[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.
____________________