(b) As part of their State plan submission, single planning and service area States must provide a funds distribution plan which includes:

1. (1) A descriptive statement as to how the State agency determines the geographical distribution of the Title III and Nutrition Services Incentive Program funding;
2. (2) How the State agency targets the funding to reach individuals with greatest economic need and greatest social need, with particular attention to low-income minority older individuals;
3. (3) At the option of the State agency, a numerical/mathematical statement as a part of their funds distribution plan; and

4. (4) Justification if the State agency determines it meets requirements to provide services directly where:

   1. (i) As set forth in section 307(a)(8)(A) of the Act (42 U.S.C. 3027(a)(8)(A)), no supportive services, except as set forth in paragraph (b)(4)(i)(B) of this section, nutrition services, disease prevention and health promotion, or family caregiver services will be directly provided by the State agency, unless, in the judgment of the State agency:

      1. (A) Provision of such services by the State agency is necessary to assure an adequate supply of such services;
      2. (B) Such services are directly related to such State agency's administrative functions; or
      3. (C) Such services may be provided more economically, and with comparable quality, by such State agency.
   2. (ii) The State agency may directly provide case management, information and assistance services, and outreach.
   3. (iii) Approval of the State agency to provide direct services may only be granted for a maximum of the State plan period. For each time that approval is granted to a State agency to provide direct services, the State agency must demonstrate the State agency's efforts to identify service providers prior to being granted a subsequent approval.

(c) Single planning and service area States must adhere to use of the funds distribution plan for Title III and Nutrition Services Incentive Program funds within the State. If a single planning and service area State agency revises their Title III funds distribution plan, they may do so by:

1. (1) Following their policies and procedures to publish the updated funds distribution plan for public review and comment for a reasonable minimum time period (30 calendar days or greater, unless a waiver is provided by the Assistant Secretary for Aging during an emergency or when a time sensitive action is otherwise necessary); and
2. (2) Submitting the revised funds distribution plan for Assistant Secretary for Aging approval prior to implementing the changes as noted at § 1321.33.