SUBPART J. MISCELLANEOUS COMMODITY CREDIT CORPORATION STATUTES

EXEMPTION FROM FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT

Act of June 30, 1949, as amended-SEC. 602. *** Nothing in this Act shall impair or affect any authority of-*** (2) any executive agency with respect to any phase (including, but not limited to, procurement, storage, transportation, processing, and disposal) of any program conducted for purposes of resale, price support, grants to farmers, stabilization, transfer to foreign governments, or foreign aid, relief, or rehabilitation: Provided, That the agency carrying out such program shall, to the maximum extent practicable, consistent with the fulfillment of the purposes of the program and the effective and efficient conduct of its business, coordinate its operations with the requirements of said chapters and the policies and regulations prescribed pursuant thereto; *** (June 30, 1949, 63 Stat. 377, 401; Sept. 5, 1950, 64 Stat. 578, 583; 40 U.S.C.474.)

TREATMENT OF COMMODITY CREDIT LOANS FOR INCOME TAX PURPOSES

INTERNAL REVENUE CODE OF 19541

SEC. 77. COMMODITY CREDIT LOANS

(a) ELECTION TO INCLUDE LOANS IN INCOME.-Amounts received as loans from the Commodity Credit Corporation shall, at the election of the taxpayer, be considered as income and shall be included in gross income for the taxable year in which received.

(b) EFFECT OF ELECTION ON ADJUSTMENTS FOR SUBSEQUENT YEARS.-If a taxpayer exercises the election provided for in subsection (a) for any taxable year, then the method of computing income so adopted shall be adhered to with respect to all subsequent taxable years unless with the approval of the Secretary or his delegate a change to a different method is authorized. (26 U.S.Č. 77.)

SEC. 1016. ADJUSTMENTS TO BASIS

(a) GENERAL RULE.-Proper adjustment in respect of the property shall in all cases be made

1 These provisions of the Internal Revenue Code are derived from the Act of June 29, 1939, 53 Stat. 879.

(8) in the case of property pledged to the Commodity Credit Corporation, to the extent of the amount received as a loan from the Commodity Credit Corporation and treated by the taxpayer as income for the year in which received pursuant to section 77, and to the extent of any deficiency on such loan with respect to which the taxpayer has been relieved from liability; U.S.C. 1016.)

INSURANCE OF COTTON AND RECONCENTRATION OF COTTON

(26

[See section 383 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1383 (a) and (b)) and the Act of June 16, 1938 (7 U.S.Č. 1383a) p. 144.]

STIMULATION OF FOREIGN PRODUCTION

Taft Anti-Inflation Law-SEC. 7. Notwithstanding any other provision of law, in order to alleviate and prevent shortages in foods, agricultural commodities, and products thereof, Commodity Credit Corporation is authorized to carry out projects to stimulate and increase the production of foods, agricultural commodities and products thereof, in non-European foreign countries. Such projects may include proceurement, the making of advances and price guaranties, the furnishing of technical information and assistance, the furnishing of seed, fertlizer, machinery, equipment, and other materials, and such other actions as are necessary or incident to the carrying out of such projects: Provided, That any such program is first submitted to Congress by the Secretary of Agriculture, and is not disapproved by concurcurent resolution of Congress within sixty days thereafter. (Dec. 30, 1947, 61 Stat. 945, 947; 50 U.S.C. App. 1917.)

OTHER PRINCIPAL STATUTES HAVING APPLICABILITY TO

COMMODITY CREDIT CORPORATION

Government Corporation Control Act, as amended (Dec. 6, 1945; 31 U.S.C. 841 et seq.).

Sections 217 and 1026 of the U.S. Criminal Code (June 25, 1948, 62 Stat. 696, 755; October 23, 1962, 76 Stat. 1125; 18 U.S.C. 217, 1026) providing penalties for acceptance of fees or knowingly making false statements in connection with cancellation of farm indebtedness.

Act of June 11, 1947, as amended (61 Stat. 308; 71 Stat. 464; 31 U.S.C. 132), requiring withdrawal of the amount of all checks, which have not been paid prior to the close of the fiscal year next following the fiscal year in which issued, from the account of designated depositories and deposit of the amount with the Treasurer of the United States for credit to a consolidated account.

Section 9(c) of the Act of August 2, 1946 (41 U.S.C. 5), providing that the bid procedure set out in section 3709, Revised Statutes as amended (41 U.S.C. 5), shall apply only to the administrative transactions of wholly owned Government corporations.

Independent Offices Appropriation Act, 1950 (Aug. 24, 1949, 63 Stat. 631, 662; 31 U.S.C. 870), authorizing corporations subject to the

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Government Corporation Control Act to consolidate into one or more accounts for banking and checking purposes all cash, including amount appropriated, from whatever source derived.

Sec. 1415 of the Supplemental Appropriation Act, 1953 (July 15, 1952, 66 Stat. 637, 662; 31 U.S.C. 724), utilization of foreign credits authorized in general appropriation acts.

Sec. 507 of General Government Matters, Department of Commerce, and Related Agencies Appropriation Act, 1962 (August 3, 1961, 75 Stat. 268, 283; 40 U.S.C. 33a), relating to purchase or construction of, or loans on office buildings by government corporations.

Small Business Act, as amended (15 U.S.C. 631 et seq.).

Civil Rights Act of 1964 (July 2, 1964, 78 Stat. 241).

Sec. 286b (b) (3) of Title 22, U.S.C., provides that the National Advisory Council on International Monetary and Financial Problems shall be consulted by Government agencies in the making of foreign loans or in engaging in foreign financial, exchange or monetary trans

actions.

PART IV

DOMESTIC FOOD ASSISTANCE PROGRAMS

(General authorities with respect to donations of food commodities are found in Part III, Subpart F entitled "Commodity Donations" on page 234.)

NATIONAL SCHOOL LUNCH ACT1

AN ACT

To provide assistance to the States in the establishment, maintenance, operation and expansion of school-lunch programs, and for other purposes.

Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "National School Lunch Act." (42 U.S.C. 1751, note.)

DECLARATION OF POLICY

SEC. 2. It is hereby declared to be the policy of Congress, as a measure of national security, to safeguard the health and wellbeing of the Nation's children and to encourage the domestic consumption of nutritious agricultural commodities and other food, by assisting the States, through grants-in-aid and other means, in providing an adequate supply of foods and other facilities for the establishment, maintenance, operation, and expansion of nonprofit school-lunch programs. (42 U.S.C. 1751.)

APPROPRIATIONS AUTHORIZED

SEC. 3. For each fiscal year there is hereby authorized to be appropriated, out of money in the Treasury not otherwise appropriated, such sums as may be necessary to enable the Secretary of Agriculture (hereinafter referred to as "the Secretary") to carry out the provisions of this Act, other than sections 11 and 13. Appropriations to carry out the provisions of this Act and of the Child Nutrition Act of 1966 for any fiscal year are authorized to be made a year in advance of the beginning

1 June 4, 1946, 60 Stat. 230. For other child feeding programs, see also the Child Nutrition Act of 1966, (p. 278) and section 416 of the Agricultural Act of 1949 (p. 191).

Section 3 was amended by the Act of October 15, 1962, 76 Stat. 944 to delete "beginning with the fiscal year ending June 30, 947," following "fiscal year" and to add the phrase "other than section 11." The section was further amended by the Act of May 8, 1968, 82 Stat. 117, to add the reference to section 13. The final two sentences were added by the Act of May 13, 1970, 84 Stat. 207.

of the fiscal year in which the funds will become available for disbursement to the States. Notwithstanding any other provision of law, any funds appropriated to carry out the provisions of such Acts shall remain available for the purposes of the Act for which appropriated until expended. (42 U.S.C. 1752.)

[ACT OF MAY 8, 1968'

To amend the National School Lunch Act to strengthen and expand food service programs for children, and for other purposes.

SEC. 1. *** Appropriations shall be considered Health, Education, and Welfare functions for budget purposes rather than functions of Agriculture. (42 U.S.C. 1752 note.)]

APPORTIONMENT TO STATES

SEC. 4. The sums appropriated for any fiscal year pursuant to the authorization contained in section 3 of this Act, excluding the sum specified in section 5, shall be available to the Secretary for supplying agricultural commodities and other foods for the program in accordance with the provisions of this Act. The Secretary shall apportion among the States during each fiscal year not less than 75 per centum of the funds made available for such year for supplying agricultural commodities and other foods under the provisions of section 3 of this Act. Apportionment among the States shall be made upon the basis of two factors: (1) the participation rate for the State, and (2) the assistance need rate for the State. The amount of apportionment to any State shall be determined by the following method: First, determine an index for the State by multiplying factors (1) and (2); second, divide this index by the sum of the indices for all the States (exclusive of American Samoa for periods ending before July 1, 1967); and third, apply the figure thus obtained to the total funds to be apportioned. If any State cannot utilize all funds so apportioned to it, or if additional funds are made available under section 3 for apportionment among the States, the Secretary shall make further

3 82 Stat. 117.

Section 4 was amended by the Act of July 12, 1952, 66 Stat. 591, to change apportionments to territories and possessions; the Act of September 25, 1962, 76 Stat. 587, to include American Samoa; and the Act of October 15, 1962, 76 Stat. 944, to change the apportionment factors, specify transitional formulas, and make several other changes. The Act of September 26, 1972, 86 Stat. 727, amended this section, effective after the fiscal year ending June 30, 1973, to read as follows:

"SEC. 4. The sums appropriated for any fiscal year pursuant to the authorizations contained in section 3 of this Act, excluding the sum specified in section 5, shall be available to the Secretary for supplying agricultural commodities and other food for the program in accordance with the provisions of this Act. For each fiscal year the Secretary shall make food assistance payments, at such times as he may determine, from the sums appropriated therefor, to each State educational agency, in a total amount equal to the result obtained by multiplying the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under subsection 9(a) of this Act) served during such fiscal year to children in schools in such State, which participate in the school lunch program under this Act under agreements with such State educational agency, by a national average payment per lunch for such fiscal year determined by the Secretary to be necessary to carry out the purposes of this Act: Provided, That in any fiscal year such national average payment shall not be less than 8 cents per lunch and that the aggregate amount of the food assistance payments made by the Secretary to each State educational agency for any fiscal year shall not be less than the amount of the payments made by the State agency to participating schools within the State for the fiscal year ending June 30, 1972, to carry out the purposes of this section 4."