[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2507 Enrolled Bill (ENR)]
S.2507
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To amend the Richard B. Russell 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 reauthorize child nutrition programs, 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 ``Child Nutrition
and WIC Reauthorization Act of 2004''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; Table of contents.
TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT
Sec. 101. Nutrition promotion.
Sec. 102. Nutrition requirements.
Sec. 103. Provision of information.
Sec. 104. Direct certification.
Sec. 105. Household applications.
Sec. 106. Duration of eligibility for free or reduced price meals.
Sec. 107. Runaway, homeless, and migrant youth.
Sec. 108. Certification by local educational agencies.
Sec. 109. Exclusion of military housing allowances.
Sec. 110. Waiver of requirement for weighted averages for nutrient
analysis.
Sec. 111. Food safety.
Sec. 112. Purchases of locally produced foods.
Sec. 113. Special assistance.
Sec. 114. Food and nutrition projects integrated with elementary school
curricula.
Sec. 115. Procurement training.
Sec. 116. Summer food service program for children.
Sec. 117. Commodity distribution program.
Sec. 118. Notice of irradiated food products.
Sec. 119. Child and adult care food program.
Sec. 120. Fresh fruit and vegetable program.
Sec. 121. Summer food service residential camp eligibility.
Sec. 122. Access to local foods and school gardens.
Sec. 123. Year-round services for eligible entities.
Sec. 124. Free lunch and breakfast eligibility.
Sec. 125. Training, technical assistance, and food service management
institute.
Sec. 126. Administrative error reduction.
Sec. 127. Compliance and accountability.
Sec. 128. Information clearinghouse.
Sec. 129. Program evaluation.
TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966
Sec. 201. Severe need assistance.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants,
and children.
Sec. 204. Local wellness policy.
Sec. 205. Team nutrition network.
Sec. 206. Review of best practices in the breakfast program.
TITLE III--COMMODITY DISTRIBUTION PROGRAMS
Sec. 301. Commodity distribution programs.
TITLE IV--MISCELLANEOUS
Sec. 401. Sense of Congress regarding efforts to prevent and reduce
childhood obesity.
TITLE V--IMPLEMENTATION
Sec. 501. Guidance and regulations.
Sec. 502. Effective dates.
TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT
SEC. 101. NUTRITION PROMOTION.
The Richard B. Russell National School Lunch Act is amended by
inserting after section 4 (42 U.S.C. 1753) the following:
``SEC. 5. NUTRITION PROMOTION.
``(a) In General.--Subject to the availability of funds made
available under subsection (g), the Secretary shall make payments to
State agencies for each fiscal year, in accordance with this section,
to promote nutrition in food service programs under this Act and the
school breakfast program established under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
``(b) Total Amount for Each Fiscal Year.--The total amount of funds
available for a fiscal year for payments under this section shall equal
not more than the product obtained by multiplying--
``(1) \1/2\ cent; by
``(2) the number of lunches reimbursed through food service
programs under this Act during the second preceding fiscal year in
schools, institutions, and service institutions that participate in
the food service programs.
``(c) Payments to States.--
``(1) Allocation.--Subject to paragraph (2), from the amount of
funds available under subsection (g) for a fiscal year, the
Secretary shall allocate to each State agency an amount equal to
the greater of--
``(A) a uniform base amount established by the Secretary;
or
``(B) an amount determined by the Secretary, based on the
ratio that--
``(i) the number of lunches reimbursed through food
service programs under this Act in schools, institutions,
and service institutions in the State that participate in
the food service programs; bears to
``(ii) the number of lunches reimbursed through the
food service programs in schools, institutions, and service
institutions in all States that participate in the food
service programs.
``(2) Reductions.--The Secretary shall reduce allocations to
State agencies qualifying for an allocation under paragraph (1)(B),
in a manner determined by the Secretary, to the extent necessary to
ensure that the total amount of funds allocated under paragraph (1)
is not greater than the amount appropriated under subsection (g).
``(d) Use of Payments.--
``(1) Use by state agencies.--A State agency may reserve, to
support dissemination and use of nutrition messages and material
developed by the Secretary, up to--
``(A) 5 percent of the payment received by the State for a
fiscal year under subsection (c); or
``(B) in the case of a small State (as determined by the
Secretary), a higher percentage (as determined by the
Secretary) of the payment.
``(2) Disbursement to schools and institutions.--Subject to
paragraph (3), the State agency shall disburse any remaining amount
of the payment to school food authorities and institutions
participating in food service programs described in subsection (a)
to disseminate and use nutrition messages and material developed by
the Secretary.
``(3) Summer food service program for children.--In addition to
any amounts reserved under paragraph (1), in the case of the summer
food service program for children established under section 13, the
State agency may--
``(A) retain a portion of the funds made available under
subsection (c) (as determined by the Secretary); and
``(B) use the funds, in connection with the program, to
disseminate and use nutrition messages and material developed
by the Secretary.
``(e) Documentation.--A State agency, school food authority, and
institution receiving funds under this section shall maintain
documentation of nutrition promotion activities conducted under this
section.
``(f) Reallocation.--The Secretary may reallocate, to carry out
this section, any amounts made available to carry out this section that
are not obligated or expended, as determined by the Secretary.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section, to
remain available until expended.''.
SEC. 102. NUTRITION REQUIREMENTS.
Section 9(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(a)) is amended by striking paragraph (2) and inserting
the following:
``(2) Fluid milk.--
``(A) In general.--Lunches served by schools participating
in the school lunch program under this Act--
``(i) shall offer students fluid milk in a variety of
fat contents;
``(ii) may offer students flavored and unflavored fluid
milk and lactose-free fluid milk; and
``(iii) shall provide a substitute for fluid milk for
students whose disability restricts their diet, on receipt
of a written statement from a licensed physician that
identifies the disability that restricts the student's diet
and that specifies the substitute for fluid milk.
``(B) Substitutes.--
``(i) Standards for substitution.--A school may
substitute for the fluid milk provided under subparagraph
(A), a nondairy beverage that is nutritionally equivalent
to fluid milk and meets nutritional standards established
by the Secretary (which shall, among other requirements to
be determined by the Secretary, include fortification of
calcium, protein, vitamin A, and vitamin D to levels found
in cow's milk) for students who cannot consume fluid milk
because of a medical or other special dietary need other
than a disability described in subparagraph (A)(iii).
``(ii) Notice.--The substitutions may be made if the
school notifies the State agency that the school is
implementing a variation allowed under this subparagraph,
and if the substitution is requested by written statement
of a medical authority or by a student's parent or legal
guardian that identifies the medical or other special
dietary need that restricts the student's diet, except that
the school shall not be required to provide beverages other
than beverages the school has identified as acceptable
substitutes.
``(iii) Excess expenses borne by school food
authority.--Expenses incurred in providing substitutions
under this subparagraph that are in excess of expenses
covered by reimbursements under this Act shall be paid by
the school food authority.
``(C) Restrictions on sale of milk prohibited.--A school
that participates in the school lunch program under this Act
shall not directly or indirectly restrict the sale or marketing
of fluid milk products by the school (or by a person approved
by the school) at any time or any place--
``(i) on the school premises; or
``(ii) at any school-sponsored event.''.
SEC. 103. PROVISION OF INFORMATION.
Section 9(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(a)) is amended by adding at the end the following:
``(4) Provision of information.--
``(A) Guidance.--Prior to the beginning of the school year
beginning July 2004, the Secretary shall issue guidance to
States and school food authorities to increase the consumption
of foods and food ingredients that are recommended for
increased serving consumption in the most recent Dietary
Guidelines for Americans published under section 301 of the
National Nutrition Monitoring and Related Research Act of 1990
(7 U.S.C. 5341).
``(B) Rules.--Not later than 2 years after the date of
enactment of this paragraph, the Secretary shall promulgate
rules, based on the most recent Dietary Guidelines for
Americans, that reflect specific recommendations, expressed in
serving recommendations, for increased consumption of foods and
food ingredients offered in school nutrition programs under
this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.).''.
SEC. 104. DIRECT CERTIFICATION.
(a) In General.--Section 9(b) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) is amended--
(1) by redesignating paragraphs (3) through (7) as paragraphs
(9) through (13), respectively; and
(2) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``(B) Applications'' and inserting the
following:
``(B) Applications and descriptive material.--
``(i) In general.--Applications'';
(ii) in the second sentence, by striking ``Such forms
and descriptive material'' and inserting the following:
``(ii) Income eligibility guidelines.--Forms and
descriptive material distributed in accordance with clause
(i)''; and
(iii) by adding at the end the following:
``(iii) Contents of descriptive material.--
``(I) In general.--Descriptive material distributed
in accordance with clause (i) shall contain a
notification that--
``(aa) participants in the programs listed in
subclause (II) may be eligible for free or reduced
price meals; and
``(bb) documentation may be requested for
verification of eligibility for free or reduced
price meals.
``(II) Programs.--The programs referred to in
subclause (I)(aa) are--
``(aa) the special supplemental nutrition
program for women, infants, and children
established by section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786);
``(bb) the food stamp program established under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
``(cc) the food distribution program on Indian
reservations established under section 4(b) of the
Food Stamp Act of 1977 (7 U.S.C. 2013(b)); and
``(dd) a State program funded under the program
of block grants to States for temporary assistance
for needy families established under part A of
title IV of the Social Security Act (42 U.S.C. 601
et seq.).'';
(B) by striking ``(C)(i)'' and inserting ``(3)''; and
(C) by striking clause (ii) of subparagraph (C) (as it
existed before the amendment made by subparagraph (B)) and all
that follows through the end of subparagraph (D) and inserting
the following:
``(4) Direct certification for children in food stamp
households.--
``(A) In general.--Subject to subparagraph (D), each State
agency shall enter into an agreement with the State agency
conducting eligibility determinations for the food stamp
program established under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.).
``(B) Procedures.--Subject to paragraph (6), the agreement
shall establish procedures under which a child who is a member
of a household receiving assistance under the food stamp
program shall be certified as eligible for free lunches under
this Act and free breakfasts under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), without further application.
``(C) Certification.--Subject to paragraph (6), under the
agreement, the local educational agency conducting eligibility
determinations for a school lunch program under this Act and a
school breakfast program under the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.) shall certify a child who is a member
of a household receiving assistance under the food stamp
program as eligible for free lunches under this Act and free
breakfasts under the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), without further application.
``(D) Applicability.--This paragraph applies to--
``(i) in the case of the school year beginning July
2006, a school district that had an enrollment of 25,000
students or more in the preceding school year;
``(ii) in the case of the school year beginning July
2007, a school district that had an enrollment of 10,000
students or more in the preceding school year; and
``(iii) in the case of the school year beginning July
2008 and each subsequent school year, each local
educational agency.''.
(b) Administration.--
(1) In general.--Section 9(b) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(b)) (as amended by
subsection (a)) is amended by inserting after paragraph (4) the
following:
``(5) Discretionary certification.--
``(A) In general.--Subject to paragraph (6), any local
educational agency may certify any child as eligible for free
lunches or breakfasts, without further application, by directly
communicating with the appropriate State or local agency to
obtain documentation of the status of the child as--
``(i) a member of a family that is receiving assistance
under the temporary assistance for needy families program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) that the Secretary determines
complies with standards established by the Secretary that
ensure that the standards under the State program are
comparable to or more restrictive than those in effect on
June 1, 1995;
``(ii) a homeless child or youth (defined as 1 of the
individuals described in section 725(2) of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a(2));
``(iii) served by the runaway and homeless youth grant
program established under the Runaway and Homeless Youth
Act (42 U.S.C. 5701 et seq.); or
``(iv) a migratory child (as defined in section 1309 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6399)).''.
``(B) Children of households receiving food stamps.--
Subject to paragraph (6), any local educational agency may
certify any child as eligible for free lunches or breakfasts,
without further application, by directly communicating with the
appropriate State or local agency to obtain documentation of
the status of the child as a member of a household that is
receiving food stamps under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.).
``(6) Use or disclosure of information.--
``(A) In general.--The use or disclosure of any information
obtained from an application for free or reduced price meals,
or from a State or local agency referred to in paragraph
(3)(F), (4), or (5), shall be limited to--
``(i) a person directly connected with the
administration or enforcement of this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (including a
regulation promulgated under either Act);
``(ii) a person directly connected with the
administration or enforcement of--
``(I) a Federal education program;
``(II) a State health or education program
administered by the State or local educational agency
(other than a program carried out under title XIX or
XXI of the Social Security Act (42 U.S.C. 1396 et seq.;
42 U.S.C. 1397aa et seq.)); or
``(III) a Federal, State, or local means-tested
nutrition program with eligibility standards comparable
to the school lunch program under this Act;
``(iii)(I) the Comptroller General of the United States
for audit and examination authorized by any other provision
of law; and
``(II) notwithstanding any other provision of law, a
Federal, State, or local law enforcement official for the
purpose of investigating an alleged violation of any
program covered by this paragraph or paragraph (3)(F), (4),
or (5);
``(iv) a person directly connected with the
administration of the State medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or
the State children's health insurance program under title
XXI of that Act (42 U.S.C. 1397aa et seq.) solely for the
purposes of--
``(I) identifying children eligible for benefits
under, and enrolling children in, those programs,
except that this subclause shall apply only to the
extent that the State and the local educational agency
or school food authority so elect; and
``(II) verifying the eligibility of children for
programs under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.); and
``(v) a third party contractor described in paragraph
(3)(G)(iv).
``(B) Limitation on information provided.--Information
provided under clause (ii) or (v) of subparagraph (A) shall be
limited to the income eligibility status of the child for whom
application for free or reduced price meal benefits is made or
for whom eligibility information is provided under paragraph
(3)(F), (4), or (5), unless the consent of the parent or
guardian of the child for whom application for benefits was
made is obtained.
``(C) Criminal penalty.--A person described in subparagraph
(A) who publishes, divulges, discloses, or makes known in any
manner, or to any extent not authorized by Federal law
(including a regulation), any information obtained under this
subsection shall be fined not more than $1,000 or imprisoned
not more than 1 year, or both.
``(D) Requirements for waiver of confidentiality.--A State
that elects to exercise the option described in subparagraph
(A)(iv)(I) shall ensure that any local educational agency or
school food authority acting in accordance with that option--
``(i) has a written agreement with 1 or more State or
local agencies administering health programs for children
under titles XIX and XXI of the Social Security Act (42
U.S.C. 1396 et seq. and 1397aa et seq.) that requires the
health agencies to use the information obtained under
subparagraph (A) to seek to enroll children in those health
programs; and
``(ii)(I) notifies each household, the information of
which shall be disclosed under subparagraph (A), that the
information disclosed will be used only to enroll children
in health programs referred to in subparagraph (A)(iv); and
``(II) provides each parent or guardian of a child in
the household with an opportunity to elect not to have the
information disclosed.
``(E) Use of disclosed information.--A person to which
information is disclosed under subparagraph (A)(iv)(I) shall
use or disclose the information only as necessary for the
purpose of enrolling children in health programs referred to in
subparagraph (A)(iv).
``(7) Free and reduced price policy statement.--
``(A) In general.--After the initial submission, a local
educational agency shall not be required to submit a free and
reduced price policy statement to a State educational agency
under this Act unless there is a substantive change in the free
and reduced price policy of the local educational agency.
``(B) Routine change.--A routine change in the policy of a
local educational agency (such as an annual adjustment of the
income eligibility guidelines for free and reduced price meals)
shall not be sufficient cause for requiring the local
educational agency to submit a policy statement.
``(8) Communications.--
``(A) In general.--Any communication with a household under
this subsection or subsection (d) shall be in an understandable
and uniform format and, to the maximum extent practicable, in a
language that parents and legal guardians can understand.
``(B) Electronic availability.--In addition to the
distribution of applications and descriptive material in paper
form as provided for in this paragraph, the applications and
material may be made available electronically via the
Internet.''.
(2) Agreement for direct certification and cooperation.--
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended
by adding at the end the following:
``(u) Agreement for Direct Certification and Cooperation.--
``(1) In general.--Each State agency shall enter into an
agreement with the State agency administering the school lunch
program established under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.).
``(2) Contents.--The agreement shall establish procedures that
ensure that--
``(A) any child receiving benefits under this Act shall be
certified as eligible for free lunches under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and
free breakfasts under the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), without further application; and
``(B) each State agency shall cooperate in carrying out
paragraphs (3)(F) and (4) of section 9(b) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)).''.
(c) Funding.--
(1) In general.--On October 1, 2005, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to assist States in
carrying out the amendments contained in this section and the
provisions of section 9(b)(3) of the Richard B. Russell National
School Lunch Act (as amended by section 105(a)) $9,000,000, to
remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be entitled to
receive, shall accept, and shall use to assist States in carrying
out the amendments made by this section and the provisions of
section 9(b)(3) of the Richard B. Russell National School Lunch Act
(as amended by section 105(a)) the funds transferred under
paragraph (1), without further appropriation.
(d) Conforming Amendments.--
(1) Effective July 1, 2008, paragraph (5) of section 9(b) of
the Richard B. Russell National School Lunch Act (42 U.S.C.
1758(b)) (as added by subsection (b)(1)) is amended--
(A) by striking subparagraph (B);
(B) by striking ``certification.--'' and all that follows
through ``In general.--'' and inserting ``certification.--'';
and
(C) by redesignating clauses (i) through (iv) as
subparagraphs (A) through (D), respectively, and indenting
appropriately.
(2) Section 9 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758) (as amended by subsection (a)(1)) is amended--
(A) in subsection (b)(12)(B), by striking ``paragraph
(2)(C)'' and inserting ``this subsection''; and
(B) in the second sentence of subsection (d)(1), by
striking ``subsection (b)(2)(C)'' and inserting ``subsection
(b)(3)(G)''.
(3) Section 11(e) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a(e)) is amended in the first sentence by
striking ``section 9(b)(3)'' and inserting ``section 9(b)(9)''.
SEC. 105. HOUSEHOLD APPLICATIONS.
(a) In General.--Section 9(b) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) (as amended by section
104(a)(2)(B)) is amended by striking paragraph (3) and inserting the
following:
``(3) Household applications.--
``(A) Definition of household application.--In this
paragraph, the term `household application' means an
application for a child of a household to receive free or
reduced price school lunches under this Act, or free or reduced
price school breakfasts under the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.), for which an eligibility
determination is made other than under paragraph (4) or (5).
``(B) Eligibility determination.--
``(i) In general.--An eligibility determination shall
be made on the basis of a complete household application
executed by an adult member of the household or in
accordance with guidance issued by the Secretary.
``(ii) Electronic signatures and applications.--A
household application may be executed using an electronic
signature if--
``(I) the application is submitted electronically;
and
``(II) the electronic application filing system
meets confidentiality standards established by the
Secretary.
``(C) Children in household.--
``(i) In general.--The household application shall
identify the names of each child in the household for whom
meal benefits are requested.
``(ii) Separate applications.--A State educational
agency or local educational agency may not request a
separate application for each child in the household that
attends schools under the same local educational agency.
``(D) Verification of sample.--
``(i) Definitions.--In this subparagraph:
``(I) Error prone application.--The term `error
prone application' means an approved household
application that--
``(aa) indicates monthly income that is within
$100, or an annual income that is within $1,200, of
the income eligibility limitation for free or
reduced price meals; or
``(bb) in lieu of the criteria established
under item (aa), meets criteria established by the
Secretary.
``(II) Non-response rate.--The term `non-response
rate' means (in accordance with guidelines established
by the Secretary) the percentage of approved household
applications for which verification information has not
been obtained by a local educational agency after
attempted verification under subparagraphs (F) and (G).
``(ii) Verification of sample.--Each school year, a
local educational agency shall verify eligibility of the
children in a sample of household applications approved for
the school year by the local educational agency, as
determined by the Secretary in accordance with this
subsection.
``(iii) Sample size.--Except as otherwise provided in
this paragraph, the sample for a local educational agency
for a school year shall equal the lesser of--
``(I) 3 percent of all applications approved by the
local educational agency for the school year, as of
October 1 of the school year, selected from error prone
applications; or
``(II) 3,000 error prone applications approved by
the local educational agency for the school year, as of
October 1 of the school year.
``(iv) Alternative sample size.--
``(I) In general.--If the conditions described in
subclause (IV) are met, the verification sample size
for a local educational agency shall be the sample size
described in subclause (II) or (III), as determined by
the local educational agency.
``(II) 3,000/3 percent option.--The sample size
described in this subclause shall be the lesser of
3,000, or 3 percent of, applications selected at random
from applications approved by the local educational
agency for the school year, as of October 1 of the
school year.
``(III) 1,000/1 percent plus option.--
``(aa) In general.--The sample size described
in this subclause shall be the sum of--
``(AA) the lesser of 1,000, or 1 percent
of, all applications approved by the local
educational agency for the school year, as of
October 1 of the school year, selected from
error prone applications; and
``(BB) the lesser of 500, or \1/2\ of 1
percent of, applications approved by the local
educational agency for the school year, as of
October 1 of the school year, that provide a
case number (in lieu of income information)
showing participation in a program described in
item (bb) selected from those approved
applications that provide a case number (in
lieu of income information) verifying the
participation.
``(bb) Programs.--The programs described in
this item are--
``(AA) the food stamp program established
under the Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.);
``(BB) the food distribution program on
Indian reservations established under section
4(b) of the Food Stamp Act of 1977 (7 U.S.C.
2013(b)); and
``(CC) a State program funded under the
program of block grants to States for temporary
assistance for needy families established under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) that the Secretary
determines complies with standards established
by the Secretary that ensure that the standards
under the State program are comparable to or
more restrictive than those in effect on June
1, 1995.
``(IV) Conditions.--The conditions referred to in
subclause (I) shall be met for a local educational
agency for a school year if--
``(aa) the nonresponse rate for the local
educational agency for the preceding school year is
less than 20 percent; or
``(bb) the local educational agency has more
than 20,000 children approved by application by the
local educational agency as eligible for free or
reduced price meals for the school year, as of
October 1 of the school year, and--
``(AA) the nonresponse rate for the
preceding school year is at least 10 percent
below the nonresponse rate for the second
preceding school year; or
``(BB) in the case of the school year
beginning July 2005, the local educational
agency attempts to verify all approved
household applications selected for
verification through use of public agency
records from at least 2 of the programs or
sources of information described in
subparagraph (F)(i).
``(v) Additional selected applications.--A sample for a
local educational agency for a school year under clauses
(iii) and (iv)(III)(AA) shall include the number of
additional randomly selected approved household
applications that are required to comply with the sample
size requirements in those clauses.
``(E) Preliminary review.--
``(i) Review for accuracy.--
``(I) In general.--Prior to conducting any other
verification activity for approved household
applications selected for verification, the local
educational agency shall ensure that the initial
eligibility determination for each approved household
application is reviewed for accuracy by an individual
other than the individual making the initial
eligibility determination, unless otherwise determined
by the Secretary.
``(II) Waiver.--The requirements of subclause (I)
shall be waived for a local educational agency if the
local educational agency is using a technology-based
solution that demonstrates a high level of accuracy, to
the satisfaction of the Secretary, in processing an
initial eligibility determination in accordance with
the income eligibility guidelines of the school lunch
program.
``(ii) Correct eligibility determination.--If the
review indicates that the initial eligibility determination
is correct, the local educational agency shall verify the
approved household application.
``(iii) Incorrect eligibility determination.--If the
review indicates that the initial eligibility determination
is incorrect, the local educational agency shall (as
determined by the Secretary)--
``(I) correct the eligibility status of the
household;
``(II) notify the household of the change;
``(III) in any case in which the review indicates
that the household is not eligible for free or reduced-
price meals, notify the household of the reason for the
ineligibility and that the household may reapply with
income documentation for free or reduced-price meals;
and
``(IV) in any case in which the review indicates
that the household is eligible for free or reduced-
price meals, verify the approved household application.
``(F) Direct verification.--
``(i) In general.--Subject to clauses (ii) and (iii),
to verify eligibility for free or reduced price meals for
approved household applications selected for verification,
the local educational agency may (in accordance with
criteria established by the Secretary) first obtain and use
income and program participation information from a public
agency administering--
``(I) the food stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
``(II) the food distribution program on Indian
reservations established under section 4(b) of the Food
Stamp Act of 1977 (7 U.S.C. 2013(b));
``(III) the temporary assistance for needy families
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.);
``(IV) the State medicaid program under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.); or
``(V) a similar income-tested program or other
source of information, as determined by the Secretary.
``(ii) Free meals.--Public agency records that may be
obtained and used under clause (i) to verify eligibility
for free meals for approved household applications selected
for verification shall include the most recent available
information (other than information reflecting program
participation or income before the 180-day period ending on
the date of application for free meals) that is relied on
to administer--
``(I) a program or source of information described
in clause (i) (other than clause (i)(IV)); or
``(II) the State plan for medical assistance under
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) in--
``(aa) a State in which the income eligibility
limit applied under section 1902(l)(2)(C) of that
Act (42 U.S.C. 1396a(l)(2)(C)) is not more than 133
percent of the official poverty line described in
section 1902(l)(2)(A) of that Act (42 U.S.C.
1396a(l)(2)(A)); or
``(bb) a State that otherwise identifies
households that have income that is not more than
133 percent of the official poverty line described
in section 1902(l)(2)(A) of that Act (42 U.S.C.
1396a(l)(2)(A)).
``(iii) Reduced price meals.--Public agency records
that may be obtained and used under clause (i) to verify
eligibility for reduced price meals for approved household
applications selected for verification shall include the
most recent available information (other than information
reflecting program participation or income before the 180-
day period ending on the date of application for reduced
price meals) that is relied on to administer--
``(I) a program or source of information described
in clause (i) (other than clause (i)(IV)); or
``(II) the State plan for medical assistance under
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) in--
``(aa) a State in which the income eligibility
limit applied under section 1902(l)(2)(C) of that
Act (42 U.S.C. 1396a(l)(2)(C)) is not more than 185
percent of the official poverty line described in
section 1902(l)(2)(A) of that Act (42 U.S.C.
1396a(l)(2)(A)); or
``(bb) a State that otherwise identifies
households that have income that is not more than
185 percent of the official poverty line described
in section 1902(l)(2)(A) of that Act (42 U.S.C.
1396a(l)(2)(A)).
``(iv) Evaluation.--Not later than 3 years after the
date of enactment of this subparagraph, the Secretary shall
complete an evaluation of--
``(I) the effectiveness of direct verification
carried out under this subparagraph in decreasing the
portion of the verification sample that must be
verified under subparagraph (G) while ensuring that
adequate verification information is obtained; and
``(II) the feasibility of direct verification by
State agencies and local educational agencies.
``(v) Expanded use of direct verification.--If the
Secretary determines that direct verification significantly
decreases the portion of the verification sample that must
be verified under subparagraph (G), while ensuring that
adequate verification information is obtained, and can be
conducted by most State agencies and local educational
agencies, the Secretary may require a State agency or local
educational agency to implement direct verification through
1 or more of the programs described in clause (i), as
determined by the Secretary, unless the State agency or
local educational agency demonstrates (under criteria
established by the Secretary) that the State agency or
local educational agency lacks the capacity to conduct, or
is unable to implement, direct verification.
``(G) Household verification.--
``(i) In general.--If an approved household application
is not verified through the use of public agency records, a
local educational agency shall provide to the household
written notice that--
``(I) the approved household application has been
selected for verification; and
``(II) the household is required to submit
verification information to confirm eligibility for
free or reduced price meals.
``(ii) Phone number.--The written notice in clause (i)
shall include a toll-free phone number that parents and
legal guardians in households selected for verification can
call for assistance with the verification process.
``(iii) Followup activities.--If a household does not
respond to a verification request, a local educational
agency shall make at least 1 attempt to obtain the
necessary verification from the household in accordance
with guidelines and regulations promulgated by the
Secretary.
``(iv) Contract authority for school food
authorities.--A local educational agency may contract
(under standards established by the Secretary) with a third
party to assist the local educational agency in carrying
out clause (iii).
``(H) Verification deadline.--
``(i) General deadline.--
``(I) In general.--Subject to subclause (II), not
later than November 15 of each school year, a local
educational agency shall complete the verification
activities required for the school year (including
followup activities).
``(II) Extension.--Under criteria established by
the Secretary, a State may extend the deadline
established under subclause (I) for a school year for a
local educational agency to December 15 of the school
year.
``(ii) Eligibility changes.--Based on the verification
activities, the local educational agency shall make
appropriate modifications to the eligibility determinations
made for household applications in accordance with criteria
established by the Secretary.
``(I) Local conditions.--In the case of a natural disaster,
civil disorder, strike, or other local condition (as determined
by the Secretary), the Secretary may substitute alternatives
for--
``(i) the sample size and sample selection criteria
established under subparagraph (D); and
``(ii) the verification deadline established under
subparagraph (H).
``(J) Individual review.--In accordance with criteria
established by the Secretary, the local educational agency may,
on individual review--
``(i) decline to verify no more than 5 percent of
approved household applications selected under subparagraph
(D); and
``(ii) replace the approved household applications with
other approved household applications to be verified.
``(K) Feasibility study.--
``(i) In general.--The Secretary shall conduct a study
of the feasibility of using computer technology (including
data mining) to reduce--
``(I) overcertification errors in the school lunch
program under this Act;
``(II) waste, fraud, and abuse in connection with
this paragraph; and
``(III) errors, waste, fraud, and abuse in other
nutrition programs, as determined to be appropriate by
the Secretary.
``(ii) Report.--Not later than 180 days 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 describing--
``(I) the results of the feasibility study
conducted under this subsection;
``(II) how a computer system using technology
described in clause (i) could be implemented;
``(III) a plan for implementation; and
``(IV) proposed legislation, if necessary, to
implement the system.''.
(b) Conforming Amendments.--Section 1902(a)(7) of the Social
Security Act (42 U.S.C. 1396a(a)(7)) is amended--
(1) by striking ``connected with the'' and inserting
``connected with--
``(A) the'';
(2) by adding ``and'' after the semicolon; and
(3) by adding at the end the following:
``(B) at State option, the exchange of information
necessary to verify the certification of eligibility of
children for free or reduced price breakfasts under the Child
Nutrition Act of 1966 and free or reduced price lunches under
the Richard B. Russell National School Lunch Act, in accordance
with section 9(b) of that Act, using data standards and formats
established by the State agency;''.
(c) Evaluation Funding.--
(1) In general.--On October 1, 2005, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to conduct the
evaluation required by section 9(b)(3)(F)(iv) of the Richard B.
Russell National School Lunch Act (as amended by subsection (a))
$2,000,000, to remain available until expended.
(2) Receipt and acceptance.--The Secretary of Agriculture shall
be entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1), without
further appropriation.
SEC. 106. DURATION OF ELIGIBILITY FOR FREE OR REDUCED PRICE MEALS.
Paragraph (9) of section 9(b) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) (as redesignated by section
104(a)(1)) is amended--
(1) by striking ``(9) Any'' and inserting the following:
``(9) Eligibility for free and reduced price lunches.--
``(A) Free lunches.--Any'';
(2) by striking ``Any'' in the second sentence and inserting
the following:
``(B) Reduced price lunches.--
``(i) In general.--Any'';
(3) by striking ``The'' in the last sentence and inserting the
following:
``(ii) Maximum price.--The''; and
(4) by adding at the end the following:
``(C) Duration.--Except as otherwise specified in paragraph
(3)(E), (3)(H)(ii), and section 11(a), eligibility for free or
reduced price meals for any school year shall remain in
effect--
``(i) beginning on the date of eligibility approval for
the current school year; and
``(ii) ending on a date during the subsequent school
year determined by the Secretary.''.
SEC. 107. RUNAWAY, HOMELESS, AND MIGRANT YOUTH.
(a) Categorical Eligibility for Free Lunches and Breakfasts.--
Section 9(b)(12)(A) of the Richard B. Russell National School Lunch Act
(as redesignated by section 104(a)(1) of this Act) is amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(iv) a homeless child or youth (defined as 1 of the
individuals described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2));
``(v) served by the runaway and homeless youth grant
program established under the Runaway and Homeless Youth Act
(42 U.S.C. 5701 et seq.); or
``(vi) a migratory child (as defined in section 1309 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6399)).''.
(b) Documentation.--Section 9(d)(2) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
(1) in subparagraph (B), by striking ``or'';
(2) in subparagraph (C), by striking the period at the end and
inserting a semicolon; and
(3) by inserting after subparagraph (C) the following:
``(D) documentation has been provided to the appropriate local
educational agency showing that the child meets the criteria
specified in clauses (iv) or (v) of subsection (b)(12)(A); or
``(E) documentation has been provided to the appropriate local
educational agency showing the status of the child as a migratory
child (as defined in section 1309 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6399)).''.
SEC. 108. CERTIFICATION BY LOCAL EDUCATIONAL AGENCIES.
(a) Certification by Local Educational Agency.--Section 9 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1758) is
amended--
(1) in the second sentence of subsection (b)(11) (as
redesignated by section 104(a)(1)), by striking ``Local school
authorities'' and inserting ``Local educational agencies''; and
(2) in subsection (d)(2)--
(A) by striking ``local school food authority'' each place
it appears and inserting ``local educational agency''; and
(B) in subparagraph (A), by striking ``such authority'' and
inserting ``the local educational agency''.
(b) Definition of Local Educational Agency.--Section 12(d) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)) is
amended--
(1) by redesignating paragraph (8) as paragraph (3) and moving
the paragraph to appear after paragraph (2);
(2) by redesignating paragraphs (3) through (7) (as those
paragraphs existed before the amendment made by paragraph (1)) as
paragraphs (5) through (9), respectively; and
(3) by inserting after paragraph (3) (as redesignated by
paragraph (1)) the following:
``(4) Local educational agency.--
``(A) In general.--The term `local educational agency' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
``(B) Inclusion.--The term `local educational agency'
includes, in the case of a private nonprofit school, an
appropriate entity determined by the Secretary.''.
(c) School Breakfast Program.--Section 4(b)(1)(E)) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(E)) is amended by striking
``school food authority'' each place it appears and inserting ``local
educational agency''.
SEC. 109. EXCLUSION OF MILITARY HOUSING ALLOWANCES.
Section 9(b) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(b)) (as amended by section 104(a)(1)) is amended in
paragraph (13) by striking ``For each of fiscal years 2002 and 2003 and
through June 30, 2004, the'' and inserting ``The''.
SEC. 110. WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR NUTRIENT
ANALYSIS.
Section 9(f)(5) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(f)(5)) is amended by striking ``September 30, 2003''
and inserting ``September 30, 2009''.
SEC. 111. FOOD SAFETY.
Section 9(h) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(h)) is amended--
(1) in the subsection heading, by striking ``Inspections'';
(2) in paragraph (1)--
(A) by striking ``Except as provided in paragraph (2), a''
and inserting ``A'';
(B) by striking ``shall, at least once'' and inserting:
``shall--
``(A) at least twice'';
(C) by striking the period at the end and inserting a
semicolon; and
(D) by adding at the end the following:
``(B) post in a publicly visible location a report on the
most recent inspection conducted under subparagraph (A); and
``(C) on request, provide a copy of the report to a member
of the public.''; and
(3) by striking paragraph (2) and inserting the following:
``(2) State and local government inspections.--Nothing in
paragraph (1) prevents any State or local government from adopting
or enforcing any requirement for more frequent food safety
inspections of schools.
``(3) Audits and reports by states.--For each of fiscal years
2006 through 2009, each State shall annually--
``(A) audit food safety inspections of schools conducted
under paragraphs (1) and (2); and
``(B) submit to the Secretary a report of the results of
the audit.
``(4) Audit by the secretary.--For each of fiscal years 2006
through 2009, the Secretary shall annually audit State reports of
food safety inspections of schools submitted under paragraph (3).
``(5) School food safety program.--Each school food authority
shall implement a school food safety program, in the preparation
and service of each meal served to children, that complies with any
hazard analysis and critical control point system established by
the Secretary.''.
SEC. 112. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9(j)(2)(A) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758(j)(2)(A)) is amended by striking ``2007'' and
inserting ``2009''.
SEC. 113. SPECIAL ASSISTANCE.
Section 11(a)(1) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1759a(a)(1)) is amended by inserting ``or school
district'' after ``school'' each place it appears in subparagraphs (C)
through (E) (other than as part of ``school year'', ``school years'',
``school lunch'', ``school breakfast'', and ``4-school-year period'').
SEC. 114. FOOD AND NUTRITION PROJECTS INTEGRATED WITH ELEMENTARY
SCHOOL CURRICULA.
Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) is amended by striking subsection (m).
SEC. 115. PROCUREMENT TRAINING.
Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) (as amended by section 114) is amended by inserting after
subsection (l) the following:
``(m) Procurement Training.--
``(1) In general.--Subject to the availability of funds made
available under paragraph (4), the Secretary shall provide
technical assistance and training to States, State agencies,
schools, and school food authorities in the procurement of goods
and services 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)).
``(2) Buy american training.--Activities carried out under
paragraph (1) shall include technical assistance and training to
ensure compliance with subsection (n).
``(3) Procuring safe foods.--Activities carried out under
paragraph (1) shall include technical assistance and training on
procuring safe foods, including the use of model specifications for
procuring safe foods.
``(4) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $1,000,000 for each of
fiscal years 2005 through 2009, to remain available until
expended.''.
SEC. 116. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Seamless Summer Option.--Section 13(a) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1761(a)) is amended by
adding at the end the following:
``(8) Seamless summer option.--Except as otherwise determined
by the Secretary, a service institution that is a public or private
nonprofit school food authority may provide summer or school
vacation food service in accordance with applicable provisions of
law governing the school lunch program established under this Act
or the school breakfast program established under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).''.
(b) Seamless Summer Reimbursements.--Section 13(b)(1) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(b)(1)) is
amended by adding at the end the following:
``(D) Seamless summer reimbursements.--A service
institution described in subsection (a)(8) shall be reimbursed
for meals and meal supplements in accordance with the
applicable provisions under this Act (other than subparagraphs
(A), (B), and (C) of this paragraph and paragraph (4)) and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), as
determined by the Secretary.''.
(c) Summer Food Service Eligibility Criteria.--Section 13(a) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as
amended by subsection (a)) is amended by adding at the end the
following--
``(9) Exemption.--
``(A) In general.--For each of calendar years 2005 and 2006
in rural areas of the State of Pennsylvania (as determined by
the Secretary), the threshold for determining `areas in which
poor economic conditions exist' under paragraph (1)(C) shall be
40 percent.
``(B) Evaluation.--
``(i) In general.--The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
evaluate the impact of the eligibility criteria described
in subparagraph (A) as compared to the eligibility criteria
described in paragraph (1)(C).
``(ii) Impact.--The evaluation shall assess the impact
of the threshold in subparagraph (A) on--
``(I) the number of sponsors offering meals through
the summer food service program;
``(II) the number of sites offering meals through
the summer food service program;
``(III) the geographic location of the sites;
``(IV) services provided to eligible children; and
``(V) other factors determined by the Secretary.
``(iii) Report.--Not later than January 1, 2008, 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
under this subparagraph.
``(iv) Funding.--
``(I) In general.--On January 1, 2005, out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary of Agriculture to carry out this subparagraph
$400,000, to remain available until expended.
``(II) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this subparagraph the funds transferred under
subclause (I), without further appropriation.''.
(d) Summer Food Service Rural Transportation.--Section 13(a) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as
amended by subsection (c)) is amended by adding at the end the
following:
``(10) Summer food service rural transportation.--
``(A) In general.--The Secretary shall provide grants,
through not more than 5 eligible State agencies selected by the
Secretary, to not more than 60 eligible service institutions
selected by the Secretary to increase participation at
congregate feeding sites in the summer food service program for
children authorized by this section through innovative
approaches to limited transportation in rural areas.
``(B) Eligibility.--To be eligible to receive a grant under
this paragraph--
``(i) a State agency shall submit an application to the
Secretary, in such manner as the Secretary shall establish,
and meet criteria established by the Secretary; and
``(ii) a service institution shall agree to the terms
and conditions of the grant, as established by the
Secretary.
``(C) Duration.--A service institution that receives a
grant under this paragraph may use the grant funds during the
3-fiscal year period beginning in fiscal year 2005.
``(D) Reports.--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--
``(i) not later than January 1, 2007, an interim report
that describes--
``(I) the use of funds made available under this
paragraph; and
``(II) any progress made by using funds from each
grant provided under this paragraph; and
``(ii) not later than January 1, 2008, a final report
that describes--
``(I) the use of funds made available under this
paragraph;
``(II) any progress made by using funds from each
grant provided under this paragraph;
``(III) the impact of this paragraph on
participation in the summer food service program for
children authorized by this section; and
``(IV) any recommendations by the Secretary
concerning the activities of the service institutions
receiving grants under this paragraph.
``(E) Funding.--
``(i) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out this
paragraph--
``(I) on October 1, 2005, $2,000,000; and
``(II) on October 1, 2006, and October 1, 2007,
$1,000,000.
``(ii) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry
out this paragraph the funds transferred under clause (i),
without further appropriation.
``(iii) Availability of funds.--Funds transferred under
clause (i) shall remain available until expended.
``(iv) Reallocation.--The Secretary may reallocate any
amounts made available to carry out this paragraph that are
not obligated or expended, as determined by the
Secretary.''.
(e) Reauthorization.--Section 13(q) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1761(q)) is amended by striking
``June 30, 2004'' and inserting ``September 30, 2009''.
(f) Simplified Summer Food Programs.--
(1) Definition of eligible state.--Section 18(f) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1769(f)) is amended
by striking paragraph (1) and inserting the following:
``(1) Definition of eligible state.--In this subsection, the
term `eligible State' means--
``(A) a State participating in the program under this
subsection as of May 1, 2004; and
``(B) a State in which (based on data available in April
2004)--
``(i) the percentage obtained by dividing--
``(I) the sum of--
``(aa) the average daily number of children
attending the summer food service program in the
State in July 2003; and
``(bb) the average daily number of children
receiving free or reduced price meals under the
school lunch program in the State in July 2003; by
``(II) the average daily number of children
receiving free or reduced price meals under the school
lunch program in the State in March 2003; is less than
``(ii) 66.67 percent of the percentage obtained by
dividing--
``(I) the sum of--
``(aa) the average daily number of children
attending the summer food service program in all
States in July 2003; and
``(bb) the average daily number of children
receiving free or reduced price meals under the
school lunch program in all States in July 2003; by
``(II) the average daily number of children
receiving free or reduced price meals under the school
lunch program in all States in March 2003.''.
(2) Duration.--Section 18(f)(2) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769(f)(2)) is amended by
striking ``During the period beginning October 1, 2000, and ending
June 30, 2004, the'' and inserting ``The''.
(3) Private nonprofit organizations.--Section 18(f)(3) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f)(3))
is amended in subparagraphs (A) and (B) by striking ``(other than a
service institution described in section 13(a)(7))'' both places it
appears.
(4) Report.--Section 18(f) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769(f)) is amended by striking
paragraph (6) and inserting the following:
``(6) Report.--Not later than April 30, 2007, 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 that includes--
``(A) the evaluations completed by the Secretary under
paragraph (5); and
``(B) any recommendations of the Secretary concerning the
programs.''.
(5) Conforming amendments.--Section 18(f) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769(f)) is amended--
(A) by striking the subsection heading and inserting the
following:
``(f) Simplified Summer Food Programs.--'';
(B) in paragraph (2)--
(i) by striking the paragraph heading and inserting the
following:
``(2) Programs.--''; and
(ii) by striking ``pilot project'' and inserting
``program'';
(C) in subparagraph (A) and (B) of paragraph (3), by
striking ``pilot project'' both places it appears and inserting
``program''; and
(D) in paragraph (5)--
(i) in the paragraph heading by striking ``pilot
projects'' and inserting ``programs''; and
(ii) by striking ``pilot project'' each place it
appears and inserting ``program''.
SEC. 117. COMMODITY DISTRIBUTION PROGRAM.
Section 14(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1762a(a)) is amended by striking ``, during the period
beginning July 1, 1974, and ending June 30, 2004,''.
SEC. 118. NOTICE OF IRRADIATED FOOD PRODUCTS.
Section 14 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1762a) is amended by adding at the end the following:
``(h) Notice of Irradiated Food Products.--
``(1) In general.--The Secretary shall develop a policy and
establish procedures for the purchase and distribution of
irradiated food products in school meals programs under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(2) Minimum requirements.--The policy and procedures shall
ensure, at a minimum, that--
``(A) irradiated food products are made available only at
the request of States and school food authorities;
``(B) reimbursements to schools for irradiated food
products are equal to reimbursements to schools for food
products that are not irradiated;
``(C) States and school food authorities are provided
factual information on the science and evidence regarding
irradiation technology, including--
``(i) notice that irradiation is not a substitute for
safe food handling techniques; and
``(ii) any other similar information determined by the
Secretary to be necessary to promote food safety in school
meals programs;
``(D) States and school food authorities are provided model
procedures for providing to school food authorities, parents,
and students--
``(i) factual information on the science and evidence
regarding irradiation technology; and
``(ii) any other similar information determined by the
Secretary to be necessary to promote food safety in school
meals;
``(E) irradiated food products distributed to the Federal
school meals program under this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.) are labeled with a symbol or
other printed notice that--
``(i) indicates that the product was irradiated; and
``(ii) is prominently displayed in a clear and
understandable format on the container;
``(F) irradiated food products are not commingled in
containers with food products that are not irradiated; and
``(G) schools that offer irradiated food products are
encouraged to offer alternatives to irradiated food products as
part of the meal plan used by the schools.''.
SEC. 119. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Definition of Institution.--
(1) In general.--Section 17(a)(2)(B)(i) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(a)(2)(B)(i)) is
amended by striking ``during'' and all that follows through
``2004,''.
(2) Conforming amendment.--Section 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766) is amended by striking
subsection (p).
(b) Duration of Determination as Tier I Family or Group Day Care
Home.--Section 17(f)(3)(E)(iii) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f)(3)(E)(iii)) is amended by striking
``3 years'' and inserting ``5 years''.
(c) Audits.--Section 17(i) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``(i) The''
and inserting the following:
``(i) Audits.--
``(1) Disregards.--
``(A) In general.--Subject to subparagraph (B), in
conducting management evaluations, reviews, or audits under
this section, the Secretary or a State agency may disregard any
overpayment to an institution for a fiscal year if the total
overpayment to the institution for the fiscal year does not
exceed an amount that is consistent with the disregards allowed
in other programs under this Act and recognizes the cost of
collecting small claims, as determined by the Secretary.
``(B) Criminal or fraud violations.--In carrying out this
paragraph, the Secretary and a State agency shall not disregard
any overpayment for which there is evidence of a violation of a
criminal law or civil fraud law.
``(2) Funding.--The''.
(d) Duration of Agreements.--Section 17(j) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(j)) is amended--
(1) by striking ``(j) The'' and inserting the following:
``(j) Agreements.--
``(1) In general.--The''; and
(2) by adding at the end the following:
``(2) Duration.--An agreement under paragraph (1) shall remain
in effect until terminated by either party to the agreement.''.
(e) Rural Area Eligibility Determination for Day Care Homes.--
Section 17 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766) (as amended by subsection (a)(2)) is amended by inserting
after subsection (o) the following:
``(p) Rural Area Eligibility Determination for Day Care Homes.--
``(1) Definition of selected tier i family or group day care
home.--In this subsection, the term `selected tier I family or
group day care home' means a family or group day home that meets
the definition of tier I family or group day care home under
subclause (I) of subsection (f)(3)(A)(ii) except that items (aa)
and (bb) of that subclause shall be applied by substituting `40
percent' for `50 percent'.
``(2) Eligibility.--For each of fiscal years 2006 and 2007, in
rural areas of the State of Nebraska (as determined by the
Secretary), the Secretary shall provide reimbursement to selected
tier I family or group day care homes (as defined in paragraph (1))
under subsection (f)(3) in the same manner as tier I family or
group day care homes (as defined in subsection (f)(3)(A)(ii)(I)).
``(3) Evaluation.--
``(A) In general.--The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall evaluate
the impact of the eligibility criteria described in paragraph
(2) as compared to the eligibility criteria described in
subsection (f)(3)(A)(ii)(I).
``(B) Impact.--The evaluation shall assess the impact of
the change in eligibility requirements on--
``(i) the number of family or group day care homes
offering meals under this section;
``(ii) the number of family or group day care homes
offering meals under this section that are defined as tier
I family or group day care homes as a result of paragraph
(1) that otherwise would be defined as tier II family or
group day care homes under subsection (f)(3)(A)(iii);
``(iii) the geographic location of the family or group
day care homes;
``(iv) services provided to eligible children; and
``(v) other factors determined by the Secretary.
``(C) Report.--Not later than March 31, 2008, 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 under this subsection.
``(D) Funding.--
``(i) In general.--On October 1, 2005, out of any funds
in the Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary of
Agriculture to carry out this paragraph $400,000, to remain
available until expended.
``(ii) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry
out this paragraph the funds transferred under clause (i),
without further appropriation.''.
(f) Management Support.--Section 17(q)(3) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(q)(3)) is amended by striking
``1999 through 2003'' and inserting ``2005 and 2006''.
(g) Age Limits.--Section 17(t)(5)(A)(i) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(t)(5)(A)(i) is amended--
(1) in subclause (I)--
(A) by striking ``12'' and inserting ``18''; and
(B) by inserting ``or'' after the semicolon;
(2) by striking subclause (II); and
(3) by redesignating subclause (III) as subclause (II).
(h) Technical Amendments.--Section 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766) is amended--
(1) in subsection (a)(6)(B), by inserting ``and adult'' after
``child''; and
(2) in subsection (t)(3), by striking ``subsection (a)(1)'' and
inserting ``subsection (a)(5)''.
(i) Paperwork Reduction.--The Secretary of Agriculture, in
conjunction with States and participating institutions, shall examine
the feasibility of reducing paperwork resulting from regulations and
recordkeeping requirements for State agencies, family child care homes,
child care centers, and sponsoring organizations participating in the
child and adult care food program established under section 17 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766).
(j) Early Child Nutrition Education.--
(1) In general.--Subject to the availability of funds made
available under paragraph (6), for a period of 4 successive years,
the Secretary of Agriculture shall award to 1 or more entities with
expertise in designing and implementing health education programs
for limited-English-proficient individuals 1 or more grants to
enhance obesity prevention activities for child care centers and
sponsoring organizations providing services to limited-English-
proficient individuals through the child and adult care food
program under section 17 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766) in each of 4 States selected by the
Secretary in accordance with paragraph (2).
(2) States.--The Secretary shall provide grants under this
subsection in States that have experienced a growth in the limited-
English-proficient population of the States of at least 100 percent
between the years 1990 and 2000, as measured by the census.
(3) Required activities.--Activities carried out under
paragraph (1) shall include--
(A) developing an interactive and comprehensive tool kit
for use by lay health educators and training activities;
(B) conducting training and providing ongoing technical
assistance for lay health educators; and
(C) establishing collaborations with child care centers and
sponsoring organizations participating in the child and adult
care food program under section 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766) to--
(i) identify limited-English-proficient children and
families; and
(ii) enhance the capacity of the child care centers and
sponsoring organizations to use appropriate obesity
prevention strategies.
(4) Evaluation.--Each grant recipient shall identify an
institution of higher education to conduct an independent
evaluation of the effectiveness of the grant.
(5) 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 and the
Committee on Health, Education, Labor, and Pensions, of the Senate
a report that includes--
(A) the evaluation completed by the institution of higher
education under paragraph (4);
(B) the effectiveness of lay health educators in reducing
childhood obesity; and
(C) any recommendations of the Secretary concerning the
grants.
(6) Authorization of appropriations.--There are authorized to
be appropriated to carry out this subsection $250,000 for each of
fiscal years 2005 through 2009.
SEC. 120. FRESH FRUIT AND VEGETABLE PROGRAM.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended by striking subsection (g) and inserting the
following:
``(g) Fresh Fruit and Vegetable Program.--
``(1) In general.--For the school year beginning July 2004 and
each subsequent school year, the Secretary shall carry out a
program to make free fresh fruits and vegetables available, to the
maximum extent practicable, to--
``(A) 25 elementary or secondary schools in each of the 4
States authorized to participate in the program under this
subsection on May 1, 2004;
``(B) 25 elementary or secondary schools (as selected by
the Secretary in accordance with paragraph (3)) in each of 4
States (including a State for which funds were allocated under
the program described in paragraph (3)(B)(ii)) that are not
participating in the program under this subsection on May 1,
2004; and
``(C) 25 elementary or secondary schools operated on 3
Indian reservations (including the reservation authorized to
participate in the program under this subsection on May 1,
2004), as selected by the Secretary.
``(2) Program.--A school participating in the program shall
make free fresh fruits and vegetables available to students
throughout the school day in 1 or more areas designated by the
school.
``(3) Selection of schools.--
``(A) In general.--Except as provided in subparagraph (B),
in selecting additional schools to participate in the program
under paragraph (1)(B), the Secretary shall--
``(i) to the maximum extent practicable, ensure that
the majority of schools selected are those in which not
less than 50 percent of students are eligible for free or
reduced price meals under this Act;
``(ii) solicit applications from interested schools
that include--
``(I) information pertaining to the percentage of
students enrolled in the school submitting the
application who are eligible for free or reduced price
school lunches under this Act;
``(II) a certification of support for participation
in the program signed by the school food manager, the
school principal, and the district superintendent (or
equivalent positions, as determined by the school); and
``(III) such other information as may be requested
by the Secretary;
``(iii) for each application received, determine
whether the application is from a school in which not less
than 50 percent of students are eligible for free or
reduced price meals under this Act; and
``(iv) give priority to schools that submit a plan for
implementation of the program that includes a partnership
with 1 or more entities that provide non-Federal resources
(including entities representing the fruit and vegetable
industry) for--
``(I) the acquisition, handling, promotion, or
distribution of fresh and dried fruits and fresh
vegetables; or
``(II) other support that contributes to the
purposes of the program.
``(B) Nonapplicability to existing participants.--
Subparagraph (A) shall not apply to a school, State, or Indian
reservation authorized--
``(i) to participate in the program on May 1, 2004; or
``(ii) to receive funding for free fruits and
vegetables under funds provided for public health
improvement under the heading `disease control, research,
and training' under the heading `Centers for Disease
Control and Prevention' in title II of the Departments of
Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2004 (Division E of
Public Law 108-199; 118 Stat. 238).
``(4) Notice of availability.--To be eligible to participate in
the program under this subsection, a school shall widely publicize
within the school the availability of free fresh fruits and
vegetables under the program.
``(5) Reports.--
``(A) Interim reports.--Not later than September 30 of each
of fiscal years 2005 through 2008, the Secretary, acting
through the Administrator of the Food and Nutrition Service,
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 an interim report that
describes the activities carried out under this subsection
during the fiscal year covered by the report.
``(B) Final report.--Not later than December 31, 2008, the
Secretary, acting through the Administrator of the Food and
Nutrition Service, 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 final report that describes the results of the program under
this subsection.
``(6) Funding.--
``(A) Existing funds.--The Secretary shall use to carry out
this subsection any funds that remain under this subsection on
the day before the date of enactment of this subparagraph.
``(B) Mandatory funds.--
``(i) In general.--On October 1, 2004, and on each
October 1 thereafter, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out this
subsection $9,000,000, to remain available until expended.
``(ii) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry
out this subsection the funds made available under this
subparagraph, without further appropriation.
``(C) Authorization of appropriations.--In addition to any
amounts made available under subparagraphs (A) and (B), there
are authorized to be appropriated such sums as are necessary to
expand the program carried out under this subsection.
``(D) Reallocation.--The Secretary may reallocate any
amounts made available to carry out this subsection that are
not obligated or expended, as determined by the Secretary.''.
SEC. 121. SUMMER FOOD SERVICE RESIDENTIAL CAMP ELIGIBILITY.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended by adding at the end the following:
``(h) Summer Food Service Residential Camp Eligibility.--
``(1) In general.--During the month after the date of enactment
of this subsection through September, 2004, and the months of May
through September, 2005, the Secretary shall modify eligibility
criteria, at not more than 1 private nonprofit residential camp in
each of not more than 2 States, as determined by the Secretary, for
the purpose of identifying and evaluating alternative methods of
determining the eligibility of residential private nonprofit camps
to participate in the summer food service program for children
established under section 13.
``(2) Eligibility.--To be eligible for the criteria modified
under paragraph (1), a residential camp--
``(A) shall be a service institution (as defined in section
13(a)(1));
``(B) may not charge a fee to any child in residence at the
camp; and
``(C) shall serve children who reside in an area in which
poor economic conditions exist (as defined in section
13(a)(1)).
``(3) Payments.--
``(A) In general.--Under this subsection, the Secretary
shall provide reimbursement for meals served to all children at
a residential camp at the payment rates specified in section
13(b)(1).
``(B) Reimbursable meals.--A residential camp selected by
the Secretary may receive reimbursement for not more than 3
meals, or 2 meals and 1 supplement, during each day of
operation.
``(4) Evaluation.--
``(A) Information from residential camps.--Not later than
December 31, 2005, a residential camp selected under paragraph
(1) shall report to the Secretary such information as is
required by the Secretary concerning the requirements of this
subsection.
``(B) Report to congress.--Not later than March 31, 2006,
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
that evaluates the effect of this subsection on program
participation and other factors, as determined by the
Secretary.''.
SEC. 122. ACCESS TO LOCAL FOODS AND SCHOOL GARDENS.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) (as amended by section 121) is amended by adding at the
end the following:
``(i) Access to Local Foods and School Gardens.--
``(1) In general.--The Secretary may provide assistance,
through competitive matching grants and technical assistance, to
schools and nonprofit entities for projects that--
``(A) improve access to local foods in schools and
institutions participating in programs under this Act and
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
through farm-to-cafeteria activities, including school gardens,
that may include the acquisition of food and appropriate
equipment and the provision of training and education;
``(B) are, at a minimum, designed to--
``(i) procure local foods from small- and medium-sized
farms for school meals; and
``(ii) support school garden programs;
``(C) support nutrition education activities or curriculum
planning that incorporates the participation of school children
in farm-based agricultural education activities, that may
include school gardens;
``(D) develop a sustained commitment to farm-to-cafeteria
projects in the community by linking schools, State departments
of agriculture, agricultural producers, parents, and other
community stakeholders;
``(E) require $100,000 or less in Federal contributions;
``(F) require a Federal share of costs not to exceed 75
percent;
``(G) provide matching support in the form of cash or in-
kind contributions (including facilities, equipment, or
services provided by State and local governments and private
sources); and
``(H) cooperate in an evaluation carried out by the
Secretary.
``(2) Authorization of appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
subsection for each of fiscal years 2004 through 2009.''.
SEC. 123. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) (as amended by section 122) is amended by adding at the
end the following:
``(j) Year-Round Services for Eligible Entities.--
``(1) In general.--A service institution that is described in
section 13(a)(6) (excluding a public school), or a private
nonprofit organization described in section 13(a)(7), and that is
located in the State of California may be reimbursed--
``(A) for up to 2 meals during each day of operation
served--
``(i) during the months of May through September;
``(ii) in the case of a service institution that
operates a food service program for children on school
vacation, at anytime under a continuous school calendar;
and
``(iii) in the case of a service institution that
provides meal service at a nonschool site to children who
are not in school for a period during the school year due
to a natural disaster, building repair, court order, or
similar case, at anytime during such a period; and
``(B) for a snack served during each day of operation after
school hours, weekends, and school holidays during the regular
school calendar.
``(2) Payments.--The service institution shall be reimbursed
consistent with section 13(b)(1).
``(3) Administration.--To receive reimbursement under this
subsection, a service institution shall comply with section 13,
other than subsections (b)(2) and (c)(1) of that section.
``(4) Evaluation.--Not later than September 30, 2007, the State
agency shall submit to the Secretary a report on the effect of this
subsection on participation in the summer food service program for
children established under section 13.
``(5) Funding.--The Secretary shall provide to the State of
California such sums as are necessary to carry out this subsection
for each of fiscal years 2005 through 2009.''.
SEC. 124. FREE LUNCH AND BREAKFAST ELIGIBILITY.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) (as amended by section 123) is amended by adding at the
end the following:
``(k) Free Lunch and Breakfast Eligibility.--
``(1) In general.--Subject to the availability of funds under
paragraph (4), the Secretary shall expand the service of free
lunches and breakfasts provided at schools 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)
in all or part of 5 States selected by the Secretary (of which at
least 1 shall be a largely rural State with a significant Native
American population).
``(2) Income eligibility.--The income guidelines for
determining eligibility for free lunches or breakfasts under this
subsection shall be 185 percent of the applicable family size
income levels contained in the nonfarm income poverty guidelines
prescribed by the Office of Management and Budget, as adjusted
annually in accordance with section 9(b)(1)(B).
``(3) Evaluation.--
``(A) In general.--Not later than 3 years after the
implementation of this subsection, the Secretary shall conduct
an evaluation to assess the impact of the changed income
eligibility guidelines by comparing the school food authorities
operating under this subsection to school food authorities not
operating under this subsection.
``(B) Impact assessment.--
``(i) Children.--The evaluation shall assess the impact
of this subsection separately on--
``(I) children in households with incomes less than
130 percent of the applicable family income levels
contained in the nonfarm poverty income guidelines
prescribed by the Office of Management and Budget, as
adjusted annually in accordance with section
9(b)(1)(B); and
``(II) children in households with incomes greater
than 130 percent and not greater than 185 percent of
the applicable family income levels contained in the
nonfarm poverty income guidelines prescribed by the
Office of Management and Budget, as adjusted annually
in accordance with section 9(b)(1)(B).
``(ii) Factors.--The evaluation shall assess the impact
of this subsection on--
``(I) certification and participation rates in the
school lunch and breakfast programs;
``(II) rates of lunch- and breakfast-skipping;
``(III) academic achievement;
``(IV) the allocation of funds authorized in title
I of the Elementary and Secondary Education Act (20
U.S.C. 6301) to local educational agencies and public
schools; and
``(V) other factors determined by the Secretary.
``(C) Cost assessment.--The evaluation shall assess the
increased costs associated with providing additional free,
reduced price, or paid meals in the school food authorities
operating under this subsection.
``(D) Report.--On completion of 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 under this paragraph.
``(4) Authorization of appropriations.--There are authorized to
be appropriated such sums as are necessary to carry out this
subsection, to remain available until expended.''.
SEC. 125. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE
MANAGEMENT INSTITUTE.
(a) In General.--Section 21(a)(1) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769b-1(a)(1)) is amended by
striking ``activities and'' and all that follows and inserting
``activities and provide--
``(A) training and technical assistance to improve the
skills of individuals employed in--
``(i) food service programs carried out with assistance
under this Act and, to the maximum extent practicable,
using individuals who administer exemplary local food
service programs in the State;
``(ii) school breakfast programs carried out with
assistance under section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773); and
``(iii) as appropriate, other federally assisted
feeding programs; and
``(B) assistance, on a competitive basis, to State agencies
for the purpose of aiding schools and school food authorities
with at least 50 percent of enrolled children certified to
receive free or reduced price meals (and, if there are any
remaining funds, other schools and school food authorities) in
meeting the cost of acquiring or upgrading technology and
information management systems for use in food service programs
carried out under this Act and section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773), if the school or school food
authority submits to the State agency an infrastructure
development plan that--
``(i) addresses the cost savings and improvements in
program integrity and operations that would result from the
use of new or upgraded technology;
``(ii) ensures that there is not any overt
identification of any child by special tokens or tickets,
announced or published list of names, or by any other
means;
``(iii) provides for processing and verifying
applications for free and reduced price school meals;
``(iv) integrates menu planning, production, and
serving data to monitor compliance with section 9(f)(1);
and
``(v) establishes compatibility with statewide
reporting systems;
``(C) assistance, on a competitive basis, to State agencies
with low proportions of schools or students that--
``(i) participate in the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773); and
``(ii) demonstrate the greatest need, for the purpose
of aiding schools in meeting costs associated with
initiating or expanding a school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), including outreach and informational activities;
and''.
(b) Duties of Food Service Management Institute.--Section
21(c)(2)(B) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769b-1(c)(2)(B)) is amended--
(1) by striking clauses (vi) and (vii) and inserting the
following:
``(vi) safety, including food handling, hazard analysis
and critical control point plan implementation, emergency
readiness, responding to a food recall, and food
biosecurity training;''; and
(2) by redesignating clauses (viii) through (x) as clauses
(vii) through (ix), respectively.
(c) Authorization of Appropriations.--
(1) Training activities and technical assistance.--Section
21(e)(1) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769b-1(e)(1)) is amended by striking ``2003'' and inserting
``2009''.
(2) Food service management institute.--Section 21(e)(2)(A) of
the Richard B. Russell National School Lunch Act (42 U.S.C. 1769b-
1(e)(2)(A) is amended in the first sentence--
(A) by striking ``provide to the Secretary'' and all that
follows through ``1998, and'' and inserting ``provide to the
Secretary''; and
(B) by striking ``1999 and'' and inserting ``2004 and
$4,000,000 for fiscal year 2005''.
SEC. 126. ADMINISTRATIVE ERROR REDUCTION.
(a) Federal Support for Training and Technical Assistance.--Section
21 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1769b-1) is amended by adding at the end the following:
``(f) Administrative Training and Technical Assistance Material.--
In collaboration with State educational agencies, local educational
agencies, and school food authorities of varying sizes, the Secretary
shall develop and distribute training and technical assistance material
relating to the administration of school meals programs that are
representative of the best management and administrative practices.
``(g) Federal Administrative Support.--
``(1) Funding.--
``(A) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out this
subsection--
``(i) on October 1, 2004, and October 1, 2005,
$3,000,000; and
``(ii) on October 1, 2006, October 1, 2007, and October
1, 2008, $2,000,000.
``(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph (A),
without further appropriation.
``(C) Availability of funds.--Funds transferred under
subparagraph (A) shall remain available until expended.
``(2) Use of funds.--The Secretary may use funds provided under
this subsection--
``(A) to provide training and technical assistance and
material related to improving program integrity and
administrative accuracy in school meals programs; and
``(B) to assist State educational agencies in reviewing the
administrative practices of local educational agencies, to the
extent determined by the Secretary.''.
(b) Selected Administrative Reviews.--
(1) In general.--Section 22(b) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769c(b)) is amended by adding
at the end the following:
``(3) Additional review requirement for selected local
educational agencies.--
``(A) Definition of selected local educational agencies.--
In this paragraph, the term `selected local educational agency'
means a local educational agency that has a demonstrated high
level of, or a high risk for, administrative error, as
determined by the Secretary.
``(B) Additional administrative review.--In addition to any
review required by subsection (a) or paragraph (1), each State
educational agency shall conduct an administrative review of
each selected local educational agency during the review cycle
established under subsection (a).
``(C) Scope of review.--In carrying out a review under
subparagraph (B), a State educational agency shall only review
the administrative processes of a selected local educational
agency, including application, certification, verification,
meal counting, and meal claiming procedures.
``(D) Results of review.--If the State educational agency
determines (on the basis of a review conducted under
subparagraph (B)) that a selected local educational agency
fails to meet performance criteria established by the
Secretary, the State educational agency shall--
``(i) require the selected local educational agency to
develop and carry out an approved plan of corrective
action;
``(ii) except to the extent technical assistance is
provided directly by the Secretary, provide technical
assistance to assist the selected local educational agency
in carrying out the corrective action plan; and
``(iii) conduct a followup review of the selected local
educational agency under standards established by the
Secretary.
``(4) Retaining funds after administrative reviews.--
``(A) In general.--Subject to subparagraphs (B) and (C), if
the local educational agency fails to meet administrative
performance criteria established by the Secretary in both an
initial review and a followup review under paragraph (1) or (3)
or subsection (a), the Secretary may require the State
educational agency to retain funds that would otherwise be paid
to the local educational agency for school meals programs under
procedures prescribed by the Secretary.
``(B) Amount.--The amount of funds retained under
subparagraph (A) shall equal the value of any overpayment made
to the local educational agency or school food authority as a
result of an erroneous claim during the time period described
in subparagraph (C).
``(C) Time period.--The period for determining the value of
any overpayment under subparagraph (B) shall be the period--
``(i) beginning on the date the erroneous claim was
made; and
``(ii) ending on the earlier of the date the erroneous
claim is corrected or--
``(I) in the case of the first followup review
conducted by the State educational agency of the local
educational agency under this section after July 1,
2005, the date that is 60 days after the beginning of
the period under clause (i); or
``(II) in the case of any subsequent followup
review conducted by the State educational agency of the
local educational agency under this section, the date
that is 90 days after the beginning of the period under
clause (i).
``(5) Use of retained funds.--
``(A) In general.--Subject to subparagraph (B), funds
retained under paragraph (4) shall--
``(i) be returned to the Secretary, and may be used--
``(I) to provide training and technical assistance
related to administrative practices designed to improve
program integrity and administrative accuracy in school
meals programs to State educational agencies and, to
the extent determined by the Secretary, to local
educational agencies and school food authorities;
``(II) to assist State educational agencies in
reviewing the administrative practices of local
educational agencies in carrying out school meals
programs; and
``(III) to carry out section 21(f); or
``(ii) be credited to the child nutrition programs
appropriation account.
``(B) State share.--A State educational agency may retain
not more than 25 percent of an amount recovered under paragraph
(4), to carry out school meals program integrity initiatives to
assist local educational agencies and school food authorities
that have repeatedly failed, as determined by the Secretary, to
meet administrative performance criteria.
``(C) Requirement.--To be eligible to retain funds under
subparagraph (B), a State educational agency shall--
``(i) submit to the Secretary a plan describing how the
State educational agency will use the funds to improve
school meals program integrity, including measures to give
priority to local educational agencies from which funds
were retained under paragraph (4);
``(ii) consider using individuals who administer
exemplary local food service programs in the provision of
training and technical assistance; and
``(iii) obtain the approval of the Secretary for the
plan.''.
(2) Interpretation.--Nothing in the amendment made by paragraph
(1) affects the requirements for fiscal actions as described in the
regulations issued pursuant to section 22(a) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769c(a)).
(c) Training and Technical Assistance.--Section 7 of the Child
Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
(1) in subsection (e)--
(A) by striking ``(e) Each'' and inserting the following:
``(e) Plans for Use of Administrative Expense Funds.--
``(1) In general.--Each''; and
(B) by striking ``After submitting'' and all that follows
through ``change in the plan.'' and inserting the following:
``(2) Updates and information management systems.--
``(A) In general.--After submitting the initial plan, a
State shall be required to submit to the Secretary for approval
only a substantive change in the plan.
``(B) Plan contents.--Each State plan shall, at a minimum,
include a description of how technology and information
management systems will be used to improve program integrity
by--
``(i) monitoring the nutrient content of meals served;
``(ii) training local educational agencies, school food
authorities, and schools in how to use technology and
information management systems (including verifying
eligibility for free or reduced price meals using program
participation or income data gathered by State or local
agencies); and
``(iii) using electronic data to establish benchmarks
to compare and monitor program integrity, program
participation, and financial data.
``(3) Training and technical assistance.--Each State shall
submit to the Secretary for approval a plan describing the manner
in which the State intends to implement subsection (g) and section
22(b)(3) of the Richard B. Russell National School Lunch Act.'';
(2) by redesignating subsection (g) as subsection (j); and
(3) by inserting after subsection (f) the following:
``(g) State Training.--
``(1) In general.--At least annually, each State shall provide
training in administrative practices (including training in
application, certification, verification, meal counting, and meal
claiming procedures) to local educational agency and school food
authority administrative personnel and other appropriate personnel,
with emphasis on the requirements established by the Child
Nutrition and WIC Reauthorization Act of 2004 and the amendments
made by that Act.
``(2) Federal role.--The Secretary shall--
``(A) provide training and technical assistance to a State;
or
``(B) at the option of the Secretary, directly provide
training and technical assistance described in paragraph (1).
``(3) Required participation.--In accordance with procedures
established by the Secretary, each local educational agency or
school food authority shall ensure that an individual conducting or
overseeing administrative procedures described in paragraph (1)
receives training at least annually, unless determined otherwise by
the Secretary.
``(h) Funding for Training and Administrative Reviews.--
``(1) Funding.--
``(A) In general.--On October 1, 2004, and on each October
1 thereafter, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of Agriculture to carry out this subsection
$4,000,000, to remain available until expended.
``(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph (A),
without further appropriation.
``(2) Use of funds.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall use funds provided under this subsection to
assist States in carrying out subsection (g) and administrative
reviews of selected local educational agencies carried out
under section 22 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769c).
``(B) Exception.--The Secretary may retain a portion of the
amount provided to cover costs of activities carried out by the
Secretary in lieu of the State.
``(3) Allocation.--The Secretary shall allocate funds provided
under this subsection to States based on the number of local
educational agencies that have demonstrated a high level of, or a
high risk for, administrative error, as determined by the
Secretary, taking into account the requirements established by the
Child Nutrition and WIC Reauthorization Act of 2004 and the
amendments made by that Act.
``(4) Reallocation.--The Secretary may reallocate, to carry out
this section, any amounts made available to carry out this
subsection that are not obligated or expended, as determined by the
Secretary.''.
SEC. 127. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769c(d)) is amended by striking ``$3,000,000 for each of
the fiscal years 1994 through 2003'' and inserting ``$6,000,000 for
each of fiscal years 2004 through 2009''.
SEC. 128. INFORMATION CLEARINGHOUSE.
Section 26(d) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769g(d)) is amended in the first sentence--
(1) by striking ``1998, and'' and inserting ``1998,''; and
(2) by striking ``through 2003'' and inserting ``through 2004,
and $250,000 for each of fiscal years 2005 through 2009''.
SEC. 129. PROGRAM EVALUATION.
The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) is amended by adding at the end the following:
``SEC. 28. PROGRAM EVALUATION.
``(a) Performance Assessments.--
``(1) In general.--Subject to the availability of funds made
available under paragraph (3), the Secretary, acting through the
Administrator of the Food and Nutrition Service, may conduct annual
national performance assessments of the meal programs under this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(2) Components.--In conducting an assessment, the Secretary
may assess--
``(A) the cost of producing meals and meal supplements
under the programs described in paragraph (1); and
``(B) the nutrient profile of meals, and status of menu
planning practices, under the programs.
``(3) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection $5,000,000 for fiscal
year 2004 and each subsequent fiscal year.
``(b) Certification Improvements.--
``(1) In general.--Subject to the availability of funds made
available under paragraph (5), the Secretary, acting through the
Administrator of the Food and Nutrition Service, shall conduct a
study of the feasibility of improving the certification process
used for the school lunch program established under this Act.
``(2) Pilot projects.--In carrying out this subsection, the
Secretary may conduct pilot projects to improve the certification
process used for the school lunch program.
``(3) Components.--In carrying out this subsection, the
Secretary shall examine the use of--
``(A) other income reporting systems;
``(B) an integrated benefit eligibility determination
process managed by a single agency;
``(C) income or program participation data gathered by
State or local agencies; and
``(D) other options determined by the Secretary.
``(4) Waivers.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may waive such provisions of this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are necessary
to carry out this subsection.
``(B) Provisions.--The protections of section 9(b)(6) shall
apply to any study or pilot project carried out under this
subsection.
``(5) Authorization of appropriations.--There is authorized to
be appropriated to carry out this subsection such sums as are
necessary.''.
TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966
SEC. 201. SEVERE NEED ASSISTANCE.
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is
amended by striking subsection (d) and inserting the following:
``(d) Severe Need Assistance.--
``(1) In general.--Each State educational agency shall provide
additional assistance to schools in severe need, which shall
include only those schools (having a breakfast program or desiring
to initiate a breakfast program) in which--
``(A) during the most recent second preceding school year
for which lunches were served, 40 percent or more of the
lunches served to students at the school were served free or at
a reduced price; or
``(B) in the case of a school in which lunches were not
served during the most recent second preceding school year, the
Secretary otherwise determines that the requirements of
subparagraph (A) would have been met.
``(2) Additional assistance.--A school, on the submission of
appropriate documentation about the need circumstances in that
school and the eligibility of the school for additional assistance,
shall be entitled to receive the meal reimbursement rate specified
in subsection (b)(2).''.
SEC. 202. STATE ADMINISTRATIVE EXPENSES.
(a) Minimum State Administrative Expense Grants.--Section 7 of the
Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
(1) by striking the section heading and all that follows
through ``(a)(1) Each'' and inserting the following:
``SEC. 7. STATE ADMINISTRATIVE EXPENSES.
``(a) Amount and Allocation of Funds.--
``(1) Amount available.--
``(A) In general.--Except as provided in subparagraph (B),
each'';
(2) in subsection (a)--
(A) in paragraph (1)--
(i) by inserting after the first sentence the
following:
``(B) Minimum amount.--In the case of each of fiscal years
2005 through 2007, the Secretary shall make available to each
State for administrative costs not less than the initial
allocation made to the State under this subsection for fiscal
year 2004.'';
(ii) by striking ``The Secretary'' and inserting the
following:
``(C) Allocation.--The Secretary''; and
(iii) by striking the last sentence; and
(B) in paragraph (2)--
(i) by striking ``(2) The'' and inserting the
following:
``(2) Expense grants.--
``(A) In general.--Subject to subparagraph (B), the'';
(ii) in the second sentence--
(I) by striking ``In no case'' and inserting the
following:
``(B) Minimum amount.--
``(i) In general.--In no case'';
(II) by striking ``this subsection'' and inserting
``this paragraph''; and
(III) by striking ``$100,000'' and inserting
``$200,000 (as adjusted under clause (ii)''; and
(iii) by adding at the end the following:
``(ii) Adjustment.--On October 1, 2008, and each
October 1 thereafter, the minimum dollar amount for a
fiscal year specified in clause (i) shall be adjusted to
reflect the percentage change between--
``(I) the value of the index for State and local
government purchases, as published by the Bureau of
Economic Analysis of the Department of Commerce, for
the 12-month period ending June 30 of the second
preceding fiscal year; and
``(II) the value of that index for the 12-month
period ending June 30 of the preceding fiscal year.''.
(b) Technology Infrastructure Improvement.--Section 7 of the Child
Nutrition Act of 1966 (42 U.S.C. 1776) is amended by inserting after
subsection (h) (as added by section 126(c)(3)) the following:
``(i) Technology Infrastructure Improvement.--
``(1) In general.--Each State shall submit to the Secretary,
for approval by the Secretary, an amendment to the plan required by
subsection (e) that describes the manner in which funds provided
under this section will be used for technology and information
management systems.
``(2) Requirements.--The amendment shall, at a minimum,
describe the manner in which the State will improve program
integrity by--
``(A) monitoring the nutrient content of meals served;
``(B) providing training to local educational agencies,
school food authorities, and schools on the use of technology
and information management systems for activities including--
``(i) menu planning;
``(ii) collection of point-of-sale data; and
``(iii) the processing of applications for free and
reduced price meals; and
``(C) using electronic data to establish benchmarks to
compare and monitor program integrity, program participation,
and financial data across schools and school food authorities.
``(3) Technology infrastructure grants.--
``(A) In general.--Subject to the availability of funds
made available under paragraph (4) to carry out this paragraph,
the Secretary shall, on a competitive basis, provide funds to
States to be used to provide grants to local educational
agencies, school food authorities, and schools to defray the
cost of purchasing or upgrading technology and information
management systems for use in programs authorized by this Act
(other than section 17) and the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.).
``(B) Infrastructure development plan.--To be eligible to
receive a grant under this paragraph, a school or school food
authority shall submit to the State a plan to purchase or
upgrade technology and information management systems that
addresses potential cost savings and methods to improve program
integrity, including--
``(i) processing and verification of applications for
free and reduced price meals;
``(ii) integration of menu planning, production, and
serving data to monitor compliance with section 9(f)(1) of
the Richard B. Russell National School Lunch Act (42 U.S.C.
1758(f)(1)); and
``(iii) compatibility with statewide reporting systems.
``(4) Authorization of appropriations.--There are authorized to
be appropriated to carry out this subsection such sums as are
necessary for each of fiscal years 2005 through 2009, to remain
available until expended.''.
(c) Reauthorization.--Subsection (j) of section 7 of the Child
Nutrition Act of 1966 (42 U.S.C. 1776) (as redesignated by section
126(c)(2)) is amended by striking ``2003'' and inserting ``2009''.
SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
(a) Definitions.--
(1) Nutrition education.--Section 17(b) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(b)) is amended by striking paragraph
(7) and inserting the following:
``(7) Nutrition education.--The term `nutrition education'
means individual and group sessions and the provision of material
that are designed to improve health status and achieve positive
change in dietary and physical activity habits, and that emphasize
the relationship between nutrition, physical activity, and health,
all in keeping with the personal and cultural preferences of the
individual.''.
(2) Supplemental foods.--Section 17(b)(14) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(b)(14)) is amended in the
first sentence by inserting after ``children'' the following: ``and
foods that promote the health of the population served by the
program authorized by this section, as indicated by relevant
nutrition science, public health concerns, and cultural eating
patterns''.
(3) Other terms.--Section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b)) is amended by adding at the end the
following:
``(22) Primary contract infant formula.--The term `primary
contract infant formula' means the specific infant formula for
which manufacturers submit a bid to a State agency in response to a
rebate solicitation under this section and for which a contract is
awarded by the State agency as a result of that bid.
``(23) State alliance.--The term `State alliance' means 2 or
more State agencies that join together for the purpose of procuring
infant formula under the program by soliciting competitive bids for
infant formula.''.
(b) Eligibility.--
(1) Certification period.--Section 17(d)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended--
(A) by striking ``(3)(A) Persons'' and inserting the
following:
``(3) Certification.--
``(A) Procedures.--
``(i) In general.--Subject to clause (ii), a person'';
and
(B) by adding at the end of subparagraph (A) the following:
``(ii) Breastfeeding women.--A State may elect to
certify a breastfeeding woman for a period of 1 year
postpartum or until a woman discontinues breastfeeding,
whichever is earlier.''.
(2) Physical presence.--Section 17(d)(3)(C)(ii) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(C)(ii)) is amended--
(A) in subclause (I)(bb), by striking ``from a provider
other than the local agency; or'' and inserting a semicolon;
(B) in subclause (II), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(III) an infant under 8 weeks of age--
``(aa) who cannot be present at certification
for a reason determined appropriate by the local
agency; and
``(bb) for whom all necessary certification
information is provided.''.
(c) Administration.--
(1) Processing vendor applications; participant access.--
Section 17(f)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(f)(1)(C)) is amended--
(A) in clause (i) by inserting ``at any of the authorized
retail stores under the program'' after ``the program'';
(B) by redesignating clauses (ii) through (x) as clauses
(iii) through (xi), respectively; and
(C) by inserting after clause (i) the following:
``(ii) procedures for accepting and processing vendor
applications outside of the established timeframes if the State
agency determines there will be inadequate access to the program,
including in a case in which a previously authorized vendor sells a
store under circumstances that do not permit timely notification to
the State agency of the change in ownership;''.
(2) Allowable use of funds.--
(A) In general.--Section 17(f)(11) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(f)(11) is amended--
(i) by striking ``(11) The Secretary'' and inserting
the following:
``(11) Supplemental foods.--
``(A) In general.--The Secretary'';
(ii) in the second sentence, by striking ``To the
degree'' and inserting the following:
``(B) Appropriate content.--To the degree''; and
(iii) by adding at the end the following:
``(C) Allowable use of funds.--Subject to the availability
of funds, the Secretary shall award grants to not more than 10
local sites determined by the Secretary to be geographically
and culturally representative of State, local, and Indian
agencies, to evaluate the feasibility of including fresh,
frozen, or canned fruits and vegetables (to be made available
through private funds) as an addition to the supplemental foods
prescribed under this section.
``(D) Review of available supplemental foods.--As
frequently as determined by the Secretary to be necessary to
reflect the most recent scientific knowledge, the Secretary
shall--
``(i) conduct a scientific review of the supplemental
foods available under the program; and
``(ii) amend the supplemental foods available, as
necessary, to reflect nutrition science, public health
concerns, and cultural eating patterns.''.
(B) Rulemaking.--Not later than 18 months after the date of
receiving the review initiated by the National Academy of
Sciences, Institute of Medicine in September 2003 of the
supplemental foods available for 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), the Secretary shall promulgate a final rule updating the
prescribed supplemental foods available through the program.
(3) Use of claims from local agencies.--Section 17(f)(21) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is
amended--
(A) in the paragraph heading, by striking ``vendors'' and
inserting ``local agencies, vendors,''; and
(B) by striking ``vendors'' and inserting ``local agencies,
vendors,''.
(4) Infant formula benefits.--
(A) In general.--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:
``(25) Infant formula benefits.--A State agency may round up to
the next whole can of infant formula to allow all participants
under the program to receive the full-authorized nutritional
benefit specified by regulation.''.
(B) Applicability.--The amendment made by subparagraph (A)
applies to infant formula provided under a contract resulting
from a bid solicitation issued on or after October 1, 2004.
(5) Notification of violations.--Section 17(f) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by paragraph
(4)) is amended by adding at the end the following:
``(26) Notification of violations.--If a State agency finds
that a vendor has committed a violation that requires a pattern of
occurrences in order to impose a penalty or sanction, the State
agency shall notify the vendor of the initial violation in writing
prior to documentation of another violation, unless the State
agency determines that notifying the vendor would compromise an
investigation.''.
(d) Reauthorization of WIC Program.--Section 17(g) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended by striking
``(g)(1)'' and all that follows through ``As authorized'' in paragraph
(1) and inserting the following:
``(g) Authorization of Appropriations.--
``(1) In general.--
``(A) Authorization.--There are authorized to be
appropriated to carry out this section such sums as are
necessary for each of fiscal years 2004 through 2009.
``(B) Advance appropriations; availability.--As
authorized''.
(e) Nutrition Services and Administration Funds; Competitive
Bidding; Retailers.--
(1) In general.--Section 17(h)(2)(A) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended by striking ``For each
of the fiscal years 1995 through 2003, the'' and inserting ``The''.
(2) Healthy people 2010 initiative.--Section 17(h)(4) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(4)) is amended--
(A) in subparagraph (D), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(F) partner with communities, State and local agencies,
employers, health care professionals, and other entities in the
private sector to build a supportive breastfeeding environment
for women participating in the program under this section to
support the breastfeeding goals of the Healthy People 2010
initiative.''.
(3) Size of state alliances.--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:
``(iv) Size of state alliances.--
``(I) In general.--Except as provided in subclauses
(II) through (IV), no State alliance may exist among
States if the total number of infants served by States
participating in the alliance as of October 1, 2003, or
such subsequent date determined by the Secretary for
which data is available, would exceed 100,000.
``(II) Addition of infant participants.--In the
case of a State alliance that exists on the date of
enactment of this clause, the alliance may continue and
may expand to serve more than 100,000 infants but,
except as provided in subclause (III), may not expand
to include any additional State agency.
``(III) Addition of small state agencies and indian
state agencies.--Any State alliance may expand to
include any State agency that served less than 5,000
infant participants as of October 1, 2003, or such
subsequent date determined by the Secretary for which
data is available, or any Indian State agency, if the
State agency or Indian State agency requests to join
the State alliance.
``(IV) Secretarial waiver.--The Secretary may waive
the requirements of this clause not earlier than 30
days after submitting 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 written report that describes the cost-
containment and competitive benefits of the proposed
waiver.''.
(4) Primary contract infant formula.--
(A) In general.--Section 17(h)(8)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(8)(A)) (as amended by paragraph
(3)) is amended--
(i) in clause (ii)(I), by striking ``contract brand
of'' and inserting ``primary contract'';
(ii) in clause (iii), by inserting ``for a specific
infant formula for which manufacturers submit a bid'' after
``lowest net price''; and
(iii) by adding at the end the following:
``(v) First choice of issuance.--The State agency shall
use the primary contract infant formula as the first choice
of issuance (by formula type), with all other infant
formulas issued as an alternative to the primary contract
infant formula.''.
(B) Applicability.--The amendments made by subparagraph (A)
apply to a contract resulting from a bid solicitation issued on
or after October 1, 2004.
(5) Rebate invoices.--Section 17(h)(8)(A) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by
paragraph (4)(A)(iii)) is amended by adding at the end the
following:
``(vi) Rebate invoices.--Each State agency shall have a
system to ensure that infant formula rebate invoices, under
competitive bidding, provide a reasonable estimate or an
actual count of the number of units sold to participants in
the program under this section.''.
(6) Uncoupling milk and soy bids.--
(A) In general.--Section 17(h)(8)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by paragraph
(5)) is amended by adding at the end the following:
``(vii) Separate solicitations.--In soliciting bids for
infant formula under a competitive bidding system, any
State agency, or State alliance, that served under the
program a monthly average of more than 100,000 infants
during the preceding 12-month period shall solicit bids
from infant formula manufacturers under procedures that
require that bids for rebates or discounts are solicited
for milk-based and soy-based infant formula separately.''.
(B) Applicability.--The amendment made by this paragraph
applies to a bid solicitation issued on or after October 1,
2004.
(7) Cent-for-cent adjustments.--
(A) In general.--Section 17(h)(8)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by paragraph
(6)(A)) is amended by adding at the end the following:
``(viii) Cent-for-cent adjustments.--A bid solicitation
for infant formula under the program shall require the
manufacturer to adjust for price changes subsequent to the
opening of the bidding process in a manner that requires--
``(I) a cent-for-cent increase in the rebate
amounts if there is an increase in the lowest national
wholesale price for a full truckload of the particular
infant formula; and
``(II) a cent-for-cent decrease in the rebate
amounts if there is a decrease in the lowest national
wholesale price for a full truckload of the particular
infant formula.''.
(B) Conforming amendment.--Section 17(h)(8)(A)(ii) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)(ii)) is
amended by striking ``rise'' and inserting ``change''.
(C) Applicability.--The amendments made by this paragraph
apply to a bid solicitation issued on or after October 1, 2004.
(8) List of infant formula wholesalers, distributors,
retailers, and manufacturers.--Section 17(h)(8)(A) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by
paragraph (7)(A)) is amended by adding at the end the following:
``(ix) List of infant formula wholesalers,
distributors, retailers, and manufacturers.--The State
agency shall maintain a list of--
``(I) infant formula wholesalers, distributors, and
retailers licensed in the State in accordance with
State law (including regulations); and
``(II) infant formula manufacturers registered with
the Food and Drug Administration that provide infant
formula.
``(x) Purchase requirement.--A vendor authorized to
participate in the program under this section shall only
purchase infant formula from the list described in clause
(ix).''.
(9) Funds for infrastructure, management information systems,
and special nutrition education.--Section 17(h) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking
paragraph (10) and inserting the following:
``(10) Funds for infrastructure, management information
systems, and special nutrition education.--
``(A) In general.--For each of fiscal years 2006 through
2009, the Secretary shall use for the purposes specified in
subparagraph (B), $64,000,000 or the amount of nutrition
services and administration funds and supplemental food funds
for the prior fiscal year that have not been obligated,
whichever is less.
``(B) Purposes.--Of the amount made available under
subparagraph (A) for a fiscal year, not more than--
``(i) $14,000,000 shall be used for--
``(I) infrastructure for the program under this
section;
``(II) special projects to promote breastfeeding,
including projects to assess the effectiveness of
particular breastfeeding promotion strategies; and
``(III) special State projects of regional or
national significance to improve the services of the
program;
``(ii) $30,000,000 shall be used to establish, improve,
or administer management information systems for the
program, including changes necessary to meet new
legislative or regulatory requirements of the program; and
``(iii) $20,000,000 shall be used for special nutrition
education such as breast feeding peer counselors and other
related activities.
``(C) Proportional distribution.--In a case in which less
than $64,000,000 is available to carry out this paragraph, the
Secretary shall make a proportional distribution of funds
allocated under subparagraph (B).''.
(10) Vendor cost containment.--
(A) Section 17(h) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)) is amended by striking paragraph (11) and
inserting the following:
``(11) Vendor cost containment.--
``(A) Peer groups.--
``(i) In general.--The State agency shall--
``(I) establish a vendor peer group system;
``(II) in accordance with subparagraphs (B) and
(C), establish competitive price criteria and allowable
reimbursement levels for each vendor peer group; and
``(III) if the State agency elects to authorize any
types of vendors described in subparagraph (D)(ii)(I)--
``(aa) distinguish between vendors described in
subparagraph (D)(ii)(I) and other vendors by
establishing--
``(AA) separate peer groups for vendors
described in subparagraph (D)(ii)(I);or
``(BB) distinct competitive price criteria
and allowable reimbursement levels for vendors
described in subparagraph (D)(ii)(I) within a
peer group that contains both vendors described
in subparagraph (D)(ii)(I) and other vendors;
and
``(bb) establish competitive price criteria and
allowable reimbursement levels that comply with
subparagraphs (B) and (C), respectively, and that
do not result in higher food costs if program
participants redeem supplemental food vouchers at
vendors described in subparagraph (D)(ii)(I) rather
than at vendors other than vendors described in
subparagraph (D)(ii)(I).
Nothing in this paragraph shall be construed to compel a State
agency to achieve lower food costs if program participants redeem
supplemental food vouchers at vendors described in subparagraph
(D)(ii)(I) rather than at vendors other than vendors described in
subparagraph (D)(ii)(I).
``(ii) Exemptions.--The Secretary may exempt from the
requirements of clause (i)--
``(I) a State agency that elects not to authorize
any types of vendors described in subparagraph
(D)(ii)(I) and that demonstrates to the Secretary
that--
``(aa) compliance with clause (i) would be
inconsistent with efficient and effective operation
of the program administered by the State under this
section; or
``(bb) an alternative cost-containment system
would be as effective as a vendor peer group
system; or
``(II) a State agency--
``(aa) in which the sale of supplemental foods
that are obtained with food instruments from
vendors described in subparagraph (D)(ii)(I)
constituted less than 5 percent of total sales of
supplemental foods that were obtained with food
instruments in the State in the year preceding a
year in which the exemption is effective; and
``(bb) that demonstrates to the Secretary that
an alternative cost-containment system would be as
effective as the vendor peer group system and would
not result in higher food costs if program
participants redeem supplemental food vouchers at
vendors described in subparagraph (D)(ii)(I) rather
than at vendors other than vendors described in
subparagraph (D)(ii)(I).
``(B) Competitive pricing.--
``(i) In general.--The State agency shall establish
competitive price criteria for each peer group for the
selection of vendors for participation in the program
that--
``(I) ensure that the retail prices charged by
vendor applicants for the program are competitive with
the prices charged by other vendors; and
``(II) consider--
``(aa) the shelf prices of the vendor for all
buyers; or
``(bb) the prices that the vendor bid for
supplemental foods, which shall not exceed the
shelf prices of the vendor for all buyers.
``(ii) Participant access.--In establishing competitive
price criteria, the State agency shall consider participant
access by geographic area.
``(iii) Subsequent price increases.--The State agency
shall establish procedures to ensure that a retail store
selected for participation in the program does not,
subsequent to selection, increase prices to levels that
would make the store ineligible for selection to
participate in the program.
``(C) Allowable reimbursement levels.--
``(i) In general.--The State agency shall establish
allowable reimbursement levels for supplemental foods for
each vendor peer group that ensure--
``(I) that payments to vendors in the vendor peer
group reflect competitive retail prices; and
``(II) that the State agency does not reimburse a
vendor for supplemental foods at a level that would
make the vendor ineligible for authorization under the
criteria established under subparagraph (B).
``(ii) Price fluctuations.--The allowable reimbursement
levels may include a factor to reflect fluctuations in
wholesale prices.
``(iii) Participant access.--In establishing allowable
reimbursement levels, the State agency shall consider
participant access in a geographic area.
``(D) Exemptions.--The State agency may exempt from
competitive price criteria and allowable reimbursement levels
established under this paragraph--
``(i) pharmacy vendors that supply only exempt infant
formula or medical foods that are eligible under the
program; and
``(ii) vendors--
``(I)(aa) for which more than 50 percent of the
annual revenue of the vendor from the sale of food
items consists of revenue from the sale of supplemental
foods that are obtained with food instruments; or
``(bb) who are new applicants likely to meet the
criteria of item (aa) under criteria approved by the
Secretary; and
``(II) that are nonprofit.
``(E) Cost containment.--If a State agency elects to
authorize any types of vendors described in subparagraph
(D)(ii)(I), the State agency shall demonstrate to the
Secretary, and the Secretary shall certify, that the
competitive price criteria and allowable reimbursement levels
established under this paragraph for vendors described in
subparagraph (D)(ii)(I) do not result in average payments per
voucher to vendors described in subparagraph (D)(ii)(I) that
are higher than average payments per voucher to comparable
vendors other than vendors described in subparagraph
(D)(ii)(I).
``(F) Limitation on private rights of action.--Nothing in
this paragraph may be construed as creating a private right of
action.
``(G) Implementation.--A State agency shall comply with
this paragraph not later than 18 months after the date of
enactment of this paragraph.''.
(B) Conforming amendment.--Section 17(f)(1)(C)(i) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(1)(C)(i)) is
amended by inserting before the semicolon the following: ``,
including a description of the State agency's vendor peer group
system, competitive price criteria, and allowable reimbursement
levels that demonstrate that the State is in compliance with
the cost-containment provisions in subsection (h)(11).''.
(11) Imposition of costs on retail stores.--Section 17(h) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by
striking paragraph (12) and inserting the following:
``(12) Imposition of costs on retail stores.--The Secretary may
not impose, or allow a State agency to impose, the costs of any
equipment, system, or processing required for electronic benefit
transfers on any retail store authorized to transact food
instruments, as a condition for authorization or participation in
the program.''.
(12) Universal product codes database.--Section 17(h) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) (as amended by
paragraph (11)) is amended by adding at the end the following:
``(13) Universal product codes database.--The Secretary shall--
``(A) establish a national universal product code database
for use by all State agencies in carrying out the program; and
``(B) make available from appropriated funds such sums as
are required for hosting, hardware and software configuration,
and support of the database.''.
(13) Incentive items.--Section 17(h) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)) (as amended by paragraph (12)) is
amended by adding at the end the following:
``(14) Incentive items.--A State agency shall not authorize or
make payments to a vendor described in paragraph (11)(D)(ii)(I)
that provides incentive items or other free merchandise, except
food or merchandise of nominal value (as determined by the
Secretary), to program participants unless the vendor provides to
the State agency proof that the vendor obtained the incentive items
or merchandise at no cost.''.
(f) Spend Forward Authority.--Section 17(i)(3)(A)(ii)(I) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)(ii)(I)) is amended
by striking ``1 percent'' and inserting ``3 percent''.
(g) Migrant and Community Health Centers Initiative.--Section 17(j)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(j)) is amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraph (5) as paragraph (4).
(h) Farmers' Market Nutrition Program.--
(1) Roadside stands.--Section 17(m)(1) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(m)(1)) is amended by inserting ``and
(at the option of a State) roadside stands'' after ``farmers'
markets''.
(2) Matching funds.--Section 17(m)(3) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(m)(3)) is amended by striking ``total''
both places it appears and inserting ``administrative''.
(3) Benefit value.--Section 17(m)(5)(C)(ii) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(m)(5)(C)(ii)) is amended by
striking ``$20'' and inserting ``$30''.
(4) Reauthorization.--Section 17(m)(9)(A) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by
striking clause (i) and inserting the following:
``(i) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
such sums as are necessary for each of fiscal years 2004
through 2009.''.
(i) Demonstration Project Relating to Use of WIC Program for
Identification and Enrollment of Children in Certain Health Programs.--
(1) In general.--Section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786) is amended by striking subsection (r).
(2) Conforming amendment.--Section 12 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1760) is amended by striking
subsection (p).
SEC. 204. LOCAL WELLNESS POLICY.
(a) In General.--Not later than the first day of the school year
beginning after June 30, 2006, each local educational agency
participating in a program authorized by the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.) or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall establish a local
school wellness policy for schools under the local educational agency
that, at a minimum--
(1) includes goals for nutrition education, physical activity,
and other school-based activities that are designed to promote
student wellness in a manner that the local educational agency
determines is appropriate;
(2) includes nutrition guidelines selected by the local
educational agency for all foods available on each school campus
under the local educational agency during the school day with the
objectives of promoting student health and reducing childhood
obesity;
(3) provides an assurance that guidelines for reimbursable
school meals shall not be less restrictive than regulations and
guidance issued by the Secretary of Agriculture pursuant to
subsections (a) and (b) of section 10 of the Child Nutrition Act
(42 U.S.C. 1779) and sections 9(f)(1) and 17(a) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(f)(1), 1766(a)),
as those regulations and guidance apply to schools;
(4) establishes a plan for measuring implementation of the
local wellness policy, including designation of 1 or more persons
within the local educational agency or at each school, as
appropriate, charged with operational responsibility for ensuring
that the school meets the local wellness policy; and
(5) involves parents, students, representatives of the school
food authority, the school board, school administrators, and the
public in the development of the school wellness policy.
(b) Technical Assistance and Best Practices.--
(1) In general.--The Secretary, in coordination with the
Secretary of Education and in consultation with the Secretary of
Health and Human Services, acting through the Centers for Disease
Control and Prevention, shall make available to local educational
agencies, school food authorities, and State educational agencies,
on request, information and technical assistance for use in--
(A) establishing healthy school nutrition environments;
(B) reducing childhood obesity; and
(C) preventing diet-related chronic diseases.
(2) Content.--Technical assistance provided by the Secretary
under this subsection shall--
(A) include relevant and applicable examples of schools and
local educational agencies that have taken steps to offer
healthy options for foods sold or served in schools;
(B) include such other technical assistance as is required
to carry out the goals of promoting sound nutrition and
establishing healthy school nutrition environments that are
consistent with this section;
(C) be provided in such a manner as to be consistent with
the specific needs and requirements of local educational
agencies; and
(D) be for guidance purposes only and not be construed as
binding or as a mandate to schools, local educational agencies,
school food authorities, or State educational agencies.
(3) Funding.--
(A) In general.--On July 1, 2006, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture to
carry out this subsection $4,000,000, to remain available until
September 30, 2009.
(B) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph (A),
without further appropriation.
SEC. 205. TEAM NUTRITION NETWORK.
(a) Team Nutrition Network.--Section 19 of the Child Nutrition Act
of 1966 (42 U.S.C. 1788) is amended to read as follows:
``SEC. 19. TEAM NUTRITION NETWORK.
``(a) Purposes.--The purposes of the team nutrition network are--
``(1) to establish State systems to promote the nutritional
health of school children of the United States through nutrition
education and the use of team nutrition messages and material
developed by the Secretary, and to encourage regular physical
activity and other activities that support healthy lifestyles for
children, including those based on the most recent Dietary
Guidelines for Americans published under section 301 of the
National Nutrition Monitoring and Related Research Act of 1990 (7
U.S.C. 5341);
``(2) to provide assistance to States for the development of
comprehensive and integrated nutrition education and active living
programs in schools and facilities that participate in child
nutrition programs;
``(3) to provide training and technical assistance and
disseminate team nutrition messages to States, school and community
nutrition programs, and child nutrition food service professionals;
``(4) to coordinate and collaborate with other nutrition
education and active living programs that share similar goals and
purposes; and
``(5) to identify and share innovative programs with
demonstrated effectiveness in helping children to maintain a
healthy weight by enhancing student understanding of healthful
eating patterns and the importance of regular physical activity.
``(b) Definition of Team Nutrition Network.--In this section, the
term `team nutrition network' means a statewide multidisciplinary
program for children to promote healthy eating and physical activity
based on scientifically valid information and sound educational,
social, and marketing principles.
``(c) Grants.--
``(1) In general.--Subject to the availability of funds for use
in carrying out this section, in addition to any other funds made
available to the Secretary for team nutrition purposes, the
Secretary, in consultation with the Secretary of Education, may
make grants to State agencies for each fiscal year, in accordance
with this section, to establish team nutrition networks to promote
nutrition education through--
``(A) the use of team nutrition network messages and other
scientifically based information; and
``(B) the promotion of active lifestyles.
``(2) Form.--A portion of the grants provided under this
subsection may be in the form of competitive grants.
``(3) Funds from nongovernmental sources.--In carrying out this
subsection, the Secretary may accept cash contributions from
nongovernmental organizations made expressly to further the
purposes of this section, to be managed by the Food and Nutrition
Service, for use by the Secretary and the States in carrying out
this section.
``(d) Allocation.--Subject to the availability of funds for use in
carrying out this section, the total amount of funds made available for
a fiscal year for grants under this section shall equal not more than
the sum of--
``(1) the product obtained by multiplying \1/2\ cent by the
number of lunches reimbursed through food service programs under
the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) during the second preceding fiscal year in schools,
institutions, and service institutions that participate in the food
service programs; and
``(2) the total value of funds received by the Secretary in
support of this section from nongovernmental sources.
``(e) Requirements for State Participation.--To be eligible to
receive a grant under this section, a State agency shall submit to the
Secretary a plan that--
``(1) is subject to approval by the Secretary; and
``(2) is submitted at such time and in such manner, and that
contains such information, as the Secretary may require,
including--
``(A) a description of the goals and proposed State plan
for addressing the health and other consequences of children
who are at risk of becoming overweight or obese;
``(B) an analysis of the means by which the State agency
will use and disseminate the team nutrition messages and
material developed by the Secretary;
``(C) an explanation of the ways in which the State agency
will use the funds from the grant to work toward the goals
required under subparagraph (A), and to promote healthy eating
and physical activity and fitness in schools throughout the
State;
``(D) a description of the ways in which the State team
nutrition network messages and activities will be coordinated
at the State level with other health promotion and education
activities;
``(E) a description of the consultative process that the
State agency employed in the development of the model nutrition
and physical activity programs, including consultations with
individuals and organizations with expertise in promoting
public health, nutrition, or physical activity;
``(F) a description of how the State agency will evaluate
the effectiveness of each program developed by the State
agency;
``(G) an annual summary of the team nutrition network
activities;
``(H) a description of the ways in which the total school
environment will support healthy eating and physical activity;
and
``(I) a description of how all communications to parents
and legal guardians of students who are members of a household
receiving or applying for assistance under the program shall be
in an understandable and uniform format and, to the maximum
extent practicable, in a language that parents and legal
guardians can understand.
``(f) State Coordinator.--Each State that receives a grant under
this section shall appoint a team nutrition network coordinator who
shall--
``(1) administer and coordinate the team nutrition network
within and across schools, school food authorities, and other child
nutrition program providers in the State; and
``(2) coordinate activities of the Secretary, acting through
the Food and Nutrition Service, and State agencies responsible for
other children's health, education, and wellness programs to
implement a comprehensive, coordinated team nutrition network
program.
``(g) Authorized Activities.--A State agency that receives a grant
under this section may use funds from the grant--
``(1)(A) to collect, analyze, and disseminate data regarding
the extent to which children and youths in the State are
overweight, physically inactive, or otherwise suffering from
nutrition-related deficiencies or disease conditions; and
``(B) to identify the programs and services available to meet
those needs;
``(2) to implement model elementary and secondary education
curricula using team nutrition network messages and material
developed by the Secretary to create a comprehensive, coordinated
nutrition and physical fitness awareness and obesity prevention
program;
``(3) to implement pilot projects in schools to promote
physical activity and to enhance the nutritional status of
students;
``(4) to improve access to local foods through farm-to-
cafeteria activities that may include the acquisition of food and
the provision of training and education;
``(5) to implement State guidelines in health (including
nutrition education and physical education guidelines) and to
emphasize regular physical activity during school hours;
``(6) to establish healthy eating and lifestyle policies in
schools;
``(7) to provide training and technical assistance to teachers
and school food service professionals consistent with the purposes
of this section;
``(8) to collaborate with public and private organizations,
including community-based organizations, State medical
associations, and public health groups, to develop and implement
nutrition and physical education programs targeting lower income
children, ethnic minorities, and youth at a greater risk for
obesity.
``(h) Local Nutrition and Physical Activity Grants.--
``(1) In general.--Subject to the availability of funds to
carry out this subsection, the Secretary, in consultation with the
Secretary of Education, shall provide assistance to selected local
educational agencies to create healthy school nutrition
environments, promote healthy eating habits, and increase physical
activity, consistent with the Dietary Guidelines for Americans
published under section 301 of the National Nutrition Monitoring
and Related Research Act of 1990 (7 U.S.C. 5341), among elementary
and secondary education students.
``(2) Selection of schools.--In selecting local educational
agencies for grants under this subsection, the Secretary shall--
``(A) provide for the equitable distribution of grants
among--
``(i) urban, suburban, and rural schools; and
``(ii) schools with varying family income levels;
``(B) consider factors that affect need, including local
educational agencies with significant minority or low-income
student populations; and
``(C) establish a process that allows the Secretary to
conduct an evaluation of how funds were used.
``(3) Requirement for participation.--To be eligible to receive
assistance under this subsection, a local educational agency shall,
in consultation with individuals who possess education or
experience appropriate for representing the general field of public
health, including nutrition and fitness professionals, submit to
the Secretary an application that shall include--
``(A) a description of the need of the local educational
agency for a nutrition and physical activity program, including
an assessment of the nutritional environment of the school;
``(B) a description of how the proposed project will
improve health and nutrition through education and increased
access to physical activity;
``(C) a description of how the proposed project will be
aligned with the local wellness policy required under section
204 of the Child Nutrition and WIC Reauthorization Act of 2004;
``(D) a description of how funds under this subsection will
be coordinated with other programs under this Act, the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.),
or other Acts, as appropriate, to improve student health and
nutrition;
``(E) a statement of the measurable goals of the local
educational agency for nutrition and physical education
programs and promotion;
``(F) a description of the procedures the agency will use
to assess and publicly report progress toward meeting those
goals; and
``(G) a description of how communications to parents and
guardians of participating students regarding the activities
under this subsection shall be in an understandable and uniform
format, and, to the extent maximum practicable, in a language
that parents can understand.
``(4) Duration.--Subject to the availability of funds made
available to carry out this subsection, a local educational agency
receiving assistance under this subsection shall conduct the
project during a period of 3 successive school years beginning with
the initial fiscal year for which the local educational agency
receives funds.
``(5) Authorized activities.--An eligible applicant that
receives assistance under this subsection--
``(A) shall use funds provided to--
``(i) promote healthy eating through the development
and implementation of nutrition education programs and
curricula based on the Dietary Guidelines for Americans
published under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7 U.S.C.
5341); and
``(ii) increase opportunities for physical activity
through after school programs, athletics, intramural
activities, and recess; and
``(B) may use funds provided to--
``(i) educate parents and students about the
relationship of a poor diet and inactivity to obesity and
other health problems;
``(ii) develop and implement physical education
programs that promote fitness and lifelong activity;
``(iii) provide training and technical assistance to
food service professionals to develop more appealing,
nutritious menus and recipes;
``(iv) incorporate nutrition education into physical
education, health education, and after school programs,
including athletics;
``(v) involve parents, nutrition professionals, food
service staff, educators, community leaders, and other
interested parties in assessing the food options in the
school environment and developing and implementing an
action plan to promote a balanced and healthy diet;
``(vi) provide nutrient content or nutrition
information on meals served through the school lunch
program established under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) and the school
breakfast program established by section 4 of this Act and
items sold a la carte during meal times;
``(vii) encourage the increased consumption of a
variety of healthy foods, including fruits, vegetables,
whole grains, and low-fat dairy products, through new
initiatives to creatively market healthful foods, such as
salad bars and fruit bars;
``(viii) offer healthy food choices outside program
meals, including by making low-fat and nutrient dense
options available in vending machines, school stores, and
other venues; and
``(ix) provide nutrition education, including sports
nutrition education, for teachers, coaches, food service
staff, athletic trainers, and school nurses.
``(6) Report.--Not later than 18 months after completion of the
projects and evaluations under this subsection, the Secretary
shall--
``(A) submit to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions and the Committee on
Agriculture, Nutrition and Forestry of the Senate a report
describing the results of the evaluation under this subsection;
and
``(B) make the report available to the public, including
through the Internet.
``(i) Nutrition Education Support.--In carrying out the purpose of
this section to support nutrition education, the Secretary may provide
for technical assistance and grants to improve the quality of school
meals and access to local foods in schools and institutions.
``(j) Limitation.--Material prepared under this section regarding
agricultural commodities, food, or beverages, must be factual and
without bias.
``(k) Team Nutrition Network Independent Evaluation.--
``(1) In general.--Subject to the availability of funds to
carry out this subsection, the Secretary shall offer to enter into
an agreement with an independent, nonpartisan, science-based
research organization--
``(A) to conduct a comprehensive independent evaluation of
the effectiveness of the team nutrition initiative and the team
nutrition network under this section; and
``(B) to identify best practices by schools in--
``(i) improving student understanding of healthful
eating patterns;
``(ii) engaging students in regular physical activity
and improving physical fitness;
``(iii) reducing diabetes and obesity rates in school
children;
``(iv) improving student nutrition behaviors on the
school campus, including by increasing healthier meal
choices by students, as evidenced by greater inclusion of
fruits, vegetables, whole grains, and lean dairy and
protein in meal and snack selections;
``(v) providing training and technical assistance for
food service professionals resulting in the availability of
healthy meals that appeal to ethnic and cultural taste
preferences;
``(vi) linking meals programs to nutrition education
activities;
``(vii) successfully involving parents, school
administrators, the private sector, public health agencies,
nonprofit organizations, and other community partners;
``(viii) ensuring the adequacy of time to eat during
school meal periods; and
``(ix) successfully generating revenue through the sale
of food items, while providing healthy options to students
through vending, student stores, and other venues.
``(2) Report.--Not later than 3 years after funds are made
available to carry out this subsection, the Secretary shall submit
to the Committee on Education and the Workforce of the House of
Representatives, the Committee on Health, Education, Labor, and
Pensions and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report describing the findings of the independent
evaluation.
``(l) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(b) Conforming Amendment.--Section 21(c)(2)(E) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769b-1(c)(2)(E)) is
amended by striking ``, including'' and all that follows through
``1966''.
SEC. 206. REVIEW OF BEST PRACTICES IN THE BREAKFAST PROGRAM.
(a) Review.--
(1) In general.--Subject to the availability of funds under
subsection (c), the Secretary of Agriculture shall enter into an
agreement with a research organization to collect and disseminate a
review of best practices to assist school food authorities in
addressing existing impediments at the State and local level that
hinder the growth of the school breakfast program under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(2) Recommendations.--The review shall describe model breakfast
programs and offer recommendations for schools to overcome
obstacles, including--
(A) the length of the school day;
(B) bus schedules; and
(C) potential increases in costs at the State and local
level.
(b) Dissemination.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(1) make the review required under subsection (a) available to
school food authorities via the Internet, including recommendations
to improve participation in the school breakfast program; and
(2) transmit to Committee on Education and the Workforce of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a copy of the review.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
TITLE III--COMMODITY DISTRIBUTION PROGRAMS
SEC. 301. COMMODITY DISTRIBUTION PROGRAMS.
Section 15 of the Commodity Distribution Reform Act and WIC
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended
by striking subsection (e).
TITLE IV--MISCELLANEOUS
SEC. 401. SENSE OF CONGRESS REGARDING EFFORTS TO PREVENT AND REDUCE
CHILDHOOD OBESITY.
(a) Findings.--Congress finds that--
(1) childhood obesity in the United States has reached critical
proportions;
(2) childhood obesity is associated with numerous health risks
and the incidence of chronic disease later in life;
(3) the prevention of obesity among children yields significant
benefits in terms of preventing disease and the health care costs
associated with such diseases;
(4) further scientific and medical data on the prevalence of
childhood obesity is necessary in order to inform efforts to fight
childhood obesity; and
(5) the State of Arkansas--
(A) is the first State in the United States to have a
comprehensive statewide initiative to combat and prevent
childhood obesity by--
(i) annually measuring the body mass index of public
school children in the State from kindergarten through 12th
grade; and
(ii) providing that information to the parents of each
child with associated information about the health
implications of the body mass index of the child;
(B) maintains, analyzes, and reports on annual and
longitudinal body mass index data for the public school
children in the State; and
(C) develops and implements appropriate interventions at
the community and school level to address obesity, the risk of
obesity, and the condition of being overweight, including
efforts to encourage healthy eating habits and increased
physical activity.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the State of Arkansas, in partnership with the University
of Arkansas for Medical Sciences and the Arkansas Center for Health
Improvement, should be commended for its leadership in combating
childhood obesity; and
(2) the efforts of the State of Arkansas to implement a
statewide initiative to combat and prevent childhood obesity are
exemplary and could serve as a model for States across the United
States.
TITLE V--IMPLEMENTATION
SEC. 501. GUIDANCE AND REGULATIONS.
(a) Guidance.--As soon as practicable after the date of enactment
of this Act, the Secretary of Agriculture shall issue guidance to
implement the amendments made by sections 102, 103, 104, 105, 106, 107,
111, 116, 119(c), 119(g), 120, 126(b), 126(c), 201, 203(a)(3), 203(b),
203(c)(5), 203(e)(3), 203(e)(4), 203(e)(5), 203(e)(6), 203(e)(7),
203(e)(10), and 203(h)(1).
(b) Interim Final Regulations.--The Secretary may promulgate
interim final regulations to implement the amendments described in
subsection (a).
(c) Regulations.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall promulgate final regulations
to implement the amendments described in subsection (a).
SEC. 502. EFFECTIVE DATES.
(a) In General.--Except as otherwise provided in this Act, this Act
and the amendments made by this Act take effect on the date of
enactment of this Act.
(b) Special Effective Dates.--
(1) July 1, 2004.--The amendments made by sections 106, 107,
126(c), and 201 take effect on July 1, 2004.
(2) October 1, 2004.--The amendments made by sections 119(c),
119(g), 202(a), 203(a), 203(b), 203(c)(1), 203(c)(5), 203(e)(5),
203(e)(8), 203(e)(10), 203(e)(13), 203(f), 203(h)(1), and 203(h)(2)
take effect on October 1, 2004.
(3) January 1, 2005.--The amendments made by sections 116(f)(1)
and 116(f)(3) take effect on January 1, 2005.
(4) July 1, 2005.--The amendments made by sections 102, 104,
105, 111, and 126(b) take effect on July 1, 2005.
(5) October 1, 2005.--The amendments made by sections 116(d)
and 203(e)(9) take effect on October 1, 2005.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.