[Congressional Record Volume 144, Number 75 (Thursday, June 11, 1998)]
[Senate]
[Pages S6199-S6204]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mr. Leahy and Mr. Johnson):
  S. 2166. A bill to amend the 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 extend certain authorities contained in such 
Acts through fiscal year 2002, and for other purposes; to the Committee 
on Agriculture, Nutrition, and Forestry.


       CHILD NUTRITION AND WIC REAUTHORIZATION AMENDMENTS OF 1998

 Mr. HARKIN. Mr. President, I am introducing today, at the 
request of the Clinton Administration, the Child Nutrition and WIC 
Reauthorization Amendments of 1998. I am grateful to be joined in the 
introduction of this bill by Senator Leahy, the Ranking Member of the 
Subcommittee on Research, Nutrition, and General Legislation, and by 
Senator Johnson. In my years serving on the Committee on Agriculture, 
Nutrition, and Forestry, and now as its Ranking Member, I have always 
placed a very high value on the child nutrition programs, including the 
Special Supplemental Nutrition Program for Women, Infants and Children 
(WIC). These programs have been critical in helping to meet the 
nutritional needs of millions of our nation's children.
  This bill is the first child nutrition reauthorization bill sent to 
Congress by an Administration in two decades. It is a very commendable 
effort, with many positive features, that we will be relying upon 
substantially as we fashion a child nutrition bill in the coming weeks 
in the Senate Committee on Agriculture, Nutrition, and Forestry and 
ultimately in conference. In addition to reauthorizing those programs 
that are expiring, the bill makes a number of improvements throughout 
the child nutrition programs. It is designed to be cost-neutral over 
the next five years, to simplify and streamline program operations, to 
reduce impediments to participation by eligible individuals, to reach 
certain children needing additional nutritional assistance, to 
strengthen program integrity and to enhance the nutrition provided by 
the programs.
  Earlier this year, I joined Chairman Lugar, Senator McConnell and 
Senator Leahy in introducing a measure, S. 1581, that would simply 
reauthorize the child nutrition programs for the next five years. That 
bill was recognized as a starting point for a careful review of the 
child nutrition programs leading to the development of a sound, well-
crafted and bipartisan reauthorization bill. I believe there is broad 
support for improving and modifying these programs to meet changing 
needs and demands within the overall spending limitations that we are 
committed to working within.
  One of the more important features of the bill is new authority for 
nutrition assistance in after-school programs through the Child and 
Adult Care Food Program for at risk youths between the ages of 12 and 
18. We know too well that the hours just after school are full of 
opportunities for teenagers to get into trouble, whether it involves 
crime, drug use or teen pregnancy. The availability of nutrition 
assistance can help to support organized after-school activities that 
are healthy and constructive alternatives to what might otherwise occur 
in those risky after-school hours.
  There are also provisions in the bill designed to improve the 
nutrition provided by the programs, including an emphasis on 
establishing adequate time for kids to eat school lunches in an 
atmosphere conducive to good nutrition and an authorization of 
Nutrition Education and Training grants based on $0.50 a child each 
year with a minimum of $75,000 per state.
  There are also provisions in the bill to improve access to the Summer 
Food Service Program by increasing the number of sites and the number 
of children that can be served by non-profit sponsors. Statistics 
continue to show that far fewer low income children are served in the 
Summer Food Service Program than during the school year in the National 
School Lunch Program, especially in rural areas. The provisions in this 
bill are designed to help address this gap.
  The bill also reauthorizes the WIC Program. Under Secretary Shirley 
Watkins was absolutely correct when she said at a recent Agriculture 
Committee Hearing that, ``WIC works.'' No other Federal-state program 
has the proven cost-effectiveness of WIC, which has been shown in study 
after study. This bill is designed to build upon the success of the 
current WIC program with improvements in program management and 
integrity.
  While I support a very high proportion of the provisions of this 
bill, I do not necessarily support every detail of it. I will also 
mention some of the areas in which I hope the final bill will take more 
substantial steps than are included in this bill. In my view, more 
should be done to increase participation in the School Breakfast 
Program, especially among low-income children, and in the Summer Food 
Service Program. I would also prefer further strengthening of after-
school and child care nutrition assistance. And additional steps should 
be taken to improve integrity and accountability in the WIC program 
while continuing the progress toward full participation.
  I look forward to working with my Congressional colleagues, the 
Administration and the entire child nutrition community, to design a 
final bill having broad bipartisan support.
  I ask unanimous consent that the text of the bill be printed in full 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2166

       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 Amendments of 1998''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 101. Technical amendments to commodity provisions.
Sec. 102. Availability of recovered funds for management activity.
Sec. 103. Elimination of administration of programs by regional 
              offices.
Sec. 104. Requirement for health and safety inspections.
Sec. 105. Elimination of food and nutrition projects and establishment 
              of an adequate meal service period.

[[Page S6200]]

Sec. 106. Buy American.
Sec. 107. Summer food service program for children.
Sec. 108. Commodity distribution program.
Sec. 109. Child and adult care food program.
Sec. 110. Transfer of homeless assistance programs to the child and 
              adult care food program.
Sec. 111. Elimination of pilot projects.
Sec. 112. Training and technical assistance.
Sec. 113. Food service management institute.
Sec. 114. Compliance and accountability.
Sec. 115. Information clearinghouse.
Sec. 116. Refocusing of effort to help accommodate the special dietary 
              needs of individuals with disabilities.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

Sec. 201. Elimination of administration of programs by regional 
              offices.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants, 
              and children.
Sec. 204. Nutrition education and training.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301. Commodity distribution program reforms.
Sec. 302. Food distribution.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

     SEC. 101. TECHNICAL AMENDMENTS TO COMMODITY PROVISIONS.

       (a) In General.--Section 6 of the National School Lunch Act 
     (42 U.S.C. 1755) is amended--
       (1) by striking subsections (c) and (d); and
       (2) by redesignating subsections (e), (f), and (g) as 
     subsections (c), (d), and (e), respectively.
       (b) Conforming Amendments.--The National School Lunch Act 
     is amended by striking ``section 6(e)'' each place it appears 
     in sections 14(f), 16(a), and 17(h)(1)(B) (42 U.S.C. 
     1762a(f), 1765(a), 1766(h)(1)(B)) and inserting ``section 
     6(c)''.

     SEC. 102. AVAILABILITY OF RECOVERED FUNDS FOR MANAGEMENT 
                   ACTIVITY.

       Section 8 of the National School Lunch Act (42 U.S.C. 1757) 
     is amended by adding at the end the following:
       ``(h) Retention and Use of Recovered Program Funds.--
       ``(1) Retention.--A State agency may retain up to 50 
     percent of any program funds recovered as a result of an 
     audit or review conducted by the State agency of school food 
     authorities, institutions, and service institutions 
     participating in food assistance programs authorized under 
     this Act or section 3 or 4 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1772, 1773).
       ``(2) Use.--Funds retained by a State agency under this 
     subsection shall be used by the State agency for allowable 
     program costs to improve the management and operation of 
     programs described in paragraph (1) within the State, 
     including the cost of providing funds to school food 
     authorities, institutions, and service institutions 
     participating in the programs.''.

     SEC. 103. ELIMINATION OF ADMINISTRATION OF PROGRAMS BY 
                   REGIONAL OFFICES.

       (a) Matching Requirement.--Section 7(b) of the National 
     School Lunch Act (42 U.S.C. 1756(b)) is amended by striking 
     the second sentence.
       (b) Disbursement to Schools by the Secretary.--Section 10 
     of the National School Lunch Act (42 U.S.C. 1759) is amended 
     to read as follows:

     ``SEC. 10. DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

       ``(a) Authority To Administer Programs.--
       ``(1) In general.--Except as provided in paragraph (3), 
     until September 30, 2000, the Secretary shall withhold funds 
     payable to a State agency under this Act and disburse the 
     funds directly to school food authorities, institutions, and 
     service institutions within the State for the purposes 
     authorized by this Act to the extent that the Secretary has 
     so withheld and disbursed the funds continuously since 
     October 1, 1980.
       ``(2) Use of funds.--Any funds withheld and disbursed by 
     the Secretary under paragraph (1) shall be used for the same 
     purposes and be subject to the same conditions as apply to 
     disbursing funds made available to States under this Act.
       ``(3) State administration.--If the Secretary is 
     administering (in whole or in part) any program authorized 
     under this Act in a State, the State may, on request to the 
     Secretary, assume administrative responsibility for the 
     program at any time before October 1, 2000.
       ``(b) Provision of Training and Technical Assistance.--The 
     Secretary shall provide a State agency that assumes 
     administrative responsibility for a program from the 
     Secretary on or before October 1, 2000, with training and 
     technical assistance to allow for an efficient and effective 
     transfer of the responsibility.''.
       (c) Conforming Amendment.--Section 11(a)(1)(A) of the 
     National School Lunch Act (42 U.S.C. 1759a(a)(1)(A)) is 
     amended by striking ``Except as provided in section 10 of 
     this Act, in'' and inserting ``In''.

     SEC. 104. REQUIREMENT FOR HEALTH AND SAFETY INSPECTIONS.

       Section 9 of the National School Lunch Act (42 U.S.C. 1758) 
     is amended by adding at the end the following:
       ``(h) Health and Safety Inspections.--A school 
     participating in the school lunch program authorized under 
     this Act or the school breakfast program authorized under 
     section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) 
     in which meals are prepared on site shall, at least twice 
     during each school year, obtain an inspection that indicates 
     that food service operations of the school meet State and 
     local health and safety standards.''.

     SEC. 105. ELIMINATION OF FOOD AND NUTRITION PROJECTS AND 
                   ESTABLISHMENT OF AN ADEQUATE MEAL SERVICE 
                   PERIOD.

       Section 12 of the National School Lunch Act (42 U.S.C. 
     1760) is amended by striking subsection (m) and inserting the 
     following:
       ``(m) Length of Meal Service Period and Food Service 
     Environment.--A school participating in the school lunch 
     program authorized under this Act or the school breakfast 
     program authorized under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773) shall, to the maximum extent 
     practicable, establish meal service periods that provide 
     children with adequate time to fully consume their meals in 
     an environment that is conducive to eating the meals.''.

     SEC. 106. BUY AMERICAN.

       Section 12 of the National School Lunch Act (42 U.S.C. 
     1760) (as amended by section 105) is amended by adding at the 
     end the following:
       ``(n) Buy American.--
       ``(1) In general.--The Secretary shall require that a 
     school purchase, to the maximum extent practicable, food 
     products that are produced in the United States.
       ``(2) Limitations.--Paragraph (1) shall apply only to--
       ``(A) a school located in the contiguous United States; and
       ``(B) a purchase of a food product for the school lunch 
     program authorized under this Act or the school breakfast 
     program authorized under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).''.

     SEC. 107. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       (a) Adjustments to Reimbursement Rates.--Section 12 of the 
     National School Lunch Act (42 U.S.C. 1760) is amended by 
     striking subsection (f) and inserting the following:
       ``(f) Adjustments to Reimbursement Rates.--In providing 
     assistance for breakfasts, lunches, suppers, and supplements 
     served in Alaska, Hawaii, Guam, American Samoa, Puerto Rico, 
     the Virgin Islands, and the Commonwealth of the Northern 
     Mariana Islands, the Secretary may establish appropriate 
     adjustments for each such State to the national average 
     payment rates prescribed under sections 4, 11, 13 and 17 of 
     this Act and section 4 of the Child Nutrition Act of 1966 (42 
     U.S.C. 1773) to reflect the differences between the costs of 
     providing meals in those States and the costs of providing 
     meals in all other States.''.
       (b) Establishment of Site Limitation.--Section 13(a)(7)(B) 
     of the National School Lunch Act (42 U.S.C. 1761(a)(7)(B)) is 
     amended by striking clause (i) and inserting the following:
       ``(i) operate--
       ``(I) not more than 25 sites, with not more than 300 
     children being served at any 1 site; or
       ``(II) with a waiver granted by the State agency under 
     standards developed by the Secretary, with not more than 500 
     children being served at any 1 site;''.
       (c) Elimination of Indication of Interest Requirement, 
     Removal of Meal Contracting Restrictions, and Vendor 
     Registration Requirements.--Section 13 of the National School 
     Lunch Act (42 U.S.C. 1761) is amended--
       (1) in subsection (a)(7)(B)--
       (A) by striking clauses (ii) and (iii); and
       (B) by redesignating clauses (iv) through (vii) as clauses 
     (ii) through (v) respectively; and
       (2) in subsection (l)--
       (A) in paragraph (1)--
       (i) in the first sentence--

       (I) by striking ``(other than private nonprofit 
     organizations eligible under subsection (a)(7))''; and
       (II) by striking ``only with food service management 
     companies registered with the State in which they operate'' 
     and inserting ``with food service management companies''; and

       (ii) by striking the last sentence;
       (B) in paragraph (2)--
       (i) in the first sentence, by striking ``shall'' and 
     inserting ``may''; and
       (ii) by striking the second and third sentences;
       (C) by striking paragraph (3); and
       (D) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively.
       (d) Reauthorization of Summer Food Service Program.--
     Section 13(q) of the National School Lunch Act (42 U.S.C. 
     1761(q)) is amended by striking ``1998'' and inserting 
     ``2002''.

     SEC. 108. COMMODITY DISTRIBUTION PROGRAM.

       Section 14(a) of the National School Lunch Act (42 U.S.C. 
     1762a(a)) is amended by striking ``1998'' and inserting 
     ``2002''.

     SEC. 109. CHILD AND ADULT CARE FOOD PROGRAM.

       (a) Revision to Licensing and Alternate Approval for 
     Schools and Outside School Hours Child Care Centers.--Section 
     17(a) of the National School Lunch Act (42 U.S.C. 1766(a)) is 
     amended in the fifth sentence by striking paragraph (1) and 
     inserting the following:

[[Page S6201]]

       ``(1) each institution (other than a school or family or 
     group day care home sponsoring organization) and family or 
     group day care home shall--
       ``(A)(i) have Federal, State, or local licensing or 
     approval; or
       ``(ii) be complying with appropriate renewal procedures as 
     prescribed by the Secretary and not be the subject of 
     information possessed by the State indicating that the 
     license of the institution or home will not be renewed;
       ``(B) in any case in which Federal, State, or local 
     licensing or approval is not available--
       ``(i) receive funds under title XX of the Social Security 
     Act (42 U.S.C. 1397 et seq.);
       ``(ii) meet any alternate approval standards established by 
     a State or local government; or
       ``(iii) meet any alternate approval standards established 
     by the Secretary, after consultation with the Secretary of 
     Health and Human Services; or
       ``(C) in any case in which the institution provides care to 
     school children outside school hours and Federal, State, or 
     local licensing or approval is not required, meet State or 
     local health and safety standards; and''.
       (b) Reinstatement of Categorical Eligibility for Even Start 
     Program Participants.--Section 17(c)(6)(B) of the National 
     School Lunch Act (42 U.S.C. 1766(c)(6)(B)) is amended by 
     striking ``1997'' and inserting ``2002''.
       (c) Tax Exempt Status and Removal of Notification 
     Requirement for Incomplete Applications.--Section 17(d)(1) of 
     the National School Lunch Act (42 U.S.C. 1766(d)(1)) is 
     amended--
       (1) by inserting after the third sentence the following: 
     ``An institution moving toward compliance with the 
     requirement for tax exempt status shall be allowed to 
     participate in the child and adult care food program for a 
     period of not more than 180 days, except that a State agency 
     may grant a single extension of not to exceed an additional 
     90 days if the institution demonstrates, to the satisfaction 
     of the State agency, that the inability of the institution to 
     obtain tax exempt status within the 180-day period is due to 
     circumstances beyond the control of the institution.''; and
       (2) by striking the last sentence.
       (d) Distribution of Program Information.--Section 17(k) of 
     the National School Lunch Act (42 U.S.C. 1766(k)) is 
     amended--
       (1) by striking ``A State'' and inserting the following:
       ``(1) In general.--A State''; and
       (2) by adding at the end the following:
       ``(2) Distribution of program information.--
       ``(A) Definition of needy area.--In this paragraph, the 
     term `needy area' means a geographic area served by a school 
     enrolling elementary students in which at least 50 percent of 
     the total number of children enrolled are certified as 
     eligible to receive free or reduced price school meals under 
     this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.).
       ``(B) Information.--At least once every 2 years, each State 
     agency shall provide notification of the availability of the 
     program, the requirements for program participation, and the 
     application procedures to be followed under the program to 
     each nonparticipating institution or family or group day care 
     home that--
       ``(i) is located in a needy area within the State; and
       ``(ii)(I) has received Federal, State, or local licensing 
     or approval; or
       ``(II) receives funds under title XX of the Social Security 
     Act (42 U.S.C. 1397 et seq.).''.
       (e) Elimination of Audit Funds, Establishment of Management 
     Support Funding, Participation by At-Risk Child Care 
     Programs, and WIC Outreach.--Section 17 of the National 
     School Lunch Act (42 U.S.C. 1766) is amended--
       (1) by striking subsection (i);
       (2) by redesignating subsections (j) through (p) as 
     subsections (i) through (o), respectively; and
       (3) by adding at the end the following:
       ``(p) Management Funding.--
       ``(1) Technical and training assistance.--In addition to 
     the normal training and technical assistance provided to 
     State agencies under this section, the Secretary shall 
     provide training and technical assistance in order to assist 
     the State agencies in improving their program management and 
     oversight under this section.
       ``(2) Funding.--For fiscal year 1999 and each succeeding 
     fiscal year, the Secretary shall reserve to carry out 
     paragraph (1) \1/8\ of 1 percent of the amount made available 
     to carry out this section.
       ``(q) At-Risk Child Care.--
       ``(1) Definition of at-risk school child.--In this 
     subsection, the term `at-risk school child' means a child 
     who--
       ``(A) is not less than 12 nor more than 18 years of age; 
     and
       ``(B) lives in a geographical area served by a school 
     enrolling elementary students in which at least 50 percent of 
     the total number of children enrolled are certified as 
     eligible to receive free or reduced price school meals under 
     this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 
     et seq.).
       ``(2) Participation in child and adult care food program.--
     Subject to the other provisions of this subsection, an 
     institution that provides care to at-risk school children 
     during after-school hours, weekends, or holidays during the 
     regular school year may participate in the program authorized 
     under this section.
       ``(3) Administration.--Except as otherwise provided in this 
     subsection, the other provisions of this section apply to an 
     institution described in paragraph (2).
       ``(4) Supplement reimbursement.--
       ``(A) Limitations.--An institution may claim reimbursement 
     under this subsection only for--
       ``(i) a supplement served to at-risk school children during 
     after-school hours, weekends, or holidays during the regular 
     school year; and
       ``(ii) 1 supplement per child per day.
       ``(B) Rate.--A supplement shall be reimbursed under this 
     subsection at the rate established for a free supplement 
     under subsection (c)(3).
       ``(C) No charge.--A supplement claimed for reimbursement 
     under this subsection shall be served without charge.
       ``(r) Information Concerning the Special Supplemental 
     Nutrition Program for Women, Infants, and Children.--
       ``(1) In general.--The Secretary shall provide each State 
     agency administering a child and adult care food program 
     under this section with information concerning 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).
       ``(2) Requirements for state agencies.--A State agency 
     shall ensure that each participating child care center (other 
     than an institution providing care to school children outside 
     school hours)--
       ``(A) receives materials that include--
       ``(i) a basic explanation of the importance and benefits of 
     the special supplemental nutrition program for women, 
     infants, and children;
       ``(ii) the maximum State income eligibility standards, 
     according to family size, for the program; and
       ``(iii) information concerning how benefits under the 
     program may be obtained;
       ``(B) is provided updates of the information described in 
     subparagraph (A) at least annually; and
       ``(C) provides the information described in subparagraph 
     (A) to parents of enrolled children at least annually.''.
       (f) Permanent Authorization of Demonstration Project.--
     Section 17(o) of the National School Lunch Act (42 U.S.C. 
     1766(o)) (as redesignated by subsection (e)) is amended by 
     striking paragraphs (4) and (5).

     SEC. 110. TRANSFER OF HOMELESS ASSISTANCE PROGRAMS TO THE 
                   CHILD AND ADULT CARE FOOD PROGRAM.

       (a) Summer Food Service Program for Children.--Section 
     13(a)(3)(C) of the National School Lunch Act (42 U.S.C. 
     1761(a)(3)(C)) is amended--
       (1) in clause (i), by inserting ``or'' after the semicolon;
       (2) by striking clause (ii); and
       (3) by redesignating clause (iii) as clause (ii).
       (b) Child and Adult Care Food Program.--Section 17 of the 
     National School Lunch Act (as amended by section 109(e)) is 
     amended--
       (1) in the third sentence of subsection (a)--
       (A) by striking ``and public'' and inserting ``public''; 
     and
       (B) by inserting before the period at the following: ``, 
     and emergency shelters described in subsection (s)''; and
       (2) by adding at the end the following:
       ``(s) Participation by Emergency Shelters.--
       ``(1) Definition of emergency shelter.--In this subsection, 
     the term `emergency shelter' means a public or private 
     nonprofit emergency shelter (as defined in section 321 of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11351)), or a site operated by the shelter, that provides 
     food service to homeless children and their parents or 
     guardians.
       ``(2) Administration.--Except as otherwise provided in this 
     subsection, the other provisions of this section shall apply 
     to an emergency shelter that is participating in the program 
     authorized under this section.
       ``(3) Institution and site licensing.--Subsection (a)(1) 
     shall not apply to an emergency shelter.
       ``(4) Health and safety standards.--To be eligible to 
     participate in the program authorized under this section, an 
     emergency shelter shall comply with applicable State and 
     local health and safety standards.
       ``(5) Meal reimbursement.--
       ``(A) Limitations.--An emergency shelter may claim 
     reimbursement under this subsection only for--
       ``(i) a meal served to children who are not more than 12 
     years of age residing at the emergency shelter; and
       ``(ii) not more than 3 meals, or 2 meals and 1 supplement, 
     per child per day.
       ``(B) Rate.--A meal shall be reimbursed under this 
     subsection at the rate established for a free meal under 
     subsection (c).
       ``(C) No charge.--A meal claimed for reimbursement under 
     this subsection shall be served without charge.''.
       (c) Homeless Children Nutrition Program.--Section 17B of 
     the National School Lunch Act (42 U.S.C. 1766b) is repealed.

     SEC. 111. ELIMINATION OF PILOT PROJECTS.

       Section 18 of the National School Lunch Act (42 U.S.C. 
     1769) is amended by striking subsections (e) through (i).

[[Page S6202]]

     SEC. 112. TRAINING AND TECHNICAL ASSISTANCE.

       Section 21(e)(1) of the National School Lunch Act (42 
     U.S.C. 1769b-1(e)(1)) is amended by striking ``1998'' and 
     inserting ``2002''.

     SEC. 113. FOOD SERVICE MANAGEMENT INSTITUTE.

       Section 21(e)(2)(A) of the National School Lunch Act (42 
     U.S.C. 1769b-1(e)(2)(A)) is amended by striking ``and 
     $2,000,000 for fiscal year 1996'' and inserting ``$2,000,000 
     for each of fiscal years 1996 through 1998, and $3,000,000 
     for fiscal year 1999''.

     SEC. 114. COMPLIANCE AND ACCOUNTABILITY.

       Section 22(d) of the National School Lunch Act (42 U.S.C. 
     1769c(d)) is amended by striking ``1996'' and inserting 
     ``2002''.

     SEC. 115. INFORMATION CLEARINGHOUSE.

       Section 26 of the National School Lunch Act (42 U.S.C. 
     1769g) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``shall'' and inserting ``may'';
       (2) in subsection (b), by striking ``The'' and inserting 
     ``Except as provided in subsection (d), the''; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Noncompetitive Contracts.--Notwithstanding any other 
     provision of law, the Secretary may, on a noncompetitive 
     basis, enter into a contract for the services of any 
     organization with which the Secretary has previously entered 
     into a contract under this section, if the organization has 
     performed satisfactorily under the contract and meets the 
     requirements of this section.
       ``(e) Funding.--The Secretary may provide to the 
     organization selected under this section an amount not to 
     exceed $150,000 for each of fiscal years 1999 through 
     2002.''.

     SEC. 116. REFOCUSING OF EFFORT TO HELP ACCOMMODATE THE 
                   SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH 
                   DISABILITIES.

       Section 27 of the National School Lunch Act (42 U.S.C. 
     1769h) is amended to read as follows:

     ``SEC. 27. ACCOMMODATION OF SPECIAL DIETARY NEEDS OF 
                   INDIVIDUALS WITH DISABILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Covered program.--The term `covered program' means--
       ``(A) the school lunch program authorized under this Act;
       ``(B) the school breakfast program authorized under section 
     4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and
       ``(C) any other program authorized under this Act or the 
     Child Nutrition Act of 1966 (except section 17 of that Act) 
     that the Secretary determines is appropriate.
       ``(2) Eligible entity.--The term `eligible entity' means a 
     school food authority, institution, or service institution 
     that participates in a covered program.
       ``(3) Individuals with disabilities.--The term `individual 
     with disabilities' has the meaning given the term in section 
     7 of the Rehabilitation Act of 1973 (29 U.S.C. 706) for 
     purposes of title VII of that Act (29 U.S.C. 796 et seq.).
       ``(b) Activities.--The Secretary may carry out activities 
     to help accommodate the special dietary needs of individuals 
     with disabilities who are participating in a covered program, 
     including--
       ``(1) developing and disseminating to State agencies 
     guidance and technical assistance materials;
       ``(2) conducting training of State agencies and eligible 
     entities; and
       ``(3) issuing grants to State agencies and eligible 
     entities.''.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

     SEC. 201. ELIMINATION OF ADMINISTRATION OF PROGRAMS BY 
                   REGIONAL OFFICES.

       Section 5 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1774) is amended to read as follows:

     ``SEC. 5 DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

       ``(a) Authority To Administer Programs.--
       ``(1) In general.--Except as provided in paragraph (3), 
     until September 30, 2000, the Secretary shall withhold funds 
     payable to a State agency under this Act and disburse the 
     funds directly to school food authorities, institutions, and 
     service institutions within the State for the purposes 
     authorized by this Act to the extent that the Secretary has 
     so withheld and disbursed the funds continuously since 
     October 1, 1980.
       ``(2) Use of funds.--Any funds withheld and disbursed by 
     the Secretary under paragraph (1) shall be used for the same 
     purposes and be subject to the same conditions as apply to 
     disbursing funds made available to States under this Act.
       ``(3) State administration.--If the Secretary is 
     administering (in whole or in part) any program authorized 
     under this Act in a State, the State may, on request to the 
     Secretary, assume administrative responsibility for the 
     program at any time before October 1, 2000.
       ``(b) Provision of Training and Technical Assistance.--The 
     Secretary shall provide a State agency that assumes 
     administrative responsibility for a program from the 
     Secretary on or before October 1, 2000, with training and 
     technical assistance to allow for an efficient and effective 
     transfer of administrative responsibility.''.

     SEC. 202. STATE ADMINISTRATIVE EXPENSES.

       (a) Homeless Shelters.--Section 7(a)(5) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) Reallocation of funds.--
       ``(i) Return to secretary.--For each fiscal year, any 
     amounts appropriated that are not obligated or expended 
     during the fiscal year and are not carried over for the 
     succeeding fiscal year under subparagraph (A) shall be 
     returned to the Secretary.
       ``(ii) Reallocation by secretary.--The Secretary shall 
     allocate, for purposes of administrative costs, any remaining 
     amounts among States that demonstrate a need for the 
     amounts.''.
       (b) Elimination of Transfer Limitation.--Section 7(a) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) is 
     amended by striking paragraph (6) and inserting the 
     following:
       ``(6) Use of administrative funds.--Funds available to a 
     State under this subsection and under section 13(k)(1) of the 
     National School Lunch Act (42 U.S.C. 1761(k)(1)) may be used 
     by the State for the costs of administration of the programs 
     authorized under the National School Lunch Act (42 U.S.C. 
     1751 et seq.) or this Act (except for the programs authorized 
     under sections 17 and 21 of this Act) without regard to the 
     basis on which the funds were earned and allocated.''.
       (c) Reauthorization of Program.--Section 7(g) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1776(g)) is amended by 
     striking ``1998'' and inserting ``2002''.

     SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       (a) Additional Program Application Requirements.--Section 
     17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(d)(3)) is amended by adding at the end the following:
       ``(C) Physical presence.--An applicant shall be physically 
     present at each certification visit to receive program 
     benefits.
       ``(D) Income documentation.--An applicant shall provide 
     documentation of household income, or of participation in a 
     program described in clause (ii) or (iii) of paragraph 
     (2)(A), at certification to be determined to meet income 
     eligibility requirements for the program.
       ``(E) Verification.--The Secretary shall issue regulations 
     under this subsection prescribing when and how verification 
     of income shall be required.''.
       (b) Distribution of Nutrition Education Materials.--Section 
     17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(e)(3)) is amended--
       (1) by striking ``(3) The'' and inserting the following:
       ``(3) Nutrition education materials.--
       ``(A) In general.--The''; and
       (2) by adding at the end the following:
       ``(B) Sharing of materials with csfp.--The Secretary may 
     provide, in bulk quantity, nutrition education materials 
     (including materials promoting breastfeeding) developed with 
     funds made available for the program authorized under this 
     section to State agencies administering the commodity 
     supplemental food program authorized under sections 4(a) and 
     5 of the Agriculture and Consumer Protection Act of 1973 
     (Public Law 93-86; 7 U.S.C. 612c note) at no cost to that 
     program.''.
       (c) Reauthorization of Program.--Section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786) is amended in 
     subsections (g)(1) and (h)(2)(A) by striking ``1998'' each 
     place it appears and inserting ``2002''.
       (d) Infant Formula Procurement.--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:
       ``(iii) Competitive bidding system.--A State agency using a 
     competitive bidding system for infant formula shall award a 
     contract to the bidder offering the lowest net price unless 
     the State agency demonstrates to the satisfaction of the 
     Secretary that the weighted average retail price for 
     different brands of infant formula in the State does not vary 
     by more than 5 percent.''.
       (e) Infrastructure and Breastfeeding Support and 
     Promotion.--Section 17(h)(10)(A) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(h)(10)(A)) is amended by striking 
     ``1998'' and inserting ``2002''.
       (f) Spend-Forward Authority.--Section 17(i)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii)--
       (i) by inserting ``nutrition services and administration'' 
     after ``amount of''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(iii) with the prior approval of the Secretary, not more 
     than 4 percent of the amount of funds allocated to a State 
     agency for nutrition services and administration for a fiscal 
     year under this section may be expended by the State agency 
     during the subsequent fiscal year for the costs of developing 
     electronic benefit transfer.'';
       (2) in subparagraph (B), by striking ``subparagraph 
     (A)(ii)'' and inserting ``clauses (ii) and (iii) of 
     subparagraph (A)'';
       (3) by striking subparagraphs (D) through (G); and
       (4) by redesignating subparagraph (H) as subparagraph (D).
       (g) Farmers Market Nutrition Program.--
       (1) Matching funds requirement.--Section 17(m)(3) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended 
     by striking ``total'' each place it appears and inserting 
     ``administrative''.

[[Page S6203]]

       (2) Ranking criteria for state plans.--Section 17(m)(6) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is 
     amended--
       (A) by striking subparagraph (F); and
       (B) by redesignating subparagraph (G) as subparagraph (F).
       (3) Funding.--Section 17(m)(9)(A) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by striking 
     ``1998'' and inserting ``2002''.
       (h) Disqualification of Certain Vendors.--
       (1) In general.--Section 17 of the Child Nutrition Act of 
     1996 (42 U.S.C. 1786) is amended by adding at the end the 
     following:
       ``(o) Disqualification of Vendors Convicted of Trafficking 
     or Illegal Sales.--
       ``(1) In general.--Except as provided in paragraph (4), a 
     State agency shall permanently disqualify from participation 
     in the program authorized under this section a vendor 
     convicted of--
       ``(A) trafficking in food instruments (including any 
     voucher, draft, check, or access device (including an 
     electronic benefit transfer card or personal identification 
     number) issued in lieu of a food instrument under this 
     section); or
       ``(B) selling firearms, ammunition, explosives, or 
     controlled substances (as defined in section 102 of the 
     Controlled Substances Act (21 U.S.C. 802)) in exchange for 
     food instruments.
       ``(2) Notice of disqualification.--The State agency shall--
       ``(A) provide the vendor with notification of the 
     disqualification; and
       ``(B) make the disqualification effective on the date of 
     receipt of the notice of disqualification.
       ``(3) Prohibition of receipt of lost revenues.--A vendor 
     shall not be entitled to receive any compensation for 
     revenues lost as a result of disqualification under this 
     subsection.
       ``(4) Hardship exception in lieu of disqualification.--
       ``(A) In general.-- A State agency may permit a vendor 
     that, but for this paragraph, would be disqualified under 
     paragraph (1), to continue to redeem food instruments or 
     otherwise provide supplemental foods to participants if the 
     State agency determines, in its sole discretion according to 
     criteria established by the Secretary, that disqualification 
     of the vendor would cause hardship to participants in the 
     program authorized under this section.
       ``(B) Civil money penalty.--If a State agency authorizes a 
     vendor that, but for this paragraph, would be disqualified to 
     redeem food instruments or provide supplemental foods under 
     subparagraph (A), the State agency shall assess the vendor a 
     civil money penalty in lieu of disqualification.
       ``(C) Amount.--The State agency shall determine the amount 
     of the civil penalty according to criteria established by the 
     Secretary.''.
       (2) Regulations.--The amendment made by paragraph (1) shall 
     take effect on the date on which the Secretary of Agriculture 
     issues a final regulation that includes the criteria for--
       (A) making hardship determinations; and
       (B) determining the amount of a civil money penalty in lieu 
     of disqualification.

     SEC. 204. NUTRITION EDUCATION AND TRAINING.

       Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1788(i)) is amended--
       (1) by striking the subsection heading and all that follows 
     through paragraph (3)(A) and inserting the following:
       ``(i) Authorization of Appropriations.--
       ``(1) In general.--
       ``(A) Funding.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section for each 
     of fiscal years 1997 through 2002.''; and
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (2) and (3), respectively.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

     SEC. 301. COMMODITY DISTRIBUTION PROGRAM REFORMS.

       (a) Commodity Specifications.--Section 3(a) of the 
     Commodity Distribution Reform Act and WIC Amendments of 1987 
     (Public Law 100-237; 7 U.S.C. 612c note) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Applicability.--Paragraph (1) shall apply to--
       ``(A) the commodity supplemental food program authorized 
     under sections 4(a) and 5 of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c 
     note);
       ``(B) the food distribution program on Indian reservations 
     authorized under section 4(b) of the Food Stamp Act of 1977 
     (7 U.S.C. 2013(b)); and
       ``(C) the school lunch program authorized under the 
     National School Lunch Act (42 U.S.C. 1751 et seq.).''.
       (b) Customer Acceptability Information.--Section 3(f) of 
     the Commodity Distribution Reform Act and WIC Amendments of 
     1987 (Public Law 100-237; 7 U.S.C. 612c note) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Customer acceptability information.--
       ``(A) In general.--The Secretary shall ensure that 
     information with respect to the types and forms of 
     commodities that are most useful is collected from recipient 
     agencies participating in programs described in subsection 
     (a)(2).
       ``(B) Frequency.--The information shall be collected at 
     least once every 2 years.
       ``(C) Additional submissions.--The Secretary--
       ``(i) may require submission of information described in 
     subparagraph (A) from recipient agencies participating in 
     other domestic food assistance programs administered by the 
     Secretary; and
       ``(ii) shall provide the recipient agencies a means for 
     voluntarily submitting customer acceptability information.''.

     SEC. 302. FOOD DISTRIBUTION.

       (a) In General.--Sections 8 through 12 of the Commodity 
     Distribution Reform Act and WIC Amendments of 1987 (Public 
     Law 100-237; 7 U.S.C. 612c note) are amended to read as 
     follows:

     ``SEC. 8. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.

       ``(a) Transfer.--Subject to subsection (b), the Secretary 
     may transfer any commodities purchased for a domestic food 
     assistance program administered by the Secretary to any other 
     domestic food assistance program administered by the 
     Secretary if the transfer is necessary to ensure that the 
     commodities will be used while the commodities are still 
     suitable for human consumption.
       ``(b) Reimbursement.--The Secretary shall, to the maximum 
     extent practicable, provide reimbursement for the value of 
     the commodities transferred under subsection (a) from 
     accounts available for the purchase of commodities under the 
     program receiving the commodities.
       ``(c) Crediting.--Any reimbursement made under subsection 
     (b) shall--
       ``(1) be credited to the accounts that incurred the costs 
     when the transferred commodities were originally purchased; 
     and
       ``(2) be available for the purchase of commodities with the 
     same limitations as are provided for appropriated funds for 
     the reimbursed accounts for the fiscal year in which the 
     transfer takes place.

     ``SEC. 9. AUTHORITY TO RESOLVE CLAIMS.

       ``(a) In General.--The Secretary may determine the amount 
     of, settle, and adjust all or part of a claim arising under a 
     domestic food assistance program administered by the 
     Secretary.
       ``(b) Waivers.--The Secretary may waive a claim described 
     in subsection (a) if the Secretary determines that a waiver 
     would serve the purposes of the program.
       ``(c) Authority of the Attorney General.--Nothing in this 
     section diminishes the authority of the Attorney General 
     under section 516 of title 28, United States Code, or any 
     other provision of law, to supervise and conduct litigation 
     on behalf of the United States.

     ``SEC. 10. PAYMENT OF COSTS ASSOCIATED WITH MANAGEMENT OF 
                   COMMODITIES THAT POSE A HEALTH OR SAFETY 
                   HAZARD.

       ``(a) In General.--The Secretary may use funds available to 
     carry out section 32 of the Act of August 24, 1935 (49 Stat. 
     774, chapter 641; 7 U.S.C. 612c), that are not otherwise 
     committed, for the purpose of reimbursing States for State 
     and local costs associated with commodities distributed under 
     any domestic food assistance program administered by the 
     Secretary if the Secretary determines that the commodities 
     pose a health or safety hazard.
       ``(b) Allowable Costs.--The costs--
       ``(1) may include costs for storage, transportation, 
     processing, and destruction of the hazardous commodities; and
       ``(2) shall be subject to the approval of the Secretary.
       ``(c) Replacement Commodities.--
       ``(1) In general.--The Secretary may use funds described in 
     subsection (a) for the purpose of purchasing additional 
     commodities if the purchase will expedite replacement of the 
     hazardous commodities.
       ``(2) Recovery.--Use of funds under paragraph (1) shall not 
     restrict the Secretary from recovering funds or services from 
     a supplier or other entity regarding the hazardous 
     commodities.
       ``(d) Crediting of Recovered Funds.--Funds recovered from a 
     supplier or other entity regarding the hazardous commodities 
     shall--
       ``(1) be credited to the account available to carry out 
     section 32 of the Act of August 24, 1935 (49 Stat. 774, 
     chapter 641; 7 U.S.C. 612c), to the extent the funds 
     represent expenditures from that account under subsections 
     (a) and (c); and
       ``(2) remain available to carry out the purposes of section 
     32 of that Act until expended.

     ``SEC. 11. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL 
                   SOURCES.

       ``(a) In General.--The Secretary may accept donations of 
     commodities from any Federal agency, including commodities of 
     another Federal agency determined to be excess personal 
     property pursuant to section 202(d) of the Federal Property 
     and Administrative Services Act of 1949 (40 U.S.C. 483(d)).
       ``(b) Use.--The Secretary may donate the commodities 
     received under subsection (a) to States for distribution 
     through any domestic food assistance program administered by 
     the Secretary.
       ``(c) Payment.--Notwithstanding section 202(d) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 483(d)), the Secretary shall not be required to make 
     any payment in connection with the commodities received under 
     subsection (a).''.
       (b) Effect on Prior Amendments.--The amendment made by 
     subsection (a) does not affect the amendments made by 
     sections 8 through 12 of the Commodity Distribution Reform 
     Act and WIC Amendments of 1987 (Public Law 100-237; 7 U.S.C. 
     612c note), as in effect on September 30, 1998.

[[Page S6204]]

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       Except as provided in section 203(h)(2), this Act and the 
     amendments made by this Act take effect on October 1, 
     1998.
                                 ______