[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3874 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3874

 To amend the Child Nutrition Act of 1966 to make improvements to the 
special supplemental nutrition program for women, infants, and children 
 and to extend the authority of that program through fiscal year 2003.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 1998

 Mr. Castle (for himself and Mr. Riggs) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the Child Nutrition Act of 1966 to make improvements to the 
special supplemental nutrition program for women, infants, and children 
 and to extend the authority of that program through fiscal year 2003.

    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 ``WIC Reauthorization Amendments of 
1998''.

SEC. 2. 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)(i) Except as provided in clause (ii), each applicant to the 
program shall be physically present at each certification determination 
in order to determine eligibility under the program.
    ``(ii) A local agency may waive the requirement of clause (i)--
            ``(I) if required to do so by requirements under the 
        Americans with Disabilities Act; or
            ``(II) with respect to a child who was present at the 
        initial certification visit and who is receiving on-going 
        health care from a provider other than such local agency, if 
        the agency determines that the requirement of clause (i) would 
        present a barrier to participation.''.
            (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)(i) Except as provided in clause (ii), in order to be eligible 
for the program, each applicant to the program shall provide--
            ``(I) documentation of household income; or
            ``(II) documentation of participation in a program 
        described in clauses (ii) and (iii) of paragraph (2)(A).
    ``(ii)(I) A State agency may waive the requirement of clause (i)--
            ``(aa) with respect to an applicant for whom the necessary 
        documentation is not available; or
            ``(bb) with respect to an applicant, such as homeless women 
        or children, for whom the agency determines the requirement of 
        clause (i) would present a barrier to participation.
    ``(II) The Secretary shall prescribe regulations to carry out 
division (aa).''.
    (b) Distribution of Nutrition Education Materials to State Agencies 
Administering the Commodity Supplemental Food Program.--Section 
17(e)(3) of such Act (42 U.S.C. 1786(e)(3)) is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (2) by inserting after paragraph (3) the following:
    ``(4) The Secretary may provide nutrition education materials, 
including breastfeeding promotion materials, developed with funds 
appropriated to carry out 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 such Act (42 
U.S.C. 1786(g)(1)) is amended in the first sentence by striking ``1995 
through 1998'' and inserting ``1999 through 2003''.
    (d) Purchase of Breast Pumps.--Section 17(h)(1)(C) of such Act (42 
U.S.C. 1786(h)(1)(C)) is amended--
            (1) by striking ``(C)'' and inserting ``(C)(i)''; and
            (2) by adding at the end the following:
    ``(ii)(I) Notwithstanding any other provision of this section, with 
respect to fiscal year 2000 and subsequent fiscal years, a State agency 
may use amounts made available under clause (i) for the purchase of 
breast pumps.
    ``(II) A State agency that exercises the authority of subclause (I) 
shall expend from amounts allocated for nutrition services and 
administration an amount for the purchase of breast pumps that is not 
less than the amount expended for the purchase of breast pumps for the 
prior fiscal year.''.
    (e) Nutrition Services and Administration.--
            (1) Allocation of amounts.--Section 17(h)(2)(A) of such Act 
        (42 U.S.C. 1786(h)(2)(A)) is amended in the first sentence by 
        striking ``1995 through 1998'' and inserting ``1999 through 
        2003''.
            (2) Level of per participant expenditure.--Section 
        17(h)(2)(B)(ii) of such Act (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 small State agencies)''.
    (f) Conversion of Amounts for Food Benefits to Amounts for 
Nutrition Services and Administration.--Section 17(h)(5)(A) of such Act 
(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 such State agency, such State agency may, with the 
approval of the Secretary,''.
    (g) Infant Formula Procurement.--Section 17(h)(8)(A) of such Act 
(42 U.S.C. 1786(h)(8)(A)) is amended by adding at the end the 
following:
    ``(iii) 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.''.
    (h) Infrastructure and Breastfeeding Promotion/Support 
Activities.--Section 17(h)(10)(A) of such Act (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 2003,''.
    (i) Consideration of Price Levels of Retail Stores for 
Participation in the Program.--Section 17(h) of such Act (42 U.S.C. 
1786(h)) is amended by adding at the end the following:
    ``(11)(A) 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 such foods.
    ``(B) The State agency shall establish procedures to insure 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 selection in the program.''.
    (j) Use of Funds in Preceding and Subsequent Fiscal Years.--
            (1) In general.--Clauses (i) and (ii) of section 
        17(i)(3)(A) of such Act (42 U.S.C. 1786(i)(3)(A)(i) and (ii)) 
        are amended to read as follows:
            ``(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, and 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, respectively, during the preceding fiscal year; 
        and
            ``(ii)(I) a State agency may expend, from amounts allocated 
        to the agency for nutrition services and administration, an 
        amount equal to not more than 1 percent of the total amount of 
        funds allocated to the agency under this section for a fiscal 
        year for allowable expenses incurred under this section for 
        nutrition services and administration during the subsequent 
        fiscal year; and
            ``(II) with the prior approval of the Secretary, a State 
        agency may expend, from amounts allocated to the agency for 
        nutrition services and administration, an amount equal to not 
        more than one-half of 1 percent of the total amount of funds 
        allocated to the agency under this section for a fiscal year 
        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 such Act (42 
        U.S.C. 1786) is amended--
                    (A) in subsection (h)(10)(A) (as amended by this 
                Act), by inserting after ``nutrition services and 
                administration funds'' the following: ``and food 
                benefit funds''; and
                    (B) in subsection (i)--
                            (i) by striking subparagraphs (C) through 
                        (G); and
                            (ii) by redesignating subparagraph (H) as 
                        subparagraph (C).
    (k) Farmers Market Nutrition Program.--
            (1) Matching fund requirement.--Section 17(m)(3) of such 
        Act (42 U.S.C. 1786(m)(3)) is amended in both the first and 
        second sentences by striking ``total'' each place it appears 
        and inserting ``administrative''.
            (2) Ranking criteria for state plans.--Section 17(m)(6) of 
        such Act (42 U.S.C. 1786(m)(6)) is amended--
                    (A) by striking subparagraph (F); and
                    (B) by redesignating subparagraph (G) as 
                subparagraph (F).
            (3) Reauthorization of Program.--Section 17(m)(9)(A) of 
        such Act (42 U.S.C. 1786(m)(9)(A)) is amended by striking 
        ``1996 through 1998'' and inserting ``1999 through 2003''.
    (l) Disqualification of Certain Vendors.--
            (1) In general.--Section 17 of such Act (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 (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.
    (m) Study and Report by Economic Research Service.--Section 17 of 
such Act (42 U.S.C. 1786), as amended by this Act, is further amended 
by adding at the end the following:
    ``(p) Study and Report by Economic Research Service.--
            ``(1) Study.--The Secretary, acting through the 
        Administrator of the Economic Research Service, shall conduct a 
        study on the effect of cost containment practices established 
        by States under the program for the selection of vendors and 
        approved food items (other than infant formula) on the 
        following:
                    ``(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.
                    ``(G) Program costs.
            ``(2) Report.--Not later than 3 years after the date of the 
        enactment of the WIC Reauthorization Amendments of 1998, the 
        Administrator 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).''.
    (n) Collection and Use of Penalties From Vendor and Recipient Fraud 
and Abuse.--Section 17 of such Act (42 U.S.C. 1786), as amended by this 
Act, is further amended by adding at the end the following:
    ``(q) Use of Penalties From Vendor and Recipient Fraud and Abuse.--
            ``(1) In general.--Amounts collected from penalties from 
        vendors and recipients relating to violations of any provision 
        of this section (including any regulation established to carry 
        out this section) for fraud and abuse under the program may be 
        used for nutrition services and administration and food 
        benefits only for the 1-year period beginning on the date on 
        which amounts under the penalty are received.''.
    (o) Maximum Amount of Fine for Certain Violations Under the 
Program.--Section 17 of such Act (42 U.S.C. 1786), as amended by this 
Act, is further amended by adding at the end the following:
    ``(r) Maximum Amount of Fine for Certain Violations Under the 
Program.--The maximum amount of a fine with respect to the 
embezzlement, willful misapplication, stealing, obtaining by fraud, or 
trafficking in food instruments of funds, assets, or property that are 
of a value of $100 or more under the program shall be $25,000.''.

SEC. 3. EFFECTIVE DATE.

    Except as provided in section 2(l)(2), this Act, and the amendments 
made by this Act, shall take effect on October 1, 1998, or the date of 
the enactment of this Act, whichever occurs later.
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