program participation in any State does not require all funds so apportioned, the Secretary may reapportion such excess funds to such other States in consideration of need, as he may determine: Provided further, That benefits under this section to schools or child-care centers shall in no case exceed the cost of the agricultural commodities or products thereof delivered to the school or child-care center as established by certificates executed by the authorized representative of the sponsoring agency: Provided further, That such sponsoring agency shall maintain accounts and records clearly establishing costs of agricultural commodities or products furnished in the program and that such accounts and records shall be available for audit by representatives of the Department of Agriculture: Provided further, That these funds may be used for, or to make payments in connection with the purchase of such agricultural commodities and for exchanging, distributing, disposing, transporting, storing, processing, inspection, commission, and other incidental costs and expenses without regard to the provisions of section 3709 of the Revised Statutes and without regard to the 25 per centum limitation contained in this section: Provided further, That not more than 2 per centum of the funds made available under this amendment shall be used to provide food for children in child-care centers. The amount of funds used in any State during any fiscal year under this paragraph shall not exceed the total amount otherwise furnished for the same purpose by or on behalf of the State and local school authorities and other sponsoring agencies in such State including the value of donated services and supplies, as certified by the respective schools, care centers or agencies having control thereof." SECTION 32 FUNDS FOR SCHOOL LUNCH AND CHILD CARE PROGRAMS, FISCAL YEAR 1946 (Pubic Law 52, 79th Cong., May 5, 1945, 59 Stat. 157) The Agriculture Appropriation Act, fiscal year 1946, approved the use of section 32 funds for the continuance during the fiscal year 1946 of the school lunch program. The committee stated in reporting this legislation, "This is the same amount, from the same source, as the program for the current fiscal year under substantially the same conditions. Many of the commodities included in the school lunch program are no longer in surplus and for that reason are not authorized for inclusion in the general program carried on under the permanent appropriation. This has resulted in the inclusion of a specific provision in the bill authorizing the use of these moneys for the school lunch program. However, there are still some surpluses for which the school lunch program constitutes an outlet. These surpluses may be of temporary character, yet while they exist they constitute serious problems in maintaining a well-balanced market for the output of the American farm. The school lunch program, therefore, is of double utility and one which apparently commands the favor of a very substantial majority of Members of both Houses of Congress." "Not exceeding $50,000,000 of the funds appropriated by and pursuant to section 32 as amended, of the Act of August 24, 1935 (7 U.S.C. 612c), may also be used during the current fiscal year to provide food for consumption by children in nonprofit schools of high school grade or under and for child-care centers through (a) the purchase, processing, and exchange, and the distribution of agricultural commodities and products thereof; or (b) the making of payments to such schools and centers or agencies having control thereof in connection with the purchase and distribution of agricultural commodities in fresh or processed form and, when desirable, for the processing and exchange of such commodities and their products; or (c) by such other means as the Secretary may determine: Provided, That funds made available hereunder for a school lunch program shall be apportioned for expenditure in the States, territories, possessions, and the District of Columbia in accordance with school enrollment and need, as determined by the Secretary, except that if program participation in any State, territory, possession, or the District of Columbia does not require all funds so apportioned, the Secretary may reapportion such excess funds to such other States, territories, possessions, or the District of Columbia in consideration of need, as he may determine; Provided further, That benefits under (b) of this paragraph to schools or child-care centers or other sponsoring agencies shall in no case exceed the cost of the agricultural commodities or products thereof purchased by the school or child-care center or other sponsoring agencies as established by certificates executed by the authorized representative of the sponsoring agency: Provided further, That such sponsoring agency shall maintain accounts and records clearly establishing cost of agricultural commodities or products furnished in the program and that such accounts and records shall be available for audit by representatives of the Department of Agriculture: Provided further, That these funds may be used for, or to make payments in connection with, the purchase of such agricultural commodities and for exchanging, distributing, disposing, transporting, storing, processing, inspection, commission, and other incidental costs and expenses without regard to the provisions of section 3709 of the Revised Statutes and without regard to the 25 per centum limitation contained in said section 32: Provided further, That not more than 2 per centum of the funds made available hereunder for a school lunch program shall be used to provide food for children in child-care centers. The amount of funds available hereunder for a school lunch program used in any State, territory, possession, or the District of Columbia during any fiscal year shall not exceed the total amount otherwise furnished for the same purpose by or on behalf of the school authorities and other sponsoring agencies in such State, territory, possession, or District of Columbia including the value of donated services and supplies, as certified by the respective schools, care centers, or agencies having control thereof". ADDITIONAL SECTION 32 FUNDS FOR SCHOOL LUNCH, FISCAL YEAR 1946 (Public Law 269, 79th Cong., Dec. 28, 1945, 59 Stat. 645) "The limitation of $50,000,000 for the objects and for the purposes of the item "School Lunch Program" contained in the Department of Agriculture Appropriation Act, 1946, is increased by $7,500,000". "National School Lunch Act", section 9, donation of commodities purchased with section 32 funds. (Public Law 396, 79th Cong., June 4, 1946, 60 Stat. 231) The National School Lunch Act of June 1946 provided basic authority for a continuing program of Federal assistance to the school lunch program. Section 9 of that act authorized the donation to nonprofit schools of commodities purchased under the authority of section 32. Commodities purchased under the authority of section 32 of the act of August 24, 1935 (49 Stat. 744), as amended, may be donated by the Secretary to schools. in accordance with the needs as determined by local school authorities, for utilization in the school lunch program under this act as well as to other schools carrying out nonprofit school lunch programs and institutions authorized to receive such commodities. SECTION 32 FUNDS FOR DISPOSAL OF SURPLUSES, SCHOOL LUNCH AND ACP (Public Law 422, 79th Cong., June 22, 1946, 60 Stat. 289) This authority provided for reappropriation of fiscal years 1944, 1945, and 1946 unobligated balances for section 32 funds; $42,500,000 to conservation and use (ACP payments), $75 million for purposes of National School Lunch Act. To enable the Secretary to further carry out the provisions of section 32, as amended, 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 subject to all provisions of law relating to the expenditure of funds appropriated by such section 32, there is hereby reappropriated for the fiscal year 1947 the unobligated balances of the funds made available for the purposes of such sec tion 32 for the fiscal years 1944, 1945, and 1946, less $42,500,000, which is appropriated herein for "Conservation and use of agricultural land resources". Such sums shall be in addition to, and not in substitution for, other appropriations made by or for the purposes of such section 32: Provided, That not exceeding $75,000,000 of the funds appropriated by and pursuant to such section 32 may also be used during the fiscal year 1947, without regard to the 25 per centum limitation contained in said section 32 to carry out the purposes and provisions of the National School Lunch Act, approved June 4, 1946 (Public Law 396) such amount to be exclusive of funds expended in accordance with the last sentence of section 9 of the National School Lunch Act. SECTION 32 FUNDS FOR DISPOSAL OF SURPLUSES, AND SCHOOL LUNCH, (Public Law 266, 80th Cong., June 30, 1947, 61 Stat. 550-551) Under the Agriculture Appropriation Act, fiscal year 1948, $44 million of permanent appropriation was made available for 1948 section 32 purposes; $65 million transferred to school lunch program; balance ($40,023,930) returned to Treasury. The House Appropriations Committee report, fiscal year 1948, stated the following relative to the use of section 32 funds-"This fund is intended to provide relief in emergent periods when a surplus problem exists." "Notwithstanding any other provision of section 32, Public Law Numbered 320, Seventy-fourth Congress, approved August 24, 1935, as amended (7 U.S.C., 1940 edition, 612c), not more than $44,000,000 shall be available during the fiscal year ending June 30, 1948, for use in effectuating the purposes of that Act. To enable the Secretary to carry out the provisions of the National School Lunch Act of June 4, 1946 (Public Law 396), there is hereby made available $65,000,000 of the funds appropriated for the fiscal year 1948 by section 32 of the Act approved August 24, 1935 (7 U.S.C. 612c), such amount to be without regard to the 25 per centum limitation contained in said section 32, and to be exclusive of funds expended in accordance with the last sentence of section 9 of the National School Lunch Act: Provided, That no part of such funds shall be used for nonfood assistance under section 5 of said Act. The remainder of the fund appropriated by said Act for the fiscal year 1948 is hereby rescinded effective July 1, 1947, and shall be carried to the surplus fund and covered into the Treasury immediately thereafter". SECTION 32 FUNDS USED UNDER ECA PROGRAM (Public Law 472, 80th Cong., Public Law 535, 81st Cong., Apr. 3, 1948, 62 Stat. 137, 64 Stat. 199) Authority was provided in the Foreign Assistance Acts of 1948 and 1950, for the Secretary of Agriculture to dispose of surplus commodities to other Government agencies and to use section 32 funds to pay not to exceed 50 percent of the sales price therefor. "SEC. 112(f). Subject to the provisions of this section, but notwithstanding any other provision of law, in order to encourage utilization of surplus agricultural commodities pursuant to this or any other Act providing for assistance or relief to foreign countries, the Secretary of Agriculture, in carrying out the purposes of clause (1), section 32, Public Law 320, Seventy-Fourth Congress, as amended, may make payments, including payments to any government agency procuring or selling such surplus agricultural commodities, in an amount not to exceed 50 per centum of the sales price (basis free along ship or free on board vessel, United States ports), as determined by the Secretary of Agriculture, of surplus agricultural commodities. The rescission of the remainder of section 32 funds by the Act of July 30, 1947 (Public Law 266, Eightieth Congress), is hereby canceled and such funds are hereby made available for the purposes of section 32 for the fiscal year ending June 30, 1948". SECTION 32 FUNDS FOR SCHOOL LUNCH-LIMITATION OF THE USE OF SECTION 32 FUNDS FOR INSULATION PRODUCTS, FISCAL YEAR 1949 (Public Law 712, 80th Cong., June 19, 1948, 62 Stat. 526-527) To enable the Secretary to carry out the provisions of the National School Lunch Act of June 4, 1946 (Public Law 396), there is hereby made available $75,000,000 of the funds appropriated for the fiscal year 1949 by section 32 of the Act approved August 24, 1935 (7 U.S.C. 612c), such amount to be without regard to the 25 per centum limitation contained in said section 32, and to the exclusive of funds expended in accordance with the last sentence of section 9 of the National School Lunch Act: Provided, That no part of such funds shall be used for nonfood assistance under section 5 of said act. Not to exceed $500,000 of the appropriation made available by section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be used to pay any subsidy, benefit, or indemnity to manufacturers of or dealers in insulation products. 95910-63-pt. 326 AGRICULTURAL ACT OF 1948-ACCUMULATION AND USE OF SECTION 32 FUNDS (Public Law 897, 80th Cong., July 3, 1948, 62 Stat. 1247 and 1257) Section 301 of the Agricultural Act of 1948 provided for accumulation up to $300 million, of section 32 funds not currently required for program purposes. Section 302 authorized nonstorable nonbasic commodities (except Irish potatoes) to be supported only by means of section 32 funds and the Commodity Credit Corporation reserve for the postwar price support of agriculture. (Sec. 302 was later repealed by the Agricultural Act of 1949, 63 Stat. 1057). SECTION 32 FUNDS "SEC. 301. Section 32, as amended, of the Act entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935 (U.S.C. title 7, sec. 612c), is amended by adding at the end thereof the following: "The sums appropriated under this section shall, notwithstanding the provisions of any other law, continue to remain available for the purposes of this section until expended; but any excess of the amount remaining unexpended at the end of any fiscal year over $300,000,000 shall, in the same manner as though it had been appropriated for the service of such fiscal year, be subject to the provisions of section 3690 of the Revised Statutes (U.S.C., title 31, sec. 712), and section 5 of the Act entitled "An Act making appropriation for the legislative, executive, and judicial expenses of the Government for the year ending June thirtieth, eighteen hundred and seventy-five, and for other purposes"' (U.S.C. title 31, sec. 713).'" SEC. 302 (c) *** The Commodity Credit Corporation shall not carry out any operation to support the price of any nonbasic agricultural commodity (other than Irish potatoes) which is so perishable in nature as not to be reasonably storable without excessive loss or excessive cost; but any such operation may be carried out by the Secretary through other means available to him such as those provided by section 32, Public Law Numbered 320, Seventy-fourth Congress, approved August 24, 1935, as amended: Provided, That the foregoing provisions shall not be construed to prohibit the Commodity Credit Corporation from supporting the price of any perishable nonbasic agricultural commodity by a loan, purchase, payment, or other operation undertaken with respect to a storable commodity processed from such perishable nonbasic agricultural commodity: Provided further, That the Secretary, in carrying out programs with respect to perishable and nonperishable commodities under section 32 of Public Law Numbered 320, Seventy-fourth Congress, approved August 24, 1935, as amended, and section 6 of the National School Lunch Act, may utilize the services and facilities of the Commodity Credit Corporation (including but not limited to procurement by contract) and make advance payments to it: And provided further, That in any fiscal year, if at the end of the preceding fiscal year the sums appropriated under said section 32 and remaining unexpected do not exceed $300,000,000, Commodity Credit Corporation may, as provided in section 302(a) of this Act, carry out any operation to support the price of any such perishable, nonbasic agricultural commodity to the extend that the reserve for the postwar price support of agriculture established pursuant to the First Supplemenal Appropriation Rescission Act of 1946 (60 Stat. 8) and other funds appropriated for agricultural price support are sufficient to cover any losses which may be incurred in connection with such operation." DEPARTMENT OF AGRICULTURE APPROPRIATION ACT, 1950 (Public Law 146, 81st Cong., June 29, 1949, 63 Stat. 343) This provision limited the use of section 32 funds for insulation products: "Not to exceed $150,000 of the appropriation made available by section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be used to pay any subsidy, benefit, or indemnity to manufacturers of or dealers in insulation products." INTERNATIONAL WHEAT AGREEMENT ACT OF 1949, AS AMENDED (Public Law 81-421, Oct. 27, 1949, 63 Stat. 945) Section 32 funds may be used pursuant to the International Wheat Agreement Act: "SEC. 2. ** Nothing herein shall be construed to preclude the Secretary of Agriculture, in carrying out programs to encourage the exportation of agricul tural commodities and products thereof pursuant to section 32 of Public Law 320, Seventy-fourth Congress, as amended, from utilizing funds available for such programs in such manner as, either separately or jointly with the Commodity Credit Corporation, to exercise the rights, obtain the benefits, and fulfill all or any part of the obligations of the United States under the International Wheat Agreement or to preclude the Commodity Credit Corporation in other wise carrying out wheat and wheat-flour export programs as authorized by law." AGRICULTURAL ACT OF 1949 (Public Law 439, 81st Cong., Oct. 31, 1949, 63 Stat. 1054) This act authorizes the use of section 32 funds for price support and CCC services and facilities for section 32 programs; also amends section 32 to include the "principal use" provision: "SEC. 401. (a) The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation and other means available to him. "SEC. 404. The Secretary, in carrying out programs under section 32 of Public Law Number 320, 74th Congress, approved August 24, 1935, as amended, and section 6 of the National School Lunch Act may utilize the services and facilities of the Commodity Credit Corporation (including but not limited to procurement by contract), and make advance payments to it. "SEC. 411. Section 32, as amended, of the Act, entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935 (U.S.C., title 7, sec. 612c), is amended by inserting before the last sentence thereof the following: "The sums appropriated under this section shall be devoted principally to perishable nonbasic agricultural commodities (other than those designated in title II of the Agricultural Act of 1949) and their products.'' GENERAL APPROPRIATION ACT OF 1951 (Public Law 759, 81st Cong., Sept. 6, 1950, 64 Stat. 765-767) This act rewrote and brought up to date section 3679, the so-called Antideficiency Act. It was made clear in the revision of this act that section 32 funds would not be subject to apportionment (other than funds for administrative expenses): "SEC. 1211. Section 3679 of the Revised Statutes, as amended, is hereby further amended to read as follows: * * * (2) Any appropriation available to an agency, which is required to be apportioned under subsection (c) of this section, shall be apportioned or reapportioned in writing by the Director of the Bureau of the Budget * * * Nothing in this subsection shall be so construed as to interfere with the initiation, operation, and administration of agricultural price support programs and no funds (other than funds for administrative expenses) available for price support, surplus removal, and available under Section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c), with respect to agricultural commodities shall be subject to apportionment pursuant to this section. The provisions of this section shall not apply to any corporation which obtains funds for making loans, other than paid in capital funds without legal liability on the part of the United States.' SECTION 32, PROHIBITION AGAINST EXPORT PAYMENTS UNDER MSA (Public Law 547, 82d Cong., July 15, 1952, 66 Stat. 654) This proviso in the First Supplemental Appropriation Act, fiscal year 1953 prohibited the use of section 32 funds for export payments on commodities to MSA countries purchased with MSA funds: "Provided further, That no part of such funds shall be expended for the purchase of agricultural products or products produced from agricultural products not declared to be in short supply in the United States by the Secretary of Agriculture, at less than the prevailing market price for such commodity within the United States or if obtained from the Commodity Credit Corporation stocks, at less than the support price of such commodity including handling and storage costs, but nothing in this proviso shall be construed to prevent the operation of export payment programs, other than those financed from funds |