7 U.S.C. § 612c: Appropriation to encourage exportation and domestic consumption of agricultural products

There is appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936 an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year. Such sums shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage the domestic consumption of such commodities or products by diverting them, by the payment of benefits or indemnities or by other means, from the normal channels of trade and commerce or by increasing their utilization through benefits, indemnities, donations or by other means, among persons in low income groups as determined by the Secretary of Agriculture; and (3) reestablish farmers’ purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final. The sums appropriated under this section shall be expended for such one or more of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will effectuate substantial accomplishment of any one or more of the purposes of this section. Notwithstanding any other provision of this section, the amount that may be devoted, during any fiscal year after June 30, 1939 , to any one agricultural commodity or the products thereof in such fiscal year, shall not exceed 25 per centum of the funds available under this section for such fiscal year. The sums appropriated under this section shall be devoted principally to perishable nonbasic agricultural commodities (other than those receiving price support under section 1446 of this title ) and their products. 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 $500,000,000 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 1 of the Revised Statutes, and section 5 1 See References in Text note below. 1 of the Act entitled “An Act making appropriations 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”. A public or private nonprofit organization that receives agricultural commodities or the products thereof under clause (2) of the second sentence may transfer such commodities or products to another public or private nonprofit organization that agrees to use such commodities or products to provide, without cost or waste, nutrition assistance to individuals in low-income groups. For purposes of this section, the term ‘to glean’ means to collect unharvested crops from the fields of farmers, or to obtain agricultural products from farmers, processors, or retailers, in order to distribute the products to needy individuals, including unemployed and low-income individuals, and the term includes only those situations in which agricultural products and access to fields and facilities are made available without charge. The Secretary of Agriculture (hereafter in this section referred to as the ‘Secretary’) is authorized to assist States and private nonprofit organizations in establishing Gleaning Clearinghouses (hereafter in this section referred to as a ‘Clearinghouse’). initiate and carry out gleaning activities, and to assist other organizations and individuals to do so, through lectures, correspondence, consultation, or such other measures as the Secretary may consider appropriate; collect from public and private sources (including farmers, processors, and retailers) information relating to the kinds, quantities, and geographical locations of agricultural products not completely harvested; gather, compile, and make available to public and nonprofit private organizations and to the public the statistics and other information collected under this paragraph, at reasonable intervals; farmers, processors, and retailers may report to a Clearinghouse for dissemination information regarding unharvested crops and agricultural products available for gleaning, and may also report how they may be contacted; public and nonprofit organizations that wish to glean or to assist others to glean, may report to a Clearinghouse the kinds and amounts of products that are wanted for gleaning, and may also report how they may be contacted; persons who can transport crops or products may report the availability of free transportation for gleaned crops or products; and information about gleaning can be provided without charge by a Clearinghouse to the persons and organizations described in clauses (i), (ii), and (iii); organize groups to engage in gleaning; and distribute to needy individuals, including low-income and unemployed individuals, food and other agricultural products that have been gleaned; or advertise in print, on radio, television, or through other media, as the Secretary considers to be appropriate, the services offered by a Clearinghouse under this section.” “This Act [amending section 1431e of this title and sections 1755, 1769, and 1786 of Title 42, The Public Health and Welfare, and enacting provisions set out as notes under this section and section 1786 of Title 42 ] may be cited as the ‘Commodity Distribution Reform Act and WIC Amendments of 1987’. 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 [sic] to the needs of the recipient agencies. should be improved as an effective means of removing agricultural surpluses from the market and providing nutritious high-quality foods to recipient agencies; is inextricably linked to the agricultural support and surplus removal programs; and is an important mission of the Secretary of Agriculture. consult with the advisory council established under paragraph (3); 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 of the quality, size, and form most usable by recipient agencies; and 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. the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 [ Pub. L. 93–86 ] ( 7 U.S.C. 612c note); the program established under section 4(b) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2013(b) ); 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); the school breakfast program established under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ); 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 the emergency food assistance program established under the Emergency Food Assistance Act of 1983 ( Public Law 100–237 [ Pub. L. 98–8, title II ]; 7 U.S.C. 612c note) [ 7 U.S.C. 7501 et seq.]; and programs under which food is donated to charitable institutions. representatives of recipient agencies, including food banks; representatives of food processors and food distributors; representatives of agricultural organizations; representatives of State distribution agency directors; and representatives of State advisory committees. 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. 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. 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. The council shall expire on September 30, 1996 . to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation; to purchase surplus agriculture commodities through section 32 of the Act of August 24, 1935 ( 7 U.S.C. 612c ); and the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 [ Pub. L. 93–86 ] ( 7 U.S.C. 612c note); the program established under section 4(b) of the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008] ( 7 U.S.C. 2013(b) ); 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); the school breakfast program established under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ); and 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 implement procedures to monitor the manner in which State distribution agencies carry out their responsibilities; 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); make available to State agencies summaries of the specifications with respect to such commodities and products; and require State agencies to make such summaries available to recipient agencies on request; 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 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; 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); 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; establish a value for donated commodities and products to be used by State agencies in the allocation or charging of commodities against entitlements; and 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. 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. 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. 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’); 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; 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; 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 test the product of such processing with the recipient agencies before entering into a contract for such processing; and develop a system for monitoring product acceptability. 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; minimum performance standards to be followed by State agencies responsible for intrastate distribution of donated commodities and products; procedures for allocating donated commodities among the States; and to remove surplus stocks of agricultural commodities through the Commodity Credit Corporation; 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 the commodity distribution and commodity supplemental food programs established under sections 4(a) and 5 of the Agriculture and Consumer Protection Act of 1973 [ Pub. L. 93–86 ] ( 7 U.S.C. 612c note); the program established under section 4(b) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2013(b) ); 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); the school breakfast program established under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ); and the donation of surplus commodities to provide nutrition services under section 311 of the Older Americans Act of 1965 ( 42 U.S.C. 3030a ). 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 regulations as required by subparagraphs (A), (B), and (C) of paragraph (1) before the end of the 270-day period beginning on such date. 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. 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. The information shall be collected at least once every 2 years. The Secretary shall provide the recipient agencies a means for voluntarily submitting customer acceptability information. 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. The Secretary shall require that recipient agencies purchase, whenever possible, only food products that are produced in the United States. in the case of recipient agencies that have unusual or ethnic preferences in food products; or for such other circumstances as the Secretary considers appropriate. 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. 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. 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. The Secretary may use the funds of the Commodity Credit Corporation and funds made available to carry out section 32 of the Act of August 24, 1935 ( 7 U.S.C. 612c ) to pay for all or a portion of the cost, as agreed on with the State distribution agency, of food or the processing or packaging of food on behalf of a State distribution agency. In such cases, the State distribution agency shall reimburse the Secretary for the agreed on cost. Any funds received by the Secretary as reimbursement shall be deposited to the credit of the Commodity Credit Corporation or section 32 of the Act of August 24, 1935 ( 7 U.S.C. 612c ), as appropriate. If the State distribution agency fails, within 150 days of delivery, to make the required reimbursement in full, the Secretary shall, within 30 days, offset any outstanding amount against the appropriate account. 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 Agricultural 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 redistribution of section 32 agricultural commodities and food products through community food banks under a demonstration project. Each food bank participating 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 feasibility and effectiveness of the projects shall be measured, and shall conduct an ongoing review of the effectiveness of the projects. The Secretary shall determine the quantities, varieties, and types of agricultural commodities and food products to be made available under this section. This section shall be effective for the period beginning on the date of enactment of this Act [ Jan. 8, 1988 ]. The Comptroller General of the United States shall monitor and assess the implementation by the Secretary of the provisions of this Act [see section 1 set out above]. Before the expiration of the 18-month period beginning on the date of the enactment of this Act [ Jan. 8, 1988 ], the Comptroller General shall submit to the Committee on Education and Labor [now 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 a report of the findings of the assessment conducted as required by subsection (a). Subject to subsection (b), the Secretary may transfer any commodities purchased with appropriated funds for a domestic food assistance program administered by the Secretary to any other domestic food assistance program administered by the Secretary if the transfer is necessary to ensure that the commodities will be used while the commodities are still suitable for human consumption. The Secretary shall, to the maximum extent practicable, provide reimbursement for the value of the commodities transferred under subsection (a) from accounts available for the purchase of commodities under the program receiving the commodities. be credited to the accounts that incurred the costs when the transferred commodities were originally purchased; and be available for the purchase of commodities with the same limitations as are provided for appropriated funds for the reimbursed accounts for the fiscal year in which the transfer takes place. The Secretary may determine the amount of, settle, and adjust all or part of a claim arising under a domestic food assistance program administered by the Secretary. The Secretary may waive a claim described in subsection (a) if the Secretary determines that a waiver would serve the purposes of the program. Nothing in this section diminishes the authority of the Attorney General under section 516 of title 28 , United States Code, or any other provision of law, to supervise and conduct litigation on behalf of the United States. The Secretary may use funds available to carry out section 32 of the Act of August 24, 1935 ( 49 Stat. 774 , chapter 641; 7 U.S.C. 612c ), that are not otherwise committed, for the purpose of reimbursing States for State and local costs associated with the removal of commodities distributed under any domestic food assistance program administered by the Secretary if the Secretary determines that the commodities pose a health or safety risk. may include costs for storage, transportation, processing, and destruction of the commodities described in subsection (a); and shall be subject to the approval of the Secretary. The Secretary may use funds described in subsection (a) for the purpose of purchasing additional commodities if the purchase will expedite replacement of the commodities described in subsection (a). Use of funds under paragraph (1) shall not restrict the Secretary from recovering funds or services from a supplier or other entity regarding the commodities described in subsection (a). be credited to the account available to carry out section 32 of the Act of August 24, 1935 ( 49 Stat. 774 , ch. 641; 7 U.S.C. 612c ), to the extent the funds represent expenditures from that account under subsections (a) and (c); and remain available to carry out the purposes of section 32 of that Act until expended. Repealed. Pub. L. 108–265, title III, § 301 , June 30, 2004 , 118 Stat. 788 .] The Secretary may accept donations of commodities from any Federal agency, including commodities of another Federal agency determined to be excess personal property pursuant to section 202(d) of the Federal Property and Administrative Services Act of 1949 ( 40 U.S.C. 483(d) ) [now 40 U.S.C. 525 ]. The Secretary may donate the commodities received under subsection (a) to States for distribution through any domestic food assistance program administered by the Secretary. Notwithstanding section 202(d) of the Federal Property and Administrative Services Act of 1949 ( 40 U.S.C. 483(d) ) [now 40 U.S.C. 525 ], the Secretary shall not be required to make any payment in connection with the commodities received under subsection (a). Notwithstanding any other provision of law concerning commodity donations, any commodities acquired in the conduct of the operations of the Commodity Credit Corporation and any commodities acquired under section 32 of the Act of August 24, 1935 ( 7 U.S.C. 612c ), to the extent that the commodities are in excess of the quantities of commodities that are essential to carry out other authorized activities of the Commodity Credit Corporation and the Secretary (including any quantity specifically reserved for a specific purpose), may be used for any program authorized to be carried out by the Secretary that involves the acquisition of commodities for use in a domestic feeding program, including any program conducted by the Secretary that provides commodities to individuals in cases of hardship. the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7501 et seq.); the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq.); the Child Nutrition Act of 1966 ( 42 U.S.C. 1771 et seq.); the Older Americans Act of 1965 ( 42 U.S.C. 3001 et seq.); or such other laws as the Secretary determines to be appropriate. retain title to commodities delivered to a processor, on behalf of a State (including a State distributing agency and a recipient agency), until such time as end products containing the commodities, or similar commodities as approved by the Secretary, are delivered to a State distributing agency or to a recipient agency; and promulgate regulations to ensure accountability for commodities provided to a processor for processing into end products, and to facilitate processing of commodities into end products for use by recipient agencies. a processor that receives commodities for processing into end products, or provides a service with respect to the commodities or end products, in accordance with the agreement of the processor with a State distributing agency or a recipient agency, provide to the Secretary a bond or other means of financial assurance to protect the value of the commodities; and take action with respect to the bond or other means of financial assurance pursuant to regulations promulgated under this subsection; and distribute any proceeds obtained by the Secretary to 1 or more State distributing agencies and recipient agencies, as determined appropriate by the Secretary. The term ‘commodities’ means agricultural commodities and their products that are donated by the Secretary for use by recipient agencies. The term ‘end product’ means a food product that contains processed commodities. a school, school food service authority, or other agency authorized under the Richard B. Russell National School Lunch Act [ 42 U.S.C. 1751 et seq.] 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 commodities and their products acquired by the Secretary through price support, surplus removal, or direct purchase; 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; an agency or organization distributing commodities under the commodity supplemental food program established in section 4 of the Agriculture and Consumer Protection Act of 1973 [ Pub. L. 93–86 ] ( 7 U.S.C. 612c note); any charitable institution, summer camp, or assistance 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 an agency or organization distributing commodities under a program established in section 202 of the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 612c note) [ 7 U.S.C. 7502 ]. The term ‘State distribution agency’ means a State agency responsible for the intrastate distribution of donated commodities. The term ‘Secretary’ means Secretary of Agriculture, unless the context specifies otherwise. “Except as otherwise provided in this Act, this Act and the amendments made by this Act [see section 1 above] shall take effect on the date of the enactment of this Act [ Jan. 8, 1988 ].” Notwithstanding any other provision of law, the Secretary may, during fiscal years 2008 through 2023, purchase and distribute sufficient agricultural commodities with funds appropriated from the general fund of the Treasury to maintain the traditional level of assistance for food assistance programs as are authorized by law, including but not limited to distribution to institutions (including hospitals and facilities caring for needy infants and children), supplemental feeding programs serving women, infants, and children or elderly persons, or both, wherever located, disaster areas, summer camps for children, the United States Trust Territory of the Pacific Islands, and Indians, whenever a tribal organization requests distribution of federally donated foods pursuant to section 4(b) of the Food and Nutrition Act of 2008 [ 7 U.S.C. 2013(b) ]. In providing for commodity distribution to Indians, the Secretary shall improve the variety and quantity of commodities supplied to Indians in order to provide them an opportunity to obtain a more nutritious diet. The Secretary may furnish commodities to summer camps for children in which the number of adults participating in camp activities as compared with the number of children 18 years of age and under so participating is not unreasonable in light of the nature of such camp and the characteristics of the children in attendance. Whoever embezzles, willfully misapplies, steals or obtains by fraud any agricultural commodity or its products (or any funds, assets, or property deriving from donation of such commodities) provided under this section, or under section 416 of the Agricultural Act of 1949 ( 7 U.S.C. 1431 ), section 32 of the Act of August 24, 1935 ( 7 U.S.C. 612c ), section 709 of the Food and Agriculture Act of 1965 ( 7 U.S.C. 1446a–1 ), or the Emergency Food Assistance Act of 1983 [ 7 U.S.C. 7501 et seq.], whether received directly or indirectly from the United States Department of Agriculture, or whoever receives, conceals, or retains such commodities, products, funds, assets, or property for personal use or gain, knowing such commodities, products, funds, assets, or property have been embezzled, willfully misapplied, stolen, or obtained by fraud shall, if such commodities, products, funds, assets, or property are of a value of $100 or more, be fined not more than $10,000 or imprisoned not more than five years, or both, or if such commodities, products, funds, assets, or property are of value of less than $100, shall be fined not more than $1,000 or imprisoned for not more than one year, or both.” In carrying out the program under section 4 [set out as a note above] (referred to in this section as the ‘commodity supplemental food program’), for each of fiscal years 2008 through 2023, the Secretary shall provide to each State agency from funds made available to carry out that section (including any such funds remaining available from the preceding fiscal year), a grant per assigned caseload slot for administrative costs incurred by the State agency and local agencies in the State in operating the commodity supplemental food program. the value of the State and local government price index, as published by the Bureau of Economic Analysis of the Department of Commerce, for the 12-month period ending June 30, 2001 ; and the value of that index for the 12-month period ending June 30, 2002 . the value of the State and local government price index, as published by the Bureau of Economic Analysis of the Department of Commerce, for the 12-month period ending June 30 of the second preceding fiscal year; and the value of that index for the 12-month period ending June 30 of the preceding fiscal year. During the first three months of any commodity supplemental food program, or until such program reaches its projected caseload level, whichever comes first, the Secretary shall pay those administrative costs necessary to commence the program successfully: Provided , That in no event shall administrative costs paid by the Secretary for any fiscal year exceed the limitation established in subsection (a) of this section. Administrative costs for the purposes of the commodity supplemental food program shall include, but not be limited to, expenses for information and referral, operation, monitoring, nutrition education, start-up costs, and general administration, including staff, warehouse and transportation personnel, insurance, and administration of the State or local office. During each fiscal year the commodity supplemental food program is in operation, the types and varieties of commodities and their proportional amounts shall be determined by the Secretary, but, if the Secretary proposes to make any significant changes in the types, varieties, or proportional amounts from those that were available or were planned at the beginning of the fiscal year (or as were available during the fiscal year ending June 30, 1976 , whichever is greater) the Secretary shall report such changes before implementation to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. Notwithstanding any other provision of law, the Commodity Credit Corporation shall, to the extent that the Commodity Credit Corporation inventory levels permit, provide not less than 9,000,000 pounds of cheese and not less than 4,000,000 pounds of nonfat dry milk in each of fiscal years 2008 through 2023 to the Secretary of Agriculture. The Secretary shall use such amounts of cheese and nonfat dry milk to carry out the commodity supplemental food program before the end of each fiscal year. The Secretary of Agriculture is authorized to issue such regulations as may be necessary to carry out the commodity supplemental food program. The Secretary shall, in any fiscal year, approve applications of additional sites for the program, including sites that serve only elderly persons, in areas in which the program currently does not operate to the full extent that this can be done within the appropriations available for the program for the fiscal year and without reducing actual participation levels (including participation of elderly persons under subsection (g)) in areas in which the program is in effect. Except as provided in subsection (m), the States shall only provide assistance under the commodity supplemental food program to low-income persons aged 60 and older. In this paragraph, the term ‘certification period’ means the period during which a participant in the commodity supplemental food program in a State may continue to receive benefits under the commodity supplemental food program without a formal review of the eligibility of the participant. not less than 1 year; but not more than 3 years. An eligible applicant for the commodity supplemental food program in a State may be provided with a temporary monthly certification to fill any caseload slot resulting from nonparticipation by certified participants. verifies the address and continued interest of the participant; and has sufficient reason to determine that the participant still meets the income eligibility standards under paragraph (1), which may include a determination that the participant has a fixed income. ensure that written information concerning the supplemental nutrition assistance program, the State program funded under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.), and the child support enforcement program under part D of title IV of the Social Security Act ( 42 U.S.C. 651 et seq.) is provided on at least one occasion to each adult who applies for or participates in the commodity supplemental food program; provide each local agency with materials showing the maximum income limits, according to family size, applicable to pregnant women, infants, and children up to age 6 under the medical assistance program established under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.) (hereinafter referred to in this section as the ‘medicaid program’) which materials may be identical to those provided under section 17(e)(3) of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786(e)(3) ); and ensure that local agencies provide to pregnant, breast feeding and post partum women, and adults applying on behalf of infants or children, who apply to the commodity supplemental food program, or who reapply to such program, written information about the medicaid program and referral to the program or to agencies authorized to determine presumptive eligibility for the medicaid program, if the individuals are not participating in the medicaid program. supplemental nutrition assistance benefits provided under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.); the supplemental security income benefits provided under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq.); and medical assistance provided under title XIX of such Act ( 42 U.S.C. 1396 et seq.) (including medical assistance provided to a qualified medicare beneficiary (as defined in section 1905(p) of such Act ( 42 U.S.C. 1396d(5) ))). If the Secretary must pay a significantly higher than expected price for one or more types of commodities purchased under the commodity supplemental food program, the Secretary shall promptly determine whether the price is likely to cause the number of persons that can be served in the program in a fiscal year to decline. If the Secretary determines that such a decline would occur, the Secretary shall promptly notify the State agencies charged with operating the program of the decline and shall ensure that a State agency notify all local agencies operating the program in the State of the decline. determine the amount of, settle, and adjust any claim arising under the commodity supplemental food program; and waive such a claim if the Secretary determines that to do so will serve the purposes of the program. Nothing contained in this subsection shall be construed to diminish the authority of the Attorney General of the United States under section 516 of title 28 , United States Code, to conduct litigation on behalf of the United States. has been approved by the Secretary; or has been approved or is otherwise allowed by the Secretary of Health and Human Services. this Act [see Short Title of 1973 Amendment note set out under section 1281 of this title ]; the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.); the Emergency Food Assistance Act of 1983 ( 7 U.S.C. 7501 et seq.); the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq.); or the Child Nutrition Act of 1966 ( 42 U.S.C. 1771 et seq.). Notwithstanding any other provision of law, an individual who receives assistance under the commodity supplemental food program on the day before the date of enactment of this subsection [ Feb. 7, 2014 ] shall continue to receive that assistance until the date on which the individual is no longer eligible for assistance under the eligibility requirements for the program in effect on the day before the date of enactment of this subsection.”