[Senate Document 104-21]
[From the U.S. Government Publishing Office]



                                     

104th Congress, 2d Session - - - - - - - - - - - Senate Document 104-21


 
                     APPROPRIATIONS REQUEST (EC 3272)

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

      A REQUEST TO CONSIDER AN AMENDMENT TO THE FISCAL YEAR 1997 
        APPROPRIATIONS REQUEST FOR THE DEPARTMENT OF AGRICULTURE




                  July 9, 1996.--Ordered to be printed


                         LETTER OF TRANSMITTAL

                              ----------                              

                                     The White House, July 8, 1996.
The President of the Senate:
    Sir: I ask the Congress to consider an amendment to the FY 
1997 appropriations request for the Department of Agriculture. 
This proposal would amend pending language for the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
in order to improve cost controls.
    This amendment would not affect the proposed budget totals.
    The details of this action are set forth in the enclosed 
letter from the Acting Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                William J. Clinton.
    Enclosure.


                          LETTER OF SUBMITTAL

                              ----------                              

                 Executive Office of the President,
                           Office of Management and Budget,
                                      Washington, DC, July 8, 1996.
The President,
The White House.
    Submitted for your consideration is an amendment to your FY 
1997 appropriations request for the Department of Agriculture's 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC).
    The proposed language amendment would ensure maximum cost 
savings from infant formula rebates by promoting the 
competitive contracting of infant formula based on the lowest 
net wholesale price. The proposed budget totals would not be 
affected by this amendment.
    I have carefully reviewed this proposal and am satisfied 
that it is necessary at this time. Therefore, I join the 
Secretary of Agriculture in recommending that it be transmitted 
to Congress.
            Sincerely,
                                              Jacob J. Lew,
                                                   Acting Director.
    Enclosure.

    Agency: Department of Agriculture.
    Bureau: Food and Consumer Service.
    Heading: Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).
    Fiscal year 1997 Budget Appendix Page: 241.
    Fiscal year 1997 Pending Request: $3,880,000,000.
    Proposed Amendment: Language.
    Revised Request: $3,880,000,000.
    (In the appropriations language under the above heading, 
before the period at the end of the last proviso, insert the 
following: and contracts signed in fiscal year 1997 to purchase 
infant formula shall only be awarded to a company offering the 
lowest net price (as defined by section 17(b)(20) of such Act), 
unless the State agency demonstrates to the satisfaction of the 
Secretary that the weighted average retail price for different 
brands of infant formula in the State does not vary by more 
than 5 percent).
    This proposal would ensure maximum cost savings from infant 
formula rebates in the WIC program by promoting the competitive 
contracting of infant formula based on the lowest net wholesale 
price. A second option, defined in regulations, is available to 
States that show a lack of variation in infant formula prices, 
taking into account State WIC formula sales trends.
    The proposed budget totals would not be affected by this 
language amendment.

                                
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