Commodity Distribution Reform Act and WIC Amendments of 1987
PL 100-237 (H.R.1340), enacted 01/08/1988

PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1733 
Public Law 100-
100th Congress 
237 
An Act 
To improve the distribution procedures for agricultural commodities and their prod-
ucts donated for the purposes of sissistance through the Department of Agriculture, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Commodity Distribution Reform Act 
and WIC Amendments of 1987". 
SEC. 2. STATEMENT OF PURPOSE; SENSE OF CONGRESS. 
(a) STATEMENT OF PURPOSE.—It is the purpose of this Act to 
improve the manner in which agricultural commodities acquired by 
the Department of Agriculture are distributed to recipient agencies, 
the quality of the commodities that are distributed, and the degree 
to which such distribution reponds to the needs of the recipient 
agencies. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
distribution of commodities and products— 
(1) should be improved as an effective means of removing 
agricultural surpluses from the market and providing nutri-
tious high-quality foods to recipient agencies; 
(2) is inextricably linked to the Eigricultural support and 
surplus removal programs; and 
(3) is an important mission of the Secretary of Agricultaire. 
SEC. 3. COMMODITY DISTRIBUTION PROGRAM REFORMS. 
(a) COMMODITIES SPECIFICATIONS.— 
(1) DEVELOPMENT.—In developing specifications for commod-
ities 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 (fK2) and the re-
sults 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 pro-
vided to recipient agencies; and 
(C) give significant weight to the recommendations of the 
advisory council established under paragraph (3) in ensur-
ing 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 
Jan. 8, 1988 
[H.R. 1340] 
Commodity 
Distribution 
Reform Act and 
WIC 
Amendments of 
1987. 
7 u s e 612c note. 
7 u s e 612c note. 
7 u s e 612c note. 
101 STAT. 1734 
PUBLIC LAW 100-237—JAN. 8, 1988 
Reports. 
Termination 
date. 
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 supple-
mental 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 
Stamp Act of 1977 (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 National School Lunch Act (42 U.S.C. 1755, 1762a, 
and 1766); 
(D) the school breakfast program established under sec-
tion 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); 
(E) the donation of surplus commodities to provide nutri-
tion services under section 311 of the Older Americans Act 
of 1965 (42 U.S.C. 3030a); and 
(F) to the extent practicable— 
(i) the temporary emergency food assistance program 
established under the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note); and 
'*•' 
(ii) programs under which food is donated to chari-
table 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; 
(ii) representatives of food processors and food dis-
tributors; 
(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 Labor 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 30,1992. 
(b) DUTIES OF SECRETARY WITH RESPECT TO PROVISION OF COMMOD-
ITIES.—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— 
(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 
PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1735 
agencies under subsection (f)(2), taking into account the 
duty of the Secretary— 
(i) to remove surplus stocks of agricultural commod-
ities through the Commodity Credit Corporation; 
(ii) to purchase surplus agriculture commodities 
through section 32 of the Agricultural Adjustment Act 
(7 U.S.C. 601 et seq.); and 
(iii) to make direct 
purchases of 
agricultural 
commodities and other foods for distribution to recipi-
ent agencies under— 
(I) the commodity distribution and commodity 
supplemental food programs established under sec-
tions 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 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 pro-
vide 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 respon-
sibilities; 
(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 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, implement a system under which 
the Secretary shall— 
(A) make available to State agencies summaries of the 
specifications with respect to such commodities and prod-
ucts; and 
(B) require State agencies to make such summaries avail-
able 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; 
State and local 
governments. 
State and local 
governments. 
State and local 
governments. 
101 STAT. 1736 
PUBLIC LAW 100-237—JAN. 8, 1988 
State and local 
governments. 
State and local 
governments. 
Contracts. 
State and local 
(5) before the expiration of the 90-day period beginning on the 
governments. 
(j^te of the enactment of this Act, 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 specifica-
tions developed under subsection (a)(1); 
(6) monitor the condition of commodities designated for dona-
tion 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 commod-
ities 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 compli-
ance 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 destina-
tion 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 pat-
terns 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. 
Regulations. 
(d) DuTiES OF STATE DISTRIBUTION AGENCIES.—Before the expira-
tion of the 270-day period beginning on the date of the enactment of 
this Act, the Secretary shall by regulation require each State dis-
tribution agency to— 
(1) evaluate its warehousing and distribution systems for 
donated commodities; 
(2) implement the most cost-effective and efficient system for 
providing warehousing and distribution services to recipient 
agencies; 
(3) use commercial facilities for providing warehousing and 
distribution services to recipient agencies unless the State ap-
'' 
plies to the Secretary for approval to use other facilities, show-
ing that other facilities are more cost effective and efficient; 
(4) consider the preparation and storage capabilities of recipi-
ent agencies when ordering donated commodities, including 
capabilities of such agencies to handle commodity product 
forms, quality, packaging, and quantities; and 
Contracts. 
(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— 
PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1737 
(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 acceptabiUty. 
(e) REGULATIONS.— 
state and local 
(1) IN GENERAL.—The Secretary shall provide by regulation 
governments. 
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 do-
nated 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 commod-
ities 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 recipi-
ent agencies under— 
(I) the commodity distribution and commodity 
supplemental food programs established under sec-
tions 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)); and 
(III) the school lunch, commodity distribution, 
and child care food programs established under 
sections 6,14, and 17 of the 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 pro-
vide 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; 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.— 
101 STAT. 1738 
PUBLIC LAW 100-237—JAN. 8, 1988 
(1) IN GENERAL.—Before the expiration of the 270-day period 
beginning on the date of the enactment of this Act, the Sec-
retary 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.—Before 
the 
expiration of the 120-day period beginning on the date of the 
enactment of this Act, the Secretary shall establish procedures 
to ensure that information is received from recipient agencies at 
least semiannually with respect to the types and forms of 
commodities that are most useful to persons participating in 
programs operated by recipient agencies. 
(g) TESTING FOR ACCEPTABIUTY.—The Secretary shall establish an 
ongoing field testing program for present and anticipated commod-
ity and product purchases to test product acceptability with pro-
gram 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 consid-
ers appropriate. 
(3) EXCEPTION.—The requirement established in paragraph 
(1) shall not apply to recipient agencies in Alaska, Hawaii, 
Guam, American Samoa, Puerto Rico, the Virgin Islands, or the 
Commonwealth of the Northern Mariana Islands. 
(i) UNIFORM INTERPRETATION.—The Secretary shall take such ac-
tions as are necessary to ensure that regional offices of the Depart-
ment of Agriculture interpret uniformly across the United States 
policies and regulations issued to implement this section. 
(j) PER MEAL VALUE OF DONATED FOODS.—Section 6(e) of 
the 
National School Lunch Act (42 U.S.C. 1755(e)) is amended by— 
(1) inserting "(D" after the subsection designation; and 
(2) adding at the end the following new paragraph: 
State and local 
"(2) Each State agency shall offer to each school food authority 
goxf^nments. 
under its jurisdiction that participates in the school lunch program 
and receives commodities, agricultural commodities and their prod-
ucts, the per meal value of which is not less than the national 
average value of donated foods established under paragraph (1). 
Each such offer shall include the full range of such commodities and 
products that are available from the Secretary to the extent that 
quantities requested are sufficient to allow efficient delivery to and 
within the State.". 
(k) REPORT.—Not later than January 1, 1989, the Secretary shall 
submit to the Committee on Education and Labor and the Commit-
tee 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. 
Children and 
youth 
PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1739 
State and local 
governments. 
Disadvantaged 
persons. 
7 u s e 612c note. 
SEC. 4. FOOD BANK DEMONSTRATION PROJECT. 
(a) DEMONSTRATION PROJECT.—The Secretary shall carry out no 
less than one demonstration project to provide and redistribute 
agricultural commodities and food products thereof as authorized 
under section 32 of the Act entitled "An Act to amend the Agricul-
tural Adjustment Act, and for other purposes", approved August 24, 
1935 (7 U.S.C. 612c), to needy individuals and families through 
community food banks. The Secretary may use a State agency or 
any other food distribution system for such provision or redistribu-
tion of section 32 agricultural commodities and food products 
through community food banks under a demonstration project. 
(b) RECORDKEEPING AND MONITORING.—Each food bank participat-
ing in the demonstration projects under this section shall establish a 
recordkeeping system and internal procedures to monitor the use of 
agricultural commodities and food products provided under this 
section. The Secretary shall develop standards by which the feasibil-
ity and effectiveness of the projects shall be measured, and shall 
conduct an ongoing review of the effectiveness of the projects. 
(c) DETERMINATION OF QUANTITIES, VARIETIES, AND TYPES OF 
COMMODITIES.—The Secretary shall determine the quantities, vari-
eties, and types of agricultural commodities and food products to be 
made available under this section. 
(d) EFFECTIVE PERIOD.—This section shall be effective for the 
period beginning on the date of enactment of this Act and ending on 
December 31,1990. 
(e) PROGRESS REPORTS.—The Secretary shall submit annual 
progress reports to Congress beginning on July 1, 1988, and a final 
report on July 1, 1990, regarding each demonstration project carried 
out under this section. Such reports shall include analyses and 
evaluations of the provision and redistribution of agricultural 
commodities and food products under the demonstration projects. In 
addition, the Secretary shall include in the final report any rec-
ommendations regarding improvements in the provision and redis-
tribution of agricultural commodities and food products to commu-
nity food banks and the feasibility of expanding such method of 
provisions and redistribution of agricultural commodities and food 
products to other community food banks. 
SEC. 5. EXTENSION OF ELIGIBILITY OF CERTAIN SCHOOL DISTRICTS TO 
Children and 
RECEIVE CASH OR COMMODITY LETTERS OF CREDIT ASSIST- 
youth. 
ANCE FOR SCHOOL LUNCH PROGRAMS. 
Section 18 of the National School Lunch Act (42 U.S.C. 1769) is 
amended by adding at the end the following new subsection: 
"(e)(1) Upon request to the Secretary, any school district that on 
January 1, 1987, was receiving all cash payments or all commodity 
letters of credit in lieu of entitlement commodities for its school 
lunch program shall receive all cash payments or all commodity 
letters of credit in lieu of entitlement commodities for its school 
lunch program for the duration beginning July 1, 1987, and ending 
December 31,1990. 
"(2) Any school district that elects under paragraph (1) to receive 
all cash payments or all commodity letters of credit in lieu of 
entitlement commodities for its school lunch program shall receive 
bonus commodities in the same manner as if such school district 
was receiving all entitlement commodities for its school lunch 
program.". 
101 STAT. 1740 
PUBLIC LAW 100-237—JAN. 8, 1988 
SEC. 6. EXTENSION OF NATIONAL DONATED COMMODITY PROCESSING 
PROGRAMS. 
Section 1114(aX2)(A) of the Agriculture and Food Act of 1981 
(7 U.S.C. 1431e(aX2)(A)) is amended by striking out "June 30, 1987," 
and inserting in lieu thereof "September 30, 1990,". 
7 u s e 612c note 
SEC 7. ASSESSMENT AND REPORT TO CONGRESS. 
(a) ASSESSMENT.—The Comptroller General of the United States 
shall monitor and assess the implementation by the Secretary of the 
provisions of this Act. 
Qo) REPORT.—Before the expiration of the 18-month period begin-
ning on the date of the enactment of this Act, the Comptroller 
General shall submit to the Committee on Education and Labor and 
the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report of the findings of the assessment conducted as 
required by subsection (a). 
Children and 
youth. 
State and local 
governments. 
SEC. 8. FUNDS FOR NUTRITION SERVICES AND ADMINISTRATION. 
(a) IN GENERAL.—Section 17(h) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(h)) is amended by adding at the end thereof the 
following new paragraph: 
"(5)(A) In addition to the amounts otherwise made available under 
paragraphs (1) and (2), each State agency may convert funds initially 
allocated to the State agency for program food purchases to nutri-
tion services and administration funds for the cost of the State 
agency and local agencies associated with increases in the number of 
persons served, if the State agency has implemented a competitive 
bidding, rebate, direct distribution, or home delivery system as 
described in its approved Plan of Operation and Administration. 
"(B) The Secretary shall— 
"(i) project each such State agency's level of participation for 
the fiscal year, excluding anticipated increases due to use during 
the fiscal year of any of the cost-saving strategies identified in 
subparagraph (A) of this paragraph; and 
"(ii) compute, with an adjustment for the anticipated effects 
of inflation, each such State agency's average administrative 
grant per participant for the preceding fiscal year. 
"(C) Each such State agency may convert funds at a rate equal to 
the amount established by the Secretary under subparagraph (B)(ii) 
of this paragraph for each food package distributed to each addi-
tional participant above the participation level projected by the 
Secretary under subparagraph (B)(i) of this paragraph, up to the 
level of increased participation estimated in its approved Plan of 
Operation and Administration". 
O
t
)
) STATE PLAN OR PLAN AMENDMENT.—Section 17(f) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(f)) is amended by, in paragraph 
(1)(C)— 
(1) striking out "and" at the end of clause (vii); 
(2) redesignating clause (viii) as clause (ix); and 
(3) adding the following new clause: 
"(viii) if the State agency chooses to request the funds conver-
sion authority established in clause (h)(5) of this section, an 
estimate of the increased participation which will result from 
its cost-saving initiative, including an explanation of how the 
estimate was developed; and". 
PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1741 
(c) STUDY OF NUTRITION SERVICES AND ADMINISTRATION FUND-
ING.—The Secretary shall conduct a study of the appropriateness of 
the percentage of the annual appropriation for the program re-
quired by paragraph (hXD of this section to be made available for 
State and local agency costs for nutrition services and administra-
tion, and shall report the results of this study to the Congress not 
later than March 1,1989. Such study shall include an analysis of the 
impact in future years on per participant administrative costs if a 
substantial number of States implement competitive bidding, 
rebate, direct distribution, or home delivery systems and shall exam-
ine the impact of the percentage provided for nutrition services and 
administration on the quality of such services. 
(d) EFFECTIVE DATE.—The amendment made by subsections (a), (b), 
and (c) shall take effect October 1,1987. 
SEC. 9. COORDINATION OF WIC PROGRAM WITH MEDICAID COUNSELING. 
Section 17(f)(lXC)(iii) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)(l)(C)(iii)) is amended by striking out "and maternal and child 
health care programs" and inserting in lieu thereof "maternal and 
child health care, and medicaid programs". 
SEC. 10. STUDY OF MEDICAID SAVINGS FOR NEWBORNS FROM WIC 
PROGRAM. 
(a) STUDY.—The Secretary of Agriculture in consultation with the 
Secretary of Health and Human Services shall conduct a national 
study of savings in the amount of assistance provided to families 
with newborns under State plans for medical assistance approved 
under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) and 
State indigent health care programs, during the first 60-day period 
after birth, as the result of the participation of mothers of newborns 
before birth in the special supplemental food program authorized 
under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786). 
O
b
) REPORT.—Not later than February 1, 1990, the Secretary shall 
submit to Congress a report that describes the results of the study 
conducted under subsection (a). 
(c) FUNDING.—This section shall be carried out using funds made 
available under section 17(g)(3) of the Child Nutrition Act of 1966. 
SEC. 11. SUPPLYING INFANT FORMULA FOR THE WIC PROGRAM. 
Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)) is amended by adding at the end thereof the following new 
paragraph: 
"(16) To be eligible to participate in the program authorized by 
this section, a manufacturer of infant formula that supplies formula 
for the program shall— 
' (A) register with the Secretary of Health and Human Serv-
ices under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321 et seq.); and 
"(B) before bidding for a State contract to supply infant 
formula for the program, certify with the State health depart-
ment that the formula complies with such Act and regulations 
issued pursuant to such Act.". 
SEC. 1
2
. 
OVERSPENDING AND UNDERSPENDING UNDER THE WIC 
PROGRAM. 
Section 17(i)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(i)(3)) is amended— 
State and local 
governments. 
Reports. 
42 u s e 1786 
note. 
State and local 
governments. 
42 u s e 1786 
note. 
State and local 
governments. 
Contracts. 
101 STAT. 1742 
PUBLIC LAW 100-237—JAN. 8, 1988 
(1) in subparagraph (A)— 
(A) by inserting "and subject to subparagraphs (B) and 
(C)" after "paragraph (2)"; and 
(B) by striking out "or" at the end of clause (i) and 
inserting in lieu thereof "and"; and 
(2) by adding at the end thereof the following new subpara-
graph: 
State and local 
"(C) The total amount of funds transferred from any fiscal year 
governments. 
under clauses (i) and (ii) of subparagraph (A) shall not exceed 1 
percent of the amount of the funds allocated to a State agency for 
such fiscal year.". 
7 u s e 612c note. 
SEC. 13. DEFINITIONS. 
For purposes of this Act: 
(1) The term "donated commodities" means agricultural 
commodities and their products that are donated by the Sec-
retary to recipient agencies. 
(2) The term "entitlement commodities" means agricultural 
commodities and their products that are donated and charged 
by the Secretary against entitlements established under pro-
grams authorized by statute to receive such commodities. 
(3) The term "recipient agency" means— 
(A) a school, school food service authority, or other 
agency authorized under the National School Lunch Act or 
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
operate breakfast programs, lunch programs, child care 
food programs, summer food service programs, or similar 
programs and to receive donations of agricultural commod-
ities and their products acquired by the Secretary through 
price support, surplus removal, or direct purchase; 
(B) a nutrition program for the elderly authorized under 
title III of the Older Americans Act of 1965 (42 U.S.C. 3021 
et seq.) to receive donations of agricultural commodities and 
their products acquired by the Secretary through price 
support, surplus removal, or direct purchase; 
(C) an agency or organization distributing commodities 
under the commodity supplemental food program estab-
lished in section 4 of the Agriculture and Consumer 
Protection Act of 1973 (7 U.S.C. 612c note); 
(D) any charitable institution, summer camp, or assist-
ance agency for the food distribution program on Indian 
reservations authorized under section 4 of the Agriculture 
and Consumer Protection Act of 1973 (7 U.S.C. 612c note) to 
receive donations of agricultural commodities and their 
products acquired by the Secretary through price support, 
surplus removal, or direct purchase; or 
(E) an agency or organization distributing commodities 
under a program established in section 202 of the Tem-
porary Emergency Food Assistance Act of 1983 (7 U.S.C. 
612c note). 
(4) The term "State distribution agency" means a State 
agency responsible for the intrastate distribution of donated 
commodities. 
(5) The term "Secretary" means Secretary of Agriculture, 
unless the context specifies otherwise. 
PUBLIC LAW 100-237—JAN. 8, 1988 
101 STAT. 1743 
SEC. 14. GENERAL EFFECTIVE DATE. 
7 USC 612c note. 
Except as otherwise provided in this Act, this Act and the amend-
ments made by this Act shall take effect on the date of the enact-
ment of this Act. 
Approved January 8, 1988. 
LEGISLATIVE HISTORY—H.R. 1340 (S. 305): 
HOUSE REPORTS: No. 100-216, Pt. 1 (Comm. on Agriculture) and Pt. 2 (Coram, on 
Education and Labor). 
SENATE REPORTS: No. 100-127 accompanying S. 305 (Comm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 133 (1987): 
Aug. 3, considered and passed House. 
Aug. 5, considered and passed Senate, amended, in lieu of S. 305. 
Dec. 17, House concurred in Senate amendment with an amendment. 
Dec. 19, Senate concurred in House amendment.