[Congressional Record Volume 144, Number 124 (Thursday, September 17, 1998)]
[Senate]
[Pages S10537-S10544]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CHILD NUTRITION AND WIC REAUTHORIZATION AMENDMENTS OF 1998
Mr. SANTORUM. Mr. President, I ask unanimous consent that the Senate
proceed to the consideration of Calendar No. 462, S. 2286.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
A bill (S. 2286) 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 those Acts through
fiscal year 2003, and for other purposes.
The PRESIDING OFFICER. Is there objection to the immediate
consideration of the bill?
There being no objection, the Senate proceeded to consider the bill.
Mr. SANTORUM. Mr. President, I find it quite ironic that I am, at the
closing here, passing this bill about which I have strong reservations
because I was not able to place an amendment in and have an amendment
debated on this bill. But this is the child nutrition bill, and I
understand a lot of very important things need to be done.
I very much would have liked to have had the opportunity to debate
something that all the nutrition groups, all of the public interest
groups, as well as a lot of manufacturers who use peanuts, would love
to have seen, and that is an opportunity for us not to have the Child
Nutrition Program paying an exorbitant amount of money, more than they
need to, robbing children of the ability to get food in other places
because we pay such high prices for peanuts in this country for food
programs.
It would be nice if we would have been able to debate that amendment,
but we can't.
Mr. DASCHLE. Mr. President, is it my pleasure today to join my
colleagues on the Senate Agriculture, Nutrition, and Forestry Committee
in supporting S. 2286, the Child Nutrition and WIC Reauthorization
Amendments of 1998. This important bill expands subsidies for snacks in
after-school programs, establishes a research program for universal
school breakfasts, and makes several administrative changes in the
school food service programs, in the Women, Infants and Children (WIC)
Program and in the Child and Adult Care Food Program (CACFP). I believe
that we have developed a good bill that represents real progress for
child nutrition and school food services and I am pleased it has
received strong bipartisan support.
I'd like to take a few moments to elaborate on a few aspects of the
bill that are particularly important to South Dakotans and to all
Americans. I am a cosponsor of the Schools for Achievement Act, which
would give all children, regardless of income, access to a healthy,
free breakfast. While we were unable to find consensus on a way to fund
a universal breakfast program, S. 2286 establishes a multi-year free
breakfast study. The study will be conducted at several sites, both
rural and urban, and will rigorously evaluate impact of free
breakfasts. The purpose of authorizing this study is to test whether
providing breakfast at school helps children perform better
scholastically and improves overall levels of child nutrition. I am
confident the school breakfast project will justify consideration of
the Schools for Achievement Act.
For Congress to have access to the benefits of this study, however,
we need to ensure that it will be funded. Funding for the school
breakfast research project is uncertain in the House companion bill,
because H.R. 3874 includes only authorizing language and relies on the
Appropriations Committee to fund the project. As we all are aware,
funds available to the Appropriations Committee have been greatly
constrained by last year's Balanced Budget Agreement. If funding were
unavailable, this research would be delayed, and the intentions of the
authorizers would be undermined. We in the Senate have determined that
[[Page S10538]]
this study should be conducted and have fully paid for it in the
context of the Senate bill. I hope the conferees will agree to this
position and agree to provide mandatory funding for this project.
I would also like to acknowledge that this is a study only. Nothing
in this provision would automatically lead to full implementation of a
free breakfast program. Congress will need to revisit this issue to
determine whether it would be in the best interest of the Nation to
take such a step. I believe this is a prudent way to proceed.
The liberalized administrative guidelines and expanded funding for
after-school snacks are also welcome ideas in South Dakota, where our
state government recently made a $700,000 commitment to promoting and
increasing after-school care. I strongly support that effort, as well
as efforts to improve access to after-school programs nationwide. The
legislation before the Senate today is another small step toward better
care for our nation's school-age children.
Finally, I would like to reassert my support for the programs being
reauthorized by this legislation. Federal nutrition programs have a
long, successful, track record of providing food, establishing
nutrition standards, and collecting health information that have had a
dramatic impact on reducing hunger in our country. School lunches are
served to 35 million children around the nation. Seven million children
receive school breakfasts. Teachers, parents, child care providers and
school cooks are educated on the importance of good nutrition and about
the necessary components of a healthy diet. Homeless children are
served, commodities are distributed, and thousands of school children
receive milk. Given the demonstrated effect of improved nutrition on
cognition and behavior, the impact of our investment in the nutritional
needs of our nation has been profound. I commend the Committee's
efforts and look forward to working with my colleagues to enact final
legislation to renew these very important child nutrition programs
before the year is over.
Mr. SANTORUM. Mr. President, I ask unanimous consent that the bill,
S. 2286, be considered read a third time, and the Senate then proceed
to the consideration of calendar No. 480, H.R. 3874, the House-passed
companion measure. I further ask consent that all after the enacting
clause be stricken and the text of S. 2286 be inserted in lieu thereof,
the bill be read a third time and passed, and the motion to reconsider
be laid upon the table. I further ask consent that the Senate insist on
its amendment, request a conference with the House, and the Chair be
authorized to appoint conferees on the part of the Senate. I finally
ask that S. 2286 be placed back on the calendar.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (H.R. 3874), as amended, was read the third time and passed,
as follows:
Strike out all after the enacting clause and insert:
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. Waiver of requirement for weighted averages for nutrient
analysis.
Sec. 103. Requirement for food safety inspections.
Sec. 104. Elimination of administration of programs by regional
offices.
Sec. 105. Special assistance.
Sec. 106. Adjustments to payment rates.
Sec. 107. Adjustments to reimbursement rates.
Sec. 108. Criminal penalties.
Sec. 109. Food and nutrition projects.
Sec. 110. Establishment of an adequate meal service period.
Sec. 111. Buy American.
Sec. 112. Procurement contracts.
Sec. 113. Summer food service program for children.
Sec. 114. Commodity distribution program.
Sec. 115. Child and adult care food program.
Sec. 116. Transfer of homeless assistance programs to child and adult
care food program.
Sec. 117. Meal supplements for children in afterschool care.
Sec. 118. Pilot projects.
Sec. 119. Breakfast pilot projects.
Sec. 120. Training and technical assistance.
Sec. 121. Food service management institute.
Sec. 122. Compliance and accountability.
Sec. 123. Information clearinghouse.
Sec. 124. 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. WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR
NUTRIENT ANALYSIS.
Section 9(f) of the National School Lunch Act (42 U.S.C.
1758(f)) is amended by adding at the end the following:
``(5) Waiver of requirement for weighted averages for
nutrient analysis.--During the period ending on September 30,
2003, the Secretary shall not require the use of weighted
averages for nutrient analysis of menu items and foods
offered or served as part of a reimbursable meal under the
school lunch or school breakfast program.''.
SEC. 103. REQUIREMENT FOR FOOD 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) Food Safety Inspections.--
``(1) In general.--Except as provided in paragraph (2), 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, at least once during each school year, obtain a
food safety inspection conducted by a State or local
governmental agency responsible for food safety inspections.
``(2) Exception.--Paragraph (1) shall not apply to a school
if a food safety inspection of the school is required by a
State or local authority.''.
SEC. 104. ELIMINATION OF ADMINISTRATION OF PROGRAMS BY
REGIONAL OFFICES.
(a) In General.--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),
during the period determined under subsection (c), the
Secretary shall withhold funds payable to a State 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 during the period determined under
subsection (c).
``(b) Provision of Training and Technical Assistance.--
During the period determined under subsection (c), the
Secretary shall provide a State that assumes administrative
responsibility for a program from the Secretary with training
and technical assistance to allow for an efficient and
effective transfer of the responsibility.
``(c) Period.--
``(1) In general.--Except as provided in paragraph (2),
this section shall apply during the period beginning on
October 1, 1998, and ending on September 30, 2001.
``(2) Extension.--The Secretary may extend the period
described in paragraph (1) that applies to a program
administered by the Secretary for a State, for a period not
to exceed 2 years, if the State--
``(A) demonstrates to the Secretary that the State will not
be able to assume administrative responsibility for the
program during the period described in paragraph (1); and
``(B) submits a plan to the Secretary that describes when
and how the State will assume administrative responsibility
for the program.''.
(b) Conforming Amendments.--
(1) Section 7(b) of the National School Lunch Act (42
U.S.C. 1756(b)) is amended in the second sentence by striking
``No'' and inserting ``During the period determined under
section 10(c), no''.
[[Page S10539]]
(2) Section 11(a)(1)(A) of the National School Lunch Act
(42 U.S.C. 1759a(a)(1)(A)) is amended by inserting after
``section 10 of this Act'' the following: ``(during the
period determined under section 10(c))''.
SEC. 105. SPECIAL ASSISTANCE.
Section 11(a)(1) of the National School Lunch Act (42
U.S.C. 1759a(a)(1)) is amended--
(1) in subparagraph (C)--
(A) in clause (i)(I), by striking ``3 successive school
years'' each place it appears and inserting ``4 successive
school years''; and
(B) in clauses (ii) and (iii), by striking ``3-school-year
period'' each place it appears and inserting ``4-school-year
period''; and
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by striking ``3-school-year period'' each place it
appears and inserting ``4-school-year period''; and
(ii) by striking ``2 school years'' and inserting ``4
school years'';
(B) in clause (ii)--
(i) by striking the first sentence; and
(ii) by striking ``5-school-year period'' each place it
appears and inserting ``4-school-year period''; and
(C) in clause (iii), by striking ``5-school-year period''
and inserting ``4-school-year period''.
SEC. 106. ADJUSTMENTS TO PAYMENT RATES.
(a) In General.--Section 11(a)(3)(B) of the National School
Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
(1) by striking ``(B) The annual'' and inserting the
following:
``(B) Computation of adjustment.--
``(i) In general.--The annual'';
(2) by striking ``Each annual'' and inserting the
following:
``(ii) Basis.--Each annual'';
(3) by striking ``The adjustments'' and inserting the
following:
``(iii) Rounding.--
``(I) Through april 30, 1999.--For the period ending April
30, 1999, the adjustments''; and
(4) by adding at the end the following:
``(II) May 1, 1999, through june 30, 1999.--For the period
beginning on May 1, 1999, and ending on June 30, 1999, the
national average payment rates for meals and supplements
shall be adjusted to the nearest lower cent increment and
shall be based on the unrounded amounts used to calculate the
rates in effect on July 1, 1998.
``(III) July 1, 1999, and thereafter.--On July 1, 1999, and
on each subsequent July 1, the national average payment rates
for meals and supplements shall be adjusted to the nearest
lower cent increment and shall be based on the unrounded
amounts for the preceding 12-month period.''.
(b) Conforming Amendments.--Section 4(b) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)) is amended--
(1) in the second sentence of paragraph (1)(B), by striking
``adjusted to the nearest one-fourth cent,''; and
(2) in paragraph (2)(B)(ii), by striking ``to the nearest
one-fourth cent''.
SEC. 107. 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.''.
SEC. 108. CRIMINAL PENALTIES.
Section 12(g) of the National School Lunch Act (42 U.S.C.
1760(g)) is amended by striking ``$10,000'' and inserting
``$25,000''.
SEC. 109. FOOD AND NUTRITION PROJECTS.
Section 12(m) of the National School Lunch Act (42 U.S.C.
1760(m)) is amended by striking ``1998'' each place it
appears and inserting ``2003''.
SEC. 110. ESTABLISHMENT OF AN ADEQUATE MEAL SERVICE PERIOD.
Section 12 of the National School Lunch Act (42 U.S.C.
1760) is amended by adding at the end the following:
``(n) 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) is encouraged to 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. 111. BUY AMERICAN.
Section 12 of the National School Lunch Act (42 U.S.C.
1760) (as amended by section 110) is amended by adding at the
end the following:
``(o) Buy American.--
``(1) Definition of domestic commodity or product.--In this
subsection, the term `domestic commodity or product' means--
``(A) an agricultural commodity that is produced in the
United States; and
``(B) a food product that is processed in the United States
substantially using agricultural commodities that are
produced in the United States.
``(2) Requirement.--Subject to paragraph (3), the Secretary
shall require that a school purchase, to the maximum extent
practicable, domestic commodities or products.
``(3) Limitations.--Paragraph (2) shall apply only to--
``(A) a school located in the contiguous United States; and
``(B) a purchase of an agricultural commodity or 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. 112. PROCUREMENT CONTRACTS.
Section 12 of the National School Lunch Act (42 U.S.C.
1760) (as amended by section 111) is amended by adding at the
end the following:
``(p) Procurement Contracts.--In acquiring a good or
service using funds provided under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), a State,
State agency, or school may enter into a contract with a
person that has provided assistance to the State, State
agency, or school in drafting contract specifications.''.
SEC. 113. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) 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;''.
(b) 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.
(c) 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
``2003''.
SEC. 114. 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
``2003''.
SEC. 115. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Afterschool Care.--Section 17(a) of the National School
Lunch Act (42 U.S.C. 1766(a)) is amended in the fourth
sentence by striking ``Reimbursement'' and inserting ``Except
as provided in subsection (r), reimbursement''.
(b) 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 sixth sentence by striking paragraph (1) and
inserting the following:
``(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''.
(c) Automatic Eligibility.--Section 17(c) of the National
School Lunch Act (42 U.S.C. 1766(c)) is amended by striking
paragraph (6).
(d) Periodic Site Visits.--Section 17(d) of the National
School Lunch Act (42 U.S.C. 1766(d)) is amended--
(1) in the second sentence of paragraph (1), by inserting
after ``if it'' the following: ``has been visited by a State
agency prior to approval and it''; and
(2) in paragraph (2)(A)--
(A) by striking ``that allows'' and inserting ``that--
``(i) allows'';
(B) by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following:
``(ii) requires periodic site visits to private
institutions that the State agency determines have a high
probability of program abuse.''.
(e) Tax Exempt Status and Removal of Notification
Requirement for Incomplete Applications.--Section 17(d)(1) of
the National
[[Page S10540]]
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.
(f) Demonstration Projects.--Section 17(p) of the National
School Lunch Act (42 U.S.C. 1766(p)) is amended--
(1) in paragraph (1), by striking ``appropriated or
otherwise made available for purposes of carrying out this
section'' and inserting ``made available under paragraph
(4)'';
(2) by striking paragraphs (4) and (5); and
(3) by adding at the end the following:
``(4) Funding.--Out of any moneys in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
provide to the Secretary such sums as are necessary to carry
out this subsection for each of fiscal years 1999 through
2003. The Secretary shall be entitled to receive the funds
and shall accept the funds.''.
(g) Management Support, 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 by adding at the
end the following:
``(q) Management Support.--
``(1) Technical and training assistance.--In addition to
the training and technical assistance that is provided to
State agencies under other provisions of this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 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 each of fiscal years 1999 through 2003,
the Secretary shall reserve to carry out paragraph (1)
$1,000,000 of the amounts made available to carry out this
section.
``(r) Program for At-Risk School Children.--
``(1) Definition of at-risk school child.--In this
subsection, the term `at-risk school child' means a school
child who--
``(A) is not 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 supplements under a program
organized primarily to provide 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 under a program organized
primarily to provide care 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.--Supplements shall be reimbursed under this
subsection at the rate established for free supplements under
subsection (c)(3).
``(C) No charge.--A supplement claimed for reimbursement
under this subsection shall be served without charge.
``(s) 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 family and group day
care home and 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 periodic updates of the information
described in subparagraph (A); and
``(C) provides the information described in subparagraph
(A) to parents of enrolled children at enrollment.''.
SEC. 116. TRANSFER OF HOMELESS ASSISTANCE PROGRAMS TO 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 115(g)) 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 (t)''; and
(2) by adding at the end the following:
``(t) 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 or supplement reimbursement.--
``(A) Limitations.--An emergency shelter may claim
reimbursement under this subsection only for--
``(i) a meal or supplement 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 or supplement shall be reimbursed under
this subsection at the rate established for a free meal or
supplement under subsection (c).
``(C) No charge.--A meal or supplement 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. 117. MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL CARE.
(a) General Authority.--Section 17A(a) of the National
School Lunch Act (42 U.S.C. 1766a(a)) is amended--
(1) in paragraph (1), by striking ``supplements to'' and
inserting ``supplements under a program organized primarily
to provide care for''; and
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
``(C) operate afterschool programs with an educational or
enrichment purpose.''.
(b) Eligible Children.--Section 17A(b) of the National
School Lunch Act (42 U.S.C. 1766a(b)) is amended--
(1) in paragraph (1), by striking ``or'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(3) in the case of children who live 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.), who are not more than 18
years of age.''.
(c) Reimbursement.--Section 17A(c) of the National School
Lunch Act (42 U.S.C. 1766a(c)) is amended--
(1) by striking ``(c) Reimbursement.--For'' and inserting
the following:
``(c) Reimbursement.--
``(1) In general.--Except as provided in paragraph (2),
for''; and
(2) by adding at the end the following:
``(2) Low-income areas.--A supplement provided under this
section to a child described in subsection (b)(3) shall be--
``(A) reimbursed at the rate at which free supplements are
reimbursed under section 17(c); and
``(B) served without charge.''.
SEC. 118. PILOT PROJECTS.
Section 18 of the National School Lunch Act (42 U.S.C.
1769) is amended--
(1) in subsection (c)--
(A) in paragraphs (1) and (7)(A), by striking ``1998'' each
place it appears and inserting ``2003''; and
(B) in paragraph (7)--
(i) by striking ``(A)''; and
(ii) by striking subparagraph (B); and
(2) by striking subsections (e), (g), (h), and (i).
SEC. 119. BREAKFAST PILOT PROJECTS.
Section 18 of the National School Lunch Act (42 U.S.C.
1769) (as amended by section 118(2)) is amended by inserting
after subsection (d) the following:
``(e) Breakfast Pilot Projects.--
``(1) In general.--During each of the school years
beginning July 1, 1999, July 1, 2000, and July 1, 2001, the
Secretary shall make grants to State agencies to conduct
pilot projects in elementary schools under the jurisdiction
of not more than 6 school food authorities approved by the
Secretary--
``(A) to reduce paperwork and simplify meal counting
requirements; and
``(B) to evaluate the effect of providing free breakfasts
to elementary school children, without regard to family
income, on participation, academic achievement, attendance
and tardiness, and dietary intake over the course of a day.
``(2) Nominations.--A State agency that desires to receive
a grant under this subsection shall submit to the Secretary
nominations of school food authorities to participate in a
pilot project under this subsection.
[[Page S10541]]
``(3) Approval.--The Secretary shall approve for
participation in pilot projects under this subsection
elementary schools under the jurisdiction of not more than 6
school food authorities selected so as to--
``(A) provide for an equitable distribution of pilot
projects among urban and rural elementary schools;
``(B) provide for an equitable distribution of pilot
projects among elementary schools of varying family income
levels; and
``(C) permit the evaluation of pilot projects to
distinguish the effects of the pilot projects from other
factors, such as changes or differences in educational
policies or program.
``(4) Grants to school food authorities.--A State receiving
a grant under paragraph (1) shall make grants to school food
authorities to conduct the pilot projects described in
paragraph (1).
``(5) Duration of pilot projects.--A school food authority
receiving amounts under a grant to conduct a pilot project
described in paragraph (1) shall conduct the project for the
3-year period beginning July 1, 1999.
``(6) Waiver authority.--The Secretary may waive the
requirements of this Act and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.) relating to counting of meals,
applications for eligibility, and other requirements that
would preclude the Secretary from making a grant to conduct a
pilot project under paragraph (1).
``(7) Requirements for participation in pilot project.--To
be eligible to participate in a pilot project under this
subsection--
``(A) a State--
``(i) shall submit an application to the Secretary at such
time and in such manner as the Secretary shall establish to
meet criteria the Secretary has established to enable a valid
evaluation to be conducted; and
``(ii) shall provide such information relating to the
operation and results of the pilot project as the Secretary
may reasonably require; and
``(B) a school food authority--
``(i) shall agree to serve all breakfasts at no charge to
all children in participating elementary schools;
``(ii) shall not have a history of violations of this Act
or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
``(iii) shall have, under the jurisdiction of the school
food authority, a sufficient number of elementary schools
that are not participating in the pilot projects to permit an
evaluation of the effects of the pilot projects; and
``(iv) shall meet all other requirements that the Secretary
may reasonably require.
``(8) Reimbursement rates.--A school food authority
conducting a pilot project under this subsection shall
receive reimbursement for each breakfast served under the
pilot project in an amount that is equal to--
``(A) in the case of a school food authority that is
determined by the Secretary not to be in severe need, the
rate for free breakfasts established under section 4(b)(1)(B)
of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B));
and
``(B) in the case of a school food authority that is
determined by the Secretary to be in severe need, the rate
for free breakfasts established under section 4(b)(2)(B) of
the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(2)(B)).
``(9) Evaluation of pilot projects.--
``(A) In general.--The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
conduct an evaluation of the pilot projects conducted by the
school food authorities selected for participation.
``(B) Content.--The evaluation shall include--
``(i) a determination of the effect of participation in the
pilot project on the academic achievement, attendance and
tardiness, and dietary intake over the course of a day of
participating children that is not attributable to changes in
educational policies and practices; and
``(ii) a determination of the effect that participation by
elementary schools in the pilot project has on the proportion
of students who eat breakfast and on the paperwork required
to be completed by the schools.
``(C) Report.--On completion of the pilot projects and 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 containing the results of the evaluation
of the pilot projects required under subparagraph (A).
``(10) Federal reimbursement.--
``(A) In general.--Except as provided in subparagraph (B),
a school conducting a pilot project under this subsection
shall receive a total Federal reimbursement under the school
breakfast program in an amount that is equal to the total
Federal reimbursement for the school for the prior year under
the program (adjusted for inflation and fluctuations in
enrollment).
``(B) Excess needs.--Funds required for the pilot project
in excess of the level of reimbursement received by the
school for the prior year (adjusted for inflation and
fluctuations in enrollment) may be taken from any non-Federal
source or from amounts provided under this subsection.
``(11) Funding.--
``(A) In general.--Out of any moneys in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
provide to the Secretary such sums as are necessary to carry
out this subsection, but not more than $20,000,000. The
Secretary shall be entitled to receive the funds and shall
accept the funds.
``(B) Evaluation.--Of the amounts made available under
subparagraph (A), not more than $12,000,000 shall be made
available to carry out paragraph (9).''.
SEC. 120. 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 ``2003''.
SEC. 121. 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 each subsequent fiscal
year,'' and inserting ``$2,000,000 for each of fiscal years
1996 through 1998, and $3,000,000 for fiscal year 1999 and
each subsequent fiscal year''.
SEC. 122. 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
``2003''.
SEC. 123. INFORMATION CLEARINGHOUSE.
Section 26(d) of the National School Lunch Act (42 U.S.C.
1769g(d)) is amended in the first sentence by striking ``and
$100,000 for fiscal year 1998'' and inserting ``$100,000 for
fiscal year 1998, and $166,000 for each of fiscal years 1999
through 2003''.
SEC. 124. 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 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),
during the period determined under subsection (c), the
Secretary shall withhold funds payable to a State 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 during the period determined under
subsection (c).
``(b) Provision of Training and Technical Assistance.--
During the period determined under subsection (c), the
Secretary shall provide a State that assumes administrative
responsibility for a program from the Secretary with training
and technical assistance to allow for an efficient and
effective transfer of administrative responsibility.
``(c) Period.--
``(1) In general.--Except as provided in paragraph (2),
this section shall apply during the period beginning on
October 1, 1998, and ending on September 30, 2001.
``(2) Extension.--The Secretary may extend the period
described in paragraph (1) that applies to a program
administered by the Secretary for a State, for a period not
to exceed 2 years, if the State--
``(A) demonstrates to the Secretary that the State will not
be able to assume administrative responsibility for the
program during the period described in paragraph (1); and
``(B) submits a plan to the Secretary that describes when
and how the State will assume administrative responsibility
for the program.''.
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.
[[Page S10542]]
``(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 ``2003''.
SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
(a) Certification Period for Infants.--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) Certification period for infants.--
``(i) In general.--Except as provided in clause (ii), the
procedures prescribed under subparagraph (A) shall include a
requirement that a family that includes an infant shall not
be certified to meet income eligibility criteria for the
program for more than 180 days after the date of any
certification.
``(ii) Presumptively eligible families.--Clause (i) shall
not apply to a family with a member who is an individual
described in clause (ii) or (iii) of paragraph (2)(A).''.
(b) Additional Requirements for Applicants.--Section
17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)) (as amended by subsection (a)) is amended by
adding at the end the following:
``(D) Physical presence.--
``(i) In general.--Except as provided in clause (ii), each
applicant to the program shall be physically present at each
certification determination to determine eligibility under
the program.
``(ii) Waivers.--A local agency may waive the requirement
of clause (i) with respect to an applicant if the agency
determines that the requirement, as applied to the applicant,
would--
``(I) conflict with the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.);
``(II) present a barrier to participation of a child
(including an infant) who--
``(aa) was present at the initial certification visit; and
``(bb) is receiving ongoing health care from a provider
other than the local agency; or
``(III) present a barrier to participation of a child
(including an infant) who--
``(aa) was present at the initial certification visit;
``(bb) was present at a certification determination within
the 1-year period ending on the date of the certification
determination described in clause (i); and
``(cc) has 1 or more parents who work.
``(E) Income documentation.--
``(i) In general.--Except as provided in clause (ii), to be
eligible for the program, each applicant to the program shall
provide--
``(I) documentation of household income; or
``(II) documentation of participation in a program
described in clause (ii) or (iii) of paragraph (2)(A).
``(ii) Waivers.--A State agency may waive the requirement
of clause (i) with respect to--
``(I) an applicant for whom the necessary documentation is
not available; or
``(II) an applicant, such as a homeless woman or child, for
whom the agency determines the requirement of clause (i)
would present a barrier to participation.
``(iii) Regulations.--The Secretary shall prescribe
regulations to carry out clause (ii)(I).
``(F) Verification.--The Secretary shall issue regulations
under this paragraph prescribing when and how verification of
income shall be required.''.
(c) 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.''.
(d) Variety of Foods.--Section 17(f)(1)(C) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f)(1)(C)) is amended--
(1) by redesignating clauses (ii) through (x) as clauses
(iii) through (xi), respectively; and
(2) by inserting after clause (i) the following:
``(ii) in the case of any State that provides for the
purchase of foods under the program at retail grocery stores,
a plan to limit participation by the stores to stores that
offer a variety of foods, as determined by the Secretary;''.
(e) Use of Claims for Vendors and Participants.--Section
17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f))
is amended by striking paragraph (21) and inserting the
following:
``(21) Use of claims from vendors and participants.--A
State agency may use funds recovered from vendors and
participants, as a result of a claim arising under the
program, to carry out the program during--
``(A) the fiscal year in which the claim arises;
``(B) the fiscal year in which the funds are collected; or
``(C) the fiscal year following the fiscal year in which
the funds are collected.''.
(f) Recipients Participating at More Than 1 Site.--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:
``(23) Recipients participating at more than 1 site.--Each
State agency shall implement a system designed by the State
agency to identify recipients who are participating at more
than 1 site under the program.''.
(g) High Risk Vendors.--Section 17(f) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by
subsection (f)) is amended by adding at the end the
following:
``(24) High risk vendors.--Each State agency shall--
``(A) identify vendors that have a high probability of
program abuse; and
``(B) conduct compliance investigations of the vendors.''.
(h) 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 ``2003''.
(i) Purchase of Breast Pumps.--Section 17(h)(1)(C) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(C)) is
amended--
(1) by striking ``(C) In'' and inserting the following:
``(C) Remaining amounts.--
``(i) In general.--Except as provided in clause (ii), in'';
and
(2) by adding at the end the following:
``(ii) Breast pumps.--
``(I) In general.--Beginning with fiscal year 2000, a State
agency may use amounts made available under clause (i) for
the purchase of breast pumps.
``(II) Maintenance of effort.--From amounts allocated for
nutrition services and administration to amounts allocated
for supplemental foods, a State agency that exercises the
authority of subclause (I) shall transfer an amount equal to
the amount expended for the purchase of breast pumps, or
transferred under this subclause, from amounts allocated for
nutrition services and administration for the preceding
fiscal year.''.
(j) Technical Amendment.--Section 17(h)(2)(A)(iv) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)(iv)) is
amended by striking ``, to the extent funds are not already
provided under subparagraph (I)(v) for the same purpose,''.
(k) Level of Per-Participant Expenditure for Nutrition
Services and Administration.--Section 17(h)(2)(B)(ii) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(B)(ii)) is
amended by striking ``15 percent'' and inserting ``10 percent
(except that the Secretary may establish a higher percentage
for State agencies that are small)''.
(l) Technical Amendments.--Section 17(h)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended--
(1) in subparagraph (E), by striking ``(except as provided
in subparagraph (G))''; and
(2) by striking subparagraphs (F) and (G).
(m) Conversion of Amounts for Supplemental Foods to Amounts
for Nutrition Services and Administration.--Section
17(h)(5)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(5)(A)) is amended in the matter preceding clause (i)
by striking ``achieves'' and all that follows through ``such
State agency may'' and inserting ``submits a plan to reduce
average food costs per participant and to increase
participation above the level estimated for the State agency,
the State agency may, with the approval of the Secretary,''.
(n) Infant Formula Procurement.--
(1) Competitive bidding system.--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.''.
(2) Review and approval of solicitations.--Section 17(h)(8)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) is
amended by adding at the end the following:
``(K) Review and approval of solicitations.--The Secretary
shall--
``(i) prior to the issuance of an infant formula cost
containment contract solicitation under this paragraph,
review the solicitation to ensure that the solicitation does
not contain any anticompetitive provisions; and
``(ii) approve the solicitation only if the solicitation
does not contain any anticompetitive provisions.''.
(o) 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 ``2003''.
(p) Management Information System Plan.--Section 17(h) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is
amended by adding at the end the following:
``(11) Management information system plan.--
``(A) In general.--In consultation with State agencies,
retailers, and other interested persons, the Secretary shall
establish a long-range plan
[[Page S10543]]
for the development and implementation of management
information systems (including electronic benefit transfers)
to be used in carrying out the program.
``(B) Report.--Not later than 2 years 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 on actions taken to carry
out subparagraph (A).
``(C) Interim period.--Prior to the date of submission of
the report of the Secretary required under subparagraph (B),
the cost of systems or equipment that may be required to test
management information systems (including electronic benefit
transfers) for the program may not be imposed on a retail
food store.''.
(q) Use of Funds in Preceding and Subsequent Fiscal
Years.--
(1) In general.--Section 17(i)(3)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(i)(3)(A)) is amended--
(A) by striking ``subparagraphs (B) and (C)'' and inserting
``subparagraph (B)''; and
(B) by striking clauses (i) and (ii) and inserting the
following:
``(i)(I) not more than 1 percent (except as provided in
subparagraph (C)) of the amount of funds allocated to a State
agency under this section for supplemental foods for a fiscal
year may be expended by the State agency for allowable
expenses incurred under this section for supplemental foods
during the preceding fiscal year; and
``(II) not more than 1 percent of the amount of funds
allocated to a State agency under this section for nutrition
services and administration for a fiscal year may be expended
by the State agency for allowable expenses incurred under
this section for supplemental foods and nutrition services
and administration during the preceding fiscal year; and
``(ii)(I) for each fiscal year, of the amounts allocated to
a State agency for nutrition services and administration, an
amount equal to not more than 1 percent of the amount
allocated to the State agency under this section for the
fiscal year may be expended by the State agency for allowable
expenses incurred under this section for nutrition services
and administration during the subsequent fiscal year; and
``(II) for each fiscal year, of the amounts allocated to a
State agency for nutrition services and administration, an
amount equal to not more than \1/2\ of 1 percent of the
amount allocated to the State agency under this section for
the fiscal year may be expended by the State agency, with the
prior approval of the Secretary, for the development of a
management information system, including an electronic
benefit transfer system, during the subsequent fiscal
year.''.
(2) Conforming amendments.--Section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786) is amended--
(A) in subsection (h)(10)(A), by inserting after
``nutrition services and administration funds'' the
following: ``and supplemental foods funds''; and
(B) in subsection (i)(3)--
(i) by striking subparagraphs (C) through (G); and
(ii) by redesignating subparagraph (H) as subparagraph (C).
(r) Farmers Market Nutrition Program.--Section 17(m) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(m)) is amended--
(1) in the first sentence of paragraph (3), by inserting
``or from program income'' before the period at the end;
(2) in paragraph (6)--
(A) in subparagraph (C)--
(i) by striking ``serve additional recipients in'';
(ii) by striking clause (ii) and inserting the following:
``(ii) documentation that demonstrates that--
``(I) there is a need for an increase in funds; and
``(II) the use of the increased funding will be consistent
with serving nutritionally at-risk persons and expanding the
awareness and use of farmers' markets;'';
(iii) in clause (iii), by striking the period at the end
and inserting ``; and''; and
(iv) by adding at the end the following:
``(iv) whether, in the case of a State that intends to use
any funding provided under subparagraph (G)(i) to increase
the value of the Federal share of the benefits received by a
recipient, the funding provided under subparagraph (G)(i)
will increase the rate of coupon redemption.'';
(B) by striking subparagraph (F);
(C) in subparagraph (G)--
(i) in clause (i)--
(I) in the first sentence, by striking ``that wish'' and
all follows through ``to do so'' and inserting ``whose State
plan''; and
(II) in the second sentence, by striking ``for additional
recipients''; and
(ii) in the second sentence of clause (ii), by striking
``that desire to serve additional recipients, and''; and
(D) by redesignating subparagraph (G) as subparagraph (F);
and
(3) in paragraph (9)(A), by striking ``1998'' and inserting
``2003''.
(s) Disqualification of Certain Vendors.--
(1) In general.--Section 17 of the Child Nutrition Act of
1966 (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) Exceptions 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--
``(i) disqualification of the vendor would cause hardship
to participants in the program authorized under this section;
or
``(ii)(I) the vendor had, at the time of the conviction
under paragraph (1), an effective policy and program in
effect to prevent violations of this section; and
``(II) the ownership of the vendor was not aware of, did
not approve of, did not benefit from, and was not involved in
the conduct of the violation.
``(B) Civil penalty.--If a State agency authorizes a vendor
that, but for this paragraph, would be disqualified under
paragraph (1) to redeem food instruments or provide
supplemental foods under subparagraph (A), in lieu of
disqualification, the State agency shall assess the vendor a
civil penalty in an amount determined by the State agency,
except that--
``(i) the amount of the civil penalty shall not exceed
$20,000; and
``(ii) the amount of civil penalties imposed for violations
investigated as part of a single investigation may not exceed
$40,000.''.
(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.
(t) Criminal Forfeiture.--Section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786) (as amended by subsection
(s)(1)) is amended by adding at the end the following:
``(p) Criminal Forfeiture.--
``(1) In general.--In addition to any other penalty or
sentence, a court may order that a person forfeit to the
United States all property described in paragraph (2), in
imposing a sentence on a person convicted of a violation of
this section (including a regulation) under--
``(A) section 12(g) of the National School Lunch Act (42
U.S.C. 1760(g)); or
``(B) any other Federal law imposing a penalty for
embezzlement, willful misapplication, stealing, obtaining by
fraud, or trafficking in food instruments, funds, assets, or
property, that have a value of $100 or more.
``(2) Property subject to forfeiture.--All property, real
and personal, used in a transaction or attempted transaction,
to commit, or to facilitate the commission of, a violation
(other than a misdemeanor) of any provision of this section
(including a regulation), or proceeds traceable to a
violation of any provision of this section (including a
regulation), shall be subject to forfeiture to the United
States under paragraph (1).
``(3) Interest of owner.--No interest in property shall be
forfeited under this subsection as the result of any act or
omission established by the owner of the interest to have
been committed or omitted without the knowledge or consent of
the owner.
``(4) Proceeds.--The proceeds from any sale of forfeited
property and any amounts forfeited under this subsection
shall be used--
``(A) first, to reimburse the Department of Justice, the
Department of the Treasury, and the United States Postal
Service for the costs incurred by the Departments or Service
to initiate and complete the forfeiture proceeding;
``(B) second, to reimburse the Office of Inspector General
of the Department of Agriculture for any costs incurred by
the Office in the law enforcement effort resulting in the
forfeiture;
``(C) third, to reimburse any Federal, State, or local law
enforcement agency for any costs incurred in the law
enforcement effort resulting in the forfeiture; and
``(D) fourth, by the State agency to carry out approval,
reauthorization, and compliance investigations of vendors.''.
(u) Study and Report on Cost Containment Practices.--
(1) Study.--The Comptroller General of the United States
shall conduct a study on the effect of cost containment
practices of States under 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) for the selection of vendors and approved food items
(other than infant formula) on--
(A) program participation;
(B) access and availability of prescribed foods;
(C) voucher redemption rates and actual food selections by
participants;
(D) participants on special diets or with specific food
allergies;
(E) participant consumption of, and satisfaction with,
prescribed foods;
(F) achievement of positive health outcomes; and
[[Page S10544]]
(G) program costs.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General shall submit
to the Secretary of Agriculture, 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 containing the results of the study conducted
under paragraph (1).
(v) Study and Report on WIC Services.--
(1) Study.--The Comptroller General of the United States
shall conduct a study that assesses--
(A) the cost of delivering services under 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), including the costs of
implementing and administering cost containment efforts;
(B) the fixed and variable costs incurred by State and
local governments for delivering the services;
(C) the quality of the services delivered, taking into
account the effect of the services on the health of
participants; and
(D) the costs incurred for personnel, automation, central
support, and other activities to deliver the services and
whether the costs meet Federal audit standards for allowable
costs under the program.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall submit
to the Secretary of Agriculture, 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 containing the results of the study conducted
under paragraph (1).
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 2003.''; 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 REMOVAL 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 the removal of 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.
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act take effect on October 1, 1998.
The Presiding Officer (Mr. Hutchinson) appointed Mr. Lugar, Mr.
Cochran, Mr. McConnell, Mr. Harkin and Mr. Leahy conferees on the part
of the Senate.
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