[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.

                          ____________________