2 "SEC. 704. (a) Funds allotted to any State pursuant 3 to section 703 during a fiscal year shall be available for

payment to such State for disbursement by the State agency 5 in accordance with such agreements not inconsistent with 6 the provisions of this title as may be entered into by the

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Secretary and such State agency, for the purposes of carrying out the provisions of this title, during such fiscal year 9 in supplying

"(1) agriculture commodities and other foods for

consumption by persons aged sixty-five or over, and

"(2) nonfood assistance in furtherance of the programs authorized under this title.

"(b) The Secretary shall certify to the Secretary of

the Treasury from time to time the amounts to be paid to any State under this section and the time or times such

amounts are to be paid to any State under this section and

the time or times such amounts are to be paid; and the Sec

retary of the Treasury shall pay to the State at the time or

times fixed by the Secretary the amounts so certified.

"STATE PLANS

"SEC. 705. (a) Any State which desires to receive allot

ments under this title shall submit to the Secretary for ap

proval a State plan for purposes of this title which—

"(1) establishes or designates a single State agency

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as the sole agency for administering or supervising the administration of the plan, which agency shall be the agency primarily responsible for coordination of State programs and activities related to the purposes of this

title;

"(2) sets forth such policies and procedures as will provide satisfactory assurance that allotments paid to the State under the provisions of this title will be expended—

"(A) to make grants in cash or in kind to any public or private nonprofit institution or organization, agency, or political subdivision of a State (hereinafter referred to as 'recipient of a grant or contract')

"(i) to carry out the program as described

in section 706.

"(ii) to provide up to 90 per centum of the costs of the purchase and preparation of

the food; delivery of the meals; and such other reasonable expenses as may be incurred in providing nutrition services to persons aged sixtyfive or over. Recipients of grants or contracts may charge participating individuals for meals furnished but such charge shall not exceed a per meal limit to be established by each State

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agency, taking into consideration the income ranges of eligible individuals in local communities and other sources of income of the recipients of a grant or a contract.

"(iii) to provide up to 90 per centum of the costs of such supporting services as may be absolutely necessary such as the costs of social services and local public transportation to and from the residences of participating individuals to the extent such costs are not provided by grants for these services from the Department of Transportation, Office of Economic Opportunity, or other Federal agency.

"(B) to provide for the proper and efficient administration of the State plan: Provided, That the amount expended for such administration and planning shall not exceed a sum which shall be agreed upon between the Secretary and the State

agency

"(i) in making report, in such form and containing such information, as the Secretary may require to carry out his functions under this title, including reports of the objective measurements required by section 706, and

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keeping such records and for affording such access thereto as the Secretary may find nec

essary to assure the correctness and verification of such reports and proper disbursement of Federal funds under this title, and

"(ii) in providing satisfactory assurance that such fiscal control and fund accounting procedures will be adopted as may be necessary to assure proper disbursement of, and accounting for, Federal funds paid under this title to

the State, including any such funds paid by the State to the recipient of a grant or contract.

'(3) provides such methods of administration (including methods relating to the establishment and maintenance of personnel standards on a merit basis,

except that the Secretary shall exercise no authority with respect to the selection, tenure of office, and compensation of any individual employed in accordance with such methods) as are necessary for the proper and

efficient operation of the plan.

"(b) The Secretary shall approve any State plan which

he determines meets the requirements and purposes of this

section.

"(c) Whenever the Secretary, after reasonable notice

and opportunity for hearing to such State agency, finds (1)

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1 that the State plan has been so changed that it no longer 2 complies with the provisions of this title, or (2) that in the 3 administration of the plan there is a failure to comply sub4 stantially with any such provision or with any requirements 5 set forth in the application of a recipient of a grant or con6 tract approved pursuant to such plan, the Secretary shall 7 notify such State agency that further payments will not be 8 made to the State under the provisions of this title (or in his 9 discretion, that further payments to the State will be limited to programs or projects under the State plan, or portions 11 thereof, not affected by the failure, or that the State agency shall not make further payments under this part to specified 13 local agencies affected by the failure) until he is satisfied

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that there is no longer any such failure to comply. Until

he is so satisfied, the Secretary shall make no further payments to the State under this title, or shall limit payments

to recipients of grants or contracts under, or parts of, the State plan not affected by the failure or payments to the

State agency under this part shall be limited to recipients

of grants or contracts not affected by the failure, as the case may be.

"(d) (1) If any State is dissatisfied with the Secretary's final action with respect to the approval of its State plan submitted under subsection (c), such State may, within sixty

days after notice of such action, file with the United States