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OTHER PRINCIPAL STATUTES HAVING APPLICABILITY TO

COMMODITY CREDIT CORPORATION

Government Corporation Control Act, as amended (Dec. 6, 1945; 31 U.S.C. 841 et seq.).

Sections 217 and 1026 of the U.S. Criminal Code (June 25, 1948, 62 Stat. 696, 755; October 23, 1962, 76 Stat. 1125; 18 U.S.C. 217, 1026) providing penalties for acceptance of fees or knowingly making false statements in connection with cancellation of farm indebtedness.

Act of July 16, 1947, as amended (61 Stat. 308; 71 Stat. 464; 31 U.S.C. 132), requiring withdrawal of the amount of all checks, which have not been paid prior to the close of the fiscal year next following the fiscal year in which issued, from the account of designated depositories and deposit of the amount with the Treasurer of the United States for credit to a consolidated account.

Section 9 (c) of the Act of August 2, 1946 (41 U.S.C. 5), providing that the bid procedure set out in section 3709, Revised Statutes as amended (41 U.S.C. 5), shall apply only to the administrative transactions of wholly owned Government corporations.

Independent Offices Appropriation Act, 1950 (Aug. 24, 1949, 63 Stat. 631, 662; 31 U.S.C. 870), authorizing corporations subject to the Government Corporation Control Act to consolidate into one or more accounts for banking and checking purposes all cash, including amount appropriated, from whatever source derived.

Sec. 1415 of the Supplemental Appropriation Act, 1953 (July 15, 1952, 66 Stat. 637, 662; 31 U.S.C. 724), utilization of foreign credits authorized in general appropriation acts.

Sec. 507 of General Government Matters, Department of Commerce, and Related Agencies Appropriation Act, 1962 (August 3, 1961, 75 Stat. 268, 283; 40 U.S.C. 33a), relating to purchase or construction of, or loans on office buildings by government corporations. Small Business Act, as amended (15 U.S.C. 631 et seq.). Civil Rights Act of 1964 (July 2, 1964, 78 Stat. 241).

Sec. 286b (b) (3) of Title 22, U.S.C., provides that the National Advisory Council on International Monetary and Financial Problems shall be consulted by Government agencies in the making of foreign loans or in engaging in foreign financial, exchange or monetary transactions.

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.

28 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".

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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.)]

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.)

FOOD SERVICE EQUIPMENT ASSISTANCE 5a

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, food service equipment assistance sa for the schoollunch 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

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 Ameri can 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.

5a P.L. 95-166, 91 Stat. 1332, Nov. 10, 1977, substituted the term "food service equip ment assistance" for "nonfood assistance."

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.

shall be on the 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.)

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 312 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, for pilot projects and the cash-in-lieu of commodities study required to be carried out under section 20 of this Act, 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 Any school participating in food service programs under this Act may refuse to accept delivery of not more than 20 percent of the total value of agricultural commodities and other foods tendered to it in any school year; and if a school so refuses, that school may receive, in lieu of the refused commodities, other commodities to the extent that other com

7 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 appearinr 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. P.L. 95-166, 91 Stat. 1335, 1336, Nov. 10, 1977, added the choice of commodities option for not more than 20% of commodities tendered to a school and the authorization of funds for pilot projects and studies under the new section 20 of this Act.

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

8a 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.

modities are available to the State during that year. The prov
sions of law contained in the proviso of the Act of June 28, 19
(50 Stat. 323), facilitating operations with respect to the pu
chase and disposition of surplus agricultural commodities und
section 32 of the Act approved August 24, 1935 (49 Stat. 774
as amended, shall, to the extent not inconsistent with the prov
sions of this Act, also be applicable to expenditures of funds
the Secretary under this Act. In making purchases of such agi
cultural commodities and other foods, the Secretary shall n
issue specifications which restrict participation of local pr
ducers unless such specifications will result in significant a
vantages to the food service programs authorized by this Ar
and the Child Nutrition Act of 1966.sb

(b) se Not later than May 15 of each school year, the Secretary sha make an estimate of the value of agricultural commodities and othe foods that will be delivered during that school year to States fo the school lunch program. If such estimated value is less than th total level of assistance authorized under subsection (e) of this sec tion, the Secretary shall pay to each State educational agency, no later than June 15 of that school year, an amount of funds that equal to the difference between the value of such deliveries as the programed for such State and the total level of assistance authorize under subsection (e) of this section. In any State in which the Secre tary directly administers the school lunch program in any of th. schools of the State, the Secretary shall withhold from the funds t be paid to such State under the provisions of this subsection a amount that bears the same ratio to the total of such payment as th number of lunches served in schools in which the school lunch pro gram is directly administered by the Secretary during that schoo year bears to the total of such lunches served under the school lunch program in all the schools in such State in such school year. Each State educational agency, and the Secretary in the case of privat schools in which the Secretary directly administers the school lunch program, shall promptly and equitably disburse such funds to school participating in the school lunch program, and such disbursement shall be used by such schools to purchase United States agricultura commodities and other foods for their food service program. Such foods shall be limited to the requirements for lunches and breakfasts. for children as provided for in regulations issued by the Secretary. (c) sd Notwithstanding any other provision of law, the Secretary until such time as a supplemental appropriation may provide addi tional funds for the purpose of subsection (b) of this section, shall use funds appropriated by section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) to make any payments to States authorized under such subsection. Any section 32 funds utilized to make such payments. shall be reimbursed out of any supplemental appropriation here

8d

8b This sentence was added by P.L. 94-105, 89 Stat. 515, Oct. 7, 1975.

sc This subsection was completely revised by P.L. 95-166, 91 Stat. 1334. Nov. 10, 1977 8d These subsections were substituted by P.L. 93-150, 87 Stat. 562, 563, Nov. 7. 1973. for similar provisions, effective for the fiscal year 1973, added to Sec. 6 by P.L. 93-13. 87 Stat. 10, 11, March 30, 1973. P.L. 94-105. 89 Stat. 511, Oct. 7. 1975, deleted references to "nonprofit private" schools in subsection b.

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