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tion 4 of the National School Lunch Act, and such funds shall be apportioned and paid as expeditiously as may be practicable.

SECTION 7 OF THE ACT OF NOVEMBER 5, 1971

(Public Law 92-153) 1

Sec. 7. In addition to any other authority given to the Secretary he is hereby authorized to transfer funds from section 32 of the Act of August 24, 1935, for the purpose of assisting schools which demonstrate a need for additional funds in the school breakfast program.

[NOTE.— With the exception of sec. 4 of this Act which amends section 11(e) of the National School Lunch Act, and Section 7 supra, Public Law 92-153 expired June 30, 1971.)

1 Public Law 92-153, 85 Stat. 419, approved Nov. 5, 1971, was a joint resolution to assure that every needy schoolchild receive a free or reduced price lunch as requred by Sec. 9 of the National School Lunch Act.

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81 - 31

SECTION 32-ACT OF AUGUST 24, 1935

(Public Law 74-329) 2

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Sec. 32. There is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year.3 Such sums shall be maintained

in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage the domestic consumption of such commodities or products by diverting them, by the payment of benefits or indemnities or by other means, from the normal channels of trade and commerce or by increasing their utilization through benefits, indemnities, donations or by other means, among persons in lowincome groups as determined by the Secretary of Agriculture; and (3) reestablish farmers' purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final.

The sums appropriated under this section shall be expended for such one or more of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will effectuate substantial accomplishment of any one or more of the purposes of this section.1 Notwithstanding any other provision of this section, the amount that may be devoted, during any fiscal year after June 30, 1939, to any one agricultural commodity or the products thereof in such fiscal year, shall not exceed 25 per centum of the funds available under this section for such fiscal year. The sums appropriated under this section shall be devoted principally to perishable nonbasic agricultural commodities (other than those receiving price supports under title II of the Agricultural Act of 1949) 3 and their products. The sums appropriated under this section shall, notwithstanding the provisions of any other law, continue to remain available for the purposes of this section until expended; but any excess of the amount remaining unexpended at the end of any fiscal year over $300,000,000 shall, in the same manner as though it had been appropriated for the service of such fiscal year, be subject to the provisions of section 369 of the Revised Statutes (U.S.C., title 31, sec. 712), and section 54 of the Act entitled "An Act making appropriations for the legislative, executive, and judicial expenses of the Government for the year ending June thirtieth, eighteen hundred and seventy-five and for other purposes" (U.S.C., title 31, sec. 714).5 (7 U.S.C. 612c)

2 The Act of August 24, 1935, 49 Stat. 750, 774. Although this section has been amended a number of times, the purposes of Section 32—through payments or indemnities is to encourage the exportation and domestic consumption of agricultural commodities and products and to reestablish farmers' purchasing power in connection with the normal production of agricultural commodities-remains basically the same since February 29, 1936. Authority to encourage consumption of agricultural commodities and products by their utilization among persons in lowincome groups was added by amendment of clause (2) in 1939 (53 Stat. 975). Later amendments are noted.

Surplus agricultural commodities purchases under clause (2) may be donated for relief purposes and for use in nonprofit summer camps for children under the Act of June 28, 1937, and may be donated to schools and service institutions under section 9 and 13 of the National School Lunch Act, as amended, and section 8 of the Child Nutrition Act of 1966.

3 Section 205 of the Agricultural Act of 1956 authorized the appropriation for each fiscal year, beginning with the fiscal year ending June 30, 1957, of $500,000,000 to enable the Secretary of Agriculture to further carry out the provisions of Section 32, subject to all provisions of law relating to the expenditure of funds appropriated by such section, except that up to 50 percent of the $500,000,000 may be devoted during any fiscal year to any one agricultural commodity or the products thereof.

For the administration of sec. 32, not to exceed 4 percent of the total amount available for such section in any fiscal year may be used for that purpose under the limitation contained in sec. 392(b) of the Agricultural Act of 1938, as amended.

2 The clause within the parenthese was substituted for "other than those designated in title II of the Agricultural Act of 1949" by sec. 5 of the Act of Jan. 30, 1954, 68 Stat. 4.

3 This sentence was added by sec. 411 of the Agricultural Act of 1949, 63 Stat. 1057. 4 Superseded by the Act of July 6, 1949, 63 Stat. 407, 31 U.S.C. 712a, and the Act of July 25, 1956, 10 Stat. 647. as amended. 31 U.S.C. 701-708.

5 This sentence was added by sec. 301 of the Agricultural Act of 1948, July 3, 1948, 62 Stat. 1257. See sec. 392(b) of the Agricultural Adjustment Act of 1938, as amended, for limitation on administrative expenses.

SECTION 416-AGRICULTURAL ACT OF 1949

(Public Law 81-439)

DISPOSITION OF COMMODITIES TO PREVENT WASTE

4

SEC. 416.1 In order to prevent the waste of commodities whether in private stocks or acquired through price-support operations by

2 the Commodity Credit Corporation before they can be disposed of in normal domestic channels without impairment of the price-support program or sold abroad at competitive world prices, the Commodity Credit Corporation is authorized, on such terms and under such regulations as the Secretary of Agriculture may deem in the public interest: (1) upon application, to make such commodities available to any Federal agency for use in making payment for commodities not produced in the United States; (2) to barter or exchange such commodities for strategic or other materials as authorized by law; (3) in the case of food commodities to donate such commodities to the Bureau of Indian Affairs and to such State, Federal, or private agency or agencies as may be designated by the proper State or Federal authority and approved by the Secretary, for use in the United States in nonprofit school-lunch programs, in nonprofit summer camps for children,4 in the assistance of needy persons, and in charitable institutions, including hospitals, to the extent that needy persons are served. In the case of (3) the Secretary shall obtain such assurance as he deems necessary that the recipients thereof will not diminish their normal expenditures for food by reason of such donation. In order to facilitate the appropriate disposal of such commodities, the Secretary may from time to time estimate and announce the quantity of such commodities which he anticipates will become available for distribution under clause (3). The Commodity Credit Corporation may pay, with respect to commodities disposed of under this section, reprocessing, packaging, transporting, handling, and other charges accruing up to the time of their delivery to a Federal agency or to the designated State or private agency. In addition, in the case of food commodities disposed of under this section, the Commodity Credit Corporation may pay the cost of processing such commodities into a form suitable for home or institutional use, such processing to be accomplished through private trade facilities to the greatest extent possible.5 For the purpose of this section the terms “State” and "United States” include the District of Columbia and any Territory ‘ or possession of the United States. Dairy products acquired by the Commodity Credit Corporation through price support operations may, insofar as they can be used in the United States in nonprofit school lunch and other nonprofit child feeding programs, in the assistance of needy persons, and in charitable institutions, including hospitals, to the extent that needy persons are served, be donated for any such use prior to any other use or disposition (7 U.S.C. 1431).

1 The provisions of this section were substituted for the previous provisions by section 302 of the Agricultural Trade Development and Assistance Act of 1954, 68 Stat. 458. Šee section 9 of the Act of September 6, 1958, 72 Stat. 1792 (on p. 244), providing for distribution of commodities under section 416 to overseas areas under the jurisdiction or administration of the United States. This section was further amended Sept. 29, 1977, P.L. 95-113, sec. 1302 (a)(2), 91 Stat. 979.

The Food for Peace Act of 1966, Pub. L. 89-808, 80 Stat. 1538, approved November 11, 1966, deleted all references to foreign donations from section 416. Such deletions are effective January 1, 1967.

2 The words “whether in private stocks or” were added by the Act of July 24, 1959, 73 Stat. 250.

3 See Act of September 13, 1960, 74 Stat. 899 (p. 243) authorizing the use of surplus foods for training home economics students.

* The words “in nonprofit summer camps for children” were added by the Act of July 2, 1958, 72 Stat. 286. 5 This sentence was added by the Agricultural Act of 1956, 70 Stat. 203.

650 Stat. 223; February 16, 1938; 52 Stat. 31, 38; June 27, 1942, 56 Stat. 461.

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