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USDA/FNS RIN: 0584-AD76 Publication ID: Spring 2009 
Title: Revisions and Clarifications in Requirements for the Processing of Donated Foods 
Abstract: This final rule requires multi-State processors to sign National Processing Agreements (NPA) with the Department to process donated foods into end products, as under a current demonstration project. Under NPA, the Department is responsible for the review and approval of end product data schedules and the management of the processor’s performance bond to protect the value of donated food inventories. Processors are still required to enter into State Participation Agreements (SPA) to sell end products in the State and to meet other State-specific processing requirements. The revisions will reduce the workload currently required of State agencies in approving end product data schedules and accounting for donated foods provided to processors. However, State agencies may continue to ensure that processing requirements are met under current agreement or contract options. This final rule also revises other processing requirements to reduce the paperwork burden and workload and to more fully integrate donated foods with commercial business practices. It revises current regulations to: (1) Allow processing agreements or contracts of up to 5 years duration, rather than the current 1 year, with an option for two 1-year extensions; (2) allow substitution of donated beef and pork with like commercial foods of U.S. origin and of equal or better quality; (3) remove the verification of end product sales through commercial distributors; (4) reduce independent CPA audit requirements for multi-State processors by revising upward the donated food value thresholds that determine the required frequency of such audits; and (5) require in-State processors to obtain an independent CPA audit every 3 years, and remove the requirement that distributing agencies conduct an on-site review of such processors at least once every 2 years. Lastly, the rule rewrites and restructures processing regulations in a “plain language” format to make them easier to understand for the general public. (05-005) 
Agency: Department of Agriculture(USDA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 7 CFR 250.3, 250.13, 250.16, 250.17, 250.18    7 CFR 250.19, 250.24, 250.30   
Legal Authority: 5 USC 301    7 USC 612d, 612c note    7 USC 1431, 1431b, 1431e, 1431 note, 1446a-1, 1859, 2014, 2025    15 USC 713c    22 USC 1922    42 USC 1751, 1755, 1758, 1760, 1761, 1762a, 1766, 3030a, 5179, 5180   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  08/24/2006  71 FR 50250   
NPRM Comment Period End  11/22/2006    
Final Action  06/00/2009    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State 
Small Entities Affected: Businesses  Federalism: Yes 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
James F Herbert
Regulatory Review Specialist
Department of Agriculture
Food and Nutrition Service
3101 Park Center Drive,
Alexandria, VA 22302
Phone:703 305-2572
Email: james.herbert@fns.usda.gov