KF27 CONTENTS H.R. 12805, a bill to provide a special milk program for children. H.R. 12907, a bill to provide a permanent special milk program for children H.R. 13361, a bill to establish a cooperative Federal-State child nutrition program under the direction of the Department of Agriculture_ Bennett, Hon. Charles E., a Representative in Congress from the Dechant, Tony T., president, National Farmers Union.. Freeman, Hon. Orville L., Secretary of Agriculture__ Graham, Harry L., legislative representative, National Grange_ Gunderson, Gordon W., chairman, legislative committee, American Stalbaum, Hon. Lynn E., a Representative in Congress from the Stratton, Hon. Samuel S., a Representative in Congress from the Thomson, Hon. Vernon W., a Representative in Congress from the Widnall, Hon. William B., a Representative in Congress from the York, John C., general manager, Eastern Milk Producers Coopera- Correspondence submitted to the committee: Ashby, Rodney A., administrator, School Food Services, letter of McDonald, Mrs. Grace, executive secretary, California Farmer-Con- Paul, Chas., director, California Department of Agriculture, letter of CHILD NUTRITION ACT AND SPECIAL MILK PROGRAM FOR CHILDREN THURSDAY, JUNE 23, 1966 HOUSE OF REPRESENTATIVES, The committee met, pursuant to notice, at 11:30 a.m., in room 1301, Longworth House Office Building, Washington, D.C., the Honorable Harold D. Cooley (chairman) presiding. Present: Representatives Cooley, Poage, Gathings, Abernethy, Abbitt, Hagen of California, Stubblefield, Purcell, Olson, Matsunaga, O'Neal, Foley, Stalbaum, de la Garza, Vigorito, Redlin, Greigg, Callan, Dague, Belcher, Teague of California, Quie, Mrs. May, Findley, Dole, and Hansen of Idaho Also present: Christine S. Gallagher, clerk; John J. Heimburger, general counsel; Hyde H. Murray, assistant clerk; Martha Hannah, staff; Francis LeMay, consultant; and Fowler C. West, staff. The CHAIRMAN. The committee will be in order, please. Let's be off the record for a moment. (Discussion was had outside the record.) The CHAIRMAN. We have before us this morning H.R. 13361, and bills extending or making permanent the special milk program for children. These will be made a part of the record at this point. (H.R. 13361, introduced by Mr. Cooley, follows:) [H.R. 13361, 89th Cong., 2d sess.] A BILL To establish a cooperative Federal-State child nutrition program under the direction of the Department of Agriculture Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Child Nutrition Act of 1966". DECLARATION OF PURPOSE SEC. 2. In recognition of the demonstrated relationship between food and good nutrition and the capacity of children to develop and learn, based on the years of cumulative successful experience under the national school lunch program with its significant contributions in the field of applied nutrition research, it is hereby declared to be the policy of Congress that these efforts shall be extended, expanded, and strengthened as a measure to safeguard the health and well being of the Nation's children, with special effort directed toward improving the nutrition of children from low-income families, and to encourage the domestic consumpation of agricultural and other foods, by assisting States, through grants-in-aid and other means, to meet more effectively the nutritional needs of our children. 1 TITLE I-NATIONAL SCHOOL LUNCH AND CHILD NUTRITION PROGRAM AUTHORIZATION SEC. 101. The Secretary shall formulate and carry out a national school lunch and child nutrition program to assist States, through grants-in-aid and other means, to establish, maintain, and expand nonprofit school food service programs for children. APPORTIONMENTS TO STATES SEC. 102. (a) The Secretary shall apportion among the States during each fiscal year not less than 75 per centum of the funds appropriated for the purposes of this title, excluding section 107, for such year for obtaining agricultural and other foods. Apportionment among the States shall be made on the basis of two factors: (1) the participation rate for the State, and (2) the assistance need rate for the State. The amount of apportionment to any State shall be determined by the following method: First, determine an index for the State by multiplying factors (1) and (2); second, divide this index by the sum of the indexes for all the States; and third, apply the figure thus obtained to the total funds to be apportioned. If any State cannot utilize all funds so apportioned to it, or if additional funds are made available for apportionment under this section among the States, the Secretary shall make further apportionments to the remaining States in the same manner. Notwithstanding the foregoing provisions of this section, for the fiscal year beginning July 1, 1966, the amount apportioned to American Samoa shall be $25,000, which amount shall be first deducted from the funds available for apportionment in determining the amounts to be apportioned to the other States. (b) Funds apportioned to any State under section 102 for any fiscal year shall be available for payment to such State for disbursement by the State educational agency, for the purpose of assisting schools in that State in obtaining agricultural and other foods for consumption by children during such fiscal year. Payments to any State of funds so apportioned in any fiscal year shall be made upon condition that each dollar will be matched by three dollars from sources within the State determined by the Secretary to have been expended in connection with the program under this title. In the case of any State whose per capita income is less than the per capita income of the United States, the matching required for any fiscal year shall be decreased by the percentage which the State per capita income is below the per capita income of the United States. For the purpose of determining whether the match ing requirements of this section and section 106, respectively, have been met, the reasonable value of donated services, supplies, facilities, and equipment as certified, respectively, by the State educational agency and, in case of schools receiving funds pursuant to section 106, by such schools (but not the cost or value of land, or of the acquisition, construction, or alteration of buildings or of commodities donated by the Secretary, or of Federal contributions), may be regarded as funds from sources within the State expended in connection with the program under this title. DIRECT FEDERAL EXPENDITURES SEC. 103. The funds appropriated for any fiscal year for carrying out the provisions of this title, excluding section 107, less not to exceed 32 per centum thereof hereby made available to the Secretary for his administrative expenses under this Act, less the amount apportioned by him pursuant to sections 102 and 106, shall be available to the Secretary during such year for direct expenditure by him for agricultural and other foods to be distributed among the States and schools participating in the program under this title in accordance with the needs as determined by the local school authorities. The provisions of law contained in the proviso of the Act of June 28, 1937 (50 Stat. 323), facilitating operations with respect to the purchase and disposition of surplus agricultural commodities under section 32 of the Act approved August 24, 1935 (49 Stat. 774), as amended, shall to the extent not inconsistent with the provisions of this title, also be applicable to expenditures of funds by the Secretary under this title. STATE DISBURSEMENT TO SCHOOLS SEC. 104. Funds apportioned under section 102 and paid to any State shall be disbursed by the State educational agency to those schools in the State which the State educational agency, taking into account need and attendance, determines are eligible to participate in the program under this title. Disbursement to any school shall be made only for the purpose of reimbursing it for the cost of obtaining agricultural and other foods for consumption by children in the program. Such food costs may include, in addition to the purchase price of agricultural and other foods, the cost of processing, distributing, transporting, storing, and handling. In no event shall such disbursement for food to any school for any fiscal year exceed an amount determined by multiplying the number of lunches served in the school in the program under this title during such year by the maximum Federal food-costdistribution rate for the State, for the type of lunch served, as prescribed by the Secretary for schools other than those receiving special assistance under section 107. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS SEC. 105. Lunches served by schools participating in the program under this title shall consist of a combination of foods and shall meet minimum nutritional requirements prescribed by the Secretary on the basis of tested nutritional research. Such meals shall be served without cost or at a reduced cost to children who are determined by local school authorities to be unable to pay the full cost of the lunch. In making such determinations, such local authorities should, to the extent practicable, consult with public welfare and health agencies. No physical segregation of or other discrimination against any child shall be made by the school because of his inability to pay. NONPROFIT PRIVATE SCHOOLS SEC. 106. If in any State the State educational agency is not permitted by law to disburse the funds paid to it under this title to nonprofit private schools in the State, or is not permitted by law to match Federal funds made available for use by such nonprofit private schools, the Secretary shall withhold from the funds apportioned to any such State under section 102 of this title an amount which bears the same ratio to such funds as the number of lunches, consisting of a combination of foods and meeting the minimum requirements prescribed by the Secretary pursuant to section 105, served in the preceding fiscal year by all nonprofit private schools participating in the program under this title within the State, as determined by the Secretary, bears to the participation rate for the State. The Secretary shall disburse the funds so withheld directly to the nonprofit private schools within such State for the same purposes and subject to the same conditions as are required of a State educational agency disbursing funds made available under section 102 of this title, including the requirement that any such payment or payments shall be matched, in the proportion specified in section 102(b) of this title for such State, by funds from sources within the State expended by nonprofit private schools within the State participating in the program under this title. Such funds shall not be considered a part of the funds constituting the matching funds under section 102(b) of this title. SPECIAL ASSISTANCE SEC. 107. (a) The Secretary shall, with funds appropriated for special assistance under this section, provide such assistance to schools drawing attendance from areas in which poor economic conditions exist, for the purpose of helping such schools meet the requirements of section 105 of this title with respect to the service of lunches to children unable to pay the full cost of such lunches. (b) Of the sums available for the purposes of this section for any fiscal year, 3 per centum shall be available for apportionment to Puerto Rico, the Virgin Islands, Guam, and American Samoa. Of the funds available for such States, the Secretary shall apportion to each such State an amount which bears the same ratio to the total of such funds as the number of free or reduced-price lunches served in accordance with section 105 of this title in such State in the preceding fiscal year bears to the total number of such free or reduced-price lunches served in all such States in the preceding fiscal year: Provided, That for the fiscal year ending June 30, 1967, $5,000 shall be apportioned to American Samoa, which amount shall be first deducted from the total amount available for apportionment under this subsection. If any such State cannot utilize all of the funds apportioned to it for the purpose of this section the Secretary shall make further apportionment, on the same basis as the initial apportionment, to any of the other such States which justify the need for additional funds for such purpose. (c) Of the remaining sums appropriated for the purposes of this section for any fiscal year, not less than 50 per centum shall be apportioned among States, other than Puerto Rico, the Virgin Islands, Guam, and American Samoa, on the |