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39513
Rules and Regulations Federal Register
Vol. 71, No. 134
Thursday, July 13, 2006
This section of the FEDERAL REGISTER 634, Alexandria, VA 22302, (703) 305– revising references to procurement and
contains regulatory documents having general 2590. audit procedures.
applicability and legal effect, most of which Previously, program regulations
are keyed to and codified in the Code of SUPPLEMENTARY INFORMATION:
required that State agencies, school food
Federal Regulations, which is published under Background authorities, sponsors and institutions
50 titles pursuant to 44 U.S.C. 1510. comply with the requirements of 7 CFR
Prior to August 14, 2000, the part 3015 concerning the procurement
The Code of Federal Regulations is sold by administrative requirements for awards
the Superintendent of Documents. Prices of of supplies, food, equipment and other
new books are listed in the first FEDERAL
and subawards for all USDA entitlement services with program funds. As a result
REGISTER issue of each week. programs were located in 7 CFR part of the August 14, 2000 grants
3015, Uniform Federal Assistance management rule, the requirements for
Regulations. Those programs covered by procurement procedures are now
DEPARTMENT OF AGRICULTURE 7 CFR part 3015 included the National governed by 7 CFR part 3016 and 7 CFR
School Lunch Program (NSLP), the part 3019, as applicable. This final rule
Food and Nutrition Service School Breakfast Program (SBP), the changes program regulations at 7 CFR
Summer Food Service Program (SFSP), part 210.21(c), 7 CFR part 215.14a(c), 7
7 CFR Parts 210, 215, 220, 225, 226 and the Child and Adult Care Food Program CFR part 220.16(c), 7 CFR part
235 (CACFP), the Special Milk Program for 225.17(a), 7 CFR part 226.22(c), 7 CFR
Children (SMP), and State part 235.9(a), 7 CFR part 235.9(c) and 7
RIN 0584–AD16 Administrative Expense Funds (SAE). CFR part 235.9(d) to reflect this change.
The corresponding requirements for Furthermore, program regulations
Child Nutrition Programs: Uniform
awards and subawards to State and local regarding audit procedures previously
Federal Assistance Regulations;
governmental organizations under required that State agencies, school food
Nondiscretionary Technical
USDA nonentitlement programs were authorities and institutions comply with
Amendments
found at subparts A through D of 7 CFR the requirements of 7 CFR part 3015
AGENCY: Food and Nutrition Service, part 3016, Uniform Administrative concerning the audit requirements for
USDA. Requirements for Grants and recipients and subrecipients of the
ACTION: Final rule. Cooperative Agreements to State and Department’s financial assistance. This
Local Governments. The administrative final rule makes technical revisions to 7
SUMMARY: This final rule makes requirements for awards and subawards CFR part 210.22(a), 7 CFR part
technical changes to the regulations to nongovernmental, non-profit 215.13(a), 7 CFR part 220.15(a), 7 CFR
governing the National School Lunch organizations were found at 7 CFR part part 225.10(a), and 7 CFR part 235.8(a)
Program, the Special Milk Program for 3019, Uniform Administrative to replace reference to 7 CFR part 3015
Children, the School Breakfast Program, Requirements for Grants and with reference to 7 CFR part 3052,
the Summer Food Service Program, the Agreements With Institutions of Higher Audits of State, Local Governments and
Child and Adult Care Food Program and Education, Hospitals, and Other Non- Nonprofit Organizations.
State Administrative Expense Funds. Profit Organizations.
The United States Department of Specific Changes
On August 14, 2000, USDA published
Agriculture (USDA), Food and Nutrition a final rule at 65 FR 49474 revising the • Revises the definition of 7 CFR part
Service (FNS) is revising its grants Department’s grants management 3015 in 7 CFR parts 210, 215, 220, 225,
management regulations to bring these regulations to bring its entitlement 226 and 235.
entitlement programs and their funds programs under the same regulations • Adds definitions of 7 CFR part 3016
under the same regulations that already that already applied to nonentitlement and 7 CFR part 3019 to 7 CFR parts 210,
apply to nonentitlement programs, and programs. The rule expanded the scope 215, 220, 225, 226 and 235.
to identify exceptions to these general of 7 CFR part 3016 and 7 CFR part 3019 • Removes the definition of 7 CFR
rules that apply only to entitlement to include entitlement programs and part 3017 wherever it appears, because
programs. This final rule is intended to deleted administrative requirements for this definition is no longer applicable.
update FNS program regulations, • Adds a definition of 7 CFR part
awards and subawards under such
reflecting the revision of USDA’s grants 3052 to 7 CFR parts 225 and 226.
programs from the scope of 7 CFR part • Amends procurement and audit
management regulations which brought 3015. It also established, in subpart E to
entitlement programs under the same procedures.
7 CFR part 3016, certain exceptions to
regulations that already applied to the general administrative requirements Definition of 7 CFR Part 3015
nonentitlement programs. In addition, that apply only to the entitlement One of the purposes of this final rule
this final rule also revises references to programs. is to revise the definition of 7 CFR part
procurement and audit procedures in This final rule makes technical 3015 in 7 CFR parts 210, 215, 220, 225,
FNS’s program regulations. changes to the program regulations 226 and 235. This revision notes the
DATES: Effective September 11, 2006. governing the NSLP (7 CFR part 210), applicability of 7 CFR part 3015 with
SMP (7 CFR part 215), SBP (7 CFR part regards to competition for discretionary
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FOR FURTHER INFORMATION CONTACT:
Melissa Rothstein, Chief, Program 220), SFSP (7 CFR part 225), CACFP (7 grants and cooperative agreements, costs
Analysis and Monitoring Branch, Child CFR part 226) and SAE (7 CFR part 235) requiring prior approval,
Nutrition Division, Food and Nutrition by incorporating those changes made in acknowledgement of USDA in support
Service, 3101 Park Center Drive, Room the August 14, 2000 final rule, and of publications and audiovisuals
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39514 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
produced under USDA programs, conducted in accordance with Office of by the private sector, of $100 million or
intergovernmental review of USDA Management and Budget Circular A–133 more in any one year. When such a
programs, and certain miscellaneous and the Department’s implementing statement is needed for a rule, section
USDA requirements. regulations at 7 CFR part 3052. 205 of the UMRA generally requires the
Department to identify and consider a
Definition of 7 CFR Part 3016 Executive Order 12866
reasonable number of regulatory
A new definition, 7 CFR part 3016, is This final rule has been determined to alternatives and adopt the least costly,
added by this final rule to 7 CFR parts be not significant for purposes of more cost-effective or least burdensome
210, 215, 220, 225, 226 and 235. 7 CFR Executive Order 12866 and therefore alternative that achieves the objectives
part 3016 refers to the Department’s has not been reviewed by the Office of of the rule.
Uniform Administrative Requirements Management and Budget. This final rule contains no Federal
for Grants and Cooperative Agreements Regulatory Impact Analysis mandates (under the regulatory
to State and Local Governments. provisions of Title II of the UMRA) that
Awards and subawards to State and Need for Action impose costs on State, local, or tribal
local governmental organizations under This action is needed because of governments or to the private sector of
USDA programs are also covered under changes to Departmental regulations on $100 million or more in any one year.
7 CFR part 3016. grants management. The Departmental This final rule is, therefore, not subject
regulations on entitlement programs are to the requirements of sections 202 and
Definition of 7 CFR Part 3019
now under the same regulations that 205 of the UMRA.
A new definition, 7 CFR part 3019, is already apply to nonentitlement
added by this final rule to 7 CFR parts Executive Order 12372
programs. In addition, this action
210, 215, 220, 225, 226 and 235. 7 CFR identifies exceptions to these general The National School Lunch Program,
part 3019 refers to the Department’s rules that apply only to entitlement Special Milk Program for Children, and
Uniform Administrative Requirements programs. School Breakfast Program are listed in
for Grants and Agreements with the Catalog of Federal Domestic
Institutions of Higher Education, Benefits Assistance under No. 10.555, 10.556
Hospitals, and Other Non-Profit The change simplifies grants and 10.553, respectively. The Child and
Organizations. Requirements for awards management regulations for all Adult Care Food Program, the Summer
and subawards to nongovernmental, recipients and is consistent with Food Service Program, and the State
non-profit organizations are also Departmental policy. Administrative Expense Funds are
covered under 7 CFR part 3019. listed under No. 10.558, No. 10.559 and
Costs No. 10.560, respectively. For reasons set
Definition of 7 CFR Part 3052 These revisions in grants management forth in the final rule in 7 CFR part
A new definition, 7 CFR part 3052, is requirements will have no cost to grant 3015, subpart V and related Notice (48
added by this final rule to 7 CFR parts recipients. FR 29115), these programs are included
225 and 226. 7 CFR part 3052 refers to in the scope of Executive Order 12372,
the Department’s regulations Regulatory Flexibility Act
which requires intergovernmental
implementing OMB Circular A–133. This final rule has been reviewed consultation with State and local
with regard to the requirements of the officials.
Procurement Procedure Regulatory Flexibility Act (5 U.S.C.
This final rule amends the 601–612). Roberto Salazar, Federalism Summary Impact Statement
procurement procedures outlined in 7 Administrator of the Food and Nutrition Executive Order 13132 requires
CFR part 210.21(c), 7 CFR part Service, has certified that this rule will Federal agencies to consider the impact
215.14a(c), 7 CFR part 220.16(c), 7 CFR not have a significant economic impact of their regulatory actions on State and
part 225.17(a) and 7 CFR part 226.22(c) on a substantial number of small local governments. Where such actions
stating that the school food authority, entities. This final rule will affect have federalism implications, agencies
sponsor or institution, as applicable, recipients of entitlement programs by are directed to provide a statement for
may use its own procurement placing their grants management inclusion in the preamble to the
procedures which reflect applicable requirements under the same regulations describing the agency’s
State and local laws and regulations, regulations that already apply to considerations in terms of the three
provided that procurements made with nonentitlement programs. Uniform categories called for under section
Program funds adhere to the standards requirements will ease the overall (6)(b)(2)(B) of Executive Order 13132.
set forth in 7 CFR part 3016 or 7 CFR administrative burden on recipients. FNS has considered the impact of this
part 3019, as applicable. This final rule rule on State and local governments and
Unfunded Mandates Reform Act
also amends 7 CFR part 235.9(a) and 7 has determined that this rule does not
CFR part 235.9(c) to require State Title II of the Unfunded Mandates have Federalism implications. This final
agencies to comply with the Reform Act of 1995 (UMRA), Public rule does not impose substantial or
procurement procedures of 7 CFR part Law 104–4, establishes requirements for direct compliance costs on State and
3016. Federal agencies to assess the effects of local governments. Therefore, under
their regulatory actions on State, local, Section 6(b) of the Executive Order, a
Audits and tribal governments and the private federalism summary impact statement is
This final rule amends the audit sector. Under section 202 of the UMRA, not required.
procedures outlined in 7 CFR part the Department generally must prepare
210.22(a), 7 CFR part 215.13(a), 7 CFR a written statement, including a cost- Executive Order 12988
part 220.15(a), 7 CFR part 225.10(a), and benefit analysis, for proposed and final This final rule has been reviewed
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7 CFR part 235.8(a). According to these rules with ‘‘Federal mandates’’ that may under Executive Order 12988, Civil
procedures, unless otherwise exempt, result in expenditures of $100 million or Justice Reform. This final rule is
audits at the State, school food authority more in any one year by State, local, or intended to have preemptive effect with
and institution levels shall be tribal governments, in the aggregate, or respect to any State or local laws,
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations 39515
regulations or policies which conflict does not require the submission of I Accordingly, 7 CFR parts 210, 215,
with its provisions or which would additional information. 220, 225, 226 and 235 are amended as
impede its full implementation. This follows:
Public Participation
final rule is not intended to have
retroactive effect unless that is specified This action is being finalized without PART 210—NATIONAL SCHOOL
in the DATES section of this preamble. prior notice or public comment under LUNCH PROGRAM
Prior to any judicial challenge to the authority of 5 U.S.C. 553(b)(3)(A) and I 1. The authority citation for 7 CFR
provisions of this final rule or the (B) because it only revises references to part 210 continues to read as follows:
application of its provisions, all procurement and audit procedures in
applicable administrative procedures the Child Nutrition Programs. Thus, the Authority: 42 U.S.C. 1751–1760, 1779.
must be exhausted. Department has determined in I 2. In § 210.2:
accordance with 5 U.S.C. 553(b) that I a. Revise the definition of 7 CFR part
Civil Rights Impact Analysis
Notice of Proposed Rulemaking and 3015;
FNS has reviewed this final rule in Opportunity for Public Comments is I b. Remove the definition of 7 CFR part
accordance with the Department unnecessary and contrary to the public 3017; and
Regulation 4300–4, ‘‘Civil Rights Impact interest and, in accordance with 5 I c. Add new definitions, 7 CFR part
Analysis,’’ to identify and address any U.S.C. 553(d), finds that good cause 3016 and 7 CFR part 3019 in
major civil rights impacts the final rule exists for making this action effective alphabetical order.
might have on minorities, women, and without prior public comment. The additions and revision read as
persons with disabilities. After a careful List of Subjects follows:
review of the rule’s intent and
provisions, FNS has determined that 7 CFR Part 210 § 210.2 Definitions.
this final rule will not in any way limit * * * * *
Children, Commodity School
or reduce participants’ ability to 7 CFR part 3015 means the Uniform
Program, Food assistance programs,
participate in the Child Nutrition Federal Assistance Regulations
Grants programs—social programs,
Programs on the basis of an individual’s published by the Department to
National School Lunch Program,
or group’s race, color, national origin, implement certain policies applicable to
Nutrition, Reporting and recordkeeping
sex, age, or disability. FNS found no all Department programs. The
requirements, Surplus agricultural
factors that would negatively and applicable provisions deal with
commodities.
disproportionately affect any group of competition for discretionary grants and
individuals. 7 CFR Part 215 cooperative agreements, costs requiring
prior approval, acknowledgement of
Paperwork Reduction Act Food and nutrition, Food assistance
Department support in publications and
programs, Grants programs—education,
The Paperwork Reduction Act of 1995 audiovisuals produced under
Grant programs—health, Infants and
(44 U.S.C. Chapter 35; see 5 CFR 1320) Department programs,
children, Milk, Reporting and
requires that the Office of Management intergovernmental review of Department
recordkeeping.
and Budget (OMB) approve all programs under Executive Order 12372,
collections of information by a Federal 7 CFR Part 220 and certain miscellaneous Department
agency before they can be implemented. Children, Food assistance programs, requirements.
Respondents are not required to respond 7 CFR part 3016 means the
Grant programs—social programs,
to any collection of information unless Department’s Uniform Administrative
Nutrition, Reporting and recordkeeping
it displays a current valid OMB control Requirements for Grants and
requirements, School Breakfast Program.
number. This final rule does not contain Cooperative Agreements to State and
any information collection requirements 7 CFR Part 225 Local Governments. 7 CFR part 3016
subject to approval by OMB under the Food and nutrition, Food assistance covers requirements for awards and
Paperwork Reduction Act of 1995. programs, Grant programs—health, subawards to State and local
Existing information collections have Infants and children, Labeling, governmental organizations under
been approved under the following Reporting and recordkeeping Department programs.
OMB control numbers: For the National requirements. * * * * *
School Lunch Program—0584–0006; for 7 CFR part 3019 means the
the Special Milk Program for Children— 7 CFR Part 226 Department’s Uniform Administrative
0584–0005; for the School Breakfast Accounting, Aged, Day care, Food and Requirements for Grants and
Program—0584–0012; for the Summer Nutrition, Food assistance programs, Agreements with Institutions of Higher
Food Service Program—0584–0280; for Grant programs. Grant programs— Education, Hospitals, and Other Non-
the Child and Adult Care Food health, American Indians, Individuals Profit Organizations. 7 CFR part 3019
Program—0584–0055; and for State with disabilities, Infants and children, covers requirements for awards and
Administrative Expense Funds—0584– Intergovernmental relations, Loan subawards to nongovernmental,
0067. programs, Reporting and recordkeeping nonprofit organizations under
requirements, Surplus agricultural Department programs.
Government Paperwork Elimination
Act commodities. * * * * *
7 CFR Part 235 § 210.3 [Amended]
FNS is committed to compliance with
the Government Paperwork Elimination Food and Nutrition Service, Food I 3. In § 210.3:
Act (GPEA), which requires Government assistance programs. Grant programs— a. Amend the third sentence of
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I
agencies to provide the public the education; Grant programs—health, paragraph (b) by removing the words
option of submitting information or Infants and children, Reporting and ‘‘part 235; part 245; parts 15, 15a, 15b,
transacting business electronically to recordkeeping requirements, School and 3015 of Departmental regulations’’
the maximum extent possible. This rule Breakfast and Lunch Programs. and adding in their place the words
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39516 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
‘‘parts 235 and 245 of this chapter; parts I 8. In § 210.22, revise paragraph (a) to and certain miscellaneous Department
15, 15a, 15b, 3015 and 3016 of this read as follows: requirements.
title’’; and (x–2) 7 CFR part 3016 means the
I b. Amend the second sentence of § 210.22 Audits. Department’s Uniform Administrative
paragraph (d) by removing the words (a) General. Unless otherwise exempt, Requirements for Grants and
‘‘part 245; parts 15, 15a, 15b, and 3015 audits at the State and school food Cooperative Agreements to State and
of Departmental regulations’’ and authority levels shall be conducted in Local Governments. 7 CFR part 3016
adding in their place the words ‘‘part accordance with Office of Management covers requirements for awards and
245 of this chapter; parts 15, 15a, 15b, and Budget Circular A–133 and the subawards to State and local
and 3016 or 3019, as applicable, of this Department’s implementing regulations governmental organizations under
title’’. at 7 CFR part 3052. For availability of Department programs.
the OMB Circular mentioned in this * * * * *
§ 210.5 [Amended] paragraph, please refer to 5 CFR 1310.3. (x–4) 7 CFR part 3019 means the
I 4. In § 210.5: * * * * * Department’s Uniform Administrative
I a. Amend the second sentence of Requirements for Grants and
paragraph (a) by removing the words ‘‘7 § 210.24 [Amended]
Agreements with Institutions of Higher
CFR part 3015’’ and adding in their I 9. In § 210.24, amend the first Education, Hospitals, and Other Non-
place the words ‘‘7 CFR part 3016’’. sentence by removing the words Profit Organizations. 7 CFR part 3019
I b. Amend the last sentence of ‘‘§ 3015.103 of this title’’ and adding in covers requirements for awards and
paragraph (d)(3) by removing the words their place the words ‘‘7 CFR part 3016 subawards to nongovernmental,
‘‘7 CFR part 3015’’ and adding in their and 7 CFR part 3019, as applicable’’. nonprofit organizations under
place the words ‘‘7 CFR part 3016’’. Department programs.
§ 210.25 [Amended]
§ 210.9 [Amended] * * * * *
I 10. In § 210.25: I 3. In § 215.3, the first sentence of
I 5. In § 210.9, amend paragraph (b)(4) I a. Amend the third sentence by
by removing the words ‘‘7 CFR part paragraph (d) is revised to read as
removing the words ‘‘the Department’s
3015’’ and adding in their place the follows:
Uniform Federal Assistance
words ‘‘7 CFR part 3015 and 7 CFR part Regulations, 7 CFR part 3015, subpart § 215.3 Administration.
3016, or 7 CFR part 3019, as N’’ and adding in their place the words
applicable’’. * * * * *
‘‘7 CFR part 3016’’; and (d) Each State agency desiring to take
§ 210.19 [Amended] I b. Amend the fourth sentence by part in the Program shall enter into a
adding, after the word ‘‘provisions’’, the written agreement with the Department
I 6. In § 210.19, amend the second words ‘‘, or the parallel provisions of 7
sentence of paragraph (a)(2) by for the administration of the Program in
CFR part 3019, as applicable,’’. the State in accordance with the
removing the words ‘‘, as applicable, 7
CFR part 3015’’ and adding in their provisions of this part, 7 CFR parts 235,
PART 215—SPECIAL MILK PROGRAM 245, 15, 15a, 15b and, as applicable, 7
place the words ‘‘7 CFR part 3015 and FOR CHILDREN
7 CFR part 3016, or 7 CFR part 3019, as CFR part 3015, 7 CFR part 3016 and 7
applicable’’. I 1. The authority citation for 7 CFR CFR part 3019, and with FNS
part 215 continues to read as follows: Instructions. * * *
I 7. In § 210.21,
I a. Amend the first sentence of * * * * *
Authority: 42 U.S.C. 1772 and 1779.
paragraph (a) by removing the words ‘‘7 I 4. In § 215.13:
CFR part 3015’’ and adding in their I 2. In § 215.2: I a. Revise paragraph (a);
place the words ‘‘7 CFR part 3016 or 7 I a. Revise paragraph (x–1); I b. Remove paragraph (b) and
CFR part 3019, as applicable,’’. I b. Remove paragraph (x–2); redesignate paragraphs (c) and (d) as
I b. Amend the first sentence of I c. Redesignate paragraph (x–4) and paragraphs (b) and (c), respectively; and
paragraph (b) by removing the words ‘‘7 (x–5) as paragraphs (x–5) and (x–6), I c. Amend newly designated paragraph
CFR part 3015’’ and adding in their respectively; and (b) by removing the word ‘‘OA’’
place the words ‘‘this part and 7 CFR I d. Add new paragraphs (x–2) and (x– wherever it appears and adding in its
part 3015, 7 CFR part 3016 and 7 CFR 4). place the word ‘‘OIG’’.
part 3019, as applicable,’’. The additions and revision read as The revision reads as follows:
I c. Revise paragraph (c). follows:
§ 215.13 Management evaluations and
The revision reads as follows: audits.
§ 215.2 Definitions.
§ 210.21 Procurement. * * * * * (a) Unless otherwise exempt, audits at
* * * * * (x–1) 7 CFR part 3015 means the the State and school food authority/
(c) Procurement procedure. State Uniform Federal Assistance Regulations child care institution levels shall be
agencies or school food authorities may published by the Department to conducted in accordance with Office of
use their own procedures for implement certain policies applicable to Management and Budget Circular A–133
procurement with program funds to the all Department programs. The and the Department’s implementing
extent that: applicable provisions deal with regulations at 7 CFR part 3052. For
(1) Procurements by public school competition for discretionary grants and availability of the OMB Circular
food authorities comply with applicable cooperative agreements, costs requiring mentioned in this paragraph, please
State and local laws and the standards prior approval, acknowledgement of refer to 5 CFR 1310.3.
set forth in 7 CFR part 3016; and Department support in publications and * * * * *
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(2) Procurements by nonprofit private audiovisuals produced under I 5. In § 215.14a:
school food authorities comply with the Department programs, I a. Amend the first sentence of
standards set forth in 7 CFR part 3019. intergovernmental review of Department paragraph (a) by removing the words
* * * * * programs under Executive Order 12372, ‘‘the Office of Management and Budget
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations 39517
(OMB) Circular A–102 and the (x–1) 7 CFR part 3015 means the I c. Amend newly redesignated
Department’s Uniform Federal Uniform Federal Assistance Regulations paragraph (b) by removing the word
Assistance Regulations, 7 CFR part published by the Department to ‘‘OA’’ each time it appears and adding
3015, subpart S (46 FR 55658)’’ and implement certain policies applicable to in its place the word ‘‘OIG’’.
adding in their place the words ‘‘this all Department programs. The The revision reads as follows:
part and 7 CFR part 3015, 7 CFR part applicable provisions deal with
3016 and 7 CFR part 3019, as competition for discretionary grants and § 220.15 Management evaluations and
applicable,’’; cooperative agreements, costs requiring audits.
I b. Amend the first sentence of prior approval, acknowledgement of (a) Unless otherwise exempt, audits at
paragraph (b) by removing the words Department support in publications and the State and institution levels shall be
‘‘OMB Circular A–102 and 7 CFR part audiovisuals produced under conducted in accordance with Office of
3015’’ and adding in their place the Department programs, Management and Budget Circular A–133
words ‘‘this part and 7 CFR part 3015, intergovernmental review of Department and the Department’s implementing
7 CFR part 3016 and 7 CFR part 3019, programs under Executive Order 12372, regulations at 7 CFR part 3052. For
as applicable’’; and and certain miscellaneous Department availability of the OMB Circular
I c. Revise paragraph (c). requirements. mentioned in this paragraph, please
The revision reads as follows: (x–2) 7 CFR part 3016 means the refer to 5 CFR 1310.3.
Department’s Uniform Administrative * * * * *
§ 215.14a Procurement standards.
Requirements for Grants and
* * * * * Cooperative Agreements to State and I 6. In § 220.16:
(c) Procurement procedure. State Local Governments. 7 CFR part 3016 I a. Amend the first sentence of
agencies, school food authorities or covers requirements for awards and paragraph (a) by removing the words
child care institutions may use their subawards to State and local ‘‘the Office of Management and Budget
own procedures for procurement with governmental organizations under (OMB) Circular A–102 and the
Program funds to the extent that: Department programs. Department’s Uniform Federal
(1) Procurements by public school Assistance Regulations, 7 CFR part
food authorities/child care institutions * * * * *
(x–4) 7 CFR part 3019 means the 3015, subpart S (46 FR 55658)’’ and
comply with applicable State or local adding in their place the words ‘‘7 CFR
laws and the standards set forth in this Department’s Uniform Administrative
Requirements for Grants and part 3016 or 7 CFR part 3019, as
part and in 7 CFR part 3016 and 7 CFR applicable,’’;
part 3019, as applicable; and Agreements with Institutions of Higher
Education, Hospitals, and Other Non- I b. Amend the first sentence of
(2) Procurements by nonprofit private
Profit Organizations. 7 CFR part 3019 paragraph (b) by removing the words
school food authorities/child care
covers requirements for awards and ‘‘OMB Circular A–102 and 7 CFR 3015’’
institutions comply with standards set
subawards to nongovernmental, and adding in their place the words ‘‘7
forth in 7 CFR part 3019.
nonprofit organizations under CFR part 3016 or 7 CFR part 3019, as
* * * * * Department programs. applicable’’; and
§ 215.15 [Amended] * * * * * I c. Revise paragraph (c).
I 6. In § 215.15: I 3. In § 220.3, revise the first sentence The revision reads as follows:
I a. Amend the third sentence by of paragraph (e) to read as follows:
§ 220.16 Procurement standards.
removing the words ‘‘the Department’s
Uniform Federal Assistance
§ 220.3 Administration. * * * * *
Regulations, 7 CFR part 3015, subpart * * * * * (c) Procurement procedure. State
N’’ and adding in their place the words (e) Each State agency desiring to take agencies or school food authorities may
‘‘7 CFR part 3016’’. part in any of the programs shall enter use their own procedures for
I b. Amend the fourth sentence by into a written agreement with the procurement with program funds to the
adding, after the word ‘‘provisions’’, the Department for the administration of the extent that:
words ‘‘, or the parallel provisions of 7 Program in the State in accordance with (1) Procurements by public school
CFR part 3019, as applicable,’’. the provisions of this part, 7 CFR parts food authorities comply with applicable
235, 245, 15, 15a, 15b and, as State or local laws and standards set
PART 220—SCHOOL BREAKFAST applicable, 7 CFR part 3015, 7 CFR part forth in 7 CFR part 3016; and
PROGRAM 3016 and 7 CFR part 3019, and with (2) Procurements by nonprofit private
FNS Instructions.* * * school food authorities comply with
I 1. The authority citation for 7 CFR * * * * *
part 220 continues to read as follows: standards set forth in 7 CFR part 3019.
§ 220.13 [Amended] * * * * *
Authority: 42 U.S.C. 1773, 1779, unless
otherwise noted. I 4. In § 220.13, amend the second § 220.18 [Amended]
sentence of paragraph (i) by removing
I 2. In § 220.2: I 7. In § 220.18:
I a. Revise paragraph (x–1); the words ‘‘, as applicable, the cost
principles contained in OMB Circular I a. Amend the third sentence by
I b. Remove paragraph (x–2);
A–87 and 7 CFR part 3015’’ and adding removing the words ‘‘the Department’s
I c. Redesignate paragraph (x–4) as
in their place the words ‘‘7 CFR part Uniform Federal Assistance
paragraph (x–5); and
I d. Add new paragraphs (x–2) and (x– 3015, and 7 CFR part 3016 or 7 CFR part Regulations, 7 CFR part 3015, subpart
4). 3019, as applicable’’. N’’ and adding in their place the words
‘‘7 CFR part 3016’’; and
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The additions and revision read as I 5. In § 220.15:
follows: I a. Revise paragraph (a); I b. Amend the fourth sentence by
I b. Remove paragraph (b) and adding, after the word ‘‘provisions’’, the
§ 220.2 Definitions. redesignate paragraphs (c) and (d) as words ‘‘, or the parallel provisions of 7
* * * * * paragraphs (b) and (c), respectively; and CFR part 3019, as applicable,’’.
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39518 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
PART 225—SUMMER FOOD SERVICE words ‘‘7 CFR part 3015, and 7 CFR part Authority: Secs. 9, 11, 14, 16, and 17,
PROGRAM 3016 or 7 CFR part 3019, as Richard B. Russell National School Lunch
applicable,’’. Act, as amended (42 U.S.C. 1758, 1759a,
I 1. The authority citation for 7 CFR 1762a, 1765 and 1766).
part 225 is revised to read as follows: § 225.10 Audits and management
evaluations. I 2. In § 226.2:
Authority: Secs. 9, 13 and 14, Richard B. I a. New definitions, 7 CFR part 3015,
Russell National School Lunch Act, as (a) * * * Unless otherwise exempt,
7 CFR part 3016, 7 CFR part 3019, and
amended (42 U.S.C. 1758, 1761 and 1762a). audits at the State and sponsor levels
7 CFR part 3052, are added in
shall be conducted in accordance with
I 2. In § 225.2, new definitions, 7 CFR alphabetical order; and
OMB Circular A–133 and the
part 3015, 7 CFR part 3016, 7 CFR part I b. The definition of Uniform Federal
Department’s implementing regulations
3019, and 7 CFR part 3052, are added Assistance Regulations is removed.
at 7 CFR part 3052. (To obtain the OMB
in alphanumerical order. The additions read as follows:
circular referenced in this paragraph,
The additions read as follows: see 5 CFR 1310.3.) * * * § 226.2 Definitions.
§ 225.2 Definitions. * * * * * * * * * *
* * * * * I 5. In § 225.17: 7 CFR part 3015 means the Uniform
7 CFR part 3015 means the Uniform I a. Revise paragraph (a); Federal Assistance Regulations
Federal Assistance Regulations I b. Amend paragraph (b) by removing published by the Department to
published by the Department to the words ‘‘7 CFR part 3015’’ and implement certain policies applicable to
implement certain policies applicable to adding in their place the words ‘‘7 CFR all Department programs. The
all Department programs. The part 3016 or 7 CFR part 3019, as applicable provisions deal with
applicable provisions deal with applicable’’. competition for discretionary grants and
competition for discretionary grants and I c. Amend the introductory text of cooperative agreements, costs requiring
cooperative agreements, costs requiring paragraph (d) by removing the words prior approval, acknowledgement of
prior approval, acknowledgement of ‘‘all sponsors are’’ and adding in their Department support in publications and
Department support in publications and place the words ‘‘each sponsor is’’ and audiovisuals produced under
audiovisuals produced under by removing the words ‘‘7 CFR part Department programs,
Department programs, 3015’’ and adding in their place the intergovernmental review of Department
intergovernmental review of Department words ‘‘7 CFR part 3016 or 7 CFR part programs under Executive Order 12372,
programs under Executive Order 12372, 3019, as applicable’’. and certain miscellaneous Department
and certain miscellaneous Department The revision reads as follows: requirements.
requirements. 7 CFR part 3016 means the
§ 225.17 Procurement standards.
7 CFR part 3016 means the Department’s Uniform Administrative
(a) State agencies and sponsors shall Requirements for Grants and
Department’s Uniform Administrative
comply with the requirements of 7 CFR Cooperative Agreements to State and
Requirements for Grants and
part 3016 or 7 CFR part 3019, as Local Governments. 7 CFR part 3016
Cooperative Agreements to State and
applicable, concerning the procurement covers requirements for awards and
Local Governments. 7 CFR part 3016
of supplies, food, equipment and other subawards to State and local
covers requirements for awards and
services with Program funds. These governmental organizations under
subawards to State and local
requirements ensure that such materials USDA programs.
governmental organizations under
and services are obtained for the 7 CFR part 3019 means the
Department programs.
7 CFR part 3019 means the program efficiently and economically Department’s Uniform Administrative
Department’s Uniform Administrative and in compliance with applicable laws Requirements for Grants and
Requirements for Grants and and executive orders. Sponsors may use Agreements with Institutions of Higher
Agreements with Institutions of Higher their own procedures for procurement Education, Hospitals, and Other Non-
Education, Hospitals, and Other Non- with Program funds to the extent that: Profit Organizations. 7 CFR part 3019
(1) Procurements by public sponsors covers requirements for awards and
Profit Organizations. 7 CFR part 3019
comply with applicable State or local subawards to nongovernmental,
covers requirements for awards and
laws and the standards set forth in 7 nonprofit organizations.
subawards to nongovernmental,
CFR part 3016; and 7 CFR part 3052 means the
nonprofit organizations under
(2) Procurements by private nonprofit Department’s regulations implementing
Department programs.
7 CFR part 3052 means the sponsors comply with standards set OMB Circular A–133. (To obtain the
Department’s regulations implementing forth in 7 CFR part 3019. OMB circular referenced in this
OMB Circular A–133. (To obtain the * * * * * definition, see 5 CFR 1310.3.)
OMB circular referenced in this § 225.18 [Amended] * * * * *
definition, see 5 CFR 1310.3.) I 3. In § 226.4, revise paragraph (j) to
I 6. In § 225.18, amend paragraph (a) by
* * * * * removing the words ‘‘the Department’s read as follows:
§ 225.7 [Amended] Uniform Federal Assistance Regulations § 226.4 Payments to States and use of
(7 CFR part 3015), subpart N’’ and funds.
I 3. In § 225.10, amend paragraph (a) by adding in their place the words ‘‘7 CFR
removing the first sentence and by * * * * *
part 3016 or 7 CFR part 3019, as (j) Method of funding. FNS shall
revising the second sentence, to read as applicable’’.
set forth below. authorize funds for State agencies in
I 4. In § 225.7, amend the first sentence accordance with 7 CFR part 3016.
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PART 226—CHILD AND ADULT CARE
of paragraph (f) by removing the words FOOD PROGRAM * * * * *
‘‘the Department’s Uniform Financial
Assistance Regulations (7 CFR part § 226.7 [Amended]
I 1. The authority citation for 7 CFR
3015)’’ and adding in their place the part 226 continues to read as follows: I 4. In § 226.7:
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Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations 39519
I a. Amend the first sentence of PART 235—STATE ADMINISTRATIVE 226, 245, 15, 15a, 15b, 3015, and 3016.
paragraph (b) by removing the words EXPENSE FUNDS * * *
‘‘as delineated in the Uniform Federal * * * * *
Assistance Regulations, at 7 CFR part I 1. The authority citation for 7 CFR
I 4. In § 235.8:
3015’’ and adding in their place the part 235 continues to read as follows:
I a. Revise paragraph (a);
words ‘‘in accordance with 7 CFR part Authority: Secs. 7 and 10 of the Child I b. Remove paragraphs (b) and (d) and
3015, 7 CFR part 3016 and 7 CFR part Nutrition Act of 1966, 80 Stat. 888, 889, as redesignate paragraphs (c) and (e) as
3019, as applicable’’; and amended (42 U.S.C. 1776, 1779).
paragraphs (b) and (c), respectively;
I b. Amend the first sentence of I c. Amend the first sentence of newly
I 2. In § 235.2:
paragraph (m) by removing the words I a. Revise paragraph (q–1); redesignated paragraph (b) by removing
‘‘the Uniform Federal Assistance I b. Remove paragraph (q–2); the word ‘‘OA’’ and adding in its place
Regulations, 7 CFR part 3015’’ and I c. Redesignate paragraph (q–4) as the word ‘‘OIG’’; and
adding in their place the words ‘‘7 CFR paragraph (q–5); and I d. Amend newly redesignated
part 3015, 7 CFR part 3016 and 7 CFR I d. Add a new paragraphs (q–2) and paragraph (c) by removing the word
part 3019, as applicable’’. (q–4). ‘‘OA’’ wherever it appears and adding in
§ 226.10 [Amended]
The revision and additions read as its place the word ‘‘OIG’’.
follows: The revision reads as follows:
I 5. In § 226.10, amend paragraph (b)(4)
by removing the words ‘‘the § 235.2 Definitions. § 235.8 Management evaluations and
Department’s Uniform Federal * * * * * audits.
Assistance Regulations (7 CFR part (q–1) 7 CFR part 3015 means the (a) Unless otherwise exempt, audits at
3015)’’ and adding in their place the Uniform Federal Assistance Regulations the State level shall be conducted in
words ‘‘7 CFR part 3016 or 7 CFR part published by the Department to accordance with Office of Management
3019, as applicable’’. implement certain policies applicable to and Budget Circular A–133, and the
I 6. In § 226.22: all Department programs. The Department’s implementing regulations
I a. Revise paragraph (c); and applicable provisions deal with at 7 CFR part 3052. (To obtain the OMB
I b. Revise the second sentence of
competition for discretionary grants and circular referenced in this definition,
paragraph (l)(5). cooperative agreements, costs requiring see 5 CFR 1310.3.)
The revisions read as follows: prior approval, acknowledgement of * * * * *
Department support in publications and
I 5. In § 235.9:
§ 226.22 Procurement standards. audiovisuals produced under USDA
I a. Amend the first sentence of
* * * * * programs, intergovernmental review of
paragraph (a) by removing the words
(c) Institutions may use their own Department programs under Executive
‘‘the Office of Management and Budget
procedures for procurement with Order 12372, and certain miscellaneous
(OMB) Circular A–102 and the
Program funds to the extent that: Department requirements.
(q–2) 7 CFR part 3016 means the Department’s Uniform Federal
(1) Procurements by public Assistance Regulations, 7 CFR part
institutions comply with applicable Department’s Uniform Administrative
Requirements for Grants and 3015, subpart S (46 FR 55658)’’ and
State or local laws and standards set adding in their place the words ‘‘7 CFR
forth in 7 CFR part 3016; Cooperative Agreements to State and
Local Governments. 7 CFR part 3016 part 3016’’;
(2) Procurements by private nonprofit I b. Remove the second sentence of
covers requirements for awards and
institutions comply with standards set paragraph (a);
subawards to State and local
forth in 7 CFR part 3019; and I c. Amend the first sentence of
governmental organizations under
(3) All procurements comply with the Department programs. paragraph (b) by removing the words
procurement requirements in ‘‘OMB Circular A–102 and 7 CFR part
paragraphs (d) through (m) of this * * * * * 3015’’ and adding in their place the
section. (q–4) 7 CFR part 3019 means the words ‘‘7 CFR part 3016’’;
Department’s Uniform Administrative I d. Revise paragraph (c); and
* * * * * Requirements for Grants and
(l) * * * I e. Amend paragraph (d) by removing
Agreements with Institutions of Higher the words ‘‘OMB Circular A–102 and 7
(5) * * * These requirements are Education, Hospitals, and Other Non-
found in § 3015.175. * * * CFR part 3015, subpart R (46 FR
Profit Organizations. 7 CFR part 3019 55654)’’ and adding in their place the
* * * * * covers requirements for awards and words ‘‘7 CFR part 3016’’.
subawards to nongovernmental, The revision reads as follows:
§ 226.24 [Amended]
nonprofit organizations under
I 7. Amend § 226.24 by removing the Department programs. § 235.9 Procurement and property
words ‘‘the Department’s Uniform * * * * * management standards.
Federal Assistance Regulations (7 CFR I 3. In § 235.3, revise the first sentence * * * * *
part 3015)’’ and adding in their place of paragraph (b) to read as follows: (c) Procurement procedure. The State
the words ‘‘7 CFR part 3016 or 7 CFR agency may use its own procurement
part 3019, as applicable’’. § 235.3 Administration. procedures which reflect applicable
* * * * * State laws and regulations, in
§ 226.25 [Amended]
(b) Each State agency desiring to accordance with 7 CFR part 3016.
I 8. In § 226.25, amend paragraph (a) by receive payments under this part shall * * * * *
removing the words ‘‘the Uniform enter into a written agreement with the
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Federal Assistance Regulations’’ and Department for the administration of the § 235.11 [Amended]
adding in their place the words ‘‘7 CFR child nutrition programs in accordance I 6. In § 235.11:
part 3016 or 7 CFR part 3019, as with the applicable requirements of this I a. Amend the third sentence of
applicable’’. part, 7 CFR parts 210, 215, 220, 225, paragraph (a) by removing the words ‘‘,
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39520 Federal Register / Vol. 71, No. 134 / Thursday, July 13, 2006 / Rules and Regulations
as applicable, the provisions of Office of Compliance No. 1030. Holders of power SUPPLEMENTARY INFORMATION: The
Management and Budget Circular A– reactor operating licenses would have Federal Reserve Banks make primary
102, Attachments F and G and 7 CFR been allowed to store spent fuel in the and secondary credit available to
part 3015, subparts G and H’’ and NUHOMSHD cask system under a depository institutions as a backup
adding in their place the words ‘‘the general license. The direct final rule was source of funding on a short-term basis,
provisions of 7 CFR part 3016’’; to become effective on July 17, 2006. usually overnight. The primary and
I b. Amend the first sentence of The NRC also concurrently published secondary credit rates are the interest
paragraph (b)(5)(v) by removing the an identical proposed rule on May 2, rates that the twelve Federal Reserve
words ‘‘7 CFR part 3015, subpart L’’ and 2006 (71 FR 25782). Banks charge for extensions of credit
adding in their place the words ‘‘7 CFR In the May 2, 2006, direct final rule, under these programs. In accordance
part 3016’’; and NRC stated that if any significant with the Federal Reserve Act, the
I c. Amend paragraph (d) by removing adverse comments were received, a primary and secondary credit rates are
the words ‘‘the Department’s Uniform notice of timely withdrawal of the direct established by the boards of directors of
Federal Assistance Regulations, 7 CFR final rule would be published in the the Federal Reserve Banks, subject to
part 3015 subpart N’’ and adding in Federal Register. As a result, the direct the review and determination of the
their place the words ‘‘7 CFR part final rule would not take effect. Board.
3016’’. The NRC received significant adverse The Board approved requests by the
comments on the direct final rule; Reserve Banks to increase by 25 basis
Dated: July 5, 2006.
therefore, the NRC is withdrawing the points the primary credit rate in effect
Roberto Salazar,
direct final rule. As stated in the May 2, at each of the twelve Federal Reserve
Administrator, Food and Nutrition Service. 2006, direct final rule, NRC will address Banks, thereby increasing from 6.00
[FR Doc. 06–6185 Filed 7–12–06; 8:45 am] the comments received on the May 2, percent to 6.25 percent the rate that
BILLING CODE 3410–30–P 2006, companion proposed rule in a each Reserve Bank charges for
subsequent final rule. The NRC will not extensions of primary credit. As a result
initiate a second comment period on of the Board’s action on the primary
NUCLEAR REGULATORY this action. credit rate, the rate that each Reserve
COMMISSION Dated at Rockville, Maryland, this 28th day Bank charges for extensions of
of June, 2006. secondary credit automatically
10 CFR Part 72 For the Nuclear Regulatory Commission. increased from 6.50 percent to 6.75
RIN 3150–AH93 Luis A. Reyes, percent under the secondary credit rate
Executive Director for Operations. formula. The final amendments to
List of Approved Spent Fuel Storage [FR Doc. E6–11027 Filed 7–12–06; 8:45 am]
Regulation A reflect these rate changes.
Casks: NUHOMSHD Addition; The 25-basis-point increase in the
BILLING CODE 7590–01–P
Withdrawal of Direct Final Rule primary credit rate was associated with
a similar increase in the target for the
AGENCY: U.S. Nuclear Regulatory Federal funds rate (from 5.00 percent to
Commission. FEDERAL RESERVE SYSTEM 5.25 percent) approved by the Federal
ACTION: Direct final rule; withdrawal.
12 CFR Part 201 Open Market Committee (Committee)
and announced at the same time. A
SUMMARY: The U.S. Nuclear Regulatory [Regulation A] press release announcing these actions
Commission (NRC) is withdrawing a indicated that:
direct final rule that would have added Extensions of Credit by Federal
Recent indicators suggest that economic
the Transnuclear, Inc., NUHOMSHD Reserve Banks
growth is moderating from its quite strong
cask system to the ‘‘List of Approved AGENCY: Board of Governors of the pace earlier this year, partly reflecting a
Spent Fuel Storage Casks’’ to add Federal Reserve System. gradual cooling of the housing market and
Certificate of Compliance No. 1030. The the lagged effects of increases in interest rates
ACTION: Final rule.
NRC is taking this action because it has and energy prices.
received significant adverse comments SUMMARY: The Board of Governors of the Readings on core inflation have been
in response to an identical proposed Federal Reserve System (Board) has elevated in recent months. Ongoing
rule which was concurrently published productivity gains have held down the rise
adopted final amendments to its in unit labor costs, and inflation expectations
with the direct final rule. Regulation A to reflect the Board’s remain contained. However, the high levels
DATES: The final rule published on May approval of an increase in the primary of resource utilization and of the prices of
2, 2006 (71 FR 25740) is withdrawn credit rate at each Federal Reserve Bank. energy and other commodities have the
effective July 13, 2006. The secondary credit rate at each potential to sustain inflation pressures.
Reserve Bank automatically increased Although the moderation in the growth of
FOR FURTHER INFORMATION CONTACT:
by formula as a result of the Board’s aggregate demand should help to limit
Jayne M. McCausland, Office of Nuclear inflation pressures over time, the Committee
Material Safety and Safeguards, U.S. primary credit rate action.
judges that some inflation risks remain. The
Nuclear Regulatory Commission, DATES: The amendments to part 201 extent and timing of any additional firming
Washington, DC 20555, telephone (301) (Regulation A) are effective July 13, that may be needed to address these risks
415–6219 (e-mail: jmm2@nrc.gov). 2006. The rate changes for primary and will depend on the evolution of the outlook
SUPPLEMENTARY INFORMATION: On May 2, secondary credit were effective on the for both inflation and economic growth, as
dates specified in 12 CFR 201.51, as implied by incoming information. In any
2006 (71 FR 25740), the NRC published event, the Committee will respond to changes
in the Federal Register a direct final amended.
in economic prospects as needed to support
rule amending its regulations in 10 CFR
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FOR FURTHER INFORMATION CONTACT: the attainment of its objectives.
72.214 to add the Transnuclear, Inc., Jennifer J. Johnson, Secretary of the
NUHOMS HD cask system listing Board (202/452–3259); for users of Regulatory Flexibility Act Certification
within the ‘‘List of Approved Spent Fuel Telecommunication Devices for the Deaf Pursuant to the Regulatory Flexibility
Storage Casks’’ to add Certificate of (TDD) only, contact 202/263–4869. Act (5 U.S.C. 605(b)), the Board certifies
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