[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2507 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  2d Session
                                S. 2507

_______________________________________________________________________

                                 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.

            Passed the Senate June 23, 2004.

            Attest:

                                                             Secretary.
108th CONGRESS

  2d Session

                                S. 2507

_______________________________________________________________________

                                 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.