INTEREST

[Department of Agriculture Appropriation Act, 1966—* * * To partially reimburse the Commodity Credit Corporation for net realized losses sustained but not previously reimbursed, pursuant to the Act of August 17, 1961 (15 U.S.C. 713a-11, 713a-12), $2,800,000,000: Provided, That after June 30, 1964, the portion of borrowings from Treasury equal to the unreimbursed realized losses recorded on the books of the Corporation after June 30 5a of the fiscal year in which such losses are realized, shall not bear interest and interest shall not be accrued or paid thereon. (November 2, 1965, 79 Stat. 1178.) (15 U.S.C. 713a-11a.)]

TAXATION

SEC. 5. Bonds, notes, debentures, and other similar obligations issued by the Commodity Credit Corporation under the provisions of this Act shall be deemed and held to be instrumentalities of the Government of the United States and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). The Commodity Credit Corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the Commodity Credit Corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. (15 U.S.C. 713a-5.) o

FEDERAL RESERVE BANKS AS FISCAL AGENTS

6

Act of July 16, 1943-SEC. 3. The Federal Reserve Banks are hereby authorized to act as depositories, custodians, and fiscal agents for the Commodity Credit Corporation. (57 Stat. 566; 12 U.S.C. 395.)

ADMINISTRATIVE EXPENSE LIMITATIONS

[See the Commodity Credit Corporation item in the AgricultureEnvironmental and Consumer Protection Programs Appropriation Act, 1973, 86 Stat. 591, approved August 22, 1972, and the similar items in previous appropriation acts. Section 104 of the Government Corporation Control Act (approved Dec. 6, 1945, 59 Stat. 597; 31 U.S.C. 841) provides for enactment of necessary appropriations making available corporate funds of each wholly owned Government corporation for administrative expenses or limiting the use thereof.]

5a "June 30" of the fiscal year is construed to mean September 30, by P.L. 94-274, 90 Stat. 392, April 21, 1976.

6 See P.L. 7, 77th Cong., 55 Stat. 9, Feb. 19, 1941, as amended by P.L. 510, 77th Cong., 56 Stat, 190, March 28, 1942, abolishing tax exemption for income from obligations issued or guaranteed by the United States or any agency or instrumentality thereof.

REIMBURSEMENT BY OTHER AGENCIES

Act of July 16, 1943-SEC. 4. Full reimbursement shall be made to the Commodity Credit Corporation for services performed, losses sustained, operating costs incurred, or commodities purchased or delivered to or on behalf of the Lend-Lease Administration, the Army or Navy, the Board of Economic Warfare, the Reconstruction Finance Corporation, or any other Government agency, from the appropriate funds of these agencies. (57 Stat. 566; 15 U.S.C. 713a-9.)

CROP INSURANCE AND CONSERVATION MATERIALS

The Agricultural Adjustment Act of 1938-SEC. 391 (c). (c) During each fiscal year, beginning with the fiscal year ending June 30, 1941, the Commodity Credit Corporation is authorized and directed to loan to the Secretary such sums, not to exceed $50,000,000, as he estimates will be required during such fiscal year, to make crop insurance premium advances and to make advances pursuant to the applicable provisions of sections 8 and 12 of the Soil Conservation and Domestic Allotment Act, as amended, in connection with programs applicable to crops harvested in the calendar year in which such fiscal year ends, and to pay the administrative expenses of county agricul tural conservation associations for the calendar year in which such fiscal year ends. The sums so loaned during any fiscal year shall be transferred to the current appropriation available for carrying out sections 7 to 17 of such Act and shall be repaid, with interest at a rate to be determined by the Secretary but not less than the cost of money to the Commodity Credit Corporation for a comparable period, during the succeeding fiscal year from the appropriation available for that year or from any unobligated balance of the appropriation for any other year. (7 U.Š.C. 1391 (c).)

COST OF CLASSING OR GRADING

Department of Agriculture Appropriation Act, 1950-*** On and after June 29, 1949, appropriations available for classing or grading any agricultural commodity without charge to the produc ers thereof may be reimbursed from nonadministrative funds of the Commodity Credit Corporation for the cost of classing or grading any such commodity for producers who obtain Commodity Credit Corporation price support. (June 29, 1949, 63 Stat. 324, 344, 7 U.S.C. 440.)

Department of Agriculture Appropriation Act. 1952- * * Hereafter there may be transferred to appropriations available for classing or grading any agricultural commodity without charge to the producers thereof such sums from nonadministrative funds of the Commodity Credit Corporation as may be necessary in addition to other funds available for these purposes, such transfers to be reimbursed from subsequent appropriations therefor. (Aug. 31, 1951, 65 Stat. 225, 239; 7 U.S.C. 414a.)

DOMESTIC FOOD ASSISTANCE PROGRAMS

(General authorities with respect to donations of food commodities are found in Part III, Subpart F entitled "Commodity Donations" on page 234.)

NATIONAL SCHOOL LUNCH ACT 1

AN ACT

To provide assistance to the States in the establishment, maintenance, operation and expansion of school-lunch programs, and for other purposes.

Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "National School Lunch Act." (42 U.S.C. 1751, note.)

DECLARATION OF POLICY

SEC. 2. It is hereby declared to be the policy of Congress, as a measure of national security, to safeguard the health and wellbeing of the Nation's children and to encourage the domestic consumption of nutritious agricultural commodities and other food, by assisting the States, through grants-in-aid and other means, in providing an adequate supply of foods and other facilities for the establishment, maintenance, operation, and expansion of nonprofit school-lunch programs. (42 U.S.C. 1751.)

APPROPRIATIONS AUTHORIZED

SEC. 3.2 For each fiscal year there is hereby authorized to be appropriated, out of money in the Treasury not otherwise appropriated, such sums as may be necessary to enable the Secretary of Agriculture (hereinafter referred to as "the Secretary") to carry out the provisions of this Act, other than sections 13, 17, and 19.2a Appropriations to carry out the provisions of this Act and of the Child Nutrition Act of 1966 for any fiscal year are authorized to be made a year in advance of the beginning of the fiscal year in which the funds will become available for disbursement to the States. Notwithstanding any other provision of law, any funds appropriated to carry out the provisions of such Acts shall remain available for the purposes of the Act for which appropriated until expended. (42 U.S.C. 1752.)

1P.L. 79-396, 60 Stat. 230, June 4, 1946. For other child feeding programs, see also the Child Nutrition Act of 1966, (p. 278) and section 416 of the Agricultural Act of 1949 (p. 192).

2 Section 3 was amended by P.L. 87-823, 76 Stat. 944, Oct. 15, 1962, to delete "beginning with the fiscal year ending June 30, 1947. following "fiscal year" and to add the phrase "other than section 11." The section was further amended by P.L. 90-302, 82 Stat. 117. May 8, 1968, to add the reference to section 13. The final two sentences were added by P.L. 91-248, 84 Stat. 207, May 14, 1970.

P.L. 93-326, 88 Stat. 287, June 30, 1974, substituted "13" for "11 and 13". P.L. 94-105, 89 Stat. 529, Oct. 7, 1975, substituted "13, 17, and 19" for "13".

To amend the National School Lunch Act to strengthen and expand food service programs for children, and for other purposes.

SEC. 1. *** Appropriations shall be considered Health, Education, and Welfare functions for budget purposes rather than functions of Agriculture. (42 U.S.C. 1752 note.)]

4

APPORTIONMENT TO STATES

SEC. 4. The sums appropriated for any fiscal year pursuant to the authorizations contained in section 3 of this Act, excluding the sum specified in section 5, shall be available to the Secretary for supplying agricultural commodities and other food for the program in accordance with the provisions of this Act. For each fiscal year the Secretary shall make food assistance payments, at such times as he may determine, from the sums appropriated therefor, to each State educational agency, in a total amount equal to the result obtained by multiplying the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under subsection 9(a) of this Act) served during such fiscal year to children in schools in such State, which participate in the school lunch program under this Act under agreements with such State educational agency, by a national average payment per lunch for such fiscal year determined by the Secretary to be necessary to carry out the purposes of this Act: Provided, That in any fiscal year such national average payment shall not be less than 10 cents per lunch and that the aggregate amount of the food assistance payments made by the Secretary to each State educational agency for any fiscal year shall not be less than the amount of the payments made by the State agency to participating schools within the State for the fiscal year ending June 30, 1972, to carry out the purposes of this section 4. (42 U.S.C. 1753.)

5

NONFOOD ASSISTANCE

SEC. 5. Of the sums appropriated for any fiscal year pursuant to the authorization contained in section 3 of this Act, $10,000,000 shall be available to the Secretary for the purpose of providing, during such fiscal year, non food assistance for the school-lunch program pursuant to the provisions of this Act. The Secretary shall apportion among the States during each fiscal year the aforesaid sum of $10,000,000, and such apportionment among the States shall be on the

3 P.L. 90-302, 82 Stat. 117.

4 Sec. 4 was substantially amended by P.L. 92-433, 86 Stat. 726, Sep. 26, 1972, effective July 1, 1973. The initial provisions for apportionment of funds among the States were amended by P.L. 82-518, 66 Stat. 591, July 12, 1952, to change apportionments to territories and possessions; P.L. 87-689, 76 Stat. 587, Sept. 25, 1962, to include American Samoa; and P.L. 87-823, 76 Stat. 944, Oct. 15, 1962, to change the apportionment factors, specify transitional formulas, and make several other changes.

5 P.L. 93-150, 87 Stat. 560, Nov. 7, 1973, substituted "10 cents per lunch" for "8 cents per lunch.' P.L. 92-433, 86 Stat. 725, Sept. 26, 1972, authorized payments to States in addition to apportioned funds, to provide an average rate of reimbursement of not less than 8 cents per meal within each State during the fiscal year 1973.

Sec. 5 was amended by P.L. 87-689, 76 Stat. 587, Sept. 25, 1962, to include American Samoa; and P.L. 87-823, 76 Stat. 945, Oct. 15, 1962, to delete a provision for apportionments for Puerto Rico, Guam, American Samoa, and the Virgin Islands.

basis of the factors, and in accordance with the standards, set forth in section 4 with respect to the apportionment for agricultural commodities and other foods. (42 U.S.C. 1754.)

8

DIRECT FEDERAL EXPENDITURES

SEC. 6. (a) The funds provided by appropriation or transfer from other accounts for any fiscal year for carrying out the provisions of this Act, and for carrying out the provisions of the Child Nutrition Act of 1966, other than section 3 thereof, less

(1) not to exceed 32 per centum thereof which per centum is hereby made available to the Secretary for his administrative expenses under this Act and under the Child Nutrition Act of 1966:

(2) the amount apportioned by him pursuant to sections 4 and 5 of this Act and the amount appropriated pursuant to sections 11 and 13 of this Act and sections 4, 5, and 7 of the Child Nutrition Act of 1966; and

(3) not to exceed 1 per centum of the funds provided for carrying out the programs under this Act and the programs under the Child Nutrition Act of 1966, other than section 3, which per centum is hereby made available to the Secretary to supplement the nutritional benefits of these programs through grants to States and other means for nutritional training and education for workers, cooperators, and participants in these programs and for necessary surveys and studies of requirements for food service programs in furtherance of the purposes expressed in section 2 of this Act and section 2 of the Child Nutrition Act of 1966,

shall be available to the Secretary during such year for direct expenditure by him for agricultural commodities and other foods to be distributed among the States and schools and service institutions participating in the food service programs under this Act and under the Child Nutrition Act of 1966 in accordance with the needs as determined by the local school and service institution authorities.8a 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 Act, also be applicable to expenditures of funds by the Secretary under this Act. In making purchases of such agricultural commodities and other foods, the Secretary shall not issue specifications which restrict participation of local producers unless such specifications will result

Sec. 6 was amended by P.L. 87-823, 76 Stat. 945, Oct. 15, 1962, to refer to Sec. 11; and P.L. 90-302, 82 Stat. 117, May 8, 1968, to refer to Sec. 13. P.L. 91-248, 84 Stat. 209, May 14, 1970, substituted the first sentence for provisions appearing earlier, adding, in particular, references to the Child Nutrition Act of 1966 and the use of funds for nutritional training and education and for surveys and studies.

This paragraph was designated subsection (a) by P.L. 93-13, 87 Stat. 10, March 30, 1973.

Sa See Sec. 404 of the Agricultural Act of 1949, as amended, authorizing the use of the services and facilities of Commodity Credit Corporation in carrying out programs under Sec 6.

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