[Federal Register Volume 61, Number 133 (Wednesday, July 10, 1996)]
[Notices]
[Pages 36348-36349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17519]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 61, No. 133 / Wednesday, July 10, 1996 / 
Notices  

[[Page 36348]]



DEPARTMENT OF AGRICULTURE

Food and Consumer Service


Food Distribution Program: Value of Donated Foods From July 1, 
1996 to June 30, 1997

AGENCY: Food and Consumer Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the value of donated foods or, where 
applicable, cash in lieu thereof to be provided in the 1997 school year 
for each lunch served by schools participating in the National School 
Lunch Program (NSLP) or by commodity only schools and for each lunch 
and supper served by institutions participating in the Child and Adult 
Care Food Program.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Ellen Henigan, Chief, Schools and 
Institutions Branch, Food Distribution Division, Food and Consumer 
Service, U.S. Department of Agriculture, 3101 Park Center Drive, 
Alexandria, Virginia 22302 or telephone (703) 305-2660.

SUPPLEMENTARY INFORMATION:

Classification

    These programs are listed in the Catalog of Federal Domestic 
Assistance under Nos. 10.550, 10.555, and 10.558 and are subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials. (See 7 CFR part 3015, 
subpart V, and final rule related notice published at 48 FR 29114, June 
24, 1983.)
    This notice imposes no new reporting or recordkeeping provisions 
that are subject to Office of Management and Budget review in 
accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3507). 
This action is not a rule as defined by the Regulatory Flexibility Act 
(5 U.S.C. 601-612) and thus is exempt from the provisions of that Act. 
This notice has been determined to be exempt under Executive Order 
12866.

National Average Minimum Value of Donated Foods for the Period July 1, 
1996 through June 30, 1997

    This notice implements mandatory provisions of sections 6(e), 14(f) 
and 17(h)(1) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(e), 1762a(f), and 1766(h)(1)). Section 6(e)(1)(A) of the Act 
establishes the national average value of donated food assistance to be 
given to States for each lunch served in NSLP at 11.00 cents per meal. 
Pursuant to section 6(e)(1)(B), this amount is subject to annual 
adjustments as of July 1 of each year to reflect changes in a three-
month average value of the Price Index for Food Used in Schools and 
Institutions for March, April, and May of each year. Section 17(h)(1) 
of the Act provides that the same value of assistance in donated foods 
for school lunches shall also be established for lunches and suppers 
served in the Child and Adult Care Food Program. Notice is hereby given 
that the national average minimum value of donated foods, or cash in 
lieu thereof, per lunch under NSLP (7 CFR Part 210) and per lunch and 
supper under the Child and Adult Care Food Program (7 CFR Part 226) 
shall be 14.50 cents for the period July 1, 1996 through June 30, 1997.
    The Price Index for Food Used in Schools and Institutions is 
computed using five major food components in the Bureau of Labor 
Statistics' Producer Price Index (cereal and bakery products; meats, 
poultry and fish; dairy products; processed fruits and vegetables; and 
fats and oils). Each component is weighed using the same relative 
weight as determined by the Bureau of Labor Statistics. The value of 
food assistance is adjusted each July 1 by the annual percentage change 
in a three-month average value of the Price Index for March, April and 
May. The three-month average of the Price Index increased by 2.50 
percent from 124.29 for March, April and May of 1995 to 127.40 for the 
same three months in 1996. When computed on the basis of unrounded data 
and rounded to the nearest one-quarter cent, the resulting national 
average for the period July 1, 1996 through June 30, 1997 will be 14.50 
cents per meal. This is an increase of 0.25 cents from the school year 
1996 rate.
    Section 14(f) of the Act provides that commodity only schools shall 
be eligible to receive donated foods equal in value to the sum of the 
national average value of donated foods established under section 6(e) 
of the Act and the national average payment established under section 4 
of the Act (42 U.S.C. 1753). Such schools are eligible to receive up to 
5 cents per meal of this value in cash for processing and handling 
expenses related to the use of such commodities.
    Commodity only schools are defined in section 12(d)(7) of the Act 
(42 U.S.C. 1760(d)(7)) as ``schools that do not participate in the 
school lunch program under this Act, but which receive commodities made 
available by the Secretary for use by such schools in nonprofit lunch 
programs.''
    For the 1997 school year, commodity only schools shall be eligible 
to receive donated food assistance valued at 32.25 cents for each lunch 
served. This amount is based on the sum of the section 6(e) level of 
assistance announced in this notice and the adjusted section 4 minimum 
national average payment factor for school year 1997. The section 4 
factor for commodity only schools does not include the two cents per 
lunch increase for schools where 60 percent of the lunches served in 
the school lunch program in the second preceding school year were 
served free or at reduced prices, since that increase is applicable 
only to schools participating in the National School Lunch Program.
    Section 103 of the Healthy Meals for Healthy Americans Act of 1994, 
(Public Law 103-448) amended section 6 of the National School Lunch Act 
by adding a new paragraph (g), which mandates that not less than 12 
percent of the assistance provided under sections 4, 6, and 11 of the 
Act be in the form of commodity assistance, including cash in lieu of 
commodities and administrative costs for commodity procurement of 
commodities under section 6. In school year 1996, the announced rate 
generated commodity assistance at a level that exceeded the 12-percent 
mandate. In the event that the rate of $.1450 announced in this Notice 
fails to meet the 12-percent requirement, the rate will be 
retroactively adjusted upward, and the additional commodities will be

[[Page 36349]]

delivered to States during the first quarter of the next school year.

    Authority: Sections 6(e)(1) (A) and (B), 14(f) and 17(h)(1) of 
the National School Lunch Act, as amended (42 U.S.C. 1755(e)(1) (A) 
and (B), 1762a(f), and 1766(h)(1)).

    Dated: July 2, 1996.
Willliam E. Ludwig,
Administrator.
[FR Doc. 96-17519 Filed 7-9-96; 8:45 am]
BILLING CODE 3410-30-P