Sec. 3. COMMODITY DISTRIBUTION PROGRAM REFORMS

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## SEC. 3 COMMODITY DISTRIBUTION PROGRAM REFORMS **[**[7 U.S.C. 612c note](/us/usc/t7/s612c)**]** ###

(a)Commodities Specifications ####

(1)Development In developing specifications for commodities acquired through price support, surplus removal, and direct purchase programs of the Department of Agriculture that are donated for use for programs or institutions described in paragraph (2), the Secretary shall— #####

(A)consult with the advisory council established under paragraph (3); #####

(B)consider both the results of the information received from recipient agencies under subsection (f)(2) and the results of an ongoing field testing program under subsection

(g)in determining which commodities and products, and in which form the commodities and products, should be provided to recipient agencies; and #####

(C)give significant weight to the recommendations of the advisory council established under paragraph

(3)in ensuring that commodities and products are— ######

(i)of the quality, size, and form most usable by recipient agencies; and ######

(ii)to the maximum extent practicable, consistent with the Dietary Guidelines for Americans published by the Secretary of Agriculture and the Secretary of Health and Human Services. ####

(2)Applicability Paragraph

(1)shall apply to— #####

(A)the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note); #####

(B)the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)); #####

(C)the school lunch, commodity distribution, and child care food programs established under sections 6, 14, and 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755, 1762a, and 1766); #####

(D)the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); #####

(E)the donation of surplus commodities to provide nutrition services under section 311 of the Older Americans Act of 1965 (42 U.S.C. 3030a); and #####

(F)to the extent practicable— ######

(i)the emergency food assistance program established under the Emergency Food Assistance Act of 1983 (Public Law 100–237; 7 U.S.C. 612c note); and ######

(ii)programs under which food is donated to charitable institutions. ####

(3)Advisory council #####

(A)The Secretary shall establish an advisory council on the distribution of donated commodities to recipient agencies. The Secretary shall appoint not less than nine and not more than 15 members to the council, including— ######

(i)representatives of recipient agencies, including food banks; ######

(ii)representatives of food processors and food distributors; ######

(iii)representatives of agricultural organizations; ######

(iv)representatives of State distribution agency directors; and ######

(v)representatives of State advisory committees. #####

(B)The council shall meet not less than semiannually with appropriate officials of the Department of Agriculture and shall provide guidance to the Secretary on regulations and policy development with respect to specifications for commodities. #####

(C)Members of the council shall serve without compensation but shall receive reimbursement for necessary travel and subsistence expenses incurred by them in the performance of the duties of the committee. #####

(D)The council shall report annually to the Secretary of Agriculture, the Committee on Education and the Workforce and the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate. #####

(E)The council shall expire on September 30, 1996. ###

(b)Duties of Secretary With Respect to Provision of Commodities With respect to the provision of commodities to recipient agencies, the Secretary shall— ####

(1)before the end of the 270-day period beginning on the date of the enactment of this Act **[**Jan. 8, 1988**]**— #####

(A)implement a system to provide recipient agencies with options with respect to package sizes and forms of such commodities, based on information received from such agencies under subsection (f)(2), taking into account the duty of the Secretary— ######

(i)to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation; ######

(ii)to purchase surplus agriculture commodities through section 32 of the Act of August 24, 1935 (7 U.S.C. 612c); and ######

(iii)to make direct purchases of agricultural commodities and other foods for distribution to recipient agencies under— ######

(I)the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note); ######

(II)the program established under section 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 2013(b)); ######

(III)the school lunch, commodity distribution, and child care food programs established under sections 6, 14, and 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755, 1762a, and 1766); ######

(IV)the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and ######

(V)the donation of surplus commodities to provide nutrition services under section 311 of the Older Americans Act of 1965 (42 U.S.C. 3030a); and #####

(B)implement procedures to monitor the manner in which State distribution agencies carry out their responsibilities; ####

(2)provide technical assistance to recipient agencies on the use of such commodities, including handling, storage, and menu planning and shall distribute to all recipient agencies suggested recipes for the use of donated commodities and products (the recipe cards shall be distributed as soon as practicable after the date of enactment of this Act **[**Jan. 8, 1988**]** and updated on a regular basis taking into consideration the Dietary Guidelines for Americans published by the Secretary of Agriculture and the Secretary of Health and Human Services, as in effect at the time of the update of the recipe files); ####

(3)before the end of the 120-day period beginning on the date of the enactment of this Act **[**Jan. 8, 1988**]**, implement a system under which the Secretary shall— #####

(A)make available to State agencies summaries of the specifications with respect to such commodities and products; and #####

(B)require State agencies to make such summaries available to recipient agencies on request; ####

(4)implement a system for the dissemination to recipient agencies and to State distribution agencies— #####

(A)not less than 60 days before each distribution of commodities by the Secretary is scheduled to begin, of information relating to the types and quantities of such commodities that are to be distributed; or #####

(B)in the case of emergency purchases and purchases of perishable fruits and vegetables, of as much advance notification as is consistent with the need to ensure that high-quality commodities are distributed; ####

(5)before the expiration of the 90-day period beginning on the date of the enactment of this Act **[**Jan. 8, 1988**]**, establish procedures for the replacement of commodities received by recipient agencies that are stale, spoiled, out of condition, or not in compliance with the specifications developed under subsection (a)(1), including a requirement that the appropriate State distribution agency be notified promptly of the receipt of commodities that are stale, spoiled, out of condition, or not in compliance with the specifications developed under subsection (a)(1); ####

(6)monitor the condition of commodities designated for donation to recipient agencies that are being stored by or for the Secretary to ensure that high quality is maintained; ####

(7)establish a value for donated commodities and products to be used by State agencies in the allocation or charging of commodities against entitlements; and ####

(8)require that each State distribution agency shall receive donated commodities not more than 90 days after such commodities are ordered by such agency, unless such agency specifies a longer delivery period. ###

(c)Qualifications for Purchase of Commodities ####

(1)Offers for equal or less poundage Subject to compliance by the Secretary with surplus removal responsibilities under other provisions of law, the Secretary may not refuse any offer in response to an invitation to bid with respect to a contract for the purchase of entitlement commodities (provided in standard order sizes) solely on the basis that such offer provides less than the total amount of poundage for a destination specified in such invitation. ####

(2)Other qualifications The Secretary may not enter into a contract for the purchase of entitlement commodities unless the Secretary considers the previous history and current patterns of the bidding party with respect to compliance with applicable meat inspection laws and with other appropriate standards relating to the wholesomeness of food for human consumption. ###

(d)Duties of State Distribution Agencies On or before July 1, 1992, the Secretary shall by regulation require each State distribution agency to— ####

(1)evaluate its system for warehousing and distributing donated commodities to recipient agencies designated in subparagraphs

(A)and

(B)of section 13(3) (hereafter referred to in this Act as “child and elderly nutrition program recipient agencies”); ####

(2)in the case of State distribution agencies that require payment of fees by child and elderly nutrition program recipient agencies for any aspect of warehousing or distribution, implement the warehousing and distribution system that provides donated commodities to such recipient agencies in the most efficient manner, at the lowest cost to such recipient agencies, and at a level that is not less than a basic level of services determined by the Secretary; ####

(3)in determining the most efficient and lowest cost system, use commercial facilities for providing warehousing and distribution services to such recipient agencies, unless the State applies to the Secretary for approval to use other facilities demonstrating that, when both direct and indirect costs incurred by such recipient agencies are considered, such other facilities are more efficient and provide services at a lower total cost to such recipient agencies; ####

(4)consider the preparation and storage capabilities of recipient agencies when ordering donated commodities, including capabilities of such agencies to handle commodity product forms, quality, packaging, and quantities; and ####

(5)in the case of any such agency that enters into a contract with respect to processing of agricultural commodities and their products for recipient agencies— #####

(A)test the product of such processing with the recipient agencies before entering into a contract for such processing; and #####

(B)develop a system for monitoring product acceptability. ###

(e)Regulations ####

(1)In general The Secretary shall provide by regulation for— #####

(A)whenever fees are charged to local recipient agencies, the establishment of mandatory criteria for such fees based on national standards and industry charges (taking into account regional differences in such charges) to be used by State distribution agencies for storage and deliveries of commodities; #####

(B)minimum performance standards to be followed by State agencies responsible for intrastate distribution of donated commodities and products; #####

(C)procedures for allocating donated commodities among the States; and #####

(D)delivery schedules for the distribution of commodities and products that are consistent with the needs of eligible recipient agencies, taking into account the duty of the Secretary— ######

(i)to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation; ######

(ii)to purchase surplus agricultural commodities through section 32 of the Act entitled “An Act to amend the Agricultural Adjustment Act, and for other purposes”, approved August 24, 1935 (7 U.S.C. 612c); and ######

(iii)to make direct purchases of agricultural commodities and other foods for distribution to recipient agencies under— ######

(I)the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note); ######

(II)the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)); ######

(IV)the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and ######

(V)the donation of surplus commodities to provide nutrition services under section 311 of the Older Americans Act of 1965 (42 U.S.C. 3030a). ####

(2)Time for promulgation of regulations The Secretary shall promulgate— #####

(A)regulations as required by paragraph (1)(D) before the end of the 90-day period beginning on the date of enactment of this Act **[**Jan. 8, 1988**]**; and #####

(B)regulations as required by subparagraphs (A), (B), and

(C)of paragraph

(1)before the end of the 270-day period beginning on such date. ###

(f)Review of Provision of Commodities ####

(1)In general Before the expiration of the 270-day period beginning on the date of the enactment of this Act **[**Jan. 8, 1988**]**, the Secretary shall establish procedures to provide for systematic review of the costs and benefits of providing commodities of the kind and quantity that are suitable to the needs of recipient agencies. ####

(2)Information from recipient agencies #####

(A)In general The Secretary shall ensure that information with respect to the types and forms of commodities that are most useful to persons participating in programs described in subsection (a)(2) is collected from recipient agencies operating the programs. #####

(B)Frequency The information shall be collected at least once every 2 years. #####

(C)Additional submissions The Secretary shall provide the recipient agencies a means for voluntarily submitting customer acceptability information. ###

(g)Testing for Acceptability The Secretary shall establish an ongoing field testing program for present and anticipated commodity and product purchases to test product acceptability with program participants. Test results shall be taken into consideration in deciding which commodities and products, and in what form the commodities and products, should be provided to recipient agencies. ###

(h)Buy American Provision ####

(1)In general The Secretary shall require that recipient agencies purchase, whenever possible, only food products that are produced in the United States. ####

(2)Waiver The Secretary may waive the requirement established in paragraph (1)— #####

(A)in the case of recipient agencies that have unusual or ethnic preferences in food products; or #####

(B)for such other circumstances as the Secretary considers appropriate. ####

(3)Exception The requirement established in paragraph

(1)shall not apply to recipient agencies in Alaska, Guam, American Samoa, Puerto Rico, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands. The requirement established in paragraph

(1)shall apply to recipient agencies in Hawaii only with respect to the purchase of pineapples. ###

(i)Uniform Interpretation The Secretary shall take such actions as are necessary to ensure that regional offices of the Department of Agriculture interpret uniformly across the United States policies and regulations issued to implement this section. ###

(j)Per Meal Value of Donated Foods.—3–5 3–5Sec. 3(j) added sec. 6(e)(2) of the National School Lunch Act (42 U.S.C. 1755(e)(2)). ###

(k)Report Not later than January 1, 1989, the Secretary shall submit to the Committee on Education and the Workforce and the Committee on Agriculture of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the implementation and operation of this section.

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U.S. Code

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Pub. L. 100-237

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Sec. 3

COMMODITY DISTRIBUTION PROGRAM REFORMS

Pub. L.Pub. L. 100-237

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