An Act to revise the formula for apportioning cash assistance funds among the States under the National School Lunch Act, and for other purposes
PL 87-823 (H.R.11665), enacted 10/15/1962

944 
PUBLIC LAW 87-823-OCT. 15, 1962 
[76 STAT. 
Public Law 87-823 
October 15, 1962 
^ 
ACT 
[H. R. 11665] 
To revise the formula for apportioning casli assistance fvmds among the States 
under the National School Lunch Act, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
National School United States of Amer'ica in Congress assembled, That section 3 of the 
mert. '
^ ' ""*" ' National School Lunch Act is amended to read as follows: 
60 Stat. 230. 
42 use 1752. 
u 
^. 
APPROPRIATIONS AUTHORIZED 
"SEC. 3. For each fiscal year there is hereby a"uthorized to be ap-
propriated, 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 
42 use 1760. 
of this Act, other than section 11." 
42 use 1753. 
SEC. 2, Section 4 of the National School Lunch Act is amended to 
read as follows: 
"APPORTIONMENTS 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 
42 use 1754. 
specified in section 5, shall be available to the Secretary for supplying 
agricultural commodities and other foods for the program in accord-
ance with the provisions of this Act. 
The Secretary shall appor-
tion 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 on 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 fac-
tors (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 apportionments to the remaining States in the same 
manner. 
Notwithstanding the foregoing provisions of this section, 
(\) for thc' fiscal year beginning July 1, 1962, three-quarters of any 
funds available for apportionment among the States shall be appor-
tioned in the manner used prior to such fiscal year, and one-quarter 
of any such funds shall be apportioned in accordance with the fore-
going sentences of this section, (2) for the fiscal year beginning July 
1, 1963, one-half of any funds available for apportionment among 
the States shall be apportioned in the manner used prior to the fiscal 
year beginning July 1, 1962, and one-half of any such funds shall be 
apportioned in accordance with the foregoing sentences of this sec-
tion, (3) for the fiscal year beginning July 1, 1964, one-quarter of 
any funds available for apportionment among the States shall be 
apportioned in the manner used prior to the fiscal year beginning 
July 1,1962, and three-quarters of any such funds shall be apportioned 
in accordance with the foregoing sentences of this section, and (4) 
for the five fiscal years in the period beginning July 1, 1962, and end-
ing June 30, 1967, the amount apportioned to American Samoa shall 
be $25,000 each year, which amount shall be first deducted from the 
funds available for apportionment in determining the amounts to be 
apportioned to the other States." 
76 STAT.] 
PUBLIC LAW 87-823-OCT. 15, 1962 
945 
SEC. 3. (a) Section 5 of the National School Lunch Act is amended 
by striking out the last sentence thereof. 
(b) Section 6 of the National School Lunch Act is amended by 
striking out "and less the amount apportioned to him pursuant to sec-
tions 4, 5, and 10" and inserting in lieu thereof the following: ", less 
the amount apportioned by him pursuant to sections 4, 5, and 10, and 
less the amount appropriated pursuant to section 11". 
SEC. 4. Section 10 of the National School Lunch Act is amended by 
striking out "the same proportion of the funds as the number of chil-
dren between the ages of 5 and 17, inclusive, attending nonprofit pri-
vate schools within the State, is of the total number of persons of those 
ages within the State attending school" and inserting in lieu thereof 
the following: "an amount which bears the same ratio to such funds 
as the number of lunches, consisting of a combination of foods and 
meeting the minimum requirements prescribed by the Secretary pur-
suant to section 9, served in the preceding fiscal year by all nonprofit 
private schools participating in the program under this Act within 
the State, as determined by the Secretary, bears to the participation 
rate for the State". 
SEC. 5. Section 11 of the National School Lunch Act is redesignated 
as section 12 and subsections (c) and (d) thereof are amended to read 
us follows: 
"(c) In carrying out the provisions of this Act, neither the Secre-
tary nor the State shall impose any requirement with respect to teach-
ing pei-sonnel, curriculum, instruction, methods of instruction, and 
materials of instruction in any school. 
"(d) For the purposes of this Act— 
"(1) 'State' means any of the fifty States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, or American Samoa. 
"(2) 'State educational agency' means, as the State legislature 
may determine, (A) the chief State school officer (such as the 
State superintendent of public instruction, commissioner of edu-
cation, or similar officer), or (B) a board of education controlling 
ihe State department of education. 
"(3) 'Nonprofit private school' means any private school 
exempt from income tax under section 501(c) (3) of the Internal 
Revenue Code of 1954. 
"(4) 'Nonfood assistance' means equipment used by schools in 
storing, preparing, or serving food for schoolchildren. 
"(5) 'Participation rate' for a State means a number equal to 
the number of lunches, consisting of a combination of foods and 
meeting the minimum requirements prescribed by the Secretary 
pursuant to section 9, served in the preceding fiscal year by schools 
participating in the program under this Act in the State, as deter-
mined by the Secretary. 
" (6) 'Assistance need rate' (A) in the case of any State having 
an average annual per capita income equal to or greater than the 
average annual per capita income for all the States, shall be 6; 
and (B) in the case of any State having an average annual per 
capita income less than the average annual per capita income for 
all the States, shall be the product of 5 and the quotient obtained 
by dividing the average annual per capita income for all the 
States by the average annual per capita income for such State, 
except that such product may not exceed 9 for any such State. 
For the purposes of this paragraph (i) the average annual per 
capita income for any State and for all the States shall be deter-
mined by the Secretary on the basis of the average annual per 
capita income for each State and for all the States for the three 
most recent years for which such data are available and certified 
42 u s e 1754. 
Nonprofit pri-
vate schools. 
42 u s e 1759. 
42 u s e 1758. 
42 u s e 1760. 
Definitions. 
68A Stat. 163. 
26 u s e 501. 
42 u s e 1758. 
78135 Q-63—63 
946 
PUBLIC LAW 87-823-OCT. 15, 1962 
[76 STAT. 
to the Secretary by the Department of Commerce; and (ii) the 
average annual per capita income for American Samoa shall be 
disregarded in determining the average annual per capita income 
for all the States for periods ending before July 1, 1967. 
"(7) 'School' means any public or nonprofit private school of 
high school grade or under and, with respect to Puerto Rico, 
shall also include nonprofit child-care centers certified as such 
by the Governor of Puerto Rico." 
SEC. 6. The National School Lunch Act is further amended by 
42 use 1759. 
inserting immediately after section 10 thereof the following new 
section: 
"SPECIAL ASSISTANCE 
Ante, p. 945. 
"SEC. 11. (a) There is hereby authorized to be appropriated 
$10,000,000 for the fiscal year ending June 30, 1963, and su^h sums 
as may be necessary for each succeedmg fiscal year to provide special 
assistance to schools drawing attendance from areas in which poor 
economic conditions exist, for the purpose of helping such schools 
to meet the requirement of section 9 of this Act concerning the serv-
ice of lunches to children unable to pay the full cost of such lunches. 
"(b) Of the sums appropriated pursuant to this section for any 
fiscal year, 3 per centum shall be available for apportionment to 
Puerto Rico, the Virgin Islands, Guam, and American Samoa. 
From 
the funds so available the Secretary shall apportion to each such 
State an amount which bears the same ratio to the total of such funds 
as the number of free or reduced-price lunches served in accordance 
with section 9 of this Act in such State in the preceding fiscal year 
bears to the total number of such free or reduced-price lunches served 
in all such States in the preceding fiscal year: Provided, That for the 
fiscal year ending June 30,1963, $5,000 shall be apportioned to Amer-
ican Samoa, which amount shall be first deducted from the total 
amount available for apportionment under this subsection. 
If any 
such State cannot utilize for the purposes of this section all of the 
funds apportioned to it, the Secretary shall make further apportion-
ment on the same basis as the initial apportionment to any such States 
which justify the need for additional funds for such purposes. 
"(c) Of the remaining sums appropriated pursuant to this section for 
any fiscal year, not less than 50 per centum shall be apportioned among 
States, other than Puerto Rico, the Virgin Islands, Guam, and Ameri-
can Samoa, on the basis of the following factors for each State: (1) 
the number of free or reduced-price luncnes served in accordance with 
section 9 of this Act in the preceding fiscal year, and (2) the assistance 
need rate. These factors shall be applied in the following manner: 
First, determine an index for each State by multiplying factors (1) 
and (2); second, divide this index by the sum of the indices for all 
such States; and, third, apply the figure thus obtained to the total 
funds to be apportioned. 
Any funds so initially apportioned which 
cannot be used for the purpose of this section by the State to which 
apportioned, together with the remainder of the funds available under 
this subsection, shall be further apportioned by the Secretary on the 
same basis as the initial apportionment to such States w^hich justify 
on the basis of operating experience the need for additional funds to 
meet the need of students in such States for free or reduced-price 
lunches in schools deemed eligible by their State educational agencies 
for special assistance in accordance with the factors set forth in subsec-
tion (e) of this section. 
"(d) Payment of the funds apportioned to any State under this 
42 use 1756. 
section shall be made as provided in the last sentence of section 7 of 
the Act. 
76 STAT.] 
PUBLIC LAW 87-824-OCT. 15, 1962 
M7 
"(e) Funds paid to any State during any fiscal year pursuant 
to this section snail be disbursed to selected schools in such State to 
assist such schools in the purchase of agricultural commodities and 
other foods. 
The selection of schools and the amounts of funds that 
each shall from time to time receive (within a maximum per lunch 
Amount established by the Secretary for all the States) shall be de-
termined by the State educational agency on the basis of the following 
factors: (1) The economic condition of the area from which such 
schools draw attendance; (2) the needs of pupils in such schools for 
free or reduced-price lunches; (3) the percentages of free and reduced-
price lunches being served in such schools to their pupils; (4) the pre-
vailing price of lunches in such schools as compared with the average 
prevailing price of lunches served in the State under this Act; and 
(5) the need of such schools for additional assistance as reflected by the 
financial position of the school lunch programs in such schools. 
"(f) It in any State the State educational agency is not permitted 
by law to disburse funds paid to it under this Act to nonprofit private 
schools in the State, the Secretary shall withhold from the funds 
apportioned to such State under subsections (b) or (c) of this section 
an amount which bears the same ratio to such funds as the number 
of free and reduced-price lunches served in accordance with section 9 
of this Act in the preceding fiscal year by all nonprofit private schools 
42 use i758. 
participating in the program under this Act in such State bears to 
the number of such free and reduced-price lunches served during such 
year by all schools participating in the program under this Act in 
such State. The Secretary shall disburse the funds so withheld 
directly to the nonprofit private schools within such State for the 
same purposes and subject to the same conditions as are applicable to 
a State educational agency disbursing funds under this section. 
"(g) In carrying out this section, the terms and conditions govern-
ing the operation of the school lunch program set forth in other sec-
tions of this Act, including those applicable to funds apportioned or 
j)aid pursuant to sections 4 or 5 but excluding the provisions of sec- 
42 use 1753, 
tion 7 relating to matching, shall be applicable to the extent they are ^^^'*' ^'^®' 
not inconsistent with the express requirements of this section." 
Approved October 15, 1.962. 
Public Law 87-824 
A N A C T 
October 15, 1962 
To amend the Agricultural Adjustment Act of 1938 relating to the lease and. 
[H. R- 12«55] 
transfer of tobacco acreage allotments. 
Be it. enacted hy the Senate and House of Revresentatives 
of the 
United States of America in Congress assemhled^ That the Agricul-
tural Adjustment Act of 1938, as amended, is further amended (1) by 
changing the language enclosed in parentheses in the first sentence of 
section 316(a) to read "(other than a Burley tobacco acreage allot-
ment, and for the 1963 crop year, other than a cigar-filler and cigar-
binder (types 42j 43, 44, 53, 54, and 55) tobacco acreage allotment)"; 
and (2) by striking the period and inserting at the end of the second 
sentence of subsection 316(b) the following: ": Provided^ That no 
such lease shall be renewed for 1963 for cigar-filler and cigar-binder 
(types 42,43,44, 53, 54, and 55) tobacco." 
Approved October 15, 1962. 
Tobacco. 
Acreage allot-
ment. 
75 Stat. 469. 
7 u s e 1314b.