprofit schools.\n\nLunch  means a meal service that meets the meal requirements in \u00a7 210.10 for lunches.\n\nMeal component  means one of the food groups which comprise reimbursable meals. The meal components are: fruits, vegetables, grains, meats/meat alternates, and fluid milk.\n\nNational School Lunch Program  means the Program under which participating schools operate a nonprofit lunch program in accordance with this part. General and special cash assistance and donated food assistance are made available to schools in accordance with this part.\n\nNet cash resources  means all monies, as determined in accordance with the State agency's established accounting system, that are available to or have accrued to a school food authority's nonprofit school food service at any given time, less cash payable. Such monies may include, but are not limited to, cash on hand, cash receivable, earnings on investments, cash on deposit and the value of stocks, bonds or other negotiable securities.\n\nNonprofit  means, when applied to schools or institutions eligible for the Program, exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986.\n\nNonprofit school food service  means all food service operations conducted by the school food authority principally for the benefit of schoolchildren, all of the revenue from which is used solely for the operation or improvement of such food services.\n\nNonprofit school food service account  means the restricted account in which all of the revenue from all food service operations conducted by the school food authority principally for the benefit of school children is retained and used only for the operation or improvement of the nonprofit school food service. This account will include, as appropriate, non-Federal funds used to support paid lunches as provided in \u00a7 210.14(e), and proceeds from nonprogram foods as provided in \u00a7 210.14(f).\n\nOIG  means the Office of the Inspector General of the Department.\n\nPaid lunch  means a lunch served to children who are either not certified for or elect not to receive the free or reduced price benefits offered under part 245 of this chapter. The Department subsidizes each paid lunch with both general cash assistance and donated foods. The prices for paid lunches in a school food authority must be determined in accordance with \u00a7 210.14(e).\n\nPoint of Service  means that point in the food service operation where a determination can accurately be made that a reimbursable free, reduced price, or paid lunch has been served to an eligible child.\n\nProgram  means the National School Lunch Program and the Commodity School Program.\n\nReduced price lunch  means a lunch served under the Program:\n\n(1) To a child from a household eligible for such benefits under part 245 of this chapter;\n\n(2) For which the price is less than the school food authority designated full price of the lunch and which does not exceed the maximum allowable reduced price specified under part 245 of this chapter; and\n\n(3) For which neither the child nor any member of the household is required to work.\n\nReimbursement  means Federal cash assistance including advances paid or payable to participating schools for lunches meeting the requirements of \u00a7 210.10 and served to eligible children.\n\nRevenue,  when applied to nonprofit school food service, means all monies received by or accruing to the nonprofit school food service in accordance with the State agency's established accounting system including, but not limited to, children's payments, earnings on investments, other local revenues, State revenues, and Federal cash reimbursements.\n\nSchool  means:\n\n(1) An educational unit of high school grade or under, recognized as part of the educational system in the State and operating under public or nonprofit private ownership in a single building or complex of buildings;\n\n(2) Any public or nonprofit private classes of preprimary grade when they are conducted in the aforementioned schools; or\n\n(3) Any public or nonprofit private residential child care institution, or distinct part of such institution, which operates principally for the care of children, and, if private, is licensed to provide residential child care services under the appropriate licensing code by the State or a subordinate level of government, except for residential summer camps which participate in the Summer Food Service Program for Children, Job Corps centers funded by the Department of Labor, and private foster homes.\n\nSchool food authority  means the governing body which is responsible for the administration of one or more schools; and has the legal authority to operate the Program therein or be otherwise approved by FNS to operate the Program.\n\nSchool nutrition program directors  are those individuals directly responsible for the management of the day-to-day operations of school food service for all participating schools under the jurisdiction of the school food authority.\n\nSchool nutrition program managers  are those individuals directly responsible for the management of the day-to-day operations of school food service for a participating school(s).\n\nSchool nutrition program staff  are those individuals, without managerial responsibilities, involved in day-to-day operations of school food service for a participating school(s).\n\nSchool week  means the period of time used to determine compliance with the meal requirements in \u00a7 210.10. The period will be a normal school week of five consecutive days; however, to accommodate shortened weeks resulting from holidays and other scheduling needs, the period must be a minimum of three consecutive days and a maximum of seven consecutive days. Weeks in which school lunches are offered less than three times must be combined with either the previous or the coming week.\n\nSchool year  means a period of 12 calendar months beginning July 1 of any year and ending June 30 of the following year.\n\nSeamless Summer Option  means the meal service alternative authorized by Section 13(a)(8) of the Richard B. Russell National School Lunch Act, 42 U.S.C. 1761(a)(8), under which public or nonprofit school food authorities participating in the National School Lunch Program or School Breakfast Program offer meals at no cost to children during the traditional summer vacation periods and, for year-round schools, vacation periods longer than 10 school days.\n\nSecretary  means the Secretary of Agriculture.\n\nState  means any of the 50 States, District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and, as applicable, American Samoa and the Commonwealth of the Northern Marianas.\n\nState agency  means:\n\n(1) The State educational agency;\n\n(2) Any other agency of the State which has been designated by the Governor or other appropriate executive or legislative authority of the State and approved by the Department to administer the Program in schools, as specified in \u00a7 210.3(b) of this chapter; or\n\n(3) The FNSRO, where the FNSRO administers the Program as specified in \u00a7 210.3(c) of this chapter.\n\nState educational agency  means, as the State legislature may determine,\n\n(1) The chief State school officer (such as the State Superintendent of Public Instruction, Commissioner of Education, or similar officer), or\n\n(2) A board of education controlling the State department of education.\n\nState licensed healthcare professional  means an individual who is authorized to write medical prescriptions under State law. This may include, but is not limited to, a licensed physician, nurse practitioner, or physician's assistant, depending on State law.\n\nTofu  means a soybean-derived food, made by a process in which soybeans are soaked, ground, mixed with water, heated, filtered, coagulated, and formed into cakes. Basic ingredients are whole soybeans, one or more food-grade coagulants (typically a salt or an acid), and water. Tofu products must conform to FNS guidance to count toward the meats/meat alternates component.\n\nUSDA implementing regulations  include the following: 2 CFR part 400, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 2 CFR part 415, General Program Administrative Regulations; 2 CFR part 416, General Program Administrative Regulations for Grants and Cooperative Agreements to State and Local Governments; and 2 CFR part 418, New Restrictions on Lobbying.\n\nWhole grain-rich  is the term designated by FNS to indicate that the grain content of a product is between 50 and 100 percent whole grain with any remaining grains being enriched.\n\nWhole grains  means grains that consist of the intact, ground, cracked, or flaked grain seed whose principal anatomical components\u2014the starchy endosperm, germ and bran\u2014are present in the same relative proportions as they exist in the intact grain seed.\n\nYogurt  means commercially prepared coagulated milk products obtained by the fermentation of specific bacteria, that meet milk fat or milk solid requirements and to which flavoring foods or ingredients may be added. These products are covered by the Food and Drug Administration's Definition and Standard of Identity for yogurt, 21 CFR 131.200, and low-fat yogurt and non-fat yogurt covered as a standardized food under 21 CFR 130.10."], ["7:7:4.1.1.1.1.1.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "A", "Subpart A\u2014General", "", "\u00a7 210.3 Administration.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 71 FR 39515, July 13, 2006; 81 FR 66489, Sept. 28, 2016; 87 FR 57354, Sept. 19, 2022; 89 FR 32063, Apr. 25, 2024]", "(a)  FNS.  FNS will act on behalf of the Department in the administration of the Program.\n\n(b)  States.  Within the States, the responsibility for the administration of the Program in schools, as defined in \u00a7 210.2, shall be in the State educational agency. If the State educational agency is unable to administer the Program in public or private nonprofit residential child care institutions or nonprofit private schools, then Program administration for such schools may be assumed by FNSRO as provided in paragraph (c) of this section, or such other agency of the State as has been designated by the Governor or other appropriate executive or legislative authority of the State and approved by the Department to administer such schools. Each State agency desiring to administer the Program shall enter into a written agreement with the Department for the administration of the Program in accordance with the applicable requirements of this part; parts 235 and 245 of this chapter; parts 15, 15a, and 15b of this title, and 2 CFR part 200; USDA implementing regulations 2 CFR part 400 and part 415; and FNS instructions.\n\n(c)  FNSRO.  The FNSRO will administer the Program in nonprofit private schools or public or nonprofit private residential child care institutions if the State agency is prohibited by law from disbursing Federal funds paid to such schools. In addition, the FNSRO will continue to administer the Program in those States in which nonprofit private schools or public or nonprofit private residential child care institutions have been under continuous FNS administration since October 1, 1980, unless the administration of the Program in such schools is assumed by the State. The FNSRO will, in each State in which it administers the Program, assume all responsibilities of a State agency as set forth in this part and part 245 of this chapter as appropriate. References in this part to \u201cState agency\u201d include FNSRO, as applicable, when it is the agency administering the Program.\n\n(d)  School food authorities.  The school food authority shall be responsible for the administration of the Program in schools. State agencies shall ensure that school food authorities administer the Program in accordance with the applicable requirements of this part; part 245 of this chapter; parts 15, 15a, and 15b, and 3016 or 3019, as applicable, of this title and 2 CFR part 200; USDA implementing regulations 2 CFR part 400 and part 415 and FNS instructions.\n\n(e)  Authority to waive statute and regulations.  (1) As authorized under section 12(l) of the Richard B. Russell National School Lunch Act, FNS may waive provisions of such Act or the Child Nutrition Act of 1966, as amended, and the provisions of this part with respect to a State agency or eligible service provider. The provisions of this part required by other statutes may not be waived under this authority. FNS may only approve requests for a waiver that are submitted by a State agency and comply with the requirements at section 12(l)(1) and the limitations at section 12(l)(4), including that FNS may not grant a waiver that increases Federal costs.\n\n(2)(i) A State agency may submit a request for a waiver under paragraph (e)(1) of this section in accordance with section 12(l)(2) and the provisions of this part.\n\n(ii) A State agency may submit a request to waive specific statutory or regulatory requirements on behalf of eligible service providers that operate in the State. Any waiver where the State concurs must be submitted to the appropriate FNSRO.\n\n(3)(i) An eligible service provider may submit a request for a waiver under paragraph (e)(1) of this section in accordance with section 12(l) and the provisions of this part. Any waiver request submitted by an eligible service provider must be submitted to the State agency for review. A State agency must act promptly on such a waiver request and must deny or concur with a request submitted by an eligible service provider.\n\n(ii) If a State agency concurs with a request from an eligible service provider, the State agency must promptly forward to the appropriate FNSRO the request and a rationale, consistent with section 12(l)(2), supporting the request. By forwarding the request to the FNSRO, the State agency affirms:\n\n(A) The request meets all requirements for waiver submissions; and,\n\n(B) The State agency will conduct all monitoring requirements related to regular Program operations and the implementation of the waiver.\n\n(iii) If the State agency denies the request, the State agency must notify the requesting eligible service provider and state the reason for denying the request in writing within 30 calendar days of the State agency's receipt of the request. The State agency response is final and may not be appealed to FNS."], ["7:7:4.1.1.1.1.2.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "B", "Subpart B\u2014Reimbursement Process for States and School Food Authorities", "", "\u00a7 210.4 Cash and donated food assistance to States.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 58 FR 42487, Aug. 10, 1993; 60 FR 31207, June 13, 1995; 65 FR 26912, May 9, 2000; 77 FR 25034, Apr. 27, 2012; 89 FR 32063, Apr. 25, 2024]", "(a)  General.  To the extent funds are available, FNS will make cash assistance available in accordance with the provisions of this section to each State agency for lunches and afterschool snacks served to children under the National School Lunch and Commodity School Programs. To the extent donated foods are available, FNS will provide donated food assistance to distributing agencies for each lunch served in accordance with the provisions of this part and part 250 of this chapter.\n\n(b)  Assistance for the National School Lunch Program.  The Secretary will make cash and/or donated food assistance available to each State agency and distributing agency, as appropriate, administering the National School Lunch Program, as follows:\n\n(1) Cash assistance will be made available to each State agency administering the National School Lunch Program as follows:\n\n(i)  General:  Cash assistance payments are composed of a general cash assistance payment and a performance-based cash assistance payment, authorized under section 4 of the Act, and a special cash assistance payment, authorized under section 11 of the Act. General cash assistance is provided to each State agency for all lunches served to children in accordance with the provisions of the National School Lunch Program. Performance-based cash assistance is provided to each State agency for lunches served in accordance with \u00a7 210.7(d). Special cash assistance is provided to each State agency for lunches served under the National School Lunch Program to children determined eligible for free or reduced price lunches in accordance with part 245 of this chapter.\n\n(ii)  Cash assistance for lunches.  The total general cash assistance paid to each State for any fiscal year shall not exceed the lesser of amounts reported to FNS as reimbursed to school food authorities in accordance with \u00a7 210.5(d)(3) or the total calculated by multiplying the number of lunches reported in accordance with \u00a7 210.5(d)(1) for each month of service during the fiscal year, by the applicable national average payment rate prescribed by FNS. The total performance-based cash assistance paid to each State for any fiscal year shall not exceed the lesser of amounts reported to FNS as reimbursed to school food authorities in accordance with \u00a7 210.5(d)(3) or the total calculated by multiplying the number of lunches reported in accordance with \u00a7 210.5(d)(1) for each month of service during the fiscal year, by 6 cents for school year 2012-2013, adjusted annually thereafter as specified in paragraph (b)(1)(iii) of this section. The total special assistance paid to each State for any fiscal year shall not exceed the lesser of amounts reported to FNS as reimbursed to school food authorities in accordance with \u00a7 210.5(d)(3) or the total calculated by multiplying the number of free and reduced price lunches reported in accordance with \u00a7 210.5(d)(1) for each month of service during the fiscal year by the applicable national average payment rate prescribed by FNS.\n\n(iii)  Annual adjustments.  In accordance with section 11 of the Act, FNS will prescribe annual adjustments to the per meal national average payment rate (general cash assistance), the performance-based cash assistance rate (performance-based cash assistance), and the special assistance national average payment rates (special cash assistance) which are effective on July 1 of each year. These adjustments, which reflect changes in the food away from home series of the Consumer Price Index for all Urban Consumers, are annually announced by Notice in July of each year in the  Federal Register.\n\n(iv)  Maximum per meal rates.  FNS will also establish maximum per meal rates of reimbursement within which a State may vary reimbursement rates to school food authorities. These maximum rates of reimbursement are established at the same time and announced in the same Notice as the national average payment rates.\n\n(2)  Donated food assistance.  For each school year, FNS will provide distributing agencies with donated foods for lunches served under the National School Lunch Program as provided under part 250 of this chapter. The per lunch value of donated food assistance is adjusted by the Secretary annually to reflect changes as required under section 6 of the Act. These adjustments, which reflect changes in the Price Index for Foods Used in Schools and Institutions, are effective on July 1 of each year and are announced by Notice in the  Federal Register  in July of each year.\n\n(3)  Cash assistance for afterschool snacks.  For those eligible schools (as defined in \u00a7 210.10(o)(1)) operating afterschool care programs and electing to serve afterschool snacks to enrolled children, funds will be made available to each State agency, each school year in an amount no less than the sum of the products obtained by multiplying:\n\n(i) The number of afterschool snacks served in the afterschool care program within the State to children from families that do not satisfy the income standards for free and reduced price school meals by 2.75 cents;\n\n(ii) The number of afterschool snacks served in the afterschool care program within the State to children from families that satisfy the income standard for free school meals by 30 cents; and\n\n(iii) The number of afterschool snacks served in the afterschool care program within the State to children from families that satisfy the income standard for reduced price school meals by 15 cents.\n\n(4)  Annual adjustments for cash assistance for afterschool snacks.  The rates in paragraph (b)(3) of this section are the base rates established in August 1981 for the Child and Adult Care Food Program (CACFP). FNS will prescribe annual adjustments to these rates in the same Notice as the National Average Payment Rates for lunches. These adjustments will ensure that the reimbursement rates for afterschool snacks served under this part are the same as those implemented for afterschool snacks in the CACFP.\n\n(c)  Assistance for the Commodity School Program.  FNS will make special cash assistance available to each State agency for lunches served in commodity schools in the same manner as special cash assistance is provided in the National School Lunch Program. Payment of such amounts to State agencies is subject to the reporting requirements contained in \u00a7 210.5(d). FNS will provide donated food assistance in accordance with part 250 of this chapter. Of the total value of donated food assistance to which it is entitled, the school food authority may elect to receive cash payments of up to 5 cents per lunch served in its commodity school(s) for donated foods processing and handling expenses. Such expenses include any expenses incurred by or on behalf of a commodity school for processing or other aspects of the preparation, delivery, and storage of donated foods. The school food authority may have all or part of these cash payments retained by the State agency for use on its behalf for processing and handling expenses by the State agency or it may authorize the State agency to transfer to the distributing agency all or any part of these payments for use on its behalf for these expenses. Payment of such amounts to State agencies is subject to the reporting requirements contained in \u00a7 210.5(d). The total value of donated food assistance is calculated on a school year basis by adding:\n\n(1) The applicable national average payment rate (general cash assistance) prescribed by the Secretary for the period of July 1 through June 30 multiplied by the total number of lunches served during the school year under the Commodity School Program; and\n\n(2) The national per lunch average value of donated foods prescribed by the Secretary for the period of July 1 through June 30 multiplied by the total number of lunches served during the school year under the Commodity School Program."], ["7:7:4.1.1.1.1.2.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "B", "Subpart B\u2014Reimbursement Process for States and School Food Authorities", "", "\u00a7 210.5 Payment process to States.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12580, Mar. 28, 1989; 56 FR 32939, July 17, 1991; 71 FR 39516, July 13, 2006; 77 FR 25034, Apr. 27, 2012; 79 FR 330, Jan. 3, 2014; 81 FR 50185, July 29, 2016; 81 FR 66488, Sept. 28, 2016; 88 FR 57844, Aug. 23, 2023]", "(a)  Grant award.  FNS will specify the terms and conditions of the State agency's grant in a grant award document and will generally make payments available by means of a Letter of Credit issued in favor of the State agency. The State agency shall obtain funds for reimbursement to participating school food authorities through procedures established by FNS in accordance with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415. State agencies shall limit requests for funds to such times and amounts as will permit prompt payment of claims or authorized advances. The State agency shall disburse funds received from such requests without delay for the purpose for which drawn. FNS may, at its option, reimburse a State agency by Treasury Check. FNS will pay by Treasury Check with funds available in settlement of a valid claim if payment for that claim cannot be made within the grant closeout period specified in paragraph (d) of this section.\n\n(b)  Cash-in-lieu of donated foods.  All Federal funds to be paid to any State in place of donated foods will be made available as provided in part 240 of this chapter.\n\n(c)  Recovery of funds.  FNS will recover any Federal funds made available to the State agency under this part which are in excess of obligations reported at the end of each fiscal year in accordance with the reconciliation procedures specified in paragraph (d) of this section. Such recoveries shall be reflected by a related adjustment in the State agency's Letter of Credit.\n\n(d)  Substantiation and reconciliation process.  Each State agency shall maintain Program records as necessary to support the reimbursement payments made to school food authorities under \u00a7\u00a7 210.7 and 210.8 and the reports submitted to FNS under this paragraph. The State agency shall ensure such records are retained for a period of 3 years or as otherwise specified in \u00a7 210.23(c).\n\n(1)  Monthly report.  Each State agency shall submit a final Report of School Program Operations (FNS-10) to FNS for each month. The final reports shall be limited to claims submitted in accordance with \u00a7 210.8 of this part. For the month of October, the final report shall include the total number of children approved for free lunches, the total number of children approved for reduced price lunches, and the total number of children enrolled in participating public schools, private schools, and residential child care institutions, respectively, as of the last day of operation in October. The final reports shall be postmarked and/or submitted no later than 90 days following the last day of the month covered by the report. States shall not receive Program funds for any month for which the final report is not submitted within this time limit unless FNS grants an exception. Upward adjustments to a State's report shall not be made after 90 days from the month covered by the report unless authorized by FNS. Downward adjustments to a State's report shall always be made regardless of when it is determined that such adjustments are necessary. FNS authorization is not required for downward adjustments. Any adjustments to a State's report shall be reported to FNS in accordance with procedures established by FNS.\n\n(2)  Quarterly report.  Each State agency administering the National School Lunch Program must submit to FNS a quarterly Financial Status Report (FNS-777) on the use of Program funds. Such reports must be postmarked and/or submitted no later than 30 days after the end of each fiscal year quarter.\n\n(3)  End of year reports.  (i) Each State agency must submit an annual report detailing the disbursement of performance-based cash assistance described in \u00a7 210.4(b)(1). The report must be submitted no later than 30 days after the end of each fiscal year. The report must include the total number of school food authorities in the State and the names of certified school food authorities. If all school food authorities in the State have been certified, the State agency is no longer required to submit the report.\n\n(ii) Each State agency must submit a final Financial Status Report (FNS-777) for each fiscal year. This final fiscal year grant closeout report must be postmarked or submitted to FNS within 120 days after the end of each fiscal year or part thereof that the State agency administered the Program. Obligations must be reported only for the fiscal year in which they occur. FNS will not be responsible for reimbursing Program obligations reported later than 120 days after the close of the fiscal year in which they were incurred. Grant closeout procedures are to be carried out in accordance with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415."], ["7:7:4.1.1.1.1.2.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "B", "Subpart B\u2014Reimbursement Process for States and School Food Authorities", "", "\u00a7 210.6 Use of Federal funds.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 58 FR 42487, Aug. 10, 1993]", "General.  State agencies shall use Federal funds made available under the Program to reimburse or make advance payments to school food authorities in connection with lunches and meal supplements served in accordance with the provisions of this part;  except that,  with the approval of FNS, any State agency may reserve an amount up to one percent of the funds earned in any fiscal year under this part for use in carrying out special developmental projects. Advance payments to school food authorities may be made at such times and in such amounts as are necessary to meet the current fiscal obligations. All Federal funds paid to any State in place of donated foods shall be used as provided in part 240 of this chapter."], ["7:7:4.1.1.1.1.2.1.4", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "B", "Subpart B\u2014Reimbursement Process for States and School Food Authorities", "", "\u00a7 210.7 Reimbursement for school food authorities.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12581, Mar. 28, 1989; 56 FR 32939, July 17, 1991; 58 FR 42487, Aug. 10, 1993; 60 FR 31207, June 13, 1995; 65 FR 26912, May 9, 2000; 77 FR 25034, Apr. 27, 2012; 79 FR 330, Jan. 3, 2014; 81 FR 50185, July 29, 2016; 88 FR 57844, Aug. 23, 2023; 89 FR 32063, Apr. 25, 2024]", "(a)  General.  Reimbursement payments to finance nonprofit school food service operations will be made only to school food authorities operating under a written agreement with the State agency. Subject to the provisions of \u00a7 210.8(c), such payments may be made for lunches and afterschool snacks served in accordance with provisions of this part and part 245 of this chapter in the calendar month preceding the calendar month in which the agreement is executed. These reimbursement payments include general cash assistance for all lunches served to children under the National School Lunch Program and special cash assistance payments for free or reduced-price lunches served to children determined eligible for such benefits under the National School Lunch and Commodity School Programs. Reimbursement payments will also be made for afterschool snacks served to eligible children in afterschool care programs in accordance with the rates established in \u00a7 210.4(b)(3). Approval will be in accordance with part 245.\n\n(b)  Assignment of rates.  At the beginning of each school year, State agencies shall establish the per meal rates of reimbursement for school food authorities participating in the Program. These rates of reimbursement may be assigned at levels based on financial need;  except that,  the rates are not to exceed the maximum rates of reimbursement established by the Secretary under \u00a7 210.4(b) and are to permit reimbursement for the total number of lunches in the State from funds available under \u00a7 210.4. Within each school food authority, the State agency shall assign the same rate of reimbursement from general cash assistance funds for all lunches served to children under the Program. Assigned rates of reimbursement may be changed at any time by the State agency,  provided that  notice of any change is given to the school food authority. The total general and special cash assistance reimbursement paid to any school food authority for lunches served to children during the school year are not to exceed the sum of the products obtained by multiplying the total reported number of lunches, by type, served to eligible children during the school year by the applicable maximum per lunch reimbursements prescribed for the school year for each type of lunch.\n\n(c)  Reimbursement limitations.  To be entitled to reimbursement under this part, each school food authority must ensure that Claims for Reimbursement are limited to the number of free, reduced price, and paid lunches and afterschool snacks that are served to children eligible for free, reduced price, and paid lunches and afterschool snacks, respectively, for each day of operation.\n\n(1)  Lunch count system.  To ensure that the Claim for Reimbursement accurately reflects the number of lunches and afterschool snacks served to eligible children, the school food authority must, at a minimum:\n\n(i) Correctly approve each child's eligibility for free and reduced price lunches and afterschool snacks based on the requirements prescribed under part 245 of this chapter;\n\n(ii) Maintain a system to issue benefits and to update the eligibility of children approved for free or reduced price lunches and afterschool snacks. The system must:\n\n(A) Accurately reflect eligibility status as well as changes in eligibility made after the initial approval process due to verification findings, transfers, reported changes in income or household size, etc.; and\n\n(B) Make the appropriate changes in eligibility after the initial approval process on a timely basis so that the mechanism the school food authority uses to identify currently eligible children provides a current and accurate representation of eligible children. Changes in eligibility which result in increased benefit levels must be made as soon as possible but no later than 3 operating days of the date the school food authority makes the final decision on a child's eligibility status. Changes in eligibility which result in decreased benefit levels must be made as soon as possible but no later than 10 operating days of the date the school food authority makes the final decision on the child's eligibility status;\n\n(iii) Base Claims for Reimbursement on lunch counts, taken daily at the point of service, which correctly identify the number of free, reduced price and paid lunches served to eligible children;\n\n(iv) Correctly record, consolidate and report those lunch and afterschool snack counts on the Claim for Reimbursement; and\n\n(v) Ensure that Claims for Reimbursement do not request payment for any excess lunches produced, as prohibited in \u00a7 210.10(a)(2), or non-Program lunches ( i.e.,  a la carte or adult lunches) or for more than one afterschool snack per child per day.\n\n(2)  Point of service alternatives.  (i) State agencies may authorize alternatives to the point of service lunch counts provided that such alternatives result in accurate, reliable counts of the number of free, reduced price and paid lunches served, respectively, for each serving day. State agencies are encouraged to issue guidance which clearly identifies acceptable point of service alternatives and instructions for proper implementation. School food authorities may select one of the State agency approved alternatives without prior approval.\n\n(ii) In addition, on a case-by-case basis, State agencies may authorize school food authorities to use other alternatives to the point of service lunch count; provided that such alternatives result in an accurate and reliable lunch count system. Any request to use an alternative lunch counting method which has not been previously authorized under paragraph (2)(i) is to be submitted in writing to the State agency for approval. Such request shall provide detail sufficient for the State agency to assess whether the proposed alternative would provide an accurate and reliable count of the number of lunches, by type, served each day to eligible children. The details of each approved alternative shall be maintained on file at the State agency for review by FNS.\n\n(d)  Performance-based cash assistance.  The State agency must provide performance-based cash assistance as authorized under \u00a7 210.4(b)(1) for lunches served in school food authorities certified by the State agency to be in compliance with meal pattern and nutrition requirements set forth in \u00a7 210.10 and, if the school food authority participates in the School Breakfast Program (part 220 of this chapter), \u00a7 220.8 of this chapter, as applicable. State agencies must establish procedures to certify school food authorities for performance-based cash assistance in accordance with guidance established by FNS. Such procedures must ensure State agencies:\n\n(1) Make certification procedures readily available to school food authorities and provide guidance necessary to facilitate the certification process.\n\n(2) Require school food authorities to submit documentation to demonstrate compliance with meal pattern requirements set forth in \u00a7 210.10 and \u00a7 220.8 of this chapter, as applicable. Such documentation must reflect meal service at or about the time of certification.\n\n(3) State agencies must review certification documentation submitted by the school food authority to ensure compliance with meal pattern requirements set forth in \u00a7 210.10, or \u00a7 220.8 of this chapter, as applicable. For certification purposes, State agencies should consider any school food authority compliant:\n\n(i) If when evaluating daily and weekly range requirements for grains and meat/meat alternates, the certification documentation shows compliance with the daily and weekly minimums for these two components, regardless of whether the school food authority has exceeded the maximums for the same components.\n\n(ii) If when evaluating the service of frozen fruit, the school food authority serves products that contain added sugar.\n\n(4) Certification procedures must ensure that no performance-based cash assistance is provided to school food authorities for meals served prior to October 1, 2012.\n\n(5) Within 60 calendar days of a certification submission or as otherwise authorized by FNS, review submitted materials and notify school food authorities of the certification determination, the date that performance-based cash assistance is effective, and consequences for non-compliance,\n\n(6) Disburse performance-based cash assistance for all lunches served beginning with the start of certification provided that documentation reflects meal service in the calendar month the certification materials are submitted or, in the month preceding the calendar month of submission.\n\n(e)  Reimbursements for afterschool snacks.  The State agency will reimburse the school food authority for afterschool snacks served in eligible schools (as defined in \u00a7 210.10(o)(1)) operating afterschool care programs under the National School Lunch Program (NSLP) in accordance with the rates established in \u00a7 210.4(b)."], ["7:7:4.1.1.1.1.2.1.5", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "B", "Subpart B\u2014Reimbursement Process for States and School Food Authorities", "", "\u00a7 210.8 Claims for reimbursement.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12581, Mar. 28, 1989; 56 FR 32940, July 17, 1991; 58 FR 42487, Aug. 10, 1993; 60 FR 31207, June 13, 1995; 64 FR 50740, Sept. 20, 1999; 81 FR 50185, July 29, 2016; 89 FR 32064, Apr. 25, 2024]", "(a)  Internal controls.  The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems.\n\n(1)  On-site reviews.  Every school year, each school food authority with more than one school shall perform no less than one on-site review of the counting and claiming system and the readily observable general areas of review cited under \u00a7 210.18(h), as prescribed by FNS for each school under its jurisdiction. The on-site review shall take place prior to February 1 of each school year. Further, if the review discloses problems with a school's meal counting or claiming procedures or general review areas, the school food authority shall: ensure that the school implements corrective action; and, within 45 days of the review, conducts a follow-up on-site review to determine that the corrective action resolved the problems. Each on-site review shall ensure that the school's claim is based on the counting system authorized by the State agency under \u00a7 210.7(c) of this part and that the counting system, as implemented, yields the actual number of reimbursable free, reduced price and paid meals, respectively, served for each day of operation.\n\n(2)  School food authority claims review process.  Prior to the submission of a monthly Claim for Reimbursement, each school food authority shall review the lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid lunches served on any day of operation to children currently eligible for such lunches.\n\n(i) Any school food authority that was found by its most recent administrative review conducted in accordance with \u00a7 210.18, to have no meal counting and claiming violations may:\n\n(A) Develop internal control procedures that ensure accurate meal counts. The school food authority shall submit any internal controls developed in accordance with this paragraph to the State agency for approval and, in the absence of specific disapproval from the State agency, shall implement such internal controls. The State agency shall establish procedures to promptly notify school food authorities of any modifications needed to their proposed internal controls or of denial of unacceptable submissions. If the State agency disapproves the proposed internal controls of any school food authority, it reserves the right to require the school food authority to comply with the provisions of paragraph (a)(3) of this section; or\n\n(B) Comply with the requirements of paragraph (a)(3) of this section.\n\n(ii) Any school food authority that was identified in the most recent administrative review conducted in accordance with \u00a7 210.18, or in any other oversight activity, as having meal counting and claiming violations shall comply with the requirements in paragraph (a)(3) of this section.\n\n(3)  Edit checks.  (i) The following procedure shall be followed for school food authorities identified in paragraph (a)(2)(ii) of this section, by other school food authorities at State agency option, or, at their own option, by school food authorities identified in paragraph (a)(2)(i) of this section: the school food authority shall compare each school's daily counts of free, reduced price and paid lunches against the product of the number of children in that school currently eligible for free, reduced price and paid lunches, respectively, times an attendance factor.\n\n(ii) School food authorities that are identified in administrative reviews conducted in accordance with \u00a7 210.18 as not having meal counting and claiming violations and that are correctly complying with the procedures in paragraph (a)(3)(i) of this section have the option of developing internal controls in accordance with paragraph (a)(2)(i) of this section.\n\n(4)  Follow-up activity.  The school food authority shall promptly follow-up through phone contact, on-site visits or other means when the internal controls used by schools in accordance with paragraph (a)(2)(i) of this section or the claims review process used by schools in accordance with paragraphs (a)(2)(ii) and (a)(3) of this section suggest the likelihood of lunch count problems. When problems or errors are identified, the lunch counts shall be corrected prior to submission of the monthly Claim for Reimbursement. Improvements to the lunch count system shall also be made to ensure that the lunch counting system consistently results in lunch counts of the actual number of reimbursable free, reduced price and paid lunches served for each day of operation.\n\n(5)  Recordkeeping.  School food authorities shall maintain on file, each month's Claim for Reimbursement and all data used in the claims review process, by school. Records shall be retained as specified in \u00a7 210.23(c) of this part. School food authorities shall make this information available to the Department and the State agency upon request.\n\n(b)  Monthly claims.  To be entitled to reimbursement under this part, each school food authority shall submit to the State agency, a monthly Claim for Reimbursement, as described in paragraph (c) of this section.\n\n(1)  Submission timeframes.  A final Claim for Reimbursement shall be postmarked or submitted to the State agency not later than 60 days following the last day of the full month covered by the claim. State agencies may establish shorter deadlines at their discretion. Claims not postmarked and/or submitted within 60 days shall not be paid with Program funds unless otherwise authorized by FNS.\n\n(2)  State agency claims review process.  The State agency shall review each school food authority's Claim for Reimbursement, on a monthly basis, in an effort to ensure that monthly claims are limited to the number of free and reduced price lunches served, by type, to eligible children.\n\n(i) The State agency shall, at a minimum, compare the number of free and reduced price lunches claimed to the number of children approved for free and reduced price lunches enrolled in the school food authority for the month of October times the days of operation times the attendance factor employed by the school food authority in accordance with paragraph (a)(3) of this section or the internal controls used by schools in accordance with paragraph (a)(2)(i) of this section. At its discretion, the State agency may conduct this comparison against data which reflects the number of children approved for free and reduced price lunches for a more current month(s) as collected pursuant to paragraph (c)(2) of this section.\n\n(ii) In lieu of conducting the claims review specified in paragraph (b)(2)(i) of this section, the State agency may conduct alternative analyses for those Claims for Reimbursement submitted by residential child care institutions. Such alternatives analyses shall meet the objective of ensuring that the monthly Claims for Reimbursement are limited to the numbers of free and reduced price lunches served, by type, to eligible children.\n\n(3)  Follow-up activity.  The State agency shall promptly follow-up through phone contact, on-site visits, or other means when the claims review process suggests the likelihood of lunch count problems.\n\n(4)  Corrective action.  The State agency shall promptly take corrective action with respect to any Claim for Reimbursement which includes more than the number of lunches served, by type, to eligible children. In taking corrective action, State agencies may make adjustments on claims filed within the 60-day deadline if such adjustments are completed within 90 days of the last day of the claim month and are reflected in the final Report of School Program Operations (FNS-10) for the claim month required under \u00a7 210.5(d) of this part. Upward adjustments in Program funds claimed which are not reflected in the final FNS-10 for the claim month shall not be made unless authorized by FNS. Except that, upward adjustments for the current and prior fiscal years resulting from any review or audit may be made, at the discretion of the State agency. Downward adjustments in amounts claimed shall always be made, without FNS authorization, regardless of when it is determined that such adjustments are necessary.\n\n(c)  Content of claim.  The Claim for Reimbursement must include data in sufficient detail to justify the reimbursement claimed and to enable the State agency to provide the Report of School Program Operations required under \u00a7 210.5(d). Such data must include, at a minimum, the number of free, reduced price, and paid lunches and afterschool snacks served to eligible children. The claim must be signed by a school food authority official.\n\n(1)  Consolidated claim.  The State agency may authorize a school food authority to submit a consolidated Claim for Reimbursement for all schools under its jurisdiction, provided that, the data on each school's operations required in this section are maintained on file at the local office of the school food authority and the claim separates consolidated data for commodity schools from data for other schools. Unless otherwise approved by FNS, the Claim for Reimbursement for any month must include only lunches and afterschool snacks served in that month except if the first or last month of Program operations for any school year contains 10 operating days or less, such month may be combined with the Claim for Reimbursement for the appropriate adjacent month. However, Claims for Reimbursement may not combine operations occurring in two fiscal years. If a single State agency administers any combination of the Child Nutrition Programs, a school food authority will be able to use a common claim form with respect to claims for reimbursement for meals served under those programs.\n\n(2)  October data.  For the month of October, the State agency must also obtain, either through the Claim for Reimbursement or other means, the total number of children approved for free lunches and afterschool snacks, the total number of children approved for reduced price lunches and afterschool snacks, and the total number of children enrolled in the school food authority as of the last day of operation in October. The school food authority must submit this data to the State agency no later than December 31 of each year. State agencies may establish shorter deadlines at their discretion. In addition, the State agency may require school food authorities to provide this data for a more current month if for use in the State agency claims review process.\n\n(d)  Advance funds.  The State agency may advance funds available for the Program to a school food authority in an amount equal to the amount of reimbursement estimated to be needed for one month's operation. Following the receipt of claims, the State agency will make adjustments, as necessary, to ensure that the total amount of payments received by the school food authority for the fiscal year does not exceed an amount equal to the number of lunches and afterschool snacks by reimbursement type served to children times the respective payment rates assigned by the State in accordance with \u00a7 210.7(b). The State agency must recover advances of funds to any school food authority failing to comply with the 60-day claim submission requirements in paragraph (b) of this section."], ["7:7:4.1.1.1.1.3.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.9 Agreement with State agency.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988]", "(a)  Application.  An official of a school food authority shall make written application to the State agency for any school in which it desires to operate the Program. Applications shall provide the State agency with sufficient information to determine eligibility. The school food authority shall also submit for approval a Free and Reduced Price Policy Statement in accordance with part 245 of this chapter.\n\n(b)  Agreement.  Each school food authority approved to participate in the program shall enter into a written agreement with the State agency that may be amended as necessary. Nothing in the preceding sentence shall be construed to limit the ability of the State agency to suspend or terminate the agreement in accordance with \u00a7 210.25. If a single State agency administers any combination of the Child Nutrition Programs, that State agency shall provide each school food authority with a single agreement with respect to the operation of those programs. The agreement shall contain a statement to the effect that the \u201cSchool Food Authority and participating schools under its jurisdiction, shall comply with all provisions of 7 CFR parts 210 and 245.\u201d This agreement shall provide that each school food authority shall, with respect to participating schools under its jurisdiction:\n\n(1) Maintain a nonprofit school food service and observe the requirements for and limitations on the use of nonprofit school food service revenues set forth in \u00a7 210.14 and the limitations on any competitive school food service as set forth in \u00a7 210.11;\n\n(2) Limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service or such other amount as may be approved in accordance with \u00a7 210.19(a);\n\n(3) Maintain a financial management system as prescribed under \u00a7 210.14(c);\n\n(4) Comply with the requirements of the Department's regulations regarding financial management (2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415);\n\n(5) Serve lunches, during the lunch period, which meet the minimum requirements prescribed in \u00a7 210.10;\n\n(6) Price the lunch as a unit;\n\n(7) Serve lunches free or at a reduced price to all children who are determined by the local educational agency to be eligible for such meals under 7 CFR part 245;\n\n(8) Claim reimbursement at the assigned rates only for reimbursable free, reduced price and paid lunches served to eligible children in accordance with 7 CFR part 210. Agree that the school food authority official signing the claim shall be responsible for reviewing and analyzing meal counts to ensure accuracy as specified in \u00a7 210.8 governing claims for reimbursement. Acknowledge that failure to submit accurate claims will result in the recovery of an overclaim and may result in the withholding of payments, suspension or termination of the program as specified in \u00a7 210.25. Acknowledge that if failure to submit accurate claims reflects embezzlement, willful misapplication of funds, theft, or fraudulent activity, the penalties specified in \u00a7 210.26 shall apply;\n\n(9) Count the number of free, reduced price and paid reimbursable meals served to eligible children at the point of service, or through another counting system if approved by the State agency;\n\n(10) Submit Claims for Reimbursement in accordance with \u00a7 210.8;\n\n(11) Comply with the requirements of the Department's regulations regarding nondiscrimination (7 CFR parts 15, 15a, 15b);\n\n(12) Make no discrimination against any child because of his or her eligibility for free or reduced price meals in accordance with the approved Free and Reduced Price Policy Statement;\n\n(13) Enter into an agreement to receive donated foods as required by 7 CFR part 250;\n\n(14) Maintain, in the storage, preparation and service of food, proper sanitation and health standards in conformance with all applicable State and local laws and regulations, and comply with the food safety requirements of \u00a7 210.13;\n\n(15) Accept and use, in as large quantities as may be efficiently utilized in its nonprofit school food service, such foods as may be offered as a donation by the Department;\n\n(16) Maintain necessary facilities for storing, preparing and serving food;\n\n(17) Upon request, make all accounts and records pertaining to its school food service available to the State agency and to FNS, for audit or review, at a reasonable time and place. Such records shall be retained for a period of 3 years after the date of the final Claim for Reimbursement for the fiscal year to which they pertain, except that if audit findings have not been resolved, the records shall be retained beyond the 3 year period as long as required for resolution of the issues raised by the audit;\n\n(18) Maintain files of currently approved and denied free and reduced price certification documentation.\n\n(19) Maintain direct certification documentation obtained directly from the appropriate State or local agency, or other appropriate individual, as specified by FNS, indicating that:\n\n(i) A child in the  Family,  as defined in \u00a7 245.2 of this chapter, is receiving benefits from  SNAP, FDPIR  or  TANF,  as defined in \u00a7 245.2 of this chapter; if one child is receiving such benefits, all children in that family are considered to be directly certified;\n\n(ii) The child is a homeless child as defined in \u00a7 245.2 of this chapter;\n\n(iii) The child is a runaway child as defined in \u00a7 245.2 of this chapter;\n\n(iv) The child is a migrant child as defined in \u00a7 245.2 of this chapter;\n\n(v) The child is a Head Start child as defined in \u00a7 245.2 of this chapter; or\n\n(vi) The child is a foster child as defined in \u00a7 245.2 of this chapter.\n\n(20) Retain eligibility documentation submitted by families for a period of 3 years after the end of the fiscal year to which they pertain or as otherwise specified under paragraph (b)(17) of this section.\n\n(21) No later than December 31 of each year, provide the State agency with a list of all schools under its jurisdiction in which 50 percent or more of enrolled children have been determined eligible for free or reduced price meals as of the last operating day the preceding October. The State agency may designate a month other than October for the collection of this information, in which case the list must be provided to the State agency within 60 calendar days following the end of the month designated by the State agency. In addition, each school food authority must provide, when available for the schools under its jurisdiction, and upon the request of a sponsoring organization of day care homes of the Child and Adult Care Food Program, information on the boundaries of the attendance areas for the schools identified as having 50 percent or more of enrolled children certified eligible for free or reduced price meals.\n\n(c)  Afterschool care requirements.  Those school food authorities with eligible schools (as defined in \u00a7 210.10(o)(1)) that elect to serve afterschool snacks during afterschool care programs, must agree to:\n\n(1) Serve afterschool snacks which meet the minimum requirements prescribed in \u00a7 210.10;\n\n(2) Price the afterschool snack as a unit;\n\n(3) Serve afterschool snacks free or at a reduced price to all children who are determined by the school food authority to be eligible for free or reduced price school meals under part 245 of this chapter;\n\n(4) If charging for meals, the charge for a reduced price afterschool snack must not exceed 15 cents;\n\n(5) Claim reimbursement at the assigned rates only for afterschool snacks served in accordance with the agreement;\n\n(6) Claim reimbursement for no more than one afterschool snack per child per day;\n\n(7) Review each afterschool care program two times a year; the first review must be made during the first four weeks that the school is in operation each school year, except that an afterschool care program operating year round must be reviewed during the first four weeks of its initial year of operation, once more during its first year of operation, and twice each school year thereafter; and\n\n(8) Comply with all requirements of this part, except that, claims for reimbursement need not be based on \u201cpoint of service\u201d afterschool snack counts (as required by \u00a7 210.9(b)(9))."], ["7:7:4.1.1.1.1.3.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.10 Meal requirements for lunches and requirements for afterschool snacks.", "FNS", "", "", "[77 FR 4143, Jan. 26, 2012, as amended at 78 FR 13448, Feb. 28, 2013; 78 FR 39090, June 28, 2013; 81 FR 24372, Apr. 25, 2016; 81 FR 50185, July 29, 2016; 81 FR 75671, Nov. 1, 2016; 82 FR 56713, Nov. 30, 2017; 83 FR 63789, Dec. 12, 2018; 84 FR 50289, Sept. 25, 2019; 85 FR 7853, Feb. 12, 2020; 85 FR 74847, Nov. 24, 2020; 86 FR 57544, Oct. 18, 2021; 87 FR 4126, Jan. 27, 2022; 87 FR 7005, Feb. 7, 2022; 87 FR 47331, Aug. 3, 2022; 87 FR 52329, Aug. 25, 2022; 89 FR 32065, Apr. 25, 2024]", "(a)  General requirements \u2014(1)  General nutrition requirements.  Schools must offer nutritious, well-balanced, and age-appropriate meals to all the children they serve to improve their diets and safeguard their health.\n\n(i)  Requirements for lunch.  School lunches offered to children age 5 or older must meet, at a minimum, the meal requirements in paragraph (b) of this section. Schools must follow a food-based menu planning approach and produce enough food to offer each child the quantities specified in the meal pattern established in paragraph (c) of this section for each age/grade group served in the school. In addition, school lunches must meet the dietary specifications in paragraph (f) of this section. Schools offering lunches to children ages 1 through 4 and infants must meet the meal pattern requirements in paragraphs (p) and (q) of this section, as applicable. Schools must make plain potable water available and accessible without restriction to children at no charge in the place(s) where lunches are served during the meal service.\n\n(ii)  Requirements for afterschool snacks.  Schools offering afterschool snacks in afterschool care programs must meet the meal pattern requirements in paragraph (o) of this section. Schools must plan and produce enough food to offer each child the minimum quantities under the meal pattern in paragraph (o) of this section.\n\n(2)  Unit pricing.  Schools must price each meal as a unit. Schools need to consider participation trends in an effort to provide one reimbursable lunch and, if applicable, one reimbursable afterschool snack for each child every school day. If there are leftover meals, schools may offer them to the students but cannot get Federal reimbursement for them. Schools must identify, near or at the beginning of the serving line(s), the food items that constitute the unit-priced reimbursable school meal(s). The price of a reimbursable lunch does not change if the student does not take a food item or requests smaller portions.\n\n(3)  Production and menu records.  Schools or school food authorities, as applicable, must keep production and menu records for the meals they produce. These records must show how the meals offered contribute to the required meal components and food quantities for each age/grade group every day. Schools or school food authorities must maintain records of the latest nutritional analysis of the school menus conducted by the State agency. Information on maintaining production and menu records may be found in FNS guidance.\n\n(b)  Meal requirements for school lunches.  School lunches for children ages 5 and older must reflect food and nutrition requirements specified by the Secretary. Compliance with these requirements is measured as follows:\n\n(1) On a daily basis:\n\n(i) Meals offered to each age/grade group must include the meal components and food quantities specified in the meal pattern in paragraph (c) of this section; and\n\n(ii) The meal selected by each student must have the number of meal components required for a reimbursable meal and include at least one fruit or vegetable.\n\n(2) Over a 5-day school week:\n\n(i) Average calorie content of meals offered to each age/grade group must be within the minimum and maximum calorie levels specified in paragraph (f) of this section;\n\n(ii) Average saturated fat content of the meals offered to each age/grade group must be less than 10 percent of total calories;\n\n(iii) By July 1, 2027, average added sugars content of the meals offered to each age/grade group must be less than 10 percent of total calories; and\n\n(iv) Average sodium content of the meals offered to each age/grade group must not exceed the maximum level specified in paragraph (f) of this section.\n\n(c)  Meal pattern for school lunches.  Schools must offer the meal components and quantities required in the lunch meal pattern established in the following table:\n\nTable 1 to Paragraph ( c ) Introductory Text\u2014National School Lunch Program Meal Pattern\n\n1  Food items included in each group and subgroup and amount equivalents.\n\n2  Minimum creditable serving is \n 1/8  cup. One quarter-cup of dried fruit counts as \n 1/2  cup of fruit; 1 cup of leafy greens counts as \n 1/2  cup of vegetables. No more than half of the fruit or vegetable offerings may be in the form of juice. All juice must be 100 percent full-strength.\n\n3  Larger amounts of these vegetables may be served.\n\n4  This subgroup consists of \u201cOther vegetables\u201d as defined in paragraph (c)(2)(ii)(E) of this section. For the purposes of the NSLP, the \u201cOther vegetables\u201d requirement may be met with any additional amounts from the dark green, red/orange, and bean, peas, and lentils vegetable subgroups as defined in paragraph (c)(2)(ii) of this section.\n\n5  Minimum creditable serving is 0.25 oz. eq. At least 80 percent of grains offered weekly (by ounce equivalents) must be whole grain-rich as defined in \u00a7 210.2 and the remaining grains items offered must be enriched.\n\n6  Minimum creditable serving is 0.25 oz. eq.\n\n7  Minimum creditable serving is 8 fluid ounces. All fluid milk must be fat-free (skim) or low-fat (1 percent fat or less) and must meet the requirements in paragraph (d) of this section.\n\n8  By July 1, 2027, schools must meet the dietary specification for added sugars. Schools must meet the sodium limits by the dates specified in this chart. Discretionary sources of calories may be added to the meal pattern if within the dietary specifications.\n\n(1)  Age/grade groups.  Schools must plan menus for students using the following age/grade groups: Grades K-5 (ages 5-10), grades 6-8 (ages 11-13), and grades 9-12 (ages 14-18). If an unusual grade configuration in a school prevents the use of these established age/grade groups, students in grades K-5 and grades 6-8 may be offered the same food quantities at lunch provided that the calorie and sodium standards for each age/grade group are met. No customization of the established age/grade groups is allowed.\n\n(2)  Meal components.  Schools must offer students in each age/grade group the meal components specified in this paragraph (c).\n\n(i)  Fruits component.  Schools must offer fruits daily as part of the lunch menu. Fruits that are fresh, frozen, or dried, or canned in light syrup, water or fruit juice may be offered to meet the requirements of this paragraph (c)(2)(i). All fruits are credited based on their volume as served, except that \n 1/4  cup of dried fruit counts as \n 1/2  cup of fruit. Only pasteurized, full-strength fruit juice may be offered, and may be credited to meet no more than one-half of the fruits component.\n\n(ii)  Vegetables component.  Schools must offer vegetables daily as part of the lunch menu. Fresh, frozen, or canned vegetables and dry beans, peas, and lentils may be offered to meet this requirement. All vegetables are credited based on their volume as served, except that 1 cup of leafy greens counts as \n 1/2  cup of vegetables and tomato paste and puree are credited based on calculated volume of the whole food equivalency. Pasteurized, full-strength vegetable juice may be offered to meet no more than one-half of the vegetables component. Vegetable offerings at lunch over the course of the week must include the following vegetable subgroups, as defined in this section in the quantities specified in the meal pattern in paragraph (c) of this section:\n\n(A)  Dark green vegetables subgroup.  This subgroup includes vegetables such as bok choy, broccoli, collard greens, dark green leafy lettuce, kale, mesclun, mustard greens, romaine lettuce, spinach, turnip greens, and watercress;\n\n(B)  Red/orange vegetables subgroup.  This subgroup includes vegetables such as acorn squash, butternut squash, carrots, pumpkin, tomatoes, tomato juice, and sweet potatoes;\n\n(C)  Beans, peas, and lentils vegetable subgroup.  This subgroup includes vegetables such as black beans, black-eyed peas (mature, dry), garbanzo beans (chickpeas), kidney beans, lentils, navy beans pinto beans, soybeans, split peas, and white beans. Cooked dry beans, peas, and lentils may be counted as either a vegetable or as a meat alternate but not as both in the same dish. When offered toward the protein sources component, beans, peas, and lentils may count toward the weekly beans, peas, and lentils vegetable subgroup requirement, but may not count toward the daily or weekly vegetable component requirement;\n\n(D)  Starchy vegetables subgroup.  This subgroup includes vegetables such as black-eyed peas (not dry), corn, cassava, green bananas, green peas, green lima beans, plantains, taro, water chestnuts, and white potatoes; and\n\n(E)  Other vegetables subgroup.  This subgroup includes all other fresh, frozen, and canned vegetables, cooked or raw, such as artichokes, asparagus, avocados, bean sprouts, beets, Brussels sprouts, cabbage, cauliflower, celery, cucumbers, eggplant, green beans, green peppers, iceberg lettuce, mushrooms, okra, onions, parsnips, turnips, wax beans, and zucchini.\n\n(iii)  Grains component.  Schools must offer grains daily as part of the lunch menu.\n\n(A)  Whole grain-rich requirement.  Whole grain-rich is the term designated by FNS to indicate that the grain content of a product is between 50 and 100 percent whole grain with any remaining grains being enriched. At least 80 percent of grains offered at lunch weekly must, based on ounce equivalents, meet the whole grain-rich criteria as defined in \u00a7 210.2, and the remaining grain items offered must be enriched.\n\n(B)  Breakfast cereals.  By July 1, 2025, breakfast cereals must contain no more than 6 grams of added sugars per dry ounce.\n\n(C)  Desserts.  Schools may count up to two ounce equivalents of grain-based desserts per week toward meeting the grains requirement at lunch. Information on crediting grain-based desserts may be found in FNS guidance.\n\n(D)  Daily and weekly servings.  The grains component is based on minimum daily servings plus total servings over a 5-day school week. Schools serving lunch 6 or 7 days per week must increase the weekly grains quantity by approximately 20 percent (\n 1/5 ) for each additional day. When schools operate less than 5 days per week, they may decrease the weekly quantity by approximately 20 percent (\n 1/5 ) for each day less than 5.\n\n(iv)  Meats/meat alternates component.  Schools must offer meats/meat alternates daily as part of the lunch meal pattern. The quantity of the meat/meat alternate must be the edible portion as served. This component must be served in a main dish or in a main dish and only one other food item. Schools without daily choices in this component should not serve any one meat/meat alternate or form of meat/meat alternate (for example, ground, diced, pieces) more than three times in the same week. If a portion size of this component does not meet the daily requirement for a particular age/grade group, schools may supplement it with another meat/meat alternate to meet the full requirement. Schools may adjust the daily quantities of this component provided that a minimum of one ounce is offered daily to students in grades K-8 and a minimum of two ounces is offered daily to students in grades 9-12, and the total weekly requirement is met over a 5-day period. Information on crediting meats/meat alternates may be found in FNS guidance.\n\n(A)  Enriched macaroni.  Enriched macaroni with fortified protein as defined in appendix A to this part may be used to meet part of the meats/meat alternates requirement when used as specified in appendix A to this part. An enriched macaroni product with fortified protein as defined in appendix A to this part may be used to meet part of the meats/meat alternates component or the grains component but may not meet both food components in the same lunch.\n\n(B)  Nuts and seeds.  Nuts and seeds and their butters are allowed as a meat alternate. Acorns, chestnuts, and coconuts do not credit as meat alternates because of their low protein and iron content. Nut and seed meals or flours may credit only if they meet the requirements for Alternate Protein Products established in appendix A to this part.\n\n(C)  Yogurt.  Yogurt may be offered to meet all or part of the meats/meat alternates component. Yogurt may be plain or flavored, unsweetened or sweetened. By July 1, 2025, yogurt must contain no more than 12 grams of added sugars per 6 ounces (2 grams of added sugars per ounce). Noncommercial and/or non-standardized yogurt products, such as frozen yogurt, drinkable yogurt products, homemade yogurt, yogurt flavored products, yogurt bars, yogurt covered fruits and/or nuts or similar products are not creditable. Four ounces (weight) or \n 1/2  cup (volume) of yogurt is one ounce equivalent of meats/meat alternates.\n\n(D)  Tofu and soy products.  Commercial tofu and soy products may be offered to meet all or part of the meats/meat alternates component. Noncommercial and/or non-standardized tofu and soy products are not creditable.\n\n(E)  Beans, peas, and lentils.  Cooked dry beans, peas, and lentils may be offered to meet all or part of the meats/meat alternates component. Beans, peas, and lentils are identified in this section and include foods such as black beans, garbanzo beans, lentils, kidney beans, mature lima beans, navy beans, pinto beans, and split peas. Cooked dry beans, peas, and lentils may be counted as either a vegetable or as a meat alternate but not as both in the same dish. When offered as a meat alternate, beans, peas, and lentils may count toward the weekly beans, peas, and lentils vegetable subgroup requirement, but may not count toward the daily or weekly vegetable component requirements.\n\n(F)  Other meat alternates.  Other meat alternates, such as cheese and eggs, may be used to meet all or part of the meats/meat alternates component.\n\n(v)  Fluid milk component.  Fluid milk must be offered daily in accordance with paragraph (d) of this section.\n\n(3)  Grain substitutions.  (i) Schools in American Samoa, Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands may serve any vegetable, including vegetables such as breadfruit, prairie turnips, plantains, sweet potatoes, and yams, to meet the grains component.\n\n(ii) School food authorities and schools that are tribally operated, operated by the Bureau of Indian Education, and that serve primarily American Indian or Alaska Native children, may serve any vegetable, including vegetables such as breadfruit, prairie turnips, plantains, sweet potatoes, and yams, to meet the grains component.\n\n(4)  Adjustments to school menus.  Schools must adjust future menu cycles to reflect production and how often food items are offered. Schools may need to change the foods offerings given students' selections and may need to modify recipes and other specifications to make sure that meal requirements are met.\n\n(5)  Standardized recipes.  All schools must develop and follow standardized recipes. A standardized recipe is a recipe that was tested to provide an established yield and quantity using the same ingredients for both measurement and preparation methods. Standardized recipes developed by USDA/FNS are in the Child Nutrition Database. If a school has its own recipes, they may seek assistance from the State agency or school food authority to standardize the recipes. Schools must add any local recipes to their local databases. Additional information may be found in FNS guidance.\n\n(6)  Processed foods.  The Child Nutrition Database includes a number of processed foods. Schools may use purchased processed foods that are not in the Child Nutrition Database. Schools or the State agency must add any locally purchased processed foods to their local database. The State agencies must obtain the levels of calories, saturated fat, added sugars, and sodium in the processed foods. Additional information may be found in FNS guidance.\n\n(7)  Traditional Indigenous foods.  Traditional Indigenous foods may credit toward the required meal components. Information on food crediting may be found in FNS guidance. Schools are encouraged to serve traditional Indigenous foods as part of their lunch and afterschool snack service. Per the Agriculture Improvement Act of 2014, as amended (25 U.S.C. 1685(b)(5)) traditional foods means food that has traditionally been prepared and consumed by an American Indian tribe, including wild game meat; fish; seafood; marine mammals; plants; and berries.\n\n(d)  Fluid milk requirements \u2014(1)  Types of fluid milk.  (i) Schools must offer students a variety (at least two different options) of fluid milk at lunch daily. All milk must be fat-free (skim) or low-fat (1 percent fat or less). Milk with higher fat content is not creditable. Low-fat or fat-free lactose-free and reduced-lactose fluid milk may also be offered.\n\n(ii) All fluid milk served in the Program must be pasteurized fluid milk which meets State and local standards for such milk. All fluid milk must have vitamins A and D at levels specified by the Food and Drug Administration and must be consistent with State and local standards for such milk.\n\n(iii) Milk varieties may be unflavored or flavored, provided that unflavored milk is offered at each meal service. By July 1, 2025, flavored milk must contain no more than 10 grams of added sugars per 8 fluid ounces, or for flavored milk sold as competitive food for middle and high schools, 15 grams of added sugars per 12 fluid ounces.\n\n(2)  Fluid milk substitutes for non-disability reasons.  School food authorities may offer fluid milk substitutes to students with dietary needs that are not disabilities. For disability-related meal modifications, see paragraph (m) of this section.\n\n(i) Prior to providing a fluid milk substitute for a non-disability reason, a school food authority must obtain a written request from the student's parent or guardian, a State licensed healthcare professional, or a registered dietitian that identifies the reason for the substitute. A school food authority choosing to offer fluid milk substitutes for a non-disability reason is not required to offer the specific fluid milk substitutes requested but may offer the fluid milk substitutes of its choice, provided the fluid milk substitutes offered meet the requirements of paragraph (d)(2)(ii) of this section. A school food authority must inform the State agency if any schools choose to offer fluid milk substitutes for non-disability reasons.\n\n(ii) If a school food authority chooses to offer one or more fluid milk substitutes for non-disability reasons, the fluid milk substitutes must provide, at a minimum, the nutrients listed in the following table. Fluid milk substitutes must be fortified in accordance with fortification guidelines issued by the Food and Drug Administration.\n\nTable 2 to Paragraph ( d )(2)( ii )\u2014Nutrient Requirements for Fluid Milk Substitutes\n\n(iii) Expenses incurred when providing fluid milk substitutes that exceed program reimbursements must be paid by the school food authority; costs may be paid from the nonprofit school food service account.\n\n(iv) The fluid milk substitute approval must remain in effect until the student's parent or guardian, the State licensed healthcare professional, or the registered dietitian revokes the request in writing, or until the school food authority changes its fluid milk substitute policy.\n\n(3)  Inadequate fluid milk supply.  If a school food authority cannot get a supply of fluid milk, it can still participate in the Program under the following conditions:\n\n(i) If emergency conditions temporarily prevent a school food authority that normally has a supply of fluid milk from obtaining delivery of such milk, the State agency may allow the school food authority to serve meals during the emergency period with an alternate form of fluid milk or without fluid milk.\n\n(ii) If a school food authority is unable to obtain a supply of any type of fluid milk on a continuing basis, the State agency may approve the service of meals without fluid milk if the school food authority uses an equivalent amount of canned milk or dry milk in the preparation of the meals. In Alaska, American Samoa, Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands, if a sufficient supply of fluid milk cannot be obtained, \u201cfluid milk\u201d includes reconstituted or recombined fluid milk, or as otherwise allowed by FNS through a written exception.\n\n(4)  Restrictions on the sale of fluid milk.  A school food authority participating in the Program, or a person approved by a school food authority participating in the Program, must not directly or indirectly restrict the sale or marketing of fluid milk (as identified in paragraph (d)(1) of this section) at any time or in any place on school premises or at any school-sponsored event.\n\n(e)  Offer versus serve for grades K through 12.  School lunches must offer daily the five meal components specified in the meal pattern in paragraph (c) of this section. Under offer versus serve, students must be allowed to decline two components at lunch,  except that  the students must select at least 1/2 cup of either the fruit or vegetable component. Senior high schools (as defined by the State educational agency) must participate in offer versus serve. Schools below the senior high level may participate in offer versus serve at the discretion of the school food authority.\n\n(f)  Dietary specifications \u2014(1)  Calories.  School lunches offered to each age/grade group must meet, on average over the school week, the minimum and maximum calorie levels specified in the following table:\n\nTable 3 to Paragraph ( f )(1)\u2014National School Lunch Program Calorie Ranges\n\n1  The average daily calories must fall within the minimum and maximum levels. Discretionary sources of calories may be added to the meal pattern if within the dietary specifications.\n\n(2)  Saturated fat.  School lunches offered to all age/grade groups must, on average over the school week, provide less than 10 percent of total calories from saturated fat.\n\n(3)  Added sugars.  By July 1, 2027, school lunches offered to all age/grade groups must, on average over the school week, provide less than 10 percent of total calories from added sugars.\n\n(4)  Sodium.  School lunches offered to each age/grade group must meet, on average over the school week, the sodium limits specified in the following table within the established deadlines:\n\nTable 4 to Paragraph ( f )(4)\u2014National School Lunch Program Sodium Limits\n\n(g)  Compliance assistance.  The State agency and school food authority must provide technical assistance and training to assist schools in planning lunches that meet the meal pattern in paragraph (c) of this section; the dietary specifications established in paragraph (f) of this section; and the meal pattern requirements in paragraphs (o) through (q) of this section, as applicable. Compliance assistance may be offered during trainings, onsite visits, and/or administrative reviews.\n\n(h)  Monitoring dietary specifications.  When required by the Administrative Review process set forth in \u00a7 210.18, the State agency must conduct a weighted nutrient analysis to evaluate the average levels of calories, saturated fat, added sugars, and sodium of the lunches offered to students in grades K-12 during one week of the review period. The nutrient analysis must be conducted in accordance with the procedures established in paragraph (i)(3) of this section. If the results of the nutrient analysis indicate that school lunches do not meet the specifications for calories, saturated fat, added sugars, and sodium specified in paragraph (f) of this section, the State agency or school food authority must provide technical assistance and require the reviewed school to take corrective action to meet the requirements.\n\n(i)  Nutrient analyses of school meals \u2014(1)  Conducting the nutrient analysis.  Any nutrient analysis, whether conducted by the State agency under \u00a7 210.18 or by the school food authority, must be performed in accordance with the procedures established in paragraph (i)(3) of this section. The purpose of the nutrient analysis is to determine the average levels of calories, saturated fat, added sugars, and sodium in the meals offered to each age grade group over a school week. The weighted nutrient analysis must be performed as required by FNS guidance.\n\n(2)  Software elements \u2014(i)  The Child Nutrition Database.  The nutrient analysis is based on the USDA Child Nutrition Database. This database is part of the software used to do a nutrient analysis. Software companies or others developing systems for schools may contact FNS for more information about the database.\n\n(ii)  Software evaluation.  FNS or an FNS designee evaluates any nutrient analysis software before it may be used in schools. FNS or its designee determines if the software, as submitted, meets the minimum requirements. The approval of software does not mean that FNS or USDA endorses it. The software must be able to perform a weighted average analysis after the basic data is entered. The combined analysis of the lunch and breakfast programs is not allowed.\n\n(3)  Nutrient analysis procedures \u2014(i)  Weighted averages.  The nutrient analysis must include all foods offered as part of the reimbursable meals during one week within the review period. Foods items are included based on the portion sizes and serving amounts. They are also weighted based on their proportionate contribution to the meals offered. This means that food items offered more frequently are weighted more heavily than those not offered as frequently. The weighted nutrient analysis must be performed as required by FNS guidance.\n\n(ii)  Analyzed nutrients.  The analysis determines the average levels of calories, saturated fat, added sugars, and sodium in the meals offered over a school week. It includes all food items offered by the reviewed school over a one-week period.\n\n(4)  Comparing the results of the nutrient analysis.  Once the procedures in paragraph (i)(3) of this section are completed, State agencies must compare the results of the analysis to the calorie, saturated fat, added sugars, and sodium levels established in \u00a7 210.10 or \u00a7 220.8 of this chapter, as appropriate, for each age/grade group to evaluate the school's compliance with the dietary specifications.\n\n(j)  Responsibility for monitoring meal requirements.  Compliance with the meal requirements in paragraph (b) of this section, including the dietary specifications, and paragraphs (o) through (q) of this section, as applicable, will be monitored by the State agency through administrative reviews authorized in \u00a7 210.18.\n\n(k)  Menu choices at lunch \u2014(1)  Availability of choices.  Schools may offer children a selection of nutritious foods within a reimbursable lunch to encourage the consumption of a variety of foods. Children who are eligible for free or reduced price lunches must be allowed to take any reimbursable lunch or any choices offered as part of a reimbursable lunch. Schools may establish different unit prices for each reimbursable lunch offered provided that the benefits made available to children eligible for free or reduced price lunches are not affected.\n\n(2)  Opportunity to select.  Schools that choose to offer a variety of reimbursable lunches, or provide multiple serving lines, must make all required meal components available to all students, on every lunch line, in at least the minimum required amounts.\n\n(l)  Requirements for lunch periods \u2014(1)  Timing.  Schools must offer lunches meeting the requirements of this section during the period the school has designated as the lunch period. Schools must offer lunches between 10 a.m. and 2 p.m. Schools may request an exemption from these times from the State agency. With State agency approval, schools may serve lunches to children under age 5 over two service periods. Schools may divide quantities and food items offered each time any way they wish.\n\n(2)  Adequate lunch periods.  FNS encourages schools to provide sufficient lunch periods that are long enough to give all students adequate time to be served and to eat their lunches.\n\n(m)  Modifications and variations in reimbursable meals and afterschool snacks \u2014(1)  Modifications for disability reasons.  School food authorities must make meal modifications, including substitutions in lunches and afterschool snacks, for children with a disability and whose disability restricts their diet. The modification requested must be related to the disability or limitations caused by the disability and must be offered at no additional cost to the child or household.\n\n(i) In order to receive Federal reimbursement when a modified meal does not meet the meal pattern requirements specified in this section, the school food authority must obtain from the household a written medical statement signed by a State licensed healthcare professional. By July 1, 2025, school food authorities must also accept a medical statement signed by a registered dietitian. The medical statement must provide sufficient information about the child's dietary restrictions, such as foods to be omitted and recommended alternatives, if appropriate. Modified meals that meet the meal pattern requirements in this section are reimbursable with or without a medical statement.\n\n(ii) School food authorities must ensure that parents, guardians, and children have notice of the procedure for requesting meal modifications for disabilities and the process for procedural safeguards related to meal modifications for disabilities. See \u00a7\u00a7 15b.6(b) and 15b.25 of this title.\n\n(iii) Expenses incurred when making meal modifications that exceed program reimbursement rates must be paid by the school food authority; costs may be paid from the nonprofit food service account.\n\n(2)  Variations for non-disability reasons.  School food authorities should consider children's dietary preferences when planning and preparing meals and afterschool snacks. Any variations must be consistent with the meal pattern requirements specified under this section. Expenses incurred from meal pattern variations that exceed program reimbursement rates must be paid by the school food authority; costs may be paid from the nonprofit food service account.\n\n(3)  Exceptions for natural disasters.  If there is a natural disaster or other catastrophe, FNS may temporarily allow school food authorities to serve meals for reimbursement that do not meet the requirements in this section.\n\n(n)  Nutrition disclosure.  To the extent that school food authorities identify foods in a menu, or on the serving line or through other communications with program participants, school food authorities must identify products or dishes containing more than 30 parts fully hydrated alternate protein products (as specified in appendix A of this part) to less than 70 parts beef, pork, poultry or seafood on an uncooked basis, in a manner which does not characterize the product or dish solely as beef, pork, poultry or seafood. Additionally, FNS encourages schools to inform the students, parents, and the public about efforts they are making to meet the meal requirements for school lunches.\n\n(o)  Afterschool snacks.  Eligible schools operating afterschool care programs may be reimbursed for one afterschool snack served to a child (as defined in \u00a7 210.2) per day.\n\n(1)  Eligible schools  means schools that:\n\n(i) Operate the National School Lunch Program; and\n\n(ii) Sponsor afterschool care programs as defined in \u00a7 210.2.\n\n(2)  Afterschool snack requirements for K-12 children \u2014(i)  Afterschool snacks served to K through 12 children.  Schools serving afterschool snacks to K-12 children must serve the meal components and quantities required in the snack meal pattern established for the Child and Adult Care Food Program, under \u00a7 226.20 of this chapter. In addition, schools serving afterschool snacks to K-12 children must comply with the requirements set forth in paragraphs (a), (c)(3) and (4), (d)(2) through (4), (g), and (m) of this section, as applicable, and \u00a7 226.20(d) of this chapter.\n\n(ii)  Afterschool snack meal pattern table for K through 12 children.  Through June 30, 2025, afterschool snacks must either follow the requirements outlined in the following table or must contain two different components from the following four: fluid milk, meats/meat alternates, vegetable or fruit, and/or grains. By July 1, 2025, the minimum amounts of meal components to be served at afterschool snack are as follows:\n\nTable 5 to Paragraph ( o )(2)( ii )\u2014Afterschool Snack Meal Pattern for K-12 Children\n\n[Ages 6-18]\n\n1  Must serve two of the five components for a reimbursable afterschool snack. Only one of the two components may be a beverage.\n\n2  May need to serve larger portions to children ages 13 through 18 to meet their nutritional needs.\n\n3  Must be fat-free (skim) or low-fat (1 percent fat or less). Milk may be unflavored or flavored.\n\n4  Alternate protein products must meet the requirements in appendix A to part 226 of this chapter. Yogurt must contain no more than 12 grams of added sugars per 6 ounces (2 grams of added sugars per ounce). Information on crediting meats/meat alternates may be found in FNS guidance.\n\n5  Juice must be pasteurized, full-strength juice. No more than half of the weekly fruit or vegetable offerings may be in the form of juice.\n\n6  At least 80 percent of grains offered weekly (by ounce equivalents) must be whole grain-rich, as defined in \u00a7 210.2, and the remaining grains items offered must be enriched. Grain-based desserts may not be used to meet the grains requirement. Breakfast cereal must have no more than 6 grams of added sugars per dry ounce. Information on crediting grain items may be found in FNS guidance.\n\n(3)  Afterschool snack requirements for preschoolers \u2014(i)  Afterschool snacks served to preschoolers.  Schools serving afterschool snacks to preschoolers must serve the food components and quantities required in the snack meal pattern established for the Child and Adult Care Food Program, under \u00a7 226.20 of this chapter. In addition, schools serving afterschool snacks to preschoolers must comply with the requirements set forth in paragraphs (a), (c)(3) and (4), (d)(2) through (4), (g), and (m) of this section, as applicable, and \u00a7 226.20(d) of this chapter.\n\n(ii)  Preschooler afterschool snack meal pattern table.  The minimum amounts of food components to be served at afterschool snack are as follows:\n\nTable 5 to Paragraph ( o )(3)( ii )\u2014Afterschool Snack Meal Pattern for Preschoolers\n\n[Select two of the five components for a reimbursable snack]\n\n1  Must serve two of the five components for a reimbursable afterschool snack. Only one of the two components may be a beverage.\n\n2  Must be unflavored whole milk for children age one. Must be unflavored low-fat (1 percent) or unflavored fat-free (skim) milk for children two through five years old.\n\n3  Alternate protein products must meet the requirements in appendix A to part 226 of this chapter. Through September 30, 2025, yogurt must contain no more than 23 grams of total sugars per 6 ounces. By October 1, 2025, yogurt must contain no more than 12 grams of added sugars per 6 ounces (2 grams of added sugars per ounce). Information on crediting meats/meat alternates may be found in FNS guidance.\n\n4  Pasteurized full-strength juice may only be offered to meet the vegetable or fruit requirement at one meal, including snack, per day.\n\n5  At least one serving per day, across all eating occasions, must be whole grain-rich. Grain-based desserts do not count toward meeting the grains requirement. Through September 30, 2025, breakfast cereals must contain no more than 6 grams of total sugars per dry ounce. By October 1, 2025, breakfast cereals must contain no more than 6 grams of added sugars per dry ounce.\n\n(4)  Afterschool snack requirements for infants \u2014(i)  Afterschool snacks served to infants.  Schools serving afterschool snacks to infants ages birth through 11 months must serve the meal components and quantities required in the snack meal pattern established for the Child and Adult Care Food Program, under \u00a7 226.20 of this chapter. In addition, schools serving afterschool snacks to infants must comply with the requirements set forth in paragraphs (a), (c)(3) and (4), (g), and (m) of this section, as applicable, and \u00a7 226.20(d) of this chapter.\n\n(ii)  Infant afterschool snack meal pattern table.  The minimum amounts of meal components to be served at snack are as follows:\n\nTable 6 to Paragraph ( o )(4)(ii)\u2014Infant Afterschool Snack Meal Pattern\n\n1  Breast milk or formula, or portions of both, must be served; however, it is recommended that breast milk be served from birth through 11 months. For some breastfed infants who regularly consume less than the minimum amount of breast milk per feeding, a serving of less than the minimum amount of breast milk may be offered, with additional breast milk offered at a later time if the infant will consume more.\n\n2  Infant formula and dry infant cereal must be iron-fortified.\n\n3  A serving of grains must be whole grain-rich, enriched meal, enriched flour, bran, or germ.\n\n4  Information on crediting grain items may be found in FNS guidance.\n\n5  Through September 30, 2025, breakfast cereals must contain no more than 6 grams of total sugars per dry ounce. By October 1, 2025, breakfast cereals must contain no more than 6 grams of added sugars per dry ounce.\n\n6  A serving of this component is required when the infant is developmentally ready to accept it.\n\n7  Fruit and vegetable juices must not be served.\n\n(5)  Monitoring afterschool snacks.  Compliance with the requirements of this paragraph (o)(5) is monitored by the State agency as part of the Administrative Review conducted under \u00a7 210.18. If snacks offered do not meet the requirements of this paragraph, the State agency or school food authority must provide technical assistance and require corrective action and when applicable, must take fiscal action, as authorized in \u00a7\u00a7 210.18(l) and 210.19(c).\n\n(p)  Lunch requirements for preschoolers \u2014(1)  Lunches served to preschoolers.  Schools serving lunches to preschoolers under the National School Lunch Program must serve the meal components and quantities required in the lunch meal pattern established for the Child and Adult Care Food Program, under \u00a7 226.20(a), (c)(2), and (d) of this chapter. In addition, schools serving lunches to this age group must comply with the requirements set forth in paragraphs (a), (c)(3) and (4), (d)(2) through (4), (g), and (k) through (m) of this section.\n\n(2)  Preschooler lunch meal pattern table.  The minimum amounts of meal components to be served at lunch are as follows:\n\nTable 7 to Paragraph ( p )(2)\u2014Preschool Lunch Meal Pattern\n\n[Select the appropriate components for a reimbursable meal]\n\n1  Must serve all five components for a reimbursable meal.\n\n2  Must serve unflavored whole milk to children age 1.\n\n3  Must serve unflavored milk to children 2 through 5 years old. The milk must be fat-free, skim, low-fat, or 1 percent or less.\n\n4  Alternate protein products must meet the requirements in appendix A to part 226 of this chapter. Through September 30, 2025, yogurt must contain no more than 23 grams of total sugars per 6 ounces. By October 1, 2025, yogurt must contain no more than 12 grams of added sugars per 6 ounces (2 grams of added sugars per ounce). Information on crediting meats/meat alternates may be found in FNS guidance.\n\n5  Juice must be pasteurized. Full-strength juice may only be offered to meet the vegetable or fruit requirement at one meal or snack, per day. Vegetables may be offered to meet the entire fruits requirement. When two vegetables are served at lunch or supper, two different kinds of vegetables must be served.\n\n6  Must serve at least one whole grain-rich serving, across all eating occasions, per day. Grain-based desserts may not be offered to meet the grains requirement. Through September 30, 2025, breakfast cereals must contain no more than 6 grams of total sugars per dry ounce. By October 1, 2025, breakfast cereal must have no more than 6 grams of added sugars per dry ounce. Information on crediting grain items may be found in FNS guidance.\n\n(q)  Lunch requirements for infants \u2014(1)  Lunches served to infants.  Schools serving lunches to infants ages birth through 11 months under the National School Lunch Program must serve the meal components and quantities required in the lunch meal pattern established for the Child and Adult Care Food Program, under \u00a7 226.20(a), (b), and (d) of this chapter. In addition, schools serving lunches to infants must comply with the requirements set forth in paragraphs (a), (c)(3) and (4), (g), (l), and (m) of this section.\n\n(2)  Infant lunch meal pattern table.  The minimum amounts of meal components to be served at lunch are as follows:\n\nTable 8 to Paragraph ( q )(2)\u2014Infant Lunch Meal Pattern\n\n1  Breast milk or formula, or portions of both, must be served; however, it is recommended that breast milk be served from birth through 11 months. For some breastfed infants who regularly consume less than the minimum amount of breast milk per feeding, a serving of less than the minimum amount of breast milk may be offered, with additional breast milk offered at a later time if the infant will consume more.\n\n2  Infant formula and dry infant cereal must be iron-fortified.\n\n3  Information on crediting grain items may be found in FNS guidance.\n\n4  Through September 30, 2025, yogurt must contain no more than 23 grams of total sugars per 6 ounces. By October 1, 2025, yogurt must contain no more than 12 grams of added sugars per 6 ounces (2 grams of added sugars per ounce).\n\n5  A serving of this component is required when the infant is developmentally ready to accept it.\n\n6  Fruit and vegetable juices must not be served.\n\n(r)  Severability.  If any provision of this section is held to be invalid or unenforceable by its terms, or as applied to any person or circumstances, it shall be severable from this section and not affect the remainder thereof. In the event of such holding of invalidity or unenforceability of a provision, the meal pattern requirement covered by that provision reverts to the version that immediately preceded the invalidated provision."], ["7:7:4.1.1.1.1.3.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.11 Competitive food service and standards.", "FNS", "", "", "[78 FR 39091, June 28, 2013, as amended at 81 FR 50151, July 29, 2016; 82 FR 56714, Nov. 30, 2017; 83 FR 63790, Dec. 12, 2018; 85 FR 74848, Nov. 24, 2020; 87 FR 7006, Feb. 7, 2022; 89 FR 32072, Apr. 25, 2024]", "(a)  Definitions.  For the purpose of this section:\n\n(1)  Combination foods  means products that contain two or more components representing two or more of the recommended food groups: fruit, vegetable, dairy, protein or grains.\n\n(2)  Competitive food  means all food and beverages other than meals reimbursed under programs authorized by the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966 available for sale to students on the  School campus  during the  School day.\n\n(3)  Entr\u00e9e item  means an item that is intended as the main dish in a reimbursable meal and is either:\n\n(i) A combination food of a meat/meat alternate and a grain;\n\n(ii) A combination food of a vegetable or fruit and a meat/meat alternate;\n\n(iii) A meat/meat alternate alone with the exception of yogurt, low-fat or reduced fat cheese, nuts, seeds and nut or seed butters, and meat snacks (such as dried beef jerky); or\n\n(iv) A grain only entr\u00e9e that is served as the main dish in a school breakfast.\n\n(4)  School campus  means, for the purpose of competitive food standards implementation, all areas of the property under the jurisdiction of the school that are accessible to students during the school day.\n\n(5)  School day  means, for the purpose of competitive food standards implementation, the period from the midnight before, to 30 minutes after the end of the official school day.\n\n(6)  Paired exempt foods  mean food items that have been designated as exempt from one or more of the nutrient requirements individually which are packaged together without any additional ingredients. Such \u201cpaired exempt foods\u201d retain their individually designated exemption for total fat, saturated fat, and/or sugar when packaged together and sold but are required to meet the designated calorie and sodium standards specified in \u00a7\u00a7 210.11(i) and (j) at all times.\n\n(7)  Bean dip  means, for the purpose of competitive food standards, a spread made from ground pulses (beans, peas, and/or lentils), along with one or more of the following optional ingredients:\n\n(i) Ground nut/seed butter (such as tahini [ground sesame] or peanut butter).\n\n(ii) Vegetable oil (such as olive oil, canola oil, soybean oil).\n\n(iii) Seasoning (such as salt, citric acid).\n\n(iv) Vegetables and juice for flavor (such as olives, roasted pepper, garlic, lemon juice).\n\n(v) For manufactured bean dip, contains ingredients necessary as preservatives and/or to maintain freshness.\n\n(b)  General requirements for competitive food.  (1)  State and local educational agency policies.  State agencies and/or local educational agencies must establish such policies and procedures as are necessary to ensure compliance with this section. State agencies and/or local educational agencies may impose additional restrictions on competitive foods, provided that they are not inconsistent with the requirements of this part.\n\n(2)  Recordkeeping.  The local educational agency is responsible for the maintenance of records that document compliance with the nutrition standards for all competitive food available for sale to students in areas under its jurisdiction that are outside of the control of the school food authority responsible for the service of reimbursable school meals. In addition, the local educational agency is responsible for ensuring that organizations designated as responsible for food service at the various venues in the schools maintain records in order to ensure and document compliance with the nutrition requirements for the foods and beverages sold to students at these venues during the school day as required by this section. The school food authority is responsible for maintaining records documenting compliance with these for foods sold under the auspices of the nonprofit school food service. At a minimum, records must include receipts, nutrition labels and/or product specifications for the competitive food available for sale to students.\n\n(3)  Applicability.  The nutrition standards for the sale of competitive food outlined in this section apply to competitive food for all programs authorized by the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966 operating on the school campus during the school day.\n\n(4)  Fundraiser restrictions.  Competitive food and beverage items sold during the school day must meet the nutrition standards for competitive food as required in this section. A special exemption is allowed for the sale of food and/or beverages that do not meet the competitive food standards as required in this section for the purpose of conducting an infrequent school-sponsored fundraiser. Such specially exempted fundraisers must not take place more than the frequency specified by the State agency during such periods that schools are in session. No specially exempted fundraiser foods or beverages may be sold in competition with school meals in the food service area during the meal service.\n\n(c)  General nutrition standards for competitive food.  (1)  General requirement.  At a minimum, all competitive food sold to students on the school campus during the school day must meet the nutrition standards specified in this section. These standards apply to items as packaged and served to students.\n\n(2)  General nutrition standards.  To be allowable, a competitive food item must:\n\n(i) Meet all of the competitive food nutrient standards as outlined in this section; and\n\n(ii) Be a grain product that contains 50 percent or more whole grains by weight or have as the first ingredient a whole grain; or\n\n(iii) Have as the first ingredient one of the non-grain major food groups: fruits, vegetables, dairy or protein foods (meat, beans, poultry, seafood, eggs, nuts, seeds, etc.); or\n\n(iv) Be a combination food that contains \n 1/4  cup of fruit and/or vegetable; or\n\n(v) If water is the first ingredient, the second ingredient must be one of the food items in paragraphs (c)(2)(ii), (iii) or (iv) of this section.\n\n(3)  Exemptions.  (i)  Entr\u00e9e items offered as part of the lunch or breakfast program.  Any entr\u00e9e item offered as part of the lunch program or the breakfast program under 7 CFR Part 220 is exempt from all competitive food standards if it is offered as a competitive food on the day of, or the school day after, it is offered in the lunch or breakfast program. Exempt entr\u00e9e items offered as a competitive food must be offered in the same or smaller portion sizes as in the lunch or breakfast program. Side dishes offered as part of the lunch or breakfast program and served \u00e0 la carte must meet the nutrition standards in this section.\n\n(ii)  Sugar-free chewing gum.  Sugar-free chewing gum is exempt from all of the competitive food standards in this section and may be sold to students on the school campus during the school day, at the discretion of the local educational agency.\n\n(d)  Fruits and vegetables.  (1) Fresh, frozen and canned fruits with no added ingredients except water or packed in 100 percent fruit juice or light syrup or extra light syrup are exempt from the nutrient standards included in this section.\n\n(2) Fresh and frozen vegetables with no added ingredients except water and canned vegetables that are low sodium or no salt added that contain no added fat are exempt from the nutrient standards included in this section.\n\n(e)  Grain products.  Grain products acceptable as a competitive food must include 50 percent or more whole grains by weight or have whole grain as the first ingredient. Grain products must meet all of the other nutrient standards included in this section.\n\n(f)  Total fat and saturated fat.  (1)  General requirements.  (i) The total fat content of a competitive food must be not more than 35 percent of total calories from fat per item as packaged or served, except as specified in paragraphs (f)(2) and (3) of this section.\n\n(ii) The saturated fat content of a competitive food must be less than 10 percent of total calories per item as packaged or served, except as specified in paragraph (f)(3) of this section.\n\n(2)  Exemptions to the total fat requirement.  (i) Seafood with no added fat is exempt from the total fat requirement, but subject to the saturated fat, sugar, calorie, and sodium standards.\n\n(ii) Bean dip (as defined in paragraph (a)(7) of this section), is exempt from the total fat standard, but subject to the saturated fat, sugar, calorie, and sodium standards. This exemption does not apply to combination products that contain bean dip with other ingredients such as crackers, pretzels, pita, manufactured, snack-type vegetable and/or fruit sticks.\n\n(3)  Exemptions to the total fat and saturated fat requirements.  (i) Reduced fat cheese and part skim mozzarella cheese are exempt from the total fat and saturated fat standards, but subject to the sugar, calorie, and sodium standards. This exemption does not apply to combination foods.\n\n(ii) Nuts and seeds and nut/seed butters are exempt from the total fat and saturated fat standards, but subject to the sugar, calorie, and sodium standards. This exemption does not apply to combination products that contain nuts, seeds, or nut/seed butters with other ingredients, such as peanut butter and crackers, trail mix, or chocolate covered peanuts.\n\n(iii) Products that consist of only dried fruit with nuts and/or seeds with no added nutritive sweeteners or fat are exempt from the total fat, saturated fat, and sugar standards, but subject to the calorie and sodium standards.\n\n(iv) Whole eggs with no added fat are exempt from the total fat and saturated fat standards, but subject to the calorie and sodium standards.\n\n(g)  Total sugars.  (1)  General requirement.  The total sugar content of a competitive food must be not more than 35 percent of  weight  per item as packaged or served, except as specified in paragraph (h)(2) of this section.\n\n(2)  Exemptions to the total sugar requirement.  (i) Dried whole fruits or vegetables; dried whole fruit or vegetable pieces; and dehydrated fruits or vegetables with no added nutritive sweeteners are exempt from the sugar standard, but subject to the total fat, saturated fat, calorie, and sodium standards. There is also an exemption from the sugar standard for dried fruits with nutritive sweeteners that are required for processing and/or palatability purposes.\n\n(ii) Products that consist of only dried fruit with nuts and/or seeds with no added nutritive sweeteners or fat are exempt from the total fat, saturated fat, and sugar standards, but subject to the calorie and sodium standards.\n\n(h)  Calorie and sodium content for snack items and side dishes sold as competitive foods.  Snack items and side dishes sold as competitive foods must have not more than 200 calories and 200 mg of sodium per item as packaged or served, including the calories and sodium contained in any added accompaniments such as butter, cream cheese, salad dressing, etc., and must meet all of the other nutrient standards in this section. These snack items and side dishes must have not more than 200 calories and 200 mg of sodium per item as packaged or served.\n\n(i)  Calorie and sodium content for entr\u00e9e items sold as competitive foods.  Entr\u00e9e items sold as competitive foods, other than those exempt from the competitive food nutrition standards in paragraph (c)(3)(i) of this section, must have not more than 350 calories and 480 mg of sodium per item as packaged or served, including the calories and sodium contained in any added accompaniments such as butter, cream cheese, salad dressing, etc., and must meet all of the other nutrient standards in this section.\n\n(j)  Caffeine.  Foods and beverages available to elementary and middle school-aged students must be caffeine-free, with the exception of trace amounts of naturally occurring caffeine substances. Foods and beverages available to high school-aged students may contain caffeine.\n\n(k)  Accompaniments.  The use of accompaniments is limited when competitive food is sold to students in school. The accompaniments to a competitive food item must be included in the nutrient profile as a part of the food item served in determining if an item meets all of the nutrition standards for competitive food as required in this section. The contribution of the accompaniments may be based on the average amount of the accompaniment used per item at the site.\n\n(l)  Beverages \u2014(1)  Elementary schools.  Allowable beverages for elementary school-aged students are limited to:\n\n(i) Plain water or plain carbonated water (no size limit);\n\n(ii) Milk and fluid milk substitutes that meet the requirements outlined in \u00a7 210.10(d)(1) and (2) (no more than 8 fluid ounces); and\n\n(iii) One hundred (100) percent fruit/vegetable juice, and 100 percent fruit/vegetable juice diluted with water, with or without carbonation and with no added sweeteners (no more than 8 fluid ounces).\n\n(2)  Middle schools.  Allowable beverages for middle school-aged students are limited to:\n\n(i) Plain water or plain carbonated water (no size limit);\n\n(ii) Milk and fluid milk substitutes that meet the requirements outlined in \u00a7 210.10(d)(1) and (2) (no more than 12 fluid ounces); and\n\n(iii) One hundred (100) percent fruit/vegetable juice, and 100 percent fruit/vegetable juice diluted with water, with or without carbonation and with no added sweeteners (no more than 12 fluid ounces).\n\n(3)  High schools.  Allowable beverages for high school-aged students are limited to:\n\n(i) Plain water or plain carbonated water (no size limit);\n\n(ii) Milk and fluid milk substitutes that meet the requirements outlined in \u00a7 210.10(d)(1) and (2) (no more than 12 fluid ounces);\n\n(iii) One hundred (100) percent fruit/vegetable juice, and 100 percent fruit/vegetable juice diluted with water, with or without carbonation and with no added sweeteners (no more than 12 fluid ounces);\n\n(iv) Calorie-free, flavored water, with or without carbonation (no more than 20 fluid ounces);\n\n(v) Other beverages that are labeled to contain less than 5 calories per 8 fluid ounces, or less than or equal to 10 calories per 20 fluid ounces (no more than 20 fluid ounces); and\n\n(vi) Other beverages that are labeled to contain no more than 40 calories per 8 fluid ounces or 60 calories per 12 fluid ounces (no more than 12 fluid ounces)."], ["7:7:4.1.1.1.1.3.1.4", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.12 Student, parent, and community involvement.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 78 FR 13448, Feb. 28, 2013; 81 FR 50168, July 29, 2016; 89 FR 32073, Apr. 25, 2024]", "(a)  General.  School food authorities shall promote activities to involve students and parents in the Program. Such activities may include menu planning, enhancement of the eating environment, Program promotion, and related student-community support activities. School food authorities are encouraged to use the school food service program to teach students about good nutrition practices and to involve the school faculty and the general community in activities to enhance the Program.\n\n(b)  Food service management companies.  School food authorities contracting with a food service management company shall comply with the provisions of \u00a7 210.16(a) regarding the establishment of an advisory board of parents, teachers and students.\n\n(c)  Residential child care institutions.  Residential child care institutions shall comply with the provisions of this section, to the extent possible.\n\n(d)  Outreach activities.  (1) To the maximum extent practicable, school food authorities must inform families about the availability breakfasts for students. Information about the School Breakfast Program must be distributed just prior to or at the beginning of the school year. In addition, schools are encouraged to send reminders regarding the availability of the School Breakfast Program multiple times throughout the school year.\n\n(2) School food authorities must cooperate with Summer Food Service Program sponsors to distribute materials to inform families of the availability and location of free Summer Food Service Program meals for students when school is not in session.\n\n(e)  Local school wellness policies.  Local educational agencies must comply with the provisions of \u00a7 210.31(d) regarding student, parent, and community involvement in the development, implementation, and periodic review and update of the local school wellness policy."], ["7:7:4.1.1.1.1.3.1.5", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.13 Facilities management.", "FNS", "", "", "[54 FR 29147, Aug. 2, 1988, as amended at 64 FR 50740, Sept. 20, 1999; 70 FR 34630, June 15, 2005; 74 FR 66216, Dec. 15, 2009; 78 FR 13448, Feb. 28, 2013]", "(a)  Health standards.  The school food authority shall ensure that food storage, preparation and service is in accordance with the sanitation and health standards established under State and local law and regulations.\n\n(b)  Food safety inspections.  Schools shall obtain a minimum of two food safety inspections during each school year conducted by a State or local governmental agency responsible for food safety inspections. They shall post in a publicly visible location a report of the most recent inspection conducted, and provide a copy of the inspection report to a member of the public upon request. Sites participating in more than one child nutrition program shall only be required to obtain two food safety inspections per school year if the nutrition programs offered use the same facilities for the production and service of meals.\n\n(c)  Food safety program.  The school food authority must develop a written food safety program that covers any facility or part of a facility where food is stored, prepared, or served. The food safety program must meet the requirements in paragraph (c)(1) or paragraph (c)(2) of this section, and the requirements in \u00a7 210.15(b)(5).\n\n(1) A school food authority with a food safety program based on traditional hazard analysis and critical control point (HACCP) principles must:\n\n(i) Perform a hazard analysis;\n\n(ii) Decide on critical control points;\n\n(iii) Determine the critical limits;\n\n(iv) Establish procedures to monitor critical control points;\n\n(v) Establish corrective actions;\n\n(vi) Establish verification procedures; and\n\n(vii) Establish a recordkeeping system.\n\n(2) A school food authority with a food safety program based on the process approach to HACCP must ensure that its program includes:\n\n(i) Standard operating procedures to provide a food safety foundation;\n\n(ii) Menu items grouped according to process categories;\n\n(iii) Critical control points and critical limits;\n\n(iv) Monitoring procedures;\n\n(v) Corrective action procedures;\n\n(vi) Recordkeeping procedures; and\n\n(vii) Periodic program review and revision.\n\n(d)  Storage.  The school food authority shall ensure that the necessary facilities for storage, preparation and service of food are maintained. Facilities for the handling, storage, and distribution of purchased and donated foods shall be such as to properly safeguard against theft, spoilage and other loss."], ["7:7:4.1.1.1.1.3.1.6", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.14 Resource management.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 60 FR 31215, June 13, 1995; 76 FR 35316, June 17, 2011; 81 FR 50185, July 29, 2016; 89 FR 32073, Apr. 25, 2024]", "(a)  Nonprofit school food service.  School food authorities shall maintain a nonprofit school food service. Revenues received by the nonprofit school food service are to be used only for the operation or improvement of such food service,  except that,  such revenues shall not be used to purchase land or buildings, unless otherwise approved by FNS, or to construct buildings. Expenditures of nonprofit school food service revenues shall be in accordance with the financial management system established by the State agency under \u00a7 210.19(a) of this part. School food authorities may use facilities, equipment, and personnel supported with nonprofit school food revenues to support a nonprofit nutrition program for the elderly, including a program funded under the Older Americans Act of 1965 (42 U.S.C. 3001  et seq. ).\n\n(b)  Net cash resources.  The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency in accordance with \u00a7 210.19(a).\n\n(c)  Financial assurances.  The school food authority shall meet the requirements of the State agency for compliance with \u00a7 210.19(a) including any separation of records of nonprofit school food service from records of any other food service which may be operated by the school food authority as provided in paragraph (a) of this section.\n\n(d)  Use of donated foods.  The school food authority shall enter into an agreement with the distributing agency to receive donated foods as required by part 250 of this chapter. In addition, the school food authority shall accept and use, in as large quantities as may be efficiently utilized in its nonprofit school food service, such foods as may be offered as a donation by the Department. The school food authority's policies, procedures, and records must account for the receipt, full value, proper storage and use of donated foods.\n\n(e)  Pricing paid lunches.  For each school year, school food authorities must establish prices for paid lunches in accordance with this paragraph (e).\n\n(1)  Calculation procedures.  Each school food authority shall:\n\n(i) Determine the average price of paid lunches. The average shall be determined based on the total number of paid lunches claimed for the month of October in the previous school year, at each different price charged by the school food authority.\n\n(ii) Calculate the difference between the per meal Federal reimbursement for paid and free lunches received by the school food authority in the previous school year ( i.e.,  the reimbursement difference);\n\n(iii) Compare the average price of a paid lunch under paragraph (e)(1)(i) of this section to the difference between reimbursement rates under paragraph (e)(1)(ii) of this section.\n\n(2)  Average paid lunch price is equal to/greater than the reimbursement difference.  When the average paid lunch price from the prior school year is equal to or greater than the difference in reimbursement rates as determined in paragraph (e)(1)(iii) of this section, the school food authority shall establish an average paid lunch price for the current school year that is not less than the difference identified in (e)(1)(iii) of this section; except that, the school food authority may use the procedure in paragraph (e)(4)(ii) of this section when establishing prices of paid lunches.\n\n(3)  Average lunch price is lower than the reimbursement difference.  When the average price from the prior school year is lower than the difference in reimbursement rates as determined in paragraph (e)(1)(iii) of this section, the school food authority shall establish an average price for the current school year that is not less than the average price charged in the previous school year as adjusted by a percentage equal to the sum obtained by adding:\n\n(i) 2 percent; and\n\n(ii) The percentage change in the Consumers Price Index for All Urban Consumers used to increase the Federal reimbursement rate under section 11 of the Act for the most recent school year for which data are available. The percentage to be used is found in the annual notice published in the  Federal Register  announcing the national average payment rates, from the prior year.\n\n(4)  Price Adjustments.  (i)  Maximum required price increase.  The maximum annual average price increase required under this paragraph shall not exceed ten cents.\n\n(ii)  Rounding of paid lunch prices.  Any school food authority may round the adjusted price of the paid lunches down to the nearest five cents.\n\n(iii)  Optional price increases.  A school food authority may increase the average price by more than ten cents.\n\n(5)  Reduction in average price for paid lunches.  (i) Any school food authority may reduce the average price of paid lunches as established under this paragraph if the State agency ensures that funds are added to the nonprofit school food service account in accordance with this paragraph.\n\nThe minimum that must be added is the product of:\n\n(A) The number of paid lunches claimed by the school food authority in the previous school year multiplied by\n\n(B) The amount required under paragraph (e)(3) of this section, as adjusted under paragraph (e)(4) of this section, minus the average price charged.\n\n(ii)  Prohibitions.  The following shall not be used to reduce the average price charged for paid lunches:\n\n(A) Federal sources of revenue;\n\n(B) Revenue from foods sold in competition with lunches or with breakfasts offered under the School Breakfast Program authorized in 7 CFR part 220. Requirements concerning foods sold in competition with lunches or breakfasts are found in \u00a7 210.11 and \u00a7 220.12 of this chapter, respectively;\n\n(C) In-kind contributions;\n\n(D) Any in-kind contributions converted to direct cash expenditures; and\n\n(E) Per-meal reimbursements (non-Federal) specifically provided for support of programs other than the school lunch program.\n\n(iii)  Allowable non-Federal revenue sources.  Any contribution that is for the direct support of paid lunches that is not prohibited under paragraph (e)(5)(ii) of this section may be used as revenue for this purpose. Such contributions include, but are not limited to:\n\n(A) Per-lunch reimbursements for paid lunches provided by State or local governments;\n\n(B) Funds provided by organizations, such as school-related or community groups, to support paid lunches;\n\n(C) Any portion of State revenue matching funds that exceeds the minimum requirement, as provided in \u00a7 210.17, and is provided for paid lunches; and\n\n(D) A proportion attributable to paid lunches from direct payments made from school district funds to support the lunch service.\n\n(6)  Additional considerations.  (i) In any given year, if a school food authority with an average price lower than the reimbursement difference is not required by paragraph (e)(4)(ii) of this section to increase its average price for paid lunches, the school food authority shall use the unrounded average price as the basis for calculations to meet paragraph (e)(3) of this section for the next school year.\n\n(ii) If a school food authority has an average price lower than the reimbursement difference and chooses to increase its average price for paid lunches in any school year more than is required by this section, the amount attributable to the additional voluntary increase may be carried forward to the next school year(s) to meet the requirements of this section.\n\n(7)  Reporting lunch prices.  In accordance with guidelines provided by FNS:\n\n(i) School food authorities shall report prices charged for paid lunches to the State agency; and\n\n(ii) State agencies shall report these prices to FNS.\n\n(f)  Revenue from nonprogram foods.  School food authorities must ensure that the revenue generated from the sale of nonprogram foods complies with the requirements in this paragraph (f).\n\n(1)  Definition of nonprogram foods.  For the purposes of this paragraph, nonprogram foods are those foods and beverages:\n\n(i) Sold in a participating school other than reimbursable meals and meal supplements; and\n\n(ii) Purchased using funds from the nonprofit school food service account.\n\n(2)  Revenue from nonprogram foods.  The proportion of total revenue from the sale of nonprogram foods to total revenue of the school food service account shall be equal to or greater than:\n\n(i) The proportion of total food costs associated with obtaining nonprogram foods to\n\n(ii) The total costs associated with obtaining program and nonprogram foods from the account.\n\n(3) All revenue from the sale of nonprogram foods shall accrue to the nonprofit school food service account of a participating school food authority.\n\n(g)  Indirect costs.  School food authorities must follow fair and consistent methodologies to identify and allocate allowable indirect costs to the nonprofit school food service account, in accordance with 2 CFR part 200 as implemented by 2 CFR part 400."], ["7:7:4.1.1.1.1.3.1.7", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.15 Reporting and recordkeeping.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12582, Mar. 28, 1989; 56 FR 32941, July 17, 1991; 60 FR 31215, June 13, 1995; 65 FR 26912, 26922, May 9, 2000; 70 FR 34630, June 15, 2005; 74 FR 66216, Dec. 15, 2009; 76 FR 35317, June 17, 2011; 77 FR 25035, Apr. 27, 2012; 79 FR 7053, Feb. 6, 2014; 80 FR 11092, Mar. 2, 2015; 81 FR 50169, July 29, 2016; 81 FR 50185, July 29, 2016; 89 FR 32073, Apr. 25, 2024]", "(a)  Reporting summary.  Participating school food authorities are required to submit forms and reports to the State agency or the distributing agency, as appropriate, to demonstrate compliance with Program requirements. These reports include, but are not limited to:\n\n(1) A Claim for Reimbursement and, for the month of October and as otherwise specified by the State agency, supporting data as specified in accordance with \u00a7 210.8 of this part;\n\n(2) An application and agreement for Program operations between the school food authority and the State agency, and a Free and Reduced Price Policy Statement as required under \u00a7 210.9;\n\n(3) A written response to reviews pertaining to corrective action taken for Program deficiencies;\n\n(4) A commodity school's preference whether to receive part of its donated food allocation in cash for processing and handling of donated foods as required under \u00a7 210.19(b);\n\n(5) A written response to audit findings pertaining to the school food authority's operation as required under \u00a7 210.22;\n\n(6) Information on civil rights complaints, if any, and their resolution as required under \u00a7 210.23;\n\n(7) The number of food safety inspections obtained per school year by each school under its jurisdiction;\n\n(8) The prices of paid lunches charged by the school food authority; and\n\n(9) For any local educational agency required to conduct a second review of free and reduced price applications as required under \u00a7 245.11 of this chapter, the number of free and reduced price applications subject to a second review, the number and percentage of reviewed applications for which the eligibility determination was changed, and a summary of the types of changes made.\n\n(b)  Recordkeeping summary.  In order to participate in the Program, a school food authority or a school, as applicable, must maintain records to demonstrate compliance with Program requirements. These records include but are not limited to:\n\n(1) Documentation of participation data by school in support of the Claim for Reimbursement and data used in the claims review process, as required under \u00a7 210.8(a), (b), and (c) of this part;\n\n(2) Production and menu records as required under \u00a7 210.10 and documentation to support performance-based cash assistance, as required under \u00a7 210.7(d)(2).\n\n(3) Participation records to demonstrate positive action toward providing one lunch per child per day as required under \u00a7 210.10(a)(2), whichever is applicable;\n\n(4) Currently approved and denied certification documentation for free and reduced price lunches and a description of the verification activities, including verified applications, and any accompanying source documentation in accordance with 7 CFR 245.6a of this Title; and\n\n(5) Records from the food safety program for a period of six months following a month's temperature records to demonstrate compliance with \u00a7 210.13(c), and records from the most recent food safety inspection to demonstrate compliance with \u00a7 210.13(b);\n\n(6) Records to document compliance with the requirements in \u00a7 210.14(e);\n\n(7) Records to document compliance with the requirements in \u00a7 210.14(f); and\n\n(8) Records for a three year period to demonstrate the school food authority's compliance with the professional standards for school nutrition program directors, managers and personnel established in \u00a7 210.30.\n\n(9) Records to document compliance with the local school wellness policy requirements as set forth in \u00a7 210.31(f)."], ["7:7:4.1.1.1.1.3.1.8", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "C", "Subpart C\u2014Requirements for School Food Authority Participation", "", "\u00a7 210.16 Food service management companies.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 60 FR 31215, June 13, 1995; 65 FR 26912, May 9, 2000; 72 FR 61491, Oct. 31, 2007; 88 FR 57845, Aug. 23, 2023]", "(a)  General.  Any school food authority (including a State agency acting in the capacity of a school food authority) may contract with a food service management company to manage its food service operation in one or more of its schools. However, no school or school food authority may contract with a food service management company to operate an a la carte food service unless the company agrees to offer free, reduced price and paid reimbursable lunches to all eligible children. Any school food authority that employs a food service management company in the operation of its nonprofit school food service shall:\n\n(1) Adhere to the procurement standards specified in \u00a7 210.21 when contracting with the food service management company;\n\n(2) Ensure that the food service operation is in conformance with the school food authority's agreement under the Program;\n\n(3) Monitor the food service operation through periodic on-site visits;\n\n(4) Retain control of the quality, extent, and general nature of its food service, and the prices to be charged the children for meals;\n\n(5) Retain signature authority on the State agency-school food authority agreement, free and reduced price policy statement and claims;\n\n(6) Ensure that all federally donated foods received by the school food authority and made available to the food service management company accrue only to the benefit of the school food authority's nonprofit school food service and are fully utilized therein;\n\n(7) Maintain applicable health certification and assure that all State and local regulations are being met by a food service management company preparing or serving meals at a school food authority facility;\n\n(8) Establish an advisory board composed of parents, teachers, and students to assist in menu planning;\n\n(9) Obtain written approval of invitations for bids and requests for proposals before their issuance when required by the State agency. The school food authority must incorporate all State agency required changes to its solicitation documents before issuing those documents; and\n\n(10) Ensure that the State agency has reviewed and approved the contract terms and that the school food authority has incorporated all State agency required changes into the contract or amendment before any contract or amendment to an existing food service management company contract is executed. Any changes made by the school food authority or a food service management company to a State agency pre-approved prototype contract or State agency approved contract term must be approved in writing by the State agency before the contract is executed. When requested, the school food authority must submit all procurement documents, including responses submitted by potential contractors, to the State agency, by the due date established by the State agency.\n\n(b)  Invitation to bid.  In addition to adhering to the procurement standards under \u00a7 210.21, school food authorities contracting with food service management companies shall ensure that:\n\n(1) The invitation to bid or request for proposal contains a 21-day cycle menu developed in accordance with the provisions of \u00a7 210.10, to be used as a standard for the purpose of basing bids or estimating average cost per meal. A school food authority with no capability to prepare a cycle menu may, with State agency approval, require that each food service management company include a 21-day cycle menu, developed in accordance with the provisions of \u00a7 210.10, with its bid or proposal. The food service management company must adhere to the cycle for the first 21 days of meal service. Changes thereafter may be made with the approval of the school food authority.\n\n(2) Any invitation to bid or request for proposal indicate that nonperformance subjects the food service management company to specified sanctions in instances where the food service management company violates or breaches contract terms. The school food authority shall indicate these sanctions in accordance with the procurement provisions stated in \u00a7 210.21.\n\n(c)  Contracts.  Contracts that permit all income and expenses to accrue to the food service management company and \u201ccost-plus-a-percentage-of-cost\u201d and \u201ccost-plus-a-percentage-of-income\u201d contracts are prohibited. Contracts that provide for fixed fees such as those that provide for management fees established on a per meal basis are allowed. Contractual agreements with food service management companies shall include provisions which ensure that the requirements of this section are met. Such agreements shall also include the following:\n\n(1) The food service management company shall maintain such records as the school food authority will need to support its Claim for Reimbursement under this part, and shall, at a minimum, report claim information to the school food authority promptly at the end of each month. Such records shall be made available to the school food authority, upon request, and shall be retained in accordance with \u00a7 210.23(c).\n\n(2) The food service management company shall have State or local health certification for any facility outside the school in which it proposes to prepare meals and the food service management company shall maintain this health certification for the duration of the contract.\n\n(3) No payment is to be made for meals that are spoiled or unwholesome at time of delivery, do not meet detailed specifications as developed by the school food authority for each food component specified in \u00a7 210.10, or do not otherwise meet the requirements of the contract. Specifications shall cover items such a grade, purchase units, style, condition, weight, ingredients, formulations, and delivery time.\n\n(4) Provisions in part 250, subpart D of this chapter must be included to ensure the value of donated foods,  i.e.,  USDA Foods, are fully used in the nonprofit food service and credited to the nonprofit school food service account.\n\n(d)  Duration of contract.  The contract between a school food authority and food service management company shall be of a duration of no longer than 1 year; and options for the yearly renewal of a contract signed after February 16, 1988, may not exceed 4 additional years. All contracts shall include a termination clause whereby either party may cancel for cause with 60-day notification."], ["7:7:4.1.1.1.1.4.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "D", "Subpart D\u2014Requirements for State Agency Participation", "", "\u00a7 210.17 Matching Federal funds.", "FNS", "", "", "", "(a)  State revenue matching.  For each school year, the amount of State revenues appropriated or used specifically by the State for program purposes shall not be less than 30 percent of the funds received by such State under section 4 of the National School Lunch Act during the school year beginning July 1, 1980;  provided that,  the State revenues derived from the operation of such programs and State revenues expended for salaries and administrative expenses of such programs at the State level are not considered in this computation. However, if the per capita income of any State is less than the per capita income of the United States, the matching requirements so computed shall be decreased by the percentage by which the State per capita income is below the per capita income of the United States.\n\n(b)  Private school exemption.  No State in which the State agency is prohibited by law from disbursing State appropriated funds to nonpublic schools shall be required to match general cash assistance funds expended for meals served in such schools, or to disburse to such schools any of the State revenues required to meet the requirements of paragraph (a) of this section. Furthermore, the requirements of this section do not apply to schools in which the Program is administered by a FNSRO.\n\n(c)  Territorial waiver.  American Samoa and the Commonwealth of the Northern Mariana Islands shall be exempted from the matching requirements of paragraph (a) of this section if their respective matching requirements are under $100,000.\n\n(d)  Applicable revenues.  The following State revenues, appropriated or used specifically for program purposes which are expended for any school year shall be eligible for meeting the applicable percentage of the matching requirements prescribed in paragraph (a) of this section for that school year:\n\n(1) State revenues disbursed by the State agency to school food authorities for program purposes, including revenue disbursed to nonprofit private schools where the State administers the program in such schools;\n\n(2) State revenues made available to school food authorities and transferred by the school food authorities to the nonprofit school food service accounts or otherwise expended by the school food authorities in connection with the nonprofit school food service program; and\n\n(3) State revenues used to finance the costs (other than State salaries or other State level administrative costs) of the nonprofit school food service program, i.e.:\n\n(i) Local program supervision;\n\n(ii) Operating the program in participating schools; and\n\n(iii) The intrastate distribution of foods donated under part 250 of this chapter to schools participating in the program.\n\n(e)  Distribution of matching revenues.  All State revenues made available under paragraph (a) of this section are to be disbursed to school food authorities participating in the Program,  except as  provided for under paragraph (b) of this section. Distribution of matching revenues may be made with respect to a class of school food authorities as well as with respect to individual school food authorities.\n\n(f)  Failure to match.  If, in any school year, a State fails to meet the State revenue matching requirement, as prescribed in paragraph (a) of this section, the general cash assistance funds utilized by the State during that school year shall be subject to recall by and repayment to FNS.\n\n(g)  Reports.  Within 120 days after the end of each school year, each State agency shall submit an Annual Report of Revenues (FNS-13) to FNS. This report identifies the State revenues to be counted toward the State revenue matching requirements specified in paragraph (a) of this section.\n\n(h)  Accounting system.  The State agency shall establish or cause to be established a system whereby all expended State revenues counted in meeting the matching requirements prescribed in paragraph (a) of this section are properly documented and accounted for."], ["7:7:4.1.1.1.1.4.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "D", "Subpart D\u2014Requirements for State Agency Participation", "", "\u00a7 210.18 Administrative reviews.", "FNS", "", "", "[81 FR 50185, July 29, 2016, as amended at 83 FR 25357, June 1, 2018; 88 FR 57845, Aug. 23, 2023; 88 FR 90347, Dec. 29, 2023; 89 FR 32073, Apr. 25, 2024]", "(a)  Programs covered and methodology.  Each State agency must follow the requirements of this section to conduct administrative reviews of school food authorities participating in the National School Lunch Program and the School Breakfast Program (part 220 of this chapter). These procedures must also be followed, as applicable, to conduct administrative reviews of the National School Lunch Program's Afterschool Snacks and Seamless Summer Option, the Special Milk Program (part 215 of this chapter), and the Fresh Fruit and Vegetable Program. To conduct a program review, the State agency must gather and assess information off-site and/or on-site, observe the school food service operation, and use a risk-based approach to evaluate compliance with specific program requirements.\n\n(b)  Definitions.  The following definitions are provided in alphabetical order in order to clarify State agency administrative review requirements:\n\nAdministrative reviews  means the comprehensive evaluation of all school food authorities participating in the programs specified in paragraph (a) of this section. It includes a review of both critical and general areas in accordance with paragraphs (g) and (h) of this section, as applicable for each reviewed program. With FNS approval, the administrative review may include other areas of program operations determined by the State agency.\n\nCritical areas  means the following two performance standards described in detail in paragraph (g) of this section:\n\nGeneral areas  means the areas of review specified in paragraph (h) of this section. These areas include free and reduced-price process, civil rights, school food authority on-site monitoring, reporting and recordkeeping, food safety, competitive food services, water, program outreach, resource management, Buy American, and other areas identified by FNS.\n\n(i)  Performance Standard 1 \u2014All free, reduced price and paid school meals claimed for reimbursement are served only to children eligible for free, reduced price and paid school meals, respectively; and are counted, recorded, consolidated and reported through a system which consistently yields correct claims.\n\n(ii)  Performance Standard 2 \u2014Reimbursable lunches meet the meal requirements in \u00a7 210.10, as applicable to the age/grade group reviewed. Reimbursable breakfasts meet the meal requirements in \u00a7 220.8 of this chapter, as applicable to the age/grade group reviewed.\n\nDay of Review  means the day(s) on which the on-site review of the individual sites selected for review occurs.\n\nDocumented corrective action  means written notification required of the school food authority to certify that the corrective action required for each violation has been completed and to notify the State agency of the dates of completion. Documented corrective action may be provided at the time of the review or may be submitted to the State agency within specified timeframes.\n\nGeneral areas  means the areas of review specified in paragraph (h) of this section. These areas include free and reduced price process, civil rights, school food authority on-site monitoring, reporting and recordkeeping, food safety, competitive food services, water, program outreach, resource management, and other areas identified by FNS.\n\nParticipation factor  means the percentages of children approved by the school for free meals, reduced price meals, and paid meals, respectively, who are participating in the Program. The free participation factor is derived by dividing the number of free lunches claimed for any given period by the product of the number of children approved for free lunches for the same period times the operating days in that period. A similar computation is used to determine the reduced price and paid participation factors. The number of children approved for paid meals is derived by subtracting the number of children approved for free and reduced price meals for any given period from the total number of children enrolled in the reviewed school for the same period of time, if available. If such enrollment figures are not available, the most recent total number of children enrolled must be used. If school food authority participation factors are unavailable or unreliable, State-wide data must be employed.\n\nReview period  means the most recent month for which a Claim for Reimbursement was submitted, provided that it covers at least ten (10) operating days.\n\n(c)  Review cycle.  State agencies must conduct administrative reviews of all school food authorities participating in the National School Lunch Program (including Afterschool Snacks and the Seamless Summer Option) and the School Breakfast Program at least once during a 5-year review cycle, provided that each school food authority is reviewed at least once every 6 years, depending on review cycle observed. At a minimum, the on-site portion of the administrative review must be completed during the school year in which the review began.\n\n(1)  Targeted follow-up reviews.  A State agency that reviews school food authorities on a cycle longer than 3 years must identify school food authorities that are high-risk to receive a targeted follow-up review. A State agency must develop and receive FNS approval of a plan to identify school food authorities that meet the high-risk criteria.\n\n(2)  High-risk criteria for targeted follow-up reviews.  At a minimum, a State plan should identify as high-risk those school food authorities that during the most recent administrative review conducted in accordance with this \u00a7 210.18 had one or more of the following risk factors as determined by the State Agency: a 10 percent or greater certification and benefit issuance error rate; incomplete verification for the review year; or one or more significant or systemic errors in Performance Standard 1 as defined at (g)(1) of this section, Performance Standard 2 as defined at paragraph (g)(2) of this section, or allowable costs.\n\n(3)  Timing and scope of targeted follow-up reviews.  Within two years of the review, high-risk school food authorities must receive a targeted follow-up review. Targeted follow-up reviews must include the areas of significant or systemic error identified in the previous review, and may include other areas at the discretion of the State agency. The State agency may conduct targeted follow-up reviews in the same school year as the administrative review, and may conduct any additional reviews at its discretion.\n\n(d)  Scheduling school food authorities.  The State agency must use its own criteria to schedule school food authorities for administrative reviews; provided that the requirements of paragraph (c) of this section are met. State agencies may take into consideration the findings of the claims review process required under \u00a7 210.8(b)(2) in the selection of school food authorities.\n\n(1)  Schedule of reviews.  To ensure no unintended overlap occurs, the State agency must inform FNS of the anticipated schedule of school food authority reviews upon request.\n\n(2)  Exceptions.  In any school year in which FNS or the Office of the Inspector General (OIG) conducts a review or investigation of a school food authority in accordance with \u00a7 210.19(a)(4), the State agency must, unless otherwise authorized by FNS, delay conduct of a scheduled administrative review until the following school year. The State agency must document any exception authorized under this paragraph.\n\n(e)  Number of schools to review.  At a minimum, the State agency must review the number of schools specified in paragraph (e)(1) of this section and must select the schools to be reviewed on the basis of the school selection criteria specified in paragraph (e)(2) of this section. The State agency may review all schools meeting the school selection criteria specified in paragraph (e)(2) of this section.\n\n(1)  Minimum number of schools.  State agencies must review at least one school from each local education agency. Except for residential child care institutions, the State agency must review all schools with a free average daily participation of 100 or more and a free participation factor of 100 percent or more. In no event must the State agency review less than the minimum number of schools illustrated in Table A for the National School Lunch Program.\n\nTable A\n\n* Twelve plus 5 percent of the number of schools over 100. Fractions must be rounded up (>0.5) or down (<0.5) to the nearest whole number.\n\n(2)  School selection criteria.  (i) Selection of additional schools to meet the minimum number of schools required under paragraph (e)(1) of this section, must be based on the following criteria:\n\n(A) Elementary schools with a free average daily participation of 100 or more and a free participation factor of 97 percent or more;\n\n(B) Secondary schools with a free average daily participation of 100 or more and a free participation factor of 77 percent or more; and\n\n(C) Combination schools with a free average daily participation of 100 or more and a free participation factor of 87 percent or more. A combination school means a school with a mixture of elementary and secondary grades.\n\n(ii) When the number of schools selected on the basis of the criteria established in paragraph (e)(2)(i) of this section is not sufficient to meet the minimum number of schools required under paragraph (e)(1) of this section, the additional schools selected for review must be identified using State agency criteria which may include low participation schools; recommendations from a food service director based on findings from the on-site visits or the claims review process required under \u00a7 210.8(a); or any school in which the daily meal counts appear questionable ( e.g.,  identical or very similar claiming patterns, or large changes in free meal counts).\n\n(iii) In selecting schools for an administrative review of the School Breakfast Program, State agencies must follow the selection criteria set forth in this paragraph and FNS'  Administrative Review Manual.  At a minimum:\n\n(A) In school food authorities operating only the breakfast program, State agencies must review the number of schools set forth in Table A in paragraph (e)(1) of this section.\n\n(B) In school food authorities operating both the lunch and breakfast programs, State agencies must review the breakfast program in 50 percent of the schools selected for an administrative review under paragraph (e)(1) of this section that operate the breakfast program.\n\n(C) If none of the schools selected for an administrative review under paragraph (e)(1) of this section operates the breakfast program, but the school food authority operates the program elsewhere, the State agency must follow procedures in the FNS  Administrative Review Manual  to select at least one other site for a school breakfast review.\n\n(3)  Site selection for other federal program reviews \u2014(i)  National School Lunch Program's Afterschool Snacks.  If a school selected for an administrative review under this section operates Afterschool Snacks, the State agency must review snack documentation for compliance with program requirements, according to the FNS  Administrative Review Manual.  Otherwise, the State agency is not required to review the Afterschool Snacks.\n\n(ii)  National School Lunch Program's Seamless Summer Option.  The State agency must review Seamless Summer Option at a minimum of one site if the school food authority selected for review under this section operates the Seamless Summer Option and only operates congregate meal service. If the school food authority operates congregate and non-congregate meal service, a minimum of two sites must be reviewed, one congregate site and one non-congregate site. If the school food authority has one site that operates both congregate and non-congregate meal services, the State agency may review a minimum of one site and must observe both a congregate and non-congregate meal service at that one site. This review can take place at any site within the reviewed school food authority the summer before or after the school year in which the administrative review is scheduled. The State agency must review the Seamless Summer Option for compliance with program requirements, according to the FNS  Administrative Review Manual.\n\n(iii)  Fresh Fruit and Vegetable Program.  The State agency must review the Fresh Fruit and Vegetable Program at one or more of the schools selected for an administrative review, as specified in Table B. If none of the schools selected for the administrative review operates the Fresh Fruit and Vegetable Program but the school food authority operates the Program elsewhere, the State agency must follow procedures in the FNS  Administrative Review Manual  to select one or more sites for the program review.\n\nTable B\n\n* Twelve plus 5 percent of the number of schools over 100. Fractions must be rounded up (>0.5) or down (<0.5) to the nearest whole number.\n\n(iv)  Special Milk Program.  If a school selected for review under this section operates the Special Milk Program, the State agency must review the school's program documentation off-site or on-site, as prescribed in the FNS  Administrative Review Manual.  On-site review is only required if the State agency has identified documentation problems or if the State agency has identified meal counting or claiming errors in the reviews conducted under the National School Lunch Program or School Breakfast Program.\n\n(4)  Pervasive problems.  If the State agency review finds pervasive problems in a school food authority, FNS may authorize the State agency to cease review activities prior to reviewing the required number of schools under paragraphs (e)(1) and (e)(3) of this section. Where FNS authorizes the State agency to cease review activity, FNS may either conduct the review activity itself or refer the school food authority to OIG.\n\n(5)  Noncompliance with meal pattern requirements.  If the State agency determines there is significant noncompliance with the meal pattern and nutrition requirements set forth in \u00a7 210.10 and \u00a7 220.8 of this chapter, as applicable, the State agency must select the school food authority for administrative review earlier in the review cycle.\n\n(f)  Scope of review.  During the course of an administrative review for the National School Lunch Program and the School Breakfast Program, the State agency must monitor compliance with the critical and general areas in paragraphs (g) and (h) of this section, respectively. Selected critical and general areas must be monitored when reviewing the National School Lunch Program's Afterschool Snacks and the Seamless Summer Option, the Special Milk Program, and the Fresh Fruit and Vegetable Program, as applicable and as specified in the FNS Administrative Review Manual. State agencies may add additional review areas with FNS approval.\n\n(1)  Review forms.  State agencies must use the administrative review forms, tools and workbooks prescribed by FNS.\n\n(2)  Timeframes covered by the review.  (i) The timeframes covered by the administrative review include the review period and the day of review, as defined in paragraph (b) of this section.\n\n(ii) Subject to FNS approval, the State agency may conduct a review early in the school year, prior to the submission of a Claim for Reimbursement. In such cases, the review period must be the prior month of operation in the current school year, provided that such month includes at least 10 operating days.\n\n(3)  Audit results.  The State agency may use any recent and currently applicable results from Federal, State, or local audit activity to meet FNS monitoring requirements. Such results may be used only when they pertain to the reviewed school(s) or the overall operation of the school food authority, when they are relevant to the review period, and when they adhere to audit standards contained in 2 CFR part 200, subpart F. The State agency must document the source and the date of the audit. The content of local level audits activity requires the approval of FNS to ensure that these audits align with Federal audit standards.\n\n(4)  Completion of review requirements outside the administrative review.  State agencies may, with FNS approval, omit specific, redundant areas of the administrative review, when sufficient oversight is conducted outside of the administrative review.\n\n(5)  Error reduction strategies.  State agencies may omit designated areas of review, in part or entirely, where a school food authority or State agency has implemented FNS-approved error reduction strategies or utilized FNS-approved monitoring efficiencies.\n\n(g)  Critical areas of review.  The performance standards listed in this paragraph are directly linked to meal access and reimbursement, and to the meal pattern and nutritional quality of the reimbursable meals offered. These critical areas must be monitored by the State agency when conducting administrative reviews of the National School Lunch Program and the School Breakfast Program. Selected aspects of these critical areas must also be monitored, as applicable, when conducting administrative reviews of the National School Lunch Program's Afterschool Snacks and the Seamless Summer Option, and of the Special Milk Program. State agencies may omit designated critical areas of review, in part or entirely, where school food authority or State agency has implemented FNS-specified error reduction strategies or utilized FNS-specified monitoring efficiencies.\n\n(1)  Performance Standard 1 (All free, reduced price and paid school meals claimed for reimbursement are served only to children eligible for free, reduced price and paid school meals, respectively; and are counted, recorded, consolidated and reported through a system which consistently yields correct claims.)  The State agency must follow review procedures stated in this section and as specified in the FNS  Administrative Review Manual  to ensure that the school food authority's certification and benefit issuance processes for school meals offered under the National School Lunch Program, and School Breakfast Program are conducted as required in part 245 of this chapter, as applicable. In addition, the State agency must ensure that benefit counting, consolidation, recording and claiming are conducted as required in this part and part 220 of this chapter for the National School Lunch Program and the School Breakfast Program, respectively. The State agency must also follow procedures consistent with this section, and as specified in the FNS  Administrative Review Manual,  to review applicable areas of Performance Standard 1 in the National School Lunch Program's Afterschool Snacks and Seamless Summer Option, and in the Special Milk Program.\n\n(i)  Certification and benefit issuance.  The State agency must gather information and monitor the school food authority's compliance with program requirements regarding benefit application, direct certification, and categorical eligibility, as well as the transfer of benefits to the point-of-service benefit issuance document. To review this area, the State agency must obtain the benefit issuance document for each participating school under the jurisdiction of the school food authority for the day of review or a day in the review period, review all or a statistically valid sample of student certifications, and validate that the eligibility certification for free and reduced price meals was properly transferred to the benefit issuance document and reflects changes due to verification findings, transfers, or a household's decision to decline benefits. If the State agency chooses to review a statistically valid sample of student certifications, the State agency must use a sample size with a 99 percent confidence level of accuracy. However, a sample size with a 95 percent confidence level of accuracy may be used if a school food authority uses an electronic benefit issuance and certification system with no manual data entry and the State agency has not identified any potential systemic noncompliance. Any sample size must be large enough so that there is a 99 or 95 percent, as applicable, chance that the actual accuracy rate for all certifications is not less than 2 percentage points less than the accuracy rate found in the sample ( i.e.,  the lower bound of the one-sided 99/95 percent confidence interval is no more than 2 percentage points less than the point estimate).\n\n(ii)  Meal counting and claiming.  The State agency must gather information and conduct an on-site visit to ensure that the processes used by the school food authority and reviewed school(s) to count, record, consolidate, and report the number of reimbursable meals/snacks served to eligible students by category ( i.e.,  free, reduced price or paid meal) are in compliance with program requirements and yield correct claims. The State agency must determine whether:\n\n(A) The daily meal counts, by type, for the review period are more than the product of the number of children determined by the school/school food authority to be eligible for free, reduced price, and paid meals for the review period times an attendance factor. If the meal count, for any type, appears questionable or significantly exceeds the product of the number of eligibles, for that type, times an attendance factor, documentation showing good cause must be available for review by the State agency.\n\n(B) For each school selected for review, each type of food service line provides accurate point of service meal counts, by type, and those meal counts are correctly counted and recorded. If an alternative counting system is employed (in accordance with \u00a7 210.7(c)(2)), the State agency shall ensure that it provides accurate counts of reimbursable meals, by type, and is correctly implemented as approved by the State agency.\n\n(C) For each school selected for review, all meals are correctly counted, recorded, consolidated and reported for the day they are served.\n\n(2)  Performance Standard 2 (Lunches claimed for reimbursement by the school food authority meet the meal requirements in \u00a7 210.10, as applicable to the age/grade group reviewed. Breakfasts claimed for reimbursement by the school food authority meet the meal requirements in \u00a7 220.8 of this chapter, as applicable to the age/grade group reviewed. ) The State agency must follow review procedures, as stated in this section and detailed in the FNS  Administrative Review Manual,  to ensure that meals offered by the school food authority meet the food component and quantity requirements and the dietary specifications for each program, as applicable. Review of these critical areas may occur off-site or on-site. The State agency must also follow procedures consistent with this section, as specified in the FNS  Administrative Review Manual,  to review applicable areas of Performance Standard 2 in the National School Lunch Program's Afterschool Snacks and Seamless Summer Option, and in the Special Milk Program.\n\n(i)  Meal components and quantities.  For each school selected for review, the State agency must complete a USDA-approved menu tool, review documentation, and observe the meal service to ensure that meals offered by the reviewed schools meet the meal patterns for each program. To review this area, the State agency must:\n\n(A) Review menu and production records for the reviewed schools for a minimum of one school week ( i.e.,  a minimum number of three consecutive school days and a maximum of seven consecutive school days) from the review period. Documentation, including food crediting documentation, such as food labels, product formulation statements, CN labels and bid documentation, must be reviewed to ensure compliance with the lunch and breakfast meal patterns. If the documentation review reveals problems with food components or quantities, the State agency must expand the review to, at a minimum, the entire review period. The State agency should consider a school food authority compliant with the school meal pattern if:\n\n( 1 ) When evaluating the daily and weekly range requirements for grains and meat/meat alternates, the documentation shows compliance with the daily and weekly minimums for these components, regardless of whether the school food authority has exceeded the recommended weekly maximums for the same components.\n\n( 2 ) When evaluating the service of frozen fruit, the State agency determines that the school food authority serves frozen fruit with or without added sugar.\n\n(B) On the day of review, the State agency must:\n\n( 1 ) Observe a significant number of program meals, as described in the FNS Administrative Review Manual, at each serving line and review the corresponding documentation to determine whether all reimbursable meal service lines offer all of the required meal components/items and quantities for the age/grade groups being served, as required under \u00a7 210.10, as applicable, and \u00a7 220.8 of this chapter, as applicable. Observe meals at the beginning, middle and end of the meal service line, and confirm that signage or other methods are used to assist students in identifying the reimbursable meal. If the State agency identifies missing components or inadequate quantities prior to the beginning of the meal service, it must inform the school food authority and provide an opportunity to make corrections. Additionally, if visual observation suggests that quantities offered are insufficient or excessive, the State agency must require the reviewed schools to provide documentation demonstrating that the required amounts of each component were available for service for each day of the review period.\n\n( 2 ) Observe a significant number of the program meals counted at the point of service for each type of serving line to determine whether the meals selected by the students contain the meal components and food quantities required for a reimbursable meal under \u00a7 210.10, as applicable, and \u00a7 220.8 of this chapter, as applicable.\n\n( 3 ) If Offer versus Serve is in place, observe whether students select at least three meal components at lunch and at least three food items at breakfasts, and that the lunches and breakfasts include at least \n 1/2  cup of fruits or vegetables.\n\n(ii)  Dietary specifications.  The State agency must conduct a meal compliance risk assessment for each school selected for review to determine which school is at highest risk for nutrition-related violations. The State agency must conduct a targeted menu review for the school at highest risk for noncompliance using one of the options specified in the FNS  Administrative Review Manual.  Under the targeted menu review options, the State agency may conduct or validate an SFA-conducted nutrient analysis for both lunch and breakfast, or further evaluate risk for noncompliance and, at a minimum, conduct a nutrient analysis if further examination shows the school is at high risk for noncompliance with the dietary specifications in \u00a7 210.10 and \u00a7 220.8 of this chapter. The State agency is not required to assess compliance with the dietary specifications when reviewing meals for preschoolers, and the National School Lunch Program's Afterschool Snacks and the Seamless Summer Option.\n\n(iii)  Performance-based cash assistance.  If the school food authority is receiving performance-based cash assistance under \u00a7 210.7(d), the State agency must assess the school food authority's meal service and documentation of lunches served and determine its continued eligibility for the performance-based cash assistance.\n\n(h)  General areas of review.  The general areas listed in this paragraph reflect requirements that must be monitored by the State agency when conducting administrative reviews of the National School Lunch Program and the School Breakfast Program. Selected aspects of these general areas must also be monitored, as applicable and as specified in the FNS Administrative Review Manual, when conducting administrative reviews of the National School Lunch Program's Afterschool Snacks and Seamless Summer Option, the Fresh Fruit and Vegetable Program, and the Special Milk Program. State agencies may omit designated general areas of review, in part or entirely, where the school food authority or State agency has implemented FNS-specified error reduction strategies or utilized FNS-specified monitoring efficiencies. State agencies may omit designated general areas of review, in part or entirely, where the school food authority or State agency has implemented FNS-specified error reduction strategies or utilized FNS-specified monitoring efficiencies. The general areas of review must include, but are not limited to, the following:\n\n(1)  Resource management.  The State agency must conduct an assessment of the school food authority's nonprofit school food service account to evaluate the risk of noncompliance with resource management requirements. If risk indicators show that the school food authority is at high risk for noncompliance with resource management requirements, the State agency must conduct a comprehensive review including, but not limited to, the following areas using procedures specified in the FNS Administrative Review Manual.\n\n(i)  Maintenance of the nonprofit school food service account.  The State agency must confirm the school food authority's resource management is consistent with the maintenance of the nonprofit school food service account requirements in \u00a7\u00a7 210.2, 210.14, 210.19(a), and 210.21.\n\n(ii)  Paid lunch equity.  The State agency must review compliance with the requirements for pricing paid lunches in \u00a7 210.14(e).\n\n(iii)  Revenue from nonprogram foods.  The State agency must ensure that all non-reimbursable foods sold by the school food service, including, but not limited to, a la carte food items, adult meals, and vended meals, generate at least the same proportion of school food authority revenues as they contribute to school food authority food costs, as required in \u00a7 210.14(f).\n\n(iv)  Indirect costs.  The State agency must ensure that the school food authority follows fair and consistent methodologies to identify and allocate allowable indirect costs to school food service accounts, as required in 2 CFR part 200 and \u00a7 210.14(g).\n\n(2)  General Program Compliance \u2014(i)  Free and reduced price process.  In the course of the review of each school food authority, the State agency must:\n\n(A) Confirm the free and reduced price policy statement, as required in \u00a7 245.10 of this chapter, is implemented as approved.\n\n(B) Ensure that the process used to verify children's eligibility for free and reduced price meals in a sample of household applications is consistent with the verification requirements, procedures, and deadlines established in \u00a7 245.6a of this chapter.\n\n(C) Determine that, for each reviewed school, the meal count system does not overtly identify children eligible for free and reduced price meals, as required under \u00a7 245.8 of this chapter.\n\n(D) Review at least 10 denied applications to evaluate whether the determining official correctly denied applicants for free and reduced price meals, and whether denied households were provided notification in accordance with \u00a7 245.6(c)(7)of this chapter.\n\n(E) Confirm that a second review of applications has been conducted and that information has been correctly reported to the State agency as required in \u00a7 245.11, if applicable.\n\n(ii)  Civil rights.  The State agency must examine the school food authority's compliance with the civil rights provisions specified in \u00a7 210.23(b) to ensure that no child is denied benefits or otherwise discriminated against in any of the programs reviewed under this section because of race, color, national origin, age, sex, or disability.\n\n(iii)  School food authority on-site monitoring.  The State agency must ensure that the school food authority conducts on-site reviews of each school under its jurisdiction, as required by \u00a7\u00a7 210.8(a)(1) and 220.11(d) of this chapter, and monitors claims and readily observable general areas of review in accordance with \u00a7\u00a7 210.8(a)(2) and (a)(3), and 220.11(d) of this chapter.\n\n(iv)  Competitive food standards.  The State agency must ensure that the local educational agency and school food authority comply with the nutrition standards for competitive foods in \u00a7\u00a7 210.11 and 220.12 of this chapter, and retain documentation demonstrating compliance with the competitive food service and standards.\n\n(v)  Water.  The State agency must ensure that plain potable water is available and accessible to children at no charge as specified in \u00a7 210.10(a)(1)(i) and \u00a7 220.8(a)(1) of this chapter.\n\n(vi)  Food safety.  The State agency must examine records to confirm that each school food authority under its jurisdiction meets the food safety requirements of \u00a7 210.13.\n\n(vii)  Reporting and recordkeeping.  The State agency must determine that the school food authority submits reports and maintains records in accordance with program requirements in this part, and parts 220 and 245 of this chapter, and as specified in the FNS  Administrative Review Manual.\n\n(viii)  Program outreach.  The State agency must ensure the school food authority is conducting outreach activities to increase participation in the School Breakfast Program and the Summer Food Service Program, as required in \u00a7 210.12(d). If the State agency administering the Summer Food Service Program is not the same State agency that administers the National School Lunch Program, then the two State agencies must work together to implement outreach measures.\n\n(ix)  Professional standards.  The State agency shall ensure the local educational agency and school food authority complies with the professional standards for school nutrition program directors, managers, and personnel established in \u00a7 210.30.\n\n(x)  Local school wellness.  The State agency must ensure the local educational agency complies with the local school wellness requirements set forth in \u00a7 210.31.\n\n(xi)  Buy American.  The State agency must ensure that the school food authority complies with the Buy American requirements set forth in \u00a7 210.21(d) and 7 CFR 220.16(d), as specified in the FNS Administrative Review Manual.\n\n(i)  Entrance and exit conferences and notification \u2014(1)  Entrance conference.  The State agency may hold an entrance conference with the appropriate school food authority staff at the beginning of the on-site administrative review to discuss the results of any off-site assessments, the scope of the on-site review, and the number of schools to be reviewed.\n\n(2)  Exit conference.  The State agency must hold an exit conference at the close of the administrative review and of any subsequent follow-up review to discuss the violations observed, the extent of the violations and a preliminary assessment of the actions needed to correct the violations. The State agency must discuss an appropriate deadline(s) for completion of corrective action, provided that the deadline(s) results in the completion of corrective action on a timely basis.\n\n(3)  Notification.  The State agency must provide written notification of the review findings to the school food authority's Superintendent (or equivalent in a non-public school food authority) or authorized representative, preferably no later than 30 days after the exit conference for each review. The written notification must include the date(s) of review, date of the exit conference, review findings, the needed corrective actions, the deadlines for completion of the corrective action, and the potential fiscal action. As a part of the denial of all or a part of a Claim for Reimbursement or withholding payment in accordance with the provisions of this section, the State agency must provide the school food authority a written notice which details the grounds on which the denial of all or a part of the Claim for Reimbursement or withholding payment is based. This notice, must be provided by certified mail, or its equivalent, or sent electronically by email or facsimile. This notice shall also include a statement indicating that the school food authority may appeal the denial of all or a part of a Claim for Reimbursement or withholding payment and the entity ( i.e.,  FNS or State agency) to which the appeal should be directed. The notice is considered to be received by the school food authority when it is delivered by certified mail, return receipt (or the equivalent private delivery service), by facsimile, or by email. If the notice is undeliverable, it is considered to be received by the school food authority five days after being sent to the addressee's last known mailing address, facsimile number, or email address. The State agency shall notify the school food authority, in writing, of the appeal procedures as specified in paragraph (p) of this section for appeals of State agency findings, and for appeals of FNS findings, provide a copy of \u00a7 210.29(d)(3).\n\n(j)  Corrective action.  Corrective action is required for any violation under either the critical or general areas of the review. Corrective action must be applied to all schools in the school food authority, as appropriate, to ensure that deficient practices and procedures are revised system-wide. Corrective actions may include training, technical assistance, recalculation of data to ensure the accuracy of any claim that the school food authority is preparing at the time of the review, or other actions. Fiscal action must be taken in accordance with paragraph (l) of this section.\n\n(1)  Extensions of the timeframes.  If the State agency determines that extraordinary circumstances make a school food authority unable to complete the required corrective action within the timeframes specified by the State agency, the State agency may extend the timeframes upon written request of the school food authority.\n\n(2)  Documented corrective action.  Documented corrective action is required for any degree of violation of general or critical areas identified in an administrative review. Documented corrective action may be provided at the time of the review; however, it must be postmarked or submitted to the State agency electronically by email or facsimile, no later than 30 days from the deadline for completion of each required corrective action, as specified under paragraph (i)(2) of this section or as otherwise extended by the State agency under paragraph (j)(1) of this section. The State agency must maintain any documented corrective action on file for review by FNS.\n\n(k)  Withholding payment.  At a minimum, the State agency must withhold all program payments to a school food authority as follows:\n\n(1)  Cause for withholding.  (i) The State agency must withhold all Program payments to a school food authority if documented corrective action for critical area violations is not provided with the deadlines specified in paragraph (j)(2) of this section;\n\n(ii) The State agency must withhold all Program payments to a school food authority if the State agency finds that corrective action for critical area violation was not completed;\n\n(iii) The State agency may withhold Program payments to a school food authority at its discretion, if the State agency found a critical area violation on a previous review and the school food authority continues to have the same error for the same cause; and\n\n(iv) For general area violations, the State agency may withhold Program payments to a school food authority at its discretion, if the State agency finds that documented corrective action is not provided within the deadlines specified in paragraph (j)(2) of this section, corrective action is not complete, or corrective action was not taken as specified in the documented corrective action.\n\n(2)  Duration of withholding.  In all cases, Program payments must be withheld until such time as corrective action is completed, documented corrective action is received and deemed acceptable by the State agency, or the State agency completes a follow-up review and confirms that the problem has been corrected. Subsequent to the State agency's acceptance of the corrective actions, payments will be released for all meals served in accordance with the provisions of this part during the period the payments were withheld. In very serious cases, the State agency will evaluate whether the degree of non-compliance warrants termination in accordance with \u00a7 210.25.\n\n(3)  Exceptions.  The State agency may, at its discretion, reduce the amount required to be withheld from a school food authority pursuant to paragraph (k)(1)(i) through (iii) of this section by as much as 60 percent of the total Program payments when it is determined to be in the best interest of the Program. FNS may authorize a State agency to limit withholding of funds to an amount less than 40 percent of the total Program payments, if FNS determines such action to be in the best interest of the Program.\n\n(4)  Failure to withhold payments.  FNS may suspend or withhold Program payments, in whole or in part, to those State agencies failing to withhold Program payments in accordance with paragraph (k)(1) of this section and may withhold administrative funds in accordance with \u00a7 235.11(b) of this chapter. The withholding of Program payments will remain in effect until such time as the State agency documents compliance with paragraph (k)(1) of this section to FNS. Subsequent to the documentation of compliance, any withheld administrative funds will be released and payment will be released for any meals served in accordance with the provisions of this part during the period the payments were withheld.\n\n(l)  Fiscal action.  The State agency must take fiscal action for all Performance Standard 1 violations and specific Performance Standard 2 violations identified during an administrative review, including targeted follow-up review or other reviews, as specified in this section. Fiscal action must be taken in accordance with the principles in \u00a7 210.19(c) and the procedures established in the FNS Administrative Review Manual. The State agency must follow the fiscal action formula prescribed by FNS to calculate the correct entitlement for a school food authority or a school. While there is no fiscal action required for general area violations, the State agency has the ability to withhold funds for repeat or egregious violations occurring in the majority of the general areas as described in paragraph (k)(1)(iv) of this section.\n\n(1)  Performance Standard 1 violations.  A State agency is required to take fiscal action for Performance Standard 1 violations, in accordance with this paragraph and paragraph (l)(3).\n\n(i) For certification and benefit issuance errors cited under paragraph (g)(1)(i) of this section, the total number of free and reduced price meals claimed must be adjusted to according to procedures established by FNS.\n\n(ii) For meal counting and claiming errors cited under paragraph (g)(1)(ii) of this section, the State agency must apply fiscal action to the incorrect meal counts at the school food authority level, or only to the reviewed schools where violations were identified, as applicable.\n\n(2)  Performance Standard 2 violations.  Fiscal action for Performance Standard 2 violations applies as follows:\n\n(i) For missing meal components or missing production records cited under paragraph (g)(2) of this section, the State agency must apply fiscal action.\n\n(ii) For repeated violations involving food quantities, whole grain-rich foods, milk type, and vegetable subgroups cited under paragraph (g)(2) of this section, the State agency has discretion to apply fiscal action as follows:\n\n(A) If the meals contain insufficient quantities of the required meal components, the deficient meals may be disallowed and reclaimed.\n\n(B) If no whole grain-rich foods are offered during the week of review, meals for up to the entire week of review may be disallowed and reclaimed.\n\n(C) If insufficient whole grain-rich foods are offered during the week of review, meals for up to the entire week of review may be disallowed and/or reclaimed.\n\n(D) If an unallowable milk type is offered, or no milk variety is offered, the deficient meals may be disallowed and reclaimed.\n\n(E) If one vegetable subgroup is not offered over the course of the week of review, meals for up to the entire week of review may be disallowed and reclaimed.\n\n(F) If a weekly vegetable subgroup is offered in insufficient quantity to meet the weekly vegetable subgroup requirement, meals for one day of the week of review may be disallowed and reclaimed.\n\n(G) If the amount of juice offered exceeds the weekly limitation, meals for up to the entire week of review may be disallowed and/or reclaimed.\n\n(iii) For repeated violations of the dietary specifications cited under paragraph (g)(2)(ii) of this section, the State agency has discretion to apply fiscal action to the reviewed school as follows:\n\n(A) If the average meal offered over the course of the week of review does not meet one of the dietary specifications, meals for the entire week of review may be disallowed and reclaimed; and\n\n(B) Fiscal action is limited to the school selected for the targeted menu review and must be supported by a nutrient analysis of the meals at issue using USDA-approved software.\n\n(iv) The following conditions must be met prior to applying fiscal action as described in paragraphs (l)(2)(ii) and (iii) of this section:\n\n(A) Technical assistance has been given by the State agency;\n\n(B) Corrective action has been previously required and monitored by the State agency; and\n\n(C) The school food authority remains noncompliant with the meal requirements established in part 210 and part 220 of this chapter.\n\n(3)  Duration of fiscal action.  Fiscal action must be extended back to the beginning of the school year or that point in time during the current school year when the infraction first occurred for all violations of Performance Standard 1 and specific violations of Performance Standard 2. Based on the severity and longevity of the problem, the State agency may extend fiscal action back to previous school years. If corrective action occurs, the State agency may limit the duration of fiscal action for Performance Standard 1 and Performance Standard 2 violations as follows:\n\n(i)  Performance Standard 1 certification and benefit issuance violations.  The total number of free and reduced price meals claimed for the review period and the month of the on-site review must be adjusted to reflect the State calculated certification and benefit issuance adjustment factors.\n\n(ii)  Other Performance Standard 1 and Performance Standard 2 violations.  With the exception of violations described in paragraph (l)(3)(i) of this section, a State agency may limit fiscal action from the point corrective action occurs back through the beginning of the review period for errors.\n\n(A) If corrective action occurs during the on-site review month or after, the State agency would be required to apply fiscal action from the point corrective action occurs back through the beginning of the on-site review month,  and  for the review period;\n\n(B) If corrective action occurs during the review period, the State agency would be required to apply fiscal action from the point corrective action occurs back through the beginning of the review period;\n\n(C) If corrective action occurs prior to the review period, no fiscal action would be required; and\n\n(D) If corrective action occurs in a claim month between the review period and the on-site review month, the State agency would apply fiscal action only to the review period.\n\n(4)  Performance-based cash assistance.  In addition to fiscal action described in paragraphs (l)(2)(i) through (v) of this section, school food authorities found to be out of compliance with the meal patterns or nutrition standards set forth in \u00a7 210.10 may not earn performance-based cash assistance authorized under \u00a7 210.4(b)(1) unless immediate corrective action occurs. School food authorities will not be eligible for the performance-based reimbursement beginning the month immediately following the administrative review and, at State discretion, for the month of review. Performance-based cash assistance may resume beginning in the first full month the school food authority demonstrates to the satisfaction of the State agency that corrective action has taken place.\n\n(m)  Transparency requirement.  The most recent administrative review final results must be easily available to the public.\n\n(1) The State agency must post a summary of the most recent results for each school food authority on the State agency's public Web site, and make a copy of the final administrative review report available to the public upon request. A State agency may also strongly encourage each school food authority to post a summary of the most recent results on its public Web site, and make a copy of the final administrative review report available to the public upon request.\n\n(2) The summary must cover meal access and reimbursement, meal patterns and nutritional quality of school meals, school nutrition environment (including food safety, local school wellness policy, and competitive foods), civil rights, and program participation.\n\n(3) The summary must be posted no later than 30 days after the State agency provides the results of administrative review to the school food authority.\n\n(n)  Reporting requirement.  Each State agency must report to FNS the results of the administrative reviews by March 1 of each school year on a form designated by FNS. In such annual reports, the State agency must include the results of all administrative reviews conducted in the preceding school year.\n\n(o)  Recordkeeping.  Each State agency must keep records which document the details of all reviews and demonstrate the degree of compliance with the critical and general areas of review. Records must be retained as specified in \u00a7 210.23(c) and include documented corrective action, and documentation of withholding of payments and fiscal action, including recoveries made. Additionally, the State agency must have on file:\n\n(1) Criteria for selecting schools for administrative reviews in accordance with paragraphs (e)(2)(ii) and (i)(2)(ii) of this section.\n\n(2) Documentation demonstrating compliance with the statistical sampling requirements in accordance with paragraph (g)(1)(i) of this section, if applicable.\n\n(p)  School food authority appeal of State agency findings.  Except for FNS-conducted reviews authorized under \u00a7 210.29(d)(2), each State agency must establish an appeal procedure to be followed by a school food authority requesting a review of a denial of all or a part of the Claim for Reimbursement, withholding payment arising from administrative or follow-up review activity conducted by the State agency under this \u00a7 210.18, or fines established under \u00a7 210.26, or \u00a7 215.15 or \u00a7 220.18 of this chapter. State agencies may use their own appeal procedures provided the same procedures are applied to all appellants in the State and the procedures meet the following requirements: Appellants are assured of a fair and impartial hearing before an independent official at which they may be represented by legal counsel; decisions are rendered in a timely manner not to exceed 120 days from the date of the receipt of the request for review; appellants are afforded the right to either a review of the record with the right to file written information, or a hearing which they may attend in person; and adequate notice is given of the time, date, place and procedures of the hearing. If the State agency has not established its own appeal procedures or the procedures do not meet the above listed criteria, the State agency shall observe the following procedures at a minimum:\n\n(1) The written request for a review must be postmarked within 15 calendar days of the date the appellant received the notice of the denial of all or a part of the Claim for Reimbursement, withholding of payment, or fines established under \u00a7 210.26, or \u00a7 215.15 or \u00a7 220.18 of this chapter, and the State agency must acknowledge the receipt of the request for appeal within 10 calendar days;\n\n(2) The appellant may refute the action specified in the notice in person and by written documentation to the review official. In order to be considered, written documentation must be filed with the review official not later than 30 calendar days after the appellant received the notice. The appellant may retain legal counsel, or may be represented by another person. A hearing shall be held by the review official in addition to, or in lieu of, a review of written information submitted by the appellant only if the appellant so specifies in the letter of request for review. Failure of the appellant school food authority's representative to appear at a scheduled hearing shall constitute the appellant school food authority's waiver of the right to a personal appearance before the review official, unless the review official agrees to reschedule the hearing. A representative of the State agency shall be allowed to attend the hearing to respond to the appellant's testimony and to answer questions posed by the review official;\n\n(3) If the appellant has requested a hearing, the appellant and the State agency shall be provided with at least 10 calendar days advance written notice, sent by certified mail, or its equivalent, or sent electronically by email or facsimile, of the time, date and place of the hearing;\n\n(4) Any information on which the State agency's action was based shall be available to the appellant for inspection from the date of receipt of the request for review;\n\n(5) The review official shall be an independent and impartial official other than, and not accountable to, any person authorized to make decisions that are subject to appeal under the provisions of this section;\n\n(6) The review official shall make a determination based on information provided by the State agency and the appellant, and on program regulations;\n\n(7) Within 60 calendar days of the State agency's receipt of the request for review, by written notice, sent by certified mail, or its equivalent, or electronically by email or facsimile, the review official shall inform the State agency and the appellant of the determination of the review official. The final determination shall take effect upon receipt of the written notice of the final decision by the school food authority;\n\n(8) The State agency's action shall remain in effect during the appeal process; and\n\n(9) The determination by the State review official is the final administrative determination to be afforded to the appellant.\n\n(q)  FNS review activity.  The term \u201cState agency\u201d and all the provisions specified in paragraphs (a) through (h) of this section refer to FNS when FNS conducts administrative reviews in accordance with \u00a7 210.29(d)(2). FNS will notify the State agency of the review findings and the need for corrective action and fiscal action. The State agency shall pursue any needed follow-up activity."], ["7:7:4.1.1.1.1.4.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "D", "Subpart D\u2014Requirements for State Agency Participation", "", "\u00a7 210.19 Additional responsibilities.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988]", "(a)  General Program management.  Each State agency shall provide an adequate number of consultative, technical and managerial personnel to administer programs and monitor performance in complying with all Program requirements.\n\n(1)  Assurance of compliance for finances.  Each State agency shall ensure that school food authorities comply with the requirements to account for all revenues and expenditures of their nonprofit school food service. School food authorities shall meet the requirements for the allowability of nonprofit school food service expenditures in accordance with this part and, 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable. All costs resulting from contracts that do not meet the requirements of this part are unallowable nonprofit school food service account expenses. When the school food authority fails to incorporate State agency required changes to solicitation or contract documents, all costs resulting from the subsequent contract award are unallowable charges to the nonprofit school food service account. The State agency shall ensure compliance with the requirements to limit net cash resources and shall provide for approval of net cash resources in excess of three months' average expenditures. Each State agency shall monitor, through review or audit or by other means, the net cash resources of the nonprofit school food service in each school food authority participating in the Program. In the event that net cash resources exceed 3 months' average expenditures for the school food authority's nonprofit school food service or such other amount as may be approved in accordance with this paragraph, the State agency may require the school food authority to reduce the price children are charged for lunches, in a manner that is consistent with the paid lunch equity provision in \u00a7 210.14(e) and corresponding FNS guidance, improve food quality or take other action designed to improve the nonprofit school food service. In the absence of any such action, the State agency shall make adjustments in the rate of reimbursement under the Program. Each State agency shall ensure that school food authorities comply with the requirements for pricing paid lunches and nonprogram foods as required in \u00a7 210.14(e) and \u00a7 210.14(f).\n\n(2)  Improved management practices.  The State agency must work with the school food authority toward improving the school food authority's management practices where the State agency has found poor food service management practices leading to decreasing or low child participation, menu acceptance, or program efficiency. The State agency should provide training and technical assistance to the school food authority or direct the school food authority to places to obtain such resources, such as the Institute of Child Nutrition.\n\n(3)  Program compliance.  Each State agency shall require that school food authorities comply with the applicable provisions of this part. The State agency shall ensure compliance through audits, administrative reviews, technical assistance, training guidance materials or by other means.\n\n(4)  Investigations.  Each State agency shall promptly investigate complaints received or irregularities noted in connection with the operation of the Program, and shall take appropriate action to correct any irregularities. State agencies shall maintain on file, evidence of such investigations and actions. FNS and OIG may make reviews or investigations at the request of the State agency or where FNS or OIG determines reviews or investigations are appropriate.\n\n(5)  Food service management companies.  (i) The State agency must annually review and approve each contract and contract amendment, including all supporting documentation, between any school food authority and food service management company before implementation of the contract by either party to ensure compliance with all the provisions and standards set forth in this part.\n\n(A) When the State agency develops a prototype contract for use by the school food authority that meets the provisions and standards set forth in this part, this annual review may be limited to changes made to that contract.\n\n(B) The State agency may establish due dates for submission of the contract or contract amendment documents.\n\n(ii) The State agency must perform a review of each school food authority that contracts with a food service management company, at least once during each 5-year period. The reviews must examine the school food authority's compliance with \u00a7 210.16 of this part.\n\n(iii) The State agency may require all food service management companies to register with the State agency prior to contracting for food service with any school food authority in the State.\n\n(iv) State agencies must provide assistance to school food authorities upon request to assure compliance with the requirements for contracting with a food service management company.\n\n(b)  Donated food distribution information.  Information on schools eligible to receive donated foods available under section 6 of the National School Lunch Act (42 U.S.C. 1755) shall be prepared each year by the State agency with accompanying information on the average daily number of lunches to be served in such schools. This information shall be prepared as early as practicable each school year and forwarded no later than September 1 to the Distributing agency. The State agency shall be responsible for promptly revising the information to reflect additions or deletions of eligible schools, and for providing such adjustments in participation as are determined necessary by the State agency. Schools shall be consulted by the Distributing agency with respect to the needs of such schools relating to the manner of selection and distribution of commodity assistance.\n\n(c)  Fiscal action.  State agencies are responsible for ensuring Program integrity at the school food authority level. State agencies must take fiscal action against school food authorities for Claims for Reimbursement that are not properly payable, including, if warranted, the disallowance of funds for failure to take corrective action to comply with requirements in parts 210, 215, and 220 of this chapter. In taking fiscal action, State agencies must use their own procedures within the constraints of this part and must maintain all records pertaining to action taken under this section. The State agency may refer to FNS for assistance in making a claim determination under this part.\n\n(1)  Definition.  Fiscal action includes, but is not limited to, the recovery of overpayment through direct assessment or offset of future claims, disallowance of overclaims as reflected in unpaid Claims for Reimbursement, submission of a revised Claim for Reimbursement, and correction of records to ensure that unfiled Claims for Reimbursement are corrected when filed. Fiscal action also includes disallowance of funds for failure to take corrective action to meet the meal requirements in parts 210, 215, and 220 of this chapter, including the disallowance of performance-based cash assistance described in \u00a7 210.4(b)(1).\n\n(2)  General principles.  When taking fiscal action, State agencies shall consider the following:\n\n(i) The State agency shall identify the school food authority's correct entitlement and take fiscal action when any school food authority claims or receives more Federal funds than earned under \u00a7 210.7 of this part. In order to take fiscal action, the State agency shall identify accurate counts of reimbursable meals through available data, if possible. In the absence of reliable data, the State agency shall reconstruct the meal accounts in accordance with procedures established by FNS.\n\n(ii) Unless otherwise specified under \u00a7 210.18(l) of this part, fiscal action shall be extended back to the beginning of the school year or that point in time during the current school year when the infraction first occurred, as applicable. Based on the severity and longevity of the problem, the State agency may extend fiscal action back to previous school years, as applicable. The State agency shall ensure that any Claim for Reimbursement, filed subsequent to the reviews conducted under \u00a7 210.18 and prior to the implementation of corrective action, is limited to meals eligible for reimbursement under this part.\n\n(iii) In taking fiscal action, State agencies shall assume that children determined by the reviewer to be incorrectly approved for free and reduced price meals participated at the same rate as correctly approved children in the corresponding meal category.\n\n(3)  Failure to collect.  If a State agency fails to disallow a claim or recover an overpayment from a school food authority, as described in this section, FNS will notify the State agency that a claim may be assessed against the State agency. In all such cases, the State agency shall have full opportunity to submit evidence concerning overpayment. If after considering all available information, FNS determines that a claim is warranted, FNS will assess a claim in the amount of such overpayment against the State agency. If the State agency fails to pay any such demand for funds promptly, FNS will reduce the State agency's Letter of Credit by the sum due in accordance with FNS' existing offset procedures for Letter of Credit. In such event, the State agency shall provide the funds necessary to maintain Program operations at the level of earnings from a source other than the Program.\n\n(4)  Interest charge.  If an agreement cannot be reached with the State agency for payment of its debts or for offset of debts on its current Letter of Credit, interest will be charged against the State agency from the date the demand letter was sent, at the rate established by the Secretary of Treasury.\n\n(5)  Use of recovered payment.  The amounts recovered by the State agency from school food authorities may be utilized during the fiscal year for which the funds were initially available, first, to make payments to school food authorities for the purposes of the Program; and second, to repay any State funds expended in the reimbursement of claims under the Program and not otherwise repaid. Any amounts recovered which are not so utilized shall be returned to FNS in accordance with the requirements of this part.\n\n(6)  Exceptions.  The State agency need not disallow payment or collect an overpayment when any review or audit reveals that a school food authority is approving applications which indicate that the households' incomes are within the Income Eligibility Guidelines issued by the Department or the applications contain Supplemental Nutrition Assistance Program or TANF case numbers or FDPIR case numbers or other FDPIR identifiers but the applications are missing the information specified in paragraph (1)(ii) of the definition of  Documentation  in \u00a7 245.2 of this chapter.\n\n(7)  Claims adjustment.  FNS will have the authority to determine the amount of, to settle, and to adjust any claim arising under the Program, and to compromise or deny such claim or any part thereof. FNS will also have the authority to waive such claims if FNS determines that to do so would serve the purposes of the Program. This provision shall not diminish the authority of the Attorney General of the United States under section 516 of title 28, U.S. Code, to conduct litigation on behalf of the United States.\n\n(d)  Management evaluations.  Each State agency shall provide FNS with full opportunity to conduct management evaluations of all State agency Program operations and shall provide OIG with full opportunity to conduct audits of all State agency Program operations. Each State agency shall make available its records, including records of the receipt and disbursement of funds under the Program and records of any claim compromised in accordance with this paragraph, upon a reasonable request by FNS, OIG, or the Comptroller General of the United States. FNS and OIG retain the right to visit schools and OIG also has the right to make audits of the records and operations of any school. In conducting management evaluations, reviews, or audits in a fiscal year, the State agency, FNS, or OIG may disregard an overpayment if the overpayment does not exceed $600. A State agency may establish, through State law, regulation or procedure, an alternate disregard threshold that does not exceed $600. This disregard may be made once per each management evaluation, review, or audit per Program within a fiscal year. However, no overpayment is to be disregarded where there is substantial evidence of violations of criminal law or civil fraud statutes.\n\n(e)  Additional requirements.  Nothing contained in this part shall prevent a State agency from imposing additional requirements for participation in the Program which are not inconsistent with the provisions of this part.\n\n(f)  Cooperation with the Child and Adult Care Food Program.  On an annual basis, the State agency must provide the State agency which administers the Child and Adult Care Food Program with a list of all schools in the State participating in the National School Lunch Program in which 50 percent or more of enrolled children have been determined eligible for free or reduced price meals as of the last operating day of the previous October, or other month specified by the State agency. The lists must be provided by February 1 of each year or, if data is based on a month other than October, within 90 calendar days following the end of the month designated by the State agency. The State agency may provide updated free and reduced price enrollment data on individual schools to the State agency which administers the Child and Adult Care Food Program only when unusual circumstances render the initial data obsolete. In addition, the State agency must provide the current list, upon request, to sponsoring organizations of day care homes participating in the Child and Adult Care Food Program."], ["7:7:4.1.1.1.1.4.1.4", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "D", "Subpart D\u2014Requirements for State Agency Participation", "", "\u00a7 210.20 Reporting and recordkeeping.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 56 FR 32948, July 17, 1991; 56 FR 55527, Oct. 28, 1991; 64 FR 50741, Sept. 20, 1999; 70 FR 34630, June 15, 2005; 76 FR 35318, June 17, 2011; 78 FR 13449, Feb. 28, 2013; 79 FR 7054, Feb. 6, 2014; 80 FR 11092, Mar. 2, 2015; 81 FR 50193, July 29, 2016; 88 FR 57847, Aug. 23, 2023; 89 FR 32074, Apr. 25, 2024]", "(a)  Reporting summary.  Participating State agencies shall submit forms and reports to FNS to demonstrate compliance with Program requirements. The reports include but are not limited to:\n\n(1) Requests for cash to make reimbursement payments to school food authorities as required under \u00a7 210.5(a);\n\n(2) Information on the amounts of Federal Program funds expended and obligated to date (FNS-777) as required under \u00a7 210.5(d);\n\n(3) Statewide totals on Program participation (FNS-10) as required under \u00a7 210.5(d);\n\n(4) Information on State funds provided by the State to meet the State matching requirements (FNS-13) specified under \u00a7 210.17(g);\n\n(5) Results of reviews and audits;\n\n(6) The prices of paid lunches charged by each school food authority; and\n\n(7) For each local educational agency required to conduct a second review of applications under \u00a7 245.11 of this chapter, the number of free and reduced price applications subject to a second review, the results of the reviews including the number and percentage of reviewed applications for which the eligibility determination was changed, and a summary of the types of changes made.\n\n(b)  Recordkeeping summary.  Participating State agencies are required to maintain records to demonstrate compliance with Program requirements. The records include but are not limited to:\n\n(1) Accounting records and source documents to control the receipt, custody and disbursement of Federal Program funds as required under \u00a7 210.5(a);\n\n(2) Documentation supporting all school food authority claims paid by the State agency as required under \u00a7 210.5(d);\n\n(3) Documentation to support the amount the State agency reported having used for State revenue matching as required under \u00a7 210.17(h);\n\n(4) Records supporting the State agency's review of net cash resources as required under \u00a7 210.19(a);\n\n(5) Reports on the results of investigations of complaints received or irregularities noted in connection with Program operations as required under \u00a7 210.19(a)\n\n(6) Records of all reviews and audits, including records of action taken to correct Program violations; and records of fiscal action taken, including documentation of recoveries made;\n\n(7) Documentation of action taken to disallow improper claims submitted by school food authorities, as required by \u00a7 210.19(c) and as determined through claims processing, resulting from actions such as reviews, audits and USDA audits;\n\n(8) Records of USDA audit findings, State agency's and school food authorities' responses to them and of corrective action taken as required by \u00a7 210.22(a);\n\n(9) Records pertaining to civil rights responsibilities as defined under \u00a7 210.23(b);\n\n(10) Records supplied by the school food authorities showing the number of food safety inspections obtained by schools for the current and three most recent school years.\n\n(11) Records showing compliance with the requirements in \u00a7 210.14(e)(5) and records supplied annually by school food authorities showing paid meal prices charged as required by \u00a7 210.14(e)(6);\n\n(12) Records to document compliance with the requirements in \u00a7 210.14(f); and\n\n(13) Records for a three year period to demonstrate compliance with the professional standards for State directors of school nutrition programs established in \u00a7 235.11(h) of this chapter."], ["7:7:4.1.1.1.1.5.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "E", "Subpart E\u2014State Agency and School Food Authority Responsibilities", "", "\u00a7 210.21 Procurement.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 64 FR 50741, Sept. 20, 1999; 70 FR 70033, Nov. 21, 2005; 71 FR 39516, July 13, 2006; 72 FR 61491, Oct. 31, 2007; 76 FR 22607, Apr. 22, 2011; 77 FR 4153, Jan. 26, 2012; 81 FR 66489, Sept. 28, 2016; 88 FR 57847, Aug. 23, 2023; 89 FR 32074, Apr. 25, 2024]", "(a)  General.  State agencies and school food authorities shall comply with the requirements of this part and 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable, which implement the applicable requirements, concerning the procurement of all goods and services with nonprofit school food service account funds.\n\n(b)  Contractual responsibilities.  The standards contained in this part and 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable, do not relieve the State agency or school food authority of any contractual responsibilities under its contracts. The State agency or school food authority is the responsible authority, without recourse to FNS, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in connection with the Program. This includes, but is not limited to source evaluation, protests, disputes, claims, or other matters of a contractual nature. Matters concerning violation of law are to be referred to the local, State, or Federal authority that has proper jurisdiction.\n\n(c)  Procedures.  The State agency may elect to follow either the State laws, policies and procedures as authorized by 2 CFR 200.317, or the procurement standards for other governmental grantees and all governmental subgrantees in accordance with 2 CFR 200.318 through 2 CFR 200.326. Regardless of the option selected, States must ensure that all contracts include any clauses required by Federal statutes and executive orders and that the requirements 2 CFR 200.236 and Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Award are followed. A school food authority may use its own procurement procedures which reflect applicable State and local laws and regulations, provided that procurements made with nonprofit school food service account funds adhere to the standards set forth in this part and in 2 CFR part 200, subpart D, as applicable. School food authority procedures must include a written code of standards of conduct meeting the minimum standards of 2 CFR 200.318, as applicable.\n\n(1)  Pre-issuance review requirement.  The State agency may impose a pre-issuance review requirement on a school food authority's proposed procurement. The school food authority must make available, upon request by the State agency, its procurement documents, including but not limited to solicitation documents, specifications, evaluation criteria, procurement procedures, proposed contracts and contract terms. School food authorities shall comply with State agency requests for changes to procurement procedures and solicitation and contract documents to ensure that, to the State agency's satisfaction, such procedures and documents reflect applicable procurement and contract requirements and the requirements of this part.\n\n(2)  Prototype solicitation documents and contracts.  The school food authority must obtain the State agency's prior written approval for any change made to prototype solicitation or contract documents before issuing the revised solicitation documents or execution of the revised contract.\n\n(3)  Prohibited expenditures.  No expenditure may be made from the nonprofit school food service account for any cost resulting from a procurement failing to meet the requirements of this part.\n\n(d)  Buy American \u2014(1)  Definitions.  For the purpose of this paragraph (d):\n\n(i)  Domestic commodity or product  means:\n\n(A) An agricultural commodity that is produced in the United States; and\n\n(B) A food product that is processed in the United States substantially using agricultural commodities that are produced in the United States.\n\n(ii)  Substantially using agriculture commodities that are produced in the United States  means over 51 percent of a food product must consist of agricultural commodities that were grown domestically.\n\n(2)  In general.  Subject to paragraph (d)(4) of this section, a school food authority must purchase, to the maximum extent practicable, domestic commodities or products.\n\n(3)  Required language.  School food authorities must include language requiring the purchase of foods that meet the Buy American requirements in paragraph (d)(1) of this section in all procurement procedures, solicitations, and contracts.\n\n(4)  Limitations.  Paragraphs (d)(2) and (3) of this section apply only to:\n\n(i) A school food authority located in the contiguous United States; and\n\n(ii) A purchase of domestic commodity or product for the school lunch program under this part.\n\n(5)  Exceptions.  The purchase of foods not meeting the definition in paragraph (d)(1) of this section is only permissible when the following criteria are met:\n\n(i) The school food authority determines that one of the following limited exceptions is met:\n\n(A) The product is listed in the Federal Acquisitions Regulations (FAR) at 48 CFR 25.104 and/or is not produced or manufactured in the U.S. in sufficient and reasonably available quantities of a satisfactory quality; or\n\n(B) Competitive bids reveal the cost of a United States product is significantly higher than the non-domestic product.\n\n(ii) Non-domestic food purchases (those that do not meet the definition of domestic commodity or product, as defined in paragraph (d)(1) of this section) must not exceed the following caps by the established deadlines:\n\n(A) By July 1, 2025, non-domestic food purchases must not exceed 10 percent of total annual commercial food costs that a school food authority purchases per school year.\n\n(B) By July 1, 2028, non-domestic food purchases must not exceed 8 percent of total annual commercial food costs that a school food authority purchases per school year.\n\n(C) By July 1, 2031, non-domestic food purchases must not exceed 5 percent of total annual commercial food costs that a school food authority purchases per school year.\n\n(iii) School food authorities must maintain documentation, except when the item purchased is found on the FAR at 48 CFR 25.104 when using an exception under paragraph (d)(5)(i) of this section.\n\n(iv) School food authorities must maintain documentation, to demonstrate that when using an exception under paragraph (d)(5)(i) of this section their non-domestic food purchases do not exceed the annual threshold specified in paragraph (d)(5)(ii) of this section.\n\n(6)  Harvested fish.  To meet the definition of a domestic commodity or product, harvested fish must meet the following requirements:\n\n(i) Farmed fish must be harvested within the United States or any territory or possession of the United States; and\n\n(ii) Wild caught fish must be harvested within the Exclusive Economic Zone of the United States or by a United States flagged vessel.\n\n(7)  Applicability to Hawaii.  Paragraph (d)(2) of this section applies to school food authorities in Hawaii with respect to domestic commodities or products that are produced in Hawaii in sufficient quantities to meet the needs of meals provided under the school lunch program under this part.\n\n(8)  Temporary accommodation.  For school food authorities that demonstrate they cannot meet the threshold, State agencies may provide an accommodation for temporary relief from the requirement as the State agency works with the school food authority to increase domestic purchases.\n\n(e)  Restrictions on the sale of milk.  A school food authority participating in the Program, or a person approved by a school participating in the Program, must not directly or indirectly restrict the sale or marketing of fluid milk (as described in \u00a7 210.10(d)(4) of this chapter) at any time or in any place on school premises or at any school-sponsored event.\n\n(f)  Cost reimbursable contracts \u2014(1)  Required provisions.  The school food authority must include the following provisions in all cost reimbursable contracts, including contracts with cost reimbursable provisions, and in solicitation documents prepared to obtain offers for such contracts:\n\n(i) Allowable costs will be paid from the nonprofit school food service account to the contractor net of all discounts, rebates and other applicable credits accruing to or received by the contractor or any assignee under the contract, to the extent those credits are allocable to the allowable portion of the costs billed to the school food authority;\n\n(ii)(A) The contractor must separately identify for each cost submitted for payment to the school food authority the amount of that cost that is allowable (can be paid from the nonprofit school food service account) and the amount that is unallowable (cannot be paid from the nonprofit school food service account); or\n\n(B) The contractor must exclude all unallowable costs from its billing documents and certify that only allowable costs are submitted for payment and records have been established that maintain the visibility of unallowable costs, including directly associated costs in a manner suitable for contract cost determination and verification;\n\n(iii) The contractor's determination of its allowable costs must be made in compliance with the applicable Departmental and Program regulations and Office of Management and Budget cost circulars;\n\n(iv) The contractor must identify the amount of each discount, rebate and other applicable credit on bills and invoices presented to the school food authority for payment and individually identify the amount as a discount, rebate, or in the case of other applicable credits, the nature of the credit. If approved by the State agency, the school food authority may permit the contractor to report this information on a less frequent basis than monthly, but no less frequently than annually;\n\n(v) The contractor must identify the method by which it will report discounts, rebates and other applicable credits allocable to the contract that are not reported prior to conclusion of the contract; and\n\n(vi) The contractor must maintain documentation of costs and discounts, rebates and other applicable credits, and must furnish such documentation upon request to the school food authority, the State agency, or the Department.\n\n(2)  Prohibited expenditures.  No expenditure may be made from the nonprofit school food service account for any cost resulting from a cost reimbursable contract that fails to include the requirements of this section, nor may any expenditure be made from the nonprofit school food service account that permits or results in the contractor receiving payments in excess of the contractor's actual, net allowable costs.\n\n(g)  Geographic preference.  (1) A school food authority participating in the Program, as well as State agencies making purchases on behalf of such school food authorities, may apply a geographic preference when procuring unprocessed locally grown or locally raised agricultural products, including the use of \u201clocally grown\u201d, \u201clocally raised\u201d, or \u201clocally caught\u201d as procurement specifications or selection criteria for unprocessed or minimally processed food items. When utilizing the geographic preference to procure such products, the school food authority making the purchase or the State agency making purchases on behalf of such school food authorities have the discretion to determine the local area to which the geographic preference option will be applied, so long as there are an appropriate number of qualified firms able to compete;\n\n(2) For the purpose of applying the optional geographic procurement preference in paragraph (g)(1) of this section, \u201cunprocessed locally grown or locally raised agricultural products\u201d means only those agricultural products that retain their inherent character. The effects of the following food handling and preservation techniques shall not be considered as changing an agricultural product into a product of a different kind or character: Cooling; refrigerating; freezing; size adjustment made by peeling, slicing, dicing, cutting, chopping, shucking, and grinding; forming ground products into patties without any additives or fillers; drying/dehydration; washing; packaging (such as placing eggs in cartons), vacuum packing and bagging (such as placing vegetables in bags or combining two or more types of vegetables or fruits in a single package); the addition of ascorbic acid or other preservatives to prevent oxidation of produce; butchering livestock and poultry; cleaning fish; and the pasteurization of milk.\n\n(h)  Procurement training.  (1) State directors of school nutrition programs, State directors of distributing agencies, and school nutrition program directors, management, and staff tasked with National School Lunch Program procurement responsibilities must complete annual training on Federal procurement standards annually.\n\n(2) Procurement training may count towards the professional standards training standards at \u00a7 210.30(g) of this part and \u00a7 235.11(h) of this chapter.\n\n(3) State agencies and school food authorities must retain records to document compliance with the requirement in this section."], ["7:7:4.1.1.1.1.5.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "E", "Subpart E\u2014State Agency and School Food Authority Responsibilities", "", "\u00a7 210.22 Audits.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 71 FR 39516, July 13, 2006; 81 FR 66488, Sept. 28, 2016]", "(a)  General.  Unless otherwise exempt, audits at the State and school food authority levels shall be conducted in accordance with 2 CFR part 200, subpart F and Appendix XI (Compliance Supplement) and USDA implementing regulations 2 CFR part 400 and part 415.\n\n(b)  Audit procedure.  These requirements call for organization-wide financial and compliance audits to ascertain whether financial operations are conducted properly; financial statements are presented fairly; recipients and subrecipients comply with the laws and regulations that affect the expenditures of Federal funds; recipients and subrecipients have established procedures to meet the objectives of federally assisted programs; and recipients and subrecipients are providing accurate and reliable information concerning grant funds. States and school food authorities shall use their own procedures to arrange for and prescribe the scope of independent audits, provided that such audits comply with the requirements set forth in 2 CFR part 200, subpart F and Appendix XI, and USDA implementing regulations 2 CFR part 400 and part 415."], ["7:7:4.1.1.1.1.5.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "E", "Subpart E\u2014State Agency and School Food Authority Responsibilities", "", "\u00a7 210.23 Other responsibilities.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988, as amended at 58 FR 42489, Aug. 10, 1993; 64 FR 50741, Sept. 20, 1999; 72 FR 24183, May 2, 2007; 76 FR 22797, Apr. 25, 2011; 76 FR 37982, June 29, 2011; 81 FR 50193, July 29, 2016; 89 FR 32075, Apr. 25, 2024]", "(a)  Free and reduced price lunches and afterschool snacks.  State agencies and school food authorities must ensure that lunches and afterschool snacks are made available free or at a reduced price to all children who are determined by the school food authority to be eligible for such benefits. The determination of a child's eligibility for free or reduced price lunches and afterschool snacks must made in accordance with part 245 of this chapter.\n\n(b)  Civil rights.  In the operation of the Program, no child shall be denied benefits or be otherwise discriminated against because of race, color, national origin, age, sex, or disability. State agencies and school food authorities shall comply with the requirements of: Title VI of the Civil Rights Act of 1964; title IX of the Education Amendments of 1972; section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975; Department of Agriculture regulations on nondiscrimination (7 CFR parts 15, 15a, and 15b); and FNS Instruction 113-1.\n\n(c)  Retention of records.  State agencies and school food authorities may retain necessary records in their original form or on microfilm. State agency records shall be retained for a period of 3 years after the date of submission of the final Financial Status Report for the fiscal year. School food authority records shall be retained for a period of 3 years after submission of the final Claim for Reimbursement for the fiscal year. In either case, if audit findings have not been resolved, the records shall be retained beyond the 3-year period as long as required for the resolution of the issues raised by the audit.\n\n(d)  Program evaluations.  States, State agencies, local educational agencies, school food authorities, schools and contractors must cooperate in studies and evaluations conducted by or on behalf of the Department, related to programs authorized under the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966."], ["7:7:4.1.1.1.1.6.1.1", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.24 Withholding payments.", "FNS", "", "", "[56 FR 32948, July 17, 1991, as amended at 71 FR 39516, July 13, 2006; 72 FR 61492, Oct. 31, 2007; 81 FR 66488, Sept. 28, 2016]", "In accordance with Departmental regulations at 2 CFR 200.338 through 200.342, the State agency shall withhold Program payments, in whole or in part, to any school food authority which has failed to comply with the provisions of this part. Program payments shall be withheld until the school food authority takes corrective action satisfactory to the State agency, or gives evidence that such corrective action will be taken, or until the State agency terminates the grant in accordance with \u00a7 210.25 of this part. Subsequent to the State agency's acceptance of the corrective actions, payments will be released for any lunches served in accordance with the provisions of this part during the period the payments were withheld."], ["7:7:4.1.1.1.1.6.1.10", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.33 OMB control numbers.", "FNS", "", "", "[80 FR 11092, Mar. 2, 2015. Redesignated at 81 FR 50169, July 29, 2016]", "The following control numbers have been assigned to the information collection requirements in 7 CFR part 210 by the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1980, Public Law 96-511."], ["7:7:4.1.1.1.1.6.1.11", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.34 Seamless Summer Option non-congregate meal service.", "FNS", "", "", "[88 FR 90347, Dec. 29, 2023]", "A school food authority operating the Seamless Summer Option in a rural area may be approved to offer a non-congregate meal service consistent with that established in part 225 of this chapter. Such school food authorities must comply with the non-congregate meal service provisions set forth at \u00a7 225.16(b)(5)(i) and (iv) of this chapter and may use the non-congregate meal service options contained in \u00a7 225.16(i) of this chapter."], ["7:7:4.1.1.1.1.6.1.2", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.25 Suspension, termination and grant closeout procedures.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988. Redesignated at 56 FR 32948, July 17, 1991, and amended at 71 FR 39516, July 13, 2006; 81 FR 66488, 66490, Sept. 28, 2016]", "Whenever it is determined that a State agency has materially failed to comply with the provisions of this part, or with FNS guidelines and instructions, FNS may suspend or terminate the Program in whole, or in part, or take any other action as may be available and appropriate. A State agency may also terminate the Program by mutual agreement with FNS. FNS and the State agency shall comply with the provisions of 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415 concerning grant suspension, termination and closeout procedures. Furthermore, the State agency shall apply these provisions, as applicable, to suspension or termination of the Program in school food authorities."], ["7:7:4.1.1.1.1.6.1.3", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.26 Penalties and fines.", "FNS", "", "", "[88 FR 57847, Aug. 23, 2023]", "(a)  Penalties.  Whomever embezzles, willfully misapplies, steals, or obtains by fraud any funds, assets, or property provided under this part whether received directly or indirectly from the Department will, if such funds, assets, or property are of a value of $100 or more, be fined no more than $25,000 or imprisoned not more than 5 years or both; or if such funds, assets, or property are of a value of less than $100, be fined not more than $1,000 or imprisoned not more than 1 year or both. Whomever receives, conceals, or retains for personal use or gain, funds, assets, or property provided under this part, whether received directly or indirectly from the Department, knowing such funds, assets, or property have been embezzled, willfully misapplied, stolen, or obtained by fraud, will be subject to the same penalties.\n\n(b)  Fines.  (1) The State agency may establish a fine against any school food authority when it has determined that the school food authority or a school under its agreement has:\n\n(i) Failed to correct severe mismanagement of this Program or a Child Nutrition Program under parts 225 or 226 of this chapter;\n\n(ii) Disregarded a Program requirement of which the school food authority or school had been informed; or\n\n(iii) Failed to correct repeated violations of Program requirements under this part or under parts 225 or 226 of this chapter.\n\n(2) FNS may direct the State agency to establish a fine against any school food authority when it has determined that the school food authority or school meets the criteria set forth under paragraph (b)(1) of this section.\n\n(3) Funds used to pay fines established under this paragraph must be derived from non-Federal sources. The State agency must calculate the fine based on the amount of Program reimbursement earned by the school food authority or school for the most recent fiscal year for which full year data is available, provided that the fine does not exceed the equivalent of:\n\n(i) For the first fine, 1 percent of the amount of meal reimbursement earned for the fiscal year;\n\n(ii) For the second fine, 5 percent of the amount of meal reimbursement earned for the fiscal year; and\n\n(iii) For the third or subsequent fine, 10 percent of the amount of meal reimbursement earned for the fiscal year.\n\n(4) The State agency must inform FNS at least 30 days prior to establishing the fine under this paragraph. The State agency must send the school food authority written notification of the fine established under this paragraph and provide a copy of the notification to FNS. The notification must:\n\n(i) Specify the violations or actions which constitute the basis for the fine and indicate the amount of the fine;\n\n(ii) Inform the school food authority that it may appeal the fine and advise the school food authority of the appeal procedures established under \u00a7 210.18(p);\n\n(iii) Indicate the effective date and payment procedures should the school food authority not exercise its right to appeal within the specified timeframe.\n\n(5) Any school food authority subject to a fine under paragraph (b)(1) of this section may appeal the State agency's determination. In appealing a fine, the school food authority must submit to the State agency any pertinent information, explanation, or evidence addressing the Program violations identified by the State agency. Any school food authority seeking to appeal the State agency determination must follow State agency appeal procedures.\n\n(6) The decision of the State agency review official is final and not subject to further administrative or judicial review. Failure to pay a fine established under this paragraph may be grounds for suspension or termination.\n\n(7) Money received by the State agency as a result of a fine established under this paragraph against a school food authority and any interest charged in the collection of these fines must be remitted to FNS, and then remitted to the United States Treasury."], ["7:7:4.1.1.1.1.6.1.4", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.27 Educational prohibitions.", "FNS", "", "", "[53 FR 29147, Aug. 2, 1988. Redesignated at 56 FR 32948, July 17, 1991, as amended at 64 FR 50741, Sept. 20, 1999]", "In carrying out the provisions of the Act, the Department shall not impose any requirements with respect to teaching personnel, curriculum, instructions, methods of instruction, or materials of instruction in any school as a condition for participation in the Program."], ["7:7:4.1.1.1.1.6.1.5", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.28 Pilot project exemptions.", "FNS", "", "", "[55 FR 41504, Oct. 12, 1990. Redesignated at 56 FR 32948, July 17, 1991, And further redesignated at 64 FR 50741, Sept. 20, 1999]", "Those State agencies or school food authorities selected for the pilot projects mandated under section 18(d) of the Act may be exempted by the Department from some or all of the counting and free and reduced price application requirements of this part and 7 CFR part 245, as necessary, to conduct an approved pilot project. Additionally, those schools selected for pilot projects that also operate the School Breakfast Program (7 CFR part 220) and/or the Special Milk Program for Children (7 CFR part 215), may be exempted from the counting and free and reduced price application requirements mandated under these Programs. The Department shall notify the appropriate State agencies and school food authorities of its determination of which requirements are exempted after the Department's selection of pilot projects."], ["7:7:4.1.1.1.1.6.1.6", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.29 Management evaluations.", "FNS", "", "", "[56 FR 32949, July 17, 1991, as amended at 57 FR 38586, Aug. 26, 1992. Redesignated at 64 FR 50741, Sept. 20, 1999, as amended at 81 FR 50193, July 29, 2016; 89 FR 32075, Apr. 25, 2024]", "(a)  Management evaluations.  FNS will conduct a comprehensive management evaluation of each State agency's administration of the National School Lunch Program.\n\n(b)  Basis for evaluations.  FNS will evaluate all aspects of State agency management of the Program using tools such as State agency reviews as required under \u00a7 210.18 of this part; reviews conducted by FNS in accordance with \u00a7 210.18 of this part; FNS reviews of school food authorities and schools authorized under \u00a7 210.19(a)(4) of this part; follow-up actions taken by the State agency to correct violations found during reviews; FNS observations of State agency reviews; and audit reports.\n\n(c)  Scope of management evaluations.  The management evaluation will determine whether the State agency has taken steps to ensure school food authority compliance with Program regulations, and whether the State agency is administering the Program in accordance with Program requirements and good management practices.\n\n(1)  Local compliance.  FNS will evaluate whether the State agency has actively taken steps to ensure that school food authorities comply with the provisions of this part.\n\n(2)  State agency compliance.  FNS will evaluate whether the State agency has fulfilled its State level responsibilities, including, but not limited to the following areas: use of Federal funds; reporting and recordkeeping; agreements with school food authorities; review of food service management company contracts; review of the claims payment process; implementation of the State agency's monitoring responsibilities; initiation and completion of corrective action; recovery of overpayments; disallowance of claims that are not properly payable; withholding of Program payments; oversight of school food authority procurement activities; training and guidance activities; civil rights; and compliance with the State Administrative Expense Funds requirements as specified in 7 CFR part 235.\n\n(d)  School food authority reviews.  FNS will examine State agency administration of the Program by reviewing local Program operations. When conducting these reviews under paragraph (d)(2) of this section, FNS will follow all the administrative review requirements specified in \u00a7 210.18(a)-(h) of this part. When FNS conducts reviews, the findings will be sent to the State agency to ensure all the needed follow-up activity occurs. The State agency will, in all cases, be invited to accompany FNS reviewers.\n\n(1)  Observation of State agency reviews.  FNS may observe the State agency conduct of any review as required under this part. At State agency request, FNS may assist in the conduct of the review.\n\n(2)  Section 210.18 reviews.  FNS will conduct administrative reviews in accordance with \u00a7 210.18(a)-(h) of this part which will count toward meeting the State agency responsibilities identified under \u00a7 210.18 of this part.\n\n(3)  School food authority appeal of FNS findings.  When administrative or follow-up review activity conducted by FNS in accordance with the provisions of paragraph (d)(2) of this section results in the denial of all or part of a Claim for Reimbursement or withholding of payment, a school food authority may appeal the FNS findings by filing a written request with the Food and Nutrition Service in accordance with the appeal procedures specified in this paragraph (d)(3):\n\n(i) The written request for a review of the record shall be postmarked within 15 calendar days of the date the appellant received the notice of the denial of all or a part of the Claim for Reimbursement or withholding payment and the envelope containing the request shall be prominently marked \u201cREQUEST FOR REVIEW\u201d. FNS will acknowledge the receipt of the request for appeal within 10 calendar days. The acknowledgement will include the name and address of the FNS Administrative Review Officer (ARO) reviewing the case. FNS will also notify the State agency of the request for appeal.\n\n(ii) The appellant may refute the action specified in the notice in person and by written documentation to the ARO. In order to be considered, written documentation must be filed with the ARO not later than 30 calendar days after the appellant received the notice. The appellant may retain legal counsel, or may be represented by another person. A hearing shall be held by the ARO in addition to, or in lieu of, a review of written information submitted by the appellant only if the appellant so specifies in the letter of request for review. Failure of the appellant school food authority's representative to appear at a scheduled hearing shall constitute the appellant school food authority's waiver of the right to a personal appearance before the ARO, unless the ARO agrees to reschedule the hearing. A representative of FNS shall be allowed to attend the hearing to respond to the appellant's testimony and to answer questions posed by the ARO;\n\n(iii) If the appellant has requested a hearing, the appellant shall be provided with a least 10 calendar days advance written notice, sent by certified mail, return receipt requested, of the time, date, and place of the hearing;\n\n(iv) Any information on which FNS's action was based shall be available to the appellant for inspection from the date of receipt of the request for review;\n\n(v) The ARO shall be an independent and impartial official other than, and not accountable to, any person authorized to make decisions that are subject to appeal under the provisions of this section;\n\n(vi) The ARO shall make a determination based on information provided by FNS and the appellant, and on Program regulations;\n\n(vii) Within 60 calendar days of the receipt of the request for review, by written notice, sent by certified mail, return receipt requested, the ARO shall inform FNS, the State agency and the appellant of the determination of the ARO. The final determination shall take effect upon receipt of the written notice of the final decision by the school food authority;\n\n(viii) The action being appealed shall remain in effect during the appeal process;\n\n(ix) The determination by the ARO is the final administrative determination to be afforded to the appellant.\n\n(4)  Coordination with State agency.  FNS will coordinate school food authority selection with the State agency to ensure that no unintended overlap exists and to ensure reviews are conducted in a consistent manner.\n\n(e)  Management evaluation findings.  FNS will consider the results of all its review activity within each State, including school food authority reviews, in performing management evaluations and issuing management evaluation reports. FNS will communicate the findings of the management evaluation to appropriate State agency personnel in an exit conference. Subsequent to the exit conference, the State agency will be notified in writing of the management evaluation findings and any needed corrective actions or fiscal sanctions in accordance with the provisions \u00a7 210.25 of this part and/or 7 CFR part 235."], ["7:7:4.1.1.1.1.6.1.7", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.30 School nutrition program professional standards.", "FNS", "", "", "[80 FR 11092, Mar. 2, 2015; 80 FR 26181, May 7, 2015. Redesignated at 81 FR 50169, July 29, 2016 and further redesignated and amended at 81 FR 93792, Dec. 22, 2016; 84 FR 6959, Mar. 1, 2019; 84 FR 8247, Mar. 7, 2019; 88 FR 57848, Aug. 23, 2023; 89 FR 32075, Apr. 25, 2024]", "(a)  General.  School food authorities that operate the National School Lunch Program, or the School Breakfast Program (part 220 of this chapter), must establish and implement professional standards for school nutrition program directors, managers, and staff, as defined in \u00a7 210.2.\n\n(b)  Minimum standards for all school nutrition program directors.  Each school food authority must ensure that all newly hired school nutrition program directors meet minimum hiring standards and ensure that all new and existing directors have completed the minimum annual training/education requirements for school nutrition program directors, as set forth below:\n\n(1)  Hiring standards.  All school nutrition program directors hired on or after July 1, 2015, must meet the following minimum educational requirements, as applicable:\n\n(i)  School nutrition program directors with local educational agency enrollment of 2,499 students or fewer.  Directors must meet the requirements in paragraph (b)(1)(i)(A), (B), (C), or (D) of this section. However, a State agency may approve a school food authority to use the nonprofit school food service account to pay the salary of a school nutrition program director who does not meet the hiring standards herein so long as the school food authority is complying with a State agency-approved plan to ensure the director will meet the requirements.\n\n(A) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with an academic major or concentration in food and nutrition, food service management, dietetics, family and consumer sciences, nutrition education, culinary arts, business, or a related field;\n\n(B) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with any academic major or area of concentration, and either a State-recognized certificate for school nutrition directors, or at least one year of relevant food service experience. At the discretion of the State agency, and on an individual basis, documented relevant food service experience may be unpaid;\n\n(C) An associate's degree, or equivalent educational experience, as determined by the State agency, with an academic major or area of concentration in food and nutrition, food service management, dietetics, family and consumer sciences, nutrition education, culinary arts, business, or a related field and at least one year of relevant food service experience. At the discretion of the State agency, and on an individual basis, documented relevant food service experience may be unpaid; or\n\n(D) A high school diploma or equivalency (such as the general educational development diploma), and at least three years of relevant food service experience. At the discretion of the State agency, and on an individual basis, documented relevant food service experience may be unpaid. Directors hired under this criterion are strongly encouraged to work toward attaining an associate's degree in an academic major in at least one of the fields listed in paragraph (b)(1)(i)(C) of this section.\n\n(ii)  School nutrition program directors with local educational agency enrollment of 2,500 to 9,999 students.  Directors must meet the requirements in either paragraph (b)(1)(ii)(A), (B), (C), or (D) of this section.\n\n(A) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with an academic major or concentration in food and nutrition, food service management, dietetics, family and consumer sciences, nutrition education, culinary arts, business, or a related field;\n\n(B) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with any academic major or area of concentration, and a State-recognized certificate for school nutrition directors;\n\n(C) A bachelor's degree in any academic major and at least two years of relevant experience in school nutrition programs; or\n\n(D) An associate's degree, or equivalent educational experience, as determined by the State agency, with an academic major or area of concentration in food and nutrition, food service management, dietetics, family and consumer sciences, nutrition education, culinary arts, business, or a related field and at least two years of relevant school nutrition program experience. Directors hired with an associate's degree are strongly encouraged to work toward attaining a bachelor's degree in an academic major in the fields listed in this paragraph (b)(1)(ii)(D).\n\n(iii)  School nutrition program directors with local educational agency enrollment of 10,000 or more students.  Directors must meet the requirements in either paragraph (b)(1)(iii)(A), (B), or (C) of this section.\n\n(A) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with an academic major or area of concentration in food and nutrition, food service management, dietetics, family and consumer sciences, nutrition education, culinary arts, business, or a related field;\n\n(B) A bachelor's degree, or equivalent educational experience, as determined by the State agency, with any academic major or area of concentration, and a State-recognized certificate for school nutrition directors; or\n\n(C) A bachelor's degree in any major and at least five years of experience in management of school nutrition programs.\n\n(D) School food authorities are strongly encouraged to seek out individuals who possess a master's degree or are willing to work toward a master's degree in the fields listed in this paragraph. At least one year of management experience, preferably in school nutrition, is strongly recommended. It is also strongly recommended that directors have at least three credit hours at the university level in food service management and at least three credit hours in nutritional sciences at the time of hire.\n\n(iv)  Exceptions to the hiring standards.  (A) For a local educational agency with less than 500 students, the State agency may approve the hire of a director who meets one of the educational criteria in paragraphs (b)(1)(i)(B) through (D) of this section but has less than the required years of relevant food service experience.\n\n(B) For a local educational agency with 2,500 or more students, the State agency may approve the hire of a director who does not meet the educational criteria in paragraphs (b)(1)(ii)(A) through (D) or paragraphs (b)(1)(iii)(A) through (C) of this section, as applicable, but who has at least 10 years of school nutrition program experience.\n\n(C) Acting school nutrition program directors are not required to meet the hiring standards established in this paragraph (b)(1) of this section; however, the State agency may require acting school nutrition program directors expected to serve for more than 30 business days to meet the hiring standards established in established in this paragraph (b)(1).\n\n(v)  School nutrition program directors for all local educational agency sizes.  All school nutrition program directors, for all local educational agency sizes, must have completed at least eight hours of food safety training within five years prior to their starting date or complete eight hours of food safety training within 30 calendar days of their starting date. At the discretion of the State agency, all school nutrition program directors, regardless of their starting date, may be required to complete eight hours of food safety training every five years.\n\n(2) [Reserved]\n\n(c)  Continuing education/training standards for all school nutrition program directors.  Each school year, the school food authority must ensure that all school nutrition program directors (including acting directors, at the discretion of the State agency), complete 12 hours of annual continuing education/training. The annual training must include, but is not limited to, administrative practices (including training in application, certification, verification, meal counting, and meal claiming procedures), as applicable, and any other specific topics identified by FNS, as needed, to address Program integrity or other critical issues. Continuing education/training required under this paragraph (c) is in addition to the food safety training required in the first year of employment under paragraph (b)(1)(v) of this section.\n\n(d)  Continuing education/training standards for all school nutrition program managers.  Each school year, the school food authority must ensure that all school nutrition program managers have completed 10 hours of annual continuing education/training. The annual training must include, but is not limited to, the following topics, as applicable:\n\n(1) Administrative practices (including training in application, certification, verification, meal counting, and meal claiming procedures);\n\n(2) The identification of reimbursable meals at the point of service;\n\n(3) Nutrition;\n\n(4) Health and safety standards; and\n\n(5) Any specific topics identified by FNS, as needed, to address Program integrity or other critical issues.\n\n(e)  Continuing education/training standards for all staff with responsibility for school nutrition programs.  Each school year, the school food authority must ensure that all staff with responsibility for school nutrition programs that work an average of at least 20 hours per week, other than school nutrition program directors and managers, completes 6 hours of annual training in areas applicable to their jobs. Part-time staff working an average of less than 20 hours per week must complete 4 hours of annual training. The annual training must include, but is not limited to, the following topics, as applicable to their positions and responsibilities:\n\n(1) Free and reduced price eligibility;\n\n(2) Application, certification, and verification procedures;\n\n(3) The identification of reimbursable meals at the point of service;\n\n(4) Nutrition;\n\n(5) Health and safety standards; and\n\n(6) Any specific topics identified by FNS, as needed, to address Program integrity or other critical issues.\n\n(f)  Summary of required minimum continued education/training standards.  The annual training requirements for school nutrition program directors, managers, and staff are summarized in the following table.\n\nTable 1 to Paragraph ( f )\u2014Summary of Required Annual Training  1 2\n\n1  School nutrition program directors, managers, and staff may carry over excess annual training hours to an immediately previous or subsequent school year and demonstrate compliance with the training requirements over a period of two school years, provided that some training hours are completed each school year.\n\n2  Program directors, managers, and staff hired on or after January 1 of each school year must complete half of their required annual training hours by June 30 of the school year in which they were hired.\n\n(g)  Use of food service funds for training costs.  Costs associated with annual continuing education/training required under paragraphs (b)(3), (c) and (d) of this section are allowed provided they are reasonable, allocable, and necessary in accordance with the cost principles set forth in 2 CFR part 225, Cost Principles for State, Local and Indian Tribal Governments (OMB Circular A-87). However, food service funds must not be used to pay for the cost of college credits incurred by an individual to meet the hiring requirements in paragraphs (b)(1)(i) through (iv) and (b)(2) of this section.\n\n(h)  School food authority oversight.  Each school year, the school food authority director must document compliance with the requirements of this section for all staff with responsibility for school nutrition programs, including directors, managers, and staff. Documentation must be adequate to establish, to the State's satisfaction during administrative reviews, that employees are meeting the minimum professional standards. The school food authority must certify that:\n\n(1) The school nutrition program director meets the hiring standards and training requirements set forth in paragraph (b) of this section.\n\n(2) Each employee has completed the applicable training requirements in paragraphs (c) and (d) of this section no later than the end of each school year.\n\n(3) Each employee tasked with Program procurement has completed annual procurement training, as required under \u00a7 210.21(h), by the end of each school year."], ["7:7:4.1.1.1.1.6.1.8", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.31 Local school wellness policy.", "FNS", "", "", "[81 FR 51069, July 29, 2016. Redesignated at 81 FR 93792, Dec. 22, 2016]", "(a)  General.  Each local educational agency must establish a local school wellness policy for all schools participating in the National School Lunch Program and/or School Breakfast Program under the jurisdiction of the local educational agency. The local school wellness policy is a written plan that includes methods to promote student wellness, prevent and reduce childhood obesity, and provide assurance that school meals and other food and beverages sold and otherwise made available on the school campus during the school day are consistent with applicable minimum Federal standards.\n\n(b)  Definitions.  For the purposes of this section:\n\n(1)  School campus  means the term as defined in \u00a7 210.11(a)(4).\n\n(2)  School day  means the term as defined in \u00a7 210.11(a)(5).\n\n(c)  Content of the plan.  At a minimum, local school wellness policies must contain:\n\n(1) Specific goals for nutrition promotion and education, physical activity, and other school-based activities that promote student wellness. In developing these goals, local educational agencies must review and consider evidence-based strategies and techniques;\n\n(2) Standards for all foods and beverages provided, but not sold, to students during the school day on each participating school campus under the jurisdiction of the local educational agency;\n\n(3) Standards and nutrition guidelines for all foods and beverages sold to students during the school day on each participating school campus under the jurisdiction of the local educational agency that;\n\n(i) Are consistent with applicable requirements set forth under \u00a7\u00a7 210.10 and 220.8 of this chapter;\n\n(ii) Are consistent with the nutrition standards set forth under \u00a7 210.11;\n\n(iii) Permit marketing on the school campus during the school day of only those foods and beverages that meet the nutrition standards under \u00a7 210.11; and\n\n(iv) Promote student health and reduce childhood obesity.\n\n(4) Identification of the position of the LEA or school official(s) or school official(s) responsible for the implementation and oversight of the local school wellness policy to ensure each school's compliance with the policy;\n\n(5) A description of the manner in which parents, students, representatives of the school food authority, teachers of physical education, school health professionals, the school board, school administrators, and the general public are provided an opportunity to participate in the development, implementation, and periodic review and update of the local school wellness policy; and\n\n(6) A description of the plan for measuring the implementation of the local school wellness policy, and for reporting local school wellness policy content and implementation issues to the public, as required in paragraphs (d) and (e) of this section.\n\n(d)  Public involvement and public notification.  Each local educational agency must:\n\n(1) Permit parents, students, representatives of the school food authority, teachers of physical education, school health professionals, the school board, school administrators, and the general public to participate in the development, implementation, and periodic review and update of the local school wellness policy;\n\n(2) Inform the public about the content and implementation of the local school wellness policy, and make the policy and any updates to the policy available to the public on an annual basis;\n\n(3) Inform the public about progress toward meeting the goals of the local school wellness policy and compliance with the local school wellness policy by making the triennial assessment, as required in paragraph (e)(2) of this section, available to the public in an accessible and easily understood manner.\n\n(e)  Implementation assessments and updates.  Each local educational agency must:\n\n(1) Designate one or more local educational agency officials or school officials to ensure that each participating school complies with the local school wellness policy;\n\n(2) At least once every three years, assess schools' compliance with the local school wellness policy, and make assessment results available to the public. The assessment must measure the implementation of the local school wellness policy, and include:\n\n(i) The extent to which schools under the jurisdiction of the local educational agency are in compliance with the local school wellness policy;\n\n(ii) The extent to which the local educational agency's local school wellness policy compares to model local school wellness policies; and\n\n(iii) A description of the progress made in attaining the goals of the local school wellness policy.\n\n(3) Make appropriate updates or modifications to the local school wellness policy, based on the triennial assessment.\n\n(f)  Recordkeeping requirement.  Each local educational agency must retain records to document compliance with the requirements of this section. These records include but are not limited to:\n\n(1) The written local school wellness policy;\n\n(2) Documentation demonstrating compliance with community involvement requirements, including requirements to make the local school wellness policy and triennial assessments available to the public as required in paragraph (e) of this section; and\n\n(3) Documentation of the triennial assessment of the local school wellness policy for each school under its jurisdiction."], ["7:7:4.1.1.1.1.6.1.9", 7, "Agriculture", "II", "A", "210", "PART 210\u2014NATIONAL SCHOOL LUNCH PROGRAM", "F", "Subpart F\u2014Additional Provisions", "", "\u00a7 210.32 Program information.", "FNS", "", "", "[88 FR 57848, Aug. 23, 2023]", "Persons seeking information about this Program should contact their State administering agency or the appropriate FNSRO. The FNS website has contact information for State agencies at  https://www.fns.usda.gov/contacts  and FNSROs at  https://www.fns.usda.gov/fns-regional-offices."], ["7:7:4.1.1.1.10.1.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "A", "Subpart A\u2014General", "", "\u00a7 246.1 General purpose and scope.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 54 FR 51294, Dec. 14, 1989; 58 FR 11506, Feb. 26, 1993; 76 FR 59888, Sept. 28, 2011]", "This part announces regulations under which the Secretary of Agriculture shall carry out the Special Supplemental Nutrition Program for Women, Infants and Children (WIC Program). Section 17 of the Child Nutrition Act of 1966, as amended, states in part that the Congress finds that substantial numbers of pregnant, postpartum and breastfeeding women, infants and young children from families with inadequate income are at special risk with respect to their physical and mental health by reason of inadequate nutrition or health care, or both. The purpose of the Program is to provide supplemental foods and nutrition education, including breastfeeding promotion and support, through payment of cash grants to State agencies which administer the Program through local agencies at no cost to eligible persons. The Program shall serve as an adjunct to good health care during critical times of growth and development, in order to prevent the occurrence of health problems, including drug and other harmful substance abuse, and to improve the health status of these persons. The program shall be supplementary to SNAP; any program under which foods are distributed to needy families in lieu of SNAP benefits; and receipt of food or meals from soup kitchens, or shelters, or other forms of emergency food assistance."], ["7:7:4.1.1.1.10.1.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "A", "Subpart A\u2014General", "", "\u00a7 246.2 Definitions.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985]", "For the purpose of this part and all contracts, guidelines, instructions, forms and other documents related hereto, the term:\n\n2 CFR part 200,  means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published by OMB. The part reference covers applicable: Acronyms and Definitions (subpart A), General Provisions (subpart B), Post Federal Award Requirements (subpart D), Cost Principles (subpart E), and Audit Requirements (subpart F). (NOTE: Pre-Federal Award Requirements and Contents of Federal Awards (subpart C) does not apply to the National School Lunch Program).\n\nAbove-50-percent vendors  means vendors that derive more than 50 percent of their annual food sales revenue from WIC food instruments, and new vendor applicants expected to meet this criterion under guidelines approved by FNS.\n\nAffirmative Action Plan  means that portion of the State Plan which describes how the Program will be initiated and expanded within the State's jurisdiction in accordance with \u00a7 246.4(a).\n\nA-130  means Office of Management and Budget Circular A-130, which provides guidance for the coordinated development and operation of information systems.\n\nApplicants  means pregnant women, breastfeeding women, postpartum women, infants, and children who are applying to receive WIC benefits, and the breastfed infants of applicant breastfeeding women. Applicants include individuals who are currently participating in the program but are re-applying because their certification period is about to expire.\n\nAuthorized supplemental foods  means those supplemental foods authorized by the State or local agency for issuance to a particular participant.\n\nBreastfeeding  means the practice of feeding a mother's breastmilk to her infant(s) on the average of at least once a day.\n\nBreastfeeding women  means women up to one year postpartum who are breastfeeding their infants.\n\nCash-value voucher  means a fixed-dollar amount check, voucher, electronic benefit transfer (EBT) card or other document which is used by a participant to obtain authorized fruits and vegetables. Cash-value voucher is also known as cash-value benefit (CVB) in an EBT environment.\n\nCategorical eligibility  means persons who meet the definitions of pregnant women, breastfeeding women, postpartum women, or infants or children.\n\nCertification  means the implementation of criteria and procedures to assess and document each applicant's eligibility for the Program.\n\nChildren  means persons who have had their first birthday but have not yet attained their fifth birthday.\n\nClinic  means a facility where applicants are certified.\n\nCompetent professional authority  means an individual on the staff of the local agency authorized to determine nutritional risk and prescribe supplemental foods. The following persons are the only persons the State agency may authorize to serve as a competent professional authority: Physicians, nutritionists (bachelor's or master's degree in Nutritional Sciences, Community Nutrition, Clinical Nutrition, Dietetics, Public Health Nutrition or Home Economics with emphasis in Nutrition), dieticians, registered nurses, physician's assistants (certified by the National Committee on Certification of Physician's Assistants or certified by the State medical certifying authority), or State or local medically trained health officials. This definition also applies to an individual who is not on the staff of the local agency but who is qualified to provide data upon which nutritional risk determinations are made by a competent professional authority on the staff of the local agency.\n\nCompetitive bidding  means a procurement process under which FNS or the State agency selects a single source (such as a single infant formula manufacturer offering the lowest price), as determined by the submission of sealed bids, for a product for which bids are sought for use in the Program.\n\nCompliance buy  means a covert, on-site investigation in which a representative of the Program poses as a participant, parent or caretaker of an infant or child participant, or proxy, transacts one or more food instruments or cash-value vouchers, and does not reveal during the visit that he or she is a program representative.\n\nContract brand infant formula  means all infant formulas (except exempt infant formulas) produced by the manufacturer awarded the infant formula cost containment contract. If under a single solicitation the manufacturer subcontracts for soy-based infant formula, then all soy-based infant formulas covered by the subcontract are also considered contract brand infant formulas (see \u00a7 246.16a(c)(1)(i)). If a State agency elects to solicit separate bids for milk-based and soy-based infant formulas, all infant formulas issued under each contract are considered the contract brand infant formula (see \u00a7 246.16a(c)(1)(ii)). For example, all of the milk-based infant formulas issued by a State agency that are produced by the manufacturer that was awarded the milk-based contract are considered contract brand infant formulas. Similarly, all of the soy-based infant formulas issued by a State agency that are produced by the manufacturer that was awarded the soy-based contract are also considered to be contract brand infant formulas. Contract brand infant formulas also include all infant formulas (except exempt infant formulas) introduced after the contract is awarded.\n\nCost containment measure  means a competitive bidding, rebate, direct distribution, or home delivery system implemented by a State agency as described in its approved State Plan of operation and administration.\n\nCSFP  means the Commodity Supplemental Food Program administered by the Department, authorized by section 5 of the Agriculture and Consumer Protection Act of 1973, as amended, and governed by part 247 of this title.\n\nDays  means calendar days.\n\nDepartment  means the U.S. Department of Agriculture.\n\nDisability  means, with respect to an individual, a physical or mental impairment that substantially limits one or more of the major life activities of such individual, a record of such an impairment, or being regarded as having such an impairment. See 28 CFR 35.108.\n\nDiscount  means, with respect to a State agency that provides Program foods to participants without the use of retail grocery stores (such as a State agency that provides for the home delivery or direct distribution of supplemental food), the amount of the price reduction or other price concession provided to any State agency by the manufacturer or supplier of the particular food product as the result of the purchase of Program food by each such State agency, or its representative, from the manufacturer or supplier.\n\nDisqualification  means the act of ending the Program participation of a participant, authorized food vendor, or authorized State or local agency, whether as a punitive sanction or for administrative reasons.\n\nDocumentation  means the presentation of written documents which substantiate statements made by an applicant or participant or a person applying on behalf of an applicant.\n\nDrug  means:\n\n(a) A beverage containing alcohol;\n\n(b) A controlled substance (having the meaning given it in section 102(6) of the Controlled Substance Act (21 U.S.C. 802(6)); or\n\n(c) A controlled substance analogue (having the meaning given it in section 102(32) of the Controlled Substance Act (21 U.S.C. 802(32)).\n\nDual participation  means simultaneous participation in the Program in one or more than one WIC clinic, or participation in the Program and in the CSFP during the same period of time.\n\nEBT Capable  means the WIC vendor demonstrates their cash register system or payment device can accurately and securely obtain WIC food balances associated with an EBT card, maintain the necessary files such as the authorized product list, hot card file and claim file and successfully complete WIC EBT purchases.\n\nElectronic Benefit Transfer  (EBT) means a method that permits electronic access to WIC food benefits using a card or other access device approved by the Secretary.\n\nElectronic signature  means an electronic sound, symbol, or process, attached to or associated with an application or other record and executed and or adopted by a person with the intent to sign the record.\n\nEmergency period  means a period during which there exists:\n\n(1) A presidentially declared major disaster as defined under section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121  et seq. ).\n\n(2) A presidentially declared emergency as defined under section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121  et seq. ).\n\n(3) A public health emergency declared by the Secretary of HHS under section 319 of the Public Health Service Act (42 U.S.C. 247d).\n\n(4) A renewal of such a public health emergency pursuant to section 319.\n\nEmployee fraud and abuse  means the intentional conduct of a State, local agency or clinic employee which violates program regulations, policies, or procedures, including, but not limited to, misappropriating or altering food instruments or cash-value vouchers, entering false or misleading information in case records, or creating case records for fictitious participants.\n\nExempt infant formula  means an infant formula that meets the requirements for an exempt infant formula under section 412(h) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 350a(h)) and the regulations at 21 CFR parts 106 and 107.\n\nFamily  means a group of related or nonrelated individuals who are living together as one economic unit, except that residents of a homeless facility or an institution shall not all be considered as members of a single family.\n\nFarmer  means an individual authorized by the State agency to sell eligible fruits and vegetables to participants at a farmers' market or roadside stands. Individuals who exclusively sell produce grown by someone else, such as wholesale distributors, cannot be authorized.\n\nFarmers' market  means an association of local farmers who assemble at a defined location for the purpose of selling their produce directly to consumers.\n\nFiscal year  means the period of 12 calendar months beginning October 1 of any calendar year and ending September 30 of the following calendar year.\n\nFNS  means the Food and Nutrition Service of the U.S. Department of Agriculture.\n\nFood costs  means the costs of supplemental foods, determined in accordance with \u00a7 246.14(b).\n\nFood delivery system  means the method used by State and local agencies to provide supplemental foods to participants.\n\nFood instrument  means a voucher, check, electronic benefits transfer card (EBT), coupon or other document which is used by a participant to obtain supplemental foods.\n\nFood sales  means sales of all SNAP eligible foods intended for home preparation and consumption, including meat, fish, and poultry; bread and cereal products; dairy products; fruits and vegetables. Food items such as condiments and spices, coffee, tea, cocoa, and carbonated and noncarbonated drinks may be included in food sales when offered for sale along with foods in the categories identified above. Food sales do not include sales of any items that cannot be purchased with SNAP benefits, such as hot foods or food that will be eaten in the store.\n\nFull nutrition benefit  means the minimum amount of reconstituted fluid ounces of liquid concentrate infant formula as specified in Table 1 of \u00a7 246.10(e)(9) for each food package category and infant feeding variation (e.g., Food Package IA fully formula fed, IA-FF).\n\nHealth services  means ongoing, routine pediatric and obstetric care (such as infant and child care and prenatal and postpartum examinations) or referral for treatment.\n\nHigh-risk vendor  means a vendor identified as having a high probability of committing a vendor violation through application of the criteria established in \u00a7 246.12(j)(3) and any additional criteria established by the State agency.\n\nHome food delivery contractor  means a sole proprietorship, partnership, cooperative association, corporation, or other business entity that contracts with a State agency to deliver authorized supplemental foods to the residences of participants under a home food delivery system.\n\nHomeless facility  means the following types of facilities which provide meal service. A supervised publicly or privately operated shelter (including a welfare hotel or congregate shelter) designed to provide temporary living accommodations; a facility that provides a temporary residence for individuals intended to be institutionalized; or a public or private place not designed for, or normally used as, a regular sleeping accommodation for human beings.\n\nHomeless individual  means a woman, infant or child:\n\n(a) Who lacks a fixed and regular nighttime residence; or\n\n(b) Whose primary nighttime residence is:\n\n(1) A supervised publicly or privately operated shelter (including a welfare hotel, a congregate shelter, or a shelter for victims of domestic violence) designated to provide temporary living accommodation;\n\n(2) An institution that provides a temporary residence for individuals intended to be institutionalized;\n\n(3) A temporary accommodation of not more than 365 days in the residence of another individual; or\n\n(4) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.\n\nIHS  means the Indian Health Service of the U.S. Department of Health and Human Services.\n\nInfant formula  means a food that meets the definition of an infant formula in section 201(z) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(z)) and that meets the requirements for an infant formula under section 412 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 350a) and the regulations at 21 CFR parts 106 and 107.\n\nInstitution  means any residential accommodation which provides meal service, except private residences and homeless facilities.\n\nInfants  means persons under one year of age.\n\nInventory audit  means the examination of food invoices or other proofs of purchase to determine whether a vendor has purchased sufficient quantities of supplemental foods to provide participants the quantities specified on food instruments redeemed by the vendor during a given period of time.\n\nLocal agency  means: (a) A public or private, nonprofit health or human service agency which provides health services, either directly or through contract, in accordance with \u00a7 246.5; (b) an IHS service unit; (c) an Indian tribe, band or group recognized by the Department of the Interior which operates a health clinic or is provided health services by an IHS service unit; or (d) an intertribal council or group that is an authorized representative of Indian tribes, bands or groups recognized by the Department of the Interior, which operates a health clinic or is provided health services by an IHS service unit.\n\nMembers of populations  means persons with a common special need who do not necessarily reside in a specific geographic area, such as off-reservation Indians or migrant farmworkers and their families.\n\nMigrant farmworker  means an individual whose principal employment is in agriculture on a seasonal basis, who has been so employed within the last 24 months, and who establishes, for the purposes of such employment, a temporary abode.\n\nMulti-function equipment  means Point-of-Sale equipment obtained by a WIC vendor through commercial suppliers, which is capable of supporting WIC EBT and other payment tender types.\n\nNet price  means the difference between an infant formula manufacturer's lowest national wholesale price per unit for a full truckload of infant formula and the rebate level or the discount offered or provided by the manufacturer under an infant formula cost containment contract.\n\nNon-contract brand infant formula  means all infant formula, including exempt infant formula, that is not covered by an infant formula cost containment contract awarded by that State agency.\n\nNonprofit agency  means a private agency which is exempt from income tax under the Internal Revenue Code of 1954, as amended.\n\nNutrition education  means individual and group sessions and the provision of materials that are designed to improve health status and achieve positive change in dietary and physical activity habits, and that emphasize the relationship between nutrition, physical activity, and health, all in keeping with the personal and cultural preferences of the individual.\n\nNutrition Services and Administration (NSA) Costs  means those direct and indirect costs, exclusive of food costs, as defined in \u00a7 246.14(c), which State and local agencies determine to be necessary to support Program operations. Costs include, but are not limited to, the costs of Program administration, start-up, monitoring, auditing, the development of and accountability for food delivery systems, nutrition education and breastfeeding promotion and support, outreach, certification, and developing and printing food instruments and cash-value vouchers.\n\nNutritional risk  means: (a) Detrimental or abnormal nutritional conditions detectable by biochemical or anthropometric measurements; (b) Other documented nutritionally related medical conditions; (c) Dietary deficiencies that impair or endanger health; (d) Conditions that directly affect the nutritional health of a person, including alcoholism or drug abuse; or (e) Conditions that predispose persons to inadequate nutritional patterns or nutritionally related medical conditions, including, but not limited to, homelessness and migrancy.\n\nOIG  means the Department's Office of the Inspector General.\n\nOther harmful substances  means other substances such as tobacco, prescription drugs and over-the-counter medications that can be harmful to the health of the WIC population, especially the pregnant woman and her fetus.\n\nPartially-redeemed food instrument  means a paper food instrument which is redeemed for less than all of the supplemental foods authorized for that food instrument.\n\nParticipant violation  means any deliberate action of a participant, parent, or caretaker of an infant or child participant, or proxy that violates Federal or State statutes, regulations, policies, or procedures governing the Program. Participant violations include, but are not limited to, deliberately making false or misleading statements or deliberately misrepresenting, concealing, or withholding facts, to obtain benefits; selling or offering to sell WIC benefits, cash-value vouchers, paper food instruments, EBT cards, supplemental foods, or breast pumps in person, in print, or online; exchanging or attempting to exchange WIC benefits, cash-value vouchers, paper food instruments, EBT cards, supplemental foods, or breast pumps for cash, credit, services, non-food items, or unauthorized food items, including supplemental foods in excess of those listed on the participant's food instrument; threatening to harm or physically harming clinic, farmer, farmers' market, or vendor staff; and dual participation.\n\nParticipants  means pregnant women, breastfeeding women, postpartum women, infants and children who are receiving supplemental foods or food instruments or cash-value vouchers under the Program, and the breastfed infants of participant breastfeeding women.\n\nParticipation  means the sum of:\n\n(1) The number of persons who received supplemental foods or food instruments during the reporting period;\n\n(2) The number of infants who did not receive supplemental foods or food instruments but whose breastfeeding mother received supplemental foods or food instruments during the report period; and\n\n(3) The number of breastfeeding women who did not receive supplemental foods or food instruments but whose infant received supplemental foods or food instruments during the report period.\n\nPostpartum women  means women up to six months after termination of pregnancy.\n\nPoverty income guidelines  means the poverty income guidelines prescribed by the Department of Health and Human Services. These guidelines are adjusted annually by the Department of Health and Human Services, with each annual adjustment effective July 1 of each year. The poverty income guidelines prescribed by the Department of Health and Human Services shall be used for all States, as defined in this section, except for Alaska and Hawaii. Separate poverty income guidelines are prescribed for Alaska and Hawaii.\n\nPregnant women  means women determined to have one or more embryos or fetuses in utero.\n\nPrice adjustment  means an adjustment made by the State agency, in accordance with the vendor agreement, to the purchase price on a food instrument after it has been submitted by a vendor for redemption to ensure that the payment to the vendor for the food instrument complies with the State agency's price limitations.\n\nPrimary contract infant formula  means the specific infant formula for which manufacturers submit a bid to a State agency in response to a rebate solicitation and for which a contract is awarded by the State agency as a result of that bid.\n\nProgram  means the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) authorized by section 17 of the Child Nutrition Act of 1966, as amended.\n\nProxy  means any person designated by a woman participant, or by a parent or caretaker of an infant or child participant, to obtain and transact food instruments or cash-value vouchers or to obtain supplemental foods on behalf of a participant. The proxy must be designated consistent with the State agency's procedures established pursuant to \u00a7 246.12(r)(1). Parents or caretakers applying on behalf of child and infant participants are not proxies.\n\nQualified administrative requirement  means a statutory requirement under Section 17 of the Child Nutrition Act of 1966 (CNA; 42 U.S.C. 1786) or a regulatory requirement issued pursuant to this section.\n\nRebate  means the amount of money refunded under cost containment procedures to any State agency from the manufacturer of the particular food product as the result of the purchase of the supplemental food with a voucher or other purchase instrument by a participant in each State agency's program. Such rebates shall be payments made subsequent to the exchange of a food instrument for food.\n\nRecall  means recall as defined in 21 CFR 7.3(g) or any successor regulation. Recalls may be conducted voluntarily by a manufacturer or may be required by the U.S. Food and Drug Administration (FDA).\n\nRemote Indian or Native village  means an Indian or Native village that is located in a rural area, has a population of less than 5,000 inhabitants, and is not accessible year-round by means of a public road (as defined in 23 U.S.C. 101).\n\nRoutine monitoring  means overt, on-site monitoring during which program representatives identify themselves to vendor personnel.\n\nSecretary  means the Secretary of Agriculture.\n\nSFPD  means the Supplemental Food Programs Division of the Food and Nutrition Service of the U.S. Department of Agriculture.\n\nSign or signature  means a handwritten signature on paper or an electronic signature. If the State agency chooses to use electronic signatures, the State agency must ensure the reliability and integrity of the technology used and the security and confidentiality of electronic signatures collected in accordance with sound management practices, and applicable Federal law and policy, and the confidentiality requirements in \u00a7 246.26.\n\nSingle-function equipment  means Point-of-Sale equipment, such as barcode scanners, card readers, PIN pads and printers, provided to an authorized WIC vendor solely for use with the WIC Program.\n\nState  means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands.\n\nState agency  means the health department or comparable agency of each State; an Indian tribe, band or group recognized by the Department of the Interior; an intertribal council or group which is an authorized representative of Indian tribes, bands or groups recognized by the Department of the Interior and which has an ongoing relationship with such tribes, bands or groups for other purposes and has contracted with them to administer the Program; or the appropriate area office of the IHS.\n\nState alliance  means two or more State agencies that join together for the purpose of procuring infant formula under the Program by soliciting competitive bids for infant formula.\n\nState Plan  means a plan of Program operation and administration that describes the manner in which the State agency intends to implement and operate all aspects of Program administration within its jurisdiction in accordance with \u00a7 246.4.\n\nStatewide EBT  means the State agency has converted all WIC clinics to an EBT delivery method and all authorized vendors are capable of transacting EBT purchases.\n\nSupplemental foods  means those foods containing nutrients determined by nutritional research to be lacking in the diets of pregnant, breastfeeding and postpartum women, infants, and children, and foods that promote the health of the population served by the WIC Program as indicated by relevant nutrition science, public health concerns, and cultural eating patterns, as prescribed by the Secretary in \u00a7 246.10.\n\nSupplemental Nutrition Assistance Program (SNAP),  formerly known as the Food Stamp Program, is the program authorized by the Food and Nutrition Act of 2008 (7 U.S.C. 2011,  et. seq. ), in which eligible households receive benefits that can be used to purchase food items from authorized retail stores and farmers' markets.\n\nSupply chain disruption  means a shortage of WIC supplemental foods that limits WIC participants' ability to reasonably purchase supplemental foods using WIC benefits within a State agency's jurisdiction, as determined, and declared by the Secretary for the purposes of WIC.\n\nUSDA implementing regulations  include the following: 2 CFR part 400, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 2 CFR part 415, General Program Administrative Regulations; 2 CFR part 416, General Program Administrative Regulations for Grants and Cooperative Agreements to State and Local Governments; and 2 CFR part 418, New Restrictions on Lobbying.\n\nVendor  means a sole proprietorship, partnership, cooperative association, corporation, or other business entity operating one or more stores authorized by the State agency to provide authorized supplemental foods to participants under a retail food delivery system. Each store operated by a business entity constitutes a separate vendor and must be authorized separately from other stores operated by the business entity. Each store must have a single, fixed location, except when the authorization of mobile stores is necessary to meet the special needs described in the State agency's State Plan in accordance with \u00a7 246.4(a)(14)(xiv).\n\nVendor authorization  means the process by which the State agency assesses, selects, and enters into agreements with stores that apply or subsequently reapply to be authorized as vendors.\n\nVendor limiting criteria  means criteria established by the State agency to determine the maximum number and distribution of vendors it authorizes pursuant to \u00a7 246.12(g)(2).\n\nVendor overcharge  means intentionally or unintentionally charging the State agency more for authorized supplemental foods than is permitted under the vendor agreement. It is not a vendor overcharge when a vendor submits a food instrument for redemption and the State agency makes a price adjustment to the food instrument.\n\nVendor peer group system  means a classification of authorized vendors into groups based on common characteristics or criteria that affect food prices, for the purpose of applying appropriate competitive price criteria to vendors at authorization and limiting payments for food to competitive levels.\n\nVendor selection criteria  means the criteria established by the State agency to select individual vendors for authorization consistent with the requirements in \u00a7 246.12(g)(3) and (g)(4).\n\nVendor violation  means any intentional or unintentional action of a vendor's current owners, officers, managers, agents, or employees (with or without the knowledge of management) that violates the vendor agreement or Federal or State statutes, regulations, policies, or procedures governing the Program.\n\nWIC  means the Special Supplemental Nutrition Program for Women, Infants and Children authorized by section 17 of the Child Nutrition Act of 1966, 42 U.S.C. 1786.\n\nWIC-eligible nutritionals for participants with qualifying conditions (hereafter referred to as \u201cWIC-eligible nutritionals\u201d)  means certain enteral products that are specifically formulated and commercially manufactured (as opposed to a naturally occurring foodstuff used in its natural state) to provide nutritional support for individuals with a qualifying condition, when the use of conventional foods is precluded, restricted, or inadequate. Such WIC-eligible nutritionals must serve the purpose of a food, meal, or diet (may be nutritionally complete or incomplete) and provide a source of calories and one or more nutrients; be designed for enteral digestion via an oral or tube feeding; and may not be a conventional food, drug, flavoring, or enzyme. WIC-eligible nutritionals include many, but not all, products that meet the definition of medical food in section 5(b)(3) of the Orphan Drug Act (21 U.S.C. 360ee(b)(3))."], ["7:7:4.1.1.1.10.1.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "A", "Subpart A\u2014General", "", "\u00a7 246.3 Administration.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985, as amended at 52 FR 21236, June 4, 1987; 59 FR 11499, Mar. 11, 1994; 65 FR 83277, Dec. 29, 2000; 71 FR 56728, Sept. 27, 2006; 76 FR 37983, June 29, 2011; 76 FR 59888, Sept. 28, 2011; 81 FR 10449, Mar. 1, 2016; 81 FR 66494, 66495, Sept. 28, 2016]", "(a)  Delegation to FNS.  Within the Department, FNS shall act on behalf of the Department in the administration of the Program. Within FNS, SFPD and the Regional Offices are responsible for Program administration. FNS shall provide assistance to State and local agencies and evaluate all levels of Program operations to ensure that the goals of the Program are achieved in the most effective and efficient manner possible.\n\n(b)  Delegation to the State agency.  The State agency is responsible for the effective and efficient administration of the Program in accordance with the requirements of this part; the Department's regulations governing nondiscrimination (7 CFR parts 15, 15a, and 15b); governing administration of grants (2 CFR part 200, subparts A through F and USDA implementing regulations 2 CFR part 400 and part 415); governing non-procurement debarment/suspension (2 CFR part 180, OMB Guidelines to Agencies on Government-wide Debarment and Suspension and USDA implementing regulations 2 CFR part 417); governing restrictions on lobbying (2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400, part 415, and part 418); and governing the drug-free workplace requirements (2 CFR part 182, Government-wide Requirements for Drug-Free Workplace); FNS guidelines; and, instructions issued under the FNS Directives Management System. The State agency shall provide guidance to local agencies on all aspects of Program operations.\n\n(c)  Agreement and State Plan.  (1) Each State agency desiring to administer the Program shall annually submit a State Plan and enter into a written agreement with the Department for administration of the Program in the jurisdiction of the State agency in accordance with the provisions of this part.\n\n(2) The written agreement shall include a certification regarding lobbying and, if applicable, a disclosure of lobbying activities, as required by 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400, part 415, and part 418.\n\n(3) The written agreement must include a statement that supports full use of Federal funds provided to State agencies for the administration of the WIC Program, and excludes such funds from State budget restrictions or limitations including hiring freezes, work furloughs, and travel restrictions.\n\n(d)  State agency eligibility.  A State agency shall be ineligible to participate in the WIC Program if State or local sales tax is collected on WIC food purchases in the area in which it administers the program, except that, if sales tax is collected on WIC food purchases by sovereign Indian entities which are not State agencies, the State agency shall remain eligible if any vendors collecting such tax are disqualified.\n\n(e)  State staffing standards.  Each State agency shall ensure that sufficient staff is available to administer an efficient and effective Program including, but not limited to, the functions of nutrition education, breastfeeding promotion and support, certification, food delivery, fiscal reporting, monitoring, and training. Based on the June participation of the previous fiscal year, each State agency, as a minimum, shall employ the following staff:\n\n(1) A full-time or equivalent administrator when the monthly participation level exceeds 1,500, or a half-time or equivalent administrator when the monthly participation exceeds 500.\n\n(2) At least one full-time or equivalent Program specialist for each 10,000 participants above 1,500, but the State agency need not employ more than eight Program specialists unless the State agency considers it necessary. Program specialists should be utilized for providing fiscal management and technical assistance, monitoring vendors, reviewing local agencies, training, and nutritional services, or other Program duties as assigned by the State agency.\n\n(3) For nutrition-related services, one full-time or equivalent nutritionist when the monthly participation is above 1,500, or a half-time or equivalent nutritionist when the monthly participation exceeds 500. The nutritionist shall be named State WIC Nutrition Coordinator and shall meet State personnel standards and qualifications in paragraphs (e)(3) (i), (ii), (iii), (iv), or (v) of this section and have the qualifications in paragraph (e)(3)(vi) of this section. Upon request, an exception to these qualifications may be granted by FNS. The State WIC Nutrition Coordinator shall\u2014\n\n(i) Hold a Master's degree with emphasis in food and nutrition, community nutrition, public health nutrition, nutrition education, human nutrition, nutrition science or equivalent and have at least two years responsible experience as a nutritionist in education, social service, maternal and child health, public health, nutrition, or dietetics; or\n\n(ii) Be registered or eligible for registration with the American Dietetic Association and have at least two years experience; or\n\n(iii) Have at least a Bachelor of Science or Bachelor of Arts degree, from an accredited four-year institution, with emphasis in food and nutrition, community nutrition, public health nutrition, nutrition education, human nutrition, nutrition science or equivalent and have at least three years of responsible experience as a nutritionist in education, social service, maternal and child health, public health nutrition, or dietetics; or\n\n(iv) Be qualified as a Senior Public Health Nutritionist under the Department of Health and Human Services guidelines; or\n\n(v) Meet the IHS standards for a Public Health Nutritionist; and\n\n(vi) Have at least one of the following: Program development skills, education background and experience in the development of educational and training resource materials, community action experience, counseling skills or experience in participant advocacy.\n\n(4) A designated breastfeeding promotion coordinator, to coordinate breastfeeding promotion efforts identified in the State plan in accordance with the requirement of \u00a7 246.4(a)(9) of this part. The person to whom the State agency assigns this responsibility may perform other duties as well.\n\n(5) A staff person designated for food delivery system management. The person to whom the State agency assigns this responsibility may perform other duties as well.\n\n(6) The State agency shall enforce hiring practices which comply with the nondiscrimination criteria set forth in \u00a7 246.8. The hiring of minority staff is encouraged.\n\n(f)  Delegation to local agency.  The local agency shall provide Program benefits to participants in the most effective and efficient manner, and shall comply with this part, the Department's regulations governing nondiscrimination (7 CFR parts 15, 15a, 15b), the regulations governing the administration of grants (2 CFR part 200, subpart A-F and USDA implementing regulations 2 CFR part 400 and part 415), Office of Management and Budget Circular A-130, and State agency and FNS guidelines and instructions."], ["7:7:4.1.1.1.10.2.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "B", "Subpart B\u2014State and Local Agency Eligibility", "", "\u00a7 246.4 State plan.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985]", "(a)  Requirements.  By August 15 of each year, each State agency shall submit to FNS for approval a State Plan for the following fiscal year as a prerequisite to receiving funds under this section. The State agency may submit the State Plan in the format provided by FNS guidance. Alternatively, the State agency may submit the Plan in combination with other federally required planning documents or develop its own format, provided that the information required below is included. FNS requests advance notification that a State agency intends to use an alternative format. The State Plan shall be signed by the State designated official responsible for ensuring that the Program is operated in accordance with the State Plan. FNS will provide written approval or denial of a completed State Plan or amendment within 30 days of receipt. Within 15 days after FNS receives an incomplete Plan, FNS will notify the State agency that additional information is needed to complete the Plan. Any disapproval will be accompanied by a statement of the reasons for the disapproval. After receiving approval of the State Plan, each State agency shall only submit to FNS for approval substantive changes in the State Plan. A complete and approved Plan shall include:\n\n(1) An outline of the State agency's goals and objectives for improving Program operations, to include EBT and/or EBT implementation.\n\n(2) A budget for nutrition services and administration funds, and an estimate of food expenditures.\n\n(3) An estimate of Statewide participation for the coming fiscal year by category of women, infants and children.\n\n(4) The State agency staffing pattern.\n\n(5) An Affirmative Action Plan which includes\u2014\n\n(i) A list of all areas and special populations, in priority order based on relative need, within the jurisdiction of the State agency, the State agency's plans to initiate or expand operations under the Program in areas most in need of supplemental foods, including plans to inform nonparticipating local agencies of the availability and benefits of the Program and the availability of technical assistance in implementing the Program, and a description of how the State agency will take all reasonable actions to identify potential local agencies and encourage agencies to implement or expand operations under the Program within the following year in the neediest one-third of all areas unserved or partially served;\n\n(ii) An estimate of the number of potentially eligible persons in each area and a list of the areas in the Affirmative Action Plan which are currently operating the Program and their current participation, which participant priority levels as specified in \u00a7 246.7 are being reached in each of these areas, and which areas in the Affirmative Action Plan are currently operating CSFP and their current participation; and\n\n(iii) A list of the names and addresses of all local agencies.\n\n(6) Plans to provide program benefits to eligible migrant farmworkers and their families, to Indians, and to homeless individuals.\n\n(7) The State agency's plans, to be conducted in cooperation with local agencies, for informing eligible persons of the availability of Program benefits, including the eligibility criteria for participation, the location of local agencies operating the Program, and the institutional conditions of \u00a7 246.7(n)(1)(i) of this part, with emphasis on reaching and enrolling eligible women in the early months of pregnancy and migrants. Such information shall be publicly announced by the State agency and by local agencies at least annually. Such information shall also be distributed to offices and organizations that deal with significant numbers of potentially eligible persons, including health and medical organizations, hospitals and clinics, welfare and unemployment offices, social service agencies, farmworker organizations, Indian tribal organizations, organizations and agencies serving homeless individuals, and religious and community organizations in low-income areas.\n\n(8) A description of how the State agency plans to coordinate program operations with other services or programs that may benefit participants in, or applicants for, the program.\n\n(9) The State agency's nutrition education goals and action plans to include:\n\n(i) A description of the methods that will be used to provide drug and other harmful substance abuse information, to promote and support breastfeeding, and to meet the special nutrition education needs of migrant farmworkers and their families, Indians, and homeless persons.\n\n(ii) State agencies have the option to provide nutrition education materials to institutions participating in the CACFP at no cost, as long as a written agreement for sharing such materials is in place between the relevant WIC and CACFP entities. State agencies may initiate a sharing agreement with their State-level CACFP counterparts that would apply statewide, or may authorize their local agencies or clinics to initiate a sharing agreement at the local level with their local level CACFP counterparts.\n\n(10) For Indian State or local agencies that wish to apply for the alternate income determination procedure in accordance with \u00a7 246.7(d)(2)(vii), documentation that the majority of Indian household members have incomes below eligibility criteria.\n\n(11) A copy of the procedure manual developed by the State agency for guidance to local agencies in operating the Program. The manual shall include\u2014\n\n(i) Certification procedures, including:\n\n(A) A list of the specific nutritional risk criteria by priority level which explains how a person's nutritional risk is determined;\n\n(B) Hematological data requirements including timeframes for the collection of such data;\n\n(C) The procedures for requiring proof of pregnancy, consistent with \u00a7 246.7(c)(2)(ii), if the State agency chooses to require such proof;\n\n(D) The State agency's income guidelines for Program eligibility;\n\n(E) Adjustments to the participant priority system (see \u00a7 246.7(e)(4)) to accommodate high-risk postpartum women or the addition of Priority VII; and,\n\n(F) Alternate language for the statement of rights and responsibilities which is provided to applicants, parents, or caretakers when applying for benefits as outlined in \u00a7 246.7(i)(10) and (j)(2)(i) through (j)(2)(iii). This alternate language must be approved by FNS before it can be used in the required statement.\n\n(ii) Methods for providing nutrition education, including breastfeeding promotion and support, to participants. Nutrition education will include information on drug abuse and other harmful substances. Participants will include homeless individuals.\n\n(iii) Instructions concerning all food delivery operations performed at the local level, including the list of acceptable foods and their maximum monthly quantities as required by \u00a7 246.10(b)(2)(i).\n\n(iv) Instructions for providing all records and reports which the State agency requires local agencies to maintain and submit; and\n\n(v) Instructions on coordinating operations under the program with drug and other harmful substance abuse counseling and treatment services.\n\n(12) A description of the State agency's financial management system.\n\n(13) A description of how the State agency will distribute nutrition services and administration funds, including start-up funds, to local agencies operating under the Program.\n\n(14) A description of the food delivery system as it operates at the State agency level, including\u2014\n\n(i)  Type of system.  All food delivery systems in use within the State agency's jurisdiction;\n\n(ii)  Vendor limiting and selection criteria.  Vendor limiting criteria, if used by the State agency, and the vendor selection criteria established by the State agency consistent with the requirements in \u00a7 246.12(g)(3) and (g)(4);\n\n(iii)  A sample vendor, farmer and/or farmers' market, if applicable, agreement.  The sample vendor agreement must include the sanction schedule, the process for notification of violations in accordance with \u00a7 246.12(l)(3), and the State agency's policies and procedures on incentive items in accordance with \u00a7 246.12(g)(3)(iv), which may be incorporated as attachments or, if the sanction schedule, the process for notification of violations, or policies on incentive items are in the State agency's regulations, through citations to the regulations. State agencies that intend to delegate signing of vendor, farmer and/or farmers' market agreements to local agencies must describe the State agency supervision and instruction that will be provided to ensure the uniformity and quality of local agency activities;\n\n(iv)  Vendor monitoring.  The system for monitoring vendors to ensure compliance and prevent fraud, waste, and program noncompliance, and the State agency's plans for improvement in the coming year in accordance with \u00a7 246.12(j). The State agency must also include the criteria it will use to determine which vendors will receive routine monitoring visits. State agencies that intend to delegate any aspect of vendor monitoring responsibilities to a local agency or contractor must describe the State agency supervision and instruction that will be provided to ensure the uniformity and quality of vendor monitoring;\n\n(v)  Farmer monitoring.  The system for monitoring farmers and/or farmers' markets within its jurisdiction, if applicable, for compliance with program requirements;\n\n(vi)  Options regarding trafficking convictions.  The option exercised by the State agency to sanction vendors pursuant to \u00a7 246.12(l)(1)(i).\n\n(vii)  Food instruments and cash-value vouchers.  A facsimile of the food instrument and cash-value voucher, if used, and a description of the system the State agency will use to account for the disposition of food instruments and cash value vouchers in accordance with \u00a7 246.12(q);\n\n(viii)  Names of contractors.  The names of companies, excluding authorized vendors, with whom the State agency has contracted to participate in the operation of the food delivery system;\n\n(ix)  Nutrition services and administration funds conversion  For State agencies applying for authority to convert food funds to nutrition services and administration funds under \u00a7 246.16(g), a full description of their proposed cost-cutting system or system modification;\n\n(x)  Homeless participants.  If the State agency plans to adapt its food delivery system to accommodate the needs of homeless individuals, a description of such adaptations;\n\n(xi)  Infant formula cost containment.  A description of any infant formula cost containment system. A State agency must submit a State Plan or Plan amendment if it is attempting to structure and justify a system that is not a single-supplier competitive bidding system for infant formula in accordance with \u00a7 246.16a(d); is requesting a waiver for an infant formula cost containment system under \u00a7 246.16a(e); or, is planning to change or modify its current system or implement a system for the first time. The amendment must be submitted at least 90 days before the proposed effective date of the system change. The plan amendment must include documentation for requests for waivers based on interference with efficient or effective program operations; a cost comparison analysis conducted under \u00a7 246.16a(d)(2); and a description of the proposed cost containment system. If FNS disputes supporting plan amendment documentation, it will deem the Plan amendment incomplete under this paragraph (a), and will provide the State agency with a statement outlining disputed issues within 15 days of receipt of the Plan amendment. The State agency may not enter into any infant formula cost containment contract until the disputed issues are resolved and FNS has given its consent. If necessary, FNS may grant a postponement of implementation of an infant formula cost containment system under \u00a7 246.16a(f). If at the end of the postponement period issues remain unresolved the State agency must proceed with a cost containment system judged by FNS to comply with the provisions of this part. If the State agency does not comply, it will be subject to the penalties set forth in \u00a7 246.16a(i);\n\n(xii)  Vendor, farmer and/or farmers' market training.  The procedures the State agency will use to train vendors (in accordance with \u00a7 246.12(i)), farmers and/or farmers' markets (in accordance with \u00a7 246.12(v)). State agencies that intend to delegate any aspect of training to a local agency, contractor, vendor or farmer representative must describe the supervision and instructions that will be provided by the State agency to ensure the uniformity and quality of vendor, farmer and/or farmers' market training;\n\n(xiii)  Food instrument and cash-value voucher security.  A description of the State agency's system for ensuring food instrument and cash-value voucher security in accordance with \u00a7 246.12(p);\n\n(xiv)  Participant access determination criteria.  A description of the State agency's participant access determination criteria consistent with \u00a7 246.12(l); and\n\n(xv)  Mobile stores.  The special needs necessitating the authorization of mobile stores, if the State agency chooses to authorize such stores.\n\n(xvi)  Vendor cost containment.  A description of the State agency's vendor peer group system, competitive price criteria, and allowable reimbursement levels that demonstrates that the State agency is in compliance with the cost containment provisions in \u00a7 246.12(g)(4); information on non-profit above-50-percent vendors that the State agency has exempted from competitive price criteria and allowable reimbursement levels in \u00a7 246.12(g)(4)(iv); a justification and documentation supporting the State agency's request for an exemption from the vendor peer group requirement in \u00a7 246.12(g)(4), if applicable; and, if the State agency authorizes any above-50-percent vendors, information required by FNS to determine whether the State agency's vendor cost containment system meets the requirements in \u00a7 246.12(g)(4)(i).\n\n(xvii)  Other cost containment systems.  A description of any other food cost containment systems (such as juice and cereal rebates and food item restrictions).\n\n(xviii)  List of infant formula wholesalers, distributors, and retailers.  The policies and procedures for compiling and distributing to authorized WIC retail vendors, on an annual or more frequent basis, as required by \u00a7 246.12(g)(11), a list of infant formula wholesalers, distributors, and retailers licensed in the State in accordance with State law (including regulations), and infant formula manufacturers registered with the Food and Drug Administration (FDA) that provide infant formula. The vendor may provide only the authorized infant formula which the vendor has obtained from a source included on the list described in \u00a7 246.12(g)(11) to participants in exchange for food instruments specifying infant formula.\n\n(xix) A description of how the State agency will replace lost, stolen, or damaged EBT cards and transfer the associated benefits within seven business days.\n\n(xx) A description of the procedures established by the State agency to provide customer service during non-business hours that enable participants or proxies to report a lost, stolen, or damaged card, report other card or benefit issues, receive information on the EBT food balance and receive the current benefit end date. The procedures shall address how the State agency will respond to reports of a lost, stolen, or damaged card within one business day of the date of report.\n\n(15) The State agency's procedures for accepting and processing vendor applications outside of its established timeframes if the State agency determines there will otherwise be inadequate participant access to the WIC Program.\n\n(16) The State agency's plans to prevent and identify dual participation in accordance with \u00a7 246.7(l)(1)(i) and (l)(1)(ii). In States where the Program and the CSFP operate in the same area, or where an Indian State agency operates a Program in the same area as a geographic State agency, a copy of the written agreement between the State agencies for the detection and prevention of dual participation shall be submitted.\n\n(17) A description of the procedures the State will use to comply with the civil rights requirements described in \u00a7 246.8, including the processing of discrimination complaints.\n\n(18) A copy of the State agency's fair hearing procedures for participants and the administrative appeal procedures for local agencies, food vendors, farmers and farmers' markets.\n\n(19) The State agency's plan to ensure that participants receive required health and nutrition assessments when certified for a period of greater than six months.\n\n(20) The State agency's plan to reach and enroll migrants, and eligible women in the early months of pregnancy.\n\n(21) The State agency's plan to establish, to the extent practicable, that homeless facilities, and institutions if it chooses to make the Program available to them, meet the conditions established in \u00a7 246.7(n)(1)(i) of this part, if residents of such accommodations are to be eligible to receive WIC Program benefits.\n\n(22) A plan to provide program benefits to unserved infants and children under the care of foster parents, protective services, or child welfare authorities, including infants exposed to drugs perinatally.\n\n(23) A plan to improve access to the Program for participants and prospective applicants who are employed or who reside in rural areas, by addressing their special needs through the adoption or revision of procedures and practices to minimize the time participants and applicants must spend away from work and the distances participants and applicants must travel. The State agency shall also describe any plans for issuance of food instruments and cash-value vouchers to employed or rural participants, or to any other segment of the participant population, through means other than direct participant pick-up, pursuant to \u00a7 246.12(r)(4). Such description shall also include measures to ensure the integrity of Program services and fiscal accountability. The State agency will also describe its policy for approving transportation of participants to and from WIC clinics.\n\n(24) Assurance that each local agency and any subgrantees of the State agency and/or local agencies are in compliance with the requirements of 2 CFR part 180, OMB Guidelines to Agencies on Government-wide Debarment and Suspension and USDA implementing regulations 2 CFR part 417 regarding nonprocurement debarment/suspension.\n\n(25) A description of the State agency's plans to provide and maintain a drug-free workplace in compliance with requirements in 2 CFR part 180, Government-wide Requirements for Drug-Free Workplace (Financial Assistance) and USDA implementing regulation 2 CFR part 421.\n\n(26) A list of all organizations with which the State agency or its local agencies has executed or intends to execute a written agreement pursuant to \u00a7 246.26(h) authorizing the use and disclosure of confidential applicant and participant information for non-WIC purposes.\n\n(27) The State agency's policies and procedures for preventing conflicts of interest at the local agency or clinic level in a reasonable manner. At a minimum, this plan must prohibit the following WIC certification practices by local agency or clinic employees, or provide effective alternative policies and procedures when such prohibition is not possible:\n\n(i) Certifying oneself;\n\n(ii) Certifying relatives or close friends; or,\n\n(iii) One employee determining eligibility for all certification criteria and issuing food instruments, cash-value vouchers or supplemental food for the same participant.\n\n(28) The State agency's plan for collecting and maintaining information on cases of participant and employee fraud and abuse. Such information should include the nature of the fraud detected and the associated dollar losses.\n\n(29) The State agency's Universal Identifier number.\n\n(30) Plans of alternate operating procedures, commonly referred to as disaster plans, to support the continuation of WIC services during an emergency period as defined at \u00a7 246.2, supply chain disruption as defined at \u00a7 246.2, and supplemental food recall. State agencies must consider the unique and sudden nature of an emergency period, supplemental food recall, and other supply chain disruptions when developing alternate operating procedures. Alternate procedures must describe the process by which the State agency will minimize the negative impact to WIC operations and services and ensure the availability of authorized supplemental foods, especially infant formula, to the extent feasible. At a minimum, alternate operating procedures must include-\n\n(i) A plan to address operation of specific Program areas including-\n\n(A) Access to Program records;\n\n(B) Alternate certification and benefit issuance;\n\n(C) Verification of Certification (VOC) issuance;\n\n(D) Food package adjustments;\n\n(E) Vendor requirements;\n\n(F) Benefit transaction and redemption; and\n\n(G) Food delivery systems.\n\n(ii) A plan to ensure continuity of WIC services and address the needs of participants with documented qualifying conditions receiving Food Package III, rural areas, Indian tribal organizations, and other priority populations in the affected area as applicable;\n\n(iii) A designated emergency contact within the State agency for an emergency period, supplemental food recall, and other supply chain disruptions;\n\n(iv) A designated emergency contact within the State agency to address the needs of participants with documented qualifying conditions receiving Food Package III;\n\n(v) A plan to establish relationships with relief agencies responsible for disaster and public health emergency planning applicable to the State agency's jurisdiction and participants to support data-informed approaches when responding to an emergency period, supplemental food recall, and other supply chain disruptions;\n\n(vi) A plan to limit the disruption of infant formula benefits in the event of an emergency period, supplemental food recall, and other supply chain disruptions;\n\n(vii) A communications plan to keep FNS, State and local agency staff, authorized WIC vendors, WIC participants, and the public informed during an emergency period, supplemental food recall, and other supply chain disruptions;\n\n(viii) A plan to report to FNS on alternate operating procedures implemented during an emergency period, supplemental food recall, and other supply chain disruptions which includes Program data and information on the impact of benefit use and delivery; and\n\n(ix) A plan to adjust State agency specific minimum requirements for the variety and quantity of supplemental foods that a vendor applicant must stock to be authorized.\n\n(b)  Public comment.  The State agency shall establish a procedure under which members of the general public are provided an opportunity to comment on the development of the State agency plan.\n\n(c)  Amendments.  At any time after approval, the State agency may amend the State Plan to reflect changes. The State agency shall submit the amendments to FNS for approval. The amendments shall be signed by the State designated official responsible for ensuring that the Program is operated in accordance with the State Plan.\n\n(d)  Retention of copy.  A copy of the approved State Plan or the WIC portion of the State's composite plan of operations shall be kept on file at the State agency for public inspection."], ["7:7:4.1.1.1.10.2.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "B", "Subpart B\u2014State and Local Agency Eligibility", "", "\u00a7 246.5 Selection of local agencies.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985; 65 FR 53527, Sept. 5, 2000; 71 FR 56728, Sept. 27, 2006]", "(a)  General.  This section sets forth the procedures the State agency shall perform in the selection of local agencies and the expansion, reduction, and disqualification of local agencies already in operation. In making decisions to intitiate, continue, and discontinue the participation of local agencies, the State agency shall give consideration to the need for Program benefits as delineated in the Affirmative Action Plan.\n\n(b)  Application of local agencies.  The State agency shall require each agency, including subdivisions of the State agency, which desires approval as a local agency, to submit a written local agency application. After the receipt of an incomplete application, the State agency shall provide written notification to the applicant agency of the additional information needed. After the receipt of a complete application, the State agency shall notify the applicant agency in writing of the approval or disapproval of its application. When an application is disapproved, the State agency shall advise the applicant agency of the reasons for disapproval and of the right to appeal as set forth in \u00a7 246.18. When an agency submits an application and there are no funds to serve the area, the applicant agency shall be notified that there are currently no funds available for Program initiation or expansion. The applicant agency shall be notified by the State agency when funds become available.\n\n(c)  Program initiation and expansion.  The State agency shall meet the following requirements concerning Program initiation and expansion:\n\n(1) The State agency will consider the Affirmative Action Plan (see \u00a7 246.4(a)(5)) when funding local agencies and expanding existing operations, and may consider how much of the current need is being met at each priority level. The selection criteria cited in paragraph (d)(1) of this section shall be applied to each area or special population before eliminating that area from consideration and serving the next area of special population. The State agency shall consider the number of participants in each priority level being served by existing local agencies in determining when it is appropriate to move into additional areas in the Affirmative Action Plan or to expand existing operations in an area. Additionally, the State agency shall consider the total number of people potentially eligible in each area compared to the number being served.\n\n(2) The State agency shall provide a written justification to FNS for not funding an agency to serve the highest priority area or special population. Such justification may include its inability to administer the Program, lack of interest expressed for operating the Program, or for those areas or special populations which are under consideration for expansion of an existing operation, a determination by the State agency that there is a greater need for funding an agency serving an area or special population not operating the Program. The State agency shall use the participant priority system in \u00a7 246.7 as a measurement of greater need in such determination.\n\n(3) The State agency may fund more than one local agency to serve the same area or special population as long as more than one local agency is necessary to serve the full extent of need in that area or special population.\n\n(d)  Local agency priority system.  The State agency shall establish standards for the selection of new local agencies. Such standards shall include the following considerations:\n\n(1) The State agency shall consider the following priority system, which is based on the relative availability of health and administrative services, in the selection of local agencies:\n\n(i) First consideration shall be given to a public or a private nonprofit health agency that will provide ongoing, routine pediatric and obstetric care and administrative services.\n\n(ii) Second consideration shall be given to a public or a private nonprofit health or human service agency that will enter into a written agreement with another agency for either ongoing, routine pediatric and obstetric care or administrative services.\n\n(iii) Third consideration shall be given to a public or private nonprofit health agency that will enter into a written agreement with private physicians, licensed by the State, in order to provide ongoing, routine pediatric and obstetric care to a specific category of participants (women, infants or children).\n\n(iv) Fourth consideration shall be given to a public or private nonprofit human service agency that will enter into a written agreement with private physicians, licensed by the State, to provide ongoing, routine pediatric and obstetric care.\n\n(v) Fifth consideration shall be given to a public or private nonprofit health or human service agency that will provide ongoing, routine pediatric and obstetric care through referral to a health provider.\n\n(2) The State agency must, when seeking new local agencies, publish a notice in the local media (unless it has received an application from a local public or nonprofit private health agency that can provide adequate services). The notice will include a brief explanation of the Program, a description of the local agency priority system (outlined in this paragraph (d)), and a request that potential local agencies notify the State agency of their interest. In addition, the State agency will contact all potential local agencies to make sure they are aware of the opportunity to apply. If an application is not submitted within 30 days, the State agency may then select a local agency in another area. If sufficient funds are available, a State agency will give notice and consider applications outside the local area at the same time.\n\n(e)  Disqualification of local agencies.  (1) The State agency may disqualify a local agency\u2014\n\n(i) When the State agency determines noncompliance with Program regulations;\n\n(ii) When the State's Program funds are insufficient to support the continued operation of all its existing local agencies at their current participation level; or\n\n(iii) When the State agency determines, following a review of local agency credentials in accordance with paragraph (f) of this section, that another local agency can operate the Program more effectively and efficiently.\n\n(2) The State agency may establish its own criteria for disqualification of local agencies. The State agency shall notify the local agency of any State-established criteria. In addition to any State established criteria, the State agency shall consider, at a minimum\u2014\n\n(i) The availability of other community resources to participants and the cost efficiency and cost effectiveness of the local agency in terms of both food and nutrition services and administration costs;\n\n(ii) The percentages of participants in each priority level being served by the local agency and the percentage of need being met in each participant category;\n\n(iii) The relative position of the area or special population served by the local agency in the Affirmative Action Plan;\n\n(iv) The local agency's place in the priority system in paragraph (d)(1) of this section; and\n\n(v) The capability of another local agency or agencies to accept the local agency's participants.\n\n(3) When disqualifying a local agency under the Program, the State agency shall\u2014\n\n(i) Make every effort to transfer affected participants to another local agency without disruption of benefits;\n\n(ii) Provide the affected local agency with written notice not less than 60 days in advance of the pending action which includes an explanation of the reasons for disqualification, the date of disqualification, and, except in cases of the expiration of a local agency's agreement, the local agency's right to appeal as set forth in \u00a7 246.18; and\n\n(iii) Ensure that the action is not in conflict with any existing written agreements between the State and the local agency.\n\n(f)  Periodic review of local agency qualifications.  The State agency may conduct periodic reviews of the qualifications of authorized local agencies under its jurisdiction. Based upon the results of such reviews the State agency may make appropriate adjustments among the participating local agencies, including the disqualification of a local agency when the State agency determines that another local agency can operate the Program more effectively and efficiently. In conducting such reviews, the State agency shall consider the factors listed in paragraph (e)(2) of this section in addition to whatever criteria it may develop. The State agency shall implement the procedures established in paragraph (e)(3) of this section when disqualifying a local agency."], ["7:7:4.1.1.1.10.2.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "B", "Subpart B\u2014State and Local Agency Eligibility", "", "\u00a7 246.6 Agreements with local agencies.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 59 FR 11500, Mar. 11, 1994; 63 FR 63974, Nov. 18, 1998; 76 FR 59889, Sept. 28, 2011; 81 FR 66495, Sept. 28, 2016]", "(a)  Signed written agreements.  The State agency shall enter into a signed written agreement with each local agency, including subdivisions of the State agency, which sets forth the local agency's responsibilities for Program operations as prescribed in this part. Copies of the agreement shall be kept on file at both the State and local agencies for purposes of review and audit in accordance with \u00a7\u00a7 246.19 and 246.20. Neither the State agency nor the local agency has an obligation to renew the agreement. The expiration of an agreement is not subject to appeal. The State agency shall provide local agencies with advance written notice of the expiration of an agreement as required under \u00a7\u00a7 246.5(e)(3)(ii) and 246.18(b)(1).\n\n(b)  Provisions of agreement.  The agreement between the State agency and each local agency shall ensure that the local agency\u2014\n\n(1) Complies with all the fiscal and operational requirements prescribed by the State agency pursuant to debarment and suspension requirements and if applicable, the lobbying restrictions of 2 CFR part 200, subpart E, and USDA implementing regulations 2 CFR part 400, part 415, and part 417, and FNS guidelines and instructions, and provides on a timely basis to the State agency all required information regarding fiscal and Program information;\n\n(2) Has a competent professional authority on the staff of the local agency and the capabilities necessary to perform the certification procedures;\n\n(3) Makes available appropriate health services to participants and informs applicants of the health services which are available;\n\n(4) Prohibits smoking in the space used to carry out the WIC Program during the time any aspect of WIC services are performed;\n\n(5) Has a plan for continued efforts to make health services available to participants at the clinic or through written agreements with health care providers when health services are provided through referral;\n\n(6) Provides nutrition education services, including breastfeeding promotion and support, to participants, in compliance with \u00a7 246.11 and FNS guidelines and instructions;\n\n(7) Implements a food delivery system prescribed by the State agency pursuant to \u00a7 246.12 and approved by FNS;\n\n(8) Maintains complete, accurate, documented and current accounting of all Program funds received and expended;\n\n(9) Maintains on file and has available for review, audit, and evaluation all criteria used for certification, including information on the area served, income standards used, and specific criteria used to determine nutritional risk; and\n\n(10) Does not discriminate against persons on the grounds of race, color, national origin, age, sex or handicap; and compiles data, maintains records and submits reports as required to permit effective enforcement of the nondiscrimination laws.\n\n(c)  Indian agencies.  Each Indian State agency shall ensure that all local agencies under its jurisdiction serve primarily Indian populations.\n\n(d)  Health and human service agencies.  When a health agency and a human service agency comprise the local agency, both agencies shall together meet all the requirements of this part and shall enter into a written agreement which outlines all Program responsibilities of each agency. The agreement shall be approved by the State agency during the application process and shall be on file at both the State and local agency. No Program funds shall be used to reimburse the health agency for the health services provided. However, costs of certification borne by the health agency may be reimbursed.\n\n(e)  Health or human service agencies and private physicians.  When a health or human service agency and private physician(s) comprise the local agency, all parties shall together meet all of the requirements of this part and shall enter into a written agreement which outlines the inter-related Program responsibilities between the physician(s) and the local agency. The agreement shall be approved by the State agency during the application process and shall be on file at both agencies. The local agency shall advise the State agency on its application of the name(s) and address(es) of the private physician(s) participating and obtain State agency approval of the written agreement. A competent professional authority on the staff of the health or human service agency shall be responsible for the certification of participants. No Program funds shall be used to reimburse the private physician(s) for the health services provided. However, costs of certification data provided by the physician(s) may be reimbursed.\n\n(f)  Outreach/Certification In Hospitals.  The State agency shall ensure that each local agency operating the program within a hospital and/or that has a cooperative arrangement with a hospital:\n\n(1) Advises potentially eligible individuals that receive inpatient or outpatient prenatal, maternity, or postpartum services, or that accompany a child under the age of 5 who receives well-child services, of the availability of program services; and\n\n(2) To the extent feasible, provides an opportunity for individuals who may be eligible to be certified within the hospital for participation in the WIC Program."], ["7:7:4.1.1.1.10.3.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "C", "Subpart C\u2014Participant Eligibility", "", "\u00a7 246.7 Certification of participants.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985]", "(a)  Integration with health services.  To lend administrative efficiency and participant convenience to the certification process, whenever possible, Program intake procedures shall be combined with intake procedures for other health programs or services administered by the State and local agencies. Such merging may include verification procedures, certification interviews, and income computations. Local agencies shall maintain and make available for distribution to all pregnant, postpartum, and breastfeeding women and to parents or caretakers of infants and children applying for and participating in the Program a list of local resources for drug and other harmful substance abuse counseling and treatment.\n\n(b)  Program referral and access.  State and local agencies shall provide WIC Program applicants and participants or their designated proxies with information on other health-related and public assistance programs, and when appropriate, shall refer applicants and participants to such programs.\n\n(1) The State agency shall provide each local WIC agency with materials showing the maximum income limits, according to family size, applicable to pregnant women, infants, and children up to age 5 under the medical assistance program established under Title XIX of the Social Security Act (in this section, referred to as the \u201cMedicaid Program\u201d). The local agency shall, in turn, provide to adult individuals applying or reapplying for the WIC Program for themselves or on behalf of others, written information about the Medicaid Program. If such individuals are not currently participating in Medicaid but appear to have family income below the applicable maximum income limits for the program, the local agency shall also refer these individuals to Medicaid, including the referral of infants and children to the appropriate entity in the area authorized to determine eligibility for early and periodic screening, diagnostic, and treatment (EPSDT) services, and, the referral of pregnant women to the appropriate entity in the area authorized to determine presumptive eligibility for the Medicaid Program, if such determinations are being offered by the State.\n\n(2) State agencies shall provide WIC services at community and migrant health centers, Indian Health Services facilities, and other federally health care supported facilities established in medically underserved areas to the extent feasible.\n\n(3) Local agencies may provide information about other potential sources of food assistance in the local area to adult individuals applying or reapplying in person for the WIC Program for themselves or on behalf of others, when such applicants cannot be served because the Program is operating at capacity in the local area.\n\n(4) Each local agency that does not routinely schedule appointments shall schedule appointments for employed adult individuals seeking to apply or reapply for participation in the WIC Program for themselves or on behalf of others so as to minimize the time such individuals are absent from the workplace due to such application.\n\n(5) Each local agency shall attempt to contact each pregnant woman who misses her first appointment to apply for participation in the Program in order to reschedule the appointment. At the time of initial contact, the local agency shall request an address and telephone number where the pregnant woman can be reached.\n\n(c)  Eligibility criteria and basic certification procedures.  (1) To qualify for the Program, infants, children, and pregnant, postpartum, and breastfeeding women must:\n\n(i) Reside within the jurisdiction of the State (except for Indian State agencies). Indian State agencies may establish a similar requirement. All State agencies may determine a service area for any local agency, and may require that an applicant reside within the service area. However, the State agency may not use length of residency as an eligibility requirement.\n\n(ii) Meet the income criteria specified in paragraph (d) of this section.\n\n(iii) Meet the nutritional risk criteria specified in paragraph (e) of this section.\n\n(2)(i) At certification, the State or local agency must require each applicant to present proof of residency (i.e., location or address where the applicant routinely lives or spends the night) and proof of identity. The State or local agency must also check the identity of participants, or in the case of infants or children, the identity of the parent or guardian, or proxies when issuing food, cash-value vouchers or food instruments. The State agency may authorize the certification of applicants when no proof of residency or identity exists (such as when an applicant or an applicant's parent is a victim of theft, loss, or disaster; a homeless individual; or a migrant farmworker). In these cases, the State or local agency must require the applicant to confirm in writing his/her residency or identity. Further, an individual residing in a remote Indian or Native village or an individual served by an Indian tribal organization and residing on a reservation or pueblo may establish proof of residency by providing the State agency their mailing address and the name of the remote Indian or Native village.\n\n(ii) For a State agency opting to require proof of pregnancy, the State agency may issue benefits to applicants who claim to be pregnant (assuming that all other eligibility criteria are met) but whose conditions (as pregnant) are not visibly noticeable and do not have documented proof of pregnancy at the time of the certification interview and determination. The State agency should then allow a reasonable period of time, not to exceed 60 days, for the applicant to provide the requested documentation. If such documentation is not provided as requested, the woman can no longer be considered categorically eligible, and the local agency would then be justified in terminating the woman's WIC participation in the middle of a certification period.\n\n(3) A State, a State agency, and an Indian Tribal Organization (including, an Indian tribe, band, or group recognized by the Department of the Interior; or an intertribal council or group which is an authorized representative of Indian tribes, bands or groups recognized by the Department of the Interior and which has an ongoing relationship with such tribes, bands or groups for other purposes and has contracted with them to administer the Program) serving as a State agency, may limit WIC participation to United States citizens, nationals, and qualified aliens as these terms are defined in the Immigration and Nationality Laws (8 U.S.C. 1101  et seq. ). State agencies that implement this option shall inform FNS of their intentions and provide copies of the procedures they will establish regarding the limitation of WIC services to United States citizens, nationals, and qualified aliens.\n\n(4) The certification procedure shall be performed at no cost to the applicant.\n\n(d)  Income criteria and income eligibility determinations.  The State agency shall establish, and provide local agencies with, income guidelines, definitions, and procedures to be used in determining an applicant's income eligibility for the Program.\n\n(1)  Income eligibility guidelines.  The State agency may prescribe income guidelines either equaling the income guidelines established under section 9 of the National School Lunch Act for reduced-price school meals or identical to State or local guidelines for free or reduced-price health care. However, in conforming Program income guidelines to health care guidelines, the State agency shall not establish Program guidelines which exceed the guidelines for reduced-price school meals or are less than 100 percent of the revised poverty income guidelines issued annually by the Department of Health and Human Services. Program applicants who meet the requirements established by paragraph (d)(2)(vi)(A) of this section shall not be subject to the income limits established by State agencies under this paragraph.\n\n(i)  Local agency income eligibility guidelines.  Different guidelines may be prescribed for different local agencies within the State provided that the guidelines are the ones used by the local agencies for determining eligibility for free or reduced-price health care.\n\n(ii)  Annual adjustments in the income guidelines.  On or before June 1 each year, FNS will announce adjustments in the income guidelines for reduced-price meals under section 9 of the National School Lunch Act, based on annual adjustments in the revised poverty income guidelines issued by the Department of Health and Human Services.\n\n(iii) Implementation of the income guidelines. On or before July 1 each year, each State agency shall announce and transmit to each local agency the State agency's family size income guidelines, unless changes in the poverty income guidelines issued by the Department of Health and Human Services do not necessitate changes in the State or local agency's income guidelines. The State agency may implement revised guidelines concurrently with the implementation of income guidelines under the Medicaid program established under Title XIX of the Social Security Act (42 U.S.C. 1396 of  et seq. ). The State agency shall ensure that conforming adjustments are made, if necessary, in local agency income guidelines. The local agency shall implement (revised) guidelines not later than July 1 of each year for which such guidelines are issued by the State.\n\n(2)  Income eligibility determinations.  The State agency shall ensure that local agencies determine income through the use of a clear and simple application form provided or approved by the State agency.\n\n(i)  Timeframes for determining income.  In determining the income eligibility of an applicant, the State agency may instruct local agencies to consider the income of the family during the past 12 months and the family's current rate of income to determine which indicator more accurately reflects the family's status. However, persons from families with adult members who are unemployed shall be eligible based on income during the period of unemployment if the loss of income causes the current rate of income to be less than the State or local agency's income guidelines for Program eligibility.\n\n(ii)  Definition of \u201cIncome\u201d.  If the State agency uses the National School Lunch reduced-priced meal income guidelines, as specified in paragraph (d)(1) of this section, it shall use the following definition of income: Income for the purposes of this part means gross cash income before deductions for income taxes, employees' social security taxes, insurance premiums, bonds, etc. Income includes the following\u2014\n\n(A) Monetary compensation for services, including wages, salary, commissions, or fees;\n\n(B) Net income from farm and non-farm self-employment;\n\n(C) Social Security benefits;\n\n(D) Dividends or interest on savings or bonds, income from estates or trusts, or net rental income;\n\n(E) Public assistance or welfare payments;\n\n(F) Unemployment compensation;\n\n(G) Government civilian employee or military retirement or pensions or veterans' payments;\n\n(H) Private pensions or annuities;\n\n(I) Alimony or child support payments;\n\n(J) Regular contributions from persons not living in the household;\n\n(K) Net royalties; and\n\n(L) Other cash income. Other cash income includes, but is not limited to, cash amounts received or withdrawn from any source including savings, investments, trust accounts and other resources which are readily available to the family.\n\n(iii)  Use of a State or local health care definition of \u201cIncome\u201d.  If the State agency uses State or local free or reduced-price health care income guidelines, it will ensure that the definitions of income (see paragraph (d)(2)(ii) of this section), family (see \u00a7 246.2) and allowable exclusions from income (see paragraph (d)(2)(iv) of this section) are used uniformly to determine an applicant's income eligibility. This ensures that households with a gross income in excess of 185 percent of the Federal income guidelines (see paragraph (d)(1) of this section) are not eligible for Program benefits. The exception to this requirement is persons who are also income eligible under other programs (see paragraph (d)(2)(vi) of this section).\n\n(iv)  Income exclusions.  (A) In determining income eligibility, the State agency may exclude from consideration as income any:\n\n( 1 ) Basic allowance for housing received by military services personnel residing off military installations or in privatized housing, whether on- or off-base; and\n\n( 2 ) Cost-of-living allowance provided under 37 U.S.C. 405, to a member of a uniformed service who is on duty outside the contiguous states of the United States.\n\n(B) The value of inkind housing and other inkind benefits, shall be excluded from consideration as income in determining an applicant's eligibility for the program.\n\n(C) Loans, not including amounts to which the applicant has constant or unlimited access.\n\n(D) Payments or benefits provided under certain Federal programs or acts are excluded from consideration as income by legislative prohibition. The payments or benefits which must be excluded from consideration as income include, but are not limited to:\n\n( 1 ) Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646, sec. 216, 42 U.S.C. 4636);\n\n( 2 ) Any payment to volunteers under Title I (VISTA and others) and Title II (RSVP, foster grandparents, and others) of the Domestic Volunteer Service Act of 1973 (Pub. L. 93-113, sec. 404(g), 42 U.S.C. 5044(g)) to the extent excluded by that Act;\n\n( 3 ) Payment to volunteers under section 8(b)(1)(B) of the Small Business Act (SCORE and ACE) (Pub. L. 95-510, sec. 101, 15 U.S.C. 637(b)(1)(D));\n\n( 4 ) Income derived from certain submarginal land of the United States which is held in trust for certain Indian tribes (Pub. L. 94-114, sec. 6, 25 U.S.C. 459e);\n\n( 5 ) Payments received under the Job Training Partnership Act (Pub. L. 97-300, sec. 142(b), 29 U.S.C. 1552(b));\n\n( 6 ) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, sec. 6);\n\n( 7 ) Payments received under the Alaska Native Claims Settlement Act (Pub. L. 100-241, sec. 15, 43 U.S.C. sec. 1626(c));\n\n( 8 ) The value of assistance to children or their families under the National School Lunch Act, as amended (Pub. L. 94-105, sec. 9(d), 42 U.S.C. sec. 1760(e)), the Child Nutrition Act of 1966 (Pub. L. 89-642, sec. 11(b), 42 U.S.C. sec. 1780(b)), and the Food and Nutrition Act of 2008 (Pub. L. 95-113, sec. 1301, 7 U.S.C. sec. 2017(b));\n\n( 9 ) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (Pub. L. 95-433, sec. 2, 25 U.S.C. 609c-1);\n\n( 10 ) Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (Pub. L. 96-420, sec. 6, 9(c), 25 U.S.C. 1725(i), 1728(c));\n\n( 11 ) Payments under the Low-income Home Energy Assistance Act, as amended (Pub. L. 99-125, sec. 504(c), 42 U.S.C. sec. 8624(f));\n\n( 12 ) Student financial assistance received from any program funded in whole or part under Title IV of the Higher Education Act of 1965, including the Pell Grant, Supplemental Educational Opportunity Grant, State Student Incentive Grants, National Direct Student Loan, PLUS, College Work Study, and Byrd Honor Scholarship programs, which is used for costs described in section 472 (1) and (2) of that Act (Pub. L. 99-498, section 479B, 20 U.S.C. 1087uu). The specified costs set forth in section 472 (1) and (2) of the Higher Education Act are tuition and fees normally assessed a student carrying the same academic workload as determined by the institution, and including the costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study; and an allowance for books, supplies, transportation, and miscellaneous personal expenses for a student attending the institution on at least a half-time basis, as determined by the institution. The specified costs set forth in section 472 (1) and (2) of the Act are those costs which are related to the costs of attendance at the educational institution and do not include room and board and dependent care expenses;\n\n( 13 ) Payments under the Disaster Relief Act of 1974, as amended by the Disaster Relief and Emergency Assistance Amendments of 1989 (Pub. L. 100-707, sec. 105(i), 42 U.S.C. sec. 5155(d));\n\n( 14 ) Effective July 1, 1991, payments received under the Carl D. Perkins Vocational Education Act, as amended by the Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990 (Pub. L. 101-392, sec. 501, 20 U.S.C. sec. 2466d);\n\n( 15 ) Payments pursuant to the Agent Orange Compensation Exclusion Act (Pub. L. 101-201, sec. 1);\n\n( 16 ) Payments received for Wartime Relocation of Civilians under the Civil Liberties Act of 1988 (Pub. L. 100-383, sec. 105(f)(2), 50 App. U.S.C. sec. 1989b-4(f)(2));\n\n( 17 ) Value of any child care payments made under section 402(g)(1)(E) of the Social Security Act, as amended by the Family Support Act (Pub. L. 100-485, sec. 301, 42 U.S.C. sec. 602 (g)(1)(E));\n\n( 18 ) Value of any \u201cat-risk\u201d block grant child care payments made under section 5081 of Pub. L. 101-508, which amended section 402(i) of the Social Security Act;\n\n( 19 ) Value of any child care provided or paid for under the Child Care and Development Block Grant Act, as amended (Pub. L. 102-586, Sec. 8(b)), 42 U.S.C. 9858q);\n\n( 20 ) Mandatory salary reduction amount for military service personnel which is used to fund the Veteran's Educational Assistance Act of 1984 (GI Bill), as amended (Pub. L. 99-576, sec. 303(a)(1), 38 U.S.C. sec. 1411 (b));\n\n( 21 ) Payments received under the Old Age Assistance Claims Settlement Act, except for per capita shares in excess of $2,000 (Pub. L. 98-500, sec. 8, 25 U.S.C. sec. 2307);\n\n( 22 ) Payments received under the Cranston-Gonzales National Affordable Housing Act, unless the income of the family equals or exceeds 80 percent of the median income of the area (Pub. L. 101-625, sec. 522(i)(4), 42 U.S.C. sec. 1437f nt);\n\n( 23 ) Payments received under the Housing and Community Development Act of 1987, unless the income of the family increases at any time to not less than 50 percent of the median income of the area (Pub. L. 100-242, sec. 126(c)(5)(A), 25 U.S.C. sec. 2307);\n\n( 24 ) Payments received under the Sac and Fox Indian claims agreement (Pub. L. 94-189, sec. 6);\n\n( 25 ) Payments received under the Judgment Award Authorization Act, as amended (Pub. L. 97-458, sec. 4, 25 U.S.C. sec. 1407 and Pub. L. 98-64, sec. 2(b), 25 U.S.C. sec. 117b(b));\n\n( 26 ) Payments for the relocation assistance of members of Navajo and Hopi Tribes (Pub. L. 93-531, sec. 22, 22 U.S.C. sec. 640d-21);\n\n( 27 ) Payments to the Turtle Mountain Band of Chippewas, Arizona (Pub. L. 97-403, sec. 9);\n\n( 28 ) Payments to the Blackfeet, Grosventre, and Assiniboine tribes (Montana) and the Papago (Arizona) (Pub. L. 97-408, sec. 8(d));\n\n( 29 ) Payments to the Assiniboine Tribe of the Fort Belknap Indian community and the Assiniboine Tribe of the Fort Peck Indian Reservation (Montana) (Pub. L. 98-124, sec. 5);\n\n( 30 ) Payments to the Red Lake Band of Chippewas (Pub. L. 98-123, sec. 3);\n\n( 31 ) Payments received under the Saginaw Chippewa Indian Tribe of Michigan Distribution of Judgment Funds Act (Pub. L. 99-346, sec. 6(b)(2));\n\n( 32 ) Payments to the Chippewas of Mississippi (Pub. L. 99-377, sec. 4(b));\n\n( 33 ) Payments received by members of the Armed Forces and their families under the Family Supplemental Subsistence Allowance from the Department of Defense (Pub. L. 109-163, sec. 608); and\n\n( 34 ) Payments received by property owners under the National Flood Insurance Program (Pub. L. 109-64).\n\n( 35 ) Combat pay received by the household member under Chapter 5 of Title 37 or as otherwise designated by the Secretary.\n\n(v)  Are applicants required to document income eligibility?  (A)  Adjuctively/automatically income eligible applicants.  The State or local agency must require applicants determined to be adjunctively or automatically income eligible to document their eligibility for the program that makes them income eligible as set forth in paragraph (d)(2)(vi) of this section.\n\n(B)  Other applicants.  The State or local agency must require all other applicants to provide documentation of family income at certification.\n\n(C)  Exceptions.  The income documentation requirement does not apply to an individual for whom the necessary documentation is not available or an individual such as a homeless woman or child for whom the agency determines the income documentation requirement would present an unreasonable barrier to participation. Examples of individuals for whom the necessary documentation is not available include those with no income or no proof of income (such as an applicant or applicant's parent who is a migrant farmworker or other individual who works for cash). These are the only exceptions that may be used. When using these exceptions, the State or local agency must require the applicant to sign a statement specifying why he/she cannot provide documentation of income. Such a statement is not required when there is no income.\n\n(D)  Verification.  The State or local agency may require verification of information it determines necessary to confirm income eligibility for Program benefits.\n\n(vi)  Adjunct or automatic income eligibility.  (A) The State agency shall accept as income-eligible for the Program any applicant who documents that he/she is:\n\n( 1 ) Certified as fully eligible to receive SNAP benefits under the Food and Nutrition Act of 2008, or certified as fully eligible, or presumptively eligible pending completion of the eligibility determination process, to receive Temporary Assistance for Needy Families (TANF) under Part A of Title IV of the Social Security Act or Medical Assistance (i.e., Medicaid) under Title XIX of the Social Security Act; or\n\n( 2 ) A member of a family that is certified eligible to receive assistance under TANF, or a member of a family in which a pregnant woman or an infant is certified eligible to receive assistance under Medicaid.\n\n(B) The State agency may accept, as evidence of income within Program guidelines, documentation of the applicant's participation in State-administered programs not specified in this paragraph that routinely require documentation of income, provided that those programs have income eligibility guidelines at or below the State agency's Program income guidelines.\n\n(C) Persons who are adjunctively income eligible, as set forth in paragraphs (d)(2)(vi)(A) of this section, shall not be subject to the income limits established under paragraph (d)(1) of this section.\n\n(vii)  Income eligibility of pregnant women.  A pregnant woman who is ineligible for participation in the program because she does not meet income guidelines shall be considered to have satisfied the income guidelines if the guidelines would be met by increasing the number of individuals in her family by the number of embryos or fetuses in utero. The same increased family size may also be used for any of the pregnant woman's categorically eligible family members. The State agency shall allow applicants to waive this increase in family size.\n\n(viii)  Income eligibility of Indian applicants.  If an Indian State agency (or a non-Indian State agency which acts on behalf of a local agency operated by an Indian organization or the Indian Health Service) submits census data or other reliable documentation demonstrating to FNS that the majority of the Indian households in a local agency's service area have incomes at or below the State agency's income eligibility guidelines, FNS may authorize the State agency to approve the use of an income certification system under which the local Indian agency shall inform each Indian applicant household of the maximum family income allowed for that applicant's family size. The local agency shall ensure that the applicant, or the applicant's parent or caretaker, signs a statement that the applicant's family income does not exceed the maximum. The local agency may verify the income eligibility of any Indian applicant.\n\n(ix)  Are instream migrant farmworkers and their family members required to document income eligibility?  Certain instream migrant farmworkers and their family members with expired Verification of Certification cards shall be declared to satisfy the State agency's income standard and income documentation requirements. Such cases include when income of that instream migrant farmworker is determined at least once every 12 months. Such families shall satisfy the income criteria in any State for any subsequent certification while the migrant is instream during the 12-month period following the determination. The determination can occur either in the migrant's home base area before the migrant has entered the stream for a particular agricultural season, or in an instream area during the agricultural season.\n\n(e)  Nutritional risk.  To be certified as eligible for the Program, applicants who meet the Program's eligibility standards specified in paragraph (c) of this section must be determined to be at nutritional risk. A competent professional authority on the staff of the local agency shall determine if a person is at nutritional risk through a medical and/or nutritional assessment. This determination may be based on referral data submitted by a competent professional authority not on the staff of the local agency. Nutritional risk data shall be documented in the participant's file and shall be used to assess an applicant's nutritional status and risk; tailor the food package to address nutritional needs; design appropriate nutrition education, including breastfeeding promotion and support; and make referrals to health and social services for follow-up, as necessary and appropriate.\n\nExcept as stated in paragraph (e)(1)(v) of this section, at least one determination of nutritional risk must be documented at the time of certification in order for an income eligible applicant to receive WIC benefits.\n\n(1)  Determination of nutritional risk.  (i)  Required nutritional risk data.  (A) At a minimum, height or length and weight measurements shall be performed and/or documented in the applicant's file at the time of certification. In addition, a hematological test for anemia such as a hemoglobin, hematocrit, or free erythrocyte protoporphyrin test shall be performed and/or documented at certification for applicants with no other nutritional risk factor present. For applicants with a qualifying nutritional risk factor present at certification, such test shall be performed and/or documented within 90 days of the date of certification. However, for breastfeeding women 6-12 months postpartum, such hematological tests are not required if a test was performed after the termination of their pregnancy. In addition, such hematological tests are not required, but are permitted, for infants under nine months of age. All infants nine months of age and older (who have not already had a hematological test performed or obtained, between the ages of six and nine months), shall have a hematological test performed between nine and twelve months of age or obtained from referral sources. This hematological test does not have to occur within 90 days of the date of certification. Only one test is required for children between 12 and 24 months of age, and this test should be done 6 months after the infant test, if possible. At the State or local agency's discretion, the hematological test is not required for children ages two and older who were determined to be within the normal range at their last certification. However, the hematological test shall be performed on such children at least once every 12 months. Hematological test data submitted by a competent professional authority not on the staff of the local agency may be used to establish nutritional risk. However, such referral hematological data must:\n\n( 1 ) Be reflective of a woman applicant's category, meaning the test must have been taken for pregnant women during pregnancy and for postpartum or breastfeeding women following termination of pregnancy;\n\n( 2 ) Conform to the anemia screening schedule for infants and children as outlined in paragraph (e)(1)(ii)(B) of this section; and\n\n( 3 ) Conform to recordkeeping requirements as outlined in paragraph (i)(4) of this section.\n\n(B) Height or length and weight measurements and, with the exceptions specified in paragraph (e)(1)(v) of this section, hematological tests, shall be obtained for all participants, including those who are determined at nutritional risk based solely on the established nutritional risk status of another person, as provided in paragraphs (e)(1)(iv) and (e)(1)(v) of this section.\n\n(ii)  Timing of nutritional risk data.  (A)  Weight and height or length.  Weight and height or length shall be measured not more than 60 days prior to certification for program participation.\n\n(B)  Hematological test for anemia.  ( 1 ) For pregnant, breastfeeding, and postpartum women, and child applicants, the hematological test for anemia shall be performed or obtained from referral sources at the time of certification or within 90 days of the date of certification. The hematological test for anemia may be deferred for up to 90 days from the time of certification for applicants who have at least one qualifying nutritional risk factor present at the time of certification. If no qualifying risk factor is identified, a hematological test for anemia must be performed or obtained from referral sources (with the exception of presumptively eligible pregnant women).\n\n( 2 ) Infants nine months of age and older (who have not already had a hematological test performed, between six and nine months of age, by a competent professional authority or obtained from referral sources), shall between nine and twelve months of age have a hematological test performed or obtained from referral sources. Such a test may be performed more than 90 days after the date of certification.\n\n( 3 ) For pregnant women, the hematological test for anemia shall be performed during their pregnancy. For persons certified as postpartum or breastfeeding women, the hematological test for anemia shall be performed after the termination of their pregnancy. For breastfeeding women who are 6-12 months postpartum, no additional blood test is necessary if a test was performed after the termination of their pregnancy. The participant or parent/guardian shall be informed of the test results when there is a finding of anemia, and notations reflecting the outcome of the tests shall be made in the participant's file. Nutrition education, food package tailoring, and referral services shall be provided to the participant or parent/guardian, as necessary and appropriate.\n\n(iii)  Breastfeeding dyads.  A breastfeeding woman may be determined to be a nutritional risk if her breastfed infant has been determined to be a nutritional risk. A breastfed infant can be certified based on the mother's medical and/or nutritional assessment. A breastfeeding mother and her infant shall be placed in the highest priority level for which either is qualified.\n\n(iv)  Infants born to WIC mothers or women who were eligible to participate in WIC.  An infant under six months of age may be determined to be at nutritional risk if the infant's mother was a Program participant during pregnancy or of medical records document that the woman was at nutritional risk during pregnancy because of detrimental or abnormal nutritional conditions detectable by biochemical or anthropometric measurements or other documented nutritionally related medical conditions.\n\n(v)  Presumptive eligibility for pregnant women.  A pregnant woman who meets the income eligibility standards may be considered presumptively eligible to participate in the program, and may be certified immediately without an evaluation of nutritional risk for a period up to 60 days. A nutritional risk evaluation of such woman shall be completed not later than 60 days after the woman is certified for participation. A hematological test for anemia is not required to be performed within the 60-day period, but rather within 90 days, unless the nutritional risk evaluation performed does not identify a qualifying risk factor. If no qualifying risk factor is identified, a hematological test for anemia must be performed or obtained from referral sources before the 60-day period elapses. Under the subsequent determination process, if the woman does not meet any qualifying nutritional risk criteria, including anemia criteria, the woman shall be determined ineligible and may not participate in the program for the reference pregnancy after the date of the determination. Said applicant may subsequently reapply for program benefits and if found to be both income eligible and at qualifying nutritional risk may participate in the program. Persons found ineligible to participate in the program under this paragraph shall be advised in writing of the ineligibility, of the reasons for the ineligibility, and of the right to a fair hearing. The reasons for the ineligibility shall be properly documented and shall be retained on file at the local agency. In addition, if the nutritional risk evaluation is not completed within the 60-day timeframe, the woman shall be determined ineligible.\n\n(vi)  Regression.  A WIC participant who is reapplying for WIC benefits may be considered to be at nutritional risk in the next certification period if the competent professional authority determines that the applicant's nutritional status may regress to the nutritional risk condition(s) certified for in the previous certification period without supplemental foods and/or WIC nutrition services, and if the nutritional risk condition(s) certified for in the previous certification period is/are appropriate to the category of the participant in the subsequent certification based on regression. However, such applicants shall not be considered at nutritional risk based on the possibility of regression for consecutive certification periods. Applicants who are certified based on the possibility of regression should be placed either in the same priority for which they were certified in the previous certification period; a priority level lower than the priority level assigned in the previous certification period, consistent with \u00a7 246.7(e)(4); or in Priority VII, if the State agency is using that priority level.\n\n(2)  Nutritional risk criteria.  The following are examples of nutritional risk conditions which may be used as a basis for certification. These examples include\u2014\n\n(i) Detrimental or abnormal nutritional conditions detectable by biochemical or anthropometric measurements, such as anemia, underweight, overweight, abnormal patterns of weight gain in a pregnant woman, low birth weight in an infant, or stunting in an infant or child;\n\n(ii) Other documented nutritionally related medical conditions, such as clinical signs of nutritional deficiencies, metabolic disorders, pre-eclampsia in pregnant women, failure to thrive in an infant, chronic infections in any person, alcohol or drug abuse or mental retardation in women, lead poisoning, history of high risk pregnancies or factors associated with high risk pregnancies (such as smoking; conception before 16 months postpartum; history of low birth weight, premature births, or neonatal loss; adolescent pregnancy; or current multiple pregnancy) in pregnant women, or congenital malformations in infants or children, or infants born of women with alcohol or drug abuse histories or mental retardation.\n\n(iii) Dietary deficiencies that impair or endanger health, such as inadequate dietary patterns assessed by a 24-hour dietary recall, dietary history, or food frequency checklist; and\n\n(iv) Conditions that predispose persons to inadequate nutritional patterns or nutritionally related medical conditions, such as homelessness or migrancy.\n\n(3)  Nutritional risk priorities.  In determining nutritional risk, the State agency shall develop and include in its State Plan, specific risk conditions by priority level with indices for identifying these conditions. The criteria shall be used statewide and in accordance with the priority system as set forth in paragraph (e)(4) of this section.\n\n(4)  Nutritional risk priority system.  The competent professional authority shall fill vacancies which occur after a local agency has reached its maximum participation level by applying the following participant priority system to persons on the local agency's waiting list. Priorities I through VI shall be utilized in all States. The State agency may, at its discretion, expand the priority system to include Priority VII. The State agency may set income or other sub-priority levels within any of these seven priority levels. The State agency may expand Priority III, IV, or V to include high-risk postpartum women. The State agency may place pregnant or breastfeeding women and infants who are at nutritional risk solely because of homelessness or migrancy in Priority IV; children who are at nutritional risk solely because of homelessness or migrancy in Priority V; and postpartum women who are at nutritional risk solely because of homelessness or migrancy in Priority VI,  OR,  the State agency may place pregnant, breastfeeding or postpartum women, infants, and children who are at nutritional risk solely because of homelessness or migrancy in Priority VII.\n\n(i)  Priority I.  Pregnant women, breastfeeding women and infants at nutritional risk as demonstrated by hematological or anthropometric measurements, or other documented nutritionally related medical conditions which demonstrate the need for supplemental foods.\n\n(ii)  Priority II.  Except those infants who qualify for Priority I, infant up to six months of age of Program participants who participated during pregnancy, and infants up to six months of age born of women who were not Program participants during pregnancy but whose medical records document that they were at nutritional risk during pregnancy due to nutritional conditions detectable by biochemical or anthropometric measurements or other documented nutritionally related medical conditions which demonstrated the person's need for supplemental foods.\n\n(iii)  Priority III.  Children at nutritional risk as demonstrated by hematological or anthropometric measurements or other documented medical conditions which demonstrate the child's need for supplemental foods.\n\n(iv)  Priority IV.  Pregnant women, breastfeeding women, and infants at nutritional risk because of an inadequate dietary pattern.\n\n(v)  Priority V.  Children at nutritional risk because of an inadequate dietary pattern.\n\n(vi)  Priority VI.  Postpartum women at nutritional risk.\n\n(vii)  Priority VII.  Individuals certified for WIC solely due to homelessness or migrancy and, at State agency option, in accordance with the provisions of paragraph (e)(1)(vi) of this section, previously certified participants who might regress in nutritional status without continued provision of supplemental foods.\n\n(f)  Processing standards.  The local agencies shall process applicants within the following timeframes:\n\n(1)  Waiting lists.  When the local agency is serving its maximum caseload, the local agency shall maintain a waiting list of individuals who visit the local agency to express interest in receiving Program benefits and who are likely to be served. However, in no case shall an applicant who requests placement on the waiting list be denied inclusion. State agencies may establish a policy which permits or requires local agencies to accept telephone requests for placement on the waiting list. The waiting list shall include the person's name, address or phone number, status (e.g., pregnant, breastfeeding, age of applicant), and the date he or she was placed on the waiting list. Individuals shall be notified of their placement on a waiting list within 20 days after they visit the local agency during clinic office hours to request Program benefits. For those State agencies establishing procedures to accept telephone requests for placement on a waiting list, individuals shall be notified of their placement on a waiting list within 20 days after contacting the local agency by phone. The competent professional authority shall apply the participant priority system as specified in paragraph (e)(4) of this section to the waiting list to ensure that the highest priority persons become Program participants first when caseload slots become available.\n\n(2)  Timeframes for processing applicants.  (i) When the local agency is not serving its maximum caseload, the local agency shall accept applications, make eligibility determinations, notify the applicants of the decisions made and, if the applicants are to be enrolled, issue food, cash-value vouchers or food instruments. All of these actions shall be accomplished within the timeframes set forth below.\n\n(ii) The processing timeframes shall begin when the individual visits the local agency during clinic office hours to make an oral or written request for Program benefits. To ensure that accurate records are kept of the date of such requests, the local agency shall, at the time of each request, record the applicant's name, address and the date. The remainder of the information necessary to determine eligibility shall be obtained by the time of certification. Medical data taken prior to certification may be used as provided in paragraph (g)(4) of this section.\n\n(iii) The local agency shall act on applications within the following timeframes:\n\n(A) Special nutritional risk applicants shall be notified of their eligibility or ineligibility within 10 days of the date of the first request for Program benefits; except that State agencies may provide an extension of the notification period to a maximum of 15 days for those local agencies which make written request, including a justification of the need for an extension. The State agency shall establish criteria for identifying categories of persons at special nutritional risk who require expedited services. At a minimum, however, these categories shall include pregnant women eligible as Priority I participants, and migrant farmworkers and their family members who soon plan to leave the jurisdiction of the local agency.\n\n(B) All other applicants shall be notified of their eligibility or ineligibility within 20 days of the date of the first request for Program benefits.\n\n(iv) Each local agency using a retail purchase system shall issue a food instrument(s) and if applicable cash-value voucher(s) to the participant at the same time as notification of certification. Such food instrument(s) and cash-value vouchers shall provide benefits for the current month or the remaining portion thereof and shall be redeemable immediately upon receipt by the participant. Local agencies may mail the initial food instrument(s) and if applicable cash-value vouchers with the notification of certification to those participants who meet the criteria for the receipt of food instruments through the mail, as provided in \u00a7 246.12(r)(4).\n\n(v) Each local agency with a direct distribution or home delivery system shall issue the supplemental foods to the participant within 10 days of issuing the notification of certification.\n\n(g)  Certification periods.  (1) Program benefits will be based upon certifications established in accordance with the following timeframes:\n\n(2) The State agency may authorize local agencies under its jurisdiction to establish shorter certification periods than outlined in paragraph (g)(1) of this section on a case-by-case basis. If the State agency exercises this option, it shall issue guidance for use by local agencies in establishing the shorter periods.\n\n(3) In cases where there is difficulty in appointment scheduling for persons referenced in paragraphs (g)(1) (iii), (iv) and (v) of this section, the certification period may be shortened or extended by a period not to exceed 30 days.\n\n(h)  Mandatory and optional mid-certification actions.  Mid-certification actions are either mandatory or optional as follows:\n\n(1)  Mandatory reassessment of income eligibility mid-certification.  (i) The local agency must reassess a participant's income eligibility during the current certification period if the local agency receives information indicating that the participant's household income has changed. However, such assessments are not required in cases where sufficient time does not exist to effect the change. Sufficient time means 90 days or less before the expiration of the certification period.\n\n(ii)  Mandatory disqualification mid-certification for income ineligibility.  The local agency must disqualify a participant and any other household members currently receiving WIC benefits who are determined ineligible based on the mid-certification income reassessment. However, adjunctively-eligible WIC participants (as defined in paragraphs (d)(2)(vi)(A) or (d)(2)(vi)(B) of this section) may not be disqualified from the WIC Program solely because they, or certain family members, no longer participate in one of the other specified programs. The State agency will ensure that such participants and other household members currently receiving WIC benefits are disqualified during a certification period only after their income eligibility has been reassessed based on the income screening procedures used for applicants who are not adjunctively eligible.\n\n(2)  Mandatory sanctions or other actions for participant violations.  The local agency must impose disqualifications, or take other actions in accordance with the procedures set forth in \u00a7 246.12(u), in response to participant violations including, but not limited to, the violations listed in the definition of  Participant violation  in \u00a7 246.2.\n\n(3)  Optional mid-certification actions.  A participant may be disqualified during a certification period for the following reasons:\n\n(i) A State agency may allow local agencies to disqualify a participant for failure to obtain food instruments, cash-value vouchers or supplemental foods for several consecutive months. As specified by the State agency, proof of such failure includes failure to pick up supplemental foods, cash-value vouchers or food instruments, nonreceipt of food instruments or cash-value vouchers (when mailed instruments or vouchers are returned), or failure to have an electronic benefit transfer card revalidated for purchase of supplemental foods; or\n\n(ii) If a State agency experiences funding shortages, it may be necessary to discontinue Program benefits to some certified participants. The State agency must explore alternatives (such as elimination of new certifications) before taking such action. In discontinuing benefits, the State agency will affect the least possible number of participants and those whose nutritional and health status would be least impaired by the action. When a State agency elects to discontinue benefits due to insufficient funds, it will not enroll new participants during that period. The State may discontinue benefits by:\n\n(A) Disqualifying a group of participants; and/or,\n\n(B) Withholding benefits from a group with the expectation of providing benefits again when funds are available.\n\n(i)  Certification forms.  All certification data for each person certified shall be recorded on a form (or forms) which are provided by the State agency. The information on the forms shall include\u2014\n\n(1) Name and address;\n\n(2) Date of initial visit to apply for participation;\n\n(3) An indication of whether the applicant was physically present at certification and, if not, the reason why an exception was granted or a copy of the document(s) in the file which explains the reason for the exception;\n\n(4) A description of the document(s) used to determine residency and identity or a copy of the document(s) used or the applicant's written statement when no documentation exists;\n\n(5) Information regarding income eligibility for the Program as specified in paragraph (d) of this section as follows:\n\n(i) A description of the document(s) used to determine income eligibility or a copy of the document(s) in the file;\n\n(ii) An indication that no documentation is available and the reason(s) why or a copy of the applicant's written statement explaining such circumstances; or\n\n(iii) An indication that the applicant has no income.\n\n(6) The date of certification and the date nutritional risk data were taken if different from the date of certification;\n\n(7) Height or length, weight, and hematological test results;\n\n(8) The specific nutritional risk conditions which established eligibility for the supplemental foods. Documentation should include health history when appropriate to the nutritional risk condition, with the applicant's or applicant's parent's or caretaker's consent;\n\n(9) The signature and title of the competent professional authority making the nutritional risk determination, and, if different, the signature and title of the administrative person responsible for determining income eligibility under the Program; and\n\n(10) A statement of the rights and obligations under the Program. The statement must contain a signature space, and must be read by or to the applicant, parent, or caretaker. It must contain the following language or alternate language as approved by FNS (see \u00a7 246.4(a)(11)(i)), and be signed by the applicant, parent, or caretaker after the statement is read:\n\nI have been advised of my rights and obligations under the Program. I certify that the information I have provided for my eligibility determination is correct, to the best of my knowledge. This certification form is being submitted in connection with the receipt of Federal assistance. Program officials may verify information on this form. I understand that intentionally making a false or misleading statement or intentionally misrepresenting, concealing, or withholding facts may result in paying the State agency, in cash, the value of the food benefits improperly issued to me and may subject me to civil or criminal prosecution under State and Federal law.\n\nI have been advised of my rights and obligations under the Program. I certify that the information I have provided for my eligibility determination is correct, to the best of my knowledge. This certification form is being submitted in connection with the receipt of Federal assistance. Program officials may verify information on this form. I understand that intentionally making a false or misleading statement or intentionally misrepresenting, concealing, or withholding facts may result in paying the State agency, in cash, the value of the food benefits improperly issued to me and may subject me to civil or criminal prosecution under State and Federal law.\n\n(11) If the State agency exercises the authority to use and disclose confidential applicant and participant information for non-WIC purposes pursuant to \u00a7 246.26(d)(2), a statement that:\n\n(i) Notifies applicants that the chief State health officer (or the governing authority, in the case of an Indian State agency) may authorize the use and disclosure of information about their participation in the WIC Program for non-WIC purposes;\n\n(ii) Must indicate that such information will be used by State and local WIC agencies and public organizations only in the administration of their programs that serve persons eligible for the WIC Program; and,\n\n(iii) Will be added to the statement required under paragraph (i)(10) of this section. This statement must also indicate that such information can be used by the recipient organizations only for the following:\n\n(A) To determine the eligibility of WIC applicants and participants for programs administered by such organizations;\n\n(B) To conduct outreach for such programs;\n\n(C) To enhance the health, education, or well-being of WIC applicants and participants currently enrolled in those programs;\n\n(D) To streamline administrative procedures in order to minimize burdens on participants and staff; and,\n\n(E) To assess and evaluate a State's health system in terms of responsiveness to participants' health care needs and health care outcomes.\n\n(j)  Notification of participant rights and responsibilities.  In order to inform applicants and participants or their parents or caretakers of Program rights and responsibilities, the following information shall be provided. Where a significant number or proportion of the population eligible to be served needs the information in a language other than English, reasonable steps shall be taken to provide the information in appropriate languages to such persons, considering the scope of the Program and the size and concentration of such population.\n\n(1) During the certification procedure, every Program applicant, parent or caretaker shall be informed of the illegality of dual participation.\n\n(2) At the time of certification, each Program participant, parent or caretaker must read, or have read to him or her, the statement provided in paragraph (i)(10) of this section (or an alternate statement as approved by FNS). In addition, the following sentences (or alternate sentences as approved by FNS) must be read:\n\n(i) \u201cStandards for eligibility and participation in the WIC Program are the same for everyone, regardless of race, color, national origin, age, handicap, or sex.\u201d\n\n(ii) \u201cYou may appeal any decision made by the local agency regarding your eligibility for the Program.\u201d\n\n(iii) \u201cThe local agency will make health services, nutrition education and breastfeeding support available to you, and you are encouraged to participate in these services.\u201d\n\n(3) If the State agency implements the policy of disqualifying a participant for not picking up supplemental foods, cash-value vouchers or food instruments in accordance with paragraph (h)(3)(i) of this section, it shall provide notice of this policy and of the importance of regularly picking up cash-value vouchers, food instruments or supplemental foods to each participant, parent or caretaker at the time of each certification.\n\n(4) At least during the initial certification visit, each participant, parent or caretaker shall receive an explanation of how the local food delivery system operates and shall be advised of the types of health services available, where they are located, how they may be obtained and why they may be useful.\n\n(5) Persons found ineligible for the Program during a certification visit shall be advised in writing of the ineligibility, of the reasons for the ineligibility, and of the right to a fair hearing. The reasons for ineligibility shall be properly documented and shall be retained on file at the local agency.\n\n(6) A person who is about to be suspended or disqualified from program participation at any time during the certification period shall be advised in writing not less than 15 days before the suspension or disqualification. Such notification shall include the reasons for this action, and the participant's right to a fair hearing. Further, such notification need not be provided to persons who will be disqualified for not picking up cash-value vouchers, supplemental foods or food instruments in accordance with paragraph (h)(3)(i) of this section.\n\n(7) When a State or local agency pursues collection of a claim pursuant to \u00a7 246.23(c) against an individual who has been improperly issued benefits, the person shall be advised in writing of the reason(s) for the claim, the value of the improperly issued benefits which must be repaid, and of the right to a fair hearing.\n\n(8) Each participant, parent or caretaker shall be notified not less than 15 days before the expiration of each certification period that certification for the Program is about to expire.\n\n(9) If a State agency must suspend or terminate benefits to any participant during the participant's certification period due to a shortage of funds for the Program, it shall issue a notice to such participant in advance, as stipulated in paragraph (j)(6) of this section.\n\n(10) During WIC certification, every Program applicant, parent, or caretaker shall be informed that selling or offering to sell WIC benefits, cash-value vouchers, paper food instruments, EBT cards, supplemental foods, or breast pumps in person, in print, or on-line is a participant violation.\n\n(k)  Transfer of certification.  (1) Each State agency shall ensure issuance of a Verification of Certification card to every participant who is a member of a family in which there is a migrant farmworker or any other participant who is likely to be relocating during the certification period. Certifying local agencies shall ensure that Verification of Certification cards are fully completed.\n\n(2) The State agency shall require the receiving local agency to accept Verification of Certification cards from participants, including participants who are migrant farmworkers or members of their families, who have been participating in the Program in another local agency within or outside of the jurisdiction of the State agency. A person with a valid Verification of Certification card shall not be denied participation in the receiving State because the person does not meet that State's particular eligibility criteria.\n\n(3) The Verification of Certification card is valid until the certification period expires, and shall be accepted as proof of eligibility for Program benefits. If the receiving local agency has waiting lists for participation, the transferring participant shall be placed on the list ahead of all waiting applicants.\n\n(4) The Verification of Certification card shall include the name of the participant, the date the certification was performed, the date income eligibility was last determined, the nutritional risk condition of the participant, the date the certification period expires, the signature and printed or typed name of the certifying local agency official, the name and address of the certifying local agency and an identification number or some other means of accountability. The Verification of Certification card shall be uniform throughout the jurisdiction of the State agency.\n\n(l)  Dual participation.  The State agency is responsible for the following:\n\n(1) In conjunction with WIC local agencies, the prevention and identification of dual participation within each local agency and between local agencies under the State agency's jurisdiction, including actions to identify suspected instances of dual participation at least semiannually. The State or local agency must take follow-up action within 120 days of detecting instances of suspected dual participation;\n\n(2) In areas where a local agency serves the same population as an Indian State agency or a CSFP agency, and in areas where geographical or other factors make it likely that participants travel regularly between contiguous local service areas located across State agency borders, entering into an agreement with the other agency for the detection and prevention of dual participation. The agreement must be made in writing and included in the State Plan;\n\n(3) Immediate termination from participation in one of the programs or clinics for participants found in violation due to dual participation; and\n\n(4) In cases of dual participation resulting from intentional misrepresentation, the collection of improperly issued benefits in accordance with \u00a7 246.23(c)(1) and disqualification from both programs in accordance with \u00a7 246.12(u)(2).\n\n(m)  Certification of persons in homeless facilities and institutions.  (1) Pregnant, breastfeeding, and postpartum women, infants or children who meet the requirements of paragraph (c) of this section, and who reside in a homeless facility, shall be considered eligible for the Program and shall be treated equally with all other eligible applicants at the local agency where they apply for WIC benefits, Provided that: the State or local agency has taken reasonable steps to:\n\n(i) Establish, to the extent practicable, that the homeless facility meets the following conditions with respect to resident WIC participants:\n\n(A) The homeless facility does not accrue financial or in-kind benefit from a person's participation in the Program, e.g., by reducing its expenditures for food service because its residents are receiving WIC foods;\n\n(B) Foods provided by the WIC Program are not subsumed into a communal food service, but are available exclusively to the WIC participant for whom they were issued;\n\n(C) The homeless facility places no constraints on the ability of the participant to partake of the supplemental foods, nutrition education and breastfeeding support available under the Program;\n\n(ii) Contact the homeless facility periodically to ensure continued compliance with these conditions; and\n\n(iii) Request the homeless facility to notify the State or local agency if it ceases to meet any of these conditions.\n\n(2) The State agency may authorize or require local agencies to make the Program available to applicants who meet the requirements of paragraph (c) of this section, but who reside in institutions which meet the conditions of paragraphs (n)(1)(i)(A)-(C) of this section with respect to resident WIC participants.\n\n(3) The State or local agency shall attempt to establish to the best of its ability,whether a homeless facility or institution complies with the conditions of paragraphs (n)(1)(i) (A)-(C) of this section with respect to WIC participants. If caseload slots are available, full certification periods shall be provided to the following:\n\n(i) Participants who are residents of a homeless facility or institution which has been found to be in compliance with the conditions of paragraph (n)(1)(i)(A)-(C) of this section;\n\n(ii) Participants who are residents of a homeless facility or institution whose compliance with the conditions of paragraphs (n)(1)(i)(A)-(C) of this section has not yet been established; and\n\n(iii) Participants for whom no other shelter alternative is available in the local agency's service delivery area.\n\n(4) If a homeless facility or institution has been determined to be noncompliant during the course of a participant's initial certification period, participants applying for continued benefits may be certified again, but the State agency shall discontinue issuance of WIC foods, except infant formula, to the participant in such accommodation until the accommodation's compliance is achieved or alternative shelter arrangements are made. If certified, such participants shall continue to be eligible to receive all other WIC benefits, such as nutrition education, including breastfeeding promotion and support, and health care referral services.\n\n(5) The State agency shall continue to the end of their certification periods the participation of residents of a homeless facility or institution which ceases to comply with the conditions of paragraphs (n)(1)(i)(A)-(C) of this section.\n\n(6) As soon as the State or local agency determines that a homeless facility/institution does not meet the conditions of paragraphs (n)(1)(i) (A)-(C) of this section, it shall refer all participants using such accommodation to any other accommodations in the area which meet these conditions.\n\n(n)  Drug and other harmful substance abuse screening.  When a State agency determines that screening is necessary to fulfill the referral requirements in this part, the State agency must require screening for the use of drugs and other harmful substances. When such screening is required, it shall:\n\n(1) Be limited to the extent the State agency deems necessary to fulfill the referral requirement of \u00a7 246.4(a)(8) of this part and the drug and other harmful substance abuse information requirement of \u00a7 246.11(a)(3) of this part; and\n\n(2) Be integrated into certification process as part of the medical or nutritional assessment.\n\n(o)  Are applicants required to be physically present at certification? \u2014(1)  In general.  The State or local agency must require all applicants to be physically present at each WIC certification.\n\n(2)  Exceptions \u2014(i)  Disabilities.  The State or local agency must grant an exception to applicants who are qualified individuals with disabilities and are unable to be physically present at the WIC clinic because of their disabilities or applicants whose parents or caretakers are individuals with disabilities that meet this standard. Examples of such situations include:\n\n(A) A medical condition that necessitates the use of medical equipment that is not easily transportable;\n\n(B) A medical condition that requires confinement to bed rest; and\n\n(C) A serious illness that may be exacerbated by coming in to the WIC clinic.\n\n(ii)  Receiving ongoing health care.  The State agency may exempt from the physical presence requirement, if being physically present would pose an unreasonable barrier, an infant or child who was present at his/her initial WIC certification and is receiving ongoing health care.\n\n(iii)  Working parents or caretakers.  The State agency may exempt from the physical presence requirement an infant or child who was present at his/her initial WIC certification  and  was present at a WIC certification or recertification determination within the 1-year period ending on the date of the most recent certification or recertification determination  and  is under the care of one or more working parents or one or more primary working caretakers whose working status presents a barrier to bringing the infant or child in to the WIC clinic.\n\n(iv)  Infants under 8 weeks of age.  The State agency may exempt from the physical presence requirement an infant under eight (8) weeks of age who cannot be present at certification for a reason determined appropriate by the local agency, and for whom all necessary certification information is provided.\n\n(p)  Certification of qualified aliens.  In those cases where a person sponsors a qualified alien, (as the term is defined in the Immigration and Nationality Laws (8 U.S.C.1101  et seq. )), i.e., signs an affidavit of support, the sponsor's income, including the income of the sponsor's spouse, shall not be counted in determining the income eligibility of the qualified alien except when the alien is a member of the sponsor's family or economic unit. Sponsors of qualified aliens are not required to reimburse the State or local agency or the Federal government for WIC Program benefits provided to sponsored aliens. Further, qualified aliens are eligible for the WIC Program without regard to the length of time in the qualifying status."], ["7:7:4.1.1.1.10.3.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "C", "Subpart C\u2014Participant Eligibility", "", "\u00a7 246.8 Nondiscrimination.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 73 FR 11312, Mar. 3, 2008]", "(a)  Civil rights requirements.  The State agency shall comply with the requirements of title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, Department of Agriculture regulations on nondiscrimination (7 CFR parts 15, 15a and 15b), and FNS instructions to ensure that no person shall, on the grounds of race, color, national origin, age, sex or handicap, be excluded from participation in, be denied benefits of, or be otherwise subjected to discrimination under the Program. Compliance with title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and regulations and instructions issued thereunder shall include, but not be limited to:\n\n(1) Notification to the public of the nondiscrimination policy and complaint rights of participants and potentially eligible persons;\n\n(2) Review and monitoring activity to ensure Program compliance with the nondiscrimination laws and regulations;\n\n(3) Collection and reporting of racial and ethnic participation data as required by title VI of the Civil Rights Act of 1964, which prohibits discrimination in federally assisted programs on the basis of race, color, or national origin; and\n\n(4) Establishment of grievance procedures for handling complaints based on sex and handicap.\n\n(b)  Complaints.  Persons seeking to file discrimination complaints should write to USDA, Director, Office of Adjudication and Compliance, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TTY). All complaints received by State or local agencies which allege discrimination based on race, color, national origin, or age shall be referred to the Secretary of Agriculture or Director, Office of Equal Opportunity. A State or local agency may process complaints which allege discrimination based on sex or handicap if grievance procedures are in place.\n\n(c)  Non-English materials.  Where a significant number or proportion of the population eligible to be served needs service or information in a language other than English in order effectively to be informed of or to participate in the Program, the State agency shall take reasonable steps considering the size and concentration of such population, to provide information in appropriate languages to such persons. This requirement applies with regard to required Program information except certification forms which are used only by local agency staff. The State agency shall also ensure that all rights and responsibilities listed on the certification form are read to these applicants in the appropriate language."], ["7:7:4.1.1.1.10.3.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "C", "Subpart C\u2014Participant Eligibility", "", "\u00a7 246.9 Fair hearing procedures for participants.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 52 FR 21236, June 4, 1987; 59 FR 11503, Mar. 11, 1994; 71 FR 56730, Sept. 27, 2006; 73 FR 11312, Mar. 3, 2008]", "(a)  Availability of hearings.  The State agency shall provide a hearing procedure through which any individual may appeal a State or local agency action which results in a claim against the individual for repayment of the cash value of improperly issued benefits or results in the individual's denial of participation or disqualification from the Program.\n\n(b)  Hearing system.  The State agency shall provide for either a hearing at the State level or a hearing at the local level which permits the individual to appeal a local agency decision to the State agency. The State agency may adopt local level hearings in some areas, such as those with large caseloads, and maintain only State level hearings in other areas.\n\n(c)  Notification of appeal rights.  At the time of a claim against an individual for improperly issued benefits or at the time of participation denial or of disqualification from the Program, the State or local agency shall inform each individual in writing of the right to a fair hearing, of the method by which a hearing may be requested, and that any positions or arguments on behalf of the individual may be presented personally or by a representative such as a relative, friend, legal counsel or other spokesperson. Such notification is not required at the expiration of a certification period.\n\n(d)  Request for hearing.  A request for a hearing is defined as any clear expression by the individual, the individual's parent, caretaker, or other representative, that he or she desires an opportunity to present his or her case to a higher authority. The State or local agency shall not limit or interfere with the individual's freedom to request a hearing.\n\n(e)  Time limit for request.  The State or local agency shall provide individuals a reasonable period of time to request fair hearings; provided that, such time limit is not less than 60 days from the date the agency mails or gives the applicant or participant the notice of adverse action.\n\n(f)  Denial or dismissal of request.  The State and local agencies shall not deny or dismiss a request for a hearing unless\u2014\n\n(1) The request is not received within the time limit set by the State agency in accordance with paragraph (e) of this section;\n\n(2) The request is withdrawn in writing by the appellant or a representative of the appellant;\n\n(3) The appellant or representative fails, without good cause, to appear at the scheduled hearing; or\n\n(4) The appellant has been denied participation by a previous hearing and cannot provide evidence that circumstances relevant to Program eligibility have changed in such a way as to justify a hearing.\n\n(g)  Continuation of benefits.  Participants who appeal the termination of benefits within the 15 days advance adverse action notice period provided by \u00a7 246.7(j)(6) must continue to receive Program benefits until the hearing official reaches a decision or the certification period expires, whichever occurs first. This does not apply to applicants denied benefits at initial certification, participants whose certification periods have expired, or participants who become categorically ineligible for benefits. Applicants who are denied benefits at initial certification, participants whose certification periods have expired, or participants who become categorically ineligible during a certification period may appeal the denial or termination within the timeframes set by the State agency in accordance with paragraph (e) of this section, but must not receive benefits while awaiting the hearing or its results.\n\n(h)  Rules of procedure.  State and local agencies shall process each request for a hearing under uniform rules of procedure and shall makes these rules of procedure available for public inspection and copying. At a minimum, such rules shall include: The time limits for requesting and conducting a hearing; all advance notice requirements; the rules of conduct at the hearing; and the rights and responsibilities of the appellant. The procedures shall not be unduly complex or legalistic.\n\n(i)  Hearing official.  Hearings shall be conducted by an impartial official who does not have any personal stake or involvement in the decision and who was not directly involved in the initial determination of the action being contested. The hearing official shall\u2014\n\n(1) Administer oaths or affirmations if required by the State;\n\n(2) Ensure that all relevant issues are considered;\n\n(3) Request, receive and make part of the hearing record all evidence determined necessary to decide the issues being raised;\n\n(4) Regulate the conduct and course of the hearing consistent with due process to ensure an orderly hearing;\n\n(5) Order, where relevant and necessary, an independent medical assessment or professional evaluation from a source mutually satisfactory to the appellant and the State agency; and\n\n(6) Render a hearing decision which will resolve the dispute.\n\n(j)  Conduct of the hearing.  The State or lcoal agency shall ensure that the hearing is accessible to the appellant and is held within three weeks from the date the State or local agency received the request for a hearing. The State or local agency shall provide the appellant with a minimum of 10 days advance written notice of the time and place of the hearing and shall enclose an explanation of the hearing procedure with the notice. The State or local agency shall also provide the appellant or representative an opportunity to\u2014\n\n(1) Examine, prior to and during the hearing, the documents and records presented to support the decision under appeal;\n\n(2) Be assisted or represented by an attorney or other persons;\n\n(3) Bring witnesses;\n\n(4) Advance arguments without undue interference;\n\n(5) Question or refute any testimony or evidence, including an opportunity to confront and cross-examine adverse witnesses; and\n\n(6) Submit evidence to establish all pertinent facts and circumstances in the case.\n\n(k)  Fair hearing decisions.  (1) Decisions of the hearing official shall be based upon the application of appropriate Federal law, regulations and policy as related to the facts of the case as established in the hearing record. The verbatim transcript or recording of testimony and exhibits, or an official report containing the substance of what transpired at the hearing, together with all papers and requests filed in the proceeding, constitute the exclusive record for a final decision by hearing official. The State or local agency shall retain the hearing record in accordance with \u00a7 246.25 and make these records available, for copying and inspection, to the appellant or representative at any reasonable time.\n\n(2) The decision by the hearing official shall summarize the facts of the case, specify the reasons for the decision, and identify the supporting evidence and the pertinent regulations or policy. The decision shall become a part of the record.\n\n(3) Within 45 days of the receipt of the request for the hearing, the State or local agency shall notify the appellant or representative in writing of the decision and the reasons for the decision in accordance with paragraph (k)(2) of this section. If the decision is in favor of the appellant and benefits were denied or discontinued, benefits shall begin immediately. If the decision concerns disqualification and is in favor of the agency, as soon as administratively feasible, the local agency shall terminate any continued benefits, as decided by the hearing official. If the decision regarding repayment of benefits by the appellant is in favor of the agency, the State or local agency shall resume its efforts to collect the claim, even during pendency of an appeal of a local-level fair hearing decision to the State agency. The appellant may appeal a local hearing decision to the State agency, provided that the request for appeal is made within 15 days of the mailing date of the hearing decision notice. If the decision being appealed concerns disqualification from the Program, the appellant shall not continue to receive benefits while an appeal to the State agency of a decision rendered on appeal at the local level is pending. The decision of a hearing official at the local level is binding on the local agency and the State agency unless it is appealed to the State level and overturned by the State hearing official.\n\n(4) The State and local agency shall make all hearing records and decisions available for public inspection and copying; however, the names and addresses of participants and other members of the public shall be kept confidential.\n\n(l)  Judicial review.  If a State level decision upholds the agency action and the appellant expresses an interest in pursuing a higher review of the decision, the State agency shall explain any further State level review of the decision and any State level rehearing process. If these are either unavailable or have been exhausted, the State agency shall explain the right to pursue judicial review of the decision."], ["7:7:4.1.1.1.10.4.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "D", "Subpart D\u2014Participant Benefits", "", "\u00a7 246.10 Supplemental foods.", "FNS", "", "", "[89 FR 28518, Apr. 18, 2024]", "(a)  General.  This section prescribes the requirements for providing supplemental foods to participants. The State agency must ensure that local agencies comply with this section.\n\n(b)  State agency responsibilities.  (1) State agencies may:\n\n(i) Establish criteria in addition to the minimum Federal requirements in table 4 to paragraph (e)(12) of this section for the supplemental foods in their States, except that the State agency may not selectively choose which eligible fruits and vegetables are available to participants. These State agency criteria could address, but not be limited to, other nutritional standards, competitive cost, State-wide availability, and participant appeal. For eligible fruits and vegetables, State agencies may restrict packaging,  e.g.,  plastic containers, and package sizes such as single serving of processed fruits and vegetables available for purchase with the cash-value voucher. In addition, State agencies may identify certain processed WIC-eligible fruits and vegetables on food lists where the potential exists for vendor or participant confusion in determining authorized WIC-eligible items.\n\n(ii) Make food package adjustments to better accommodate participants who are homeless. At the State agency's option, these adjustments would include, but not be limited to, issuing authorized supplemental foods in individual serving-size containers to accommodate lack of food storage or preparation facilities.\n\n(iii) Authorize package sizes, in addition to those authorized to fulfill paragraph (b)(2)(i) of this section, that increase participant variety and choice, except WIC formula, which must be authorized in sizes that correspond with the maximum monthly allowances per paragraphs (e)(9) and (11) of this section.\n\n(2) State agencies must:\n\n(i) Identify the brands of foods and package sizes that are acceptable for use in the Program in their States in accordance with the requirements of this section; all State agencies must authorize at least one package size (or combination of package sizes) that equal or add up to the maximum monthly allowances of all authorized supplemental foods in each of the food packages. State agencies must also provide to local agencies, and include in the State Plan, a list of acceptable foods and their maximum monthly allowances as specified in tables 1 through 4 to paragraphs (e)(9) through (12) of this section; and\n\n(ii) Ensure that local agencies:\n\n(A) Make available to participants the maximum monthly allowances of authorized supplemental foods, except as noted in paragraph (c) of this section, inform participants about the maximum monthly allowances of authorized supplemental foods to which they are entitled as a Program participant and any food substitution options as specified in tables 1 through 3 to paragraphs (e)(9) through (11) of this section that the State agency authorizes, and abide by the authorized substitution rates for WIC food substitutions as specified in tables 1 through 3 to paragraphs (e)(9) through (11);\n\n(B) Make available to participants more than one food from each WIC food category except for the categories of peanut butter and eggs, and any of the WIC-eligible fruits and vegetables (fresh or processed) in each authorized food package as listed in paragraph (e) of this section;\n\n(C) Authorize only a competent professional authority to prescribe the categories of authorized supplemental foods in quantities that do not exceed the regulatory maximum and are appropriate for the participant, taking into consideration the participant's nutritional and breastfeeding needs; and\n\n(D) Advise participants or their caretaker, when appropriate, that the supplemental foods issued are only for their personal use. However, the supplemental foods are not authorized for participant use while hospitalized on an in-patient basis. In addition, consistent with \u00a7 246.7(m)(1)(i)(B), supplemental foods are not authorized for use in the preparation of meals served in a communal food service. This restriction does not preclude the provision or use of supplemental foods for individual participants in a nonresidential setting ( e.g.,  child care facility, family day care home, school, or other educational program); a homeless facility that meets the requirements of \u00a7 246.7(m)(1); or, at the State agency's discretion, a residential institution ( e.g.,  home for pregnant teens, prison, or residential drug treatment center) that meets the requirements currently set forth in \u00a7 246.7(m)(1) and (2).\n\n(c)  Nutrition tailoring.  Nutrition tailoring is the process of modifying an individual food package to better meet the supplemental nutritional needs of each participant. It entails making substitutions, reductions, and/or eliminations to food types and physical food forms in accordance with paragraphs (e)(9) through (11) of this section to accommodate special dietary needs, cultural practices, and/or personal preference. The full maximum monthly allowances of all supplemental foods in all food packages must be made available to participants unless medically or nutritionally warranted. Reductions in these amounts cannot be made for cost-savings, administrative convenience, caseload management, or to control vendor abuse. Reductions in these amounts or eliminations of foods cannot be made for categories, groups, or subgroups of WIC participants and may be done only after a nutrition assessment and offering substitution options available in the State in accordance with paragraphs (e)(9) through (11) and State agency policy. The provision of less than the maximum monthly allowances of supplemental foods to an individual WIC participant in all food packages is appropriate only when:\n\n(1) Medically or nutritionally warranted ( e.g.,  to eliminate a food due to a food allergy);\n\n(2) A participant refuses or cannot use the maximum monthly allowances, or chooses to take less than the maximum monthly allowance; or\n\n(3) The quantities necessary to supplement another program's contribution to fill a medical prescription would be less than the maximum monthly allowances.\n\n(d)  Medical documentation \u2014(1)  Supplemental foods requiring medical documentation.  Medical documentation is required for the issuance of the following supplemental foods:\n\n(i) Any non-contract brand infant formula;\n\n(ii) Any infant formula prescribed to an infant, child, or adult who receives Food Package III (see paragraph (e)(3) of this section);\n\n(iii) Any exempt infant formula;\n\n(iv) Any WIC-eligible nutritional;\n\n(v) Any authorized supplemental food issued to participants who receive Food Package III; and\n\n(vi) Any contract brand infant formula that does not meet the requirements in table 4 to paragraph (e)(12) of this section.\n\n(2)  Medical documentation for other supplemental foods.  (i) State agencies may authorize local agencies to issue a non-contract brand infant formula that meets the requirements in table 4 to paragraph (e)(12) of this section without medical documentation in order to meet religious eating patterns; and\n\n(ii) The State agency has the discretion to require medical documentation for any contract brand infant formula other than the primary contract infant formula and may decide that some contract brand infant formula may not be issued under any circumstances.\n\n(3)  Medical determination.  For purposes of this paragraph (d), medical documentation means that a health care professional licensed to write medical prescriptions under State law has:\n\n(i) Made a medical determination that the participant has a qualifying condition as described in paragraphs (e)(1) through (7) of this section that dictates the use of the supplemental foods, as described in paragraph (d)(1) of this section; and\n\n(ii) Provided the written documentation that meets the technical requirements described in paragraphs (d)(4)(ii) and (iii) of this section.\n\n(4)  Technical requirements \u2014(i)  Location.  All medical documentation must be kept on file (electronic or hard copy) at the local clinic. The medical documentation kept on file must include the initial telephone documentation, when received as described in paragraph (d)(4)(iii)(B) of this section.\n\n(ii)  Content.  All medical documentation must include the following:\n\n(A) The name of the authorized WIC formula (infant formula, exempt infant formula, WIC-eligible nutritional) prescribed, including amount needed per day;\n\n(B) The authorized supplemental food(s) appropriate for the qualifying condition(s) and their prescribed amounts;\n\n(C) Length of time the prescribed WIC formula and/or supplemental food is required by the participant;\n\n(D) The qualifying condition(s) for issuance of the authorized supplemental food(s) requiring medical documentation, as described in paragraphs (e)(1) through (7) of this section; and\n\n(E) Signature, date, and contact information (or name, date, and contact information), if the initial medical documentation was received by telephone and the signed document is forthcoming, of the health care professional licensed by the State to write prescriptions in accordance with State laws.\n\n(iii)  Written confirmation \u2014(A)  General.  Medical documentation must be written and may be provided as an original written document, an electronic document, or by facsimile or telephone to a competent professional authority until written confirmation is received.\n\n(B)  Medical documentation provided by telephone.  Medical documentation may be provided by telephone to a competent professional authority who must promptly document the information. The collection of the required information by telephone for medical documentation purposes may only be used until written confirmation is received from a health care professional licensed to write medical prescriptions and used only when absolutely necessary on an individual participant basis. The local clinic must obtain written confirmation of the medical documentation within a reasonable amount of time ( i.e.,  one- or two-weeks' time) after accepting the initial medical documentation by telephone.\n\n(5)  Medical supervision requirements.  Due to the nature of the health conditions of participants who are issued supplemental foods that require medical documentation, close medical supervision is essential for each participant's dietary management. The responsibility remains with the participant's health care provider for this medical oversight and instruction. This responsibility cannot be assumed by personnel at the WIC State or local agency. However, it would be the responsibility of the WIC competent professional authority to ensure that only the amounts of supplemental foods prescribed by the participant's health care provider are issued in the participant's food package.\n\n(e)  Food packages.  There are seven food packages available under the Program that may be provided to participants. The authorized supplemental foods must be prescribed from food packages according to the category and nutritional needs of the participants. Breastfeeding assessment and the mother's plans for breastfeeding serve as the basis for determining food package issuance for all breastfeeding women. The intent of the WIC Program is that all breastfeeding women be supported to exclusively breastfeed their infants and to choose the fully breastfeeding food package without infant formula. Breastfeeding mothers whose infants receive formula from WIC are to be supported to breastfeed to the maximum extent possible with minimal supplementation with infant formula. Formula amounts issued to a breastfed infant are to be tailored to meet but not exceed the infant's nutritional needs. The seven food packages are as follows:\n\n(1)  Food Package I\u2014Infants birth through 5 months \u2014(i)  Participant category served.  This food package is designed for issuance to infants from birth through age 5 months who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section). The following infant feeding variations are defined for the purposes of assigning food quantities and types in Food Packages I: Fully breastfeeding (the infant doesn't receive formula from the WIC Program); partially (mostly) breastfeeding (the infant is breastfed but also receives infant formula from WIC up to the maximum allowance described for partially (mostly) breastfed infants in table 1 to paragraph (e)(9) of this section; and fully formula fed (the infant is not breastfed or is breastfed minimally (the infant receives infant formula from WIC in quantities that exceed those allowed for partially (mostly) breastfed infants).\n\n(ii)  Infant feeding age categories \u2014 Birth through 5 months.  Three infant food packages are available from birth through 5 months\u2014fully breastfeeding, partially (mostly) breastfeeding, or fully formula-fed.\n\n(iii)  Infant formula requirements.  This food package provides iron-fortified infant formula that is not an exempt infant formula and that meets the requirements in table 4 to paragraph (e)(12) of this section. The issuance of any contract brand or noncontract brand infant formula that contains less than 10 milligrams of iron per liter (at least 1.5 milligrams iron per 100 kilocalories) at standard dilution is prohibited. Except as specified in paragraph (d) of this section, local agencies must issue as the first choice of issuance the primary contract infant formula, as defined in \u00a7 246.2, with all other infant formulas issued as an alternative to the primary contract infant formula. Noncontract brand infant formula and any contract brand infant formula that does not meet the requirements in table 4 to paragraph (e)(12) of this section may be issued in this food package only with medical documentation of the qualifying condition. A health care professional licensed by the State to write prescriptions must make a medical determination and provide medical documentation that indicates the need for the infant formula. For situations that do not require the use of an exempt infant formula, such determinations include, but are not limited to, documented formula intolerance, food allergy or inappropriate growth pattern. Medical documentation must meet the requirements described in paragraph (d) of this section.\n\n(iv)  Physical forms.  Local agencies must issue all WIC formulas (infant formula, exempt infant formula and WIC-eligible nutritionals) in concentrated liquid or powder physical forms. Ready-to-feed WIC formulas may be authorized when the competent professional authority determines and documents that:\n\n(A) The participant's household has an unsanitary or restricted water supply or poor refrigeration;\n\n(B) The person caring for the participant may have difficulty in correctly diluting concentrated or powder forms; or\n\n(C) The WIC infant formula is only available in ready-to-feed.\n\n(v)  Authorized category of supplemental foods.  Infant formula is the only category of supplemental foods authorized in this food package. Exempt infant formulas and WIC-eligible nutritionals are authorized only in Food Package III (see paragraph (e)(3) of this section). The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for infants in Food Packages I are stated in table 1 to paragraph (e)(9) of this section.\n\n(2)  Food Package II\u2014Infants 6 through 11 months \u2014(i)  Participant category served.  This food package is designed for issuance to infants from 6 through 11 months of age who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section).\n\n(ii)  Infant food packages.  Three food packages for infants 6 through 11 months are available\u2014fully breastfeeding, partially (mostly) breastfeeding, or fully formula fed.\n\n(iii)  Infant formula requirements.  The requirements for issuance of infant formula in Food Package I, specified in paragraphs (e)(1)(iii) and (iv) of this section, also apply to the issuance of infant formula in Food Package II.\n\n(iv)  Authorized categories of supplemental foods.  Infant formula, infant cereal, and infant foods are the categories of supplemental foods authorized in this food package. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for infants in Food Packages II are stated in table 1 to paragraph (e)(9) of this section.\n\n(3)  Food Package III\u2014Participants with qualifying conditions \u2014(i)  Participant category served and qualifying conditions.  This food package is reserved for issuance to women, infants, and children who have a documented qualifying condition that requires the use of a WIC formula (infant formula, exempt infant formula, or WIC-eligible nutritional) because the use of conventional foods is precluded, restricted, or inadequate to address their special nutritional needs. Medical documentation must meet the requirements described in paragraph (d) of this section. Participants who are eligible to receive this food package must have one or more qualifying conditions, as determined by a health care professional licensed to write medical prescriptions under State law. The qualifying conditions include but are not limited to premature birth, low birth weight, failure to thrive, inborn errors of metabolism and metabolic disorders, gastrointestinal disorders, malabsorption syndromes, immune system disorders, severe food allergies that require an elemental formula, and life threatening disorders, diseases and medical conditions that impair ingestion, digestion, absorption, or the utilization of nutrients that could adversely affect the participant's nutrition status. This food package may not be issued solely for the purpose of enhancing nutrient intake or managing body weight.\n\n(ii)  Non-authorized issuance of Food Package III.  This food package is not authorized for:\n\n(A) Infants whose only condition is:\n\n( 1 ) A diagnosed formula intolerance or food allergy to lactose, sucrose, milk protein, or soy protein that does not require the use of an exempt infant formula; or\n\n( 2 ) A non-specific formula or food intolerance;\n\n(B) Women and children who have a food intolerance to lactose or milk protein that can be successfully managed with the use of one of the other WIC food packages ( i.e.,  Food Packages IV through VII (see paragraph (e)(4) through (7) of this section); or\n\n(C) Any participant solely for the purpose of enhancing nutrient intake or managing body weight without an underlying qualifying condition.\n\n(iii)  Restrictions on the issuance of WIC formulas in ready-to-feed (RTF) forms.  WIC State agencies must issue WIC formulas (infant formula, exempt infant formula, and WIC-eligible nutritionals) in concentrated liquid or powder physical forms unless the requirements for issuing RTF are met as described in paragraph (e)(1)(iv) of this section. In addition to those requirements, there are two additional conditions which may be used to issue RTF in Food Package III:\n\n(A) If a ready-to-feed form better accommodates the participant's condition; or\n\n(B) If it improves the participant's compliance in consuming the prescribed WIC formula.\n\n(iv)  Unauthorized WIC costs.  All apparatuses or devices ( e.g.,  enteral feeding tubes, bags, and pumps) designed to administer WIC formulas are not allowable WIC costs.\n\n(v)  Authorized categories of supplemental foods.  The supplemental foods authorized in this food package require medical documentation for issuance and include WIC formula (infant formula, exempt infant formula, and WIC-eligible nutritionals), infant cereal, infant foods, milk, eggs, canned fish, fresh and other State-authorized forms of fruits and vegetables, breakfast cereal, whole wheat/whole grain bread, juice, and legumes and/or peanut butter. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for infants in Food Package III are stated in table 1 to paragraph (e)(9) of this section. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for children and women in Food Package III are stated in table 3 to paragraph (e)(11) of this section.\n\n(vi)  Coordination with medical payors and other programs that provide or reimburse for formulas.  WIC State agencies must coordinate with other Federal, State, or local government agencies or with private agencies that operate programs that also provide or could reimburse for exempt infant formulas and WIC-eligible nutritionals benefits to mutual participants. At a minimum, a WIC State agency must coordinate with the State Medicaid Program for the provision of exempt infant formulas and WIC-eligible nutritionals that are authorized or could be authorized under the State Medicaid Program for reimbursement and that are prescribed for WIC participants who are also Medicaid recipients. The WIC State agency is responsible for providing up to the maximum amount of exempt infant formulas and WIC-eligible nutritionals under Food Package III in situations where reimbursement is not provided by another entity.\n\n(4)  Food Package IV-A and B\u2014Children 1 through 4 years \u2014(i)  Participant category served.  This food package is designed for issuance to children 1 through 4 years of age who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section) and is divided into: Food Package IV-A for children 1 to less than 2 years of age ( i.e.,  12 through 23 months) and Food Package IV-B for children 2 years through 4 years of age.\n\n(ii)  Authorized categories of supplemental foods.  Milk, breakfast cereal, juice, fresh and other State-authorized forms of fruits and vegetables, whole wheat/whole grain bread, eggs, legumes or peanut butter, and canned fish are the categories of supplemental foods authorized for both Food Package IV-A and IV-B. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for children in Food Packages IV-A and IV-B are stated in table 2 to paragraph (e)(10) of this section.\n\n(5)  Food Package V-A and B\u2014Pregnant and partially (mostly) breastfeeding women \u2014(i)  Participant categories served.  This food package is designed for issuance to three categories of women who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section) and is divided into: Food Package V-A for issuance to women with singleton pregnancies and Food Package V-B for issuance to women pregnant with two or more fetuses and, for up to 1 year postpartum, partially (mostly) breastfeeding women whose partially (mostly) breastfed infants receive formula from the WIC Program in amounts that do not exceed the maximum allowances described in table 1 to paragraph (e)(9) of this section. Women partially (mostly) breastfeeding more than one infant from the same pregnancy and pregnant women fully or partially breastfeeding singleton infants are eligible to receive Food Package VII as described in paragraph (e)(7) of this section.\n\n(ii)  Authorized categories of supplemental foods.  Milk, breakfast cereal, juice, fresh and other State-authorized forms of fruits and vegetables, whole wheat/whole grain bread, eggs, legumes and peanut butter, and canned fish are the categories of supplemental foods authorized in this food package. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for women in Food Packages V-A and V-B are stated in table 2 to paragraph (e)(10) of this section.\n\n(6)  Food Package VI\u2014Postpartum women \u2014(i)  Participant categories served.  This food package is designed for issuance to women up to 6 months postpartum who are not breastfeeding their infants, and to breastfeeding women up to 6 months postpartum whose participating infant receives more than the maximum amount of formula allowed for partially (mostly) breastfed infants as described in table 1 to paragraph (e)(9) of this section and who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section).\n\n(ii)  Authorized categories of supplemental foods.  Milk, breakfast cereal, juice, fresh and other State-authorized forms of fruits and vegetables, whole wheat/whole grain bread, eggs, legumes or peanut butter, and canned fish are the categories of supplemental foods authorized in this food package. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for women in Food Package VI are stated in table 2 to paragraph (e)(10) of this section.\n\n(7)  Food Package VII\u2014Fully breastfeeding \u2014(i)  Participant categories served.  This food package is designed for issuance to breastfeeding women up to 1 year postpartum whose infants do not receive infant formula from WIC (these breastfeeding women are assumed to be exclusively breastfeeding their infants) and who do not have a condition qualifying them to receive Food Package III (see paragraph (e)(3) of this section). This food package is also designed for issuance to women partially (mostly) breastfeeding multiple infants from the same pregnancy, and pregnant women who are also partially (mostly) breastfeeding singleton infants and who do not have a condition qualifying them to receive Food Package III. Women fully breastfeeding multiple infants from the same pregnancy receive 1.5 times the supplemental foods provided in Food Package VII.\n\n(ii)  Authorized categories of supplemental foods.  Milk, breakfast cereal, juice, fresh and other State-authorized forms of fruits and vegetables, whole wheat/whole grain bread, eggs, legumes and peanut butter, and canned fish are the categories of supplemental foods authorized in this food package. The maximum monthly allowances, allowed options, and substitution rates of supplemental foods for women in Food Package VII are stated in table 2 to paragraph (e)(10) of this section.\n\n(8)  Supplemental foods\u2014Maximum monthly allowances, options and substitution rates, and minimum requirements.  Tables 1 through 3 to paragraphs (e)(9) through (11) of this section specify the maximum monthly allowances of foods in WIC food packages and identify WIC food options and substitution rates. Table 4 to paragraph (e)(12) of this section describes the minimum requirements and specifications of supplemental foods in the WIC food packages.\n\n(9)  Full nutrition benefit and maximum monthly allowances supplemental foods for infants in Food Packages I, II, and III.  Full nutrition benefit and maximum monthly allowances, options, and substitution rates of supplemental foods for infants in Food Packages I, II, and III (see paragraph (e)(1), (2), and (3) of this section) are stated in table 1 to this paragraph (e)(9) as follows:\n\nTable 1 to Paragraph  (e)(9) \u2014Food Packages I, II, and III: Full Nutrition Benefit (FNB) and Maximum Monthly Allowances (MMA) of Supplemental Foods for Infants by Feeding Option and Food Package Timeframe\n\nNotes:  Abbreviations in order of appearance in table: FF = fully formula fed; BF/FF = partially (mostly) breastfed; BF = fully breastfed; RTF = ready-to-feed; N/A = Not applicable (the supplemental food is not authorized in the corresponding food package.\n\n1  Table 4 to paragraph (e)(12) of this section describes the minimum requirements and specifications for supplemental foods. The competent professional authority (CPA) is authorized to determine nutritional risk and prescribe supplemental foods in Food Packages I, II, and III (see paragraphs (e)(1), (2), and (3) of this section) (per medical documentation), as established by State agency policy. Food Package III is issued to participants with qualifying medical conditions. A WIC formula is issued to participants receiving Food Package III under the direction of a health care provider.\n\n2  Amounts represent the FNB defined as the minimum amount of reconstituted fluid ounces of liquid concentrate infant formula as specified for each infant food package category and feeding variation. The FNB is based on a 13-ounce can that formed the basis of substitution rates for other physical forms of infant formula ( i.e.,  powder and RTF infant formula).\n\n3  Following a WIC nutrition and breastfeeding assessment of the needs of the dyad, breastfed infants, even those in the fully formula fed category, should be issued the quantity of formula needed to support any level of breastfeeding up to the FNB. This amount may be less than the FNB.\n\n4  WIC formula means infant formula, exempt infant formula, or WIC-eligible nutritionals. Infant formula may be issued for infants in Food Packages I, II and III. Medical documentation is required for issuance of WIC formula and other supplemental foods in Food Package III. Only infant formula may be issued for infants in Food Packages I and II.\n\n5  State agencies must issue whole containers that are all the same size of the same physical form.\n\n6  The MMA is specified in reconstituted fluid ounces for liquid concentrate, RTF liquid, and powder forms of infant formula and exempt infant formula. Reconstituted fluid ounce is the form prepared for consumption as directed on the container. Formula provided to infants in any form may not exceed the MMA.\n\n7  The FNB is intended to provide close to 100 percent of the nutritional needs of a non-breastfed infant from birth to 6 months. State agencies must provide at least the FNB authorized to non-breastfed infants up to the MMA for the physical form of the product specified for each food package category unless the food package is tailored to allow \u201cup to\u201d amounts to support breastfeeding.\n\n8  State agencies may round up to issue whole containers of infant formula over the food package timeframe. State agencies must use the methodology described in accordance with paragraph (h)(1) of this section.\n\n9  Per paragraph (b)(2)(ii)(A) of this section, State agencies must make the full MMA of all foods available to participants by providing at least one package size (or combination of sizes) that add up to the full MMA. However, per paragraph (b)(1)(iii) of this section, State agencies may authorize other package sizes (excluding WIC formula) to increase participant variety and choice.\n\n10  State agencies may round up to issue whole containers of infant foods (infant cereal, fruits and vegetables, and meat) over the food package timeframe. State agencies must use the methodology described in accordance with paragraph (h)(2) of this section.\n\n11  In lieu of infant foods (cereal, fruit, and vegetables), infants older than 6 months of age in Food Package III may receive WIC formula (infant formula, exempt infant formula, or WIC-eligible nutritionals) at the same MMA as infants ages 4 through 5 months of age of the same feeding option.\n\n12  At State agency option, infants 6 through 11 months in Food Packages II and III may receive a cash-value voucher (CVV) to purchase fruits and vegetables in lieu of the infant food fruits and vegetables. Fully breastfed infants, partially (mostly) breastfed infants, and fully formula fed infants may substitute half (64 oz.) or all (128 oz.) of jarred infant fruits and vegetables with a $10 or $20 CVV, respectively. The monthly value of the CVV substitution amounts for infant fruits and vegetables will be adjusted annually for inflation consistent with the annual inflation adjustments made to CVV values for women and children. State agencies must authorize fresh and one other form (frozen or canned). Dried fruits and vegetables are not authorized for infants. The CVV may be redeemed for any eligible fruit and vegetable (refer to table 4 of paragraph (e)(12) of this section and its footnotes).\n\n13  State agencies may not categorically issue a CVV for infants 6 through 11 months. The CVV is to be provided to the participant only after an individual nutrition assessment, as established by State agency policy. State agencies must ensure that appropriate nutrition education is provided to the caregiver addressing developmental readiness, safe food preparation, storage techniques, and feeding practices to make certain participants are meeting their nutritional needs in a safe and effective manner.\n\n(10)  Maximum monthly allowances of supplemental foods in Food Packages IV through VII.  The maximum monthly allowances, options, and substitution rates of supplemental foods for children and women in Food Packages IV through VII (see paragraphs (e)(4) through (7) of this section) are stated in table 2 to this paragraph (e)(10) as follows:\n\nTable 2 to Paragraph  (e)(10) \u2014Food Packages IV, V, VI, and VII: Maximum Monthly Allowances (MMA) of Supplemental Foods for Children and Women\n\nNote:  Abbreviations in order of appearance in table: N/A = Not applicable (the supplemental food is not authorized in the corresponding food package); CVV = cash-value voucher.\n\n1  Table 4 to paragraph (e)(12) of this section describes the minimum requirements and specifications for supplemental foods. Per paragraph (b)(2)(ii)(A) of this section, State agencies must make the full MMA of all foods available to participants by providing at least one package size (or combination of sizes) that add up to the full MMA. However, per paragraph (b)(1)(iii) of this section, State agencies may authorize other package sizes to increase participant variety and choice. The competent professional authority (CPA) is authorized to determine nutritional risk and prescribe supplemental foods as established by State agency policy.\n\n2  Food Package V-A (see paragraph (e)(5) of this section) is issued to women participants with singleton pregnancies. Food Package V-B (see paragraph (e)(5)) is issued to two categories of WIC participants: breastfeeding women whose partially (mostly) breastfed infants receive formula from WIC in amounts that do not exceed the maximum formula allowances, as appropriate for the age of the infant as described in table 1 to paragraph (e)(9) of this section, and women pregnant with two or more fetuses.\n\n3  Food Package VI is issued to two categories of WIC participants: non-breastfeeding postpartum women and breastfeeding postpartum women whose infants receive more than the maximum infant formula allowances from WIC for partially (mostly) breastfed infants, as appropriate for the age of the infant as described in table 1 to paragraph (e)(9) of this section.\n\n4  Food Package VII is issued to three categories of WIC participants: fully breastfeeding women whose infants do not receive formula from WIC; women partially (mostly) breastfeeding multiple infants from the same pregnancy; and pregnant women who are also fully or partially (mostly) breastfeeding singleton infants.\n\n5  Women fully breastfeeding multiple infants from the same pregnancy are prescribed 1.5 times the MMA.\n\n6  Combinations of single-strength and concentrated juices may be issued provided that the total volume does not exceed the MMA for single-strength juice.\n\n7  Children and women may choose to substitute a $3 CVV for the full juice amount (64 fluid ounces). The monthly value of the CVV substitution amount for juice will be adjusted annually for inflation consistent with the annual inflation adjustments made to CVV values for women and children. A partial CVV substitution for juice is not authorized. The CVV may be redeemed for any eligible fruit and vegetable (refer to table 4 of paragraph (e)(12) to this section and its footnotes).\n\n8  Regular and lactose-free milk must be authorized. \u201cRegular milk\u201d refers to milk that conforms to FDA standard of identity 21 CFR 131.110 and contains lactose exclusive of fat content ( e.g.,  low-fat milk). State agencies have the option to authorize plant-based milk alternatives, yogurts, and cheeses, described in table 4 to paragraph (e)(12) of this section and its footnotes, as milk substitution options when individually tailoring food packages.\n\n9  Whole milk is the standard milk for issuance to 1-year-old children (12 through 23 months). Whole fat or low-fat yogurts may be substituted for fluid milk for 1-year-old children, and both are standard issuance when substituting yogurt. Fat-reduced milks or nonfat yogurt may be issued to 1-year-old children for whom overweight or obesity is a concern. The need for fat-reduced milks or nonfat yogurt for 1-year-old children must be based on an individual nutritional assessment.\n\n10  Low-fat (1%) or nonfat milks are the standard milk for issuance to children \u226524 months of age and women. Reduced-fat (2%) milk is authorized only for participants with certain conditions, including but not limited to, underweight and maternal weight loss during pregnancy. The need for reduced-fat (2%) milk for children receiving Food Package IV-B and women must be based on an individual nutritional assessment.\n\n11  Evaporated milk may be substituted at the rate of 16 fluid ounces of evaporated milk per 32 fluid ounces of fluid milk ( i.e.,  1:2 fluid ounce substitution ratio). Dry milk may be substituted at an equal reconstituted rate to fluid milk.\n\n12  For children and women, 1 pound of cheese (dairy and/or plant-based) may be substituted for 3 quarts of milk; 1 quart of yogurt (dairy and/or plant-based) may be substituted for 1 quart of milk with a maximum of 2 quarts of yogurt that may be substituted for 2 quarts of milk. Women receiving Food Package VII may substitute up to of 2 pounds of cheese for 6 quarts of milk. For children and women in Food Packages IV through VI, no more than 1 pound of cheese may be substituted. State agencies do not have the option to issue additional amounts of cheese or yogurt beyond these maximums even with medical documentation.\n\n13  For children \u226524 months of age (Food Package IV-B) and women, low-fat or nonfat yogurts are the only types of yogurts authorized.\n\n14  When individually tailoring food packages for children, plant-based milk alternatives may be substituted for milk on a quart for quart basis up to the total MMA of milk; tofu may be substituted for milk for children at the rate of 1 pound of tofu per 1 quart of milk up to the MMA for milk.\n\n15  When individually tailoring food packages for women, plant-based milk alternatives may be substituted for milk on a quart for quart basis up to the total MMA of milk; tofu may be substituted for milk at the rate of 1 pound of tofu per 1 quart of milk up to the total MMA of milk.\n\n16  At least 75 percent of cereal on a State agency's authorized food list must meet whole grain criteria for breakfast cereal (refer to table 4 to paragraph (e)(12) of this section and its footnotes).\n\n17  State agencies must authorize substitution of dry legumes (1 pound), canned legumes (64 ounces), and peanut butter (18 ounces) for each 1 dozen eggs when individually tailoring food packages. At State agency option, State agencies may authorize tofu (1 pound) or nut and seed butters (18 ounces) to substitute for each 1 dozen eggs when individually tailoring food packages.\n\n18  State agencies must authorize fresh and one other form of processed ( i.e.,  canned (shelf-stable), frozen, and/or dried) fruits and vegetables. State agencies may choose to authorize additional or all processed forms of fruits and vegetables. The CVV may be redeemed for any eligible fruit and vegetable (refer to table 4 to paragraph (e)(12) of this section and its footnotes). Except as authorized in paragraph (b)(1)(i) of this section, State agencies may not selectively choose which fruits and vegetables are available to participants. For example, if a State agency chooses to offer dried fruits, it must authorize all WIC-eligible dried fruits.\n\n19  The monthly value of the fruit/vegetable CVV will be adjusted annually for inflation using fiscal year 2022 as the base year as described in \u00a7 246.16(j).\n\n20  Whole wheat or whole grain bread must be authorized. State agencies have the option to also authorize other whole grain options as described in table 4 to paragraph (e)(12) of this section and its footnotes.\n\n21  Issuance of smaller container sizes is encouraged to reduce the likelihood of exceeding a safe weekly consumption level of methylmercury. The U.S. Food and Drug Administration (FDA) and the U.S. Environmental Protection Agency (EPA) provide joint advice regarding fish consumption to limit methylmercury exposure for children. As noted in their 2021 joint advice, depending on body weight, some women and some children should choose fish lowest in methylmercury or eat less fish than the amounts in the 2020-2025 Dietary Guidelines for Americans (DGA) Healthy US-Style Dietary Pattern. More information is available on the FDA and EPA websites at  FDA.gov/fishadviceandEPA.gov/fishadvice.\n\n22  As noted in the 2021 FDA-EPA joint advice about eating fish, for some children, depending on age and caloric needs, the amounts of fish in the 2020-2025 DGA are higher than in the FDA-EPA advice. The DGA states that to consume these higher amounts, these children should consume only fish from the \u201cBest Choices\u201d list that are even lower in mercury\u2014among the WIC-eligible varieties, this includes Atlantic mackerel, salmon, and sardines.\n\n23  State agencies are required to offer both mature dry (1 pound) and canned (64 ounces) legumes. Food Packages V and VII must provide both legumes and peanut butter. However, when individually tailoring these food packages, State agencies may issue the following combinations: 1 pound dry and 64 oz. canned legumes (and no peanut butter); 2 pounds dry or 128 oz. canned legumes (and no peanut butter); or 36 oz. peanut butter (and no legumes). State agencies also have the option to authorize other nut and seed butters as a substitute for peanut butter (on a 1:1 ounce substitution ratio), as described in table 4 to paragraph (e)(12) of this section and its footnotes, when individually tailoring food packages.\n\n(11)  Maximum monthly allowances of supplemental foods for children and women with qualifying conditions in Food Package III.  The maximum monthly allowances, options, and substitution rates of supplemental foods for participants with qualifying conditions in Food Package III are stated in table 3 to this paragraph (e)(11) as follows:\n\nTable 3 to Paragraph ( e )(11)\u2014Food Package III: Maximum Monthly Allowances (MMA) of Supplemental Foods for Children and Women With Qualifying Conditions\n\nNote:  Abbreviations in order of appearance in table: N/A = Not applicable (the supplemental food is not authorized in the corresponding food package); CVV = cash-value voucher.\n\n1  Table 4 to paragraph (e)(12) of this section describes the minimum requirements and specifications for supplemental foods. Food Package III is issued to participants with qualifying medical conditions that require use of a WIC formula and supplementary foods under the direction of a health care provider. Per paragraph (b)(2)(ii)(A) of this section, State agencies must make the full MMA of all foods available to participants by providing at least one package size (or combination of sizes) that add up to the full MMA. However, per paragraph (b)(1)(iii) of this section, State agencies may authorize other package sizes (excluding WIC formula) to increase participant variety and choice. The competent professional authority (CPA) is authorized to determine nutritional risk and prescribe supplemental foods per medical documentation, as established by State agency policy.\n\n2  Food Package III-A for women is issued to participants with singleton pregnancies. Food Package III-B for women is issued to two categories of participants: women pregnant with two or more fetuses and breastfeeding women whose partially (mostly) breastfed infants receive formula from WIC in amounts that do not exceed the maximum formula allowances, as appropriate for the age of the infant as described in table 1 to paragraph (e)(9) of this section.\n\n3  This food package is issued to two categories of WIC participants: non-breastfeeding postpartum women and breastfeeding postpartum women whose infants receive more than the maximum infant formula allowances from WIC for partially (mostly) breastfed infants, as appropriate for the age of the infant as described in table 1 to paragraph (e)(9) of this section.\n\n4  This food package is issued to three categories of WIC participants: fully breastfeeding women whose infants do not receive formula from WIC; women partially (mostly) breastfeeding multiple infants from the same pregnancy; and pregnant women who are also fully or partially (mostly) breastfeeding singleton infants.\n\n5  Women fully breastfeeding multiple infants from the same pregnancy are prescribed 1.5 times the MMA.\n\n6  Combinations of single-strength and concentrated juices may be issued provided that the total volume does not exceed the MMA for single-strength juice.\n\n7  As determined appropriate by the health care provider per medical documentation, children and women may choose to substitute a $3 CVV for the full juice amount (64 fluid ounces)\u2014a partial CVV substitution for juice is not authorized\u2014or use their $3 CVV for jarred infant food fruits and vegetables. State agencies must use the conversion of $1 CVV = 6.25 ounces of jarred infant food fruits and vegetables. The monthly value of the CVV substitution amount for juice will be adjusted annually for inflation consistent with the inflation adjustments made to women and children's CVV values.\n\n8  WIC formula means infant formula, exempt infant formula, or WIC-eligible nutritionals. Participants may receive up to 455 fluid ounces of a WIC formula (liquid concentrate) as determined appropriate by the health care provider per medical documentation. The number of fluid ounces refers to the amount as prepared according to directions on the container.\n\n9  Powder and ready-to-feed may be substituted at rates that provide comparable nutritive value.\n\n10  Regular and lactose-free milk must be authorized. \u201cRegular milk\u201d refers to milk that conforms to FDA standard of identity 21 CFR 131.110 and contains lactose exclusive of fat content ( e.g.,  low-fat milk). State agencies have the option to authorize plant-based milk alternatives, yogurts, and cheeses, described in table 4 of paragraph (e)(12) of this section and its footnotes, as determined appropriate by the health care provider per medical documentation.\n\n11  Whole milk is the standard milk for issuance to 1-year-old children (12 through 23 months). Whole fat or low-fat yogurts may be substituted for fluid milk for 1-year-old children, and both are standard issuance when substituting yogurt. Fat-reduced milks or nonfat yogurt may be issued to 1-year-old children as determined appropriate by the health care provider per medical documentation.\n\n12  Low-fat (1%) or nonfat milks are the standard milk for issuance to children \u226524 months of age and women. Whole milk or reduced-fat (2%) milk may be substituted for low-fat (1%) or nonfat milk for children \u226524 months of age and women as determined appropriate by the health care provider per medical documentation.\n\n13  Evaporated milk may be substituted at the rate of 16 fluid ounces of evaporated milk per 32 fluid ounces of fluid milk (a 1:2 fluid ounce substitution ratio). Dry milk may be substituted at an equal reconstituted rate to fluid milk.\n\n14  For children and women, 1 pound of cheese (dairy- and/or plant-based) may be substituted for 3 quarts of milk and 1 quart of yogurt (dairy- and/or plant-based) may be substituted for 1 quart of milk as determined appropriate by the health care provider per medical documentation. A maximum of 2 quarts of yogurt that may be substituted for 2 quarts of milk for both children and women. Fully breastfeeding women may substitute up to 2 pounds of cheese for 6 quarts of milk. Children and pregnant, partially breastfeeding, and postpartum women may substitute no more than 1 pound of cheese. State agencies do not have the option to issue additional amounts of cheese or yogurt beyond these maximums even with medical documentation.\n\n15  For children \u226524 months of age and women, low-fat or nonfat yogurts are the only types of yogurts authorized. Whole or reduced-fat yogurt may be substituted for low-fat or nonfat yogurt for children \u226524 months of age and women as determined appropriate by the health care provider per medical documentation.\n\n16  For children, issuance of tofu and plant-based milk alternatives may be substituted for milk as determined appropriate by the health care provider per medical documentation. Plant-based milk alternatives may be substituted for milk for children on a quart for quart basis up to the total MMA of milk. Tofu may be substituted for milk for children at the rate of 1 pound of tofu per 1 quart of milk up to the MMA of milk, as determined appropriate by the health care provider per medical documentation.\n\n17  For women, plant-based milk alternatives may be substituted for milk on a quart for quart basis up to the total MMA of milk. Tofu may be substituted for milk at the rate of 1 pound of tofu per 1 quart of milk up to the MMA of milk, as determined appropriate by the health care provider per medical documentation.\n\n18  32 dry ounces of infant cereal may be substituted for 36 ounces of breakfast cereal as determined appropriate by the health care provider per medical documentation.\n\n19  At least 75 percent of cereals authorized on a State agency's authorized food list must meet whole grain criteria for breakfast cereal (refer to table 4 to paragraph (e)(12) of this section and its footnotes).\n\n20  State agencies must authorize substitution of dry legume (1 pound), canned legumes (64 ounces), and peanut butter (18 ounces) for each 1 dozen eggs and, at State agency option, State agencies may authorize tofu (1 pound) or nut and seed butters (18 ounces) to substitute for each 1 dozen eggs as determined appropriate by the health care provider per medical documentation.\n\n21  State agencies must authorize fresh and one other form ( i.e.,  canned (shelf-stable), frozen, and/or dried) of fruits and vegetables. State agencies may choose to authorize additional or all processed forms of fruits and vegetables. The CVV may be redeemed for any eligible fruit and vegetable (refer to table 4 to paragraph (e)(12) of this section and its footnotes). Except as authorized in paragraph (b)(1)(i) of this section, State agencies may not selectively choose which fruits and vegetables are available to participants. For example, if a State agency chooses to offer dried fruits, it must authorize all WIC-eligible dried fruits.\n\n22  Children and women whose special dietary needs require the use of pureed foods may receive commercial jarred infant food fruits and vegetables in lieu of the CVV. For children and women who require jarred infant food fruits and vegetables in place of the CVV, State agencies must use the conversion of $1 CVV = 6.25 ounces of jarred infant food fruits and vegetables. Infant food fruits and vegetables may be substituted for the CVV as determined appropriate by the health care provider per medical documentation.\n\n23  The monthly value of the fruit/vegetable CVV will be adjusted annually for inflation as described in \u00a7 246.16(j).\n\n24  Whole wheat or whole grain bread  must  be authorized. State agencies have the option to also authorize other whole grain options as described in table 4 to paragraph (e)(12) of this section and its footnotes.\n\n25  Issuance of smaller container sizes is encouraged to reduce the likelihood of exceeding a safe weekly consumption level of methylmercury. The U.S. Food and Drug Administration (FDA) and the U.S. Environmental Protection Agency (EPA) provide joint advice regarding fish consumption to limit methylmercury exposure for children. As noted in their 2021 joint advice, depending on body weight, some women and some children should choose fish lowest in methylmercury or eat less fish than the amounts in the 2020-2025 DGA Healthy US-Style Dietary Pattern. More information is available on the FDA and EPA websites at  FDA.gov/fishadviceandEPA.gov/fishadvice.\n\n26  As noted in the 2021 FDA-EPA joint advice about eating fish, for some children, depending on age and caloric needs, the amounts of fish in the 2020-2025 DGA are higher than in the FDA-EPA advice. The DGA states that to consume these higher amounts, these children should consume only fish from the \u201cBest Choices\u201d list that are even lower in mercury\u2014among the WIC-eligible varieties, these include Atlantic mackerel, salmon, and sardines.\n\n27  State agencies are required to offer both mature dry (1 pound) and canned (64 ounces) legumes. For food packages that provide both legumes and peanut butter, State agencies may issue the following combinations: 1 pound dry and 64 oz. canned legumes (and no peanut butter); 2 pounds dry or 128 oz. canned legumes (and no peanut butter); or 36 oz. peanut butter (and no legumes). State agencies have the option to authorize other nut and seed butters as a substitute for peanut butter (on a 1:1 ounce substitution ratio), as described in table 4 of paragraph (e)(12) of this section and its footnotes, as determined appropriate by the health care provider per medical documentation.\n\n(12)  Minimum requirements and specifications for supplemental foods.  Table 4 to this paragraph (e)(12) describes the minimum requirements and specifications for supplemental foods in all food packages:\n\nTable 4 to Paragraph  (e)(12) \u2014Minimum Requirements and Specifications for Supplemental Foods\n\nNote:  FDA = Food and Drug Administration of the U.S. Department of Health and Human Services. Foods must comply with labeling requirements consistent with 21 CFR parts 130 and 101.\n\n1  The following are not considered a WIC-eligible nutritional: Formulas used solely for the purpose of enhancing nutrient intake, managing body weight, or addressing picky eaters or used for a condition other than a qualifying condition ( e.g.,  vitamin pills, weight control products, etc.); medicines or drugs as defined by the Federal Food, Drug, and Cosmetic Act as amended; enzymes, herbs, or botanicals; oral rehydration fluids or electrolyte solutions; flavoring or thickening agents; and feeding utensils or devices ( e.g.,  feeding tubes, bags, pumps) designed to administer a WIC-eligible formula.\n\n2  All authorized milks must conform to FDA Standards of Identity for milks as defined by 21 CFR part 131 and meet WIC's requirements for vitamin fortification as specified in table 4 to paragraph (e)(12) of this section. Additional authorized milks include, but are not limited to calcium-fortified, lactose-reduced, organic, and UHT pasteurized milks. Other milks are permitted at the State agency's discretion provided that the State agency determines that the milk meets the minimum requirements for authorized milk.\n\n3  Processed refers to frozen, canned (see footnote 4 to this table 4), or dried.\n\n4  Canned refers to processed food items in cans or other shelf-stable containers,  e.g.,  jars, pouches.\n\n5  Fresh herbs, cut at the root or with the root intact, are authorized. The following are not authorized: spices and dried herbs; seeds; potted plants with vegetables, fruits or herbs; creamed vegetables or vegetables with added sauces; fresh fruits and/or vegetables packaged with dips, sauces, or glazes; mixed vegetables containing noodles, nuts, or sauce packets; vegetable-grain ( e.g.,  pasta, rice) mixtures; fruit-nut mixtures; breaded vegetables; fruits and vegetables for purchase on salad bars; peanuts or other nuts; ornamental and decorative fruits and vegetables such as chili peppers or garlic on a string, gourds, painted pumpkins, fruit baskets, and decorative blossoms and flowers; and foods containing fruits such as blueberry muffins and other baked goods. Home-canned and home-preserved fruits and vegetables are not authorized.\n\n6  Excludes catsup or other condiments; pickled vegetables; olives; soups; juices; and fruit leathers and fruit roll-ups. Canned tomato sauce, tomato paste, salsa, and spaghetti sauce without added sugar, fats, or oils are authorized.\n\n7  State agencies have the option to allow only lower sodium canned vegetables for purchase with the cash-value voucher.\n\n8  One of the following criteria must be met to confirm the product provides 50% or more whole grains: (1) product labeling contains the FDA health claim \u201cDiet rich in whole grain foods and other plant foods and low in total fat, saturated fat, and cholesterol may reduce the risk of heart disease and some cancers\u201d OR \u201cDiets rich in whole grain foods and other plant foods, and low in saturated fat and cholesterol, may help reduce the risk of heart disease\u201d; (2) meets the \u201crule of three\u201d criteria ( i.e.,  the first ingredient (or second after water) must be whole grain, and the next two grain ingredients (if any) must be whole grains, enriched grains, bran or germ; (3) the manufacturer provides written documentation that the product contains 50% or more whole grains by weight.\n\n9  King mackerel is not authorized.\n\n10  Mature dry beans, peas, or lentils in dry-packaged and canned forms are authorized under the mature legume category. Immature varieties of fresh or canned beans and frozen beans of any type (immature or mature) are authorized for purchase with the cash-value voucher only. Juices are provided as a separate WIC food category and are not authorized under the fruit and vegetable category.\n\n11  The following are not authorized in the mature legume category: soups; immature varieties of legumes, such as those used in canned green peas, green beans, snap beans, yellow beans, and wax beans; baked beans with meat, e.g., beans and franks; beans containing added sugars (except for baked beans), fats, oils, meats, fruits, or vegetables.\n\n12  Infant cereals containing infant formula, milk, fruit, or other non-cereal ingredients are not allowed.\n\n13  Mixtures with cereal or infant food desserts ( e.g.,  peach cobbler) are not authorized; however, combinations of single ingredients ( e.g.,  apple-banana) and combinations of single ingredients of fruits and/or vegetables ( e.g.,  apples and squash) are allowed.\n\n14  Combinations of single ingredients ( e.g.,  peas and carrots) and combinations of single ingredients of fruits and/or vegetables ( e.g.,  apples and squash) are allowed. Mixed vegetables with white potato as an ingredient ( e.g.,  mixed vegetables) are authorized.\n\n15  Infant food combinations ( e.g.,  meat and vegetables) and dinners ( e.g.,  spaghetti and meatballs) are not allowed.\n\n(f)  USDA purchase of commodity foods.  (1) At the request of a State agency, FNS may purchase commodity foods for the State agency using funds allocated to the State agency. The commodity foods purchased and made available to the State agency must be equivalent to the foods specified in table 4 to paragraph (e)(12) of this section.\n\n(2) The State agency must:\n\n(i) Distribute the commodity foods to its local agencies or participants; and\n\n(ii) Ensure satisfactory storage facilities and conditions for the commodity foods, including documentation of proper insurance.\n\n(g)  Infant formula manufacturer registration.  Infant formula manufacturers supplying formula to the WIC Program must be registered with the Secretary of Health and Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301  et seq. ). Such manufacturers wishing to bid for a State contract to supply infant formula to the Program must certify with the State health department that their formulas comply with the Federal Food, Drug, and Cosmetic Act and regulations in this chapter issued pursuant to the Act.\n\n(h)  Rounding up.  State agencies may round up to the next whole container for either infant formula or infant foods (infant cereal, fruits, vegetables, and meat). State agencies that use the rounding up option must calculate the amount of infant formula or infant foods provided according to the requirements and methodology as described in this section.\n\n(1)  Infant formula.  State agencies must use the maximum monthly allowance of reconstituted fluid ounces of liquid concentrate infant formula as specified in table 1 to paragraph (e)(9) of this section as the full nutritional benefit (FNB) provided by infant formula for each food package category and infant feeding option ( e.g.,  Food Package IA fully formula fed, IA-FF (see paragraph (e)(1) of this section)).\n\n(i) For State agencies that use rounding up of infant formula, the FNB is determined over the timeframe (the number of months) that the participant receives the food package. In any given month of the timeframe, the monthly issuance of reconstituted fluid ounces of infant formula may exceed the maximum monthly allowance or fall below the FNB; however, the cumulative average over the timeframe may not fall below the FNB without individual tailoring to allow \u201cup to\u201d amounts to support breastfeeding. In addition, the State agency must:\n\n(A) Use the methodology described in paragraph (h)(1)(ii) of this section for calculating and dispersing the rounding up option;\n\n(B) Issue infant formula in whole containers that are all the same size; and\n\n(C) Disperse the number of whole containers as evenly as possible over the timeframe with the largest monthly issuances given in the beginning of the timeframe.\n\n(ii) The methodology to calculate rounding up and dispersing infant formula to the next whole container over the food package timeframe is as follows:\n\n(A) Multiply the FNB amount for the appropriate food package and feeding option (e.g., Food Package IA fully formula fed, IA-FF (see paragraph (e)(1) of this section)) by the timeframe the participant will receive the food package to determine the total amount of infant formula to be provided.\n\n(B) Divide the total amount of infant formula to be provided by the yield of the container (in reconstituted fluid ounces) issued by the State agency to determine the total number of containers to be issued during the timeframe that the food package is prescribed.\n\n(C) If the number of containers to be issued does not result in a whole number of containers, the State agency must round up to the next whole container in order to issue whole containers.\n\n(2)  Infant foods.  (i) State agencies may use the rounding up option to the next whole container of infant food (infant cereal, fruits, vegetables, and meat) when the maximum monthly allowance cannot be issued due to varying container sizes of authorized infant foods.\n\n(ii) State agencies that use the rounding up option for infant foods must:\n\n(A) Use the methodology described in paragraph (h)(2)(iii) of this section for calculating and dispersing the rounding up option;\n\n(B) Issue infant foods in whole containers; and\n\n(C) Disperse the number of whole containers as evenly as possible over the timeframe (the number of months the participant will receive the food package).\n\n(iii) The methodology to round up and disperse infant food is as follows:\n\n(A) Multiply the maximum monthly allowance for the infant food by the timeframe the participant will receive the food package to determine the total amount of food to be provided.\n\n(B) Divide the total amount of food provided by the container size issued by the State agency ( e.g.,  ounces) to determine the total number of food containers to be issued during the timeframe that the food package is prescribed.\n\n(C) If the number of containers to be issued does not result in a whole number of containers, the State agency must round up to the next whole container in order to issue whole containers.\n\n(i)  Plans for cultural substitutions.  (1) The State agency may submit to FNS a plan for substitution of food(s) acceptable for use in the Program in addition to the supplemental foods outlined in (see paragraph (e)(12) of this section) to allow for different cultural eating patterns. The plan shall provide the State agency's justification, including a specific explanation of the cultural eating pattern and other information necessary for FNS to evaluate the plan as specified in paragraph (i)(2) of this section.\n\n(2) FNS will evaluate a State agency's plan for substitution of foods for different cultural eating patterns based on the following criteria:\n\n(i) Any proposed substitute food must be nutritionally equivalent or superior to the food it is intended to replace.\n\n(ii) The proposed substitute food must be widely available to participants in the areas where the substitute is intended to be used.\n\n(iii) The cost of the substitute food must be assessed and comparable to the cost of the food it is intended to replace.\n\n(3) FNS will make a determination on the proposed plan based on the evaluation criteria specified in paragraph (i)(2) of this section, as appropriate. The State agency shall substitute foods only after receiving the written approval of FNS."], ["7:7:4.1.1.1.10.4.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "D", "Subpart D\u2014Participant Benefits", "", "\u00a7 246.11 Nutrition education.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985, as amended at 58 FR 11507, Feb. 26, 1993; 59 FR 11503, Mar. 11, 1994; 65 FR 53528, Sept. 5, 2000; 71 FR 56731, Sept. 27, 2006; 73 FR 11312, Mar. 3, 2008; 76 FR 59889, Sept. 28, 2011; 89 FR 28528, Apr. 18, 2024]", "(a)  General.  (1) Nutrition education including breastfeeding promotion and support shall be considered a benefit of the Program and shall be made available at no cost to the participant. Nutrition education including breastfeeding promotion and support, shall be designed to be easily understood by participants, and it shall bear a practical relationship to participant nutritional needs, household situations, and cultural preferences including information on how to select food for themselves and their families as well as the maximum monthly allowances of authorized supplemental foods to which they are entitled as a Program participant.\n\n(2) The State agency shall ensure that nutrition education, including breastfeeding promotion and support, as appropriate, is made available to all participants. Nutrition education may be provided through the local agencies directly, or through arrangements made with other agencies. At the time of certification, the local agency shall stress the positive, long-term benefits of nutrition education and encourage the participant to attend and participate in nutrition education activities. However, individual participants shall not be denied supplemental foods for failure to attend or participate in nutrition education activities.\n\n(3) As an integral part of nutrition education, the State agency shall ensure that local agencies provide drug and other harmful substance abuse information to all pregnant, postpartum, and breastfeeding women and to parents or caretakers of infants and children participating in the program. Drug and other harmful substance abuse information may also be provided to pregnant, postpartum, and breastfeeding women and to parents or caretakers of infants and children participating in local agency services other than the Program.\n\n(b)  Goals.  Nutrition education including breastfeeding promotion and support, shall be designed to achieve the following two broad goals:\n\n(1) Emphasize the relationship between nutrition, physical activity and health with special emphasis on the nutritional needs of pregnant, postpartum, and breastfeeding women, infants and children under five years of age, and raise awareness about the dangers of using drugs and other harmful substances during pregnancy and while breastfeeding.\n\n(2) Assist the individual who is at nutritional risk in improving health status and achieving a positive change in dietary and physical activity habits, and in the prevention of nutrition-related problems through optimal use of the supplemental foods and other nutritious foods. This is to be taught in the context of the ethnic, cultural and geographic preferences of the participants and with consideration for educational and environmental limitations experienced by the participants.\n\n(c)  State agency responsibilities.  The State agency shall perform the following activities in carrying out nutrition education responsibilities, including breastfeeding promotion and support,:\n\n(1) Develop and coordinate the nutrition education component of Program operations with consideration of local agency plans, needs and available nutrition education resources.\n\n(2) Provide in-service training and technical assistance for professional and para-professional personnel involved in providing nutrition education to participants at local agencies. The State agency shall also provide training on the promotion and management of breastfeeding to staff at local agencies who will provide information and assistance on this subject to participants.\n\n(3) Identify or develop resources and educational materials for use in local agencies, including breastfeeding promotion and instruction materials, taking reasonable steps to include materials in languages other than English in areas where a significant number or proportion of the population needs the information in a language other than English, considering the size and concentration of such population and, where possible, the reading level of participants.\n\n(4) Develop and implement procedures to ensure that nutrition education is offered to all adult participants and to parents and guardians of infant or child participants, as well as child participants, whenever possible.\n\n(5) Monitor local agency activities to ensure compliance with provisions set forth in paragraphs (c)(7), (d), and (e) of this section.\n\n(6) Establish standards for participant contacts that ensure adequate nutrition education in accordance with paragraph (e) of this section.\n\n(7) Establish standards for breastfeeding promotion and support which include, at a minimum, the following:\n\n(i) A policy that creates a positive clinic environment which endorses breastfeeding as the preferred method of infant feeding;\n\n(ii) A requirement that each local agency designate a staff person to coordinate breastfeeding promotion and support activities;\n\n(iii) A requirement that each local agency incorporate task-appropriate breastfeeding promotion and support training into orientation programs for new staff involved in direct contact with WIC clients; and\n\n(iv) A plan to ensure that women have access to breastfeeding promotion and support activities during the prenatal and postpartum periods.\n\n(8) Determine if local agencies or clinics can share nutrition educational materials with institutions participating in the Child and Adult Care Food Program established under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) at no cost to that program, if a written materials sharing agreement exists between the relevant agencies.\n\n(d)  Local agency responsibilities.  Local agencies shall perform the following activities in carrying out their nutrition education responsibilities, including breastfeeding promotion and support,:\n\n(1) Make nutrition education, including breastfeeding promotion and support, available or enter into an agreement with another agency to make nutrition education available to all adult participants, and to parents or caretakers of infant and child participants, and whenever possible and appropriate, to child participants. Nutrition education may be provided through the use of individual or group sessions. Educational materials designed for Program participants may be utilized to provide education to pregnant, postpartum, and breastfeeding women and to parents or caretakers of infants and children participating in local agency services other than the program.\n\n(2) Develop an annual local agency nutrition education plan, including breastfeeding promotion and support, consistent with the State agency's nutrition education component of Program operations and in accordance with this part and FNS guidelines. The local agency shall submit its nutrition education plan to the State agency by a date specified by the State agency.\n\n(e)  Participant contacts.  (1) The nutrition education including breastfeeding promotion and support, contacts shall be made available through individual or group sessions which are appropriate to the individual participant's nutritional needs. All pregnant participants shall be encouraged to breastfeed unless contraindicated for health reasons.\n\n(2) During each six-month certification period, at least two nutrition contacts shall be made available to all adult participants and the parents or caretakers of infant and child participants, and wherever possible, the child participants themselves.\n\n(3) Nutrition education contacts shall be made available at a quarterly rate to parents or caretakers of infant and child participants certified for a period in excess of six months. Nutrition education contacts shall be scheduled on a periodic basis by the local agency, but such contacts do not necessarily need to take place in each quarter of the certification period.\n\n(4) The local agency shall document in each participant's certification file that nutrition education has been given to the participant in accordance with State agency standards, except that the second or any subsequent nutrition education contact during a certification period that is provided to a participant in a group setting may be documented in a masterfile. Should a participant miss a nutrition education appointment, the local agency shall, for purposes of monitoring and further education efforts, document this fact in the participant's file, or, at the local agency's discretion, in the case of a second or subsequent missed contact where the nutrition education was offered in a group setting, document this fact in a master file.\n\n(5) An individual care plan shall be provided for a participant based on the need for such plan as determined by the competent professional authority, except that any participant, parent, or caretaker shall receive such plan upon request.\n\n(6) Contacts shall be designed to meet different cultural and language needs of Program participants."], ["7:7:4.1.1.1.10.5.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.12 Food delivery methods.", "FNS", "", "", "[65 FR 83278, Dec. 29, 2000, as amended at 70 FR 29579, May 24, 2005; 70 FR 71722, Nov. 29, 2005; 71 FR 56731, Sept. 27, 2006; 73 FR 68995, Dec. 6, 2007; 73 FR 11312, Mar. 3, 2008; 74 FR 555, Jan. 6, 2009; 74 FR 51758, Oct. 8, 2009; 75 FR 15603, Mar. 30, 2010; 76 FR 59889, Sept. 28, 2011; 79 FR 12299, Mar. 4, 2014; 81 FR 10449, Mar. 1, 2016; 81 FR 18447, Mar. 31, 2016; 81 FR 66494, Sept. 28, 2016; 89 FR 28528, Apr. 18, 2024]", "(a)  General.  This section sets forth design and operational requirements for food delivery systems. In recognition of emergent electronic benefit transfer (EBT) technology, FNS may, on a case-by-case basis, modify regulatory provisions to the extent FNS determines the particular EBT system provides adequate safeguards that serve the purpose of the provisions being modified. By October 1, 2020, each State agency shall implement EBT statewide, unless granted an exemption under paragraph (w)(2) of this section.\n\n(1)  Management.  The State agency is responsible for the fiscal management of, and accountability for, food delivery systems under its jurisdiction. The State agency may permit only authorized vendors, farmers and farmers' markets, home food delivery contractors, and direct distribution sites to accept food instruments and cash-value vouchers.\n\n(2)  Design.  The State agency must design all food delivery systems to be used by its local agencies.\n\n(3)  FNS oversight.  FNS may, for a stated cause and by written notice, require revision of a proposed or operating food delivery system and will allow a reasonable time for the State agency to effect such a revision.\n\n(4)  2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR part 400 and part 415.  All contracts or agreements entered into by the State or local agency for the management or operation of food delivery systems must conform to the requirements of 2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR part 400 and part 415.\n\n(b)  Uniform food delivery systems.  The State agency may operate up to four types of food delivery systems under its jurisdiction\u2014retail, home delivery, direct distribution, or EBT. Each system must be procedurally uniform throughout the jurisdiction of the State agency and must ensure adequate participant access to supplemental foods. When used, food instruments must be uniform within each type of system.\n\n(c)  No charge for authorized supplemental foods.  The State agency must ensure that participants receive their authorized supplemental foods free of charge.\n\n(d)  Compatibility of food delivery system.  The State agency must ensure that the food delivery system(s) selected is compatible with the delivery of health and nutrition education, and breastfeeding counseling services to participants.\n\n(e)  Retail food delivery systems: General.  Retail food delivery systems are systems in which participants, parents or caretakers of infant and child participants, and proxies obtain authorized supplemental foods by submitting a food instrument or cash-value voucher to an authorized vendor.\n\n(f)  Retail food delivery systems: Food instrument and cash-value voucher requirements \u2014(1)  General.  State agencies using retail food delivery systems must use food instruments and cash-value vouchers that comply with the requirements of paragraph (f)(2) of this section.\n\n(2)  Printed food instruments and cash-value vouchers.  Each printed food instrument and cash-value voucher must clearly bear on its face the following information:\n\n(i)  Authorized supplemental foods.  The supplemental foods authorized to be obtained with the food instrument or cash-value voucher;\n\n(ii)  First date of use.  The first date on which the food instrument or cash-value voucher may be used to obtain supplemental foods;\n\n(iii)  Last date of use.  The last date on which the food instrument or cash-value vouchers may be used to obtain authorized supplemental foods. This date must be a minimum of 30 days from the first date on which it may be used or in the month of February, 28 or 29 days, except for the participant's first month of issuance, when it may be the end of the month or cycle for which the food instrument or cash-value voucher is valid. Rather than entering a specific last date of use on each instrument or cash-value voucher, all instruments or cash-value vouchers may be printed with a notice that the participant must transact them within a specified number of days after the first date on which the food instrument or cash-value voucher may be used;\n\n(iv)  Redemption period.  The date by which the vendor must submit the food instrument or cash-value voucher for redemption. This date must be no more than 60 days from the first date on which the food instrument or cash-value voucher may be used. If the date is fewer than 60 days, then the State agency must ensure that the allotted time provides the vendor sufficient time to submit the food instrument or cash-value voucher for redemption without undue burden;\n\n(v)  Serial number.  A unique and sequential serial number;\n\n(vi)  Purchase price.  A space for the purchase price to be entered. At the discretion of the State agency, a maximum price may be printed on the food instrument that is higher than the expected purchase price of the authorized supplemental foods for which it will be used, but that is low enough to protect against potential loss of funds. When a maximum price is printed on the food instrument, the space for the purchase price must be clearly distinguishable from the maximum price. For example, the words \u201cpurchase price\u201d or \u201cactual amount of sale\u201d could be printed larger and in a different area of the food instrument than the maximum price; and\n\n(vii)  Signature space.  A space where participants, parents or caretakers of infant or child participants, or proxies must sign.\n\n(3)  Vendor identification.  The State agency must implement procedures to ensure each food instrument and cash-value voucher submitted for redemption can be identified by the vendor or farmer that submitted the food instrument or cash-value voucher. Each vendor operated by a single business entity must be identified separately. The State agency may identify vendors by requiring that all authorized vendors stamp their names and/or enter a vendor identification number on all food instruments or cash-value vouchers prior to submitting them for redemption.\n\n(4)  Split tender transactions.  The State agency must implement procedures that allow the participant, authorized representative or proxy to pay the difference when a fruit and vegetable purchase exceeds the value of the cash-value vouchers.\n\n(g)  Retail food delivery systems: Vendor authorization \u2014(1)  General.  The State agency must authorize an appropriate number and distribution of vendors in order to ensure the lowest practicable food prices consistent with adequate participant access to supplemental foods and to ensure effective State agency management, oversight, and review of its authorized vendors.\n\n(2)  Vendor limiting criteria.  The State agency may establish criteria to limit the number of stores it authorizes. The State agency must apply its limiting criteria consistently throughout its jurisdiction. Any vendor limiting criteria used by the State agency must be included in the State Plan in accordance with \u00a7 246.4(a)(14)(ii).\n\n(3)  Vendor selection criteria.  The State agency must develop and implement criteria to select stores for authorization. The State agency must apply its selection criteria consistently throughout its jurisdiction. The State agency may reassess any authorized vendor at any time during the vendor's agreement period using the vendor selection criteria in effect at the time of the reassessment and must terminate the agreements with those vendors that fail to meet them. The vendor selection criteria must include the following categories and requirements and must be included in the State Plan in accordance with \u00a7 246.4(a)(14)(ii).\n\n(i)  Minimum variety and quantity of supplemental foods.  The State agency must establish minimum requirements for the variety and quantity of supplemental foods that a vendor applicant must stock to be authorized. These requirements include that the vendor stock at least two different fruits, three different vegetables, and at least one whole grain cereal authorized by the State agency. The State agency may not authorize a vendor applicant unless it determines that the vendor applicant meets these minimums. The State agency may establish different minimums for different vendor peer groups. The State agency may not authorize a vendor applicant unless it determines that the vendor applicant obtains infant formula only from sources included on the State agency's list described in paragraph (g)(11) of this section.\n\n(ii)  Business integrity.  The State agency must consider the business integrity of a vendor applicant. In determining the business integrity of a vendor applicant, the State agency may rely solely on facts already known to it and representations made by the vendor applicant on its vendor application. The State agency is not required to establish a formal system of background checks for vendor applicants. Unless denying authorization of a vendor applicant would result in inadequate participant access, the State agency may not authorize a vendor applicant if during the last six years the vendor applicant or any of the vendor applicant's current owners, officers, or managers have been convicted of or had a civil judgment entered against them for any activity indicating a lack of business integrity. Activities indicating a lack of business integrity include fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, and obstruction of justice. The State agency may add other types of convictions or civil judgments to this list.\n\n(iii)  Current SNAP disqualification or civil money penalty for hardship.  Unless denying authorization of a vendor applicant would result in inadequate participant access, the State agency may not authorize a vendor applicant that is currently disqualified from SNAP or that has been assessed a SNAP civil money penalty for hardship and the disqualification period that would otherwise have been imposed has not expired.\n\n(iv)  Provision of incentive items.  The State agency may not authorize or continue the authorization of an above-50-percent vendor, or make payments to an above-50-percent vendor, which provides or indicates an intention to provide prohibited incentive items to customers. Evidence of such intent includes, but is not necessarily limited to, advertising the availability of prohibited incentive items.\n\n(A) The State agency may approve any of the following incentive items to be provided by above-50-percent vendors to customers, at the discretion of the State agency:\n\n( 1 ) Food, merchandise, or services obtained at no cost to the vendor, subject to documentation;\n\n( 2 ) Food, merchandise, or services of nominal value, i.e., having a per item cost of less than $2, subject to documentation;\n\n( 3 ) Food sales and specials which involve no cost or less than $2 in cost to the vendor for the food items involved, subject to documentation, and do not result in a charge to a WIC food instrument for foods in excess of the foods listed on the food instrument;\n\n( 4 ) Minimal customary courtesies of the retail food trade, such as helping the customer to obtain an item from a shelf or from behind a counter, bagging food for the customer, and assisting the customer with loading the food into a vehicle.\n\n(B) The following incentive items are prohibited for above-50-percent vendors to provide to customers:\n\n( 1 ) Services which result in a conflict of interest or the appearance of such conflict for the above-50-percent vendor, such as assistance with applying for WIC benefits;\n\n( 2 ) Lottery tickets provided to customers at no charge or below face value;\n\n( 3 ) Cash gifts in any amount for any reason;\n\n( 4 ) Anything made available in a public area as a complimentary gift which may be consumed or taken without charge;\n\n( 5 ) An allowable incentive item provided more than once per customer per shopping visit, regardless of the number of customers or food instruments involved, unless the incentive items had been obtained by the vendor at no cost or the total value of multiple incentive items provided during one shopping visit would not exceed the less-than-$2 nominal value limit;\n\n( 6 ) Food, merchandise or services of greater than nominal value provided to the customer;\n\n( 7 ) Food, merchandise sold to customers below cost, or services purchased by customers below fair market value;\n\n( 8 ) Any kind of incentive item which incurs a liability for the WIC Program;\n\n( 9 ) Any kind of incentive item which violates any Federal, State, or local law or regulations.\n\n(C) For-profit goods or services offered by the above-50-percent vendor to WIC participants at a fair market value based on comparable for-profit goods or services of other businesses are not incentive items subject to approval or prohibition, except that such goods or services must not constitute a conflict of interest or result in a liability for the WIC Program.\n\n(4)  Vendor selection criteria: competitive price.  The State agency must establish a vendor peer group system and distinct competitive price criteria and allowable reimbursement levels for each peer group. The State agency must use the competitive price criteria to evaluate the prices a vendor applicant charges for supplemental foods as compared to the prices charged by other vendor applicants and authorized vendors, and must authorize vendors selected from among those that offer the program the most competitive prices. The State agency must consider a vendor applicant's shelf prices or the prices it bids for supplemental foods, which may not exceed its shelf prices. In establishing competitive price criteria and allowable reimbursement levels, the State agency must consider participant access by geographic area. The State agency must inform all vendors of the criteria for peer groups, and must inform each individual vendor of its peer group assignment.\n\n(i)  Vendors that meet the above-50-percent criterion.  Vendors that derive more than 50 percent of their annual food sales revenue from WIC food instruments, and new vendor applicants expected to meet this criterion under guidelines approved by FNS, are defined as above-50-percent vendors. Each State agency annually must implement procedures approved by FNS to identify authorized vendors and vendor applicants as either above-50-percent vendors or regular vendors, in accordance with paragraphs (g)(4)(i)(E) and (g)(4)(i)(F) of this section. The State agency must receive FNS certification of its vendor cost containment system under section 246.12(g)(4)(vi) prior to authorizing any above-50-percent vendors. The State agency that chooses to authorize any above-50-percent vendors:\n\n(A) Must distinguish these vendors from other authorized vendors in its peer group system or its alternative cost containment system approved by FNS by establishing separate peer groups for above-50-percent vendors or by placing above-50-percent vendors in peer groups with other vendors and establishing distinct competitive price selection criteria and allowable reimbursement levels for the above-50-percent vendors;\n\n(B) Must reassess the status of new vendors within six months after authorization to determine whether or not the vendors are above-50-percent vendors, and must take necessary follow-up action, such as terminating vendor agreements or reassigning vendors to the appropriate peer group;\n\n(C) Must compare above-50-percent vendors' prices against the prices of vendors that do not meet the above-50-percent criterion in determining whether the above-50-percent vendors have competitive prices and in establishing allowable reimbursement levels for such vendors; and\n\n(D) Must ensure that the prices of above-50-percent vendors do not inflate the competitive price criteria and allowable reimbursement levels for the peer groups or result in higher total food costs if program participants transact their food instruments at above-50-percent vendors rather than at other vendors that do not meet the above-50-percent criterion. To comply with this requirement, the State agency must compare the average cost of each type of food instrument redeemed by above-50-percent vendors against the average cost of the same type of food instrument redeemed by regular vendors. The average cost per food instrument may be weighted to reflect the relative proportion of food instruments redeemed by each category of vendors in the peer group system. The State agency must compute statewide average costs per food instrument at least quarterly to monitor compliance with this requirement. If average payments per food instrument for above-50-percent vendors exceed average payments per food instrument to regular vendors, then the State agency must take necessary action to ensure compliance, such as adjusting payment levels. Where EBT systems are in use, it may be more appropriate to compare prices of individual WIC food items to ensure that average payments to above-50-percent vendors do not exceed average payments for the same food item to comparable vendors. If FNS determines that a State agency has failed to ensure that above-50-percent vendors do not result in higher costs to the program than if participants transact their food instruments at regular vendors, FNS will establish a claim against the State agency to recover excess food funds expended and will require remedial action. A State agency may exclude partially-redeemed food instruments from a quarterly cost neutrality assessment based on an empirical methodology approved by FNS. A State agency may not exclude food instruments from the quarterly cost neutrality assessment based on a rate of partially-redeemed food instruments.\n\n(E) Must determine whether vendor applicants are expected to be above-50-percent vendors. The State agency must ask vendor applicants whether they expect to derive more than 50 percent of their annual revenue from the sale of food items from transactions involving WIC food instruments. This question applies whether or not the State agency chooses to authorize above-50-percent vendors. A vendor who answers in the affirmative must be treated as an above-50-percent vendor. The State agency must further assess a vendor who answers in the negative, by first calculating WIC redemptions as a percent of total food sales in existing WIC-authorized stores owned by the vendor applicant. Second, the State agency must calculate or request from the vendor applicant the percentage of anticipated food sales by type of payment,  i.e. , cash, Supplemental Nutrition Assistance Program, WIC, and credit/debit card. Third, the State agency must review either the inventory invoices for food items, or the actual food items present at the preauthorization visit required by paragraph (g)(5) of this section, or both. Fourth, the State agency must determine whether WIC authorization is required in order for the store to open for business. If the vendor would be expected to be an above-50-percent vendor under any of these criteria, then the vendor must be treated as an above-50-percent vendor. State agencies may use additional data sources and methodologies, if approved by FNS.\n\n(F) Must determine whether a currently authorized vendor meets the above-50-percent criterion, based on the State agency's calculation of WIC redemptions as a percent of the vendor's total foods sales for the same period. If WIC redemptions are more than 50 percent of the total food sales, the vendor must be deemed to be an above-50-percent vendor. As an initial step in identifying above-50-percent vendors, the State agency may compare each vendor's WIC redemptions to Supplemental Nutrition Assistance Program redemptions for the same period. If more than one WIC State agency authorizes a particular vendor, then each State agency must obtain and add the WIC redemptions for each State agency that authorizes the vendor to derive the total WIC redemptions. If Supplemental Nutrition Assistance Program redemptions exceed WIC redemptions, no further assessment is required since the vendor would not be an above-50-percent vendor. For vendors whose WIC redemptions exceed their Supplemental Nutrition Assistance Program redemptions, or if this comparison of redemptions was not made, the State agency must obtain from these vendors a statement of the total amount of revenue derived from the sale of foods that could be purchased using Supplemental Nutrition Assistance Program benefits. The State agency must also obtain from these vendors documentation (such as tax documents or other verifiable documentation) to support the amount of food sales claimed by the vendor. After evaluating the documentation received from the vendor, the State agency must calculate WIC redemptions as a percent of total food sales and classify the vendor as meeting or not meeting the above-50- percent criterion. State agencies may use additional methods, if approved by FNS.\n\n(ii)  Implementing effective peer groups.  The State agency's methodology for establishing a vendor peer group system must include the following:\n\n(A) At least two criteria for establishing peer groups, one of which must be a measure of geography, such as metropolitan or other statistical areas that form distinct labor and products markets, unless the State agency receives FNS approval to use a single criterion;\n\n(B) Routine collection of vendor shelf prices at least every six months following authorization to monitor vendor compliance with paragraphs (g)(4)(i)(C), (g)(4)(ii)(C), and (g)(4)(iii) of this section and to ensure State agency policies and procedures dependent on shelf price data are efficient and effective. FNS may grant an exemption from this shelf price collection requirement if the State agency demonstrates to FNSs' satisfaction that an alternative methodology for monitoring vendor compliance with paragraphs (g)(4)(i)(C), (g)(4)(ii)(C), and (g)(4)(iii) of this section is efficient and effective and other State agency policies and procedures are not dependent on frequent collection of shelf price data. Such exemption would remain in effect until the State agency no longer meets the conditions on which the exemption was based, until FNS revokes the exemption, or for three years, whichever occurs first;\n\n(C) Assessment of the effectiveness of the peer groupings and competitive price criteria at least every three years and modification, as necessary, to enhance system performance. The State agency may change a vendor's peer group whenever the State agency determines that placement in an alternate peer group is warranted.\n\n(iii)  Subsequent price increases.  The State agency must establish procedures to ensure that a vendor selected for participation in the program does not, subsequent to selection, increase prices to levels that would make the vendor ineligible for authorization.\n\n(iv)  Exceptions to competitive price criteria.  The State agency may except from the competitive price criteria and allowable reimbursement levels pharmacy vendors that supply only exempt infant formula and/or WIC-eligible nutritionals, and non-profit vendors for which more than 50 percent of their annual revenue from food sales consists of revenue derived from WIC food instruments. A State agency that elects to exempt non-profit vendors from competitive price criteria and/or allowable reimbursements levels must notify FNS, in writing, at least 30 days prior to the effective date of the exemption. The State agency's notification must indicate the reason for the exemption, including whether the vendor is needed to ensure participant access, why other vendors that are subject to competitive price criteria and allowable reimbursement levels cannot provide the required supplemental foods, the benefits to the program of exempting the non-profit vendor from the competitive price criteria and/or allowable reimbursement levels, the criteria the State agency used to assess the competitiveness of the non-profit vendor's prices, and how the State agency will determine the reimbursement level for the non-profit vendor. This notification requirement does not apply to State agency contracts and agreements with non-profit health and/or human service agencies or organizations.\n\n(v)  Exemptions from the vendor peer group system requirement.  With prior written approval from FNS, a State agency may use a vendor cost containment approach other than a peer group system if it meets certain conditions. A State agency that obtains an exemption from the peer group requirement still must establish competitive pricing criteria for vendor selection and allowable reimbursement levels. An exemption from the peer group requirement would remain in effect until the State agency no longer meets the conditions on which the exemption was based, until FNS revokes the exemption, or for three years, whichever occurs first. During the period of the exemption, the State agency must provide annually to FNS documentation that it either authorizes no above-50-percent vendors, or that such vendors' redemptions continue to represent less than five percent of total WIC redemptions, depending on the terms of the exemption. The conditions for obtaining an exemption from the vendor peer group system are as follows:\n\n(A) The State agency chooses not to authorize any vendors that derive more than 50 percent of their revenue from food sales from WIC food instruments, and the State agency demonstrates to FNS that establishing a vendor peer group system would be inconsistent with efficient and effective operation of the program, or that its alternative cost containment system would be as effective as a peer group system; or\n\n(B) The State agency determines that food instruments redeemed by vendors that meet the above-50-percent criterion comprise less than five percent of the total WIC redemptions in the State in the fiscal year prior to a fiscal year in which the exemption is effective; and the State agency demonstrates to FNS that its alternative vendor cost containment system would be as effective as a vendor peer group system and would not result in higher costs if program participants redeem food instruments at vendors that meet the above-50-percent criterion rather than at vendors that do not meet this criterion.\n\n(vi)  Cost containment certification.  If a State agency elects to authorize any above-50-percent vendors, the State agency must submit information, in accordance with guidance provided by FNS, to demonstrate that its competitive price criteria and allowable reimbursement levels do not result in average payments per food instrument to these vendors that are higher than average payments per food instrument to comparable vendors that are not above-50-percent vendors. To calculate average payments per food instrument, the State agency must include either all food instruments redeemed by all authorized vendors or a representative sample of the redeemed food instruments. The State agency must add the redemption amounts for all redeemed food instruments of the same type and divide the sum by the number of food instruments of that type. If the State agency does not designate food instruments by type, it must calculate the average payment for each distinct combination of foods prescribed on the food instrument. The State agency may calculate average payments per food instrument type for groups of vendors that meet the above-50-percent criterion and comparable vendors, or the State agency may calculate average payments for each food instrument type for each vendor. State agencies with EBT systems must compare the average cost of each WIC food purchased by participants at above-50-percent vendors with the average cost of each food purchased from comparable vendors. If FNS determines, based on its review of the information provided by the State agency and any other relevant data, that the requirements in this paragraph have been met, FNS will certify that the State agency's competitive price criteria and allowable reimbursement levels established for above-50-percent vendors do not result in higher average payments per food instrument (or higher costs for each WIC food item in EBT systems). If the State agency's methodology for establishing competitive price criteria and allowable reimbursement levels fails to meet the requirement of this section regarding average food instrument payments to above-50-percent vendors, FNS will disapprove the State agency's request to authorize above-50-percent vendors. At least every three years following initial certification, the State agency must submit information which demonstrates that it continues to meet the requirements of this section relative to average payments to above-50-percent vendors. FNS may require annual updates of selected food instrument redemption data.\n\n(vii)  Limitation on private rights of action.  The competitive pricing provisions of this paragraph do not create a private right of action.\n\n(5)  On-site preauthorization visit.  The State agency must conduct an on-site visit prior to or at the time of a vendor's initial authorization.\n\n(6)  Sale of store to circumvent WIC sanction.  The State agency may not authorize a vendor applicant if the State agency determines the store has been sold by its previous owner in an attempt to circumvent a WIC sanction. The State agency may consider such factors as whether the store was sold to a relative by blood or marriage of the previous owner(s) or sold to any individual or organization for less than its fair market value.\n\n(7)  Impact on small businesses.  The State agency is encouraged to consider the impact of authorization decisions on small businesses.\n\n(8)  Application periods.  The State agency may limit the periods during which applications for vendor authorization will be accepted and processed, except that applications must be accepted and processed at least once every three years. The State agency must develop procedures for processing vendor applications outside of its timeframes when it determines there will be inadequate participant access unless additional vendors are authorized.\n\n(9)  Data collection at authorization.  At the time of application, the State agency must collect the vendor applicant's SNAP authorization number if the vendor applicant is authorized in that program. In addition, the State agency must collect the vendor applicant's current shelf prices for supplemental foods.\n\n(10)  List of infant formula wholesalers, distributors, and retailers licensed under State law or regulations, and infant formula manufacturers registered with the Food and Drug Administration (FDA).  The State agency must provide a list in writing or by other effective means to all authorized WIC retail vendors of the names and addresses of infant formula wholesalers, distributors, and retailers licensed in the State in accordance with State law (including regulations), and infant formula manufacturers registered with the Food and Drug Administration (FDA) that provide infant formula, on at least an annual basis.\n\n(i)  Notification to vendors.  The State agency is required to notify vendors that they must purchase infant formula only from a source included on the State agency's list, or from a source on another State agency's list if the vendor's State agency permits this, and must only provide such infant formula to participants in exchange for food instruments specifying infant formula. For the purposes of paragraph (g)(11) of this section, \u201cinfant formula\u201d means  Infant formula, Contract brand infant formula  and  Non-contract brand infant formula  as defined in \u00a7 246.2, and infant formula covered by a waiver granted under \u00a7 246.16a(e).\n\n(ii)  Type of license.  If more than one type of license applies, the State agency may choose which one to use.\n\n(iii)  Exclusions from list.  The State agency may not exclude a State-licensed entity from the list except when:\n\n(A) Specifically required or authorized by State law or regulations; or\n\n(B) The entity does not carry infant formula.\n\n(h)  Retail food delivery systems: Vendor agreements \u2014(1)  General \u2014(i)  Entering into agreements.  The State agency must enter into written agreements with all authorized vendors. The agreements must be for a period not to exceed three years. The agreement must be signed by a representative who has legal authority to obligate the vendor and a representative of the State agency. When the vendor representative is obligating more than one vendor, the agreement must specify all vendors covered by the agreement. When more than one vendor is specified in the agreement, the State agency may add or delete an individual vendor without affecting the remaining vendors. The State agency must require vendors to reapply at the expiration of their agreements and must provide vendors with not less than 15 days advance written notice of the expiration of their agreements.\n\n(ii)  Delegation to local agencies.  The State agency may delegate to its local agencies the authority to sign vendor agreements if the State agency indicates its intention to do so in its State Plan in accordance with \u00a7 246.4(a)(14)(iii). In such cases, the State agency must provide supervision and instruction to ensure the uniformity and quality of local agency activities.\n\n(2)  Standard vendor agreement.  The State agency must use a standard vendor agreement throughout its jurisdiction, although the State agency may make exceptions to meet unique circumstances provided that it documents the reasons for such exceptions.\n\n(3)  Vendor agreement provisions.  The vendor agreement must contain the following specifications, although the State agency may determine the exact wording to be used:\n\n(i)  Acceptance of food instruments and cash value vouchers.  The vendor may accept food instruments and cash-value vouchers only from participants, parents or caretakers of infant and child participants, or proxies.\n\n(ii)  No substitutions, cash, credit, refunds, or exchanges.  The vendor may provide only the authorized supplemental foods listed on the food instrument and cash-value voucher.\n\n(A) The vendor may not provide unauthorized food items, nonfood items, cash, or credit (including rain checks) in exchange for food instruments or cash-value vouchers. The vendor may not provide refunds or permit exchanges for authorized supplemental foods obtained with food instruments or cash-value vouchers, except for exchanges of an identical authorized supplemental food item when the original authorized supplemental food item is defective, spoiled, or has exceeded its \u201csell by,\u201d \u201cbest if used by,\u201d or other date limiting the sale or use of the food item. An identical authorized supplemental food item means the exact brand and size as the original authorized supplemental food item obtained and returned by the participant.\n\n(B) The vendor may provide only the authorized infant formula which the vendor has obtained from sources included on the list described in paragraph (g)(11) of this section to participants in exchange for food instruments specifying infant formula.\n\n(iii)  Treatment of participants, parents/caretakers, and proxies.  The vendor must offer program participants, parents or caretakers of infant of child participants, and proxies the same courtesies offered to other customers.\n\n(iv)  Time periods for transacting food instruments and cash-value vouchers.  The vendor may accept a food instrument or cash-value voucher only within the specified time period.\n\n(v)  Purchase price on food instruments and cash-value vouchers.  The vendor must ensure that the purchase price is entered on food instruments and cash-value vouchers in accordance with the procedures described in the vendor agreement. The State agency has the discretion to determine whether the vendor or the participant enters the purchase price. The purchase price must include only the authorized supplemental food items actually provided and must be entered on the food instrument or cash-value voucher before it is signed.\n\n(vi)  Signature on food instruments and cash-value vouchers.  For printed food instruments and cash-value vouchers, the vendor must ensure the participant, parent or caretaker of an infant or child participant, or proxy signs the food instrument or cash-value voucher in the presence of the cashier. In EBT systems, a Personal Identification Number (PIN) may be used in lieu of a signature.\n\n(vii)  Sales tax prohibition.  The vendor may not collect sales tax on authorized supplemental foods obtained with food instruments, or cash-value vouchers.\n\n(viii)  Food instrument and cash-value voucher redemption.  The vendor must submit food instruments and cash-value vouchers for redemption in accordance with the redemption procedures described in the vendor agreement. The vendor may redeem a food instrument or cash-value voucher only within the specified time period. As part of the redemption procedures, the State agency may make price adjustments to the purchase price on food instruments submitted by the vendor for redemption to ensure compliance with the price limitations applicable to the vendor. As part of the redemption procedures, the State agency must establish and apply limits on the amount of reimbursement allowed for food instruments based on a vendor's peer group and competitive price criteria. In setting allowable reimbursement levels, the State agency must consider participant access in a geographic area and may include a factor to reflect fluctuations in wholesale prices. In establishing allowable reimbursement levels for above-50-percent vendors the State agency must ensure that reimbursements do not result in higher food costs than if participants transacted their food instruments at vendors that are not above-50-percent vendors, or in higher average payments per food instrument to above-50-percent vendors than average payments to comparable vendors. The State agency may make price adjustments to the purchase price on food instruments submitted by the vendor for redemption to ensure compliance with the allowable reimbursement level applicable to the vendor. A vendor's failure to remain price competitive is cause for termination of the vendor agreement, even if actual payments to the vendor are within the maximum reimbursement amount. The State agency may exempt vendors that supply only exempt infant formula and/or WIC-eligible nutritionals and non-profit above-50-percent vendors from the allowable reimbursement limits.\n\n(ix)  Vendor claims.  When the State agency determines the vendor has committed a vendor violation that affects the payment to the vendor, the State agency will delay payment or establish a claim. The State agency may delay payment or establish a claim in the amount of the full purchase price of each food instrument or cash-value voucher that contained the vendor overcharge or other error. The State agency will provide the vendor with an opportunity to justify or correct a vendor overcharge or other error. The vendor must pay any claim assessed by the State agency. In collecting a claim, the State agency may offset the claim against current and subsequent amounts to be paid to the vendor. In addition to denying payment or assessing a claim, the State agency may sanction the vendor for vendor overcharges or other errors in accordance with the State agency's sanction schedule.\n\n(x)  No charge for authorized supplemental foods or restitution from participants.  The vendor may not charge participants, parents or caretakers of infant and child participants, or proxies for authorized supplemental foods obtained with food instruments or cash-value vouchers. In addition, the vendor may not seek restitution from these individuals for food instruments or cash-value vouchers not paid or partially paid by the State agency.\n\n(xi)  Split tender for cash-value vouchers.  The vendor must allow the participant, authorized representative or proxy to pay the difference when a fruit and vegetable purchase exceeds the value of the cash-value vouchers (also known as a split tender transaction).\n\n(xii)  Training.  At least one representative of the vendor must participate in training annually. Annual vendor training may be provided by the State agency in a variety of formats, including newsletters, videos, and interactive training. The State agency will have sole discretion to designate the date, time, and location of all interactive training, except that the State agency will provide the vendor with at least one alternative date on which to attend such training.\n\n(xiii)  Vendor training of staff.  The vendor must inform and train cashiers and other staff on program requirements.\n\n(xiv)  Accountability for owners, officers, managers, and employees.  The vendor is accountable for its owners, officers, managers, agents, and employees who commit vendor violations.\n\n(xv)  Monitoring.  The vendor may be monitored for compliance with program requirements.\n\n(xvi)  Recordkeeping.  The vendor must maintain inventory records used for Federal tax reporting purposes and other records the State agency may require for the period of time specified by the State agency in the vendor agreement. Upon request, the vendor must make available to representatives of the State agency, the Department, and the Comptroller General of the United States, at any reasonable time and place for inspection and audit, all food instruments and cash-value vouchers in the vendor's possession and all program-related records.\n\n(xvii)  Termination.  The State agency will immediately terminate the agreement if it determines that the vendor has provided false information in connection with its application for authorization. Either the State agency or the vendor may terminate the agreement for cause after providing advance written notice of a period of not less than 15 days to be specified by the State agency.\n\n(xviii)  Change in ownership or location or cessation of operations.  The vendor must provide the State agency advance written notification of any change in vendor ownership, store location, or cessation of operations. In such instances, the State agency will terminate the vendor agreement, except that the State agency may permit vendors to move short distances without terminating the agreement. The State agency has the discretion to determine the length of advance notice required for vendors reporting changes under this provision, whether a change in location qualifies as a short distance, and whether a change in business structure constitutes a change in ownership.\n\n(xix)  Sanctions.  In addition to claims collection, the vendor may be sanctioned for vendor violations in accordance with the State agency's sanction schedule. Sanctions may include administrative fines, disqualification, and civil money penalties in lieu of disqualification. The State agency must notify a vendor in writing when an investigation reveals an initial incidence of a violation for which a pattern of incidences must be established in order to impose a sanction, before another such incidence is documented, unless the State agency determines, in its discretion, on a case-by-case basis, that notifying the vendor would compromise an investigation.\n\n(xx)  Conflict of interest.  The State agency will terminate the agreement if the State agency identifies a conflict of interest, as defined by applicable State laws, regulations, and policies, between the vendor and the State agency or its local agencies.\n\n(xxi)  Criminal penalties.  A vendor who commits fraud or abuse in the Program is liable to prosecution under applicable Federal, State or local laws. Those who have willfully misapplied, stolen or fraudulently obtained program funds will be subject to a fine of not more than $25,000 or imprisonment for not more than five years or both, if the value of the funds is $100 or more. If the value is less than $100, the penalties are a fine of not more than $1,000 or imprisonment for not more than one year or both.\n\n(xxii)  Not a license/property interest.  The vendor agreement does not constitute a license or a property interest. If the vendor wishes to continue to be authorized beyond the period of its current agreement, the vendor must reapply for authorization. If a vendor is disqualified, the State agency will terminate the vendor's agreement, and the vendor will have to reapply in order to be authorized after the disqualification period is over. In all cases, the vendor's new application will be subject to the State agency's vendor selection criteria and any vendor limiting criteria in effect at the time of the reapplication.\n\n(xxiii)  Compliance with vendor agreement, statutes, regulations, policies, and procedures.  The vendor must comply with the vendor agreement and Federal and State statutes, regulations, policies, and procedures governing the Program, including any changes made during the agreement period.\n\n(xxiv)  Nondiscrimination regulations.  The vendor must comply with the nondiscrimination provisions of Departmental regulations (parts 15, 15a and 15b of this title).\n\n(xxv)  Compliance with vendor selection criteria.  The vendor must comply with the vendor selection criteria throughout the agreement period, including any changes to the criteria. Using the current vendor selection criteria, the State agency may reassess the vendor at any time during the agreement period. The State agency will terminate the vendor agreement if the vendor fails to meet the current vendor selection criteria.\n\n(xxvi)  Reciprocal SNAP disqualification for WIC Program disqualifications.  Disqualification from the WIC Program may result in disqualification as a retailer in SNAP. Such disqualification may not be subject to administrative or judicial review under SNAP.\n\n(xxvii)  EBT minimum lane coverage.  Point of Sale (POS) terminals used to support the WIC Program shall be deployed in accordance with the minimum lane coverage provisions of \u00a7 246.12(z)(2). The State agency may remove excess terminals if actual redemption activity warrants a reduction consistent with the redemption levels outlined in \u00a7 246.12(z)(2)(i) and (z)(2)(ii).\n\n(xxviii)  EBT third-party processing costs and fees.  The vendor shall not charge to the State agency any third-party commercial processing costs and fees incurred by the vendor from EBT multi-function equipment. Commercial transaction processing costs and fees imposed by a third-party processor that the vendor elects to use to connect to the EBT system of the State shall be borne by the vendor.\n\n(xxix)  EBT interchange fees.  The State agency shall not pay or reimburse the vendor for interchange fees related to WIC EBT transactions.\n\n(xxx)  EBT ongoing maintenance and operational costs.  The State agency shall not pay for ongoing maintenance, processing fees or operational costs for vendor systems and equipment used to support WIC EBT after the State agency has implemented WIC EBT statewide, unless the equipment is used solely for the WIC Program or the State agency determines the vendor using multi-function equipment is necessary for participant access. This provision also applies to authorized farmers and farmers' markets. Costs shared by a WIC State agency will be proportional to the usage for the WIC Program.\n\n(xxxi)  Compliance with EBT operating rules, standards and technical requirements.  The vendor must comply with the Operating rules, standards and technical requirements established by the State agency.\n\n(4)  Purchase price and redemption procedures.  The State agency must describe in the vendor agreement its purchase price and redemption procedures. The redemption procedures must ensure that the State agency does not pay a vendor more than the price limitations applicable to the vendor.\n\n(5)  Sanction schedule.  The State agency must include its sanction schedule in the vendor agreement or as an attachment to it. The sanction schedule must include all mandatory and State agency vendor sanctions and must be consistent with paragraph (l) of this section. If the sanction schedule is in State law or regulations or in a document provided to the vendor at the time of authorization, the State agency instead may include an appropriate cross-reference in the vendor agreement.\n\n(6)  Actions subject to administrative review and review procedures.  The State agency must include the adverse actions a vendor may appeal and those adverse actions that are not subject to administrative review. The State agency also must include a copy of the State agency's administrative review procedures in the vendor agreement or as an attachment to it or must include a statement that the review procedures are available upon request and the applicable review procedures will be provided along with an adverse action subject to administrative review. These items must be consistent with \u00a7 246.18. If these items are in State law or regulations or in a document provided to the vendor at the time of authorization, the State agency instead may include an appropriate cross-reference in the vendor agreement.\n\n(7)  Notification of program changes.  The State agency must notify vendors of changes to Federal or State statutes, regulations, policies, or procedures governing the Program before the changes are implemented. The State agency should give as much advance notice as possible.\n\n(8)  Allowable and prohibited incentive items for above-50-percent vendors.  The vendor agreement for an above-50-percent vendor, or another document provided to the vendor and cross-referenced in the agreement, must include the State agency's policies and procedures for allowing and prohibiting incentive items to be provided by an above-50-percent vendor to customers, consistent with paragraph (g)(3)(iv) of this section.\n\n(i) The State agency must provide written approval or disapproval (including by electronic means such as electronic mail or facsimile) of requests from above-50-percent vendors for permission to provide allowable incentive items to customers;\n\n(ii) The State agency must maintain documentation for the approval process, including invoices or similar documents showing that the cost of each item is either less than the $2 nominal value limit, or obtained at no cost, unless the State agency provides the vendor with a list of pre-approved incentive items at the time of authorization; and\n\n(iii) The State agency must define prohibited incentive items.\n\n(i)  Retail food delivery systems: Vendor training \u2014(1)  General requirements.  The State agency must provide training annually to at least one representative of each vendor. Prior to or at the time of a vendor's initial authorization, and at least once every three years thereafter, the training must be in an interactive format that includes a contemporaneous opportunity for questions and answers. The State agency must designate the date, time, and location of the interactive training and the audience (e.g., managers, cashiers, etc.) to which the training is directed. The State agency must provide vendors with at least one alternative date on which to attend interactive training. Examples of acceptable vendor training include on-site cashier training, off-site classroom-style train-the-trainer or manager training, a training video, and a training newsletter. All vendor training must be designed to prevent program errors and noncompliance and improve program service.\n\n(2)  Content.  The annual training must include instruction on the purpose of the Program, the supplemental foods authorized by the State agency, the minimum varieties and quantities of authorized supplemental foods that must be stocked by vendors, the requirement that vendors obtain infant formula only from sources included on a list provided by the State agency, the procedures for transacting and redeeming food instruments and cash-value vouchers, the vendor sanction system, the vendor complaint process, the claims procedures, the State agency's policies and procedures regarding the use of incentive items, and any changes to program requirements since the last training.\n\n(3)  Delegation.  The State agency may delegate vendor training to a local agency, a contractor, or a vendor representative if the State agency indicates its intention to do so in its State Plan in accordance with \u00a7 246.4(a)(14)(xi). In such cases, the State agency must provide supervision and instruction to ensure the uniformity and quality of vendor training.\n\n(4)  Documentation.  The State agency must document the content of and vendor participation in vendor training.\n\n(j)  Retail food delivery systems: Monitoring vendors and identifying high-risk vendors \u2014(1)  General requirements.  The State agency must design and implement a system for monitoring its vendors for compliance with program requirements. The State agency may delegate vendor monitoring to a local agency or contractor if the State agency indicates its intention to do so in its State Plan in accordance with \u00a7 246.4(a)(14)(iv). In such cases, the State agency must provide supervision and instruction to ensure the uniformity and quality of vendor monitoring.\n\n(2)  Routine monitoring.  The State agency must conduct routine monitoring visits on a minimum of five percent of the number of vendors authorized by the State agency as of October 1 of each fiscal year in order to survey the types and levels of abuse and errors among authorized vendors and to take corrective actions, as appropriate. The State agency must develop criteria to determine which vendors will receive routine monitoring visits and must include such criteria in its State Plan in accordance with \u00a7 246.4(a)(14)(iv).\n\n(3)  Identifying high-risk vendors.  The State agency must identify high-risk vendors at least once a year using criteria developed by FNS and/or other statistically-based criteria developed by the State agency. FNS will not change its criteria more frequently than once every two years and will provide adequate advance notification of changes prior to implementation. The State agency may develop and implement additional criteria. All State agency-developed criteria must be approved by FNS.\n\n(4)  Compliance investigations.  (i)  High-risk vendors.  The State agency must conduct compliance investigations of a minimum of five percent of the number of vendors authorized by the State agency as of October 1 of each fiscal year. The State agency must conduct compliance investigations on all high-risk vendors up to the five percent minimum. The State agency may count toward this requirement a compliance investigation of a high-risk vendor conducted by a Federal, State, or local law enforcement agency. The State agency also may count toward this requirement a compliance investigation conducted by another WIC State agency provided that the State agency implements the option to establish State agency sanctions based on mandatory sanctions imposed by the other WIC State agency, as specified in paragraph (l)(2)(iii) of this section. A compliance investigation of a high-risk vendor may be considered complete when the State agency determines that a sufficient number of compliance buys have been conducted to provide evidence of program noncompliance, when two compliance buys have been conducted in which no program violations are found, or when an inventory audit has been completed.\n\n(ii)  Randomly selected vendors.  If fewer than five percent of the State agency's authorized vendors are identified as high-risk, the State agency must randomly select additional vendors on which to conduct compliance investigations sufficient to meet the five-percent requirement. A compliance investigation of a randomly selected vendor may be considered complete when the State agency determines that a sufficient number of compliance buys have been conducted to provide evidence of program noncompliance, when two compliance buys are conducted in which no program violations are found, or when an inventory audit has been completed.\n\n(iii)  Prioritization.  If more than five percent of the State agency's vendors are identified as high-risk, the State agency must prioritize such vendors so as to perform compliance investigations of those determined to have the greatest potential for program noncompliance and/or loss of funds.\n\n(5)  Monitoring report.  For each fiscal year, the State agency must send FNS a summary of the results of its vendor monitoring containing information stipulated by FNS. The report must be sent by February 1 of the following fiscal year. Plans for improvement in the coming year must be included in the State Plan in accordance with \u00a7 246.4(a)(14)(iv).\n\n(6)  Documentation \u2014(i)  Monitoring visits.  The State agency must document the following information for all monitoring visits, including routine monitoring visits, inventory audits, and compliance buys:\n\n(A) the date of the monitoring visit, inventory audit, or compliance buy;\n\n(B) the name(s) and signature(s) of the reviewer(s); and\n\n(C) the nature of any problem(s) detected.\n\n(ii)  Compliance buys.  For compliance buys, the State agency must also document:\n\n(A) the date of the buy;\n\n(B) a description of the cashier involved in each transaction;\n\n(C) the types and quantities of items purchased, current shelf prices or prices charged other customers, and price charged for each item purchased, if available. Price information may be obtained prior to, during, or subsequent to the compliance buy; and\n\n(D) the final disposition of all items as destroyed, donated, provided to other authorities, or kept as evidence.\n\n(k)  Retail food delivery systems: Vendor claims \u2014(1)  System to review food instruments and cash-value vouchers for vendor claims.  The State agency must design and implement a system to review food instruments and cash-value vouchers submitted by vendors for redemption to ensure compliance with the applicable price limitations and to detect questionable food instruments or cash-value vouchers, suspected vendor overcharges, and other errors. This review must examine either all or a representative sample of the food instruments and cash-value vouchers and may be done either before or after the State agency makes payments on the food instruments or cash-value vouchers. The review of food instruments must include a price comparison or other edit designed to ensure compliance with the applicable price limitations and to assist in detecting vendor overcharges. For printed food instruments and cash-value vouchers the system also must detect the following errors\u2014purchase price missing; participant, parent/caretaker, or proxy signature missing; vendor identification missing; food instruments or cash-value vouchers transacted or redeemed after the specified time periods; and, as appropriate, altered purchase price. The State agency must take follow-up action within 120 days of detecting any questionable food instruments or cash-value vouchers, suspected vendor overcharges, and other errors and must implement procedures to reduce the number of errors when possible.\n\n(2)  Delaying payment and establishing a claim.  When the State agency determines the vendor has committed a vendor violation that affects the payment to the vendor, the State agency must delay payment or establish a claim. Such vendor violations may be detected through compliance investigations, food instrument or cash-value voucher reviews, or other reviews or investigations of a vendor's operations. The State agency may delay payment or establish a claim in the amount of the full purchase price of each food instrument or cash-value voucher that contained the vendor overcharge or other error.\n\n(3)  Opportunity to justify or correct.  When payment for a food instrument or cash-value voucher is delayed or a claim is established, the State agency must provide the vendor with an opportunity to justify or correct the vendor overcharge or other error. If satisfied with the justification or correction, the State agency must provide payment or adjust the proposed claim accordingly.\n\n(4)  Timeframe and offset.  The State agency must deny payment or initiate claims collection action within 90 days of either the date of detection of the vendor violation or the completion of the review or investigation giving rise to the claim, whichever is later. Claims collection action may include offset against current and subsequent amounts owed to the vendor.\n\n(5)  Food instruments and cash-value vouchers redeemed after the specified period.  With justification and documentation, the State agency may pay vendors for food instruments and cash-value vouchers submitted for redemption after the specified period for redemption. If the total value of such food instruments or cash-value vouchers submitted at one time exceeds $500.00, the State agency must obtain the approval of the FNS Regional Office before payment.\n\n(l)  Retail food delivery systems: Vendor sanctions \u2014(1)  Mandatory vendor sanctions \u2014(i)  Permanent disqualification.  The State agency must permanently disqualify a vendor convicted of trafficking in food instruments or cash-value vouchers or selling firearms, ammunition, explosives, or controlled substances (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)) in exchange for food instruments or cash-value vouchers. A vendor is not entitled to receive any compensation for revenues lost as a result of such violation. If reflected in its State Plan, the State agency may impose a civil money penalty in lieu of a disqualification for this violation when it determines, in its sole discretion, and documents that:\n\n(A) Disqualification of the vendor would result in inadequate participant access; or\n\n(B) The vendor had, at the time of the violation, an effective policy and program in effect to prevent trafficking; and the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.\n\n(ii)  Six-year disqualification.  The State agency must disqualify a vendor for six years for:\n\n(A) One incidence of buying or selling food instruments, or cash-value vouchers, for cash (trafficking); or\n\n(B) One incidence of selling firearms, ammunition, explosives, or controlled substances as defined in 21 U.S.C. 802, in exchange for food instruments or cash-value vouchers.\n\n(iii)  Three-year disqualification.  The State agency must disqualify a vendor for three years for:\n\n(A) One incidence of the sale of alcohol or alcoholic beverages or tobacco products in exchange for food instruments or cash-value vouchers;\n\n(B) A pattern of claiming reimbursement for the sale of an amount of a specific supplemental food item which exceeds the store's documented inventory of that supplemental food item for a specific period of time;\n\n(C) A pattern of vendor overcharges;\n\n(D) A pattern of receiving, transacting and/or redeeming food instruments or cash-value vouchers outside of authorized channels, including the use of an unauthorized vendor and/or an unauthorized person;\n\n(E) A pattern of charging for supplemental food not received by the participant; or\n\n(F) A pattern of providing credit or non-food items, other than alcohol, alcoholic beverages, tobacco products, cash, firearms, ammunition, explosives, or controlled substances as defined in 21 U.S.C. 802, in exchange for food instruments or cash-value vouchers.\n\n(iv)  One-year disqualification.  The State agency must disqualify a vendor for one year for:\n\n(A) A pattern of providing unauthorized food items in exchange for food instruments or cash-value vouchers, including charging for supplemental foods provided in excess of those listed on the food instrument; or\n\n(B) A pattern of an above-50-percent vendor providing prohibited incentive items to customers as set forth in paragraph (g)(3)(iv) of this section, in accordance with the State agency's policies and procedures required by paragraph (h)(8) of this section.\n\n(v)  Second mandatory sanction.  When a vendor, who previously has been assessed a sanction for any of the violations in paragraphs (l)(1)(ii) through (l)(1)(iv) of this section, receives another sanction for any of these violations, the State agency must double the second sanction. Civil money penalties may only be doubled up to the limits allowed under paragraph (l)(1)(x)(C) of this section.\n\n(vi)  Third or subsequent mandatory sanction.  When a vendor, who previously has been assessed two or more sanctions for any of the violations listed in paragraphs (l)(1)(ii) through (l)(1)(iv) of this section, receives another sanction for any of these violations, the State agency must double the third sanction and all subsequent sanctions. The State agency may not impose civil money penalties in lieu of disqualification for third or subsequent sanctions for violations listed in paragraphs (l)(1)(ii) through (l)(1)(iv) of this section.\n\n(vii)  Disqualification based on a SNAP disqualification.  The State agency must disqualify a vendor who has been disqualified from SNAP. The disqualification must be for the same length of time as SNAP disqualification, may begin at a later date than SNAP disqualification, and is not subject to administrative or judicial review under the WIC Program.\n\n(viii)  Voluntary withdrawal or nonrenewal of agreement.  The State agency may not accept voluntary withdrawal of the vendor from the Program as an alternative to disqualification for the violations listed in paragraphs (l)(1)(i) through (l)(1)(iv) of this section, but must enter the disqualification on the record. In addition, the State agency may not use nonrenewal of the vendor agreement as an alternative to disqualification.\n\n(ix)  Participant access determinations.  Prior to disqualifying a vendor for a SNAP disqualification pursuant to paragraph (l)(1)(vii) of this section or for any of the violations listed in paragraphs (l)(1)(ii) through (l)(1)(iv) of this section, the State agency must determine if disqualification of the vendor would result in inadequate participant access. The State agency must make the participant access determination in accordance with paragraph (l)(8) of this section. If the State agency determines that disqualification of the vendor would result in inadequate participant access, the State agency must impose a civil money penalty in lieu of disqualification. However, as provided in paragraph (l)(1)(vi) of this section, the State agency may not impose a civil money penalty in lieu of disqualification for third or subsequent sanctions for violations in paragraphs (l)(1)(ii) through (l)(1)(iv) of this section. The State agency must include documentation of its participant access determination and any supporting documentation in the file of each vendor who is disqualified or receives a civil money penalty in lieu of disqualification.\n\n(x)  Civil money penalty formula.  For each violation subject to a mandatory sanction, the State agency must use the following formula to calculate a civil money penalty imposed in lieu of disqualification:\n\n(A) Determine the vendor's average monthly redemptions for at least the 6-month period ending with the month immediately preceding the month during which the notice of adverse action is dated;\n\n(B) Multiply the average monthly redemptions figure by 10 percent (.10);\n\n(C) Multiply the product from paragraph (l)(1)(x)(B) of this section by the number of months for which the store would have been disqualified. This is the amount of the civil money penalty, provided that the civil money penalty shall not exceed the maximum amount specified in \u00a7 3.91(b)(3)(v) of this title for each violation. For a violation that warrants permanent disqualification, the amount of the civil money penalty shall be the maximum amount specified in \u00a7 3.91(b)(3)(v) of this title for each violation. When during the course of a single investigation the State agency determines a vendor has committed multiple violations, the State agency must impose a CMP for each violation. The total amount of civil money penalties imposed for violations investigated as part of a single investigation may not exceed the amount specified in \u00a7 3.91(b)(3)(v) of this title as the maximum penalty for violations occurring during a single investigation.\n\n(xi)  Notification to FNS.  The State agency must provide the appropriate FNS office with a copy of the notice of adverse action and information on vendors it has either disqualified or imposed a civil money penalty in lieu of disqualification for any of the violations listed in paragraphs (l)(1)(i) through (l)(1)(iv) of this section. This information must include the name of the vendor, address, identification number, the type of violation(s), and the length of disqualification or the length of the disqualification corresponding to the violation for which the civil money penalty was assessed, and must be provided within 15 days after the vendor's opportunity to file for a WIC administrative review has expired or all of the vendor's WIC administrative reviews have been completed.\n\n(xii)  Multiple violations during a single investigation.  When during the course of a single investigation the State agency determines a vendor has committed multiple violations (which may include violations subject to State agency sanctions), the State agency must disqualify the vendor for the period corresponding to the most serious mandatory violation. However, the State agency must include all violations in the notice of administration action. If a mandatory sanction is not upheld on appeal, then the State agency may impose a State agency-established sanction.\n\n(2)  State agency vendor sanctions.  (i)  General requirements.  The State agency may impose sanctions for vendor violations that are not specified in paragraphs (l)(1)(i) through (l)(1)(iv) of this section as long as such vendor violations and sanctions are included in the State agency's sanction schedule. State agency sanctions may include disqualifications, civil money penalties assessed in lieu of disqualification, and administrative fines. The total period of disqualification imposed for State agency violations investigated as part of a single investigation may not exceed one year. A civil money penalty or fine may not exceed a maximum amount specified in \u00a7 3.91(b)(3)(v) of this title for each violation. The total amount of civil money penalties and administrative fines imposed for violations investigated as part of a single investigation may not exceed an amount specified in \u00a7 3.91(b)(3)(v) of this title as the maximum penalty for violations occurring during a single investigation. A State agency vendor sanction must be based on a pattern of violative incidences.\n\n(ii)  SNAP civil money penalty for hardship.  The State agency may disqualify a vendor that has been assessed a civil money penalty for hardship in SNAP, as provided under \u00a7 278.6 of this chapter. The length of such disqualification must correspond to the period for which the vendor would otherwise have been disqualified in SNAP. If a State agency decides to exercise this option, the State agency must:\n\n(A) Include notification that it will take such disqualification action in its sanction schedule; and\n\n(B) Determine if disqualification of the vendor would result in inadequate participant access in accordance with paragraph (l)(8) of this section. If the State agency determines that disqualification of the vendor would result in inadequate participant access, the State agency may not disqualify the vendor or impose a civil money penalty in lieu of disqualification. The State agency must include documentation of its participant access determination and any supporting documentation in each vendor's file.\n\n(iii)  A mandatory sanction by another WIC State agency.  The State agency may disqualify a vendor that has been disqualified or assessed a civil money penalty in lieu of disqualification by another WIC State agency for a mandatory vendor sanction. The length of the disqualification must be for the same length of time as the disqualification by the other WIC State agency or, in the case of a civil money penalty in lieu of disqualification assessed by the other WIC State agency, for the same length of time for which the vendor would otherwise have been disqualified. The disqualification may begin at a later date than the sanction imposed by the other WIC State agency. If a State agency decides to exercise this option, the State agency must:\n\n(A) Include notification that it will take such action in its sanction schedule; and\n\n(B) Determine if disqualification of the vendor would result in inadequate participant access in accordance with paragraph (l)(8) of this section. If the State agency determines that disqualification of the vendor would result in inadequate participant access, the State agency must impose a civil money penalty in lieu of disqualification, except that the State agency may not impose a civil money penalty in situations in which the vendor has been assessed a civil money penalty in lieu of disqualification by the other WIC State agency. Any civil money penalty in lieu of disqualification must be calculated in accordance with paragraph (l)(2)(x) of this section. The State agency must include documentation of its participant access determination and any supporting documentation in each vendor's file.\n\n(3)  Notification of violations.  The State agency must notify a vendor in writing when an investigation reveals an initial incidence of a violation for which a pattern of incidences must be established in order to impose a sanction, before another such incidence is documented, unless the State agency determines, in its discretion, on a case-by-case basis, that notifying the vendor would compromise an investigation. This notification requirement applies to the violations set forth in paragraphs (l)(1)(iii)(C) through (l)(1)(iii)(F), (l)(1)(iv), and (l)(2)(i) of this section.\n\n(i) Prior to imposing a sanction for a pattern of violative incidences, the State agency must either provide such notice to the vendor, or document in the vendor file the reason(s) for determining that such notice would compromise an investigation.\n\n(ii) The State agency may use the same method of notification which the State agency uses to provide a vendor with adequate advance notice of the time and place of an administrative review in accordance with \u00a7 246.18(b)(3).\n\n(iii) If notification is provided, the State agency may continue its investigation after the notice of violation is received by the vendor, or presumed to be received by the vendor, consistent with the State agency's procedures for providing such notice.\n\n(iv) All of the incidences of a violation occurring during the first compliance buy visit must constitute only one incidence of that violation for the purpose of establishing a pattern of incidences.\n\n(v) A single violative incidence may only be used to establish the violations set forth in paragraphs (l)(1)(ii)(A), (l)(1)(ii)(B), and (l)(1)(iii)(A) of this section.\n\n(4)  Administrative reviews.  The State agency must provide administrative reviews of sanctions to the extent required by \u00a7 246.18.\n\n(5)  Installment plans.  The State agency may use installment plans for the collection of civil money penalties and administrative fines.\n\n(6)  Failure to pay a civil money penalty.  If a vendor does not pay, only partially pays, or fails to timely pay a civil money penalty assessed in lieu of disqualification, the State agency must disqualify the vendor for the length of the disqualification corresponding to the violation for which the civil money penalty was assessed (for a period corresponding to the most serious violation in cases where a mandatory sanction included the imposition of multiple civil money penalties as a result of a single investigation).\n\n(7)  Actions in addition to sanctions.  Vendors may be subject to actions in addition to the sanctions in this section, such as claims pursuant to paragraph (k) of this section and the penalties set forth in \u00a7 246.23(c) in the case of deliberate fraud.\n\n(8)  Participant access determination criteria.  The State agency must develop participant access criteria. When making participant access determinations, the State agency must consider the availability of other authorized vendors in the same area as the violative vendor and any geographic barriers to using such vendors.\n\n(9)  Termination of agreement.  When the State agency disqualifies a vendor, the State agency must also terminate the vendor agreement.\n\n(m)  Home food delivery systems.  Home food delivery systems are systems in which authorized supplemental foods are delivered to the participant's home. Home food delivery systems must provide for:\n\n(1)  Procurement.  Procurement of supplemental foods in accordance with \u00a7 246.24, which may entail measures such as the purchase of food in bulk lots by the State agency and the use of discounts that are available to States.\n\n(2)  Accountability.  The accountable delivery of authorized supplemental foods to participants. The State agency must ensure that:\n\n(i) Home food delivery contractors are paid only after the delivery of authorized supplemental foods to participants;\n\n(ii) A routine procedure exists to verify the correct delivery of authorized supplemental foods to participants, and, at a minimum, such verification occurs at least once a month after delivery; and\n\n(iii) Records of delivery of supplemental foods and bills sent or payments received for such supplemental foods are retained for at least three years. Federal, State, and local authorities must have access to such records.\n\n(n)  Direct distribution food delivery systems.  Direct distribution food delivery systems are systems in which participants, parents or caretakers of infant or child participants, or proxies pick up authorized supplemental foods from storage facilities operated by the State agency or its local agencies. Direct distribution food delivery systems must provide for:\n\n(1)  Storage and insurance.  Adequate storage and insurance coverage that minimizes the danger of loss due to theft, infestation, fire, spoilage, or other causes;\n\n(2)  Inventory.  Adequate inventory control of supplemental foods received, in stock, and issued;\n\n(3)  Procurement.  Procurement of supplemental foods in accordance with \u00a7 246.24, which may entail measures such as purchase of food in bulk lots by the State agency and the use of discounts that are available to States;\n\n(4)  Availability.  The availability of program benefits to participants and potential participants who live at great distance from storage facilities; and\n\n(5)  Accountability.  The accountable delivery of authorized supplemental foods to participants.\n\n(o)  Participant parent/caretaker, proxy, vendor, farmer, farmers' market, and home food delivery contractor complaints.  The State agency must have procedures to document the handling of complaints by participants, parents or caretakers of infant or child participants, proxies, vendors, farmers, farmers' markets, home food delivery contractors, and direct distribution contractors. Complaints of civil rights discrimination must be handled in accordance with \u00a7 246.8(b).\n\n(p)  Food instrument and cash-value voucher security.  The State agency must develop standards for ensuring the security of food instruments and cash-value vouchers from the time the food instruments and cash-value vouchers are created to the time they are issued to participants, parents/caretakers, or proxies. For pre-printed food instruments or cash-value vouchers, these standards must include maintenance of perpetual inventory records of food instruments or cash-value vouchers throughout the State agency's jurisdiction; monthly physical inventory of food instruments or cash-value vouchers on hand throughout the State agency's jurisdiction; reconciliation of perpetual and physical inventories of food instruments and cash-value vouchers; and maintenance of all food instruments and cash-value vouchers under lock and key, except for supplies needed for immediate use. For EBT and print-on-demand food instruments and cash-value vouchers, the standards must provide for the accountability and security of the means to manufacture and issue such food instruments and cash-value vouchers.\n\n(q)  Food instrument and cash-value voucher disposition.  The State agency must account for the disposition of all food instruments and cash-value vouchers as either issued or voided, and as either redeemed or unredeemed. Redeemed food instruments and cash-value vouchers must be identified as validly issued, lost, stolen, expired, duplicate, or not matching valid enrollment and issuance records. In an EBT system, evidence of matching redeemed food instruments to valid enrollment and issuance records may be satisfied through the linking of the Primary Account Number (PAN) associated with the electronic transaction to valid enrollment and issuance records. This process must be performed within 120 days of the first valid date for participant use of the food instruments and must be conducted in accordance with the financial management requirements of \u00a7 246.13. The State agency will be subject to claims as outlined in \u00a7 246.23(a)(4) for redeemed food instruments or cash-value vouchers that do not meet the conditions established in paragraph (q) of this section.\n\n(r)  Issuance of food instruments, cash-value vouchers and authorized supplemental foods.  The State agency must:\n\n(1)  Parents/caretakers and proxies.  Establish uniform procedures that allow parents and caretakers of infant and child participants and proxies to obtain and transact food instruments and cash-value vouchers or obtain authorized supplemental foods on behalf of a participant. In determining whether a particular participant or parent/caretaker should be allowed to designate a proxy or proxies, the State agency must require the local agency or clinic to consider whether adequate measures can be implemented to provide nutrition education and health care referrals to that participant or, in the case of an infant or child participant, to the participant's parent or caretaker;\n\n(2)  Signature requirement.  Ensure that the participant, parent or caretaker of an infant or child participant, or proxy signs for receipt of food instruments, cash-value vouchers or authorized supplemental foods, except as provided in paragraph (r)(4) of this section;\n\n(3)  Instructions.  Ensure that participants, parents or caretakers of infant and child participants, and proxies receive instructions on the proper use of food instruments and cash-value vouchers, or on the procedures for obtaining authorized supplemental foods when food instruments or cash-value vouchers are not used. The State agency must also ensure that participants, parents or caretakers of infant and child participants, and proxies are notified that they have the right to complain about improper vendor, farmer, farmers' markets, and home food delivery contractor practices with regard to program responsibilities;\n\n(4)  Food instrument and cash-value voucher pick up.  Require participants, parents and caretakers of infant and child participants, and proxies to pick up food instruments and cash-value vouchers in person when scheduled for nutrition education or for an appointment to determine whether participants are eligible for a second or subsequent certification period. However, in all other circumstances the State agency may provide for issuance through an alternative means such as EBT or mailing, unless FNS determines that such actions would jeopardize the integrity of program services or program accountability. If a State agency opts to mail food instruments and cash-value vouchers, it must provide justification, as part of its alternative issuance system in its State Plan, as required in \u00a7 246.4(a)(21), for mailing food instruments and cash-value voucher to areas where SNAP benefits are not mailed. State agencies that opt to mail food instruments and cash-value vouchers must establish and implement a system that ensures the return of food instruments and cash-value vouchers to the State or local agency if a participant no longer resides or receives mail at the address to which the food instruments and cash-value vouchers were mailed; and\n\n(5)  Maximum issuance of food instruments and cash-value voucher.  Ensure that no more than a three-month supply of food instruments and cash-value vouchers or a one-month supply of authorized supplemental foods is issued at any one time to any participant, parent or caretaker of an infant or child participant, or proxy.\n\n(6)  Any authorized vendor.  Each State agency shall allow participants to receive supplemental foods from any vendor authorized by the State agency under retail delivery systems.\n\n(s)  Payment to vendors, farmers and home food delivery contractors.  The State agency must ensure that vendors, farmers and home food delivery contractors are paid promptly. Payment must be made within 60 days after valid food instruments or cash-value vouchers are submitted for redemption. Actual payment to vendors, farmers and home food delivery contractors may be made by local agencies.\n\n(t)  Conflict of interest.  The State agency must ensure that no conflict of interest exists, as defined by applicable State laws, regulations, and policies, between the State agency and any vendor, farmer, farmers' markets, or home food delivery contractor, or between any local agency and any vendor, farmer, farmers' markets, or home food delivery contractor under its jurisdiction.\n\n(u)  Participant violations and sanctions \u2014(1)  General requirements.  The State agency must establish procedures designed to control participant violations. The State agency also must establish sanctions for participant violations. Participant sanctions may include disqualification from the Program for a period of up to one year.\n\n(2)  Mandatory disqualification.  (i)  General.  Except as provided in paragraphs (u)(2)(ii) and (iii) of this section, whenever the State agency assesses a claim of $1,000 or more, assesses a claim for dual participation, or assess a second or subsequent claim of any amount, the State agency must disqualify the participant for one year.\n\n(ii)  Exceptions to mandatory disqualification.  The State agency may decide not to impose a mandatory disqualification if, within 30 days of receipt of the letter demanding repayment, full restitution is made or a repayment schedule is agreed on, or, in the case of a participant who is an infant, child, or under age 18, the State or local agency approves the designation of a proxy.\n\n(iii)  Terminating a mandatory disqualification.  The State agency may permit a participant to reapply for the Program before the end of a mandatory disqualification period if full restitution is made or a repayment schedule is agreed upon or, in the case of a participant who is an infant, child, or under age 18, the State or local agency approves the designation of a proxy.\n\n(3)  Warnings before sanctions.  The State agency may provide warnings before imposing participant sanctions.\n\n(4)  Fair hearings.  At the time the State agency notifies a participant of a disqualification, the State agency must advise the participant of the procedures to follow to obtain a fair hearing pursuant to \u00a7 246.9.\n\n(5)  Referral to law enforcement authorities.  When appropriate, the State agency must refer vendors, home food delivery contractors, farmers, farmers' markets and participants who violate program requirements to Federal, State, or local authorities for prosecution under applicable statutes.\n\n(v)  Farmers and farmers' markets.  The State agency may authorize farmers, farmers' markets, and/or roadside stands to accept the cash-value voucher for eligible fruits and vegetables. The State agency must enter into written agreements with all authorized farmers and/or farmers' markets. The agreement must be signed by a representative who has legal authority to obligate the farmer or farmers' market and a representative of the State agency. The agreement must be for a period not to exceed 3 years. Only farmers or farmers' markets authorized by the State agency may redeem the fruit and vegetable cash-value voucher. The State agency must require farmers or farmers' markets to reapply at the expiration of their agreements and must provide farmers or farmers markets with not less than 15 days advance written notice of the expiration of the agreement.\n\n(1) The agreement must include the following provisions, although the State agency may determine the exact wording. The farmer or farmers' market must:\n\n(i) Assure that the cash-value voucher is redeemed only for eligible fruits and vegetables as defined by the State agency;\n\n(ii) Provide eligible fruits and vegetables at the current price or less than the current price charged to other customers;\n\n(iii) Accept the cash-value voucher within the dates of their validity and submit such vouchers for payment within the allowable time period established by the State agency;\n\n(iv) Redeem the cash-value voucher in accordance with a procedure established by the State agency. Such procedure must include a requirement for the farmer or farmers' market to allow the participant, authorized representative or proxy to pay the difference when the purchase of fruits and vegetables exceeds the value of the cash-value vouchers (also known as a split tender transaction);\n\n(v) Accept training on cash-value voucher procedures and provide training to any employees with cash-value voucher responsibilities on such procedures;\n\n(vi) Agree to be monitored for compliance with program requirements, including both overt and covert monitoring;\n\n(vii) Be accountable for actions of employees in the provision of authorized foods and related activities;\n\n(viii) Pay the State agency for any cash-value vouchers transacted in violation of this agreement;\n\n(ix) Offer WIC participants, parent or caretakers of child participants or proxies the same courtesies as other customers;\n\n(x) Comply with the nondiscrimination provisions of USDA regulations as provided in \u00a7 248.7; and\n\n(xi) Notify the State agency if any farmers' market ceases operation prior to the end of the authorization period.\n\n(2) The farmer or farmers' market must not:\n\n(i) Collect sales tax on cash-value voucher purchases;\n\n(ii) Seek restitution from WIC participants, parent or caretakers of child participants or proxies for cash-value vouchers not paid or partially paid by the State agency;\n\n(iii) Issue cash change for purchases that are in an amount less than the value of the cash-value voucher;\n\n(3) Neither the State agency nor the farmer or farmers' market has an obligation to renew the agreement. The State agency, the farmer, or farmers' market may terminate the agreement for cause after providing advance written notification.\n\n(4)  Farmer agreements for State agencies that do not authorize farmers.  Those State agencies which authorize farmers' markets but not individual farmers shall require authorized farmers' markets to enter into a written agreement with each farmer within the market that is authorized to accept cash-value vouchers. The State agency shall set forth the required terms for the written agreement as defined in \u00a7 246.12(v)(1) and (v)(2), and provide a sample agreement for use by the farmers' market.\n\n(5) The State agency may deny payment to the farmer or farmers' market for improperly redeemed cash-value vouchers and may demand refunds for payments already made on improperly redeemed vouchers.\n\n(6) The State agency may disqualify a farmer or farmers' market for WIC Program abuse. The farmer or farmers' market has the right to appeal a denial of an application to participate, a disqualification, or a program sanction by the State agency. Expiration of an agreement with a farmer or farmers' market and claims actions under \u00a7 246.23, are not appealable.\n\n(7) A farmer or farmers' market which commits fraud or engages in other illegal activity is liable to prosecution under applicable Federal, State or local laws.\n\n(8)  Monitoring farmers and farmers' markets.  (i) The State agency must design and implement a system for monitoring its authorized farmers and farmers' markets for compliance with program requirements. The State agency must document, at a minimum, the following information for all monitoring visits: name(s) of the farmer, farmers market, or roadside stand; name(s) and signature(s) of the reviewer(s); date of review; and nature of problem(s) detected.\n\n(ii)  Compliance buys.  For compliance buys, the State agency must also document:\n\n(A) The date of the buy;\n\n(B) A description of the farmer (and farmers' market, as appropriate) involved in each transaction;\n\n(C) The types and quantities of items purchased, current retail prices or prices charged other customers, and price charged for each item purchased, if available. Price information may be obtained prior to, during, or subsequent to the compliance buy; and\n\n(D) The final disposition of all items as destroyed, donated, provided to other authorities, or kept as evidence.\n\n(w)  EBT \u2014(1)  General.  All State agencies shall implement EBT statewide in accordance with paragraph (a) of this section.\n\n(2)  EBT exemptions.  The Secretary may grant an exemption to the October 1, 2020 statewide implementation requirement. To be eligible for an exemption, a State agency shall demonstrate to the satisfaction of the Secretary one or more of the following:\n\n(i) There are unusual technological barriers to implementation;\n\n(ii) Operational costs are not affordable within the nutrition services and administration grant of the State agency; or\n\n(iii) It is in the best interest of the program to grant the exemption.\n\n(3)  Implementation date.  If the Secretary grants a State agency an exemption, such exemption will remain in effect until: The State agency no longer meets the conditions on which the exemption was based; the Secretary revokes the exemption or for three years from the date the exemption was granted, whichever occurs first.\n\n(x)  Electronic benefit requirements \u2014(1)  General.  State agencies using EBT shall issue an electronic benefit that complies with the requirements of paragraph (x)(2) of this section.\n\n(2)  Electronic benefits.  Each electronic benefit must contain the following information:\n\n(i)  Authorized supplemental foods.  The supplemental foods authorized by food category, subcategory and benefit quantity, to include the cash-value benefit;\n\n(ii)  First date of use.  The first date of use on which the electronic benefit may be used to obtain authorized supplemental foods;\n\n(iii)  Last date of use.  The last date on which the electronic benefit may be used to obtain authorized supplemental foods. This date must be a minimum of 30 days, or in the month of February 28 or 29 days, from the first date on which it may be used to obtain authorized supplemental foods except for the participant's first month of issuance when it may be the end of the month or cycle for which the electronic benefit is valid; and\n\n(iv)  Benefit issuance identifier.  A unique and sequential number. This number enables the identification of each benefit change (addition, subtraction or update) made to the participant account.\n\n(3)  Vendor identification.  The State agency shall ensure each EBT purchase submitted for electronic payment is matched to an authorized vendor, farmer, or farmers' market prior to authorizing payment. Each vendor operated by a single business entity must be identified separately.\n\n(y)  EBT management and reporting.  (1) The State agency shall follow the Department Advance Planning Document (APD) requirements and submit Planning and Implementation APD's and appropriate updates, for Department approval for planning, development and implementation of initial and subsequent EBT systems.\n\n(2) If a State agency plans to incorporate additional programs in the EBT system of the State, the State agency shall consult with State agency officials responsible for administering the programs prior to submitting the Planning APD (PAPD) document and include the outcome of those discussions in the PAPD submission to the Department for approval.\n\n(3) Each State agency shall have an active EBT project by August 1, 2016. Active EBT project is defined as a formal process of planning, implementation, or statewide implementation of WIC EBT.\n\n(4) Annually as part of the State plan, the State agency shall submit EBT project status reports. At a minimum, the annual status report shall contain:\n\n(i) Until operating EBT statewide, an outline of the EBT implementation goals and objectives as part of the goals and objectives in \u00a7 246.4(a)(1), to demonstrate the State agency's progress toward statewide EBT implementation;\n\n(ii) If operating EBT statewide, any information on future EBT changes and procurement updates affecting present operations; and\n\n(iii) Such other information the Secretary may require.\n\n(5) The State agency shall be responsible for EBT coordination and management.\n\n(z)  EBT food delivery methods: Vendor requirements \u2014(1)  General.  State agencies using EBT for delivering benefits shall comply with the vendor requirements in paragraphs (g) through (l) of this section. In addition, State agencies shall comply with requirements that are detailed throughout this paragraph (z).\n\n(2)  Minimum lane coverage.  The Point-of-Sale (POS) terminals, whether single-function equipment or multi-function equipment, shall be deployed as follows:\n\n(i)  Superstores and supermarkets.  There will be one POS terminal for every $11,000 in monthly WIC redemption up to a total of four POS terminals, or the number of lanes in the location, whichever is less. At a minimum, terminals shall be installed for monthly WIC redemption threshold increments as follows: one terminal for $0 to $11,000; two terminals for $11,001 to $22,000; three terminals for $22,001 to $33,000; and four terminals for $33,001 and above. A State agency may utilize an alternative installation formula with Department approval. The monthly redemption levels used for the installation formula shall be the average redemptions based on a period of up to 12 months of prior redemption;\n\n(ii)  All other vendors.  One POS terminal for every $8,000 in monthly redemption up to a total of four POS terminals, or the number of lanes in the location; whichever is less. At a minimum, terminals shall be installed for monthly WIC redemption thresholds as follows: one terminal for $0 to $8,000; two terminals for $8,001 to $16,000; three terminals for $16,001 to $24,000; and four terminals for $24,001 and above. A State agency may utilize an alternative installation formula with Department approval. The monthly redemption levels used for the installation formula shall be the average redemptions based on a period of up to 12 months of prior redemption;\n\n(iii) The State agency shall determine the number of appropriate POS terminals for authorized farmers and farmers' markets;\n\n(iv) For newly authorized WIC vendors deemed necessary for participant access by the State agency, the vendor shall be provided one POS terminal unless the State agency determines other factors in this location warrant additional terminals;\n\n(v) Any authorized vendor who has been equipped with a POS terminal by the State agency may submit evidence additional terminals are necessary after the initial POS terminals are installed;\n\n(vi) The State agency may provide authorized vendors with additional POS terminals above the minimum number required by this paragraph in order to permit WIC participants to obtain a shopping list or benefit balance, as long as the number of terminals provided does not exceed the number of lanes in the vendor location;\n\n(vii) The State agency may remove excess POS terminals if actual redemption activity warrants a reduction consistent with the redemption levels outlined in paragraphs (z)(2)(i) through (ii) of this section.\n\n(3)  Payment to vendors, farmers and farmers' markets.  The State agency shall ensure that vendors, farmers and farmers' markets are paid promptly. Payment must be made in accordance with the established Operating Rules and technical requirements after the vendor, farmer or farmers' market has submitted a valid electronic claim for payment.\n\n(aa)  Imposition of costs on vendors, farmers and farmers' markets \u2014(1)  Cost prohibition.  Except as otherwise provided in this section, a State agency shall not impose the costs of any single-function equipment or system required for EBT on any authorized vendor, farmers or farmers' markets in order to transact EBT.\n\n(2)  Cost sharing.  If WIC Program equipment is multi-function equipment, the State agency shall develop cost sharing criteria with authorized WIC vendors, farmers and farmers' markets for costs associated with such equipment in accordance with Federal cost principles. Any cost sharing agreements shall be developed between a State agency and its vendors, farmers, or farmers' markets depending on the type, scope and capabilities of shared equipment. The State agency must furnish its allocation and/or cost sharing methodology to the Department as part of the Advanced Planning Document for review and approval before incurring costs.\n\n(3)  Fees \u2014(i)  Third-party processor costs and fees.  The State agency shall not pay or reimburse vendors, farmers or farmers' markets for third-party processing costs and fees for vendors, farmers, or farmers' markets that elect to accept EBT using multi-function equipment. The State agency or its agent shall not charge any fees to authorized vendors for use of single-function equipment.\n\n(ii)  Interchange fees.  The State agency shall not pay or reimburse the vendor, farmer or farmers' markets for interchange fees on WIC EBT transactions.\n\n(4)  Statewide operations.  After completion of statewide EBT implementation, the State agency shall not:\n\n(i) Pay ongoing maintenance, processing fees or operational costs for any vendor, farmer or farmers' market utilizing multi-function systems and equipment, unless the State agency determines that the vendor is necessary for participant access. The State agency shall continue to pay ongoing maintenance, processing fees and operational costs of single-function equipment;\n\n(ii) Authorize a vendor, farmer, or farmers' market that cannot successfully demonstrate EBT capability in accordance with State agency requirements, unless the State agency determines the vendor is necessary for participant access.\n\n(bb)  EBT Technical standards and requirements.  (1) Each State agency, contractor and authorized vendor participating in the program shall follow and demonstrate compliance with:\n\n(i) Operating rules, standards and technical requirements as established by the Secretary; and\n\n(ii) Other industry standards identified by the Secretary.\n\n(2) The State agency shall establish policy permitting the replacement of EBT cards and the transfer of participant benefit balances within no more than seven business days following notice by the participant or proxy to the State agency.\n\n(3) The State agency shall establish procedures to provide customer service during non-business hours that enable participants or proxies to report a lost, stolen, or damaged card, report other card or benefit issues, receive information on the EBT food balance and receive the current benefit end date. The State agency shall respond to any report of a lost, stolen, or damaged card within one business day of the date of report. If a State agency seeks to implement alternatives to the minimum service requirements, the agency must submit the plan to FNS for approval.\n\n(cc)  National universal product codes (UPC) database.  The national UPC database is to be used by all State agencies using EBT to deliver WIC food benefits."], ["7:7:4.1.1.1.10.5.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.13 Financial management system.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985, as amended at 65 FR 83286, Dec. 29, 2000; 81 FR 66494, Sept. 28, 2016]", "(a)  Disclosure of expenditures.  The State agency shall maintain a financial management system which provides accurate, current and complete disclosure of the financial status of the Program. This shall include an accounting for all property and other assets and all Program funds received and expended each fiscal year.\n\n(b)  Internal control.  The State agency shall maintain effective control over and accountability for all Program grants and funds. The State agency must have effective internal controls to ensure that expenditures financed with Program funds are authorized and properly chargeable to the Program.\n\n(c)  Record of expenditures.  The State agency shall maintain records which adequately identify the source and use of funds expended for Program activities. These records shall contain, but are not limited to, information pertaining to authorization, receipt of funds, obligations, unobligated balances, assets, liabilities, outlays, and income.\n\n(d)  Payment of costs.  The State shall implement procedures which ensure prompt and accurate payment of allowable costs, and ensure the allowability and allocability of costs in accordance with the cost principles and standard provisions of this part, 2 CFR part 200, subpart D, USDA implementing regulations 2 CFR part 400 and part 415, and FNS guidelines and instructions.\n\n(e)  Identification of obligated funds.  The State agency shall implement procedures which accurately identify obligated Program funds at the time the obligations are made.\n\n(f)  Resolution of audit findings.  The State agency shall implement procedures which ensure timely and appropriate resolution of claims and other matters resulting from audit findings and recommendations.\n\n(g)  Use of minority- and women-owned banks.  Consistent with the national goals of expanding opportunities for minority business enterprises, State and local agencies are encouraged to use minority- and women-owned banks.\n\n(h)  Adjustment of expenditures.  The State agency must adjust projected expenditures to account for redeemed food instruments and for other changes as appropriate.\n\n(i)  Transfer of cash.  The State agency shall have controls to minimize the time elapsing between receipt of Federal funds from the U.S. Department of Treasury and the disbursements of these funds for Program costs. In the Letter of Credit system, the State agency shall make drawdowns from the U.S. Department of Treasury's Regional Disbursing Office as close as possible to the actual date that disbursement of funds is made. Advances made by the State agency to local agencies shall also conform to these same standards.\n\n(j)  Local agency financial management.  The State agency shall ensure that all local agencies develop and implement a financial management system consistent with requirements prescribed by FNS and the State agency pursuant to the requirements of this section."], ["7:7:4.1.1.1.10.5.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.14 Program costs.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1987, as amended at 52 FR 21237, June 4, 1987; 53 FR 25314, July 6, 1988; 54 FR 18091, Apr. 27, 1989; 58 FR 11507, Feb. 26, 1993; 59 FR 11503, Mar. 11, 1994; 63 FR 63974, Nov. 18, 1998; 64 FR 67999, Dec. 6, 1999; 64 FR 70178, Dec. 16, 1999; 65 FR 83286, Dec. 29, 2000; 71 FR 56731, Sept. 27, 2006; 73 FR 11312, Mar. 3, 2008; 76 FR 59889, Sept. 28, 2011; 81 FR 66494, Sept. 28, 2016]", "(a)  General.  (1) The two kinds of allowable costs under the Program are \u201cfood costs\u201d and \u201cnutrition services and administration costs.\u201d In general, costs necessary to the fulfillment of Program objectives are to be considered allowable costs. The two types of nutrition services and administration costs are:\n\n(i)  Direct costs.  Those direct costs that are allowable under 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400 and part 415.\n\n(ii)  Indirect costs.  Those indirect costs that are allowable under 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400 and part 415. When computing indirect costs, food costs may not be used in the base to which the indirect cost rate is applied. In accordance with the provisions of 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400 and part 415, a claim for indirect costs shall be supported by an approved allocation plan for the determination of allowable indirect costs.\n\n(2) Program funds may not be used to pay for retroactive benefits. Except as provided in paragraph (e) of this section and \u00a7\u00a7 246.16(g) and 246.16(h) of this part, funds allocated by FNS for food purchases may not be used to pay nutrition services and administration costs. However, nutrition services and administration funds may be used to pay for food costs.\n\n(b)  What costs may I charge to the food grant?  (1) The State agency may use food funds for costs of:\n\n(i) Acquiring supplemental foods provided to State or local agencies or participants, whichever receives the supplemental food first;\n\n(ii) Warehousing supplemental foods; and\n\n(iii) Purchasing and renting breast pumps.\n\n(2) For costs to be allowable, the State agency must ensure that food costs do not exceed the customary sales price charged by the vendor, home food delivery contractor, or supplier in a direct distribution food delivery system. In addition, food costs may not exceed the price limitations applicable to the vendor.\n\n(c)  Specified allowable nutrition services and administration costs.  Allowable nutrition services and administration (NSA) costs include the following:\n\n(1) The cost of nutrition education and breastfeeding promotion and support which meets the requirements of \u00a7 246.11. During each fiscal year, each State agency shall expend, for nutrition education activities and breastfeeding promotion and support activities, an aggregate amount that is not less than the sum of one-sixth of the amount expended by the State agency for costs of NSA and an amount equal to its proportionate share of the national minimum expenditure for breastfeeding promotion and support activities. The amount to be spent on nutrition education shall be computed by taking one-sixth of the total fiscal year NSA expenditures. The amount to be spent by a State agency on breastfeeding promotion and support activities shall be an amount that is equal to at least its proportionate share of the national minimum breastfeeding promotion expenditure as specified in paragraph (c)(1) of this section. The national minimum expenditure for breastfeeding promotion and support activities shall be equal to $21 multiplied by the number of pregnant and breastfeeding women in the Program, based on the average of the last three months for which the Department has final data. On October 1, 1996 and each October 1 thereafter, the $21 will be adjusted annually using the same inflation percentage used to determine the national administrative grant per person. If the State agency's total reported nutrition education and breastfeeding promotion and support expenditures are less than the required amount of expenditures, FNS will issue a claim for the difference. The State agency may request prior written permission from FNS to spend less than the required portions of its NSA grant for either nutrition education or for breastfeeding promotion and support activities. FNS will grant such permission if the State agency has sufficiently documented that other resources, including in-kind resources, will be used to conduct these activities at a level commensurate with the requirements of this paragraph (c)(1). However, food costs used to purchase or rent breast pumps may not be used for this purpose. Nutrition education, including breastfeeding promotion and support, costs are limited to activities which are distinct and separate efforts to help participants understand the importance of nutrition to health. The cost of dietary assessments for the purpose of certification, the cost of prescribing and issuing supplemental foods, the cost of screening for drug and other harmful substance use and making referrals to drug and other harmful substance abuse services, and the cost of other health-related screening shall not be applied to the expenditure requirement for nutrition education and breastfeeding promotion and support activities. The Department shall advise State agencies regarding methods for minimizing documentation of the nutrition education and breastfeeding promotion and support expenditure requirement. Costs to be applied to the one-sixth minimum amount required to be spent on nutrition education and the target share of funds required to be spent on breastfeeding promotion and support include, but need not be limited to\u2014\n\n(i) Salary and other costs for time spent on nutrition education and breastfeeding promotion and support consultations whether with an individual or group;\n\n(ii) The cost of procuring and producing nutrition education and breastfeeding promotion and support materials including handouts, flip charts, filmstrips, projectors, food models or other teaching aids, and the cost of mailing nutrition education or breastfeeding promotion and support materials to participants;\n\n(iii) The cost of training nutrition or breastfeeding promotion and support educators, including costs related to conducting training sessions and purchasing and producing training materials;\n\n(iv) The cost of conducting evaluations of nutrition education or breastfeeding promotion and support activities, including evaluations conducted by contractors;\n\n(v) Salary and other costs incurred in developing the nutrition education and breastfeeding promotion and support portion of the State Plan and local agency nutrition education and breastfeeding promotion and support plans; and\n\n(vi) The cost of monitoring nutrition education and breastfeeding promotion and support activities.\n\n(2) The cost of Program certification, nutrition assessment and procedures and equipment used to determine nutritional risk, including the following:\n\n(i) Laboratory fees incurred for up to two hematological tests for anemia per individual per certification period. The first test shall be to determine anemia status. The second test may be performed only in follow up to a finding of anemia when deemed necessary for health monitoring as determined by the WIC State agency;\n\n(ii) Expendable medical supplies;\n\n(iii) Medical equipment used for taking anthropometric measurements, such as scales, measuring boards, and skin fold calipers; and for blood analysis to detect anemia, such as spectrophotometers, hematofluorometers and centrifuges; and\n\n(iv) Salary and other costs for time spent on nutrition assessment and certification.\n\n(3) The cost of outreach services.\n\n(4) The cost of administering the food delivery system, including the cost of transporting food.\n\n(5) The cost of translators for materials and interpreters.\n\n(6) The cost of fair hearings, including the cost of an independent medical assessment of the appellant, if necessary.\n\n(7) The cost of transporting participants to clinics when prior approval for using Program funds to provide transportation has been granted by the State agency and documentation that such service is considered essential to assure Program access has been filed at the State agency. Direct reimbursement to participants for transportation cost is not an allowable cost.\n\n(8) The cost of monitoring and reviewing Program operations.\n\n(9) The cost, exclusive of laboratory tests, of screening for drug and other harmful substance use and making referrals for counseling and treatment services.\n\n(10) The cost of breastfeeding aids which directly support the initiation and continuation of breastfeeding.\n\n(d)  Costs allowable with approval.  The costs of capital expenditures exceeding the dollar threshold established in Agency policy and guidance are allowable only with the approval of FNS prior to the capital investment. These expenditures include the costs of facilities, equipment (including medical equipment), automated data processing (ADP) projects, other capital assets, and any repairs that materially increase the value or useful life of such assets.\n\n(e)  Use of funds recovered from vendors, participants, or local agencies.  (1) The State agency may keep funds collected through the recovery of claims assessed against vendors, participants, or local agencies. Recovered funds include those withheld from a vendor as a result of reviews of food instruments prior to payment. Recovered funds may be used for either food or NSA costs.\n\n(2) These recovered funds may be used in the fiscal year:\n\n(i) In which the initial obligation was made;\n\n(ii) In which the claim arose;\n\n(iii) In which the funds are collected; or\n\n(iv) after the funds are collected.\n\n(3) The State agency may not credit any recoveries until:\n\n(i) In the case of a vendor claim, the vendor has had the opportunity to correct or justify the error or apparent overcharge in accordance with \u00a7 246.12(k)(3);\n\n(ii) In the case of a participant, any administrative hearing requested in accordance with \u00a7 246.9 has been completed; or\n\n(iii) In the case of a local agency claim, any administrative review requested in accordance with the local agency agreement has been completed.\n\n(4) The State agency must report vendor, participant, and local agency recoveries to FNS through the normal reporting process;\n\n(5) The State agency must keep documentation supporting the amount and use of these vendor, participant, and local agency recoveries.\n\n(f)  Use of funds received as rebates from manufacturers.  The State agency must credit and report rebate payments received from manufacturers in the month in which the payments are received."], ["7:7:4.1.1.1.10.5.1.4", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.15 Program income other than grants.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 63 FR 63974, Nov. 18, 1998; 64 FR 13324, Mar. 18, 1999; 71 FR 56731, Sept. 27, 2006; 81 FR 66494, Sept. 28, 2016]", "(a)  Interest earned on advances.  Interest earned on advances of Program funds at the State and local levels shall be treated in accordance with the provisions of 31 CFR part 205, which implement the requirements of the Cash Management Improvement Act of 1990. However, State agencies will not incur an interest liability to the Federal government on rebate funds for infant formula or other foods,  provided  that all interest earned on such funds is used for program purposes.\n\n(b)  Other Program income.  The State agency may use current program income (applied in accordance with the addition method described in 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415) for costs incurred in the current fiscal year and, with the approval of FNS, for costs incurred in previous years or subsequent fiscal years. Provided that the costs supported by the income further the broad objectives of the Program, they need not be a kind that would be permissible as charges to Federal funds. Money received by the State agency as a result of civil money penalties or fines assessed against a vendor and any interest charged in the collection of these penalties and fines shall be considered as program income."], ["7:7:4.1.1.1.10.5.1.5", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.16 Distribution of funds.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985]", "(a)  General.  This paragraph describes the timeframes for distribution of appropriated funds by the Department to participating State agencies and the authority for the Secretary to use appropriated funds for evaluation studies and demonstration projects.\n\n(1) Authorized appropriations to carry out the provisions of this section may be made not more than 1 year in advance of the beginning of the fiscal year in which the funds shall become available for disbursement to the State agencies. The funds shall remain available for the purposes for which appropriated until expended.\n\n(2) In the case of appropriations legislation providing funds through the end of a fiscal year, the Secretary shall issue to State agencies an initial allocation of funds provided under such legislation not later than the expiration of the 15-day period beginning on the date of the enactment and subsequent allocation of funds shall be issued not later than the beginning of each of the second, third and fourth quarters of the fiscal year.\n\n(3) Allocations of funds pursuant to paragraph (a)(2) of this section shall be made as follows: The initial allocation of funds to State agencies shall include not less than \n 1/3  of the appropriated amounts for the fiscal year. The allocation of funds to be made not later than the beginning of the second and third quarters shall each include not less than \n 1/4  of the appropriated amounts for the fiscal year.\n\n(4) In the case of legislation providing funds for a period that ends prior to the end of a fiscal year, the Secretary shall issue to State agencies an initial allocation of funds not later than the expiration of the 10-day period beginning on the date of enactment. In the case of legislation providing appropriations for a period of not more than 4 months, all funds must be allocated to State agencies except those reserved by the Secretary to carry out paragraph (a)(6) of this section.\n\n(5) In any fiscal year unused amounts from a prior fiscal year that are identified by the end of the first quarter of the fiscal year shall be recovered and reallocated not later than the beginning of the second quarter of the fiscal year. Unused amounts from a prior fiscal year that are identified after the end of the first quarter of the fiscal year shall be recovered and reallocated on a timely basis.\n\n(6) Up to one-half of one percent of the sums appropriated for each fiscal year, not to exceed $5,000,000, shall be available to the Secretary for the purpose of evaluating Program performance, evaluating health benefits, providing technical assistance to improve State agency administrative systems, preparing reports on program participant characteristics, and administering pilot projects, including projects designed to meet the special needs of migrants, Indians, rural populations, and to carry out technical assistance and research evaluation projects for the WIC Farmers' Market Nutrition Program.\n\n(b)  Distribution and application of grant funds to State agencies.  Notwithstanding any other provision of law, funds made available to the State agencies for the Program in any fiscal year will be managed and distributed as follows:\n\n(1) The State agency shall ensure that all Program funds are used only for Program purposes. As a prerequisite to the receipt of funds, the State agency shall have executed an agreement with the Department and shall have received approval of its State Plan.\n\n(2) Notwithstanding any other provision of law, all funds not made available to the Secretary in accordance with paragraph (a)(6) of this section shall be distributed to State agencies on the basis of funding formulas which allocate funds to all State agencies for food costs and NSA costs incurred during the fiscal year for which the funds had been made available to the Department. Final State agency grant levels as determined by the funding formula and State agency breastfeeding promotion and support expenditure targets will be issued in a timely manner.\n\n(3)  When may I transfer funds from one fiscal year to another? \u2014(i)  Back spend authority.  The State agency may back spend into the prior fiscal year up to an amount equal to one percent of its current year food grant and one percent of its current year NSA grant. Food funds spent back may be used only for food costs incurred during the prior fiscal year. NSA funds spent back may be used for either food or NSA costs incurred during the prior fiscal year. With prior FNS approval, the State agency may also back spend food funds up to an amount equal to three percent of its current year food grant in a fiscal year for food costs incurred in the prior fiscal year. FNS will approve such a request only if FNS determines there has been a significant reduction in infant formula cost containment savings that affected the State agency's ability to maintain its participation level.\n\n(ii)  Spend forward authority.  (A) The State agency may spend forward NSA funds up to an amount equal to three (3) percent of its total grant (NSA plus food grants) in any fiscal year. These NSA funds spent forward may be used only for NSA costs incurred in the next fiscal year. Any food funds that the State agency converts to NSA funds pursuant to paragraph (f) of this section (based on projected or actual participation increases during a fiscal year) may not be spent forward into the next fiscal year. With prior FNS approval, the State agency may spend forward additional NSA funds up to an amount equal to one-half of one percent of its total grant. These funds are to be used in the next fiscal year for the development of a management information system, including an electronic benefit transfer system.\n\n(B) Funds spent forward will not affect the amount of funds allocated to the State agency for any fiscal year. Funds spent forward must be the first funds expended by the State agency for costs incurred in the next fiscal year.\n\n(iii)  Reporting requirements.  In addition to obtaining prior FNS approval for certain spend forward/back spending options, the State agency must report to FNS the amount of all funds it already has or intends to back spend and spend forward. The spending options must be reported at closeout.\n\n(c)  Allocation formula.  State agencies shall receive grant allocations according to the formulas described in this paragraph. To accomplish the distribution of funds under the allocation formulas, State agencies shall furnish the Department with any necessary financial and Program data.\n\n(1)  Use of participation data in the formula.  Wherever the formula set forth in paragraphs (c)(2) and (c)(3) of this section require the use of participation data, the Department shall use participation data reported by State agencies according to \u00a7 246.25(b).\n\n(2)  How is the amount of NSA funds determined?  The funds available for allocation to State agencies for NSA for each fiscal year must be sufficient to guarantee a national average per participant NSA grant, adjusted for inflation. The amount of the national average per participant grant for NSA for any fiscal year will be an amount equal to the national average per participant grant for NSA issued for the preceding fiscal year, adjusted for inflation. The inflation adjustment will be equal to the percentage change between two values. The first is the value of the index for State and local government purchases, 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. The second is the best estimate that is available at the start of the fiscal year of the value of such index for the 12-month period ending June 30 of the previous fiscal year. Funds for NSA costs will be allocated according to the following procedure:\n\n(i)  Fair share target funding level determination.  For each State agency, FNS will establish, using all available NSA funds, an NSA fair share target funding level which is based on each State agency's average monthly participation level for the fiscal year for which grants are being calculated, as projected by FNS. Each State agency receives an adjustment to account for the higher per participant costs associated with small participation levels and differential salary levels relative to a national average salary level. The formula shall be adjusted to account for these cost factors in the following manner: 90 percent of available funds shall provide compensation based on rates which are proportionately higher for the first 15,000 or fewer participants, as projected by FNS, and 10 percent of available funds shall provide compensation based on differential salary levels, as determined by FNS.\n\n(ii)  Base funding level.  To the extent funds are available and subject to the provisions of paragraph (c)(2)(iv) of this section, each State agency shall receive an amount equal to 100 percent of the final formula-calculated NSA grant of the preceding fiscal year, prior to any operational adjustment funding allocations made under paragraph (c)(2)(iv) of this section. If funds are not available to provide all State agencies with their base funding level, all State agencies shall have their base funding level reduced by a pro-rata share as required by the shortfall of available funds.\n\n(iii)  Fair share allocation.  Any funds remaining available for allocation for NSA after the base funding level required by paragraph (c)(2)(ii) of this section has been completed and subject to the provisions of paragraph (c)(2)(iv) of this section shall be allocated to bring each State agency closer to its NSA fair share target funding level. FNS shall make fair share allocation funds available to each State agency based on the difference between the NSA fair share target funding level and the base funding level, which are determined in accordance with paragraphs (c)(2)(i) and (c)(2)(ii) of this section, respectively. Each State agency's difference shall be divided by the sum of the differences for all State agencies, to determine the percent share of the available fair share allocation funds each State agency shall receive.\n\n(iv)  Operational adjustment funds.  Each State agency's final NSA grant shall be reduced by up to 10 percent, and these funds shall be aggregated for all State agencies within each FNS region to form an operational adjustment fund. The Regions shall allocate these funds to State agencies according to national guidelines and shall consider the varying needs of State agencies within the region.\n\n(v)  Operational level.  The sum of each State agency's stability, residual and operational adjustment funds shall constitute the State agency's operational level. This operational level shall remain unchanged for such year even if the number of Federally-supported participants in the program at such State agency is lower than the Federally-projected participation level. However, if the provisions of paragraph (e)(2)(ii) of this section are applicable, a State agency will have its operational level for NSA reduced in the immediately succeeding fiscal year.\n\n(3)  Allocation of food benefit funds.  In any fiscal year, any amounts remaining from amounts appropriated for such fiscal year and amounts appropriated from the preceding fiscal year after making allocations under paragraph (a)(6) of this section and allocations for nutrition services and administration (NSA) as required by paragraph (c)(2) of this section shall be made available for food costs. Allocations to State agencies for food costs will be determined according to the following procedure:\n\n(i)  Fair share target funding level determination.  (A) For each State agency, FNS will establish a fair share target funding level which shall be an amount of funds proportionate to the State agency's share of the national aggregate population of persons who are income eligible to participate in the Program based on the 185 percent of poverty criterion. The Department will determine each State agency's population of persons categorically eligible for WIC which are at or below 185% of poverty, through the best available, nationally uniform, indicators as determined by the Department. If the Commodity Supplemental Food Program (CSFP) also operates in the area served by the WIC State agency, the number of participants in such area participating in the CSFP but otherwise eligible to participate in the WIC Program, as determined by FNS, shall be deducted from the WIC State agency's population of income eligible persons. If the State agency chooses to exercise the option in \u00a7 246.7(c)(2) to limit program participation to U.S. citizens, nationals, and qualified aliens, FNS will reduce the State agency's population of income eligible persons to reflect the number of aliens the State agency declares no longer eligible.\n\n(B) The Department may adjust the respective amounts of food funds that would be allocated to a State agency which is outside the 48 contiguous states and the District of Columbia when the State agency can document that economic conditions result in higher food costs for the State agency. Prior to any such adjustment, the State agency must demonstrate that it has successfully implemented voluntary cost containment measures, such as improved vendor management practices, participation in multi-state agency infant formula rebate contracts or other cost containment efforts. The Department may use the Thrifty Food Plan amounts used in SNAP, or other available data, to formulate adjustment factors for such State agencies.\n\n(ii)  Prior year grant level allocation.  To the extent funds are available, each State agency shall receive a prior year grant allocation equal to its final authorized grant level as of September 30 of the prior fiscal year. If funds are not available to provide all State agencies with their full prior year grant level allocation, all State agencies shall have their full prior year grant level allocation reduced by a pro-rata share as required by the shortfall of available funds.\n\n(iii)  Inflation/fair share allocation.  (A) If funds remain available after the allocation of funds under paragraph (c)(3)(ii) of this section, the funds shall be allocated as provided in this paragraph (c)(3)(iii). First, FNS will calculate a target inflation allowance by applying the anticipated rate of food cost inflation, as determined by the Department, to the prior year grant funding level. Second, FNS will allocate 80 percent of the available funds to all State agencies in proportionate shares to meet the target inflation allowance. Third, FNS will allocate 20 percent of the available funds to each State agency which has a prior year grant level allocation, as determined in paragraph (c)(3)(ii) of this section and adjusted for inflation as determined in this paragraph (c)(3)(iii), which is still less than its fair share target funding level. The amount of funds allocated to each State agency shall be based on the difference between its prior year grant level allocation plus target inflation funds and the fair share funding target level. Each State agency's difference shall be divided by the sum of the differences for all such State agencies, to determine the percentage share of the 20 percent of available funds each State agency shall receive. In the event a State agency declines any of its allocation under either this paragraph (c)(3)(iii) or paragraph (c)(3)(ii) of this section, the declined funds shall be reallocated in the percentages and manner described in this paragraph (c)(3)(iii). Once all State agencies receive allocations equal to their full target inflation allowance, any remaining funds shall be allocated or reallocated, in the manner described in this paragraph (c)(3)(iii), to those State agencies still under their fair share target funding level.\n\n(B) In the event funds still remain after completing the distribution in paragraph (c)(3)(iii)(A) of this section, these funds shall be allocated to all State agencies including those with a stability allocation at, or greater than, their fair share allocation. Each State agency which can document the need for additional funds shall receive additional funds based on the difference between its prior year grant level and its fair share allocation. State agencies closest to their fair share allocation shall receive first consideration.\n\n(iv)  Migrant services.  At least \n 9/10  of one percent of appropriated funds for each fiscal year shall be available first to assure service to eligible members of migrant populations. For those State agencies serving migrants, a portion of the grant shall be designated to each State agency for service to members of migrant populations based on that State agency's prior year reported migrant participation. The national aggregate amount made available first for this purpose shall equal \n 9/10  of one percent of all funds appropriated each year for the Program.\n\n(v)  Special provisions for Indian State agencies.  The Department may choose to adjust the allocations and/or eligibles data among Indian State agencies, or among Indian State agencies and the geographic State agencies in which they are located when eligibles data for the State agencies' population is determined to not fairly represent the population to be served. Such allocations may be redistributed from one State agency to another, based on negotiated agreements among the affected State agencies approved by FNS.\n\n(4)  Adjustment for new State agencies.  Whenever a State agency that had not previously administered the program enters into an agreement with the Department to do so during a fiscal year, the Department shall make any adjustments to the requirements of this section that are deemed necessary to establish an appropriate initial funding level for such State agency.\n\n(d)  Distribution of funds to local agencies.  The State agency shall 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. The State agency shall distribute the funds based on claims submitted at least quarterly by the local agency. Where the State agency advances funds to local agencies, the State agency shall ensure that each local agency has funds to cover immediate disbursement needs, and the State agency shall offset the advances made against incoming claims as they are submitted to ensure that funding levels reflect the actual expenditures reported by the local agency. Upon receipt of Program funds from the Department, the State agency shall take the following actions:\n\n(1) Distribute funds to cover expected food cost expenditures and/or distribute caseload targets to each local agency which are used to project food cost expenditures.\n\n(2) Allocate funds to cover expected local agency NSA costs in a manner which takes into consideration each local agency's needs. For the allocation of NSA funds, the State agency shall develop an NSA funding procedure, in cooperation with representative local agencies, which takes into account the varying needs of the local agencies. The State agency shall consider the views of local agencies, but the final decision as to the funding procedure remains with the State agency. The State agency shall take into account factors it deems appropriate to further proper, efficient and effective administration of the program, such as local agency staffing needs, density of population, number of persons served, and availability of administrative support from other sources.\n\n(3) The State agency may provide in advance to any local agency any amount of funds for NSA deemed necessary for the successful commencement or significant expansion of program operations during a reasonable period following approval of a new local agency, a new cost containment measure, or a significant change in an existing cost containment measure.\n\n(e)  Recovery and reallocation of funds.  (1) Funds may be recovered from a State agency at any time the Department determines, based on State agency reports of expenditures and operations, that the State agency is not expending funds at a rate commensurate with the amount of funds distributed or provided for expenditures under the Program. Recovery of funds may be either voluntary or involuntary in nature. Such funds shall be reallocated by the Department through application of appropriate formulas set forth in paragraph (c) of this section.\n\n(2)  Performance standards.  The following standards shall govern expenditure performance.\n\n(i) The amount allocated to any State agency for food benefits in the current fiscal year shall be reduced if such State agency's food expenditures for the preceding fiscal year do not equal or exceed 97 percent of the amount allocated to the State agency for such costs. Such reduction shall equal the difference between the State agency's preceding year food expenditures and the performance expenditure standard amount. For purposes of determining the amount of such reduction, the amount allocated to the State agency for food benefits for the preceding fiscal year shall not include food funds expended for food costs incurred under the spendback provision in paragraph (b)(3)(i) of this section or conversion authority in paragraph (g) of this section. Temporary waivers of the performance standard may be granted at the discretion of the Department.\n\n(ii)  Reduction of NSA grant.  FNS will reduce the State agency's NSA grant for the next fiscal year if the State agency's current fiscal year per participant NSA expenditure is more than 10 percent higher than its per participant NSA grant. To avoid a reduction to its NSA grant level, the State agency may submit a \u201cgood cause\u201d justification explaining why it exceeded the applicable limit on excess NSA expenditures. This justification must be submitted at the same time as the close-out report for the applicable fiscal year. Good cause may include dramatic and unforeseen increases in food costs, which would prevent a State agency from meeting its projected participation level.\n\n(iii)  Spend forward funds.  If any State agency notifies the Department of its intent to spend forward a specific amount of funds for expenditure in the subsequent fiscal year, in accordance with paragraph (b)(3)(ii) of this section, such funds shall not be subject to recovery by the Department.\n\n(f)  How do I qualify to convert food funds to NSA funds based on increased participation? \u2014(1)  Requirements.  The State agency qualifies to convert food funds to NSA funds based on increased participation in any fiscal year in two ways:\n\n(i)  Approved plan.  A State agency may submit a plan to FNS to reduce average food costs per participant and to increase participation above the FNS-projected level for the State agency. If approved, the State agency may use funds allocated for food costs to pay NSA costs.\n\n(ii)  Participation increases achieved.  The State agency may also convert food funds to NSA funds in any fiscal year if it achieves, through acceptable measures, increases in participation in excess of the FNS-projected level for the State agency. Acceptable measures include use of cost containment measures, curtailment of vendor abuse, and breastfeeding promotional activities. FNS will disallow the State agency's conversion of food funds to NSA funds in accordance with paragraph (h) of this section if:\n\n(A) The State agency increases its participation level through measures that are not in the nutritional interests of participants; or\n\n(B) It is not otherwise allowable under program regulations.\n\n(2)  Limitation.  The State agency may convert food funds only to the extent that the conversion is necessary\u2014\n\n(i) To cover NSA expenditures in the current fiscal year that exceed the State agency's NSA grant for the current fiscal year and any NSA funds which the State agency has spent forward into the current fiscal year; and\n\n(ii) To ensure that the State agency maintains the level established for the per participant NSA grant for the current fiscal year.\n\n(3)  Maximum amount.  The maximum amount the State agency may convert equals the State agency's conversion rate times the projected or actual participation increase, as applicable. The conversion rate is the same as the per participant NSA grant and is determined by dividing the State agency's NSA grant by the FNS-projected participation level. The NSA grant used in the calculation equals the initial allocation of current year funds plus the operational adjustment funding allocated to the State agency for that fiscal year.\n\n(g)  How do I qualify to convert food funds to NSA funds for service to remote Indian or Native villages? \u2014(1)  Eligible State agencies.  Only State agencies located in noncontiguous States containing a significant number of remote Indian or Native villages qualify to convert food funds to NSA funds under this paragraph (g) in any fiscal year.\n\n(2)  Limitation.  In the current fiscal year, food funds may be converted only to the extent necessary to cover expenditures incurred:\n\n(i) In providing services (including the full cost of air transportation and other transportation) to remote Indian or Native villages; and\n\n(ii) To provide breastfeeding support in those areas that exceed the State agency's NSA grant for the current fiscal year and any NSA funds which the State agency has spent forward into the current fiscal year.\n\n(h)  What happens at the end of the fiscal year in which food funds are converted?  At the end of the fiscal year, the Department will determine the amount of food funds which the State agency was entitled to convert to NSA funds under paragraphs (f) and (g) of this section. In the event that the State agency has converted more than the permitted amount of funds, the Department will disallow the amount of excess conversion.\n\n(i)  How do converted funds affect the calculation of my prior year food grant and base NSA grant?  For purposes of establishing a State agency's prior year food grant and base NSA grant under paragraphs (c)(2)(i) and (c)(3)(i) of this section, respectively, amounts converted from food funds to NSA funds under paragraphs (f) and (g) of this section and \u00a7 246.14(e) during the preceding fiscal year will be treated as though no conversion had taken place.\n\n(j)  Inflation adjustment of the fruit and vegetable voucher.  The monthly cash value of the fruit and vegetable voucher shall be adjusted annually for inflation. Adjustments are effective the first day of each fiscal year beginning on or after October 1 each year. The inflation-adjusted value of the voucher shall be equal to a base value increased by a factor based on the Consumer Price Index for All Urban Consumers (CPI-U) for fresh fruits and vegetables, as provided in this section.\n\n(1)  Adjustment year.  The adjustment year is the fiscal year that begins October 1 of the current calendar year.\n\n(2)  Base value of the fruit and vegetable voucher.  The base year for calculation of the value of the fruit and vegetable voucher is fiscal year 2022. The base value to be used equals:\n\n(i) $24 for children;\n\n(ii) $43 for pregnant and postpartum women; and\n\n(iii) $47 for breastfeeding (fully and partially (mostly)) women.\n\n(3)  Adjusted value of the fruit and vegetable voucher.  The adjusted value of the fruit and vegetable voucher is the cash value of the voucher for adjustment years beginning on or after October 1, 2022. The adjusted value is the base value increased by an amount equal to the base value of the fruit and vegetable voucher:\n\n(i) Multiplied by the inflation adjustment described in paragraph (j)(4) of this section; and\n\n(ii) Subject to rounding as described in paragraph (j)(5) of this section.\n\n(4)  Inflation adjustment.  The inflation adjustment of the fruit and vegetable voucher shall equal the percentage (if any) by which the annual average value of the Consumer Price Index for fresh fruits and vegetables, computed from monthly values published by the Bureau of Labor Statistics, for the twelve months ending on March 31 of the fiscal year immediately prior to the adjustment year, exceeds the average of the monthly values of that index for the twelve months ending on March 31, 2021.\n\n(5)  Rounding.  If any increase in the cash value of the voucher determined under paragraph (j)(3) of this section is not a multiple of $1, such increase shall be rounded to the next lowest multiple of $1. However, if the adjusted value of the voucher for the adjustment year, as determined under paragraph (j)(3) of this section, is lower than the adjusted value for the fiscal year immediately prior to the adjustment year, then the adjusted value of the voucher will remain unchanged from that immediate prior fiscal year."], ["7:7:4.1.1.1.10.5.1.6", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.16a Infant formula and authorized foods cost containment.", "FNS", "", "", "[65 FR 51224, Aug. 23, 2000, as amended at 73 FR 11313, Mar. 3, 2008; 73 FR 21811, Apr. 23, 2008; 76 FR 59889, Sept. 28, 2011; 88 FR 86562, Dec. 14, 2023; 90 FR 58508, Dec. 17, 2025]", "(a)  Who must use cost containment procedures for infant formula?  All State agencies must continuously operate a cost containment system for infant formula that is implemented in accordance with this section except:\n\n(1) State agencies with home delivery or direct distribution food delivery systems;\n\n(2) Indian State agencies with 1,000 or fewer participants in April of any fiscal year, which are exempt for the following fiscal year;\n\n(3) State agencies granted a waiver under paragraph (e) of this section; and\n\n(4) State agencies granted a postponement under paragraph (f) of this section.\n\n(b)  What cost containment procedures must be used?  State agencies must use either a single-supplier competitive system as outlined in paragraph (c) of this section, or an alternative cost containment system as outlined in paragraph (d) of this section.\n\n(c)  What is the single-supplier competitive system?  (1) Under the single-supplier competitive system, a State agency solicits sealed bids from infant formula manufacturers to supply and provide a rebate for infant formulas. The State agency must conduct the procurement in a manner that maximizes full and open competition consistent with the requirements of this section. A State agency must:\n\n(i) Provide a minimum of 30 days between the publication of the solicitation and the date on which the bids are due, unless exempted by the Secretary; and\n\n(ii) Publicly open and read all bids aloud on the day the bids are due.\n\n(2)  How must a State agency structure the bid solicitation?  (i)  Single solicitation.  Under the single solicitation system, the State agency's bid solicitation must require the winning bidder to supply and provide a rebate on all infant formulas it produces that the State agency chooses to issue, except exempt infant formulas. Rebates must also be paid on any new infant formulas that are introduced after the contract is awarded. The solicitation must require bidders that do not produce a soy-based infant formula to subcontract with another manufacturer to supply a soy-based infant formula under the contract. In this case, the bid solicitation must require that the winning bidder pay the State agency a rebate on the soy-based infant formula supplied by the subcontractor that is issued by the State agency. The bid solicitation must require all rebates (including those for soy-based infant formula supplied by a subcontractor) to be calculated in accordance with paragraph (c)(6) of this section. All of these infant formulas are called contract brand infant formulas.\n\n(ii)  Separate solicitations.  Under the separate solicitation system, a State agency issues two bid solicitations. Any State agency or alliance that served a monthly average of more than 100,000 infants during the preceding 12-month period shall issue separate bid solicitations for milk-based and soy-based infant formula. The first solicitation must require the winning bidder to supply and provide a rebate on all milk-based infant formulas it produces that the State agency chooses to issue, except exempt infant formulas. Rebates must also be paid on any new milk-based infant formulas that are introduced by the manufacturer after the contract is awarded. These infant formulas are considered to be contract brand infant formulas. The second bid solicitation must require the winning bidder to supply and provide a rebate on all soy-based infant formulas it produces that the State agency chooses to issue. Rebates must also be paid on any new soy-based infant formulas that are introduced by the manufacturer after the contract is awarded. These infant formulas are also considered to be contract brand infant formulas.\n\n(3)  What is the size limitation for a State alliance?  A State alliance may exist among State agencies if the total number of infants served by States participating in the alliance as of October 1, 2003, or such subsequent date determined by the Secretary for which data is available, does not exceed 100,000. However, a State alliance that existed as of July 1, 2004, and serves over 100,000 infants may exceed this limit to include any State agency that served less than 5,000 infants as of October 1, 2003, or such subsequent date determined by the Secretary for which data is available, and/or any Indian State agency. The bid solicitation must identify the composition of the State alliances for the purpose of a cost containment measure, and verify that no additional State shall be added to the State alliance between the date of the bid solicitation and the end of the contract. The Secretary may waive these requirements not earlier than 30 days after submitting to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a written report that describes the cost-containment and competitive benefits of the proposed waiver.\n\n(4)  On what types and physical forms of infant formula must bids be solicited?  The bid solicitation must require bidders to specify a rebate for each of the types and physical forms of infant formulas specified in the following chart. These rebates apply proportionally to other infant formulas produced by the winning bidder(s) (see paragraph (c)(6) of this section).\n\n(5) A State agency must award the contract(s) to the responsive bidder(s) offering the lowest total monthly net price for infant formula or the highest monthly rebate (subject to paragraph(c)(4)(ii) of this section) for a standardized number of units of infant formula. To be responsive, a bidder must submit a bid by the deadline set by the State agency that conforms to the solicitation and must meet requirements at 246.16a and set forth in the bid solicitation. The State agency must calculate the lowest net price using the lowest national wholesale cost per unit for a full truckload of the infant formula on the date of the bid opening.\n\n(i)  Calculating the standardized number of units of infant formula.  The State agency must specify a standardized number of units ( e.g.,  cans) of infant formula by physical form ( e.g.,  concentrated liquid, powdered, and ready-to-feed) to be bid upon. The standardized number of units must contain the equivalent of the total number of ounces by physical form needed to give the maximum allowance to the average monthly number of infants using each form. The number of infants does not include infant participants who are exclusively breastfed and those who are issued exempt infant formula. The average monthly number of infants using each physical form must be based on at least 6 months of the most recent participation and issuance data. In order to calculate the standardized number of units of infant formula by form to be bid upon, the average monthly number of infants using each physical form is multiplied by the maximum monthly allowable number of ounces for each form (as allowed under table 1 to \u00a7 246.10(e)(9)), and divided by the corresponding unit size ( i.e.,  number of ounces per unit being bid). In order to compare bids, total cost is calculated by multiplying this standardized number of units by the net price for each physical form. Alternative calculations that arrive at a mathematically equivalent result are acceptable.\n\n(ii)  Determining the lowest total monthly net price or highest rebate.  To determine the lowest total monthly net price a State agency must multiply the net price per unit by the established standardized amount of infant formula to be bid upon as calculated in paragraph (c)(4)(i) of this section. If the bid evaluation is based on highest rebate offered, the State agency must multiply the rebate offered by the established amount of infant formula to be bid upon as calculated in paragraph (c)(4)(i) of this section.\n\n(iii)  Highest rebate limitation.  Before issuing the bid solicitation, a State agency that elects to evaluate bids by highest rebate must demonstrate to FNS's satisfaction that the weighted average retail prices for different brands of infant formula in the State vary by 5 percent or less. The weighted average retail price must take into account the prices charged for each type and physical form of infant formula by authorized vendors or, if a State agency elects, it may include stores that do not participate in the WIC program in the State. The State agency must also base calculations on the proportion of each type and physical form of infant formula the State agency issues based on the data provided to bidders pursuant to paragraph (c)(5) of this section.\n\n(6)  What data must be provided to bidders?  The State agency must provide as part of the bid solicitation the participation and infant formula usage data and the standardized number of ounces by physical form of infant formula to be used in evaluating bids as described in paragraph (c)(4) of this section. The State agency must notify bidders that the participation and infant formula usage data does not necessarily reflect the actual issuance and redemption that will occur under the contract.\n\n(7)  How is the rebate to be calculated on all other contract brand infant formulas?  All bids must specify the rebates offered by each bidder for the primary contract infant formula(s). After the contract is awarded, the State agency must calculate the percentage discount for all other contract brand infant formulas (i.e., all other infant formulas produced by the bidder other than exempt infant formulas) approved for issuance by the State agency. The State agency must use the following method in calculating the rebates:\n\n(i)  Calculation of percentage discounts.  Rebates for contract brand infant formulas, other than the primary contract infant formula(s) for which bids were received, must be calculated by first determining the percentage discount for each physical form (e.g., concentrated liquid, powdered, and ready-to-feed) of the primary contract infant formula(s). The percentage discount must be calculated by dividing the rebate for the primary contract infant formula by the manufacturer's lowest national wholesale price per unit, as of the date of the bid opening, for a full truckload of the primary contract infant formula. The percentage discounts must be used to determine the rebate for all other contract brand infant formulas approved for issuance by the State agency.\n\n(ii)  Calculation of rebate amount.  The rebate for each type and form of all other contract brand infant formulas must be calculated by multiplying the percentage discount by the manufacturer's lowest national wholesale price per unit, as of the date of the bid opening, for a full truckload of the other contract brand infant formula. The percentage discount used for each of the other contract brand infant formulas depends on the physical form of the infant formula. For example, if the percentage discount provided for the primary contract brand powdered infant formula is 80 percent of its wholesale price, the same percentage discount must be applied to all other contract brand powdered infant formulas. The rebate for any types or forms of contract brand infant formulas that are introduced during the contract period must be calculated using the wholesale prices of these new contract brand infant formulas at the time the infant formulas are approved for issuance by the State agency.\n\n(iii)  Calculation of rebates during contract term.  The rebates resulting from the application of the percentage discount must remain the same throughout the contract period except for the cent-for-cent rebate adjustments required in paragraph (c)(6)(iv) of this section.\n\n(iv)  Cent-for-cent rebate adjustments.  Bid solicitations must require the manufacturer to adjust rebates for price changes subsequent to the bid opening. Price adjustments must reflect any increase and decrease, on a cent-for-cent basis, in the manufacturer's lowest national wholesale prices for a full truckload of infant formula.\n\n(8)  What is the first choice of issuance for infant formula?  The State agency must use the primary contract infant formula(s) as the first choice of issuance (by physical form), with all other infant formulas issued as an alternative (see \u00a7 246.10(e)(1)(iii)).\n\n(9)  Under what circumstances may the State agency issue other contract brand formulas?  Except as required in paragraph (c)(7) of this section, the State agency may choose to approve for issuance some, none, or all of the winning bidder's other infant formula(s). In addition, the State agency may require medical documentation before issuing any contract brand infant formula, except as provided in paragraph (c)(7) of this section (see \u00a7 246.10(c)(1)(i)) and must require medical documentation before issuing any WIC formula covered by \u00a7 246.10(c)(1)(iii).\n\n(d)  What is an alternative cost containment system?  Under an alternative cost containment system, a State agency elects to implement an infant formula cost containment system of its choice. The State agency may only implement an alternative system if such a system provides a savings equal to or greater than a single-supplier competitive system. A State agency must conduct a cost comparison demonstrating such savings as described in paragraphs (d)(1) and (d)(2) of this section.\n\n(1)  How must the State agency structure the bid solicitation?  The State agency must solicit bids simultaneously using the single-supplier competitive system described in paragraph (c) of this section and the alternative cost containment system(s) the State agency has selected. The State agency may prescribe standards of its choice for the alternative cost containment system(s), provided that conditions established for each system addressed in the bid solicitation include identical bid specifications for the contract period length and the types and forms of infant formula(s) to be included in the systems. In addition, the alternative cost containment system must cover the types and forms of infant formulas routinely issued to the majority of generally healthy, full-term infants. The State agency must use the procedure outlined in paragraph (d)(2) of this section in conducting a cost comparison to determine which system offers the greatest savings over the entire contract period specified in the bid solicitation.\n\n(2)  How does the State agency conduct the cost comparison?  (i)  Establishing infant formula cost containment savings.  (A)  Savings under the single-supplier competitive system.  The State agency must project food cost savings in the single-supplier competitive system based on the lowest monthly net price or highest monthly rebate, as described in paragraph (c)(4) of this section.\n\n(B)  Savings under an alternative cost containment system.  The State agency must project food cost savings under alternative cost containment systems based on the lowest monthly net cost or highest monthly rebate, as described in paragraph (c)(4) of this section. Food cost savings must be based on the standardized amount of infant formula expected to be issued as calculated for a single-supplier competitive system, prorated by the percentage of anticipated total infant formula purchases attributable to each manufacturer. The State agency must use the aggregate market share of the manufacturers submitting bids in calculating its cost savings estimate.\n\n(C)  General.  In establishing the potential food cost savings under each system, the State agency must take into consideration in its estimate of savings any inflation factors which would affect the amount of savings over the life of the contract. Further, the State agency must not subtract any loss of payments which would occur under the terms of a current contract as a result of any State agency action to be effective after expiration of the contract.\n\n(ii)  Nutrition services and administration cost adjustment.  The State agency must deduct from the food cost savings projected for each system under this paragraph (d) the nutrition services and administration costs associated with developing and implementing\u2014but not operating\u2014each cost containment system. This includes any anticipated costs for modifying its automated data processing system or components of its food delivery system(s), and of training participants, local agencies, vendors, and licensed health care professionals on the purpose and procedures of the new system. For contracts of two years or less, such costs must be proportionately distributed over at least a two year period. The State agency must not deduct any costs associated with procurement. The State agency must itemize and justify all nutrition services and administration cost adjustments as necessary and reasonable for the development and implementation of each system.\n\n(iii)  Final cost comparison.  The State agency must calculate the food costs savings and deduct the appropriate nutrition services and administration costs for each system for which bids were received. The State agency must implement the single-supplier competitive system, unless its comparative cost analysis shows that, over the length of the contract stipulated in the bid solicitation, an alternative cost containment system offers savings at least equal to, or greater than, those under the competitive single-supplier system. If the comparative cost analysis permits selection of the alternative cost containment system and the State agency wishes to implement that system, it must first submit a State Plan amendment with the calculations and supporting documentation for this cost analysis to FNS for approval. Only after the calculations are approved by FNS may the State agency award the contract or contracts under the alternative cost containment system.\n\n(e)  How does a State agency request a waiver of the requirement for a single-supplier competitive system?  A State agency which, after completing the cost comparison in paragraphs (d)(2)(i) through (d)(2)(iii) of this section, is required to implement the single-supplier competitive cost containment system for infant formula procurement, may request a waiver from FNS to permit it to implement an alternative system. State agencies must support all waiver requests with documentation in the form of a State Plan amendment as required under \u00a7 246.4(a)(14)(x) and may submit such requests only in either of the following circumstances:\n\n(1) The difference between the single-supplier competitive system and the alternative cost containment system is less than 3 percent of the savings anticipated under the latter system and not more than $100,000 per annum.\n\n(2) The single-supplier competitive system would be inconsistent with the efficient or effective operation of the program. Examples of justifications FNS will not accept for a waiver, include, but are not limited to: preservation of participant preference for otherwise nutritionally equivalent infant formulas; maintenance of health care professionals' prerogatives to prescribe otherwise nutritionally equivalent infant formulas for non-medical reasons; potential loss of free or otherwise discounted materials to WIC clinics and other health care facilities; potential inability of a manufacturer selected in accordance with applicable State procurement procedures to supply contractually-specified amounts of infant formula; and the possibility of interrupted infant formula supplies to retail outlets as a consequence of entering into a contract with a single manufacturer.\n\n(f)  How does a State agency request a postponement of the requirement for a continuously operated cost containment system for infant formula?  A State agency may request a postponement of the requirement to continuously operate a cost containment system for infant formula that has been implemented in accordance with this section. However, a State agency may only request a postponement when it has taken timely and responsible action to implement a cost containment system before its current system expires but has been unable to do so due to procurement delays, disputes with FNS concerning cost containment issues during the State Plan approval process or other circumstances beyond its control. The written postponement request must be submitted to FNS before the expiration of the current system. The postponement period may be no longer than 120 days. If a postponement is granted, the State agency may extend, renew or otherwise continue an existing system during the period of the postponement.\n\n(g)  May a State agency implement cost containment systems for other supplemental foods?  Yes, when a State agency finds that it is practicable and feasible to implement a cost containment system for any WIC food other than infant formula. The State agency must:\n\n(1) Provide notification to FNS by means of the State agency's State Plan.\n\n(2) Comply with paragraphs (c)(2) and (k) of this section.\n\n(3) Provide a minimum of 30 days between the publication of the solicitation and the date on which the bids are due, unless exempted by the Secretary. The State must publicly open and read all bids aloud on the day the bids are due.\n\n(4) Issue separate solicitations for authorized foods if any alliance served a monthly average of more than 100,000 infants during the preceding 12-month period.\n\n(h)  What are the implementation time frames for Indian State agencies that lose their exemption from the infant formula cost containment requirement?  If an Indian State agency operating a retail food delivery system expands its program participation above 1000 and thereby loses its exemption from the requirements of paragraph (a) of this section regarding the method of cost containment for infant formula, then the Indian State agency must begin compliance with paragraph (a) of this section in accordance with time frames established by FNS.\n\n(i)  What are the penalties for failure to comply with the cost containment requirements?  Any State agency that FNS determines to be out of compliance with the cost containment requirements of this part must not draw down on or obligate any Program grant funds, nor will FNS make any further Program funds available to such State agency, until it is in compliance with these requirements.\n\n(j)  What provisions are prohibited to be included in cost containment contracts?  A State agency may not issue bid solicitations or enter into contracts which:\n\n(1) Prescribe conditions that would void, reduce the savings under or otherwise limit the original contract if the State agency solicited or secured bids for, or entered into, a subsequent cost containment contract to take effect after the expiration of the original contract;\n\n(2) Does not include the registration and certification requirements in \u00a7 246.10(g);\n\n(3) Require infant formula manufacturers to submit bids on more than one of the systems specified in the invitation for bids; or\n\n(4) Require infant formula manufacturers to provide gratis infant formula or other items.\n\n(k)  What are the requirements for infant formula and authorized food rebate invoices?  A State agency must have a system in place that ensures infant formula and authorized food rebate invoices, under competitive bidding, provide a reasonable estimate or an actual count of the number of units purchased by participants in the program.\n\n(l)  What are the requirements for the national cost containment bid solicitation and selection for infant formula?  FNS will solicit and select bids for infant formula rebates on behalf of State agencies with retail food delivery systems based on the following guidelines:\n\n(1) FNS will solicit bids and select the winning bidder(s) for infant formula cost containment contracts only if two or more State agencies with retail food delivery systems request FNS to conduct bid solicitation and selection on their behalf. FNS will conduct the bid solicitation and selection process only and will not award or enter into any infant formula cost containment contract on behalf of the individual State agencies. Each State agency will individually award and enter into infant formula cost containment contract(s) with the winning bidder(s). State agencies must obtain the rebates directly from the infant formula manufacturer(s). FNS will conduct the bid solicitation in accordance with this paragraph (l) and the competitive bidding procurement procedures of the State agency with the highest infant participation in the bid group on whose behalf bids are being solicited. Any bid protests and contractual disputes are the responsibility of the individual State agencies to resolve.\n\n(2) FNS will make a written offer to all State agencies to conduct bid solicitation and selection on their behalf at least once every 12 months. FNS will send State agencies a copy of the draft Request for Rebates when making the offer to State agencies. Only State agencies that provide the information required by this paragraph (l)(2) in writing, signed by a responsible State agency official, by certified mail, return receipt requested or by hand delivery with evidence of receipt within 15 days of receipt of the offer will be included in the national bid solicitation and selection process. Each interested State agency must provide:\n\n(i) A statement that the State agency requests FNS to conduct bid solicitation and selection on its behalf;\n\n(ii) A statement of the State agency's minimum procurement procedures applicable to competitive bidding (as defined in \u00a7 246.2) for infant formula cost containment contracts and supporting documentation;\n\n(iii) A statement of any limitation on the duration of infant formula cost containment contracts and supporting documentation;\n\n(iv) A statement of any contractual provisions required to be included in infant formula cost containment contracts by the State agency;\n\n(v) The most recent available average monthly number of infant participants less those infant participants who are exclusively breastfed and those who are issued exempt infant formula. The average monthly participation level must be based on at least 6 months of participation data.\n\n(vi) Infant formula usage rates by type (e.g., milk-based or soy-based), form (e.g., concentrated, powdered, ready-to-feed), container size, and supporting documentation;\n\n(vii) A statement of the termination date of the State agency's current infant formula cost containment contract; and\n\n(viii) Any other related information that FNS may request.\n\n(3) If FNS determines that the number of State agencies making the request provided for in paragraph (l)(2) of this section does not comply with the requirements of paragraph (c)(2) of this section, FNS shall, in consultation with such State agencies, divide such State agencies into more than one group and solicit bids for each group. These groups of State agencies are referred to as \u201cbid groups.\u201d In determining the size and composition of the bid groups, FNS will, to the extent practicable, take into account the need to maximize the number of potential bidders so as to increase competition among infant formula manufacturers and the similarities in the State agencies' procurement and contract requirements (as provided by the State agencies in accordance with paragraphs (l)(2)(ii), (l)(2)(iii), and (l)(2)(iv) of this section). FNS reserves the right to exclude a State agency from the national bid solicitation and selection process if FNS determines that the State agency's procurement requirements or contractual requirements are so dissimilar from those of the other State agencies in any bid group that the State agency's inclusion in the bid group could adversely affect the bids.\n\n(4) For each bid group formed pursuant to paragraphs (l)(2) and (l)(3) of this section, FNS will use for soliciting bids the competitive bidding procurement procedures of the State agency in the group with the highest infant participation. To the extent not inconsistent with the requirements of this paragraph (l), FNS will use that set of procedures in soliciting the bids for that bid group of State agencies. FNS will notify each State agency in the bid group of the choice and provide them each a copy of the procurement procedures of the chosen State agency. Each State agency must provide FNS a written statement, signed by a responsible State agency official, by certified mail, return receipt requested or by hand delivery with evidence of receipt stating whether that State agency is legally authorized to award an infant formula cost containment contract pursuant to that set of procedures within 10 days of the receipt of the notification. If the State agency determines it is not legally authorized to award an infant formula cost containment contract pursuant to those procedures, that State agency may not continue in that round of the national bid solicitation and selection.\n\n(5) At a minimum, in soliciting bids FNS will address the following:\n\n(i) Unless FNS determines that doing so would not be in the best interest of the Program, bids will be solicited for either:\n\n(A) A single contract for each State agency under which the winning bidder will be required to supply and provide rebates on all infant formulas produced by that manufacturer (except exempt infant formulas) that are issued by the State agency. If that manufacturer does not produce a soy-based infant formula, the winning bidder will be required to subcontract with another manufacturer for a soy-based infant formula and the winning bidder will be required to pay a rebate on the soy-based infant formula; or\n\n(B) Two separate contracts for each State agency. Under the first contract, the winning bidder will supply and provide a rebate on all the milk-based infant formulas the winning bidder produces (except exempt infant formulas) that are issued by the State agency and under the second contract the winning bidder will supply and provide a rebate on all the soy-based infant formulas the winning bidder produces (except exempt infant formulas) that are issued by the State agency.\n\n(ii) The infant formula cost containment contract(s) to be entered into by the State agencies and infant formula manufacturers must provide for a constant net price for infant formula for the full term of the infant formula cost containment contract(s).\n\n(iii) The duration of the infant formula cost containment contracts for each bid group will be determined by FNS in consultation with the State agencies. The term will be for a period of not less than 2 years, unless the law applicable to a State agency regarding the duration of infant formula cost containment contracts is more restrictive than this paragraph (l)(5)(iii). In such cases, the term of the contract for only that State agency will be for one year, with the option provided to the State agency to extend the contract for a specified number of additional years (to be determined by FNS in consultation with the State agency). The date on which the individual State agencies' current infant formula cost containment contracts terminate may vary, so the infant formula cost containment contracts awarded by the State agencies within a bid group may begin on different dates.\n\n(iv) FNS will not prescribe conditions that are prohibited under paragraph (j) of this section.\n\n(v) FNS will solicit bids for rebates only from infant formula manufacturers. FNS may limit advertising to contacting in writing each infant formula manufacturer which has registered with the Secretary of Health and Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321  et seq. ).\n\n(6) FNS will select the winning bidder(s). The winning bidder(s) will be the responsive and responsible bidder(s) meeting the specifications and all bid terms and conditions which offers the lowest net price weighted to take into account infant formula usage rates and infant participation. In all instances the winning bidder(s) will be those which singly or in combination yield the greatest aggregate savings based on the net price weighted to take into account the infant formula usage rates. To break a tie between 2 equally low bids, FNS will select the bidder to be awarded the infant formula cost containment contract by a drawing by lot limited to the bidders which submitted those bids.\n\n(7) Once FNS has conducted bid selection, a State agency may decline to award the infant formula cost containment contract(s) only if the State agency determines that awarding the contract(s) would not be in the best interests of its Program, taking into account whether the national bid solicitation and selection would achieve a lower aggregate savings.\n\n(8) As soon as practicable after selecting the winning bid(s), FNS will notify the affected State agencies in writing of the bid results, including the name(s) of the winning bidder(s). If a State agency chooses to request approval to decline to award the infant formula cost containment contract(s) in accordance with paragraph (l)(7) of this section, it must notify FNS in writing, signed by a responsible State agency official, together with supporting documentation, by certified mail, return receipt requested or by hand delivery with evidence of receipt within 10 days of the State agency's receipt of this notification of bid results.\n\n(9) If FNS approves any State agency's request to decline to award the infant formula cost containment contract(s) in accordance with paragraphs (l)(7) and (l)(8) of this section, FNS will notify the bidders of the decision. If two or more State agencies remain in the group, FNS will require the bidders to indicate in writing whether they wish to withdraw or modify their bids within 5 days of receipt of this notification. FNS will again permit State agencies to decline to award the infant formula cost containment contract(s) in accordance with paragraphs (l)(7) and (l)(8) of this section. If FNS approves these additional State agency requests to decline contract awards, FNS may conduct a resolicitation of bids in accordance with this paragraph (l).\n\n(m)  What are the penalties for disclosing the amount of the bid or discount practices prior to the time bids are opened?  Any person, company, corporation, or other legal entity that submits a bid in response to a bid solicitation and discloses the amount of the bid, or the rebate or discount practices of such entities, in advance of the time the bids are opened by the Secretary or the State agency, shall be ineligible to submit bids to supply infant formula to the program for the bidding in progress for up to 2 years from the date the bids are opened. In addition, any person, company, corporation, or other legal entity shall be subject to a civil money penalty as specified in \u00a7 3.91(b)(3)(iv) of this title, as determined by the Secretary to provide restitution to the program for harm done to the program.\n\n(n)  What minimum recall-related provisions must be included in infant formula cost containment contracts?  A State agency must include remedies in the event of a recall in their infant formula cost containment contract to protect against disruption in infant formula supply to participants. The State agency will determine when remedies take effect and remain in effect, in accordance with applicable Program requirements and the infant formula cost containment contract. At minimum, recall remedies in the State agency's infant formula cost containment contract must:\n\n(1) Allow infant formula to be issued in all unit sizes that may exceed the maximum monthly allowance. The State agency and contracted infant formula manufacturer must prioritize unit sizes that most closely provide the maximum monthly allowance;\n\n(2) Allow the issuance of non-contract brand infant formulas without medical documentation, with the exception of participants receiving Food Package III as defined in \u00a7 246.10(e)(3); and\n\n(3) When any contract brand infant formula of the contracted manufacturer is the subject of a recall, require the contracted infant formula manufacturer to:\n\n(i) Provide the State agency with an action plan, within a timeline established within the contract, which includes supply data, to meet infant formula demand and limit disruption to Program participants in the affected jurisdiction(s); and\n\n(ii) Pay rebates on competitive, non-contract brand infant formula that meets the definition of infant formula at 7 CFR 246.2."], ["7:7:4.1.1.1.10.5.1.7", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.17 Closeout procedures.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 71 FR 56731, Sept. 27, 2006; 81 FR 66494, Sept. 28, 2016; 83 FR 14173, Apr. 3, 2018]", "(a)  General.  State agencies shall submit preliminary and final closeout reports for each fiscal year. All obligations shall be liquidated before closure of a fiscal year grant. Obligations shall be reported for the fiscal year in which they occur.\n\n(b)  Fiscal year closeout reports.  State agencies\u2014\n\n(1) Shall submit to FNS, within 30 days after the end of the fiscal year, preliminary financial reports which show cumulative actual expenditures and obligations for the fiscal year, or part thereof, for which Program funds were made available;\n\n(2) Shall submit to FNS, within 120 days after the end of the fiscal year, final fiscal year closeout reports;\n\n(3) May submit revised closeout reports. FNS will reimburse State agencies for additional costs claimed in a revised closeout report up to the State's original grant level, if costs are properly justified and if funds are available for the fiscal year pertaining to the request. FNS will not be responsible for reimbursing State agencies for unreported expenditures later than one year after the end of the fiscal year in which they were incurred.\n\n(c)  Grant closeout procedures.  When grants to State agencies are terminated, the following procedures shall be performed in accordance with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415.\n\n(1) FNS may disqualify a State agency's participation under the Program, in whole or in part, or take such remedies as may be legal and appropriate, whenever FNS determines that the State agency failed to comply with the conditions prescribed in this part, in its Federal-State Agreement, or in FNS guidelines and instructions. FNS will promptly notify the State agency in writing of the disqualification together with the effective date. A State agency shall disqualify a local agency by written notice whenever it is determined by FNS or the State agency that the local agency has failed to comply with the requirements of the Program.\n\n(2) FNS or the State agency may disqualify the State agency or restrict its participation in the Program when both parties agree that continuation under the Program would not produce beneficial results commensurate with the further expenditure of funds. The State agency or the local agency may disqualify the local agency or restrict its participation in the Program under the same conditions. The two parties shall agree upon the conditions of disqualification, including the effective date thereof, and, in the case of partial disqualification, the portion to be disqualified.\n\n(3) Upon termination of a grant, the affected agency shall not incur new obligations for the disqualified portion after the effective date, and shall cancel as many outstanding obligations as possible. FNS will allow full credit to the State agency for the Federal share of the noncancellable obligations properly incurred by the State agency prior to disqualification, and the State agency shall do the same for the local agency.\n\n(4) A grant closeout shall not affect the retention period for, or Federal rights of access to, grant records as specified in \u00a7 246.25. The closeout of a grant does not affect the State or local agency's responsibilities regarding property or with respect to any Program income for which the State or local agency is still accountable.\n\n(5) A final audit is not a required part of the grant closeout and should not be needed unless there are problems with the grant that require attention. If FNS considers a final audit to be necessary, it shall so inform OIG. OIG will be responsible for ensuring that necessary final audits are performed and for any necessary coordination with other Federal cognizant audit agencies or the State or local auditors. Audits performed in accordance with \u00a7 246.20 may serve as final audits providing such audits meet the needs of requesting agencies. If the grant is closed out without the audit, FNS reserves the right to disallow and recover an appropriate amount after fully considering any recommended disallowances resulting from an audit which may be conducted later."], ["7:7:4.1.1.1.10.5.1.8", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "E", "Subpart E\u2014State Agency Provisions", "", "\u00a7 246.18 Administrative review of State agency actions.", "FNS", "", "", "[65 FR 83266, Dec. 29, 2000, as amended at 70 FR 71724, Nov. 29, 2005; 73 FR 68998, Dec. 6, 2007; 73 FR 21811, Apr. 23, 2008; 74 FR 557, Jan. 6, 2009; 74 FR 51759, Oct. 8, 2009; 79 FR 12300, Mar. 4, 2014]", "(a)  Adverse actions subject to administrative reviews \u2014(1)  Vendor appeals \u2014(i)  Adverse actions subject to full administrative reviews.  Except as provided elsewhere in paragraph (a)(1) of this section, the State agency must provide full administrative reviews to vendors that appeal the following adverse actions:\n\n(A) Denial of authorization based on the application of the vendor selection criteria for minimum variety and quantity of authorized supplemental foods (\u00a7 246.12(g)(3)(i)), or on a determination that the vendor is attempting to circumvent a sanction (\u00a7 246.12(g)(6));\n\n(B) Termination of an agreement for cause;\n\n(C) Disqualification; and\n\n(D) Imposition of a fine or a civil money penalty in lieu of disqualification.\n\n(ii)  Adverse actions subject to abbreviated administrative reviews.  The State agency must provide abbreviated administrative reviews to vendors that appeal the following adverse actions, unless the State agency decides to provide full administrative reviews for any of these types of adverse actions:\n\n(A) Denial of authorization based on the vendor selection criteria for business integrity or for a current SNAP disqualification or civil money penalty for hardship (\u00a7 246.12(g)(3)(ii) and (g)(3)(iii));\n\n(B) Denial of authorization based on the application of the vendor selection criteria for competitive price (\u00a7 246.12(g)(4));\n\n(C) The application of the State agency's vendor peer group criteria and the criteria used to identify vendors that are above-50-percent vendors or comparable to above-50-percent vendors;\n\n(D) Denial of authorization based on a State agency-established vendor selection criterion if the basis of the denial is a WIC vendor sanction or a SNAP withdrawal of authorization or disqualification;\n\n(E) Denial of authorization based on the State agency's vendor limiting criteria (\u00a7 246.12(g)(2));\n\n(F) Denial of authorization because a vendor submitted its application outside the timeframes during which applications are being accepted and processed as established by the State agency under \u00a7 246.12(g)(8);\n\n(G) Termination of an agreement because of a change in ownership or location or cessation of operations (\u00a7 246.12(h)(3)(xvii));\n\n(H) Disqualification based on a trafficking conviction (\u00a7 246.12(l)(1)(i));\n\n(I) Disqualification based on the imposition of a SNAP civil money penalty for hardship (\u00a7 246.12(l)(2)(ii)); and\n\n(J) Disqualification or a civil money penalty imposed in lieu of disqualification based on a mandatory sanction imposed by another WIC State agency (\u00a7 246.12(l)(2)(iii)).\n\n(K) A civil money penalty imposed in lieu of disqualification based on a SNAP disqualification under \u00a7 246.12(l)(1)(vii) and,\n\n(L) Denial of an application based on a determination of whether an applicant vendor is currently authorized by SNAP.\n\n(iii)  Actions not subject to administrative reviews.  The State agency may not provide administrative reviews pursuant to this section to vendors that appeal the following actions:\n\n(A) The validity or appropriateness of the State agency's vendor limiting criteria (\u00a7 246.12(g)(2)) or vendor selection criteria for minimum variety and quantity of supplemental foods, business integrity, and current Supplemental Nutrition Assistance Program disqualification or civil money penalty for hardship (\u00a7 246.12(g)(3));\n\n(B) The validity or appropriateness of the State agency's selection criteria for competitive price (\u00a7 246.12(g)(4)), including, but not limited to, vendor peer group criteria and the criteria used to identify vendors that are above-50-percent vendors or comparable to above-50-percent vendors;\n\n(C) The validity or appropriateness of the State agency's participant access criteria and the State agency's participant access determinations;\n\n(D) The State agency's determination to include or exclude an infant formula manufacturer, wholesaler, distributor, or retailer from the list required pursuant to \u00a7 246.12(g)(11);\n\n(E) The validity or appropriateness of the State agency's prohibition of incentive items and the State agency's denial of an above-50-percent vendor's request to provide an incentive item to customers pursuant to \u00a7 246.12(h)(8);\n\n(F) The State agency's determination whether to notify a vendor in writing when an investigation reveals an initial violation for which a pattern of violations must be established in order to impose a sanction, pursuant to \u00a7 246.12(l)(3);\n\n(G) The State agency's determination whether a vendor had an effective policy and program in effect to prevent trafficking and that the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation (\u00a7 246.12(l)(1)(i)(B));\n\n(H) Denial of authorization if the State agency's vendor authorization is subject to the procurement procedures applicable to the State agency;\n\n(I) The expiration of a vendor's agreement;\n\n(J) Disputes regarding food instrument or cash-value voucher payments and vendor claims (other than the opportunity to justify or correct a vendor overcharge or other error, as permitted by \u00a7 246.12(k)(3); and\n\n(K) Disqualification of a vendor as a result of disqualification from SNAP (\u00a7 246.12(l)(1)(vii)).\n\n(2)  Effective date of adverse actions against vendors.  The State agency must make denials of authorization and disqualifications imposed under \u00a7 246.12(l)(1)(i) effective on the date of receipt of the notice of adverse action. The State agency must make all other adverse actions effective no earlier than 15 days after the date of the notice of the adverse action and no later than 90 days after the date of the notice of adverse action or, in the case of an adverse action that is subject to administrative review, no later than the date the vendor receives the review decision.\n\n(3)  Local agency appeals \u2014(i)  Adverse actions subject to full administrative reviews.  Except as provided in paragraph (a)(3)(ii) of this section, the State agency must provide full administrative reviews to local agencies that appeal the following adverse actions:\n\n(A) Denial of a local agency's application;\n\n(B) Disqualification of a local agency; and\n\n(C) Any other adverse action that affects a local agency's participation.\n\n(ii)  Actions not subject to administrative reviews.  The State agency may not provide administrative reviews pursuant to this section to local agencies that appeal the following actions:\n\n(A) Expiration of the local agency's agreement; and\n\n(B) Denial of a local agency's application if the State agency's local agency selection is subject to the procurement procedures applicable to the State agency;\n\n(iii)  Effective date of adverse actions against local agencies.  The State agency must make denials of local agency applications effective immediately. The State agency must make all other adverse actions effective no earlier than 60 days after the date of the notice of the adverse action and no later than 90 days after the date of the notice of adverse action or, in the case of an adverse action that is subject to administrative review, no later than the date the local agency receives the review decision.\n\n(4)  Farmer or farmers' market appeals \u2014(i)  Adverse actions.  The State agency shall provide a hearing procedure whereby farmers or farmers' markets adversely affected by certain actions of the State agency may appeal those actions. A farmer or farmers' market may appeal an action of the State agency denying its application to participate, imposing a sanction, or disqualifying it from participation in the program. Expiration of an agreement is not subject to appeal.\n\n(ii)  Effective date of adverse actions against farmers or farmers' markets.  The State agency must make denials of authorization and disqualifications effective on the date of receipt of the notice of adverse action. The State agency must make all other adverse actions effective no earlier than 15 days after the date of the notice of the adverse action and no later than 90 days after the date of the notice of adverse action or, in the case of an adverse action that is subject to administrative review, no later than the date the farmer receives the review decision. The State agency must make all other adverse actions effective no earlier than 15 days after the date of the notice of adverse action and no later than 90 days after the date of the notice of adverse action or, in the case of an adverse action that is subject to an administrative review, no later than the date the farmer or farmers' market receives the review decision.\n\n(b)  Full administrative review procedures.  The State agency must develop procedures for a full administrative review of the adverse actions listed in paragraphs (a)(1)(i), (a)(3) and (a)(4) of this section. At a minimum, these procedures must provide the vendor, farmer or farmers' market or local agency with the following:\n\n(1) Written notification of the adverse action, the procedures to follow to obtain a full administrative review and the cause(s) for and the effective date of the action. When a vendor is disqualified due in whole or in part to violations in \u00a7 246.12(l)(1), such notification must include the following statement: \u201cThis disqualification from WIC may result in disqualification as a retailer in SNAP. Such disqualification is not subject to administrative or judicial review under SNAP.\u201d\n\n(2) The opportunity to appeal the adverse action within a time period specified by the State agency in its notification of adverse action.\n\n(3) Adequate advance notice of the time and place of the administrative review to provide all parties involved sufficient time to prepare for the review.\n\n(4) The opportunity to present its case and at least one opportunity to reschedule the administrative review date upon specific request. The State agency may set standards on how many review dates can be scheduled, provided that a minimum of two review dates is allowed.\n\n(5) The opportunity to cross-examine adverse witnesses. When necessary to protect the identity of WIC Program investigators, such examination may be conducted behind a protective screen or other device (also referred to as an \u201cin camera\u201d examination).\n\n(6) The opportunity to be represented by counsel.\n\n(7) The opportunity to examine prior to the review the evidence upon which the State agency's action is based.\n\n(8) An impartial decision-maker, whose determination is based solely on whether the State agency has correctly applied Federal and State statutes, regulations, policies, and procedures governing the Program, according to the evidence presented at the review. The State agency may appoint a reviewing official, such as a chief hearing officer or judicial officer, to review appeal decisions to ensure that they conform to approved policies and procedures.\n\n(9) Written notification of the review decision, including the basis for the decision, within 90 days from the date of receipt of the request for an administrative review from a vendor, farmer, or farmer's market, and within 60 days from the date of receipt of a local agency's request for an administrative review. These timeframes are only administrative requirements for the State agency and do not provide a basis for overturning the State agency's adverse action if a decision is not made within the specified timeframe.\n\n(c)  Abbreviated administrative review procedures.  Except when the State agency decides to provide full administrative reviews for the adverse actions listed in paragraph (a)(1)(ii) of this section, the State agency must develop procedures for an abbreviated administrative review of the adverse actions listed in paragraph (a)(1)(ii) of this section. At a minimum, these procedures must provide the vendor, farmer, or farmers' market with the following:\n\n(1) Written notification of the adverse action, the procedures to follow to obtain an abbreviated administrative review, the cause(s) for and the effective date of the action, and an opportunity to provide a written response; and\n\n(2) A decision-maker who is someone other than the person who rendered the initial decision on the action and whose determination is based solely on whether the State agency has correctly applied Federal and State statutes, regulations, policies, and procedures governing the Program, according to the information provided to the vendor, farmer, or farmers' market concerning the cause(s) for the adverse action and the response from the vendor, farmer, or farmers' market.\n\n(3) Written notification of the review decision, including the basis for the decision, within 90 days of the date of receipt of the request for an administrative review. This timeframe is only an administrative requirement for the State agency and does not provide a basis for overturning the State agency's adverse action if a decision is not made within the specified timeframe.\n\n(d)  Continuing responsibilities.  Appealing an action does not relieve a local agency, farmer or farmers' market or vendor that is permitted to continue program operations while its appeal is in process from the responsibility of continued compliance with the terms of any written agreement with the State agency.\n\n(e)  Finality and effective date of decisions.  The State agency procedures must provide that review decisions rendered under both the full and abbreviated review procedures are the final State agency action. If the adverse action under review has not already taken effect, the State agency must make the action effective on the date of receipt of the review decision by the vendor, farmer or farmers' market or local agency.\n\n(f)  Judicial review.  If the review decision upholds the adverse action against the vendor, farmer or farmers' market or local agency, the State agency must inform the vendor, farmer or farmers' market or local agency that it may be able to pursue judicial review of the decision."], ["7:7:4.1.1.1.10.6.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "F", "Subpart F\u2014Monitoring and Review", "", "\u00a7 246.19 Management evaluation and monitoring reviews.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 59 FR 11508, Mar. 11, 1994; 76 FR 59890, Sept. 28, 2011]", "(a)  Management evaluations and reviews.  (1) FNS and each State agency shall establish a management evaluation system in order to assess the accomplishment of Program objectives as provided under this part, FNS guidelines, instructions, and the Federal-State agreement with the Department. FNS will provide assistance to States in discharging this responsibility, establish standards and procedures to determine how well the objectives of this part are being accomplished, and implement sanction procedures as warranted by State Program performance.\n\n(2) The State agency must submit a corrective action plan, including implementation timeframes, within 60 days of receipt of an FNS management evaluation report containing a finding that the State agency did not comply with program requirements. If FNS determines through a management evaluation or other means that during a fiscal year the State agency has failed, without good cause, to demonstrate efficient and effective administration of its program, or has failed to comply with its corrective action plan, or any other requirements contained in this part or the State Plan, FNS may withhold an amount up to 100 percent of the State agency's nutrition services and administration funds for that year.\n\n(3) Sanctions imposed upon a State agency by FNS in accordance with this section (but not claims for repayment assessed against a State agency) may be appealed in accordance with the procedures established in \u00a7 246.22. Before carrying out any sanction against a State agency, the following procedures will be followed:\n\n(i) FNS will notify the Chief State Health Officer or equivalent in writing of the deficiencies found and of FNS' intention to withhold nutrition services and administration funds unless an acceptable corrective action plan is submitted by the State agency to FNS within 60 days after mailing of notification.\n\n(ii) The State agency shall develop a corrective action plan with a schedule according to which the State agency shall accomplish various actions to correct the deficiencies and prevent their future recurrence.\n\n(iii) If the corrective action plan is acceptable, FNS will notify the Chief State Health Officer or equivalent in writing within 30 days of receipt of the plan. The letter approving the corrective action plan will describe the technical assistance that is available to the State agency to correct the deficiencies. The letter will also advise the Chief State Health Officer or equivalent of the sanctions to be imposed if the corrective action plan is not implemented according to the schedule set forth in the approved plan.\n\n(iv) Upon notification from the State agency that corrective action as been taken, FNS will assess such action, and, if necessary, will perform a follow-up review to determine if the noted deficiencies have been corrected. FNS will then advise the State agency of whether the actions taken are in compliance with the corrective action plan, and whether the deficiency is resolved or further corrective action is needed.\n\n(v) If an acceptable corrective action plan is not submitted within 60 days, or if corrective action is not completed according to the schedule established in the corrective action plan, FNS may withhold nutrition services and administration funds through a reduction of the State agency Letter of Credit or by assessing a claim against the State agency. FNS will notify the Chief State Health Officer or equivalent of this action.\n\n(vi) If compliance is achieved before the end of the fiscal year in which the nutrition services and administration funds are withheld, the funds withheld shall be restored to the State agency's Letter of Credit. FNS is not required to restore funds withheld if compliance is not achieved until the subsequent fiscal year. If the 60-day warning period ends in the fourth quarter of a fiscal year, FNS may elect not to withhold funds until the next fiscal year.\n\n(b)  State agency responsibilities.  (1) The State agency shall establish an on-going management evaluation system which includes at least the monitoring of local agency operations, the review of local agency financial and participation reports, the development of corrective action plans to resolve Program deficiencies, the monitoring of the implementation of corrective action plans, and on-site visits. The results of such actions shall be documented.\n\n(2) Monitoring of local agencies must encompass evaluation of management, certification, nutrition education, breastfeeding promotion and support, participant services, civil rights compliance, accountability, financial management systems, and food delivery systems. If the State agency delegates the signing of vendor agreements, vendor training, or vendor monitoring to a local agency, it must evaluate the local agency's effectiveness in carrying out these responsibilities.\n\n(3) The State agency shall conduct monitoring reviews of each local agency at least once every two years. Such reviews shall include on-site reviews of a minimum of 20 percent of the clinics in each local agency or one clinic, whichever is greater. The State agency may conduct such additional on-site reviews as the State agency determines to be necessary in the interest of the efficiency and effectiveness of the program.\n\n(4) The State agency must promptly notify a local agency of any finding in a monitoring review that the local agency did not comply with program requirements. The State agency must require the local agency to submit a corrective action plan, including implementation timeframes, within 60 days of receipt of a State agency report of a monitoring review containing a finding of program noncompliance. The State agency must monitor local agency implementation of corrective action plans.\n\n(5) As part of the regular monitoring reviews, FNS may require the State agency to conduct in-depth reviews of specified areas of local agency operations, to implement a standard form or protocol for such reviews, and to report the results to FNS. No more than two such areas will be stipulated by FNS for any fiscal year and the areas will not be added or changed more often than once every two fiscal years. These areas will be announced by FNS at least six months before the beginning of the fiscal year.\n\n(6) The State agency shall require local agencies to establish management evaluation systems to review their operations and those of associated clinics or contractors."], ["7:7:4.1.1.1.10.6.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "F", "Subpart F\u2014Monitoring and Review", "", "\u00a7 246.20 Audits.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 71 FR 56731, Sept. 27, 2006; 81 FR 66494, Sept. 28, 2016; 83 FR 14173, Apr. 3, 2018]", "(a)  Federal audit responsibilities.  (1) OIG reserves the right to perform audits of State and local agencies and other organizations involved in the Program as determined by OIG to be necessary. In performing such audits, OIG will rely to the extent feasible on audit work performed by other Federal and non-Federal auditors.\n\n(2) The State agency may take exception to particular audit findings and recommendations. The State agency shall submit a response or statement to FNS as to the action taken or a proposed corrective action plan regarding the findings. A proposed corrective action plan developed and submitted by the State agency shall include specific timeframes for its implementation and for completion of correction of deficiencies and their causes.\n\n(3) FNS will determine whether Program deficiencies have been adequately corrected. If additional corrective action is necessary, FNS shall schedule a follow-up review, allowing a reasonable time for such corrective action to be taken.\n\n(b)  State audit responsibilities.  (1) State agencies must obtain annual audits in accordance with 2 CFR part 200, subpart F, and appendix XI, Compliance Supplement, and USDA implanting regulations 2 CFR parts 400 and 415. In addition, States must require local agencies under their jurisdiction to obtain audits in accordance with 2 CFR part 200, subpart F, and appendix XI, Compliance Supplement, and USDA implementing regulations 2 CFR parts 400 and 415.\n\n(2) Each State agency shall make all State or local agency sponsored audit reports of Program operations under its jurisdiction available for the Department's review upon request. The cost of these audits shall be considered a part of nutrition services and administration costs and may be funded from the State or local agency nutrition services and administration funds, as appropriate. For purposes of determining the Program's pro rata share of indirect costs associated with organization-wide audits, the cost of food shall not be considered in the total dollar amount of the Program."], ["7:7:4.1.1.1.10.6.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "F", "Subpart F\u2014Monitoring and Review", "", "\u00a7 246.21 Investigations.", "FNS", "", "", "", "(a)  Authority.  The Department may make an investigation of any allegation of noncompliance with this part and FNS guidelines and instructions. The investigation may include, where appropriate, a review of pertinent practices and policies of any State or local agency, the circumstances under which the possible noncompliance with this part occurred, and other factors relevant to a determination as to whether the State or local agency has failed to comply with the requirements of this part.\n\n(b)  Confidentiality.  No State or local agency, participant, or other person shall intimidate, threaten, coerce, or discriminate against any individual for the purpose of interfering with any right or privilege under this part because that person has made a complaint or formal allegation, or has testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this part. The identity of every complainant shall be kept confidential except to the extent necessary to carry out the purposes of this part, including the conducting of any investigation, hearing, or judicial proceeding."], ["7:7:4.1.1.1.10.7.1.1", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.22 Administrative appeal of FNS decisions.", "FNS", "", "", "", "(a)  Right to appeal.  When FNS asserts a sanction against a State agency under the provisions of \u00a7 246.19, the State agency may appeal and must be afforded a hearing or review by an FNS Administrative Review Officer. The right of appeal shall not apply to claims for repayment assessed by FNS against the State agency under \u00a7 246.23(a). A State agency shall have the option of requesting a hearing to present its position or a review of pertinent documents and records including any additional written submission prepared by the State agency.\n\n(1) FNS will send a written notice by Certified Mail-Return Receipt Requested to the state agency or otherwise ensure receipt of such notice by the agency when asserting a sanction against a State agency as specified in \u00a7 246.19(a).\n\n(2) A State agency aggrieved by a sanction asserted against it may file a written request with the Director, Administrative Review Division, U.S. Department of Agriculture, Food and Nutrition Service, 3101 Park Center Drive, Alexandria, Va. 22302, for a hearing or a review of the record. Such request shall be sent by Certified Mail-Return Receipt Requested and postmarked within 30 days of the date of receipt of the sanction notice. The envelope containing the request shall be prominently marked \u201cREQUEST FOR REVIEW OR HEARING.\u201d The request shall clearly identify the specific FNS sanction(s) being appealed and shall include a photocopy of the FNS notice of sanction. If the State agency does not request a review of hearing within 30 days of receipt of the notice, the administrative decision on the sanctions will be considered final.\n\n(b)  Acknowledgment of request.  Within 15 days of receipt by the Director of the Administrative Review Division of a request for review or hearing, the Director will provide the State agency with a written acknowledgment of the request.\n\n(1) The acknowledgment will include the name and address of the FNS Administrative Review Officer to review the sanction;\n\n(2) The acknowledgment will also notify the State agency that within 30 days of the receipt of the acknowledgment, the State agency shall submit three sets of the following information to the Administrative Review Officer\u2014\n\n(i) A clear, concise identification of the issue(s) in dispute;\n\n(ii) The State agency's position with respect to the issue(s) in dispute;\n\n(iii) The pertinent facts and reasons in support of the State agency's position with respect to the issue(s) in dispute and a copy of the specific sanction notice provided by FNS;\n\n(iv) All pertinent documents, correspondence and records which the State agency believes are relevant and helpful toward a more thorough understanding of the issue(s) in dispute;\n\n(v) The relief sought by the State agency;\n\n(vi) The identity of the person(s) presenting the State agency's position when a hearing is involved; and\n\n(vii) A list of prospective State agency witnesses when a hearing is involved.\n\n(c)  FNS action.  (1) When a hearing is requested pursuant to this section, the Administrative Review Officer will, within 60 days after receipt of the State agency's information, schedule and conduct the hearing. The State agency will be advised of the time, date and location of the hearing at least 10 days in advance.\n\n(2) When a hearing is requested, the FNS Administrative Review Officer will make a final determination within 30 days after the hearing, and the final determination will take effect upon delivery of the written notice of this final decision to the State agency.\n\n(3) When a review is requested, the FNS Administrative Review Officer will review information presented by a State agency and will make a final determination within 30 days after receipt of that information. The final determination will take effect upon delivery of the written notice of this final decision to the State agency."], ["7:7:4.1.1.1.10.7.1.2", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.23 Claims and penalties.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 52 FR 21238, June 4, 1987; 65 FR 83288, Dec. 29, 2000; 71 FR 56731, Sept. 27, 2006; 72 FR 68998, Dec. 6, 2007; 79 FR 12300, Mar. 4, 2014]", "(a)  Claims against State agencies.  (1) If FNS determines through a review of the State agency's reports, program or financial analysis, monitoring, audit, or otherwise, that any Program funds provided to a State agency for supplemental foods or nutrition services and administration purposes were, through State or local agency negligence or fraud, misused or otherwise diverted from Program purposes, a formal claim will be assessed by FNS against the State agency. The State agency shall pay promptly to FNS a sum equal to the amount of the nutrition services and administration funds or the value of supplemental foods food instruments, or cash-value vouchers so misused or diverted.\n\n(2) If FNS determines that any part of the Program funds received by a State agency; or supplemental foods, either purchased or donated commodities; or food instruments or cash-value vouchers, were lost as a result of thefts, embezzlements, or unexplained causes, the State agency shall, on demand by FNS, pay to FNS a sum equal to the amount of the money or the value of the supplemental foods, food instruments, or cash-value vouchers so lost.\n\n(3) The State agency shall have full opportunity to submit evidence, explanation or information concerning alleged instances of noncompliance or diversion before a final determination is made in such cases.\n\n(4) FNS will establish a claim against any State agency that has not accounted for the disposition of all redeemed food instruments and cash-value vouchers and taken appropriate follow-up action on all redeemed food instruments and cash-value vouchers that cannot be matched against valid enrollment and issuance records, including cases that may involve fraud, unless the State agency has demonstrated to the satisfaction of FNS that it has:\n\n(i) Made every reasonable effort to comply with this requirement;\n\n(ii) Identified the reasons for its inability to account for the disposition of each redeemed food instrument or cash-value voucher; and\n\n(iii) Provided assurances that, to the extent considered necessary by FNS, it will take appropriate actions to improve its procedures.\n\n(b)  Interest charge on claims against State agencies.  If an agreement cannot be reached with the State agency for payment of its debts or for offset of debts on its current Letter of Credit within 30 days from the date of the first demand letter from FNS, FNS will assess an interest (late) charge against the State agency. Interest accrual shall begin on the 31st day after the date of the first demand letter, bill or claim, and shall be computed monthly on any unpaid balance as long as the debt exists. From a source other than the Program, the State agency shall provide the funds necessary to maintain Program operations at the grant level authorized by FNS.\n\n(c)  Claims \u2014(1)  Claims against participants.  (i)  Procedures.  If the State agency determines that program benefits have been obtained or disposed of improperly as the result of a participant violation, the State agency must establish a claim against the participant for the full value of such benefits. For all claims, the State agency must issue a letter demanding repayment. If full restitution is not made or a repayment schedule is not agreed on within 30 days of receipt of the letter, the State agency must take additional collection actions until restitution is made or a repayment schedule is agreed on, unless the State agency determines that further collection actions would not be cost-effective. The State agency must establish standards, based on a cost benefit analysis, for determining when collection actions are no longer cost-effective. At the time the State agency issues the demand letter, the State agency must advise the participant of the procedures to follow to obtain a fair hearing pursuant to \u00a7 246.9 and that failure to pay the claim may result in disqualification. In addition to establishing a claim, the State agency must determine whether disqualification is required by \u00a7 246.12(u)(2).\n\n(ii)  Types of restitution.  In lieu of financial restitution, the State agency may allow participants or parents or caretakers of infant or child participants for whom financial restitution would cause undue hardship to provide restitution by performing in-kind services determined by the State agency. Restitution may not include offsetting the claim against future program benefits, even if agreed to by the participant or the parent or caretaker of an infant or child participant.\n\n(iii)  Disposition of claims.  The State agency must document the disposition of all participant claims.\n\n(2)  Claims against the State agency.  FNS will assert a claim against the State agency for losses resulting from program funds improperly spent as a result of dual participation, if FNS determines that the State agency has not complied with the requirements in \u00a7 246.7(l)(1).\n\n(3)  Delegation of claims responsibility.  The State agency may delegate to its local agencies the responsibility for collecting participant claims.\n\n(d)  Penalties.  In accordance with section 12(g) of the National School Lunch Act, whoever embezzles, willfully misapplies, steals or obtains by fraud any funds, assets or property provided under section 17 of the Child Nutrition Act of 1966, as amended, whether received directly or indirectly from USDA, or whoever receives, conceals or retains such funds, assets or property for his or her own interest, knowing such funds, assets or property have been embezzled, willfully misapplied, stolen, or obtained by fraud shall, if such funds, assets or property are of the value of $100 or more, be fined not more than $25,000 or imprisoned not more than five years, or both, or if such funds, assets or property are of a value of less than $100, shall be fined not more than $1,000 or imprisoned for not more than one year, or both."], ["7:7:4.1.1.1.10.7.1.3", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.24 Procurement and property management.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 59 FR 11508, Mar. 11, 1994; 81 FR 66494, 66495, Sept. 28, 2016]", "(a)  Requirements.  State and local agencies shall ensure that subgrantees comply with the requirements for the nonprocurement debarment/suspension requirements and, if applicable, the lobbying restrictions as required in 2 CFR part 180, OMB Guidelines to Agencies on Government-wide Debarment and Suspension, 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400, part 415, and part 417 concerning the procurement and allowability of food in bulk lots, supplies, equipment and other services with Program funds. These requirements are adopted to ensure that such materials and services are obtained for the Program in an effective manner and in compliance with the provisions of applicable law and executive orders.\n\n(b)  Contractual responsibilities.  The standards contained in A-130 and 2 CFR part 200, subpart D and Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards and USDA implementing regulations 2 CFR part 400 and part 415 do not relieve the State or local agency of the responsibilities arising under its contracts. The State agency is the responsible authority, without recourse to FNS, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in connection with the Program. This includes, but is not limited to, disputes, claims, protests of award, source evaluation, or other matters of a contractual nature. Matters concerning violation of law are to be referred to such local, State or Federal authority as may have proper jurisdiction.\n\n(c)  State regulations.  The State or local agency may use its own procurement regulations which reflect applicable State and local regulations, provided that procurements made with Program funds adhere to the standards set forth in A-130 and 2 CFR part 200, subpart D and Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards and USDA implementing regulations 2 CFR part 400 and part 415.\n\n(d)  Property acquired with Program funds.  State and local agencies shall observe the standards prescribed in 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415 in their utilization and disposition of real property and equipment, including automated data processing equipment, acquired in whole or in part with Program funds."], ["7:7:4.1.1.1.10.7.1.4", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.25 Records and reports.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 52 FR 21238, June 4, 1987; 53 FR 15653, May 3, 1988; 59 FR 11508, Mar. 11, 1994; 65 FR 53528, Sept. 5, 2000; 71 FR 56731, Sept. 27, 2006; 72 FR 24183, May 2, 2007; 76 FR 59890, Sept. 27, 2011; 81 FR 66494, Sept. 28, 2016]", "(a)  Recordkeeping requirements.  Each State and local agency shall maintain full and complete records concerning Program operations. Such records shall comply with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415 and the following requirements:\n\n(1) Records shall include, but not be limited to, information pertaining to financial operations, food delivery systems, food instrument issuance and redemption, equipment purchases and inventory, certification, nutrition education, including breastfeeding promotion and support, civil rights and fair hearing procedures.\n\n(2) All records shall be retained for a minimum of three years following the date of submission of the final expenditure report for the period to which the report pertains. If any litigation, claim, negotiation, audit or other action involving the records has been started before the end of the three-year period, the records shall be kept until all issues are resolved, or until the end of the regular three-year period, whichever is later. If FNS deems any of the Program records to be of historical interest, it may require the State or local agency to forward such records to FNS whenever either agency is disposing of them.\n\n(3) Records for nonexpendable property acquired in whole or in part with Program funds shall be retained for three years after its final disposition.\n\n(4) All records shall be available during normal business hours for representatives of the Department and the Comptroller General of the United States to inspect, audit, and copy. Any reports or other documents resulting from the examination of such records that are publicly released may not include confidential applicant or participant information.\n\n(b)  Financial and participation reports \u2014(1)  Monthly reports.  (i) State agencies must submit financial and program performance data on a monthly basis, as specified by FNS, to support program management and funding decisions. Such information must include, but may not be limited to:\n\n(A) Actual and projected participation;\n\n(B) Actual and projected food funds expenditures;\n\n(C) Actual and projected rebate payments received from manufacturers.\n\n(D) A listing by source year of food and NSA funds available for expenditure; and,\n\n(E) NSA expenditures and unliquidated obligations.\n\n(ii) State agencies must require local agencies to report such financial and participation information as is necessary for the efficient management of food and NSA funds expenditures.\n\n(2)  Annual reports.  (i) Every year, State agencies must report to FNS the average number of migrant farmworker household members participating in the Program during a 12-month period of time specified by FNS.\n\n(ii) State agencies must submit itemized NSA expenditure reports annually as an addendum to their WIC Program closeout reports, as required by \u00a7 246.17(b)(2).\n\n(iii) The State agency must submit local agency breastfeeding participation data on an annual basis to FNS.\n\n(3)  Biennial reports.  (i)  Participant characteristics report.  State and local agencies must provide such information as may be required by FNS to provide a biennial participant characteristics report. This includes, at a minimum, information on income and nutritional risk characteristics of participants, information on breastfeeding incidence and duration, and participation in the Program by category (i.e., pregnant, breastfeeding and postpartum women, infants and children) within each priority level (as established in \u00a7 246.7(e)(4)) and by migrant farmworker households.\n\n(ii)  Civil rights report.  Racial and ethnic participation data contained in the biennial participant characteristics report will also be used to fulfill civil rights reporting requirements.\n\n(c)  Other reports.  State agencies must submit reports to reflect additions and deletions of local agencies administering the WIC Program and local agency address changes as these events occur.\n\n(d)  Source documentation.  To be acceptable for audit purposes, all financial and Program performance reports shall be traceable to source documentation.\n\n(e)  Certification of reports.  Financial and Program reports shall be certified as to their completeness and accuracy by the person given that responsibility by the State agency.\n\n(f)  Use of reports.  FNS will use State agency reports to measure progress in achieving objectives set forth in the State Plan, and this part, or other State agency performance plans. If it is determined, through review of State agency reports, Program or financial analysis, or an audit, that a State agency is not meeting the objectives set forth in its State Plan, FNS may request additional information including, but not limited to, reasons for failure to achieve its objectives.\n\n(g)  Extension of reporting deadline.  FNS may extend the due date for any Financial and Participation Report upon receiving a justified request from the State agency. The State agency should not wait until the due date if an extension is to be requested, but should submit the request as soon as the need is known. Failure by a State agency to submit a report by its due date may result in appropriate enforcement actions by FNS in accordance with \u00a7 246.19(a)(2), including withholding of further grant payments, suspension or termination of the grant."], ["7:7:4.1.1.1.10.7.1.5", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.26 Other provisions.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 53 FR 35301, Sept. 13, 1988; 65 FR 83288, Dec. 29, 2000; 71 FR 56731, Sept. 27, 2006; 72 FR 24184, May 2, 2007; 73 FR 21811, Apr. 23, 2008; 76 FR 37983, June 29, 2011]", "(a)  No aid reduction.  The value of benefits or assistance available under the Program shall not be considered as income or resources of participants or their families for any purpose under Federal, State, or local laws, including, but not limited to, laws relating to taxation, welfare and public assistance programs.\n\n(b)  Statistical information.  FNS reserves the right to use information obtained under the Program in a summary, statistical or other form which does not identify particular individuals.\n\n(c)  Medical information.  FNS may require the State or local agencies to supply medical data and other information collected under the Program in a form that does not identify particular individuals, to enable the Secretary or the State agencies to evaluate the effect of food intervention upon low-income individuals determined to be at nutritional risk.\n\n(d)  Confidentiality of applicant and participant information \u2014(1)  WIC purposes.  (i) Confidential applicant and participant information is any information about an applicant or participant, whether it is obtained from the applicant or participant, another source, or generated as a result of WIC application, certification, or participation, that individually identifies an applicant or participant and/or family member(s). Applicant or participant information is confidential, regardless of the original source and exclusive of previously applicable confidentiality provided in accordance with other Federal, State or local law.\n\n(ii) Except as otherwise permitted by this section, the State agency must restrict the use and disclosure of confidential applicant and participant information to persons directly connected with the administration or enforcement of the WIC Program whom the State agency determine have a need to know the information for WIC Program purposes. These persons may include, but are not limited to: personnel from its local agencies and other WIC State or local agencies; persons under contract with the State agency to perform research regarding the WIC Program, and persons investigating or prosecuting WIC Program violations under Federal, State or local law.\n\n(2)  Non-WIC purposes.  (i)  Use by WIC State and local agencies.  Any WIC State or local agency may use confidential applicant and participant information in the administration of its other programs that serve persons eligible for the WIC Program in accordance with paragraph (h) of this section.\n\n(ii)  Disclosure to public organizations.  The State agency and its local agencies may disclose confidential applicant and participant information to public organizations for use in the administration of their programs that serve persons eligible for the WIC Program in accordance with paragraph (h) of this section.\n\n(3)  Child abuse and neglect reporting.  Staff of the State agency and its local agencies who are required by State law to report known or suspected child abuse or neglect may disclose confidential applicant and participant information without the consent of the participant or applicant to the extent necessary to comply with such law.\n\n(4)  Release forms.  Except in the case of subpoenas or search warrants (see paragraph (i) of this section), the State agency and its local agencies may disclose confidential applicant and participant information to individuals or entities not listed in this section only if the affected applicant or participant signs a release form authorizing the disclosure and specifying the parties to which the information may be disclosed. The State or local agency must permit applicants and participants to refuse to sign the release form and must notify the applicants and participants that signing the form is not a condition of eligibility and refusing to sign the form will not affect the applicant's or participant's application or participation in the WIC Program. Release forms authorizing disclosure to private physicians or other health care providers may be included as part of the WIC application or certification process. All other requests for applicants or participants to sign voluntary release forms must occur after the application and certification process is completed.\n\n(5)  Access to information by applicants and participants.  The State or local agency must provide applicants and participants access to all information they have provided to the WIC Program. In the case of an applicant or participant who is an infant or child, the access may be provided to the parent or guardian of the infant or child, assuming that any issues regarding custody or guardianship have been settled. However, the State or local agency need not provide the applicant or participant (or the parent or guardian of an infant or child) access to any other information in the file or record such as documentation of income provided by third parties and staff assessments of the participant's condition or behavior, unless required by Federal, State, or local law or policy or unless the information supports a State or local agency decision being appealed pursuant to \u00a7 246.9.\n\n(e)  Confidentiality of vendor information.  Confidential vendor information is any information about a vendor (whether it is obtained from the vendor or another source) that individually identifies the vendor, except for vendor's name, address, telephone number, Web site/e-mail address, store type, and authorization status. Except as otherwise permitted by this section, the State agency must restrict the use or disclosure of confidential vendor information to:\n\n(1) Persons directly connected with the administration or enforcement of the WIC Program or SNAP who the State agency determines have a need to know the information for purposes of these programs. These persons may include personnel from its local agencies and other WIC State and local agencies and persons investigating or prosecuting WIC or SNAP violations under Federal, State, or local law;\n\n(2) Persons directly connected with the administration or enforcement of any Federal or State law or local law or ordinance. Prior to releasing the information to one of these parties (other than a Federal agency), the State agency must enter into a written agreement with the requesting party specifying that such information may not be used or redisclosed except for purposes directly connected to the administration or enforcement of a Federal, or State law; and\n\n(3) A vendor that is subject to an adverse action, including a claim, to the extent that the confidential information concerns the vendor subject to the adverse action and is related to the adverse action.\n\n(4) At the discretion of the State agency, all authorized vendors and vendor applicants regarding vendor sanctions which have been imposed, identifying only the vendor's name, address, length of the disqualification or amount of the civil money penalty, and a summary of the reason(s) for such sanction provided in the notice of adverse action. Such information may be disclosed only following the exhaustion of all administrative and judicial review, in which the State agency has prevailed, regarding the sanction imposed on the subject vendor, or the time period for requesting such review has expired.\n\n(f)  Confidentiality of SNAP retailer information.  Except as otherwise provided in this section, the State agency must restrict the use or disclosure of information about SNAP retailers obtained from SNAP, including information provided pursuant to Section 9(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2018(c)) and \u00a7 278.1(q) of this chapter, to persons directly connected with the administration or enforcement of the WIC Program.\n\n(g)  USDA and the Comptroller General.  The State agency must provide the Department and the Comptroller General of the United States access to all WIC Program records, including confidential vendor, applicant and participant information, pursuant to \u00a7 246.25(a)(4).\n\n(h)  Requirements for use and disclosure of confidential applicant and participant information for non-WIC purposes.  The State or local agency must take the following steps before using or disclosing confidential applicant or participant information for non-WIC purposes pursuant to paragraph (d)(2) of this section.\n\n(1)  Designation by chief State health officer.  The chief State health officer (or, in the case of an Indian State agency, the governing authority) must designate in writing the permitted non-WIC uses of the information and the names of the organizations to which such information may be disclosed.\n\n(2)  Notice to applicants and participants.  The applicant or participant must be notified either at the time of application (in accordance with \u00a7 246.7(i)(11)) or through a subsequent notice that the chief State health officer (or, in the case of an Indian State agency, the governing authority) may authorize the use and disclosure of information about their participation in the WIC Program for non-WIC purposes. This statement must also indicate that such information will be used by State and local WIC agencies and public organizations only in the administration of their programs that serve persons eligible for the WIC Program.\n\n(3)  Written agreement and State plan.  The State or local agency disclosing the information must enter into a written agreement with the other public organization or, in the case of a non-WIC use by a State or local WIC agency, the unit of the State or local agency that will be using the information. The State agency must also include in its State plan, as specified in \u00a7 246.4(a)(24), a list of all organizations (including units of the State agency or local agencies) with which the State agency or its local agencies has executed or intends to execute a written agreement. The written agreement must:\n\n(i) Specify that the receiving organization may use the confidential applicant and participant information only for:\n\n(A) Establishing the eligibility of WIC applicants or participants for the programs that the organization administers;\n\n(B) Conducting outreach to WIC applicants and participants for such programs;\n\n(C) Enhancing the health, education, or well-being of WIC applicants or participants who are currently enrolled in such programs, including the reporting of known or suspected child abuse or neglect that is not otherwise required by State law;\n\n(D) Streamlining administrative procedures in order to minimize burdens on staff, applicants, or participants in either the receiving program or the WIC Program; and/or\n\n(E) Assessing and evaluating the responsiveness of a State's health system to participants' health care needs and health care outcomes; and\n\n(ii) Contain the receiving organization's assurance that it will not use the information for any other purpose or disclose the information to a third party.\n\n(i)  Subpoenas and search warrants.  The State agency may disclose confidential applicant, participant, or vendor information pursuant to a valid subpoena or search warrant in accordance with the following procedures:\n\n(1)  Subpoena procedures.  In determining how to respond to a subpoena duces tecum (i.e., a subpoena for documents) or other subpoena for confidential information, the State or local agency must use the following procedures:\n\n(i) Upon receiving the subpoena, immediately notify its State agency;\n\n(ii) Consult with legal counsel for the State or local agency and determine whether the information requested is in fact confidential and prohibited by this section from being used or disclosed as stated in the subpoena;\n\n(iii) If the State or local agency determines that the information is confidential and prohibited from being used or disclosed as stated in the subpoena, attempt to quash the subpoena unless the State or local agency determines that disclosing the confidential information is in the best interest of the Program. The determination to disclose confidential information without attempting to quash the subpoena should be made only infrequently; and,\n\n(iv) If the State or local agency seeks to quash the subpoena or decides that disclosing the confidential information is in the best interest of the Program, inform the court or the receiving party that this information is confidential and seek to limit the disclosure by:\n\n(A) Providing only the specific information requested in the subpoena and no other information; and,\n\n(B) Limiting to the greatest extent possible the public access to the confidential information disclosed.\n\n(2)  Search warrant procedures.  In responding to a search warrant for confidential information, the State or local agency must use the following procedures:\n\n(i) Upon receiving the search warrant, immediately notify its State agency;\n\n(ii) Immediately notify legal counsel for the State or local agency;\n\n(iii) Comply with the search warrant; and,\n\n(iv) Inform the individual(s) serving the search warrant that the information being sought is confidential and seek to limit the disclosure by:\n\n(A) Providing only the specific information requested in the search warrant and no other information; and\n\n(B) Limiting to the greatest extent possible the public access to the confidential information disclosed.\n\n(j)  Data collection related to local agencies.  (1) Each State agency must collect data related to local agencies that have an agreement with the State agency to participate in the program for each of Federal fiscal years 2006 through 2009, including those local agencies that participated only for part of the fiscal year. Such data shall include:\n\n(i) The name of each local agency;\n\n(ii) The city in which each local agency was headquartered and the name of the state;\n\n(iii) The amount of funds provided to the participating organization, i.e., the amount of federal funds provided for nutrition services and administration to each participating local agency; and\n\n(iv) The type of participating organization, e.g., government agency, educational institution, non-profit organization/secular, non-profit organization/faith-based, and \u201cother.\u201d\n\n(2) On or before August 31, 2007, and each subsequent year through 2010, State agencies must report to FNS data as specified in paragraph (j)(1) of this section for the prior Federal fiscal year. State agencies must submit this data in a format designated by FNS.\n\n(k)  Program evaluations.  State and local WIC agencies and contractors must cooperate in studies and evaluations conducted by or on behalf of the Department, related to programs authorized under the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966 (42 U.S.C. 1786)."], ["7:7:4.1.1.1.10.7.1.6", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.27 Program information.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985, as amended at 59 FR 11508, Mar. 11, 1994; 71 FR 56733, Sept. 27, 2006; 73 FR 11314, Mar. 3, 2008]", "Any person who wishes information, assistance, records or other public material shall request such information from the State agency, or from the FNS Regional Office serving the appropriate State as listed below:\n\n(a) Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, Vermont: U.S. Department of Agriculture, FNS, Northeast Region, 10 Causeway Street, room 501, Boston, Massachusetts 02222-1066.\n\n(b) Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Puerto Rico, Virginia, Virgin Islands, West Virginia: U.S. Department of Agriculture, FNS, Mid-Atlantic Region, Mercer Corporate Park, 300 Corporate Boulevard, Robbinsville, New Jersey 08691-1598.\n\n(c) Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee: U.S. Department of Agriculture, FNS, Southeast Region, 61 Forsyth Street, SW., room 8T36, Atlanta, Georgia 30303.\n\n(d) Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin: U.S. Department of Agriculture, FNS, Midwest Region, 77 West Jackson Boulevard\u201420th Floor, Chicago, Illinois 60604-3507.\n\n(e) Arkansas, Louisiana, New Mexico, Oklahoma, Texas: U.S. Department of Agriculture, FNS, Southwest Region, 1100 Commerce Street, room 5-C-30, Dallas, Texas 75242.\n\n(f) Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota, Utah, Wyoming: U.S. Department of Agriculture, FNS, Mountain Plains Region, 1244 Speer Boulevard, suite 903, Denver, Colorado 80204.\n\n(g) Alaska, American Samoa, Arizona, California, the Commonwealth of the Northern Mariana Islands, Guam, Hawaii, Idaho, Nevada, Oregon, Washington: U.S. Department of Agriculture, FNS, Western Region,90 Seventh Street, Suite #10-100, San Francisco, California 94103."], ["7:7:4.1.1.1.10.7.1.7", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.28 OMB control numbers.", "FNS", "", "", "[50 FR 6121, Feb. 13, 1985, as amended at 53 FR 15653, May 3, 1988; 54 FR 51295, Dec. 14, 1989; 58 FR 11507, Feb. 26, 1993]", "The following control numbers have been assigned to the information collection requirements in 7 CFR part 246 by the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1980, Pub. L. 96-511."], ["7:7:4.1.1.1.10.7.1.8", 7, "Agriculture", "II", "A", "246", "PART 246\u2014SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN", "G", "Subpart G\u2014Miscellaneous Provisions", "", "\u00a7 246.29 Waivers of program requirements.", "FNS", "", "", "[88 FR 86563, Dec. 14, 2023, as amended at 90 FR 58508, Dec. 17, 2025]", "(a)  Required conditions.  The Secretary may waive or modify any qualified administrative requirement for one or more State agencies during an emergency period or supply chain disruption. Waivers or modifications may be issued following a State agency request or at the discretion of the Secretary. To be considered, a waiver or modification issued under this section must meet the following requirements:\n\n(1) The qualified administrative requirement cannot be implemented during any part of the emergency period or supply chain disruption.\n\n(2) The waiver or modification is necessary to serve participants and does not substantially weaken the nutritional quality of supplemental foods.\n\n(3) The waiver or modification would not result in material impairment of any statutory or regulatory rights of participants or potential participants as set forth at 7 CFR 246.8 or 7 CFR parts 15, 15a and 15b.\n\n(4) The waiver or modification would not create a barrier to participation.\n\n(5) The waiver or modification would not create additional eligibility requirements for participation.\n\n(6) The waiver or modification would comply with 7 CFR 246.13(b).\n\n(7) The waiver or modification must offer substitution options with similar nutritional quality, that most closely provide the maximum monthly allowance of supplemental foods, and that do not create new supplemental food categories as set forth in 7 CFR 246.10(e)(12) Table 4.\n\n(8) A State agency that requests a waiver or modification meets additional requirements for the request and approval as determined necessary by FNS.\n\n(b)  Timeframes for waiver request and use.  (1) Waiver starts. A waiver or modification may be granted any time during an emergency period or supply chain disruption.\n\n(2) Waiver duration.\n\n(i) A waiver or modification established during an emergency period may be available for the emergency period and up to 60 days after the end of the emergency period.\n\n(ii) A waiver or modification established during a supply chain disruption may be available for:\n\n(A) a period of up to 45 days from the date of waiver issuance and renewed with at least 15 days' notice provided by the Secretary; and\n\n(B) no more than 60 days after the supply chain disruption declaration \n\nceases to exist.\n\n(c)  State agency waiver requests.  State agencies shall submit requests for a modification or waiver for the Secretary's approval. Requests shall include but not necessarily be limited to:\n\n(1) The qualified administrative requirement the State agency is requesting to modify or waive (including the statutory or regulatory citation) and an explanation for why it cannot be met;\n\n(2) Justification for why the waiver is necessary to continue WIC services;\n\n(3) An explanation that the waiver meets the conditions set forth in 7 CFR 246.29(a);\n\n(4) The emergency period or supply chain disruption under which the request is being made;\n\n(5) The period for which the flexibility is being requested."], ["7:7:4.1.1.1.11.0.1.1", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.1 Definitions.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 81 FR 66495, Sept. 28, 2016; 85 FR 68721, Oct. 30, 2020, 89 FR 87244, Oct. 31, 2024]", "Following is a list of definitions that apply to the Commodity Supplemental Food Program (CSFP).\n\n2 CFR part 200,  means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published by OMB. The part reference covers applicable: Acronyms and Definitions (subpart A), General Provisions (subpart B), Post Federal Award Requirements (subpart D), Cost Principles (subpart E), and Audit Requirements (subpart F). (NOTE: Pre-Federal Award Requirements and Contents of Federal Awards (subpart C) does not apply to the National School Lunch Program).\n\nApplicant  means any person who applies to receive program benefits. Applicants include program participants applying for recertification.\n\nCaseload  means the number of persons the State agency may serve on an average monthly basis over the course of the caseload cycle.\n\nCaseload cycle  means the period from January 1 through the following December 31.\n\nCertification  means the use of procedures to determine an applicant's eligibility for the program.\n\nCertification period  means the period during which a CSFP participant may continue to receive benefits under CSFP without a formal review of eligibility.\n\nCSFP  means the Commodity Supplemental Food Program.\n\nDepartment  means the U.S. Department of Agriculture.\n\nDisqualification  means the act of ending Program participation of a participant as a punitive sanction.\n\nDual participation  means the simultaneous participation by an individual in CSFP at more than one distribution site.\n\nFiscal year  means the period from October 1 through the following September 30.\n\nFNS  means the Food and Nutrition Service.\n\nLocal agency  means a public or private nonprofit agency, including an Indian tribal organization, which enters into an agreement with the State agency to administer CSFP at the local level.\n\nNonprofit agency  means a private agency or organization with tax-exempt status under the Internal Revenue Code, or that has applied for tax-exempt status with the Internal Revenue Service.\n\nProxy  means any person designated by a participant or caretaker to obtain USDA Foods on behalf of the participant.\n\n7 CFR part 250  means the Department's regulations pertaining to the donation of foods for use in USDA food distribution programs.\n\nState  means any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands.\n\nState agency  means the agency designated by the State to administer CSFP at the State level; an Indian tribe or tribal organization recognized by the Department of the Interior that administers the program for a specified tribe or tribes; or, the appropriate area office of the Indian Health Service of the Department of Health and Human Services.\n\nState Plan  means the document that describes the manner in which the State agency intends to administer the program in the State.\n\nSubdistributing agency  means an agency or organization that has entered into an agreement with the State agency to perform functions normally performed by the State, such as entering into agreements with eligible recipient agencies under which USDA Foods are made available, ordering USDA Foods and/or making arrangements for the storage and delivery of such USDA Foods on behalf of eligible recipient agencies.\n\nUSDA Foods  means nutritious foods purchased by USDA to supplement the diets of CSFP participants, also referred to as donated foods.\n\nUSDA implementing regulations  include the following: 2 CFR part 400, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 2 CFR part 415, General Program Administrative Regulations; 2 CFR part 416, General Program Administrative Regulations for Grants and Cooperative Agreements to State and Local Governments; and 2 CFR part 418, New Restrictions on Lobbying."], ["7:7:4.1.1.1.11.0.1.10", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.10 Distribution and use of USDA Foods.", "FNS", "", "", "[89 FR 87246, Oct. 31, 2024]", "(a)  What are the requirements for distributing USDA Foods to participants?  The local agency must distribute a package of USDA Foods to participants each month, or a two-month supply of USDA Foods to participants every other month, in accordance with the food package guide rates established by FNS.\n\n(b)  What must the local agency do to ensure that USDA Foods are distributed only to CSFP participants?  The local agency must have a process in place, in accordance with State agency requirements, to verify the identity of participants or the participant's proxy before distributing USDA Foods to that person.\n\n(c)  What restrictions apply to State and local agencies in the distribution of USDA Foods?  State and local agencies must not require, or request, that participants make any payments, or provide any materials or services, in connection with the receipt of USDA Foods. State and local agencies must not use the distribution of USDA Foods as a means of furthering the political interests of any person or party.\n\n(d)  What are the restrictions for the use of USDA Foods?  USDA Foods may not be used for outreach, refreshments, or for any purposes other than distribution to, and nutrition education for, CSFP participants."], ["7:7:4.1.1.1.11.0.1.11", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.11 Applicants exceed caseload levels.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010]", "(a)  What must the local agency do if the number of applicants exceeds the local agency's caseload level?  If all caseload has been filled, the local agency must maintain a waiting list of individuals who apply for the program. In establishing the waiting list, the local agency must include the date of application and information necessary to allow the local agency to contact the applicant when caseload space becomes available. Unless they have been determined ineligible, applicants must be notified of their placement on a waiting list within 10 days of their request for benefits in accordance with \u00a7 247.15.\n\n(b)  What are the requirements for serving individuals on the waiting list once caseload slots become available?  The local agency must certify eligible individuals from the waiting list consistent with civil rights requirements at \u00a7 247.37. For example, a local agency may certify eligible individuals from the waiting list based on the date the application was received on a first-come, first-served basis."], ["7:7:4.1.1.1.11.0.1.12", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.12 Rights and responsibilities.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68721, Oct. 30, 2020]", "(a)  What information regarding an individual's rights in CSFP must the local agency provide to the applicant?  The local agency is responsible for informing the applicant, orally or in writing, of the following:\n\n(1) The local agency will provide notification of a decision to deny or terminate CSFP benefits, and of an individual's right to appeal this decision by requesting a fair hearing, in accordance with \u00a7 247.33(a);\n\n(2) The local agency will make nutrition education available to all participants and will encourage them to participate; and\n\n(3) The local agency will provide information on other nutrition, health, or assistance programs, and make referrals as appropriate.\n\n(b)  What information regarding an individual's responsibilities in CSFP must the local agency provide to the applicant?  In addition to the written statement required by \u00a7 247.8(b), the local agency is responsible for informing the applicant, orally or in writing, of the following:\n\n(1) Improper use or receipt of CSFP benefits as a result of dual participation or other program violations may lead to a claim against the individual to recover the value of the benefits, and may lead to disqualification from CSFP; and\n\n(2) Participants must report changes in household income or composition within 10 days after the change becomes known to the household."], ["7:7:4.1.1.1.11.0.1.13", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.13 Provisions for non-English or limited-English speakers.", "FNS", "", "", "", "(a)  What must State and local agencies do to ensure that non-English or limited-English speaking persons are aware of their rights and responsibilities in the program?  If a significant proportion of the population in an area is comprised of non-English or limited-English speaking persons with a common language, the State agency must ensure that local agencies inform such persons of their rights and responsibilities in the program, as listed under \u00a7 247.12, in an appropriate language. State and local agencies must ensure that bilingual staff members or interpreters are available to serve these persons.\n\n(b)  What must State and local agencies do to ensure that non-English or limited-English speaking persons are aware of other program information?  If a significant proportion of the population in an area is comprised of non-English or limited-English speaking persons with a common language, the State agency must ensure that local agencies provide other program information, except application forms, to such persons in their appropriate language."], ["7:7:4.1.1.1.11.0.1.14", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.14 Other public assistance programs.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87246, Oct. 31, 2024]", "(a)  What information on other public assistance programs must the local agency provide to applicants?  The local agency must provide applicants with written information on the following programs, and make referrals, as appropriate:\n\n(1) Supplemental security income benefits provided under Title XVI of the Social Security Act (42 U.S.C. 1381  et seq. );\n\n(2) Medical assistance provided under Title XIX of the Social Security Act (42 U.S.C. 1396  et seq. ), including medical assistance provided to a qualified Medicare beneficiary (42 U.S.C. 1395(p) and 1396d(5));\n\n(3) The Supplemental Nutrition Assistance Program (7 U.S.C. 2011  et seq. ); and\n\n(4) The Senior Farmers' Market Nutrition Program (7 U.S.C. 3007  et seq. ).\n\n(b)  Is the value of CSFP benefits counted as income or resources for any other public assistance programs?  No. The value of benefits received in CSFP may not be considered as income or resources of participants or their families for any purpose under Federal, State, or local laws, including laws relating to taxation and public assistance programs."], ["7:7:4.1.1.1.11.0.1.15", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.15 Notification of eligibility or ineligibility of applicant.", "FNS", "", "", "", "(a)  What is the timeframe for notifying an applicant of eligibility or ineligibility for CSFP benefits?  Local agencies must notify applicants of their eligibility or ineligibility for CSFP benefits, or their placement on a waiting list, within 10 days from the date of application.\n\n(b)  What must be included in the notification of eligibility or ineligibility?  The notification of eligibility must include information on the time, location, and means of food distribution, and the length of the certification period. Notification of ineligibility must be in writing, and must include the reason the applicant is not eligible, a statement of the individual's right to a fair hearing to appeal the decision, and a statement that informs the applicant that program standards are applied without discrimination by race, color, national origin, age, sex, or disability."], ["7:7:4.1.1.1.11.0.1.16", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.16 Certification period.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020]", "(a)  How long is the certification period \u2014(1)  Minimum certification period.  The State agency must establish certification periods that are not less than one year but not more than three years in duration. If the State agency chooses to establish a certification period that exceeds one year, the State must first receive approval from FNS by submitting a State Plan amendment. FNS shall approve State requests for a certification period exceeding one year on the condition that, on an annual basis, local agencies do the following:\n\n(i) Verify the address and continued interest of the participant; and\n\n(ii) Have sufficient reason to determine that the participant still meets the income eligibility standards, which may include a determination that the participant has a fixed income.\n\n(2)  Temporary certification.  An eligible CSFP applicant, including individuals on waiting lists, may be provided with a temporary monthly certification to fill any caseload slot resulting from nonparticipation by certified participants.\n\n(3)  Recertification.  Participants must be recertified following the application procedures outlined at \u00a7 247.8 in order to continue receiving program benefits beyond the expiration of their certification period.\n\n(b)  On what day of the final month does the certification period end?  The certification period extends to the final day of the month in which eligibility expires.\n\n(c)  Does the certification period end when a participant moves from the local area in which he or she was receiving benefits?  No. The State agency must ensure that local agencies serve a CSFP participant who moves from another area to an area served by CSFP and whose certification period has not expired. The participant must be given the opportunity to continue to receive CSFP benefits for the duration of the certification period. If the local agency has a waiting list, the participant must be placed on its waiting list ahead of all other waiting applicants. The local agency that determined the participant's eligibility must provide verification of the expiration date of the certification period to the participant upon request.\n\n(d)  What must the local agency do to ensure that participants are aware of the expiration of the certification period?  The local agency must notify program participants in writing at least 15 days before the expiration date that eligibility for the program is about to expire. The local agency must include a statement in the written notification that informs the applicant that program standards are applied without discrimination by race, color, national origin, age, sex, or disability."], ["7:7:4.1.1.1.11.0.1.17", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.17 Notification of discontinuance of participant.", "FNS", "", "", "", "(a)  What must a local agency do if it has evidence that a participant is no longer eligible for CSFP benefits during the certification period?  If a local agency has evidence that a participant is no longer eligible for CSFP benefits during the certification period, it must provide the participant with a written notification of discontinuance at least 15 days before the effective date of discontinuance.\n\n(b)  What must a local agency do if it has to discontinue a participant from participation in the program prior to the end of the certification period due to the lack of resources necessary to continue providing benefits to the participant?  If a local agency does not have sufficient resources, such as a sufficient number of caseload slots, to continue providing benefits to the participant(s) for the entire certification period, it must provide the participant(s) with a written notification of discontinuance at least 15 days before the effective date of discontinuance.\n\n(c)  What must be included in the notification of discontinuance?  The notification of discontinuance must include the effective date of discontinuance, the reason for the participant's discontinuance, a statement of the individual's right to appeal the discontinuance through the fair hearing process, in accordance with \u00a7 247.33(a), and a statement that informs the applicant that program standards are applied without discrimination by race, color, national origin, age, sex, or disability."], ["7:7:4.1.1.1.11.0.1.18", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.18 Nutrition education.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87246, Oct. 31, 2024]", "(a)  What are the State agency's responsibilities in ensuring that nutrition education is provided?  The State agency must establish an overall nutrition education plan and must ensure that local agencies provide nutrition education to participants in accordance with the plan. The State agency may allow local agencies to share personnel and educational resources with other programs in order to provide the best nutrition education possible to participants. The State agency must establish an evaluation procedure to ensure that the nutrition education provided is effective. The evaluation procedure must include participant input and must be directed by a nutritionist or other qualified professional. The evaluation may be conducted by the State or local agency, or by another agency under agreement with the State or local agency.\n\n(b)  What type of nutrition education must the local agency provide?  The local agency must provide nutrition education that can be easily understood by participants and is related to their nutritional needs and household situations. The local agency must provide nutrition education that includes the following information, which should account for specific ethnic and cultural characteristics whenever possible:\n\n(1) The nutritional value of USDA Foods, and their relationship to the overall dietary needs of the population groups served;\n\n(2) Nutritious ways to use USDA Foods;\n\n(3) Special nutritional needs of participants and how these needs may be met;\n\n(4) The importance of health care, and the role nutrition plays in maintaining good health; and\n\n(5) The importance of the use of the foods by the participant to whom they are distributed, and not by another person.\n\n(c)  To whom must local agencies provide nutrition education?  The local agency must make nutrition education available to all participants.\n\n(d)  May USDA Foods be used in cooking demonstrations?  Yes. The State or local agency, or another agency with which it has signed an agreement, may use USDA Foods to conduct cooking demonstrations as part of the nutrition education provided to program participants, but not for other purposes."], ["7:7:4.1.1.1.11.0.1.19", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.19 Dual participation.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020]", "(a)  What must State and local agencies do to prevent and detect dual participation?  The State agency must work with local agencies to prevent and detect dual participation. The State agency must work with local agencies to prevent and detect dual participation. In accordance with \u00a7 247.8(a)(1), the local agency must check the identification of all applicants when they are certified or recertified. In accordance with \u00a7 247.8(b), the local agency must ensure that the applicant or caretaker of the applicant signs an application form which includes a statement advising the applicant that he or she may not receive CSFP benefits at more than one CSFP site at the same time.\n\n(b)  What must the local agency do if a CSFP participant is found to be committing dual participation?  A participant found to be committing dual participation must be discontinued from participation at more than one CSFP site. In accordance with \u00a7 247.20(b), if the dual participation resulted from the participant or caretaker of the participant making false or misleading statements, or intentionally withholding information, the local agency must disqualify the participant from CSFP, unless the local agency determines that disqualification would result in a serious health risk. The local agency must also initiate a claim against the participant to recover the value of CSFP benefits improperly received, in accordance with \u00a7 247.30(c). Whenever an individual's participation in CSFP is discontinued, the local agency must notify the individual of the discontinuance, in accordance with \u00a7 247.17. The individual may appeal the discontinuance through the fair hearing process, in accordance with \u00a7 247.33(a)."], ["7:7:4.1.1.1.11.0.1.2", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.2 The purpose and scope of CSFP.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024]", "(a)  How does CSFP help participants?  Through CSFP, the Department provides nutritious USDA Foods to help State and local agencies meet the nutritional needs of low-income participants. Food packages include such nutritious foods as canned fruits and vegetables, canned meat, poultry and other protein items, and grain products such as pasta, as well as other foods. Participants are offered the opportunity to receive nutrition education.\n\n(b)  How many persons may be served in CSFP?  State agencies may serve eligible persons up to the caseload limit assigned to them by FNS. Caseload is the number of persons that may be served on an average monthly basis over the course of the caseload cycle, which extends from January 1 through the following December 31."], ["7:7:4.1.1.1.11.0.1.20", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.20 Program violations.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 89 FR 87246, Oct. 31, 2024]", "(a)  What are program violations in CSFP?  Program violations are actions taken by CSFP applicants or participants, or caretakers of applicants or participants, to obtain or use CSFP benefits improperly. Program violations include the following actions:\n\n(1) Intentionally making false or misleading statements, orally or in writing;\n\n(2) Intentionally withholding information pertaining to eligibility in CSFP;\n\n(3) Selling USDA Foods obtained in the program, or exchanging them for non-food items;\n\n(4) Physical abuse, or threat of physical abuse, of program staff; or\n\n(5) Committing dual participation.\n\n(b)  What are the penalties for committing program violations?  If applicants or participants, or caretakers of applicants or participants, commit program violations, the State agency may require local agencies to disqualify the applicants or participants for a period of up to one year. However, if the local agency determines that disqualification would result in a serious health risk, the disqualification may be waived. For program violations that involve fraud, the State agency must require local agencies to disqualify the participant from CSFP for a period of up to one year, unless the local agency determines that disqualification would result in a serious health risk. The State agency must require local agencies to permanently disqualify a participant who commits three program violations that involve fraud. For purposes of this program, fraud includes:\n\n(1) Intentionally making false or misleading statements to obtain  USDA Foods;\n\n(2) Intentionally withholding information to obtain USDA Foods; or\n\n(3) Selling USDA Foods, or exchanging them for non-food items.\n\n(c)  What must the local agency do to notify the individual of disqualification from CSFP?  The local agency must provide the individual with written notification of disqualification from CSFP at least 15 days before the effective date of disqualification. The notification must include the effective date and period of disqualification, the reason for the disqualification, and a statement that the individual may appeal the disqualification through the fair hearing process, in accordance with \u00a7 247.33(a)."], ["7:7:4.1.1.1.11.0.1.21", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.21 Caseload assignment.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014; 89 FR 87247, Oct. 31, 2024]", "(a)  How does FNS assign caseload to State agencies?  Each year, FNS assigns a caseload to each State agency to allow persons meeting the eligibility criteria listed under \u00a7 247.9 to participate in the program, up to the caseload limit. To the extent that resources are available, FNS assigns caseload to State agencies in the following order:\n\n(1)  Base caseload.  The State agency may not receive base caseload in excess of its total caseload assigned for the previous caseload cycle. Base caseload is determined in the following manner:\n\n(i) Each State agency entering its second year of program participation receives base caseload equal to the amount assigned to it in its first year of participation; and\n\n(ii) A State agency that has participated in two or more caseload cycles receives base caseload equal to the highest of:\n\n(A) Average monthly participation for the previous fiscal year; or\n\n(B) Average monthly participation for the last quarter of the previous fiscal year; or\n\n(C) Participation during September of the previous fiscal year, but only if:\n\n( 1 ) The full-year appropriation for the preceding fiscal year was enacted on or after February 15; and\n\n( 2 ) The State agency received additional caseload equal to or greater than 10 percent of its base caseload in the previous caseload cycle; and\n\n( 3 ) October participation in the current fiscal year was equal to or greater than 95 percent of September participation in the previous fiscal year.\n\n(2)  Additional caseload.  Each participating State agency may request additional caseload to increase program participation. Eligibility for and assignment of additional caseload are determined in the following manner:\n\n(i) A State agency entering its second year of program participation qualifies to receive additional caseload if the State achieved a participation level which was equal to or greater than 95 percent of assigned caseload for the previous caseload cycle, based on the highest of:\n\n(A) Average monthly participation for the previous fiscal year; or\n\n(B) Average monthly participation for the last quarter of the previous fiscal year; or\n\n(C) Participation during September of the previous fiscal year, but only if:\n\n( 1 ) The full-year appropriation for the preceding fiscal year was enacted on or after February 15; and\n\n( 2 ) October participation in the current fiscal year was equal to or greater than 95 percent of September participation in the previous fiscal year.\n\n(ii) A State agency that has participated in two or more caseload cycles qualifies to receive additional caseload if the State achieved a participation level which was equal to or greater than 95 percent of assigned caseload for the previous caseload cycle, based on the highest of:\n\n(A) Average monthly participation for the previous fiscal year; or\n\n(B) Average monthly participation for the last quarter of the previous fiscal year; or\n\n(C) Participation during September of the previous fiscal year, but only if:\n\n( 1 ) The full-year appropriation for the preceding fiscal year was enacted on or after February 15; and\n\n( 2 ) The State agency received additional caseload equal to or greater than 10 percent of its base caseload in the previous caseload cycle; and\n\n( 3 ) October participation in the current fiscal year was equal to or greater than 95 percent of September participation in the previous fiscal year.\n\n(iii) Of each eligible State agency's request for additional caseload, FNS assigns an amount that it determines the State needs and can efficiently utilize. In making this determination, FNS considers the factors listed below, in descending order of importance. If all reasonable requests for additional caseload cannot be met, FNS assigns it to those States that are most likely to utilize it. The factors are:\n\n(A) The percentage of caseload utilized by the State in the previous fiscal year;\n\n(B) Program participation trends in the State in previous fiscal years; and\n\n(C) Other information provided by the State agency in support of the request.\n\n(3)  New caseload.  Each State agency requesting to begin participation in the program, and with an approved State Plan, may receive caseload to serve participants, as requested in the State Plan. Of the State agency's caseload request, FNS assigns caseload in an amount that it determines the State needs and can efficiently utilize. This determination is made based on information contained in the State Plan and on other relevant information. However, if all caseload requests cannot be met, FNS will assign caseload to those States that are most likely to utilize it.\n\n(b)  When does FNS assign caseload to State agencies?  FNS must assign caseload to State agencies by December 31 of each year, or within 30 days after enactment of appropriations legislation covering the full fiscal year, whichever comes later. Caseload assignments for the previous caseload cycle will remain in effect, subject to the availability of sufficient funding, until caseload assignments are made for the current caseload cycle.\n\n(c)  How do State agencies request additional caseload for the next caseload cycle?  In accordance with \u00a7 247.6(d), a State agency that would like additional caseload for the next caseload cycle (beginning the following January 1) must submit a request for additional caseload by November 5, as an amendment to the State Plan. The State agency must also describe plans for serving participants at new sites in this submission."], ["7:7:4.1.1.1.11.0.1.22", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.22 Allocation and disbursement of administrative funds to State agencies.", "FNS", "", "", "", "(a)  What must State agencies do to be eligible to receive administrative funds?  In order to receive administrative funds, the State agency must have signed an agreement with FNS to operate the program, in accordance with \u00a7 247.4(a)(1), and must have an approved State Plan.\n\n(b)  How does FNS allocate administrative funds to State agencies?  (1) As required by law, each fiscal year FNS allocates to each State agency an administrative grant per assigned caseload slot, adjusted each year for inflation.\n\n(2) For fiscal year 2003, the amount of the grant per assigned caseload slot was equal to the per-caseload slot amount provided in fiscal year 2001, adjusted by the percentage change between:\n\n(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\n\n(ii) The value of that index for the 12-month period ending June 30, 2002.\n\n(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:\n\n(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\n\n(ii) The value of that index for the 12-month period ending June 30 of the preceding fiscal year.\n\n(c)  How do State agencies access administrative funds?  FNS provides administrative funds to State agencies on a quarterly basis. Such funds are provided by means of a Letter of Credit, unless other funding arrangements have been made with FNS. The State agency obtains the funds by electronically accessing its Letter of Credit account."], ["7:7:4.1.1.1.11.0.1.23", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.23 State provision of administrative funds to local agencies.", "FNS", "", "", "", "(a)  How much of the administrative funds must State agencies provide to local agencies for their use?  The State agency must provide to local agencies for their use all administrative funds it receives, except that the State agency may retain for its own use the amount determined by the following formula:\n\n(1) 15 percent of the first $50,000 received;\n\n(2) 10 percent of the next $100,000 received;\n\n(3) 5 percent of the next $250,000 received; and\n\n(4) A maximum of $30,000, if the administrative grant exceeds $400,000.\n\n(b)  May a State agency request to retain more than the amount determined by the above formula in the event of special needs?  Yes, the State agency may request approval from FNS to retain a larger amount than is allowed under the formula prescribed in paragraph (a) of this section. However, in making its request, the State agency must provide justification of the need for the larger amount at the State level, and must ensure that local agencies will not suffer undue hardship as a result of a reduction in administrative funds.\n\n(c)  How must the State agency distribute funds among local agencies?  The State agency must distribute funds among local agencies on the basis of their respective needs, and in a manner that ensures the funds will be used to achieve program objectives."], ["7:7:4.1.1.1.11.0.1.24", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.24 Recovery and redistribution of caseload and administrative funds.", "FNS", "", "", "", "(a)  May FNS recover and redistribute caseload and administrative funds assigned to a State agency?  Yes. FNS may recover and redistribute caseload and administrative funds assigned to a State agency during the fiscal year. FNS will redistribute these resources to other State agencies in accordance with the provisions of \u00a7\u00a7 247.21(a) and 247.22(b). In reassigning caseload, FNS will use the most up-to-date data on participation and the extent to which caseload is being utilized, as well as other information provided by State agencies. In accordance with \u00a7 247.21(a)(2), in instances in which FNS recovers caseload slots, the State agency must use 95 percent of its original caseload allocation to be eligible for additional caseload. However, the State agency must not exceed its reduced caseload allocation on an average monthly basis.\n\n(b)  Is there a limit on the amount of caseload slots or administrative funds that FNS may recover?  Yes. FNS will not unilaterally recover caseload that would result in the recovery of more than 50 percent of the State's administrative funds. However, in instances in which the State agency requests that FNS recover any portion of its assigned caseload, the 50-percent limitation will not apply."], ["7:7:4.1.1.1.11.0.1.25", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.25 Allowable uses of administrative funds and other funds.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 81 FR 66496, Sept. 28, 2016; 83 FR 14173, Apr. 3, 2018; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024]", "(a)  What are allowable uses of administrative funds provided to State and local agencies?  Administrative funds may be used for costs that are necessary to ensure the efficient and effective administration of the program, in accordance with 2 CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400 and part 415, which set out the principles for determining whether specific costs are allowable. Some examples of allowable costs in CSFP include:\n\n(1) Storing, transporting, and distributing foods;\n\n(2) Determining the eligibility of program applicants;\n\n(3) Program outreach;\n\n(4) Nutrition education;\n\n(5) Audits and fair hearings;\n\n(6) Monitoring and review of program operations; and\n\n(7) Transportation of participants to and from the local agency, if necessary.\n\n(b)  What are unallowable uses of administrative funds?  In addition to those costs determined to be unallowable by the principles contained in the OMB circulars referenced in paragraph (a) of this section, specific examples of unallowable uses of administrative funds in CSFP include:\n\n(1) The cost of alteration of facilities not required specifically for the program; and\n\n(2) Actual losses which could have been covered by permissible insurance (through an approved self-insurance program or by other means).\n\n(c)  What costs are allowable only with prior approval of FNS?  Capital expenditures, which include the acquisition of facilities or equipment, or enhancements to such capital assets, with a cost per unit of at least $5,000, are allowable only with prior approval of FNS. Examples of equipment include automated information systems, automated data processing equipment, and other computer hardware and software.\n\n(d)  What procedures must State and local agencies use in procuring property, equipment, or services with program funds, and disposing of such property or equipment?  The procedures that State and local agencies must follow in procuring property, equipment, or services with program funds, or disposing of such property or equipment, are contained in 2 CFR part 200, subpart E, and USDA implementing regulations 2 CFR parts 400 and 415, which set out the principles for determining whether specific costs are allowable. State, local, and Indian tribal governments must comply with 2 CFR part 200, subpart E, and USDA implementing regulations 2 CFR parts 400 and 415, while nonprofit subgrantees must comply with 2 CFR part 200, subpart E, and USDA implementing regulations 2 CFR parts 400 and 415. State and local agencies may use procurement procedures established by State and local regulations as long as these procedures do not conflict with Federal regulations. Federal regulations do not relieve State or local agencies from responsibilities established in contracts relating to procurement of property, equipment, or services. The State agency is the responsible authority regarding the settlement of all contractual and administrative issues arising out of procurements for the program.\n\n(e)  What is program income and how must State and local agencies use it?  Program income is income directly generated from program activities. It includes, for example, income from the sale of packing containers or pallets, and the salvage of USDA Foods. Program income does not include interest earned from administrative funds. State and local agencies must use program income for allowable program costs, in accordance with 2 CFR part 200, subpart E, and USDA implementing regulations 2 CFR parts 400 and 415.\n\n(f)  How must State and local agencies use funds recovered as a result of claims actions?  The State agency must use funds recovered as a result of claims actions against subdistributing or local agencies in accordance with the provisions of \u00a7 250.17(c) of this chapter. The State agency must use funds recovered as a result of claims actions against participants for allowable program costs. The State agency may authorize local agencies to use such funds for allowable program costs incurred at the local level."], ["7:7:4.1.1.1.11.0.1.26", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.26 Return of administrative funds.", "FNS", "", "", "", "(a)  Must State agencies return administrative funds that they do not use at the end of the fiscal year?  Yes. If, by the end of the fiscal year, a State agency has not obligated all of its allocated administrative funds, the unobligated funds must be returned to FNS.\n\n(b)  What happens to administrative funds that are returned by State agencies at the end of the fiscal year?  If, in the following fiscal year, OMB reapportions the returned administrative funds, the funds are used to support the program. Such funds are not returned to State agencies in the form of administrative funds in addition to the legislatively mandated grant per assigned caseload slot."], ["7:7:4.1.1.1.11.0.1.27", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.27 Financial management.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 83 FR 14174, Apr. 3, 2018]", "(a)  What are the Federal requirements for State and local agencies with regard to financial management?  State and local public agencies, as well as nonprofit organizations, must maintain a financial management system that complies with the Federal regulations contained in 2 CFR part 200, subparts D and E, and USDA implementing regulations 2 CFR parts 400 and 415. The State agency's financial management system must provide accurate, current, and complete disclosure of the financial status of the program, including an accounting of all program funds received and expended each fiscal year. The State agency must ensure that local agencies develop and implement a financial management system that allows them to meet Federal requirements.\n\n(b)  What are some of the major components of the State agency's financial management system?  In addition to other requirements, the State agency's financial management system must provide for:\n\n(1) Prompt and accurate payment of allowable costs;\n\n(2) Timely disbursement of funds to local agencies;\n\n(3) Timely and appropriate resolution of claims and audit findings; and\n\n(4) Maintenance of records identifying the receipt and use of administrative funds, funds recovered as a result of claims actions, program income (as defined under \u00a7 247.25(e)), and property and other assets procured with program funds."], ["7:7:4.1.1.1.11.0.1.28", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.28 Storage and inventory of USDA Foods.", "FNS", "", "", "[89 FR 87247, Oct. 31, 2024]", "(a)  What are the requirements for storage of USDA Foods?  State and local agencies must provide for storage of USDA Foods that protects them from theft, spoilage, damage or destruction, or other loss. State and local agencies may contract with commercial facilities to store and distribute USDA Foods. The required standards for warehousing and distribution systems, and for contracts with storage facilities, are included in \u00a7\u00a7 250.12 and 250.14 of this chapter.\n\n(b)  What are the requirements for the inventory of USDA Foods?  A physical inventory of all USDA Foods must be conducted annually at each storage and distribution site where these USDA Foods are stored. Results of the physical inventory must be reconciled with inventory records and maintained on file by the State or local agency."], ["7:7:4.1.1.1.11.0.1.29", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.29 Reports and recordkeeping.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 72 FR 24184, May 2, 2007; 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024]", "(a)  What recordkeeping requirements must State and local agencies meet?  State and local agencies must maintain accurate and complete records relating to the receipt, disposal, and inventory of USDA Foods, the receipt and disbursement of administrative funds and other funds, eligibility determinations, fair hearings, and other program activities. State and local agencies must also maintain records pertaining to liability for any improper distribution of, use of, loss of, or damage to USDA Foods, and the results obtained from the pursuit of claims arising in favor of the State or local agency. All records must be retained for a period of three years from the end of the fiscal year to which they pertain, or, if they are related to unresolved claims actions, audits, or investigations, until those activities have been resolved. All records must be available during normal business hours for use in management reviews, audits, investigations, or reports of the General Accounting Office.\n\n(b)  What reports must State and local agencies submit to FNS?  State agencies must submit the following reports to FNS:\n\n(1)  SF-425, Federal Financial Report.  The State agency must submit the SF-425, Federal Financial Report, to report the financial status of the program at the close of the fiscal year. This report must be submitted within 90 days after the end of the fiscal year. Obligations must be reported for the fiscal year in which they occur. Revised reports may be submitted at a later date, but FNS will not be responsible for reimbursing unpaid obligations later than one year after the end of the fiscal year in which they were incurred.\n\n(2)  FNS-153, Monthly Report of the Commodity Supplemental Food Program and Quarterly Administrative Financial Status Report.  The State agency must submit the FNS-153 on a monthly basis. FNS may permit the data contained in the report to be submitted less frequently, or in another format. The report must be submitted within 30 days after the end of the reporting period. On the FNS-153, the State agency reports:\n\n(i) The number of program participants;\n\n(ii) The receipt and distribution of USDA Foods, and beginning and ending inventories, as well as other USDA Foods data; and\n\n(iii) On a quarterly basis, the cumulative amount of administrative funds expended and obligated, and the amount remaining unobligated.\n\n(3)  FNS-191, Racial/Ethnic Group Participation.  Local agencies must submit a report of racial/ethnic participation each year, using the FNS-191.\n\n(c)  Is there any other information that State and local agencies must provide to FNS?  FNS may require State and local agencies to provide data collected in the program to aid in the evaluation of the effect of program benefits on the low-income populations served. Any such requests for data will not include identification of particular individuals."], ["7:7:4.1.1.1.11.0.1.3", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.3 Administering agencies.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 89 FR 87244, Oct. 31, 2024]", "(a)  What agencies are responsible for administering CSFP?  CSFP is administered at the Federal level by the Department's Food and Nutrition Service (FNS), which provides USDA Foods, assigns caseload, and allocates administrative funds to State agencies. State agencies are responsible for administering the program at the State level. The State agency may select local agencies to administer the program in local areas of the State. The State agency must provide guidance to local agencies on all aspects of program operations. The State agency may also select subdistributing agencies (e.g., another State agency, a local governmental agency, or a nonprofit organization) to distribute or store USDA Foods, or to perform other program functions on behalf of the State agency. Local or subdistributing agencies may also select other agencies to perform specific program functions (e.g., food distribution or storage), with the State agency's approval. Although the State agency may select other organizations to perform specific activities, the State agency is ultimately responsible for all aspects of program administration.\n\n(b)  Are there specific functions that the State agency cannot delegate to another agency?  Yes. The State agency may not delegate the performance of the following functions to another agency:\n\n(1) Establishing eligibility requirements, in accordance with the options provided to the State agency under \u00a7 247.9; or\n\n(2) Establishing a management review system and conducting reviews of local agencies, in accordance with \u00a7 247.34.\n\n(c)  What Federal requirements must State, subdistributing, and local agencies follow in administering CSFP?  State, subdistributing, and local agencies must administer the program in accordance with the provisions of this part, and with the provisions contained in part 250 of this chapter, unless they are inconsistent with the provisions of this part."], ["7:7:4.1.1.1.11.0.1.30", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.30 Claims.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024]", "(a)  What happens if a State or local agency misuses program funds?  If FNS determines that a State or local agency has misused program funds through negligence, fraud, theft, embezzlement, or other causes, FNS must initiate and pursue a claim against the State agency to repay the amount of the misused funds. The State agency will be given the opportunity to contest the claim. The State agency is responsible for initiating and pursuing claims against subdistributing and local agencies if they misuse program funds.\n\n(b)  What happens if a State or local agency misuses USDA Foods?  If a State or local agency misuses USDA Foods, FNS must initiate a claim against the State agency to recover the value of the misused USDA Foods. The procedures for pursuing claims resulting from misuse of USDA Foods are detailed in \u00a7 250.16(a) of this chapter. Misused USDA Foods include USDA Foods improperly distributed or lost, spoiled, stolen, or damaged as a result of improper storage, care, or handling. The State agency is responsible for initiating and pursuing claims against subdistributing agencies, local agencies, or other agencies or organizations if they misuse USDA Foods. The State agency must use funds recovered as a result of claims for USDA Foods losses in accordance with \u00a7 250.17(c) of this chapter.\n\n(c)  What happens if a participant improperly receives or uses CSFP benefits through fraud?  The State agency must ensure that a local agency initiates a claim against a participant to recover the value of USDA Foods improperly received or used if the local agency determines that the participant or caretaker of the participant fraudulently received or used the USDA Foods. For purposes of this program, fraud includes intentionally making false or misleading statements, or intentionally withholding information, to obtain USDA Foods, or the selling or exchange of USDA Foods for non-food items. The local agency must advise the participant of the opportunity to appeal the claim through the fair hearing process, in accordance with \u00a7 247.33(a). The local agency must also disqualify the participant from CSFP for a period of up to one year, unless the local agency determines that disqualification would result in a serious health risk, in accordance with the requirements of \u00a7 247.20(b).\n\n(d)  What procedures must be used in pursuing claims against participants?  The State agency must establish standards, based on a cost-benefit review, for determining when the pursuit of a claim is cost-effective, and must ensure that local agencies use these standards in determining if a claim is to be pursued. In pursuing a claim against a participant, the local agency must:\n\n(1) Issue a letter demanding repayment for the value of the USDA Foods improperly received or used;\n\n(2) If repayment is not made in a timely manner, take additional collection actions that are cost-effective, in accordance with the standards established by the State agency; and\n\n(3) Maintain all records regarding claims actions taken against participants, in accordance with \u00a7 247.29."], ["7:7:4.1.1.1.11.0.1.31", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.31 Audits and investigations.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 89 FR 87247, Oct. 31, 2024]", "(a)  What is the purpose of an audit?  The purpose of an audit is to ensure that:\n\n(1) Financial operations are properly conducted;\n\n(2) Financial reports are fairly presented;\n\n(3) Proper inventory controls are maintained; and\n\n(4) Applicable laws, regulations, and administrative requirements are followed.\n\n(b)  When may the Department conduct an audit or investigation of the program?  The Department may conduct an audit of the program at the State or local agency level at its discretion, or may investigate an allegation that the State or local agency has not complied with Federal requirements. An investigation may include a review of any State or local agency policies or practices related to the specific area of concern.\n\n(c)  What are the responsibilities of the State agency in responding to an audit by the Department?  In responding to an audit by the Department, the State agency must:\n\n(1) Provide access to any records or documents compiled by the State or local agencies, or contractors; and\n\n(2) Submit a response or statement to FNS describing the actions planned or taken in response to audit findings or recommendations. The corrective action plan must include time frames for implementation and completion of actions. FNS will determine if actions or planned actions adequately respond to the program deficiencies identified in the audit. If additional actions are needed, FNS will schedule a follow-up review and allow sufficient time for further corrective actions. The State agency may also take exception to particular audit findings or recommendations.\n\n(d)  When is a State or local agency audit required?  State and local agency audits must be conducted in accordance with part 3052 of this title, which contains the Department's regulations pertaining to audits of States, local governments, and nonprofit organizations. The value of USDA Foods distributed by the agency or organization must be considered part of the Federal award.\n\n(e)  What are the requirements for State or local agency audits?  State and local agency audits must be conducted in accordance with the requirements of part 3052 of this title, which contains the Department's regulations pertaining to audits of States, local governments, and nonprofit organizations. The State agency must ensure that local agencies meet the audit requirements. The State agency must ensure that all State or local agency audit reports are available for FNS review."], ["7:7:4.1.1.1.11.0.1.32", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.32 Termination of agency participation.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 83 FR 14174, Apr. 3, 2018]", "(a)  When may a State agency's participation in CSFP be terminated?  While paragraphs (a)(1), (a)(2), and (a)(3) of this section, as applicable, describe the circumstances and basic procedures for terminating State agency programs, specific actions and procedures relating to program termination are more fully described in 2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR parts 400 and 415.\n\n(1)  Termination by FNS.  FNS may terminate a State agency's participation in CSFP, in whole or in part, if the State agency does not comply with the requirements of this part. FNS must provide written notification to the State agency of termination, including the reasons for the action, and the effective date.\n\n(2)  Termination by State agency.  The State agency may terminate the program, in whole or in part, upon written notification to FNS, stating the reasons and effective date of the action. In accordance with \u00a7 247.4(b)(6), which relates to the termination of agreements, either party must provide, at minimum, 30 days' written notice.\n\n(3)  Termination by mutual agreement.  The State agency's program may also be terminated, in whole or in part, if both parties agree the action would be in the best interest of the program. The two parties must agree upon the conditions of the termination, including the effective date.\n\n(b)  When may a local agency's participation in CSFP be terminated?  While paragraphs (b)(1), (b)(2), and (b)(3) of this section, as applicable, describe the circumstances and basic procedures in termination of local agency programs, specific actions and procedures relating to program termination are more fully described in 2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR parts 400 and 415.\n\n(1)  Termination by State agency.  The State agency may terminate a local agency's participation in CSFP, or may be required to terminate a local agency's participation, in whole or in part, if the local agency does not comply with the requirements of this part. The State agency must notify the local agency in writing of the termination, the reasons for the action, and the effective date, and must provide the local agency with an opportunity to appeal, in accordance with \u00a7 247.35. (The local agency may appeal the termination in accordance with \u00a7 247.35.)\n\n(2)  Termination by local agency.  The local agency may terminate the program, in whole or in part, upon written notification to the State agency, stating the reasons and effective date of the action. In accordance with \u00a7 247.4(b)(6), which relates to the termination of agreements, either party must provide, at minimum, 30 days' written notice.\n\n(3)  Termination by mutual agreement.  The local agency's program may also be terminated, in whole or in part, if both the State and local agency agree that the action would be in the best interest of the program. The two parties must agree upon the conditions of the termination, including the effective date."], ["7:7:4.1.1.1.11.0.1.33", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.33 Fair hearings.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 89 FR 87247, Oct. 31, 2024]", "(a)  What is a fair hearing?  A fair hearing is a process that allows a CSFP applicant or participant to appeal an adverse action, which may include the denial or discontinuance of program benefits, disqualification from the program, or a claim to repay the value of USDA Foods received as a result of fraud. State and local agencies must ensure that CSFP applicants and participants understand their right to appeal an adverse action through the fair hearing process, which includes providing written notification of the individual's right to a fair hearing along with notification of the adverse action. Such notification is not required at the expiration of a certification period.\n\n(b)  What are the basic requirements the State agency must follow in establishing procedures to be used in fair hearings?  The State agency must establish simple, clear, uniform rules of procedure to be used in fair hearings, including, at a minimum, the procedures outlined in this section. The State agency may use alternate procedures if approved by FNS. The rules of procedure must be available for public inspection and copying.\n\n(c)  How may an individual request a fair hearing?  An individual or an individual's caretaker may request a fair hearing by making a clear expression, verbal or written, to a State or local agency official that an appeal of the adverse action is desired.\n\n(d)  How much time does an individual have to request a fair hearing?  The State or local agency must allow an individual at least 60 days from the date the agency mails or gives the individual the notification of adverse action to request a fair hearing.\n\n(e)  When may a State or local agency deny a request for a fair hearing?  The State or local agency may deny a request for a fair hearing when:\n\n(1) The request is not received within the time limit established in paragraph (d) of this section;\n\n(2) The request is withdrawn in writing by the individual requesting the hearing or by an authorized representative of the individual; or\n\n(3) The individual fails to appear, without good cause, for the scheduled hearing.\n\n(f)  Does the request for a fair hearing have any effect on the receipt of CSFP benefits?  Participants who appeal the discontinuance of program benefits within the 15-day advance notification period required under \u00a7\u00a7 247.17 and 247.20 must be permitted to continue to receive benefits until a decision on the appeal is made by the hearing official, or until the end of the participant's certification period, whichever occurs first. However, if the hearing decision finds that a participant received program benefits fraudulently, the local agency must include the value of benefits received during the time that the hearing was pending, as well as for any previous period, in its initiation and pursuit of a claim against the participant.\n\n(g)  What notification must the State or local agency provide an individual in scheduling the hearing?  The State or local agency must provide an individual with at least 10 days' advance written notice of the time and place of the hearing, and must include the rules of procedure for the hearing.\n\n(h)  What are the individual's rights in the actual conduct of the hearing?  The individual must have the opportunity to:\n\n(1) Examine documents supporting the State or local agency's decision before and during the hearing;\n\n(2) Be assisted or represented by an attorney or other persons;\n\n(3) Bring witnesses;\n\n(4) Present arguments;\n\n(5) Question or refute testimony or evidence, including an opportunity to confront and cross-examine others at the hearing; and,\n\n(6) Submit evidence to help establish facts and circumstances.\n\n(i)  Who is responsible for conducting the fair hearing, and what are the specific responsibilities of that person?  The fair hearing must be conducted by an impartial official who does not have any personal stake or involvement in the decision and who was not directly involved in the initial adverse action that resulted in the hearing. The hearing official is responsible for:\n\n(1) Administering oaths or affirmations, as required by the State;\n\n(2) Ensuring that all relevant issues are considered;\n\n(3) Ensuring that all evidence necessary for a decision to be made is presented at the hearing, and included in the record of the hearing;\n\n(4) Ensuring that the hearing is conducted in an orderly manner, in accordance with due process; and\n\n(5) Making a hearing decision.\n\n(j)  How is a hearing decision made?  The hearing official must make a decision that complies with Federal laws and regulations, and is based on the facts in the hearing record. In making the decision, the hearing official must summarize the facts of the case, specify the reasons for the decision, and identify the evidence supporting the decision and the laws or regulations that the decision upholds. The decision made by the hearing official is binding on the State or local agency.\n\n(k)  What is the time limit for making a hearing decision and notifying the individual of the decision?  A hearing decision must be made, and the individual notified of the decision, in writing, within 45 days of the request for the hearing. The notification must include the reasons for the decision.\n\n(l)  How does the hearing decision affect the individual's receipt of CSFP benefits?  If a hearing decision is in favor of an applicant who was denied CSFP benefits, the receipt of benefits must begin within 45 days from the date that the hearing was requested, if the applicant is still eligible for the program. If the hearing decision is against a participant, the State or local agency must discontinue benefits as soon as possible, or at a date determined by the hearing official.\n\n(m)  What must be included in the hearing record?  In addition to the hearing decision, the hearing record must include a transcript or recording of testimony, or an official report of all that transpired at the hearing, along with all exhibits, papers, and requests made. The record must be maintained in accordance with \u00a7 247.29(a). The record of the hearing must be available for public inspection and copying, in accordance with the confidentiality requirements under \u00a7 247.36(b).\n\n(n)  What further steps may an individual take if a hearing decision is not in his or her favor?  If a hearing decision upholds the State or local agency's action, and a State-level review or rehearing process is available, the State or local agency must describe to the individual any State-level review or rehearing process. The State or local agency must also inform the individual of the right of the individual to pursue judicial review of the decision."], ["7:7:4.1.1.1.11.0.1.34", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.34 Management reviews.", "FNS", "", "", "", "(a)  What must the State agency do to ensure that local agencies meet program requirements and objectives?  The State agency must establish a management review system to ensure that local agencies, subdistributing agencies, and other agencies conducting program activities meet program requirements and objectives. As part of the system, the State agency must perform an on-site review of all local agencies, and of all storage facilities utilized by local agencies, at least once every two years. As part of the on-site review, the State agency must evaluate all aspects of program administration, including certification procedures, nutrition education, civil rights compliance, food storage practices, inventory controls, and financial management systems. In addition to conducting on-site reviews, the State agency must evaluate program administration on an ongoing basis by reviewing financial reports, audit reports, food orders, inventory reports, and other relevant information.\n\n(b)  What must the State agency do if it finds that a local agency is deficient in a particular area of program administration?  The State agency must record all deficiencies identified during the review and institute follow-up procedures to ensure that local agencies and subdistributing agencies correct all deficiencies within a reasonable period of time. To ensure improved program performance in the future, the State agency may require that local agencies adopt specific review procedures for use in reviewing their own operations and those of subsidiaries or contractors. The State agency must provide copies of review reports to FNS upon request."], ["7:7:4.1.1.1.11.0.1.35", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.35 Local agency appeals of State agency actions.", "FNS", "", "", "", "(a)  What recourse must the State agency provide local agencies to appeal a decision that adversely affects their participation in CSFP?  The State agency must establish a hearing procedure to allow local agencies to appeal a decision that adversely affects their participation in CSFP\u2014e.g., the termination of a local agency's participation in the program. The adverse action must be postponed until a decision on the appeal is made.\n\n(b)  What must the State agency include in the hearing procedure to ensure that the local agency has a fair chance to present its case?  The hearing procedure must provide the local agency:\n\n(1) Adequate advance notice of the time and place of the hearing;\n\n(2) An opportunity to review the record before the hearing, and to present evidence at the hearing;\n\n(3) An opportunity to confront and cross-examine witnesses; and\n\n(4) An opportunity to be represented by counsel, if desired.\n\n(c)  Who conducts the hearing and how is a decision on the appeal made?  The hearing must be conducted by an impartial person who must make a decision on the appeal that is based solely on the evidence presented at the hearing, and on program legislation and regulations. A decision must be made within 60 days from the date of the request for a hearing, and must be provided in writing to the local agency."], ["7:7:4.1.1.1.11.0.1.36", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.36 Confidentiality of applicants or participants.", "FNS", "", "", "", "(a)  Can the State or local agency disclose information obtained from applicants or participants to other agencies or individuals?  State and local agencies must restrict the use or disclosure of information obtained from CSFP applicants or participants to persons directly connected with the administration or enforcement of the program, including persons investigating or prosecuting program violations. The State or local agency may exchange participant information with other health or welfare programs for the purpose of preventing dual participation. In addition, with the consent of the participant, as indicated on the application form, the State or local agency may share information obtained with other health or welfare programs for use in determining eligibility for those programs, or for program outreach. However, the State agency must sign an agreement with the administering agencies for these programs to ensure that the information will be used only for the specified purposes, and that agencies receiving such information will not further share it.\n\n(b)  Can the State or local agency disclose the identity of persons making a complaint or allegation against another individual participating in or administering the program?  The State or local agency must protect the confidentiality, and other rights, of any person making allegations or complaints against another individual participating in, or administering CSFP, except as necessary to conduct an investigation, hearing, or judicial proceeding."], ["7:7:4.1.1.1.11.0.1.37", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.37 Civil rights requirements.", "FNS", "", "", "", "(a)  What are the civil rights requirements that apply to CSFP?  State and local agencies must comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d  et seq. ), Title IX of the Education Amendments of 1972 (20 U.S.C. 1681  et seq. ), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794  et seq. ), the Age Discrimination Act of 1975 (42 U.S.C. 6101  et seq. ), and titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101  et seq. ). State and local agencies must also comply with the Department's regulations on nondiscrimination (parts 15, 15a, and 15b of this title), and with the provisions of FNS Instruction 113-2, including the collection of racial/ethnic participation data and public notification of nondiscrimination policy. State and local agencies must ensure that no person shall, on the grounds of race, color, national origin, age, sex, or disability, be subjected to discrimination under the program.\n\n(b)  How does an applicant or participant file a complaint of discrimination?  CSFP applicants or participants who believe they have been discriminated against should file a discrimination complaint with the USDA Director, Office of Civil Rights, Room 326W, Whitten Building, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or telephone (202) 720-5964."], ["7:7:4.1.1.1.11.0.1.4", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.4 Agreements.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024]", "(a)  What agreements are necessary for agencies to administer CSFP?  The following agreements are necessary for agencies to administer CSFP:\n\n(1)  Agreements between FNS and State agencies.  Each State agency must enter into an agreement with FNS (Form FNS-74, the Federal-State Agreement) prior to receiving USDA Foods or administrative funds;\n\n(2)  Agreements between State agencies and local or subdistributing agencies.  The State agency must enter into written agreements with local or subdistributing agencies prior to making USDA Foods or administrative funds available to them. The agreements must contain the information specified in paragraph (b) of this section. Agreements between State and local agencies must also contain the information specified in paragraph (c) of this section. Copies of all agreements must be kept on file by the parties to the agreements; and\n\n(3)  Agreements between local and subdistributing agencies and other agencies.  The State agency must ensure that local and subdistributing agencies enter into written agreements with other agencies prior to making USDA Foods or administrative funds available to these other agencies. The agreements must contain the information specified in paragraph (b) of this section. Copies of all agreements must be kept on file by the parties to the agreements.\n\n(b)  What are the required contents of agreements?  All agreements described under paragraphs (a)(2) and (a)(3) of this section must contain the following:\n\n(1) An assurance that each agency will administer the program in accordance with the provisions of this part and with the provisions of part 250 of this chapter, unless they are inconsistent with the provisions of this part;\n\n(2) An assurance that each agency will maintain accurate and complete records for a period of three years from the close of the fiscal year to which they pertain, or longer if the records are related to unresolved claims actions, audits, or investigations;\n\n(3) A statement that each agency receiving USDA Foods for distribution is responsible for any loss resulting from improper distribution, or improper storage, care, or handling of USDA Foods;\n\n(4) A statement that each agency receiving program funds is responsible for any misuse of program funds;\n\n(5) A description of the specific functions that the State, subdistributing, or local agency is delegating to another agency; and\n\n(6) A statement specifying:\n\n(i) That either party may terminate the agreement by written notice to the other; and\n\n(ii) The minimum number of days of advance notice that must be given. (The advance notification period must be at least 30 days.)\n\n(c)  What other assurances or information must be included in agreements between State and local agencies?  In addition to the requirements under paragraph (b) of this section, agreements between State and local agencies must contain the following:\n\n(1) An assurance that the local agency will provide, or cause to be provided, nutrition education to participants, as required in \u00a7 247.18;\n\n(2) An assurance that the local agency will provide information to participants on other health, nutrition, and public assistance programs, and make referrals as appropriate, as required in \u00a7 247.14;\n\n(3) An assurance that the local agency will distribute USDA Foods in accordance with the approved food package guide rate;\n\n(4) An assurance that the local agency will take steps to prevent and detect dual participation, as required in \u00a7 247.19;\n\n(5) The names and addresses of all certification, distribution, and storage sites under the jurisdiction of the local agency; and\n\n(6) An assurance that the local agency will not subject any person to discrimination under the program on the grounds of race, color, national origin, age, sex, or disability.\n\n(d)  What is the duration of required agreements?  Agreements between FNS and State agencies are considered permanent, but may be amended at the initiation of State agencies or at the request of FNS. All amendments must be approved by FNS. The State agency establishes the duration of agreements it signs with local agencies or subdistributing agencies. The State agency may establish, or permit the local or subdistributing agency to establish, the duration of agreements between local or subdistributing agencies and other agencies. However, State and local agencies must comply with the requirements in \u00a7 250.4 of this chapter when entering into agreements with other entities."], ["7:7:4.1.1.1.11.0.1.5", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.5 State and local agency responsibilities.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024; 89 FR 104393, Dec. 23, 2024]", "State and local agencies are responsible for administering the program in accordance with the provisions of this part, and with the provisions of part 250 of this chapter, as applicable. Although the State agency may delegate some responsibilities to another agency, the State agency is ultimately responsible for all aspects of program administration. The following is an outline of the major responsibilities of State and local agencies; it is not intended to be all-inclusive.\n\n(a)  What are the major responsibilities shared by State and local agencies?  The major responsibilities shared by State and local agencies include:\n\n(1) Entering into required agreements;\n\n(2) Ordering USDA Foods for distribution;\n\n(3) Storing and distributing USDA Foods;\n\n(4) Establishing procedures for resolving complaints about USDA Foods;\n\n(5) Complying with civil rights requirements;\n\n(6) Maintaining accurate and complete records; and\n\n(7) Conducting program outreach.\n\n(b)  What are the major State agency responsibilities?  The major responsibilities of State agencies include:\n\n(1) Completing and submitting the State Plan;\n\n(2) Selecting local agencies to administer the program in local areas of the State;\n\n(3) Determining caseload needs, and submitting caseload requests to FNS;\n\n(4) Assigning caseload, and allocating administrative funds, to local agencies;\n\n(5) Establishing eligibility requirements, in accordance with the options provided to the State agency under \u00a7 247.9. (This function may not be delegated to another agency.);\n\n(6) Establishing nutritional risk criteria and a residency requirement for participants, if such criteria are to be used;\n\n(7) Establishing a financial management system that effectively accounts for funds received for program administration;\n\n(8) Developing a plan for the detection and prevention of dual participation, in coordination with CSFP local agencies;\n\n(9) Developing a plan for providing nutrition education to participants;\n\n(10) Establishing appeals and fair hearing procedures for local agencies and program participants;\n\n(11) Developing a management review system and conducting reviews of local agencies. (This function may not be delegated to another agency.);\n\n(12) Determining and pursuing claims, and establishing standards for pursuit of claims against participants;\n\n(13) Ensuring compliance with Federal audit requirements;\n\n(14) Providing guidance to local agencies, as needed;\n\n(15) Ensuring that program participation does not exceed the State agency's caseload allocation on an average monthly basis;\n\n(16) Making publicly available a list of all CSFP local agencies on a publicly available internet web page. The State agency must post the name, address, and telephone number for each local agency. The list must be updated, at a minimum, on an annual basis; and\n\n(17) Posting the State Plan that is currently in use on a publicly available internet web page.\n\n(c)  What are the major local agency responsibilities?  The major local agency responsibilities include:\n\n(1) Determining eligibility of applicants in accordance with eligibility criteria established by the State agency;\n\n(2) Complying with fiscal and operational requirements established by the State agency;\n\n(3) Ensuring that participation does not exceed the caseload assigned by the State agency;\n\n(4) Issuing foods to participants in accordance with the established food package guide rates;\n\n(5) Providing nutrition education and information on the availability of other nutrition and health assistance programs to participants;\n\n(6) Informing applicants of their rights and responsibilities in the program;\n\n(7) Meeting the special needs of homebound participants, to the extent possible; and\n\n(8) Pursuing claims against participants."], ["7:7:4.1.1.1.11.0.1.6", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.6 State Plan.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87245, Oct. 31, 2024]", "(a)  What is the State Plan?  The State Plan is a document that describes how the State agency will operate CSFP and the caseload needed to serve eligible applicants. The State agency must submit the State Plan to FNS for approval. Once submitted and approved, the State Plan is considered permanent, with amendments submitted at the State agency's initiative, or at FNS request. All amendments are subject to FNS approval. The State Plan may be submitted in the format provided in FNS guidance, in an alternate format, or in combination with other documents required by Federal regulations. The State Plan must be signed by the State agency official responsible for program administration. A copy of the State Plan must be kept on file at the State agency and must also be posted on a publicly available internet web page for public inspection.\n\n(b)  When must the State Plan be submitted?  The State Plan must be submitted by August 15 to take effect for the fiscal year beginning in the following October. FNS will provide notification of the approval or disapproval of the State Plan within 30 days of receipt, and will notify the State agency within 15 days of receipt if additional information is needed. Disapproval of the Plan will include a reason for the disapproval. Approval of the Plan is a prerequisite to the assignment of caseload and allocation of administrative funds, but does not ensure that caseload and funds will be provided.\n\n(c)  What must be included in the State Plan?  The State Plan must include:\n\n(1) The names and addresses of all local agencies and subdistributing agencies with which the State agency has entered into agreement;\n\n(2) The income eligibility standards and the options to be used relating to income or other eligibility requirements, as provided under \u00a7 247.9;\n\n(3) The nutritional risk criteria to be used, if the State chooses to establish such criteria;\n\n(4) A description of plans for serving participants and the caseload needed to serve them;\n\n(5) A description of plans for conducting outreach to participants;\n\n(6) A description of the system for storing and distributing USDA Foods;\n\n(7) A description of plans for providing nutrition education to participants;\n\n(8) A description of the means by which the State agency will detect and prevent dual participation;\n\n(9) A description of the standards the State agency will use in determining if the pursuit of a claim against a participant is cost-effective;\n\n(10) A description of the means by which the State will meet the needs of homebound participants;\n\n(11) Copies of all agreements entered into by the State agency;\n\n(12) The length of the State agency's certification period; and\n\n(13) A description of the process in place to verify the identity of participants before receipt of USDA Foods.\n\n(d)  When must the State agency submit amendments to the State Plan?  The State agency must submit amendments to FNS to reflect any changes in program operations or administration described in the State Plan, and to request additional caseload for the following caseload cycle. FNS may also require that the State Plan be amended to reflect changes in Federal law or policy. The State agency may submit amendments to the State Plan at any time during the fiscal year, for FNS approval. The amendments will take effect immediately upon approval, unless otherwise specified by FNS. If a State agency would like to receive additional caseload for the caseload cycle beginning the following January 1, it must submit an amendment to the Plan which conveys the request for additional caseload by November 5. The State agency must also describe in this submission any plans for serving participants at new sites. FNS action on the State agency's request for additional caseload is part of the caseload assignment process, as described under \u00a7 247.21."], ["7:7:4.1.1.1.11.0.1.7", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.7 Selection of local agencies.", "FNS", "", "", "", "(a)  How does a local agency apply to participate in CSFP?  Local agencies wishing to participate in CSFP must submit a written application to the State agency. The application must describe how the local agency will operate the program and, for nonprofit agencies, must include the agency's tax-exempt status. To be eligible to participate in CSFP, a nonprofit agency must have tax-exempt status under the Internal Revenue Code (IRC), or have applied for tax-exempt status with the Internal Revenue Service (IRS), and be moving towards such status. Nonprofit agencies organized or operated exclusively for religious purposes are automatically tax-exempt under the IRC. Nonprofit agencies required to obtain tax-exempt status must provide documentation from the IRS that they have obtained such status, or have applied for it.\n\n(b)  On what basis does the State agency make a decision on the local agency's application?  The State agency must approve or disapprove the local agency's application based on, at minimum, the following criteria:\n\n(1) The ability of the local agency to operate the program in accordance with Federal and State requirements;\n\n(2) The need for the program in the projected service area of the local agency;\n\n(3) The resources available (caseload and funds) for initiating a program in the local area; and\n\n(4) For nonprofit agencies, the tax-exempt status, with appropriate documentation.\n\n(c)  What must the State agency do if a nonprofit agency approved for CSFP is subsequently denied tax-exempt status by the IRS, or does not obtain this status within a certain period of time?  In accordance with paragraph (a) of this section, the State agency may approve a nonprofit agency that has applied to the IRS for tax-exempt status, and is moving toward compliance with the requirements for recognition of tax-exempt status. However, if the IRS subsequently denies a participating agency's application for recognition of tax-exempt status, the agency must immediately notify the State agency of the denial. The State agency must terminate the agency's agreement and participation immediately upon notification. If documentation of recognition of tax-exempt status is not received within 180 days of the effective date of the agency's approval to participate in CSFP, the State agency must terminate the agency's participation until such time as recognition of tax-exempt status is obtained. However, the State agency may grant an extension of 90 days if the agency demonstrates that its inability to obtain tax-exempt status in the 180-day period is due to circumstances beyond its control.\n\n(d)  How much time does the State agency have to make a decision on the local agency's application?  The State agency must inform the local agency of approval or denial of the application within 60 days of its receipt. If the application is denied, the State agency must provide a written explanation for the denial, along with notification of the local agency's right to appeal the decision, in accordance with \u00a7 247.35. If the application is approved, the State and local agency must enter into an agreement in accordance with the requirements of \u00a7 247.4."], ["7:7:4.1.1.1.11.0.1.8", 7, "Agriculture", "II", "A", "247", "PART 247\u2014COMMODITY SUPPLEMENTAL FOOD PROGRAM", "", "", "", "\u00a7 247.8 Individuals applying to participate in CSFP.", "FNS", "", "", "[70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020]", "(a)  What information must individuals applying to participate in CSFP provide?  To apply for or to be recertified for CSFP benefits, the applicant or caretaker of the applicant must provide the following information on the application:\n\n(1) Name and address, including some form of identification for each applicant;\n\n(2) Household income;\n\n(3) Household size; and\n\n(4) Other information related to eligibility, such as age\n\n(b)  What else is required on the application form?  The application form must include a nondiscrimination statement that informs the applicant that program standards are applied without discrimination by race, color, national origin, age, sex, or disability. After informing the applicant or caretaker of the applicant of his or her rights and responsibilities, in accordance with \u00a7 247.12, the local agency must ensure that the applicant or caretaker signs the application form beneath the following pre-printed statement. The statement must be read by, or to, the applicant or caretaker before signing.\n\n\u201cThis application is being completed in connection with the receipt of Federal assistance. Program officials may verify information on this form. I am aware that deliberate misrepresentation may subject me to prosecution under applicable State and Federal statutes. I am also aware that I may not receive CSFP benefits at more than one CSFP site at the same time. Furthermore, I am aware that the information provided may be shared with other organizations to detect and prevent dual participation. I have been advised of my rights and obligations under the program. I certify that the information I have provided for my eligibility determination is correct to the best of my knowledge.\n\nI authorize the release of information provided on this application form to other organizations administering assistance programs for use in determining my eligibility for participation in other public assistance programs and for program outreach purposes. (Please indicate decision by placing a checkmark in the appropriate box.) \n \n YES [ ] \n \n NO [ ]\u201d\n\nI authorize the release of information provided on this application form to other organizations administering assistance programs for use in determining my eligibility for participation in other public assistance programs and for program outreach purposes. (Please indicate decision by placing a checkmark in the appropriate box.)\n\nYES [ ]\n\nNO [ ]\u201d"]], "truncated": false, "filtered_table_rows_count": 613, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"agency\" = :p0 order by section_id limit 101", "params": {"p0": "FNS"}}, "facet_results": {"title_number": {"name": "title_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=FNS", "results": [{"value": 7, "label": 7, "count": 613, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&title_number=7", "selected": false}], "truncated": false}, "agency": {"name": "agency", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=FNS", "results": [{"value": "FNS", "label": "FNS", "count": 613, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json", "selected": true}], "truncated": false}, "part_number": {"name": "part_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=FNS", "results": [{"value": "250", "label": "250", "count": 48, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=250", "selected": false}, {"value": "247", "label": "247", "count": 37, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=247", "selected": false}, {"value": "210", "label": "210", "count": 34, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=210", "selected": false}, {"value": "273", "label": "273", "count": 32, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=273", "selected": false}, {"value": "283", "label": "283", "count": 32, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=283", "selected": false}, {"value": "292", "label": "292", "count": 31, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=292", "selected": false}, {"value": "246", "label": "246", "count": 30, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=246", "selected": false}, {"value": "226", "label": "226", "count": 29, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=226", "selected": false}, {"value": "249", "label": "249", "count": 27, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=249", "selected": false}, {"value": "248", "label": "248", "count": 26, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=248", "selected": false}, {"value": "275", "label": "275", "count": 24, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=275", "selected": false}, {"value": "220", "label": "220", "count": 23, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=220", "selected": false}, {"value": "215", "label": "215", "count": 21, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=215", "selected": false}, {"value": "225", "label": "225", "count": 20, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=225", "selected": false}, {"value": "272", "label": "272", "count": 18, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=272", "selected": false}, {"value": "277", "label": "277", "count": 18, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=277", "selected": false}, {"value": "245", "label": "245", "count": 16, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=245", "selected": false}, {"value": "227", "label": "227", "count": 15, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=227", "selected": false}, {"value": "251", "label": "251", "count": 14, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=251", "selected": false}, {"value": "235", "label": "235", "count": 12, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=235", "selected": false}, {"value": "253", "label": "253", "count": 12, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=253", "selected": false}, {"value": "240", "label": "240", "count": 11, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=240", "selected": false}, {"value": "278", "label": "278", "count": 10, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=278", "selected": false}, {"value": "281", "label": "281", "count": 10, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=281", "selected": false}, {"value": "271", "label": "271", "count": 9, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=271", "selected": false}, {"value": "295", "label": "295", "count": 9, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=295", "selected": false}, {"value": "274", "label": "274", "count": 8, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=274", "selected": false}, {"value": "279", "label": "279", "count": 8, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=279", "selected": false}, {"value": "252", "label": "252", "count": 7, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=252", "selected": false}, {"value": "276", "label": "276", "count": 7, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&part_number=276", "selected": false}], "truncated": true}}, "suggested_facets": [{"name": "subchapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&_facet=subchapter"}, {"name": "subpart", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&_facet=subpart"}], "next": "7~3A7~3A4~2E1~2E1~2E1~2E11~2E0~2E1~2E8,7~3A7~3A4~2E1~2E1~2E1~2E11~2E0~2E1~2E8", "next_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=FNS&_next=7~3A7~3A4~2E1~2E1~2E1~2E11~2E0~2E1~2E8%2C7~3A7~3A4~2E1~2E1~2E1~2E11~2E0~2E1~2E8&_sort=section_id", "private": false, "allow_execute_sql": true, "query_ms": 25.864657014608383, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}