Section 3A Commodity Distribution Reform Act and WIC Amendments

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COMMODITY DISTRIBUTION REFORM ACT AND
WIC AMENDMENTS OF 1987
[As Amended Through P.L. 110–246, Effective October 1, 2008]
TABLE OF CONTENTS
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7–1
October 1, 2008

1. Short title ....................................................................................
2. Statement of purpose; sense of Congress ....................................
3. Commodity distribution program reforms ...................................
3A. Advance funding for State option contracts .............................
4. Food bank project .......................................................................
5. Extension of eligibility of certain school districts to receive cash
or commodity letters of credit assistance for school
lunch programs .............................................................
6. Extension of national donated commodity processing programs
7. Assessment and report to Congress ............................................
8. Funds for nutrition services and administration ........................
9. Coordination of WIC program with medicaid counseling ...........
10. Study of medicaid savings for newborns from WIC program
11. Supplying infant formula for the WIC program .......................
12. Overspending and underspending under the WIC program .....
13. Authority to transfer commodities between programs ..............
14. Authority to resolve claims ........................................................
15. Payment of costs associated with removal of commodities that
pose a health or safety risk ...........................................
16. Authority to accept commodities donated by Federal sources
17. Commodity donations ................................................................
18. Definitions .................................................................................
19. General effective date ................................................................

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Sec. 1

COMMODITY DISTRIBUTION REFORM

7–2

AN ACT
To improve the distribution procedures for agricultural commodities
and their products donated for the purposes of assistance
through the Department of Agriculture, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ø7 U.S.C. 612c note¿ SHORT TITLE. 1–1

This Act may be cited as the ‘‘Commodity Distribution Reform
Act and WIC Amendments of 1987’’.
SEC. 2. ø7 U.S.C. 612c note¿ STATEMENT OF PURPOSE; SENSE OF
CONGRESS.

(a) STATEMENT OF PURPOSE.—It is the purpose of this Act to
improve the manner in which agricultural commodities acquired by
the Department of Agriculture are distributed to recipient agencies,
the quality of the commodities that are distributed, and the degree
to which such distribution reponds 2–1 to the needs of the recipient
agencies.
(b) SENSE OF CONGRESS.—It is the sense of Congress that the
distribution of commodities and products—
(1) should be improved as an effective means of removing
agricultural surpluses from the market and providing nutritious high-quality foods to recipient agencies;
(2) is inextricably linked to the agricultural support and
surplus removal programs; and
(3) is an important mission of the Secretary of Agriculture.
SEC. 3. ø7 U.S.C. 612c note¿ COMMODITY DISTRIBUTION PROGRAM
REFORMS.

(a) COMMODITIES SPECIFICATIONS.—
(1) DEVELOPMENT.—In developing specifications for commodities acquired through price support, surplus removal, and
direct purchase programs of the Department of Agriculture that
are donated for use for programs or institutions described in
paragraph (2), the Secretary shall—
(A) consult with the advisory council established under
paragraph (3);
(B) consider both the results of the information received from recipient agencies under subsection (f)(2) and
the results of an ongoing field testing program under subsection (g) in determining which commodities and products,
and in which form the commodities and products, should be
provided to recipient agencies; and
(C) give significant weight to the recommendations of
the advisory council established under paragraph (3) in ensuring that commodities and products are—
(i) of the quality, size, and form most usable by recipient agencies; and
(ii) to the maximum extent practicable, consistent
with the Dietary Guidelines for Americans published
by the Secretary of Agriculture and the Secretary of
Health and Human Services.
(2) APPLICABILITY.—Paragraph (1) shall apply to—
1–1 P.L.
2–1 So

October 1, 2008

100–237, 101 Stat. 1733, January 8, 1988.
in original. Probably should be ‘‘respond’’.

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COMMODITY DISTRIBUTION REFORM

Sec. 3

(A) the commodity distribution and commodity supplemental food programs established under sections 4(a) and
5 of the Agriculture and Consumer Protection Act of 1973
(7 U.S.C. 612c note);
(B) the program established under section 4(b) of the
Food Stamp Act of 1977 (7 U.S.C. 2013(b)); 3–1
(C) the school lunch, commodity distribution, and child
care food programs established under sections 6, 14, and 17
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1755, 1762a, and 1766);
(D) the school breakfast program established under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773);
(E) the donation of surplus commodities to provide nutrition services under section 311 of the Older Americans
Act of 1965 (42 U.S.C. 3030a); and
(F) to the extent practicable—
(i) the emergency food assistance program established under the Emergency Food Assistance Act of
1983 (Public Law 100–237; 7 U.S.C. 612c note); and
(ii) programs under which food is donated to charitable institutions.
(3) ADVISORY COUNCIL.—(A) The Secretary shall establish
an advisory council on the distribution of donated commodities
to recipient agencies. The Secretary shall appoint not less than
nine and not more than 15 members to the council, including—
(i) representatives of recipient agencies, including food
banks;
(ii) representatives of food processors and food distributors;
(iii) representatives of agricultural organizations;
(iv) representatives of State distribution agency directors; and
(v) representatives of State advisory committees.
(B) The council shall meet not less than semiannually with
appropriate officials of the Department of Agriculture and shall
provide guidance to the Secretary on regulations and policy development with respect to specifications for commodities.
(C) Members of the council shall serve without compensation but shall receive reimbursement for necessary travel and
subsistence expenses incurred by them in the performance of
the duties of the committee.
(D) The council shall report annually to the Secretary of
Agriculture, the Committee on Education and Labor 3–2 and the
Committee on Agriculture of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.
(E) The council shall expire on September 30, 1996.
3–1 Sec. 4001(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246;
122 Stat. XXXX; effective Oct. 1, 2008) changed the name of the Food Stamp Act of 1977
to the Food and Nutrition Act of 2008. Sec. 4002(c) of the Food, Conservation, and Energy
Act of 2008 provided that: ‘‘Any reference in any Federal, State, tribal, or local law (including regulations) to the ‘food stamp program’ established under the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to the ‘supplemental
nutrition assistance program’ established under that Act.’’. Subparagraph (B) should probably be amended to read ‘‘(B) the supplemental nutrition assistance program established
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);’’.
3–2 So in original. Probably should be ‘‘Committee on Education and the Workforce’’.

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Sec. 3

COMMODITY DISTRIBUTION REFORM

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(b) DUTIES OF SECRETARY WITH RESPECT TO PROVISION OF
COMMODITIES.— With respect to the provision of commodities to recipient agencies, the Secretary shall—
(1) before the end of the 270-day period beginning on the
date of the enactment of this Act [Jan. 8, 1988]—
(A) implement a system to provide recipient agencies
with options with respect to package sizes and forms of
such commodities, based on information received from such
agencies under subsection (f)(2), taking into account the
duty of the Secretary—
(i) to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation;
(ii) to purchase surplus agriculture commodities
through section 32 of the Agricultural Adjustment Act
(7 U.S.C. 601 et seq.); 3–3 and
(iii) to make direct purchases of agricultural commodities and other foods for distribution to recipient
agencies under—
(I) the commodity distribution and commodity
supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note);
(II) the program established under section 4(b)
of the Food Stamp Act of 1977 (7 U.S.C. 2013(b));
(III) the school lunch, commodity distribution,
and child care food programs established under
sections 6, 14, and 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755, 1762a,
and 1766);
(IV) the school breakfast program established
under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773); and
(V) the donation of surplus commodities to
provide nutrition services under section 311 of the
Older Americans Act of 1965 (42 U.S.C. 3030a);
and
(B) implement procedures to monitor the manner in
which State distribution agencies carry out their responsibilities;
(2) provide technical assistance to recipient agencies on the
use of such commodities, including handling, storage, and menu
planning and shall distribute to all recipient agencies suggested
recipes for the use of donated commodities and products (the
recipe cards shall be distributed as soon as practicable after the
date of enactment of this Act [Jan. 8, 1988] and updated on a
regular basis taking into consideration the Dietary Guidelines
for Americans published by the Secretary of Agriculture and
the Secretary of Health and Human Services, as in effect at the
time of the update of the recipe files);
(3) before the end of the 120-day period beginning on the
date of the enactment of this Act [Jan. 8, 1988], implement a
system under which the Secretary shall—
3–3 So in original. Probably should be ‘‘section 32 of the Act of August 24, 1935 (7 U.S.C.
612c)’’.

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COMMODITY DISTRIBUTION REFORM

Sec. 3

(A) make available to State agencies summaries of the
specifications with respect to such commodities and products; and
(B) require State agencies to make such summaries
available to recipient agencies on request;
(4) implement a system for the dissemination to recipient
agencies and to State distribution agencies—
(A) not less than 60 days before each distribution of
commodities by the Secretary is scheduled to begin, of information relating to the types and quantities of such commodities that are to be distributed; or
(B) in the case of emergency purchases and purchases
of perishable fruits and vegetables, of as much advance notification as is consistent with the need to ensure that
high-quality commodities are distributed;
(5) before the expiration of the 90-day period beginning on
the date of the enactment of this Act [Jan. 8, 1988], establish
procedures for the replacement of commodities received by recipient agencies that are stale, spoiled, out of condition, or not
in compliance with the specifications developed under subsection (a)(1), including a requirement that the appropriate
State distribution agency be notified promptly of the receipt of
commodities that are stale, spoiled, out of condition, or not in
compliance with the specifications developed under subsection
(a)(1);
(6) monitor the condition of commodities designated for donation to recipient agencies that are being stored by or for the
Secretary to ensure that high quality is maintained;
(7) establish a value for donated commodities and products
to be used by State agencies in the allocation or charging of
commodities against entitlements; and
(8) require that each State distribution agency shall receive
donated commodities not more than 90 days after such commodities are ordered by such agency, unless such agency specifies a longer delivery period.
(c) QUALIFICATIONS FOR PURCHASE OF COMMODITIES.—
(1) OFFERS FOR EQUAL OR LESS POUNDAGE.—Subject to compliance by the Secretary with surplus removal responsibilities
under other provisions of law, the Secretary may not refuse any
offer in response to an invitation to bid with respect to a contract for the purchase of entitlement commodities (provided in
standard order sizes) solely on the basis that such offer provides less than the total amount of poundage for a destination
specified in such invitation.
(2) OTHER QUALIFICATIONS.—The Secretary may not enter
into a contract for the purchase of entitlement commodities unless the Secretary considers the previous history and current
patterns of the bidding party with respect to compliance with
applicable meat inspection laws and with other appropriate
standards relating to the wholesomeness of food for human consumption.
(d) DUTIES OF STATE DISTRIBUTION AGENCIES.—On or before
July 1, 1992, the Secretary shall by regulation require each State
distribution agency to—
(1) evaluate its system for warehousing and distributing
donated commodities to recipient agencies designated in subOctober 1, 2008

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Sec. 3

COMMODITY DISTRIBUTION REFORM

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paragraphs (A) and (B) of section 13(3) (hereafter referred to in
this Act as ‘‘child and elderly nutrition program recipient agencies’’);
(2) in the case of State distribution agencies that require
payment of fees by child and elderly nutrition program recipient agencies for any aspect of warehousing or distribution, implement the warehousing and distribution system that provides
donated commodities to such recipient agencies in the most efficient manner, at the lowest cost to such recipient agencies, and
at a level that is not less than a basic level of services determined by the Secretary;
(3) in determining the most efficient and lowest cost system, use commercial facilities for providing warehousing and
distribution services to such recipient agencies, unless the
State applies to the Secretary for approval to use other facilities demonstrating that, when both direct and indirect costs incurred by such recipient agencies are considered, such other facilities are more efficient and provide services at a lower total
cost to such recipient agencies;
(4) consider the preparation and storage capabilities of recipient agencies when ordering donated commodities, including
capabilities of such agencies to handle commodity product
forms, quality, packaging, and quantities; and
(5) in the case of any such agency that enters into a contract with respect to processing of agricultural commodities and
their products for recipient agencies—
(A) test the product of such processing with the recipient agencies before entering into a contract for such processing; and
(B) develop a system for monitoring product acceptability.
(e) REGULATIONS.—
(1) IN GENERAL.—The Secretary shall provide by regulation
for—
(A) whenever fees are charged to local recipient agencies, the establishment of mandatory criteria for such fees
based on national standards and industry charges (taking
into account regional differences in such charges) to be
used by State distribution agencies for storage and deliveries of commodities;
(B) minimum performance standards to be followed by
State agencies responsible for intrastate distribution of donated commodities and products;
(C) procedures for allocating donated commodities
among the States; and
(D) delivery schedules for the distribution of commodities and products that are consistent with the needs of eligible recipient agencies, taking into account the duty of the
Secretary—
(i) to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation;
(ii) to purchase surplus agricultural commodities
through section 32 of the Act entitled ‘‘An Act to
amend the Agricultural Adjustment Act, and for other
purposes’’, approved August 24, 1935 (7 U.S.C. 612c);
and
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COMMODITY DISTRIBUTION REFORM

Sec. 3

(iii) to make direct purchases of agricultural commodities and other foods for distribution to recipient
agencies under—
(I) the commodity distribution and commodity
supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note);
(II) the program established under section 4(b)
of the Food Stamp Act of 1977 (7 U.S.C.
2013(b)) 3–4; and
(III) the school lunch, commodity distribution,
and child care food programs established under
sections 6, 14, and 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755, 1762a,
and 1766);
(IV) the school breakfast program established
under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773); and
(V) the donation of surplus commodities to
provide nutrition services under section 311 of the
Older Americans Act of 1965 (42 U.S.C. 3030a).
(2) TIME FOR PROMULGATION OF REGULATIONS.—The Secretary shall promulgate—
(A) regulations as required by paragraph (1)(D) before
the end of the 90-day period beginning on the date of enactment of this Act [Jan. 8, 1988]; and
(B) regulations as required by subparagraphs (A), (B),
and (C) of paragraph (1) before the end of the 270-day period beginning on such date.
(f) REVIEW OF PROVISION OF COMMODITIES.—
(1) IN GENERAL.—Before the expiration of the 270-day period beginning on the date of the enactment of this Act [Jan.
8, 1988], the Secretary shall establish procedures to provide for
systematic review of the costs and benefits of providing commodities of the kind and quantity that are suitable to the needs
of recipient agencies.
(2) INFORMATION FROM RECIPIENT AGENCIES.—
(A) IN GENERAL.—The Secretary shall ensure that information with respect to the types and forms of commodities that are most useful to persons participating in programs described in subsection (a)(2) is collected from recipient agencies operating the programs.
(B) FREQUENCY.—The information shall be collected at
least once every 2 years.
(C) ADDITIONAL SUBMISSIONS.—The Secretary shall
provide the recipient agencies a means for voluntarily submitting customer acceptability information.
(g) TESTING FOR ACCEPTABILITY.—The Secretary shall establish
an ongoing field testing program for present and anticipated com3–4 Sec. 4001(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246;
122 Stat. XXXX; effective Oct. 1, 2008) changed the name of the Food Stamp Act of 1977
to the Food and Nutrition Act of 2008. Sec. 4002(c) of the Food, Conservation, and Energy
Act of 2008 provided that: ‘‘Any reference in any Federal, State, tribal, or local law (including regulations) to the ‘food stamp program’ established under the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to the ‘supplemental
nutrition assistance program’ established under that Act.’’. Subclause (II) should probably
be amended to read ‘‘(II) the supplemental nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); and’’.

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Sec. 3A

COMMODITY DISTRIBUTION REFORM

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modity and product purchases to test product acceptability with
program participants. Test results shall be taken into consideration
in deciding which commodities and products, and in what form the
commodities and products, should be provided to recipient agencies.
(h) BUY AMERICAN PROVISION.—
(1) IN GENERAL.—The Secretary shall require that recipient
agencies purchase, whenever possible, only food products that
are produced in the United States.
(2) WAIVER.—The Secretary may waive the requirement established in paragraph (1)—
(A) in the case of recipient agencies that have unusual
or ethnic preferences in food products; or
(B) for such other circumstances as the Secretary considers appropriate.
(3) EXCEPTION.—The requirement established in paragraph
(1) shall not apply to recipient agencies in Alaska, Guam,
American Samoa, Puerto Rico, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands. The requirement
established in paragraph (1) shall apply to recipient agencies in
Hawaii only with respect to the purchase of pineapples.
(i) UNIFORM INTERPRETATION.—The Secretary shall take such
actions as are necessary to ensure that regional offices of the Department of Agriculture interpret uniformly across the United
States policies and regulations issued to implement this section.
(j) PER MEAL VALUE OF DONATED FOODS.— 3–5
(k) REPORT.—Not later than January 1, 1989, the Secretary
shall submit to the Committee on Education and Labor 3–6 and the
Committee on Agriculture of the House of Representatives and to
the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the implementation and operation of this section.
SEC. 3A. ø7 U.S.C. 612c note¿ ADVANCE FUNDING FOR STATE OPTION
CONTRACTS.

(a) IN GENERAL.—The Secretary may use the funds of the Commodity Credit Corporation and funds made available to carry out
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) to pay for
all or a portion of the cost, as agreed on with the State distribution
agency, of food or the processing or packaging of food on behalf of
a State distribution agency.
(b) REIMBURSEMENT.—In such cases, the State distribution
agency shall reimburse the Secretary for the agreed on cost. Any
funds received by the Secretary as reimbursement shall be deposited to the credit of the Commodity Credit Corporation or section
32 of the Act of August 24, 1935 (7 U.S.C. 612c), as appropriate.
If the State distribution agency fails, within 150 days of delivery,
to make the required reimbursement in full, the Secretary shall,
within 30 days, offset any outstanding amount against the appropriate account.
SEC. 4. ø7 U.S.C. 612c note¿ FOOD BANK PROJECT.

(a) COMMUNITY FOOD BANKS.—The Secretary shall carry out no
less than one demonstration project to provide and redistribute agricultural commodities and food products thereof as authorized
under section 32 of the Act entitled ‘‘An Act to amend the Agricultural Adjustment Act, and for other purposes’’, approved August 24,
1935 (7 U.S.C. 612c), to needy individuals and families through
3–5 Sec.
3–6 So

October 1, 2008

3(j) added sec. 6(e)(2) of the National School Lunch Act (42 U.S.C. 1755(e)(2)).
in original. Probably should be ‘‘Committee on Education and the Workforce’’.

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COMMODITY DISTRIBUTION REFORM

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community food banks. The Secretary may use a State agency or
any other food distribution system for such provision or redistribution of section 32 agricultural commodities and food products
through community food banks under a demonstration project.
(b) RECORDKEEPING AND MONITORING.—Each food bank participating in the demonstration projects under this section shall establish a recordkeeping system and internal procedures to monitor the
use of agricultural commodities and food products provided under
this section. The Secretary shall develop standards by which the
feasibility and effectiveness of the projects shall be measured, and
shall conduct an ongoing review of the effectiveness of the projects.
(c) DETERMINATION OF QUANTITIES, VARIETIES, AND TYPES OF
COMMODITIES.—The Secretary shall determine the quantities, varieties, and types of agricultural commodities and food products to be
made available under this section.
(d) EFFECTIVE PERIOD.—This section shall be effective for the
period beginning on the date of enactment of this Act [Jan. 8,
1988[.
[(e) PROGRESS REPORTS.— 4–4]
SEC. 5. EXTENSION OF ELIGIBILITY OF CERTAIN SCHOOL DISTRICTS TO RECEIVE CASH OR COMMODITY LETTERS OF
CREDIT ASSISTANCE FOR SCHOOL LUNCH PROGRAMS. 5–1
SEC. 6. EXTENSION OF NATIONAL DONATED COMMODITY PROCESSING PROGRAMS. 6–1
SEC. 7. ø7 U.S.C. 612c note¿ ASSESSMENT AND REPORT TO CONGRESS.

(a) ASSESSMENT.—The Comptroller General of the United
States shall monitor and assess the implementation by the Secretary of the provisions of this Act.
(b) REPORT.—Before the expiration of the 18-month period beginning on the date of the enactment of this Act [Jan. 8, 1988], the
Comptroller General shall submit to the Committee on Education
and Labor 7–1 and the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report of the findings of the assessment
conducted as required by subsection (a).
SEC. 8. FUNDS FOR NUTRITION SERVICES AND ADMINISTRATION.

(a) IN GENERAL.— 8–1
(b) STATE PLAN OR PLAN AMENDMENT.— 8–2
(c) STUDY OF NUTRITION SERVICES AND ADMINISTRATION FUNDING.—The Secretary shall conduct a study of the appropriateness of
the percentage of the annual appropriation for the program required by paragraph (h)(1) of this section to be made available for
State and local agency costs for nutrition services and administration, and shall report the results of this study to the Congress not
later than March 1, 1989. Such study shall include an analysis of
the impact in future years on per participant administrative costs
if a substantial number of States implement competitive bidding,
4–4 Sec. 1773(e)(4) of the Food, Agriculture, Conservation, and Trade Act of 1990, P.L.
101–624, 104 Stat. 3811, Nov. 28, 1990, struck ‘‘paragraph’’ (e).
5–1 Sec. 5 added sec. 18(e) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769(e)).
6–1 Sec. 6 amended sec. 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C.
1431e(a)(2)(A)).
7–1 So in original. Probably should be ‘‘Committee on Education and the Workforce’’.
8–1 Sec. 8(a) added sec. 17(h)(5) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(5)).
8–2 Sec. 8(b) added sec. 17(f)(1)(C)(viii) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(f)(1)(C)(viii)).

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COMMODITY DISTRIBUTION REFORM

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rebate, direct distribution, or home delivery systems and shall examine the impact of the percentage provided for nutrition services
and administration on the quality of such services.
(d) EFFECTIVE DATE.—The amendment made by subsections (a),
(b), and (c) shall take effect October 1, 1987.
SEC. 9. COORDINATION OF WIC PROGRAM WITH MEDICAID COUNSELING. 9–1
SEC. 10. ø42 U.S.C. 1786 note¿ STUDY OF MEDICAID SAVINGS FOR
NEWBORNS FROM WIC PROGRAM.

(a) STUDY.—The Secretary of Agriculture in consultation with the
Secretary of Health and Human Services shall conduct a national
study of savings in the amount of assistance provided to families
with newborns under State plans for medical assistance approved
under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.)
and State indigent health care programs, during the first 60-day
period after birth, as the result of the participation of mothers of
newborns before birth in the special supplemental food program authorized under section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786).
(b) REPORT.—Not later than February 1, 1990, the Secretary shall
submit to Congress a report that describes the results of the study
conducted under subsection (a).
(c) FUNDING.—This section shall be carried out using funds made
available under section 17(g)(3) of the Child Nutrition Act of 1966.
SEC. 11. SUPPLYING INFANT FORMULA FOR THE WIC PROGRAM. 11–1
SEC. 12. OVERSPENDING AND UNDERSPENDING UNDER THE WIC
PROGRAM. 12–1
SEC. 13. ø7 U.S.C. 612c note¿ AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS. 13–1

(a) TRANSFER.—Subject to subsection (b), the Secretary may
transfer any commodities purchased with appropriated funds for a
domestic food assistance program administered by the Secretary to
any other domestic food assistance program administered by the
Secretary if the transfer is necessary to ensure that the commodities will be used while the commodities are still suitable for human
consumption.
(b) REIMBURSEMENT.—The Secretary shall, to the maximum extent practicable, provide reimbursement for the value of the commodities transferred under subsection (a) from accounts available
for the purchase of commodities under the program receiving the
commodities.
(c) CREDITING.—Any reimbursement made under subsection (b)
shall—
(1) be credited to the accounts that incurred the costs when
the transferred commodities were originally purchased; and
(2) be available for the purchase of commodities with the
same limitations as are provided for appropriated funds for the
reimbursed accounts for the fiscal year in which the transfer
takes place.
9–1 Sec. 9 amended sec. 17(f)(1)(C)(iii) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(f)(1)(C)(iii)).
11–1 Sec. 11 added sec. 17(f)(16) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(16)).
12–1 Sec. 12 added sec. 17(i)(3)(C) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(i)(3)(C)).
13–1 Sec. 13 added by sec. 302(2) of the William F. Goodling Child Nutrition Reauthorization Act of 1988, P.L. 105–336, 112 Stat. 3168, Oct. 31, 1988. For execution of subsequent
amendment to sec. 18 (vs. this section), see footnote 18–1.

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Sec. 16

SEC. 14. ø7 U.S.C. 612c note¿ AUTHORITY TO RESOLVE CLAIMS.

(a) IN GENERAL.—The Secretary may determine the amount of,
settle, and adjust all or part of a claim arising under a domestic
food assistance program administered by the Secretary.
(b) WAIVER.—The Secretary may waive a claim described in
subsection (a) if the Secretary determines that a waiver would serve
the purposes of the program.
(c) AUTHORITY OF THE ATTORNEY GENERAL.—Nothing in this
section diminishes the authority of the Attorney General under section 516 of title 28, United States Code, or any other provision of
law, to supervise and conduct litigation on behalf of the United
States.
SEC. 15. ø7 U.S.C. 612c note¿ PAYMENT OF COSTS ASSOCIATED WITH
REMOVAL OF COMMODITIES THAT POSE A HEALTH OR
SAFETY RISK.

(a) IN GENERAL.—The Secretary may use funds available to
carry out section 32 of the Act of August 24, 1935 (49 Stat. 774,
chapter 641; 7 U.S.C. 612c), that are not otherwise committed, for
the purpose of reimbursing States for State and local costs associated with the removal of commodities distributed under any domestic food assistance program administered by the Secretary if the
Secretary determines that the commodities pose a health or safety
risk.
(b) ALLOWABLE COSTS.—The costs—
(1) may include costs for storage, transportation, processing, and destruction of the commodities described in subsection (a); and
(2) shall be subject to the approval of the Secretary.
(c) REPLACEMENT COMMODITIES.—
(1) IN GENERAL.—The Secretary may use funds described in
subsection (a) for the purpose of purchasing additional commodities if the purchase will expedite replacement of the commodities described in subsection (a).
(2) RECOVERY.—Use of funds under paragraph (1) shall not
restrict the Secretary from recovering funds or services from a
supplier or other entity regarding the commodities described in
subsection (a).
(d) CREDITING OF RECOVERED FUNDS.—Funds recovered from a
supplier or other entity regarding the commodities described in subsection (a) shall—
(1) be credited to the account available to carry out section
32 of the Act of August 24, 1935 (49 Stat. 774, ch. 641; 7 U.S.C.
612c), to the extent the funds represent expenditures from that
account under subsections (a) and (c); and
(2) remain available to carry out the purposes of section 32
of that Act until expended.
SEC. 16. ø7 U.S.C. 612c note¿ AUTHORITY TO ACCEPT COMMODITIES
DONATED BY FEDERAL SOURCES.

(a) IN GENERAL.—The Secretary may accept donations of commodities from any Federal agency, including commodities of another Federal agency determined to be excess personal property
pursuant to section 202(d) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483(d)).
(b) USE.—The Secretary may donate the commodities received
under subsection (a) to States for distribution through any domestic
food assistance program administered by the Secretary.
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7–12

(c) PAYMENT.—Notwithstanding section 202(d) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
483(d)), the Secretary shall not be required to make any payment
in connection with the commodities received under subsection (a).
SEC. 17. COMMODITY DONATIONS.

(a) IN GENERAL.—Notwithstanding any other provision of law
concerning commodity donations, any commodities acquired in the
conduct of the operations of the Commodity Credit Corporation and
any commodities acquired under section 32 of the Act of August 24,
1935 (7 U.S.C. 612c), to the extent that the commodities are in excess of the quantities of commodities that are essential to carry out
other authorized activities of the Commodity Credit Corporation
and the Secretary (including any quantity specifically reserved for
a specific purpose), may be used for any program authorized to be
carried out by the Secretary that involves the acquisition of commodities for use in a domestic feeding program, including any program conducted by the Secretary that provides commodities to individuals in cases of hardship.
(b) PROGRAMS.—A program described in subsection (a) includes
a program authorized by—
(1) the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.);
(2) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.);
(3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
(4) the Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.); or
(5) such other laws as the Secretary determines to be appropriate.
SEC. 18. ø7 U.S.C. 612c note¿ DEFINITIONS.

For purposes of this Act:
(1) The term ‘‘donated commodities’’ means agricultural
commodities and their products that are donated by the Secretary to recipient agencies.
(2) The term ‘‘entitlement commodities’’ means agricultural
commodities and their products that are donated and charged
by the Secretary against entitlements established under programs authorized by statute to receive such commodities.
(3) The term ‘‘recipient agency’’ means—
(A) a school, school food service authority, or other
agency authorized under the Richard B. Russell National
School Lunch Act 18–1 [(42 U.S.C. 1751 et seq.)] or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to operate
breakfast programs, lunch programs, child care food programs, summer food service programs, or similar programs
and to receive donations of agricultural commodities and
their products acquired by the Secretary through price support, surplus removal, or direct purchase;
(B) a nutrition program for the elderly authorized
under title III of the Older Americans Act of 1965 (42
U.S.C. 3021 et seq.) to receive donations of agricultural
18–1 Sec.
752(b)(1) of the Agriculture, Rural Development, Food and Drug
Admininstration, and Related Agencies Appropriations Act, 2000, P.L. 106–78, 113 Stat.
1169, Oct. 22, 1999, amended ‘‘Section 3 and 13(3)(A)’’ of this Act by striking ‘‘National
School Lunch Act’’ and inserting ‘‘Richard B. Russell National School Lunch Act’’. The
amendment was executed to sec. 17(3)(A) (subsequently redesignated to section 18(3)(A))
as the probable intent of Congress, since no sec. 13(3)(A) existed.

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Sec. 19

commodities and their products acquired by the Secretary
through price support, surplus removal, or direct purchase;
(C) an agency or organization distributing commodities
under the commodity supplemental food program established in section 4 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note);
(D) any charitable institution, summer camp, or assistance agency for the food distribution program on Indian
reservations authorized under section 4 of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c note)
to receive donations of agricultural commodities and their
products acquired by the Secretary through price support,
surplus removal, or direct purchase; or
(E) an agency or organization distributing commodities
under a program established in section 202 of the Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note). 18–2
(4) The term ‘‘State distribution agency’’ means a State
agency responsible for the intrastate distribution of donated
commodities.
(5) The term ‘‘Secretary’’ means Secretary of Agriculture,
unless the context specifies otherwise.
SEC. 19. ø7 U.S.C. 612c note¿ GENERAL EFFECTIVE DATE.

Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on the date of the
enactment of this Act [Jan. 8, 1988].

18–2 So

October 1, 2008

in original. Probably should be ‘‘(7 U.S.C. 7502)’’.