[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3874 Enrolled Bill (ENR)]

        H.R.3874

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
 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 those Acts 
            through fiscal year 2003, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``William F. 
Goodling Child Nutrition Reauthorization Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; table of contents.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 101. Provision of commodities.
Sec. 102. Nutritional and other program requirements.
Sec. 103. Special assistance.
Sec. 104. Miscellaneous provisions and definitions.
Sec. 105. Summer food service program for children.
Sec. 106. Commodity distribution program.
Sec. 107. Child and adult care food program.
Sec. 108. Meal supplements for children in afterschool care.
Sec. 109. Pilot projects.
Sec. 110. Training, technical assistance, and food service management 
          institute.
Sec. 111. Compliance and accountability.
Sec. 112. Information clearinghouse.
Sec. 113. Accommodation of the special dietary needs of individuals with 
          disabilities.

             TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

Sec. 201. School breakfast program authorization.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants, and 
          children.
Sec. 204. Nutrition education and training.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301. Information from recipient agencies.
Sec. 302. Food distribution.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

SEC. 101. PROVISION OF COMMODITIES.

    (a) In General.--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.
    (b) Conforming Amendments.--The National School Lunch Act is 
amended by striking ``section 6(e)'' each place it appears in sections 
14(f), 16(a), and 17(h)(1)(B) (42 U.S.C. 1762a(f), 1765(a), 
1766(h)(1)(B)) and inserting ``section 6(c)''.

SEC. 102. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    (a) Technical Amendments.--Section 9(f) of the National School 
Lunch Act (42 U.S.C. 1758(f)) is amended--
        (1) in paragraph (2), by striking ``subparagraph (A)'' and 
    inserting ``paragraph (1)''; and
        (2) in paragraphs (3) and (4), by striking ``this paragraph'' 
    each place it appears and inserting ``this subsection''.
    (b) Waiver of Requirement for Weighted Averages for Nutrient 
Analysis.--Section 9(f) of the National School Lunch Act (42 U.S.C. 
1758(f)) is amended by adding at the end the following:
        ``(5) Waiver of requirement for weighted averages for nutrient 
    analysis.--During the period ending on September 30, 2003, the 
    Secretary shall not require the use of weighted averages for 
    nutrient analysis of menu items and foods offered or served as part 
    of a meal offered or served under the school lunch program under 
    this Act or the school breakfast program under section 4 of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1773).''.
    (c) Requirement for Food 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) Food Safety Inspections.--
        ``(1) In general.--Except as provided in paragraph (2), a 
    school participating in the school lunch program under this Act or 
    the school breakfast program under section 4 of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1773) shall, at least once during each 
    school year, obtain a food safety inspection conducted by a State 
    or local governmental agency responsible for food safety 
    inspections.
        ``(2) Exception.--Paragraph (1) shall not apply to a school if 
    a food safety inspection of the school is required by a State or 
    local governmental agency responsible for food safety 
    inspections.''.
    (d) Single Permanent Agreement Between State Agency and School Food 
Authority; Common Claims Form.--Section 9 of the National School Lunch 
Act (42 U.S.C. 1758), as amended by subsection (c), is further amended 
by adding at the end the following:
    ``(i) Single Permanent Agreement Between State Agency and School 
Food Authority; Common Claims Form.--
        ``(1) In general.--If a single State agency administers any 
    combination of the school lunch program under this Act, the school 
    breakfast program under section 4 of the Child Nutrition Act of 
    1966 (42 U.S.C. 1773), the summer food service program for children 
    under section 13 of this Act, or the child and adult care food 
    program under section 17 of this Act, the agency shall--
            ``(A) require each school food authority to submit to the 
        State agency a single agreement with respect to the operation 
        by the authority of the programs administered by the State 
        agency; and
            ``(B) use a common claims form with respect to meals and 
        supplements served under the programs administered by the State 
        agency.
        ``(2) Additional requirement.--The agreement described in 
    paragraph (1)(A) shall be a permanent agreement that may be amended 
    as necessary.''.

SEC. 103. SPECIAL ASSISTANCE.

    (a) School Eligibility Requirements for Payments.-- Section 
11(a)(1) of the National School Lunch Act (42 U.S.C. 1759a(a)(1)) is 
amended--
        (1) in subparagraph (C)--
            (A) in clause (i)(I), by striking ``3 successive school 
        years'' each place it appears and inserting ``4 successive 
        school years''; and
            (B) in clauses (ii) and (iii), by striking ``3-school-year 
        period'' each place it appears and inserting ``4-school-year 
        period'';
        (2) in subparagraph (D)--
            (A) in clause (i)--
                (i) by striking ``3-school-year period'' each place it 
            appears and inserting ``4-school-year period''; and
                (ii) by striking ``2 school years'' and inserting ``4 
            school years'';
            (B) in clause (ii)--
                (i) by striking the first sentence;
                (ii) by striking ``The school'' and inserting ``A 
            school described in clause (i)''; and
                (iii) by striking ``5-school-year period'' each place 
            it appears and inserting ``4-school-year period''; and
            (C) in clause (iii), by striking ``5-school-year period'' 
        and inserting ``4-school-year period''; and
        (3) in subparagraph (E), by striking clause (iii).
    (b) Adjustments to Payment Rates.--
        (1) In general.--Section 11(a)(3)(B) of the National School 
    Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
            (A) by striking ``(B) The annual'' and inserting the 
        following:
            ``(B) Computation of adjustment.--
                ``(i) In general.--The annual'';
            (B) by striking ``Each annual'' and inserting the 
        following:
                ``(ii) Basis.--Each annual'';
            (C) by striking ``The adjustments'' and inserting the 
        following:
                ``(iii) Rounding.--

                    ``(I) Through june 30, 1999.--For the period ending 
                June 30, 1999, the adjustments''; and

            (D) by adding at the end the following:

                    ``(II) July 1, 1999, and thereafter.--On July 1, 
                1999, and on each subsequent July 1, the national 
                average payment rates for meals and supplements shall 
                be adjusted to the nearest lower cent increment and 
                shall be based on the unrounded amounts for the 
                preceding 12-month period.''.

        (2) Conforming amendments.--Section 4(b) of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1773(b)) is amended--
            (A) in the second sentence of paragraph (1)(B), by striking 
        ``adjusted to the nearest one-fourth cent,''; and
            (B) in paragraph (2)(B)(ii), by striking ``, which shall be 
        adjusted'' and all that follows and inserting ``(as adjusted 
        pursuant to section 11(a)(3)(B) of the National School Lunch 
        Act (42 U.S.C 1759a(a)(3)(B))).''.
    (c) Information and Assistance Concerning Reimbursement Options.--
        (1) In general.--Section 11 of the National School Lunch Act 
    (42 U.S.C. 1759a) is amended by adding at the end the following:
    ``(f) Information and Assistance Concerning Reimbursement 
Options.--
        ``(1) In general.--From funds made available under paragraph 
    (3), the Secretary shall provide grants to not more than 10 State 
    agencies in each of fiscal years 2000 and 2001 to enable the 
    agencies, in accordance with criteria established by the Secretary, 
    to--
            ``(A) identify separately in a list--
                ``(i) schools that are most likely to benefit from 
            electing to receive special assistance under subparagraph 
            (C) or (E) of subsection (a)(1); and
                ``(ii) schools that may benefit from electing to 
            receive special assistance under subparagraph (C) or (E) of 
            subsection (a)(1);
            ``(B) make the list of schools identified under this 
        subsection available to each school district within the State 
        and to the public;
            ``(C) provide technical assistance to schools, or school 
        districts containing the schools, to enable the schools to 
        evaluate and receive special assistance under subparagraph (C) 
        or (E) of subsection (a)(1);
            ``(D) take any other actions the Secretary determines are 
        consistent with receiving special assistance under subparagraph 
        (C) or (E) of subsection (a)(1) and receiving a grant under 
        this subsection; and
            ``(E) as soon as practicable after receipt of the grant, 
        but not later than September 30, 2001, take the actions 
        described in subparagraphs (A) through (D).
        ``(2) Report.--
            ``(A) In general.--Not later than January 1, 2002, the 
        Secretary shall submit to the Committee on Education and the 
        Workforce of the House of Representatives and the Committee on 
        Agriculture, Nutrition and Forestry of the Senate a report on 
        the activities of the State agencies receiving grants under 
        this subsection.
            ``(B) Contents.--In the report, the Secretary shall 
        specify--
                ``(i) the number of schools identified as likely to 
            benefit from electing to receive special assistance under 
            subparagraph (C) or (E) of subsection (a)(1);
                ``(ii) the number of schools identified under this 
            subsection that have elected to receive special assistance 
            under subparagraph (C) or (E) of subsection (a)(1); and
                ``(iii) a description of how the funds and technical 
            assistance made available under this subsection have been 
            used.
        ``(3) Funding.--Out of any moneys in the Treasury not otherwise 
    appropriated, the Secretary of the Treasury shall provide to the 
    Secretary $2,250,000 for each of fiscal years 2000 and 2001 to 
    carry out this subsection. The Secretary shall be entitled to 
    receive the funds and shall accept the funds, without further 
    appropriation.''.
        (2) Technical amendments.--The National School Lunch Act is 
    amended in the second sentence of each of sections 21(e)(2)(A) and 
    26(d) (42 U.S.C. 1769b-1(e)(2)(A), 1769g(d)) by inserting at the 
    end before the period ``, without further appropriation''.

SEC. 104. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    (a) Adjustments to Reimbursement Rates.--Section 12(f) of the 
National School Lunch Act (42 U.S.C. 1760(f)) is amended--
        (1) by striking ``school breakfasts and lunches'' and inserting 
    ``breakfasts, lunches, suppers, and supplements'';
        (2) by striking ``sections 4 and 11'' and inserting ``sections 
    4, 11, 13, and 17''; and
        (3) by striking ``lunches and breakfasts'' each place it 
    appears and inserting ``meals and supplements''.
    (b) Criminal Penalties.--Section 12(g) of the National School Lunch 
Act (42 U.S.C. 1760(g)) is amended by striking ``$10,000'' and 
inserting ``$25,000''.
    (c) Food and Nutrition Projects.--Section 12(m) of the National 
School Lunch Act (42 U.S.C. 1760(m)) is amended by striking ``1998'' 
each place it appears and inserting ``2003''.
    (d) Buy American.--Section 12 of the National School Lunch Act (42 
U.S.C. 1760) is amended by adding at the end the following:
    ``(n) Buy American.--
        ``(1) Definition of domestic commodity or product.--In this 
    subsection, the term `domestic commodity or product' means--
            ``(A) an agricultural commodity that is produced in the 
        United States; and
            ``(B) a food product that is processed in the United States 
        substantially using agricultural commodities that are produced 
        in the United States.
        ``(2) Requirement.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary shall require that a school food authority purchase, 
        to the maximum extent practicable, domestic commodities or 
        products.
            ``(B) Limitations.--Subparagraph (A) shall apply only to--
                ``(i) a school food authority located in the contiguous 
            United States; and
                ``(ii) a purchase of a domestic commodity or product 
            for the school lunch program under this Act or the school 
            breakfast program under section 4 of the Child Nutrition 
            Act of 1966 (42 U.S.C. 1773).
        ``(3) Applicability to hawaii.--Paragraph (2)(A) shall apply to 
    a school food authority in Hawaii with respect to domestic 
    commodities or products that are produced in Hawaii in sufficient 
    quantities to meet the needs of meals provided under the school 
    lunch program under this Act or the school breakfast program under 
    section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).''.
    (e) Procurement Contracts.--Section 12 of the National School Lunch 
Act (42 U.S.C. 1760), as amended by subsection (d), is further amended 
by adding at the end the following:
    ``(o) Procurement Contracts.--In acquiring a good or service for 
programs under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) (other than section 17 of that Act (42 U.S.C. 1786)), a 
State, State agency, school, or school food authority may enter into a 
contract with a person that has provided specification information to 
the State, State agency, school, or school food authority for use in 
developing contract specifications for acquiring such good or 
service.''.

SEC. 105. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Establishment of Site Limitation.--Section 13(a)(7)(B) of the 
National School Lunch Act (42 U.S.C. 1761(a)(7)(B)) is amended by 
striking clause (i) and inserting the following:
        ``(i) operate--
            ``(I) not more than 25 sites, with not more than 300 
        children being served at any one site; or
            ``(II) with a waiver granted by the State agency under 
        standards developed by the Secretary, with not more than 500 
        children being served at any one site;''.
    (b) Elimination of Meal Contracting Restrictions, Indication of 
Interest Requirement, 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 clauses (ii) and (iii); and
            (B) by redesignating clauses (iv) through (vii) as clauses 
        (ii) through (v) respectively; and
        (2) in subsection (l)--
            (A) in paragraph (1)--
                (i) in the first sentence--

                    (I) by striking ``(other than private nonprofit 
                organizations eligible under subsection (a)(7))''; and
                    (II) by striking ``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 the second and third sentences;
            (C) by striking paragraph (3); and
            (D) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (c) Offer Versus Serve.--Section 13(f)(7) of the National School 
Lunch Act (42 U.S.C. 1761(f)(7)) is amended in the first sentence by 
striking ``attending a site on school premises operated directly by the 
authority''.
    (d) Reauthorization of Program.--Section 13(q) of the National 
School Lunch Act (42 U.S.C. 1761(q)) is amended by striking ``1998'' 
and inserting ``2003''.
    (e) Technical Amendment.--
        (1) In general.--Section 706(j)(1) of the Personal 
    Responsibility and Work Opportunity Reconciliation Act of 1996 
    (Public Law 104-193; 110 Stat. 2293) is amended by striking 
    ``methods of assessing'' and inserting ``methods for assessing''.
        (2) Effective date.--The amendment made by paragraph (1) takes 
    effect on January 1, 1997.

SEC. 106. COMMODITY DISTRIBUTION PROGRAM.

    Section 14(a) of the National School Lunch Act (42 U.S.C. 1762a(a)) 
is amended in the matter preceding paragraph (1) by striking ``1998'' 
and inserting ``2003''.

SEC. 107. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Eligibility of Institutions.--Section 17(a) of the National 
School Lunch Act (42 U.S.C. 1766(a)) is amended--
        (1) in the fourth sentence, by striking ``Reimbursement'' and 
    inserting ``Except as provided in subsection (r), reimbursement''; 
    and
        (2) in the sixth sentence, by striking paragraph (1) and 
    inserting the following:
        ``(1) an institution (except a school or family or group day 
    care home sponsoring organization) or family or group day care home 
    shall--
            ``(A)(i) be licensed, or otherwise have approval, by the 
        appropriate Federal, State, or local licensing authority; or
            ``(ii) be in compliance with appropriate procedures for 
        renewing participation in the program, as prescribed by the 
        Secretary, and not be the subject of information possessed by 
        the State indicating that the license of the institution or 
        home will not be renewed;
            ``(B) if Federal, State, or local licensing or approval is 
        not available--
                ``(i) meet any alternate approval standards established 
            by the appropriate State or local governmental agency; or
                ``(ii) meet any alternate approval standards 
            established by the Secretary after consultation with the 
            Secretary of Health and Human Services; or
            ``(C) if the institution provides care to school children 
        outside of school hours and Federal, State, or local licensing 
        or approval is not required for the institution, meet State or 
        local health and safety standards; and''.
    (b) Automatic Eligibility for Even Start Program Participants.--
Section 17(c)(6) of the National School Lunch Act (42 U.S.C. 
1766(c)(6)) is amended--
        (1) in subparagraph (A), by striking ``(A)''; and
        (2) by striking subparagraph (B).
    (c) Periodic Site Visits.--Section 17(d) of the National School 
Lunch Act (42 U.S.C. 1766(d)) is amended--
        (1) in the second sentence of paragraph (1), by inserting after 
    ``if it'' the following: ``has been visited by a State agency prior 
    to approval and it''; and
        (2) in paragraph (2)(A)--
            (A) by striking ``that allows'' and inserting ``that--
        ``(i) allows'';
            (B) by striking the period at the end and inserting ``; 
        and''; and
            (C) by adding at the end the following:
        ``(ii) requires periodic site visits to private institutions 
    that the State agency determines have a high probability of program 
    abuse.''.
    (d) 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 child and 
    adult care food program for a period of not more than 180 days, 
    except that a State agency may grant a single extension of not to 
    exceed an additional 90 days if the institution demonstrates, to 
    the satisfaction of the State agency, that the inability of the 
    institution to obtain tax exempt status within the 180-day period 
    is due to circumstances beyond the control of the institution.''; 
    and
        (2) by striking the last sentence.
    (e) Use of Funds for Audits.--Section 17(i) of the National School 
Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``2 percent'' and 
inserting ``1.5 percent (except, in the case of each of fiscal years 
2005 through 2007, 1 percent)''.
    (f) Permanent Authorization of Demonstration Project.--Section 
17(p) of the National School Lunch Act (42 U.S.C. 1766(p)) is amended 
by striking paragraphs (4) and (5).
    (g) Management Support.--Section 17 of the National School Lunch 
Act (42 U.S.C. 1766) is amended by adding at the end the following:
    ``(q) Management Support.--
        ``(1) Technical and training assistance.--In addition to the 
    training and technical assistance that is provided to State 
    agencies under other provisions of this Act and the Child Nutrition 
    Act of 1966 (42 U.S.C. 1771 et seq.), the Secretary shall provide 
    training and technical assistance in order to assist the State 
    agencies in improving their program management and oversight under 
    this section.
        ``(2) Funding.--For each of fiscal years 1999 through 2003, the 
    Secretary shall reserve to carry out paragraph (1) $1,000,000 of 
    the amounts made available to carry out this section.''.
    (h) Participation by At-Risk Child Care Programs.--Section 17 of 
the National School Lunch Act (42 U.S.C. 1766), as amended by 
subsection (g), is further amended by adding at the end the following:
    ``(r) Program for At-Risk School Children.--
        ``(1) Definition of at-risk school child.--In this subsection, 
    the term `at-risk school child' means a school child who--
            ``(A) is not more than 18 years of age, except that the age 
        limitation provided by this subparagraph shall not apply to a 
        child described in section 12(d)(1)(A); and
            ``(B) participates in a program authorized under this 
        section operated at a site located in a geographical area 
        served by a school in which at least 50 percent of the children 
        enrolled are certified as eligible to receive free or reduced 
        price school meals under this Act or the Child Nutrition Act of 
        1966 (42 U.S.C. 1771 et seq.).
        ``(2) Participation in child and adult care food program.--An 
    institution may participate in the program authorized under this 
    section only if the institution provides supplements under a 
    program--
            ``(A) organized primarily to provide care to at-risk school 
        children during after-school hours, weekends, or holidays 
        during the regular school year; and
            ``(B) with an educational or enrichment purpose.
        ``(3) Administration.--Except as otherwise provided in this 
    subsection, the other provisions of this section apply to an 
    institution described in paragraph (2).
        ``(4) Supplement reimbursement.--
            ``(A) Limitations.--An institution may claim reimbursement 
        under this subsection only for--
                ``(i) a supplement served under a program organized 
            primarily to provide care to at-risk school children during 
            after-school hours, weekends, or holidays during the 
            regular school year; and
                ``(ii) one supplement per child per day.
            ``(B) Rate.--A supplement shall be reimbursed under this 
        subsection at the rate established for a free supplement under 
        subsection (c)(3).
            ``(C) No charge.--A supplement claimed for reimbursement 
        under this subsection shall be served without charge.''.
    (i) WIC Information.--Section 17 of the National School Lunch Act 
(42 U.S.C. 1766), as amended by subsection (h), is further amended by 
adding at the end the following:
    ``(s) Information Concerning the Special Supplemental Nutrition 
Program for Women, Infants, and Children.--
        ``(1) In general.--The Secretary shall provide each State 
    agency administering a child and adult care food program under this 
    section with information concerning the special supplemental 
    nutrition program for women, infants, and children authorized under 
    section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
        ``(2) Requirements for state agencies.--Each State agency shall 
    ensure that each participating family and group day care home and 
    child care center (other than an institution providing care to 
    school children outside school hours)--
            ``(A) 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 program; and
                ``(iii) information concerning how benefits under the 
            program may be obtained;
            ``(B) receives periodic updates of the information 
        described in subparagraph (A); and
            ``(C) provides the information described in subparagraph 
        (A) to parents of enrolled children at enrollment.''.
    (j) Transfer of Homeless Programs.--
        (1) In general.--Section 17 of the National School Lunch Act 
    (42 U.S.C. 1766), as amended by subsection (i), is further amended 
    by adding at the end the following:
    ``(t) Participation by Emergency Shelters.--
        ``(1) Definition of emergency shelter.--In this subsection, the 
    term `emergency shelter' means--
            ``(A) an emergency shelter (as defined in section 321 of 
        the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
        11351)); or
            ``(B) a site operated by the shelter.
        ``(2) Administration.--Except as otherwise provided in this 
    subsection, an emergency shelter shall be eligible to participate 
    in the program authorized under this section in accordance with the 
    terms and conditions applicable to eligible institutions described 
    in subsection (a).
        ``(3) Licensing requirements.--The licensing requirements 
    contained in subsection (a)(1) shall not apply to an emergency 
    shelter.
        ``(4) Health and safety standards.--To be eligible to 
    participate in the program authorized under this section, an 
    emergency shelter shall comply with applicable State or local 
    health and safety standards.
        ``(5) Meal or supplement reimbursement.--
            ``(A) Limitations.--An emergency shelter may claim 
        reimbursement under this subsection--
                ``(i) only for a meal or supplement served to children 
            residing at an emergency shelter, if the children are--

                    ``(I) not more than 12 years of age;
                    ``(II) children of migrant workers, if the children 
                are not more than 15 years of age; or
                    ``(III) children with disabilities; and

                ``(ii) for not more than 3 meals, or 2 meals and a 
            supplement, per child per day.
            ``(B) Rate.--A meal or supplement eligible for 
        reimbursement shall be reimbursed at the rate at which free 
        meals and supplements are reimbursed under subsection (c).
            ``(C) No charge.--A meal or supplement claimed for 
        reimbursement shall be served without charge.''.
        (2) Conforming amendments.--
            (A) Section 13(a)(3)(C) of the National School Lunch Act 
        (42 U.S.C. 1761(a)(3)(C)) is amended--
                (i) in clause (i), by adding ``or'' at the end;
                (ii) by striking clause (ii); and
                (iii) by redesignating clause (iii) as clause (ii).
            (B) Section 17(a) of the National School Lunch Act (42 
        U.S.C. 1766(a)) is amended in the third sentence--
                (i) by striking ``and public'' and inserting 
            ``public''; and
                (ii) by inserting before the period at the end the 
            following: ``, and emergency shelters (as provided in 
            subsection (t))''.
            (C)(i) Section 17B of the National School Lunch Act (42 
        U.S.C. 1766b) is repealed.
            (ii) Section 25(b)(1) of the National School Lunch Act (42 
        U.S.C. 1769f(b)(1) is amended--
                (I) by striking subparagraph (D); and
                (II) by redesignating subparagraphs (E) through (G) as 
            subparagraphs (D) through (F), respectively.
        (3) Technical amendments.--
            (A) Section 12(d) of the National School Lunch Act (42 
        U.S.C. 1760(d)) is amended--
                (i) in paragraph (1)(A), by striking ``mental or 
            physical'' each place it appears; and
                (ii) by adding at the end the following:
        ``(8) Disability.--The term `disability' has the meaning given 
    the term in the Rehabilitation Act of 1973 for purposes of title II 
    of that Act (29 U.S.C 760 et seq.).''.
            (B) Section 13(a)(1) of the National School Lunch Act (42 
        U.S.C. 1761(a)(1)) is amended in subparagraph (D) of the second 
        sentence--
                (i) in clause (i), by striking ``to be mentally or 
            physically handicapped'' and inserting ``to have a 
            disability''; and
                (ii) in clause (ii), by striking ``the mentally or 
            physically handicapped'' and inserting ``individuals who 
            have a disability''.
            (C) Section 17(a) of the National School Lunch Act (42 
        U.S.C. 1766(a)) is amended by striking ``handicaps'' each place 
        it appears and inserting ``disabilities''.
            (D) Section 15 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1784) is amended--
                (i) in paragraph (6), by striking ``mental or physical 
            handicaps'' each place it appears and inserting 
            ``disabilities''; and
                (ii) by adding at the end the following:
        ``(7) Disability.--The term `disability' has the meaning given 
    the term in the Rehabilitation Act of 1973 for purposes of title II 
    of that Act (29 U.S.C 760 et seq.).''.
        (4) Effective Date.--The amendments made by paragraphs (1) and 
    (2) take effect on July 1, 1999.

SEC. 108. MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL CARE.

    (a) General Authority.--Section 17A(a) of the National School Lunch 
Act (42 U.S.C. 1766a(a)) is amended--
        (1) in paragraph (1), by striking ``supplements to'' and 
    inserting ``supplements under a program organized primarily to 
    provide care for''; and
        (2) in paragraph (2), by striking subparagraph (C) and 
    inserting the following:
            ``(C) operate afterschool programs with an educational or 
        enrichment purpose.''.
    (b) Eligible Children.--Section 17A(b) of the National School Lunch 
Act (42 U.S.C. 1766a(b)) is amended by striking ``served to children'' 
and all that follows and inserting ``served to school children who are 
not more than 18 years of age, except that the age limitation provided 
by this subsection shall not apply to a child described in section 
12(d)(1)(A).''.
    (c) Reimbursement.--Section 17A(c) of the National School Lunch Act 
(42 U.S.C. 1766a(c)) is amended by striking ``(c) Reimbursement.--For'' 
and inserting the following:
    ``(c) Reimbursement.--
        ``(1) At-risk school children.--In the case of an eligible 
    child who is participating in a program authorized under this 
    section operated at a site located in a geographical area served by 
    a school in which at least 50 percent of the children enrolled are 
    certified as eligible to receive free or reduced price school meals 
    under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
    et seq.), a supplement provided under this section to the child 
    shall be--
            ``(A) reimbursed at the rate at which free supplements are 
        reimbursed under section 17(c)(3); and
            ``(B) served without charge.
        ``(2) Other school children.--In the case of an eligible child 
    who is participating in a program authorized under this section at 
    a site that is not described in paragraph (1), for''.

SEC. 109. PILOT PROJECTS.

    (a) In General.--Section 18 of the National School Lunch Act (42 
U.S.C. 1769) is amended by striking subsections (c), (e), (g), and (h).
    (b) Breakfast Pilot Projects.--Section 18(i) of the National School 
Lunch Act (42 U.S.C. 1769(i)) is amended to read as follows:
    ``(i) Breakfast Pilot Projects.--
        ``(1) In general.--Subject to the availability of funds made 
    available under paragraph (10), for a period of 3 successive school 
    years, the Secretary shall make grants to State agencies to conduct 
    pilot projects in elementary schools under the jurisdiction of not 
    more than 6 school food authorities approved by the Secretary to--
            ``(A) reduce paperwork, simplify meal counting 
        requirements, and make changes that will increase participation 
        in the school breakfast program; and
            ``(B) evaluate the effect of providing free breakfasts to 
        elementary school children, without regard to family income, on 
        participation, academic achievement, attendance and tardiness, 
        and dietary intake over the course of a day.
        ``(2) Nominations.--A State agency that seeks a grant under 
    this subsection shall submit to the Secretary nominations of school 
    food authorities to participate in a pilot project under this 
    subsection
        ``(3) Approval.--The Secretary shall approve for participation 
    in pilot projects under this subsection elementary schools under 
    the jurisdiction of not more than 6 nominated school food 
    authorities selected so as to--
            ``(A) provide for an equitable distribution of pilot 
        projects among urban and rural elementary schools;
            ``(B) provide for an equitable distribution of pilot 
        projects among elementary schools of varying family income 
        levels; and
            ``(C) permit the evaluation of pilot projects to 
        distinguish the effects of the pilot projects from other 
        factors, such as changes or differences in educational policies 
        or programs.
        ``(4) Grants to school food authorities.--A State agency 
    receiving a grant under paragraph (1) shall make grants to school 
    food authorities to conduct the pilot projects described in 
    paragraph (1).
        ``(5) Duration of pilot projects.--Subject to the availability 
    of funds made available to carry out this subsection, a school food 
    authority receiving amounts under a grant to conduct a pilot 
    project described in paragraph (1) shall conduct the project during 
    a period of 3 successive school years.
        ``(6) Waiver authority.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the Secretary may waive the requirements of this Act and the 
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) relating 
        to counting of meals, applications for eligibility, and related 
        requirements that would preclude the Secretary from making a 
        grant to conduct a pilot project under paragraph (1).
            ``(B) Nonwaivable requirements.--The Secretary may not 
        waive a requirement under subparagraph (A) if the waiver would 
        prevent a program participant, a potential program participant, 
        or a school from receiving all of the benefits and protections 
        of this Act, the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.), or a Federal law (including a regulation) that protects 
        an individual constitutional right or a statutory civil right.
        ``(7) Requirements for participation in pilot project.--To be 
    eligible to participate in a pilot project under this subsection--
            ``(A) a State agency--
                ``(i) shall submit an application to the Secretary at 
            such time and in such manner as the Secretary shall 
            establish to meet criteria the Secretary has established to 
            enable a valid evaluation to be conducted; and
                ``(ii) shall provide such information relating to the 
            operation and results of the pilot project as the Secretary 
            may reasonably require; and
            ``(B) a school food authority--
                ``(i) shall agree to serve all breakfasts at no charge 
            to all children enrolled in participating elementary 
            schools;
                ``(ii) shall not have a history of violations of this 
            Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
            seq.);
                ``(iii) shall have, under the jurisdiction of the 
            school food authority, a sufficient number of elementary 
            schools that are not participating in the pilot projects to 
            permit a valid evaluation of the effects of the pilot 
            projects; and
                ``(iv) shall meet all other requirements that the 
            Secretary may reasonably require.
        ``(8) Evaluation of pilot projects.--
            ``(A) In general.--The Secretary, acting through the 
        Administrator of the Food and Nutrition Service, shall conduct 
        an evaluation of the pilot projects conducted by the school 
        food authorities selected for participation.
            ``(B) Content.--The evaluation shall include--
                ``(i) a determination of the effect of participation in 
            the pilot project on the academic achievement, attendance 
            and tardiness, and dietary intake over the course of a day 
            of participating children that is not attributable to 
            changes in educational policies and practices; and
                ``(ii) a determination of the effect that participation 
            by elementary schools in the pilot project has on the 
            proportion of students who eat breakfast and on the 
            paperwork required to be completed by the schools.
            ``(C) Report.--On completion of the pilot projects and the 
        evaluation, the Secretary shall submit to the Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report describing the results of the evaluation of the 
        pilot projects required under subparagraph (A).
        ``(9) Reimbursement.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        a school conducting a pilot project under this subsection shall 
        receive a total Federal reimbursement under the school 
        breakfast program in an amount that is equal to the total 
        Federal reimbursement for the school for the prior year under 
        the program (adjusted to reflect changes in the series for food 
        away from home of the Consumer Price Index for All Urban 
        Consumers published by the Bureau of Labor Statistics of the 
        Department of Labor and adjusted for fluctuations in 
        enrollment).
            ``(B) Excess needs.--Funds required for the pilot project 
        in excess of the level of reimbursement received by the school 
        for the prior year (adjusted to reflect changes described in 
        subparagraph (A) and adjusted for fluctuations in enrollment) 
        may be taken from any non-Federal source or from amounts 
        provided under this subsection.
        ``(10) Authorization of appropriations.--
            ``(A) In general.--There are authorized to be appropriated 
        such sums as are necessary to carry out this subsection.
            ``(B) Requirement.--No amounts may be provided under this 
        subsection unless specifically provided in appropriations 
        Acts.''.
    (c) Conforming Amendments.--
        (1) Section 18 of the National School Lunch Act (42 U.S.C. 
    1769), as amended by subsections (a) and (b), is further amended by 
    redesignating subsections (d), (f), and (i) as subsections (c), 
    (d), and (e), respectively.
        (2) Section 101(b) of the Child Nutrition Amendments of 1992 
    (42 U.S.C. 1769 note; Public Law 102-342) is amended--
            (A) in paragraph (1)--
                (i) by striking ``(1)''; and
                (ii) by striking ``other than those required under 
            section 18(c) of the National School Lunch Act (42 U.S.C. 
            1769(c)) to identify other'' and inserting ``to identify''; 
            and
            (B) by striking paragraph (2).

SEC. 110. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE MANAGEMENT 
              INSTITUTE.

    (a) Technical Amendments.--Section 21(c)(2) of the National School 
Lunch Act (42 U.S.C. 1769b-1(c)(2)) is amended by striking ``of section 
24'' each place it appears in subparagraphs (F) and (H) and inserting 
``established by the Secretary''.
    (b) Training and Technical Assistance.--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 ``2003''.
    (c) 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 in 
the first sentence by striking ``and $2,000,000 for fiscal year 1996 
and each subsequent fiscal year,'' and inserting ``$2,000,000 for each 
of fiscal years 1996 through 1998, and $3,000,000 for fiscal year 1999 
and each subsequent fiscal year,''.

SEC. 111. COMPLIANCE AND ACCOUNTABILITY.

    Section 22(d) of the National School Lunch Act (42 U.S.C. 1769c(d)) 
is amended by striking ``1996'' and inserting ``2003''.

SEC. 112. INFORMATION CLEARINGHOUSE.

    Section 26(d) of the National School Lunch Act (42 U.S.C. 1769g(d)) 
is amended in the first sentence by striking ``and $100,000 for fiscal 
year 1998'' and inserting ``$100,000 for fiscal year 1998, and $166,000 
for each of fiscal years 1999 through 2003''.

SEC. 113. ACCOMMODATION OF 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. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS 
              WITH DISABILITIES.

    ``(a) Definitions.--In this section:
        ``(1) Covered program.--The term `covered program' means--
            ``(A) the school lunch program authorized under this Act;
            ``(B) the school breakfast program authorized under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); 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.
        ``(2) 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. The 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) providing grants to State agencies and eligible entities.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 1999 through 2003.''.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

SEC. 201. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

    Section 4(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(a)) 
is amended in the first sentence by striking ``and to carry out the 
provisions of subsection (g)''.

SEC. 202. STATE ADMINISTRATIVE EXPENSES.

    (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.--
                ``(i) Return to secretary.--For each fiscal year, any 
            amounts appropriated that are not obligated or expended 
            during the fiscal year and are not carried over for the 
            succeeding fiscal year under subparagraph (A) shall be 
            returned to the Secretary.
                ``(ii) Reallocation by secretary.--The Secretary shall 
            allocate, for purposes of administrative costs, any 
            remaining amounts among States that demonstrate a need for 
            the amounts.''.
    (b) Elimination of 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 a State 
    under this subsection and under section 13(k)(1) of the National 
    School Lunch Act (42 U.S.C. 1761(k)(1)) may be used by the State 
    for the costs of administration of the programs authorized under 
    this Act (except for the programs authorized under sections 17 and 
    21) and the National School Lunch Act (42 U.S.C. 1751 et seq.) 
    without regard to the basis on which the 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 ``2003''.

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

    (a) Additional Requirements for Applicants.--
        (1) Physical presence requirement.--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.--
                ``(i) In general.--Except as provided in clause (ii) 
            and subject to the requirements of the Americans with 
            Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and 
            section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
            794), each individual seeking certification or 
            recertification for participation in the program shall be 
            physically present at each certification or recertification 
            determination in order to determine eligibility under the 
            program.
                ``(ii) Waivers.--If the agency determines that the 
            requirement of clause (i) would present an unreasonable 
            barrier to participation, a local agency may waive the 
            requirement of clause (i) with respect to--

                    ``(I) an infant or child who--

                        ``(aa) was present at the initial certification 
                    visit; and
                        ``(bb) is receiving ongoing health care from a 
                    provider other than the local agency; or

                    ``(II) an infant or child who--

                        ``(aa) was present at the initial certification 
                    visit;
                        ``(bb) was present at a certification or 
                    recertification determination within the 1-year 
                    period ending on the date of the certification or 
                    recertification determination described in clause 
                    (i); and
                        ``(cc) has one or more parents who work.''.
        (2) Income documentation requirement.--Section 17(d)(3) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as amended by 
    paragraph (1), is further amended by adding at the end the 
    following:
            ``(D) Income documentation.--
                ``(i) In general.--Except as provided in clause (ii), 
            in order to participate in the program pursuant to clause 
            (i) of paragraph (2)(A), an individual seeking 
            certification or recertification for participation in the 
            program shall provide documentation of family income.
                ``(ii) Waivers.--A State agency may waive the 
            documentation requirement of clause (i), in accordance with 
            criteria established by the Secretary, with respect to--

                    ``(I) an individual for whom the necessary 
                documentation is not available; or
                    ``(II) an individual, such as a homeless woman or 
                child, for whom the agency determines the requirement 
                of clause (i) would present an unreasonable barrier to 
                participation.''.

        (3) Adjunct documentation requirement.--Section 17(d)(3) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as amended by 
    paragraph (2), is further amended by adding at the end the 
    following:
            ``(E) Adjunct documentation.--In order to participate in 
        the program pursuant to clause (ii) or (iii) of paragraph 
        (2)(A), an individual seeking certification or recertification 
        for participation in the program shall provide documentation of 
        receipt of assistance described in that clause.''.
    (b) Education and Educational Materials Relating to Effects of Drug 
and Alcohol Use.--Section 17(e)(1) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(e)(1)) is amended by adding at the end the following: 
``A local agency participating in the program shall provide education 
or educational materials relating to the effects of drug and alcohol 
use by a pregnant, postpartum, or breastfeeding woman on the developing 
child of the woman.''.
    (c) 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 striking ``(3) The'' and inserting the following:
        ``(3) Nutrition education materials.--
            ``(A) In general.--The''; and
        (2) by adding at the end the following:
            ``(B) Sharing of materials.--The Secretary may provide, in 
        bulk quantity, nutrition education materials (including 
        materials promoting breastfeeding) developed with funds made 
        available for the program authorized under this section 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 (7 U.S.C. 612c note; Public 
        Law 93-86) at no cost to that program.''.
    (d) Use of Claims From Vendors and Participants.--Section 17(f)(21) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is amended 
to read as follows:
        ``(21) Use of claims from vendors and participants.--A State 
    agency may use funds recovered from vendors and participants, as a 
    result of a claim arising under the program, to carry out the 
    program during--
            ``(A) the fiscal year in which the claim arises;
            ``(B) the fiscal year in which the funds are collected; and
            ``(C) the fiscal year following the fiscal year in which 
        the funds are collected.''.
    (e) Individuals Participating at More Than One Site.--Section 17(f) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)) is amended by 
adding at the end the following:
        ``(23) Individuals participating at more than one site.--Each 
    State agency shall implement a system designed by the State agency 
    to identify individuals who are participating at more than one site 
    under the program.''.
    (f) Identification of High Risk Vendors; Compliance 
Investigations.--
        (1) In general.--Section 17(f) of the Child Nutrition Act of 
    1966 (42 U.S.C. 1786(f)), as amended by subsection (e), is further 
    amended by adding at the end the following:
        ``(24) High risk vendors.--Each State agency shall--
            ``(A) identify vendors that have a high probability of 
        program abuse; and
            ``(B) conduct compliance investigations of the vendors.''.
        (2) Regulations.--The Secretary of Agriculture shall 
    promulgate--
            (A) not later than March 1, 1999, proposed regulations to 
        carry out section 17(f)(24) of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786(f)(24)), as added by paragraph (1); and
            (B) not later than March 1, 2000, final regulations to 
        carry out section 17(f)(24) of that Act.
    (g) Reauthorization of Program.--Section 17(g)(1) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended in the first 
sentence by striking ``1998'' and inserting ``2003''.
    (h) Purchase of Breast Pumps.--Section 17(h)(1)(C) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(C)) is amended--
        (1) by striking ``(C) In'' and inserting the following:
            ``(C) Remaining amounts.--
                ``(i) In general.--Except as provided in clause (ii), 
            in''; and
        (2) by adding at the end the following:
                ``(ii) Breast pumps.--A State agency may use amounts 
            made available under clause (i) for the purchase of breast 
            pumps.''.
    (i) Nutrition Services and Administration.--
        (1) Allocation of amounts.--Section 17(h)(2)(A) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended in the 
    first sentence by striking ``1998'' and inserting ``2003''.
        (2) Technical amendment.--Section 17(h)(2)(A)(iv) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)(iv)) is amended by 
    striking ``, to the extent funds are not already provided under 
    subparagraph (I)(v) for the same purpose,''.
        (3) Level of per-participant expenditure for nutrition services 
    and administration.--Section 17(h)(2)(B)(ii) of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786(h)(2)(B)(ii)) is amended by striking 
    ``15 percent'' and inserting ``10 percent (except that the 
    Secretary may establish a higher percentage for State agencies that 
    are small)''.
        (4) Technical amendments.--Section 17(h)(3) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended--
            (A) in subparagraph (E), by striking ``In the case'' and 
        all that follows through ``subsequent fiscal year,'' and 
        inserting ``For each fiscal year,''; and
            (B) by striking subparagraphs (F) and (G).
        (5) Conversion of amounts for supplemental foods to amounts for 
    nutrition services and administration.--Section 17(h)(5)(A) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(5)(A)) is amended in 
    the matter preceding clause (i) by striking ``achieves'' and all 
    that follows through ``such State agency may'' and inserting 
    ``submits a plan to reduce average food costs per participant and 
    to increase participation above the level estimated for the State 
    agency, the State agency may, with the approval of the 
    Secretary,''.
    (j) 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 bidders 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 5 percent.''.
    (k) Infrastructure and Breastfeeding Promotion and Support 
Activities.--Section 17(h)(10)(A) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(h)(10)(A)) is amended by striking ``1998'' and 
inserting ``2003''.
    (l) Consideration of Price Levels of Retail Stores for 
Participation in Program.--
        (1) In general.--Section 17(h) of the Child Nutrition Act of 
    1966 (42 U.S.C. 1786(h)) is amended by adding at the end the 
    following:
        ``(11) Consideration of price levels of retail stores for 
    participation in program.--
            ``(A) In general.--For the purpose of promoting efficiency 
        and to contain costs under the program, a State agency shall, 
        in selecting a retail store for participation in the program, 
        take into consideration the prices that the store charges for 
        foods under the program as compared to the prices that other 
        stores charge for the foods.
            ``(B) Subsequent price increases.--The State agency shall 
        establish procedures to ensure that a retail store selected for 
        participation in the program does not subsequently raise prices 
        to levels that would otherwise make the store ineligible for 
        participation in the program.''.
        (2) Regulations.--The Secretary of Agriculture shall 
    promulgate--
            (A) not later than March 1, 1999, proposed regulations to 
        carry out section 17(h)(11) of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786(h)(11)), as added by paragraph (1); and
            (B) not later than March 1, 2000, final regulations to 
        carry out section 17(h)(11) of that Act.
    (m) Management Information System Plan.--Section 17(h) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)), as amended by subsection 
(l)(1), is further amended by adding at the end the following:
        ``(12) Management information system plan.--
            ``(A) In general.--In consultation with State agencies, 
        vendors, and other interested persons, the Secretary shall 
        establish a long-range plan for the development and 
        implementation of management information systems (including 
        electronic benefit transfers) to be used in carrying out the 
        program.
            ``(B) Report.--Not later than 2 years after the date of 
        enactment of this paragraph, the Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report on actions taken to carry 
        out subparagraph (A).
            ``(C) Interim period.--Prior to the date of submission of 
        the report of the Secretary required under subparagraph (B), a 
        State agency may not require retail stores to pay the cost of 
        systems or equipment that may be required to test electronic 
        benefit transfer systems.''.
    (n) Use of Funds in Preceding and Subsequent Fiscal Years.--
        (1) In general.--Section 17(i)(3)(A) of the Child Nutrition Act 
    of 1966 (42 U.S.C. 1786(i)(3)(A)) is amended--
            (A) by striking ``subparagraphs (B) and (C)'' and inserting 
        ``subparagraph (B)''; and
            (B) by striking clauses (i) and (ii) and inserting the 
        following:
        ``(i)(I) not more than 1 percent (except as provided in 
    subparagraph (C)) of the amount of funds allocated to a State 
    agency under this section for supplemental foods for a fiscal year 
    may be expended by the State agency for allowable expenses incurred 
    under this section for supplemental foods during the preceding 
    fiscal year; and
        ``(II) not more than 1 percent of the amount of funds allocated 
    to a State agency under this section for nutrition services and 
    administration for a fiscal year may be expended by the State 
    agency for allowable expenses incurred under this section for 
    supplemental foods and nutrition services and administration during 
    the preceding fiscal year; and
        ``(ii)(I) for each fiscal year, of the amounts allocated to a 
    State agency for nutrition services and administration, an amount 
    equal to not more than 1 percent of the amount allocated to the 
    State agency under this section for the fiscal year may be expended 
    by the State agency for allowable expenses incurred under this 
    section for nutrition services and administration during the 
    subsequent fiscal year; and
        ``(II) for each fiscal year, of the amounts allocated to a 
    State agency for nutrition services and administration, an amount 
    equal to not more than \1/2\ of 1 percent of the amount allocated 
    to the State agency under this section for the fiscal year may be 
    expended by the State agency, with the prior approval of the 
    Secretary, for the development of a management information system, 
    including an electronic benefit transfer system, during the 
    subsequent fiscal year.''.
        (2) Conforming amendments.--Section 17 of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786) is amended--
            (A) in subsection (h)(10)(A), by inserting after 
        ``nutrition services and administration funds'' the following: 
        ``and supplemental foods funds''; and
            (B) in subsection (i)(3)--
                (i) by striking subparagraphs (C) through (G); and
                (ii) by redesignating subparagraph (H) as subparagraph 
            (C).
    (o) Farmers' Market Nutrition Program.--
        (1) Matching requirement.--Section 17(m)(3) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended in the 
    first sentence by inserting ``program income or'' after ``satisfied 
    from''.
        (2) Criteria for additional funds.--Section 17(m)(6)(C) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(C)) is amended--
            (A) by striking ``serve additional recipients in'';
            (B) by striking clause (ii) and inserting the following:
        ``(ii) documentation that demonstrates that--
            ``(I) there is a need for an increase in funds; and
            ``(II) the use of the increased funding will be consistent 
        with serving nutritionally at-risk persons and expanding the 
        awareness and use of farmers' markets;'';
            (C) in clause (iii), by striking the period at the end and 
        inserting ``; and''; and
            (D) by adding at the end the following:
        ``(iv) whether, in the case of a State that intends to use any 
    funding provided under subparagraph (G)(i) to increase the value of 
    the Federal share of the benefits received by a recipient, the 
    funding provided under subparagraph (G)(i) will increase the rate 
    of coupon redemption.''.
        (3) Ranking criteria for state plans.--Section 17(m)(6) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is amended--
            (A) by striking subparagraph (F); and
            (B) by redesignating subparagraph (G) as subparagraph (F).
        (4) Funding for current and new states.--Section 17(m)(6)(F) of 
    the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(F)), as 
    redesignated by paragraph (3)(B), is amended--
            (A) in clause (i)--
                (i) in the first sentence, by striking ``that wish'' 
            and all follows through ``to do so'' and inserting ``whose 
            State plan''; and
                (ii) in the second sentence, by striking ``for 
            additional recipients''; and
            (B) in the second sentence of clause (ii), by striking 
        ``that desire to serve additional recipients, and''.
        (5) Reauthorization of program.--Section 17(m)(9)(A) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by 
    striking ``1998'' and inserting ``2003''.
    (p) Disqualification of Certain Vendors.--
        (1) In general.--Section 17 of the Child Nutrition Act of 1966 
    (42 U.S.C. 1786) is amended by adding at the end the following:
    ``(o) Disqualification of Vendors Convicted of Trafficking or 
Illegal Sales.--
        ``(1) In general.--Except as provided in paragraph (4), a State 
    agency shall permanently disqualify from participation in the 
    program authorized under this section a vendor convicted of--
            ``(A) 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 under this 
        section); or
            ``(B) selling firearms, ammunition, explosives, or 
        controlled substances (as defined in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802)) in exchange for food 
        instruments (including any item described in subparagraph (A) 
        issued in lieu of a food instrument under this section).
        ``(2) Notice of disqualification.--The State agency shall--
            ``(A) provide the vendor with notification of the 
        disqualification; and
            ``(B) make the disqualification effective on the date of 
        receipt of the notice of disqualification.
        ``(3) Prohibition of receipt of lost revenues.--A vendor shall 
    not be entitled to receive any compensation for revenues lost as a 
    result of disqualification under this subsection.
        ``(4) Exceptions in lieu of disqualification.--
            ``(A) In general.--A State agency may permit a vendor that, 
        but for this paragraph, would be disqualified under paragraph 
        (1), to continue to participate in the program if the State 
        agency determines, in its sole discretion according to criteria 
        established by the Secretary, that--
                ``(i) disqualification of the vendor would cause 
            hardship to participants in the program authorized under 
            this section; or
                ``(ii)(I) the vendor had, at the time of the violation 
            under paragraph (1), an effective policy and program in 
            effect to prevent violations described in paragraph (1); 
            and
                ``(II) the ownership of the vendor was not aware of, 
            did not approve of, and was not involved in the conduct of 
            the violation.
            ``(B) Civil penalty.--If a State agency under subparagraph 
        (A) permits a vendor to continue to participate in the program 
        in lieu of disqualification, the State agency shall assess the 
        vendor a civil penalty in an amount determined by the State 
        agency, in accordance with criteria established by the 
        Secretary, except that--
                ``(i) the amount of the civil penalty shall not exceed 
            $10,000 for each violation; and
                ``(ii) the amount of civil penalties imposed for 
            violations investigated as part of a single investigation 
            may not exceed $40,000.''.
        (2) Regulations.--The Secretary of Agriculture shall 
    promulgate--
            (A) not later than March 1, 1999, proposed regulations to 
        carry out section 17(o) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(o)), as added by paragraph (1); and
            (B) not later than March 1, 2000, final regulations to 
        carry out section 17(o) of that Act.
    (q) Criminal Forfeiture.--Section 17 of the Child Nutrition Act of 
1966 (42 U.S.C. 1786), as amended by subsection (p)(1), is amended by 
adding at the end the following:
    ``(p) Criminal Forfeiture.--
        ``(1) In general.--Notwithstanding any provision of State law 
    and in addition to any other penalty authorized by law, a court may 
    order a person that is convicted of a violation of a provision of 
    law described in paragraph (2), with respect to food instruments 
    (including any item described in subsection (o)(1)(A) issued in 
    lieu of a food instrument under this section), funds, assets, or 
    property that have a value of $100 or more and that are the subject 
    of a grant or other form of assistance under this section, to 
    forfeit to the United States all property described in paragraph 
    (3).
        ``(2) Applicable laws.--A provision of law described in this 
    paragraph is--
            ``(A) section 12(g) of the National School Lunch Act (42 
        U.S.C. 1760(g)); and
            ``(B) any other Federal law imposing a penalty for 
        embezzlement, willful misapplication, stealing, obtaining by 
        fraud, or trafficking in food instruments (including any item 
        described in subsection (o)(1)(A) issued in lieu of a food 
        instrument under this section), funds, assets, or property.
        ``(3) Property subject to forfeiture.--The following property 
    shall be subject to forfeiture under paragraph (1):
            ``(A) All property, real and personal, used in a 
        transaction or attempted transaction, to commit, or to 
        facilitate the commission of, a violation described in 
        paragraph (1).
            ``(B) All property, real and personal, constituting, 
        derived from, or traceable to any proceeds a person obtained 
        directly or indirectly as a result of a violation described in 
        paragraph (1).
        ``(4) Procedures; interest of owner.--Except as provided in 
    paragraph (5), all property subject to forfeiture under this 
    subsection, any seizure or disposition of the property, and any 
    proceeding relating to the forfeiture, seizure, or disposition 
    shall be subject to section 413 of the Comprehensive Drug Abuse 
    Prevention and Control Act of 1970 (21 U.S.C. 853), other than 
    subsection (d) of that section.
        ``(5) Proceeds.--The proceeds from any sale of forfeited 
    property and any amounts forfeited under this subsection shall be 
    used--
            ``(A) first, to reimburse the Department of Justice, the 
        Department of the Treasury, and the United States Postal 
        Service for the costs incurred by the Departments or Service to 
        initiate and complete the forfeiture proceeding;
            ``(B) second, to reimburse the Office of Inspector General 
        of the Department of Agriculture for any costs incurred by the 
        Office in the law enforcement effort resulting in the 
        forfeiture;
            ``(C) third, to reimburse any Federal, State, or local law 
        enforcement agency for any costs incurred in the law 
        enforcement effort resulting in the forfeiture; and
            ``(D) fourth, by the State agency to carry out approval, 
        reauthorization, and compliance investigations of vendors.''.
    (r) Study of Cost Containment Practices.--
        (1) In general.--The Secretary of Agriculture shall conduct a 
    study on the effect of cost containment practices established by 
    States under the special supplemental nutrition program for women, 
    infants, and children authorized under section 17 of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786) for the selection of vendors 
    and approved food items (other than infant formula) on--
            (A) program participation;
            (B) access and availability of prescribed foods;
            (C) voucher redemption rates and actual food selections by 
        participants;
            (D) participants on special diets or with specific food 
        allergies;
            (E) participant use and satisfaction of prescribed foods;
            (F) achievement of positive health outcomes; and
            (G) program costs.
        (2) Report.--The Secretary shall submit to the Committee on 
    Education and the Workforce of the House of Representatives and the 
    Committee on Agriculture, Nutrition, and Forestry of the Senate--
            (A) not later than 2 years after the date of enactment of 
        this Act, an interim report describing the results of the study 
        conducted under paragraph (1); and
            (B) not later than 3 years after the date of enactment of 
        this Act, a final report describing the results of the study 
        conducted under paragraph (1).
    (s) Study of WIC Services.--
        (1) In general.--The Comptroller General of the United States 
    shall conduct a study that assesses--
            (A) the cost of delivering services under the special 
        supplemental nutrition program for women, infants, and children 
        authorized under section 17 of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786), including the costs of implementing and 
        administering cost containment efforts;
            (B) the fixed and variable costs incurred by State and 
        local governments for delivering the services and the extent to 
        which those costs are charged to State agencies;
            (C) the quality of the services delivered, taking into 
        account the effect of the services on the health of 
        participants; and
            (D) the costs incurred for personnel, automation, central 
        support, and other activities to deliver the services and 
        whether the costs meet Federal audit standards for allowable 
        costs under the program.
        (2) Report.--Not later than 3 years after the date of enactment 
    of this Act, the Comptroller General shall submit to the Secretary 
    of Agriculture, the Committee on Education and the Workforce of the 
    House of Representatives, and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate a report containing the 
    results of the study conducted under paragraph (1).

SEC. 204. NUTRITION EDUCATION AND TRAINING.

    Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)) is amended--
        (1) by striking the subsection heading and all that follows 
    through paragraph (3)(A) and inserting the following:
    ``(i) Authorization of Appropriations.--
        ``(1) In general.--
            ``(A) Funding.--There are authorized to be appropriated 
        such sums as are necessary to carry out this section for each 
        of fiscal years 1997 through 2003.''; and
        (2) by redesignating paragraphs (4) and (5) as paragraphs (2) 
    and (3), respectively.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

SEC. 301. INFORMATION FROM RECIPIENT AGENCIES.

    Section 3(f)(2) of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended 
to read as follows:
        ``(2) Information from recipient agencies.--
            ``(A) In general.--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.
            ``(B) Frequency.--The information shall be collected at 
        least once every 2 years.
            ``(C) Additional submissions.--The Secretary shall provide 
        the recipient agencies a means for voluntarily submitting 
        customer acceptability information.''.

SEC. 302. FOOD DISTRIBUTION.

    The Commodity Distribution Reform Act and WIC Amendments of 1987 (7 
U.S.C. 612c note; Public Law 100-237) is amended--
        (1) by redesignating sections 13 and 14 as sections 17 and 18, 
    respectively; and
        (2) by inserting after section 12 the following:

``SEC. 13. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.

    ``(a) Transfer.--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.
    ``(b) Reimbursement.--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.
    ``(c) Crediting.--Any reimbursement made under subsection (b) 
shall--
        ``(1) be credited to the accounts that incurred the costs when 
    the transferred commodities were originally purchased; and
        ``(2) 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. 14. AUTHORITY TO RESOLVE CLAIMS.

    ``(a) In General.--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.
    ``(b) Waiver.--The Secretary may waive a claim described in 
subsection (a) if the Secretary determines that a waiver would serve 
the purposes of the program.
    ``(c) Authority of the Attorney General.--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.

``SEC. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF COMMODITIES THAT 
              POSE A HEALTH OR SAFETY RISK.

    ``(a) In General.--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.
    ``(b) Allowable Costs.--The costs--
        ``(1) may include costs for storage, transportation, 
    processing, and destruction of the commodities described in 
    subsection (a); and
        ``(2) shall be subject to the approval of the Secretary.
    ``(c) Replacement Commodities.--
        ``(1) In general.--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).
        ``(2) Recovery.--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).
    ``(d) Crediting of Recovered Funds.--Funds recovered from a 
supplier or other entity regarding the commodities described in 
subsection (a) shall--
        ``(1) 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
        ``(2) remain available to carry out the purposes of section 32 
    of that Act until expended.
    ``(e) Termination Date.--The authority provided by this section 
terminates effective October 1, 2000.

``SEC. 16. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL SOURCES.

    ``(a) In General.--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)).
    ``(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).''.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on October 1, 1998.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.