Part

517

519

535

540

Fresh Irish potatoes.

Pilot food stamp program.

AUTHORITY: §§ 503.1 to 503.12 issued under R.S. 161, sec. 416, 63 Stat. 1058, as amended; 5 U.S.C. 22, 7 U.S.C. 1431. Interpret or apply sec. 32, 49 Stat. 774, as amended, secs. 6 and 9, 60 Stat. 231, 233, 76 Stat. 945, sec. 210, 70 Stat. 202, 72 Stat. 164, 287, 1792, 74 Stat. 899, 75 Stat. 411, 7 U.S.C. 612c, 42 U.S.C. 1755, 1758, P.L. 87-823, 7 U.S.C. 1859, 7 U.S.C. 1431 note.

SOURCE: §§ 503.1 to 502.12 appear at 28 F.R. 51, Jan. 3, 1963.

§ 503.1 General purpose and scope.

(a) Terms and conditions. This part contains the regulations prescribing the terms and conditions under which commodities may be obtained by Federal, State and private agencies for use in the United States in schools operating nonprofit school-lunch programs, in nonprofit summer camps for children, by needy Indians on reservations, in institutions, in State correctional institutions for minors, and in the assistance of other needy persons.

(b) Legislation. The legislation under which commodities are distributed for the stated purposes is as follows:

(1) Section 416 of the Agricultural Act of 1949, as amended (hereinafter referred to as "section 416"), which reads in part as follows:

In order to prevent the waste of commodities whether in private stocks or acquired through price-support operations by 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 may deem in the public interest (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, 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 (3) Commodity Credit Corporation may pay, with respect to commodities disposed of under this section, reprocessing, packaging, transportation, 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 the case of commodities made available for use within the United States * * 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. 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.

* The

(2) Section 210 of the Agricultural Act of 1956 (hereinafter referred to as "section 210"), which reads in part as follows:

Notwithstanding any other limitation as to the disposal of surplus commodities acquired through price-support operations, the Commodity Credit Corporation is authorized

on such terms and under such regulations as the Secretary of Agriculture may deem in the public interest, and upon application, to donate food commodities acquired through price-support operations to State correctional institutions for minors, other than those in which food service is provided for inmates on a fee, contract or concession basis.

(3) Section 32 of Public Law 320, 74th Congress, as amended (hereinafter referred to as "section 32"), which reads in part as follows:

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. Such sums shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to *** (2) encourage the domestic consumption of such [agricultural] commodities or products by diverting them *** from the normal channels of trade and commerce *

(4) Public Law 165, 75th Congress, as amended, which supplemented section 32 and reads in part as follows:

(5) Section 9 of the Act of September 6, 1958 which reads in part as follows:

Notwithstanding any other provision of law (1) those areas under the jurisdiction or administration of the United States are authorized to receive from the Department of Agriculture for distribution on the same basis as domestic distribution in any State, Territory, or possession of the United States, without exchange of funds, such surplus commodities as may be available pursuant to clause (2) of section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c), and section 416 of the Agricultural Act of 1949, as amended (7 U.S.C. 1431);

(6) Section 6 of the National School Lunch Act, as amended, (hereinafter referred to as "section 6"), which reads in part as follows:

The funds appropriated for any fiscal year for carrying out the provisions of this act, less not to exceed 32 per centum thereof hereby made available to the Secretary for his administrative expenses less the amount apportioned by him pursuant to sections 4, 5, and 10, and less the amount appropriated pursuant to section 11, shall be available to