[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3666 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3666

 To amend the National School Lunch Act and the Child Nutrition Act of 
 1966 to provide children with increased access to food and nutrition 
    assistance, to simplify program operations and improve program 
   management, to extend certain authorities contained in such Acts 
           through fiscal year 2002, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

   Mr. Martinez (for himself, Mr. Clay, Mr. Kildee, Mr. Andrews, Ms. 
Woolsey, Mr. Hinojosa, Ms. Sanchez, Mr. Ford, Mr. Kucinich, Mr. Kennedy 
    of Massachusetts, Mr. Blagojevich, Ms. Kilpatrick, Mr. Frank of 
 Massachusetts, Ms. DeLauro, Mr. Serrano, Mr. Lantos, Mr. LaFalce, Mr. 
 McDermott, Mr. Kleczka, Mr. Lampson, Mr. Hall of Ohio, Ms. Stabenow, 
      Mr. Frost, Mr. Torres, Mr. Sawyer, Ms. DeGette, Mr. Neal of 
 Massachusetts, and Mrs. Morella) introduced the following bill; which 
      was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the National School Lunch Act and the Child Nutrition Act of 
 1966 to provide children with increased access to food and nutrition 
    assistance, to simplify program operations and improve program 
   management, to extend certain authorities contained in such Acts 
           through fiscal year 2002, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Nutrition and WIC 
Reauthorization Amendments of 1998''.

 SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Effective date.
          TITLE I--AMENDMENTS TO THE NATIONAL SCHOOL LUNCH ACT

Sec. 101. Technical amendment to commodity provisions.
Sec. 102. Availability of recovered funds for management activity.
Sec. 103. Elimination of regional office administered programs.
Sec. 104. Requirement for health and safety inspections.
Sec. 105. Elimination of the food and nutrition projects and 
                            establishment of an adequate meal service 
                            period.
Sec. 106. Buy American.
Sec. 107. Summer Food Service Program.
Sec. 108. Reauthorization of use of CCC and section 32 funds for 
                            commodities.
Sec. 109. Child and Adult Care Food Program.
Sec. 110. Transfer of homeless programs to the Child and Adult Care 
                            Food Program.
Sec. 111. Elimination of demonstration projects.
Sec. 112. Extension of authorization for training and technical 
                            assistance funding.
Sec. 113. Funding for the Food Service Management Institute.
Sec. 114. Extension of authorization for compliance and accountability 
                            funding.
Sec. 115. Extension of authority to fund information clearinghouse.
Sec. 116. Refocusing of effort to help accommodate the special dietary 
                            needs of individuals with disabilities.
        TITLE II--AMENDMENTS TO THE CHILD NUTRITION ACT OF 1966

Sec. 201. Elimination of regional office administered programs.
Sec. 202. State Administrative Expense Funds.
Sec. 203. Special Supplemental Nutrition Program for Women, Infants and 
                            Children.
Sec. 204. Extension of Nutrition Education and Training Program.
TITLE III--AMENDMENTS TO THE COMMODITY DISTRIBUTION REFORM ACT AND WIC 
                           AMENDMENTS OF 1987

Sec. 301. Customer acceptability information.
Sec. 302. Food distribution provisions.

SEC. 3. EFFECTIVE DATE.

    Except as provided in section 203(k)(2), this Act shall become 
effective on October 1, 1998.

          TITLE I--AMENDMENTS TO THE NATIONAL SCHOOL LUNCH ACT

SEC. 101. TECHNICAL AMENDMENT TO COMMODITY PROVISIONS.

    Section 6 of the National School Lunch Act (42 U.S.C. 1755) is 
amended--
            (1) by striking subsections (c) and (d); and
            (2) by redesignating subsections (e), (f), and (g) as 
        subsections (c), (d), and (e), respectively.

 SEC. 102. AVAILABILITY OF RECOVERED FUNDS FOR MANAGEMENT ACTIVITY.

    Section 8 of the National School Lunch Act (42 U.S.C. 1757) is 
amended by adding at the end the following:
    ``(h) Use of Recovered Program Funds.--State agencies may retain up 
to one-half of any program funds recovered during State conducted 
audits or reviews of school food authorities, institutions, and service 
institutions participating in food assistance programs authorized under 
this Act and sections 3 and 4 of the Child Nutrition Act of 1966. Funds 
retained under this subsection shall be used by the State agency for 
otherwise allowable program costs to improve the management and 
operations of such programs within the State, including by providing 
funds to school food authorities, institutions, and service 
institutions participating in these programs.''.

SEC. 103. ELIMINATION OF REGIONAL OFFICE ADMINISTERED PROGRAMS.

    The National School Lunch Act (42 U.S.C. 1751 et seq.) is amended--
            (1) in section 7(b) (42 U.S.C. 1756(b)), by striking the 
        second sentence;
            (2) by amending section 10 (42 U.S.C. 1759) to read as 
        follows:

``SEC. 10. DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

    ``(a) Authority To Administer Programs.--
            ``(1) In general.--Except as provided in paragraph (3), 
        until September 30, 2000, the Secretary shall withhold funds 
        payable to a State agency under this Act and disburse the funds 
        directly to school food authorities, institutions, or service 
        institutions within the State for the purposes authorized by 
        this Act to the extent that the Secretary has so withheld and 
        disbursed such funds continuously since October 1, 1980, but 
        only to that extent.
            ``(2) Use of funds.--Any funds withheld and disbursed by 
        the Secretary in accordance with paragraph (1) shall be used 
        for the same purposes, and shall be subject to the same 
conditions, as applicable to a State disbursing funds made available 
under this Act.
            ``(3) State administration.--If the Secretary is 
        administering (in whole or in part) any program authorized 
        under this Act, the State in which the Secretary is 
        administering the program may, upon request to the Secretary, 
        assume administration of that program at any time prior to 
        October 1, 2000.
    ``(b) Provision of Training and Technical Assistance.--The 
Secretary shall provide State agencies which assume program 
administration from the Secretary on or before October 1, 2000, with 
training and technical assistance to allow for an efficient and 
effective transfer of administrative responsibility.''; and
            (3) in section 11(a)(1)(A) (42 U.S.C. 1759a(a)(1)(A)), by 
        striking ``Except as provided in section 10 of this Act, in'' 
        and inserting ``In''.

SEC. 104. REQUIREMENT FOR HEALTH AND SAFETY INSPECTIONS.

    Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended by adding at the end the following:
    ``(h) Health and Safety Inspections.--All schools participating in 
the National School Lunch Program authorized under this Act or the 
School Breakfast Program authorized under section 4 of the Child 
Nutrition Act of 1966 in which meals are prepared on site shall twice 
during each school year obtain inspections that indicate food service 
operations meet State or local health and safety standards.''.

SEC. 105. ELIMINATION OF THE FOOD AND NUTRITION PROJECTS AND 
              ESTABLISHMENT OF AN ADEQUATE MEAL SERVICE PERIOD.

    Section 12(m) of the National School Lunch Act (42 U.S.C. 1760(m)) 
is amended to read as follows:
    ``(m) Length of Meal Service Period and Food Service Environment.--
Schools participating in the National School Lunch Program authorized 
under this Act or the School Breakfast Program authorized under section 
4 of the Child Nutrition Act of 1966 shall make every effort to 
establish meal service periods that provide children adequate time to 
fully consume their meals in an environment which is conducive to 
eating such meals.''.

SEC. 106. BUY AMERICAN.

    Section 12 of the National School Lunch Act (42 U.S.C. 1760) (as 
amended by section 105) is amended by adding at the end the following:
    ``(n) Buy American.--
            ``(1) In general.--The Secretary shall require that schools 
        purchase, whenever possible, only food products that are 
        produced in the United States.
            ``(2) Limitations.--Paragraph (1) shall only apply to 
        schools located in the contiguous United States and to 
        purchases for the National School Lunch Program authorized 
        under this Act and the School Breakfast Program authorized 
        under section 4 of the Child Nutrition Act of 1966.''.

SEC. 107. SUMMER FOOD SERVICE PROGRAM.

    (a) Adjustments to Reimbursement Rates in the Summer Food Service 
Program in Specified States and Territories.--Section 12(f) of the 
National School Lunch Act (42 U.S.C. 1760(f)) is amended to read as 
follows:
    ``(f) Adjustments to Reimbursement Rates.--In providing assistance 
for breakfasts, lunches, suppers, and supplements served in Alaska, 
Hawaii, Guam, American Samoa, Puerto Rico, the Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands, the Secretary may 
establish appropriate adjustments for each such State to the national 
average payment rates prescribed under sections 4, 11, 13 and 17 of 
this Act and section 4 of the Child Nutrition Act of 1966 to reflect 
the differences between the costs of providing meals in those States 
and the costs of providing meals in all other States.''.
    (b) Establishment of 25 Site Limitation.--Section 13(a)(7)(B)(i) of 
the National School Lunch Act (42 U.S.C. 1761(a)(7)(B)(i)) is amended 
to read as follows:
                            ``(i) operate not more than 25 sites, with 
                        not more than 300 children being served at any 
                        one site (or, with a waiver granted by the 
                        State agency under standards developed by the 
                        Secretary, not more than 500 children being 
                        served at any one site);''.
    (c) Elimination of March 1 ``Indication of Interest'' Requirement, 
Removal of Meal Contracting Restrictions, and Vendor Registration 
Requirements.--Section 13 of the National School Lunch Act (42 U.S.C. 
1761) is amended--
            (1) in subsection (a)(7)(B)--
                    (A) by striking clause (iii); and
                    (B) by redesignating clauses (iv), (v), (vi), and 
                (vii) as clauses (iii), (iv), (v), and (vi) 
                respectively; and
            (2) in subsection (l)--
                    (A) in paragraph (1)--
                            (i) by striking in the first sentence--
                                    (I) ``(other than private nonprofit 
                                organizations eligible under subsection 
                                (a)(7))''; and
                                    (II) ``only with food service 
                                management companies registered with 
                                the State in which they operate'' and 
                                inserting ``with food service 
                                management companies''; and
                            (ii) by striking the last sentence;
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking 
                        ``shall'' and inserting ``may''; and
                            (ii) by striking all after the first 
                        sentence;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (d) Reauthorization of the Summer Food Service Program.--Section 
13(q) of the National School Lunch Act (42 U.S.C. 1761(q)) is amended 
by striking ``1998'' and inserting ``2002''.

SEC. 108. REAUTHORIZATION OF USE OF CCC AND SECTION 32 FUNDS FOR 
              COMMODITIES.

    Section 14(a) of the National School Lunch Act (42 U.S.C. 1762a(a)) 
is amended by striking ``1998'' and inserting ``2002''.

SEC. 109. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Revision to Licensing and Alternate Approval for Schools and 
Outside School Hours Child Care Centers.--Section 17(a)(1) of the 
National School Lunch Act (42 U.S.C. 1766(a)(1)) is amended to read as 
follows:
            ``(1) all institutions (except schools and family or group 
        day care home sponsoring organizations) and family or group day 
        care homes must--
                    ``(A)(i) have Federal, State, or local licensing or 
                approval; or
                    ``(ii) be complying with appropriate renewal 
                procedures as prescribed by the Secretary and the State 
                has no information indicating that the institution or 
                family or group day care home's license will not be 
                renewed;
                    ``(B) where Federal, State, or local licensing or 
                approval is not available--
                            ``(i) receive funds under Title XX of the 
                        Social Security Act;
                            ``(ii) meet any alternate approval 
                        standards established by a State or local 
                        government; or
                            ``(iii) meet any alternate approval 
                        standards established by the Secretary after 
                        consultation with the Secretary of Health and 
                        Human Services; or
                    ``(C) where an institution provides care to school 
                children outside of school hours and Federal, State, or 
                local licensing or approval is not required, meet State 
                or local health and safety standards; and''.
    (b) Reinstatement of Categorical Eligibility for Even Start Program 
Participants.--Section 17(c)(6)(B) of the National School Lunch Act (42 
U.S.C. 1766(c)(6)(B)) is amended by striking ``1997'' and inserting 
``2002''.
    (c) Tax Exempt Status and Removal of Notification Requirement for 
Incomplete Applications.--Section 17(d)(1) of the National School Lunch 
Act (42 U.S.C. 1766(d)(1)) is amended--
            (1) by inserting after the third sentence the following: 
        ``An institution moving toward compliance with the requirement 
        for tax exempt status shall be allowed to participate in the 
        program for a period of not more than six months unless it can 
        demonstrate to the satisfaction of the State agency that its 
        inability to obtain tax exempt status within the six month 
        limit is beyond the control of the institution in which case 
        the State may grant a single extension not to exceed 90 
        days.''; and
            (2) by striking the last sentence.
    (d) Distribution of Program Information.--Section 17(k) of the 
National School Lunch Act (42 U.S.C. 1766(k)) is amended--
            (1) by striking ``A State'' and inserting the following:
            ``(1) In general.--A State''; and
            (2) by inserting at the end the following:
            ``(2) Distribution of program information.--
                    ``(A) In general.--Each State agency shall, at 
                least once every two years, provide notification of the 
                availability of the program, the requirements for 
                program participation, and the application procedures 
                to be followed in the program to each nonparticipating 
                institution or family or group day care home that is 
                located in a needy area within the State and has 
                Federal, State, or local licensing or approval or 
                receives funds under title XX of the Social Security 
                Act.
                    ``(B) Needy area defined.--For purposes of this 
                paragraph, a needy area is a geographic area served by 
                a school enrolling elementary students in which at 
                least 50 percent of the total number of children 
                enrolled are certified eligible to receive free or 
                reduced price school meals under this Act or the Child 
                Nutrition Act of 1966.''.
    (e) Elimination of Audit Funds, Establishment of Management Support 
Funding, Participation by ``at Risk'' Child Care Programs, and WIC 
Outreach.--Section 17 of the National School Lunch Act (42 U.S.C. 1766) 
is amended--
            (1) by striking subsection (i);
            (2) by redesignating subsections (j) through (p) as 
        subsections (i) through (o), respectively; and
            (3) by adding at the end the following:
    ``(p) Management Funding.--
            ``(1) Technical and training assistance.--In order to 
        assist State agencies in improving their program management and 
        oversight under this section, the Secretary shall provide such 
        State agencies with increased levels of training and technical 
assistance.
            ``(2) Funding.--In fiscal year 1999 and each succeeding 
        fiscal year, the Secretary shall reserve for the purpose of 
        carrying out paragraph (1) \1/8\ of 1 percent of the amount 
        appropriated for the purpose of carrying out this section.
    ``(q) `At Risk' Child Care.--
            ``(1) In general.--Subject to the conditions in this 
        subsection, institutions that provide care to at risk school 
        children during after-school hours, weekends, or holidays 
        during the regular school year may participate in the program 
        authorized under this section. Unless otherwise specified in 
        this subsection, all other provisions of this section shall 
        apply to these institutions.
            ``(2) At risk school children.--Children ages 12 through 18 
        who live in a geographical area served by a school enrolling 
        elementary students in which at least 50 percent of the total 
        number of children enrolled are certified eligible to receive 
        free or reduced price school meals under this Act or the Child 
        Nutrition Act of 1966 shall be considered at risk.
            ``(3) Supplement reimbursement.--
                    ``(A) Limitation.--Only supplements served to at 
                risk school children during after-school hours, 
                weekends, or holidays during the regular school year 
                may be claimed for reimbursement. Institutions may 
                claim reimbursement for only one supplement per child 
                per day.
                    ``(B) Rate.--Eligible supplements shall be 
                reimbursed at the rate for free supplements under 
                subsection (c)(3).
                    ``(C) No charge.--All supplements claimed for 
                reimbursement shall be served without charge.
    ``(r) Information Concerning the Special Supplemental Nutrition 
Program for Women, Infants, and Children.--
            ``(1) In general.--The Secretary shall provide each State 
        agency with information concerning the Special Supplemental 
        Nutrition Program for Women, Infants, and Children authorized 
        under section 17 of the Child Nutrition Act of 1966.
            ``(2) Requirements for state agencies.--State agencies 
        shall--
                    ``(A) ensure each participating child care center 
                (other than institutions providing care to school 
                children outside of school hours) receives materials 
                that include--
                            ``(i) a basic explanation of the importance 
                        and benefits of the Special Supplemental 
                        Nutrition Program for Women, Infants, and 
                        Children;
                            ``(ii) the maximum State income eligibility 
                        standards, according to family size, for the 
                        Special Supplemental Nutrition Program for 
                        Women, Infants, and Children; and
                            ``(iii) information as to how benefits 
                        under the Special Supplemental Nutrition 
                        Program for Women, Infants, and Children may be 
                        obtained;
                    ``(B) ensure that such child care centers are 
                provided updates of the information under subparagraph 
                (A) annually; and
                    ``(C) ensure that such child care centers provide 
                the information under subparagraph (A) to parents of 
                enrolled children annually.''.
    (f) Permanent Authorization of Demonstration Project.--Section 
17(o) of the National School Lunch Act (42 U.S.C. 1766(o)) (as 
redesignated in subsection (e)) is amended by striking paragraphs (4) 
and (5).

SEC. 110. TRANSFER OF HOMELESS PROGRAMS TO THE CHILD AND ADULT CARE 
              FOOD PROGRAM.

    The National School Lunch Act (42 U.S.C. 1751 et seq.) is amended--
            (1) in section 13(a)(3)(C)--
                    (A) by adding ``or'' after the semicolon in clause 
                (i);
                    (B) by striking clause (ii); and
                    (C) by redesignating clause (iii) as clause (ii);
            (2) in section 17 (as amended by section 109(e)), by adding 
        at the end the following:
    ``(s) Participation by Homeless Shelters.
            ``(1) Definition of eligible shelters.--Subject to the 
        conditions in this subsection, public and private, nonprofit 
        emergency shelters providing food service to homeless children 
        and their parents or guardians shall be considered eligible 
        institutions for purposes of the program authorized under this 
        section. The term `emergency shelter' shall have the meaning 
        provided in section 321(2) of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11351(2)). Unless otherwise specified 
        in this subsection, all other provisions of this section shall 
        apply to these institutions.
            ``(2) Institution and site licensing.--Subsection (a)(1) 
        shall not apply to emergency shelters or sites operated by 
        them.
            ``(3) Health and safety standards.-- Both emergency 
        shelters and sites operated by them shall comply with State or 
        local health and safety standards.
            ``(4) Meal reimbursement.--
                    ``(A) Limitation.--Only meals served to children 
                through age 12 residing at an emergency shelters may be 
                claimed for reimbursement. Emergency shelters may claim 
                reimbursement for no more than 3 meals or 2 meals and a 
                supplement per child per day.
                    ``(B) Rate.--Eligible meals shall be reimbursed at 
                the rates for free meals under subsection (c).
                    ``(C) No charge.--All meals claimed for 
                reimbursement shall be served without charge.''; and
            (3) by repealing section 17B.

SEC. 111. ELIMINATION OF DEMONSTRATION PROJECTS.

    Section 18 of the National School Lunch Act (42 U.S.C. 1769) is 
amended by striking subsections (e), (f), (g), (h), and (i).

SEC. 112. EXTENSION OF AUTHORIZATION FOR TRAINING AND TECHNICAL 
              ASSISTANCE FUNDING.

    Section 21(e)(1) of the National School Lunch Act (42 U.S.C. 1769b-
1(e)(1)) is amended by striking ``1998'' and inserting ``2002''.

SEC. 113. FUNDING FOR THE FOOD SERVICE MANAGEMENT INSTITUTE.

    Section 21(e)(2)(A) of the National School Lunch Act (42 U.S.C. 
1769b-1(e)(2)(A)) is amended by striking ``and $2,000,000 for fiscal 
year 1996'' and inserting ``, $2,000,000 for each of fiscal years 1996 
through 1998, and $3,000,000 for fiscal year 1999''.

SEC. 114. EXTENSION OF AUTHORIZATION FOR COMPLIANCE AND ACCOUNTABILITY 
              FUNDING.

    Section 22(d) of the National School Lunch Act (42 U.S.C. 1769c(d)) 
is amended by striking ``1996'' and inserting ``2002''.

SEC. 115. EXTENSION OF AUTHORITY TO FUND INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 1769g) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``shall'' and inserting ``may'';
            (2) in subsection (b), by inserting ``, except that, 
        notwithstanding any other provision of law, the Secretary may 
        enter into a contract for the services of any organization with 
        which the Secretary has previously contracted under this 
        section without competing such contract, assuming such 
        organization has performed satisfactorily under such contract 
        and meets the criteria established in this subsection,'' after 
        ``shall be selected on a competitive basis''; and
            (3) by amending subsection (d) to read as follows:
    ``(d) Funding.--The Secretary may provide to the organization 
selected under this section an amount not to exceed $150,000 in each of 
fiscal years 1999 through 2002.''.

SEC. 116. REFOCUSING OF EFFORT TO HELP ACCOMMODATE THE SPECIAL DIETARY 
              NEEDS OF INDIVIDUALS WITH DISABILITIES.

    Section 27 of the National School Lunch Act (42 U.S.C. 1769h) is 
amended to read as follows:

``SEC. 27. ACCOMMODATING SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) Definitions.--As used in this section:
            ``(1) Individuals with disabilities.--The term `individuals 
        with disabilities' shall have the same meaning as in section 
        7(8) of the Rehabilitation Act of 1973.
            ``(2) Covered program.--The term `covered program' means--
                    ``(A) the National School Lunch Program authorized 
                under this Act;
                    ``(B) the School Breakfast Program authorized under 
                section 4 of the Child Nutrition Act of 1966; and
                    ``(C) any other program authorized under this Act 
                or the Child Nutrition Act of 1966 (except for section 
                17) that the Secretary determines is appropriate.
            ``(3) Eligible entity.--The term eligible entity means a 
        school food authority, institution, or service institution that 
        participates in a covered program.
    ``(b) Activities.--The Secretary may carry out activities to help 
accommodate the special dietary needs of individuals with disabilities 
who are participating in a covered program. Such activities may 
include--
            ``(1) developing and disseminating to State agencies 
        guidance and technical assistance materials;
            ``(2) conducting training of State agencies and eligible 
        entities; and
            ``(3) issuing grants to State agencies and eligible 
        entities.''.

        TITLE II--AMENDMENTS TO THE CHILD NUTRITION ACT OF 1966

SEC. 201. ELIMINATION OF REGIONAL OFFICE ADMINISTERED PROGRAMS.

    Section 5 of the Child Nutrition Act of 1966 (42 U.S.C. 1774) is 
amended to read as follows:

``SEC. 5 DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

    ``(a) Authority To Administer Programs.--
            ``(1) In general.--Except as provided in paragraph (3), 
        until September 30, 2000, the Secretary shall withhold funds 
        payable to a State agency under this Act and disburse the funds 
        directly to school food authorities, institutions, or service 
        institutions within the State for the purposes authorized by 
        this Act to the extent that the Secretary has so withheld and 
        disbursed such funds continuously since October 1, 1980, but 
        only to that extent.
            ``(2) Use of funds.--Any funds withheld and disbursed by 
        the Secretary in accordance with paragraph (1) shall be used 
        for the same purposes, and shall be subject to the same 
        conditions, as applicable to a State disbursing funds made 
        available under this Act.
            ``(3) State administration.--If the Secretary is 
        administering (in whole or in part) any program authorized 
        under this Act, the State in which the Secretary is 
        administering the program may, upon request to the Secretary, 
        assume administration of that program at any time prior to 
        October 1, 2000.
    ``(b) Provision of Training and Technical Assistance.--The 
Secretary shall provide State agencies which assume program 
administration from the Secretary on or before October 1, 2000, with 
training and technical assistance to allow for an efficient and 
effective transfer of administrative responsibility.''.

SEC. 202. STATE ADMINISTRATIVE EXPENSE FUNDS.

    (a) Homeless Shelters.--Section 7(a)(5)(B) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1776(a)(5)(B)) is amended to read as follows:
                    ``(B) Reallocation of funds.--For each fiscal year, 
                any amounts appropriated that are not obligated or 
                expended during such fiscal year and are not carried 
                over for the succeeding fiscal year under subparagraph 
(A) shall be returned to the Secretary. The Secretary shall then 
allocate, for purposes of administration costs, any remaining amounts 
among States that demonstrate a need for such amounts.''.
    (b) Elimination of the 10 Percent Transfer Limitation.--Section 
7(a)(6) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(6)) is 
amended to read as follows:
            ``(6) Use of administrative funds.--Funds available to 
        States under this subsection and under section 13(k)(1) of the 
        National School Lunch Act may be used by State agencies for the 
        costs of administration of the programs authorized under the 
        National School Lunch Act and this Act (except for the programs 
        authorized under sections 17 and 21) without regard to the 
        basis on which these funds were earned and allocated.''.
    (c) Reauthorization of Program.--Section 7(g) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776(g)) is amended by striking 
``1998'' and inserting ``2002''.

SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 
              CHILDREN.

    (a) Additional Program Application Requirements.--Section 17(d)(3) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by 
adding at the end the following:
                    ``(C) Physical presence.--All applicants shall be 
                physically present at each certification visit in order 
                to receive program benefits.
                    ``(D) Income documentation.--All applicants shall 
                provide documentation of household income or of 
                participation in a program referenced in clauses (ii) 
                and (iii) of paragraph (2)(A) at certification in order 
                to be determined income eligible for the program.
                    ``(E) Verification.--The Secretary shall promulgate 
                regulations under this subsection governing when and 
                how verification of income shall be required.''.
    (b) Distribution of Nutrition Education Materials.--Section 
17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(e)(3)) is 
amended--
            (1) by inserting ``Nutrition Education Materials.--'' after 
        ``(3)'';
            (2) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) In general.--The Secretary''; and
            (3) by adding at the end the following:
                    ``(B) Sharing materials with csfp.--The Secretary 
                may provide nutrition education materials, including 
                breastfeeding promotion, developed with funds 
                appropriated for the program under this section in bulk 
                quantity to State agencies administering the Commodity 
                Supplemental Food Program authorized under sections 
                4(a) and 5 of the Agriculture and Consumer Protection 
                Act of 1973 at no cost to that program.''.
    (c) Reauthorization of Program.--Section 17(g)(1) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended by striking 
``1995 through 1998'' and inserting ``1999 through 2002''.
    (d) Extension of Authorization.--Section 17(h)(2)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended by striking 
``1995 through 1998'' and inserting ``1999 through 2002''.
    (e) Infant Formula Procurement.--Section 17(h)(8)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is amended by adding at 
the end the following:
                            ``(iii) Competitive bidding system.--A 
                        State agency using a competitive bidding system 
                        for infant formula shall award contracts to the 
                        bidder offering the lowest net price unless the 
                        State agency demonstrates to the satisfaction 
                        of the Secretary that the weighted average 
                        retail price for different brands of infant 
                        formula in the State does not vary by more than 
                        five percent.''.
    (f) Infrastructure and Breastfeeding Promotion/Support Funds.--
Section 17(h)(10)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(10)(A)) is amended by striking ``For each of fiscal years 1995 
through 1998,'' and inserting ``For each fiscal year through 2002,''.
    (g) Spend-Forward Authority.--Section 17(i)(3) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) in clause (ii)--
                            (i) by inserting ``nutrition services and 
                        administration'' after ``amount of''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) with prior approval of the 
                        Secretary, not more than 4 percent of the 
                        amount of nutrition services and administration 
                        funds allocated to a State agency for a fiscal 
                        year under this section may be expended by the 
                        State agency during the subsequent fiscal year 
                        for the developmental costs of electronic 
                        benefit transfer.'';
            (2) in subparagraph (B), by striking ``subparagraph 
        (A)(ii)'' and inserting ``clauses (ii) and (iii) of 
        subparagraph (A)'';
            (3) by striking subparagraphs (D) through (G); and
            (4) by redesignating subparagraph (H) as subparagraph (D).
    (h) Matching Funds Requirement.--Section 17(m)(3) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended by striking 
``total'' and inserting ``administrative'' in both places it appears.
    (i) Ranking Criteria for Farmers Market Nutrition Program State 
Plans.--Section 17(m)(6) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(6)) is amended--
            (1) by striking subparagraph (F); and
            (2) by redesignating subparagraph (G) as subparagraph (F).
    (j) Extension of Farmers Market Nutrition Program Authorization.--
Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)(A)) is amended by striking ``1996 through 1998'' and 
inserting ``1999 through 2002''.
    (k) Disqualification of Certain Vendors.--
            (1) In general.--Section 17 of the Child Nutrition Act of 
        1996 (42 U.S.C. 1786) is amended by adding at the end the 
        following new subsection:
    ``(o) Disqualification of Vendors Convicted of Trafficking or 
Illegal Sales.--
            ``(1) In general.--Except as provided in paragraph (5), the 
        State agency shall permanently disqualify a vendor convicted of 
        trafficking in food instruments (including any voucher, draft, 
        check, or access device, including an electronic benefit 
        transfer card or personal identification number, issued in lieu 
        of a food instrument pursuant to the provisions of this 
        section), or selling firearms, ammunition, explosives, or 
        controlled substances (as defined in section 102 of the 
        Controlled Substances Act) in exchange for food instruments.
            ``(2) Notice of disqualification.--The State agency shall 
        provide the vendor with notification of the disqualification 
        and shall make such disqualification effective on the date of 
        receipt of the notice of disqualification.
            ``(3) Prohibition on receipt of lost revenues.--A vendor 
        shall not be entitled to receive any compensation for revenues 
        lost as a result of the disqualification under this subsection.
            ``(4) Hardship exception in lieu of disqualification.--
                    ``(A) In general.-- A State agency may permit a 
                vendor that would otherwise be disqualified under 
                paragraph (1) to continue to redeem food instruments or 
                otherwise provide supplemental foods to participants if 
                the State agency determines, in its sole discretion 
                according to criteria established by the Secretary, 
                disqualification of the vendor would cause hardship to 
                participants in the program authorized under this 
                section.
                    ``(B) Civil money penalty.--Whenever a State agency 
                authorizes a vendor that would otherwise be 
                disqualified to redeem food instruments or provide 
                supplemental foods in accordance with subparagraph (A), 
                the State agency shall assess the vendor a civil money 
                penalty in lieu of a disqualification.
                    ``(C) Amount.-- The State agency shall determine 
                the amount of the civil penalty according to criteria 
                established by the Secretary.''.
            (2) Regulations.--The provisions of this subsection shall 
        not take effect until the Secretary issues final regulations 
        that include the criteria for determining the amount of civil 
        money penalties in lieu of disqualification and for making 
        hardship determinations.

SEC. 204. EXTENSION OF NUTRITION EDUCATION AND TRAINING PROGRAM.

    Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)) is amended--
            (1) by striking paragraphs (1) and (2);
            (2) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (1), (2), and (3), respectively; and
            (3) in paragraph (1) (as redesignated by paragraph (2))--
                    (A) in the paragraph heading, by striking ``1997'' 
                and inserting ``1999''; and
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as are necessary to carry out 
                this section for fiscal years 1999 through 2002.''.

TITLE III--AMENDMENTS TO THE COMMODITY DISTRIBUTION REFORM ACT AND WIC 
                           AMENDMENTS OF 1987

SEC. 301. CUSTOMER ACCEPTABILITY INFORMATION.

    Section 3 of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note) is amended--
            (1) by amending subsection (a)(2) to read as follows:
            ``(2) Applicability.--Paragraph (1) shall apply to 
        recipient agencies for the following programs:
                    ``(A) The Commodity Supplemental Food Program 
                authorized under sections 4(a) and 5 of the Agriculture 
                and Consumer Protection Act of 1973 (7 U.S.C. 612c 
                note).
                    ``(B) The Food Distribution Program on Indian 
                Reservations authorized under section 4(b) of the Food 
                Stamp Act of 1977 (7 U.S.C. 2013(b)).
                    ``(C) The National School Lunch Program authorized 
                under the National School Lunch Act (42 U.S.C. 1751 et 
                seq.).''; and
            (2) by amending subsection (f)(2) to read as follows:
            ``(2) Customer acceptability information.--
                    ``(A) In general.--The Secretary shall ensure that 
                information with respect to the types and forms of 
                commodities that are most useful is collected from 
                those recipient agencies referred to in subsection 
                (a)(2).
                    ``(B) Frequency.--Such information shall be 
                collected at least once every two years.
                    ``(C) Additional submissions.--The Secretary may 
                require submission of such information from recipient 
                agencies participating in other domestic food 
                assistance programs administered by the Secretary and 
                shall provide such recipient agencies a means for 
                voluntarily submitting customer acceptability 
                information.''.

SEC. 302. FOOD DISTRIBUTION PROVISIONS.

    The Commodity Distribution Reform Act and WIC Amendments of 1987 (7 
U.S.C. 612c note) is amended by adding at the end the following:

``SEC. 15. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.

    ``(a) Transfer.--Subject to subsection (b), the Secretary may 
transfer any commodities purchased for one domestic food assistance 
program administered by the Secretary to any other such program when 
the transfer is necessary to ensure that the commodities will be used 
while they are still suitable for human consumption.
    ``(b) Reimbursement.--The Secretary shall, whenever possible and 
practicable, provide reimbursement for the value of the commodities 
transferred under subsection (a) from accounts available for the 
purchase of commodities for the program receiving the commodities.
    ``(c) Crediting.--Any reimbursement made under subsection (b) shall 
be credited to the accounts that incurred the costs when the 
transferred commodities were originally purchased and shall 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.

``SEC. 16. AUTHORITY TO RESOLVE CLAIMS.

    ``(a) Determine, Settle, and Adjust Claims.--The Secretary shall 
have the authority to determine the amount of, to settle, and to adjust 
any claim or part thereof arising under any domestic food assistance 
program administered by the Secretary.
    ``(b) Claims Waiver.--The Secretary shall have the authority to 
waive such claims if the Secretary determines that to do so would serve 
the purposes of the particular program.
    ``(c) Authority of the Attorney General.--Nothing contained in this 
section shall be construed to diminish the authority of the Attorney 
General of the United States under section 516 of title 28, United 
States Code, or any other provisions of law to supervise and conduct 
litigation on behalf of the United States.

``SEC. 17. PAYMENT OF COSTS ASSOCIATED WITH MANAGEMENT OF COMMODITIES 
              WHICH POSE A HEALTH OR SAFETY HAZARD.

    ``(a) In General.--The Secretary may use funds available to carry 
out the provisions of section 32 of the Agricultural Act of August 24, 
1935 (7 U.S.C. 612c), which are not otherwise committed, for the 
purpose of reimbursing States for State and local costs associated with 
commodities distributed under any domestic food assistance program 
administered by the Secretary when the Secretary determines that such 
commodities pose a health or safety hazard.
    ``(b) Allowable Costs.--Such costs may include including storage, 
transportation, processing, and destruction of the hazardous 
commodities and shall be subject to the approval of the Secretary.
    ``(c) Replacement Commodities.--The Secretary also may use such 
funds for the purpose of purchasing additional commodities when the 
purchase will expedite replacement of the hazardous commodities, but 
the use of such funds shall not restrict the Secretary from recovering 
funds or services from the supplier or other entity regarding the 
hazardous commodities.
    ``(d) Crediting of Recovered Funds.--Funds recovered from the 
supplier or other entities regarding the hazardous commodities shall be 
credited to the account available to carry out the provisions of 
section 32 of the Agricultural Act of August 24, 1935 to the extent 
such funds represent expenditures from that account under subsections 
(a) and (c), and shall remain available to carry out the purposes of 
section 32 of the Agricultural Act of August 24, 1935 until expended.

``SEC. 18. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL SOURCES.

    ``(a) In General.--The Secretary may accept donations of 
commodities from any Federal source, including those commodities of 
another Federal agency determined to be excess personal property 
pursuant to section 202 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 483(d)).
    ``(b) Use.--The Secretary may donate the commodities received under 
subsection (a) to States for distribution through any domestic food 
assistance program administered by the Secretary.
    ``(c) Payment.--Notwithstanding section 202(d) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 483(d)), 
the Secretary shall not be required to make any payment in connection 
with the commodities received under subsection (a).''.
                                 <all>