Effective Date of Rule: Immediately.

     Purpose: Chapter 68, Laws of 2010, transferred the authority to administer state emergency food programs from the department of general administration and the department of commerce to the department of agriculture (WSDA) effective July 1, 2010. Chapter 365-140 WAC contains the rules governing these programs. WAC 365-140-060(4) prohibited the department of commerce from using its funds to defray the costs of distributing United States Department of Agriculture (USDA) commodities, a program that commerce did not administer. Because WSDA now will administer the USDA commodities program, this rule must be amended to allow the department to use funds to defray costs of distributing USDA commodities.

     Citation of Existing Rules Affected by this Order: Amending WAC 365-140-060.

     Statutory Authority for Adoption: Chapter 68, Laws of 2010.

     Other Authority: Chapter 34.05 RCW.

     Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

     Reasons for this Finding: Chapter 68, Laws of 2010, transferred the authority to administer state emergency food programs from the department of general administration and the department of commerce to WSDA effective July 1, 2010. The new law also continued the effectiveness of the department of commerce's emergency food program rules (chapter 365-140 WAC) and authorized WSDA to act on them. The general administration program includes the distribution of USDA commodities, which now will be accomplished by WSDA. WAC 365-140-060(4) must be amended to allow the department to use funds to defray costs of distributing USDA commodities under the commodity program. This change is necessary to provide for the preservation of the public health and general welfare.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: July 1, 2010.

Dan Newhouse

Director

     (2) An applicant must make formal application using forms issued and procedures established by the department. Such application shall be for the period indicated on the contract face sheet. Failure of an applicant to make application in a timely manner, as specified by the department, may result in denial of the funding request.

     (3) Department funds may not supplant other existing funding sources.

     (4) ((Department funds may not be used to defray costs of distributing USDA commodities under the commodity program.

     (5))) The department shall notify successful applicants and shall provide to each of them a contract for signature. This contract must be signed by an official with authority to bind the applicant and must be returned to the department prior to the award of any funds under this program.

     (((6))) (5) Applicants that receive food bank or food distribution funds are subject to the following fiscal requirements:

     (a) The total funds from the department received by a nontribal lead agency contractor or a food distribution subcontractor must be equally matched by funds from other sources during the fiscal year. No more than fifty percent of that match may be documented in-kind contributions. Nontribal participating food banks receiving funds from the department have two options for matching funds: They may equally match the EFAP funds, with no more than fifty percent being documented in-kind contributions; if they do not have at least one-half of their minimum match as cash, they may match their department funds by at least two hundred percent in in-kind contributions from other sources.

     (b) Administrative costs for food bank and food distributor subcontractors under this program are limited to ten percent of their total contract award. Administrative costs for a lead agency contractor who also provides direct emergency food assistance services as a participating food bank and/or services as a food distributor are limited to ten percent of the contractor's allocation for providing direct services, ((ten percent of the contractor's allocation for providing direct services,)) ten percent of the contractor's allocation for providing food distributor services, and ten percent of the total contract award as food bank lead agency; total administrative costs, however, may not exceed fifteen percent of the total contract award. Administrative costs for agencies who are lead agency contractors only are limited to ten percent of their total contract award.

     (((7))) (6) Tribal applicants are subject to the following fiscal requirements:

     (a) Tribal contractors and subcontractors must match thirty-five percent of the funds received by the department for the emergency food assistance program. No more than fifty percent of that match may be documented in-kind contributions.

     (b) Of a contract award allocated to the tribal food voucher program, tribal contractors may not spend more than ten percent on administrative costs, and five percent on operational expenditures. The balance of funds is to be used for food vouchers issued to clients. Of funds allocated to the food bank program, tribal contractors are subject to the same spending requirements as nontribal food bank contractors as per WAC 365-140-060 (((6))) (5)(b).

[Statutory Authority: RCW 43.330.040. 99-15-062, § 365-140-060, filed 7/16/99, effective 8/16/99. Statutory Authority: RCW 43.63A.060. 95-12-002, § 365-140-060, filed 5/24/95, effective 7/1/95. Statutory Authority: RCW 43.63A.060 and 1992 c 232 § 222(5). 93-18-021 (Order 93-06), § 365-140-060, filed 8/25/93, effective 9/25/93. Statutory Authority: RCW 43.63A.060. 87-19-113 (Order 87-11), § 365-140-060, filed 9/18/87; 86-20-010 (Order 86-14), § 365-140-060, filed 9/22/86; 86-08-043 (Order 85-15), § 365-140-060, filed 3/27/86.]

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