104 STAT. 3810 PUBLIC LAW 101-624—NOV. 28, 1990 SEC. 1773. COMMODITY DISTRIBUTION REFORM. (a) CLARIFYING AMENDMENT.— Section 3(a)(3)(A)(i) of the Commodity Distribution Reform Act and WIC Amendments of 1987 (Public Law 100-237; 7 U.S.C. 612c note) is amended by inserting after "recipient agencies" the following: ", including food banks". (b) ADVANCE FUNDING FOR STATE OPTION CONTRACTS (SOCS). — Such Act (7 U.S.C. 612c note) is amended by inserting after section 3 the following new section: 7 USC 612c note. "SEC. 3A. ADVANCE FUNDING FOR STATE OPTION CONTRACTS. "(a) IN GENERAL. —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. "(b) REIMBURSEMENT. — 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.". (c) COMMERCIAL WAREHOUSING AND DISTRIBUTION. —Section 3(d) of such Act (7 U.S.C. 612c note) is amended— (1) by striking "Before the expiration of the 270-day period beginning on the date of the enactment of this Act," and inserting the following: "On or before July 1, 1992,"; and (2) by striking paragraphs (1), (2), and (3) and inserting the following new paragraphs: "(1) 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'); "(2) 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; "(3) 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;". (d) COMMODITY ACCEPTABILITY INFORMATION.—Section 3(fK2) of such Act (7 U.S.C. 612c note) is amended by striking "semiannually" and inserting "annually".
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