81_FR_66675 81 FR 66487 - Regulatory Implementation of Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

81 FR 66487 - Regulatory Implementation of Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

DEPARTMENT OF AGRICULTURE
Food and Nutrition Service

Federal Register Volume 81, Issue 188 (September 28, 2016)

Page Range66487-66500
FR Document2016-21760

This rule amends FNS regulations to implement the Department of Agriculture final guidance of USDA-specific requirements in the Federal Agency Regulations for Grants and Agreements.

Federal Register, Volume 81 Issue 188 (Wednesday, September 28, 2016)
[Federal Register Volume 81, Number 188 (Wednesday, September 28, 2016)]
[Rules and Regulations]
[Pages 66487-66500]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21760]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / 
Rules and Regulations

[[Page 66487]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 210, 215, 220, 225, 226, 227, 235, 240, 246, 247, 248, 
249, 253, 272, 273, 274, 276, and 277

RIN 0584-AE42


Regulatory Implementation of Office of Management and Budget's 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards

AGENCY: Food and Nutrition Service (FNS), USDA.

ACTION: Final rule.

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

SUMMARY: This rule amends FNS regulations to implement the Department 
of Agriculture final guidance of USDA-specific requirements in the 
Federal Agency Regulations for Grants and Agreements.

DATES: Effective September 28, 2016.

FOR FURTHER INFORMATION CONTACT: Lael Lubing, Food and Nutrition 
Service, Financial Management, Grants Division, 3101 Park Center Drive, 
Room 732, Alexandria, VA or [email protected].

SUPPLEMENTARY INFORMATION: This rule amends FNS regulations to 
implement the Department of Agriculture final guidance of USDA-specific 
requirements at 2 CFR part 400 on December 19, 2014 (79 FR 75871). 
Prior to that, on December 26, 2013, the Office of Management and 
Budget (OMB) published ``Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards'' in 2 CFR part 
200 (78 FR 78589). OMB's final guidance at 2 CFR part 200 followed a 
Notice of Proposed Guidance issued February 1, 2013, and an Advanced 
Notice of Proposed Guidance issued February 28, 2012. The OMB final 
guidance incorporated feedback received from the public in response to 
those earlier issuances. Additional supporting resources are available 
from the Council on Financial Assistance Reform at www.cfo.gov/COFAR. 
In accordance with the good cause exception under the APA, it is 
unnecessary to engage in the Notice and Comment provisions of 5 U.S.C. 
553 because the provisions set forth in this rulemaking are a non-
discretionary implementation of USDA requirements codified at 2 CFR 
part 400. The APA exempts from the prior notice and opportunity for 
comment requirements rules ``relating to Agency management or personnel 
or to public property, loans, grants, benefits, or contracts'' (5 
U.S.C. 553 (a)(2)).
    Currently, references appear throughout the FNS regulations to the 
OMB guidance consolidated under the ``Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards'' and the USDA implementing regulations in Title 2, of the CFR. 
There are over 100 references throughout 19 Parts of the FNS 
regulations that must be revised to accurately reference the revised 
OMB and USDA regulations. FNS is therefore proposing nomenclature 
revisions to the following Parts of Title 7: 210, 215, 220, 225, 226, 
227, 235, 240, 246, 247, 248, 249, 253, 272, 273, 274, 276, and 277. 
The revisions will remove the following references, and other 
associated outdated references, and replace them as appropriate:

------------------------------------------------------------------------
 
-------------------------------------------------------------------------
References:
  7 CFR Part 3015
  7 CFR Part 3016
  7 CFR Part 3017
  7 CFR Part 3018
  7 CFR Part 3019
  7 CFR Part 3021
  7 CFR Part 3052
  OMB Circular A-133
  OMB Circular A-102
  OMB Circular A-87
  SF-269
------------------------------------------------------------------------

    As noted above, the final OMB guidance incorporated feedback 
received from the public.

Procedural Matters

Executive Order 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule has been determined to be not significant 
and, therefore, was not reviewed by the Office of Management and Budget 
(OMB) in conformance with Executive Order 12866.

Regulatory Impact Analysis

    This rule has been designated as not significant by the Office of 
Management and Budget, therefore, no Regulatory Impact Analysis is 
required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies 
to analyze the impact of rulemaking on small entities and consider 
alternatives that would minimize any significant impacts on a 
substantial number of small entities. Pursuant to that review, it has 
been certified that this rule would not have a significant impact on a 
substantial number of small entities.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Department generally must prepare a written statement, including a cost 
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures by State, local or tribal 
governments, in the aggregate, or the private sector, of $100 million 
or more in any one year. When such a statement is needed for a rule, 
Section 205 of the UMRA generally requires the Department to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the most cost effective or least burdensome alternative that achieves 
the objectives of the rule.
    This rule does not contain Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local and tribal 
governments or the private sector of $100 million or more in any one 
year. Thus, the rule is

[[Page 66488]]

not subject to the requirements of sections 202 and 205 of the UMRA.

Federalism Summary Impact Statement

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulations 
describing the agency's considerations in terms of the three categories 
called for under Section (6)(b)(2)(B) of Executive Order 13121. The 
Department has considered the impact of this rule on State and local 
governments and has determined that this rule does not have federalism 
implications. Therefore, under section 6(b) of the Executive Order, a 
federalism summary is not required.

Executive Order 12988, Civil Justice Reform

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

Civil Rights Impact Analysis

    FNS has reviewed this rule in accordance with USDA Regulation 4300-
4, ``Civil Rights Impact Analysis,'' to identify any major civil rights 
impacts the rule might have on program participants on the basis of 
age, race, color, national origin, sex or disability. After a review of 
the rule's intent and provisions, FNS has determined that this rule is 
not expected to affect the participation of protected individuals in 
FNS program(s).

Executive Order 13175

    Executive Order 13175 requires Federal agencies to consult and 
coordinate with Tribes on a government-to-government basis on policies 
that have Tribal implications, including regulations, legislative 
comments or proposed legislation, and other policy statements or 
actions that have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes. FNS has assessed the impact 
of this rule on Indian tribes and determined that this rule does not, 
to our knowledge, have tribal implications that require tribal 
consultation under E.O. 13175. If a Tribe requests consultation, FNS 
will work with the Office of Tribal Relations to ensure meaningful 
consultation is provided where changes, additions and modifications 
identified herein are not expressly mandated by Congress.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; 5 CFR 
1320) requires the Office of Management and Budget (OMB) approve all 
collections of information by a Federal agency before they can be 
implemented. Respondents are not required to respond to any collection 
of information unless it displays a current valid OMB control number. 
This rule does not contain information collection requirements subject 
to approval by the Office of Management and Budget under the Paperwork 
Reduction Act of 1994.

E-Government Act Compliance

    The Department is committed to complying with the E-Government Act, 
to promote the use of the Internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects

7 CFR Part 210

    Grant programs--education, Grant programs--health.

7 CFR Part 215

    Grant programs--education, Grant programs--health.

7 CFR Part 220

    Grant programs--education, Grant programs--health.

7 CFR Part 225

    Grant programs--health.

7 CFR Part 226

    Grant programs, Grant programs--health.

7 CFR Part 227

    Grant programs--education, Grant programs--health.

7 CFR Part 235

    Grant programs--education, Grant programs--health.

7 CFR Part 240

    Grant programs--education, Grant programs--health.

7 CFR Part 246

    Grant programs--health, Grant programs--social programs.

7 CFR Part 247

    Grant programs--health, Grant programs--social programs.

7 CFR Part 248

    Grant programs--social programs.

7 CFR Part 249

    Grant programs--social programs.

7 CFR Part 253

    Grant programs--social programs.

7 CFR Part 272

    Grant programs--social programs.

7 CFR Part 273

    Grant programs--social programs.

7 CFR Part 274

    Grant programs--social programs.

7 CFR Part 276

    Grant programs--social programs.

7 CFR Part 277

    Grant programs--social programs.

    Accordingly, 7 CFR parts 210, 215, 220, 225, 226, 227, 235, 240, 
246, 247, 248, 249, 253, 272, 273, 274, 276, and 277 are amended as 
follows:

PART 210--NATIONAL SCHOOL LUNCH PROGRAM

0
1. The authority citation for 7 CFR part 210 continues to read as 
follows:

    Authority: 42 U.S.C. 1751-1760, 1779.


Sec. Sec.  210.5, 210.9, 210.19, 210.20, 210.22, 210.24, 210.25   
[Amended]

0
2. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
210.5.......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.

[[Page 66489]]

 
210.9.......................  7 CFR part 3015 and   2 CFR part 200,
                               7 CFR part 3016, or   subpart D and USDA
                               7 CFR part 3019, as   implementing
                               applicable.           regulations 2 CFR
                                                     part 400 and part
                                                     415.
210.19......................  7 CFR part 3015 and   2 CFR part 200,
                               7 CFR part 3016, or   subpart D and USDA
                               7 CFR part 3019.      implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
210.22......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart F and
                               A-133 and the         Appendix XI
                               Department's          (Compliance
                               implementing          Supplement) and
                               regulations at 7      USDA implementing
                               CFR part 3052. For    regulations 2 CFR
                               availability of the   part 400 and part
                               OMB Circular          415.
                               mentioned in this
                               paragraph, please
                               refer to 5 CFR
                               1310.3.
210.22......................  7 CFR part 3015.....  2 CFR part 200,
                                                     subpart F and
                                                     Appendix XI, and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
210.24......................  Sec.  Sec.   3016.43  2 CFR 200.338
                               and 3019.62 of this   through 200.342.
                               title.
210.25......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
3. In Sec.  210.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3018; 7 CFR part 3019, and 7 CFR part 3052;
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Revise the definition for Applicable credits.
0
d. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions and revision read as follows:


Sec.  210.2  Definitions.

* * * * *
    2 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).
* * * * *
    Applicable credits shall have the meaning established in 2 CFR part 
200 and USDA implementing regulations 2 CFR part 400 and part 415.
* * * * *
    USDA 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.
* * * * *

0
4. In Sec.  210.3:
0
a. Revise the last sentence of paragraph (b).
0
b. Revise the last sentence of paragraph (d).
    The revisions read as follows:


Sec.  210.3  Administration.

* * * * *
    (b) * * * 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.
* * * * *
    (d) * * * 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.

0
5. Revise Sec.  210.21(a) and (b), and the introductory text of 
paragraph (c), to read as follows:


Sec.  210.21   Procurement.

    (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.
    (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.
    (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.
* * * * *

[[Page 66490]]

Sec.  210.25   [Amended]

0
6. In Sec.  210.25, remove the words ``or the parallel provisions of 7 
CFR part 3019,''.

PART 215--SPECIAL MILK PROGRAM FOR CHILDREN

0
7. The authority citation for 7 CFR part 215 continues to read as 
follows:

    Authority: 42 U.S.C. 1772 and 1779.


Sec. Sec.  215.3, 215.11, 215.13, 215.15, 215.16   [Amended]

0
8. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
215.3.......................  7 CFR part 3015, 7    2 CFR part 200,
                               CFR part 3016 and 7   subpart D and USDA
                               CFR part 3019, and    implementing
                               with.                 regulations 2 CFR
                                                     part 400, subparts
                                                     B and D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415, and.
215.11......................  SF-269..............  FNS-777.
215.13......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart F, and
                               A-133 and the         Appendix XI,
                               Department's          Compliance
                               implementing          Supplement and
                               regulations at 7      USDA's implementing
                               CFR part 3052.        regulations 2 CFR
                                                     part 400 and part
                                                     415.
215.15......................  at Sec.  Sec.         2 CFR 200.338
                               3016.43 and 3019.62   through 200.342.
                               of this title.
215.16......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     subparts B and D
                                                     and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
9. In Sec.  215.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3018, 7 CFR part 3019, and 7 CFR part 3052.
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Revise the definition for Applicable credits.
0
d. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions and revision read as follows:


215.2   Definitions.

* * * * *
    2 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).
* * * * *
    Applicable credits shall have the meaning established in 2 CFR part 
200 and USDA implementing regulations 2 CFR part 400 and part 415.
* * * * *
    USDA 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.
* * * * *


Sec.  215.13   [Amended]

0
10. Amend Sec.  215.13(a) by removing the last sentence.

0
11. Revise Sec.  215.14a (a) and (b), and the introductory text of 
paragraph (c), to read as follows:


Sec.  215.14a  Procurement standards.

    (a) General. State agencies and school food authorities shall 
comply with the requirements of this part and 2 CFR part 200 and USDA 
implementing regulations 2 CFR part 400 and part 415, as applicable 
concerning the procurement of all goods and services with nonprofit 
school food service account funds.
    (b) Contractual responsibilities. The standards contained in this 
part and 2 CFR part 200, subpart D and USDA implementing regulations 2 
CFR part 200 subparts B and 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 
contract. 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.
    (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 of 2 CFR 200.236 and 
Appendix II, Contract Provisions for Non-Federal Entity Contracts Under 
Federal Award are followed. The school food authority or child care 
institution may use its own procurement procedures which reflect 
applicable State or 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 and USDA implementing regulations 2 CFR part 400 and part 415 
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.
* * * * *


Sec.  215.16   [Amended]

0
12. In Sec.  215.16, remove the words ``, or the parallel provisions of 
7 CFR part 3019, as applicable,''.

[[Page 66491]]

PART 220--SCHOOL BREAKFAST PROGRAM

0
13. The authority citation for 7 CFR part 220 continues to read as 
follows:

    Authority: 42 U.S.C. 1773, 1779, unless otherwise noted.


Sec. Sec.  220.3, 220.13, 220.15, 220.18, 220.19   [Amended]

0
14. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
220.3.......................  7 CFR part 3015, 7    2 CFR part 200,
                               CFR part 3016 and 7   subpart D and USDA
                               CFR part 3019, and    implementing
                               with.                 regulations 2 CFR
                                                     part 400 subparts B
                                                     and D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415 and.
220.13......................  7 CFR Part 3015, and  2 CFR part 200,
                               7 CFR Part 3016 or    subpart D and E, as
                               7 CFR Part 3019.      applicable, and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
220.15......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart F and
                               A-133 and the         Appendix XI,
                               Department's          Compliance
                               implementing          Supplement, and
                               regulations at 7      USDA implementing
                               CFR part 3052. For    regulations 2 CFR
                               availability of the   part 400 and part
                               OMB Circular          415.
                               mentioned in this
                               paragraph, please
                               refer to 5 CFR
                               1310.3.
220.18......................  Departmental          2 CFR 200.338
                               regulations at Sec.   through 342.
                                Sec.   3016.43 and
                               3019.62 of this
                               title.
220.19......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 subparts B
                                                     and D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
15. In Sec.  220.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3018; 7 CFR part 3019, and 7 CFR part 3052.
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Revise the definition for Applicable credits.
0
d. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions and revision read as follows:


Sec.  220.2   Definitions.

* * * * *
    2 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).
* * * * *
    Applicable credits shall have the meaning established in 2 CFR part 
200 and USDA implementing regulations 2 CFR part 400 and part 415.
* * * * *
    USDA 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.
* * * * *

0
16. Revise Sec.  220.16 (a) and (b), and the introductory text of 
paragraph (c), to read as follows:


Sec.  220.16   Procurement standards.

    (a) General. State agencies and school food authorities shall 
comply with the requirements of this part 2 CFR part 200, subpart D and 
USDA implementing regulations 2 CFR part 400 and part 415, as 
applicable, which implement the applicable Office of Management and 
Budget Circulars, concerning the procurement of all goods and services 
with nonprofit school food service account funds.
    (b) Contractual responsibilities. The standards contained in 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 contract. 
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.
    (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 of 2 CFR 200.326 are 
followed. The 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 2 
CFR 200.326 and Appendix II, Contract Provisions for Non-Federal Entity 
Contracts Under Federal Award 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.
* * * * *


Sec.  220.19   [Amended]

0
17. In Sec.  220.19, remove the words ``, or the parallel provisions of 
7 CFR part 3019, as applicable,''.

[[Page 66492]]

PART 225--SUMMER FOOD SERVICE PROGRAM

0
18. The authority citation for 7 CFR part 225 continues to read as 
follows:

    Authority:  Secs. 9, 13 and 14, Richard B. Russell National 
School Lunch Act, as amended (42 U.S.C. 1758, 1761 and 1762a).


Sec. Sec.  225.7, 225.8, 225.10, 225.17, 225.18   [Amended]

0
19. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
225.7.......................  7 CFR part 3015, and  2 CFR part 200,
                               7 CFR part 3016 or    subpart D and E,
                               7 CFR part 3019.      and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
225.8.......................  SF-269..............  FNS-777.
225.10......................  the Department's      2 CFR part 200,
                               Uniform Federal       subpart F and USDA
                               Assistance            implementing
                               Regulations (7 CFR    regulations 2 CFR
                               part 3015).           part 400 and part
                                                     415.
225.10......................  7 CFR part 3015.....  2 CFR part 200,
                                                     subpart F and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
225.10......................  OMB Circular A-133    2 CFR part 200,
                               and the               subpart F and
                               Department's          Appendix XI,
                               implementing          Compliance
                               regulations at 7      Supplement and USDA
                               CFR part 3052. (To    implementing
                               obtain the OMB        regulations 2 CFR
                               circular referenced   part 400 and part
                               in this paragraph,    415.
                               see 5 CFR 1310.3.).
225.17......................  7 CFR part 3016 or 7  2 CFR part 200,
                               CFR part 3019.        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
225.17......................  set forth in 7 CFR    set forth in 2 CFR
                               part 3016.            part 200, subpart F
                                                     and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
225.17......................  set forth in 7 CFR    set forth in 2 CFR
                               part 3019.            part 200, subpart F
                                                     and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
225.18......................  7 CFR part 3016 or 7  2 CFR part 200,
                               CFR part 3019.        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
20. In Sec.  225.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3019, and 7 CFR part 3052.
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions read as follows:


Sec.  225.2  Definitions.

* * * * *
    2 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).
* * * * *
    USDA 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.
* * * * *

PART 226--CHILD AND ADULT CARE FOOD PROGRAM

0
21. The authority citation for 7 CFR part 226 continues to read as 
follows:

    Authority: Secs. 9, 11, 14, 16, and 17, Richard B. Russell 
National School Lunch Act, as amended (42 U.S.C. 1758, 1759a, 1762a, 
1765 and 1766).


Sec. Sec.  226.4, 226.7, 226.10, 226.22, 226.24, 226.25   [Amended]

0
22. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
226.4.......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415, as applicable.
226.6.......................  parts 3015, 3016,     2 CFR part 200,
                               and 3019 of this      subpart D and USDA
                               title.                implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.7.......................  7 CFR part 3015, 7    2 CFR part 200,
                               CFR part 3016 and 7   subpart D and USDA
                               CFR part 3019.        implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.7.......................  SF-269..............  FNS-777.
226.7.......................  parts 3015, 3016,     2 CFR part 200,
                               and 3019 of this      subpart D and USDA
                               title.                implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.10......................  7 CFR part 3016 or 7  2 CFR part 200,
                               CFR part 3019.        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.22......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.22......................  7 CFR part 3019.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.

[[Page 66493]]

 
226.22......................  Sec.   3015.175.....  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.
226.24......................  7 CFR part 3016 or 7  2 CFR part 200,
                               CFR part 3019.        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
226.25......................  7 CFR part 3016 or 7  2 CFR part 200,
                               CFR part 3019.        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
23. In Sec.  226.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3019, and 7 CFR part 3052; and
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions read as follows:


Sec.  226.2  Definitions.

* * * * *
    2 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).
* * * * *
    USDA 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.
* * * * *

0
24. Revise Sec.  226.8(a) and (b) to read as follows:


Sec.  226.8   Audits.

    (a) Unless otherwise exempt, audits at the State and institution 
levels must be conducted in accordance with 2 CFR part 200, subpart F, 
Appendices X and XI, Data Collection Form and Compliance Supplement, 
respectively and USDA implementing regulations 2 CFR parts 400, 415 and 
416. State agencies must establish audit policy for for-profit 
institutions. However, the audit policy established by the State agency 
must not conflict with the authority of the State agency or the 
Department to perform, or cause to be performed, audits, reviews, 
agreed-upon procedures engagements, or other monitoring activities.
    (b) The funds provided to the State agency under Sec.  226.4(j) may 
be made available to institutions to fund a portion of organization-
wide audits made in accordance with 2 CFR part 200, subpart F and USDA 
implementing regulations 2 CFR part 400 and part 415. The funds 
provided to an institution for an organization-wide audit must be 
determined in accordance with 2 CFR part 200, subpart F and USDA 
implementing regulations 2 CFR part 400 and part 415.
* * * * *

PART 227--NUTRITION EDUCATION AND TRAINING PROGRAM


Sec. Sec.  227.30, 227.31, 227.35, 227.42  [Amended]

0
25. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
227.30......................  7 CFR part 3015.....  2 CFR part 200,
                                                     subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415, as applicable.
227.30......................  OMB Circular A-102    2 CFR part 200,
                               Attachment C.         subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
227.30......................  SF-269..............  FNS-777.
227.30......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment H.         subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
227.30......................  Federal Management    2 CFR part 200,
                               Circular 74-4 and     subpart D and USDA
                               OMB Circular A-102,   implementing
                               Attachment G.         regulations 2 CFR
                                                     part 400 and part
                                                     415.
227.30......................  OMB Circular A-102,   2 CFR part 200,
                               Attachments N and     subpart D and USDA
                               O, and Federal        implementing
                               Management Circular   regulations 2 CFR
                               74-4.                 part 400 and part
                                                     415.
227.30......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment E.         subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
227.31......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment G.         subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement.
227.35......................  SF-269..............  FNS-777.
227.42......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment L.         subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------

PART 235--STATE ADMINISTRATIVE EXPENSE FUNDS

0
26. The authority citation for 7 CFR part 235 continues to read as 
follows:

    Authority: Secs. 7 and 10 of the Child Nutrition Act of 1966, 80 
Stat. 888, 889, as amended (42 U.S.C. 1776, 1779).


Sec. Sec.  235.3, 235.5, 235.6, 235.7, 235.8, 235.9, 235.11  [Amended]

0
27. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column

[[Page 66494]]

from wherever they appear in the section, and add the words indicated 
in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
235.3.......................  3015, and 3016......  and 2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
235.5.......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart E and USDA
                               A-87, Attachment B,   implementing
                               to establish cost     regulations 2 CFR
                               categories.           part 400 and part
                                                     415.
235.5.......................  (SF) 269............  FNS 777.
235.6.......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart E and USDA
                               A-87.                 implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
235.7.......................  SF-269..............  FNS-777.
235.8.......................  Office of Management  2 CFR part 200,
                               and Budget Circular   subpart F and
                               A-133, and the        Appendix XI,
                               Department's          Compliance
                               implementing          Supplement and USDA
                               regulations at 7      implementing
                               CFR part 3052. (To    regulations 2 CFR
                               obtain the OMB        part 400 and part
                               circular referenced   415.
                               in this definition,
                               see 5 CFR 1310.3.).
235.9.......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
235.11......................  SF-269..............  FNS-777.
235.11(a)...................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
235.11(b)(5)(v).............  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
235.11(d)...................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
28. In Sec.  235.2:
0
a. Remove the definitions for 7 CFR part 3015, 7 CFR part 3016, 7 CFR 
part 3018, 7 CFR part 3019, and 7 CFR part 3052; and
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions read as follows:


Sec.  235.2   Definitions.

* * * * *
    2 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).
* * * * *
    USDA 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.

PART 240--CASH IN LIEU OF DONATED FOODS


Sec.  240.9   [Amended]

0
29. In Sec.  240.9(c), remove the words ``the Department's Uniform 
Federal Assistance Regulations (7 CFR part 3015)'' and add, in their 
place, the words ``2 CFR part 200, subpart D and USDA implementing 
regulations 2 CFR part 400 and part 415''.

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

0
30. The authority citation for 7 CFR part 246 continues to read as 
follows:

    Authority:  42 U.S.C. 1786.


Sec. Sec.  246.3, 246.4, 246.12, 246.13, 246.14, 246.15, 246.17, 
246.20, 246.24, 246.25   [Amended]

0
31. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
246.3.......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart A-F and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.3.......................  7 CFR part 3018.....  2 CFR part 200,
                                                     subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400, part 415,
                                                     and part 418.
246.4.......................  7 CFR part 3017.....  2 CFR part 180, OMB
                                                     Guidelines to
                                                     Agencies on
                                                     Government-wide
                                                     Debarment and
                                                     Suspension and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 417.
246.4.......................  7 CFR part 3021.....  2 CFR part 180,
                                                     Government-wide
                                                     Requirements for
                                                     Drug-Free Workplace
                                                     (Financial
                                                     Assistance) and
                                                     USDA implementing
                                                     regulation 2 CFR
                                                     part 421.
246.12......................  Part 3016...........  2 CFR part 200,
                                                     subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.12......................  part 3016 of this     2 CFR part 200,
                               title.                subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.13......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D, USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.

[[Page 66495]]

 
246.14......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.15......................  Sec.   3016.25(g) of  2 CFR part 200,
                               this title.           subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.17......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.20......................  part 3052 of this     2 CFR part 200,
                               title.                subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.24(b)...................  7 CFR part 3016.....  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.
246.24(c)...................  7 CFR part 3016.....  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.
246.24(d)...................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
246.25......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
32. In Sec.  246.2:
0
a. Remove the definitions for 7 CFR part 3016, 7 CFR part 3017, 7 CFR 
part 3018, and 7 CFR part 3021; and
0
b. Add a definition, in alphabetical order, for 2 CFR part 200.
0
c. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The addition and revisions read as follows:


Sec.  246.2  Definitions.

* * * * *
    2 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).
* * * * *
    USDA 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.
* * * * *

0
33. Revise Sec.  246.3(f) to read as follows:


Sec.  246.3   Administration.

* * * * *
    (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.

0
34. Revise Sec.  246.6(b)(1) to read as follows:


Sec.  246.6  Agreements with local agencies.

* * * * *
    (b) * * *
    (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;
* * * * *

0
35. Revise Sec.  246.24(a) to read as follows:


Sec.  246.24   Procurement and property management.

    (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.
* * * * *

PART 247--COMMODITY SUPPLEMENTAL FOOD PROGRAM

0
36. The authority citation for 7 CFR part 247 continues to read as 
follows:

    Authority: Sec. 5, Pub. L. 93-86, 87 Stat. 249, as added by Sec. 
1304(b)(2), Pub. L. 95-113, 91 Stat. 980 (7 U.S.C. 612c note); sec. 
1335, Pub. L. 97-98, 95 Stat. 1293 (7 U.S.C. 612c note); sec. 209, 
Pub. L. 98-8, 97 Stat. 35 (7 U.S.C. 612c note); sec. 2(8), Pub. L. 
98-92, 97 Stat. 611 (7 U.S.C. 612c note); sec. 1562, Pub. L. 99-198, 
99 Stat. 1590 (7 U.S.C. 612c note); sec. 101(k), Pub. L. 100-202; 
sec. 1771(a), Pub. L. 101-624, 101 Stat. 3806 (7 U.S.C. 612c note); 
sec 402(a), Pub. L. 104-127, 110 Stat. 1028 (7 U.S.C. 612c note); 
sec. 4201, Pub. L. 107-171, 116 Stat. 134 (7 U.S.C. 7901 note); sec. 
4221, Pub. L. 110-246, 122 Stat. 1886 (7 U.S.C. 612c note); sec. 
4221, Pub. L. 113-79, 7 U.S.C. 612c note).


0
37. In Sec.  247.1:
0
a. Remove the definitions for 7 CFR part 3016, 7 CFR part 3019, and 7 
CFR part 3052;
0
b. Add a definition, in alphabetical order, for 2 CFR part 200; and

[[Page 66496]]

0
c. Add a definition, in alphabetical order, for USDA implementing 
regulations.
    The additions read as follows:


Sec.  247.1   Definitions.

* * * * *
    2 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).
* * * * *
    USDA 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.
* * * * *

0
38. Revise Sec.  247.25(a) introductory text to read as follows:


Sec.  247.25  Allowable uses of administrative funds and other funds.

    (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:
* * * * *

PART 248--WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)

0
39. The authority citation for 7 CFR part 248 continues to read as 
follows:

    Authority: 42 U.S.C. 1786.


Sec. Sec.  248.10, 248.11, 248.12, 248.13, 248.14, 248.15, 248.18, 
248.21, 248.23   [Amended]

0
40. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
248.10......................  7 CFR part 3016,      2 CFR part 200,
                               Uniform               subpart D and
                               Administrative        Appendix II,
                               Requirements for      Contract Provisions
                               Grants and            for Non-Federal
                               Cooperative           Entity Contracts
                               Agreements to State   Under Federal
                               and Local             Awards and USDA
                               Governments.          implementing
                                                     regulations 2 CFR
                                                     part 400 and 415.
248.11......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subparts D and E
                                                     and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.12......................  7 CFR 3016.22.......  2 CFR part 200,
                                                     subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.12......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.13......................  7 CFR 3016.25(g)(2).  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.14......................  7 CFR 3016.24.......  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.15......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.18......................  7 CFR part 3015,      2 CFR part 200,
                               Sec.   3016.26 or     subpart F and
                               part 3051.            Appendix XI
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.21(a)...................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.21(b)...................  7 CFR part 3016.....  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.
248.21(c)...................  7 CFR part 3016.....  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.
248.21(d)...................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
248.23......................  7 CFR part 3016.....  2 CFR part 200,
                                                     subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


0
41. Revise Sec.  248.3(b) to read as follows:


Sec.  248.3  Administration.

* * * * *
    (b) Delegation to State agency. The State agency is responsible for 
the effective and efficient administration of the FMNP in accordance 
with the requirements of this part; the requirements of the 
Department's regulations governing nondiscrimination (7 CFR parts 15, 
15a and 15b), administration of grants (2 CFR part 200, subparts A, B, 
D, E and F and USDA implementing regulations 2 CFR part 400 and part 
415), nonprocurement debarment/suspension (2 CFR part 180, OMB 
Guidelines to Agencies on Government-wide Debarment and Suspension and 
USDA implementing regulations 2 CFR part 417), drug-free workplace (2 
CFR part 182, Government-wide Requirements for Drug-Free Workplace), 
and lobbying (2 CFR part 200, subpart E and USDA implementing 
regulations 2 CFR part 400, part 415 and part 418); and, Office

[[Page 66497]]

of Management and Budget Circular A-130, FNS guidelines, and 
Instructions issued under the FNS Directives Management System. The 
State agency shall provide guidance to cooperating WIC State and local 
agencies on all aspects of FMNP operations. Pursuant to section 
17(m)(2) of the CNA, State agencies may operate the FMNP locally 
through nonprofit organizations or local government entities and must 
ensure coordination among the appropriate agencies and organizations.
* * * * *

0
42. Revise Sec.  248.22 to read as follows:


Sec.  248.22   Nonprocurement debarment/suspension, drug-free 
workplace, and lobbying restrictions.

    The State agency shall ensure compliance with the requirements of 
the Department's regulations governing nonprocurement debarment/
suspension (2 CFR part 180, OMB Guidelines to Agencies on Government-
wide Debarment and Suspension and USDA implementing regulations 2 CFR 
part 417), drug-free workplace (2 CFR part 182, Government-wide 
Requirements for Drug-Free Workplace), and the Department's regulations 
governing restrictions on lobbying (2 CFR part 200, subpart E and USDA 
implementing regulations 2 CFR part 400, part 415 and part 418), where 
applicable.

PART 249--SENIOR FARMERS' MARKET NUTRITION PROGRAM (SFMNP)

0
43. The authority citation for 7 CFR part 249 continues to read as 
follows:

    Authority: 7 U.S.C. 3007.


Sec. Sec.  249.2, 249.3, 249.10, 249.11, 249.12, 249.13, 249.15, 
249.18, 249.21, 249.23   [Amended]

0
44. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
249.2.......................  Sec.   3016.3 of      2 CFR part 200,
                               this chapter.         Uniform
                                                     Administrative
                                                     Requirements, Cost
                                                     Principles, and
                                                     Audit Requirements
                                                     for Federal Awards,
                                                     subpart A, Acronyms
                                                     and Definitions and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249. 3......................  part 3016 of this     2 CFR part 200,
                               title.                Uniform
                                                     Administrative
                                                     Requirements, Cost
                                                     Principles, and
                                                     Audit Requirements
                                                     for Federal Awards
                                                     and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.3.......................  part 3017 of this     2 CFR part 180, OMB
                               title.                Guidelines to
                                                     Agencies on
                                                     Government-wide
                                                     Debarment and
                                                     Suspension and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 417.
249.3.......................  part 3021 of this     2 CFR part 182,
                               title.                Government-wide
                                                     Requirements for
                                                     Drug-Free
                                                     Workplace.
249.3.......................  part 3018 of this     2 CFR part 200,
                               title.                subpart E, Cost
                                                     Principles; and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400, part 415,
                                                     and part 418.
249.10......................  part 3016 of this     2 CFR part 200 and
                               title.                USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.11......................  part 3016 of this     2 CFR part 200,
                               title, a claim.       subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415, a claim.
249.12......................  part 3016.22 of this  2 CFR part 200,
                               title.                subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.12......................  part 3016 of this     2 CFR part 200,
                               title.                subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.12......................  part 3016 of this     2 CFR part 200,
                               title or this Part.   subpart E and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.13......................  part 3016.25(g)(2)    2 CFR part 200,
                               of this title.        subpart D, Post
                                                     Federal Award
                                                     Requirements and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.15......................  part 3016 of this     2 CFR part 200,
                               title.                subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.18......................  parts 3015, 3016      2 CFR part 200,
                               (Sec.   3016.26 of    subpart F, Audit
                               this title), or       Requirements and
                               3051 of this title.   USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.21(a)...................  part 3016 of this     2 CFR part 200,
                               title.                subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.21(b)...................  part 3016 of this     2 CFR part 200,
                               title.                subpart D; Appendix
                                                     II Contract
                                                     Provisions for Non-
                                                     Federal Entity
                                                     Contracts Under
                                                     Federal Awards; and
                                                     USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.21(d)...................  part 3016 of this     2 CFR part 200,
                               title.                subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
249.23......................  part 3016 of this     2 CFR part 200,
                               title.                subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
------------------------------------------------------------------------


[[Page 66498]]


0
45. Revise Sec.  249.22 to read as follows:


Sec.  249.22   Nonprocurement debarment/suspension, drug-free 
workplace, and lobbying restrictions.

    The State agency must ensure compliance with the requirements of 
FNS' regulations governing nonprocurement debarment/suspension (2 CFR 
part 180, OMB Guidelines to Agencies on Government-wide Debarment and 
Suspension and USDA implementing regulations 2 CFR part 417) and drug-
free workplace (2 CFR part 182, Government-wide Requirements for Drug-
Free Workplace), as well as FNS' regulations governing restrictions on 
lobbying (2 CFR part 200, subpart E and USDA implementing regulations 2 
CFR part 400, part 415, and part 418), where applicable.

PART 253--ADMINISTRATION OF THE FOOD DISTRIBUTION PROGRAM FOR 
HOUSEHOLDS ON INDIAN RESERVATIONS


Sec. Sec.  253.5 and 253.11  [Amended]

0
46. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
253.5.......................  SF-269..............  SF-425.
253.11......................  7 CFR part 3015,      2 CFR part 200,
                               Subpart V.            subpart D, and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
253.11......................  OMB Circular No. A-   2 CFR part 200,
                               102, Attachment K.    subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
253.11......................  SF-269..............  SF-425.
------------------------------------------------------------------------

PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES


Sec. Sec.  272.1 and 272.2   [Amended]

0
47. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
272.1.......................  OMB Circular A-87 (2  2 CFR part 200,
                               CFR Part 225).        subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
272.2.......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart E and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
------------------------------------------------------------------------

PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS

0
48. The authority citation for 7 CFR part 273 continues to read as 
follows:

    Authority: 7 U.S.C. 2011-2036.


Sec.  273.7  [Amended]

0
49. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
273.7(d)(7).................  SF-269..............  SF-425 using FNS-778/
                                                     FNS-778A worksheet.
------------------------------------------------------------------------


0
50. Revise Sec.  273.7(l)(4) to read as follows:


Sec.  273.7  Work provisions.

* * * * *
    (l) * * *
    (4) Reporting. State agencies operating work supplementation and 
support programs are required to comply with all FNS reporting 
requirements, including reporting the amount of benefits contributed to 
employers as a wage subsidy on the FNS-388, State Issuance and 
Participation Estimates; FNS-388A, Participation and Issuance by 
Project Area; FNS-46, Issuance Reconciliation Report; and SF-425, using 
FNS-778 worksheet, Addendum Financial Status Report. State agencies are 
also required to report administrative costs associated with work 
supplementation programs on the FNS-366A, Budget Projection and SF-425 
using FNS-778/FNS-778A worksheet, Financial Status Report. Special 
codes for work supplementation programs will be assigned for reporting 
purposes.
* * * * *

PART 274--ISSUANCE AND USE OF PROGRAM BENEFITS

0
51. The authority citation for 7 CFR part 274 continues to read as 
follows:

    Authority: 7 U.S.C. 2011-2036.


Sec.  274.1   [Amended]

0
52. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

[[Page 66499]]



------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
274.1.......................  the Office of         2 CFR part 200,
                               Management and        subpart F and
                               Budget (OMB)          Appendix XI,
                               Circular A-133        Compliance
                               Compliance            Supplement, and
                               Supplement.           USDA implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
274.1.......................  General               Government
                               Accountability        Accountability
                               Office.               Office.
274.1.......................  OMB Circular A-133..  2 CFR part 200,
                                                     subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
274.1.......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subparts D and E
                               Web site at http://   and USDA
                               www.whitehouse.gov/   implementing
                               omb/                  regulations 2 CFR
                               circulars_default/)   part 400 and part
                               in determining and    415, as applicable.
                               claiming allowable
                               costs for the EBT
                               system.
------------------------------------------------------------------------

Sec.  274.1   [Amended]

0
53. Amend Sec.  274.1(i)(2)(i), by removing the last sentence.

PART 276--STATE AGENCY LIABILITIES AND FEDERAL SANCTIONS

0
54. The authority citation for 7 CFR part 276 continues to read as 
follows:

     Authority: 7 U.S.C. 2011-2036.


Sec.  276.4   [Amended]

0
55. In Sec.  276.4(d), remove the words ``OMB Circular A-87 (available 
on OMB's Web site at http://www.whitehouse.gov/omb/circulars_default/
)'' and add, in their place, the words ``2 CFR part 200, subparts D and 
E and USDA implementing regulations 2 CFR part 400 and part 415''.

PART 277--PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE 
AGENCIES


Sec. Sec.  277.5, 277.6, 277.9, 277.11, 277.13, 277.16, 277.17, 
277.18  [Amended]

0
56. In the table below, for each section indicated in the left column, 
remove the words indicated in the middle column from wherever they 
appear in the section, and add the words indicated in the right column:

------------------------------------------------------------------------
           Section                   Remove                  Add
------------------------------------------------------------------------
277.5.......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment J.         subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
277.6.......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart D and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
277.9.......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart E and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
277.11......................  7 CFR part 3015.....  2 CFR part 200,
                                                     subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
277.11......................  Form SF-269.........  SF-425, using FNS-
                                                     778/FNS-778A
                                                     worksheet.
277.11(d)(1)................  SF-269 report,......  SF-425 report, using
                                                     FNS-778/FNS-778A
                                                     worksheet.
277.11(d)(5)................  SF-269..............  SF-425, using FNS-
                                                     778/FNS-778A
                                                     worksheet.
277.13......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart D and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
277.16......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart D and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
277.17......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment P.         subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
277.17......................  Attachment H of OMB   2 CFR part 200,
                               Circular A-102.       subpart F and
                                                     Appendix XI,
                                                     Compliance
                                                     Supplement and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
277.17......................  OMB Circular A-102,   2 CFR part 200,
                               Attachment O.         subpart D and USDA
                                                     implementing
                                                     regulations 2 CFR
                                                     part 400 and part
                                                     415.
277.18......................  OMB Circular A-87     2 CFR part 200,
                               (available on OMB's   subpart E and USDA
                               Web site at http://   implementing
                               www.whitehouse.gov/   regulations 2 CFR
                               omb/                  part 400 and part
                               circulars_default/).  415.
------------------------------------------------------------------------


    Dated: August 17, 2016.
Audrey Rowe,
Administrator, Food and Nutrition Service.
[FR Doc. 2016-21760 Filed 9-27-16; 8:45 am]
 BILLING CODE 3410-30-P



                                                                                                                                                                                              66487

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 81, No. 188

                                                                                                                                                            Wednesday, September 28, 2016



                                              This section of the FEDERAL REGISTER                    incorporated feedback received from the               necessary, to select regulatory
                                              contains regulatory documents having general            public in response to those earlier                   approaches that maximize net benefits
                                              applicability and legal effect, most of which           issuances. Additional supporting                      (including potential economic,
                                              are keyed to and codified in the Code of                resources are available from the Council              environmental, public health and safety
                                              Federal Regulations, which is published under           on Financial Assistance Reform at                     effects, distributive impacts, and
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                      www.cfo.gov/COFAR. In accordance                      equity). Executive Order 13563
                                              The Code of Federal Regulations is sold by              with the good cause exception under the               emphasizes the importance of
                                              the Superintendent of Documents. Prices of              APA, it is unnecessary to engage in the               quantifying both costs and benefits, of
                                              new books are listed in the first FEDERAL               Notice and Comment provisions of 5                    reducing costs, of harmonizing rules,
                                              REGISTER issue of each week.                            U.S.C. 553 because the provisions set                 and of promoting flexibility. This final
                                                                                                      forth in this rulemaking are a non-                   rule has been determined to be not
                                                                                                      discretionary implementation of USDA                  significant and, therefore, was not
                                              DEPARTMENT OF AGRICULTURE                               requirements codified at 2 CFR part 400.              reviewed by the Office of Management
                                                                                                      The APA exempts from the prior notice                 and Budget (OMB) in conformance with
                                              Food and Nutrition Service                              and opportunity for comment                           Executive Order 12866.
                                                                                                      requirements rules ‘‘relating to Agency               Regulatory Impact Analysis
                                              7 CFR Parts 210, 215, 220, 225, 226,                    management or personnel or to public
                                              227, 235, 240, 246, 247, 248, 249, 253,                 property, loans, grants, benefits, or                   This rule has been designated as not
                                              272, 273, 274, 276, and 277                             contracts’’ (5 U.S.C. 553 (a)(2)).                    significant by the Office of Management
                                              RIN 0584–AE42                                              Currently, references appear                       and Budget, therefore, no Regulatory
                                                                                                      throughout the FNS regulations to the                 Impact Analysis is required.
                                              Regulatory Implementation of Office of                  OMB guidance consolidated under the                   Regulatory Flexibility Act
                                              Management and Budget’s Uniform                         ‘‘Uniform Administrative Requirements,
                                              Administrative Requirements, Cost                                                                                The Regulatory Flexibility Act (5
                                                                                                      Cost Principles, and Audit
                                              Principles, and Audit Requirements for                                                                        U.S.C. 601–612) requires Agencies to
                                                                                                      Requirements for Federal Awards’’ and
                                              Federal Awards                                                                                                analyze the impact of rulemaking on
                                                                                                      the USDA implementing regulations in
                                                                                                                                                            small entities and consider alternatives
                                                                                                      Title 2, of the CFR. There are over 100
                                              AGENCY:  Food and Nutrition Service                                                                           that would minimize any significant
                                                                                                      references throughout 19 Parts of the                 impacts on a substantial number of
                                              (FNS), USDA.
                                                                                                      FNS regulations that must be revised to               small entities. Pursuant to that review,
                                              ACTION: Final rule.                                     accurately reference the revised OMB                  it has been certified that this rule would
                                              SUMMARY:  This rule amends FNS                          and USDA regulations. FNS is therefore                not have a significant impact on a
                                              regulations to implement the                            proposing nomenclature revisions to the               substantial number of small entities.
                                              Department of Agriculture final                         following Parts of Title 7: 210, 215, 220,
                                                                                                      225, 226, 227, 235, 240, 246, 247, 248,               Unfunded Mandates Reform Act
                                              guidance of USDA-specific
                                              requirements in the Federal Agency                      249, 253, 272, 273, 274, 276, and 277.                   Title II of the Unfunded Mandates
                                              Regulations for Grants and Agreements.                  The revisions will remove the following               Reform Act of 1995 (UMRA), Public
                                                                                                      references, and other associated                      Law 104–4, establishes requirements for
                                              DATES: Effective September 28, 2016.
                                                                                                      outdated references, and replace them                 Federal agencies to assess the effects of
                                              FOR FURTHER INFORMATION CONTACT: Lael                   as appropriate:                                       their regulatory actions on State, local
                                              Lubing, Food and Nutrition Service,
                                                                                                                                                            and tribal governments and the private
                                              Financial Management, Grants Division,                  References:                                           sector. Under section 202 of the UMRA,
                                              3101 Park Center Drive, Room 732,                         7 CFR Part 3015                                     the Department generally must prepare
                                              Alexandria, VA or lael.lubing@                            7 CFR Part 3016                                     a written statement, including a cost
                                              fns.usda.gov.                                             7 CFR Part 3017
                                                                                                        7 CFR Part 3018
                                                                                                                                                            benefit analysis, for proposed and final
                                              SUPPLEMENTARY INFORMATION:   This rule                    7 CFR Part 3019                                     rules with ‘‘Federal mandates’’ that may
                                              amends FNS regulations to implement                       7 CFR Part 3021                                     result in expenditures by State, local or
                                              the Department of Agriculture final                       7 CFR Part 3052                                     tribal governments, in the aggregate, or
                                              guidance of USDA-specific                                 OMB Circular A–133                                  the private sector, of $100 million or
                                              requirements at 2 CFR part 400 on                         OMB Circular A–102                                  more in any one year. When such a
                                              December 19, 2014 (79 FR 75871). Prior                    OMB Circular A–87                                   statement is needed for a rule, Section
                                              to that, on December 26, 2013, the                        SF–269                                              205 of the UMRA generally requires the
                                              Office of Management and Budget                                                                               Department to identify and consider a
                                              (OMB) published ‘‘Uniform                                 As noted above, the final OMB                       reasonable number of regulatory
                                              Administrative Requirements, Cost                       guidance incorporated feedback                        alternatives and adopt the most cost
                                              Principles, and Audit Requirements for                  received from the public.                             effective or least burdensome alternative
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                                              Federal Awards’’ in 2 CFR part 200 (78                  Procedural Matters                                    that achieves the objectives of the rule.
                                              FR 78589). OMB’s final guidance at 2                                                                             This rule does not contain Federal
                                              CFR part 200 followed a Notice of                       Executive Order 12866 and 13563                       mandates (under the regulatory
                                              Proposed Guidance issued February 1,                       Executive Orders 12866 and 13563                   provisions of Title II of the UMRA) for
                                              2013, and an Advanced Notice of                         direct agencies to assess all costs and               State, local and tribal governments or
                                              Proposed Guidance issued February 28,                   benefits of available regulatory                      the private sector of $100 million or
                                              2012. The OMB final guidance                            alternatives and, if regulation is                    more in any one year. Thus, the rule is


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                                              66488            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              not subject to the requirements of                                   other policy statements or actions that                        7 CFR Part 227
                                              sections 202 and 205 of the UMRA.                                    have substantial direct effects on one or
                                                                                                                                                                                    Grant programs—education, Grant
                                                                                                                   more Indian Tribes, on the relationship
                                              Federalism Summary Impact Statement                                                                                                 programs—health.
                                                                                                                   between the Federal Government and
                                                Executive Order 13132 requires                                     Indian Tribes, or on the distribution of                       7 CFR Part 235
                                              Federal agencies to consider the impact                              power and responsibilities between the
                                              of their regulatory actions on State and                                                                                              Grant programs—education, Grant
                                                                                                                   Federal Government and Indian Tribes.                          programs—health.
                                              local governments. Where such actions                                FNS has assessed the impact of this rule
                                              have federalism implications, agencies                               on Indian tribes and determined that                           7 CFR Part 240
                                              are directed to provide a statement for                              this rule does not, to our knowledge,
                                              inclusion in the preamble to the                                                                                                      Grant programs—education, Grant
                                                                                                                   have tribal implications that require                          programs—health.
                                              regulations describing the agency’s                                  tribal consultation under E.O. 13175. If
                                              considerations in terms of the three                                 a Tribe requests consultation, FNS will                        7 CFR Part 246
                                              categories called for under Section                                  work with the Office of Tribal Relations
                                              (6)(b)(2)(B) of Executive Order 13121.                                                                                                Grant programs—health, Grant
                                                                                                                   to ensure meaningful consultation is                           programs—social programs.
                                              The Department has considered the                                    provided where changes, additions and
                                              impact of this rule on State and local                               modifications identified herein are not                        7 CFR Part 247
                                              governments and has determined that                                  expressly mandated by Congress.                                  Grant programs—health, Grant
                                              this rule does not have federalism
                                                                                                                   Paperwork Reduction Act                                        programs—social programs.
                                              implications. Therefore, under section
                                              6(b) of the Executive Order, a federalism                              The Paperwork Reduction Act of 1995                          7 CFR Part 248
                                              summary is not required.                                             (44 U.S.C. Chap. 35; 5 CFR 1320)
                                                                                                                                                                                      Grant programs—social programs.
                                                                                                                   requires the Office of Management and
                                              Executive Order 12988, Civil Justice
                                                                                                                   Budget (OMB) approve all collections of                        7 CFR Part 249
                                              Reform
                                                                                                                   information by a Federal agency before
                                                This rule has been reviewed under                                                                                                     Grant programs—social programs.
                                                                                                                   they can be implemented. Respondents
                                              Executive Order 12988, Civil Justice                                 are not required to respond to any                             7 CFR Part 253
                                              Reform. This rule is intended to have                                collection of information unless it
                                              preemptive effect with respect to any                                                                                                   Grant programs—social programs.
                                                                                                                   displays a current valid OMB control
                                              State or local laws, regulations or                                  number. This rule does not contain                             7 CFR Part 272
                                              policies which conflict with its                                     information collection requirements
                                              provisions or which would otherwise                                                                                                     Grant programs—social programs.
                                                                                                                   subject to approval by the Office of
                                              impede its full and timely                                           Management and Budget under the                                7 CFR Part 273
                                              implementation. This rule is not                                     Paperwork Reduction Act of 1994.                                   Grant programs—social programs.
                                              intended to have retroactive effect
                                              unless so specified in the Effective Dates                           E-Government Act Compliance                                    7 CFR Part 274
                                              section of the final rule. Prior to any                                 The Department is committed to
                                                                                                                                                                                      Grant programs—social programs.
                                              judicial challenge to the provisions of                              complying with the E-Government Act,
                                              the final rule, all applicable                                       to promote the use of the Internet and                         7 CFR Part 276
                                              administrative procedures must be                                    other information technologies to                                  Grant programs—social programs.
                                              exhausted.                                                           provide increased opportunities for
                                                                                                                   citizen access to Government                                   7 CFR Part 277
                                              Civil Rights Impact Analysis
                                                                                                                   information and services, and for other                          Grant programs—social programs.
                                                FNS has reviewed this rule in                                      purposes.
                                              accordance with USDA Regulation                                                                                                       Accordingly, 7 CFR parts 210, 215,
                                              4300–4, ‘‘Civil Rights Impact Analysis,’’                            List of Subjects                                               220, 225, 226, 227, 235, 240, 246, 247,
                                              to identify any major civil rights                                   7 CFR Part 210                                                 248, 249, 253, 272, 273, 274, 276, and
                                              impacts the rule might have on program                                                                                              277 are amended as follows:
                                                                                                                     Grant programs—education, Grant
                                              participants on the basis of age, race,
                                                                                                                   programs—health.                                               PART 210—NATIONAL SCHOOL
                                              color, national origin, sex or disability.
                                              After a review of the rule’s intent and                              7 CFR Part 215                                                 LUNCH PROGRAM
                                              provisions, FNS has determined that                                    Grant programs—education, Grant                              ■ 1. The authority citation for 7 CFR
                                              this rule is not expected to affect the                              programs—health.                                               part 210 continues to read as follows:
                                              participation of protected individuals in
                                              FNS program(s).                                                      7 CFR Part 220                                                     Authority: 42 U.S.C. 1751–1760, 1779.

                                              Executive Order 13175                                                  Grant programs—education, Grant                              §§ 210.5, 210.9, 210.19, 210.20, 210.22,
                                                                                                                   programs—health.                                               210.24, 210.25 [Amended]
                                                Executive Order 13175 requires
                                              Federal agencies to consult and                                      7 CFR Part 225                                                 ■ 2. In the table below, for each section
                                              coordinate with Tribes on a                                            Grant programs—health.                                       indicated in the left column, remove the
                                              government-to-government basis on                                                                                                   words indicated in the middle column
                                              policies that have Tribal implications,                              7 CFR Part 226                                                 from wherever they appear in the
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                                              including regulations, legislative                                     Grant programs, Grant programs—                              section, and add the words indicated in
                                              comments or proposed legislation, and                                health.                                                        the right column:

                                                             Section                                                       Remove                                                                  Add

                                              210.5 ....................................   7 CFR part 3016 .............................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.



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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                            66489

                                                             Section                                                       Remove                                                                  Add

                                              210.9 ....................................   7 CFR part 3015 and 7 CFR part 3016, or 7 CFR part                              2 CFR part 200, subpart D and USDA implementing
                                                                                             3019, as applicable.                                                            regulations 2 CFR part 400 and part 415.
                                              210.19 ..................................    7 CFR part 3015 and 7 CFR part 3016, or 7 CFR part                              2 CFR part 200, subpart D and USDA implementing
                                                                                             3019.                                                                           regulations 2 CFR part 400 and part 415.
                                              210.22 ..................................    Office of Management and Budget Circular A–133 and                              2 CFR part 200, subpart F and Appendix XI (Compli-
                                                                                             the Department’s implementing regulations at 7 CFR                              ance Supplement) and USDA implementing regula-
                                                                                             part 3052. For availability of the OMB Circular men-                            tions 2 CFR part 400 and part 415.
                                                                                             tioned in this paragraph, please refer to 5 CFR
                                                                                             1310.3.
                                              210.22 ..................................    7 CFR part 3015 .............................................................   2 CFR part 200, subpart F and Appendix XI, and USDA
                                                                                                                                                                             implementing regulations 2 CFR part 400 and part
                                                                                                                                                                             415.
                                              210.24 ..................................    §§ 3016.43 and 3019.62 of this title ................................           2 CFR 200.338 through 200.342.
                                              210.25 ..................................    7 CFR part 3016 .............................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.



                                              ■ 3. In § 210.2:                                                     ■ 4. In § 210.3:                                                relieve the State agency or school food
                                              ■ a. Remove the definitions for 7 CFR                                ■ a. Revise the last sentence of                                authority of any contractual
                                              part 3015, 7 CFR part 3016, 7 CFR part                               paragraph (b).                                                  responsibilities under its contracts. The
                                              3018; 7 CFR part 3019, and 7 CFR part                                ■ b. Revise the last sentence of                                State agency or school food authority is
                                              3052;                                                                paragraph (d).                                                  the responsible authority, without
                                              ■ b. Add a definition, in alphabetical                                 The revisions read as follows:                                recourse to FNS, regarding the
                                              order, for 2 CFR part 200.                                           § 210.3      Administration.                                    settlement and satisfaction of all
                                              ■ c. Revise the definition for Applicable                                                                                            contractual and administrative issues
                                              credits.                                                             *     *     *     *      *
                                                                                                                     (b) * * * Each State agency desiring                          arising out of procurements entered into
                                              ■ d. Add a definition, in alphabetical
                                                                                                                   to administer the Program shall enter                           in connection with the Program. This
                                              order, for USDA implementing                                                                                                         includes, but is not limited to source
                                                                                                                   into a written agreement with the
                                              regulations.
                                                                                                                   Department for the administration of the                        evaluation, protests, disputes, claims, or
                                                The additions and revision read as
                                                                                                                   Program in accordance with the                                  other matters of a contractual nature.
                                              follows:
                                                                                                                   applicable requirements of this part;                           Matters concerning violation of law are
                                              § 210.2      Definitions.                                            parts 235 and 245 of this chapter; parts                        to be referred to the local, State, or
                                              *     *     *    *     *                                             15, 15a, and 15b of this title, and 2 CFR                       Federal authority that has proper
                                                2 CFR part 200, means the Uniform                                  part 200; USDA implementing                                     jurisdiction.
                                              Administrative Requirements, Cost                                    regulations 2 CFR part 400 and part 415;
                                                                                                                                                                                     (c) Procedures. The State agency may
                                              Principles, and Audit Requirements for                               and FNS instructions.
                                                                                                                                                                                   elect to follow either the State laws,
                                              Federal Awards published by OMB. The                                 *     *     *     *      *                                      policies and procedures as authorized
                                              part reference covers applicable:                                      (d) * * * State agencies shall ensure
                                                                                                                                                                                   by 2 CFR 200.317, or the procurement
                                              Acronyms and Definitions (subpart A),                                that school food authorities administer
                                                                                                                                                                                   standards for other governmental
                                              General Provisions (subpart B), Post                                 the Program in accordance with the
                                                                                                                   applicable requirements of this part;                           grantees and all governmental
                                              Federal Award Requirements (subpart                                                                                                  subgrantees in accordance with 2 CFR
                                              D), Cost Principles (subpart E), and                                 part 245 of this chapter; parts 15, 15a,
                                                                                                                   and 15b, and 3016 or 3019, as                                   200.318 through 2 CFR 200.326.
                                              Audit Requirements (subpart F). (NOTE:
                                                                                                                   applicable, of this title and 2 CFR part                        Regardless of the option selected, States
                                              Pre-Federal Award Requirements and
                                                                                                                   200; USDA implementing regulations 2                            must ensure that all contracts include
                                              Contents of Federal Awards (subpart C)
                                              does not apply to the National School                                CFR part 400 and part 415 and FNS                               any clauses required by Federal statutes
                                              Lunch Program).                                                      instructions.                                                   and executive orders and that the
                                                                                                                   ■ 5. Revise § 210.21(a) and (b), and the                        requirements 2 CFR 200.236 and
                                              *     *     *    *     *
                                                                                                                   introductory text of paragraph (c), to                          Appendix II, Contract Provisions for
                                                Applicable credits shall have the
                                              meaning established in 2 CFR part 200                                read as follows:                                                Non-Federal Entity Contracts Under
                                              and USDA implementing regulations 2                                                                                                  Federal Award are followed. A school
                                                                                                                   § 210.21       Procurement.                                     food authority may use its own
                                              CFR part 400 and part 415.
                                                                                                                     (a) General. State agencies and school                        procurement procedures which reflect
                                              *     *     *    *     *                                             food authorities shall comply with the                          applicable State and local laws and
                                                USDA implementing regulations                                      requirements of this part and 2 CFR part
                                              include the following: 2 CFR part 400,                                                                                               regulations, provided that procurements
                                                                                                                   200, subpart D and USDA implementing                            made with nonprofit school food service
                                              Uniform Administrative Requirements,                                 regulations 2 CFR part 400 and part 415,
                                              Cost Principles, and Audit                                                                                                           account funds adhere to the standards
                                                                                                                   as applicable, which implement the                              set forth in this part and in 2 CFR part
                                              Requirements for Federal Awards; 2                                   applicable requirements, concerning the
                                              CFR part 415, General Program                                                                                                        200, subpart D, as applicable. School
                                                                                                                   procurement of all goods and services
                                                                                                                                                                                   food authority procedures must include
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                                              Administrative Regulations; 2 CFR part                               with nonprofit school food service
                                              416, General Program Administrative                                                                                                  a written code of standards of conduct
                                                                                                                   account funds.
                                              Regulations for Grants and Cooperative                                 (b) Contractual responsibilities. The                         meeting the minimum standards of 2
                                              Agreements to State and Local                                        standards contained in this part and 2                          CFR 200.318, as applicable.
                                              Governments; and 2 CFR part 418, New                                 CFR part 200, subpart D and USDA                                *     *      *     *    *
                                              Restrictions on Lobbying.                                            implementing regulations 2 CFR part
                                              *     *     *    *     *                                             400 and part 415, as applicable, do not


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                                              66490            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              § 210.25       [Amended]                                               PART 215—SPECIAL MILK PROGRAM                                       §§ 215.3, 215.11, 215.13, 215.15, 215.16
                                                                                                                     FOR CHILDREN                                                        [Amended]
                                              ■ 6. In § 210.25, remove the words ‘‘or
                                                                                                                                                                                         ■ 8. In the table below, for each section
                                              the parallel provisions of 7 CFR part
                                                                                                                     ■ 7. The authority citation for 7 CFR                               indicated in the left column, remove the
                                              3019,’’.
                                                                                                                     part 215 continues to read as follows:                              words indicated in the middle column
                                                                                                                                                                                         from wherever they appear in the
                                                                                                                         Authority: 42 U.S.C. 1772 and 1779.
                                                                                                                                                                                         section, and add the words indicated in
                                                                                                                                                                                         the right column:

                                                             Section                                                          Remove                                                                     Add

                                              215.3 ....................................   7 CFR part 3015, 7 CFR part 3016 and 7 CFR part                                       2 CFR part 200, subpart D and USDA implementing
                                                                                             3019, and with.                                                                       regulations 2 CFR part 400, subparts B and D and
                                                                                                                                                                                   USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                                   part 415, and.
                                              215.11 ..................................    SF–269 ............................................................................   FNS–777.
                                              215.13 ..................................    Office of Management and Budget Circular A–133 and                                    2 CFR part 200, subpart F, and Appendix XI, Compli-
                                                                                             the Department’s implementing regulations at 7 CFR                                    ance Supplement and USDA’s implementing regula-
                                                                                             part 3052.                                                                            tions 2 CFR part 400 and part 415.
                                              215.15 ..................................    at §§ 3016.43 and 3019.62 of this title ...........................                   2 CFR 200.338 through 200.342.
                                              215.16 ..................................    7 CFR part 3016 .............................................................         2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR subparts B and D and USDA im-
                                                                                                                                                                                   plementing regulations 2 CFR part 400 and part 415.



                                              ■ 9. In § 215.2:                                                       416, General Program Administrative                                 Matters concerning violation of law are
                                              ■ a. Remove the definitions for 7 CFR                                  Regulations for Grants and Cooperative                              to be referred to the local, State or
                                              part 3015, 7 CFR part 3016, 7 CFR part                                 Agreements to State and Local                                       Federal authority that has proper
                                              3018, 7 CFR part 3019, and 7 CFR part                                  Governments; and 2 CFR part 418, New                                jurisdiction.
                                              3052.                                                                  Restrictions on Lobbying.                                             (c) Procedures. The State agency may
                                              ■ b. Add a definition, in alphabetical                                 *     *    *     *    *                                             elect to follow either the State laws,
                                              order, for 2 CFR part 200.
                                                                                                                     § 215.13        [Amended]                                           policies and procedures as authorized
                                              ■ c. Revise the definition for Applicable
                                              credits.                                                                                                                                   by 2 CFR 200.317, or the procurement
                                                                                                                     ■ 10. Amend § 215.13(a) by removing                                 standards for other governmental
                                              ■ d. Add a definition, in alphabetical                                 the last sentence.
                                              order, for USDA implementing                                                                                                               grantees and all governmental
                                                                                                                     ■ 11. Revise § 215.14a (a) and (b), and                             subgrantees in accordance with 2 CFR
                                              regulations.                                                           the introductory text of paragraph (c), to
                                                The additions and revision read as                                                                                                       200.318 through 2 CFR 200.326.
                                                                                                                     read as follows:                                                    Regardless of the option selected, States
                                              follows:
                                                                                                                     § 215.14a         Procurement standards.                            must ensure that all contracts include
                                              215.2      Definitions.                                                                                                                    any clauses required by Federal statutes
                                                                                                                        (a) General. State agencies and school
                                              *     *     *    *     *                                               food authorities shall comply with the                              and executive orders and that the
                                                2 CFR part 200, means the Uniform                                    requirements of this part and 2 CFR part                            requirements of 2 CFR 200.236 and
                                              Administrative Requirements, Cost                                      200 and USDA implementing                                           Appendix II, Contract Provisions for
                                              Principles, and Audit Requirements for                                 regulations 2 CFR part 400 and part 415,                            Non-Federal Entity Contracts Under
                                              Federal Awards published by OMB. The                                   as applicable concerning the                                        Federal Award are followed. The school
                                              part reference covers applicable:                                      procurement of all goods and services                               food authority or child care institution
                                              Acronyms and Definitions (subpart A),                                  with nonprofit school food service                                  may use its own procurement
                                              General Provisions (subpart B), Post                                   account funds.                                                      procedures which reflect applicable
                                              Federal Award Requirements (subpart                                       (b) Contractual responsibilities. The                            State or local laws and regulations,
                                              D), Cost Principles (subpart E), and                                   standards contained in this part and 2                              provided that procurements made with
                                              Audit Requirements (subpart F). (NOTE:                                 CFR part 200, subpart D and USDA                                    nonprofit school food service account
                                              Pre-Federal Award Requirements and                                     implementing regulations 2 CFR part                                 funds adhere to the standards set forth
                                              Contents of Federal Awards (subpart C)                                 200 subparts B and D and USDA
                                              does not apply to the National School                                                                                                      in this part and in 2 CFR part 200,
                                                                                                                     implementing regulations 2 CFR part                                 subpart D and USDA implementing
                                              Lunch Program).                                                        400 and part 415, as applicable, do not                             regulations 2 CFR part 400 and part 415
                                              *     *     *    *     *                                               relieve the State agency or School Food                             as applicable. School food authority
                                                Applicable credits shall have the                                    Authority of any contractual
                                              meaning established in 2 CFR part 200                                                                                                      procedures must include a written code
                                                                                                                     responsibilities under its contract. The                            of standards of conduct meeting the
                                              and USDA implementing regulations 2                                    State agency or School Food Authority
                                              CFR part 400 and part 415.                                                                                                                 minimum standards of 2 CFR 200.318,
                                                                                                                     is the responsible authority, without
                                                                                                                                                                                         as applicable.
                                              *     *     *    *     *                                               recourse to FNS, regarding the
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                                                USDA implementing regulations                                        settlement and satisfaction of all                                  *     *      *    *     *
                                              include the following: 2 CFR part 400,                                 contractual and administrative issues                               § 215.16   [Amended]
                                              Uniform Administrative Requirements,                                   arising out of procurements entered into
                                              Cost Principles, and Audit                                             in connection with the Program. This                                ■ 12. In § 215.16, remove the words ‘‘,
                                              Requirements for Federal Awards; 2                                     includes but is not limited to: Source                              or the parallel provisions of 7 CFR part
                                              CFR part 415, General Program                                          evaluation, protests, disputes, claims, or                          3019, as applicable,’’.
                                              Administrative Regulations; 2 CFR part                                 other matters of a contractual nature.


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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                            66491

                                              PART 220—SCHOOL BREAKFAST                                              Authority: 42 U.S.C. 1773, 1779, unless                       words indicated in the middle column
                                              PROGRAM                                                              otherwise noted.                                                from wherever they appear in the
                                                                                                                   §§ 220.3, 220.13, 220.15, 220.18, 220.19                        section, and add the words indicated in
                                              ■ 13. The authority citation for 7 CFR                               [Amended]                                                       the right column:
                                              part 220 continues to read as follows:                               ■ 14. In the table below, for each section
                                                                                                                   indicated in the left column, remove the

                                                             Section                                                       Remove                                                                  Add

                                              220.3 ....................................   7 CFR part 3015, 7 CFR part 3016 and 7 CFR part                                 2 CFR part 200, subpart D and USDA implementing
                                                                                             3019, and with.                                                                 regulations 2 CFR part 400 subparts B and D and
                                                                                                                                                                             USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                             part 415 and.
                                              220.13 ..................................    7 CFR Part 3015, and 7 CFR Part 3016 or 7 CFR Part                              2 CFR part 200, subpart D and E, as applicable, and
                                                                                             3019.                                                                           USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                             part 415.
                                              220.15 ..................................    Office of Management and Budget Circular A–133 and                              2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                             the Department’s implementing regulations at 7 CFR                              ance Supplement, and USDA implementing regula-
                                                                                             part 3052. For availability of the OMB Circular men-                            tions 2 CFR part 400 and part 415.
                                                                                             tioned in this paragraph, please refer to 5 CFR
                                                                                             1310.3.
                                              220.18 ..................................    Departmental regulations at §§ 3016.43 and 3019.62 of                           2 CFR 200.338 through 342.
                                                                                             this title.
                                              220.19 ..................................    7 CFR part 3016 .............................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 subparts B and D and
                                                                                                                                                                             USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                             part 415.



                                              ■ 15. In § 220.2:                                                    Requirements for Federal Awards; 2                              limited to: Source evaluation, protests,
                                              ■ a. Remove the definitions for 7 CFR                                CFR part 415, General Program                                   disputes, claims, or other matters of a
                                              part 3015, 7 CFR part 3016, 7 CFR part                               Administrative Regulations; 2 CFR part                          contractual nature. Matters concerning
                                              3018; 7 CFR part 3019, and 7 CFR part                                416, General Program Administrative                             violation of law are to be referred to the
                                              3052.                                                                Regulations for Grants and Cooperative                          local, State or Federal authority that has
                                              ■ b. Add a definition, in alphabetical                               Agreements to State and Local                                   proper jurisdiction.
                                              order, for 2 CFR part 200.                                           Governments; and 2 CFR part 418, New                              (c) Procedures. The State agency may
                                              ■ c. Revise the definition for Applicable                            Restrictions on Lobbying.                                       elect to follow either the State laws,
                                              credits.                                                                                                                             policies and procedures as authorized
                                              ■ d. Add a definition, in alphabetical
                                                                                                                   *     *     *    *     *
                                                                                                                   ■ 16. Revise § 220.16 (a) and (b), and the
                                                                                                                                                                                   by 2 CFR 200.317, or the procurement
                                              order, for USDA implementing
                                                                                                                   introductory text of paragraph (c), to                          standards for other governmental
                                              regulations.
                                                The additions and revision read as                                 read as follows:                                                grantees and all governmental
                                              follows:                                                                                                                             subgrantees in accordance with 2 CFR
                                                                                                                   § 220.16       Procurement standards.                           200.318 through 2 CFR 200.326.
                                              § 220.2      Definitions.                                               (a) General. State agencies and school                       Regardless of the option selected, States
                                              *     *     *    *     *                                             food authorities shall comply with the                          must ensure that all contracts include
                                                2 CFR part 200, means the Uniform                                  requirements of this part 2 CFR part                            any clauses required by Federal statutes
                                              Administrative Requirements, Cost                                    200, subpart D and USDA implementing                            and executive orders and that the
                                              Principles, and Audit Requirements for                               regulations 2 CFR part 400 and part 415,                        requirements of 2 CFR 200.326 are
                                              Federal Awards published by OMB. The                                 as applicable, which implement the                              followed. The school food authority
                                              part reference covers applicable:                                    applicable Office of Management and                             may use its own procurement
                                              Acronyms and Definitions (subpart A),                                Budget Circulars, concerning the                                procedures which reflect applicable
                                              General Provisions (subpart B), Post                                 procurement of all goods and services                           State and local laws and regulations,
                                              Federal Award Requirements (subpart                                  with nonprofit school food service                              provided that procurements made with
                                              D), Cost Principles (subpart E), and                                 account funds.                                                  nonprofit school food service account
                                              Audit Requirements (subpart F). (NOTE:                                  (b) Contractual responsibilities. The                        funds adhere to the standards set forth
                                              Pre-Federal Award Requirements and                                   standards contained in 2 CFR part 200,                          in this part 2 CFR 200.326 and
                                              Contents of Federal Awards (subpart C)                               subpart D and USDA implementing                                 Appendix II, Contract Provisions for
                                              does not apply to the National School                                regulations 2 CFR part 400 and part 415,                        Non-Federal Entity Contracts Under
                                              Lunch Program).                                                      as applicable, do not relieve the State                         Federal Award as applicable. School
                                              *     *     *    *     *                                             agency or School Food Authority of any                          food authority procedures must include
                                                Applicable credits shall have the                                  contractual responsibilities under its                          a written code of standards of conduct
                                              meaning established in 2 CFR part 200                                contract. The State agency or School                            meeting the minimum standards of 2
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                                              and USDA implementing regulations 2                                  Food Authority is the responsible                               CFR 200.318, as applicable.
                                              CFR part 400 and part 415.                                           authority, without recourse to FNS,                             *     *      *    *     *
                                              *     *     *    *     *                                             regarding the settlement and satisfaction
                                                                                                                                                                                   § 220.19   [Amended]
                                                USDA implementing regulations                                      of all contractual and administrative
                                              include the following: 2 CFR part 400,                               issues arising out of procurements                              ■ 17. In § 220.19, remove the words ‘‘,
                                              Uniform Administrative Requirements,                                 entered into in connection with the                             or the parallel provisions of 7 CFR part
                                              Cost Principles, and Audit                                           Program. This includes but is not                               3019, as applicable,’’.


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                                              66492            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              PART 225—SUMMER FOOD SERVICE                                             Authority: Secs. 9, 13 and 14, Richard B.                         words indicated in the middle column
                                              PROGRAM                                                                Russell National School Lunch Act, as                               from wherever they appear in the
                                                                                                                     amended (42 U.S.C. 1758, 1761 and 1762a).
                                                                                                                                                                                         section, and add the words indicated in
                                              ■ 18. The authority citation for 7 CFR                                 §§ 225.7, 225.8, 225.10, 225.17, 225.18                             the right column:
                                              part 225 continues to read as follows:                                 [Amended]
                                                                                                                     ■ 19. In the table below, for each section
                                                                                                                     indicated in the left column, remove the

                                                             Section                                                          Remove                                                                      Add

                                              225.7 ....................................   7 CFR part 3015, and 7 CFR part 3016 or 7 CFR part                                    2 CFR part 200, subpart D and E, and USDA imple-
                                                                                             3019.                                                                                 menting regulations 2 CFR part 400 and part 415.
                                              225.8 ....................................   SF–269 ............................................................................   FNS–777.
                                              225.10 ..................................    the Department’s Uniform Federal Assistance Regula-                                   2 CFR part 200, subpart F and USDA implementing
                                                                                             tions (7 CFR part 3015).                                                              regulations 2 CFR part 400 and part 415.
                                              225.10 ..................................    7 CFR part 3015 .............................................................         2 CFR part 200, subpart F and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              225.10 ..................................    OMB Circular A–133 and the Department’s imple-                                        2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                             menting regulations at 7 CFR part 3052. (To obtain                                    ance Supplement and USDA implementing regula-
                                                                                             the OMB circular referenced in this paragraph, see 5                                  tions 2 CFR part 400 and part 415.
                                                                                             CFR 1310.3.).
                                              225.17 ..................................    7 CFR part 3016 or 7 CFR part 3019 ............................                       2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              225.17 ..................................    set forth in 7 CFR part 3016 ...........................................              set forth in 2 CFR part 200, subpart F and USDA im-
                                                                                                                                                                                   plementing regulations 2 CFR part 400 and part 415.
                                              225.17 ..................................    set forth in 7 CFR part 3019 ...........................................              set forth in 2 CFR part 200, subpart F and USDA im-
                                                                                                                                                                                   plementing regulations 2 CFR part 400 and part 415.
                                              225.18 ..................................    7 CFR part 3016 or 7 CFR part 3019 ............................                       2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.



                                              ■ 20. In § 225.2:                                                      D), Cost Principles (subpart E), and                                PART 226—CHILD AND ADULT CARE
                                              ■ a. Remove the definitions for 7 CFR                                  Audit Requirements (subpart F). (NOTE:                              FOOD PROGRAM
                                              part 3015, 7 CFR part 3016, 7 CFR part                                 Pre-Federal Award Requirements and
                                              3019, and 7 CFR part 3052.                                             Contents of Federal Awards (subpart C)                              ■ 21. The authority citation for 7 CFR
                                              ■ b. Add a definition, in alphabetical                                 does not apply to the National School                               part 226 continues to read as follows:
                                              order, for 2 CFR part 200.                                             Lunch Program).
                                              ■ c. Add a definition, in alphabetical                                                                                                       Authority: Secs. 9, 11, 14, 16, and 17,
                                                                                                                     *     *     *    *     *
                                              order, for USDA implementing                                             USDA implementing regulations
                                                                                                                                                                                         Richard B. Russell National School Lunch
                                              regulations.                                                                                                                               Act, as amended (42 U.S.C. 1758, 1759a,
                                                                                                                     include the following: 2 CFR part 400,
                                                The additions read as follows:                                                                                                           1762a, 1765 and 1766).
                                                                                                                     Uniform Administrative Requirements,
                                              § 225.2      Definitions.                                              Cost Principles, and Audit                                          §§ 226.4, 226.7, 226.10, 226.22, 226.24,
                                              *     *     *    *     *                                               Requirements for Federal Awards; 2                                  226.25 [Amended]
                                                2 CFR part 200, means the Uniform                                    CFR part 415, General Program
                                              Administrative Requirements, Cost                                      Administrative Regulations; 2 CFR part                              ■ 22. In the table below, for each section
                                              Principles, and Audit Requirements for                                 416, General Program Administrative                                 indicated in the left column, remove the
                                              Federal Awards published by OMB. The                                   Regulations for Grants and Cooperative                              words indicated in the middle column
                                              part reference covers applicable:                                      Agreements to State and Local                                       from wherever they appear in the
                                              Acronyms and Definitions (subpart A),                                  Governments; and 2 CFR part 418, New                                section, and add the words indicated in
                                              General Provisions (subpart B), Post                                   Restrictions on Lobbying.                                           the right column:
                                              Federal Award Requirements (subpart                                    *     *     *    *     *

                                                             Section                                                          Remove                                                                      Add

                                              226.4 ....................................   7 CFR part 3016 .............................................................         2 CFR part 200, subpart D, and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415, as applica-
                                                                                                                                                                                   ble.
                                              226.6 ....................................   parts 3015, 3016, and 3019 of this title ..........................                   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              226.7 ....................................   7 CFR part 3015, 7 CFR part 3016 and 7 CFR part                                       2 CFR part 200, subpart D and USDA implementing
                                                                                             3019.                                                                                 regulations 2 CFR part 400 and part 415.
                                              226.7 ....................................   SF–269 ............................................................................   FNS–777.
                                              226.7 ....................................   parts 3015, 3016, and 3019 of this title ..........................                   2 CFR part 200, subpart D and USDA implementing
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                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              226.10 ..................................    7 CFR part 3016 or 7 CFR part 3019 ............................                       2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              226.22 ..................................    7 CFR part 3016 .............................................................         2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              226.22 ..................................    7 CFR part 3019 .............................................................         2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.



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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                                     66493

                                                             Section                                                         Remove                                                                      Add

                                              226.22 ..................................   § 3015.175 .......................................................................    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.
                                              226.24 ..................................   7 CFR part 3016 or 7 CFR part 3019 ............................                       2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.
                                              226.25 ..................................   7 CFR part 3016 or 7 CFR part 3019 ............................                       2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.



                                              ■ 23. In § 226.2:                                                     Uniform Administrative Requirements,                                performed, audits, reviews, agreed-upon
                                              ■ a. Remove the definitions for 7 CFR                                 Cost Principles, and Audit                                          procedures engagements, or other
                                              part 3015, 7 CFR part 3016, 7 CFR part                                Requirements for Federal Awards; 2                                  monitoring activities.
                                              3019, and 7 CFR part 3052; and                                        CFR part 415, General Program                                         (b) The funds provided to the State
                                              ■ b. Add a definition, in alphabetical                                Administrative Regulations; 2 CFR part                              agency under § 226.4(j) may be made
                                              order, for 2 CFR part 200.                                            416, General Program Administrative                                 available to institutions to fund a
                                              ■ c. Add a definition, in alphabetical                                Regulations for Grants and Cooperative                              portion of organization-wide audits
                                              order, for USDA implementing                                          Agreements to State and Local                                       made in accordance with 2 CFR part
                                              regulations.                                                          Governments; and 2 CFR part 418, New
                                                The additions read as follows:                                                                                                          200, subpart F and USDA implementing
                                                                                                                    Restrictions on Lobbying.                                           regulations 2 CFR part 400 and part 415.
                                              § 226.2      Definitions.                                             *     *    *     *     *                                            The funds provided to an institution for
                                              *     *     *    *     *                                              ■ 24. Revise § 226.8(a) and (b) to read as                          an organization-wide audit must be
                                                2 CFR part 200, means the Uniform                                   follows:                                                            determined in accordance with 2 CFR
                                              Administrative Requirements, Cost                                                                                                         part 200, subpart F and USDA
                                              Principles, and Audit Requirements for                                § 226.8       Audits.                                               implementing regulations 2 CFR part
                                              Federal Awards published by OMB. The                                    (a) Unless otherwise exempt, audits at                            400 and part 415.
                                              part reference covers applicable:                                     the State and institution levels must be                            *     *     *     *     *
                                              Acronyms and Definitions (subpart A),                                 conducted in accordance with 2 CFR
                                              General Provisions (subpart B), Post                                  part 200, subpart F, Appendices X and                               PART 227—NUTRITION EDUCATION
                                              Federal Award Requirements (subpart                                   XI, Data Collection Form and                                        AND TRAINING PROGRAM
                                              D), Cost Principles (subpart E), and                                  Compliance Supplement, respectively
                                                                                                                                                                                        §§ 227.30, 227.31, 227.35, 227.42
                                              Audit Requirements (subpart F). (NOTE:                                and USDA implementing regulations 2                                 [Amended]
                                              Pre-Federal Award Requirements and                                    CFR parts 400, 415 and 416. State
                                              Contents of Federal Awards (subpart C)                                agencies must establish audit policy for                            ■ 25. In the table below, for each section
                                              does not apply to the National School                                 for-profit institutions. However, the                               indicated in the left column, remove the
                                              Lunch Program).                                                       audit policy established by the State                               words indicated in the middle column
                                              *     *     *    *     *                                              agency must not conflict with the                                   from wherever they appear in the
                                                USDA implementing regulations                                       authority of the State agency or the                                section, and add the words indicated in
                                              include the following: 2 CFR part 400,                                Department to perform, or cause to be                               the right column:

                                                             Section                                                         Remove                                                                      Add

                                              227.30 ..................................   7 CFR part 3015 .............................................................         2 CFR part 200, subpart D, and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415, as applica-
                                                                                                                                                                                  ble.
                                              227.30 ..................................   OMB Circular A–102 Attachment C ................................                      2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.
                                              227.30 ..................................   SF–269 ............................................................................   FNS–777.
                                              227.30 ..................................   OMB Circular A–102, Attachment H ...............................                      2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.
                                              227.30 ..................................   Federal Management Circular 74–4 and OMB Circular                                     2 CFR part 200, subpart D and USDA implementing
                                                                                            A–102, Attachment G.                                                                  regulations 2 CFR part 400 and part 415.
                                              227.30 ..................................   OMB Circular A–102, Attachments N and O, and Fed-                                     2 CFR part 200, subpart D and USDA implementing
                                                                                            eral Management Circular 74–4.                                                        regulations 2 CFR part 400 and part 415.
                                              227.30 ..................................   OMB Circular A–102, Attachment E ...............................                      2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.
                                              227.31 ..................................   OMB Circular A–102, Attachment G ...............................                      2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                                  ance Supplement.
                                              227.35 ..................................   SF–269 ............................................................................   FNS–777.
                                              227.42 ..................................   OMB Circular A–102, Attachment L ...............................                      2 CFR part 200, subpart D, and USDA implementing
                                                                                                                                                                                  regulations 2 CFR part 400 and part 415.
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                                              PART 235—STATE ADMINISTRATIVE                                           Authority: Secs. 7 and 10 of the Child                            §§ 235.3, 235.5, 235.6, 235.7, 235.8, 235.9,
                                              EXPENSE FUNDS                                                         Nutrition Act of 1966, 80 Stat. 888, 889, as                        235.11 [Amended]
                                                                                                                    amended (42 U.S.C. 1776, 1779).                                     ■ 27. In the table below, for each section
                                              ■ 26. The authority citation for 7 CFR                                                                                                    indicated in the left column, remove the
                                              part 235 continues to read as follows:                                                                                                    words indicated in the middle column


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                                              66494            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              from wherever they appear in the                                       section, and add the words indicated in
                                                                                                                     the right column:

                                                             Section                                                          Remove                                                                       Add

                                              235.3 ....................................   3015, and 3016 ...............................................................        and 2 CFR part 200, subpart D and USDA imple-
                                                                                                                                                                                   menting regulations 2 CFR part 400 and part 415.
                                              235.5 ....................................   Office of Management and Budget Circular A–87, At-                                    2 CFR part 200, subpart E and USDA implementing
                                                                                             tachment B, to establish cost categories.                                             regulations 2 CFR part 400 and part 415.
                                              235.5 ....................................   (SF) 269 ..........................................................................   FNS 777.
                                              235.6 ....................................   Office of Management and Budget Circular A–87 ..........                              2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              235.7 ....................................   SF–269 ............................................................................   FNS–777.
                                              235.8 ....................................   Office of Management and Budget Circular A–133, and                                   2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                             the Department’s implementing regulations at 7 CFR                                    ance Supplement and USDA implementing regula-
                                                                                             part 3052. (To obtain the OMB circular referenced in                                  tions 2 CFR part 400 and part 415.
                                                                                             this definition, see 5 CFR 1310.3.).
                                              235.9 ....................................   7 CFR part 3016 .............................................................         2 CFR part 200, subpart D       and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400    and part 415.
                                              235.11 ..................................    SF–269 ............................................................................   FNS–777.
                                              235.11(a) ..............................     7 CFR part 3016 .............................................................         2 CFR part 200, subpart E       and   USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400    and   part 415.
                                              235.11(b)(5)(v) .....................        7 CFR part 3016 .............................................................         2 CFR part 200, subpart D       and   USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400    and   part 415.
                                              235.11(d) ..............................     7 CFR part 3016 .............................................................         2 CFR part 200, subpart D       and   USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400    and   part 415.



                                              ■ 28. In § 235.2:                                                      Pre-Federal Award Requirements and                                  Assistance Regulations (7 CFR part
                                              ■ a. Remove the definitions for 7 CFR                                  Contents of Federal Awards (subpart C)                              3015)’’ and add, in their place, the
                                              part 3015, 7 CFR part 3016, 7 CFR part                                 does not apply to the National School                               words ‘‘2 CFR part 200, subpart D and
                                              3018, 7 CFR part 3019, and 7 CFR part                                  Lunch Program).                                                     USDA implementing regulations 2 CFR
                                              3052; and                                                              *     *    *     *    *                                             part 400 and part 415’’.
                                              ■ b. Add a definition, in alphabetical                                   USDA implementing regulations
                                              order, for 2 CFR part 200.                                             include the following: 2 CFR part 400,                              PART 246—SPECIAL SUPPLEMENTAL
                                              ■ c. Add a definition, in alphabetical                                 Uniform Administrative Requirements,                                NUTRITION PROGRAM FOR WOMEN,
                                              order, for USDA implementing                                           Cost Principles, and Audit                                          INFANTS AND CHILDREN
                                              regulations.                                                           Requirements for Federal Awards; 2
                                                The additions read as follows:                                       CFR part 415, General Program                                       ■ 30. The authority citation for 7 CFR
                                                                                                                     Administrative Regulations; 2 CFR part                              part 246 continues to read as follows:
                                              § 235.2      Definitions.
                                                                                                                     416, General Program Administrative                                     Authority: 42 U.S.C. 1786.
                                              *     *     *    *     *                                               Regulations for Grants and Cooperative
                                                2 CFR part 200, means the Uniform                                    Agreements to State and Local                                       §§ 246.3, 246.4, 246.12, 246.13, 246.14,
                                              Administrative Requirements, Cost                                      Governments; and 2 CFR part 418, New                                246.15, 246.17, 246.20, 246.24, 246.25
                                              Principles, and Audit Requirements for                                 Restrictions on Lobbying.                                           [Amended]
                                              Federal Awards published by OMB. The
                                              part reference covers applicable:                                      PART 240—CASH IN LIEU OF                                            ■ 31. In the table below, for each section
                                              Acronyms and Definitions (subpart A),                                  DONATED FOODS                                                       indicated in the left column, remove the
                                              General Provisions (subpart B), Post                                                                                                       words indicated in the middle column
                                              Federal Award Requirements (subpart                                    § 240.9       [Amended]                                             from wherever they appear in the
                                              D), Cost Principles (subpart E), and                                   ■  29. In § 240.9(c), remove the words                              section, and add the words indicated in
                                              Audit Requirements (subpart F). (NOTE:                                 ‘‘the Department’s Uniform Federal                                  the right column:

                                                             Section                                                          Remove                                                                       Add

                                              246.3 ....................................   7 CFR part 3016 .............................................................         2 CFR part 200, subpart A–F and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              246.3 ....................................   7 CFR part 3018 .............................................................         2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400, part 415, and part 418.
                                              246.4 ....................................   7 CFR part 3017 .............................................................         2 CFR part 180, OMB Guidelines to Agencies on Gov-
                                                                                                                                                                                   ernment-wide Debarment and Suspension and USDA
                                                                                                                                                                                   implementing regulations 2 CFR part 417.
                                              246.4 ....................................   7 CFR part 3021 .............................................................         2 CFR part 180, Government-wide Requirements for
                                                                                                                                                                                   Drug-Free Workplace (Financial Assistance) and
                                                                                                                                                                                   USDA implementing regulation 2 CFR part 421.
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                                              246.12 ..................................    Part 3016 .........................................................................   2 CFR part 200, subpart D, and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              246.12 ..................................    part 3016 of this title .......................................................       2 CFR part 200, subpart D, and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              246.13 ..................................    7 CFR part 3016 .............................................................         2 CFR part 200, subpart D, USDA implementing regu-
                                                                                                                                                                                   lations 2 CFR part 400 and part 415.




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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                                66495

                                                             Section                                                       Remove                                                                   Add

                                              246.14 ..................................   7 CFR part 3016 .............................................................     2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                              regulations 2 CFR part 400 and part 415.
                                              246.15 ..................................   § 3016.25(g) of this title ...................................................    2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                              regulations 2 CFR part 400 and part 415.
                                              246.17 ..................................   7 CFR part 3016 .............................................................     2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                              regulations 2 CFR part 400 and part 415.
                                              246.20 ..................................   part 3052 of this title .......................................................   2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                              ance Supplement and USDA implementing regula-
                                                                                                                                                                              tions 2 CFR part 400 and part 415.
                                              246.24(b) ..............................    7 CFR part 3016 .............................................................     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.
                                              246.24(c) ..............................    7 CFR part 3016 .............................................................     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.
                                              246.24(d) ..............................    7 CFR part 3016 .............................................................     2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                              regulations 2 CFR part 400 and part 415.
                                              246.25 ..................................   7 CFR part 3016 .............................................................     2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                              regulations 2 CFR part 400 and part 415.



                                              ■ 32. In § 246.2:                                                    § 246.3      Administration.                                     nonprocurement debarment/suspension
                                              ■ a. Remove the definitions for 7 CFR                                *      *    *     *     *                                        requirements and, if applicable, the
                                              part 3016, 7 CFR part 3017, 7 CFR part                                  (f) Delegation to local agency. The                           lobbying restrictions as required in 2
                                              3018, and 7 CFR part 3021; and                                       local agency shall provide Program                               CFR part 180, OMB Guidelines to
                                              ■ b. Add a definition, in alphabetical                               benefits to participants in the most                             Agencies on Government-wide
                                              order, for 2 CFR part 200.                                           effective and efficient manner, and shall                        Debarment and Suspension, 2 CFR part
                                              ■ c. Add a definition, in alphabetical                               comply with this part, the Department’s                          200, subpart E and USDA implementing
                                              order, for USDA implementing                                         regulations governing                                            regulations 2 CFR part 400, part 415,
                                              regulations.                                                         nondiscrimination (7 CFR parts 15, 15a,                          and part 417 concerning the
                                                The addition and revisions read as                                 15b), the regulations governing the                              procurement and allowability of food in
                                              follows:                                                             administration of grants (2 CFR part                             bulk lots, supplies, equipment and other
                                                                                                                   200, subpart A–F and USDA                                        services with Program funds. These
                                              § 246.2      Definitions.                                            implementing regulations 2 CFR part                              requirements are adopted to ensure that
                                              *     *     *    *      *                                            400 and part 415), Office of                                     such materials and services are obtained
                                                2 CFR part 200, means the Uniform                                  Management and Budget Circular A–                                for the Program in an effective manner
                                              Administrative Requirements, Cost                                    130, and State agency and FNS                                    and in compliance with the provisions
                                              Principles, and Audit Requirements for                               guidelines and instructions.                                     of applicable law and executive orders.
                                              Federal Awards published by OMB. The                                 ■ 34. Revise § 246.6(b)(1) to read as                            *     *     *    *     *
                                              part reference covers applicable:                                    follows:
                                              Acronyms and Definitions (subpart A),                                                                                                 PART 247—COMMODITY
                                              General Provisions (subpart B), Post                                 § 246.6      Agreements with local agencies.                     SUPPLEMENTAL FOOD PROGRAM
                                              Federal Award Requirements (subpart                                  *     *     *     *    *
                                              D), Cost Principles (subpart E), and                                   (b) * * *                                                      ■ 36. The authority citation for 7 CFR
                                              Audit Requirements (subpart F). (NOTE:                                 (1) Complies with all the fiscal and                           part 247 continues to read as follows:
                                              Pre-Federal Award Requirements and                                   operational requirements prescribed by                             Authority: Sec. 5, Pub. L. 93–86, 87 Stat.
                                              Contents of Federal Awards (subpart C)                               the State agency pursuant to debarment                           249, as added by Sec. 1304(b)(2), Pub. L. 95–
                                              does not apply to the National School                                and suspension requirements and if                               113, 91 Stat. 980 (7 U.S.C. 612c note); sec.
                                                                                                                   applicable, the lobbying restrictions of 2                       1335, Pub. L. 97–98, 95 Stat. 1293 (7 U.S.C.
                                              Lunch Program).
                                                                                                                   CFR part 200, subpart E, and USDA                                612c note); sec. 209, Pub. L. 98–8, 97 Stat.
                                              *     *     *    *      *                                                                                                             35 (7 U.S.C. 612c note); sec. 2(8), Pub. L. 98–
                                                                                                                   implementing regulations 2 CFR part
                                                USDA implementing regulations                                      400, part 415, and part 417, and FNS                             92, 97 Stat. 611 (7 U.S.C. 612c note); sec.
                                              include the following: 2 CFR part 400,                                                                                                1562, Pub. L. 99–198, 99 Stat. 1590 (7 U.S.C.
                                                                                                                   guidelines and instructions, and                                 612c note); sec. 101(k), Pub. L. 100–202; sec.
                                              Uniform Administrative Requirements,                                 provides on a timely basis to the State
                                              Cost Principles, and Audit                                                                                                            1771(a), Pub. L. 101–624, 101 Stat. 3806 (7
                                                                                                                   agency all required information                                  U.S.C. 612c note); sec 402(a), Pub. L. 104–
                                              Requirements for Federal Awards; 2                                   regarding fiscal and Program                                     127, 110 Stat. 1028 (7 U.S.C. 612c note); sec.
                                              CFR part 415, General Program                                        information;                                                     4201, Pub. L. 107–171, 116 Stat. 134 (7 U.S.C.
                                              Administrative Regulations; 2 CFR part                                                                                                7901 note); sec. 4221, Pub. L. 110–246, 122
                                              416, General Program Administrative                                  *     *     *     *    *
                                                                                                                                                                                    Stat. 1886 (7 U.S.C. 612c note); sec. 4221,
                                              Regulations for Grants and Cooperative                               ■ 35. Revise § 246.24(a) to read as
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                                                                                                                                                                                    Pub. L. 113–79, 7 U.S.C. 612c note).
                                              Agreements to State and Local                                        follows:
                                                                                                                                                                                    ■ 37. In § 247.1:
                                              Governments; and 2 CFR part 418, New                                 § 246.24 Procurement and property                                ■ a. Remove the definitions for 7 CFR
                                              Restrictions on Lobbying.                                            management.                                                      part 3016, 7 CFR part 3019, and 7 CFR
                                              *     *     *    *      *                                              (a) Requirements. State and local                              part 3052;
                                              ■ 33. Revise § 246.3(f) to read as                                   agencies shall ensure that subgrantees                           ■ b. Add a definition, in alphabetical
                                              follows:                                                             comply with the requirements for the                             order, for 2 CFR part 200; and


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                                              66496            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              ■ c. Add a definition, in alphabetical                               Uniform Administrative Requirements,                            subpart E and USDA implementing
                                              order, for USDA implementing                                         Cost Principles, and Audit                                      regulations 2 CFR part 400 and part 415,
                                              regulations.                                                         Requirements for Federal Awards; 2                              which set out the principles for
                                                The additions read as follows:                                     CFR part 415, General Program                                   determining whether specific costs are
                                                                                                                   Administrative Regulations; 2 CFR part                          allowable. Some examples of allowable
                                              § 247.1      Definitions.
                                                                                                                   416, General Program Administrative                             costs in CSFP include:
                                              *     *     *    *     *                                             Regulations for Grants and Cooperative
                                                2 CFR part 200, means the Uniform                                                                                                  *     *    *    *     *
                                                                                                                   Agreements to State and Local
                                              Administrative Requirements, Cost                                    Governments; and 2 CFR part 418, New                            PART 248—WIC FARMERS’ MARKET
                                              Principles, and Audit Requirements for                               Restrictions on Lobbying.                                       NUTRITION PROGRAM (FMNP)
                                              Federal Awards published by OMB. The
                                              part reference covers applicable:                                    *     *    *     *    *
                                              Acronyms and Definitions (subpart A),                                                                                                ■ 39. The authority citation for 7 CFR
                                                                                                                   ■ 38. Revise § 247.25(a) introductory                           part 248 continues to read as follows:
                                              General Provisions (subpart B), Post                                 text to read as follows:
                                              Federal Award Requirements (subpart                                                                                                      Authority: 42 U.S.C. 1786.
                                              D), Cost Principles (subpart E), and                                 § 247.25 Allowable uses of administrative
                                                                                                                   funds and other funds.                                          §§ 248.10, 248.11, 248.12, 248.13, 248.14,
                                              Audit Requirements (subpart F). (NOTE:                                                                                               248.15, 248.18, 248.21, 248.23 [Amended]
                                              Pre-Federal Award Requirements and                                      (a) What are allowable uses of
                                              Contents of Federal Awards (subpart C)                               administrative funds provided to State                          ■ 40. In the table below, for each section
                                              does not apply to the National School                                and local agencies? Administrative                              indicated in the left column, remove the
                                              Lunch Program).                                                      funds may be used for costs that are                            words indicated in the middle column
                                              *     *     *    *     *                                             necessary to ensure the efficient and                           from wherever they appear in the
                                                USDA implementing regulations                                      effective administration of the program,                        section, and add the words indicated in
                                              include the following: 2 CFR part 400,                               in accordance with 2 CFR part 200,                              the right column:

                                                             Section                                                       Remove                                                                    Add

                                              248.10 ..................................   7 CFR part 3016, Uniform Administrative Requirements                             2 CFR part 200, subpart D and Appendix II, Contract
                                                                                            for Grants and Cooperative Agreements to State and                               Provisions for Non-Federal Entity Contracts Under
                                                                                            Local Governments.                                                               Federal Awards and USDA implementing regulations
                                                                                                                                                                             2 CFR part 400 and 415.
                                              248.11 ..................................   7 CFR part 3016 .............................................................    2 CFR part 200, subparts D and E and USDA imple-
                                                                                                                                                                             menting regulations 2 CFR part 400 and part 415.
                                              248.12 ..................................   7 CFR 3016.22 ................................................................   2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.12 ..................................   7 CFR part 3016 .............................................................    2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.13 ..................................   7 CFR 3016.25(g)(2) .......................................................      2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.14 ..................................   7 CFR 3016.24 ................................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.15 ..................................   7 CFR part 3016 .............................................................    2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.18 ..................................   7 CFR part 3015, § 3016.26 or part 3051 ......................                   2 CFR part 200, subpart F and Appendix XI Compli-
                                                                                                                                                                             ance Supplement and USDA implementing regula-
                                                                                                                                                                             tions 2 CFR part 400 and part 415.
                                              248.21(a) ..............................    7 CFR part 3016 .............................................................    2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.21(b) ..............................    7 CFR part 3016 .............................................................    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.
                                              248.21(c) ..............................    7 CFR part 3016 .............................................................    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.
                                              248.21(d) ..............................    7 CFR part 3016 .............................................................    2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.
                                              248.23 ..................................   7 CFR part 3016 .............................................................    2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                             regulations 2 CFR part 400 and part 415.



                                              ■ 41. Revise § 248.3(b) to read as                                   requirements of the Department’s                                Agencies on Government-wide
                                              follows:                                                             regulations governing                                           Debarment and Suspension and USDA
                                                                                                                   nondiscrimination (7 CFR parts 15, 15a                          implementing regulations 2 CFR part
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                                              § 248.3      Administration.
                                                                                                                   and 15b), administration of grants (2                           417), drug-free workplace (2 CFR part
                                              *     *     *     *     *                                            CFR part 200, subparts A, B, D, E and                           182, Government-wide Requirements for
                                                (b) Delegation to State agency. The                                F and USDA implementing regulations                             Drug-Free Workplace), and lobbying (2
                                              State agency is responsible for the                                  2 CFR part 400 and part 415),                                   CFR part 200, subpart E and USDA
                                              effective and efficient administration of                            nonprocurement debarment/suspension                             implementing regulations 2 CFR part
                                              the FMNP in accordance with the
                                                                                                                   (2 CFR part 180, OMB Guidelines to                              400, part 415 and part 418); and, Office
                                              requirements of this part; the


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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                                 66497

                                              of Management and Budget Circular A–                                  § 248.22 Nonprocurement debarment/                               PART 249—SENIOR FARMERS’
                                              130, FNS guidelines, and Instructions                                 suspension, drug-free workplace, and                             MARKET NUTRITION PROGRAM
                                                                                                                    lobbying restrictions.
                                              issued under the FNS Directives                                                                                                        (SFMNP)
                                              Management System. The State agency                                     The State agency shall ensure
                                              shall provide guidance to cooperating                                 compliance with the requirements of the
                                                                                                                                                                                     ■ 43. The authority citation for 7 CFR
                                              WIC State and local agencies on all                                   Department’s regulations governing
                                                                                                                                                                                     part 249 continues to read as follows:
                                              aspects of FMNP operations. Pursuant to                               nonprocurement debarment/suspension
                                                                                                                    (2 CFR part 180, OMB Guidelines to                                   Authority: 7 U.S.C. 3007.
                                              section 17(m)(2) of the CNA, State
                                                                                                                    Agencies on Government-wide
                                              agencies may operate the FMNP locally                                                                                                  §§ 249.2, 249.3, 249.10, 249.11, 249.12,
                                                                                                                    Debarment and Suspension and USDA
                                              through nonprofit organizations or local                                                                                               249.13, 249.15, 249.18, 249.21, 249.23
                                                                                                                    implementing regulations 2 CFR part
                                              government entities and must ensure                                   417), drug-free workplace (2 CFR part
                                                                                                                                                                                     [Amended]
                                              coordination among the appropriate                                    182, Government-wide Requirements for
                                              agencies and organizations.                                                                                                            ■ 44. In the table below, for each section
                                                                                                                    Drug-Free Workplace), and the                                    indicated in the left column, remove the
                                              *     *    *     *     *                                              Department’s regulations governing                               words indicated in the middle column
                                                                                                                    restrictions on lobbying (2 CFR part 200,                        from wherever they appear in the
                                              ■   42. Revise § 248.22 to read as follows:
                                                                                                                    subpart E and USDA implementing
                                                                                                                                                                                     section, and add the words indicated in
                                                                                                                    regulations 2 CFR part 400, part 415 and
                                                                                                                                                                                     the right column:
                                                                                                                    part 418), where applicable.

                                                             Section                                                        Remove                                                                     Add

                                              249.2 ....................................   § 3016.3 of this chapter ...................................................      2 CFR part 200, Uniform Administrative Requirements,
                                                                                                                                                                               Cost Principles, and Audit Requirements for Federal
                                                                                                                                                                               Awards, subpart A, Acronyms and Definitions and
                                                                                                                                                                               USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                               part 415.
                                              249. 3 ...................................   part 3016 of this title .......................................................   2 CFR part 200, Uniform Administrative Requirements,
                                                                                                                                                                               Cost Principles, and Audit Requirements for Federal
                                                                                                                                                                               Awards and USDA implementing regulations 2 CFR
                                                                                                                                                                               part 400 and part 415.
                                              249.3 ....................................   part 3017 of this title .......................................................   2 CFR part 180, OMB Guidelines to Agencies on Gov-
                                                                                                                                                                               ernment-wide Debarment and Suspension and USDA
                                                                                                                                                                               implementing regulations 2 CFR part 417.
                                              249.3 ....................................   part 3021 of this title .......................................................   2 CFR part 182, Government-wide Requirements for
                                                                                                                                                                               Drug-Free Workplace.
                                              249.3 ....................................   part 3018 of this title .......................................................   2 CFR part 200, subpart E, Cost Principles; and USDA
                                                                                                                                                                               implementing regulations 2 CFR part 400, part 415,
                                                                                                                                                                               and part 418.
                                              249.10 ..................................    part 3016 of this title .......................................................   2 CFR part 200 and USDA implementing regulations 2
                                                                                                                                                                               CFR part 400 and part 415.
                                              249.11 ..................................    part 3016 of this title, a claim .........................................        2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415, a claim.
                                              249.12 ..................................    part 3016.22 of this title ..................................................     2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.12 ..................................    part 3016 of this title .......................................................   2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.12 ..................................    part 3016 of this title or this Part ....................................         2 CFR part 200, subpart E and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.13 ..................................    part 3016.25(g)(2) of this title .........................................        2 CFR part 200, subpart D, Post Federal Award Re-
                                                                                                                                                                               quirements and USDA implementing regulations 2
                                                                                                                                                                               CFR part 400 and part 415.
                                              249.15 ..................................    part 3016 of this title .......................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.18 ..................................    parts 3015, 3016 (§ 3016.26 of this title), or 3051 of this                       2 CFR part 200, subpart F, Audit Requirements and
                                                                                             title.                                                                            USDA implementing regulations 2 CFR part 400 and
                                                                                                                                                                               part 415.
                                              249.21(a) ..............................     part 3016 of this title .......................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.21(b) ..............................     part 3016 of this title .......................................................   2 CFR part 200, subpart D; Appendix II Contract Provi-
                                                                                                                                                                               sions for Non-Federal Entity Contracts Under Federal
                                                                                                                                                                               Awards; and USDA implementing regulations 2 CFR
                                                                                                                                                                               part 400 and part 415.
                                              249.21(d) ..............................     part 3016 of this title .......................................................   2 CFR part 200, subpart D and USDA implementing
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                                                                                                                                                                               regulations 2 CFR part 400 and part 415.
                                              249.23 ..................................    part 3016 of this title .......................................................   2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                               regulations 2 CFR part 400 and part 415.




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                                              66498            Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              ■   45. Revise § 249.22 to read as follows:                            implementing regulations 2 CFR part                                 PART 253—ADMINISTRATION OF THE
                                                                                                                     417) and drug-free workplace (2 CFR                                 FOOD DISTRIBUTION PROGRAM FOR
                                              § 249.22 Nonprocurement debarment/                                     part 182, Government-wide                                           HOUSEHOLDS ON INDIAN
                                              suspension, drug-free workplace, and
                                              lobbying restrictions.
                                                                                                                     Requirements for Drug-Free Workplace),                              RESERVATIONS
                                                                                                                     as well as FNS’ regulations governing
                                                                                                                                                                                         §§ 253.5 and 253.11       [Amended]
                                                The State agency must ensure                                         restrictions on lobbying (2 CFR part 200,
                                              compliance with the requirements of                                    subpart E and USDA implementing                                     ■ 46. In the table below, for each section
                                              FNS’ regulations governing                                             regulations 2 CFR part 400, part 415,                               indicated in the left column, remove the
                                              nonprocurement debarment/suspension                                    and part 418), where applicable.                                    words indicated in the middle column
                                              (2 CFR part 180, OMB Guidelines to                                                                                                         from wherever they appear in the
                                              Agencies on Government-wide                                                                                                                section, and add the words indicated in
                                              Debarment and Suspension and USDA                                                                                                          the right column:

                                                             Section                                                          Remove                                                                        Add

                                              253.5 ....................................   SF–269 ............................................................................   SF–425.
                                              253.11 ..................................    7 CFR part 3015, Subpart V ...........................................                2 CFR part 200, subpart D,       and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400     and part 415.
                                              253.11 ..................................    OMB Circular No. A–102, Attachment K ........................                         2 CFR part 200, subpart D        and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400     and part 415.
                                              253.11 ..................................    SF–269 ............................................................................   SF–425.



                                              PART 272—REQUIREMENTS FOR                                              words indicated in the middle column
                                              PARTICIPATING STATE AGENCIES                                           from wherever they appear in the
                                                                                                                     section, and add the words indicated in
                                              §§ 272.1 and 272.2            [Amended]
                                                                                                                     the right column:
                                              ■ 47. In the table below, for each section
                                              indicated in the left column, remove the

                                                             Section                                                          Remove                                                                        Add

                                              272.1 ....................................   OMB Circular A–87 (2 CFR Part 225) ............................                       2 CFR part 200, subpart D        and   USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400     and   part 415.
                                              272.2 ....................................   OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart E        and   USDA implementing
                                                                                            http://www.whitehouse.gov/omb/circulars_default/).                                     regulations 2 CFR part 400     and   part 415.



                                              PART 273—CERTIFICATION OF                                                  Authority: 7 U.S.C. 2011–2036.                                  words indicated in the middle column
                                              ELIGIBLE HOUSEHOLDS                                                                                                                        from wherever they appear in the
                                                                                                                     § 273.7       [Amended]
                                                                                                                                                                                         section, and add the words indicated in
                                              ■ 48. The authority citation for 7 CFR                                 ■ 49. In the table below, for each section                          the right column:
                                              part 273 continues to read as follows:                                 indicated in the left column, remove the

                                                             Section                                                          Remove                                                                        Add

                                              273.7(d)(7) ...........................      SF–269 ............................................................................   SF–425 using FNS–778/FNS–778A worksheet.



                                              ■ 50. Revise § 273.7(l)(4) to read as                                  by Project Area; FNS–46, Issuance                                   PART 274—ISSUANCE AND USE OF
                                              follows:                                                               Reconciliation Report; and SF–425,                                  PROGRAM BENEFITS
                                                                                                                     using FNS–778 worksheet, Addendum
                                              § 273.7      Work provisions.                                          Financial Status Report. State agencies                             ■ 51. The authority citation for 7 CFR
                                              *      *     *    *     *                                              are also required to report                                         part 274 continues to read as follows:
                                                 (l) * * *                                                           administrative costs associated with                                    Authority: 7 U.S.C. 2011–2036.
                                                 (4) Reporting. State agencies operating                             work supplementation programs on the
                                              work supplementation and support                                       FNS–366A, Budget Projection and SF–                                 § 274.1    [Amended]
                                              programs are required to comply with                                   425 using FNS–778/FNS–778A                                          ■ 52. In the table below, for each section
                                              all FNS reporting requirements,                                        worksheet, Financial Status Report.                                 indicated in the left column, remove the
                                              including reporting the amount of                                      Special codes for work supplementation                              words indicated in the middle column
                                              benefits contributed to employers as a                                 programs will be assigned for reporting                             from wherever they appear in the
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                                              wage subsidy on the FNS–388, State                                     purposes.                                                           section, and add the words indicated in
                                              Issuance and Participation Estimates;                                  *     *     *    *     *                                            the right column:
                                              FNS–388A, Participation and Issuance




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                                                               Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations                                                                     66499

                                                             Section                                                          Remove                                                                     Add

                                              274.1 ....................................   the Office of Management and Budget (OMB) Circular                                    2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                             A–133 Compliance Supplement.                                                          ance Supplement, and USDA implementing regula-
                                                                                                                                                                                   tions 2 CFR part 400 and part 415.
                                              274.1 ....................................   General Accountability Office ..........................................              Government Accountability Office.
                                              274.1 ....................................   OMB Circular A–133 .......................................................            2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                                   ance Supplement and USDA implementing regula-
                                                                                                                                                                                   tions 2 CFR part 400 and part 415.
                                              274.1 ....................................   OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subparts D and E and USDA imple-
                                                                                            http://www.whitehouse.gov/omb/circulars_default/) in                                   menting regulations 2 CFR part 400 and part 415, as
                                                                                            determining and claiming allowable costs for the EBT                                   applicable.
                                                                                            system.



                                              § 274.1      [Amended]                                                 § 276.4       [Amended]                                             PART 277—PAYMENTS OF CERTAIN
                                              ■ 53. Amend § 274.1(i)(2)(i), by                                       ■ 55. In § 276.4(d), remove the words                               ADMINISTRATIVE COSTS OF STATE
                                              removing the last sentence.                                            ‘‘OMB Circular A–87 (available on                                   AGENCIES
                                                                                                                     OMB’s Web site at http://                                           §§ 277.5, 277.6, 277.9, 277.11, 277.13, 277.16,
                                              PART 276—STATE AGENCY                                                  www.whitehouse.gov/omb/circulars_                                   277.17, 277.18 [Amended]
                                              LIABILITIES AND FEDERAL                                                default/)’’ and add, in their place, the                            ■ 56. In the table below, for each section
                                              SANCTIONS                                                              words ‘‘2 CFR part 200, subparts D and                              indicated in the left column, remove the
                                                                                                                     E and USDA implementing regulations                                 words indicated in the middle column
                                              ■ 54. The authority citation for 7 CFR                                 2 CFR part 400 and part 415’’.                                      from wherever they appear in the
                                              part 276 continues to read as follows:                                                                                                     section, and add the words indicated in
                                                  Authority: 7 U.S.C. 2011–2036.                                                                                                         the right column:

                                                             Section                                                          Remove                                                                     Add

                                              277.5 ....................................   OMB Circular A–102, Attachment J ................................                     2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              277.6 ....................................   OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart D and USDA implementing
                                                                                             http://www.whitehouse.gov/omb/circulars_default/).                                    regulations 2 CFR part 400 and part 415.
                                              277.9 ....................................   OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart E and USDA implementing
                                                                                             http://www.whitehouse.gov/omb/circulars_default/).                                    regulations 2 CFR part 400 and part 415.
                                              277.11 ..................................    7 CFR part 3015 .............................................................         2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                                   ance Supplement and USDA implementing regula-
                                                                                                                                                                                   tions 2 CFR part 400 and part 415.
                                              277.11 ..................................    Form SF–269 ..................................................................        SF–425, using FNS–778/FNS–778A worksheet.
                                              277.11(d)(1) .........................       SF–269 report, ................................................................       SF–425 report, using FNS–778/FNS–778A worksheet.
                                              277.11(d)(5) .........................       SF–269 ............................................................................   SF–425, using FNS–778/FNS–778A worksheet.
                                              277.13 ..................................    OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart D and USDA implementing
                                                                                             http://www.whitehouse.gov/omb/circulars_default/).                                    regulations 2 CFR part 400 and part 415.
                                              277.16 ..................................    OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart D and USDA implementing
                                                                                             http://www.whitehouse.gov/omb/circulars_default/).                                    regulations 2 CFR part 400 and part 415.
                                              277.17 ..................................    OMB Circular A–102, Attachment P ...............................                      2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                                   ance Supplement and USDA implementing regula-
                                                                                                                                                                                   tions 2 CFR part 400 and part 415.
                                              277.17 ..................................    Attachment H of OMB Circular A–102 ............................                       2 CFR part 200, subpart F and Appendix XI, Compli-
                                                                                                                                                                                   ance Supplement and USDA implementing regula-
                                                                                                                                                                                   tions 2 CFR part 400 and part 415.
                                              277.17 ..................................    OMB Circular A–102, Attachment O ...............................                      2 CFR part 200, subpart D and USDA implementing
                                                                                                                                                                                   regulations 2 CFR part 400 and part 415.
                                              277.18 ..................................    OMB Circular A–87 (available on OMB’s Web site at                                     2 CFR part 200, subpart E and USDA implementing
                                                                                            http://www.whitehouse.gov/omb/circulars_default/).                                     regulations 2 CFR part 400 and part 415.



                                               Dated: August 17, 2016.
                                              Audrey Rowe,
                                              Administrator, Food and Nutrition Service.
                                              [FR Doc. 2016–21760 Filed 9–27–16; 8:45 am]
                                              BILLING CODE 3410–30–P
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                                              66500        Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations

                                              DEPARTMENT OF AGRICULTURE                               Need for Correction                                   to the Federal Power Act (FPA). The
                                                                                                         As found in the Code of Federal                    amendments are intended to improve
                                              Rural Housing Service                                                                                         the pre-application procedures and
                                                                                                      Regulations, the title to 7 CFR 1940.588
                                                                                                      contains reference to two programs (i.e.,             result in more efficient processing of
                                              Rural Business-Cooperative Service                                                                            applications.
                                                                                                      RBEG and RBOG) that no longer exist as
                                                                                                      stand-alone programs and does not                     DATES:  This final rule will become
                                              Rural Utilities Service
                                                                                                      reference their replacement program                   effective November 28, 2016. This rule
                                                                                                      (i.e., the RBDG program). This technical              contains a collection of information
                                              Farm Service Agency
                                                                                                      change is necessary to claify how the                 requirement subject to OMB approval
                                                                                                      Agency allocates funds for the RBDG                   under the Paperwork Reduction Act.
                                              7 CFR Part 1940
                                                                                                      program and to remove reference to                    DOE has submitted the collection to
                                              RIN 0570–AA30                                           programs that no longer exist.                        OMB for approval and will provide
                                                                                                      List of Subjects in 7 CFR Part 1940                   separate notice in the Federal Register
                                              Methodology and Formulas for
                                                                                                                                                            of OMB approval and the OMB control
                                              Allocation of Loan and Grant Program                      Administrative practice and                         number.
                                              Funds; Correction                                       procedure, Agriculture, Allocations,
                                                                                                      Grant programs—Housing and                            FOR FURTHER INFORMATION CONTACT:     Julie
                                              AGENCY:   Rural Housing Sevice, Rural
                                                                                                      community development, Loan                           A. Smith, Ph.D., U.S. Department of
                                              Business-Cooperative Service, Rural
                                                                                                      programs—Agriculture, Rural areas.                    Energy, Office of Electricity Delivery
                                              Utilities Service, and Farm Service
                                                                                                        Accordingly, 7 CFR part 1940 is                     and Energy Reliability, Mailstop OE–20,
                                              Agency, USDA.
                                                                                                      corrected by making the following                     Room 8G–017, 1000 Independence
                                              ACTION: Correcting amendment.                                                                                 Avenue SW., Washington, DC 20585;
                                                                                                      correcting amendment:
                                                                                                                                                            202–586–7668; or oeregs@hq.doe.gov.
                                              SUMMARY:  This document contains a
                                                                                                      PART 1940—GENERAL
                                              correction to 7 CFR part 1940, subpart                                                                        SUPPLEMENTARY INFORMATION:
                                              L, ‘‘Methodology and Formulas for                       ■ 1. The authority citation for part 1940               Acronyms and Abbreviations. A
                                              Allocation of Loan and Grant Program                    continues to read as follows:                         number of acronyms and abbreviations
                                              Funds’’ to provide reference to the Rural                                                                     are used in this preamble. While this
                                              Business Development Program, which                       Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42
                                                                                                      U.S.C. 1480.                                          may not be an exhaustive list, to ease
                                              replaced the Rural Business Enterprise                                                                        the reading of this preamble and for
                                              Grant program and the Rural Business                    ■ 2. Revise the heading for § 1940.588 to             reference purposes, the following terms,
                                              Opportunity Grant program.                              read as follows:                                      acronyms, and abbreviations are defined
                                              DATES: Effective on September 28, 2016.                                                                       as follows:
                                                                                                      § 1940.588 Business and Industry
                                              FOR FURTHER INFORMATION CONTACT:                        Guaranteed and Direct Loans, Rural                    CEQ Council on Environmental Quality
                                              Kristi Kubista-Hovis, Rural                             Business Development Grants, and                      CFR Code of Federal Regulations
                                              Development, Business Programs, U.S.                    Intermediary Relending Program.
                                                                                                                                                            DOE Department of Energy
                                              Department of Agriculture, 1400                         *      *      *      *       *                        EIS Environmental Impact Statement
                                              Independence Avenue SW., STOP 3226,                       Dated: September 9, 2016.                           E.O. Executive Order
                                              Washington, DC 20250–3225; telephone                                                                          EPAct Energy Policy Act of 2005
                                                                                                      Lisa Mensah,
                                              (202) 720–0424; email kristi.kubista-                                                                         FERC Federal Energy Regulatory
                                              hovis@wdc.usda./gov.                                    Under Secretary, Rural Development.
                                                                                                                                                               Commission
                                                                                                        Dated: September 16, 2016.
                                              SUPPLEMENTARY INFORMATION:                                                                                    FPA Federal Power Act
                                                                                                      Alexis M. Taylor,
                                                                                                                                                            FR Federal Register
                                              Background                                              Deputy Under Secretary, Farm and Foreign              IIP Integrated Interagency Pre-Application
                                                The Agricultural Act of 2014 (2014                    Agricultural Services.                                MOU Memorandum of Understanding
                                              Farm Bill) directed the Agency to                       [FR Doc. 2016–23228 Filed 9–27–16; 8:45 am]           NEPA National Environmental Policy Act
                                              combine the Rural Business Enterprise                   BILLING CODE 3410–XY–P                                OMB Office of Management and Budget
                                              Grant (RBEG) program and the Rural                                                                            PM Presidential Memorandum
                                              Business Opportunity Grant (RBOG)                                                                             PMA Federal Power Marketing
                                              program into a single new program                       DEPARTMENT OF ENERGY                                     Administration
                                              entitled the Rural Business                                                                                   RFI Request for Information
                                              Development Grant (RBDG) program.                       10 CFR Part 900                                       RRTT Rapid Response Team for
                                              The Agency issued an interim rule with                                                                           Transmission
                                                                                                      RIN 1901–AB36                                         RTO Regional Transmission Operators
                                              request for comment on March 25, 2015
                                              (80 FR 15665) establishing the RBDG                     Coordination of Federal Authorizations                I. Background
                                              program and removing the applicable                     for Electric Transmission Facilities                  II. Discussion of Final Rule and Responses to
                                              provisions associated with the RBEG                                                                                 Comment
                                              and RBOG programs. In the interim rule,                 AGENCY:  Office of Electricity Delivery                  A. General
                                              the Agency inadvertently did not update                 and Energy Reliability, Department of                    B. Applicability
                                              the title to 7 CFR 1940.588 to reflect the              Energy.                                                  C. Definitions
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                                              replacement of the RBEG and RBOG                        ACTION: Final rule.                                      D. Integrated Interagency Pre-Application
                                              programs with the new RBDG program.                                                                                 (IIP) Process
                                              To correct this oversight, the Agency is                SUMMARY:    The Department of Energy                     E. Selection of NEPA Lead Agency
                                              revising the title to 7 CFR 1940.588.                   (DOE) is amending its regulations for                    F. IIP Process Administrative File
                                              This correction has no substantive effect               the timely coordination of Federal                    III. Regulatory Review
                                              on how State allocations are made for                   authorizations for proposed interstate                   A. Executive Orders 12866 and 13563
                                              the RBDG program.                                       electric transmission facilities pursuant                B. National Environmental Policy Act



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Document Created: 2016-09-28 01:07:44
Document Modified: 2016-09-28 01:07:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective September 28, 2016.
ContactLael Lubing, Food and Nutrition Service, Financial Management, Grants Division, 3101 Park Center Drive, Room 732, Alexandria, VA or [email protected]
FR Citation81 FR 66487 
RIN Number0584-AE42
CFR Citation7 CFR 210
7 CFR 215
7 CFR 220
7 CFR 225
7 CFR 226
7 CFR 227
7 CFR 235
7 CFR 240
7 CFR 246
7 CFR 247
7 CFR 248
7 CFR 249
7 CFR 253
7 CFR 272
7 CFR 273
7 CFR 274
7 CFR 276
7 CFR 277
CFR AssociatedGrant Programs-Education; Grant Programs-Health; Grant Programs and Grant Programs-Social Programs

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