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[Federal Register Volume 63, Number 136 (Thursday, July 16, 1998)]
[Notices]
[Pages 38365-38366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18974]

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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

Food Distribution Program: Value of Donated Foods From July 1, 
1998 to June 30, 1999

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 1999 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, 1998.

FOR FURTHER INFORMATION CONTACT: Heddy Turpin, Acting 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, 1998 through June 30, 1999

    This notice implements mandatory provisions of sections 6(e), 14(f) 
and 17(h)(1)(B) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(e), 1762a(f), and 1766(h)(1)(B)). Section 6(e)(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(e)(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 Food Used in Schools and 
Institutions for March, April, and May each year. 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 14.75 cents for the period July 1, 
1998 through June 30, 1999.
    The Price Index for Food Used in Schools and Institutions (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 weighed using the 
same 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 0.81 percent from 130.18 for March, April and May of 
1997 to 129.12 for the same three months in 1998. 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, 1998 through June 
30, 1999 will be 14.75 cents per meal. This is a decrease of 0.25 cents 
from the school year 1998 rate.
    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(e) 
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

[[Page 38366]]

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 1999 school year, commodity only schools shall be eligible 
to receive donated food assistance valued at 32.75 cents for each paid 
lunch served, and 33.50 cents for each free and reduced price lunch 
served. This amount is based on the sum of the section 6(e) level of 
assistance announced in this notice and the adjusted section 4 minimum 
national average payment factor for school year 1999. 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(e)(1)(A) and (B), 14(f) and 17(h)(1)(B) of 
the National School Lunch Act, as amended (42 U.S.C. 1755(e)(1)(A) 
and (B), 1762a(f), and 1766(h)(1)(B)).

    Dated: July 10, 1998.
George A. Braley,
Acting Administrator.
[FR Doc. 98-18974 Filed 7-15-98; 8:45 am]
BILLING CODE 3410-30-P
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