[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR249.14]

[Page 468-469]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 249_SENIOR FARMERS' MARKET NUTRITION PROGRAM (SFMNP)--Table of Contents
 
                    Subpart E_State Agency Provisions
 
Sec.  249.14  Distribution of funds to State agencies.

    (a) State Plan and agreement. As a prerequisite to the receipt of 
Federal funds, a State agency must have its State Plan approved and must 
execute an agreement with FNS in accordance with Sec.  249.3(c).
    (b) Distribution of SFMNP funds to previously participating State 
agencies. Provided that sufficient SFMNP funds are available, each State 
agency that participated in the SFMNP 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 SFMNP 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 must be ratably reduced. 
However, 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 SFMNP 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 SFMNP that wish to serve 
additional participants or increase the current benefit level. If this 
amount is greater than that necessary to satisfy all State Plans 
approved for expansion, 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 SFMNP in any prior 
fiscal year. If this 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. FNS reserves the right not to fund every State agency with an 
approved State Plan.

[[Page 469]]

    (e) Expansion for current State agencies. In providing funds to 
State agencies that participated in the SFMNP in the previous fiscal 
year, FNS must consider on a case-by-case basis the following factors:
    (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 FNS, good cause existed which was beyond the 
management control of the State, such as severe weather conditions or 
unanticipated decreases in participant caseload;
    (2) Documentation supporting the funds expansion request as outlined 
in Sec.  249.4(a)(23); and
    (3) Whether the State agency currently issues a participant benefit 
greater than $50. Such State agencies will not be eligible to receive 
additional SFMNP funds for expansion until the maximum participant 
benefit no longer exceeds $50.
    (f) Funding of new State agencies. Funds will be awarded to new 
SFMNP State agencies in accordance with Sec.  249.5.
    (g) Administrative funding. A State agency will have available for 
administrative costs an amount not greater than 10 percent of the total 
SFMNP funds it receives.
    (h) Recovery of unused funds. State agencies must return to FNS any 
unexpended funds made available for a given fiscal year by February 1 of 
the following fiscal year.