[House Report 105-786]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     105-786
_______________________________________________________________________


 
    WILLIAM F. GOODLING CHILD NUTRITION REAUTHORIZATION ACT OF 1998

                                _______
                                

                October 6, 1998.--Ordered to be printed

_______________________________________________________________________


Mr. Goodling, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 3874]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
3874), to amend the National School Lunch Act and the Child 
Nutrition Act of 1966 to provide children with increased access 
to food and nutrition assistance, to simplify program 
operations and improve program management, to extend certain 
authorities contained in those Acts through fiscal year 2003, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``William F. 
Goodling Child Nutrition Reauthorization Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

Sec. 1. Short title; table of contents.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 101. Provision of commodities.
Sec. 102. Nutritional and other program requirements.
Sec. 103. Special assistance.
Sec. 104. Miscellaneous provisions and definitions.
Sec. 105. Summer food service program for children.
Sec. 106. Commodity distribution program.
Sec. 107. Child and adult care food program.
Sec. 108. Meal supplements for children in afterschool care.
Sec. 109. Pilot projects.
Sec. 110. Training, technical assistance, and food service management 
          institute.
Sec. 111. Compliance and accountability.
Sec. 112. Information clearinghouse.
Sec. 113. Accommodation of the special dietary needs of individuals with 
          disabilities.

             TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

Sec. 201. School breakfast program authorization.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants, and 
          children.
Sec. 204. Nutrition education and training.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301. Information from recipient agencies.
Sec. 302. Food distribution.

                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

SEC. 101. PROVISION OF COMMODITIES.

    (a) In General.--Section 6 of the National School Lunch Act 
(42 U.S.C. 1755) is amended--
            (1) by striking subsections (c) and (d); and
            (2) by redesignating subsections (e), (f), and (g) 
        as subsections (c), (d), and (e), respectively.
    (b) Conforming Amendments.--The National School Lunch Act 
is amended by striking ``section 6(e)'' each place it appears 
in sections 14(f), 16(a), and 17(h)(1)(B) (42 U.S.C. 1762a(f), 
1765(a), 1766(h)(1)(B)) and inserting ``section 6(c)''.

SEC. 102. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    (a) Technical Amendments.--Section 9(f) of the National 
School Lunch Act (42 U.S.C. 1758(f)) is amended--
            (1) in paragraph (2), by striking ``subparagraph 
        (A)'' and inserting ``paragraph (1)''; and
            (2) in paragraphs (3) and (4), by striking ``this 
        paragraph'' each place it appears and inserting ``this 
        subsection''.
    (b) Waiver of Requirement for Weighted Averages for 
Nutrient Analysis.--Section 9(f) of the National School Lunch 
Act (42 U.S.C. 1758(f)) is amended by adding at the end the 
following:
            ``(5) Waiver of requirement for weighted averages 
        for nutrient analysis.--During the period ending on 
        September 30, 2003, the Secretary shall not require the 
        use of weighted averages for nutrient analysis of menu 
        items and foods offered or served as part of a meal 
        offered or served under the school lunch program under 
        this Act or the school breakfast program under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773).''.
    (c) Requirement for Food Safety Inspections.--Section 9 of 
the National School Lunch Act (42 U.S.C. 1758) is amended by 
adding at the end the following:
    ``(h) Food Safety Inspections.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a school participating in the school lunch program 
        under this Act or the school breakfast program under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773) shall, at least once during each school year, 
        obtain a food safety inspection conducted by a State or 
        local governmental agency responsible for food safety 
        inspections.
            ``(2) Exception.--Paragraph (1) shall not apply to 
        a school if a food safety inspection of the school is 
        required by a State or local governmental agency 
        responsible for food safety inspections.''.
    (d) Single Permanent Agreement Between State Agency and 
School Food Authority; Common Claims Form.--Section 9 of the 
National School Lunch Act (42 U.S.C. 1758), as amended by 
subsection (c), is further amended by adding at the end the 
following:
    ``(i) Single Permanent Agreement Between State Agency and 
School Food Authority; Common Claims Form.--
            ``(1) In general.--If a single State agency 
        administers any combination of the school lunch program 
        under this Act, the school breakfast program under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773), the summer food service program for children 
        under section 13 of this Act, or the child and adult 
        care food program under section 17 of this Act, the 
        agency shall--
                    ``(A) require each school food authority to 
                submit to the State agency a single agreement 
                with respect to the operation by the authority 
                of the programs administered by the State 
                agency; and
                    ``(B) use a common claims form with respect 
                to meals and supplements served under the 
                programs administered by the State agency.
            ``(2) Additional requirement.--The agreement 
        described in paragraph (1)(A) shall be a permanent 
        agreement that may be amended as necessary.''.

SEC. 103. SPECIAL ASSISTANCE.

    (a) School Eligibility Requirements for Payments.--Section 
11(a)(1) of the National School Lunch Act (42 U.S.C. 
1759a(a)(1)) is amended--
            (1) in subparagraph (C)--
                    (A) in clause (i)(I), by striking ``3 
                successive school years'' each place it appears 
                and inserting ``4 successive school years''; 
                and
                    (B) in clauses (ii) and (iii), by striking 
                ``3-school-year period'' each place it appears 
                and inserting ``4-school-year period'';
            (2) in subparagraph (D)--
                    (A) in clause (i)--
                            (i) by striking ``3-school-year 
                        period'' each place it appears and 
                        inserting ``4-school-year period''; and
                            (ii) by striking ``2 school years'' 
                        and inserting ``4 school years'';
                    (B) in clause (ii)--
                            (i) by striking the first sentence;
                            (ii) by striking ``The school'' and 
                        inserting ``A school described in 
                        clause (i)''; and
                            (iii) by striking ``5-school-year 
                        period'' each place it appears and 
                        inserting ``4-school-year period''; and
                    (C) in clause (iii), by striking ``5-
                school-year period'' and inserting ``4-school-
                year period''; and
            (3) in subparagraph (E), by striking clause (iii).
    (b) Adjustments to Payment Rates.--
            (1) In general.--Section 11(a)(3)(B) of the 
        National School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is 
        amended--
                    (A) by striking ``(B) The annual'' and 
                inserting the following:
                    ``(B) Computation of adjustment.--
                            ``(i) In general.--The annual'';
                    (B) by striking ``Each annual'' and 
                inserting the following:
                            ``(ii) Basis.--Each annual'';
                    (C) by striking ``The adjustments'' and 
                inserting the following:
                            ``(iii) Rounding.--
                                    ``(I) Through june 30, 
                                1999.--For the period ending 
                                June 30, 1999, the 
                                adjustments''; and
                    (D) by adding at the end the following:
                                    ``(II) July 1, 1999, and 
                                thereafter.--On July 1, 1999, 
                                and on each subsequent July 1, 
                                the national average payment 
                                rates for meals and supplements 
                                shall be adjusted to the 
                                nearest lower cent increment 
                                and shall be based on the 
                                unrounded amounts for the 
                                preceding 12-month period.''.
            (2) Conforming amendments.--Section 4(b) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1773(b)) is 
        amended--
                    (A) in the second sentence of paragraph 
                (1)(B), by striking ``adjusted to the nearest 
                one-fourth cent,''; and
                    (B) in paragraph (2)(B)(ii), by striking 
                ``, which shall be adjusted'' and all that 
                follows and inserting ``(as adjusted pursuant 
                to section 11(a)(3)(B) of the National School 
                Lunch Act (42 U.S.C 1759a(a)(3)(B))).''.
    (c) Information and Assistance Concerning Reimbursement 
Options.--
            (1) In general.--Section 11 of the National School 
        Lunch Act (42 U.S.C. 1759a) is amended by adding at the 
        end the following:
    ``(f) Information and Assistance Concerning Reimbursement 
Options.--
            ``(1) In general.--From funds made available under 
        paragraph (3), the Secretary shall provide grants to 
        not more than 10 State agencies in each of fiscal years 
        2000 and 2001 to enable the agencies, in accordance 
        with criteria established by the Secretary, to--
                    ``(A) identify separately in a list--
                            ``(i) schools that are most likely 
                        to benefit from electing to receive 
                        special assistance under subparagraph 
                        (C) or (E) of subsection (a)(1); and
                            ``(ii) schools that may benefit 
                        from electing to receive special 
                        assistance under subparagraph (C) or 
                        (E) of subsection (a)(1);
                    ``(B) make the list of schools identified 
                under this subsection available to each school 
                district within the State and to the public;
                    ``(C) provide technical assistance to 
                schools, or school districts containing the 
                schools, to enable the schools to evaluate and 
                receive special assistance under subparagraph 
                (C) or (E) of subsection (a)(1);
                    ``(D) take any other actions the Secretary 
                determines are consistent with receiving 
                special assistance under subparagraph (C) or 
                (E) of subsection (a)(1) and receiving a grant 
                under this subsection; and
                    ``(E) as soon as practicable after receipt 
                of the grant, but not later than September 30, 
                2001, take the actions described in 
                subparagraphs (A) through (D).
            ``(2) Report.--
                    ``(A) In general.--Not later than January 
                1, 2002, the Secretary shall submit to the 
                Committee on Education and the Workforce of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition and Forestry of the 
                Senate a report on the activities of the State 
                agencies receiving grants under this 
                subsection.
                    ``(B) Contents.--In the report, the 
                Secretary shall specify--
                            ``(i) the number of schools 
                        identified as likely to benefit from 
                        electing to receive special assistance 
                        under subparagraph (C) or (E) of 
                        subsection (a)(1);
                            ``(ii) the number of schools 
                        identified under this subsection that 
                        have elected to receive special 
                        assistance under subparagraph (C) or 
                        (E) of subsection (a)(1); and
                            ``(iii) a description of how the 
                        funds and technical assistance made 
                        available under this subsection have 
                        been used.
            ``(3) Funding.--Out of any moneys in the Treasury 
        not otherwise appropriated, the Secretary of the 
        Treasury shall provide to the Secretary $2,250,000 for 
        each of fiscal years 2000 and 2001 to carry out this 
        subsection. The Secretary shall be entitled to receive 
        the funds and shall accept the funds, without further 
        appropriation.''.
            (2) Technical amendments.--The National School 
        Lunch Act is amended in the second sentence of each of 
        sections 21(e)(2)(A) and 26(d) (42 U.S.C. 1769b-
        1(e)(2)(A), 1769g(d)) by inserting at the end before 
        the period ``, without further appropriation''.

SEC. 104. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

    (a) Adjustments to Reimbursement Rates.--Section 12(f) of 
the National School Lunch Act (42 U.S.C. 1760(f)) is amended--
            (1) by striking ``school breakfasts and lunches'' 
        and inserting ``breakfasts, lunches, suppers, and 
        supplements'';
            (2) by striking ``sections 4 and 11'' and inserting 
        ``sections 4, 11, 13, and 17''; and
            (3) by striking ``lunches and breakfasts'' each 
        place it appears and inserting ``meals and 
        supplements''.
    (b) Criminal Penalties.--Section 12(g) of the National 
School Lunch Act (42 U.S.C. 1760(g)) is amended by striking 
``$10,000'' and inserting ``$25,000''.
    (c) Food and Nutrition Projects.--Section 12(m) of the 
National School Lunch Act (42 U.S.C. 1760(m)) is amended by 
striking ``1998'' each place it appears and inserting ``2003''.
    (d) Buy American.--Section 12 of the National School Lunch 
Act (42 U.S.C. 1760) is amended by adding at the end the 
following:
    ``(n) Buy American.--
            ``(1) Definition of domestic commodity or 
        product.--In this subsection, the term `domestic 
        commodity or product' means--
                    ``(A) an agricultural commodity that is 
                produced in the United States; and
                    ``(B) a food product that is processed in 
                the United States substantially using 
                agricultural commodities that are produced in 
                the United States.
            ``(2) Requirement.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall require that a school 
                food authority purchase, to the maximum extent 
                practicable, domestic commodities or products.
                    ``(B) Limitations.--Subparagraph (A) shall 
                apply only to--
                            ``(i) a school food authority 
                        located in the contiguous United 
                        States; and
                            ``(ii) a purchase of a domestic 
                        commodity or product for the school 
                        lunch program under this Act or the 
                        school breakfast program under section 
                        4 of the Child Nutrition Act of 1966 
                        (42 U.S.C. 1773).
            ``(3) Applicability to hawaii.--Paragraph (2)(A) 
        shall apply to a school food authority in Hawaii with 
        respect to domestic commodities or products that are 
        produced in Hawaii in sufficient quantities to meet the 
        needs of meals provided under the school lunch program 
        under this Act or the school breakfast program under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773).''.
    (e) Procurement Contracts.--Section 12 of the National 
School Lunch Act (42 U.S.C. 1760), as amended by subsection 
(d), is further amended by adding at the end the following:
    ``(o) Procurement Contracts.--In acquiring a good or 
service for programs under this Act or the Child Nutrition Act 
of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 of that 
Act (42 U.S.C. 1786)), a State, State agency, school, or school 
food authority may enter into a contract with a person that has 
provided specification information to the State, State agency, 
school, or school food authority for use in developing contract 
specifications for acquiring such good or service.''.

SEC. 105. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Establishment of Site Limitation.--Section 13(a)(7)(B) 
of the National School Lunch Act (42 U.S.C. 1761(a)(7)(B)) is 
amended by striking clause (i) and inserting the following:
            ``(i) operate--
                    ``(I) not more than 25 sites, with not more 
                than 300 children being served at any 1 site; 
                or
                    ``(II) with a waiver granted by the State 
                agency under standards developed by the 
                Secretary, with not more than 500 children 
                being served at any 1 site;''.
    (b) Elimination of Meal Contracting Restrictions, 
Indication of Interest Requirement, and Vendor Registration 
Requirements.--Section 13 of the National School Lunch Act (42 
U.S.C. 1761) is amended--
            (1) in subsection (a)(7)(B)--
                    (A) by striking clauses (ii) and (iii); and
                    (B) by redesignating clauses (iv) through 
                (vii) as clauses (ii) through (v) respectively; 
                and
            (2) in subsection (l)--
                    (A) in paragraph (1)--
                            (i) in the first sentence--
                                    (I) by striking ``(other 
                                than private nonprofit 
                                organizations eligible under 
                                subsection (a)(7))''; and
                                    (II) by striking ``only 
                                with food service management 
                                companies registered with the 
                                State in which they operate'' 
                                and inserting ``with food 
                                service management companies''; 
                                and
                            (ii) by striking the last sentence;
                    (B) in paragraph (2)--
                            (i) in the first sentence, by 
                        striking ``shall'' and inserting 
                        ``may''; and
                            (ii) by striking the second and 
                        third sentences;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) 
                as paragraphs (3) and (4), respectively.
    (c) Offer Versus Serve.--Section 13(f)(7) of the National 
School Lunch Act (42 U.S.C. 1761(f)(7)) is amended in the first 
sentence by striking ``attending a site on school premises 
operated directly by the authority''.
    (d) Reauthorization of Program.--Section 13(q) of the 
National School Lunch Act (42 U.S.C. 1761(q)) is amended by 
striking ``1998'' and inserting ``2003''.
    (e) Technical Amendment.--
            (1) In general.--Section 706(j)(1) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193; 110 Stat. 2293) is amended 
        by striking ``methods of assessing'' and inserting 
        ``methods for assessing''.
            (2) Effective date.--The amendment made by 
        paragraph (1) takes effect on January 1, 1997.

SEC. 106. COMMODITY DISTRIBUTION PROGRAM.

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

SEC. 107. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Eligibility of Institutions.--Section 17(a) of the 
National School Lunch Act (42 U.S.C. 1766(a)) is amended--
            (1) in the fourth sentence, by striking 
        ``Reimbursement'' and inserting ``Except as provided in 
        subsection (r), reimbursement''; and
            (2) in the sixth sentence, by striking paragraph 
        (1) and inserting the following:
            ``(1) an institution (except a school or family or 
        group day care home sponsoring organization) or family 
        or group day care home shall--
                    ``(A)(i) be licensed, or otherwise have 
                approval, by the appropriate Federal, State, or 
                local licensing authority; or
                    ``(ii) be in compliance with appropriate 
                procedures for renewing participation in the 
                program, as prescribed by the Secretary, and 
                not be the subject of information possessed by 
                the State indicating that the license of the 
                institution or home will not be renewed;
                    ``(B) if Federal, State, or local licensing 
                or approval is not available--
                            ``(i) meet any alternate approval 
                        standards established by the 
                        appropriate State or local governmental 
                        agency; or
                            ``(ii) meet any alternate approval 
                        standards established by the Secretary 
                        after consultation with the Secretary 
                        of Health and Human Services; or
                    ``(C) if the institution provides care to 
                school children outside of school hours and 
                Federal, State, or local licensing or approval 
                is not required for the institution, meet State 
                or local health and safety standards; and''.
    (b) Automatic Eligibility for Even Start Program 
Participants.--Section 17(c)(6) of the National School Lunch 
Act (42 U.S.C. 1766(c)(6)) is amended--
            (1) in subparagraph (A), by striking ``(A)''; and
            (2) by striking subparagraph (B).
    (c) Periodic Site Visits.--Section 17(d) of the National 
School Lunch Act (42 U.S.C. 1766(d)) is amended--
            (1) in the second sentence of paragraph (1), by 
        inserting after ``if it'' the following: ``has been 
        visited by a State agency prior to approval and it''; 
        and
            (2) in paragraph (2)(A)--
                    (A) by striking ``that allows'' and 
                inserting ``that--
            ``(i) allows'';
                    (B) by striking the period at the end and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(ii) requires periodic site visits to private 
        institutions that the State agency determines have a 
        high probability of program abuse.''.
    (d) Tax Exempt Status and Removal of Notification 
Requirement for Incomplete Applications.--Section 17(d)(1) of 
the National School Lunch Act (42 U.S.C. 1766(d)(1)) is 
amended--
            (1) by inserting after the third sentence the 
        following: ``An institution moving toward compliance 
        with the requirement for tax exempt status shall be 
        allowed to participate in the child and adult care food 
        program for a period of not more than 180 days, except 
        that a State agency may grant a single extension of not 
        to exceed an additional 90 days if the institution 
        demonstrates, to the satisfaction of the State agency, 
        that the inability of the institution to obtain tax 
        exempt status within the 180-day period is due to 
        circumstances beyond the control of the institution.''; 
        and
            (2) by striking the last sentence.
    (e) Use of Funds for Audits.--Section 17(i) of the National 
School Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``2 
percent'' and inserting ``1.5 percent (except, in the case of 
each of fiscal years 2005 through 2007, 1 percent)''.
    (f) Permanent Authorization of Demonstration Project.--
Section 17(p) of the National School Lunch Act (42 U.S.C. 
1766(p)) is amended by striking paragraphs (4) and (5).
    (g) Management Support.--Section 17 of the National School 
Lunch Act (42 U.S.C. 1766) is amended by adding at the end the 
following:
    ``(q) Management Support.--
            ``(1) Technical and training assistance.--In 
        addition to the training and technical assistance that 
        is provided to State agencies under other provisions of 
        this Act and the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.), the Secretary shall provide training and 
        technical assistance in order to assist the State 
        agencies in improving their program management and 
        oversight under this section.
            ``(2) Funding.--For each of fiscal years 1999 
        through 2003, the Secretary shall reserve to carry out 
        paragraph (1) $1,000,000 of the amounts made available 
        to carry out this section.''.
    (h) Participation by At-Risk Child Care Programs.--Section 
17 of the National School Lunch Act (42 U.S.C. 1766), as 
amended by subsection (g), is further amended by adding at the 
end the following:
    ``(r) Program for At-Risk School Children.--
            ``(1) Definition of at-risk school child.--In this 
        subsection, the term `at-risk school child' means a 
        school child who--
                    ``(A) is not more than 18 years of age, 
                except that the age limitation provided by this 
                subparagraph shall not apply to a child 
                described in section 12(d)(1)(A); and
                    ``(B) participates in a program authorized 
                under this section operated at a site located 
                in a geographical area served by a school in 
                which at least 50 percent of the children 
                enrolled are certified as eligible to receive 
                free or reduced price school meals under this 
                Act or the Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.).
            ``(2) Participation in child and adult care food 
        program.--An institution may participate in the program 
        authorized under this section only if the institution 
        provides supplements under a program--
                    ``(A) organized primarily to provide care 
                to at-risk school children during after-school 
                hours, weekends, or holidays during the regular 
                school year; and
                    ``(B) with an educational or enrichment 
                purpose.
            ``(3) Administration.--Except as otherwise provided 
        in this subsection, the other provisions of this 
        section apply to an institution described in paragraph 
        (2).
            ``(4) Supplement reimbursement.--
                    ``(A) Limitations.--An institution may 
                claim reimbursement under this subsection only 
                for--
                            ``(i) a supplement served under a 
                        program organized primarily to provide 
                        care to at-risk school children during 
                        after-school hours, weekends, or 
                        holidays during the regular school 
                        year; and
                            ``(ii) 1 supplement per child per 
                        day.
                    ``(B) Rate.--A supplement shall be 
                reimbursed under this subsection at the rate 
                established for a free supplement under 
                subsection (c)(3).
                    ``(C) No charge.--A supplement claimed for 
                reimbursement under this subsection shall be 
                served without charge.''.
    (i) WIC Information.--Section 17 of the National School 
Lunch Act (42 U.S.C. 1766), as amended by subsection (h), is 
further amended by adding at the end the following:
    ``(s) Information Concerning the Special Supplemental 
Nutrition Program for Women, Infants, and Children.--
            ``(1) In general.--The Secretary shall provide each 
        State agency administering a child and adult care food 
        program under this section with information concerning 
        the special supplemental nutrition program for women, 
        infants, and children authorized under section 17 of 
        the Child Nutrition Act of 1966 (42 U.S.C. 1786).
            ``(2) Requirements for state agencies.--Each State 
        agency shall ensure that each participating family and 
        group day care home and child care center (other than 
        an institution providing care to school children 
        outside school hours)--
                    ``(A) receives materials that include--
                            ``(i) a basic explanation of the 
                        importance and benefits of the special 
                        supplemental nutrition program for 
                        women, infants, and children;
                            ``(ii) the maximum State income 
                        eligibility standards, according to 
                        family size, for the program; and
                            ``(iii) information concerning how 
                        benefits under the program may be 
                        obtained;
                    ``(B) receives periodic updates of the 
                information described in subparagraph (A); and
                    ``(C) provides the information described in 
                subparagraph (A) to parents of enrolled 
                children at enrollment.''.
    (j) Transfer of Homeless Programs.--
            (1) In general.--Section 17 of the National School 
        Lunch Act (42 U.S.C. 1766), as amended by subsection 
        (i), is further amended by adding at the end the 
        following:
    ``(t) Participation by Emergency Shelters.--
            ``(1) Definition of emergency shelter.--In this 
        subsection, the term `emergency shelter' means--
                    ``(A) an emergency shelter (as defined in 
                section 321 of the Stewart B. McKinney Homeless 
                Assistance Act (42 U.S.C. 11351)); or
                    ``(B) a site operated by the shelter.
            ``(2) Administration.--Except as otherwise provided 
        in this subsection, an emergency shelter shall be 
        eligible to participate in the program authorized under 
        this section in accordance with the terms and 
        conditions applicable to eligible institutions 
        described in subsection (a).
            ``(3) Licensing requirements.--The licensing 
        requirements contained in subsection (a)(1) shall not 
        apply to an emergency shelter.
            ``(4) Health and safety standards.--To be eligible 
        to participate in the program authorized under this 
        section, an emergency shelter shall comply with 
        applicable State or local health and safety standards.
            ``(5) Meal or supplement reimbursement.--
                    ``(A) Limitations.--An emergency shelter 
                may claim reimbursement under this subsection--
                            ``(i) only for a meal or supplement 
                        served to children residing at an 
                        emergency shelter, if the children 
                        are--
                                    ``(I) not more than 12 
                                years of age;
                                    ``(II) children of migrant 
                                workers, if the children are 
                                not more than 15 years of age; 
                                or
                                    ``(III) children with 
                                disabilities; and
                            ``(ii) for not more than 3 meals, 
                        or 2 meals and a supplement, per child 
                        per day.
                    ``(B) Rate.--A meal or supplement eligible 
                for reimbursement shall be reimbursed at the 
                rate at which free meals and supplements are 
                reimbursed under subsection (c).
                    ``(C) No charge.--A meal or supplement 
                claimed for reimbursement shall be served 
                without charge.''.
            (2) Conforming amendments.--
                    (A) Section 13(a)(3)(C) of the National 
                School Lunch Act (42 U.S.C. 1761(a)(3)(C)) is 
                amended--
                            (i) in clause (i), by adding ``or'' 
                        at the end;
                            (ii) by striking clause (ii); and
                            (iii) by redesignating clause (iii) 
                        as clause (ii).
                    (B) Section 17(a) of the National School 
                Lunch Act (42 U.S.C. 1766(a)) is amended in the 
                third sentence--
                            (i) by striking ``and public'' and 
                        inserting ``public''; and
                            (ii) by inserting before the period 
                        at the end the following: ``, and 
                        emergency shelters (as provided in 
                        subsection (t))''.
                    (C)(i) Section 17B of the National School 
                Lunch Act (42 U.S.C. 1766b) is repealed.
                    (ii) Section 25(b)(1) of the National 
                School Lunch Act (42 U.S.C. 1769f(b)(1) is 
                amended--
                            (I) by striking subparagraph (D); 
                        and
                            (II) by redesignating subparagraphs 
                        (E) through (G) as subparagraphs (D) 
                        through (F), respectively.
            (3) Technical amendments.--
                    (A) Section 12(d) of the National School 
                Lunch Act (42 U.S.C. 1760(d)) is amended--
                            (i) in paragraph (1)(A), by 
                        striking ``mental or physical'' each 
                        place it appears; and
                            (ii) by adding at the end the 
                        following:
            ``(8) Disability.--The term `disability' has the 
        meaning given the term in the Rehabilitation Act of 
        1973 for purposes of title II of that Act (29 U.S.C. 
        760 et seq.).''.
                    (B) Section 13(a)(1) of the National School 
                Lunch Act (42 U.S.C. 1761(a)(1)) is amended in 
                subparagraph (D) of the second sentence--
                            (i) in clause (i), by striking ``to 
                        be mentally or physically handicapped'' 
                        and inserting ``to have a disability''; 
                        and
                            (ii) in clause (ii), by striking 
                        ``the mentally or physically 
                        handicapped'' and inserting 
                        ``individuals who have a disability''.
                    (C) Section 17(a) of the National School 
                Lunch Act (42 U.S.C. 1766(a)) is amended by 
                striking ``handicaps'' each place it appears 
                and inserting ``disabilities''.
                    (D) Section 15 of the Child Nutrition Act 
                of 1966 (42 U.S.C. 1784) is amended--
                            (i) in paragraph (6), by striking 
                        ``mental or physical handicaps'' each 
                        place it appears and inserting 
                        ``disabilities''; and
                            (ii) by adding at the end the 
                        following:
            ``(7) Disability.--The term `disability' has the 
        meaning given the term in the Rehabilitation Act of 
        1973 for purposes of title II of that Act (29 U.S.C. 
        760 et seq.).''.
            (4) Effective Date.--The amendments made by 
        paragraphs (1) and (2) take effect on July 1, 1999.

SEC. 108. MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL CARE.

    (a) General Authority.--Section 17A(a) of the National 
School Lunch Act (42 U.S.C. 1766a(a)) is amended--
            (1) in paragraph (1), by striking ``supplements 
        to'' and inserting ``supplements under a program 
        organized primarily to provide care for''; and
            (2) in paragraph (2), by striking subparagraph (C) 
        and inserting the following:
                    ``(C) operate afterschool programs with an 
                educational or enrichment purpose.''.
    (b) Eligible Children.--Section 17A(b) of the National 
School Lunch Act (42 U.S.C. 1766a(b)) is amended by striking 
``served to children'' and all that follows and inserting 
``served to school children who are not more than 18 years of 
age, except that the age limitation provided by this subsection 
shall not apply to a child described in section 12(d)(1)(A).''.
    (c) Reimbursement.--Section 17A(c) of the National School 
Lunch Act (42 U.S.C. 1766a(c)) is amended by striking ``(c) 
Reimbursement.--For'' and inserting the following:
    ``(c) Reimbursement.--
            ``(1) At-risk school children.--In the case of an 
        eligible child who is participating in a program 
        authorized under this section operated at a site 
        located in a geographical area served by a school in 
        which at least 50 percent of the children enrolled are 
        certified as eligible to receive free or reduced price 
        school meals under this Act or the Child Nutrition Act 
        of 1966 (42 U.S.C. 1771 et seq.), a supplement provided 
        under this section to the child shall be--
                    ``(A) reimbursed at the rate at which free 
                supplements are reimbursed under section 
                17(c)(3); and
                    ``(B) served without charge.
            ``(2) Other school children.--In the case of an 
        eligible child who is participating in a program 
        authorized under this section at a site that is not 
        described in paragraph (1), for''.

SEC. 109. PILOT PROJECTS.

    (a) In General.--Section 18 of the National School Lunch 
Act (42 U.S.C. 1769) is amended by striking subsections (c), 
(e), (g), and (h).
    (b) Breakfast Pilot Projects.--Section 18(i) of the 
National School Lunch Act (42 U.S.C. 1769(i)) is amended to 
read as follows:
    ``(i) Breakfast Pilot Projects.--
            ``(1) In general.--Subject to the availability of 
        funds made available under paragraph (10), for a period 
        of 3 successive school years, the Secretary shall make 
        grants to State agencies to conduct pilot projects in 
        elementary schools under the jurisdiction of not more 
        than 6 school food authorities approved by the 
        Secretary to--
                    ``(A) reduce paperwork, simplify meal 
                counting requirements, and make changes that 
                will increase participation in the school 
                breakfast program; and
                    ``(B) evaluate the effect of providing free 
                breakfasts to elementary school children, 
                without regard to family income, on 
                participation, academic achievement, attendance 
                and tardiness, and dietary intake over the 
                course of a day.
            ``(2) Nominations.--A State agency that seeks a 
        grant under this subsection shall submit to the 
        Secretary nominations of school food authorities to 
        participate in a pilot project under this subsection
            ``(3) Approval.--The Secretary shall approve for 
        participation in pilot projects under this subsection 
        elementary schools under the jurisdiction of not more 
        than 6 nominated school food authorities selected so as 
        to--
                    ``(A) provide for an equitable distribution 
                of pilot projects among urban and rural 
                elementary schools;
                    ``(B) provide for an equitable distribution 
                of pilot projects among elementary schools of 
                varying family income levels; and
                    ``(C) permit the evaluation of pilot 
                projects to distinguish the effects of the 
                pilot projects from other factors, such as 
                changes or differences in educational policies 
                or program.
            ``(4) Grants to school food authorities.--A State 
        agency receiving a grant under paragraph (1) shall make 
        grants to school food authorities to conduct the pilot 
        projects described in paragraph (1).
            ``(5) Duration of pilot projects.--Subject to the 
        availability of funds made available to carry out this 
        subsection, a school food authority receiving amounts 
        under a grant to conduct a pilot project described in 
        paragraph (1) shall conduct the project during a period 
        of 3 successive school years.
            ``(6) Waiver authority.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary may waive the 
                requirements of this Act and the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
                relating to counting of meals, applications for 
                eligibility, and related requirements that 
                would preclude the Secretary from making a 
                grant to conduct a pilot project under 
                paragraph (1).
                    ``(B) Nonwaivable requirements.--The 
                Secretary may not waive a requirement under 
                subparagraph (A) if the waiver would prevent a 
                program participant, a potential program 
                participant, or a school from receiving all of 
                the benefits and protections of this Act, the 
                Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
                seq.), or a Federal law (including a 
                regulation) that protects an individual 
                constitutional right or a statutory civil 
                right.
            ``(7) Requirements for participation in pilot 
        project.--To be eligible to participate in a pilot 
        project under this subsection--
                    ``(A) a State agency--
                            ``(i) shall submit an application 
                        to the Secretary at such time and in 
                        such manner as the Secretary shall 
                        establish to meet criteria the 
                        Secretary has established to enable a 
                        valid evaluation to be conducted; and
                            ``(ii) shall provide such 
                        information relating to the operation 
                        and results of the pilot project as the 
                        Secretary may reasonably require; and
                    ``(B) a school food authority--
                            ``(i) shall agree to serve all 
                        breakfasts at no charge to all children 
                        enrolled in participating elementary 
                        schools;
                            ``(ii) shall not have a history of 
                        violations of this Act or the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1771 
                        et seq.);
                            ``(iii) shall have, under the 
                        jurisdiction of the school food 
                        authority, a sufficient number of 
                        elementary schools that are not 
                        participating in the pilot projects to 
                        permit a valid evaluation of the 
                        effects of the pilot projects; and
                            ``(iv) shall meet all other 
                        requirements that the Secretary may 
                        reasonably require.
            ``(8) Evaluation of pilot projects.--
                    ``(A) In general.--The Secretary, acting 
                through the Administrator of the Food and 
                Nutrition Service, shall conduct an evaluation 
                of the pilot projects conducted by the school 
                food authorities selected for participation.
                    ``(B) Content.--The evaluation shall 
                include--
                            ``(i) a determination of the effect 
                        of participation in the pilot project 
                        on the academic achievement, attendance 
                        and tardiness, and dietary intake over 
                        the course of a day of participating 
                        children that is not attributable to 
                        changes in educational policies and 
                        practices; and
                            ``(ii) a determination of the 
                        effect that participation by elementary 
                        schools in the pilot project has on the 
                        proportion of students who eat 
                        breakfast and on the paperwork required 
                        to be completed by the schools.
                    ``(C) Report.--On completion of the pilot 
                projects and the evaluation, the Secretary 
                shall submit to the Committee on Education and 
                the Workforce of the House of Representatives 
                and the Committee on Agriculture, Nutrition, 
                and Forestry of the Senate a report describing 
                the results of the evaluation of the pilot 
                projects required under subparagraph (A).
            ``(9) Reimbursement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a school conducting a pilot 
                project under this subsection shall receive a 
                total Federal reimbursement under the school 
                breakfast program in an amount that is equal to 
                the total Federal reimbursement for the school 
                for the prior year under the program (adjusted 
                to reflect changes in the series for food away 
                from home of the Consumer Price Index for All 
                Urban Consumers published by the Bureau of 
                Labor Statistics of the Department of Labor and 
                adjusted for fluctuations in enrollment).
                    ``(B) Excess needs.--Funds required for the 
                pilot project in excess of the level of 
                reimbursement received by the school for the 
                prior year (adjusted to reflect changes 
                described in subparagraph (A) and adjusted for 
                fluctuations in enrollment) may be taken from 
                any non-Federal source or from amounts provided 
                under this subsection.
            ``(10) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to 
                be appropriated such sums as are necessary to 
                carry out this subsection.
                    ``(B) Requirement.--No amounts may be 
                provided under this subsection unless 
                specifically provided in appropriations 
                Acts.''.
    (c) Conforming Amendments.--
            (1) Section 18 of the National School Lunch Act (42 
        U.S.C. 1769), as amended by subsections (a) and (b), is 
        further amended by redesignating subsections (d), (f), 
        and (i) as subsections (c), (d), and (e), respectively.
            (2) Section 101(b) of the Child Nutrition 
        Amendments of 1992 (42 U.S.C. 1769 note; Public Law 
        102-342) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(1)''; and
                            (ii) by striking ``other than those 
                        required under section 18(c) of the 
                        National School Lunch Act (42 U.S.C 
                        1769(c)) to identify other'' and 
                        inserting ``to identify''; and
                    (B) by striking paragraph (2).

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

    (a) Technical Amendments.--Section 21(c)(2) of the National 
School Lunch Act (42 U.S.C. 1769b-1(c)(2)) is amended by 
striking ``of section 24'' each place it appears in 
subparagraphs (F) and (H) and inserting ``established by the 
Secretary''.
    (b) Training and Technical Assistance.--Section 21(e)(1) of 
the National School Lunch Act (42 U.S.C. 1769b-1(e)(1)) is 
amended by striking ``1998'' and inserting ``2003''.
    (c) Food Service Management Institute.--Section 21(e)(2)(A) 
of the National School Lunch Act (42 U.S.C. 1769b-1(e)(2)(A)) 
is amended in the first sentence by striking ``and $2,000,000 
for fiscal year 1996 and each subsequent fiscal year,'' and 
inserting ``$2,000,000 for each of fiscal years 1996 through 
1998, and $3,000,000 for fiscal year 1999 and each subsequent 
fiscal year,''.

SEC. 111. COMPLIANCE AND ACCOUNTABILITY.

    Section 22(d) of the National School Lunch Act (42 U.S.C. 
1769c(d)) is amended by striking ``1996'' and inserting 
``2003''.

SEC. 112. INFORMATION CLEARINGHOUSE.

    Section 26(d) of the National School Lunch Act (42 U.S.C. 
1769g(d)) is amended in the first sentence by striking ``and 
$100,000 for fiscal year 1998'' and inserting ``$100,000 for 
fiscal year 1998, and $166,000 for each of fiscal years 1999 
through 2003''.

SEC. 113. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS 
                    WITH DISABILITIES.

    Section 27 of the National School Lunch Act (42 U.S.C. 
1769h) is amended to read as follows:

``SEC. 27. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS 
                    WITH DISABILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Covered program.--The term `covered program' 
        means--
                    ``(A) the school lunch program authorized 
                under this Act;
                    ``(B) the school breakfast program 
                authorized under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773); and
                    ``(C) any other program authorized under 
                this Act or the Child Nutrition Act of 1966 
                (except for section 17) that the Secretary 
                determines is appropriate.
            ``(2) Eligible entity.--The term `eligible entity' 
        means a school food authority, institution, or service 
        institution that participates in a covered program.
    ``(b) Activities.--The Secretary may carry out activities 
to help accommodate the special dietary needs of individuals 
with disabilities who are participating in a covered program. 
The activities may include--
            ``(1) developing and disseminating to State 
        agencies guidance and technical assistance materials;
            ``(2) conducting training of State agencies and 
        eligible entities; and
            ``(3) providing grants to State agencies and 
        eligible entities.
    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for each of fiscal years 1999 through 
2003.''.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

SEC. 201. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

SEC. 202. STATE ADMINISTRATIVE EXPENSES.

    (a) Homeless Shelters.--Section 7(a)(5)(B) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)(B)) is amended to 
read as follows:
                    ``(B) Reallocation of funds.--
                            ``(i) Return to secretary.--For 
                        each fiscal year, any amounts 
                        appropriated that are not obligated or 
                        expended during the fiscal year and are 
                        not carried over for the succeeding 
                        fiscal year under subparagraph (A) 
                        shall be returned to the Secretary.
                            ``(ii) Reallocation by secretary.--
                        The Secretary shall allocate, for 
                        purposes of administrative costs, any 
                        remaining amounts among States that 
                        demonstrate a need for the amounts.''.
    (b) Elimination of 10 Percent Transfer Limitation.--Section 
7(a)(6) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(a)(6)) is amended to read as follows:
            ``(6) Use of administrative funds.--Funds available 
        to a State under this subsection and under section 
        13(k)(1) of the National School Lunch Act (42 U.S.C. 
        1761(k)(1)) may be used by the State for the costs of 
        administration of the programs authorized under this 
        Act (except for the programs authorized under sections 
        17 and 21) and the National School Lunch Act (42 U.S.C. 
        1751 et seq.) without regard to the basis on which the 
        funds were earned and allocated.''.
    (c) Reauthorization of Program.--Section 7(g) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776(g)) is amended by 
striking ``1998'' and inserting ``2003''.

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

    (a) Additional Requirements for Applicants.--
            (1) Physical presence requirement.--Section 
        17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(d)(3)) is amended by adding at the end the 
        following:
                    ``(C) Physical presence.--
                            ``(i) In general.--Except as 
                        provided in clause (ii) and subject to 
                        the requirements of the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 
                        12101 et seq.) and section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        794), each individual seeking 
                        certification or recertification for 
                        participation in the program shall be 
                        physically present at each 
                        certification or recertification 
                        determination in order to determine 
                        eligibility under the program.
                            ``(ii) Waivers.--If the agency 
                        determines that the requirement of 
                        clause (i) would present an 
                        unreasonable barrier to participation, 
                        a local agency may waive the 
                        requirement of clause (i) with respect 
                        to--
                                    ``(I) an infant or child 
                                who--
                                            ``(aa) was present 
                                        at the initial 
                                        certification visit; 
                                        and
                                            ``(bb) is receiving 
                                        ongoing health care 
                                        from a provider other 
                                        than the local agency; 
                                        or
                                    ``(II) an infant or child 
                                who--
                                            ``(aa) was present 
                                        at the initial 
                                        certification visit;
                                            ``(bb) was present 
                                        at a certification or 
                                        recertification 
                                        determination within 
                                        the 1-year period 
                                        ending on the date of 
                                        the certification or 
                                        recertification 
                                        determination described 
                                        in clause (i); and
                                            ``(cc) has 1 or 
                                        more parents who 
                                        work.''.
            (2) Income documentation requirement.--Section 
        17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(d)(3)), as amended by paragraph (1), is further 
        amended by adding at the end the following:
                    ``(D) Income documentation.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), in order to 
                        participate in the program pursuant to 
                        clause (i) of paragraph (2)(A), an 
                        individual seeking certification or 
                        recertification for participation in 
                        the program shall provide documentation 
                        of family income.
                            ``(ii) Waivers.--A State agency may 
                        waive the documentation requirement of 
                        clause (i), in accordance with criteria 
                        established by the Secretary, with 
                        respect to--
                                    ``(I) an individual for 
                                whom the necessary 
                                documentation is not available; 
                                or
                                    ``(II) an individual, such 
                                as a homeless woman or child, 
                                for whom the agency determines 
                                the requirement of clause (i) 
                                would present an unreasonable 
                                barrier to participation.''.
            (3) Adjunct documentation requirement.--Section 
        17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(d)(3)), as amended by paragraph (2), is further 
        amended by adding at the end the following:
                    ``(E) Adjunct documentation.--In order to 
                participate in the program pursuant to clause 
                (ii) or (iii) of paragraph (2)(A), an 
                individual seeking certification or 
                recertification for participation in the 
                program shall provide documentation of receipt 
                of assistance described in that clause.''.
    (b) Education and Educational Materials Relating to Effects 
of Drug and Alcohol Use.--Section 17(e)(1) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(e)(1)) is amended by 
addingat the end the following: ``A local agency participating 
in the program shall provide education or educational materials 
relating to the effects of drug and alcohol use by a pregnant, 
postpartum, or breastfeeding woman on the developing child of the 
woman.''.
    (c) Distribution of Nutrition Education Materials.--Section 
17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(e)(3)) is amended--
            (1) by striking ``(3) The'' and inserting the 
        following:
            ``(3) Nutrition education materials.--
                    ``(A) In general.--The''; and
            (2) by adding at the end the following:
                    ``(B) Sharing of materials.--The Secretary 
                may provide, in bulk quantity, nutrition 
                education materials (including materials 
                promoting breastfeeding) developed with funds 
                made available for the program authorized under 
                this section to State agencies administering 
                the commodity supplemental food program 
                authorized under sections 4(a) and 5 of the 
                Agriculture and Consumer Protection Act of 1973 
                (7 U.S.C. 612c note; Public Law 93-86) at no 
                cost to that program.''.
    (d) Use of Claims From Vendors and Participants.--Section 
17(f)(21) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)(21)) is amended to read as follows:
            ``(21) Use of claims from vendors and 
        participants.--A State agency may use funds recovered 
        from vendors and participants, as a result of a claim 
        arising under the program, to carry out the program 
        during--
                    ``(A) the fiscal year in which the claim 
                arises;
                    ``(B) the fiscal year in which the funds 
                are collected; and
                    ``(C) the fiscal year following the fiscal 
                year in which the funds are collected.''.
    (e) Individuals Participating at More Than 1 Site.--Section 
17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)) is 
amended by adding at the end the following:
            ``(23) Individuals participating at more than 1 
        site.--Each State agency shall implement a system 
        designed by the State agency to identify individuals 
        who are participating at more than 1 site under the 
        program.''.
    (f) Identification of High Risk Vendors; Compliance 
Investigations.--
            (1) In general.--Section 17(f) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(f)), as amended 
        by subsection (e), is further amended by adding at the 
        end the following:
            ``(24) High risk vendors.--Each State agency 
        shall--
                    ``(A) identify vendors that have a high 
                probability of program abuse; and
                    ``(B) conduct compliance investigations of 
                the vendors.''.
            (2) Regulations.--The Secretary of Agriculture 
        shall promulgate--
                    (A) not later than March 1, 1999, proposed 
                regulations to carry out section 17(f)(24) of 
                the Child Nutrition Act of 1966 (42 U.S.C. 
                1786(f)(24)), as added by paragraph (1); and
                    (B) not later than March 1, 2000, final 
                regulations to carry out section 17(f)(24) of 
                that Act.
    (g) Reauthorization of Program.--Section 17(g)(1) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended 
in the first sentence by striking ``1998'' and inserting 
``2003''.
    (h) Purchase of Breast Pumps.--Section 17(h)(1)(C) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(C)) is 
amended--
            (1) by striking ``(C) In'' and inserting the 
        following:
                    ``(C) Remaining amounts.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), in''; and
            (2) by adding at the end the following:
                            ``(ii) Breast pumps.--A State 
                        agency may use amounts made available 
                        under clause (i) for the purchase of 
                        breast pumps.''.
    (i) Nutrition Services and Administration.--
            (1) Allocation of amounts.--Section 17(h)(2)(A) of 
        the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(h)(2)(A)) is amended in the first sentence by 
        striking ``1998'' and inserting ``2003''.
            (2) Technical amendment.--Section 17(h)(2)(A)(iv) 
        of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(h)(2)(A)(iv)) is amended by striking ``, to the 
        extent funds are not already provided under 
        subparagraph (I)(v) for the same purpose,''.
            (3) Level of per-participant expenditure for 
        nutrition services and administration.--Section 
        17(h)(2)(B)(ii) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(h)(2)(B)(ii)) is amended by striking ``15 
        percent'' and inserting ``10 percent (except that the 
        Secretary may establish a higher percentage for State 
        agencies that are small)''.
            (4) Technical amendments.--Section 17(h)(3) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is 
        amended--
                    (A) in subparagraph (E), by striking ``In 
                the case'' and all that follows through 
                ``subsequent fiscal year,'' and inserting ``For 
                each fiscal year,''; and
                    (B) by striking subparagraphs (F) and (G).
            (5) Conversion of amounts for supplemental foods to 
        amounts for nutrition services and administration.--
        Section 17(h)(5)(A) of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786(h)(5)(A)) is amended in the matter 
        preceding clause (i) by striking ``achieves'' and all 
        that follows through ``such State agency may'' and 
        inserting ``submits a plan to reduce average food costs 
        per participant and to increase participation above the 
        level estimated for the State agency, the State agency 
        may, with the approval of the Secretary,''.
    (j) Infant Formula Procurement.--Section 17(h)(8)(A) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is 
amended by adding at the end the following:
                            ``(iii) Competitive bidding 
                        system.--A State agency using a 
                        competitive bidding system for infant 
                        formula shall award contracts to 
                        bidders offering the lowest net price 
                        unless the State agency demonstrates to 
                        the satisfaction of the Secretary that 
                        the weighted average retail price for 
                        different brands of infant formula in 
                        the State does not vary by more than 5 
                        percent.''.
    (k) Infrastructure and Breastfeeding Promotion and Support 
Activities.--Section 17(h)(10)(A) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(h)(10)(A)) is amended by striking ``1998'' 
and inserting ``2003''.
    (l) Consideration of Price Levels of Retail Stores for 
Participation in Program.--
            (1) In general.--Section 17(h) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by 
        adding at the end the following:
            ``(11) Consideration of price levels of retail 
        stores for participation in program.--
                    ``(A) In general.--For the purpose of 
                promoting efficiency and to contain costs under 
                the program, a State agency shall, in selecting 
                a retail store for participation in the 
                program, take into consideration the prices 
                that the store charges for foods under the 
                program as compared to the prices that other 
                stores charge for the foods.
                    ``(B) Subsequent price increases.--The 
                State agency shall establish procedures to 
                ensure that a retail store selected for 
                participation in the program does not 
                subsequently raise prices to levels that would 
                otherwise make the store ineligible for 
                participation in the program.''.
            (2) Regulations.--The Secretary of Agriculture 
        shall promulgate--
                    (A) not later than March 1, 1999, proposed 
                regulations to carry out section 17(h)(11) of 
                the Child Nutrition Act of 1966 (42 U.S.C. 
                1786(h)(11)), as added by paragraph (1); and
                    (B) not later than March 1, 2000, final 
                regulations to carry out section 17(h)(11) of 
                that Act.
    (m) Management Information System Plan.--Section 17(h) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)), as amended 
by subsection (l)(1), is further amended by adding at the end 
the following:
            ``(12) Management information system plan.--
                    ``(A) In general.--In consultation with 
                State agencies, vendors, and other interested 
                persons, the Secretary shall establish a long-
                range plan for the development and 
                implementation of management information 
                systems (including electronic benefit 
                transfers) to be used in carrying out the 
                program.
                    ``(B) Report.--Not later than 2 years after 
                the date of enactment of this paragraph, the 
                Secretary shall submit to the Committee on 
                Education and the Workforce of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate a report on actions taken to carry out 
                subparagraph (A).
                    ``(C) Interim period.--Prior to the date of 
                submission of the report of the Secretary 
                required under subparagraph (B), a State agency 
                may not require retail stores to pay the cost 
                of systems or equipment that may be required to 
                test electronic benefit transfer systems.''.
    (n) Use of Funds in Preceding and Subsequent Fiscal 
Years.--
            (1) In general.--Section 17(i)(3)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)) is 
        amended--
                    (A) by striking ``subparagraphs (B) and 
                (C)'' and inserting ``subparagraph (B)''; and
                    (B) by striking clauses (i) and (ii) and 
                inserting the following:
            ``(i)(I) not more than 1 percent (except as 
        provided in subparagraph (C)) of the amount of funds 
        allocated to a State agency under this section for 
        supplemental foods for a fiscal year may be expended by 
        the State agency for allowable expenses incurred under 
        this section for supplemental foods during the 
        preceding fiscal year; and
            ``(II) not more than 1 percent of the amount of 
        funds allocated to a State agency under this section 
        for nutrition services and administration for a fiscal 
        year may be expended by the State agency for allowable 
        expenses incurred under this section for supplemental 
        foods and nutrition services and administration during 
        the preceding fiscal year; and
            ``(ii)(I) for each fiscal year, of the amounts 
        allocated to a State agency for nutrition services and 
        administration, an amount equal to not more than 1 
        percent of the amount allocated to the State agency 
        under this section for the fiscal year may be expended 
        by the State agency for allowable expenses incurred 
        under this section for nutrition services and 
        administration during the subsequent fiscal year; and
            ``(II) for each fiscal year, of the amounts 
        allocated to a State agency for nutrition services and 
        administration, an amount equal to not more than \1/2\ 
        of 1 percent of the amount allocated to the State 
        agency under this section for the fiscal year may be 
        expended by the State agency, with the prior approval 
        of the Secretary, for the development of a management 
        information system, including an electronic benefit 
        transfer system, during the subsequent fiscal year.''.
            (2) Conforming amendments.--Section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786) is amended--
                    (A) in subsection (h)(10)(A), by inserting 
                after ``nutrition services and administration 
                funds'' the following: ``and supplemental foods 
                funds''; and
                    (B) in subsection (i)(3)--
                            (i) by striking subparagraphs (C) 
                        through (G); and
                            (ii) by redesignating subparagraph 
                        (H) as subparagraph (C).
    (o) Farmers' Market Nutrition Program.--
            (1) Matching requirement.--Section 17(m)(3) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is 
        amended in the first sentence by inserting ``program 
        income or'' after ``satisfied from''.
            (2) Criteria for additional funds.--Section 
        17(m)(6)(C) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(m)(6)(C)) is amended--
                    (A) by striking ``serve additional 
                recipients in'';
                    (B) by striking clause (ii) and inserting 
                the following:
            ``(ii) documentation that demonstrates that--
                    ``(I) there is a need for an increase in 
                funds; and
                    ``(II) the use of the increased funding 
                will be consistent with serving nutritionally 
                at-risk persons and expanding the awareness and 
                use of farmers' markets;'';
                    (C) in clause (iii), by striking the period 
                at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(iv) whether, in the case of a State that intends 
        to use any funding provided under subparagraph (G)(i) 
        to increase the value of the Federal share of the 
        benefits received by a recipient, the funding provided 
        under subparagraph (G)(i) will increase the rate of 
        coupon redemption.''.
            (3) Ranking criteria for state plans.--Section 
        17(m)(6) of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(m)(6)) is amended--
                    (A) by striking subparagraph (F); and
                    (B) by redesignating subparagraph (G) as 
                subparagraph (F).
            (4) Funding for current and new states.--Section 
        17(m)(6)(F) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(m)(6)(F)), as redesignated by paragraph 
        (3)(B), is amended--
                    (A) in clause (i)--
                            (i) in the first sentence, by 
                        striking ``that wish'' and all follows 
                        through ``to do so'' and inserting 
                        ``whose State plan''; and
                            (ii) in the second sentence, by 
                        striking ``for additional recipients'';
                    (B) in the second sentence of clause (ii), 
                by striking ``that desire to serve additional 
                recipients, and''.
            (5) Reauthorization of program.--Section 
        17(m)(9)(A) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(m)(9)(A)) is amended by striking ``1998'' 
        and inserting ``2003''.
    (p) Disqualification of Certain Vendors.--
            (1) In general.--Section 17 of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786) is amended by adding at 
        the end the following:
    ``(o) Disqualification of Vendors Convicted of Trafficking 
or Illegal Sales.--
            ``(1) In general.--Except as provided in paragraph 
        (4), a State agency shall permanently disqualify from 
        participation in the program authorized under this 
        section a vendor convicted of--
                    ``(A) trafficking in food instruments 
                (including any voucher, draft, check, or access 
                device (including an electronic benefit 
                transfer card or personal identification 
                number) issued in lieu of a food instrument 
                under this section); or
                    ``(B) selling firearms, ammunition, 
                explosives, or controlled substances (as 
                defined in section 102 of the Controlled 
                Substances Act (21 U.S.C. 802)) in exchange for 
                food instruments (including any item described 
                in subparagraph (A) issued in lieu of a food 
                instrument under this section).
            ``(2) Notice of disqualification.--The State agency 
        shall--
                    ``(A) provide the vendor with notification 
                of the disqualification; and
                    ``(B) make the disqualification effective 
                on the date of receipt of the notice of 
                disqualification.
            ``(3) Prohibition of receipt of lost revenues.--A 
        vendor shall not be entitled to receive any 
        compensation for revenues lost as a result of 
        disqualification under this subsection.
            ``(4) Exceptions in lieu of disqualification.--
                    ``(A) In general.--A State agency may 
                permit a vendor that, but for this paragraph, 
                would be disqualified under paragraph (1), to 
                continue to participate in the program if the 
                State agency determines, in its sole discretion 
                according to criteria established by the 
                Secretary, that--
                            ``(i) disqualification of the 
                        vendor would cause hardship to 
                        participants in the program authorized 
                        under this section; or
                            ``(ii)(I) the vendor had, at the 
                        time of the violation under paragraph 
                        (1), an effective policy and program in 
                        effect to prevent violations described 
                        in paragraph (1); and
                            ``(II) the ownership of the vendor 
                        was not aware of, did not approve of, 
                        and was not involved in the conduct of 
                        the violation.
                    ``(B) Civil penalty.--If a State agency 
                under subparagraph (A) permits a vendor to 
                continue to participate in the program in lieu 
                of disqualification, the State agency shall 
                assess the vendor a civil penalty in an amount 
                determined by the State agency, in accordance 
                with criteria established by the Secretary, 
                except that--
                            ``(i) the amount of the civil 
                        penalty shall not exceed $10,000 for 
                        each violation; and
                            ``(ii) the amount of civil 
                        penalties imposed for violations 
                        investigated as part of a single 
                        investigation may not exceed 
                        $40,000.''.
            (2) Regulations.--The Secretary of Agriculture 
        shall promulgate--
                    (A) not later than March 1, 1999, proposed 
                regulations to carry out section 17(o) of the 
                Child Nutrition Act of 1966 (42 U.S.C. 
                1786(o)), as added by paragraph (1); and
                    (B) not later than March 1, 2000, final 
                regulations to carry out section 17(o) of that 
                Act.
    (q) Criminal Forfeiture.--Section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786), as amended by subsection (p)(1), 
is amended by adding at the end the following:
    ``(p) Criminal Forfeiture.--
            ``(1) In general.--Notwithstanding any provision of 
        State law and in addition to any other penalty 
        authorized by law, a court may order a person that is 
        convicted of a violation of a provision of law 
        described in paragraph (2), with respect to food 
        instruments (including any item described in subsection 
        (o)(1)(A) issued in lieu of a food instrument under 
        this section), funds, assets, or property that have a 
        value of $100 or more and that are the subject of a 
        grant or other form of assistance under this section, 
        to forfeit to the United States all property described 
        in paragraph (3).
            ``(2) Applicable laws.--A provision of law 
        described in this paragraph is--
                    ``(A) section 12(g) of the National School 
                Lunch Act (42 U.S.C. 1760(g)); and
                    ``(B) any other Federal law imposing a 
                penalty for embezzlement, willful 
                misapplication, stealing, obtaining by fraud, 
                or trafficking in food instruments (including 
                any item described in subsection (o)(1)(A) 
                issued in lieu of a food instrument under this 
                section), funds, assets, or property.
            ``(3) Property subject to forfeiture.--The 
        following property shall be subject to forfeiture under 
        paragraph (1):
                    ``(A) All property, real and personal, used 
                in a transaction or attempted transaction, to 
                commit, or to facilitate the commission of, a 
                violation described in paragraph (1).
                    ``(B) All property, real and personal, 
                constituting, derived from, or traceable to any 
                proceeds a person obtained directly or 
                indirectly as a result of a violation described 
                in paragraph (1).
            ``(4) Procedures; interest of owner.--Except as 
        provided in paragraph (5), all property subject to 
        forfeiture under this subsection, any seizure or 
        disposition of the property, and any proceeding 
        relating to the forfeiture, seizure, or disposition 
        shall be subject to section 413 of the Comprehensive 
        Drug Abuse Prevention and Control Act of 1970 (21 
        U.S.C. 853), other than subsection (d) of that section.
            ``(5) Proceeds.--The proceeds from any sale of 
        forfeited property and any amounts forfeited under this 
        subsection shall be used--
                    ``(A) first, to reimburse the Department of 
                Justice, the Department of the Treasury, and 
                the United States Postal Service for the costs 
                incurred by the Departments or Service to 
                initiate and complete the forfeiture 
                proceeding;
                    ``(B) second, to reimburse the Office of 
                Inspector General of the Department of 
                Agriculture for any costs incurred by the 
                Office in the law enforcement effort resulting 
                in the forfeiture;
                    ``(C) third, to reimburse any Federal, 
                State, or local law enforcement agency for any 
                costs incurred in the law enforcement effort 
                resulting in the forfeiture; and
                    ``(D) fourth, by the State agency to carry 
                out approval, reauthorization, and compliance 
                investigations of vendors.''.
    (r) Study of Cost Containment Practices.--
            (1) In general.--The Secretary of Agriculture shall 
        conduct a study on the effect of cost containment 
        practices established by States under the special 
        supplemental nutrition program for women, infants, and 
        children authorized under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786) for the 
        selection of vendors and approved food items (other 
        than infant formula) on--
                    (A) program participation;
                    (B) access and availability of prescribed 
                foods;
                    (C) voucher redemption rates and actual 
                food selections by participants;
                    (D) participants on special diets or with 
                specific food allergies;
                    (E) participant use and satisfaction of 
                prescribed foods;
                    (F) achievement of positive health 
                outcomes; and
                    (G) program costs.
            (2) Report.--The Secretary shall submit to the 
        Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate--
                    (A) not later than 2 years after the date 
                of enactment of this Act, an interim report 
                describing the results of the study conducted 
                under paragraph (1); and
                    (B) not later than 3 years after the date 
                of enactment of this Act, a final report 
                describing the results of the study conducted 
                under paragraph (1).
    (s) Study of WIC Services.--
            (1) In general.--The Comptroller General of the 
        United States shall conduct a study that assesses--
                    (A) the cost of delivering services under 
                the special supplemental nutrition program for 
                women, infants, and children authorized under 
                section 17 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1786), including the costs of 
                implementing and administering cost containment 
                efforts;
                    (B) the fixed and variable costs incurred 
                by State and local governments for delivering 
                the services and the extent to which those 
                costs are charged to State agencies;
                    (C) the quality of the services delivered, 
                taking into account the effect of the services 
                on the health of participants; and
                    (D) the costs incurred for personnel, 
                automation, central support, and other 
                activities to deliver the services and whether 
                the costs meet Federal audit standards for 
                allowable costs under the program.
            (2) Report.--Not later than 3 years after the date 
        of enactment of this Act, the Comptroller General shall 
        submit to the Secretary of Agriculture, the Committee 
        on Education and the Workforce of the House of 
        Representatives, and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report 
        containing the results of the study conducted under 
        paragraph (1).

SEC. 204. NUTRITION EDUCATION AND TRAINING.

    Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)) is amended--
            (1) by striking the subsection heading and all that 
        follows through paragraph (3)(A) and inserting the 
        following:
    ``(i) Authorization of Appropriations.--
            ``(1) In general.--
                    ``(A) Funding.--There are authorized to be 
                appropriated such sums as are necessary to 
                carry out this section for each of fiscal years 
                1997 through 2003.''; and
            (2) by redesignating paragraphs (4) and (5) as 
        paragraphs (2) and (3), respectively.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

SEC. 301. INFORMATION FROM RECIPIENT AGENCIES.

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

SEC. 302. FOOD DISTRIBUTION.

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

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

    ``(a) Transfer.--Subject to subsection (b), the Secretary 
may transfer any commodities purchased with appropriated funds 
for a domestic food assistance program administered by the 
Secretary to any other domestic food assistance program 
administered by the Secretary if the transfer is necessary to 
ensure that the commodities will be used while the commodities 
are still suitable for human consumption.
    ``(b) Reimbursement.--The Secretary shall, to the maximum 
extent practicable, provide reimbursement for the value of the 
commodities transferred under subsection (a) from accounts 
available for the purchase of commodities under the program 
receiving the commodities.
    ``(c) Crediting.--Any reimbursement made under subsection 
(b) shall--
            ``(1) be credited to the accounts that incurred the 
        costs when the transferred commodities were originally 
        purchased; and
            ``(2) be available for the purchase of commodities 
        with the same limitations as are provided for 
        appropriated funds for the reimbursed accounts for the 
        fiscal year in which the transfer takes place.

``SEC. 14. AUTHORITY TO RESOLVE CLAIMS.

    ``(a) In General.--The Secretary may determine the amount 
of, settle, and adjust all or part of a claim arising under a 
domestic food assistance program administered by the Secretary.
    ``(b) Waiver.--The Secretary may waive a claim described in 
subsection (a) if the Secretary determines that a waiver would 
serve the purposes of the program.
    ``(c) Authority of the Attorney General.--Nothing in this 
section diminishes the authority of the Attorney General under 
section 516 of title 28, United States Code, or any other 
provision of law, to supervise and conduct litigation on behalf 
of the United States.

``SEC. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF COMMODITIES THAT 
                    POSE A HEALTH OR SAFETY RISK.

    ``(a) In General.--The Secretary may use funds available to 
carry out section 32 of the Act of August 24, 1935 (49 Stat. 
774, chapter 641; 7 U.S.C. 612c), that are not otherwise 
committed, for the purpose of reimbursing States for State and 
local costs associated with the removal of commodities 
distributed under any domestic food assistance program 
administered by the Secretary if the Secretary determines that 
the commodities pose a health or safety risk.
    ``(b) Allowable Costs.--The costs--
            ``(1) may include costs for storage, 
        transportation, processing, and destruction of the 
        commodities described in subsection (a); and
            ``(2) shall be subject to the approval of the 
        Secretary.
    ``(c) Replacement Commodities.--
            ``(1) In general.--The Secretary may use funds 
        described in subsection (a) for the purpose of 
        purchasing additional commodities if the purchase will 
        expedite replacement of the commodities described in 
        subsection (a).
            ``(2) Recovery.--Use of funds under paragraph (1) 
        shall not restrict the Secretary from recovering funds 
        or services from a supplier or other entity regarding 
        the commodities described in subsection (a).
    ``(d) Crediting of Recovered Funds.--Funds recovered from a 
supplier or other entity regarding the commodities described in 
subsection (a) shall--
            ``(1) be credited to the account available to carry 
        out section 32 of the Act of August 24, 1935 (49 Stat. 
        774, chapter 641; 7 U.S.C. 612c), to the extent the 
        funds represent expenditures from that account under 
        subsections (a) and (c); and
            ``(2) remain available to carry out the purposes of 
        section 32 of that Act until expended.
    ``(e) Termination Date.--The authority provided by this 
section terminates effective October 1, 2000.

``SEC. 16. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL SOURCES.

    ``(a) In General.--The Secretary may accept donations of 
commodities from any Federal agency, including commodities of 
another Federal agency determined to be excess personal 
property pursuant to section 202(d) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 483(d)).
    ``(b) Use.--The Secretary may donate the commodities 
received under subsection (a) to States for distribution 
through any domestic food assistance program administered by 
the Secretary.
    ``(c) Payment.--Notwithstanding section 202(d) of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 483(d)), the Secretary shall not be required to make any 
payment in connection with the commodities received under 
subsection (a).''.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act take effect on October 1, 1998.

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

                                   Richard G. Lugar,
                                   Thad Cochran,
                                   Mitch McConnell,
                                   Tom Harkin,
                                   Patrick J. Leahy,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

                Explanation of the Conference Agreement

                      1. Provision of Commodities

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

  2. Waiver of Requirement For Weighted Averages For Nutrient Analysis

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

                    3. Health And Safety Inspections

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

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

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

                     5. Common Claiming Procedures

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

   6. Administration of Child Nutrition Programs by Federal Regional 
                                Offices

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

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

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

            8. Rounding Adjustments to Federal Payment Rates

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

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

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

                         10. Criminal Penalties

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

    11. Grants For Food And Nutrition Curricula Integration Projects

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

                   12. Adequate Meal Service Periods

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

                       13. Buy American Provision

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

                       14. Procurement Contracts

Present law
      No provision.
House bill
      No provision.
Senate amendment
      When acquiring goods/services using NSLA/CNA funds, 
allows states, state agencies, and schools to contract with 
those who have provided assistance in drafting the contract 
specifications. [Sec. 112]
Conference agreement
      The conference agreement adopts the Senate provision with 
an amendment to limit permission to award contracts to persons 
who have provided specification information and to clarify that 
this provision does not apply to the WIC program.
      The Conference Committee intends for this provision to 
encourage Child Nutrition program administrators to obtain 
information from as many sources as possible. This provision is 
not intended to prevent a program from participating in group 
purchasing arrangements or prevent program administrators from, 
where permitted, forming purchasing cooperatives. This 
provision is not intended to allow a potential contractor or 
other interested party to participate in the procurement 
process through drafting the procurement specification, 
procedures or documents.
      In addressing the procurement actions by a school food 
service authorities or other subgrantees, the conferees expect 
the Department to implement its responsibilities, in its 
pending rulemaking and administration of program authorities 
with generous deference to the discretion of State and local 
authorities especially when dealing with State and local 
procurement laws and regulations. State and local authorities, 
not the federal government bear responsibility for the cost of 
such subgrantee procurements. The conferees expect the 
Secretary to implement procurement rules to allow purchase of 
locally produced products to the extent practicable.
      The Conferees are especially concerned that no situation 
arise in which federal authorities require State or local 
school food service authorities to issue Requests for Proposals 
in such a prescriptive form as to inhibit innovation that might 
improve service or reduce costs for the local school food 
service authority. Similarly, the Conferees expect the 
Department to assure that it exercises all the flexibility 
available to it in order to avoid unnecessary expense to school 
districts when they implement federal requirements.
      The great success of the National School Lunch and 
Breakfast Programs is primarily due to the interwoven 
responsibilities for, and commitment to, the mission of those 
programs by federal, State, and local authorities. Through its 
oversight functions, Congress intends to assure that federal 
program responsibilities are executed in a manner that respects 
the role of State and local food service authorities. The 
Department should be prepared to promptly and fully account to 
the Committees of jurisdiction for each instance in which 
federal authorities address a matter of a subgrantee 
procurement.

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

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

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

                             Organizations

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

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

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

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

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

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

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

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

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

            21. Summer Food Service Program: Reauthorization

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

              22. Commodity Distribution: Reauthorization

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

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

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

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

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

           25. Child And Adult Care Food Program: Site Visits

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

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

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

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

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

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

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

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

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

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

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

       31. Child And Adult Care Food Program: Management Support

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Requires the Secretary to provide training and technical 
assistance to help state agencies improve CACFP program 
management and oversight. To carry out this provision, requires 
that, for FY 1999 through FY 2003, the Secretary reserve $1 
million a year from amounts made available for the CACFP. [Sec. 
115(g)]
Conference agreement
      The conference agreement adopts the Senate provision.
      The Department is to use the training and technical 
assistance funding provided under the Child and Adult Care Food 
Program in support of its current effort to improve program 
integrity and quality and to deal with the increasing incidence 
of mismanagement and fraud identified in the program. In 
addition, it is to be used to help ensure proper implementation 
of the family day care home tiering requirements. It is 
critical that this most significant change in Program structure 
is fully understood and properly implemented at all levels of 
Program administration and that barriers to implementation are 
identified and rectified. Specific uses of the funding are to 
include development of technical assistance materials for 
program cooperators and training of State agencies.

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

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

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

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

                   34. Children in After-school Care

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

                           35. Pilot Projects

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

                  36. School Breakfast Pilot Projects

Present law
      Pilot projects are authorized to reduce paperwork and 
application and meal counting requirements in school meal 
programs and to make changes that will increase participation 
in school meal programs. This authority expired July 31, 1998. 
[Sec. 18(i) of the NSLA]
House bill
      Replaces current-law authority for pilot projects to 
reduce paperwork and application and meal counting requirements 
and increase participation in school meal programs.
      Establishes discretionary authority for pilot projects 
for free breakfasts served to all elementary school students in 
participating schools.
      Subject to the availability of advance appropriations, 
requires the Secretary to make grants, to up to five states, to 
conduct pilot projects in elementary schools that would reduce 
paperwork, simplify meal counting requirements, and make 
changes that increase participation in the School Breakfast 
program.
      On their application, the Secretary would select states 
for pilot project grants and could waive NSLA & CNA 
requirements that would preclude making grants to conduct 
projects.
      The Secretary would be responsible, through the FNS, for 
an evaluation of the projects--including determining their 
effect on academic achievement, attendance, and dietary intake 
and the proportion of children who eat breakfast. An evaluation 
report is required on completion of the projects.
      States would apply for pilot project grants and provide 
information relative to the operation and results of the 
pilots. States receiving a pilot project grant would select and 
make grants to school food authorities. In the selection of 
school food authorities, states would be required, to the 
extent practicable, to provide for an equitable distribution 
among urban and rural schools and schools with varying family 
income levels.
      Participating school food authorities would (1) conduct a 
pilot project for 3 years, (2) ensure that some schools in 
their jurisdiction do not participate (for evaluation 
purposes), (3) agree to serve all breakfasts free to 
participating children, and (4) meet any other requirements 
established by the Secretary. School food authorities with a 
history of NSLA or CNA violations would be barred from 
participation.
      Participating school food authorities would receive 
payments for each breakfast at the basic free rate, and also 
would receive commodities valued at 5 cents a meal (deducted 
from their cash payments).
      The total amount received by a participating school would 
be funded with payments under the regular School Breakfast 
program equal to that in the prior year, adjusted for inflation 
and enrollment changes, plus amounts derived from any 
appropriations made to carry out the pilot project.
      Such sums as are necessary are authorized to carry out 
the pilot projects, and amounts must be specifically provided 
in appropriations Acts. [Sec. 109]
Senate amendment
      Deletes current-law authority for pilot projects to 
reduce paperwork and application and meal counting requirements 
and increase participation in school meal programs.
      Requires the Secretary to make grants for pilot projects 
for free breakfasts served to all elementary school students in 
participating schools.
      For school years 1999-2000, 2000-2001, and 2001-2002, 
requires the Secretary to make grants to state agencies to 
conduct pilot projects in elementary schools in up to six 
school food authorities that would reduce paperwork, simplify 
meal counting requirements, and evaluate the effect of 
providing free breakfasts (without regard to family income) on 
participation, academic achievement, attendance, and dietary 
intake.
      State agencies would nominate school food authorities for 
the Secretary's approval as pilot projects.
      The Secretary would approve school food authorities for 
participation and could waive NSLA & CNA requirements that 
would preclude making grants to conduct projects. Projects 
would be selected so as to provide (1) an equitable 
distribution of projects among urban and rural schools, (2) an 
equitable distribution of projects among schools with varying 
family income levels, and (3) evaluation of projects to 
distinguish the effects of the projects from other factors 
(e.g., changes or differences in educational policies or 
programs).
      The Secretary would be responsible, through the FNS, for 
an evaluation of the projects--including determining their 
effect on academic achievement, attendance, dietary intake, the 
proportion of children students who eat breakfast, and the 
paperwork required of schools. An evaluation report is required 
on completion of the projects.
      States would apply for pilot project grants, distribute 
the grants, and provide information relative to the operation 
and results of the pilots.
      Participating school food authorities would (1) conduct a 
pilot project for 3 years, (2) have under their jurisdiction a 
sufficient number of schools that are not participating in the 
project to permit evaluation, (3) agree to serve all breakfasts 
free to participating children, and(4) meet any other 
requirements established by the Secretary. School food authorities with 
a history of NSLA or CNA violations would be barred from participation.
      Participating school food authorities would receive 
payments for each breakfast at the basic (or ``severe-need'') 
rate for free breakfasts. The total amount received by a 
participating school would be funded with payments under the 
regular School Breakfast program equal to that in the prior 
year, adjusted for inflation and enrollment changes, plus 
amounts derived from the added mandatory funding provided for 
the pilot projects.
      Funding of $20 million is required to be provided for the 
pilot projects--not more than $12 million of which would be 
available for evaluation purposes. [Sec. 119]
Conference agreement
      The conference agreement adopts the Senate provision with 
technical difference and an amendment to fund the pilot out of 
discretionary funds.

                 37. Training And Technical Assistance

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

                 38. Food Service Management Institute

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

                   39. Compliance And Accountability

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

                     40. Information Clearinghouse

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

       41. Special Dietary Needs of Individuals With Disabilities

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

    42. State Administrative Expense Funds: 10% Transfer Limitation

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

        43. State Administrative Expense Funds: Reauthorization

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

         44. The WIC Program: Certification Period For Infants

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

           45. The WIC Program: Physical Presence Requirement

Present law
      No provision.
House bill
      Requires that all applicants be physically present at 
each certification determination. Local agencies could waive 
this requirement: (1) where there is a conflict with the 
Americans with Disabilities Act, (2) if it would present a 
barrier to participation by a child who was present at the 
initial certification and is receiving ongoing health care from 
a non-WIC provider, or (3) if it would present a barrier to 
participation by a child who was present at the initial 
certification, was present at a certification determination in 
the last year, and has working parents. [Sec. 202(a)(1)]
Senate amendment
      Same as the House bill, with technical differences. [Sec. 
203(b)]
Conference agreement
      The conference agreement adopts the House provision with 
a technical amendment.
      Regarding the physical presence requirement, the 
Committee acknowledges that physical presence at the WIC clinic 
allows participants to fully take advantage of all the benefits 
offered through WIC. The WIC Program has played a critical role 
in increasing immunization rates among young children, 
primarily due to its role as a gateway to health services. 
Notwithstanding the importance of physical presence, the 
Committee wishes to stress that in implementing this provision, 
WIC agencies must develop flexible policies. Such policies 
should assure that medically fragile individuals are not 
required to come in to the clinic if doing so would exacerbate 
their illness. In addition, WIC agencies are encouraged to 
continue offering early morning and late evening appointments 
to accommodate the schedules of working parents. The conferees 
do not intend the waiver authority authorized in this section 
to be applied to two parent families with only one working 
parent.

       46. The WIC Program: Income Documentation And Verification

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

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

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

   48. The WIC Program: Distribution of Nutrition Education Materials

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

           49. The WIC Program: Variety of Foods Requirement

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

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

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

                 51. The WIC Program: High Risk Vendors

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

                  52. The WIC Program: Reauthorization

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

             53. The WIC Program: Purchase of Breast Pumps

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

               54. The WIC Program: Technical Amendments

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

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

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

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

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

            57. The WIC Program: Infant Formula Procurement

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

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

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

           59. The WIC Program: Consideration of Price Levels

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

          60. The WIC Program: Management Information Systems

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

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

Present law
      State agencies may retain and ``spend back'' up to 1% of 
a given year's food grant to cover food costs incurred in the 
preceding fiscal year.
      State agencies may retain and ``spend forward'' up to 1% 
of a given year's total grant for costs incurred in the 
subsequent fiscal year. In addition, States achieving cost 
containment savings may retain and spend forward up to 5% of 
the amount of their food grant in the year the savings were 
achieved and 3% for the second year. [Sec. 17(i)(3) of the CNA]
      The Secretary is required to use up to $10 million a year 
of unobligated NSA funding for special infrastructure and 
breast-feeding support and promotion projects. [Sec. 17(h)(10) 
of the CNA]
House bill
      Increases state agencies' authority to spend back funding 
by allowing them to spend back up to 1% of their nutrition 
services and administration (NSA) grant to cover NSA costs 
incurred in the preceding fiscal year.
      Replaces current spend-forward provisions. Allows state 
agencies to retain and spendforward NSA funding (for NSA costs 
incurred in the subsequent fiscal year) up to an amount equal to 1% of 
their total grant. In addition, state agencies could spend forward, 
from NSA funding, up to an amount equal to 1/2% of their total grant 
for development of management information systems (including electronic 
benefit transfer systems) in the subsequent fiscal year.
      Allows the Secretary to use unobligated food funds to 
meet the spending requirement for infrastructure and breast-
feeding projects--in addition to unobligated NSA funds. [Sec. 
202(n)]
Senate amendment
      Same as the House bill, except that NSA money spent back 
could be used to cover either food or NSA costs. [Sec. 203(q)]
Conference agreement
      The conference agreement adopts the Senate provision.
      The Committee understands that States are anxious to 
begin implementing these provisions and therefore, directs the 
Secretary to issue interim rules within 120 days of the 
enactment of this Act.

            62. The WIC Program: Disqualification of Vendors

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

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

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

                64. The WIC Program: Criminal Forfeiture

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

        65. The WIC Program: Study of Cost Containment Practices

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

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

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

      67. Nutrition Education And Training Program: Authorization

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

                           68. Effective Date

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

      69. Farmer's Market Nutrition Program: Matching Requirement

Present law
      Requires that states receiving grants provide state, 
local, or private funds for the program in an amount that is 
equal to at least 30% of the total cost of the program. States 
may count funds they use for other similar programs toward the 
matching requirement. [Section 17(m)(3) CNA]
House bill
      Revises existing law to require that the matching fund 
requirement apply only to the administrative cost of the 
program instead of the entire costs [Sec. 202(n)(1)]
Senate amendment
      Permit states to use ``program income'' to meet the 30% 
matching requirement. This change uses the term ``program 
income'' as defined in the Uniform Federal Assistance 
Regulations (Sec.3016.25) to permit donations by companies and 
vendor fines for violations to be used toward the matching 
requirement. [Sec. 203(r)(1)]
Conference agreement
      The conference agreement adopts the Senate provision.

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

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

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

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

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

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

                           73. Authorization

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

                      74. Commodity Specifications

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

                75. Information from Recipient Agencies

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

                 76. authority to transfer commodities

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

                    77. authority to resolve claims

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

       78. removal of commodities posing a health or safety risk

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

              79. authority to accept donated commodities

Present law
      No current provision.
House bill
      No provision.
Senate amendment
      Permits the Secretary to accept commodities donated by 
other Federal agencies and to donate such commodities to states 
for distribution through any domestic food administration 
program administered by the Secretary. [Section 302 (a)]
Conference agreement
      The conference agreement adopts the Senate provision.

                     80. effect of prior amendments

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

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

                                
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