[Congressional Record Volume 144, Number 138 (Tuesday, October 6, 1998)]
[House]
[Pages H9680-H9697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CONFERENCE REPORT ON H.R. 3874

  Mr. GOODLING submitted the following conference report and statement 
on the bill (H.R. 3874), 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;

                  Conference Report (H. Rept. 105-786)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3874), 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, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``William F. 
     Goodling Child Nutrition Reauthorization Act 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. Provision of commodities.
       Sec. 102. Nutritional and other program requirements.
       Sec. 103. Special assistance.
       Sec. 104. Miscellaneous provisions and definitions.
       Sec. 105. Summer food service program for children.
       Sec. 106. Commodity distribution program.
       Sec. 107. Child and adult care food program.
       Sec. 108. Meal supplements for children in afterschool 
           care.
       Sec. 109. Pilot projects.
       Sec. 110. Training, technical assistance, and food service 
           management institute.
       Sec. 111. Compliance and accountability.
       Sec. 112. Information clearinghouse.
       Sec. 113. Accommodation of the special dietary needs of 
           individuals with disabilities.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

       Sec. 201. School breakfast program authorization.
       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. Information from recipient agencies.
       Sec. 302. Food distribution.

                        TITLE IV--EFFECTIVE DATE

       Sec. 401. Effective date.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

     SEC. 101. PROVISION OF COMMODITIES.

       (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. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

       (a) Technical Amendments.--Section 9(f) of the National 
     School Lunch Act (42 U.S.C. 1758(f)) is amended--
       (1) in paragraph (2), by striking ``subparagraph (A)'' and 
     inserting ``paragraph (1)''; and
       (2) in paragraphs (3) and (4), by striking ``this 
     paragraph'' each place it appears and inserting ``this 
     subsection''.
       (b) 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 meal offered or served under 
     the school lunch program under this Act or the school 
     breakfast program under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).''.
       (c) 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 under this 
     Act or the school breakfast program 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 governmental agency responsible for food 
     safety inspections.''.
       (d) Single Permanent Agreement Between State Agency and 
     School Food Authority; Common Claims Form.--Section 9 of the 
     National School Lunch Act (42 U.S.C. 1758), as amended by 
     subsection (c), is further amended by adding at the end the 
     following:
       ``(i) Single Permanent Agreement Between State Agency and 
     School Food Authority; Common Claims Form.--
       ``(1) In general.--If a single State agency administers any 
     combination of the school lunch program under this Act, the 
     school breakfast program under section 4 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773), the summer food 
     service program for children under section 13 of this Act, or 
     the child and adult care food program under section 17 of 
     this Act, the agency shall--
       ``(A) require each school food authority to submit to the 
     State agency a single agreement with respect to the operation 
     by the authority of the programs administered by the State 
     agency; and
       ``(B) use a common claims form with respect to meals and 
     supplements served under the programs administered by the 
     State agency.
       ``(2) Additional requirement.--The agreement described in 
     paragraph (1)(A) shall be a permanent agreement that may be 
     amended as necessary.''.

     SEC. 103. SPECIAL ASSISTANCE.

       (a) School Eligibility Requirements for Payments.--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'';
       (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;
       (ii) by striking ``The school'' and inserting ``A school 
     described in clause (i)''; and
       (iii) 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''; and
       (3) in subparagraph (E), by striking clause (iii).
       (b) Adjustments to Payment Rates.--
       (1) In general.--Section 11(a)(3)(B) of the National School 
     Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
       (A) by striking ``(B) The annual'' and inserting the 
     following:
       ``(B) Computation of adjustment.--
       ``(i) In general.--The annual'';
       (B) by striking ``Each annual'' and inserting the 
     following:
       ``(ii) Basis.--Each annual'';
       (C) by striking ``The adjustments'' and inserting the 
     following:
       ``(iii) Rounding.--

       ``(I) Through june 30, 1999.--For the period ending June 
     30, 1999, the adjustments''; and

       (D) by adding at the end the following:

       ``(II) 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

[[Page H9681]]

     cent increment and shall be based on the unrounded amounts 
     for the preceding 12-month period.''.

       (2) Conforming amendments.--Section 4(b) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1773(b)) is amended--
       (A) in the second sentence of paragraph (1)(B), by striking 
     ``adjusted to the nearest one-fourth cent,''; and
       (B) in paragraph (2)(B)(ii), by striking ``, which shall be 
     adjusted'' and all that follows and inserting ``(as adjusted 
     pursuant to section 11(a)(3)(B) of the National School Lunch 
     Act (42 U.S.C 1759a(a)(3)(B))).''.
       (c) Information and Assistance Concerning Reimbursement 
     Options.--
       (1) In general.--Section 11 of the National School Lunch 
     Act (42 U.S.C. 1759a) is amended by adding at the end the 
     following:
       ``(f) Information and Assistance Concerning Reimbursement 
     Options.--
       ``(1) In general.--From funds made available under 
     paragraph (3), the Secretary shall provide grants to not more 
     than 10 State agencies in each of fiscal years 2000 and 2001 
     to enable the agencies, in accordance with criteria 
     established by the Secretary, to--
       ``(A) identify separately in a list--
       ``(i) schools that are most likely to benefit from electing 
     to receive special assistance under subparagraph (C) or (E) 
     of subsection (a)(1); and
       ``(ii) schools that may benefit from electing to receive 
     special assistance under subparagraph (C) or (E) of 
     subsection (a)(1);
       ``(B) make the list of schools identified under this 
     subsection available to each school district within the State 
     and to the public;
       ``(C) provide technical assistance to schools, or school 
     districts containing the schools, to enable the schools to 
     evaluate and receive special assistance under subparagraph 
     (C) or (E) of subsection (a)(1);
       ``(D) take any other actions the Secretary determines are 
     consistent with receiving special assistance under 
     subparagraph (C) or (E) of subsection (a)(1) and receiving a 
     grant under this subsection; and
       ``(E) as soon as practicable after receipt of the grant, 
     but not later than September 30, 2001, take the actions 
     described in subparagraphs (A) through (D).
       ``(2) Report.--
       ``(A) In general.--Not later than January 1, 2002, 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 the activities of the State agencies receiving grants 
     under this subsection.
       ``(B) Contents.--In the report, the Secretary shall 
     specify--
       ``(i) the number of schools identified as likely to benefit 
     from electing to receive special assistance under 
     subparagraph (C) or (E) of subsection (a)(1);
       ``(ii) the number of schools identified under this 
     subsection that have elected to receive special assistance 
     under subparagraph (C) or (E) of subsection (a)(1); and
       ``(iii) a description of how the funds and technical 
     assistance made available under this subsection have been 
     used.
       ``(3) Funding.--Out of any moneys in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     provide to the Secretary $2,250,000 for each of fiscal years 
     2000 and 2001 to carry out this subsection. The Secretary 
     shall be entitled to receive the funds and shall accept the 
     funds, without further appropriation.''.
       (2) Technical amendments.--The National School Lunch Act is 
     amended in the second sentence of each of sections 
     21(e)(2)(A) and 26(d) (42 U.S.C. 1769b-1(e)(2)(A), 1769g(d)) 
     by inserting at the end before the period ``, without further 
     appropriation''.

     SEC. 104. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

       (a) Adjustments to Reimbursement Rates.--Section 12(f) of 
     the National School Lunch Act (42 U.S.C. 1760(f)) is 
     amended--
       (1) by striking ``school breakfasts and lunches'' and 
     inserting ``breakfasts, lunches, suppers, and supplements'';
       (2) by striking ``sections 4 and 11'' and inserting 
     ``sections 4, 11, 13, and 17''; and
       (3) by striking ``lunches and breakfasts'' each place it 
     appears and inserting ``meals and supplements''.
       (b) 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''.
       (c) 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''.
       (d) Buy American.--Section 12 of the National School Lunch 
     Act (42 U.S.C. 1760) is amended by adding at the end the 
     following:
       ``(n) 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.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall require that a school food authority 
     purchase, to the maximum extent practicable, domestic 
     commodities or products.
       ``(B) Limitations.--Subparagraph (A) shall apply only to--
       ``(i) a school food authority located in the contiguous 
     United States; and
       ``(ii) a purchase of a domestic commodity or product for 
     the school lunch program under this Act or the school 
     breakfast program under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).
       ``(3) Applicability to hawaii.--Paragraph (2)(A) shall 
     apply to a school food authority in Hawaii with respect to 
     domestic commodities or products that are produced in Hawaii 
     in sufficient quantities to meet the needs of meals provided 
     under the school lunch program under this Act or the school 
     breakfast program under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).''.
       (e) Procurement Contracts.--Section 12 of the National 
     School Lunch Act (42 U.S.C. 1760), as amended by subsection 
     (d), is further amended by adding at the end the following:
       ``(o) Procurement Contracts.--In acquiring a good or 
     service for programs under this Act or the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 
     of that Act (42 U.S.C. 1786)), a State, State agency, school, 
     or school food authority may enter into a contract with a 
     person that has provided specification information to the 
     State, State agency, school, or school food authority for use 
     in developing contract specifications for acquiring such good 
     or service.''.

     SEC. 105. 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 Meal Contracting Restrictions, 
     Indication of Interest Requirement, 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) Offer Versus Serve.--Section 13(f)(7) of the National 
     School Lunch Act (42 U.S.C. 1761(f)(7)) is amended in the 
     first sentence by striking ``attending a site on school 
     premises operated directly by the authority''.
       (d) Reauthorization of Program.--Section 13(q) of the 
     National School Lunch Act (42 U.S.C. 1761(q)) is amended by 
     striking ``1998'' and inserting ``2003''.
       (e) Technical Amendment.--
       (1) In general.--Section 706(j)(1) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (Public Law 104-193; 110 Stat. 2293) is amended by 
     striking ``methods of assessing'' and inserting ``methods for 
     assessing''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on January 1, 1997.

     SEC. 106. COMMODITY DISTRIBUTION PROGRAM.

       Section 14(a) of the National School Lunch Act (42 U.S.C. 
     1762a(a)) is amended in the matter preceding paragraph (1) by 
     striking ``1998'' and inserting ``2003''.

     SEC. 107. CHILD AND ADULT CARE FOOD PROGRAM.

       (a) Eligibility of Institutions.--Section 17(a) of the 
     National School Lunch Act (42 U.S.C. 1766(a)) is amended--
       (1) in the fourth sentence, by striking ``Reimbursement'' 
     and inserting ``Except as provided in subsection (r), 
     reimbursement''; and
       (2) in the sixth sentence, by striking paragraph (1) and 
     inserting the following:
       ``(1) an institution (except a school or family or group 
     day care home sponsoring organization) or family or group day 
     care home shall--
       ``(A)(i) be licensed, or otherwise have approval, by the 
     appropriate Federal, State, or local licensing authority; or
       ``(ii) be in compliance with appropriate procedures for 
     renewing participation in the program, 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) if Federal, State, or local licensing or approval is 
     not available--
       ``(i) meet any alternate approval standards established by 
     the appropriate State or local governmental agency; or
       ``(ii) meet any alternate approval standards established by 
     the Secretary after consultation with the Secretary of Health 
     and Human Services; or
       ``(C) if the institution provides care to school children 
     outside of school hours and Federal, State, or local 
     licensing or approval is not required for the institution, 
     meet State or local health and safety standards; and''.
       (b) Automatic Eligibility for Even Start Program 
     Participants.--Section 17(c)(6) of the National School Lunch 
     Act (42 U.S.C. 1766(c)(6)) is amended--

[[Page H9682]]

       (1) in subparagraph (A), by striking ``(A)''; and
       (2) by striking subparagraph (B).
       (c) 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.''.
       (d) Tax Exempt Status and Removal of Notification 
     Requirement for Incomplete Applications.--Section 17(d)(1) of 
     the National School Lunch Act (42 U.S.C. 1766(d)(1)) is 
     amended--
       (1) by inserting after the third sentence the following: 
     ``An institution moving toward compliance with the 
     requirement for tax exempt status shall be allowed to 
     participate in the child and adult care food program for a 
     period of not more than 180 days, except that a State agency 
     may grant a single extension of not to exceed an additional 
     90 days if the institution demonstrates, to the satisfaction 
     of the State agency, that the inability of the institution to 
     obtain tax exempt status within the 180-day period is due to 
     circumstances beyond the control of the institution.''; and
       (2) by striking the last sentence.
       (e) Use of Funds for Audits.--Section 17(i) of the National 
     School Lunch Act (42 U.S.C. 1766(i)) is amended by striking 
     ``2 percent'' and inserting ``1.5 percent (except, in the 
     case of each of fiscal years 2005 through 2007, 1 percent)''.
       (f) Permanent Authorization of Demonstration Project.--
     Section 17(p) of the National School Lunch Act (42 U.S.C. 
     1766(p)) is amended by striking paragraphs (4) and (5).
       (g) Management Support.--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.''.
       (h) Participation by At-Risk Child Care Programs.--Section 
     17 of the National School Lunch Act (42 U.S.C. 1766), as 
     amended by subsection (g), is further amended by adding at 
     the end the following:
       ``(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, except that the age 
     limitation provided by this subparagraph shall not apply to a 
     child described in section 12(d)(1)(A); and
       ``(B) participates in a program authorized under this 
     section operated at a site located in a geographical area 
     served by a school in which at least 50 percent of the 
     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.--
     An institution may participate in the program authorized 
     under this section only if the institution provides 
     supplements under a program--
       ``(A) organized primarily to provide care to at-risk school 
     children during after-school hours, weekends, or holidays 
     during the regular school year; and
       ``(B) with an educational or enrichment purpose.
       ``(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.--A supplement shall be reimbursed under this 
     subsection at the rate established for a free supplement 
     under subsection (c)(3).
       ``(C) No charge.--A supplement claimed for reimbursement 
     under this subsection shall be served without charge.''.
       (i) WIC Information.--Section 17 of the National School 
     Lunch Act (42 U.S.C. 1766), as amended by subsection (h), is 
     further amended by adding at the end the following:
       ``(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.--Each 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) receives 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.''.
       (j) Transfer of Homeless Programs.--
       (1) In general.--Section 17 of the National School Lunch 
     Act (42 U.S.C. 1766), as amended by subsection (i), is 
     further amended 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) an emergency shelter (as defined in section 321 of 
     the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11351)); or
       ``(B) a site operated by the shelter.
       ``(2) Administration.--Except as otherwise provided in this 
     subsection, an emergency shelter shall be eligible to 
     participate in the program authorized under this section in 
     accordance with the terms and conditions applicable to 
     eligible institutions described in subsection (a).
       ``(3) Licensing requirements.--The licensing requirements 
     contained in 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 or local 
     health and safety standards.
       ``(5) Meal or supplement reimbursement.--
       ``(A) Limitations.--An emergency shelter may claim 
     reimbursement under this subsection--
       ``(i) only for a meal or supplement served to children 
     residing at an emergency shelter, if the children are--

       ``(I) not more than 12 years of age;
       ``(II) children of migrant workers, if the children are not 
     more than 15 years of age; or
       ``(III) children with disabilities; and

       ``(ii) for not more than 3 meals, or 2 meals and a 
     supplement, per child per day.
       ``(B) Rate.--A meal or supplement eligible for 
     reimbursement shall be reimbursed at the rate at which free 
     meals and supplements are reimbursed under subsection (c).
       ``(C) No charge.--A meal or supplement claimed for 
     reimbursement shall be served without charge.''.
       (2) Conforming amendments.--
       (A) Section 13(a)(3)(C) of the National School Lunch Act 
     (42 U.S.C. 1761(a)(3)(C)) is amended--
       (i) in clause (i), by adding ``or'' at the end;
       (ii) by striking clause (ii); and
       (iii) by redesignating clause (iii) as clause (ii).
       (B) Section 17(a) of the National School Lunch Act (42 
     U.S.C. 1766(a)) is amended in the third sentence--
       (i) by striking ``and public'' and inserting ``public''; 
     and
       (ii) by inserting before the period at the end the 
     following: ``, and emergency shelters (as provided in 
     subsection (t))''.
       (C)(i) Section 17B of the National School Lunch Act (42 
     U.S.C. 1766b) is repealed.
       (ii) Section 25(b)(1) of the National School Lunch Act (42 
     U.S.C. 1769f(b)(1) is amended--
       (I) by striking subparagraph (D); and
       (II) by redesignating subparagraphs (E) through (G) as 
     subparagraphs (D) through (F), respectively.
       (3) Technical amendments.--
       (A) Section 12(d) of the National School Lunch Act (42 
     U.S.C. 1760(d)) is amended--
       (i) in paragraph (1)(A), by striking ``mental or physical'' 
     each place it appears; and
       (ii) by adding at the end the following:
       ``(8) Disability.--The term `disability' has the meaning 
     given the term in the Rehabilitation Act of 1973 for purposes 
     of title II of that Act (29 U.S.C. 760 et seq.).''.
       (B) Section 13(a)(1) of the National School Lunch Act (42 
     U.S.C. 1761(a)(1)) is amended in subparagraph (D) of the 
     second sentence--
       (i) in clause (i), by striking ``to be mentally or 
     physically handicapped'' and inserting ``to have a 
     disability''; and
       (ii) in clause (ii), by striking ``the mentally or 
     physically handicapped'' and inserting ``individuals who have 
     a disability''.
       (C) Section 17(a) of the National School Lunch Act (42 
     U.S.C. 1766(a)) is amended by striking ``handicaps'' each 
     place it appears and inserting ``disabilities''.
       (D) Section 15 of the Child Nutrition Act of 1966 (42 
     U.S.C. 1784) is amended--
       (i) in paragraph (6), by striking ``mental or physical 
     handicaps'' each place it appears and inserting 
     ``disabilities''; and
       (ii) by adding at the end the following:
       ``(7) Disability.--The term `disability' has the meaning 
     given the term in the Rehabilitation Act of 1973 for purposes 
     of title II of that Act (29 U.S.C. 760 et seq.).''.
       (4) Effective Date.--The amendments made by paragraphs (1) 
     and (2) take effect on July 1, 1999.

     SEC. 108. 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

[[Page H9683]]

       (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 by striking 
     ``served to children'' and all that follows and inserting 
     ``served to school children who are not more than 18 years of 
     age, except that the age limitation provided by this 
     subsection shall not apply to a child described in section 
     12(d)(1)(A).''.
       (c) Reimbursement.--Section 17A(c) of the National School 
     Lunch Act (42 U.S.C. 1766a(c)) is amended by striking ``(c) 
     Reimbursement.--For'' and inserting the following:
       ``(c) Reimbursement.--
       ``(1) At-risk school children.--In the case of an eligible 
     child who is participating in a program authorized under this 
     section operated at a site located in a geographical area 
     served by a school in which at least 50 percent of the 
     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.), a supplement 
     provided under this section to the child shall be--
       ``(A) reimbursed at the rate at which free supplements are 
     reimbursed under section 17(c)(3); and
       ``(B) served without charge.
       ``(2) Other school children.--In the case of an eligible 
     child who is participating in a program authorized under this 
     section at a site that is not described in paragraph (1), 
     for''.

     SEC. 109. PILOT PROJECTS.

       (a) In General.--Section 18 of the National School Lunch 
     Act (42 U.S.C. 1769) is amended by striking subsections (c), 
     (e), (g), and (h).
       (b) Breakfast Pilot Projects.--Section 18(i) of the 
     National School Lunch Act (42 U.S.C. 1769(i)) is amended to 
     read as follows:
       ``(i) Breakfast Pilot Projects.--
       ``(1) In general.--Subject to the availability of funds 
     made available under paragraph (10), for a period of 3 
     successive school years, 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 to--
       ``(A) reduce paperwork, simplify meal counting 
     requirements, and make changes that will increase 
     participation in the school breakfast program; and
       ``(B) 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 seeks a grant under 
     this subsection shall submit to the Secretary nominations of 
     school food authorities to participate in a pilot project 
     under this subsection
       ``(3) Approval.--The Secretary shall approve for 
     participation in pilot projects under this subsection 
     elementary schools under the jurisdiction of not more than 6 
     nominated 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 agency 
     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.--Subject to the 
     availability of funds made available to carry out this 
     subsection, a school food authority receiving amounts under a 
     grant to conduct a pilot project described in paragraph (1) 
     shall conduct the project during a period of 3 successive 
     school years.
       ``(6) Waiver authority.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     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 
     related requirements that would preclude the Secretary from 
     making a grant to conduct a pilot project under paragraph 
     (1).
       ``(B) Nonwaivable requirements.--The Secretary may not 
     waive a requirement under subparagraph (A) if the waiver 
     would prevent a program participant, a potential program 
     participant, or a school from receiving all of the benefits 
     and protections of this Act, the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.), or a Federal law (including a 
     regulation) that protects an individual constitutional right 
     or a statutory civil right.
       ``(7) Requirements for participation in pilot project.--To 
     be eligible to participate in a pilot project under this 
     subsection--
       ``(A) a State agency--
       ``(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 enrolled 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 a 
     valid evaluation of the effects of the pilot projects; and
       ``(iv) shall meet all other requirements that the Secretary 
     may reasonably require.
       ``(8) 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 describing the results of the evaluation 
     of the pilot projects required under subparagraph (A).
       ``(9) 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 to reflect changes in the series for 
     food away from home of the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor and adjusted for 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 to reflect changes 
     described in subparagraph (A) and adjusted for fluctuations 
     in enrollment) may be taken from any non-Federal source or 
     from amounts provided under this subsection.
       ``(10) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this subsection.
       ``(B) Requirement.--No amounts may be provided under this 
     subsection unless specifically provided in appropriations 
     Acts.''.
       (c) Conforming Amendments.--
       (1) Section 18 of the National School Lunch Act (42 U.S.C. 
     1769), as amended by subsections (a) and (b), is further 
     amended by redesignating subsections (d), (f), and (i) as 
     subsections (c), (d), and (e), respectively.
       (2) Section 101(b) of the Child Nutrition Amendments of 
     1992 (42 U.S.C. 1769 note; Public Law 102-342) is amended--
       (A) in paragraph (1)--
       (i) by striking ``(1)''; and
       (ii) by striking ``other than those required under section 
     18(c) of the National School Lunch Act (42 U.S.C 1769(c)) to 
     identify other'' and inserting ``to identify''; and
       (B) by striking paragraph (2).

     SEC. 110. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
                   MANAGEMENT INSTITUTE.

       (a) Technical Amendments.--Section 21(c)(2) of the National 
     School Lunch Act (42 U.S.C. 1769b-1(c)(2)) is amended by 
     striking ``of section 24'' each place it appears in 
     subparagraphs (F) and (H) and inserting ``established by the 
     Secretary''.
       (b) 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''.
       (c) 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 in the first sentence 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. 111. 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. 112. 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. 113. ACCOMMODATION OF 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 THE SPECIAL DIETARY NEEDS OF 
                   INDIVIDUALS WITH DISABILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Covered program.--The term `covered program' means--
       ``(A) the school lunch program authorized under this Act;
       ``(B) the school breakfast program authorized under section 
     4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and
       ``(C) any other program authorized under this Act or the 
     Child Nutrition Act of 1966 (except for section 17) that the 
     Secretary determines is appropriate.

[[Page H9684]]

       ``(2) Eligible entity.--The term `eligible entity' means a 
     school food authority, institution, or service institution 
     that participates in a covered program.
       ``(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. 
     The activities may include--
       ``(1) developing and disseminating to State agencies 
     guidance and technical assistance materials;
       ``(2) conducting training of State agencies and eligible 
     entities; and
       ``(3) providing grants to State agencies and eligible 
     entities.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 1999 through 
     2003.''.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

     SEC. 201. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

       Section 4(a) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773(a)) is amended in the first sentence by striking ``and 
     to carry out the provisions of subsection (g)''.

     SEC. 202. STATE ADMINISTRATIVE EXPENSES.

       (a) Homeless Shelters.--Section 7(a)(5)(B) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)(B)) is amended to 
     read as follows:
       ``(B) Reallocation of funds.--
       ``(i) Return to secretary.--For each fiscal year, any 
     amounts appropriated that are not obligated or expended 
     during the fiscal year and are not carried over for the 
     succeeding fiscal year under subparagraph (A) shall be 
     returned to the Secretary.
       ``(ii) Reallocation by secretary.--The Secretary shall 
     allocate, for purposes of administrative costs, any remaining 
     amounts among States that demonstrate a need for the 
     amounts.''.
       (b) Elimination of 10 Percent Transfer Limitation.--Section 
     7(a)(6) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1776(a)(6)) is amended to read as follows:
       ``(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 this Act (except for the programs authorized 
     under sections 17 and 21) and the National School Lunch Act 
     (42 U.S.C. 1751 et seq.) 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) Additional Requirements for Applicants.--
       (1) Physical presence requirement.--Section 17(d)(3) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended 
     by adding at the end the following:
       ``(C) Physical presence.--
       ``(i) In general.--Except as provided in clause (ii) and 
     subject to the requirements of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and 
     section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
     794), each individual seeking certification or 
     recertification for participation in the program shall be 
     physically present at each certification or recertification 
     determination in order to determine eligibility under the 
     program.
       ``(ii) Waivers.--If the agency determines that the 
     requirement of clause (i) would present an unreasonable 
     barrier to participation, a local agency may waive the 
     requirement of clause (i) with respect to--

       ``(I) an infant or child 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

       ``(II) an infant or child who--

       ``(aa) was present at the initial certification visit;
       ``(bb) was present at a certification or recertification 
     determination within the 1-year period ending on the date of 
     the certification or recertification determination described 
     in clause (i); and
       ``(cc) has 1 or more parents who work.''.
       (2) Income documentation requirement.--Section 17(d)(3) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as 
     amended by paragraph (1), is further amended by adding at the 
     end the following:
       ``(D) Income documentation.--
       ``(i) In general.--Except as provided in clause (ii), in 
     order to participate in the program pursuant to clause (i) of 
     paragraph (2)(A), an individual seeking certification or 
     recertification for participation in the program shall 
     provide documentation of family income.
       ``(ii) Waivers.--A State agency may waive the documentation 
     requirement of clause (i), in accordance with criteria 
     established by the Secretary, with respect to--

       ``(I) an individual for whom the necessary documentation is 
     not available; or
       ``(II) an individual, such as a homeless woman or child, 
     for whom the agency determines the requirement of clause (i) 
     would present an unreasonable barrier to participation.''.

       (3) Adjunct documentation requirement.--Section 17(d)(3) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as 
     amended by paragraph (2), is further amended by adding at the 
     end the following:
       ``(E) Adjunct documentation.--In order to participate in 
     the program pursuant to clause (ii) or (iii) of paragraph 
     (2)(A), an individual seeking certification or 
     recertification for participation in the program shall 
     provide documentation of receipt of assistance described in 
     that clause.''.
       (b) Education and Educational Materials Relating to Effects 
     of Drug and Alcohol Use.--Section 17(e)(1) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(e)(1)) is amended by 
     adding at the end the following: ``A local agency 
     participating in the program shall provide education or 
     educational materials relating to the effects of drug and 
     alcohol use by a pregnant, postpartum, or breastfeeding 
     woman on the developing child of the woman.''.
       (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.--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 (7 U.S.C. 
     612c note; Public Law 93-86) at no cost to that program.''.
       (d) Use of Claims From Vendors and Participants.--Section 
     17(f)(21) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(f)(21)) is amended to read as follows:
       ``(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; and
       ``(C) the fiscal year following the fiscal year in which 
     the funds are collected.''.
       (e) Individuals 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) Individuals participating at more than 1 site.--Each 
     State agency shall implement a system designed by the State 
     agency to identify individuals who are participating at more 
     than 1 site under the program.''.
       (f) Identification of High Risk Vendors; Compliance 
     Investigations.--
       (1) In general.--Section 17(f) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(f)), as amended by subsection (e), is 
     further 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.''.
       (2) Regulations.--The Secretary of Agriculture shall 
     promulgate--
       (A) not later than March 1, 1999, proposed regulations to 
     carry out section 17(f)(24) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786(f)(24)), as added by paragraph (1); and
       (B) not later than March 1, 2000, final regulations to 
     carry out section 17(f)(24) of that Act.
       (g) Reauthorization of Program.--Section 17(g)(1) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended 
     in the first sentence by striking ``1998'' and inserting 
     ``2003''.
       (h) 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.--A State agency may use amounts made 
     available under clause (i) for the purchase of breast 
     pumps.''.
       (i) Nutrition Services and Administration.--
       (1) Allocation of amounts.--Section 17(h)(2)(A) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is 
     amended in the first sentence by striking ``1998'' and 
     inserting ``2003''.
       (2) 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,''.
       (3) 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)''.
       (4) Technical amendments.--Section 17(h)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended--
       (A) in subparagraph (E), by striking ``In the case'' and 
     all that follows through ``subsequent fiscal year,'' and 
     inserting ``For each fiscal year,''; and
       (B) by striking subparagraphs (F) and (G).
       (5) 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

[[Page H9685]]

     for the State agency, the State agency may, with the approval 
     of the Secretary,''.
       (j) Infant Formula Procurement.--Section 17(h)(8)(A) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is 
     amended by adding at the end the following:
       ``(iii) Competitive bidding system.--A State agency using a 
     competitive bidding system for infant formula shall award 
     contracts to bidders 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.''.
       (k) Infrastructure and Breastfeeding Promotion and Support 
     Activities.--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''.
       (l) Consideration of Price Levels of Retail Stores for 
     Participation in Program.--
       (1) In general.--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) Consideration of price levels of retail stores for 
     participation in program.--
       ``(A) In general.--For the purpose of promoting efficiency 
     and to contain costs under the program, a State agency shall, 
     in selecting a retail store for participation in the program, 
     take into consideration the prices that the store charges for 
     foods under the program as compared to the prices that other 
     stores charge for the foods.
       ``(B) Subsequent price increases.--The State agency shall 
     establish procedures to ensure that a retail store selected 
     for participation in the program does not subsequently raise 
     prices to levels that would otherwise make the store 
     ineligible for participation in the program.''.
       (2) Regulations.--The Secretary of Agriculture shall 
     promulgate--
       (A) not later than March 1, 1999, proposed regulations to 
     carry out section 17(h)(11) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786(h)(11)), as added by paragraph (1); and
       (B) not later than March 1, 2000, final regulations to 
     carry out section 17(h)(11) of that Act.
       (m) Management Information System Plan.--Section 17(h) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)), as 
     amended by subsection (l)(1), is further amended by adding at 
     the end the following:
       ``(12) Management information system plan.--
       ``(A) In general.--In consultation with State agencies, 
     vendors, and other interested persons, the Secretary shall 
     establish a long-range plan 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), 
     a State agency may not require retail stores to pay the cost 
     of systems or equipment that may be required to test 
     electronic benefit transfer systems.''.
       (n) 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).
       (o) Farmers' Market Nutrition Program.--
       (1) Matching requirement.--Section 17(m)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended in 
     the first sentence by inserting ``program income or'' after 
     ``satisfied from''.
       (2) Criteria for additional funds.--Section 17(m)(6)(C) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(C)) is 
     amended--
       (A) by striking ``serve additional recipients in'';
       (B) 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;'';
       (C) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (D) 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.''.
       (3) Ranking criteria for state plans.--Section 17(m)(6) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is 
     amended--
       (A) by striking subparagraph (F); and
       (B) by redesignating subparagraph (G) as subparagraph (F).
       (4) Funding for current and new states.--Section 
     17(m)(6)(F) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(m)(6)(F)), as redesignated by paragraph (3)(B), is 
     amended--
       (A) 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'';
       (B) in the second sentence of clause (ii), by striking 
     ``that desire to serve additional recipients, and''.
       (5) Reauthorization of program.--Section 17(m)(9)(A) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is 
     amended by striking ``1998'' and inserting ``2003''.
       (p) 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 (including any item described in 
     subparagraph (A) issued in lieu of a food instrument under 
     this section).
       ``(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 participate in the program 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 violation 
     under paragraph (1), an effective policy and program in 
     effect to prevent violations described in paragraph (1); and
       ``(II) the ownership of the vendor was not aware of, did 
     not approve of, and was not involved in the conduct of the 
     violation.
       ``(B) Civil penalty.--If a State agency under subparagraph 
     (A) permits a vendor to continue to participate in the 
     program in lieu of disqualification, the State agency shall 
     assess the vendor a civil penalty in an amount determined by 
     the State agency, in accordance with criteria established by 
     the Secretary, except that--
       ``(i) the amount of the civil penalty shall not exceed 
     $10,000 for each violation; 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 Secretary of Agriculture shall 
     promulgate--
       (A) not later than March 1, 1999, proposed regulations to 
     carry out section 17(o) of the Child Nutrition Act of 1966 
     (42 U.S.C. 1786(o)), as added by paragraph (1); and
       (B) not later than March 1, 2000, final regulations to 
     carry out section 17(o) of that Act.
       (q) Criminal Forfeiture.--Section 17 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786), as amended by subsection 
     (p)(1), is amended by adding at the end the following:
       ``(p) Criminal Forfeiture.--
       ``(1) In general.--Notwithstanding any provision of State 
     law and in addition to any other penalty authorized by law, a 
     court may order a

[[Page H9686]]

     person that is convicted of a violation of a provision of law 
     described in paragraph (2), with respect to food instruments 
     (including any item described in subsection (o)(1)(A) issued 
     in lieu of a food instrument under this section), funds, 
     assets, or property that have a value of $100 or more and 
     that are the subject of a grant or other form of assistance 
     under this section, to forfeit to the United States all 
     property described in paragraph (3).
       ``(2) Applicable laws.--A provision of law described in 
     this paragraph is--
       ``(A) section 12(g) of the National School Lunch Act (42 
     U.S.C. 1760(g)); and
       ``(B) any other Federal law imposing a penalty for 
     embezzlement, willful misapplication, stealing, obtaining by 
     fraud, or trafficking in food instruments (including any item 
     described in subsection (o)(1)(A) issued in lieu of a food 
     instrument under this section), funds, assets, or property.
       ``(3) Property subject to forfeiture.--The following 
     property shall be subject to forfeiture under paragraph (1):
       ``(A) All property, real and personal, used in a 
     transaction or attempted transaction, to commit, or to 
     facilitate the commission of, a violation described in 
     paragraph (1).
       ``(B) All property, real and personal, constituting, 
     derived from, or traceable to any proceeds a person obtained 
     directly or indirectly as a result of a violation described 
     in paragraph (1).
       ``(4) Procedures; interest of owner.--Except as provided in 
     paragraph (5), all property subject to forfeiture under this 
     subsection, any seizure or disposition of the property, and 
     any proceeding relating to the forfeiture, seizure, or 
     disposition shall be subject to section 413 of the 
     Comprehensive Drug Abuse Prevention and Control Act of 1970 
     (21 U.S.C. 853), other than subsection (d) of that section.
       ``(5) 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.''.
       (r) Study of Cost Containment Practices.--
       (1) In general.--The Secretary of Agriculture shall conduct 
     a study on the effect of cost containment practices 
     established by 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 use and satisfaction of prescribed foods;
       (F) achievement of positive health outcomes; and
       (G) program costs.
       (2) Report.--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) not later than 2 years after the date of enactment of 
     this Act, an interim report describing the results of the 
     study conducted under paragraph (1); and
       (B) not later than 3 years after the date of enactment of 
     this Act, a final report describing the results of the study 
     conducted under paragraph (1).
       (s) Study of WIC Services.--
       (1) In general.--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 and the extent 
     to which those costs are charged to State agencies;
       (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. INFORMATION FROM RECIPIENT AGENCIES.

       Section 3(f)(2) of the Commodity Distribution Reform Act 
     and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 
     100-237) is amended to read as follows:
       ``(2) Information from recipient agencies.--
       ``(A) In general.--The Secretary shall ensure that 
     information with respect to the types and forms of 
     commodities that are most useful to persons participating in 
     programs described in subsection (a)(2) is collected from 
     recipient agencies operating the programs.
       ``(B) Frequency.--The information shall be collected at 
     least once every 2 years.
       ``(C) Additional submissions.--The Secretary shall provide 
     the recipient agencies a means for voluntarily submitting 
     customer acceptability information.''.

     SEC. 302. FOOD DISTRIBUTION.

       The Commodity Distribution Reform Act and WIC Amendments of 
     1987 (7 U.S.C. 612c note; Public Law 100-237) is amended--
       (1) by redesignating sections 13 and 14 as sections 17 and 
     18, respectively; and
       (2) by inserting after section 12 the following:

     ``SEC. 13. AUTHORITY TO TRANSFER COMMODITIES BETWEEN 
                   PROGRAMS.

       ``(a) Transfer.--Subject to subsection (b), the Secretary 
     may transfer any commodities purchased with appropriated 
     funds 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. 14. 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) Waiver.--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. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF 
                   COMMODITIES THAT POSE A HEALTH OR SAFETY RISK.

       ``(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 risk.
       ``(b) Allowable Costs.--The costs--
       ``(1) may include costs for storage, transportation, 
     processing, and destruction of the commodities described in 
     subsection (a); 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 
     commodities described in subsection (a).
       ``(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 commodities 
     described in subsection (a).
       ``(d) Crediting of Recovered Funds.--Funds recovered from a 
     supplier or other entity regarding the commodities described 
     in subsection (a) 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.
       ``(e) Termination Date.--The authority provided by this 
     section terminates effective October 1, 2000.

     ``SEC. 16. 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

[[Page H9687]]

     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).''.

                        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.

       And the Senate agree to the same.
     From the Committee on Education and the Workforce, for 
     consideration of the House bill, and the Senate amendment, 
     and modifications committed to conference:
     Bill Goodling,
     Frank Riggs,
     Mike Castle,
     W. L. Clay,
     M. G. Martinez,
     From the Committee on Agriculture, for consideration of secs. 
     2, 101, 104(b), 106, 202(c), and 202(o) of the House bill, 
     and secs. 101, 111, 114, 203(c), 203(r), and titles III and 
     IV of the Senate amendment, and modifications committed to 
     conference:
     Bob Smith,
     Bob Goodlatte,
     Charlie Stenholm,
                                Managers on the Part of the House.

     Richard G. Lugar,
     Thad Cochran,
     Mitch McConnell,
     Tom Harkin,
     Patrick J. Leahy,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two House on the 
     amendment of the Senate to the bill (H.R. 3874) to 
     reauthorize the Child Nutrition and Special Supplemental 
     Feeding program for Women, Infants and Children programs, 
     submit the following joint statement to the House and Senate 
     in explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.

                Explanation of the Conference Agreement


                      1. Provision of Commodities

     Present law
       Permanently appropriated ``Section 32'' funds are required 
     to be used to pay, in cash, for any shortfall in states' 
     commodity entitlement, and this money is exempt from state 
     matching requirements. [Sec. 6(c) & (d) of the NSLA]
     House bill
       Deletes out-of-date provisions of current law regarding 
     payments for commodity entitlement shortfalls and the related 
     exemption from state matching requirements. [Sec. 101]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     101]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


  2. Waiver of Requirement For Weighted Averages For Nutrient Analysis

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Bars the Secretary from requiring the use of weighted 
     averages for nutrient analysis of menu items and foods 
     offered or served as part of reimbursable meals in school 
     meal programs--through September 2003. [Sec. 102]
     Conference agreement
       The conference agreement adopts the Senate provision.


                    3. Health And Safety Inspections

     Present law
       No provision.
     House bill
       Requires schools, twice during each school year, to obtain 
     state or local health and safety inspections to ensure that 
     meals provided under school meal programs are prepared and 
     served in a healthful and safe environment--if the school's 
     food service operations are not required by state or local 
     law to undergo health and safety inspections. [Sec. 102(a)]
     Senate amendment
       Requires schools, at least once during each school year, to 
     obtain a food safety inspection conducted by a state or local 
     government agency responsible for food safety inspections--if 
     a food safety inspection of the school is not required by a 
     state or local authority. [Sec. 103]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     an amendment.
       It is the intent of the Conference Committee that schools 
     which have a requirement for food safety inspections, 
     regardless of the time frame, are in compliance with this 
     provision.
       The Committee also understands that, in certain localities, 
     local offices of the State Health Department conduct 
     voluntary health and safety inspections in schools. It is the 
     Committee's interpretation of this provision that any such 
     voluntary inspection performed at least once a year fulfills 
     the school's obligation to complete annual health and safety 
     inspections.


 4. Single Permanent Agreements Between State Agencies And School Food 
                              Authorities

     Present law
       No provision.
     House bill
       Requires single agreements between state agencies and 
     school food authorities operating multiple child nutrition 
     programs (school meal programs, summer programs, and child 
     care food programs)--to the extent that a single state agency 
     administers the programs involved. The agreements are to be 
     permanent, but may be amended as necessary. [Sec. 102(b)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision, with a 
     technical amendment.
       The conferees agreement would require the use of a single 
     claim form that incorporates sections for claims for all 
     meals served. At its simplest, this would mean adding 
     sections from each current form to a single form.
       The conferees believe that the consolidated agreements and 
     single claim forms in the bill allow additional flexibility 
     for States and school districts. States may consolidate 
     program accountability reviews where schools also operate the 
     Child and Adult Care Food Program. Further, where a schools's 
     food service operations, including its Summer Food Service 
     Program operations, are managed by the same personnel, States 
     need not conduct a review of the school's summer program in 
     the same year in which its school food service operations 
     have been reviewed and determined to be satisfactory. This 
     will result in savings at the State level in that State 
     agency staff will be able to coordinate reviews among 
     programs. States may conduct additional reviews as necessary 
     where there is a concern about compliance or for new 
     sponsors, as current law provides.
       School districts could operate all programs under the same 
     meal pattern requirements. Schools would also have the same 
     menu planning options for the Summer Food Service Program 
     that school meals enjoy. This simplifies the menu planning 
     process and maintains consistency among programs. It also 
     simplifies program oversight at the State level.


                     5. Common Claiming Procedures

     Present law
       No provision.
     House bill
       Requires common reimbursement claiming procedures for meals 
     and supplements served in school meal programs, summer 
     programs, and child and adult care food programs--to the 
     extent that a single state agency administers the programs 
     involved. [Sec. 102(b)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision with a 
     technical amendment.


   6. Administration of Child Nutrition Programs by Federal Regional 
                                Offices

     Present law
       The Secretary is required to administer NSLA and CNA 
     programs, other than the WIC program--i.e., withhold and 
     administer funds due a state for federally administered 
     programs--to the extent the Secretary has done so 
     continuously since October 1980. If a state education agency 
     is not permitted to pay funds to nonpublic schools, the 
     Secretary must take over administration and payment for 
     nonpublic schools. [Sec. 10 of the NSLA & Sec. 5 of the CNA.]
     House bill
       No provision.
     Senate amendment
       Ends the requirement that the Secretary administer NSLA and 
     CNA programs--effective September 30, 2001. However, the 
     Secretary may extend federal administration for up to 2 years 
     if a state (1) demonstrates that it will not be able to take 
     responsibility for the program involved and (2) submits a 
     plan describing when and how it will assume administrative 
     responsibility. Deletes the requirement that the Secretary 
     take over administration for nonpublic schools. Requires the 
     provision of training and technical assistance to states 
     assuming administrative responsibility for NSLA/CNA programs. 
     [Sec. 104 and Sec. 201]

[[Page H9688]]

     Conference agreement
       The conference agreement adopts the House position.


             7. Schools' Eligibility Under ``Provision 2''

     Present law
       ``Provision 2'' schools opt to serve free meals to all 
     students for a 3-year period (without the normally required 
     annual family income eligibility determinations) and are 
     responsible for any extra costs. State agencies may extend 
     this term by 2 years if socio-economic data show that the 
     school's family income profile has remained stable. After a 
     2-year extension, subsequent extensions of 5 years each may 
     be allowed if the school's family income profile has remained 
     stable. [Sec. 11(a)(1) of the NSLA]
     House bill
       Requires that ``provision 2'' schools be eligible for an 
     initial 4-year period, with added 4-year extensions if socio-
     economic data show that the school's family income profile 
     has remained stable. [Sec. 103(a)]
     Senate amendment
       Same as the House bill. [Sec. 105]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment, with an amendment directing the provision 
     of grants to states to help schools seeking to apply for 
     provision 2 or provision 3 status.
       The conferees change the initial and extension periods to 4 
     years each for ``provision 2 schools.'' The new time frames 
     are applicable for schools upon initial application and, for 
     those schools already utilizing this provision, upon 
     application for extension.


            8. Rounding Adjustments to Federal Payment Rates

     Present law
       When annual inflation adjustments are made to federal 
     payment rates for meals and snacks served under school meal 
     programs and by day care centers under the CACFP, the 
     resultant rates for free and reduced-price meals/snacks 
     served to lower-income children are rounded to the nearest 
     quarter cent. Inflation-adjusted rates for ``full-price'' 
     meals/snacks are rounded down to the nearest whole cent. 
     [Sec. 11(a)(3) of the NSLA]
     House bill
       Requires that, when annual inflation adjustments are made 
     to federal payment rates for meals and snacks served under 
     school meal programs and by day care centers under the CACFP, 
     all resultant rates be rounded down to the nearest whole 
     cent. This new rounding rule would affect rates paid 
     beginning May 1, 1999. [Sec. 103(b)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     106]
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment to change the effective date to July 1, 1999.
       The Conference Committee intends that, under this section, 
     reimbursements for all breakfasts, including severe need 
     breakfasts, will, when adjusted for inflation, be rounded 
     down to the nearest whole cent.


  9. Federal Payment Rates Under The Summer Food Service Program For 
                   Alaska, Hawaii, And Outlying Areas

     Present law
       Federal payment rates for meals/snacks served under the 
     Summer Food Service program may not be varied for Alaska, 
     Hawaii, and outlying areas. Rates for meals/snacks served 
     under other child nutrition programs may be varied for 
     Alaska, Hawaii, and outlying areas to reflect cost 
     differences. [Sec. 12(f) of the NSLA]
     House bill
       Permits the Secretary to vary payment rates under the 
     Summer Food Service program for Alaska, Hawaii, and outlying 
     areas to reflect cost differences. [Sec. 104(a)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     107]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     technical amendments.


                         10. Criminal Penalties

     Present law
       Federal fines that may be imposed on those found to have 
     embezzled, willfully misapplied, stolen, or obtained by fraud 
     funds, assets, or property subject to a grant or other form 
     of assistance under the NSLA or the CNA are limited to 
     $10,000 (where the value is $100 or more). [Sec. 12(g) of the 
     NSLA]
     House bill
       Increases the limit on fines imposed for WIC program 
     violations to $25,000. [Sec. 202(s)]
     Senate amendment
       Increases the limit on fines for all NSLA and CNA 
     violations to $25,000. [Sec. 108]
     Conference agreement
       The conference agreement adopts the Senate provision.


    11. Grants For Food And Nutrition Curricula Integration Projects

     Present law
       Grants in support of projects that integrate food and 
     nutrition education into elementary school curricula are 
     authorized through FY1998. [Sec. 12(m) of the NSLA]
     House bill
       No provision.
     Senate amendment
       Extends authority for grants for food and nutrition 
     curricula integration projects through FY2003. [Sec. 109]
     Conference agreement
       The conference agreement adopts the Senate provision.


                   12. Adequate Meal Service Periods

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Provides that schools participating in federal school meal 
     programs are encouraged to establish meal service periods 
     that provide children with adequate time to fully consume 
     meals in a conducive environment. [Sec. 110]
     Conference agreement
       The conference agreement adopts the House position.
       The Conference Committee believes that the benefits derived 
     from meals provided in schools depend to a considerable 
     extent on the environment in which they are provided and 
     consumed, and that school administrators and the entire 
     school community play an essential role in assuring that 
     children receive the full benefit of such meals. Accordingly, 
     the conferees call on the Secretary to encourage schools to 
     make every effort to establish meal service periods that 
     provide children adequate time to fully consume their meals 
     and to provide an environment conducive to eating those 
     meals.


                       13. Buy American Provision

     Present law
       No provision.
     House bill
       Requires that schools located in the contiguous U.S. and 
     participating in school meal programs purchase--to the extent 
     practicable--only ``food products that are produced in the 
     United States.'' ``Food products that are produced in the 
     United States'' are defined as: (1) unmanufactured food 
     products grown or produced in the U.S. and (2) food products 
     that are manufactured in the U.S. substantially from 
     agricultural products grown or produced in the U.S. Also 
     requires that ``recipient agencies'' in Hawaii purchase food 
     products grown in Hawaii in sufficient quantities to meet 
     school meal program needs. [Sec. 104(b)]
     Senate amendment
       Same as the House bill--except for (1) technical 
     differences and (2) the House provision requiring purchases 
     of foods grown in Hawaii. [Sec. 111]
     Conference Agreement
       The conference agreement adopts the House provision with a 
     technical amendment.
       The conferees bill incorporates language similar to that 
     proposed by the U.S. Department of Agriculture which requires 
     schools in the contiguous States participating in the 
     National School Lunch and Breakfast Programs to purchase, 
     whenever possible, only food products that are produced in 
     the United States for those programs.
       Although Hawaii is exempt from ``Buy American'' provisions, 
     the bill eliminates this exemption with respect to food 
     products that are produced in Hawaii in sufficient quantities 
     to meet the needs of meals provided under the school lunch 
     and breakfast programs.
       Finally, the bill includes a definition of ``food products 
     that are produced in the United States.'' The conferees 
     included this definition for a variety of reasons. First, the 
     conferees determined it was important to assist local schools 
     in determining which products qualify under this new 
     requirement. Second, the conferees believe it is important to 
     make sure that ``food products that are produced in the 
     United States'' means products are produced ``substantially'' 
     from agricultural products grown in the United States. Under 
     the ``Buy American Act'' substantially means over 51 percent 
     from American products. However, the Department 
     of Agriculture has been using a definition of ``food 
     products that are produced in the United States'' that 
     includes products which are canned and labeled in the 
     United States, but may have 100 percent foreign 
     ingredients. By adding this definition, the bill serves 
     both the needs of schools that purchase these products and 
     American agriculture.
       The conferees do not intend to specify how this provision 
     will be implemented by individual schools nor do the 
     conferees expect the Secretary to issue regulations or 
     guidance to schools specifying how this provision will be 
     implemented.


                       14. Procurement Contracts

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       When acquiring goods/services using NSLA/CNA funds, allows 
     states, state agencies, and schools to contract with those 
     who have provided assistance in drafting the contract 
     specifications. [Sec. 112]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     an amendment to limit

[[Page H9689]]

     permission to award contracts to persons who have provided 
     specification information and to clarify that this provision 
     does not apply to the WIC program.
       The Conference Committee intends for this provision to 
     encourage Child Nutrition program administrators to obtain 
     information from as many sources as possible. This provision 
     is not intended to prevent a program from participating in 
     group purchasing arrangements or prevent program 
     administrators from, where permitted, forming purchasing 
     cooperatives. This provision is not intended to allow a 
     potential contractor or other interested party to participate 
     in the procurement process through drafting the procurement 
     specification, procedures or documents.
       In addressing the procurement actions by a school food 
     service authorities or other subgrantees, the conferees 
     expect the Department to implement its responsibilities, in 
     its pending rulemaking and administration of program 
     authorities with generous deference to the discretion of 
     State and local authorities especially when dealing with 
     State and local procurement laws and regulations. State and 
     local authorities, not the federal government bear 
     responsibility for the cost of such subgrantee procurements. 
     The conferees expect the Secretary to implement procurement 
     rules to allow purchase of locally produced products to the 
     extent practicable.
       The Conferees are especially concerned that no situation 
     arise in which federal authorities require State or local 
     school food service authorities to issue Requests for 
     Proposals in such a prescriptive form as to inhibit 
     innovation that might improve service or reduce costs for the 
     local school food service authority. Similarly, the Conferees 
     expect the Department to assure that it exercises all the 
     flexibility available to it in order to avoid unnecessary 
     expense to school districts when they implement federal 
     requirements.
       The great success of the National School Lunch and 
     Breakfast Programs is primarily due to the interwoven 
     responsibilities for, and commitment to, the mission of those 
     programs by federal, State, and local authorities. Through 
     its oversight functions, Congress intends to assure that 
     federal program responsibilities are executed in a manner 
     that respects the role of State and local food service 
     authorities. The Department should be prepared to promptly 
     and fully account to the Committees of jurisdiction for each 
     instance in which federal authorities address a matter of a 
     subgrantee procurement.


  15. Summer Food Service Program: Limits on The Number of Sites And 
           Children Served by Private Nonprofit Organizations

     Present law
       Private nonprofit Summer Food Service program sponsors are 
     limited to five urban sites and 20 rural sites. They also are 
     limited to serving not more than a total of 2,500 children 
     (with not more than 300 at any one site, unless a waiver is 
     granted to serve up to 500 children). [Sec. 13(a)(7)(B) of 
     the NSLA]
     House bill
       Increases the limit on sites operated by private nonprofit 
     sponsors to 25 (with no variation between urban and rural 
     sites). Eliminates the limit (2,500) on the total number of 
     children served by a private nonprofit sponsor. Retains per-
     site limits on the number of children served by a private 
     nonprofit sponsor (300, or 500 if a waiver is granted). [Sec. 
     105(a)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     113(a)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


16. Summer Food Service Program: Meal Preparation by Private Nonprofit 
                             Organizations

                             Organizations

     Present law
       Private nonprofit Summer Food Service program sponsors must 
     prepare their own meals/snacks or obtain meals/snacks from a 
     public facility (e.g., a school). [Sec. 13(a)(7)(B) of the 
     NSLA]
     House bill
       Eliminates the requirement that private nonprofit sponsors 
     prepare their own meals/ snacks or obtain meals/snacks from a 
     public facility. [Sec. 105(a)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     113(b)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


17. Summer Food Service Program: ``Indication of Interest'' Requirement 
                  For Private Nonprofit Organizations

     Present law
       Private nonprofit Summer Food Service program sponsors are 
     only allowed to participate in areas where school or other 
     public sponsors have not indicated an interest in running a 
     summer program by March 1st of each year. [Sec. 13(a)(7)(B) 
     of the NSLA]
     House bill
       Eliminates the March 1st ``indication of interest'' 
     requirement for private nonprofit sponsors. [Sec. 105(a)]
     Senate amendment
       Same as the House bill. [Sec. 113(b)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


   18. Summer Food Service Program: ``Offer Vs. Serve'' Restrictions

     Present law
       School food authorities participating in the Summer Food 
     Service program may permit children attending a site on 
     school premises operated directly by the authority to 
     refuse one or more meal items without affecting federal 
     payments made for the meal. [Sec. 13(f)(7) of the NSLA]
     House bill
       Allows school food authorities sponsoring summer programs 
     to permit children to refuse one or more meal items without 
     affecting federal payment--without regard to whether they are 
     attending a site on school premises operated directly by the 
     authority. [Sec. 105(b)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision.


    19. Summer Food Service Program: Use of Food Service Management 
                               Companies

     Present law
       Private nonprofit Summer Food Service program sponsors may 
     not contract with food service management companies. [Sec. 
     13(l) of the NSLA]
     House bill
       Eliminates the bar against private nonprofit sponsors 
     contracting with food service management companies. [Sec. 
     105(c)]
     Senate amendment
       Same as the House bill. [Sec. 113(b)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


     20. Summer Food Service Program: Registration of Food Service 
                          Management Companies

     Present law
       States are required to register food service management 
     companies that wish to contract with Summer Food Service 
     program sponsors. Registration must include: (1) 
     certification that the company meets health, safety, and 
     sanitation standards, (2) disclosure of past and present 
     owners, (3) records of contract terminations or disallowances 
     and sanitary code violations, and (4) addresses of the 
     company's food preparation sites. Companies cannot be 
     registered if they lack administrative/financial capability 
     or have been seriously deficient in their participation in 
     the program. The Secretary is required to maintain a record 
     of all registered companies. [Sec. 13(l) of the NSLA]
     House bill
       Allows states to register food service management 
     companies. Eliminates current-law stipulations as to what 
     registration must include. Eliminates the current-law 
     requirement that the Secretary maintain a list of registered 
     companies. [Sec. 105(c)]
     Senate amendment
       Same as the House bill. [Sec. 113(b)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


            21. Summer Food Service Program: Reauthorization

     Present law
       Appropriations for the Summer Food Service program are 
     authorized through FY1998. [Sec. 13(q) of the NSLA]
     House bill
       Extends the appropriations authorization through FY2003. 
     [Sec. 105(d)]
     Senate amendment
       Same as the House bill. [Sec. 113(c)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
       The conferees intend that the removal of barriers to 
     participation by private non-profit sponsors will increase 
     access of low income children to nutritious meals during the 
     summer months when they are not in school. However, because 
     of past problems, the Committees of jurisdiction will closely 
     monitor the performance of private non-profit sponsors once 
     these restrictions have been removed. Should past abuses be 
     repeated, the Committees will move swiftly to reinstate these 
     barriers.


              22. Commodity Distribution: Reauthorization

     Present law
       The Secretary is required to use permanently appropriated 
     funds available under ``Section 32'' of the Act of August 24, 
     1935, and funds available to the Commodity Credit Corporation 
     (CCC) to purchase agricultural commodities needed to maintain 
     annually programmed levels of commodity assistance for 
     programs under the NSLA, the CNA, and the Older Americans 
     Act. This requirement expires at the end of FY1998. [Sec. 
     14(a) of the NSLA]
     House bill
       Extends the requirement to use Section 32 and CCC funds to 
     maintain commodity assistance levels through FY2003. [Sec. 
     108]
     Senate amendment
       Same as the House bill. [Sec. 114]

[[Page H9690]]

     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


      23. Child And Adult Care Food Program: Licensing of Centers

     Present law
       CACFP centers must have federal, state, or local licensing 
     or approval (or be complying with appropriate licensing/
     approval renewal procedures). Where federal, state, or local 
     licensing/ approval is not available, centers may participate 
     in the CACFP if they receive funds under Title XX of the 
     Social Security Act or otherwise demonstrate that they meet 
     alternate licensing/approval standards. [Sec. 17(a)(1) of the 
     NSLA]
     House bill
       Revises licensing/approval conditions for CACFP centers by 
     (1) removing requirements that schools operating programs 
     under the CACFP meet any child care licensing/approval 
     standards, (2) allowing institutions that--are (a) located 
     where federal, state, or local licensing/approval is not 
     required and (b) provide care to school children outside of 
     school hours--to participate in the CACFP as long as the 
     institution meets state and local health and safety 
     standards. Also deletes permission to participate in the 
     CACFP under licensing/approval requirements if the center 
     receives Title XX funds. [Sec. 107(a)]
     Senate amendment
       Same as the House bill, except that the permission to 
     participate if a center receives Title XX funds is retained. 
     [Sec. 115(b)]
     Conference agreement
       The conference agreement adopts the House provision.
       The Conference Committee does not intend to disqualify any 
     institution which originally qualified under Title XX of the 
     Social Security Act.


   24. Child And Adult Care Food Program: Eligibility of Even Start 
                              Participants

     Present law
       Children who have not entered kindergarten and are enrolled 
     as participants in the Even Start program must be considered 
     automatically (``categorically'') eligible for ``benefits'' 
     under the CACFP. This requirement expired September 30, 1997. 
     [Sec. 17(c)(6) of the NSLA]
     House bill
       Extends automatic CACFP eligibility for Even Start 
     participants through FY2003. [Sec. 107(b)]
     Senate amendment
       Deletes provisions for automatic CACFP eligibility for Even 
     Start participants. [Sec. 115(c)]
     Conference agreement
       The conference agreement adopts the House provision with an 
     amendment to make the automatic eligibility of Even Start 
     participants permanent.
       The conferees note that participants in the Even Start 
     family literacy program generally have lower family incomes 
     than those families participating in the Head Start program. 
     Providing automatic eligibility for the children of these 
     families places them on an equal footing with Head Start 
     participants.


           25. Child And Adult Care Food Program: Site Visits

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires state agencies to perform a site visit to private 
     institutions prior to approval for the CACFP. Also requires 
     state agencies to conduct periodic site visits to private 
     institutions in the CACFP that the agency determines to have 
     a high probability of program abuse. [Sec. 115(d)]
     Conference agreement
       The conference agreement adopts the Senate provision.


        26. Child And Adult Care Food Program: Tax Exempt Status

     Present law
       Private institutions that are ``moving toward compliance'' 
     with requirements for tax exempt status may participate in 
     the CACFP. No time limit is placed on how long the 
     institution can be ``moving toward compliance.'' [Sec. 
     17(d)(1) of the NSLA]
     House bill
       Permits a private institution moving toward compliance with 
     requirements for tax exempt status to participate in the 
     CACFP for not more than 6 months, unless it can demonstrate 
     that its inability to obtain tax exempt status is beyond its 
     control--in which case the state agency may grant a single 
     extension not to exceed 90 days. [Sec. 107(c)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     115(e)]
     Conference agreement
       The conference agreement adopts the Senate provision.


  27. Child And Adult Care Food Program: Incomplete Application Notice

     Present law
       If an institution wishing to participate in the CACFP 
     submits an incomplete application, the state agency must 
     notify it within 15 days of receipt of the application. [Sec. 
     17(d)(1) of the NSLA]
     House bill
       Deletes the incomplete application notification 
     requirement. [Sec. 107(c)]
     Senate amendment
       Same as the House bill. [Sec. 115(e)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
       The conferees understand that an institution must have 
     feedback from the State as to whether the application is 
     complete. Therefore, the conferees encourage State agencies 
     to respond to institutions, in a timely fashion, as to the 
     completeness of an application.


 28. Child And Adult Care Food Program: Set-aside of Funding For Audits

     Present law
       The Secretary is required to make available to states 2% of 
     CACFP funds for the purpose of conducting audits of 
     participating institutions. [Sec. 17(i) of the NSLA]
     House bill
       Reduces the set-aside of CACFP funding for audits from 2% 
     to 1%. [Sec. 107(d)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision with an 
     amendment to reduce the set-aside for audit to 1.5%, and to 
     1% in 2005 through 2007 only.
       The Conference Committee included the 2005 through 2007 
     change in the set aside only for the purpose of complying 
     with budget rules. It is the intention of the conferees that 
     the audit funds be restored before the 2005 deadline.


29. Child And Adult Care Food Program: For-profit Center Demonstration 
                                Projects

     Present law
       Two statewide demonstration projects are authorized under 
     which for-profit organizations may participate in the CACFP 
     if at least 25% of the children enrolled (or 25% of licensed 
     capacity) meet eligibility requirements for free or reduced-
     price meals. These projects operate in Iowa and Kentucky, and 
     authorization expires at the end of FY1998. [Sec. 17(p) of 
     the NSLA]
     House bill
       Makes permanent (and clarifies that funding is mandatory 
     for) the two-state, for-profit CACFP demonstration project. 
     [Sec. 107(e)]
     Senate amendment
       Extends the two-state, for-profit CACFP demonstration 
     project through FY 2003, and clarifies that funding for the 
     project is mandatory. [Sec. 115(f)]
     Conference agreement
       The conference agreement adopts the House provision.


 30. Child And Adult Care Food Program: Programs For Homeless Children

     Present law
       Under the Homeless Children Nutrition program, public and 
     private nonprofit entities selected by the Secretary receive 
     payments for free food service provided to children under age 
     6 in emergency shelters. In addition, eligible summer program 
     sponsors can include those conducting regularly scheduled 
     food service primarily for homeless children (age 18 or under 
     or who are handicapped of any age). [Sec. 17B and sec. 
     13(a)(3) of the NSLA]
     House bill
       Deletes current-law provisions for payments for food 
     service to homeless children. Replaces current-law provisions 
     with authority for public and private nonprofit emergency 
     homeless shelters meeting state or local health and safety 
     standards to participate in the CACFP. Free meals and snacks 
     would be provided to homeless children residing in 
     participating shelters--through age 12. Payments (at free 
     meal/snack rates) would be provided for three meals or two 
     meals and a snack per child per day. [Sec. 107(f) & sec. 
     201(a)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     116 and Sec. 202(a)]
     Conference agreement
       The conference adopts the Senate bill with an amendment to 
     include children older than 12 if they are migrants or 
     disabled.


       31. Child And Adult Care Food Program: Management Support

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the Secretary to provide training and technical 
     assistance to help state agencies improve CACFP program 
     management and oversight. To carry out this provision, 
     requires that, for FY 1999 through FY 2003, the Secretary 
     reserve $1 million a year from amounts made available for the 
     CACFP. [Sec. 115(g)]
     Conference agreement
       The conference agreement adopts the Senate provision.
       The Department is to use the training and technical 
     assistance funding provided under the Child and Adult Care 
     Food Program in support of its current effort to improve 
     program integrity and quality and to deal with the increasing 
     incidence of mismanagement and fraud identified in the 
     program. In addition, it is to be used to help ensure proper 
     implementation of the family day care home

[[Page H9691]]

     tiering requirements. It is critical that this most 
     significant change in Program structure is fully understood 
     and properly implemented at all levels of Program 
     administration and that barriers to implementation are 
     identified and rectified. Specific uses of the funding are to 
     include development of technical assistance materials for 
     program cooperators and training of State agencies.


   32. Child And Adult Care Food Program: Information About The WIC 
                                Program

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the Secretary to provide state CACFP agencies with 
     information about the WIC program. States agencies must 
     ensure that participating day care centers and homes receive 
     the materials, that they are provided periodic updates, and 
     that parents are provided the information at enrollment. 
     [Sec. 115(g)]
     Conference agreement
       The conference agreement adopts the Senate provision.


    33. Child And Adult Care Food Program: Programs For ``At-risk'' 
                                Children

     Present law
       No provision.
     House bill
       Allows institutions (schools and other public or private 
     nonprofit organizations) that provide care to ``at-risk'' 
     schoolchildren during after-school hours, weekends, or 
     holidays in the regular school year to receive CACFP payments 
     for snacks (one per child per day) served free to 
     participating children. ``At-risk'' schoolchildren are 
     defined as those ages 12 through 18 living in an area served 
     by a school enrolling elementary students in which at least 
     50% are certified eligible for free or reduced-price school 
     meals. [Sec. 107(g)]
     Senate amendment
       Same as the House bill, except for technical differences 
     and: (1) participating institutions must be ``organized 
     primarily to provide care to at-risk schoolchildren''; (2) 
     ``at-risk'' schoolchildren are defined so as to include those 
     below age 12. [Sec. 115 (a) & (g)]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     an amendment requiring that assisted programs serve an 
     educational or enrichment purpose.
       The conferees include language requiring the after-school 
     programs to provide education and enrichment for children. 
     The inclusion of this language is meant to ensure that 
     children receiving this benefit are participating in a 
     program that provides the types of activities known to help 
     reduce or prevent involvement in juvenile crime. It is not 
     expected that support would be provided to members of 
     athletic teams and others who are not participating in such 
     activities.
       The Conference Committee intends that children who turn age 
     19 during the school year be eligible for reimbursement. The 
     Committee encourages the Department to give guidance to 
     states on this issue.


                   34. Children in After-school Care

     Present law
       Schools operating school lunch programs and sponsoring 
     after-school care programs may receive payments (varied by 
     family income) for snacks served to children through age 12 
     (or age 15 in the case of migrant or handicapped children). 
     Only schools participating in the CACFP on May 15, 1989 are 
     eligible. [Sec. 17A of the NSLA]
     House bill
       Removes the May 1989 participation requirement for schools' 
     eligibility. Requires that eligible schools' after-school 
     programs have an ``educational or enrichment purpose.'' 
     Allows payments (varied by family income) for snacks served 
     to children through age 18. [Sec. 108]
     Senate amendment
       Same as the House bill, except: (1) requires that eligible 
     programs be ``organized primarily to provide care'' for 
     children in after-school settings; (2) retains current-law 
     provisions (age limits and payments varied by family 
     income) for children not living in a lower-income area; 
     (3) provides payments for free snacks served to children 
     (through age 18) who live in a lower-income area (i.e., 
     served by a school enrolling elementary school students in 
     which at least 50% are certified eligible for free or 
     reduced-price school meals. [Sec. 117]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     an amendment to raise the age to 18 for means-tested snacks.
       The inclusion of this language is meant to ensure that 
     children receiving this benefit are participating in a 
     program that provides the types of activities known to help 
     reduce or prevent involvement in juvenile crime. It is not 
     expected that support would be provided to members of 
     athletic teams and others who are not participating in such 
     activities.
       The Conference Committee intends that children who turn age 
     19 during the school year continue to be eligible for 
     reimbursement. The Committee encourages the Department to 
     give guidance to states on this issue.


                           35. Pilot Projects

     Present law
       A ``boarder baby'' pilot project for food and nutrition 
     services to homeless pregnant women and homeless mothers or 
     guardians of infants is required through FY1998. A pilot 
     project to provide meals and snacks to adolescents 
     participating in programs outside of school hours is 
     authorized through FY1998. A pilot project to offer students 
     additional choices of fruits, vegetables, cereals, and grain-
     based products (including organically produced products) was 
     authorized through FY1997. A pilot project to offer students 
     additional choices of low-fat dairy products and lean meat 
     and poultry products (including organically produced 
     products) was authorized through FY1997. [Sec. 18(c), (e), 
     (h), & (i) of the NSLA]
     House bill
       No provisions.
     Senate amendment
       Extends the requirement to operate a ``boarder baby'' pilot 
     project through FY2003. Deletes authority for a pilot project 
     for adolescents in after-school programs. Deletes authority 
     for a pilot project involving additional choices of fruits, 
     vegetables, cereals, and grain-based products. Deletes 
     authority for a pilot project involving additional choices of 
     low-fat dairy products and lean meat and poultry products. 
     [Sec. 118]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     an amendment to delete authority for the boarder baby pilot 
     project.


                  36. School Breakfast Pilot Projects

     Present law
       Pilot projects are authorized to reduce paperwork and 
     application and meal counting requirements in school meal 
     programs and to make changes that will increase participation 
     in school meal programs. This authority expired July 31, 
     1998. [Sec. 18(i) of the NSLA]
     House bill
       Replaces current-law authority for pilot projects to reduce 
     paperwork and application and meal counting requirements and 
     increase participation in school meal programs.
       Establishes discretionary authority for pilot projects for 
     free breakfasts served to all elementary school students in 
     participating schools.
       Subject to the availability of advance appropriations, 
     requires the Secretary to make grants, to up to five states, 
     to conduct pilot projects in elementary schools that would 
     reduce paperwork, simplify meal counting requirements, and 
     make changes that increase participation in the School 
     Breakfast program.
       On their application, the Secretary would select states for 
     pilot project grants and could waive NSLA & CNA requirements 
     that would preclude making grants to conduct projects.
       The Secretary would be responsible, through the FNS, for an 
     evaluation of the projects--including determining their 
     effect on academic achievement, attendance, and dietary 
     intake and the proportion of children who eat breakfast. An 
     evaluation report is required on completion of the projects.
       States would apply for pilot project grants and provide 
     information relative to the operation and results of the 
     pilots. States receiving a pilot project grant would select 
     and make grants to school food authorities. In the selection 
     of school food authorities, states would be required, to the 
     extent practicable, to provide for an equitable distribution 
     among urban and rural schools and schools with varying family 
     income levels.
       Participating school food authorities would (1) conduct a 
     pilot project for 3 years, (2) ensure that some schools in 
     their jurisdiction do not participate (for evaluation 
     purposes), (3) agree to serve all breakfasts free to 
     participating children, and (4) meet any other requirements 
     established by the Secretary. School food authorities with a 
     history of NSLA or CNA violations would be barred from 
     participation.
       Participating school food authorities would receive 
     payments for each breakfast at the basic free rate, and also 
     would receive commodities valued at 5 cents a meal (deducted 
     from their cash payments).
       The total amount received by a participating school would 
     be funded with payments under the regular School Breakfast 
     program equal to that in the prior year, adjusted for 
     inflation and enrollment changes, plus amounts derived from 
     any appropriations made to carry out the pilot project.
       Such sums as are necessary are authorized to carry out the 
     pilot projects, and amounts must be specifically provided in 
     appropriations Acts. [Sec. 109]
     Senate amendment
       Deletes current-law authority for pilot projects to reduce 
     paperwork and application and meal counting requirements and 
     increase participation in school meal programs.
       Requires the Secretary to make grants for pilot projects 
     for free breakfasts served to all elementary school students 
     in participating schools.
       For school years 1999-2000, 2000-2001, and 2001-2002, 
     requires the Secretary to make grants to state agencies to 
     conduct pilot projects in elementary schools in up to six 
     school food authorities that would reduce paperwork, simplify 
     meal counting requirements, and evaluate the effect of 
     providing free breakfasts (without regard to family income) 
     on participation, academic achievement, attendance, and 
     dietary intake.

[[Page H9692]]

       State agencies would nominate school food authorities for 
     the Secretary's approval as pilot projects.
       The Secretary would approve school food authorities for 
     participation and could waive NSLA & CNA requirements that 
     would preclude making grants to conduct projects. Projects 
     would be selected so as to provide (1) an equitable 
     distribution of projects among urban and rural schools, (2) 
     an equitable distribution of projects among schools with 
     varying family income levels, and (3) evaluation of projects 
     to distinguish the effects of the projects from other factors 
     (e.g., changes or differences in educational policies or 
     programs).
       The Secretary would be responsible, through the FNS, for an 
     evaluation of the projects--including determining their 
     effect on academic achievement, attendance, dietary intake, 
     the proportion of children students who eat breakfast, and 
     the paperwork required of schools. An evaluation report is 
     required on completion of the projects.
       States would apply for pilot project grants, distribute the 
     grants, and provide information relative to the operation and 
     results of the pilots.
       Participating school food authorities would (1) conduct a 
     pilot project for 3 years, (2) have under their jurisdiction 
     a sufficient number of schools that are not participating in 
     the project to permit evaluation, (3) agree to serve all 
     breakfasts free to participating children, and (4) meet any 
     other requirements established by the Secretary. School 
     food authorities with a history of NSLA or CNA violations 
     would be barred from participation.
       Participating school food authorities would receive 
     payments for each breakfast at the basic (or ``severe-need'') 
     rate for free breakfasts. The total amount received by a 
     participating school would be funded with payments under the 
     regular School Breakfast program equal to that in the prior 
     year, adjusted for inflation and enrollment changes, plus 
     amounts derived from the added mandatory funding provided for 
     the pilot projects.
       Funding of $20 million is required to be provided for the 
     pilot projects--not more than $12 million of which would be 
     available for evaluation purposes. [Sec. 119]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     technical difference and an amendment to fund the pilot out 
     of discretionary funds.


                 37. Training And Technical Assistance

     Present law
       Appropriations of $1 million a year are authorized for 
     training activities and technical assistance to improve 
     skills of those employed in food service programs under the 
     NSLA and the CNA. This authorization expires at the end of 
     FY1998. [Sec. 21(e)(1) of the NSLA]
     House bill
       Extends the appropriations authority for training and 
     technical assistance through FY2003. [Sec. 110]
     Senate amendment
       Same as the House bill. [Sec. 120]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


                 38. Food Service Management Institute

     Present law
       Annual funding ($2 million a year) is required to be 
     provided for a national Food Service Management Institute. 
     [Sec. 21(e)(2) of the NSLA]
     House bill
       No provision.
     Senate amendment
       Increases the mandatory annual funding for the Food Service 
     Management Institute to $3 million a year. [Sec. 121]
     Conference agreement
       The conference agreement adopts the Senate provision.


                   39. Compliance And Accountability

     Present law
       Appropriations of $3 million a year are authorized for a 
     ``unified accountability system'' (also called the 
     ``coordinated review effort,'' or CRE) for ensuring 
     compliance with the NSLA. This authorization expired at the 
     end of FY1996. [Sec. 22 of the NSLA]
     House bill
       Extends the appropriations authorization for the unified 
     accountability system (CRE) through FY2003. [Sec. 111]
     Senate amendment
       Same as the House bill. [Sec. 122]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


                     40. Information Clearinghouse

     Present law
       The Secretary is required to contract with a non-
     governmental organization to establish and maintain an 
     information clearinghouse for non-governmental groups that 
     assist low-income persons and communities with regard to food 
     assistance and self-help activities to improve the lives of 
     low-income persons and reduce reliance on government agencies 
     for food and other aid. Mandatory funding ($100,000) ends 
     with FY1998. [Sec. 26 of the NSLA]
     House bill
       Allows the Secretary to contract with any organization 
     previously contracted with without competition, if the 
     organization has performed satisfactorily under the prior 
     contract. Allows the Secretary to provide a contracting 
     organization up to $150,000 a year through FY2003. Changes 
     the requirement for mandatory funding to an authorization of 
     appropriations. [Sec. 112]
     Senate amendment
       Increases and extends mandatory funding for the information 
     clearinghouse contract to $166,000 a year through FY2003. 
     [Sec. 123]
     Conference agreement
       The conference agreement adopts the Senate provision.


       41. Special Dietary Needs of Individuals With Disabilities

     Present law
       The Secretary (in consultation with the Attorney General 
     and the Secretary of Education) is required to develop and 
     approve guidance for accommodating the medical and special 
     dietary needs of disabled children in programs under the NSLA 
     and the CNA. Subject to the availability of appropriations, 
     the Secretary is required to make competitive grants to state 
     agencies to assist with nonrecurring expenses incurred in 
     accommodating the medical and special dietary needs of 
     disabled children. Annual appropriations of $1 million are 
     authorized through FY1998. [Sec. 27 of the NSLA]
     House bill
       Replaces expiring current-law provisions with authority for 
     the Secretary to carry out activities to help accommodate the 
     special dietary needs of individuals with disabilities 
     participating in programs under the NSLA and the CNA. The 
     activities may include developing and disseminating guidance 
     and technical assistance materials, conducting training, and 
     providing grants. Authorizes appropriations (such sums as 
     necessary) through FY2003. [Sec. 113]
     Senate amendment
       Same as the House bill, except for technical differences. 
     No specific provision authorizing appropriations is included. 
     [Sec. 124]
     Conference agreement
       The conference agreement adopts the House provision with 
     technical amendments.


    42. State Administrative Expense Funds: 10% Transfer Limitation

     Present law
       Funds made available for state administrative expenses 
     (including state administrative expense funding related to 
     the Summer Food Service program) must be used for the cost 
     of administering the programs for which the money was 
     allocated. However, state agencies may transfer up to 10% 
     of an allocation to other programs. [Sec. 7(a)(6) of the 
     CNA]
     House bill
       Removes the 10% limit on transferring administrative 
     expense funding among programs. State agencies would be able 
     to use administrative expense funds without regard to the 
     basis on which they were allocated. [Sec. 201(b)]
     Senate amendment
       Same as the House bill. [Sec. 202(b)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


        43. State Administrative Expense Funds: Reauthorization

     Present law
       Appropriations for state administrative expenses are 
     authorized through FY1998. [Sec. 7(g) of the CNA]
     House bill
       Extends the authorization of appropriations for state 
     administrative expenses through FY2003. [Sec. 201(c)]
     Senate amendment
       Same as the House bill. [Sec. 202(c)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


         44. The WIC Program: Certification Period For Infants

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires that infants be certified, relative to income 
     only, every 180 days. This requirement would not apply to 
     those who are ``presumptively'' eligible because of receipt 
     of public assistance benefits (e.g., food stamps, Medicaid). 
     [Sec. 203(a)]
     Conference agreement
       The conference agreement adopts the House position.


           45. The WIC Program: Physical Presence Requirement

     Present law
       No provision.
     House bill
       Requires that all applicants be physically present at each 
     certification determination. Local agencies could waive this 
     requirement: (1) where there is a conflict with the Americans 
     with Disabilities Act, (2) if it would present a barrier to 
     participation by a child who was present at the initial 
     certification and is receiving ongoing health care from a 
     non-WIC provider, or (3) if it would present a barrier to 
     participation by a child who was

[[Page H9693]]

     present at the initial certification, was present at a 
     certification determination in the last year, and has working 
     parents. [Sec. 202(a)(1)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     203(b)]
     Conference agreement
       The conference agreement adopts the House provision with a 
     technical amendment.
       Regarding the physical presence requirement, the Committee 
     acknowledges that physical presence at the WIC clinic allows 
     participants to fully take advantage of all the benefits 
     offered through WIC. The WIC Program has played a critical 
     role in increasing immunization rates among young children, 
     primarily due to its role as a gateway to health services. 
     Notwithstanding the importance of physical presence, the 
     Committee wishes to stress that in the implementing this 
     provision, WIC agencies must develop flexible policies. Such 
     policies should assure that medically fragile individuals are 
     not required to come in to the clinic if doing so would 
     exacerbate their illness. In addition, WIC agencies are 
     encouraged to continue offering early morning and late 
     evening appointments to accommodate the schedules of working 
     parents. The conferees do not intend the waiver authority 
     authorized in this section to be applied to two parent 
     families with only one working parent.


       46. The WIC Program: Income Documentation And Verification

     Present law
       No provision.
     House bill
       Requires that all applicants provide documentation of 
     household income or participation in a public assistance 
     program. State agencies could waive this requirement: (1) for 
     applicants for whom the necessary documentation is not 
     available and (2) for applicants (such as homeless persons) 
     for whom it would present a barrier to participation. The 
     Secretary would be required to prescribe regulations to carry 
     out the income documentation requirement. [Sec. 202(a)(2)]
     Senate amendment
       Same as the House bill except for technical differences and 
     an added requirement that the Secretary issue regulations 
     prescribing when and how verification of income will be 
     required. [Sec. 203(b)]
     Conference agreement
       The conference agreement adopts the House provision with a 
     technical amendment.


   47. The WIC Program: Education And Materials Relating to Drug And 
                              Alcohol Use

     Present law
       State agencies must ensure that nutrition education and 
     drug abuse education is provided to all pregnant, postpartum, 
     and breast-feeding women and to parents and caretakers of 
     infants and child participants. [Sec. 17(e)(1) of the CNA]
     House bill
       Adds a requirement that local agencies provide education or 
     education materials relating to the effects of drug and 
     alcohol use by pregnant, postpartum, or breast-feeding women 
     on developing children. [Sec. 202(b)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision.


   48. The WIC Program: Distribution of Nutrition Education Materials

     Present law
       No provision.
     House bill
       Permits the Secretary to provide, in bulk quantity, 
     nutrition education materials developed under the WIC program 
     to state agencies administering the Commodity Supplemental 
     Food program--at no cost to that program. [Sec. 202(c)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     203(c)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
       The Committee intends that these materials come from 
     already existing materials.


           49. The WIC Program: Variety of Foods Requirement

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires states using a retail purchase system to develop a 
     plan to limit participation by stores to those that offer a 
     variety of foods (as determined by the Secretary). [Sec. 
     203(d)]
     Conference agreement
       The conference agreement adopts the House position.


        50. The WIC Program: Participants at More Than One Site

     Present law
       No provision.
     House bill
       Requires each state agency to implement a system designed 
     to identify recipients who are participating at more than one 
     site. [Sec. 202(d)]
     Senate amendment
       Same as the House bill with technical differences. [Sec. 
     203(f)]
     Conference agreement
       The conference agreement adopts Senate provision.


                 51. The WIC Program: High Risk Vendors

     Present law
       No provision.
     House bill
       Requires each state agency to identify vendors that have a 
     high probability of program abuse and conduct compliance 
     investigations of these vendors. Final regulations 
     implementing this requirement would be due by March 1, 1999. 
     [Sec. 202(e)]
     Senate amendment
       Same as the House bill, but does not include a deadline for 
     final regulations. [Sec. 203(g)]
     Conference agreement
       The conference agreement adopts the House provision with an 
     amendment to promulgate proposed rules by March 1, 1999 and 
     final rules by March 1, 2000.


                  52. The WIC Program: Reauthorization

     Present law
       Appropriations for the WIC program are authorized through 
     FY1998. Funding for nutrition services and administration 
     (NSA) must be allocated on the basis of a formula prescribed 
     by the Secretary--through FY1998. [Sec. 17(g)(1) and Sec. 
     17(h)(2)(A) of the CNA]
     House bill
       Extends the appropriations authorization and the 
     requirement for allocating NSA funds through FY2003. [Sec. 
     202(f) and Sec. 202(h)(1)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     203(h)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
       The Conference Committee recognizes that WIC helps to 
     assure normal growth in children, reduces levels of anemia, 
     increases immunization rates, provides better access to 
     regular health care and improves diets. WIC blood work 
     testing is an important factor in determining the health 
     progress of children in the WIC program. WIC blood work 
     testing is currently required at certification, which 
     generally does not coincide with the usual schedule of well-
     child pediatric care visits. This results in enrollment and 
     re-certification delays, duplicated testing and extra 
     physical visits.
       The Committee is concerned over the delay in publishing 
     final regulations on the coordination of blood work 
     requirements between the WIC schedule and the Center for 
     Disease Control and Prevention's periodicity schedule. The 
     Committee expects a final rule to be published no later than 
     6 months after the amendments made to the Child Nutrition Act 
     of 1966 are enacted.
       The Committee understands that the Department of 
     Agriculture's Food and Nutrition Service, the WIC directors, 
     the Center for Disease Control and Prevention's National 
     Immunization Program and others have been working to 
     collaboratively promote and support a coordinated strategic 
     approach for linking pre-school immunization and WIC services 
     on the Federal, State and local level. The Committee urges 
     the Department, working with WIC directors, the CDC's 
     National Immunization Program and others, to move 
     expeditiously to complete this effort which should address 
     certain areas of concern including: funding, methodologies, 
     and valid measurements of process and outcome.
       The Committee also recognizes the importance of addressing 
     the ethnic and cultural eating patterns of WIC participants 
     and strongly endorses the Department's current effort to 
     provide guidelines to local agencies regarding food 
     substitutions to accommodate ethnic and cultural eating 
     patterns. Such guidelines should assure that the food 
     substitutions will accommodate the supplemental nutritional 
     needs of WIC participants. The Committee urges the Department 
     to proceed expeditiously to complete its final guidelines 
     regarding this matter.
       The conferees are aware of the increasing amount of 
     scientific evidence indicating the positive health benefits 
     of fresh fruit and vegetable consumption. These benefits are 
     already enjoyed by participants in the WIC Farmer's Market 
     Nutrition program. Accordingly, the conferees encourage the 
     Secretary to consider carefully, including fresh fruits and 
     vegetables in the WIC food package.


             53. The WIC Program: Purchase of Breast Pumps

     Present Law
       State agencies may use nutrition services and 
     administration (NSA) funding to purchase breast-feeding aids, 
     including breast pumps. [Sec. 17(h) of the CNA]
     House bill
       Beginning with FY2000, allows state agencies to use funding 
     provided for food to purchase breast pumps. Includes a 
     maintenance of effort provision requiring state agencies 
     exercising the authority to purchase breast pumps with food 
     funding to continue to spend, from NSA funds, at least the 
     amount spent on breast pumps in the prior fiscal year. [Sec. 
     202(g)]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     203(i)]

[[Page H9694]]

     Conference agreement
       The Conference agreement adopts the House provision with an 
     amendment to delete the maintenance of effort provision.


               54. The WIC Program: Technical Amendments

     Present Law
       Current law includes a cross-reference to ``subparagraph 
     (I)(v),'' which no longer exists. Current law includes 
     provisions relating to payments for breast-feeding support 
     activities that were effective only for FY1995 and FY1996. 
     [Sec. 17(h)(2)(A)(iv) and Sec. 17(h)(3) of the CNA]
     House bill
       No provision.
     Senate amendment
       Deletes out-of-date references and provisions. [Sec. 203(j) 
     and Sec. 203(l)]
     Conference agreement
       The conference agreement adopts the Senate provision.


55. The WIC Program: Level of Per-participant Expenditures on Nutrition 
                      Services And Administration

     Present Law
       The Secretary may reduce a state agency's nutrition 
     services and administration (NSA) funding if its actual NSA 
     expenditures exceed its per-participant NSA grant by more 
     than 15%. [Sec. 17(h)(2)(B)(ii) of the CNA]
     House bill
       Reduces the threshold above which the Secretary may reduce 
     a state agency's NSA funding from 15% to 10% (except that the 
     Secretary may establish a higher percentage for small 
     agencies). [Sec. 202(h)(2)]
     Senate amendment
       Same as the House bill. [Sec. 203(k)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.
       Among the factors which influence small state agency levels 
     of per participant expenditures are a much smaller caseload 
     base affecting a small state's ability to absorb 
     unanticipated changes such as the impact of welfare reform 
     and other public policies, changes in infant formula rebates 
     and other cost-containment initiatives, and retail industry 
     food price wars. Staffing resources in small states are 
     limited such that small states agencies cannot 
     proportionately reduce administrative costs to the same 
     extent as larger state agencies in the event of fluctuations 
     in the participant base.
       When considering criteria for the establishment of a higher 
     percentage for small state agencies for the level of per 
     participant expenditures, the conferees direct the Secretary 
     to consider the special and unique circumstances affecting 
     the delivery of services to participants in programs 
     administered by small State WIC Agencies and Indian and 
     Native American State WIC agencies. The Secretary should work 
     closely with these agencies in establishing a percentage for 
     the level of per participant expenditures.


 56. The WIC Program: Conversion of Food Funding to Nutrition Services 
                           And Administration

     Present Law
       State agencies that achieve, through acceptable measures, 
     participation that exceeds the Secretary's estimate may 
     convert funding provided for food to use for nutrition 
     services and administration (NSA). [Sec. 17(h)(5)]
     House bill
       Allows state agencies that submit a plan to reduce average 
     food costs per recipient and increase participation above the 
     level estimated for the state agency by the Secretary to 
     convert funding provided for food to use for NSA--with the 
     Secretary's approval. This removes the requirement that the 
     state agency achieve a participation increase above the 
     estimated level in order to earn the right to convert funds. 
     [Sec 202(i)]
     Senate amendment
       Same as the House bill. [Sec. 203(m)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


            57. The WIC Program: Infant Formula Procurement

     Present law
       No provision.
     House bill
       Requires state agencies to offer infant formula rebate 
     contracts 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 formula in the state does not vary by 
     more than 5%. [Sec. 202(j)]
     Senate amendment
       Same as the House bill, except for an added provision that 
     requires the Secretary, prior to the issuance of infant 
     formula contract solicitations, to (1) review the 
     solicitation to ensure that it does not contain any anti-
     competitive provisions and (2) approve the solicitation only 
     if it contains no anti-competitive provisions. [Sec. 203(n)]
     Conference agreement
       The conference agreement adopts the House provision.
       The conferees are greatly concerned over the recent spate 
     of protests and lawsuits that have been initiated following 
     the award by the States of the competitively bid infant 
     formula contracts. These protests threaten the substantial 
     savings the WIC program has realized through infant formula 
     rebates and can impose unwarranted litigation costs on the 
     states. These added costs and increased resource burdens on 
     the States reportedly have caused a number of States to avoid 
     requesting new competitive bids for infant formula and simply 
     renew existing contracts even though substantial savings 
     could be achieved by requesting new bids. Although the Senate 
     bill language was not included in the conference report, the 
     conferees expect that the Department will continue to fully 
     utilize its existing authority to review infant formula bid 
     solicitations for the purpose of avoiding inclusion of anti-
     competitive provisions in solicitations.


  58. The WIC Program: Infra-structure And Breast-feeding Support And 
                           Promotion Funding

     Present law
       The Secretary is required to use up to $10 million a year 
     of nutrition services and administration (NSA) funding that 
     was not obligated in the prior year for special infra-
     structure and breast-feeding support and promotion projects. 
     The requirement expires after FY1998. [Sec. 17(h)(10) of the 
     CNA]
     House bill
       Extends the requirement to use up to $10 million a year in 
     unobligated NSA money for special infrastructure and breast-
     feeding support and promotion projects through FY2003. [Sec. 
     202(k)]
     Senate amendment
       Same as the House bill. [Sec. 203(o)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


           59. The WIC Program: Consideration of Price Levels

     Present law
       No provision.
     House bill
       Requires state agencies to consider, in selecting approved 
     retail stores, the prices the store charges for WIC items 
     compared to other stores' prices. Also requires state 
     agencies to establish procedures to ensure that selected 
     stores do not subsequently raise prices to levels that would 
     make them ineligible. Final regulations to carry out this new 
     requirement would be due by March 1, 1999. [Sec. 202(l)]
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts the House provision with an 
     amendment to promulgate proposed rules by March 1, 1999 and 
     final rules by March 1, 2000.


          60. The WIC Program: Management Information Systems

     Present law
       No provision.
     House bill
       Requires the Secretary to establish a long-range plan for 
     developing and implementing management information systems 
     (including electronic benefit transfer systems)--in 
     consultation with state agencies, retailers, and other 
     interested parties. A report to Congress on actions taken to 
     carry out this requirement would be due not later than 2 
     years from enactment. Prior to submission of the report to 
     Congress, the cost of systems or equipment required to test 
     systems (including electronic benefit transfer systems) could 
     not be imposed on retail food stores. [Sec. 202(m)]
     Senate amendment
       Same as the House bill. [Sec. 203(p)]
     Conference agreement
       The conference agreement adopts the Senate provision with a 
     technical amendment.
       The Conference Committee understands that many WIC 
     participants live on the border between two states and may 
     shop in both States. It is the intent of the Committee that 
     the Secretary, in consultation with other interested parties, 
     develop operating rules that permit interoperability among 
     states.


 61. The WIC Program: Use of Funds in Preceding And Subsequent Fiscal 
                                 Years

     Present law
       State agencies may retain and ``spend back'' up to 1% of a 
     given year's food grant to cover food costs incurred in the 
     preceding fiscal year.
       State agencies may retain and ``spend forward'' up to 1% of 
     a given year's total grant for costs incurred in the 
     subsequent fiscal year. In addition, States achieving cost 
     containment savings may retain and spend forward up to 5% of 
     the amount of their food grant in the year the savings were 
     achieved and 3% for the second year. [Sec. 17(i)(3) of the 
     CNA]
       The Secretary is required to use up to $10 million a year 
     of unobligated NSA funding for special infrastructure and 
     breast-feeding support and promotion projects. [Sec. 
     17(h)(10) of the CNA]
     House bill
       Increases state agencies' authority to spend back funding 
     by allowing them to spend back up to 1% of their nutrition 
     services and administration (NSA) grant to cover NSA costs 
     incurred in the preceding fiscal year.
       Replaces current spend-forward provisions. Allows state 
     agencies to retain and spend forward NSA funding (for NSA 
     costs incurred in the subsequent fiscal year) up to an 
     amount equal to 1% of their total grant. In

[[Page H9695]]

     addition, state agencies could spend forward, from NSA 
     funding, up to an amount equal to 1/2% of their total 
     grant for development of management information systems 
     (including electronic benefit transfer systems) in the 
     subsequent fiscal year.
       Allows the Secretary to use unobligated food funds to meet 
     the spending requirement for infrastructure and breast-
     feeding projects--in addition to unobligated NSA funds. [Sec. 
     202(n)]
     Senate amendment
       Same as the House bill, except that NSA money spent back 
     could be used to cover either food or NSA costs. [Sec. 
     203(q)]
     Conference agreement
       The conference agreement adopts the Senate provision.
       The Committee understands that States are anxious to begin 
     implementing these provisions and therefore, directs the 
     Secretary to issue interim rules within 120 days of the 
     enactment of this Act.


            62. The WIC Program: Disqualification of Vendors

     Present law
       No provision.
     House bill
       Requires state agencies to permanently disqualify WIC 
     vendors convicted of trafficking in food instruments or 
     selling firearms, ammunition, explosives, or controlled 
     substances for food instruments.
       The disqualification would be effective on receipt of the 
     notice of disqualification, and the vendor would not be 
     entitled to compensation lost as a result of the 
     disqualification. A state agency would be permitted to waive 
     disqualification if it determines (according to criteria set 
     by the Secretary) that disqualification would cause a 
     hardship for WIC participants. In the case of a waiver, the 
     agency would be required to assess a civil money penalty on 
     the vendor--in an amount determined according to criteria set 
     by the Secretary.
       Final regulations implementing these new requirements 
     (including hardship and money penalty criteria) would be due 
     by March 1, 1999. Sec. 202(p)]
     Senate amendment
       Same as the House bill, except: (1) state agencies could 
     waive disqualification if--the vendor had an ``effective 
     policy and program'' to prevent violations and the ownership 
     was not aware of, did not approve of, did not benefit from, 
     and was not involved in the conduct of the violation. (2) 
     civil money penalties imposed in lieu of dis-qualification 
     would be limited to $20,000 per violation ($40,000 for all 
     violations investigated as part of a single investigation). 
     The new vendor disqualification requirements would take 
     effect on the date the Secretary issues final regulations 
     that include criteria for making hardship determinations and 
     determining civil money penalties. [Sec. 203(s)]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     technical amendments and amendments to lower the per 
     violation penalty, and to require the promulgation of 
     proposed rules by March 1, 1999 and final rules by March 1, 
     2000.
       Regarding the exception in lieu of disqualification of a 
     WIC vendor, the Committee wishes to stress that it is not the 
     intent of this provision to permit a vendor who has had 
     repeated convictions for WIC offenses to receive a waiver 
     simply because the ownership of the vendor was not aware of, 
     did not approve of, or was not involved in the offenses. The 
     Committee expects the State agency to take the strongest 
     possible action against each vendor who has been repeatedly 
     convicted of trafficking or illegal sales of WIC food 
     instruments.


  63. The WIC Program: Use of Recoveries From Vendors And Participants

     Present law
       State agencies may use funds, for program purposes, 
     recovered as the result of violations in the food delivery 
     system of the program in the year in which the funds are 
     collected. [Sec. 17(f)(21) of the CNA]
     House bill
       Adds a provision allowing state agencies to use amounts 
     collected from vendors and recipients relating to fraud and 
     abuse violations of the program to be used for program 
     purposes during the 1 year period beginning on the date the 
     amount is received. [Sec. 202(s)]
     Senate amendment
       Replaces the current-law provision with a provision 
     allowing state agencies to use funds recovered from vendors 
     and participants as the result of a claim arising under the 
     program during: the fiscal year in which the claim arises, 
     the fiscal year in which funds are collected, or the fiscal 
     year following the fiscal year the funds were collected. 
     [Sec. 203(e)]
     Conference agreement
       The conference agreement adopts the Senate provision with a 
     technical amendment.


                64. The WIC Program: Criminal Forfeiture

     Present law
       No provision.
     House bill
       Requires a court to order a person convicted of an offense 
     in violation of any provision of WIC law or regulations to 
     forfeit to the United States all real and personal property 
     used in the transaction. No interest in property would be 
     forfeited where the owner establishes lack of knowledge or 
     consent. Proceeds from any sale of forfeited property and any 
     money forfeited would be used to first reimburse the Justice 
     Department for costs incurred, second reimburse the 
     Agriculture Department's Office of Inspector General for 
     costs incurred, third reimburse any federal or state law 
     enforcement agency for costs incurred, and fourth by the 
     state agency to carry out approval, reauthorization, and 
     compliance investigations of vendors. [Sec. 202(t)]
     Senate amendment
       Same as the House bill, except: (1) allows a court to order 
     forfeiture, (2) describes in more detail the scope of 
     violations that could bring on a forfeiture order, and (3) 
     adds the Treasury Department and Postal Service to the first 
     category of agencies to which proceeds would be distributed. 
     [Sec. 203(t)]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     technical amendments.


        65. The WIC Program: Study of Cost Containment Practices

     Present law
       No provision.
     House bill
       Requires the Secretary, acting through the Economic 
     Research Service, to conduct a study of the effect of states' 
     cost containment practices in selecting vendors and approved 
     food items on: (1) program participation, (2) access to and 
     availability of prescribed foods, (3) voucher redemption 
     rates and food selections by participants, (4) participants 
     with special diets or specific food allergies, (5) 
     participant use of and satisfaction with prescribed foods, 
     (6) achievement of positive health outcomes, and (7) program 
     costs. A report to Congress would be due not later than 3 
     years after enactment. [Sec. 202(q)]
     Senate amendment
       Same as the House bill, except for technical differences 
     and: (1) requires the GAO to conduct the study, and (2) a 
     report to Congress would be due no later than 2 years after 
     enactment. [Sec. 203(u)]
     Conference agreement
       The conference agreement adopts the House provision with an 
     amendment deleting the requirement that the Economic Research 
     Service conduct the study and to require an interim report.


       66. The WIC Program: Study of Cost And Quality of Services

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Requires the GAO to conduct a study that assesses: (1) the 
     cost of delivering WIC services (including the cost of cost 
     containment efforts), (2) the fixed and variable costs 
     incurred by state and local government for delivering WIC 
     services, (3) the quality of WIC services delivered, and (4) 
     costs incurred for personnel, automation, central support, 
     and other activities to deliver services, and whether the 
     costs meet federal audit standards for allowable costs. A 
     report to Congress would be due no later than 3 years after 
     enactment. [Sec. 203(v)]
     Conference agreement
       The conference agreement adopts the Senate provision with a 
     technical amendment.


      67. Nutrition Education And Training Program: Authorization

     Present law
       Appropriations for the Nutrition Education and Training 
     (NET) program are authorized at $10 million a year through 
     FY2002. [Sec. 19(i) of the CNA]
     House bill
       Authorizes appropriations at such sums as are necessary 
     through FY2003. [Sec. 203]
     Senate amendment
       Same as the House bill, with technical differences. [Sec. 
     204]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.


                           68. Effective Date

     House bill
       Provisions to take effect on October 1, 1998 or the date of 
     enactment, whichever is later. [Sec. 2]
     Senate amendment
       Provisions to take effect on October 1, 1998. [Sec. 401]
     Conference agreement
       The conference agreement adopts the Senate provision.


      69. Farmer's Market Nutrition Program: Matching Requirement

     Present law
       Requires that states receiving grants provide state, local, 
     or private funds for the program in an amount that is equal 
     to at least 30% of the total cost of the program. States may 
     count funds they use for other similar programs toward the 
     matching requirement. [Section 17(m)(3) CNA]
     House bill
       Revises existing law to require that the matching fund 
     requirement apply only to the administrative cost of the 
     program instead of the entire costs [Sec.202(n)(1)]

[[Page H9696]]

     Senate amendment
       Permits states to use ``program income'' to meet the 30% 
     matching requirement. This change uses the term ``program 
     income'' as defined in the Uniform Federal Assistance 
     Regulations (Sec.3016.25) to permit donations by companies 
     and vendor fines for violations to be used toward the 
     matching requirement. [Sec.203(r)(1)]
     Conference agreement
       The conference agreement adopts the Senate provision


  70. Farmer's Market Nutrition Program: Criteria for Additional Funds

     Present law
       Establishes criteria for the Secretary to use when 
     allocating funds to serve additional recipients in a state 
     that received assistance in the previous fiscal year. Among 
     the criteria to be considered is documentation that justifies 
     the need for a participation increase. [Sec.17(m)(6)(C) of 
     the CNA]
     House bill
       Maintains current law.
     Senate amendment
       Eliminates service to additional recipients from the 
     criteria for providing funds to states. Also replaces 
     requirement for documentation to justify the need for an 
     increase in participation with language requiring the 
     Secretary to consider the state's need for an increase, use 
     of increased funding consistent with serving nutritionally 
     at-risk persons, and expanding program awareness. Also, adds 
     a requirement that the Secretary consider whether a state 
     that has been operating a program and wants to increase the 
     value of benefits to individual recipients will increase the 
     rate of coupon redemption. [Section 203 (r)(2)(A)]
     Conference agreement
       The conference agreement adopts the Senate provision.


  71. Farmer's Market Nutrition Program: Approving and Ranking State 
                                 Plans

     Present law
       Establishes a ranking for the Secretary to use in approving 
     state plans for operation of a program to include: favorable 
     consideration of a state's prior experience, use of state or 
     local funds for similar programs, and maintenance of effort 
     by states or localities previously operating programs. 
     Preference is to be given to plans that have the highest 
     concentration of eligible persons, greatest access to 
     farmers' markets, broad geographical areas, and other 
     characteristics the Secretary determines will maximize the 
     availability of benefits to eligible persons. [Section 
     17(m)(6)(F)]
     House bill
       Eliminates the ranking criteria and preferences for 
     consideration that the Secretary must use, and makes 
     conforming changes in paragraph designation. [Section 
     202(n)(2)]
     Senate amendment
       Same as the House bill. [Section 203(r)(2)(B)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment with technical differences.


  72. Farmer's Market Nutrition Program: Funding for Current and New 
                                 States

     Present law
       Requires that 75% of the funds appropriated for the program 
     be made available to states participating in the program that 
     wish to serve additional participants. Requires the Secretary 
     to reallocate to states that have never participated in the 
     program but have approved state plans any funds not needed to 
     serve additional participants in states that have been 
     operating programs. Requires 25% of funds to be allocated to 
     states with approved plans that have never participated in 
     the program. Requires the Secretary to reallocate funds not 
     needed for these states to states already operating programs 
     that want to serve additional recipients.[Section 
     17(m)(6)(g)]
     House bill
       Maintains current law.
     Senate amendment
       Maintains current law 75-25% split between states operating 
     programs in a previous year and states operating new 
     programs, but eliminates references to serving additional 
     recipients. [Section 203(r)(2)(C)]
     Conference agreement
       The conference agreement adopts the Senate provision.


                           73. Authorization

     Present law
       Authorizes such sums as may be necessary for each of fiscal 
     years 1996 through 1998. (Section 17(m)(9)]
     House bill
       Authorizes such sums as may be necessary for each of fiscal 
     years 1999 through 2003. [Section 202(n)(3)]
     Senate amendment
       Authorizes such sums as may be necessary for each of fiscal 
     years 1996 through 2003. [Section 203(r)(3)]
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment with technical differences.


                      74. Commodity Specifications

     Present law
       Requires the Secretary to apply the requirements for 
     developing specifications for commodity acquisitions and 
     donations to: the commodity supplemental food (CSFP), the 
     food distribution program on Indian Reservations, the school 
     lunch, commodity distribution, child care and adult care 
     food, and school breakfast programs, the elderly commodity 
     program, and the emergency food assistance 
     program.[Sec.3(a)(2)]
     House bill
       No provision.
     Senate amendment
       Removes requirement that the Secretary apply requirements 
     for the development of commodity specifications to the child 
     and adult care food program, school breakfast program, 
     elderly commodity program, and emergency food assistance 
     program. [Sec.301(a)]
     Conference agreement
       The Conference agreement adopts the House position.


                75. Information from Recipient Agencies

     Present law
       Requires the Secretary to establish procedures for ensuring 
     that information is received from recipient agencies at least 
     annually regarding the types and forms of commodities that 
     are most useful to them and their participants. [Sec.3(f)(2)]
     House bill
       No provision.
     Senate amendment
       Replaces current law annual requirement with a requirement 
     that the Secretary collect such information from these 
     recipient agencies at least once every two years. Also adds a 
     provision permitting the Secretary to require this type of 
     information from recipient agencies participating in other 
     domestic food assistance programs, and to provide these 
     agencies with a means for voluntarily submitting customer 
     acceptability information. [Sec. 301(b)]
     Conference agreement
       The Conference agreement adopts the Senate provision with 
     technical changes.


                 76. authority to transfer commodities

     Present law
       No current provision.
     House bill
       No provision.
     Senate amendment
       Permits the Secretary of Agriculture to transfer 
     commodities purchased for one domestic food program to 
     another if necessary to ensure suitable use for human 
     consumption; permits the Secretary to provide reimbursement 
     from the account of the receiving program to the donating 
     program for the value of commodities transferred; and 
     requires that any reimbursement be credited to the accounts 
     that incurred the costs when the transferred commodities were 
     originally purchased, and be available for the purchase of 
     replacement commodities. [Sec.302(a)]
     Conference agreement
       The conference agreement adopts the Senate provision.


                    77. authority to resolve claims

     Present law
       No current provisions.
     House bill
       No provision.
     Senate amendment
       Gives the Secretary authority to waive or determine the 
     amount of, and settle or adjust all or parts of claims 
     arising under domestic food assistance programs. [Sec. 
     302(a)]
     Conference agreement
       The conference agreement adopts the Senate provision.


       78. removal of commodities posing a health or safety risk

     Present law
       No current provision.
     House bill
       No provision.
     Senate amendment
       Permits the Secretary to use uncommitted Section 32 funds 
     to reimburse states for state and local costs of removing 
     commodities distributed to domestic food programs that are 
     determined to pose a health or safety hazard. Allows such 
     funds to be used to cover the costs of storage, transport, 
     processing and destroying hazardous commodities, subject to 
     Secretarial approval. Does not permit the use of section 32 
     funds for this purpose to restrict the Secretary from 
     recovering funds or services from a supplier or other entity 
     regarding the hazardous commodities, and requires that funds 
     so recovered be credited to the section 32 account and remain 
     available until expended. [Section 302 (a)]
     Conference agreement
       The conference agreement adopts the Senate provision with a 
     clarifying amendment, and an amendment limiting the authority 
     to two years.


              79. authority to accept donated commodities

     Present law
       No current provision.
     House bill
       No provision.
     Senate amendment
       Permits the Secretary to accept commodities donated by 
     other Federal agencies and

[[Page H9697]]

     to donate such commodities to states for distribution through 
     any domestic food administration program administered by the 
     Secretary. [Section 302 (a)]
     Conference agreement
       The conference agreement adopts the Senate provision.


                     80. effect of prior amendments

     Present law
       Refers to the amendments made by the Commodity Distribution 
     Reform and WIC Amendments of 1987 to the Child Nutrition Act 
     of 1966.
     House bill
       No provision.
     Senate amendment
       Makes clear that striking the amendments made by the 
     Commodity Distribution Reform and WIC Amendments Act of 1987 
     to the Child Nutrition Act (see above) do not affect the 
     amendments as in effect on September 30, 1998. [Sec.302(b)]
     Conference agreement
       The conference agreement adopts the Senate provision with 
     technical differences.
     From the Committee on Education and the Workforce, for 
     consideration of the House bill, and the Senate amendment, 
     and modifications committed to conference:
     Bill Goodling,
     Frank Riggs,
     Mike Castle,
     W.L. Clay,
     M.G. Martinez,
     From the Committee on Agriculture, for consideration of secs. 
     2, 101, 104(b), 106, 202(c) and 202(o) of the House bill, and 
     secs. 101, 111, 114, 203(c), 203(r), and titles III and IV of 
     the Senate amendment, and modifications committed to 
     conference:
     Bob Smith,
     Bob Goodlatte,
     Charlie Stenholm,
                                Managers on the Part of the House.

     Richard G. Lugar,
     Thad Cochran,
     Mitch McConnell,
     Tom Harkin,
     Patrick J. Leahy,
     Managers on the Part of the Senate.

                          ____________________