[Federal Register Volume 67, Number 134 (Friday, July 12, 2002)]
[Notices]
[Pages 46164-46165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17509]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Food Distribution Program: Value of Donated Foods From July 1, 
2002 to June 30, 2003

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 2003 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, 2002.

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

[[Page 46165]]

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, 2002 through June 30, 2003

    This notice implements mandatory provisions of sections 6(c), 14(f) 
and 17(h)(1) (B) of the 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 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 NSLP 
(7 CFR part 210) and per lunch and supper under the Child and Adult 
Care Food Program (7 CFR part 226) shall be 15.25 cents for the period 
July 1, 2002 through June 30, 2003.
    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 decreased by 2.1 percent from 136.60 for March, April and May of 
2001 to 133.79 for the same three months in 2002. 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, 2002 through June 
30, 2003 will be 15.25 cents per meal. This is an decrease of .25 cents 
from the school year 2002 rate.
    In addition to the 15.25 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(e)). Therefore, for this school year, schools will 
receive more than 15.25 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 2003 school year, commodity only schools shall be 
eligible to receive donated food assistance valued at 35.25 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 2003. 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 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 5, 2002.
Roberto Salazar,
Administrator, Food and Nutrition Service.
[FR Doc. 02-17509 Filed 7-11-02; 8:45 am]
BILLING CODE 3410-30-P