[Federal Register Volume 62, Number 135 (Tuesday, July 15, 1997)]
[Notices]
[Pages 37862-37863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18547]


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DEPARTMENT OF AGRICULTURE

Food and Consumer Service


Food Distribution Program: Value of Donated Foods From July 1, 
1997 to June 30, 1998

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 1998 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, 1997.

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) 305-2644.

SUPPLEMENTARY INFORMATION: 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 1995 (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, 
1997 Through June 30, 1998

    This notice implements mandatory provisions of sections 6(e), 14(f) 
and 17(h)(1) (B) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(e), 1762a(f), and 1766(h)(1)(B)). 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 each year. Section 17(h)(1) of 
the Act provides that the same value of donated foods (or cash in lieu 
of 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 15.00 cents for the period July 1, 
1997 through June 30, 1998.
    The Price Index for Food Used in Schools and Institutions (Price 
Index) 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 each year. The three-month average of the Price 
Index increased by 2.25 percent from 127.40 for March, April and May of 
1996 to 130.18 for the same three months in 1997. 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, 1997 through June 
30, 1998 will be 15.00 cents per meal. This is an increase of 0.50 
cents from the school year 1997 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)(2) of the Act 
(42 U.S.C. 1760(d)(2)) as ``schools that do not

[[Page 37863]]

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 1998 school year, commodity only schools shall be eligible 
to receive donated food assistance valued at 33.00 cents for each paid 
lunch served, and 33.25 cents for each free and reduced price 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 1998. 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, because that increase is applicable 
only to schools participating in the NSLP.
    Section 103 of the Healthy Meals for Healthy Americans Act of 1994, 
(Public Law 103-448) amended section 6 of the NSL 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 1997, the announced rate generated commodity 
assistance at a level that exceeded the 12-percent mandate. In the 
event that the rate of $.1500 announced in this Notice fails to meet 
the 12-percent requirement, the rate will be retroactively adjusted 
upward, and the additional commodities will be 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) (B) 
of the National School Lunch Act, as amended (42 U.S.C. 
1755(e)(1)(A) and (B), 1762a(f), and 1766(h)(1)(B)).

    Dated: July 9, 1997.
Willliam E. Ludwig,
Administrator.
[FR Doc. 97-18547 Filed 7-14-97; 8:45 am]
BILLING CODE 3410-30-P