The state has severed its relationship with Kauai Independent Food Bank, choosing instead to recommend that another agency, the Hawaii Foodbank-Kauai Branch, receive federal support to distribute food to agencies on the island for needy families.

The two food banks were vying for federal financial support from the Emergency Food Assistance Program after the state decided there was a duplication of services and only one of the agencies on the Garden Island could be funded.

The state Office of Community Services sent its recommendation Saturday to the U.S. Department of Agriculture.

The state has requested that 3.3 million pounds of food and $165,000 for administrative costs be shared by food banks under the umbrella of the Hawaii Food Bank, including affiliates on Hawaii island, Oahu and Kauai. The state also recommended that Maui Food Bank, a partnering distribution organization under Hawaii Foodbank, receive federal support.

En Young, contract administrator of the state Office of Community Services, said it will be more efficient for the state to work with one entity to oversee the sites.

In addition to Kauai Independent Food Bank, the state will not renew contracts with the Honolulu Community Action Program, Hawaii County Economic Opportunity Council, Kauai Economic Opportunity and Maui Economic Opportunity.

The USDA is expected to approve the state’s proposal by the end of October. If approved, Hawaii Foodbank-Kauai Branch will be placed on six months’ probation.

Young said Hawaii Food Bank’s lower per-pound cost of food distribution and its abundant food supply were two of the reasons the state selected the organization. Hawaii Foodbank’s distribution food costs on Kauai were less than 1 cent per pound compared with about 56 cents per pound at Kauai Independent, Young said.

Kauai Independent Food Bank plans to fight the state’s decision, said spokesman Tom Lodico. The organization has served agencies on Kauai for 15 years and had been a partner with Hawaii Foodbank until last year, when the organizations terminated a distribution agreement.

Kauai Independent will continue to receive federal support until Dec. 31.

On the same day the state sent its proposal to the USDA, Kauai Independent’s board of directors placed longtime Executive Director Judith Lenthall on paid administrative leave and said it will conduct an independent investigation. Lodico declined to say why Lenthall was placed on leave and what prompted the investigation, but did say the decision was unrelated to Kauai Independent’s use of $779,000 in federal grants that had to be returned to the USDA in 2007.

Lenthall also said she didn’t know why she was placed on administrative leave.

Assistant Executive Director Norma Barton will serve as acting director while the investigation is under way.