[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2248 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2248

To amend the Richard B. Russell National School Lunch Act and the Child 
 Nutrition Act of 1966 to increase the number of children eligible for 
 free school meals, with a phased-in transition period, with an offset.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2014

  Mr. Franken introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Richard B. Russell National School Lunch Act and the Child 
 Nutrition Act of 1966 to increase the number of children eligible for 
 free school meals, with a phased-in transition period, with an offset.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expand School Meals Act of 2014''.

                       TITLE I--TRANSITION PERIOD

SEC. 101. PHASED-IN INCREASE IN STATES PROVIDING FREE SCHOOL LUNCHES 
              AND BREAKFASTS.

    Section 11 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1759a) is amended by adding at the end the following:
    ``(h) Phased-In Increase in States Providing Free School Lunches 
and Breakfasts.--
            ``(1) In general.--The Secretary shall expand the service 
        of free lunches and breakfasts provided at schools 
        participating in the school lunch program under this Act and 
        the school breakfast program under section 4 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773) in States selected by 
        the Secretary in accordance with paragraph (2).
            ``(2) Selection of states.--
                    ``(A) In general.--A State that elects to 
                participate in the program under this subsection shall 
                submit to the Secretary an application at such time, in 
                such manner, and containing such information as the 
                Secretary may require.
                    ``(B) First year.--For the school year beginning 
                July 1, 2014, the Secretary shall enroll in the program 
                under this subsection any State that, as of April 10, 
                2014, has enacted a law under which, in compliance with 
                this Act and the Child Nutrition Act of 1966 (42 U.S.C. 
                1771 et seq.) (as appropriate), school food authorities 
                in the State provide free breakfasts or lunches in lieu 
                of reduced-price breakfasts or lunches in schools 
                statewide.
                    ``(C) Subsequent years.--
                            ``(i) In general.--The Secretary shall 
                        enroll in the program under this subsection not 
                        more than--
                                    ``(I) for the school year beginning 
                                July 1, 2015, 5 additional States;
                                    ``(II) for the school year 
                                beginning July 1, 2016, 5 additional 
                                States;
                                    ``(III) for the school year 
                                beginning July 1, 2017, 5 additional 
                                States;
                                    ``(IV) for the school year 
                                beginning July 1, 2018, 5 additional 
                                States; and
                                    ``(V) for the school year beginning 
                                July 1, 2019, 5 additional States.
                            ``(ii) Priority.--In enrolling States, the 
                        Secretary shall give priority to States that--
                                    ``(I) have enacted a law described 
                                in subparagraph (B) after April 10, 
                                2014;
                                    ``(II) have school food authorities 
                                that provide free breakfasts or lunches 
                                in lieu of reduced-price breakfasts or 
                                lunches in schools in the State; or
                                    ``(III) have high levels of 
                                participation in the free or reduced-
                                price lunch program, as determined by 
                                the Secretary.
            ``(3) Income eligibility.--For any State enrolled in the 
        program under this subsection, the income guidelines for 
        determining eligibility for free lunches or breakfasts in the 
        State 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).
            ``(4) Relationship to universal meal service in high 
        poverty areas.--A school for which a local educational agency 
        has elected to receive special assistance payments under 
        subsection (a)(1)(F) may not receive any additional payments 
        under this subsection.''.

SEC. 102. PERIOD OF EFFECTIVENESS.

    The amendments made by section 101 shall be effective only during 
the period beginning on the date of enactment of this Act and ending on 
June 30, 2019.

                       TITLE II--PERMANENT CHANGE

SEC. 201. FREE LUNCH ELIGIBILITY.

    (a) In General.--Section 9(b)(1) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)(1)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (D);
            (2) by striking ``(b)(1)(A) Not'' and inserting the 
        following:
    ``(b) Income Eligibility Guidelines.--
            ``(1) Establishment.--
                    ``(A) In general.--Not'';
            (3) in subparagraph (A)--
                    (A) in the first sentence, by striking ``and 
                reduced price'';
                    (B) in the second sentence--
                            (i) by striking ``The income guidelines for 
                        determining eligibility for free lunches shall 
                        be 130 percent'' and inserting the following:
                    ``(B) Free lunches.--The income guidelines for 
                determining eligibility for free lunches shall be 185 
                percent''; and
                            (ii) by striking ``subparagraph (B)'' and 
                        inserting ``subparagraph (D)'';
                    (C) by striking the third sentence; and
                    (D) in the last sentence, by striking ``The 
                Office'' and inserting the following:
                    ``(C) Frequency of revisions.--The Office''; and
            (4) in subparagraph (D) (as redesignated by paragraph 
        (1))--
                    (A) by striking ``(D) The'' and inserting the 
                following:
                    ``(D) Amount of revisions.--The''; and
                    (B) by striking ``subparagraph (A) of this 
                paragraph'' and inserting ``subparagraph (C)''.
    (b) Conforming Amendments.--
            (1) Section 9 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1758) is amended--
                    (A) in subsection (b)--
                            (i) by striking ``free and reduced price'' 
                        each place it appears (other than paragraph 
                        (7)) and inserting ``free'';
                            (ii) by striking ``free or reduced price'' 
                        each place it appears and inserting ``free'';
                            (iii) in paragraph (2)(B)(i), by striking 
                        ``, and shall contain'' and all that follows 
                        through ``or reduced price lunches'';
                            (iv) in paragraph (3)--
                                    (I) in subparagraph (E)(iii), by 
                                striking ``free or reduced-price'' each 
                                place it appears and inserting 
                                ``free''; and
                                    (II) in subparagraph (F)--
                                            (aa) in clause (i), by 
                                        striking ``Subject to clauses 
                                        (ii) and (iii),'' and inserting 
                                        ``Subject to clause (ii),'';
                                            (bb) in clause (ii)(II), by 
                                        striking ``133 percent'' both 
                                        places it appears in items (aa) 
                                        and (bb) and inserting ``185 
                                        percent'';
                                            (cc) by striking clause 
                                        (iii); and
                                            (dd) by redesignating 
                                        clauses (iv) and (v) as clauses 
                                        (iii) and (iv), respectively;
                            (v) in paragraph (7)--
                                    (I) in the paragraph heading, by 
                                striking ``and reduced price'' and 
                                inserting ``meals'';
                                    (II) by striking ``and reduced 
                                price policy'' each place it appears 
                                and inserting ``meals policy''; and
                                    (III) in subparagraph (B), by 
                                striking ``and reduced price meals'' 
                                and inserting ``meals'';
                            (vi) in paragraph (9)--
                                    (I) in the paragraph heading, by 
                                striking ``and reduced price'';
                                    (II) by striking subparagraph (B); 
                                and
                                    (III) by redesignating subparagraph 
                                (C) as subparagraph (B);
                            (vii) in paragraph (10), by striking ``or a 
                        reduced price lunch''; and
                            (viii) in paragraph (11), in the first 
                        sentence, by striking ``or reduced price 
                        lunches'';
                    (B) in subsection (c), in the third sentence, by 
                striking ``or at a reduced cost'';
                    (C) in subsection (d), by striking ``or reduced 
                price'' each place it appears; and
                    (D) in subsection (e), by striking ``, reduced 
                price,''.
            (2) Section 11 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1759a) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A)--
                                            (aa) by striking ``the sum 
                                        of''; and
                                            (bb) by striking ``and the 
                                        product obtained by 
                                        multiplying'' and all that 
                                        follows through ``for such 
                                        fiscal year'';
                                    (II) in subparagraph (B)--
                                            (aa) by striking ``or 
                                        reduced price lunches'' the 
                                        first place it appears;
                                            (bb) by striking ``or 
                                        reduced price lunches, as the 
                                        case may be,''; and
                                            (cc) by striking ``and 
                                        reduced price lunches'';
                                    (III) in subparagraph (C)--
                                            (aa) in clause (ii), by 
                                        striking ``or reduced price 
                                        lunches or breakfasts'' each 
                                        place it appears; and
                                            (bb) in clause (iii), by 
                                        striking ``or reduced price''; 
                                        and
                                    (IV) in subparagraph (D), by 
                                striking ``and reduced price lunches'' 
                                each place it appears in clauses (iii) 
                                and (iv); and
                            (ii) in paragraph (2), by striking ``and 
                        the special assistance factor for reduced 
                        price'' and all that follows through ``free 
                        lunches'';
                    (B) in subsection (b), in the first sentence, by 
                striking ``and reduced price'';
                    (C) in subsection (d), by striking ``and the 
                average number of children who received reduced price 
                lunches'' each place it appears paragraphs (1) and (2); 
                and
                    (D) in subsection (e)--
                            (i) in the second sentence, by striking ``, 
                        and shall serve meals at a reduced price'' and 
                        all that follows through ``such section''; and
                            (ii) in the third sentence, by striking 
                        ``or reduced priced''.
            (3) Section 12(l)(4) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1760(l)(4)) is amended--
                    (A) in subparagraph (C), by striking ``and reduced 
                price'';
                    (B) by striking subparagraph (D);
                    (C) in subparagraph (H), by striking ``or reduced 
                price''; and
                    (D) by redesignating subparagraphs (E) through (M) 
                as subparagraphs (D) through (L), respectively.
            (4) Section 13 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1761) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(A)(i), by striking 
                        ``or reduced price'' each place it appears; and
                            (ii) in paragraph (5), by striking ``or 
                        reduced price''; and
                    (B) in subsection (f)(3), by striking ``or reduced 
                price''.
            (5) Section 17 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1766) is amended--
                    (A) in subsection (a)(2)(B)(i), by striking ``or 
                reduced price'';
                    (B) in subsection (c)--
                            (i) in paragraph (1), by inserting ``(as 
                        calculated on the day before the date of 
                        enactment of the Expand School Meals Act of 
                        2014)'' after ``lunches, reduced price 
                        lunches'';
                            (ii) in paragraph (2), by inserting ``(as 
                        calculated on the day before the date of 
                        enactment of the Expand School Meals Act of 
                        2014)'' after ``breakfasts, reduced price 
                        breakfasts''; and
                            (iii) by striking paragraph (4) and 
                        inserting the following:
            ``(4) Determinations.--
                    ``(A) Free meals.--Determinations with regard to 
                eligibility for free meals and supplements shall be 
                made in accordance with the income eligibility 
                guidelines for free lunches under section 9.
                    ``(B) Reduced price meals.--Determinations with 
                regard to eligibility for reduced price meals and 
                supplements shall be made in accordance with the income 
                eligibility guidelines for reduced price lunches under 
                section 9, as in effect on the day before the date of 
                enactment of the Expand School Meals Act of 2014.'';
                    (C) in subsection (f)(3)--
                            (i) by striking ``or reduced price'' each 
                        place it appears; and
                            (ii) in subparagraph (A)(iii)(II)(aa), in 
                        the item heading, by striking ``or reduced 
                        price''; and
                    (D) in subsection (r)(1)(B), by striking ``or 
                reduced price''.
            (6) Section 17A(c)(1) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1766a(c)(1)) is amended in the 
        matter preceding subparagraph (A) by striking ``or reduced 
        price''.
            (7) Section 18 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1769) is amended by striking subsection 
        (j).
            (8) Section 19 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1769a) is amended--
                    (A) by striking ``or reduced price'' each place it 
                appears; and
                    (B) by striking ``and reduced price'' each place it 
                appears.
            (9) Section 20(b) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1769b(b)) is amended by striking ``and 
        reduced price''.
            (10) Section 21(a)(1)(B) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1769b-1(a)(1)(B)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``or reduced price''; and
                    (B) in clause (iii), by striking ``and reduced 
                price''.
    (c) Transition Rules.--The Secretary of Agriculture shall carry out 
the amendments made by paragraphs (2) and (8) of subsection (b) in 
accordance with transition rules established by the Secretary.

SEC. 202. FREE BREAKFAST ELIGIBILITY.

    (a) In General.--Section 4 of the Child Nutrition Act of 1966 (42 
U.S.C. 1773) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(i)(II)--
                                    (I) by striking ``, for reduced 
                                price breakfasts,'';
                                    (II) by striking ``or reduced 
                                price''; and
                                    (III) by striking ``clause (B) of 
                                this paragraph'' and inserting 
                                ``subparagraph (B)'';
                            (ii) in subparagraph (B)--
                                    (I) in the third sentence, by 
                                striking ``or reduced price''; and
                                    (II) by striking the second 
                                sentence;
                            (iii) by striking subparagraph (C);
                            (iv) by redesignating subparagraphs (D) and 
                        (E) as subparagraphs (C) and (D), respectively; 
                        and
                            (v) in subparagraph (D) (as so 
                        redesignated)--
                                    (I) in the subparagraph heading, by 
                                striking ``and reduced price'' and 
                                inserting ``meals'';
                                    (II) by striking ``and reduced 
                                price policy'' each place it appears 
                                and inserting ``meals policy''; and
                                    (III) by striking ``and reduced 
                                price meals'' and inserting ``meals''; 
                                and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``or 
                        reduced price''; and
                            (ii) by striking subparagraph (C); and
            (2) in subsections (d)(1)(A) and (e)(1)(A), by striking 
        ``or at a reduced price'' each place it appears.
    (b) Conforming Amendments.--
            (1) Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1776) is amended--
                    (A) in subsection (e)(2)(B)(ii), by striking ``or 
                reduced price'';
                    (B) in subsection (g)(2)(B)(i)(I), by striking 
                ``and reduced price''; and
                    (C) in subsection (i), by striking ``and reduced 
                price'' each place it appears in paragraphs (2)(B)(iii) 
                and (3)(B)(i).
            (2) Section 17(d)(2)(A)(i) of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786(d)(2)(A)(i)) is amended by striking ``and 
        reduced price''.
            (3) Section 20(b) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1789(b)) is amended by striking ``and reduced-price''.
            (4) Section 23(d)(2) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1793(d)(2)) is amended by striking ``or reduced price''.

SEC. 203. PERIOD OF EFFECTIVENESS.

    The amendments made by this title shall be effective beginning on 
July 1, 2019.

                           TITLE III--OFFSET

SEC. 301. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

    (a) Disallowance of Deduction.--
            (1) In general.--Section 162(g) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively,
                    (B) by striking ``If'' and inserting:
            ``(1) Treble damages.--If'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Punitive damages.--No deduction shall be allowed 
        under this chapter for any amount paid or incurred for punitive 
        damages in connection with any judgment in, or settlement of, 
        any action. This paragraph shall not apply to punitive damages 
        described in section 104(c).''.
            (2) Conforming amendment.--The heading for section 162(g) 
        of such Code is amended by inserting ``or Punitive Damages'' 
        after ``Laws''.
    (b) Inclusion in Income of Punitive Damages Paid by Insurer or 
Otherwise.--
            (1) In general.--Part II of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR OTHERWISE.

    ``Gross income shall include any amount paid to or on behalf of a 
taxpayer as insurance or otherwise by reason of the taxpayer's 
liability (or agreement) to pay punitive damages.''.
            (2) Reporting requirements.--Section 6041 of such Code is 
        amended by adding at the end the following new subsection:
    ``(h) Section To Apply to Punitive Damages Compensation.--This 
section shall apply to payments by a person to or on behalf of any 
corporation, individual, partnership, or other entity, as insurance or 
otherwise, by reason of such corporation, individual, partnership, or 
entity's liability (or agreement) to pay punitive damages.''.
            (3) Conforming amendment.--The table of sections for part 
        II of subchapter B of chapter 1 of such Code is amended by 
        adding at the end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to damages paid or incurred on or after the date of the enactment 
of this Act.
                                 <all>