[Federal Register Volume 65, Number 139 (Wednesday, July 19, 2000)]
[Notices]
[Pages 44755-44756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18164]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Food Distribution Program: Value of Donated Foods From July 1, 
2000 to June 30, 2001

AGENCY: Food and Nutrition 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 2001 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, 2000.

FOR FURTHER INFORMATION CONTACT: Suzanne Rigby, Chief, Schools and 
Institutions Branch, Food Distribution Division, Food and Nutrition 
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, 2000 Through June 30, 2001

    This notice implements mandatory provisions of sections 6(c), 14(f) 
and 17(h)(1) (B) of the Richard B. Russell National School Lunch Act 
(the Act) (42 U.S.C. 1755(c), 1762a(f), and 1766(h)(1)(B)). Section 
6(c)(1)(A) of the

[[Page 44756]]

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(c)(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 Foods Used in Schools and 
Institutions for March, April, and May each year (Price Index). Section 
17(h)(1)(B) 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 the 
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 cents for the 
period July 1, 2000 through June 30, 2001.
    The 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 weighted using the 
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 1.9 percent from 129.37 for March, April and May of 
1999 to 131.78 for the same three months in 2000. 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, 1999 through June 
30, 2000 will be 15 cents per meal. This is an increase of 0.25 cents 
from the school year 2000 rate.
    In addition to the 15 cents per meal, Congress has authorized 
additional funds to be used to purchase foods under section 6(e) of the 
Act (42 U.S.C. 1755). Therefore, for this school year, schools will 
receive more than 15 cents per meal in commodities.
    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(c) 
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 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 2001 school year, commodity only schools shall be 
eligible to receive donated food assistance valued at 34 cents for each 
free, reduced price, and paid lunch served. This amount is based on the 
sum of the section 6(c) level of assistance announced in this notice 
and the adjusted section 4 minimum national average payment factor for 
school year 2001. 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.

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

    Dated: July 12, 2000.
Samuel Chambers, Jr.,
Administrator.
[FR Doc. 00-18164 Filed 7-18-00; 8:45 am]
BILLING CODE 3410-30-P