Appendix B WIC FMNP Regulations (7 CFR Part 248)

Appendix B
WIC FMNP Regulations
(7 CFR Part 248)

Food and Nutrition Service, USDA

Pt. 248

agencies receiving such information
will not further share it.
(b) Can the State or local agency disclose the identity of persons making a
complaint or allegation against another
individual participating in or administering the program? The State or local
agency must protect the confidentiality, and other rights, of any person
making allegations or complaints
against another individual participating in, or administering CSFP, except as necessary to conduct an investigation, hearing, or judicial proceeding.
§ 247.37

Subpart A—General
Sec.
248.1
248.2
248.3

General purpose and scope.
Definitions.
Administration.

Subpart B—State Agency Eligibility
248.4
248.5

State Plan.
Selection of new State agencies.

Subpart C—Recipient Eligibility
248.6 Recipient eligibility.
248.7 Nondiscrimination.

Civil rights requirements.

(a) What are the civil rights requirements that apply to CSFP? State and
local agencies must comply with the
requirements of Title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et
seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.),
section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794 et seq.), the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.), and titles II and III of the
Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.). State and local
agencies must also comply with the
Department’s regulations on nondiscrimination (parts 15, 15a, and 15b of
this title), and with the provisions of
FNS Instruction 113–2, including the
collection of racial/ethnic participation
data and public notification of nondiscrimination policy. State and local
agencies must ensure that no person
shall, on the grounds of race, color, national origin, age, sex, or disability, be
subjected to discrimination under the
program.
(b) How does an applicant or participant file a complaint of discrimination?
CSFP applicants or participants who
believe they have been discriminated
against should file a discrimination
complaint with the USDA Director, Office of Civil Rights, Room 326W, Whitten Building, 1400 Independence Avenue, SW., Washington, DC 20250–9410, or
telephone (202) 720–5964.
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PART 248—WIC FARMERS’ MARKET
NUTRITION PROGRAM (FMNP)

Subpart D—Recipient Benefits
248.8
248.9

Level of benefits and eligible foods.
Nutrition education.

Subpart E—State Agency Provisions
248.10
248.11
248.12
248.13
248.14
248.15
248.16
cy

Coupon and market management.
Financial management system.
FMNP costs.
FMNP income.
Distribution of funds.
Closeout procedures.
Administrative appeal of State agendecisions.

Subpart F—Monitoring and Review of State
Agencies
248.17
248.18
248.19

Management evaluations and reviews.
Audits.
Investigations.

Subpart G—Miscellaneous Provisions
248.20 Claims and penalties.
248.21 Procurement and property management.
248.22 Nonprocurement debarment/suspension, drug-free workplace, and lobbying
restrictions.
248.23 Records and reports.
248.24 Other provisions.
248.25 FMNP information.
248.26 OMB control number.
AUTHORITY: 42 U.S.C. 1786.
SOURCE: 59 FR 11517, Mar. 11, 1994, unless
otherwise noted.

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§ 248.1

7 CFR Ch. II (1–1–17 Edition)

Subpart A—General

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§ 248.1 General purpose and scope.
This part announces regulations
under which the Secretary of Agriculture shall carry out the WIC Farmers’ Market Nutrition Program. The
dual purposes of the FMNP are:
(a) To provide resources in the form
of fresh, nutritious, unprepared foods
(fruits and vegetables) from farmers’
markets to women, infants, and children who are nutritionally at risk and
who are participating in the Special
Supplemental Nutrition Program for
Women, Infants and Children (WIC) or
are on the waiting list for the WIC Program; and
(b) To expand the awareness, use of
and sales at farmers’ markets.
This will be accomplished through
payment of cash grants to approved
State agencies which administer the
FMNP and deliver benefits at no cost
to eligible persons. The FMNP shall be
supplementary to the food stamp program carried out under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
and to any other Federal or State program under which foods are distributed
to needy families in lieu of food
stamps.
§ 248.2 Definitions.
For the purpose of this part and all
contracts,
guidelines,
instructions,
forms and other documents related
hereto, the term:
Administrative costs means those direct and indirect costs, exclusive of
food costs, as defined in § 248.12(b),
which State agencies determine to be
necessary to support FMNP operations.
Administrative costs include, but are
not limited to, the costs of administration, start-up, training, monitoring,
auditing, the development of and accountability for coupon and market
management, nutrition education, outreach, eligibility determination, and
developing, printing, and distributing
coupons.
Compliance buy means a covert, onsite investigation in which a FMNP
representative poses as a FMNP participant and transacts one or more FMNP
food coupons.
Coupon means a coupon, voucher, or
other negotiable financial instrument

by which benefits under the FMNP are
transferred to recipients.
Days means calendar days.
Demonstration project means the
Farmers’ Market Coupon Demonstration Project authorized by section
17(m) of the Child Nutrition Act of 1966
(CNA), (42 U.S.C. 1786(m)), as amended
by section 501 of the Hunger Prevention Act of 1988 (Pub. L. 100–435), enacted September 19, 1988. Public Law
102–314 authorized the Secretary to
competitively award, subject to the
availability of funds, a 3-year grant
(which was subsequently extended for
an additional year by Public Law 102–
142) to up to 10 States that submitted
applications that were approved for the
establishment
of
demonstration
projects designed to provide WIC participants with coupons that could be
exchanged for fresh, nutritious, unprepared foods at farmers’ markets. Those
States are: Connecticut, Iowa, Maryland, Massachusetts, Michigan, New
York, Pennsylvania, Texas, Vermont,
and Washington.
Department means the U.S. Department of Agriculture.
Eligible foods means fresh, nutritious,
unprepared, locally grown fruits, vegetables and herbs for human consumption. Eligible foods may not be processed or prepared beyond their natural
state except for usual harvesting and
cleaning processes. Honey, maple
syrup, cider, nuts, seeds, eggs, meat,
cheese and seafood are examples of
foods not eligible for purposes of the
FMNP. State agencies shall consider
locally grown to mean produce grown
only within State borders but may also
define it to include areas in neighboring States adjacent to its borders.
Under no circumstances can produce
grown outside of the United States and
its territories be considered eligible
foods.
Farmer means an individual authorized to sell produce at participating
farmers’ markets and/or roadside
stands. Individuals who exclusively sell
produce grown by someone else, such
as wholesale distributors, cannot be
authorized to participate in the FMNP.
For purposes of this part, the term
‘‘farmer’’ shall mean ‘‘producer’’ as
that term is used in section 17(m)(6)(D)
of the CNA (42 U.S.C. 1786(m)(6)(D)). A

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Food and Nutrition Service, USDA

§ 248.2

participating State agency has the option to authorize individual farmers,
farmers’ markets and/or roadside
stands.
Farmers’ market means an association
of local farmers who assemble at a defined location for the purpose of selling
their produce directly to consumers.
Fiscal year means the period of 12 calendar months beginning October 1 of
any calendar year and ending September 30 of the following calendar
year.
FMNP funds means Federal grant
funds provided for the FMNP, plus the
required matching funds.
FNS means the Food and Nutrition
Service of the U.S. Department of Agriculture.
Food costs means the cost of eligible
supplemental foods.
Household has the same definition as
that of ‘‘family’’ defined in § 246.2 of
this chapter. Each such family shall
constitute a separate household for
FMNP benefit issuance purposes.
In-kind contributions means property
or services which benefit the FMNP
and which are contributed by non-Federal parties without charge to the
FMNP.
Local agency means any nonprofit entity or local government agency which
issues FMNP coupons, and provides nutrition education and/or information
on operational aspects of the FMNP to
FMNP recipients.
Matching requirement means State,
local or private funds, or program income, equal to not less than 30 percent
of the administrative FMNP cost for
the fiscal year. The Secretary may negotiate with an Indian State agency a
lower percentage of matching funds,
but not less than 10 percent of the administrative cost of the program, if the
Indian State agency demonstrates to
the Secretary financial hardship for
the affected Indian tribe, band, group,
or council. The match may be satisfied
through expenditures for similar farmers’ market programs which operate
during the same period as the FMNP.
Similar programs include other farmers’ market programs which serve lowincome women, infants and children
(who may or may not be WIC participants or on the waiting list for WIC
services), as well as other categories of

low-income recipients, such as, but not
limited to, low-income elderly persons.
Nonprofit agency means a private
agency which is exempt from income
tax under the Internal Revenue Code of
1986, as amended, (26 U.S.C. 1 et. seq.).
Nutrition education means individual
or group education sessions and the
provision of information and educational materials designed to improve
health status, achieve positive change
in dietary habits, and emphasize relationships
between
nutrition
and
health, all in keeping with the individual’s personal, cultural, and socioeconomic preferences.
OIG means the Department’s Office
of the Inspector General.
Program or FMNP means the WIC
Farmers’ Market Nutrition Program
authorized by section 17(m) of the
Child Nutrition Act of 1966 (CNA) (42
U.S.C. 1786(m)), as amended. The Special Supplemental Nutrition Program
for Women, Infants and Children (WIC)
is authorized by section 17 of the CNA,
as amended. Within section 17, section
17(m) authorizes the FMNP.
Recipient means a person chosen by
the State agency to receive FMNP benefits. Such person must be a woman,
infant over 4 months of age, or child,
who receives benefits under the WIC
Program or is on the waiting list to receive benefits under the WIC Program.
Roadside stand means a location at
which an individual farmer sells his/her
produce directly to consumers. This is
in contrast to a group or association of
farmers selling their produce at a
farmers’ market.
SFPD means the Supplemental Food
Programs Division of the Food and Nutrition Service of the U.S. Department
of Agriculture.
Similar programs means other farmers’
market projects or programs which
serve low-income women, infants and
children, or other categories of recipients, such as, but not limited to, elderly persons.
State means any of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Northern Marianas Islands.
State agency means the agriculture
department, the health department or
any other agency approved by the chief

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§ 248.3

7 CFR Ch. II (1–1–17 Edition)

executive officer of the State; an Indian tribe, band or group recognized by
the Department of the Interior; an
intertribal council or group which is an
authorized representative of Indian
tribes, bands or groups recognized by
the Department of the Interior and
which has an ongoing relationship with
such tribes, bands or groups for other
purposes and has contracted with them
to administer the Program; or the appropriate area office of the Indian
Health Service (IHS), an agency of the
Department of Health and Human
Services.
State Plan means a plan of FMNP operation and administration that describes the manner in which the State
agency intends to implement, operate
and administer all aspects of the
FMNP within its jurisdiction in accordance with § 248.4.
Total FMNP funds means the sum of
the Federal funds provided to the State
agency and non-Federal contributions
provided by the State agency for
FMNP purposes.
WIC means the Special Supplemental
Nutrition Program for Women, Infants
and Children authorized by section 17
of the Child Nutrition Act of 1966, as
amended (42 U.S.C. 1771 et. seq.).

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[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49745, Sept. 27, 1995; 64 FR 48076, Sept. 2,
1999; 73 FR 65249, Nov. 3, 2008]

§ 248.3 Administration.
(a) Delegation to FNS. Within the Department, FNS shall act on behalf of
the Department in the administration
of the FMNP. Within FNS, SFPD and
the FNS Regional Offices are responsible for FMNP administration. FNS
shall provide assistance to State agencies and evaluate all levels of FMNP
operations to ensure that the goals of
the FMNP are achieved in the most effective and efficient manner possible.
(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 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.
(c) Agreement and State Plan. (1) Each
State agency desiring to administer
the FMNP shall annually submit a
State Plan and enter into a written
agreement with the Department for administration of the Program in the jurisdiction of the State agency in accordance with the provisions of this
part.
(2) The written agreement must include a statement that supports full
use of Federal funds provided to State
agencies for the administration of the
FMNP, and excludes such funds from
State budget restrictions or limitations, including hiring freezes, work
furloughs, and travel restrictions.
(d) State agency ineligibility. A State
agency shall be ineligible to participate in the FMNP if State or local
sales tax is collected on Program food
purchases in the area in which it administers the Program, except that, if
sales tax is collected on Program food
purchases by sovereign Indian entities
which are not State agencies, the State
agency shall remain eligible so long as
any farmers’ markets collecting such
tax are disqualified.
(e) Coordination with WIC agency. The
Chief Executive Officer of the State
shall ensure coordination between the
designated administering State agency
and the WIC State agency, if different,

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Food and Nutrition Service, USDA

§ 248.4

by ensuring that the two agencies
enter into a written agreement. Such
coordination between agencies is necessary for the successful operation of
the FMNP, because WIC participants or
persons on the waiting list for WIC
services are the only persons eligible to
receive Federal benefits under the
FMNP. The written agreement shall
delineate the responsibilities of each
agency, describe any compensation for
services, and shall be signed by the designated representative of each agency.
This agreement shall be submitted
each year along with the State Plan.
(f) State staffing standards. Each State
agency shall ensure that sufficient
staff is available to efficiently and effectively administer the FMNP. This
shall include, but not be limited to,
sufficient staff to provide nutrition
education in coordination with the WIC
Program, coupon and market management, fiscal reporting, monitoring, and
training. The State agency shall provide an outline of administrative staff
and job descriptions for staff whose salaries will be paid from program funds
in their State Plans.
[59 FR 11517, Mar. 11, 1994, as amended at 76
FR 37983, June 29, 2011; 81 FR 66496, Sept. 28,
2016]

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Subpart B—State Agency Eligibility
§ 248.4 State Plan.
(a) Requirements. By November 15 of
each year, each applying or participating State agency shall submit to
FNS for approval a State Plan for the
following year as a prerequisite to receiving funds under this section. The
State Plan shall be signed by the State
designated official responsible for ensuring that the Program is operated in
accordance with the State Plan. FNS
will provide written approval or denial
of a completed State Plan or amendment within 30 days. Portions of the
State Plan which do not change annually need not be resubmitted. However,
the State agency shall provide the title
of the sections that remain unchanged,
as well as the year of the last Plan in
which the sections were submitted. At
a minimum, the Plan must address the
following areas in sufficient detail to
demonstrate the State agency’s ability
to meet the requirements of the FMNP:

(1) A copy of the agreement between
the designated administering State
agency and the WIC State agency, if
different, for services such as nutrition
education, and documentation of coordinated efforts as required in
§ 248.3(e), as well as copies of agreements with agencies other than the
WIC State agency.
(2) Estimated number of recipients
for the fiscal year, and proposed
months of operation.
(3) Estimated cost of the FMNP, including a minimum amount necessary
to operate the FMNP.
(4) Description of how the Program
will achieve its dual purposes of providing a nutritional benefit to WIC (or
waiting list) participants and expanding the awareness and use of farmers’
markets.
(5) Outline of administrative staff
and job descriptions.
(6) Detailed description of the recordkeeping system including, but not limited to, the system for maintaining
records pertaining to financial operations, coupon issuance and redemption, and FMNP participation.
(7) Detailed description of the financial management system, including,
but not limited to documentation of
how the State will meet the matching
requirement and procedures for obligating funds.
(8) Detailed description of the service
area including:
(i) The number and addresses of participating markets, roadside stands
and area WIC clinics including a map
outlining the service area and proximity of markets/roadside stands to
clinics; and
(ii) Estimated number of WIC participants and persons on the WIC waiting
list that will receive FMNP coupons.
(9)
Description
of
the
coupon
issuance system including:
(i) How the State agency will target
areas with highest concentrations of
eligible persons and greatest access to
farmers’ markets within the broadest
possible geographic area;
(ii) Annual benefit amount per recipient;
(iii) Method for instructing recipients on the proper use of FMNP coupons and the purpose of the FMNP; and

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§ 248.4

7 CFR Ch. II (1–1–17 Edition)

(iv) Method for ensuring that FMNP
coupons are only issued to eligible recipients.
(10) Detailed description of the coupon and farmers’ market management
system including:
(i) Criteria for authorizing farmers’
markets and/or roadside stands;
(ii) Procedures for training farmers
and market managers, at authorization, and annually thereafter;
(iii) Procedures for monitoring farmers, farmers’ markets and/or roadside
stands;
(iv) Description of system for identifying high risk farmers, farmers’ markets and/or roadside stands and procedures for sanctioning farmers, farmers’
markets and/or roadside stands;
(v) Facsimile of the FMNP coupon;
(vi) Identification of the fresh, nutritious, unprepared fruits, vegetables,
and herbs which are eligible for purchase under the Program;
(vii) Description of FMNP coupon replacement policy;
(viii) Procedures for handling recipient and farmer/farmers’ market complaints.
(11) Detailed description of the FMNP
coupon redemption process including:
(i) Procedures for ensuring the secure
transportation and storage of FMNP
coupons;
(ii) System for identifying and reconciling FMNP coupons;
(iii) Timeframes for FMNP coupon
redemption by recipients; submission
for payment by markets, and payment
by the State agency;
(12) System for ensuring that FMNP
coupons are redeemed only by authorized farmers, farmers’ markets and/or
roadside stands and only for eligible
foods.
(13) System for identifying FMNP
coupons which are redeemed or submitted for payment outside valid dates
or by unauthorized farmers, farmers’
markets and/or roadside stands.
(14) A copy of the written agreement
to be used between the State agency
and authorized farmers, farmers’ markets and/or roadside stands. In those
States which authorize farmers’ markets, but not individual farmers, this
agreement shall specify in detail the
role of and procedures to be used by
farmers’ markets for monitoring and

sanctioning farmers, and the appropriate procedures to be used by a farmer to appeal a sanction or disqualification imposed by a farmers’ market.
(15) If available, information on the
change in consumption of fresh fruits
and vegetables by recipients. This information shall be submitted as an addendum to the State Plan and shall be
submitted at such a date specified by
the Secretary.
(16) If available, information on the
effects of the program on farmers’ markets. This information shall be submitted as an addendum to the State
Plan and shall be submitted at such a
date specified by the Secretary.
(17) A description of the procedures
the State agency will use to comply
with the civil rights requirements described in § 248.7(a), including the processing of discrimination complaints.
(18) State agencies which have not
previously participated in the FMNP,
shall provide the following additional
information:
(i) A statement assuring that if the
State agency receives Federal funds, as
specified under § 248.14 to operate the
FMNP, and applies those funds to similar programs operated in the previous
fiscal year with State or local funds,
the amount of State and local funds
that were available to similar programs in the fiscal year preceding the
first year of operation shall not be reduced. The State agency shall include
data in the State Plan showing that it
did not reduce the amount of State and
local funds available to the similar
program in the preceding fiscal year.
(ii) A capability statement which includes a summary description of any
prior experience with farmers’ market
projects or programs, including information and data describing the attributes of such projects or programs.
(19) For States making expansion requests, documentation which demonstrates:
(i) The need for an increase in funding;
(ii) That the use of the increased
funding will be consistent with serving
WIC participants, or persons on a waiting list for WIC benefits, by expanding
benefits to more persons, by enhancing
current benefits, or a combination of

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Food and Nutrition Service, USDA

§ 248.7

both, and expanding the awareness and
use of farmers’ markets;
(iii) The ability to satisfactorily operate the existing FMNP;
(iv) The management capabilities of
the State agency to expand; and
(v) Whether, in the case of a State
agency that intends to use the funding
to increase the value of the Federal
share of the benefits received by a recipient, the funding provided will increase the rate of coupon redemption.
(20) For those State agencies requesting the extra 2 percent administrative
rate for market development or technical assistance to promote such development in disadvantaged areas or remote rural areas, an explanation of
their justification and plans for the use
of such funds.
(b) Amendments. At any time after approval, the State agency may amend
the State Plan to reflect changes. The
State agency shall submit the amendments to FNS for approval. The amendments shall be signed by the State designated official responsible for ensuring that the FMNP is operated in accordance with the State Plan.
(c) Retention of copy. A copy of the
approved State Plan shall be kept on
file at the State agency for public inspection.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49746, Sept. 27, 1995; 64 FR 48076, Sept. 2,
1999; 73 FR 65249, Nov. 3, 2008]

§ 248.5

Selection of new State agencies.

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In selecting new State agencies, the
Department will use objective criteria
to rank and approve State plans submitted in accordance with § 248.4. In
making this ranking, the Department
will consider the amount of funds necessary to successfully operate the
FMNP in the State compared with
other States and with the total amount
of funds available to the FMNP. Approval of a State Plan does not equate
to an obligation on the part of the Department to fund the FMNP within
that State agency.
[64 FR 48076, Sept. 2, 1999]

Subpart C—Recipient Eligibility
§ 248.6

Recipient eligibility.

(a) Eligibility for certification. Individuals who are eligible to receive Federal
benefits under the FMNP are those, excluding infants 4 months of age or
younger, who are currently receiving
benefits under WIC or who are on the
waiting list to receive benefits from
WIC.
(b) Limitations on certification. If necessary to limit the number of recipients, State agencies may impose additional eligibility requirements, such as
limiting participant certification to
certain geographic areas, or to high
priority WIC participants such as pregnant and breastfeeding women. States
may also preclude groups of low priority persons, such as persons on the
waiting list for WIC. Each State agency must specifically identify these limitations on certification in its State
Plan.
(c) Recipient or household benefit allocation. On a Statewide basis, State
agencies shall elect to allocate and
issue benefits either to recipients or
households. A State agency allocating
benefits on a household basis shall not
issue more benefits to a household than
it otherwise would if benefits were allocated to individual recipients within
the household. For those State agencies issuing FMNP benefits on a household basis, each family as defined in
§ 246.2 of this chapter shall constitute a
separate household. Foods provided, regardless of method of issuance, are intended for the sole benefit of FMNP recipients and are not intended to be
shared with other non-participating
household members. If a State agency
issues benefits on a household basis,
data concerning number and type of recipients must still be provided as required by § 248.23(b). Recipients shall
receive FMNP benefits free of charge.
§ 248.7

Nondiscrimination.

(a) Civil rights requirements. The State
agency shall comply with the requirements of title VI of the Civil Rights
Act of 1964, title IX of the Education
Amendments of 1972, section 504 of the
Rehabilitation Act of 1973, the Age Discrimination Act of 1975, Department of

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§ 248.8

7 CFR Ch. II (1–1–17 Edition)

Agriculture
regulations
on
nondiscrimination (7 CFR parts 15, 15a and
15b), and applicable FNS Instructions
to ensure that no person shall, on the
grounds of race, color, national origin,
age, sex or handicap, be excluded from
participation, be denied benefits, or be
otherwise subjected to discrimination,
under the FMNP. Because racial and
ethnic participation data (as required
by title VI of the Civil Rights Act of
1964) are collected at the time women,
infants, and children are certified for
participation in the WIC Program, the
Department has determined that the
WIC data collection effort is sufficient
to fulfill the racial/ethnic data collection requirement for the FMNP. Therefore, no additional data collection is
required. Compliance with title VI of
the Civil Rights Act of 1964, Title IX of
the Education Amendments of 1972,
section 504 of the Rehabilitation Act of
1973, the Age Discrimination Act of
1975, and regulations and instructions
issued thereunder shall include, but
not be limited to:
(1) Notification to the public of the
nondiscrimination policy and complaint rights of recipients and potentially eligible persons, which may be
satisfied through the Department’s required nondiscrimination statement on
brochures and publications;
(2) Review and monitoring activity to
ensure FMNP compliance with the nondiscrimination laws and regulations;
(3) Establishment of grievance procedures for handling recipient complaints
based on sex and handicap.
(b) Complaints. Persons seeking to file
discrimination complaints may file
them either with the Secretary of Agriculture, or the Director, USDA, Office
of Adjudication and Compliance, Room
326–W, Whitten Building, 14th and Independence Avenue, SW., Washington, DC
20250–9410 (or call (800) 795–3272 (voice)
or (202) 720–6382 (TTY)), or with the office established by the State agency to
handle discrimination grievances or
complaints. All complaints received by
State agencies which allege discrimination based on race, color, national
origin, or age shall be referred to the
Secretary of Agriculture or the Director of the Office of Equal Opportunity,
USDA. A State agency may process
complaints which allege discrimination

based on sex or handicap if grievance
procedures are in place.
[59 FR 11517, Mar. 11, 1994, as amended at 73
FR 65249, Nov. 3, 2008]

Subpart D—Recipient Benefits
§ 248.8 Level of benefits and eligible
foods.
(a) General. State agencies shall identify in the State Plan the fresh, nutritious, unprepared, locally grown fruits,
vegetables and herbs which are eligible
for purchase under the FMNP. Ineligible foods for the purpose of the
FMNP include, but are not limited to:
honey, maple syrup, cider, nuts and
seeds, eggs, cheese, meat and seafood.
Locally grown shall mean produce
grown only within a State’s borders
but may be defined to include border
areas in adjacent States. Under no circumstances can produce grown outside
of the United States and its territories
be considered eligible foods.
(b) The value of the Federal benefits received. The value of the Federal FMNP
benefit received by each recipient, or
by each family within a household in
those States which elect to issue benefits on a household basis under § 248.6(c)
may not be less than $10 per year nor
more than $30 per year.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49746, Sept. 27, 1995; 73 FR 65250, Nov. 3,
2008]

§ 248.9

Nutrition education.

(a) Goals. Nutrition education shall
emphasize the relationship of proper
nutrition to the total concept of good
health, including the importance of
consuming fresh fruits and vegetables.
(b) Requirement. The State agency
shall integrate nutrition education
into FMNP operations and may satisfy
nutrition
education
requirements
through coordination with other agencies within the State. Such other agencies may include the WIC Program
which routinely offers nutrition education to participants and which may
wish to use the opportunity of the
FMNP to reinforce nutrition messages.
State agencies wishing to coordinate
nutrition education with WIC shall

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Food and Nutrition Service, USDA

§ 248.10

enter into a written cooperative agreement with WIC agencies to offer nutrition education relevant to the use and
nutritional value of foods available to
FMNP recipients. In cases where relevant WIC nutrition education sessions
are used to meet this requirement, reimbursement to the WIC local agency
shall not be permitted. In cases where
FMNP recipients are not receiving relevant nutrition education from the
WIC Program, the State agency shall
arrange alternative methods for the
provision of such nutrition education
which is an allowable cost under the
FMNP.

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Subpart E—State Agency
Provisions
§ 248.10 Coupon and market management.
(a) General. This section sets forth
State agency responsibilities regarding
the authorization of farmers, farmers’
markets, and roadside stands. The
State agency is responsible for the fiscal management of, and accountability
for, FMNP-related activities for farmers, farmers’ markets and roadside
stands. Each State agency may decide
whether to authorize farmers individually, farmers’ markets, roadside
stands, or all of the above. All contracts or agreements entered into by
the State agency for the management
or operation of farmers, farmers’ markets and roadside stands shall conform
with the requirements of 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 415.
(1) Only farmers, farmers’ markets
and roadside stands authorized by the
State agency may redeem FMNP coupons. Only farmers authorized by the
State agency or that have a valid
agreement with an authorized farmers’
market may redeem coupons.
(2) The State agency shall establish
criteria for the authorization of individual farmers, farmers’ markets and
roadside stands. Any authorized farmer, farmers’ market and roadside stand
must agree to sell recipients only those
foods identified as eligible by the State
agency, in exchange for FMNP cou-

pons. Individuals who exclusively sell
produce grown by someone else, such
as wholesale distributors, cannot be
authorized to participate in the FMNP,
except individuals employed by a farmer otherwise qualified under these regulations, or individuals hired by a nonprofit organization to sell produce at
farmers’ markets or roadside stands on
behalf of local farmers.
(3) The State agency shall ensure
that an appropriate number of farmers,
farmers’ markets and/or roadside
stands are authorized for adequate recipient access in the area(s) proposed
to be served and for effective management of the farmers, farmers’ markets
and/or roadside stands by the State
agency. The State agency may establish criteria to limit the number of authorized farmers, farmers’ markets
and/or roadside stands.
(4) The State agency shall ensure
that face-to-face training is conducted
prior to start up of the first year of
FMNP participation of a farmers’ market and individual farmer. The face-toface training shall include at a minimum those items listed in paragraph
(d) of this section.
(5) Authorized farmers shall display a
sign stating that they are authorized
to redeem FMNP coupons.
(6) Authorized farmers, farmers’ markets and roadside stands shall comply
with the requirements of Title VI of
the Civil Rights Act of 1964, title IX of
the Education Amendments of 1972,
section 504 of the Rehabilitation Act of
1973, the Age Discrimination Act of
1975, Department of Agriculture regulations on non-discrimination (7 CFR
parts 15, 15a and 15b), and FNS Instructions as outlined in § 248.7.
(7) The State agency shall ensure
that there is no conflict of interest between the State or local agency and
any participating farmer, farmers’
market and roadside stand.
(b) Farmers’ market agreements. The
State agency shall ensure that all participating farmers’ markets enter into
written agreements with the State
agency. The agreement shall be signed
by a representative who has legal authority to obligate the farmer, farmers’
market and/or roadside stand. The
agreement shall be signed by a representative who has legal authority to

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§ 248.10

7 CFR Ch. II (1–1–17 Edition)

obligate the farmers/farmers’ market.
Agreements shall include a description
of sanctions for noncompliance with
FMNP requirements and shall contain
at a minimum, the following specifications, although the State agency may
determine the exact wording to be
used:
(1) The farmer, farmers’ market and
roadside stand shall:
(i) Provide such information as the
State agency may require for its periodic reports to FNS;
(ii) Assure that FMNP coupons are
redeemed only for eligible foods;
(iii) Provide eligible foods at the current price or less than the current
price charged to other customers;
(iv) Accept FMNP coupons within the
dates of their validity and submit such
coupons for payment within the allowable time period established by the
State agency;
(v) In accordance with a procedure
established by the State agency, mark
each transacted coupon with a farmer
identifier. In those cases where the
agreement is between the State agency
and the farmer, each transacted FMNP
coupon shall contain a farmer identifier and shall be batched for reimbursement under that identifier. In those
cases where the agreement is between
the State agency and the farmers’ market, each transacted FMNP coupon
shall contain a farmer identifier and be
batched for reimbursement under a
farmers’ market identifier.
(vi) Accept training on FMNP procedures and provide training to farmers
and any employees with FMNP responsibilities on such procedures;
(vii) Agree to be monitored for compliance with FMNP requirements, including both overt and covert monitoring;
(viii) Be accountable for actions of
farmers or employees in the provision
of foods and related activities;
(ix) Pay the State agency for any
coupons transacted in violation of this
agreement;
(x) Offer FMNP recipients the same
courtesies as other customers;
(xi) Comply with the nondiscrimination provisions of USDA regulations as
provided in § 248.7; and
(xii) Notify the State agency if any
farmer, farmers’ market and/or road-

side stand ceases operation prior to the
end of the authorization period.
(2) The farmer, farmers’ market and
roadside stand shall not:
(i) Collect sales tax on FMNP coupon
purchases;
(ii) Seek restitution from FMNP recipients for coupons not paid by the
State agency;
(iii) Issue cash change for purchases
that are in an amount less than the
value of the FMNP coupon(s).
(3) Neither the State agency nor the
farmer, farmers’ market nor a roadside
stand has an obligation to renew the
agreement. Either the State agency or
the farmer, farmers’ market or a roadside stand may terminate the agreement for cause after providing advance
written notification.
(4) The State agency may deny payment to the farmer, farmers’ market or
roadside stand for improperly redeemed FMNP coupons and may demand refunds for payments already
made on improperly redeemed coupons.
(5) The State agency may disqualify
a farmer, farmers’ market or roadside
stand for FMNP abuse. The farmer,
farmers’ market and/or roadside stand
has the right to appeal a denial of an
application to participate, a disqualification, or a FMNP sanction by the
State agency. Expiration of a contract
or agreement with a farmer, farmers’
market or roadside stand, and claims
actions under § 248.20, are not appealable.
(6) A farmer, farmers’ market or a
roadside stand which commits fraud or
engages in other illegal activity is liable to prosecution under applicable
Federal, State or local laws.
(7) Agreements may not exceed 3
years.
(c) Farmer agreements for State agencies which do not authorize farmers.
Those State agencies which authorize
farmers’ markets but not individual
farmers shall require authorized farmers’ markets to enter into a written
agreement with each farmer within the
market that is participating in FMNP.
The State agency shall set forth the required terms for the agreement and
provide a sample agreement which may
be used.
(d) Annual training for farmers/farmers’
market managers. State agencies shall

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Food and Nutrition Service, USDA

§ 248.10

conduct annual training for farmers/
farmers’ market managers participating in the FMNP. The State agency
shall conduct a face-to-face training
for all farmers and farmers’ market
managers who have never previously
participated in the program prior to
their commencing participation in the
FMNP. After a farmer/farmers’ market
manager’s first year of FMNP operation, State agencies have discretion in
determining the method used for annual training purposes. At a minimum,
annual training shall include instruction emphasizing:
(1) Eligible food choices;
(2) Proper FMNP coupon redemption
procedures, including deadlines for submission of coupons for payment;
(3) Equitable treatment of FMNP recipients, including the availability of
produce to FMNP recipients that is of
the same quality and cost as that sold
to other customers;
(4) Civil rights compliance and guidelines;
(5) Guidelines for storing FMNP coupons safely; and
(6) Guidelines for cancelling FMNP
coupons, such as punching holes or rubber stamping.
(e) Monitoring and review of farmers,
farmers’ markets, roadside stands and
local agencies. The State agency shall
be responsible for the monitoring of
farmers, farmers’ markets, roadside
stands and local agencies within its jurisdiction. This shall include developing a system for identifying high
risk farmers, farmers’ markets, and
roadside stands and ensuring on-site
monitoring, conducting further investigation, and sanctioning of such farmers, farmers’ markets, or roadside
stands as appropriate.
(1) Where coupon reimbursement responsibilities are delegated to farmers’
market managers, farmers’ market associations, or nonprofit organizations,
the State agency may establish bonding requirements for these entities.
Costs of such bonding are not reimbursable administrative expenses.
(2) Each State agency shall rank participating farmers, farmers’ markets
and roadside stands by risk factors,
and shall conduct annual, on-site monitoring of at least 10 percent of farmers,
10 percent of farmers’ markets and 10

percent of roadside stands which shall
include those farmers, farmers’ markets and roadside stands identified as
being the highest risk.Mandatory highrisk indicators are a proportionately
high volume of FMNP coupons redeemed by a farmer as compared to
other farmers within the farmers’ market and within the State, recipient
complaints, and farmers and farmers’
markets in their first year of FMNP
operation. States are encouraged to
formally establish other high risk indicators for identifying potential problems. If additional high risk indicators
are established, they shall be set forth
in the farmers/farmers’ market agreement and in the State Plan. If application of the high-risk indicators results
in fewer than 10 percent of farmers and
farmers’ markets as high-risk, the
State agency shall randomly select additional farmers and farmers’ markets
to be monitored in order to meet the 10
percent minimum. The high-risk indicators listed above generally apply to a
State agency already participating in
the FMNP. A State agency participating in the FMNP for the first time
shall, in lieu of applying the high-risk
indicators, randomly select 10 percent
of its participating farmers, 10 percent
of its participating farmers’ markets,
and 10 percent of its participating roadside stands for monitoring visits.
(3) The following shall be documented for all on-site farmers, farmers’
markets, and roadside stands monitoring visits. At a minimum, documentation must include the names of
the farmer, farmers’ market or roadside stand and the reviewer; date of review; nature of problem(s) detected or
the observation that the farmer, farmers’ market or roadside stand appears
to be in compliance with FMNP requirements; a record of interviews with
recipients, market managers and/or
farmers; and the signature of the reviewer. The State agency shall do so
after a reasonable delay when necessary to protect the identity of the reviewer(s) or the integrity of the investigation. After the farmer/farmers’
market has been informed of any deficiencies detected by the monitoring
visit, and instances where the farmer/
farmers’ market will be permitted to
continue participation, the farmer/

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§ 248.10

7 CFR Ch. II (1–1–17 Edition)

farmers’ market shall provide plans as
to how the deficiencies will be corrected.
(4) At least every 2 years, the State
agency shall review all local agencies
within its jurisdiction. WIC State agency reviews of WIC local agencies, which
include reviews of FMNP practices,
may contribute to meeting the requirement that all local agencies be reviewed once every 2 years.
(f) Control of FMNP coupons. (1) The
State agency shall control and provide
accountability for the receipt and
issuance of FMNP coupons.
(2) The State agency shall ensure
that there is secure transportation and
storage of unissued FMNP coupons.
(3) The State agency shall design and
implement a system of review of FMNP
coupons to detect errors. At a minimum, the errors the system must detect are a missing recipient signature,
a missing farmer and/or market identification, and redemption by a farmer
outside of the valid date. The State
agency shall implement procedures to
reduce the number of errors in transactions, where possible.
(g) Payment to farmers/farmers’ markets. The State agency shall ensure
that farmers/ farmers’ markets are
promptly paid for food costs.
(h) Reconciliation of FMNP coupons.
The State agency shall identify the disposition of all FMNP coupons as validly redeemed, lost or stolen, expired,
or not matching issuance records. Validly redeemed FMNP coupons are those
that are issued to a valid recipient and
redeemed by an authorized farmers/
farmers’ market within valid dates.
FMNP coupons that were redeemed but
cannot be traced to a valid recipient or
authorized
farmer/farmers’
market
shall be subject to claims action in accordance with § 248.20. (1) If the State
agency elects to replace lost, stolen or
damaged FMNP coupons, it must describe its system for doing so in the
State Plan.
(2) The State agency shall use uniform FMNP coupons within its jurisdiction.
(3) FMNP coupons must include, at a
minimum, the following information:
(i) The last date by which the recipient may use the coupon. This date

shall be no later than November 30 of
each year.
(ii) A date by which the farmer or
farmers’ market must submit the coupon for payment. When establishing
this date, State agencies shall take
into consideration the date financial
statements are due to the FNS, and
allow time for the corresponding coupon reconciliation that must be done
by the State agency prior to submission of financial statements. Currently,
financial statements are due to FNS by
January 30.
(iii) A unique and sequential serial
number.
(iv) A denomination (dollar amount).
(v) A farmer identifier for the redeeming farmer when agreements are
between the State agency and the
farmer.
(vi) In those instances where State
agencies have agreements with farmers’ markets, there must be a farmer
identifier on each coupon and a market
identifier on the cover of coupons
which are batched by the market manager for reimbursement.
(i) Instructions to recipients. Each recipient shall receive instructions on
the proper use and redemption of the
FMNP coupons, including, but not limited to:
(1) A list of names and addresses of
authorized farmers, farmers’ markets
and roadside stands at which FMNP
coupons may be redeemed.
(2) A description of eligible foods and
the prohibition against cash change.
(3) An explanation of their right to
complain about improper farmer/farmers’ market practices with regard to
FMNP responsibilities and the process
for doing so.
(j) Recipients and farmer/farmers’ market complaints. The State agency shall
have procedures which document the
handling of complaints by recipients
and farmers/farmers’ markets. Complaints of civil rights discrimination
shall be handled in accordance with
§ 248.7(b).
(k) Recipients and farmer/farmers’ market sanctions. The State agency shall
establish policies which determine the
type and level of sanctions to be applied against recipients and farmers/

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Food and Nutrition Service, USDA

§ 248.12

farmers’ markets, based upon the severity and nature of the FMNP violations observed, and such other factors
as the State agency determines appropriate, such as whether repeated offenses have occurred over a period of
time. Farmers/farmers’ markets may
be sanctioned, disqualified, or both,
when appropriate. Sanctions may include fines for improper FMNP coupon
redemption procedures and the penalties outlined in § 248.20, in case of deliberate fraud. In those instances where
compliance purchases are conducted,
the results of covert compliance purchases can be a basis for farmer/farmers’ market sanctions. A farmer/farmers’ market committing fraud or other
unlawful activities is liable to prosecution under applicable Federal, State or
local laws. State agency policies shall
ensure that a farmer that is disqualified from the FMNP at one market or
roadside stand shall not participate in
the FMNP at any other farmers’ market or roadside stand in the State’s jurisdiction during the disqualification
period.

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[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49746, Sept. 27, 1995; 73 FR 65250, Nov. 3,
2008; 81 FR 66496, Sept. 28, 2016]

§ 248.11 Financial management system.
(a) Disclosure of expenditures. The
State agency shall maintain a financial management system which provides accurate, current and complete
disclosure of the financial status of the
FMNP. This shall include an accounting for all property and other assets
and all FMNP funds received and expended each fiscal year.
(b) Internal controls. The State agency
shall maintain effective controls over
and accountability for all FMNP funds.
The State agency must have effective
internal controls to ensure that expenditures financed with FMNP funds
are authorized and properly chargeable
to the FMNP.
(c) Record of expenditures. The State
agency shall maintain records which
adequately identify the source and use
of funds expended for FMNP activities.
These records shall contain, but are
not limited to, information pertaining
to authorization, receipt of funds, obligations, unobligated balances, assets,
liabilities, outlays, and income.

(d) Payment of costs. The State agency
shall implement procedures which ensure prompt and accurate payment of
allowable costs, and ensure the allowability and allocability of costs in accordance with the cost principles and
standard provisions of this part, 2 CFR
part 200, subparts D and E and USDA
implementing regulations 2 CFR part
400 and part 415, and FNS guidelines
and Instructions.
(e) Identification of obligated funds.
The State agency shall implement procedures which accurately identify obligated FMNP funds at the time the obligations are made.
(f) Resolution of audit findings. The
State agency shall implement procedures which ensure timely and appropriate resolution of claims and other
matters resulting from audit findings
and recommendations.
(g) Reconciliation of food instruments.
The State agency shall reconcile
FMNP coupons in accordance with
§ 248.10(h).
(h) Transfer of cash. The State agency
shall establish the timing and amounts
of its cash draws against its Letter of
Credit in accordance with 31 CFR part
205.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49747, Sept. 27, 1995; 81 FR 66496, Sept. 28,
2016]

§ 248.12

FMNP costs.

(a) General—(1) Composition of allowable costs. In general, a cost item will
be deemed allowable if it is reasonable
and necessary for FMNP purposes and
otherwise satisfies allowability criteria
set forth in 2 CFR part 200, subpart E
and USDA implementing regulations 2
CFR part 400 and part 415 and this part.
FMNP purposes include the administration and operation of the FMNP.
Program costs supported by State
matching contributions must meet the
same criteria for allowability as costs
supported by Federal funds. Allowable
FMNP costs may be classified as follows:
(i) Food costs and administrative costs.
Food costs are the costs of food benefits provided to FMNP recipients. Administrative costs are the costs associated with providing FMNP benefits and

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§ 248.13

7 CFR Ch. II (1–1–17 Edition)

services to recipients and generally administering the FMNP. Specific examples of allowable administrative costs
are listed in paragraph (b) of this section. Except as provided in § 248.14(g) of
this part, a State agency’s administrative costs under the FMNP may not exceed 17 percent of its total FMNP
costs. Any costs incurred for food and/
or administration above the Federal
grant level will be the State agency’s
responsibility.
(ii) Market development or technical assistance costs. Market development or
technical assistance costs are those
costs under § 248.14(h) incurred to promote the development of farmers’ markets in socially or economically disadvantaged areas, or remote rural
areas, where individuals eligible for
participation in the program have limited access to locally grown fruits and
vegetables. Subject to a determination
by the Secretary under § 248.14(h), a
State agency may, during any fiscal
year, use not more than 2 percent of
total program funds for such market
development or technical assistance.
(iii) Direct and indirect costs. Direct
costs are food and administrative costs
incurred specifically for the FMNP. Indirect costs are administrative costs
that benefit multiple programs or activities, and cannot be identified to
any one without effort disproportionate to the results achieved. In accordance with the provisions of 2 CFR
part 200, subpart E and USDA implementing regulations 2 CFR part 400 and
part 415, a claim for reimbursement of
indirect costs shall be supported by an
approved allocation plan for the determination of such costs. An indirect
cost rate developed through such an allocation plan may not be applied to a
base that includes food costs.
(2) Costs allowable with prior approval.
A State or local agency must obtain
prior approval in accordance with 2
CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400
and part 415 before charging to the
FMNP any capital expenditures and
other cost items designated by 2 CFR
part 200, subpart E and USDA implementing regulations 2 CFR part 400 and
part 415 as requiring such approval.
(3) Unallowable costs. Costs that are
not reasonable and necessary for

FMNP purposes, or that do not otherwise satisfy the cost principles of 2
CFR part 200, subpart E and USDA implementing regulations 2 CFR part 400
and part 415, are unallowable. Notwithstanding any other provision of part
3016 or this part, the cost of constructing or operating a farmers’ market is unallowable. Unallowable costs
may never be claimed for Federal reimbursement or counted toward the State
matching requirement.
(b) Specified allowable administrative
costs. Allowable administrative costs
include the following:
(1) The costs associated with the provision of nutrition education which
meets the requirements of § 248.9 of this
part.
(2) The costs of FMNP coupon
issuance, or recipient education covering proper coupon redemption procedures.
(3) The cost of outreach services.
(4) The costs associated with the food
delivery process, such as printing
FMNP coupons, processing redeemed
coupons, and training market managers on the food delivery system.
(5) The cost of monitoring and reviewing Program operations.
(6) The cost of FMNP training.
(7) The cost of required reporting and
recordkeeping.
(8) The cost of determining which
local WIC sites will be utilized.
(9) The cost of recruiting and authorizing farmers/farmers’ markets to participate in the FMNP.
(10) The cost of preparing contracts
for farmers/farmers’ markets and local
WIC providers.
(11) The cost of developing a data
processing system for redemption and
reconciliation of FMNP coupons.
(12) The cost of designing program
training and informational materials.
(13) The cost of coordinating FMNP
implementation responsibilities between designated administering agencies.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49747, Sept. 27, 1995; 81 FR 66496, Sept. 28,
2016]

§ 248.13 FMNP income.
Program income means gross income
the State agency earns from grant supported activities. It includes fees for

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Food and Nutrition Service, USDA

§ 248.14

services performed and receipts from
the use or rental of real or personal
property acquired with Federal grant
funds, but does not include proceeds
from the disposition of such property.
The State agency shall retain Program
income earned during the agreement
period and use it for Program purposes
in accordance with the addition method described in 2 CFR part 200, subpart
D and USDA implementing regulations
2 CFR part 400 and part 415. Fines, penalties or assessments paid by local
agencies or farmers/farmers’ markets
are also deemed to be FMNP income.
The State agency shall ensure that the
sources and applications of Program
income are fully documented.

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[59 FR 11517, Mar. 11, 1994, as amended at 81
FR 66496, Sept. 28, 2016]

§ 248.14 Distribution of funds.
(a) Conditions for receipt of Federal
funds—(1) Matching of funds—(i) Match
amount. As a prerequisite to the receipt
of Federal funds, a State agency must
agree to contribute State, local or private funds, or program income, equal
to not less than 30 percent of the total
administrative FMNP cost. The Secretary may negotiate a lower percentage of matching funds, but not lower
than 10 percent of the administrative
cost of the program, in the case of an
Indian State agency that demonstrates
to the Secretary financial hardship for
the affected Indian tribe, band, group,
or council. The State agency may contribute more than the minimum
amount. State, local or private funds
for similar programs as defined in
§ 248.2 may satisfy the State matching
requirement.
(ii) Sources of matching contributions.
A State agency may count any form of
contribution authorized by 2 CFR part
200, subpart D and USDA implementing
regulations 2 CFR part 400 and part 415
toward the State matching requirement including in-kind contributions.
(iii) Failure to match. A State agency’s failure to meet the State matching
requirement will result in the establishment of a claim for the amount of
Federal grant funds not matched. The
matching requirement will be considered satisfied if State or other nonFederal matching contributions reported on the final closeout report (re-

quired by § 248.15(a)) amount to at least
30 percent of the administrative costs.
This match amount may be lower for
those Indian State agencies that have
demonstrated to the Secretary financial hardship as set forth in paragraph
(a)(1)(i) of this section.
(2) State Plan and agreement. A State
agency shall have its State Plan approved and shall execute an agreement
with the Department in accordance
with § 248.3(c) of this part.
(b) Distribution of FMNP funds to previously participating State agencies. Provided that sufficient FMNP funds are
available, each State agency that participated in the FMNP in any prior fiscal year, shall receive not less than the
amount of funds the State agency received in the most recent fiscal year in
which it received funding, if it otherwise complies with the requirements
established in this part.
(c) Ratable reduction. If amounts appropriated for any fiscal year for
grants under the FMNP are not sufficient to pay to each previously participating State agency at least an
amount as identified in paragraph (b)
of this section, each State agency’s
grant shall be ratably reduced, except
that, to the extent permitted by available funds, each State agency shall receive at least $75,000 or the amount
that the State agency received for the
most recent prior fiscal year in which
the State participated, if that amount
is less than $75,000.
(d) Expansion of participating State
agencies and establishment of new State
agencies. Any FMNP funds remaining
for allocation after meeting the requirements of paragraph (b) of this section shall be allocated in the following
manner:
(1) Of the remaining funds, 75 percent
shall be made available to State agencies already participating in the FMNP
that wish to serve additional recipients. If this amount is greater than
that necessary to satisfy all State
plans approved for additional recipients, the unallocated amount shall be
applied toward satisfying any unmet
need in paragraph (d)(2) of this section.
(2) Of the remaining funds, 25 percent
shall be made available to State agencies that have not participated in the
FMNP in any prior fiscal year. If this

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lpowell on DSK54DXVN1OFR with $$_JOB

§ 248.15

7 CFR Ch. II (1–1–17 Edition)

amount is greater than that necessary
to satisfy the approved State Plans for
new States, the unallocated amount
shall be applied toward satisfying any
unmet need in paragraph (d)(1) of this
section. The Department reserves the
right not to fund every State agency
with an approved State Plan.
(3) In any fiscal year, any FMNP
funds that remain unallocated after
satisfying the requirements of paragraphs (d)(1) and (d)(2) of this section,
shall be reallocated in accordance with
paragraph (k) of this section.
(e) Expansion for current State agencies. In providing funds to State agencies that participated in the FMNP in
the previous fiscal year, the Department shall consider on a case-by-case
basis, the following:
(1) Whether the State agency utilized
at least 80 percent of its prior year food
grant. States that did not spend at
least 80 percent of their prior year food
grant may still be eligible for expansion funding if, in the judgment of the
Department, good cause existed which
was beyond the management control of
the State, such as severe weather conditions, or unanticipated decreases in
participant caseload in the WIC Program.
(2) Documentation supporting the
funds expansion request as outlined in
§ 248.4(a)(19).
(f) Funding of new State agencies.
Funds will be awarded to new State
agencies in accordance with § 248.5.
(g) Administrative funding. A State
agency shall have available for administrative costs an amount not greater
than 17 percent of total FMNP funds.
The 17 percent administrative cost limitation shall not apply to any funds
that a State agency may contribute in
excess of its minimum matching requirement. A State agency may use
any non-Federal contributions in excess of the 30 percent (or the negotiated percentage for those Indian
State agencies that received a lower
amount) matching requirement for
food and/or administrative costs.
(h) Market development. A State agency shall be permitted to use not more
than 2 percent of total program funds
for market development or technical
assistance to farmers’ markets if the
Secretary determines that the State

intends to promote the development of
farmers’ markets in socially or economically disadvantaged areas, or remote rural areas, where individuals eligible for participation in the program
have limited access to locally grown
fruits and vegetables.
(i) Transfer of funds. A State agency
may use not more than 5 percent of the
Federal FMNP funds made available
for the fiscal year to reimburse expenses incurred by the FMNP during a
preceding fiscal year. The State agency
shall provide such justification for its
request to spend back funds under this
paragraph as FNS may require.
(j) Recovery of unused funds. State
agencies shall return to FNS any unexpended funds made available for a fiscal year by February 1 of the following
fiscal year.
(k) Reallocation of funds. Any funds
recovered under paragraphs (d)(3) and
(j) of this section will be reallocated in
accordance with the appropriate method determined by FNS.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49747, Sept. 27, 1995; 60 FR 57148, Nov. 14,
1995; 64 FR 48076, Sept. 2, 1999; 73 FR 65251,
Nov. 3, 2008; 81 FR 66496, Sept. 28, 2016]

§ 248.15 Closeout procedures.
(a) General. State agencies shall submit to FNS a final closeout report for
the fiscal year on a form prescribed by
FNS on a date specified by FNS.
(b) Grant closeout procedures. When
grants to State agencies are terminated, the following procedures shall
be performed in accordance with 2 CFR
part 200, subpart D and USDA implementing regulations 2 CFR part 400 and
part 415.
(1) FNS may disqualify a State agency’s participation under the FMNP, in
whole or in part, or take such remedies
as may be appropriate, whenever FNS
determines that the State agency
failed to comply with the conditions
prescribed in this part, in its FederalState Agreement, or in FNS guidelines
and instructions. FNS will promptly
notify the State agency in writing of
the disqualification together with the
effective date.
(2) FNS may disqualify the State
agency or restrict its participation in
the FMNP when both parties agree
that continuation under the FMNP

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Food and Nutrition Service, USDA

§ 248.16

would not produce beneficial results
commensurate with the further expenditure of funds.
(3) Upon termination of a grant, the
affected agency shall not incur new obligations after the effective date of the
disqualification, and shall cancel as
many outstanding obligations as possible. FNS will allow full credit to the
State agency for the Federal share of
the noncancellable obligations properly incurred by the State agency prior
to disqualification, and the State agency shall do the same for farmers/farmers’ markets.
(4) A grant closeout shall not affect
the retention period for, or Federal
rights of access to, FMNP records as
specified in § 248.24(b) and (c). The
closeout of a grant does not affect the
responsibilities of the State agency regarding property or with respect to any
FMNP income for which the State
agency is still accountable.
(5) A final audit is not a required part
of the grant closeout and should not be
needed unless there are problems with
the grant that require attention. If
FNS considers a final audit to be necessary, it shall so inform OIG. OIG will
be responsible for ensuring that necessary final audits are performed and
for any necessary coordination with
other Federal cognizant audit agencies
or State or local auditors. Audits performed in accordance with § 248.18 may
serve as final audits providing such audits meet the needs of requesting agencies. If the grant is closed out without
an audit, FNS reserves the right to disallow and recover an appropriate
amount after fully considering any recommended
disallowances
resulting
from an audit which may be conducted
later.

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[59 FR 11517, Mar. 11, 1994, as amended at 81
FR 66496, Sept. 28, 2016]

§ 248.16 Administrative appeal of State
agency decisions.
(a) Requirements. The State agency
shall provide a hearing procedure
whereby recipients, local agencies and
farmers/farmers’ markets adversely affected by certain actions of the State
agency may appeal those actions. A recipient may appeal disqualification/
suspension of FMNP benefits. A local
agency may appeal an action of the

State agency disqualifying it from participating in the FMNP. A farmer/
farmers’ market may appeal an action
of the State agency denying its application to participate, imposing a sanction, or disqualifying it from participating in the FMNP. Expiration of a
contract or agreement shall not be subject to appeal.
(b) Postponement pending decision. An
adverse action may, at the State agency’s option, be postponed until a decision in the appeal is rendered.
(1) In a case where an adverse action
affects a local agency or farmer/farmers’ market, a postponement is appropriate where the State agency finds
that recipients would be unduly inconvenienced by the adverse action. In addition, the State agency may determine other relevant criteria to be considered in deciding whether or not to
postpone an adverse action.
(2) In a case where a recipient appeals
the termination of benefits, that recipient shall continue to receive FMNP
benefits until the hearing official
reaches a decision or the expiration of
the current FMNP season, whichever
occurs first. Applicants who are denied
benefits may appeal the denial, but
shall not receive benefits while awaiting the decision.
(c) Procedure. The State agency hearing procedure shall at a minimum provide the recipient, local agency or
farmer/farmers’ market with the following:
(1) Written notification of the adverse action, the cause(s) for the action, and the effective date of the action, including the State agency’s determination of whether the action
shall be postponed under paragraph (b)
of this section if it is appealed, and the
opportunity for a hearing. Such notification shall be provided within a reasonable timeframe established by the
State agency and in advance of the effective date of the action.
(2) The opportunity to appeal the action within the time specified by the
State agency in its notification of adverse action.
(3) Adequate advance notice of the
time and place of the hearing to provide all parties involved sufficient time
to prepare for the hearing.

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§ 248.17

7 CFR Ch. II (1–1–17 Edition)

(4) The opportunity to present its
case and at least one opportunity to reschedule the hearing date upon specific
request. The State agency may set
standards on how many hearing dates
can be scheduled, provided that a minimum of two hearing dates is allowed.
(5) The opportunity to confront and
cross-examine adverse witnesses.
(6) The opportunity to be represented
by counsel, or in the case of a recipient
appeal, by a representative designated
by the recipient, if desired.
(7) The opportunity to review the
case record prior to the hearing.
(8) An impartial decision maker,
whose decision as to the validity of the
State agency’s action shall rest solely
on the evidence presented at the hearing and the statutory and regulatory
provisions governing the FMNP. The
basis for the decision shall be stated in
writing, although it need not amount
to a full opinion or contain formal findings of fact and conclusions of law.
(9) Written notification of the decision in the appeal, within 60 days from
the date of receipt of the request for a
hearing by the State agency.
(d) Continuing responsibilities. Appealing an adverse action does not relieve a
farmer/farmers’ market or local agency
permitted to continue in the FMNP
while its appeal is pending, from responsibility for continued compliance
with the terms of the written agreement or contract with the State agency.
(e) Judicial review. If a State level decision is rendered against the recipient,
local agency or farmer/farmers’ market
and the appellant expresses an interest
in pursuing a further review of the decision, the State agency shall explain
any further State level review of the
decision and any available State level
rehearing process. If neither is available or both have been exhausted, the
State agency shall explain the right to
pursue judicial review of the decision.
(f) Additional appeals procedures for
State agencies which authorize farmers’
markets and not individual farmers. A
State agency which authorizes farmers’
markets and not individual farmers
shall ensure that procedures are in
place to be used when a farmer seeks to
appeal an action of a farmers’ market
or association denying the farmer’s ap-

plication to participate, or sanctioning
or disqualifying the farmer. The procedures shall be set forth in the State
Plan and in the agreements entered by
the State agency and the farmers’ market and the farmers’ market and the
farmer.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49748, Sept. 27, 1995; 60 FR 57148, Nov. 14,
1995]

Subpart F—Monitoring and Review
of State Agencies
§ 248.17 Management evaluations and
reviews.
(a) General. FNS and each State agency shall establish a management evaluation system in order to assess the accomplishment of FMNP objectives as
provided under these regulations, the
State Plan, and the written agreement
with the Department. FNS will provide
assistance to State agencies in discharging this responsibility, and will
establish standards and procedures to
determine how well the objectives of
this part are being accomplished, and
implement sanction procedures as warranted by State FMNP performance.
(b) Responsibilities of FNS. FNS shall
establish evaluation procedures to determine whether State agencies carry
out the purposes and provisions of this
part, the State Plan, and the written
agreement with the Department. As a
part of the evaluation procedure, FNS
shall review audits to ensure that the
FMNP has been included in audit examinations at a reasonable frequency.
These evaluations shall also include reviews of selected local agencies, and
on-site reviews of selected farmers,
farmers’ markets and roadside stands.
These evaluations will measure the
State agency’s progress toward meeting the objectives outlined in its State
Plan and the State agency’s compliance with these regulations.
(1) If FNS determines that the State
agency has failed, without good cause,
to demonstrate efficient and effective
administration of its FMNP or has
failed to comply with the requirements
contained in this section or the State
Plan, FNS may withhold an amount up
to 100 percent of the State agency’s administrative grant.

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lpowell on DSK54DXVN1OFR with $$_JOB

Food and Nutrition Service, USDA

§ 248.17

(2) Sanctions imposed upon a State
agency by FNS in accordance with this
section (but not claims for repayment
assessed against a State agency) may
be appealed in accordance with the procedures established in § 248.20. Before
carrying out any sanction against a
State agency, the following procedures
will be followed:
(i) FNS will notify the chief departmental officer of the administering
agency in writing of the deficiencies
found and of FNS’ intention to withhold administrative funds unless an acceptable corrective action plan is submitted by the State agency to FNS
within 45 days after mailing of notification.
(ii) The State agency shall develop a
corrective action plan, including timeframes for implementation to address
the deficiencies and prevent their future recurrence.
(iii) If the corrective action plan is
acceptable, FNS will notify the chief
departmental officer of the administering agency in writing within 30
days of receipt of the plan. The letter
will advise the State agency of the
sanctions to be imposed if the corrective action plan is not implemented according to the schedule set forth in the
approved plan.
(iv) Upon notification from the State
agency that corrective action has been
taken, FNS will assess such action, and
if necessary, perform a follow-up review to determine if the noted deficiencies have been corrected. FNS will
then advise the State agency of whether the actions taken are in compliance
with the corrective action plan, and
whether the deficiency is resolved or
further corrective action is needed.
Compliance buys can be required if,
during FNS management evaluations
by regional offices, a State agency is
found to be out of compliance with its
responsibility to monitor and review
farmers, farmers’ markets and roadside
stands.
(v) If an acceptable corrective action
plan is not submitted within 45 days, or
if corrective action is not completed
according to the schedule established
in the corrective action plan, FNS may
withhold the award of FMNP administrative funds. If the 45-day warning period ends in the fourth quarter of a fis-

cal year, FNS may elect not to withhold funds until the next fiscal year.
FNS will notify the chief departmental
officer of the administering State
agency.
(vi) If compliance is achieved before
the end of the fiscal year in which the
FMNP administrative funds are withheld, the funds withheld may be restored to the State agency. FNS is not
required to restore funds withheld beyond the end of the fiscal year for
which the funds were initially awarded.
(c) Responsibilities of State agencies.
The State agency is responsible for
meeting the following requirements:
(1) The State agency shall establish
evaluation and review procedures and
document the results of such procedures. The procedures shall include,
but are not limited to:
(i) Annual monitoring reviews of participating farmers, farmers’ markets
and roadside stands, including on-site
reviews of a minimum of 10 percent of
farmers, 10 percent of farmers’ markets, and 10 percent of roadside stands,
which includes those farmers, farmers’
markets, and roadside stands identified
as being the highest risk. First year of
operation in the FMNP shall be considered a high-risk indicator. More frequent reviews may be performed as the
State agency deems necessary.
(ii) Conducting monitoring reviews of
all local agencies within the State
agency’s jurisdiction at least once
every 2 years. Monitoring of local agencies shall encompass, but not be limited to, evaluation of management, accountability, certification, nutrition
education, financial management systems, and coupon management systems. WIC State agency reviews of
local agencies conducted for the WIC
Program may contribute to meeting
the FMNP requirement that all local
agencies be reviewed once every two
years if the reviews include reviews of
FMNP practices. When the WIC State
agency conducts a review of the local
agency outside of the FMNP season, a
review of documents and procedural
plans of the FMNP, rather than actual
FMNP activities, is acceptable.
(iii) Instituting the necessary followup procedures to correct identified
problem areas.

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§ 248.18

7 CFR Ch. II (1–1–17 Edition)

(2) On its own initiative or when required by FNS, the State agency shall
provide special reports on FMNP activities, and take positive action to
correct deficiencies in FMNP operations.
[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49748, Sept. 27, 1995; 73 FR 65251, Nov. 3,
2008]

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§ 248.18

Audits.

(a) Federal access to information. The
Secretary, the Comptroller General of
the United States, or any of their duly
authorized representatives, or duly authorized State auditors shall have access to any books, documents, papers,
and records of the State agency and
their contractors, for the purpose of
making surveys, audits, examinations,
excerpts, and transcripts.
(b) State agency response. The State
agency may take exception to particular
audit
findings
and
recommendations. The State agency shall
submit a response or statement to FNS
as to the action taken or planned regarding the findings. A proposed corrective action plan developed and submitted by the State agency shall include specific time frames for its implementation and for completion of the
correction of deficiencies and problems
leading to the deficiencies.
(c) Corrective action. FNS shall determine whether FMNP deficiencies identified in an audit have been adequately
corrected. If additional corrective action is necessary, FNS shall schedule a
follow-up review, allowing a reasonable
time for such corrective action to be
taken.
(d) State sponsored audits. State and
local agencies shall conduct independent audits in accordance with 2
CFR part 200, subpart F and Appendix
XI Compliance Supplement and USDA
implementing regulations 2 CFR part
400 and part 415, as applicable. A State
or local agency may elect to obtain either an organization-wide audit or an
audit of the Program if it qualifies to
make such an election under applicable
regulations.
[59 FR 11517, Mar. 11, 1994, as amended at 81
FR 66496, Sept. 28, 2016]

§ 248.19

Investigations.

(a) Authority. The Department may
make an investigation of any allegation of noncompliance with this part
and FNS guidelines and instructions.
The investigation may include, where
appropriate, a review of pertinent practices and policies of any State and
local agency, the circumstances under
which the possible noncompliance with
this part occurred, and other factors
relevant to a determination as to
whether the State and local agency has
failed to comply with the requirements
of this part.
(b) Confidentiality. No State or local
agency, recipient, or other person shall
intimidate, threaten, coerce, or discriminate against any individual for
the purpose of interfering with any
right or privilege under this part because that person has made a complaint or formal allegation, or has testified, assisted, or participated in any
manner in an investigation, proceeding, or hearing under this part.
The identity of every complainant
shall be kept confidential except to the
extent necessary to carry out the purposes of this part, including the conducting of any investigation, hearing,
or judicial proceeding.

Subpart G—Miscellaneous
Provisions
§ 248.20

Claims and penalties.

(a) Claims against State agencies. (1) If
FNS determines through a review of
the State agency’s reports, program or
financial analysis, monitoring, audit,
or otherwise, that any FMNP funds
provided to a State agency for food or
administrative purposes were, through
State agency negligence or fraud, misused or otherwise diverted from FMNP
purposes, a formal claim will be assessed by FNS against the State agency. The State agency shall pay promptly to FNS a sum equal to the amount
of the administrative funds or the
value of coupons so misused or diverted.
(2) If FNS determines that any part
of the FMNP funds received by a State
agency; or coupons, were lost as a result of theft, embezzlement, or unexplained causes, the State agency shall,

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Food and Nutrition Service, USDA

§ 248.21

on demand by FNS, pay to FNS a sum
equal to the amount of the money or
the value of the FMNP coupons so lost.
(3) The State agency shall have full
opportunity to submit evidence, explanation or information concerning alleged instances of noncompliance or diversion before a final determination is
made in such cases.
(4) FNS is authorized to establish
claims against a State agency for
unreconciled FMNP coupons. When a
State agency can demonstrate that all
reasonable management efforts have
been devoted to reconciliation and 99
percent or more of the FMNP coupons
issued have been accounted for by the
reconciliation process, FNS may determine that the reconciliation process
has been completed to satisfaction.
(b) Interest charge on claims against
State agencies. If an agreement cannot
be reached with the State agency for
payment of its debts or for offset of
debts on its current Letter of Credit
within 30 days from the date of the
first demand letter from FNS, FNS will
assess an interest (late) charge against
the State agency. Interest accrual
shall begin on the 31st day after the
date of the first demand letter, bill or
claim, and shall be computed monthly
on any unpaid balance as long as the
debt exists. From a source other than
the FMNP, the State agency shall provide the funds necessary to maintain
FMNP operations at the grant level authorized by FNS.
(c) Penalties. In accordance with section 12(g) of the National School Lunch
Act, whoever embezzles, willfully
misapplies, steals or obtains by fraud
any funds, assets or property provided
under section 17 of the Child Nutrition
Act of 1966, as amended, whether received directly or indirectly from
USDA, or whoever receives, conceals or
retains such funds, assets or property
for his or her own interest, knowing
such funds, assets or property have
been embezzled, willfully misapplied,
stolen, or obtained by fraud shall, if
such funds, assets or property are of
the value of $100 or more, be fined not
more than $10,000 or imprisoned not
more than five years, or both, or if
such funds, assets or property are of a
value of less than $100, shall be fined

not more than $1,000 or imprisoned for
not more than one year, or both.
§ 248.21 Procurement
management.

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property

(a) Requirements. State agencies shall
comply with the requirements of 2 CFR
part 200, subpart D and USDA implementing regulations 2 CFR part 400 and
part 415 for procurement of supplies,
equipment and other services with
FMNP funds. These requirements are
adopted by FNS to ensure that such
materials and services are obtained for
the FMNP in an effective manner and
in compliance with the provisions of
applicable law and executive orders.
(b) Contractual responsibilities. The
standards contained in 2 CFR part 200,
subpart D and Appendix II, Contract
Provisions for Non-Federal Entity Contracts Under Federal Awards and
USDA implementing regulations 2 CFR
part 400 and part 415 do not relieve the
State agency of the responsibilities
arising under its contracts. The State
agency is the responsible authority,
without recourse to FNS, regarding the
settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in
connection with the FMNP. This includes, but is not limited to, disputes,
claims, protests of award, source evaluation, or other matters of a contractual nature. Matters concerning violation of law are to be referred to such
local, State or Federal authority as
may have proper jurisdiction.
(c) State regulations. The State agency
may use its own procurement regulations which reflect applicable State
and local regulations, provided that
procurements made with FMNP funds
adhere to the standards set forth in 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.
(d) Property acquired with program
funds. State and local agencies shall
observe the standards prescribed in 2
CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400
and part 415 in their utilization and

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§ 248.22

7 CFR Ch. II (1–1–17 Edition)

disposition of real property and equipment acquired in whole or in part with
FMNP funds.
[59 FR 11517, Mar. 11, 1994, as amended at 81
FR 66496, Sept. 28, 2016]

§ 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.
[81 FR 66497, Sept. 28, 2016]

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§ 248.23

Records and reports.

(a) Recordkeeping requirements. Each
State agency shall maintain full and
complete records concerning FMNP operations. Such records shall comply
with 2 CFR part 200, subpart D and
USDA implementing regulations 2 CFR
part 400 and part 415 and the following
requirements:
(1) Records shall include, but not be
limited to, information pertaining to
financial operations, FMNP coupon
issuance and redemption, equipment
purchases and inventory, nutrition
education, and civil rights procedures.
(2) All records shall be retained for a
minimum of 3 years following the date
of submission of the final expenditure
report for the period to which the report pertains. If any litigation, claim,
negotiation, audit or other action involving the records has been started
before the end of the 3-year period, the
records shall be kept until all issues
are resolved, or until the end of the
regular 3-year period, whichever is
later. If FNS deems any of the FMNP
records to be of historical interest, it
may require the State agency to forward such records to FNS whenever the
State agency is disposing of them.

(3) Records for nonexpendable property acquired in whole or in part with
FMNP funds shall be retained for three
years after its final disposition.
(4) All records shall be available during normal business hours for representatives of the Department of the
Comptroller General of the United
States to inspect, audit, and copy. Any
reports resulting from such examinations shall not divulge names of individuals.
(b) Financial and recipient reports.
State agencies shall submit financial
and FMNP performance data on a yearly basis as specified by FNS and required by section 17(m)(8) of the CNA.
Such information shall include, but
shall not be limited to:
(1) Number and type of recipients
(Federal and non-Federal).
(2) Value of coupons issued.
(3) Value of coupons redeemed.
(c) Source documentation. To be acceptable for audit purposes, all financial and FMNP performance reports
shall be traceable to source documentation.
(d) Certification of reports. Financial
and FMNP reports shall be certified as
to their completeness and accuracy by
the person given that responsibility by
the State agency.
(e) Use of reports. FNS will use State
agency reports to measure progress in
achieving objectives set forth in the
State Plan, and this part, or other
State agency performance plans. If it is
determined, through review of State
agency reports, FMNP or financial
analysis, or an audit, that a State
agency is not meeting the objectives
set forth in its State Plan, FNS may
request additional information including, but not limited to, reasons for failure to achieve these objectives.
[59 FR 11517, Mar. 11, 1994, as amended at 81
FR 66496, Sept. 28, 2016]

§ 248.24 Other provisions.
(a) No aid reduction. The value of benefits or assistance available under the
FMNP shall not be considered as income or resources of recipients or their
families for any purpose under Federal,
State, or local laws, including, but not
limited to, laws relating to taxation,
welfare and public assistance programs. Section 17(m)(7)(B) of the CNA

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lpowell on DSK54DXVN1OFR with $$_JOB

Food and Nutrition Service, USDA

Pt. 249

provides that any programs for which a
grant is received under this subsection
shall be supplementary to the food
stamp program carried out under the
Food Stamp Act of 1977 as amended (7
U.S.C. 2011 et seq.) and to any other
Federal or State program under which
foods are distributed to needy families
in lieu of food stamps.
(b) Statistical information. FNS reserves the right to use information obtained under the FMNP in a summary,
statistical or other form which does
not identify particular individuals.
(c) Confidentiality. The State agency
shall restrict the use or disclosure of
information obtained from FMNP applicants and recipients to persons directly connected with the administration or enforcement of the WIC Program or the FMNP, including persons
investigating or prosecuting violations
in the WIC Program or FMNP under
Federal, State or local authority.
(d) Program evaluations. State and
local FMNP agencies and contractors
must cooperate in studies and evaluations conducted by or on behalf of the
Department, related to programs authorized under the Richard B. Russell
National School Lunch Act and the
Child Nutrition Act of 1966 (42 U.S.C.
1786).

South Carolina, Tennessee: U.S. Department of Agriculture, FNS, Southeast Region, 61 Forsyth Street, SW.,
Room 8T36, Atlanta, Georgia 30303.
(d) Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin: U.S. Department of Agriculture, FNS, Midwest Region, 77 West Jackson Boulevard—20th
floor, Chicago, Illinois 60604–3507.
(e) Arkansas, Louisiana, New Mexico,
Oklahoma, Texas: U.S. Department of
Agriculture, FNS, Southwest Region,
1100 Commerce Street, room 5–C–30,
Dallas, Texas 75242.
(f) Colorado, Iowa, Kansas, Missouri,
Montana, Nebraska, North Dakota,
South Dakota, Utah, Wyoming: U.S.
Department of Agriculture, FNS,
Mountain Plains Region, 1244 Speer
Boulevard, suite 903, Denver, Colorado
80204.
(g) Alaska, American Samoa, Arizona, California, Guam, Hawaii, Idaho,
Nevada, Oregon, Trust Territory of the
Pacific Islands, the Northern Mariana
Islands, Washington: U.S. Department
of Agriculture, FNS, Western Region,
90 Seventh Street, Suite #10–100, San
Francisco, California 94103.

[59 FR 11517, Mar. 11, 1994, as amended at 76
FR 37983, June 29, 2011]

§ 248.26 OMB control number.
The collecting of information requirements for part 248 have been approved by the Office of Management
and Budget and assigned OMB control
number 0584–0477.

§ 248.25 FMNP information.
Any person who wishes information,
assistance, records or other public material shall request such information
from the State agency, or from the
FNS Regional Office serving the appropriate State as listed below:
(a) Connecticut, Maine, Massachusetts, New Hampshire, New York,
Rhode Island, Vermont: U.S. Department of Agriculture, FNS, Northeast
Region, 10 Causeway Street, Room 501,
Boston, Massachusetts 02222–1066.
(b) Delaware, District of Columbia,
Maryland, New Jersey, Pennsylvania,
Puerto Rico, Virginia, Virgin Islands,
West Virginia: U.S. Department of Agriculture, FNS, Mid-Atlantic Region,
Mercer Corporate Park, 300 Corporate
Boulevard, Robbinsville, New Jersey,
08691–1598.
(c) Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,

[59 FR 11517, Mar. 11, 1994, as amended at 60
FR 49748, Sept. 27, 1995; 60 FR 57148, Nov. 14,
1995; 73 FR 65251, Nov. 3, 2008]

[60 FR 49748, Sept. 27, 1995]

PART 249—SENIOR FARMERS’ MARKET
NUTRITION
PROGRAM
(SFMNP)
Subpart A—General
Sec.
249.1
249.2
249.3

General purpose and scope.
Definitions.
Administration.

Subpart B—State Agency Eligibility
249.4
249.5

State plan.
Selection of new State agencies.

Subpart C—Participant Eligibility
249.6

Participant eligibility.

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§ 249.1
249.7

7 CFR Ch. II (1–1–17 Edition)

Nondiscrimination.

Subpart D—Participant Benefits
249.8
249.9

Level of benefits and eligible foods.
Nutrition education.

Subpart E—State Agency Provisions
249.10 Coupon, market, and CSA program
management.
249.11 Financial management system.
249.12 SFMNP costs.
249.13 Program income.
249.14 Distribution of funds to State agencies.
249.15 Closeout procedures.
249.16 Administrative appeal of State agency decisions.

Subpart F—Monitoring and Review of State
Agencies

[71 FR 74630, Dec. 12, 2006, as amended at 74
FR 48374, Sept. 23, 2009]

249.17
249.18
249.19

§ 249.2

Management evaluations and reviews.
Audits.
Investigations.

Subpart G—Miscellaneous Provisions
249.20 Claims and penalties.
249.21 Procurement and property management.
249.22 Nonprocurement debarment/suspension, drug-free workplace, and lobbying
restrictions.
249.23 Records and reports.
249.24 Data safeguarding requirements.
249.25 Other provisions.
249.26 SFMNP information.
249.27 OMB control number.
AUTHORITY: 7 U.S.C. 3007.
SOURCE: 71 FR 74630, Dec. 12, 2006, unless
otherwise noted.

Subpart A—General
§ 249.1

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domestic farmers’ markets, roadside
stands, and CSAs; and
(3) Develop or aid in the development
of new and additional farmers’ markets, roadside stands, and CSAs.
(b) These goals will be accomplished
through payment of cash grants to approved State agencies. The SFMNP
shall be supplementary to the food
stamp program carried out under the
Food Stamp Act of 1977 (7 U.S.C. 2011,
et seq.), and to any other Federal or
State food or nutrition assistance program under which foods are distributed
to needy families in lieu of food
stamps.

General purpose and scope.

(a) This part announces regulations
under which the Secretary of Agriculture shall carry out the Senior
Farmers’ Market Nutrition Program
(SFMNP). The purposes of the SFMNP
are to:
(1) Provide resources in the form of
fresh, nutritious, unprepared, locally
grown fruits, vegetables, honey, and
herbs from farmers’ markets, roadside
stands, and community supported agriculture (CSA) programs to low-income
seniors;
(2) Increase the domestic consumption of agricultural commodities by expanding or aiding in the expansion of

Definitions.

For the purpose of this part and all
contracts,
guidelines,
instructions,
forms and other documents related
hereto, the term:
Administrative costs means those direct and indirect costs (as defined in—
249.12(a)(1)(ii)), exclusive of food costs,
which State agencies determine to be
necessary to support SFMNP operations. Administrative costs include,
but are not limited to, the costs associated with administration and start-up;
the provision of nutrition education;
SFMNP coupon issuance; participant
education covering coupon redemption
procedures; eligibility determinations;
outreach services; printing SFMNP
coupons, processing redeemed coupons,
and training farmers, market managers, and/or farmers who operate CSA
programs on the food delivery system;
monitoring and reviewing program operations; required reporting and recordkeeping; determining which local
sites will be utilized; recruiting and authorizing farmers, farmers’ markets,
roadside stands, and/or CSA programs
to participate in the SFMNP; preparing
contracts for farmers, farmers’ markets, roadside stands, and/or CSA programs; developing a data processing
system for redemption and reconciliation of coupons; designing program
training and informational materials;
and coordinating SFMNP implementation responsibilities between designated administering agencies.

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