[Congressional Record Volume 150, Number 88 (Wednesday, June 23, 2004)]
[Senate]
[Pages S7244-S7265]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CHILD NUTRITION AND WIC REAUTHORIZATION ACT OF 2004

  Mr. CRAPO. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 580, S. 2507.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 2507) to amend the Richard B. Russell 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 reauthorize child nutrition programs, 
     and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. COCHRAN. Mr. President, I am pleased to present to the Senate S. 
2507, legislation to reauthorize the child nutrition programs 
administered by the U.S. Department of Agriculture for the next 5 
years. Over the past year and a half, the Committee on Agriculture, 
Nutrition, and Forestry has held hearings and received suggestions from 
a wide range of interests for improvements in the programs that are 
authorized in this bill. The committee worked diligently to draft a 
consensus bill that will ensure the continuation of proven Federal 
Government support for meeting the nutritional needs of school children 
and others who will benefit from these programs. I would like to thank 
especially the distinguished ranking member of the committee, the 
Senator from Iowa, Mr. Harkin, for his assistance and for continuing 
the longstanding tradition of a bipartisan approach to the development 
of child nutrition bills in our committee.
  The committee met on May 19, 2004, and reported the bill unanimously. 
This bill reflects the commitment of the committee to ensure that our 
Nation's children have access to the nutrition they need to lead a 
healthy life. All of the worthwhile and important initiatives contained 
in this bill will play a significant part in ensuring that our children 
have access to good nutrition.
  The programs authorized in this bill touch the lives of one out of 
every five people in this country, including over 37 million children 
and nearly 2 million lower income pregnant and postpartum women. 
According to the Congressional Research Service, total fiscal year 2004 
spending for these programs will be an estimated $16.4 billion, and the 
administration's fiscal year 2005 budget anticipates spending $16.85 
billion. The Budget Committees of both the Senate and House have seen 
fit to include new mandatory money that will enable us to continue 
otherwise expiring provisions contained in current law. Even though we 
had no money for new initiatives, we believe the committee has put 
together an overall package that improves these programs while 
protecting the interests of the participants.
  Important components of the bill are: Protection of the integrity of 
school meal program benefits, participation of for-profit child care 
centers in the Child and Adult Care Food Program,

[[Page S7245]]

protection of school meal benefits for military families, expansion of 
the Summer Food Service Program Lugar Pilots, expansion of the Fruit 
and Vegetable Pilot Program, and improvements to the WIC Program.
  I would also like to clarify section 203(e)(10) of the bill, which is 
designed to contain costs in the WIC program in order to ensure that 
all eligible participants can receive benefits through the program. 
Given the new provisions in the law, it is important that States 
publish their allowable reimbursement levels for WIC program vouchers. 
Also, because of changes contained in the bill, it would be important 
for USDA to review and modify risk profiles used when examining retail 
food stores for compliance with program rules. There is a related 
provision in our bill that prohibits certain vendors from providing 
incentive items to entice program participants to come to their stores 
unless the free merchandise is food or of nominal value. The Secretary 
is given the authority to define merchandise of nominal value. A 
reasonable interpretation of this provision would permit the Secretary 
to prohibit stores from giving away lottery tickets. Given the 
extremely small chance of winning a large amount of money as advertised 
by the lottery, the actual ticket is probably of very little value. 
However, some observers' perceived value of a ticket is greater than 
the actual value. A reasonable interpretation of this provision would 
give the Secretary the authority to prohibit lottery tickets under this 
provision.
  We have worked hard to craft a bipartisan, consensus-based bill, as 
evidenced by the letters of support we have received from organizations 
including the American Dietetic Association, the American School Food 
Service Association, America's Second Harvest, the Food Research and 
Action Center, National Council of La Raza, Bread for the World, the 
National Milk Producers Federation, the International Dairy Foods 
Association, and the National Food Processors Association. I urge my 
colleagues to support the bill.


       Addition of New States to the Fruit and Vegetable Program

  Mr. HARKIN. Mr. President, I hope to clarify our intent on one 
provision of the Child Nutrition and WIC Reauthorization Act of 2004--
the provision pertaining to the Fruit and Vegetable Program.
  When the Fruit and Vegetable Program was first enacted as part of the 
2002 farm bill, the legislative language did not specify which States 
were to be participants in the program, but the States were specified 
in the conference report. The Department of Agriculture followed the 
conference recommendations.
  Because we are passing this bill with a somewhat unusual process that 
will not involve a conference report, I would like to clarify which 
States are intended to be added to the program. Committee staff 
discussions have intended that the additional States to participate in 
the Fruit and Vegetable Program are Mississippi, North Dakota, and 
South Dakota, and this was our understanding as we finalized this bill. 
I am in agreement with these discussions, and it is on this basis that 
we are completing this bill.
  Mr. COCHRAN. I do not disagree with the Senator from Iowa.


 Incentive Criteria for Reduction of Nonresponse Rates and Substitution

  Mr. HARKIN, Mr. President, I hope to clarify the operation of certain 
provisions in the bill. As the chairman knows, the section of the bill 
titled, ``Household Applications,'' provides school districts with an 
incentive to reduce the nonresponse rate during the income verification 
process. I would like to offer an example of the operation of 10-
percent improvement criteria in nonresponse rates, so that the 
committee's intent is not misinterpreted. A district with a non-
response rate of 40 percent, for example, would have to reduce its 
nonresponse rate to 36 percent, in order to meet the 10-percent 
improvement criteria and be entitled to maintain existing verification 
procedures under current law.
  Mr. COCHRAN. The Senator is, indeed, correct in his calculations. The 
provision calling for a 10-percent improvement in S. 2507 would operate 
in precisely the manner that the Senator from Iowa described.
  Mr. HARKIN. I thank the chairman. I would also like to discuss the 
new substitution provision in the bill. In some school districts in my 
State and across the country, there are children whose household income 
is extremely difficult to verify, no matter how vigorous the effort put 
forth by school officials. The applications I am referring to are for 
children whose parents regularly do not respond to other school 
communications or are from a community that is suspicious of questions 
from governmental entities, including school districts. The families of 
these children may no longer be residing at the address of record, are 
not reachable by phone, or may exhibit other such barriers to 
verification. Am I correct that these are the type of applications 
envisioned in the bill's subparagraph titled ``Individual Review''?
  Mr. COCHRAN. The Senator is once again correct. This bill recognizes 
that there are certain situations when it may be nearly impossible for 
a school district to get in touch with the families of children who are 
eligible for this program. In situations such as those the Senator 
described, and other similar ones, the school district may decline to 
verify up to 5 percent of the approved applications selected for 
verification and replace those applications with other approved 
applications.
  Mr. HARKIN. I thank the chairman.


                        importance of breakfast

  Mr. CHAMBLISS. Mr. President, I appreciate the chairman giving me 
this opportunity to emphasize the importance of breakfast and the 
positive effects breakfast has on student performance and behavior. 
Research shows that children who eat breakfast perform better on 
standardized achievement tests and have fewer behavior problems in 
school. Breakfast improves a child's physical endurance and motor 
performance. It has been found that children have more energy to get 
through the school day.
  The Department of Agriculture's Center for Nutrition Policy and 
Promotion has shown that children who eat breakfast have more healthy 
overall diets. Given the Nation's attention to childhood obesity, 
breakfast can also play a positive role in ensuring that our children 
are healthy. Not only is eating breakfast important for student 
performance, breakfast is also an effective tool to manage and control 
weight. Breakfast consumption can play a key role in maintaining 
healthy eating habits and weight loss while Congress looks at ways to 
combat childhood obesity.
  In a major study, regular breakfast consumption was associated with 
the ability to maintain a significant weight loss. One study showed 
that out of 2,900 individuals that had maintained a 30-percent weight 
loss for at least a year, 78 percent reported eating breakfast 
everyday. Breakfast skipping has been reported to be more prevalent in 
obese children and is particularly high in obese girls. More than a 
dozen studies from around the world have reported that eating a ready-
to-eat, RTE, breakfast cereal provides many nutritional benefits, 
including consumption of less total fat, less saturated fat, less 
cholesterol, more dietary fiber, and more vitamins and minerals. This 
result is independent of age and geography as studies have been 
conducted in children, adults and the elderly in over six different 
countries.
  This compromise bill contains provisions which will, hopefully, 
result in more children eating more breakfast. The Child Nutrition and 
WIC Reauthorization Act of 2004 includes three provisions that the 
committee hopes will result in more children eating breakfast. First, 
it provides increased assistance to schools with a high proportion of 
poor children. Second, it expands the eligibility for schools that need 
additional assistance--severe need assistance--for breakfast programs. 
In relation to these provisions a Review of Best Practices in the 
Breakfast Program, also contained in this bill, will allow for a study 
of State and local barriers that keep more schools from offering 
breakfast. The Secretary will make recommendations and describe model 
breakfast programs that will help schools to overcome these obstacles 
and disseminate the results of this study to school districts, to the 
Senate Committee on Agriculture, and to the House Committee on 
Education and the Workforce. As a result, schools will be encouraged to 
develop innovative strategies to make time for student

[[Page S7246]]

breakfasts, such as breakfast on the bus or breakfast in the classroom, 
a practice that has been shown to be very effective in schools across 
the country. Breakfast on the bus or in the classroom does not require 
the use of a cafeteria or additional time in the school day and are 
easy and efficient ways to provide a nutritious meal to children.
  Mr. President, I ask the chairman if he agrees with my statements?
  Mr. COCHRAN. Mr. President, I agree with the distinguished Senator 
from Georgia on the importance of breakfast to our children's 
education.
  Mr. CHAMBLISS. Mr. President, I thank the chairman for his comments.


                  women, infants, and children program

  Ms. MURKOWSKI. Mr. President, I wish to address a provision that 
Senator Cochran has added to the Child Nutrition and WIC 
reauthorization bill on my behalf.
  Mr. COCHRAN. Mr. President, this provision is being added as a part 
of the floor consideration of this legislation. Therefore, there is no 
accompanying report language which explains its effect. We appreciate 
the contribution the Senator from Alaska has made to the Senate's 
consideration of this legislation. Will the Senator please share her 
views on this provision?
  Ms. MURKOWSKI. Mr. President, the provision in question requires the 
Secretary of Agriculture to conduct a periodic scientific review of the 
supplemental foods available in the Women, Infants, and Children 
Program, which is also known as the WIC Program. The Secretary shall 
undertake such a review as frequently as necessary to reflect the most 
recent scientific knowledge. Following such a review, the Secretary 
shall amend the list of supplemental foods in order to reflect 
nutrition, science, public health concerns, and cultural eating 
patterns.
  Mr. COCHRAN. Mr. President, I would like Senator Murkowski to explain 
her rationale for offering this provision.
  Ms. MURKOWSKI. In October 2000, the American Heart Association, AHA, 
published updated guidelines for reducing the risk of heart disease. 
These guidelines noted that fatty fish, such as salmon, are high in 
omega-3 fatty acids. Such acids help in the prevention of heart disease 
in a variety of ways. The acids diminish the likelihood of sudden 
death, as well as abnormal heart rhythms that play a role in sudden 
death. The oils of fatty fish also decrease blood triglycerides, as 
well as blood clotting.
  The Food and Drug Administration has also previously suggested that 
there are health benefits to regularly consuming up to 3 grams of 
omega-3 fatty acids per day. To illustrate a practical example, a piece 
of salmon that is a little over 3 ounces in weight includes about 1 
gram of such fatty acids. Therefore, it would be very easy to comply 
with this suggestion. I understand that later this year, the Food and 
Drug Administration is likely to make an official determination that 
the consumption of omega-3 fatty acids will reduce the risk of coronary 
heart disease. The provision in the WIC reauthorization bill will 
require the Secretary to conduct a periodic review of the list of 
supplemental foods and take into account the most recent scientific 
knowledge, such as the expected FDA determination regarding omega-3 
fatty acids, when recommending any additions to the list of 
supplemental foods. Should salmon be included in the list of 
supplemental foods, it would then allow all States to include salmon as 
an acceptable food for their respective WIC recipients.
  Mr. COCHRAN. Mr. President, I appreciate the Senator's explanation.
  Ms. MURKOWSKI. Mr. President, I thank Senator Cochran for including 
this provision in this important bill.


                Medicaid Direct Verification Authorities

  Mr. HARKIN. Mr. President, The Child Nutrition and WIC 
Reauthorization Act of 2004 includes several provisions intended to 
improve program integrity and to provide local educational agencies 
with new tools with which to improve the administration of the school 
lunch and school breakfast programs. One of the steps that we have 
taken in this bill is to allow various Federal programs to share 
information that they may have about a child's income or participation 
status with local educational agencies so as to enable the local 
educational agency, using that information, to verify a child's 
eligibility status for free or reduced-price school lunches or school 
breakfasts.
  In most cases, this bill has not amended any laws outside of the 
jurisdiction of the Senate Committee on Agriculture, Nutrition, and 
Forestry in order to accomplish this goal--with one exception. The bill 
does amend section 1902(a)(7) of the Social Security Act, a section 
pertaining to the Medicaid program. This change to Medicaid law allows, 
at the option of a State, the sharing of Medicaid information with 
local educational agencies for the purpose of verifying the 
certification of children for free or reduced price lunches or 
breakfasts under Federal child nutrition programs.
  The Senate Finance Committee, which has jurisdiction over the Social 
Security Act and Medicaid law, has very graciously allowed us to make 
this change for the purposes of this bill. I thank the Finance 
Committee for working with our committee to strengthen Federal child 
nutrition programs.
  It is my understanding that Medicaid eligibility can be based on a 
number of factors, some of which may be related to disability or other 
matters that have nothing to do with verifying income in the School 
Lunch Program. I want to clarify that the intent of the amendment to 
Medicaid law contained within the Child Nutrition and WIC 
Reauthorization Act of 2004 is solely for the purpose of verifying 
income and participation information for School Lunch and Breakfast 
Programs. It is not the intent of this legislation to allow any other 
information to be shared.
  I do not believe that the amendment can be interpreted to allow the 
sharing of Medicaid information that goes beyond the scope of verifying 
eligibility for school lunch or school breakfast benefits, but in the 
interest of being completely crystal clear, I would like to state that, 
under the amendment to section 1902(a)(7) of the Social Security Act 
contained in the Child Nutrition and WIC Reauthorization Act of 2004, 
no Medicaid information, except that which is necessary to verify 
income and eligibility for school lunch or school breakfast 
participation, may be shared by a State with a local educational 
agency.
  Mr. COCHRAN. The explanation that Senator Harkin has offered with 
regard to this provision of the Child Nutrition and WIC Reauthorization 
Act of 2004 is absolutely correct and is consistent with the 
committee's intent. In including the amendment to Medicaid law, it was 
certainly not our goal or intent to allow all Medicaid information to 
be shared with local educational agencies. We intended to allow States 
to share only such limited Medicaid information that was necessary to 
verify eligibility in the School Lunch or School Breakfast Programs. 
Any interpretation to the contrary is inconsistent with the intent of 
the Senate Committee on Agriculture, Nutrition, and Forestry.
  Mr. BAUCUS. As a member of the Senate Committee on Agriculture, 
Nutrition, and Forestry, but also as the ranking Democrat on the Senate 
Finance Committee, I would like to thank Agriculture Committee Chairman 
Cochran and Ranking Member Harkin for their clarification on this 
point.
  The Senate Finance Committee has long grappled with the challenges of 
allowing sensitive program information to be shared. While there are 
many cases where it is in the public good to share limited amounts of 
information, such as in this case, it is important that we take such 
steps carefully and that we not inadvertently or unintentionally allow 
more information to be shared than is absolutely necessary to 
accomplish our goals.
  The amendment to the Social Security Act that is under consideration 
ensures that only certain Medicaid information can be shared with local 
educational authorities for the purpose of verifying eligibility and 
income with respect to the School Lunch and School Breakfast Programs. 
Information about a child's health or disability status or medical 
expenses would not be relevant to verifying eligibility for school 
breakfast and lunch programs, which is based only on the child's family 
income. Accordingly, information

[[Page S7247]]

about a child's health or disability status or medical expenses could 
not be shared with local educational agencies under the authority of 
this Medicaid amendment. I thank the chairman and the ranking member 
for clarifying the narrow goals of the amendment and look forward to 
its implementation in a manner that is consistent with the committee 
intent.
  Mr. GRASSLEY. I appreciate that my colleagues on the Senate 
Agriculture Committee have worked collaboratively on the Medicaid 
provision, which is under the jurisdiction of the Senate Finance 
Committee. I am pleased that we were able to work out a provision which 
may help more children who are eligible receive free or reduced price 
breakfasts and lunches. I commend my colleagues for their good work on 
this important legislation.
  I agree with my colleagues, Senators Cochran, Harkin, and Baucus, 
that this Medicaid amendment will not authorize States to share 
Medicaid information other than that which is necessary to verify a 
child's participation in Medicaid or his or her family income.


    USDA Interpretation of Section 32 Funding in the 2002 Farm Bill

  Ms. STABENOW. Mr. President I rise to clarify an important issue with 
the distinguished chairman of the Agriculture Committee.
  First, I thank the chairman for his leadership in getting this child 
nutrition bill to the floor. He has worked hard and has produced a 
good, bipartisan bill which I supported in the Committee.
  For over 2 years, a bipartisan group of Senators and I have been 
concerned about USDA disregarding language included in the 2002 farm 
bill. The 2002 farm bill, section 10603, states that at least $200 
million must be spent annually on the purchase of specialty crops. 
However additional language included in the 2002 farm bill conference 
report states:

       [t]he Managers intend that the funds made available under 
     this section are to be used for additional purchases of 
     fruits and vegetables, over and above the purchases made 
     under current law or that might otherwise be made without 
     this authority. The Managers expect the $200 million to be a 
     minimum amount for fruit and vegetable purchases under 
     section 32 funds; it is not intended to interfere with or 
     decrease from Agricultural Marketing Service's historical 
     purchases of fruit and vegetables [e.g. $243 million in 2001; 
     $232 million in 2000] or to decrease or displace other 
     commodity purchases.

  Does the chairman agree that this language is clear and that the 
intent of Congress is $200 million in new purchases on top of existing 
commodity purchases?
  Mr. COCHRAN. I agree that the Senator from Michigan has correctly 
cited the conference report of the 2002 farm bill, and I appreciate all 
of her hard work on this issue.
  Ms. STABENOW. This was a great victory for our children because they 
need more and more fruits and vegetables in their school lunches. We 
all know about the problem we have with kids eating too much junk food 
for lunch and this program would have put more nutritious foods on our 
children's lunch trays. Instead of eating candy, they could be eating 
nutritious foods like apples, pears and carrots.
  Unfortunately, the USDA is not complying with this provision. Instead 
of adding the $200 million on top of baseline spending, USDA has 
eliminated the baseline spending, so there is no guarantee that there 
will be any new spending on fruits and vegetables for our children. In 
fact in 2002, USDA did not even meet the minimum purchase requirement. 
In 2002, only $181 million in fresh fruits and vegetables were 
purchased under section 32.
  Does the chairman agree that the USDA is misinterpreting the farm 
bill with regards to section 32, fresh fruit and vegetable purchases?
  Mr. COCHRAN. I agree that the USDA has not followed the language from 
the 2002 farm bill conference report. I suggest that the Senator from 
Michigan and I work with USDA to try to facilitate greater purchases of 
fruits and vegetables in the nutrition programs.
  Mr. HARKIN. I am proud of our bipartisan work on the Child Nutrition 
and WIC Reauthorization Act of 2004 and want to thank the chairman for 
his efforts and leadership. This is a bill that deserves to pass 
overwhelmingly with tremendous bipartisan support, as it did in the 
Senate Committee on Agriculture, Nutrition, and Forestry. That it can 
gain the unanimous support of the entire Senate, as I believe that it 
will, is to me, a hopeful sign of broad support for initiatives in the 
interest of our Nation's children.
  In addition to Chairman Cochran, I thank the staff who have worked on 
this bill. They may never receive the full credit that they truly 
deserve, but without them this bill would not have come to fruition. On 
Senator Cochran's staff, I would like to thank Hunt Shipman, Eric 
Steiner, Graham Harper, and especially Dave Johnson, who has been with 
the Senate Committee on Agriculture, Nutrition, and Forestry for 
fifteen years. During that time, he has played a key role in 
strengthening our country's child nutrition and food assistance 
programs. On my own staff, I would like to single out for thanks the 
great work of Derek Miller and Susan Keith as well as the Democratic 
Staff Director, Mark Halverson, who has served me ably for many years.
  Given the budget constraints that our committee faced in crafting the 
legislation, I believe that this bill is a very positive step forward 
in allocating resources wisely.
  In the United States, we face an unfortunate paradox. On the one 
hand, the specter of malnutrition and hunger continues to haunt 
millions of Americans, especially children. At the same time, we are 
confronted with a grave public health threat in the form of obesity and 
overweight which are quickly becoming a major threat not just to 
individuals but to our Nation as a whole. The reauthorization of child 
nutrition programs affords us an opportunity to tackle both of these 
issues. This bill does so, although not always to the full extent that 
I would have preferred.
  This bill makes many positive changes to fight childhood hunger and 
deliver federal child nutrition benefits to more children.
  First, this bill ensures that children who are receiving food stamps 
will automatically receive school lunches and breakfasts as well. 
Though States and schools already have the authority and discretion to 
do this now, not all of them take advantage of this option. The bill 
before us today clearly makes those children eligible for free school 
meals--a step that, according to USDA, will help 200,000 additional 
children have healthy school meals by 2009 and which will also reduce 
paperwork in local schools and improve program integrity.
  Parents of preschool-age children face a big challenge of finding 
safe, affordable day care. This is especially so for low-income 
families. This bill extends and makes permanent meal assistance to day 
care centers in which at least 25 percent of enrolled children are low-
income. USDA estimates that on an average day approximately 90,000 
children will benefit from this meal assistance.
  The bill also includes a number of important changes in the process 
to certify students as eligible for free or reduced-price school meals 
and to verify the accuracy of a small percentage of the applications 
for free and reduced-price school meals. These changes are designed to 
make sure that more certifications are completed correctly at the start 
of the school year. Improving program integrity has always been a duty 
that this committee has carried out on a bipartisan basis. Maintaining 
and improving program integrity is critical both to ensuring sound 
stewardship of taxpayer dollars and to guaranteeing that children who 
most need child nutrition benefits actually receive them.
  One of the bill's program integrity measures allows schools to 
strengthen and simplify the verification process under which the income 
level of a sample of households must be documented. For example, for 
the first time, school districts will be able to use Medicaid data to 
verify household income so school districts won't have to duplicate 
verification efforts already undertaken in the Medicaid program, and 
families won't have to document income multiple times. I urge the 
Secretary, State agencies, and local educational agencies to take full 
advantage of this new option.
  In addition, once a student is certified for free or reduced-price 
meals, that certification will be effective for a

[[Page S7248]]

full year. Those families that are selected for verification will be 
able to provide documentation for any point in time between the month 
prior to application and the time the income documentation is provided. 
Though the bill itself does not specify an exact time, the Secretary 
should not narrow the period and should issue guidance instructing 
local educational authorities to accept as income verification 
documentation any information pertaining to any point in time within 
the interval between the month prior to when the school meals 
application was completed and when the income documentation is 
provided.
  The supplemental nutrition program for Women, Infants and Children, 
WIC, provides vouchers to eligible low-income families for specified 
food items. Recipients redeem these vouchers at local vendors. In 
recent years, a specialized type of vendor, known as WIC-only stores or 
supplemental foods vendors, has developed that accepts only WIC 
vouchers. These vendors do not compete for business on the basis of 
price, but rather on the service they provide their WIC clientele. This 
bill includes several important measures designed to contain WIC food 
costs. The committee report on this bill contains a good deal of 
information on WIC-only stores and on the provisions intended to 
address them. However, the bill language on WIC-only cost containment 
has changed somewhat, and additional clarification may be helpful here.

  Although the legislative language offers States latitude to design 
vendor peer groups, competitive price criteria, and maximum 
reimbursement levels, each State must meet two important cost-
containment goals unless exempted by the Secretary. First, each State 
must ensure that its aggregate WIC food costs are no higher if WIC 
participants choose to shop at WIC-only stores than if they shop at 
regular competitive stores. Second, each State must ensure that average 
prices, referred to as ``average payments per voucher'', in WIC-only 
stores are no higher than average prices in comparable competitive 
stores.
  The bill allows the Secretary to exempt a State from carrying out 
requirements regarding the peer groups, competitive price criteria, and 
maximum reimbursement levels if the State does not authorize WIC-only 
stores or if the WIC-only stores in the State account for less than 5 
percent of the State's total WIC food sales. If a State is exempt 
because the WIC-only stores in the State account for less than 5 
percent of the State's total WIC food sales, the State is nonetheless 
required to ensure that its aggregate food costs are no higher if WIC 
participants choose to shop at WIC-only stores rather than at regular 
competitive stores.
  Because WIC-only stores do not market items outside of the WIC 
program, the stores' earnings necessarily flow from the WIC program. To 
ensure that WIC dollars are not spent on non-WIC items, the bill 
prohibits giveaways of incentive items or other free merchandise by 
WIC-only stores unless the store can demonstrate that the items or 
merchandise were obtained at no cost. Although an exemption for food or 
merchandise of nominal value has been added since the committee 
approved this bill, the intent of the bill remains to ban giveaways of 
the kind of items that are currently given away, such as diapers, 
strollers, bicycles, small kitchen appliances, other household 
products, and two-for-one offers on WIC food items. Food or merchandise 
of nominal value is meant to include items of lesser value than these 
items. In issuing guidance or regulations on this matter, the Secretary 
must ensure that even offering items of nominal value does not 
unnecessarily drive up costs in the WIC program.
  This bill also includes important provisions on infant formula cost 
containment competitive bidding which will, I believe, ensure that the 
WIC program continues to benefit from the strength of the competitive 
marketplace and the infant formula rebates that enable so many children 
to participate in the WIC program.
  I am pleased that this bill takes positive steps to enhance child 
nutrition and to address the epidemic of overweight and obesity in this 
country as well. Let there be no mistake, poor nutrition early in life 
lays the foundation for chronic disease and premature death later in 
life. According to the CDC, poor diet and physical inactivity will soon 
overtake smoking as the Nation's leading cause of death. In 2000, 
400,000 deaths were associated with poor diet and physical inactivity.
  This fiscal year the Federal Government will invest over $8.3 billion 
in the school lunch and school breakfast programs, and this bill is a 
5-year extension of this investment. The food served in these Federal 
school food programs meets Federal guidelines and provides balanced 
nutrition for the children who eat school meals. But in a majority of 
high schools and middle schools and an alarming number of elementary 
schools these school food programs and our taxpayer investment in them 
are undermined by an array of less nutritious food choices.
  These foods that are sold in competition with the school meals are 
often high in fat, sugar and sodium. When kids choose these foods, they 
choose not to eat taxpayer supported, nutritionally balanced meals 
provided through the School Lunch and School Breakfast Programs. Not 
surprisingly, studies show that when kids get their lunches through 
vending machines at school their diets aren't nearly as healthy as when 
they obtain their meals through the school meal programs. In fact, 
among school-aged children only 2 percent meet the dietary 
recommendations for all food groups.
  Research shows that a la carte items and vending machines displace 
student consumption of more nutritious foods. In one study, students 
from schools that did not offer a la carte foods consumed half a 
serving more of fruit and a whole serving more of vegetables per day 
than did children in schools that did have a la carte programs. In 
another study, when kids gained access to foods other than through the 
School Lunch Program, they consumed 33 percent less fruit, 42 percent 
less vegetables, and 35 percent less milk.
  Not surprisingly, poor diets contribute to childhood obesity and 
overweight children, with significant negative effects. Compared to 
regular-weight children, overweight children are more likely to have 
high levels of cholesterol, high blood pressure, high levels of 
insulin, and exhibit generally higher numbers of risk factors for 
cardiovascular disease. Between 50 and 80 percent of diabetes cases are 
associated with diet and sedentary lifestyles.
  And it is not just about obesity. The lack of fruits, vegetables, and 
milk in our children's diets has tremendous ramifications for the 
health of kids and adults. Poor eating habits early in life lay the 
foundation for chronic disease and premature death at a later age. 
Cancer, heart disease, and osteoporosis are just a few of the many 
diseases associated with poor diet.
  Because schools receive substantial revenue from the sale of junk 
food at school, some folks are concerned that schools will suffer 
financially if they replace junk food with healthier choices. I 
understand this concern, but I disagree with the premise. Many schools 
have stocked their vending machines and snack bars with healthy food, 
with no negative impact on revenue. Wide-open sales of unhealthy foods 
in schools hasn't always been the norm. Back in the 1970s, Congress 
gave the Secretary of Agriculture the authority to set nutrition 
guidelines to make sure our child nutrition programs work. Congress 
intended for that authority to extend to all food sales throughout the 
school and for the entire school day. And this is what the regulations 
put forth by USDA did.

  However, the courts subsequently struck that authority down--wrongly, 
in my opinion. As a result, USDA regulations only apply to foods sold 
in the school cafeteria and during mealtime rather than to the entire 
school and school day. This has left us with this crazy situation in 
which, rather than getting a decent meal in the school cafeteria at 
lunch, kids can instead just go to the vending machines in the hall for 
a soft drink and junk food.
  I believe that Congress should reinstate the Secretary of 
Agriculture's authority to set nutritional standards for foods 
available anywhere on school grounds at any time of the day. The 
Secretary would then determine, after public comment, how to use that 
authority.
  This bill takes a different approach, but one that I believe holds 
great promise for improving the dietary

[[Page S7249]]

quality of foods sold in our Nation's schools.
  First, it extends and expands the Fresh Fruit and Vegetable Program. 
Two years ago in the farm bill, we created a pilot program to provide 
free fresh and dried fruits and vegetables to children. The pilot 
covered 25 schools in each of 4 states and 7 schools on an Indian 
reservation. This program has been remarkably popular with the schools, 
but more importantly, with the students.
  In a world in which grocery clerks may not know a radish from a 
rutabaga, it is encouraging to see elementary, middle school and high 
school students eating fruits and vegetables that they have never seen 
before and loving them.
  This bill continues the fruit and vegetable program in the current 
states and expands it to 4 additional states and additional schools on 
Indian reservations. I would like to do more, but this is strong 
progress toward getting more fruits and vegetables in all schools 
across the Nation.
  This bill also requires schools that participate in the National 
School Lunch or School Breakfast Programs to craft, with broad input 
from parents and others, plans that include goals for nutrition 
education, physical activity, and other activities to promote student 
wellness. The plans must also include nutrition guidelines for all 
foods sold in school.
  This is not an attack on any particular type of food. Rather, school 
wellness policies, as required by this bill, pertain to healthy 
lifestyles more broadly and look at all foods in school, not just those 
in vending machines and snack bars. It does not mandate what foods can 
be offered or stipulate their content, but it does ask local schools to 
set standards that they believe are appropriate.
  The bill also provides USDA with mandatory funds to help schools to 
establish their own local wellness policies. I wish that it provided 
more or this technical assistance, but it is a positive first step.
  In my mind, these local wellness policies are a potentially 
revolutionary step towards improving our children's health. They 
provide real empowerment at the local school level. I look forward to 
seeing how schools endeavor to craft these policies and the effect that 
they have on school nutrition environments and children's health.
  I also hope that, as schools work to craft their own wellness 
policies, they provide fertile ground for innovation and creative 
thinking. It is past time that all sectors of our society focus less on 
treating sickness, and focus more on promoting health and preventing 
obesity and chronic disease. This bill, in several ways, moves toward 
that goal and harnesses a potent force, our schools, in the efforts to 
be healthier as a country.
  I thank my colleagues for their assistance and input on this 
important bill as well as for their support.
  Mr. CRAPO. Mr. President, I ask unanimous consent that the Cochran 
amendment which is at the desk be agreed to, that the bill, as amended, 
be read a third time and passed, that the motions to reconsider be laid 
upon the table, and that any statements relating to the bill be printed 
in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3474) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The bill (S. 2507) was read the third time and passed, as follows:

                                S. 2507

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Child 
     Nutrition and WIC Reauthorization Act of 2004''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; Table of contents.

  TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 101.  Nutrition promotion.
Sec. 102.  Nutrition requirements.
Sec. 103.  Provision of information.
Sec. 104.  Direct certification.
Sec. 105.  Household applications.
Sec. 106.  Duration of eligibility for free or reduced price meals.
Sec. 107.  Runaway, homeless, and migrant youth.
Sec. 108.  Certification by local educational agencies.
Sec. 109.  Exclusion of military housing allowances.
Sec. 110.  Waiver of requirement for weighted averages for nutrient 
              analysis.
Sec. 111.  Food safety. 
Sec. 112.  Purchases of locally produced foods.
Sec. 113.  Special assistance.
Sec. 114.  Food and nutrition projects integrated with elementary 
              school curricula.
Sec. 115.  Procurement training.
Sec. 116.  Summer food service program for children.
Sec. 117.  Commodity distribution program.
Sec. 118.  Notice of irradiated food products.
Sec. 119.  Child and adult care food program.
Sec. 120.  Fresh fruit and vegetable program.
Sec. 121.  Summer food service residential camp eligibility.
Sec. 122.  Access to local foods and school gardens.
Sec. 123.  Year-round services for eligible entities.
Sec. 124.  Free lunch and breakfast eligibility.
Sec. 125.  Training, technical assistance, and food service management 
              institute.
Sec. 126.  Administrative error reduction.
Sec. 127.  Compliance and accountability.
Sec. 128.  Information clearinghouse.
Sec. 129.  Program evaluation.

          TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

Sec. 201.  Severe need assistance.
Sec. 202.  State administrative expenses.
Sec. 203.  Special supplemental nutrition program for women, infants, 
              and children.
Sec. 204.  Local wellness policy.
Sec. 205.  Team nutrition network.
Sec. 206.  Review of best practices in the breakfast program.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301.  Commodity distribution programs.

                        TITLE IV--MISCELLANEOUS

Sec. 401.  Sense of Congress regarding efforts to prevent and reduce 
              childhood obesity.

                        TITLE V--IMPLEMENTATION

Sec. 501.  Guidance and regulations.
Sec. 502.  Effective dates.

  TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

     SEC. 101. NUTRITION PROMOTION.

       The Richard B. Russell National School Lunch Act is amended 
     by inserting after section 4 (42 U.S.C. 1753) the following:

     ``SEC. 5. NUTRITION PROMOTION.

       ``(a) In General.--Subject to the availability of funds 
     made available under subsection (g), the Secretary shall make 
     payments to State agencies for each fiscal year, in 
     accordance with this section, to promote nutrition in food 
     service programs under this Act and the school breakfast 
     program established under the Child Nutrition Act of 1966 (42 
     U.S.C. 1771 et seq.).
       ``(b) Total Amount for Each Fiscal Year.--The total amount 
     of funds available for a fiscal year for payments under this 
     section shall equal not more than the product obtained by 
     multiplying--
       ``(1) \1/2\ cent; by
       ``(2) the number of lunches reimbursed through food service 
     programs under this Act during the second preceding fiscal 
     year in schools, institutions, and service institutions that 
     participate in the food service programs.
       ``(c) Payments to States.--
       ``(1) Allocation.--Subject to paragraph (2), from the 
     amount of funds available under subsection (g) for a fiscal 
     year, the Secretary shall allocate to each State agency an 
     amount equal to the greater of--
       ``(A) a uniform base amount established by the Secretary; 
     or
       ``(B) an amount determined by the Secretary, based on the 
     ratio that--
       ``(i) the number of lunches reimbursed through food service 
     programs under this Act in schools, institutions, and service 
     institutions in the State that participate in the food 
     service programs; bears to
       ``(ii) the number of lunches reimbursed through the food 
     service programs in schools, institutions, and service 
     institutions in all States that participate in the food 
     service programs.
       ``(2) Reductions.--The Secretary shall reduce allocations 
     to State agencies qualifying for an allocation under 
     paragraph (1)(B), in a manner determined by the Secretary, to 
     the extent necessary to ensure that the total amount of funds 
     allocated under paragraph (1) is not greater than the amount 
     appropriated under subsection (g).
       ``(d) Use of Payments.--
       ``(1) Use by state agencies.--A State agency may reserve, 
     to support dissemination and use of nutrition messages and 
     material developed by the Secretary, up to--
       ``(A) 5 percent of the payment received by the State for a 
     fiscal year under subsection (c); or
       ``(B) in the case of a small State (as determined by the 
     Secretary), a higher percentage (as determined by the 
     Secretary) of the payment.
       ``(2) Disbursement to schools and institutions.--Subject to 
     paragraph (3), the State agency shall disburse any remaining 
     amount of the payment to school food authorities and 
     institutions participating in food service programs described 
     in subsection (a) to disseminate and use nutrition messages 
     and material developed by the Secretary.

[[Page S7250]]

       ``(3) Summer food service program for children.--In 
     addition to any amounts reserved under paragraph (1), in the 
     case of the summer food service program for children 
     established under section 13, the State agency may--
       ``(A) retain a portion of the funds made available under 
     subsection (c) (as determined by the Secretary); and
       ``(B) use the funds, in connection with the program, to 
     disseminate and use nutrition messages and material developed 
     by the Secretary.
       ``(e) Documentation.--A State agency, school food 
     authority, and institution receiving funds under this section 
     shall maintain documentation of nutrition promotion 
     activities conducted under this section.
       ``(f) Reallocation.--The Secretary may reallocate, to carry 
     out this section, any amounts made available to carry out 
     this section that are not obligated or expended, as 
     determined by the Secretary.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section, to remain available until 
     expended.''.

     SEC. 102. NUTRITION REQUIREMENTS.

       Section 9(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(a)) is amended by striking 
     paragraph (2) and inserting the following:
       ``(2) Fluid milk.--
       ``(A) In general.--Lunches served by schools participating 
     in the school lunch program under this Act--
       ``(i) shall offer students fluid milk in a variety of fat 
     contents;
       ``(ii) may offer students flavored and unflavored fluid 
     milk and lactose-free fluid milk; and
       ``(iii) shall provide a substitute for fluid milk for 
     students whose disability restricts their diet, on receipt of 
     a written statement from a licensed physician that identifies 
     the disability that restricts the student's diet and that 
     specifies the substitute for fluid milk.
       ``(B) Substitutes.--
       ``(i) Standards for substitution.--A school may substitute 
     for the fluid milk provided under subparagraph (A), a 
     nondairy beverage that is nutritionally equivalent to fluid 
     milk and meets nutritional standards established by the 
     Secretary (which shall, among other requirements to be 
     determined by the Secretary, include fortification of 
     calcium, protein, vitamin A, and vitamin D to levels found in 
     cow's milk) for students who cannot consume fluid milk 
     because of a medical or other special dietary need other than 
     a disability described in subparagraph (A)(iii).
       ``(ii) Notice.--The substitutions may be made if the school 
     notifies the State agency that the school is implementing a 
     variation allowed under this subparagraph, and if the 
     substitution is requested by written statement of a medical 
     authority or by a student's parent or legal guardian that 
     identifies the medical or other special dietary need that 
     restricts the student's diet, except that the school shall 
     not be required to provide beverages other than beverages the 
     school has identified as acceptable substitutes.
       ``(iii) Excess expenses borne by school food authority.--
     Expenses incurred in providing substitutions under this 
     subparagraph that are in excess of expenses covered by 
     reimbursements under this Act shall be paid by the school 
     food authority.
       ``(C) Restrictions on sale of milk prohibited.--A school 
     that participates in the school lunch program under this Act 
     shall not directly or indirectly restrict the sale or 
     marketing of fluid milk products by the school (or by a 
     person approved by the school) at any time or any place--
       ``(i) on the school premises; or
       ``(ii) at any school-sponsored event.''.

     SEC. 103. PROVISION OF INFORMATION.

       Section 9(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(a)) is amended by adding at the end 
     the following:
       ``(4) Provision of information.--
       ``(A) Guidance.--Prior to the beginning of the school year 
     beginning July 2004, the Secretary shall issue guidance to 
     States and school food authorities to increase the 
     consumption of foods and food ingredients that are 
     recommended for increased serving consumption in the most 
     recent Dietary Guidelines for Americans published under 
     section 301 of the National Nutrition Monitoring and Related 
     Research Act of 1990 (7 U.S.C. 5341).
       ``(B) Rules.--Not later than 2 years after the date of 
     enactment of this paragraph, the Secretary shall promulgate 
     rules, based on the most recent Dietary Guidelines for 
     Americans, that reflect specific recommendations, expressed 
     in serving recommendations, for increased consumption of 
     foods and food ingredients offered in school nutrition 
     programs under this Act and the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.).''.

     SEC. 104. DIRECT CERTIFICATION.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) is amended--
       (1) by redesignating paragraphs (3) through (7) as 
     paragraphs (9) through (13), respectively; and
       (2) in paragraph (2)--
       (A) in subparagraph (B)--
       (i) by striking ``(B) Applications'' and inserting the 
     following:
       ``(B) Applications and descriptive material.--
       ``(i) In general.--Applications'';
       (ii) in the second sentence, by striking ``Such forms and 
     descriptive material'' and inserting the following:
       ``(ii) Income eligibility guidelines.--Forms and 
     descriptive material distributed in accordance with clause 
     (i)''; and
       (iii) by adding at the end the following:
       ``(iii) Contents of descriptive material.--

       ``(I) In general.--Descriptive material distributed in 
     accordance with clause (i) shall contain a notification 
     that--

       ``(aa) participants in the programs listed in subclause 
     (II) may be eligible for free or reduced price meals; and
       ``(bb) documentation may be requested for verification of 
     eligibility for free or reduced price meals.

       ``(II) Programs.--The programs referred to in subclause 
     (I)(aa) are--

       ``(aa) the special supplemental nutrition program for 
     women, infants, and children established by section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786);
       ``(bb) the food stamp program established under the Food 
     Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       ``(cc) the food distribution program on Indian reservations 
     established under section 4(b) of the Food Stamp Act of 1977 
     (7 U.S.C. 2013(b)); and
       ``(dd) a State program funded under the program of block 
     grants to States for temporary assistance for needy families 
     established under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.).'';
       (B) by striking ``(C)(i)'' and inserting ``(3)''; and
       (C) by striking clause (ii) of subparagraph (C) (as it 
     existed before the amendment made by subparagraph (B)) and 
     all that follows through the end of subparagraph (D) and 
     inserting the following:
       ``(4) Direct certification for children in food stamp 
     households.--
       ``(A) In general.--Subject to subparagraph (D), each State 
     agency shall enter into an agreement with the State agency 
     conducting eligibility determinations for the food stamp 
     program established under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.).
       ``(B) Procedures.--Subject to paragraph (6), the agreement 
     shall establish procedures under which a child who is a 
     member of a household receiving assistance under the food 
     stamp program shall be certified as eligible for free lunches 
     under this Act and free breakfasts under the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.), without further 
     application.
       ``(C) Certification.--Subject to paragraph (6), under the 
     agreement, the local educational agency conducting 
     eligibility determinations for a school lunch program under 
     this Act and a school breakfast program under the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall certify 
     a child who is a member of a household receiving assistance 
     under the food stamp program as eligible for free lunches 
     under this Act and free breakfasts under the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.), without further 
     application.
       ``(D) Applicability.--This paragraph applies to--
       ``(i) in the case of the school year beginning July 2006, a 
     school district that had an enrollment of 25,000 students or 
     more in the preceding school year;
       ``(ii) in the case of the school year beginning July 2007, 
     a school district that had an enrollment of 10,000 students 
     or more in the preceding school year; and
       ``(iii) in the case of the school year beginning July 2008 
     and each subsequent school year, each local educational 
     agency.''.
       (b) Administration.--
       (1) In general.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) (as amended by 
     subsection (a)) is amended by inserting after paragraph (4) 
     the following:
       ``(5) Discretionary certification.--
       ``(A) In general.--Subject to paragraph (6), any local 
     educational agency may certify any child as eligible for free 
     lunches or breakfasts, without further application, by 
     directly communicating with the appropriate State or local 
     agency to obtain documentation of the status of the child 
     as--
       ``(i) a member of a family that is receiving assistance 
     under the temporary assistance for needy families program 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.) that the Secretary determines 
     complies with standards established by the Secretary that 
     ensure that the standards under the State program are 
     comparable to or more restrictive than those in effect on 
     June 1, 1995;
       ``(ii) a homeless child or youth (defined as 1 of the 
     individuals described in section 725(2) of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a(2));
       ``(iii) served by the runaway and homeless youth grant 
     program established under the Runaway and Homeless Youth Act 
     (42 U.S.C. 5701 et seq.); or
       ``(iv) a migratory child (as defined in section 1309 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6399)).''.
       ``(B) Children of households receiving food stamps.--
     Subject to paragraph (6), any local educational agency may 
     certify any child as eligible for free lunches or breakfasts, 
     without further application, by directly communicating with 
     the appropriate State or local agency to obtain documentation 
     of the status of the child as a member of a household that is 
     receiving food stamps under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.).
       ``(6) Use or disclosure of information.--

[[Page S7251]]

       ``(A) In general.--The use or disclosure of any information 
     obtained from an application for free or reduced price meals, 
     or from a State or local agency referred to in paragraph 
     (3)(F), (4), or (5), shall be limited to--
       ``(i) a person directly connected with the administration 
     or enforcement of this Act or the Child Nutrition Act of 1966 
     (42 U.S.C. 1771 et seq.) (including a regulation promulgated 
     under either Act);
       ``(ii) a person directly connected with the administration 
     or enforcement of--

       ``(I) a Federal education program;
       ``(II) a State health or education program administered by 
     the State or local educational agency (other than a program 
     carried out under title XIX or XXI of the Social Security Act 
     (42 U.S.C. 1396 et seq.; 42 U.S.C. 1397aa et seq.)); or
       ``(III) a Federal, State, or local means-tested nutrition 
     program with eligibility standards comparable to the school 
     lunch program under this Act;

       ``(iii)(I) the Comptroller General of the United States for 
     audit and examination authorized by any other provision of 
     law; and
       ``(II) notwithstanding any other provision of law, a 
     Federal, State, or local law enforcement official for the 
     purpose of investigating an alleged violation of any program 
     covered by this paragraph or paragraph (3)(F), (4), or (5);
       ``(iv) a person directly connected with the administration 
     of the State medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) or the State children's 
     health insurance program under title XXI of that Act (42 
     U.S.C. 1397aa et seq.) solely for the purposes of--

       ``(I) identifying children eligible for benefits under, and 
     enrolling children in, those programs, except that this 
     subclause shall apply only to the extent that the State and 
     the local educational agency or school food authority so 
     elect; and
       ``(II) verifying the eligibility of children for programs 
     under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 
     1771 et seq.); and

       ``(v) a third party contractor described in paragraph 
     (3)(G)(iv).
       ``(B) Limitation on information provided.--Information 
     provided under clause (ii) or (v) of subparagraph (A) shall 
     be limited to the income eligibility status of the child for 
     whom application for free or reduced price meal benefits is 
     made or for whom eligibility information is provided under 
     paragraph (3)(F), (4), or (5), unless the consent of the 
     parent or guardian of the child for whom application for 
     benefits was made is obtained.
       ``(C) Criminal penalty.--A person described in subparagraph 
     (A) who publishes, divulges, discloses, or makes known in any 
     manner, or to any extent not authorized by Federal law 
     (including a regulation), any information obtained under this 
     subsection shall be fined not more than $1,000 or imprisoned 
     not more than 1 year, or both.
       ``(D) Requirements for waiver of confidentiality.--A State 
     that elects to exercise the option described in subparagraph 
     (A)(iv)(I) shall ensure that any local educational agency or 
     school food authority acting in accordance with that option--
       ``(i) has a written agreement with 1 or more State or local 
     agencies administering health programs for children under 
     titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 
     et seq. and 1397aa et seq.) that requires the health agencies 
     to use the information obtained under subparagraph (A) to 
     seek to enroll children in those health programs; and
       ``(ii)(I) notifies each household, the information of which 
     shall be disclosed under subparagraph (A), that the 
     information disclosed will be used only to enroll children in 
     health programs referred to in subparagraph (A)(iv); and
       ``(II) provides each parent or guardian of a child in the 
     household with an opportunity to elect not to have the 
     information disclosed.
       ``(E) Use of disclosed information.--A person to which 
     information is disclosed under subparagraph (A)(iv)(I) shall 
     use or disclose the information only as necessary for the 
     purpose of enrolling children in health programs referred to 
     in subparagraph (A)(iv).
       ``(7) Free and reduced price policy statement.--
       ``(A) In general.--After the initial submission, a local 
     educational agency shall not be required to submit a free and 
     reduced price policy statement to a State educational agency 
     under this Act unless there is a substantive change in the 
     free and reduced price policy of the local educational 
     agency.
       ``(B) Routine change.--A routine change in the policy of a 
     local educational agency (such as an annual adjustment of the 
     income eligibility guidelines for free and reduced price 
     meals) shall not be sufficient cause for requiring the local 
     educational agency to submit a policy statement.
       ``(8) Communications.--
       ``(A) In general.--Any communication with a household under 
     this subsection or subsection (d) shall be in an 
     understandable and uniform format and, to the maximum extent 
     practicable, in a language that parents and legal guardians 
     can understand.
       ``(B) Electronic availability.--In addition to the 
     distribution of applications and descriptive material in 
     paper form as provided for in this paragraph, the 
     applications and material may be made available 
     electronically via the Internet.''.
       (2) Agreement for direct certification and cooperation.--
     Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
     amended by adding at the end the following:
       ``(u) Agreement for Direct Certification and Cooperation.--
       ``(1) In general.--Each State agency shall enter into an 
     agreement with the State agency administering the school 
     lunch program established under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.).
       ``(2) Contents.--The agreement shall establish procedures 
     that ensure that--
       ``(A) any child receiving benefits under this Act shall be 
     certified as eligible for free lunches under the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.) 
     and free breakfasts under the Child Nutrition Act of 1966 (42 
     U.S.C. 1771 et seq.), without further application; and
       ``(B) each State agency shall cooperate in carrying out 
     paragraphs (3)(F) and (4) of section 9(b) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1758(b)).''.
       (c) Funding.--
       (1) In general.--On October 1, 2005, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     assist States in carrying out the amendments contained in 
     this section and the provisions of section 9(b)(3) of the 
     Richard B. Russell National School Lunch Act (as amended by 
     section 105(a)) $9,000,000, to remain available until 
     expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to assist 
     States in carrying out the amendments made by this section 
     and the provisions of section 9(b)(3) of the Richard B. 
     Russell National School Lunch Act (as amended by section 
     105(a)) the funds transferred under paragraph (1), without 
     further appropriation.
       (d) Conforming Amendments.--
       (1) Effective July 1, 2008, paragraph (5) of section 9(b) 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1758(b)) (as added by subsection (b)(1)) is amended--
       (A) by striking subparagraph (B);
       (B) by striking ``certification.--'' and all that follows 
     through ``In general.--'' and inserting ``certification.--''; 
     and
       (C) by redesignating clauses (i) through (iv) as 
     subparagraphs (A) through (D), respectively, and indenting 
     appropriately.
       (2) Section 9 of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758) (as amended by subsection (a)(1)) 
     is amended--
       (A) in subsection (b)(12)(B), by striking ``paragraph 
     (2)(C)'' and inserting ``this subsection''; and
       (B) in the second sentence of subsection (d)(1), by 
     striking ``subsection (b)(2)(C)'' and inserting ``subsection 
     (b)(3)(G)''.
       (3) Section 11(e) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1759a(e)) is amended in the first 
     sentence by striking ``section 9(b)(3)'' and inserting 
     ``section 9(b)(9)''.

     SEC. 105. HOUSEHOLD APPLICATIONS.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) (as amended by 
     section 104(a)(2)(B)) is amended by striking paragraph (3) 
     and inserting the following:
       ``(3) Household applications.--
       ``(A) Definition of household application.--In this 
     paragraph, the term `household application' means an 
     application for a child of a household to receive free or 
     reduced price school lunches under this Act, or free or 
     reduced price school breakfasts under the Child Nutrition Act 
     of 1966 (42 U.S.C. 1771 et seq.), for which an eligibility 
     determination is made other than under paragraph (4) or (5).
       ``(B) Eligibility determination.--
       ``(i) In general.--An eligibility determination shall be 
     made on the basis of a complete household application 
     executed by an adult member of the household or in accordance 
     with guidance issued by the Secretary.
       ``(ii) Electronic signatures and applications.--A household 
     application may be executed using an electronic signature 
     if--

       ``(I) the application is submitted electronically; and
       ``(II) the electronic application filing system meets 
     confidentiality standards established by the Secretary.

       ``(C) Children in household.--
       ``(i) In general.--The household application shall identify 
     the names of each child in the household for whom meal 
     benefits are requested.
       ``(ii) Separate applications.--A State educational agency 
     or local educational agency may not request a separate 
     application for each child in the household that attends 
     schools under the same local educational agency.
       ``(D) Verification of sample.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Error prone application.--The term `error prone 
     application' means an approved household application that--

       ``(aa) indicates monthly income that is within $100, or an 
     annual income that is within $1,200, of the income 
     eligibility limitation for free or reduced price meals; or
       ``(bb) in lieu of the criteria established under item (aa), 
     meets criteria established by the Secretary.

       ``(II) Non-response rate.--The term `non-response rate' 
     means (in accordance with guidelines established by the 
     Secretary) the percentage of approved household applications 
     for which verification information has not been obtained by a 
     local educational agency after attempted verification under 
     subparagraphs (F) and (G).

[[Page S7252]]

       ``(ii) Verification of sample.--Each school year, a local 
     educational agency shall verify eligibility of the children 
     in a sample of household applications approved for the school 
     year by the local educational agency, as determined by the 
     Secretary in accordance with this subsection.
       ``(iii) Sample size.--Except as otherwise provided in this 
     paragraph, the sample for a local educational agency for a 
     school year shall equal the lesser of--

       ``(I) 3 percent of all applications approved by the local 
     educational agency for the school year, as of October 1 of 
     the school year, selected from error prone applications; or
       ``(II) 3,000 error prone applications approved by the local 
     educational agency for the school year, as of October 1 of 
     the school year.

       ``(iv) Alternative sample size.--

       ``(I) In general.--If the conditions described in subclause 
     (IV) are met, the verification sample size for a local 
     educational agency shall be the sample size described in 
     subclause (II) or (III), as determined by the local 
     educational agency.
       ``(II) 3,000/3 percent option.--The sample size described 
     in this subclause shall be the lesser of 3,000, or 3 percent 
     of, applications selected at random from applications 
     approved by the local educational agency for the school year, 
     as of October 1 of the school year.
       ``(III) 1,000/1 percent plus option.--

       ``(aa) In general.--The sample size described in this 
     subclause shall be the sum of--
       ``(AA) the lesser of 1,000, or 1 percent of, all 
     applications approved by the local educational agency for the 
     school year, as of October 1 of the school year, selected 
     from error prone applications; and
       ``(BB) the lesser of 500, or \1/2\ of 1 percent of, 
     applications approved by the local educational agency for the 
     school year, as of October 1 of the school year, that provide 
     a case number (in lieu of income information) showing 
     participation in a program described in item (bb) selected 
     from those approved applications that provide a case number 
     (in lieu of income information) verifying the participation.
       ``(bb) Programs.--The programs described in this item are--
       ``(AA) the food stamp program established under the Food 
     Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       ``(BB) the food distribution program on Indian reservations 
     established under section 4(b) of the Food Stamp Act of 1977 
     (7 U.S.C. 2013(b)); and
       ``(CC) a State program funded under the program of block 
     grants to States for temporary assistance for needy families 
     established under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.) that the Secretary determines 
     complies with standards established by the Secretary that 
     ensure that the standards under the State program are 
     comparable to or more restrictive than those in effect on 
     June 1, 1995.

       ``(IV) Conditions.--The conditions referred to in subclause 
     (I) shall be met for a local educational agency for a school 
     year if--

       ``(aa) the nonresponse rate for the local educational 
     agency for the preceding school year is less than 20 percent; 
     or
       ``(bb) the local educational agency has more than 20,000 
     children approved by application by the local educational 
     agency as eligible for free or reduced price meals for the 
     school year, as of October 1 of the school year, and--
       ``(AA) the nonresponse rate for the preceding school year 
     is at least 10 percent below the nonresponse rate for the 
     second preceding school year; or
       ``(BB) in the case of the school year beginning July 2005, 
     the local educational agency attempts to verify all approved 
     household applications selected for verification through use 
     of public agency records from at least 2 of the programs or 
     sources of information described in subparagraph (F)(i).
       ``(v) Additional selected applications.--A sample for a 
     local educational agency for a school year under clauses 
     (iii) and (iv)(III)(AA) shall include the number of 
     additional randomly selected approved household applications 
     that are required to comply with the sample size requirements 
     in those clauses.
       ``(E) Preliminary review.--
       ``(i) Review for accuracy.--

       ``(I) In general.--Prior to conducting any other 
     verification activity for approved household applications 
     selected for verification, the local educational agency shall 
     ensure that the initial eligibility determination for each 
     approved household application is reviewed for accuracy by an 
     individual other than the individual making the initial 
     eligibility determination, unless otherwise determined by the 
     Secretary.
       ``(II) Waiver.--The requirements of subclause (I) shall be 
     waived for a local educational agency if the local 
     educational agency is using a technology-based solution that 
     demonstrates a high level of accuracy, to the satisfaction of 
     the Secretary, in processing an initial eligibility 
     determination in accordance with the income eligibility 
     guidelines of the school lunch program.

       ``(ii) Correct eligibility determination.--If the review 
     indicates that the initial eligibility determination is 
     correct, the local educational agency shall verify the 
     approved household application.
       ``(iii) Incorrect eligibility determination.--If the review 
     indicates that the initial eligibility determination is 
     incorrect, the local educational agency shall (as determined 
     by the Secretary)--

       ``(I) correct the eligibility status of the household;
       ``(II) notify the household of the change;
       ``(III) in any case in which the review indicates that the 
     household is not eligible for free or reduced-price meals, 
     notify the household of the reason for the ineligibility and 
     that the household may reapply with income documentation for 
     free or reduced-price meals; and
       ``(IV) in any case in which the review indicates that the 
     household is eligible for free or reduced-price meals, verify 
     the approved household application.

       ``(F) Direct verification.--
       ``(i) In general.--Subject to clauses (ii) and (iii), to 
     verify eligibility for free or reduced price meals for 
     approved household applications selected for verification, 
     the local educational agency may (in accordance with criteria 
     established by the Secretary) first obtain and use income and 
     program participation information from a public agency 
     administering--

       ``(I) the food stamp program established under the Food 
     Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       ``(II) the food distribution program on Indian reservations 
     established under section 4(b) of the Food Stamp Act of 1977 
     (7 U.S.C. 2013(b));
       ``(III) the temporary assistance for needy families program 
     funded under part A of title IV of the Social Security Act 
     (42 U.S.C. 601 et seq.);
       ``(IV) the State medicaid program under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.); or
       ``(V) a similar income-tested program or other source of 
     information, as determined by the Secretary.

       ``(ii) Free meals.--Public agency records that may be 
     obtained and used under clause (i) to verify eligibility for 
     free meals for approved household applications selected for 
     verification shall include the most recent available 
     information (other than information reflecting program 
     participation or income before the 180-day period ending on 
     the date of application for free meals) that is relied on to 
     administer--

       ``(I) a program or source of information described in 
     clause (i) (other than clause (i)(IV)); or
       ``(II) the State plan for medical assistance under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.) in--

       ``(aa) a State in which the income eligibility limit 
     applied under section 1902(l)(2)(C) of that Act (42 U.S.C. 
     1396a(l)(2)(C)) is not more than 133 percent of the official 
     poverty line described in section 1902(l)(2)(A) of that Act 
     (42 U.S.C. 1396a(l)(2)(A)); or
       ``(bb) a State that otherwise identifies households that 
     have income that is not more than 133 percent of the official 
     poverty line described in section 1902(l)(2)(A) of that Act 
     (42 U.S.C. 1396a(l)(2)(A)).
       ``(iii) Reduced price meals.--Public agency records that 
     may be obtained and used under clause (i) to verify 
     eligibility for reduced price meals for approved household 
     applications selected for verification shall include the most 
     recent available information (other than information 
     reflecting program participation or income before the 180-day 
     period ending on the date of application for reduced price 
     meals) that is relied on to administer--

       ``(I) a program or source of information described in 
     clause (i) (other than clause (i)(IV)); or
       ``(II) the State plan for medical assistance under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.) in--

       ``(aa) a State in which the income eligibility limit 
     applied under section 1902(l)(2)(C) of that Act (42 U.S.C. 
     1396a(l)(2)(C)) is not more than 185 percent of the official 
     poverty line described in section 1902(l)(2)(A) of that Act 
     (42 U.S.C. 1396a(l)(2)(A)); or
       ``(bb) a State that otherwise identifies households that 
     have income that is not more than 185 percent of the official 
     poverty line described in section 1902(l)(2)(A) of that Act 
     (42 U.S.C. 1396a(l)(2)(A)).
       ``(iv) Evaluation.--Not later than 3 years after the date 
     of enactment of this subparagraph, the Secretary shall 
     complete an evaluation of--

       ``(I) the effectiveness of direct verification carried out 
     under this subparagraph in decreasing the portion of the 
     verification sample that must be verified under subparagraph 
     (G) while ensuring that adequate verification information is 
     obtained; and
       ``(II) the feasibility of direct verification by State 
     agencies and local educational agencies.

       ``(v) Expanded use of direct verification.--If the 
     Secretary determines that direct verification significantly 
     decreases the portion of the verification sample that must be 
     verified under subparagraph (G), while ensuring that adequate 
     verification information is obtained, and can be conducted by 
     most State agencies and local educational agencies, the 
     Secretary may require a State agency or local educational 
     agency to implement direct verification through 1 or more of 
     the programs described in clause (i), as determined by the 
     Secretary, unless the State agency or local educational 
     agency demonstrates (under criteria established by the 
     Secretary) that the State agency or local educational agency 
     lacks the capacity to conduct, or is unable to implement, 
     direct verification.
       ``(G) Household verification.--

[[Page S7253]]

       ``(i) In general.--If an approved household application is 
     not verified through the use of public agency records, a 
     local educational agency shall provide to the household 
     written notice that--

       ``(I) the approved household application has been selected 
     for verification; and
       ``(II) the household is required to submit verification 
     information to confirm eligibility for free or reduced price 
     meals.

       ``(ii) Phone number.--The written notice in clause (i) 
     shall include a toll-free phone number that parents and legal 
     guardians in households selected for verification can call 
     for assistance with the verification process.
       ``(iii) Followup activities.--If a household does not 
     respond to a verification request, a local educational agency 
     shall make at least 1 attempt to obtain the necessary 
     verification from the household in accordance with guidelines 
     and regulations promulgated by the Secretary.
       ``(iv) Contract authority for school food authorities.--A 
     local educational agency may contract (under standards 
     established by the Secretary) with a third party to assist 
     the local educational agency in carrying out clause (iii).
       ``(H) Verification deadline.--
       ``(i) General deadline.--

       ``(I) In general.--Subject to subclause (II), not later 
     than November 15 of each school year, a local educational 
     agency shall complete the verification activities required 
     for the school year (including followup activities).
       ``(II) Extension.--Under criteria established by the 
     Secretary, a State may extend the deadline established under 
     subclause (I) for a school year for a local educational 
     agency to December 15 of the school year.

       ``(ii) Eligibility changes.--Based on the verification 
     activities, the local educational agency shall make 
     appropriate modifications to the eligibility determinations 
     made for household applications in accordance with criteria 
     established by the Secretary.
       ``(I) Local conditions.--In the case of a natural disaster, 
     civil disorder, strike, or other local condition (as 
     determined by the Secretary), the Secretary may substitute 
     alternatives for--
       ``(i) the sample size and sample selection criteria 
     established under subparagraph (D); and
       ``(ii) the verification deadline established under 
     subparagraph (H).
       ``(J) Individual review.--In accordance with criteria 
     established by the Secretary, the local educational agency 
     may, on individual review--
       ``(i) decline to verify no more than 5 percent of approved 
     household applications selected under subparagraph (D); and
       ``(ii) replace the approved household applications with 
     other approved household applications to be verified.
       ``(K) Feasibility study.--
       ``(i) In general.--The Secretary shall conduct a study of 
     the feasibility of using computer technology (including data 
     mining) to reduce--

       ``(I) overcertification errors in the school lunch program 
     under this Act;
       ``(II) waste, fraud, and abuse in connection with this 
     paragraph; and
       ``(III) errors, waste, fraud, and abuse in other nutrition 
     programs, as determined to be appropriate by the Secretary.

       ``(ii) Report.--Not later than 180 days 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 describing--

       ``(I) the results of the feasibility study conducted under 
     this subsection;
       ``(II) how a computer system using technology described in 
     clause (i) could be implemented;
       ``(III) a plan for implementation; and
       ``(IV) proposed legislation, if necessary, to implement the 
     system.''.

       (b) Conforming Amendments.--Section 1902(a)(7) of the 
     Social Security Act (42 U.S.C. 1396a(a)(7)) is amended--
       (1) by striking ``connected with the'' and inserting 
     ``connected with--
       ``(A) the'';
       (2) by adding ``and'' after the semicolon; and
       (3) by adding at the end the following:
       ``(B) at State option, the exchange of information 
     necessary to verify the certification of eligibility of 
     children for free or reduced price breakfasts under the Child 
     Nutrition Act of 1966 and free or reduced price lunches under 
     the Richard B. Russell National School Lunch Act, in 
     accordance with section 9(b) of that Act, using data 
     standards and formats established by the State agency;''.
       (c) Evaluation Funding.--
       (1) In general.--On October 1, 2005, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     conduct the evaluation required by section 9(b)(3)(F)(iv) of 
     the Richard B. Russell National School Lunch Act (as amended 
     by subsection (a)) $2,000,000, to remain available until 
     expended.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 106. DURATION OF ELIGIBILITY FOR FREE OR REDUCED PRICE 
                   MEALS.

       Paragraph (9) of section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C.1758(b)) (as redesignated 
     by section 104(a)(1)) is amended--
       (1) by striking ``(9) Any'' and inserting the following:
       ``(9) Eligibility for free and reduced price lunches.--
       ``(A) Free lunches.--Any'';
       (2) by striking ``Any'' in the second sentence and 
     inserting the following:
       ``(B) Reduced price lunches.--
       ``(i) In general.--Any'';
       (3) by striking ``The'' in the last sentence and inserting 
     the following:
       ``(ii) Maximum price.--The''; and
       (4) by adding at the end the following:
       ``(C) Duration.--Except as otherwise specified in paragraph 
     (3)(E), (3)(H)(ii), and section 11(a), eligibility for free 
     or reduced price meals for any school year shall remain in 
     effect--
       ``(i) beginning on the date of eligibility approval for the 
     current school year; and
       ``(ii) ending on a date during the subsequent school year 
     determined by the Secretary.''.

     SEC. 107. RUNAWAY, HOMELESS, AND MIGRANT YOUTH.

       (a) Categorical Eligibility for Free Lunches and 
     Breakfasts.--Section 9(b)(12)(A) of the Richard B. Russell 
     National School Lunch Act (as redesignated by section 
     104(a)(1) of this Act) is amended--
       (1) in clause (ii), by striking ``or'' at the end;
       (2) in clause (iii), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(iv) a homeless child or youth (defined as 1 of the 
     individuals described in section 725(2) of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a(2));
       ``(v) served by the runaway and homeless youth grant 
     program established under the Runaway and Homeless Youth Act 
     (42 U.S.C. 5701 et seq.); or
       ``(vi) a migratory child (as defined in section 1309 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6399)).''.
       (b) Documentation.--Section 9(d)(2) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1758(d)(2)) is 
     amended--
       (1) in subparagraph (B), by striking ``or'';
       (2) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (3) by inserting after subparagraph (C) the following:
       ``(D) documentation has been provided to the appropriate 
     local educational agency showing that the child meets the 
     criteria specified in clauses (iv) or (v) of subsection 
     (b)(12)(A); or
       ``(E) documentation has been provided to the appropriate 
     local educational agency showing the status of the child as a 
     migratory child (as defined in section 1309 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6399)).''.

     SEC. 108. CERTIFICATION BY LOCAL EDUCATIONAL AGENCIES.

       (a) Certification by Local Educational Agency.--Section 9 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1758) is amended--
       (1) in the second sentence of subsection (b)(11) (as 
     redesignated by section 104(a)(1)), by striking ``Local 
     school authorities'' and inserting ``Local educational 
     agencies''; and
       (2) in subsection (d)(2)--
       (A) by striking ``local school food authority'' each place 
     it appears and inserting ``local educational agency''; and
       (B) in subparagraph (A), by striking ``such authority'' and 
     inserting ``the local educational agency''.
       (b) Definition of Local Educational Agency.--Section 12(d) 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1760(d)) is amended--
       (1) by redesignating paragraph (8) as paragraph (3) and 
     moving the paragraph to appear after paragraph (2);
       (2) by redesignating paragraphs (3) through (7) (as those 
     paragraphs existed before the amendment made by paragraph 
     (1)) as paragraphs (5) through (9), respectively; and
       (3) by inserting after paragraph (3) (as redesignated by 
     paragraph (1)) the following:
       ``(4) Local educational agency.--
       ``(A) In general.--The term `local educational agency' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       ``(B) Inclusion.--The term `local educational agency' 
     includes, in the case of a private nonprofit school, an 
     appropriate entity determined by the Secretary.''.
       (c) School Breakfast Program.--Section 4(b)(1)(E)) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(E)) is 
     amended by striking ``school food authority'' each place it 
     appears and inserting ``local educational agency''.

     SEC. 109. EXCLUSION OF MILITARY HOUSING ALLOWANCES.

       Section 9(b) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(b)) (as amended by section 
     104(a)(1)) is amended in paragraph (13) by striking ``For 
     each of fiscal years 2002 and 2003 and through June 30, 2004, 
     the'' and inserting ``The''.

     SEC. 110. WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR 
                   NUTRIENT ANALYSIS.

       Section 9(f)(5) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(f)(5)) is amended by striking 
     ``September 30, 2003'' and inserting ``September 30, 2009''.

[[Page S7254]]

     SEC. 111. FOOD SAFETY.

       Section 9(h) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(h)) is amended--
       (1) in the subsection heading, by striking ``Inspections'';
       (2) in paragraph (1)--
       (A) by striking ``Except as provided in paragraph (2), a'' 
     and inserting ``A'';
       (B) by striking ``shall, at least once'' and inserting: 
     ``shall--
       ``(A) at least twice'';
       (C) by striking the period at the end and inserting a 
     semicolon; and
       (D) by adding at the end the following:
       ``(B) post in a publicly visible location a report on the 
     most recent inspection conducted under subparagraph (A); and
       ``(C) on request, provide a copy of the report to a member 
     of the public.''; and
       (3) by striking paragraph (2) and inserting the following:
       ``(2) State and local government inspections.--Nothing in 
     paragraph (1) prevents any State or local government from 
     adopting or enforcing any requirement for more frequent food 
     safety inspections of schools.
       ``(3) Audits and reports by states.--For each of fiscal 
     years 2006 through 2009, each State shall annually--
       ``(A) audit food safety inspections of schools conducted 
     under paragraphs (1) and (2); and
       ``(B) submit to the Secretary a report of the results of 
     the audit.
       ``(4) Audit by the secretary.--For each of fiscal years 
     2006 through 2009, the Secretary shall annually audit State 
     reports of food safety inspections of schools submitted under 
     paragraph (3).
       ``(5) School food safety program.--Each school food 
     authority shall implement a school food safety program, in 
     the preparation and service of each meal served to children, 
     that complies with any hazard analysis and critical control 
     point system established by the Secretary.''.

     SEC. 112. PURCHASES OF LOCALLY PRODUCED FOODS.

       Section 9(j)(2)(A) of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1758(j)(2)(A)) is amended by 
     striking ``2007'' and inserting ``2009''.

     SEC. 113. SPECIAL ASSISTANCE.

       Section 11(a)(1) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by inserting 
     ``or school district'' after ``school'' each place it appears 
     in subparagraphs (C) through (E) (other than as part of 
     ``school year'', ``school years'', ``school lunch'', ``school 
     breakfast'', and ``4-school-year period'').

     SEC. 114. FOOD AND NUTRITION PROJECTS INTEGRATED WITH 
                   ELEMENTARY SCHOOL CURRICULA.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) is amended by striking subsection (m).

     SEC. 115. PROCUREMENT TRAINING.

       Section 12 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1760) (as amended by section 114) is amended 
     by inserting after subsection (l) the following:
       ``(m) Procurement Training.--
       ``(1) In general.--Subject to the availability of funds 
     made available under paragraph (4), the Secretary shall 
     provide technical assistance and training to States, State 
     agencies, schools, and school food authorities in the 
     procurement of goods and services 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)).
       ``(2) Buy american training.--Activities carried out under 
     paragraph (1) shall include technical assistance and training 
     to ensure compliance with subsection (n).
       ``(3) Procuring safe foods.--Activities carried out under 
     paragraph (1) shall include technical assistance and training 
     on procuring safe foods, including the use of model 
     specifications for procuring safe foods.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $1,000,000 
     for each of fiscal years 2005 through 2009, to remain 
     available until expended.''.

     SEC. 116. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

       (a) Seamless Summer Option.--Section 13(a) of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1761(a)) is 
     amended by adding at the end the following:
       ``(8) Seamless summer option.--Except as otherwise 
     determined by the Secretary, a service institution that is a 
     public or private nonprofit school food authority may provide 
     summer or school vacation food service in accordance with 
     applicable provisions of law governing the school lunch 
     program established under this Act or the school breakfast 
     program established under the Child Nutrition Act of 1966 (42 
     U.S.C. 1771 et seq.).''.
       (b) Seamless Summer Reimbursements.--Section 13(b)(1) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1761(b)(1)) is amended by adding at the end the following:
       ``(D) Seamless summer reimbursements.--A service 
     institution described in subsection (a)(8) shall be 
     reimbursed for meals and meal supplements in accordance with 
     the applicable provisions under this Act (other than 
     subparagraphs (A), (B), and (C) of this paragraph and 
     paragraph (4)) and the Child Nutrition Act of 1966 (42 U.S.C. 
     1771 et seq.), as determined by the Secretary.''.
       (c) Summer Food Service Eligibility Criteria.--Section 
     13(a) of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1761(a)) (as amended by subsection (a)) is amended by 
     adding at the end the following--
       ``(9) Exemption.--
       ``(A) In general.--For each of calendar years 2005 and 2006 
     in rural areas of the State of Pennsylvania (as determined by 
     the Secretary), the threshold for determining `areas in which 
     poor economic conditions exist' under paragraph (1)(C) shall 
     be 40 percent.
       ``(B) Evaluation.--
       ``(i) In general.--The Secretary, acting through the 
     Administrator of the Food and Nutrition Service, shall 
     evaluate the impact of the eligibility criteria described in 
     subparagraph (A) as compared to the eligibility criteria 
     described in paragraph (1)(C).
       ``(ii) Impact.--The evaluation shall assess the impact of 
     the threshold in subparagraph (A) on--

       ``(I) the number of sponsors offering meals through the 
     summer food service program;
       ``(II) the number of sites offering meals through the 
     summer food service program;
       ``(III) the geographic location of the sites;
       ``(IV) services provided to eligible children; and
       ``(V) other factors determined by the Secretary.

       ``(iii) Report.--Not later than January 1, 2008, 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 under this 
     subparagraph.
       ``(iv) Funding.--

       ``(I) In general.--On January 1, 2005, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     carry out this subparagraph $400,000, to remain available 
     until expended.
       ``(II) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subparagraph the funds transferred under subclause (I), 
     without further appropriation.''.

       (d) Summer Food Service Rural Transportation.--Section 
     13(a) of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1761(a)) (as amended by subsection (c)) is amended by 
     adding at the end the following:
       ``(10) Summer food service rural transportation.--
       ``(A) In general.--The Secretary shall provide grants, 
     through not more than 5 eligible State agencies selected by 
     the Secretary, to not more than 60 eligible service 
     institutions selected by the Secretary to increase 
     participation at congregate feeding sites in the summer food 
     service program for children authorized by this section 
     through innovative approaches to limited transportation in 
     rural areas.
       ``(B) Eligibility.--To be eligible to receive a grant under 
     this paragraph--
       ``(i) a State agency shall submit an application to the 
     Secretary, in such manner as the Secretary shall establish, 
     and meet criteria established by the Secretary; and
       ``(ii) a service institution shall agree to the terms and 
     conditions of the grant, as established by the Secretary.
       ``(C) Duration.--A service institution that receives a 
     grant under this paragraph may use the grant funds during the 
     3-fiscal year period beginning in fiscal year 2005.
       ``(D) Reports.--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--
       ``(i) not later than January 1, 2007, an interim report 
     that describes--

       ``(I) the use of funds made available under this paragraph; 
     and
       ``(II) any progress made by using funds from each grant 
     provided under this paragraph; and

       ``(ii) not later than January 1, 2008, a final report that 
     describes--

       ``(I) the use of funds made available under this paragraph;
       ``(II) any progress made by using funds from each grant 
     provided under this paragraph;
       ``(III) the impact of this paragraph on participation in 
     the summer food service program for children authorized by 
     this section; and
       ``(IV) any recommendations by the Secretary concerning the 
     activities of the service institutions receiving grants under 
     this paragraph.

       ``(E) Funding.--
       ``(i) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture to carry out this 
     paragraph--

       ``(I) on October 1, 2005, $2,000,000; and
       ``(II) on October 1, 2006, and October 1, 2007, $1,000,000.

       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this paragraph the funds transferred under clause (i), 
     without further appropriation.
       ``(iii) Availability of funds.--Funds transferred under 
     clause (i) shall remain available until expended.
       ``(iv) Reallocation.--The Secretary may reallocate any 
     amounts made available to carry out this paragraph that are 
     not obligated or expended, as determined by the Secretary.''.
       (e) Reauthorization.--Section 13(q) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1761(q)) is 
     amended by striking

[[Page S7255]]

     ``June 30, 2004'' and inserting ``September 30, 2009''.
       (f) Simplified Summer Food Programs.--
       (1) Definition of eligible state.--Section 18(f) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1769(f)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means--
       ``(A) a State participating in the program under this 
     subsection as of May 1, 2004; and
       ``(B) a State in which (based on data available in April 
     2004)--
       ``(i) the percentage obtained by dividing--

       ``(I) the sum of--

       ``(aa) the average daily number of children attending the 
     summer food service program in the State in July 2003; and
       ``(bb) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in the 
     State in July 2003; by

       ``(II) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in the 
     State in March 2003; is less than

       ``(ii) 66.67 percent of the percentage obtained by 
     dividing--

       ``(I) the sum of--

       ``(aa) the average daily number of children attending the 
     summer food service program in all States in July 2003; and
       ``(bb) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in all 
     States in July 2003; by

       ``(II) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in all 
     States in March 2003.''.

       (2) Duration.--Section 18(f)(2) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769(f)(2)) is amended 
     by striking ``During the period beginning October 1, 2000, 
     and ending June 30, 2004, the'' and inserting ``The''.
       (3) Private nonprofit organizations.--Section 18(f)(3) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1769(f)(3)) is amended in subparagraphs (A) and (B) by 
     striking ``(other than a service institution described in 
     section 13(a)(7))'' both places it appears.
       (4) Report.--Section 18(f) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769(f)) is amended by 
     striking paragraph (6) and inserting the following:
       ``(6) Report.--Not later than April 30, 2007, 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 
     that includes--
       ``(A) the evaluations completed by the Secretary under 
     paragraph (5); and
       ``(B) any recommendations of the Secretary concerning the 
     programs.''.
       (5) Conforming amendments.--Section 18(f) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1769(f)) is 
     amended--
       (A) by striking the subsection heading and inserting the 
     following:
       ``(f) Simplified Summer Food Programs.--'';

       (B) in paragraph (2)--
       (i) by striking the paragraph heading and inserting the 
     following:
       ``(2) Programs.--''; and
       (ii) by striking ``pilot project'' and inserting 
     ``program'';
       (C) in subparagraph (A) and (B) of paragraph (3), by 
     striking ``pilot project'' both places it appears and 
     inserting ``program''; and
       (D) in paragraph (5)--
       (i) in the paragraph heading by striking ``pilot projects'' 
     and inserting ``programs''; and
       (ii) by striking ``pilot project'' each place it appears 
     and inserting ``program''.

     SEC. 117. COMMODITY DISTRIBUTION PROGRAM.

       Section 14(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1762a(a)) is amended by striking ``, 
     during the period beginning July 1, 1974, and ending June 30, 
     2004,''.

     SEC. 118. NOTICE OF IRRADIATED FOOD PRODUCTS.

       Section 14 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1762a) is amended by adding at the end the 
     following:
       ``(h) Notice of Irradiated Food Products.--
       ``(1) In general.--The Secretary shall develop a policy and 
     establish procedures for the purchase and distribution of 
     irradiated food products in school meals programs under this 
     Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.).
       ``(2) Minimum requirements.--The policy and procedures 
     shall ensure, at a minimum, that--
       ``(A) irradiated food products are made available only at 
     the request of States and school food authorities;
       ``(B) reimbursements to schools for irradiated food 
     products are equal to reimbursements to schools for food 
     products that are not irradiated;
       ``(C) States and school food authorities are provided 
     factual information on the science and evidence regarding 
     irradiation technology, including--
       ``(i) notice that irradiation is not a substitute for safe 
     food handling techniques; and
       ``(ii) any other similar information determined by the 
     Secretary to be necessary to promote food safety in school 
     meals programs;
       ``(D) States and school food authorities are provided model 
     procedures for providing to school food authorities, parents, 
     and students--
       ``(i) factual information on the science and evidence 
     regarding irradiation technology; and
       ``(ii) any other similar information determined by the 
     Secretary to be necessary to promote food safety in school 
     meals;
       ``(E) irradiated food products distributed to the Federal 
     school meals program under this Act and the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.) are labeled with a 
     symbol or other printed notice that--
       ``(i) indicates that the product was irradiated; and
       ``(ii) is prominently displayed in a clear and 
     understandable format on the container;
       ``(F) irradiated food products are not commingled in 
     containers with food products that are not irradiated; and
       ``(G) schools that offer irradiated food products are 
     encouraged to offer alternatives to irradiated food products 
     as part of the meal plan used by the schools.''.

     SEC. 119. CHILD AND ADULT CARE FOOD PROGRAM.

       (a) Definition of Institution.--
       (1) In general.--Section 17(a)(2)(B)(i) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 
     1766(a)(2)(B)(i)) is amended by striking ``during'' and all 
     that follows through ``2004,''.
       (2) Conforming amendment.--Section 17 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766) is amended 
     by striking subsection (p).
       (b) Duration of Determination as Tier I Family or Group Day 
     Care Home.--Section 17(f)(3)(E)(iii) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 
     1766(f)(3)(E)(iii)) is amended by striking ``3 years'' and 
     inserting ``5 years''.
       (c) Audits.--Section 17(i) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(i)) is amended by 
     striking ``(i) The'' and inserting the following:
       ``(i) Audits.--
       ``(1) Disregards.--
       ``(A) In general.--Subject to subparagraph (B), in 
     conducting management evaluations, reviews, or audits under 
     this section, the Secretary or a State agency may disregard 
     any overpayment to an institution for a fiscal year if the 
     total overpayment to the institution for the fiscal year does 
     not exceed an amount that is consistent with the disregards 
     allowed in other programs under this Act and recognizes the 
     cost of collecting small claims, as determined by the 
     Secretary.
       ``(B) Criminal or fraud violations.--In carrying out this 
     paragraph, the Secretary and a State agency shall not 
     disregard any overpayment for which there is evidence of a 
     violation of a criminal law or civil fraud law.
       ``(2) Funding.--The''.
       (d) Duration of Agreements.--Section 17(j) of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1766(j)) is 
     amended--
       (1) by striking ``(j) The'' and inserting the following:
       ``(j) Agreements.--
       ``(1) In general.--The''; and
       (2) by adding at the end the following:
       ``(2) Duration.--An agreement under paragraph (1) shall 
     remain in effect until terminated by either party to the 
     agreement.''.
       (e) Rural Area Eligibility Determination for Day Care 
     Homes.--Section 17 of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766) (as amended by subsection (a)(2)) 
     is amended by inserting after subsection (o) the following:
       ``(p) Rural Area Eligibility Determination for Day Care 
     Homes.--
       ``(1) Definition of selected tier i family or group day 
     care home.--In this subsection, the term `selected tier I 
     family or group day care home' means a family or group day 
     home that meets the definition of tier I family or group day 
     care home under subclause (I) of subsection (f)(3)(A)(ii) 
     except that items (aa) and (bb) of that subclause shall be 
     applied by substituting `40 percent' for `50 percent'.
       ``(2) Eligibility.--For each of fiscal years 2006 and 2007, 
     in rural areas of the State of Nebraska (as determined by the 
     Secretary), the Secretary shall provide reimbursement to 
     selected tier I family or group day care homes (as defined in 
     paragraph (1)) under subsection (f)(3) in the same manner as 
     tier I family or group day care homes (as defined in 
     subsection (f)(3)(A)(ii)(I)).
       ``(3) Evaluation.--
       ``(A) In general.--The Secretary, acting through the 
     Administrator of the Food and Nutrition Service, shall 
     evaluate the impact of the eligibility criteria described in 
     paragraph (2) as compared to the eligibility criteria 
     described in subsection (f)(3)(A)(ii)(I).
       ``(B) Impact.--The evaluation shall assess the impact of 
     the change in eligibility requirements on--
       ``(i) the number of family or group day care homes offering 
     meals under this section;
       ``(ii) the number of family or group day care homes 
     offering meals under this section that are defined as tier I 
     family or group day care homes as a result of paragraph (1) 
     that otherwise would be defined as tier II family or group 
     day care homes under subsection (f)(3)(A)(iii);
       ``(iii) the geographic location of the family or group day 
     care homes;
       ``(iv) services provided to eligible children; and
       ``(v) other factors determined by the Secretary.

[[Page S7256]]

       ``(C) Report.--Not later than March 31, 2008, 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 under this 
     subsection.
       ``(D) Funding.--
       ``(i) In general.--On October 1, 2005, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     carry out this paragraph $400,000, to remain available until 
     expended.
       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this paragraph the funds transferred under clause (i), 
     without further appropriation.''.
       (f) Management Support.--Section 17(q)(3) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(q)(3)) is 
     amended by striking ``1999 through 2003'' and inserting 
     ``2005 and 2006''.
       (g) Age Limits.--Section 17(t)(5)(A)(i) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(t)(5)(A)(i) 
     is amended--
       (1) in subclause (I)--
       (A) by striking ``12'' and inserting ``18''; and
       (B) by inserting ``or'' after the semicolon;
       (2) by striking subclause (II); and
       (3) by redesignating subclause (III) as subclause (II).
       (h) Technical Amendments.--Section 17 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766) is 
     amended--
       (1) in subsection (a)(6)(B), by inserting ``and adult'' 
     after ``child''; and
       (2) in subsection (t)(3), by striking ``subsection (a)(1)'' 
     and inserting ``subsection (a)(5)''.
       (i) Paperwork Reduction.--The Secretary of Agriculture, in 
     conjunction with States and participating institutions, shall 
     examine the feasibility of reducing paperwork resulting from 
     regulations and recordkeeping requirements for State 
     agencies, family child care homes, child care centers, and 
     sponsoring organizations participating in the child and adult 
     care food program established under section 17 of the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1766).
       (j) Early Child Nutrition Education.--
       (1) In general.--Subject to the availability of funds made 
     available under paragraph (6), for a period of 4 successive 
     years, the Secretary of Agriculture shall award to 1 or more 
     entities with expertise in designing and implementing health 
     education programs for limited-English-proficient individuals 
     1 or more grants to enhance obesity prevention activities for 
     child care centers and sponsoring organizations providing 
     services to limited-English-proficient individuals through 
     the child and adult care food program under section 17 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1766) 
     in each of 4 States selected by the Secretary in accordance 
     with paragraph (2).
       (2) States.--The Secretary shall provide grants under this 
     subsection in States that have experienced a growth in the 
     limited-English-proficient population of the States of at 
     least 100 percent between the years 1990 and 2000, as 
     measured by the census.
       (3) Required activities.--Activities carried out under 
     paragraph (1) shall include--
       (A) developing an interactive and comprehensive tool kit 
     for use by lay health educators and training activities;
       (B) conducting training and providing ongoing technical 
     assistance for lay health educators; and
       (C) establishing collaborations with child care centers and 
     sponsoring organizations participating in the child and adult 
     care food program under section 17 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766) to--
       (i) identify limited-English-proficient children and 
     families; and
       (ii) enhance the capacity of the child care centers and 
     sponsoring organizations to use appropriate obesity 
     prevention strategies.
       (4) Evaluation.--Each grant recipient shall identify an 
     institution of higher education to conduct an independent 
     evaluation of the effectiveness of the grant.
       (5) 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 and 
     the Committee on Health, Education, Labor, and Pensions, of 
     the Senate a report that includes--
       (A) the evaluation completed by the institution of higher 
     education under paragraph (4);
       (B) the effectiveness of lay health educators in reducing 
     childhood obesity; and
       (C) any recommendations of the Secretary concerning the 
     grants.
       (6) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection $250,000 for 
     each of fiscal years 2005 through 2009.

     SEC. 120. FRESH FRUIT AND VEGETABLE PROGRAM.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended by striking subsection (g) 
     and inserting the following:
       ``(g) Fresh Fruit and Vegetable Program.--
       ``(1) In general.--For the school year beginning July 2004 
     and each subsequent school year, the Secretary shall carry 
     out a program to make free fresh fruits and vegetables 
     available, to the maximum extent practicable, to--
       ``(A) 25 elementary or secondary schools in each of the 4 
     States authorized to participate in the program under this 
     subsection on May 1, 2004;
       ``(B) 25 elementary or secondary schools (as selected by 
     the Secretary in accordance with paragraph (3)) in each of 4 
     States (including a State for which funds were allocated 
     under the program described in paragraph (3)(B)(ii)) that are 
     not participating in the program under this subsection on May 
     1, 2004; and
       ``(C) 25 elementary or secondary schools operated on 3 
     Indian reservations (including the reservation authorized to 
     participate in the program under this subsection on May 1, 
     2004), as selected by the Secretary.
       ``(2) Program.--A school participating in the program shall 
     make free fresh fruits and vegetables available to students 
     throughout the school day in 1 or more areas designated by 
     the school.
       ``(3) Selection of schools.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in selecting additional schools to participate in the program 
     under paragraph (1)(B), the Secretary shall--
       ``(i) to the maximum extent practicable, ensure that the 
     majority of schools selected are those in which not less than 
     50 percent of students are eligible for free or reduced price 
     meals under this Act;
       ``(ii) solicit applications from interested schools that 
     include--

       ``(I) information pertaining to the percentage of students 
     enrolled in the school submitting the application who are 
     eligible for free or reduced price school lunches under this 
     Act;
       ``(II) a certification of support for participation in the 
     program signed by the school food manager, the school 
     principal, and the district superintendent (or equivalent 
     positions, as determined by the school); and
       ``(III) such other information as may be requested by the 
     Secretary;

       ``(iii) for each application received, determine whether 
     the application is from a school in which not less than 50 
     percent of students are eligible for free or reduced price 
     meals under this Act; and
       ``(iv) give priority to schools that submit a plan for 
     implementation of the program that includes a partnership 
     with 1 or more entities that provide non-Federal resources 
     (including entities representing the fruit and vegetable 
     industry) for--

       ``(I) the acquisition, handling, promotion, or distribution 
     of fresh and dried fruits and fresh vegetables; or
       ``(II) other support that contributes to the purposes of 
     the program.

       ``(B) Nonapplicability to existing participants.--
     Subparagraph (A) shall not apply to a school, State, or 
     Indian reservation authorized--
       ``(i) to participate in the program on May 1, 2004; or
       ``(ii) to receive funding for free fruits and vegetables 
     under funds provided for public health improvement under the 
     heading `disease control, research, and training' under the 
     heading `Centers for Disease Control and Prevention' in title 
     II of the Departments of Labor, Health and Human Services, 
     and Education, and Related Agencies Appropriations Act, 2004 
     (Division E of Public Law 108-199; 118 Stat. 238).
       ``(4) Notice of availability.--To be eligible to 
     participate in the program under this subsection, a school 
     shall widely publicize within the school the availability of 
     free fresh fruits and vegetables under the program.
       ``(5) Reports.--
       ``(A) Interim reports.--Not later than September 30 of each 
     of fiscal years 2005 through 2008, the Secretary, acting 
     through the Administrator of the Food and Nutrition Service, 
     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 an interim 
     report that describes the activities carried out under this 
     subsection during the fiscal year covered by the report.
       ``(B) Final report.--Not later than December 31, 2008, the 
     Secretary, acting through the Administrator of the Food and 
     Nutrition Service, 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 final report that describes the results of the 
     program under this subsection.
       ``(6) Funding.--
       ``(A) Existing funds.--The Secretary shall use to carry out 
     this subsection any funds that remain under this subsection 
     on the day before the date of enactment of this subparagraph.
       ``(B) Mandatory funds.--
       ``(i) In general.--On October 1, 2004, and on each October 
     1 thereafter, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture to carry out this subsection 
     $9,000,000, to remain available until expended.
       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds made available under this 
     subparagraph, without further appropriation.
       ``(C) Authorization of appropriations.--In addition to any 
     amounts made available under subparagraphs (A) and (B), there 
     are authorized to be appropriated such sums as

[[Page S7257]]

     are necessary to expand the program carried out under this 
     subsection.
       ``(D) Reallocation.--The Secretary may reallocate any 
     amounts made available to carry out this subsection that are 
     not obligated or expended, as determined by the Secretary.''.

     SEC. 121. SUMMER FOOD SERVICE RESIDENTIAL CAMP ELIGIBILITY.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended by adding at the end the 
     following:
       ``(h) Summer Food Service Residential Camp Eligibility.--
       ``(1) In general.--During the month after the date of 
     enactment of this subsection through September, 2004, and the 
     months of May through September, 2005, the Secretary shall 
     modify eligibility criteria, at not more than 1 private 
     nonprofit residential camp in each of not more than 2 States, 
     as determined by the Secretary, for the purpose of 
     identifying and evaluating alternative methods of determining 
     the eligibility of residential private nonprofit camps to 
     participate in the summer food service program for children 
     established under section 13.
       ``(2) Eligibility.--To be eligible for the criteria 
     modified under paragraph (1), a residential camp--
       ``(A) shall be a service institution (as defined in section 
     13(a)(1));
       ``(B) may not charge a fee to any child in residence at the 
     camp; and
       ``(C) shall serve children who reside in an area in which 
     poor economic conditions exist (as defined in section 
     13(a)(1)).
       ``(3) Payments.--
       ``(A) In general.--Under this subsection, the Secretary 
     shall provide reimbursement for meals served to all children 
     at a residential camp at the payment rates specified in 
     section 13(b)(1).
       ``(B) Reimbursable meals.--A residential camp selected by 
     the Secretary may receive reimbursement for not more than 3 
     meals, or 2 meals and 1 supplement, during each day of 
     operation.
       ``(4) Evaluation.--
       ``(A) Information from residential camps.--Not later than 
     December 31, 2005, a residential camp selected under 
     paragraph (1) shall report to the Secretary such information 
     as is required by the Secretary concerning the requirements 
     of this subsection.
       ``(B) Report to congress.--Not later than March 31, 2006, 
     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 that evaluates the effect of this subsection 
     on program participation and other factors, as determined by 
     the Secretary.''.

     SEC. 122. ACCESS TO LOCAL FOODS AND SCHOOL GARDENS.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) (as amended by section 121) is amended 
     by adding at the end the following:
       ``(i) Access to Local Foods and School Gardens.--
       ``(1) In general.--The Secretary may provide assistance, 
     through competitive matching grants and technical assistance, 
     to schools and nonprofit entities for projects that--
       ``(A) improve access to local foods in schools and 
     institutions participating in programs under this Act and 
     section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) 
     through farm-to-cafeteria activities, including school 
     gardens, that may include the acquisition of food and 
     appropriate equipment and the provision of training and 
     education;
       ``(B) are, at a minimum, designed to--
       ``(i) procure local foods from small- and medium-sized 
     farms for school meals; and
       ``(ii) support school garden programs;
       ``(C) support nutrition education activities or curriculum 
     planning that incorporates the participation of school 
     children in farm-based agricultural education activities, 
     that may include school gardens;
       ``(D) develop a sustained commitment to farm-to-cafeteria 
     projects in the community by linking schools, State 
     departments of agriculture, agricultural producers, parents, 
     and other community stakeholders;
       ``(E) require $100,000 or less in Federal contributions;
       ``(F) require a Federal share of costs not to exceed 75 
     percent;
       ``(G) provide matching support in the form of cash or in-
     kind contributions (including facilities, equipment, or 
     services provided by State and local governments and private 
     sources); and
       ``(H) cooperate in an evaluation carried out by the 
     Secretary.
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection for each of fiscal years 2004 
     through 2009.''.

     SEC. 123. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) (as amended by section 122) is amended 
     by adding at the end the following:
       ``(j) Year-Round Services for Eligible Entities.--
       ``(1) In general.--A service institution that is described 
     in section 13(a)(6) (excluding a public school), or a private 
     nonprofit organization described in section 13(a)(7), and 
     that is located in the State of California may be 
     reimbursed--
       ``(A) for up to 2 meals during each day of operation 
     served--
       ``(i) during the months of May through September;
       ``(ii) in the case of a service institution that operates a 
     food service program for children on school vacation, at 
     anytime under a continuous school calendar; and
       ``(iii) in the case of a service institution that provides 
     meal service at a nonschool site to children who are not in 
     school for a period during the school year due to a natural 
     disaster, building repair, court order, or similar case, at 
     anytime during such a period; and
       ``(B) for a snack served during each day of operation after 
     school hours, weekends, and school holidays during the 
     regular school calendar.
       ``(2) Payments.--The service institution shall be 
     reimbursed consistent with section 13(b)(1).
       ``(3) Administration.--To receive reimbursement under this 
     subsection, a service institution shall comply with section 
     13, other than subsections (b)(2) and (c)(1) of that section.
       ``(4) Evaluation.--Not later than September 30, 2007, the 
     State agency shall submit to the Secretary a report on the 
     effect of this subsection on participation in the summer food 
     service program for children established under section 13.
       ``(5) Funding.--The Secretary shall provide to the State of 
     California such sums as are necessary to carry out this 
     subsection for each of fiscal years 2005 through 2009.''.

     SEC. 124. FREE LUNCH AND BREAKFAST ELIGIBILITY.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) (as amended by section 123) is amended 
     by adding at the end the following:
       ``(k) Free Lunch and Breakfast Eligibility.--
       ``(1) In general.--Subject to the availability of funds 
     under paragraph (4), the Secretary shall expand the service 
     of free lunches and breakfasts provided at schools 
     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) in all or part of 5 
     States selected by the Secretary (of which at least 1 shall 
     be a largely rural State with a significant Native American 
     population).
       ``(2) Income eligibility.--The income guidelines for 
     determining eligibility for free lunches or breakfasts under 
     this subsection shall be 185 percent of the applicable family 
     size income levels contained in the nonfarm income poverty 
     guidelines prescribed by the Office of Management and Budget, 
     as adjusted annually in accordance with section 9(b)(1)(B).
       ``(3) Evaluation.--
       ``(A) In general.--Not later than 3 years after the 
     implementation of this subsection, the Secretary shall 
     conduct an evaluation to assess the impact of the changed 
     income eligibility guidelines by comparing the school food 
     authorities operating under this subsection to school food 
     authorities not operating under this subsection.
       ``(B) Impact assessment.--
       ``(i) Children.--The evaluation shall assess the impact of 
     this subsection separately on--

       ``(I) children in households with incomes less than 130 
     percent of the applicable family income levels contained in 
     the nonfarm poverty income guidelines prescribed by the 
     Office of Management and Budget, as adjusted annually in 
     accordance with section 9(b)(1)(B); and
       ``(II) children in households with incomes greater than 130 
     percent and not greater than 185 percent of the applicable 
     family income levels contained in the nonfarm poverty income 
     guidelines prescribed by the Office of Management and Budget, 
     as adjusted annually in accordance with section 9(b)(1)(B).

       ``(ii) Factors.--The evaluation shall assess the impact of 
     this subsection on--

       ``(I) certification and participation rates in the school 
     lunch and breakfast programs;
       ``(II) rates of lunch- and breakfast-skipping;
       ``(III) academic achievement;
       ``(IV) the allocation of funds authorized in title I of the 
     Elementary and Secondary Education Act (20 U.S.C. 6301) to 
     local educational agencies and public schools; and
       ``(V) other factors determined by the Secretary.

       ``(C) Cost assessment.--The evaluation shall assess the 
     increased costs associated with providing additional free, 
     reduced price, or paid meals in the school food authorities 
     operating under this subsection.
       ``(D) Report.--On completion of 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 under this 
     paragraph.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection, to remain available until 
     expended.''.

     SEC. 125. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
                   MANAGEMENT INSTITUTE.

       (a) In General.--Section 21(a)(1) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769b-1(a)(1)) is 
     amended by striking ``activities and'' and all that follows 
     and inserting ``activities and provide--
       ``(A) training and technical assistance to improve the 
     skills of individuals employed in--

[[Page S7258]]

       ``(i) food service programs carried out with assistance 
     under this Act and, to the maximum extent practicable, using 
     individuals who administer exemplary local food service 
     programs in the State;
       ``(ii) school breakfast programs carried out with 
     assistance under section 4 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1773); and
       ``(iii) as appropriate, other federally assisted feeding 
     programs; and
       ``(B) assistance, on a competitive basis, to State agencies 
     for the purpose of aiding schools and school food authorities 
     with at least 50 percent of enrolled children certified to 
     receive free or reduced price meals (and, if there are any 
     remaining funds, other schools and school food authorities) 
     in meeting the cost of acquiring or upgrading technology and 
     information management systems for use in food service 
     programs carried out under this Act and section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773), if the school 
     or school food authority submits to the State agency an 
     infrastructure development plan that--
       ``(i) addresses the cost savings and improvements in 
     program integrity and operations that would result from the 
     use of new or upgraded technology;
       ``(ii) ensures that there is not any overt identification 
     of any child by special tokens or tickets, announced or 
     published list of names, or by any other means;
       ``(iii) provides for processing and verifying applications 
     for free and reduced price school meals;
       ``(iv) integrates menu planning, production, and serving 
     data to monitor compliance with section 9(f)(1); and
       ``(v) establishes compatibility with statewide reporting 
     systems;
       ``(C) assistance, on a competitive basis, to State agencies 
     with low proportions of schools or students that--
       ``(i) participate in the school breakfast program under 
     section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773); and
       ``(ii) demonstrate the greatest need, for the purpose of 
     aiding schools in meeting costs associated with initiating or 
     expanding a school breakfast program under section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773), including 
     outreach and informational activities; and''.
       (b) Duties of Food Service Management Institute.--Section 
     21(c)(2)(B) of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769b-1(c)(2)(B)) is amended--
       (1) by striking clauses (vi) and (vii) and inserting the 
     following:
       ``(vi) safety, including food handling, hazard analysis and 
     critical control point plan implementation, emergency 
     readiness, responding to a food recall, and food biosecurity 
     training;''; and
       (2) by redesignating clauses (viii) through (x) as clauses 
     (vii) through (ix), respectively.
       (c) Authorization of Appropriations.--
       (1) Training activities and technical assistance.--Section 
     21(e)(1) of the Richard B. Russell National School Lunch Act 
     (42 U.S.C. 1769b-1(e)(1)) is amended by striking ``2003'' and 
     inserting ``2009''.
       (2) Food service management institute.--Section 21(e)(2)(A) 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1769b-1(e)(2)(A) is amended in the first sentence--
       (A) by striking ``provide to the Secretary'' and all that 
     follows through ``1998, and'' and inserting ``provide to the 
     Secretary''; and
       (B) by striking ``1999 and'' and inserting ``2004 and 
     $4,000,000 for fiscal year 2005''.

     SEC. 126. ADMINISTRATIVE ERROR REDUCTION.

       (a) Federal Support for Training and Technical 
     Assistance.--Section 21 of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1769b-1) is amended by adding at 
     the end the following:
       ``(f) Administrative Training and Technical Assistance 
     Material.--In collaboration with State educational agencies, 
     local educational agencies, and school food authorities of 
     varying sizes, the Secretary shall develop and distribute 
     training and technical assistance material relating to the 
     administration of school meals programs that are 
     representative of the best management and administrative 
     practices.
       ``(g) Federal Administrative Support.--
       ``(1) Funding.--
       ``(A) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture to carry out this 
     subsection--
       ``(i) on October 1, 2004, and October 1, 2005, $3,000,000; 
     and
       ``(ii) on October 1, 2006, October 1, 2007, and October 1, 
     2008, $2,000,000.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(C) Availability of funds.--Funds transferred under 
     subparagraph (A) shall remain available until expended.
       ``(2) Use of funds.--The Secretary may use funds provided 
     under this subsection--
       ``(A) to provide training and technical assistance and 
     material related to improving program integrity and 
     administrative accuracy in school meals programs; and
       ``(B) to assist State educational agencies in reviewing the 
     administrative practices of local educational agencies, to 
     the extent determined by the Secretary.''.
       (b) Selected Administrative Reviews.--
       (1) In general.--Section 22(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769c(b)) is amended by 
     adding at the end the following:
       ``(3) Additional review requirement for selected local 
     educational agencies.--
       ``(A) Definition of selected local educational agencies.--
     In this paragraph, the term `selected local educational 
     agency' means a local educational agency that has a 
     demonstrated high level of, or a high risk for, 
     administrative error, as determined by the Secretary.
       ``(B) Additional administrative review.--In addition to any 
     review required by subsection (a) or paragraph (1), each 
     State educational agency shall conduct an administrative 
     review of each selected local educational agency during the 
     review cycle established under subsection (a).
       ``(C) Scope of review.--In carrying out a review under 
     subparagraph (B), a State educational agency shall only 
     review the administrative processes of a selected local 
     educational agency, including application, certification, 
     verification, meal counting, and meal claiming procedures.
       ``(D) Results of review.--If the State educational agency 
     determines (on the basis of a review conducted under 
     subparagraph (B)) that a selected local educational agency 
     fails to meet performance criteria established by the 
     Secretary, the State educational agency shall--
       ``(i) require the selected local educational agency to 
     develop and carry out an approved plan of corrective action;
       ``(ii) except to the extent technical assistance is 
     provided directly by the Secretary, provide technical 
     assistance to assist the selected local educational agency in 
     carrying out the corrective action plan; and
       ``(iii) conduct a followup review of the selected local 
     educational agency under standards established by the 
     Secretary.
       ``(4) Retaining funds after administrative reviews.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), if 
     the local educational agency fails to meet administrative 
     performance criteria established by the Secretary in both an 
     initial review and a followup review under paragraph (1) or 
     (3) or subsection (a), the Secretary may require the State 
     educational agency to retain funds that would otherwise be 
     paid to the local educational agency for school meals 
     programs under procedures prescribed by the Secretary.
       ``(B) Amount.--The amount of funds retained under 
     subparagraph (A) shall equal the value of any overpayment 
     made to the local educational agency or school food authority 
     as a result of an erroneous claim during the time period 
     described in subparagraph (C).
       ``(C) Time period.--The period for determining the value of 
     any overpayment under subparagraph (B) shall be the period--
       ``(i) beginning on the date the erroneous claim was made; 
     and
       ``(ii) ending on the earlier of the date the erroneous 
     claim is corrected or--

       ``(I) in the case of the first followup review conducted by 
     the State educational agency of the local educational agency 
     under this section after July 1, 2005, the date that is 60 
     days after the beginning of the period under clause (i); or
       ``(II) in the case of any subsequent followup review 
     conducted by the State educational agency of the local 
     educational agency under this section, the date that is 90 
     days after the beginning of the period under clause (i).

       ``(5) Use of retained funds.--
       ``(A) In general.--Subject to subparagraph (B), funds 
     retained under paragraph (4) shall--
       ``(i) be returned to the Secretary, and may be used--

       ``(I) to provide training and technical assistance related 
     to administrative practices designed to improve program 
     integrity and administrative accuracy in school meals 
     programs to State educational agencies and, to the extent 
     determined by the Secretary, to local educational agencies 
     and school food authorities;
       ``(II) to assist State educational agencies in reviewing 
     the administrative practices of local educational agencies in 
     carrying out school meals programs; and
       ``(III) to carry out section 21(f); or

       ``(ii) be credited to the child nutrition programs 
     appropriation account.
       ``(B) State share.--A State educational agency may retain 
     not more than 25 percent of an amount recovered under 
     paragraph (4), to carry out school meals program integrity 
     initiatives to assist local educational agencies and school 
     food authorities that have repeatedly failed, as determined 
     by the Secretary, to meet administrative performance 
     criteria.
       ``(C) Requirement.--To be eligible to retain funds under 
     subparagraph (B), a State educational agency shall--
       ``(i) submit to the Secretary a plan describing how the 
     State educational agency will use the funds to improve school 
     meals program integrity, including measures to give priority 
     to local educational agencies from which funds were retained 
     under paragraph (4);
       ``(ii) consider using individuals who administer exemplary 
     local food service programs in the provision of training and 
     technical assistance; and
       ``(iii) obtain the approval of the Secretary for the 
     plan.''.
       (2) Interpretation.--Nothing in the amendment made by 
     paragraph (1) affects the requirements for fiscal actions as 
     described in the regulations issued pursuant to

[[Page S7259]]

     section 22(a) of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769c(a)).
       (c) Training and Technical Assistance.--Section 7 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
       (1) in subsection (e)--
       (A) by striking ``(e) Each'' and inserting the following:
       ``(e) Plans for Use of Administrative Expense Funds.--
       ``(1) In general.--Each''; and
       (B) by striking ``After submitting'' and all that follows 
     through ``change in the plan.'' and inserting the following:
       ``(2) Updates and information management systems.--
       ``(A) In general.--After submitting the initial plan, a 
     State shall be required to submit to the Secretary for 
     approval only a substantive change in the plan.
       ``(B) Plan contents.--Each State plan shall, at a minimum, 
     include a description of how technology and information 
     management systems will be used to improve program integrity 
     by--
       ``(i) monitoring the nutrient content of meals served;
       ``(ii) training local educational agencies, school food 
     authorities, and schools in how to use technology and 
     information management systems (including verifying 
     eligibility for free or reduced price meals using program 
     participation or income data gathered by State or local 
     agencies); and
       ``(iii) using electronic data to establish benchmarks to 
     compare and monitor program integrity, program participation, 
     and financial data.
       ``(3) Training and technical assistance.--Each State shall 
     submit to the Secretary for approval a plan describing the 
     manner in which the State intends to implement subsection (g) 
     and section 22(b)(3) of the Richard B. Russell National 
     School Lunch Act.'';
       (2) by redesignating subsection (g) as subsection (j); and
       (3) by inserting after subsection (f) the following:
       ``(g) State Training.--
       ``(1) In general.--At least annually, each State shall 
     provide training in administrative practices (including 
     training in application, certification, verification, meal 
     counting, and meal claiming procedures) to local educational 
     agency and school food authority administrative personnel and 
     other appropriate personnel, with emphasis on the 
     requirements established by the Child Nutrition and WIC 
     Reauthorization Act of 2004 and the amendments made by that 
     Act.
       ``(2) Federal role.--The Secretary shall--
       ``(A) provide training and technical assistance to a State; 
     or
       ``(B) at the option of the Secretary, directly provide 
     training and technical assistance described in paragraph (1).
       ``(3) Required participation.--In accordance with 
     procedures established by the Secretary, each local 
     educational agency or school food authority shall ensure that 
     an individual conducting or overseeing administrative 
     procedures described in paragraph (1) receives training at 
     least annually, unless determined otherwise by the Secretary.
       ``(h) Funding for Training and Administrative Reviews.--
       ``(1) Funding.--
       ``(A) In general.--On October 1, 2004, and on each October 
     1 thereafter, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture to carry out this subsection 
     $4,000,000, to remain available until expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(2) Use of funds.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall use funds provided under this subsection 
     to assist States in carrying out subsection (g) and 
     administrative reviews of selected local educational agencies 
     carried out under section 22 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1769c).
       ``(B) Exception.--The Secretary may retain a portion of the 
     amount provided to cover costs of activities carried out by 
     the Secretary in lieu of the State.
       ``(3) Allocation.--The Secretary shall allocate funds 
     provided under this subsection to States based on the number 
     of local educational agencies that have demonstrated a high 
     level of, or a high risk for, administrative error, as 
     determined by the Secretary, taking into account the 
     requirements established by the Child Nutrition and WIC 
     Reauthorization Act of 2004 and the amendments made by that 
     Act.
       ``(4) Reallocation.--The Secretary may reallocate, to carry 
     out this section, any amounts made available to carry out 
     this subsection that are not obligated or expended, as 
     determined by the Secretary.''.

     SEC. 127. COMPLIANCE AND ACCOUNTABILITY.

       Section 22(d) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769c(d)) is amended by striking 
     ``$3,000,000 for each of the fiscal years 1994 through 2003'' 
     and inserting ``$6,000,000 for each of fiscal years 2004 
     through 2009''.

     SEC. 128. INFORMATION CLEARINGHOUSE.

       Section 26(d) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1769g(d)) is amended in the first 
     sentence--
       (1) by striking ``1998, and'' and inserting ``1998,''; and
       (2) by striking ``through 2003'' and inserting ``through 
     2004, and $250,000 for each of fiscal years 2005 through 
     2009''.

     SEC. 129. PROGRAM EVALUATION.

       The Richard B. Russell National School Lunch Act (42 U.S.C. 
     1751 et seq.) is amended by adding at the end the following:

     ``SEC. 28. PROGRAM EVALUATION.

       ``(a) Performance Assessments.--
       ``(1) In general.--Subject to the availability of funds 
     made available under paragraph (3), the Secretary, acting 
     through the Administrator of the Food and Nutrition Service, 
     may conduct annual national performance assessments of the 
     meal programs under this Act and the Child Nutrition Act of 
     1966 (42 U.S.C. 1771 et seq.).
       ``(2) Components.--In conducting an assessment, the 
     Secretary may assess--
       ``(A) the cost of producing meals and meal supplements 
     under the programs described in paragraph (1); and
       ``(B) the nutrient profile of meals, and status of menu 
     planning practices, under the programs.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for fiscal year 2004 and each subsequent fiscal year.
       ``(b) Certification Improvements.--
       ``(1) In general.--Subject to the availability of funds 
     made available under paragraph (5), the Secretary, acting 
     through the Administrator of the Food and Nutrition Service, 
     shall conduct a study of the feasibility of improving the 
     certification process used for the school lunch program 
     established under this Act.
       ``(2) Pilot projects.--In carrying out this subsection, the 
     Secretary may conduct pilot projects to improve the 
     certification process used for the school lunch program.
       ``(3) Components.--In carrying out this subsection, the 
     Secretary shall examine the use of--
       ``(A) other income reporting systems;
       ``(B) an integrated benefit eligibility determination 
     process managed by a single agency;
       ``(C) income or program participation data gathered by 
     State or local agencies; and
       ``(D) other options determined by the Secretary.
       ``(4) Waivers.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary may waive such provisions of this Act and the Child 
     Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are 
     necessary to carry out this subsection.
       ``(B) Provisions.--The protections of section 9(b)(6) shall 
     apply to any study or pilot project carried out under this 
     subsection.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection such sums as 
     are necessary.''.

          TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

     SEC. 201. SEVERE NEED ASSISTANCE.

       Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1773) is amended by striking subsection (d) and inserting the 
     following:
       ``(d) Severe Need Assistance.--
       ``(1) In general.--Each State educational agency shall 
     provide additional assistance to schools in severe need, 
     which shall include only those schools (having a breakfast 
     program or desiring to initiate a breakfast program) in 
     which--
       ``(A) during the most recent second preceding school year 
     for which lunches were served, 40 percent or more of the 
     lunches served to students at the school were served free or 
     at a reduced price; or
       ``(B) in the case of a school in which lunches were not 
     served during the most recent second preceding school year, 
     the Secretary otherwise determines that the requirements of 
     subparagraph (A) would have been met.
       ``(2) Additional assistance.--A school, on the submission 
     of appropriate documentation about the need circumstances in 
     that school and the eligibility of the school for additional 
     assistance, shall be entitled to receive the meal 
     reimbursement rate specified in subsection (b)(2).''.

     SEC. 202. STATE ADMINISTRATIVE EXPENSES.

       (a) Minimum State Administrative Expense Grants.--Section 7 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is 
     amended--
       (1) by striking the section heading and all that follows 
     through ``(a)(1) Each'' and inserting the following:

     ``SEC. 7. STATE ADMINISTRATIVE EXPENSES.

       ``(a) Amount and Allocation of Funds.--
       ``(1) Amount available.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each'';
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) by inserting after the first sentence the following:
       ``(B) Minimum amount.--In the case of each of fiscal years 
     2005 through 2007, the Secretary shall make available to each 
     State for administrative costs not less than the initial 
     allocation made to the State under this subsection for fiscal 
     year 2004.'';
       (ii) by striking ``The Secretary'' and inserting the 
     following:
       ``(C) Allocation.--The Secretary''; and
       (iii) by striking the last sentence; and
       (B) in paragraph (2)--
       (i) by striking ``(2) The'' and inserting the following:
       ``(2) Expense grants.--
       ``(A) In general.--Subject to subparagraph (B), the'';
       (ii) in the second sentence--

       (I) by striking ``In no case'' and inserting the following:

[[Page S7260]]

       ``(B) Minimum amount.--
       ``(i) In general.--In no case'';

       (II) by striking ``this subsection'' and inserting ``this 
     paragraph''; and
       (III) by striking ``$100,000'' and inserting ``$200,000 (as 
     adjusted under clause (ii)''; and

       (iii) by adding at the end the following:
       ``(ii) Adjustment.--On October 1, 2008, and each October 1 
     thereafter, the minimum dollar amount for a fiscal year 
     specified in clause (i) shall be adjusted to reflect the 
     percentage change between--

       ``(I) the value of the index for State and local government 
     purchases, as published by the Bureau of Economic Analysis of 
     the Department of Commerce, for the 12-month period ending 
     June 30 of the second preceding fiscal year; and
       ``(II) the value of that index for the 12-month period 
     ending June 30 of the preceding fiscal year.''.

       (b) Technology Infrastructure Improvement.--Section 7 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended 
     by inserting after subsection (h) (as added by section 
     126(c)(3)) the following:
       ``(i) Technology Infrastructure Improvement.--
       ``(1) In general.--Each State shall submit to the 
     Secretary, for approval by the Secretary, an amendment to the 
     plan required by subsection (e) that describes the manner in 
     which funds provided under this section will be used for 
     technology and information management systems.
       ``(2) Requirements.--The amendment shall, at a minimum, 
     describe the manner in which the State will improve program 
     integrity by--
       ``(A) monitoring the nutrient content of meals served;
       ``(B) providing training to local educational agencies, 
     school food authorities, and schools on the use of technology 
     and information management systems for activities including--
       ``(i) menu planning;
       ``(ii) collection of point-of-sale data; and
       ``(iii) the processing of applications for free and reduced 
     price meals; and
       ``(C) using electronic data to establish benchmarks to 
     compare and monitor program integrity, program participation, 
     and financial data across schools and school food 
     authorities.
       ``(3) Technology infrastructure grants.--
       ``(A) In general.--Subject to the availability of funds 
     made available under paragraph (4) to carry out this 
     paragraph, the Secretary shall, on a competitive basis, 
     provide funds to States to be used to provide grants to local 
     educational agencies, school food authorities, and schools to 
     defray the cost of purchasing or upgrading technology and 
     information management systems for use in programs authorized 
     by this Act (other than section 17) and the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.).
       ``(B) Infrastructure development plan.--To be eligible to 
     receive a grant under this paragraph, a school or school food 
     authority shall submit to the State a plan to purchase or 
     upgrade technology and information management systems that 
     addresses potential cost savings and methods to improve 
     program integrity, including--
       ``(i) processing and verification of applications for free 
     and reduced price meals;
       ``(ii) integration of menu planning, production, and 
     serving data to monitor compliance with section 9(f)(1) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(f)(1)); and
       ``(iii) compatibility with statewide reporting systems.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2005 
     through 2009, to remain available until expended.''.
       (c) Reauthorization.--Subsection (j) of section 7 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1776) (as redesignated 
     by section 126(c)(2)) is amended by striking ``2003'' and 
     inserting ``2009''.

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

       (a) Definitions.--
       (1) Nutrition education.--Section 17(b) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(b)) is amended by 
     striking paragraph (7) and inserting the following:
       ``(7) Nutrition education.--The term `nutrition education' 
     means individual and group sessions and the provision of 
     material that are designed to improve health status and 
     achieve positive change in dietary and physical activity 
     habits, and that emphasize the relationship between 
     nutrition, physical activity, and health, all in keeping with 
     the personal and cultural preferences of the individual.''.
       (2) Supplemental foods.--Section 17(b)(14) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(b)(14)) is amended in 
     the first sentence by inserting after ``children'' the 
     following: ``and foods that promote the health of the 
     population served by the program authorized by this section, 
     as indicated by relevant nutrition science, public health 
     concerns, and cultural eating patterns''.
       (3) Other terms.--Section 17(b) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(b)) is amended by adding at the end 
     the following:
       ``(22) Primary contract infant formula.--The term `primary 
     contract infant formula' means the specific infant formula 
     for which manufacturers submit a bid to a State agency in 
     response to a rebate solicitation under this section and for 
     which a contract is awarded by the State agency as a result 
     of that bid.
       ``(23) State alliance.--The term `State alliance' means 2 
     or more State agencies that join together for the purpose of 
     procuring infant formula under the program by soliciting 
     competitive bids for infant formula.''.
       (b) Eligibility.--
       (1) Certification period.--Section 17(d)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended--
       (A) by striking ``(3)(A) Persons'' and inserting the 
     following:
       ``(3) Certification.--
       ``(A) Procedures.--
       ``(i) In general.--Subject to clause (ii), a person''; and
       (B) by adding at the end of subparagraph (A) the following:
       ``(ii) Breastfeeding women.--A State may elect to certify a 
     breastfeeding woman for a period of 1 year postpartum or 
     until a woman discontinues breastfeeding, whichever is 
     earlier.''.
       (2) Physical presence.--Section 17(d)(3)(C)(ii) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(C)(ii)) is 
     amended--
       (A) in subclause (I)(bb), by striking ``from a provider 
     other than the local agency; or'' and inserting a semicolon;
       (B) in subclause (II), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:

       ``(III) an infant under 8 weeks of age--

       ``(aa) who cannot be present at certification for a reason 
     determined appropriate by the local agency; and
       ``(bb) for whom all necessary certification information is 
     provided.''.
       (c) Administration.--
       (1) Processing vendor applications; participant access.--
     Section 17(f)(1)(C) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(f)(1)(C)) is amended--
       (A) in clause (i) by inserting ``at any of the authorized 
     retail stores under the program'' after ``the program'';
       (B) by redesignating clauses (ii) through (x) as clauses 
     (iii) through (xi), respectively; and
       (C) by inserting after clause (i) the following:
       ``(ii) procedures for accepting and processing vendor 
     applications outside of the established timeframes if the 
     State agency determines there will be inadequate access to 
     the program, including in a case in which a previously 
     authorized vendor sells a store under circumstances that do 
     not permit timely notification to the State agency of the 
     change in ownership;''.
       (2) Allowable use of funds.--
       (A) In general.--Section 17(f)(11) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(f)(11) is amended--
       (i) by striking ``(11) The Secretary'' and inserting the 
     following:
       ``(11) Supplemental foods.--
       ``(A) In general.--The Secretary'';
       (ii) in the second sentence, by striking ``To the degree'' 
     and inserting the following:
       ``(B) Appropriate content.--To the degree''; and
       (iii) by adding at the end the following:
       ``(C) Allowable use of funds.--Subject to the availability 
     of funds, the Secretary shall award grants to not more than 
     10 local sites determined by the Secretary to be 
     geographically and culturally representative of State, local, 
     and Indian agencies, to evaluate the feasibility of including 
     fresh, frozen, or canned fruits and vegetables (to be made 
     available through private funds) as an addition to the 
     supplemental foods prescribed under this section.
       ``(D) Review of available supplemental foods.--As 
     frequently as determined by the Secretary to be necessary to 
     reflect the most recent scientific knowledge, the Secretary 
     shall--
       ``(i) conduct a scientific review of the supplemental foods 
     available under the program; and
       ``(ii) amend the supplemental foods available, as 
     necessary, to reflect nutrition science, public health 
     concerns, and cultural eating patterns.''.
       (B) Rulemaking.--Not later than 18 months after the date of 
     receiving the review initiated by the National Academy of 
     Sciences, Institute of Medicine in September 2003 of the 
     supplemental foods available for 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), the Secretary shall promulgate a final rule 
     updating the prescribed supplemental foods available through 
     the program.
       (3) Use of claims from local agencies.--Section 17(f)(21) 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is 
     amended--
       (A) in the paragraph heading, by striking ``vendors'' and 
     inserting ``local agencies, vendors,''; and
       (B) by striking ``vendors'' and inserting ``local agencies, 
     vendors,''.
       (4) Infant formula benefits.--
       (A) In general.--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:
       ``(25) Infant formula benefits.--A State agency may round 
     up to the next whole can of infant formula to allow all 
     participants under the program to receive the full-authorized 
     nutritional benefit specified by regulation.''.

[[Page S7261]]

       (B) Applicability.--The amendment made by subparagraph (A) 
     applies to infant formula provided under a contract resulting 
     from a bid solicitation issued on or after October 1, 2004.
       (5) Notification of violations.--Section 17(f) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by 
     paragraph (4)) is amended by adding at the end the following:
       ``(26) Notification of violations.--If a State agency finds 
     that a vendor has committed a violation that requires a 
     pattern of occurrences in order to impose a penalty or 
     sanction, the State agency shall notify the vendor of the 
     initial violation in writing prior to documentation of 
     another violation, unless the State agency determines that 
     notifying the vendor would compromise an investigation.''.
       (d) Reauthorization of WIC Program.--Section 17(g) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended by 
     striking ``(g)(1)'' and all that follows through ``As 
     authorized'' in paragraph (1) and inserting the following:
       ``(g) Authorization of Appropriations.--
       ``(1) In general.--
       ``(A) Authorization.--There are authorized to be 
     appropriated to carry out this section such sums as are 
     necessary for each of fiscal years 2004 through 2009.
       ``(B) Advance appropriations; availability.--As 
     authorized''.
       (e) Nutrition Services and Administration Funds; 
     Competitive Bidding; Retailers.--
       (1) In general.--Section 17(h)(2)(A) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended by striking 
     ``For each of the fiscal years 1995 through 2003, the'' and 
     inserting ``The''.
       (2) Healthy people 2010 initiative.--Section 17(h)(4) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(4)) is 
     amended--
       (A) in subparagraph (D), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(F) partner with communities, State and local agencies, 
     employers, health care professionals, and other entities in 
     the private sector to build a supportive breastfeeding 
     environment for women participating in the program under this 
     section to support the breastfeeding goals of the Healthy 
     People 2010 initiative.''.
       (3) Size of state alliances.--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:
       ``(iv) Size of state alliances.--

       ``(I) In general.--Except as provided in subclauses (II) 
     through (IV), no State alliance may exist among States if the 
     total number of infants served by States participating in the 
     alliance as of October 1, 2003, or such subsequent date 
     determined by the Secretary for which data is available, 
     would exceed 100,000.
       ``(II) Addition of infant participants.--In the case of a 
     State alliance that exists on the date of enactment of this 
     clause, the alliance may continue and may expand to serve 
     more than 100,000 infants but, except as provided in 
     subclause (III), may not expand to include any additional 
     State agency.
       ``(III) Addition of small state agencies and indian state 
     agencies.--Any State alliance may expand to include any State 
     agency that served less than 5,000 infant participants as of 
     October 1, 2003, or such subsequent date determined by the 
     Secretary for which data is available, or any Indian State 
     agency, if the State agency or Indian State agency requests 
     to join the State alliance.
       ``(IV) Secretarial waiver.--The Secretary may waive the 
     requirements of this clause not earlier than 30 days after 
     submitting 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 written 
     report that describes the cost-containment and competitive 
     benefits of the proposed waiver.''.

       (4) Primary contract infant formula.--
       (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(8)(A)) (as amended by paragraph 
     (3)) is amended--
       (i) in clause (ii)(I), by striking ``contract brand of'' 
     and inserting ``primary contract'';
       (ii) in clause (iii), by inserting ``for a specific infant 
     formula for which manufacturers submit a bid'' after ``lowest 
     net price''; and
       (iii) by adding at the end the following:
       ``(v) First choice of issuance.--The State agency shall use 
     the primary contract infant formula as the first choice of 
     issuance (by formula type), with all other infant formulas 
     issued as an alternative to the primary contract infant 
     formula.''.
       (B) Applicability.--The amendments made by subparagraph (A) 
     apply to a contract resulting from a bid solicitation issued 
     on or after October 1, 2004.
       (5) Rebate invoices.--Section 17(h)(8)(A) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended 
     by paragraph (4)(A)(iii)) is amended by adding at the end the 
     following:
       ``(vi) Rebate invoices.--Each State agency shall have a 
     system to ensure that infant formula rebate invoices, under 
     competitive bidding, provide a reasonable estimate or an 
     actual count of the number of units sold to participants in 
     the program under this section.''.
       (6) Uncoupling milk and soy bids.--
       (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
     paragraph (5)) is amended by adding at the end the following:
       ``(vii) Separate solicitations.--In soliciting bids for 
     infant formula under a competitive bidding system, any State 
     agency, or State alliance, that served under the program a 
     monthly average of more than 100,000 infants during the 
     preceding 12-month period shall solicit bids from infant 
     formula manufacturers under procedures that require that bids 
     for rebates or discounts are solicited for milk-based and 
     soy-based infant formula separately.''.
       (B) Applicability.--The amendment made by this paragraph 
     applies to a bid solicitation issued on or after October 1, 
     2004.
       (7) Cent-for-cent adjustments.--
       (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
     paragraph (6)(A)) is amended by adding at the end the 
     following:
       ``(viii) Cent-for-cent adjustments.--A bid solicitation for 
     infant formula under the program shall require the 
     manufacturer to adjust for price changes subsequent to the 
     opening of the bidding process in a manner that requires--

       ``(I) a cent-for-cent increase in the rebate amounts if 
     there is an increase in the lowest national wholesale price 
     for a full truckload of the particular infant formula; and
       ``(II) a cent-for-cent decrease in the rebate amounts if 
     there is a decrease in the lowest national wholesale price 
     for a full truckload of the particular infant formula.''.

       (B) Conforming amendment.--Section 17(h)(8)(A)(ii) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)(ii)) is 
     amended by striking ``rise'' and inserting ``change''.
       (C) Applicability.--The amendments made by this paragraph 
     apply to a bid solicitation issued on or after October 1, 
     2004.
       (8) List of infant formula wholesalers, distributors, 
     retailers, and manufacturers.--Section 17(h)(8)(A) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as 
     amended by paragraph (7)(A)) is amended by adding at the end 
     the following:
       ``(ix) List of infant formula wholesalers, distributors, 
     retailers, and manufacturers.--The State agency shall 
     maintain a list of--

       ``(I) infant formula wholesalers, distributors, and 
     retailers licensed in the State in accordance with State law 
     (including regulations); and
       ``(II) infant formula manufacturers registered with the 
     Food and Drug Administration that provide infant formula.

       ``(x) Purchase requirement.--A vendor authorized to 
     participate in the program under this section shall only 
     purchase infant formula from the list described in clause 
     (ix).''.
       (9) Funds for infrastructure, management information 
     systems, and special nutrition education.--Section 17(h) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is 
     amended by striking paragraph (10) and inserting the 
     following:
       ``(10) Funds for infrastructure, management information 
     systems, and special nutrition education.--
       ``(A) In general.--For each of fiscal years 2006 through 
     2009, the Secretary shall use for the purposes specified in 
     subparagraph (B), $64,000,000 or the amount of nutrition 
     services and administration funds and supplemental food funds 
     for the prior fiscal year that have not been obligated, 
     whichever is less.
       ``(B) Purposes.--Of the amount made available under 
     subparagraph (A) for a fiscal year, not more than--
       ``(i) $14,000,000 shall be used for--

       ``(I) infrastructure for the program under this section;
       ``(II) special projects to promote breastfeeding, including 
     projects to assess the effectiveness of particular 
     breastfeeding promotion strategies; and
       ``(III) special State projects of regional or national 
     significance to improve the services of the program;

       ``(ii) $30,000,000 shall be used to establish, improve, or 
     administer management information systems for the program, 
     including changes necessary to meet new legislative or 
     regulatory requirements of the program; and
       ``(iii) $20,000,000 shall be used for special nutrition 
     education such as breast feeding peer counselors and other 
     related activities.
       ``(C) Proportional distribution.--In a case in which less 
     than $64,000,000 is available to carry out this paragraph, 
     the Secretary shall make a proportional distribution of funds 
     allocated under subparagraph (B).''.
       (10) Vendor cost containment.--
       (A) Section 17(h) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(h)) is amended by striking paragraph (11) and 
     inserting the following:
       ``(11) Vendor cost containment.--
       ``(A) Peer groups.--
       ``(i) In general.--The State agency shall--

       ``(I) establish a vendor peer group system;
       ``(II) in accordance with subparagraphs (B) and (C), 
     establish competitive price criteria and allowable 
     reimbursement levels for each vendor peer group; and
       ``(III) if the State agency elects to authorize any types 
     of vendors described in subparagraph (D)(ii)(I)--

       ``(aa) distinguish between vendors described in 
     subparagraph (D)(ii)(I) and other vendors by establishing--

[[Page S7262]]

       ``(AA) separate peer groups for vendors described in 
     subparagraph (D)(ii)(I);or
       ``(BB) distinct competitive price criteria and allowable 
     reimbursement levels for vendors described in subparagraph 
     (D)(ii)(I) within a peer group that contains both vendors 
     described in subparagraph (D)(ii)(I) and other vendors; and
       ``(bb) establish competitive price criteria and allowable 
     reimbursement levels that comply with subparagraphs (B) and 
     (C), respectively, and that do not result in higher food 
     costs if program participants redeem supplemental food 
     vouchers at vendors described in subparagraph (D)(ii)(I) 
     rather than at vendors other than vendors described in 
     subparagraph (D)(ii)(I).

     Nothing in this paragraph shall be construed to compel a 
     State agency to achieve lower food costs if program 
     participants redeem supplemental food vouchers at vendors 
     described in subparagraph (D)(ii)(I) rather than at vendors 
     other than vendors described in subparagraph (D)(ii)(I).
       ``(ii) Exemptions.--The Secretary may exempt from the 
     requirements of clause (i)--

       ``(I) a State agency that elects not to authorize any types 
     of vendors described in subparagraph (D)(ii)(I) and that 
     demonstrates to the Secretary that--

       ``(aa) compliance with clause (i) would be inconsistent 
     with efficient and effective operation of the program 
     administered by the State under this section; or
       ``(bb) an alternative cost-containment system would be as 
     effective as a vendor peer group system; or

       ``(II) a State agency--

       ``(aa) in which the sale of supplemental foods that are 
     obtained with food instruments from vendors described in 
     subparagraph (D)(ii)(I) constituted less than 5 percent of 
     total sales of supplemental foods that were obtained with 
     food instruments in the State in the year preceding a year in 
     which the exemption is effective; and
       ``(bb) that demonstrates to the Secretary that an 
     alternative cost-containment system would be as effective as 
     the vendor peer group system and would not result in higher 
     food costs if program participants redeem supplemental food 
     vouchers at vendors described in subparagraph (D)(ii)(I) 
     rather than at vendors other than vendors described in 
     subparagraph (D)(ii)(I).
       ``(B) Competitive pricing.--
       ``(i) In general.--The State agency shall establish 
     competitive price criteria for each peer group for the 
     selection of vendors for participation in the program that--

       ``(I) ensure that the retail prices charged by vendor 
     applicants for the program are competitive with the prices 
     charged by other vendors; and
       ``(II) consider--

       ``(aa) the shelf prices of the vendor for all buyers; or
       ``(bb) the prices that the vendor bid for supplemental 
     foods, which shall not exceed the shelf prices of the vendor 
     for all buyers.
       ``(ii) Participant access.--In establishing competitive 
     price criteria, the State agency shall consider participant 
     access by geographic area.
       ``(iii) Subsequent price increases.--The State agency shall 
     establish procedures to ensure that a retail store selected 
     for participation in the program does not, subsequent to 
     selection, increase prices to levels that would make the 
     store ineligible for selection to participate in the program.
       ``(C) Allowable reimbursement levels.--
       ``(i) In general.--The State agency shall establish 
     allowable reimbursement levels for supplemental foods for 
     each vendor peer group that ensure--

       ``(I) that payments to vendors in the vendor peer group 
     reflect competitive retail prices; and
       ``(II) that the State agency does not reimburse a vendor 
     for supplemental foods at a level that would make the vendor 
     ineligible for authorization under the criteria established 
     under subparagraph (B).

       ``(ii) Price fluctuations.--The allowable reimbursement 
     levels may include a factor to reflect fluctuations in 
     wholesale prices.
       ``(iii) Participant access.--In establishing allowable 
     reimbursement levels, the State agency shall consider 
     participant access in a geographic area.
       ``(D) Exemptions.--The State agency may exempt from 
     competitive price criteria and allowable reimbursement levels 
     established under this paragraph--
       ``(i) pharmacy vendors that supply only exempt infant 
     formula or medical foods that are eligible under the program; 
     and
       ``(ii) vendors--

       ``(I)(aa) for which more than 50 percent of the annual 
     revenue of the vendor from the sale of food items consists of 
     revenue from the sale of supplemental foods that are obtained 
     with food instruments; or
       ``(bb) who are new applicants likely to meet the criteria 
     of item (aa) under criteria approved by the Secretary; and
       ``(II) that are nonprofit.

       ``(E) Cost containment.--If a State agency elects to 
     authorize any types of vendors described in subparagraph 
     (D)(ii)(I), the State agency shall demonstrate to the 
     Secretary, and the Secretary shall certify, that the 
     competitive price criteria and allowable reimbursement levels 
     established under this paragraph for vendors described in 
     subparagraph (D)(ii)(I) do not result in average payments per 
     voucher to vendors described in subparagraph (D)(ii)(I) that 
     are higher than average payments per voucher to comparable 
     vendors other than vendors described in subparagraph 
     (D)(ii)(I).
       ``(F) Limitation on private rights of action.--Nothing in 
     this paragraph may be construed as creating a private right 
     of action.
       ``(G) Implementation.--A State agency shall comply with 
     this paragraph not later than 18 months after the date of 
     enactment of this paragraph.''.
       (B) Conforming amendment.--Section 17(f)(1)(C)(i) of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(1)(C)(i)) is 
     amended by inserting before the semicolon the following: ``, 
     including a description of the State agency's vendor peer 
     group system, competitive price criteria, and allowable 
     reimbursement levels that demonstrate that the State is in 
     compliance with the cost-containment provisions in subsection 
     (h)(11).''.
       (11) Imposition of costs on retail stores.--Section 17(h) 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is 
     amended by striking paragraph (12) and inserting the 
     following:
       ``(12) Imposition of costs on retail stores.--The Secretary 
     may not impose, or allow a State agency to impose, the costs 
     of any equipment, system, or processing required for 
     electronic benefit transfers on any retail store authorized 
     to transact food instruments, as a condition for 
     authorization or participation in the program.''.
       (12) Universal product codes database.--Section 17(h) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) (as 
     amended by paragraph (11)) is amended by adding at the end 
     the following:
       ``(13) Universal product codes database.--The Secretary 
     shall--
       ``(A) establish a national universal product code database 
     for use by all State agencies in carrying out the program; 
     and
       ``(B) make available from appropriated funds such sums as 
     are required for hosting, hardware and software 
     configuration, and support of the database.''.
       (13) Incentive items.--Section 17(h) of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786(h)) (as amended by paragraph 
     (12)) is amended by adding at the end the following:
       ``(14) Incentive items.--A State agency shall not authorize 
     or make payments to a vendor described in paragraph 
     (11)(D)(ii)(I) that provides incentive items or other free 
     merchandise, except food or merchandise of nominal value (as 
     determined by the Secretary), to program participants unless 
     the vendor provides to the State agency proof that the vendor 
     obtained the incentive items or merchandise at no cost.''.
       (f) Spend Forward Authority.--Section 17(i)(3)(A)(ii)(I) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(i)(3)(A)(ii)(I)) is amended by striking ``1 percent'' 
     and inserting ``3 percent''.
       (g) Migrant and Community Health Centers Initiative.--
     Section 17(j) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(j)) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraph (5) as paragraph (4).
       (h) Farmers' Market Nutrition Program.--
       (1) Roadside stands.--Section 17(m)(1) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m)(1)) is amended by 
     inserting ``and (at the option of a State) roadside stands'' 
     after ``farmers' markets''.
       (2) Matching funds.--Section 17(m)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended by 
     striking ``total'' both places it appears and inserting 
     ``administrative''.
       (3) Benefit value.--Section 17(m)(5)(C)(ii) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m)(5)(C)(ii)) is 
     amended by striking ``$20'' and inserting ``$30''.
       (4) Reauthorization.--Section 17(m)(9)(A) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by 
     striking clause (i) and inserting the following:
       ``(i) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2004 
     through 2009.''.
       (i) Demonstration Project Relating to Use of WIC Program 
     for Identification and Enrollment of Children in Certain 
     Health Programs.--
       (1) In general.--Section 17 of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786) is amended by striking subsection (r).
       (2) Conforming amendment.--Section 12 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1760) is amended 
     by striking subsection (p).

     SEC. 204. LOCAL WELLNESS POLICY.

       (a) In General.--Not later than the first day of the school 
     year beginning after June 30, 2006, each local educational 
     agency participating in a program authorized by the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) 
     or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
     shall establish a local school wellness policy for schools 
     under the local educational agency that, at a minimum--
       (1) includes goals for nutrition education, physical 
     activity, and other school-based activities that are designed 
     to promote student wellness in a manner that the local 
     educational agency determines is appropriate;
       (2) includes nutrition guidelines selected by the local 
     educational agency for all foods available on each school 
     campus under the local educational agency during the school 
     day with the objectives of promoting student health and 
     reducing childhood obesity;

[[Page S7263]]

       (3) provides an assurance that guidelines for reimbursable 
     school meals shall not be less restrictive than regulations 
     and guidance issued by the Secretary of Agriculture pursuant 
     to subsections (a) and (b) of section 10 of the Child 
     Nutrition Act (42 U.S.C. 1779) and sections 9(f)(1) and 17(a) 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1758(f)(1), 1766(a)), as those regulations and 
     guidance apply to schools;
       (4) establishes a plan for measuring implementation of the 
     local wellness policy, including designation of 1 or more 
     persons within the local educational agency or at each 
     school, as appropriate, charged with operational 
     responsibility for ensuring that the school meets the local 
     wellness policy; and
       (5) involves parents, students, representatives of the 
     school food authority, the school board, school 
     administrators, and the public in the development of the 
     school wellness policy.
       (b) Technical Assistance and Best Practices.--
       (1) In general.--The Secretary, in coordination with the 
     Secretary of Education and in consultation with the Secretary 
     of Health and Human Services, acting through the Centers for 
     Disease Control and Prevention, shall make available to local 
     educational agencies, school food authorities, and State 
     educational agencies, on request, information and technical 
     assistance for use in--
       (A) establishing healthy school nutrition environments;
       (B) reducing childhood obesity; and
       (C) preventing diet-related chronic diseases.
       (2) Content.--Technical assistance provided by the 
     Secretary under this subsection shall--
       (A) include relevant and applicable examples of schools and 
     local educational agencies that have taken steps to offer 
     healthy options for foods sold or served in schools;
       (B) include such other technical assistance as is required 
     to carry out the goals of promoting sound nutrition and 
     establishing healthy school nutrition environments that are 
     consistent with this section;
       (C) be provided in such a manner as to be consistent with 
     the specific needs and requirements of local educational 
     agencies; and
       (D) be for guidance purposes only and not be construed as 
     binding or as a mandate to schools, local educational 
     agencies, school food authorities, or State educational 
     agencies.
       (3) Funding.--
       (A) In general.--On July 1, 2006, out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary of Agriculture to 
     carry out this subsection $4,000,000, to remain available 
     until September 30, 2009.
       (B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.

     SEC. 205. TEAM NUTRITION NETWORK.

       (a) Team Nutrition Network.--Section 19 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1788) is amended to read as 
     follows:

     ``SEC. 19. TEAM NUTRITION NETWORK.

       ``(a) Purposes.--The purposes of the team nutrition network 
     are--
       ``(1) to establish State systems to promote the nutritional 
     health of school children of the United States through 
     nutrition education and the use of team nutrition messages 
     and material developed by the Secretary, and to encourage 
     regular physical activity and other activities that support 
     healthy lifestyles for children, including those based on the 
     most recent Dietary Guidelines for Americans published under 
     section 301 of the National Nutrition Monitoring and Related 
     Research Act of 1990 (7 U.S.C. 5341);
       ``(2) to provide assistance to States for the development 
     of comprehensive and integrated nutrition education and 
     active living programs in schools and facilities that 
     participate in child nutrition programs;
       ``(3) to provide training and technical assistance and 
     disseminate team nutrition messages to States, school and 
     community nutrition programs, and child nutrition food 
     service professionals;
       ``(4) to coordinate and collaborate with other nutrition 
     education and active living programs that share similar goals 
     and purposes; and
       ``(5) to identify and share innovative programs with 
     demonstrated effectiveness in helping children to maintain a 
     healthy weight by enhancing student understanding of 
     healthful eating patterns and the importance of regular 
     physical activity.
       ``(b) Definition of Team Nutrition Network.--In this 
     section, the term `team nutrition network' means a statewide 
     multidisciplinary program for children to promote healthy 
     eating and physical activity based on scientifically valid 
     information and sound educational, social, and marketing 
     principles.
       ``(c) Grants.--
       ``(1) In general.--Subject to the availability of funds for 
     use in carrying out this section, in addition to any other 
     funds made available to the Secretary for team nutrition 
     purposes, the Secretary, in consultation with the Secretary 
     of Education, may make grants to State agencies for each 
     fiscal year, in accordance with this section, to establish 
     team nutrition networks to promote nutrition education 
     through--
       ``(A) the use of team nutrition network messages and other 
     scientifically based information; and
       ``(B) the promotion of active lifestyles.
       ``(2) Form.--A portion of the grants provided under this 
     subsection may be in the form of competitive grants.
       ``(3) Funds from nongovernmental sources.--In carrying out 
     this subsection, the Secretary may accept cash contributions 
     from nongovernmental organizations made expressly to further 
     the purposes of this section, to be managed by the Food and 
     Nutrition Service, for use by the Secretary and the States in 
     carrying out this section.
       ``(d) Allocation.--Subject to the availability of funds for 
     use in carrying out this section, the total amount of funds 
     made available for a fiscal year for grants under this 
     section shall equal not more than the sum of--
       ``(1) the product obtained by multiplying \1/2\ cent by the 
     number of lunches reimbursed through food service programs 
     under the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.) during the second preceding fiscal year 
     in schools, institutions, and service institutions that 
     participate in the food service programs; and
       ``(2) the total value of funds received by the Secretary in 
     support of this section from nongovernmental sources.
       ``(e) Requirements for State Participation.--To be eligible 
     to receive a grant under this section, a State agency shall 
     submit to the Secretary a plan that--
       ``(1) is subject to approval by the Secretary; and
       ``(2) is submitted at such time and in such manner, and 
     that contains such information, as the Secretary may require, 
     including--
       ``(A) a description of the goals and proposed State plan 
     for addressing the health and other consequences of children 
     who are at risk of becoming overweight or obese;
       ``(B) an analysis of the means by which the State agency 
     will use and disseminate the team nutrition messages and 
     material developed by the Secretary;
       ``(C) an explanation of the ways in which the State agency 
     will use the funds from the grant to work toward the goals 
     required under subparagraph (A), and to promote healthy 
     eating and physical activity and fitness in schools 
     throughout the State;
       ``(D) a description of the ways in which the State team 
     nutrition network messages and activities will be coordinated 
     at the State level with other health promotion and education 
     activities;
       ``(E) a description of the consultative process that the 
     State agency employed in the development of the model 
     nutrition and physical activity programs, including 
     consultations with individuals and organizations with 
     expertise in promoting public health, nutrition, or physical 
     activity;
       ``(F) a description of how the State agency will evaluate 
     the effectiveness of each program developed by the State 
     agency;
       ``(G) an annual summary of the team nutrition network 
     activities;
       ``(H) a description of the ways in which the total school 
     environment will support healthy eating and physical 
     activity; and
       ``(I) a description of how all communications to parents 
     and legal guardians of students who are members of a 
     household receiving or applying for assistance under the 
     program shall be in an understandable and uniform format and, 
     to the maximum extent practicable, in a language that parents 
     and legal guardians can understand.
       ``(f) State Coordinator.--Each State that receives a grant 
     under this section shall appoint a team nutrition network 
     coordinator who shall--
       ``(1) administer and coordinate the team nutrition network 
     within and across schools, school food authorities, and other 
     child nutrition program providers in the State; and
       ``(2) coordinate activities of the Secretary, acting 
     through the Food and Nutrition Service, and State agencies 
     responsible for other children's health, education, and 
     wellness programs to implement a comprehensive, coordinated 
     team nutrition network program.
       ``(g) Authorized Activities.--A State agency that receives 
     a grant under this section may use funds from the grant--
       ``(1)(A) to collect, analyze, and disseminate data 
     regarding the extent to which children and youths in the 
     State are overweight, physically inactive, or otherwise 
     suffering from nutrition-related deficiencies or disease 
     conditions; and
       ``(B) to identify the programs and services available to 
     meet those needs;
       ``(2) to implement model elementary and secondary education 
     curricula using team nutrition network messages and material 
     developed by the Secretary to create a comprehensive, 
     coordinated nutrition and physical fitness awareness and 
     obesity prevention program;
       ``(3) to implement pilot projects in schools to promote 
     physical activity and to enhance the nutritional status of 
     students;
       ``(4) to improve access to local foods through farm-to-
     cafeteria activities that may include the acquisition of food 
     and the provision of training and education;
       ``(5) to implement State guidelines in health (including 
     nutrition education and physical education guidelines) and to 
     emphasize regular physical activity during school hours;
       ``(6) to establish healthy eating and lifestyle policies in 
     schools;
       ``(7) to provide training and technical assistance to 
     teachers and school food service

[[Page S7264]]

     professionals consistent with the purposes of this section;
       ``(8) to collaborate with public and private organizations, 
     including community-based organizations, State medical 
     associations, and public health groups, to develop and 
     implement nutrition and physical education programs targeting 
     lower income children, ethnic minorities, and youth at a 
     greater risk for obesity.
       ``(h) Local Nutrition and Physical Activity Grants.--
       ``(1) In general.--Subject to the availability of funds to 
     carry out this subsection, the Secretary, in consultation 
     with the Secretary of Education, shall provide assistance to 
     selected local educational agencies to create healthy school 
     nutrition environments, promote healthy eating habits, and 
     increase physical activity, consistent with the Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341), among elementary and secondary 
     education students.
       ``(2) Selection of schools.--In selecting local educational 
     agencies for grants under this subsection, the Secretary 
     shall--
       ``(A) provide for the equitable distribution of grants 
     among--
       ``(i) urban, suburban, and rural schools; and
       ``(ii) schools with varying family income levels;
       ``(B) consider factors that affect need, including local 
     educational agencies with significant minority or low-income 
     student populations; and
       ``(C) establish a process that allows the Secretary to 
     conduct an evaluation of how funds were used.
       ``(3) Requirement for participation.--To be eligible to 
     receive assistance under this subsection, a local educational 
     agency shall, in consultation with individuals who possess 
     education or experience appropriate for representing the 
     general field of public health, including nutrition and 
     fitness professionals, submit to the Secretary an application 
     that shall include--
       ``(A) a description of the need of the local educational 
     agency for a nutrition and physical activity program, 
     including an assessment of the nutritional environment of the 
     school;
       ``(B) a description of how the proposed project will 
     improve health and nutrition through education and increased 
     access to physical activity;
       ``(C) a description of how the proposed project will be 
     aligned with the local wellness policy required under section 
     204 of the Child Nutrition and WIC Reauthorization Act of 
     2004;
       ``(D) a description of how funds under this subsection will 
     be coordinated with other programs under this Act, the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
     et seq.), or other Acts, as appropriate, to improve student 
     health and nutrition;
       ``(E) a statement of the measurable goals of the local 
     educational agency for nutrition and physical education 
     programs and promotion;
       ``(F) a description of the procedures the agency will use 
     to assess and publicly report progress toward meeting those 
     goals; and
       ``(G) a description of how communications to parents and 
     guardians of participating students regarding the activities 
     under this subsection shall be in an understandable and 
     uniform format, and, to the extent maximum practicable, in a 
     language that parents can understand.
       ``(4) Duration.--Subject to the availability of funds made 
     available to carry out this subsection, a local educational 
     agency receiving assistance under this subsection shall 
     conduct the project during a period of 3 successive school 
     years beginning with the initial fiscal year for which the 
     local educational agency receives funds.
       ``(5) Authorized activities.--An eligible applicant that 
     receives assistance under this subsection--
       ``(A) shall use funds provided to--
       ``(i) promote healthy eating through the development and 
     implementation of nutrition education programs and curricula 
     based on the Dietary Guidelines for Americans published under 
     section 301 of the National Nutrition Monitoring and Related 
     Research Act of 1990 (7 U.S.C. 5341); and
       ``(ii) increase opportunities for physical activity through 
     after school programs, athletics, intramural activities, and 
     recess; and
       ``(B) may use funds provided to--
       ``(i) educate parents and students about the relationship 
     of a poor diet and inactivity to obesity and other health 
     problems;
       ``(ii) develop and implement physical education programs 
     that promote fitness and lifelong activity;
       ``(iii) provide training and technical assistance to food 
     service professionals to develop more appealing, nutritious 
     menus and recipes;
       ``(iv) incorporate nutrition education into physical 
     education, health education, and after school programs, 
     including athletics;
       ``(v) involve parents, nutrition professionals, food 
     service staff, educators, community leaders, and other 
     interested parties in assessing the food options in the 
     school environment and developing and implementing an action 
     plan to promote a balanced and healthy diet;
       ``(vi) provide nutrient content or nutrition information on 
     meals served through the school lunch program established 
     under the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.) and the school breakfast program 
     established by section 4 of this Act and items sold a la 
     carte during meal times;
       ``(vii) encourage the increased consumption of a variety of 
     healthy foods, including fruits, vegetables, whole grains, 
     and low-fat dairy products, through new initiatives to 
     creatively market healthful foods, such as salad bars and 
     fruit bars;
       ``(viii) offer healthy food choices outside program meals, 
     including by making low-fat and nutrient dense options 
     available in vending machines, school stores, and other 
     venues; and
       ``(ix) provide nutrition education, including sports 
     nutrition education, for teachers, coaches, food service 
     staff, athletic trainers, and school nurses.
       ``(6) Report.--Not later than 18 months after completion of 
     the projects and evaluations under this subsection, the 
     Secretary shall--
       ``(A) submit to the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Health, Education, Labor, and Pensions and the Committee 
     on Agriculture, Nutrition and Forestry of the Senate a report 
     describing the results of the evaluation under this 
     subsection; and
       ``(B) make the report available to the public, including 
     through the Internet.
       ``(i) Nutrition Education Support.--In carrying out the 
     purpose of this section to support nutrition education, the 
     Secretary may provide for technical assistance and grants to 
     improve the quality of school meals and access to local foods 
     in schools and institutions.
       ``(j) Limitation.--Material prepared under this section 
     regarding agricultural commodities, food, or beverages, must 
     be factual and without bias.
       ``(k) Team Nutrition Network Independent Evaluation.--
       ``(1) In general.--Subject to the availability of funds to 
     carry out this subsection, the Secretary shall offer to enter 
     into an agreement with an independent, nonpartisan, science-
     based research organization--
       ``(A) to conduct a comprehensive independent evaluation of 
     the effectiveness of the team nutrition initiative and the 
     team nutrition network under this section; and
       ``(B) to identify best practices by schools in--
       ``(i) improving student understanding of healthful eating 
     patterns;
       ``(ii) engaging students in regular physical activity and 
     improving physical fitness;
       ``(iii) reducing diabetes and obesity rates in school 
     children;
       ``(iv) improving student nutrition behaviors on the school 
     campus, including by increasing healthier meal choices by 
     students, as evidenced by greater inclusion of fruits, 
     vegetables, whole grains, and lean dairy and protein in meal 
     and snack selections;
       ``(v) providing training and technical assistance for food 
     service professionals resulting in the availability of 
     healthy meals that appeal to ethnic and cultural taste 
     preferences;
       ``(vi) linking meals programs to nutrition education 
     activities;
       ``(vii) successfully involving parents, school 
     administrators, the private sector, public health agencies, 
     nonprofit organizations, and other community partners;
       ``(viii) ensuring the adequacy of time to eat during school 
     meal periods; and
       ``(ix) successfully generating revenue through the sale of 
     food items, while providing healthy options to students 
     through vending, student stores, and other venues.
       ``(2) Report.--Not later than 3 years after funds are made 
     available to carry out this subsection, the Secretary shall 
     submit to the Committee on Education and the Workforce of the 
     House of Representatives, the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report describing the 
     findings of the independent evaluation.
       ``(l) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (b) Conforming Amendment.--Section 21(c)(2)(E) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1769b-1(c)(2)(E)) is amended by striking ``, including'' and 
     all that follows through ``1966''.

     SEC. 206. REVIEW OF BEST PRACTICES IN THE BREAKFAST PROGRAM.

       (a) Review.--
       (1) In general.--Subject to the availability of funds under 
     subsection (c), the Secretary of Agriculture shall enter into 
     an agreement with a research organization to collect and 
     disseminate a review of best practices to assist school food 
     authorities in addressing existing impediments at the State 
     and local level that hinder the growth of the school 
     breakfast program under section 4 of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1773).
       (2) Recommendations.--The review shall describe model 
     breakfast programs and offer recommendations for schools to 
     overcome obstacles, including--
       (A) the length of the school day;
       (B) bus schedules; and
       (C) potential increases in costs at the State and local 
     level.
       (b) Dissemination.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall--

[[Page S7265]]

       (1) make the review required under subsection (a) available 
     to school food authorities via the Internet, including 
     recommendations to improve participation in the school 
     breakfast program; and
       (2) transmit to Committee on Education and the Workforce of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a copy of 
     the review.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

     SEC. 301. COMMODITY DISTRIBUTION PROGRAMS.

       Section 15 of the Commodity Distribution Reform Act and WIC 
     Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) 
     is amended by striking subsection (e).

                        TITLE IV--MISCELLANEOUS

     SEC. 401. SENSE OF CONGRESS REGARDING EFFORTS TO PREVENT AND 
                   REDUCE CHILDHOOD OBESITY.

       (a) Findings.--Congress finds that--
       (1) childhood obesity in the United States has reached 
     critical proportions;
       (2) childhood obesity is associated with numerous health 
     risks and the incidence of chronic disease later in life;
       (3) the prevention of obesity among children yields 
     significant benefits in terms of preventing disease and the 
     health care costs associated with such diseases;
       (4) further scientific and medical data on the prevalence 
     of childhood obesity is necessary in order to inform efforts 
     to fight childhood obesity; and
       (5) the State of Arkansas--
       (A) is the first State in the United States to have a 
     comprehensive statewide initiative to combat and prevent 
     childhood obesity by--
       (i) annually measuring the body mass index of public school 
     children in the State from kindergarten through 12th grade; 
     and
       (ii) providing that information to the parents of each 
     child with associated information about the health 
     implications of the body mass index of the child;
       (B) maintains, analyzes, and reports on annual and 
     longitudinal body mass index data for the public school 
     children in the State; and
       (C) develops and implements appropriate interventions at 
     the community and school level to address obesity, the risk 
     of obesity, and the condition of being overweight, including 
     efforts to encourage healthy eating habits and increased 
     physical activity.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the State of Arkansas, in partnership with the 
     University of Arkansas for Medical Sciences and the Arkansas 
     Center for Health Improvement, should be commended for its 
     leadership in combating childhood obesity; and
       (2) the efforts of the State of Arkansas to implement a 
     statewide initiative to combat and prevent childhood obesity 
     are exemplary and could serve as a model for States across 
     the United States.

                        TITLE V--IMPLEMENTATION

     SEC. 501. GUIDANCE AND REGULATIONS.

       (a) Guidance.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     issue guidance to implement the amendments made by sections 
     102, 103, 104, 105, 106, 107, 111, 116, 119(c), 119(g), 120, 
     126(b), 126(c), 201, 203(a)(3), 203(b), 203(c)(5), 203(e)(3), 
     203(e)(4), 203(e)(5), 203(e)(6), 203(e)(7), 203(e)(10), and 
     203(h)(1).
       (b) Interim Final Regulations.--The Secretary may 
     promulgate interim final regulations to implement the 
     amendments described in subsection (a).
       (c) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall promulgate final 
     regulations to implement the amendments described in 
     subsection (a).

     SEC. 502. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act take effect on 
     the date of enactment of this Act.
       (b) Special Effective Dates.--
       (1) July 1, 2004.--The amendments made by sections 106, 
     107, 126(c), and 201 take effect on July 1, 2004.
       (2) October 1, 2004.--The amendments made by sections 
     119(c), 119(g), 202(a), 203(a), 203(b), 203(c)(1), 203(c)(5), 
     203(e)(5), 203(e)(8), 203(e)(10), 203(e)(13), 203(f), 
     203(h)(1), and 203(h)(2) take effect on October 1, 2004.
       (3) January 1, 2005.--The amendments made by sections 
     116(f)(1) and 116(f)(3) take effect on January 1, 2005.
       (4) July 1, 2005.--The amendments made by sections 102, 
     104, 105, 111, and 126(b) take effect on July 1, 2005.
       (5) October 1, 2005.--The amendments made by sections 
     116(d) and 203(e)(9) take effect on October 1, 2005.
  Mr. CRAPO. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. WARNER. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________