SECTION 32 OF PUBLIC LAW NO. 320, SEVENTY-FOURTH CONGRESS1

SEC. 32. There is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year. Such sums shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage the domestic consumption of such commodities or products by diverting them, by the payment of benefits or indemnities or by other means, from the normal channels of trade and commerce or by increasing their utilization through benefits, indemnities, donations or by other means, among persons in low-income groups as determined by the Secretary of Agriculture; and (3) reestablish farmers' purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final.

The sums appropriated under this section shall be expended for such one or more of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will effectuate substantial accomplishment of any one or more of the purposes of this section. Notwithstanding any other provision of this section, the amount that may be devoted, during any fiscal

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1 The Act of August 24, 1935, 49 Stat. 750, 774. Although this section has been amended a number of times, the purposes of Section 32-through payments or indemnities to encourage the exportation and domestic consumption of agricultural commodities and products and to reestablish farmers' purchasing power in connection with the normal production of agricultural commodities-remain basically the same since February 29, 1936. Authority to encourage consumption of agricultural commodities and products by their utilization among persons in low-income groups was added by amendment of clause (2) in 1939 (53 Stat. 975). Later amendments are noted.

Surplus agricultural commodities purchased under clause (2) may be donated for relief purposes and for use in nonprofit summer camps for children under the Act of June 28, 1937 (p. 231), and may be donated to schools and service institutions under sections 9 and 13 of the National School Lunch Act, as amended, (p. 266) and section 8 of the Child Nutrition Act of 1966 (p. 284).

Section 205 of the Agricultural Act of 1956 (see p. 232) authorized the appropriation for each fiscal year, beginning with the fiscal year ending June 30, 1957, of $500,000,000 to enable the Secretary of Agriculture to further carry out the provisions of Section 32, subject to all provisions of law relating to the expenditure of funds appropriated by such section, except that up to 50 percent of the $500,000,000 may be devoted during any fiscal year to any one agricultural commodity or the products thereof.

For the administration of Section 32, not to exceed 4% of the total amount available for such section in any fiscal year may be used for that purpose under the limitation contained in section 392 (b) of the Agricultural Act of 1938, as amended, p. 148.

SEC. 2.12(a) The Secretary of Agriculture shall transfer to the Secretary of the Interior 13 each fiscal year, beginning with the fiscal year commencing July 1, 1954, and ending on June 30, 1957,14 from moneys made available to carry out provisions of section 32 of such Act of August 24, 1935, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws on fishery products (including fish, shellfish, mollusks, crustacea, aquatic plants and animals, and any products thereof, including processed and manufactured products), which shall be maintained in a separate fund and used by the Secretary of the Interior (1) to promote the free flow of domestically produced fishery products in commerce by conducting a fishery educational service and fishery technological, biological and related research programs, the moneys so transferred to be also available for the purchase or other acquisition, construction, equipment, operation, and maintenance of vessels or other facilities necessary for conducting research as provided for in this section, and (2) to develop and increase markets for fishery products of domestic origin and (3) to conduct any biological, technological, or other research pertaining to American fisheries.

(b) For the purposes of this section, any agency of the United States, or any corporation wholly owned by the United States, is authorized to transfer, without reimbursement or transfer of funds, any vessels or equipment excess to its need required by the Secretary of the Interior for the activities, studies, and research authorized herein.

(c) In carrying out the purposes and objectives of this section, the Secretary of the Interior is directed as far as practicable to cooperate with other appropriate agencies of the Federal Government, with State or local governmental agencies, private agencies, organizations, or individuals, having jurisdiction over or an interest in fish or fishery commodities and he is authorized to appoint an advisory committee of the American fisheries industry to advise him in the formulation of policy, rules and regulations pertaining to requests for assistance, and other matters.

(d) The Secretary of the Interior is further authorized to retransfer any of the funds not to exceed $1,500,000 to be made available under this section to the Secretary of Agriculture to be used for the purposes specified in section 1 of this Act, and only such funds as are thus transferred shall be used for the purposes specified in section 1 of this Act with respect to domestically produced fishery products.

(e) The separate fund created for the use of the Secretary of the Interior under section 2(a) of this Act and the annual accruals thereto shall be available for each year until expended by the Secretary.15 (15 U.S.C. 713c-3.)

12 The provisions of this section were substituted for the original provisions by the Act of July 1, 1954, 68 Stat. 376.

13 These funds are currently being transferred to the Secretary of Commerce rather than to the Secretary of Interior pursuant to Reorganization Plan No. 4 of 1970, 84 Stat. 2090, transmitted July 9, 1970, effective October 3, 1970 (5 U.S.C., App.).

14 Section 12 (a) of the Act of August 8, 1956 (70 Stat. 1124, 15 U.S.C. 713c-3, note) provides :

"The authorization for the transfer of certain funds from the Secretary of Agriculture to the Secretary of the Interior and their maintenance in a separate fund as contained in section 2(a) of the Act of August 11, 1939, as amended July 1, 1954 (68 Stat. 376), shall be continued for the year ending June 30, 1957, and each year thereafter."

15 Subsection (e) was amended by the Act of August 8, 1956, 70 Stat. 1124. Former subsection (f) providing for reports by the Secretary of the Interior was repealed by the Act of November 8, 1965, 79 Stat. 1311.

[A number of authorities for donations are found in the following statutes which are set forth in other parts of this compilation as indicated:

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Clause 2 of Section 32 of the Act of August 24, 1935 (programs to encourage domestic consumption)

Act of June 28, 1937, as amended (donation for relief purposes and nonprofit children's summer camps)

Sections 6, 9, 13, and 17 of the National School Lunch Act (donation for child nutrition programs)

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231

263, 267, 273, 277A

Title II of the Agricultural Trade Development and Assistance Act of 1954, as amended (donations for famine relief and other assistance abroad)

Section 8 of Child Nutrition Act of 1966

Sections 409, 410 of the Disaster Relief Act of 1974

224

284

244A

In addition to the foregoing, there are also the following statutes relating to donation; some of which affect one or more of the above authorities.]

DISPOSITION OF COMMODITIES TO PREVENT WASTE

Agricultural Act of 1949 -SEC. 416.1 In order to prevent the waste of commodities whether in private stocks or 2 acquired through price-support operations by the Commodity Credit Corporation befor they can be disposed of in normal domestic channels without impairment of the price-support program or sold abroad at competitive world prices, the Commodity Credit Corporation is authorized, on such terms and under such regulations as the Secretary may deem in the public interest: (1) upon application, to make such commodities available to any Federal agency for use in making payment for commodities not produced in the United States; (2) to barter or exchange such commodities for strategic or other materials as authorized by law; (3) in the case of food commodities to donate such commodities to the Bureau of Indian Affairs and to such State, Federal, or private agency or agencies as may be designated by the proper State or Federal authority and approved by the Secretary, for use in the United States in nonprofit school-lunch programs,3 in

The provisions of this section were substituted for the previous provisions by section 302 of the Agricultural Trade Development and Assistance Act of 1954, P.L. 83-480, 68 Stat. 458, July 10, 1964. See section 9 of P.L. 85-931, 72 Stat. 1792, Sept. 6, 1958 (on p. 238) providing for distribution of commodities under section 416 to overseas areas under the jurisdiction or administration of the United States.

The Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1538, Nov. 11, 1966, deleted all references to foreign donations from section 416, effective Jan. 1, 1967.

The words "whether in private stocks or" were added by P.L. 86-108, 73 Stat. 250, July 24, 1959.

3 See P.L. 86-756, 74 Stat. 899, Sept. 13, 1959, as amended, (p. 237) authorizing the use of surplus foods for training home economics students.

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nonprofit summer camps for children, in the assistance of needy persons, and in charitable institutions, including hospitals, to the extent that needy persons are served. In the case of (3) the Secretary shall obtain such assurance as he deems necessary that the recipients thereof will not diminish their normal expenditures for food by reason of such donation. In order to facilitate the appropriate disposal of such commodities, the Secretary may from time to time estimate and announce the quantity of such commodities which he anticipates will become available for distribution under (3). The Commodity Credit Corporation may pay, with respect to commodities disposed of under this section, reprocessing, packaging, transporting, handling, and other charges accruing up to the time of their delivery to a Federal agency or to the designated State or private agency. In addition, in the case of food commodities disposed of under this section, the Commodity Credit Corporation may pay the cost of processing such commodities into a form suitable for home or institutional use, such processing to be accomplished through private trade facilities to the greatest extent possible. For the purpose of this section the terms "State" and "United States" include the District of Columbia and any Territory or possession of the United States. Dairy products acquired by the Commodity Credit Corporation through price support operations may, insofar as they can be used in the United States in nonprofit school lunch and other nonprofit child feeding programs, in the assistance of needy persons, and in charitable institutions, including hospitals, to the extent that needy persons are served, be donated for any such use prior to any other use or disposition." (7 U.S.C. 1431.)

DOMESTIC DISPOSAL OF DAIRY PRODUCTS

Agricultural Act of 1954 -SEC. 204. (c) In order to prevent the accumulation of excessive inventories of dairy products the Secretary of Agriculture shall undertake domestic disposal programs under authorities granted in the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949, as amended, or as otherwise authorized by law. (7 U.S.C. 1446c.)

PURCHASE OF DAIRY PRODUCTS

Food and Agriculture Act of 1965-SEC. 709.8 The Secretary of Agriculture is hereby authorized to use funds of the Commodity Credit Corporation to purchase sufficient supplies of dairy products at market prices to meet the requirements of any programs for the schools (other than fluid milk in the case of schools), domestic relief

The words "in nonprofit summer camps for children," were added by P.L. 85–483, 72 Stat. 286, July 2, 1958.

This sentence was added by the Agricultural Act of 1956, P.L. 540, 84th Cong., 70 Stat. 203, May 28, 1956.

This sentence was added by P.L. 91-233, 84 Stat. 199, April 17, 1970. A last sentence relating to supplemental security income was deleted. See footnote 11a, infra. P.L. 83-690, 68 Stat. 910, Aug. 28, 1954.

P.L. 89-321, 79 Stat. 1212, November 3, 1965, amended by P.L. 89-808, 80 Stat. 1538, Nov. 11, 1966. The words "foreign distribution" appearing after the words "community action" were deleted by the Act of November 11, 1966.