PUBLIC LAW 94-105—OCT. 7, 1975
89 STAT. 515
is exempt from tax under section 501(c)(3) of the Internal Revenue Code of 1954.". 26 USC 501. (d) Section 12 of the National School Lunch Act is amended by 42 USC 1760. adding at the end thereof the following new subsection (e): "(e) The value of assistance to children under this Act shall not be considered to be income or resources for any purposes under any Federal or State laws, including laws relating to taxation and welfare and public assistance programs.". COMM)0DITr DISTRIBUTION PROGRAM
SEC. 10. Section 14 of the National School Lunch Act is amended 42 USC 1762a. by inserting " (a) " immediately after the section designation, by striking out "June 30, 1975" and inserting in lieu thereof "September 30, 1977", and by adding at the end thereof the following new subsection: "(b) Among the products to be included in the food donations to the school lunch program shall be cereal and shortening and oil products.". FEDERAL EXPENDITURES
SEC. 11. Section 6 of the National School Lunch Act is amended— 42 USC 1755., (a) By adding at the end of subsection (a) the following new sentence: "In making purchases of such agricultural commodities and other foods, the Secretary shall not issue specifications which restrict participation of local producers unless such specifications will result in significant advantages to the food service programs authorized by this Act and the Child Nutrition Act of 1966.". 42 USC 1771 (b) By adding at the end of subsection (e) the following new note. sentence: "Notwithstanding any other provision of this section, not less than 75 per centum of the assistance provided under this subsection (e) shall be in the form of donated foods for the school lunch program.". ELECTION TO RECEIVE CASH PAYMENTS
SEC. 12. The National School Lunch Act is amended by adding at the end thereof the following new section: "SEC. 16. (a) Notwithstanding any other provision of law, where 42 USC 1765. a State phased out its commodity distribution facilities prior to June 30, 1974, such State may, for purposes of the programs authorized by this Act and the Child Nutrition Act of 1966, elect to receive cash payments in lieu of donated foods. Where such an election is made, the Secretary shall make cash payments to such State in an amount equivalent in value to the donated foods that the State would otherwise have received if it had retained its commodity distribution facilities. The amount of cash payments in the case of lunches shall be governed by section 6(e) of this Act. "(b) When such payments are made, the State educational agency shall promptly and equitably disburse any cash it receives in lieu of commodities to eligible schools and institutions, and such disbursements shall be used by such schools and institutions to purchase United States agricultural commodities and other foods for their food service programs.". SUMMER FOOD PROGRAM
SEC. 13. Effective October 1, 1975, section 13 of the National School Effective date. Lunch Act is amended to read as follows: 42 USC 1761.
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