[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR252.6]



[Page 514-515]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 252_NATIONAL COMMODITY PROCESSING PROGRAM--Table of Contents

 

Sec. 252.6  Miscellaneous provisions.



    (a) Improper distribution or loss of or damage to donated food. If a 

processor improperly distributes or uses any donated food, or causes 

loss of or damage to a donated food through its failure to provide 

proper storage, care, or handling, FNS shall require the processor to 

pay to the Department the value of the donated food as determined by the 

Department.

    (b) Disposition of damaged or out-of-condition food. Donated food 

which is found to be damaged or out-of-condition and is declared unfit 

for human consumption by Federal, State, or local health officials, or 

by any other inspection services or persons deemed competent by the 

Department, shall be disposed of in accordance with instructions of the 

Department. This instruction shall direct that unfit donated food be 

sold in a manner prescribed by the Department with the net proceeds 

thereof remitted to the Department. Upon a finding by the Department 

that donated food is unfit for human consumption at the time of delivery 

to a



[[Page 515]]



recipient agency and when the Department or appropriate health officials 

require that such donated food be destroyed, the processor shall pay for 

any expenses incurred in connection with such donated food as determined 

by the Department. The Department may, in any event, repossess damaged 

or out-of-condition donated food.

    (c) FNS sales verification. FNS may conduct a verification of 

processor reported sales utilizing a statistically valid sampling 

technique. If, as a result of this verification, FNS determines that the 

value of the donated food has not been passed on to recipient agencies 

or if end products have been improperly distributed, FNS may assert a 

claim against the processor. This claim may include a projection of the 

verification sample to the total NCP sales reported by the processor.

    (d) Sanctions. Any processor or recipient agency which has failed to 

comply with the provisions of this part or any instructions or 

procedures issued in connection herewith, or any agreements entered into 

pursuant hereto, may, at the discretion of the Department, be 

disqualified from further participation in the NCP Program. 

Reinstatement may be made at the option of the Department. 

Disqualification shall not prevent the Department from taking other 

action through other available means when considered necessary, 

including prosecution under applicable Federal statutes.

    (e) Embezzlement, misuse, theft, or obtainment by fraud of 

commodities and commodity related funds, assets, or property in child 

nutrition programs. Whoever embezzles, willfully misapplies, steals, or 

obtains by fraud commodities donated for use in the NCP Program, or any 

funds, assets, or property deriving from such donations, or whoever 

receives, conceals, or retains such commodities, funds, assets, or 

property for his own use or gain, knowing such commodities, funds, 

assets, or property have been embezzled, willfully misapplied, stolen, 

or obtained by fraud, shall be subject to Federal criminal prosecution 

under section 12(g) of the National School Lunch Act, as amended, or 

section 4(c) of the Agriculture and Consumer Protection Act of 1973, as 

amended. For the purpose of this paragraph ``funds, assets, or 

property'' include, but are not limited to, commodities which have been 

processed into different end products as provided for by this part, and 

the containers in which commodities have been received from the 

Department.