[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR246.4]

[Page 277-281]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 246--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN--Table of Contents
 
              Subpart B--State and Local Agency Eligibility
 
Sec. 246.4  State plan.


    (a) Requirements. By August 15 of each year, each State agency shall 
submit to FNS for approval a State Plan for the following fiscal year as 
a prerequisite to receiving funds under this section. The State agency 
may submit the State Plan in the format provided by FNS guidance. 
Alternatively, the State agency may submit the Plan in combination with 
other federally required planning documents or develop its own format, 
provided that the information required below is included. FNS requests 
advance notification that a State agency intends to use an alternative 
format. The State Plan shall be signed by the State designated official 
responsible for ensuring that the Program is operated in accordance with 
the State Plan. FNS will provide written approval or denial of a 
completed State Plan or amendment within 30 days of receipt. Within 15 
days after FNS receives an incomplete Plan, FNS will notify the State 
agency that additional information is needed to complete the Plan. Any 
disapproval will be accompanied by a statement of the reasons for the 
disapproval. After receiving approval of the State Plan, each State 
agency shall only submit to FNS for approval substantive changes in the 
State Plan. A complete and approved Plan shall include:
    (1) An outline of the State agency's goals and objectives for 
improving Program operations.
    (2) A budget for nutrition services and administration funds, and an 
estimate of food expenditures.
    (3) An estimate of Statewide participation for the coming fiscal 
year by category of women, infants and children.
    (4) The State agency staffing pattern.
    (5) An Affirmative Action Plan which includes--
    (i) A list of all areas and special populations, in priority order 
based on relative need, within the jurisdiction of the State agency, the 
State agency's plans to initiate or expand operations under the Program 
in areas most in need of supplemental foods, including plans to inform 
nonparticipating local agencies of the availability and benefits of the 
Program and the availability of technical assistance in implementing the 
Program, and a description of how the State agency will take all 
reasonable actions to identify potential local agencies and encourage

[[Page 278]]

agencies to implement or expand operations under the Program within the 
following year in the neediest one-third of all areas unserved or 
partially served;
    (ii) An estimate of the number of potentially eligible persons in 
each area and a list of the areas in the Affirmative Action Plan which 
are currently operating the Program and their current participation, 
which participant priority levels as specified in Sec. 246.7 are being 
reached in each of these areas, and which areas in the Affirmative 
Action Plan are currently operating CSFP and their current 
participation; and
    (iii) A list of the names and addresses of all local agencies.
    (6) Plans to provide program benefits to eligible migrant 
farmworkers and their families, to Indians, and to homeless individuals.
    (7) The State agency's plans, to be conducted in cooperation with 
local agencies, for informing eligible persons of the availability of 
Program benefits, including the eligibility criteria for participation, 
the location of local agencies operating the Program, and the 
institutional conditions of Sec. 246.7(n)(1)(i) of this part, with 
emphasis on reaching and enrolling eligible women in the early months of 
pregnancy and migrants. Such information shall be publicly announced by 
the State agency and by local agencies at least annually. Such 
information shall also be distributed to offices and organizations that 
deal with significant numbers of potentially eligible persons, including 
health and medical organizations, hospitals and clinics, welfare and 
unemployment offices, social service agencies, farmworker organizations, 
Indian tribal organizations, organizations and agencies serving homeless 
individuals, and religious and community organizations in low-income 
areas.
    (8) A description of how the State agency plans to coordinate 
program operations with other services or programs that may benefit 
participants in, or applicants for, the program.
    (9) The State agency's nutrition education goals and action plans, 
including a description of the methods that will be used to provide drug 
and other harmful substance abuse information, promote breastfeeding, 
and to meet the special nutrition education needs of migrant farmworkers 
and their families, Indians, and homeless persons.
    (10) For Indian State or local agencies that wish to apply for the 
alternate income determination procedure in accordance with 
Sec. 246.7(d)(2)(vii), documentation that the majority of Indian 
household members have incomes below eligibility criteria.
    (11) A copy of the procedure manual developed by the State agency 
for guidance to local agencies in operating the Program. The manual 
shall include--
    (i) Certification procedures, including a list of the specific 
nutritional risk criteria by priority level which cites conditions and 
indices to be used to determine a person's nutritional risk, 
hematological data requirements including timeframes for the collection 
of such data, the State agency's income guidelines for Program 
eligibility, and any adjustments to the participant priority system made 
pursuant to Sec. 246.7(e)(4) to accommodate high-risk postpartum women 
or the addition of Priority VII;
    (ii) Methods for providing nutrition education, including drug and 
other harmful substance abuse information, to participants, including 
homeless individuals;
    (iii) Instructions concerning all food delivery operations performed 
at the local level;
    (iv) Instructions for providing all records and reports which the 
State agency requires local agencies to maintain and submit; and
    (v) Instructions on coordinating operations under the program with 
drug and other harmful substance abuse counseling and treatment 
services.
    (12) A description of the State agency's financial management 
system.
    (13) A description of how the State agency will distribute nutrition 
services and administration funds, including start-up funds, to local 
agencies operating under the Program.
    (14) A description of the food delivery system as it operates at the 
State agency level, including--
    (i) All food delivery systems in use within the State agency's 
jurisdiction;
    (ii) Vendor selection criteria;

[[Page 279]]

    (iii) A sample form for the written agreement between the food 
vendor and the State or local agency;
    (iv) The system for monitoring food vendors to ensure compliance and 
prevent fraud, waste and abuse, and the State agency's plans for 
improvement in the coming year;
    (v)The option exercised by the State agency to sanction vendors 
pursuant toSec. 246.12(k)(1)(i).
    (vi) Where food instruments are used, a facsimilie of the food 
instrument, and the system for control and reconciliation of the food 
instruments;
    (vii) The procedures used to pay food vendors;
    (viii) The names of companies, excluding authorized food vendors, 
with whom the State agency has contracted to participate in the 
operation of the food delivery system;
    (ix) For State agencies applying for authority to convert food funds 
to nutrition services and administration funds under Sec. 246.16(g), a 
full description of their proposed cost-cutting system or system 
modification;
    (x) If the State agency plans to adapt its food delivery system to 
accommodate the needs of homeless individuals, a description of such 
adaptations.
    (xi) A description of any cost containment system. A State agency 
must submit a State Plan or Plan amendment if it is attempting to 
structure and justify a system that is not a single-supplier competitive 
bidding system for infant formula in accordance with Sec. 246.16a(d); is 
requesting a waiver for an infant formula cost containment system under 
Sec. 246.16a(e); or, is planning to change or modify its current system 
or implement a system for the first time. The amendment must be 
submitted at least 90 days before the proposed effective date of the 
system change. The plan amendment must include documentation for 
requests for waivers based on interference with efficient or effective 
program operations; a cost comparison analysis conducted under 
Sec. 246.16a(d)(2); and a description of the proposed cost containment 
system. If FNS disputes supporting plan amendment documentation, it will 
deem the Plan amendment incomplete under this paragraph (a), and will 
provide the State agency with a statement outlining disputed issues 
within 15 days of receipt of the Plan amendment. The State agency may 
not enter into any infant formula cost containment contract until the 
disputed issues are resolved and FNS has given its consent. If 
necessary, FNS may grant a postponement of implementation of an infant 
formula cost containment system under Sec. 246.16a(f). If at the end of 
the postponement period issues remain unresolved the State agency must 
proceed with a cost containment system judged by FNS to comply with the 
provisions of this part. If the State agency does not comply, it will be 
subject to the penalties set forth in Sec. 246.16a(i).
    (15) Plans to prevent and detect dual participation. In States where 
the Program and the CSFP operate in the same area, or where an Indian 
State agency operates a Program in the same area as a geographic State 
agency, a copy of the written agreement between the State agencies for 
the detection and prevention of dual participation shall be submitted.
    (16) A description of the procedures the State will use to comply 
with the civil rights requirements described in Sec. 246.8, including 
the processing of discrimination complaints.
    (17) A copy of the State agency's fair hearing procedures for 
participants and the administrative appeal procedures for local agencies 
and food vendors.
    (18) The State agency's plan to reach and enroll migrants, and 
eligible women in the early months of pregnancy.
    (19) The State agency's plan to establish, to the extent 
practicable, that homeless facilities, and institutions if it chooses to 
make the Program available to them, meet the conditions established in 
Sec. 246.7(n)(1)(i) of this part, if residents of such accommodations 
are to be eligible to receive WIC Program benefits.
    (20) A plan to provide program benefits to unserved infants and 
children under the care of foster parents, protective services, or child 
welfare authorities, including infants exposed to drugs perinatally.
    (21) A plan to improve access to the Program for participants and 
prospective applicants who are employed or who reside in rural areas, by 
addressing

[[Page 280]]

their special needs through the adoption or revision of procedures and 
practices to minimize the time participants and applicants must spend 
away from work and the distances participants and applicants must 
travel. The State agency shall also describe any plans for issuance of 
food instruments to employed or rural participants, or to any other 
segment of the participant population, through means other than direct 
participant pick-up, pursuant to Sec. 246.12(r)(8). Such description 
shall also include measures to ensure the integrity of Program services 
and fiscal accountability.
    (22) Assurance that each local agency and any subgrantees of the 
State agency and/or local agencies are in compliance with the 
requirements of 7 CFR part 3017 regarding nonprocurement debarment/
suspension.
    (23) A description of the State agency's plans to provide and 
maintain a drug-free workplace.
    (b) Public comment. The State agency shall establish a procedure 
under which members of the general public are provided an opportunity to 
comment on the development of the State agency plan.
    (c) Amendments. At any time after approval, the State agency may 
amend the State Plan to reflect changes. The State agency shall submit 
the amendments to FNS for approval. The amendments shall be signed by 
the State designated official responsible for ensuring that the Program 
is operated in accordance with the State Plan.
    (d) Retention of copy. A copy of the approved State Plan or the WIC 
portion of the State's composite plan of operations shall be kept on 
file at the State agency for public inspection.

[50 FR 6121, Feb. 13, 1985, as amended at 52 FR 21236, June 4, 1987; 53 
FR 25314, July 6, 1988; 54 FR 51294, Dec. 14, 1989; 55 FR 9717, Mar. 15, 
1990; 57 FR 34506, Aug. 5, 1992; 58 FR 11506, Feb. 26, 1993; 59 FR 
11499, Mar. 11, 1994; 63 FR 63973, Nov. 18, 1998; 64 FR 13322, Mar. 18, 
1999; 64 FR 70177, Dec. 16, 1999; 65 FR 53527, Sept. 5, 2000; 65 FR 
51223, Aug. 23, 2000]

    Effective Date Note: At 65 FR 83277, Dec. 29, 2000, Sec. 246.4 was 
amended by adding a heading to paragraph (a)(14)(i), in paragraph 
(a)(14)(v) by adding a heading and removing the reference to 
``Sec. 246.12(k)(1)(i)'' and adding a reference to 
``Sec. 246.12(l)(1)(i)'' in its place, by revising paragraphs 
(a)(14)(ii), through (vi), by removing paragraph (a)(14)(vii) and 
redesignating paragraphs (a)(14)(viii) through (a)(14)(xi) as paragraphs 
(a)(14)(vii) through (a)(14)(x), respectively, in newly redesignated 
paragraph (a)(14)(vii), by adding a heading and removing the words 
``food vendors'' and adding ``vendors'' in its place, in newly 
redesignated paragraph (a)(14)(viii), adding a heading, in newly 
redesignated paragraphs (a)(14)(ix) and (a)(14)(x), by adding headings 
and removing the periods at the end and adding semicolons in their 
place, by adding new paragraphs (a)(14)(xi) through (a)(14)(xiv), by 
revising the first sentence of paragraph (a)(15), and in paragraph 
(a)(21), by removing the reference to ``Sec. 246.12(r)(8)'' and adding a 
reference to ``Sec. 246.12(r)(4)'' in its place, effective February 27, 
2001. For the convenience of the user the revisions and additions are 
set forth as follows:

Sec. 246.4  State plan.

    (a) * * *
    (14) * * *
    (i) Type of system. * * *
    (ii) Vendor limiting and selection criteria. Vendor limiting 
criteria, if used by the State agency, and the vendor selection criteria 
established by the State agency consistent with the requirements in 
Sec. 246.12(g)(3);
    (iii) Vendor agreement. A sample vendor agreement, including the 
sanction schedule, which may be incorporated as an attachment or, if the 
sanction schedule is in the State agency's regulations, through citation 
to the regulations. State agencies that intend to delegate signing of 
vendor agreements to local agencies must describe the State agency 
supervision and instruction that will be provided to ensure the 
uniformity and quality of local agency activities;
    (iv) Vendor monitoring. The system for monitoring vendors to ensure 
compliance and prevent fraud, waste, and program noncompliance, and the 
State agency's plans for improvement in the coming year in accordance 
with Sec. 246.12(j). The State agency must also include the criteria it 
will use to determine which vendors will receive routine monitoring 
visits. State agencies that intend to delegate any aspect of vendor 
monitoring responsibilities to a local agency or contractor must 
describe the State agency supervision and instruction that will be 
provided to ensure the uniformity and quality of vendor monitoring;
    (v) Options regarding trafficking convictions. * * *
    (vi) Food instruments. A facsimile of the food instrument, if used, 
and a description of the system the State agency will use to account for 
the disposition of food instruments in accordance with Sec. 246.12(q);
    (vii) Names of contractors. * * *
    (viii)Nutrition services and administration funds conversion. * * *
    (ix) Homeless participants. * * *

[[Page 281]]

    (x) Cost containment systems. * * *
    (xi) Vendor training. The procedures the State agency will use to 
train vendors in accordance with Sec. 246.12(i). State agencies that 
intend to delegate any aspect of training to a local agency, contractor, 
or vendor representative must describe the State agency supervision and 
instruction that will be provided to ensure the uniformity and quality 
of vendor training;
    (xii) Food instrument security. A description of the State agency's 
system for ensuring food instrument security in accordance with 
Sec. 246.12(p);
    (xiii) Participant access determination criteria. A description of 
the State agency's participant access determination criteria consistent 
with Sec. 246.12(l); and
    (xiv) Mobile stores. The special needs necessitating the 
authorization of mobile stores, if the State agency chooses to authorize 
such stores.
    (15) The State agency's plans to prevent and identify dual 
participation in accordance with Sec. 246.7(l)(1)(i) and (l)(1)(ii). * * 
*

                                * * * * *