[108th Congress Public Law 265]
[From the U.S. Government Printing Office]


[DOCID: f:publ265.108]

[[Page 118 STAT. 729]]

Public Law 108-265
108th Congress

                                 An Act


 
To amend the Richard B. Russell National School Lunch Act and the Child 
Nutrition Act of 1966 to provide children with increased access to food 
  and nutrition assistance, to simplify program operations and improve 
  program management, to reauthorize child nutrition programs, and for 
          other purposes. <<NOTE: June 30, 2004 -  [S. 2507]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Child Nutrition 
and WIC Reauthorization Act of 2004. Inter-governmental relations. 42 
USC 1751 note.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; Table of contents.

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

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

           TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

Sec. 201.  Severe need assistance.
Sec. 202.  State administrative expenses.
Sec. 203.  Special supplemental nutrition program for women, infants, 
           and children.

[[Page 118 STAT. 730]]

Sec. 204.  Local wellness policy.
Sec. 205.  Team nutrition network.
Sec. 206.  Review of best practices in the breakfast program.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301.  Commodity distribution programs.

                         TITLE IV--MISCELLANEOUS

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

                         TITLE V--IMPLEMENTATION

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

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

SEC. 101. NUTRITION PROMOTION.

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

``SEC. 5. NUTRITION PROMOTION. <<NOTE: 42 USC 1754.>> 

    ``(a) In General.--Subject to the availability of funds made 
available under subsection (g), the Secretary shall make payments to 
State agencies for each fiscal year, in accordance with this section, to 
promote nutrition in food service programs under this Act and the school 
breakfast program established under the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.).
    ``(b) Total Amount for Each Fiscal Year.--The total amount of funds 
available for a fiscal year for payments under this section shall equal 
not more than the product obtained by multiplying--
            ``(1) \1/2\ cent; by
            ``(2) the number of lunches reimbursed through food service 
        programs under this Act during the second preceding fiscal year 
        in schools, institutions, and service institutions that 
        participate in the food service programs.

    ``(c) Payments to States.--
            ``(1) Allocation.--Subject to paragraph (2), from the amount 
        of funds available under subsection (g) for a fiscal year, the 
        Secretary shall allocate to each State agency an amount equal to 
        the greater of--
                    ``(A) a uniform base amount established by the 
                Secretary; or
                    ``(B) an amount determined by the Secretary, based 
                on the ratio that--
                          ``(i) the number of lunches reimbursed through 
                      food service programs under this Act in schools, 
                      institutions, and service institutions in the 
                      State that participate in the food service 
                      programs; bears to
                          ``(ii) the number of lunches reimbursed 
                      through the food service programs in schools, 
                      institutions, and service institutions in all 
                      States that participate in the food service 
                      programs.
            ``(2) Reductions.--The Secretary shall reduce allocations to 
        State agencies qualifying for an allocation under paragraph 
        (1)(B), in a manner determined by the Secretary, to the extent

[[Page 118 STAT. 731]]

        necessary to ensure that the total amount of funds allocated 
        under paragraph (1) is not greater than the amount appropriated 
        under subsection (g).

    ``(d) Use of Payments.--
            ``(1) Use by state agencies.--A State agency may reserve, to 
        support dissemination and use of nutrition messages and material 
        developed by the Secretary, up to--
                    ``(A) 5 percent of the payment received by the State 
                for a fiscal year under subsection (c); or
                    ``(B) in the case of a small State (as determined by 
                the Secretary), a higher percentage (as determined by 
                the Secretary) of the payment.
            ``(2) Disbursement to schools and institutions.--Subject to 
        paragraph (3), the State agency shall disburse any remaining 
        amount of the payment to school food authorities and 
        institutions participating in food service programs described in 
        subsection (a) to disseminate and use nutrition messages and 
        material developed by the Secretary.
            ``(3) Summer food service program for children.--In addition 
        to any amounts reserved under paragraph (1), in the case of the 
        summer food service program for children established under 
        section 13, the State agency may--
                    ``(A) retain a portion of the funds made available 
                under subsection (c) (as determined by the Secretary); 
                and
                    ``(B) use the funds, in connection with the program, 
                to disseminate and use nutrition messages and material 
                developed by the Secretary.

    ``(e) Documentation.--A State agency, school food authority, and 
institution receiving funds under this section shall maintain 
documentation of nutrition promotion activities conducted under this 
section.
    ``(f) Reallocation.--The Secretary may reallocate, to carry out this 
section, any amounts made available to carry out this section that are 
not obligated or expended, as determined by the Secretary.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section, to 
remain available until expended.''.

SEC. 102. NUTRITION REQUIREMENTS.

    Section 9(a) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(a)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Fluid milk.--
                    ``(A) In general.--Lunches served by schools 
                participating in the school lunch program under this 
                Act--
                          ``(i) shall offer students fluid milk in a 
                      variety of fat contents;
                          ``(ii) may offer students flavored and 
                      unflavored fluid milk and lactose-free fluid milk; 
                      and
                          ``(iii) shall provide a substitute for fluid 
                      milk for students whose disability restricts their 
                      diet, on receipt of a written statement from a 
                      licensed physician that identifies the disability 
                      that restricts the student's diet and that 
                      specifies the substitute for fluid milk.
                    ``(B) Substitutes.--

[[Page 118 STAT. 732]]

                          ``(i) Standards for substitution.--A school 
                      may substitute for the fluid milk provided under 
                      subparagraph (A), a nondairy beverage that is 
                      nutritionally equivalent to fluid milk and meets 
                      nutritional standards established by the Secretary 
                      (which shall, among other requirements to be 
                      determined by the Secretary, include fortification 
                      of calcium, protein, vitamin A, and vitamin D to 
                      levels found in cow's milk) for students who 
                      cannot consume fluid milk because of a medical or 
                      other special dietary need other than a disability 
                      described in subparagraph (A)(iii).
                          ``(ii) Notice.--The substitutions may be made 
                      if the school notifies the State agency that the 
                      school is implementing a variation allowed under 
                      this subparagraph, and if the substitution is 
                      requested by written statement of a medical 
                      authority or by a student's parent or legal 
                      guardian that identifies the medical or other 
                      special dietary need that restricts the student's 
                      diet, except that the school shall not be required 
                      to provide beverages other than beverages the 
                      school has identified as acceptable substitutes.
                          ``(iii) Excess expenses borne by school food 
                      authority.--Expenses incurred in providing 
                      substitutions under this subparagraph that are in 
                      excess of expenses covered by reimbursements under 
                      this Act shall be paid by the school food 
                      authority.
                    ``(C) Restrictions on sale of milk prohibited.--A 
                school that participates in the school lunch program 
                under this Act shall not directly or indirectly restrict 
                the sale or marketing of fluid milk products by the 
                school (or by a person approved by the school) at any 
                time or any place--
                          ``(i) on the school premises; or
                          ``(ii) at any school-sponsored event.''.

SEC. 103. PROVISION OF INFORMATION.

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

[[Page 118 STAT. 733]]

SEC. 104. DIRECT CERTIFICATION.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) is amended--
            (1) by redesignating paragraphs (3) through (7) as 
        paragraphs (9) through (13), respectively; and
            (2) in paragraph (2)--
                    (A) in subparagraph (B)--
                          (i) by striking ``(B) Applications'' and 
                      inserting the following:
                    ``(B) Applications and descriptive material.--
                          ``(i) In general.--Applications'';
                          (ii) in the second sentence, by striking 
                      ``Such forms and descriptive material'' and 
                      inserting the following:
                          ``(ii) Income eligibility guidelines.--Forms 
                      and descriptive material distributed in accordance 
                      with clause (i)''; and
                          (iii) by adding at the end the following:
                          ``(iii) Contents of descriptive material.--
                                    ``(I) In general.--Descriptive 
                                material distributed in accordance with 
                                clause (i) shall contain a notification 
                                that--
                                            ``(aa) participants in the 
                                        programs listed in subclause 
                                        (II) may be eligible for free or 
                                        reduced price meals; and
                                            ``(bb) documentation may be 
                                        requested for verification of 
                                        eligibility for free or reduced 
                                        price meals.
                                    ``(II) Programs.--The programs 
                                referred to in subclause (I)(aa) are--
                                            ``(aa) the special 
                                        supplemental nutrition program 
                                        for women, infants, and children 
                                        established by section 17 of the 
                                        Child Nutrition Act of 1966 (42 
                                        U.S.C. 1786);
                                            ``(bb) the food stamp 
                                        program established under the 
                                        Food Stamp Act of 1977 (7 U.S.C. 
                                        2011 et seq.);
                                            ``(cc) the food distribution 
                                        program on Indian reservations 
                                        established under section 4(b) 
                                        of the Food Stamp Act of 1977 (7 
                                        U.S.C. 2013(b)); and
                                            ``(dd) a State program 
                                        funded under the program of 
                                        block grants to States for 
                                        temporary assistance for needy 
                                        families established under part 
                                        A of title IV of the Social 
                                        Security Act (42 U.S.C. 601 et 
                                        seq.).'';
                    (B) by striking ``(C)(i)'' and inserting ``(3)''; 
                and
                    (C) by striking clause (ii) of subparagraph (C) (as 
                it existed before the amendment made by subparagraph 
                (B)) and all that follows through the end of 
                subparagraph (D) and inserting the following:
            ``(4) Direct certification for children in food stamp 
        households.--
                    ``(A) <<NOTE: Contracts.>> In general.--Subject to 
                subparagraph (D), each State agency shall enter into an 
                agreement with the State agency conducting eligibility 
                determinations for the food stamp program established 
                under the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
                seq.).

[[Page 118 STAT. 734]]

                    ``(B) Procedures.--Subject to paragraph (6), the 
                agreement shall establish procedures under which a child 
                who is a member of a household receiving assistance 
                under the food stamp program shall be certified as 
                eligible for free lunches under this Act and free 
                breakfasts under the Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.), without further application.
                    ``(C) Certification.--Subject to paragraph (6), 
                under the agreement, the local educational agency 
                conducting eligibility determinations for a school lunch 
                program under this Act and a school breakfast program 
                under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
                seq.) shall certify a child who is a member of a 
                household receiving assistance under the food stamp 
                program as eligible for free lunches under this Act and 
                free breakfasts under the Child Nutrition Act of 1966 
                (42 U.S.C. 1771 et seq.), without further application.
                    ``(D) Applicability.--This paragraph applies to--
                          ``(i) in the case of the school year beginning 
                      July 2006, a school district that had an 
                      enrollment of 25,000 students or more in the 
                      preceding school year;
                          ``(ii) in the case of the school year 
                      beginning July 2007, a school district that had an 
                      enrollment of 10,000 students or more in the 
                      preceding school year; and
                          ``(iii) in the case of the school year 
                      beginning July 2008 and each subsequent school 
                      year, each local educational agency.''.

    (b) Administration.--
            (1) In general.--Section 9(b) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1758(b)) (as amended by 
        subsection (a)) is amended by inserting after paragraph (4) the 
        following:
            ``(5) Discretionary certification.--
                    ``(A) In general.--Subject to paragraph (6), any 
                local educational agency may certify any child as 
                eligible for free lunches or breakfasts, without further 
                application, by directly communicating with the 
                appropriate State or local agency to obtain 
                documentation of the status of the child as--
                          ``(i) a member of a family that is receiving 
                      assistance under the temporary assistance for 
                      needy families program funded under part A of 
                      title IV of the Social Security Act (42 U.S.C. 601 
                      et seq.) that the Secretary determines complies 
                      with standards established by the Secretary that 
                      ensure that the standards under the State program 
                      are comparable to or more restrictive than those 
                      in effect on June 1, 1995;
                          ``(ii) a homeless child or youth (defined as 1 
                      of the individuals described in section 725(2) of 
                      the McKinney-Vento Homeless Assistance Act (42 
                      U.S.C. 11434a(2));
                          ``(iii) served by the runaway and homeless 
                      youth grant program established under the Runaway 
                      and Homeless Youth Act (42 U.S.C. 5701 et seq.); 
                      or
                          ``(iv) a migratory child (as defined in 
                      section 1309 of the Elementary and Secondary 
                      Education Act of 1965 (20 U.S.C. 6399)).''.

[[Page 118 STAT. 735]]

                    ``(B) Children of households receiving food 
                stamps.--Subject to paragraph (6), any local educational 
                agency may certify any child as eligible for free 
                lunches or breakfasts, without further application, by 
                directly communicating with the appropriate State or 
                local agency to obtain documentation of the status of 
                the child as a member of a household that is receiving 
                food stamps under the Food Stamp Act of 1977 (7 U.S.C. 
                2011 et seq.).
            ``(6) Use or disclosure of information.--
                    ``(A) In general.--The use or disclosure of any 
                information obtained from an application for free or 
                reduced price meals, or from a State or local agency 
                referred to in paragraph (3)(F), (4), or (5), shall be 
                limited to--
                          ``(i) a person directly connected with the 
                      administration or enforcement of this Act or the 
                      Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
                      seq.) (including a regulation promulgated under 
                      either Act);
                          ``(ii) a person directly connected with the 
                      administration or enforcement of--
                                    ``(I) a Federal education program;
                                    ``(II) a State health or education 
                                program administered by the State or 
                                local educational agency (other than a 
                                program carried out under title XIX or 
                                XXI of the Social Security Act (42 
                                U.S.C. 1396 et seq.; 42 U.S.C. 1397aa et 
                                seq.)); or
                                    ``(III) a Federal, State, or local 
                                means-tested nutrition program with 
                                eligibility standards comparable to the 
                                school lunch program under this Act;
                          ``(iii)(I) the Comptroller General of the 
                      United States for audit and examination authorized 
                      by any other provision of law; and
                          ``(II) notwithstanding any other provision of 
                      law, a Federal, State, or local law enforcement 
                      official for the purpose of investigating an 
                      alleged violation of any program covered by this 
                      paragraph or paragraph (3)(F), (4), or (5);
                          ``(iv) a person directly connected with the 
                      administration of the State medicaid program under 
                      title XIX of the Social Security Act (42 U.S.C. 
                      1396 et seq.) or the State children's health 
                      insurance program under title XXI of that Act (42 
                      U.S.C. 1397aa et seq.) solely for the purposes 
                      of--
                                    ``(I) identifying children eligible 
                                for benefits under, and enrolling 
                                children in, those programs, except that 
                                this subclause shall apply only to the 
                                extent that the State and the local 
                                educational agency or school food 
                                authority so elect; and
                                    ``(II) verifying the eligibility of 
                                children for programs under this Act or 
                                the Child Nutrition Act of 1966 (42 
                                U.S.C. 1771 et seq.); and
                          ``(v) a third party contractor described in 
                      paragraph (3)(G)(iv).
                    ``(B) Limitation on information provided.--
                Information provided under clause (ii) or (v) of 
                subparagraph (A) shall be limited to the income 
                eligibility status of the

[[Page 118 STAT. 736]]

                child for whom application for free or reduced price 
                meal benefits is made or for whom eligibility 
                information is provided under paragraph (3)(F), (4), or 
                (5), unless the consent of the parent or guardian of the 
                child for whom application for benefits was made is 
                obtained.
                    ``(C) Criminal penalty.--A person described in 
                subparagraph (A) who publishes, divulges, discloses, or 
                makes known in any manner, or to any extent not 
                authorized by Federal law (including a regulation), any 
                information obtained under this subsection shall be 
                fined not more than $1,000 or imprisoned not more than 1 
                year, or both.
                    ``(D) Requirements for waiver of confidentiality.--A 
                State that elects to exercise the option described in 
                subparagraph (A)(iv)(I) shall ensure that any local 
                educational agency or school food authority acting in 
                accordance with that option--
                          ``(i) has a written agreement with 1 or more 
                      State or local agencies administering health 
                      programs for children under titles XIX and XXI of 
                      the Social Security Act (42 U.S.C. 1396 et seq. 
                      and 1397aa et seq.) that requires the health 
                      agencies to use the information obtained under 
                      subparagraph (A) to seek to enroll children in 
                      those health programs; and
                          ``(ii)(I) notifies each household, the 
                      information of which shall be disclosed under 
                      subparagraph (A), that the information disclosed 
                      will be used only to enroll children in health 
                      programs referred to in subparagraph (A)(iv); and
                          ``(II) provides each parent or guardian of a 
                      child in the household with an opportunity to 
                      elect not to have the information disclosed.
                    ``(E) Use of disclosed information.--A person to 
                which information is disclosed under subparagraph 
                (A)(iv)(I) shall use or disclose the information only as 
                necessary for the purpose of enrolling children in 
                health programs referred to in subparagraph (A)(iv).
            ``(7) Free and reduced price policy statement.--
                    ``(A) In general.--After the initial submission, a 
                local educational agency shall not be required to submit 
                a free and reduced price policy statement to a State 
                educational agency under this Act unless there is a 
                substantive change in the free and reduced price policy 
                of the local educational agency.
                    ``(B) Routine change.--A routine change in the 
                policy of a local educational agency (such as an annual 
                adjustment of the income eligibility guidelines for free 
                and reduced price meals) shall not be sufficient cause 
                for requiring the local educational agency to submit a 
                policy statement.
            ``(8) Communications.--
                    ``(A) In general.--Any communication with a 
                household under this subsection or subsection (d) shall 
                be in an understandable and uniform format and, to the 
                maximum extent practicable, in a language that parents 
                and legal guardians can understand.
                    ``(B) Electronic availability.--In addition to the 
                distribution of applications and descriptive material in 
                paper form as provided for in this paragraph, the 
                applications

[[Page 118 STAT. 737]]

                and material may be made available electronically via 
                the Internet.''.
            (2) Agreement for direct certification and cooperation.--
        Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
        amended by adding at the end the following:

    ``(u) Agreement for Direct Certification and Cooperation.--
            ``(1) In general.--Each State agency shall enter into an 
        agreement with the State agency administering the school lunch 
        program established under the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1751 et seq.).
            ``(2) <<NOTE: Regulations.>> Contents.--The agreement shall 
        establish procedures that ensure that--
                    ``(A) any child receiving benefits under this Act 
                shall be certified as eligible for free lunches under 
                the Richard B. Russell National School Lunch Act (42 
                U.S.C. 1751 et seq.) and free breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), without 
                further application; and
                    ``(B) each State agency shall cooperate in carrying 
                out paragraphs (3)(F) and (4) of section 9(b) of the 
                Richard B. Russell National School Lunch Act (42 U.S.C. 
                1758(b)).''.

    (c) Funding.--
            (1) <<NOTE: Effective date.>> In general.--On October 1, 
        2005, out of any funds in the Treasury not otherwise 
        appropriated, the Secretary of the Treasury shall transfer to 
        the Secretary of Agriculture to assist States in carrying out 
        the amendments contained in this section and the provisions of 
        section 9(b)(3) of the Richard B. Russell National School Lunch 
        Act (as amended by section 105(a)) $9,000,000, to remain 
        available until expended.
            (2) Receipt and acceptance.--The Secretary shall be entitled 
        to receive, shall accept, and shall use to assist States in 
        carrying out the amendments made by this section and the 
        provisions of section 9(b)(3) of the Richard B. Russell National 
        School Lunch Act (as amended by section 105(a)) the funds 
        transferred under paragraph (1), without further appropriation.

    (d) Conforming Amendments.--
            (1) <<NOTE: Effective date. 42 USC 1758 note.>> Effective 
        July 1, 2008, paragraph (5) of section 9(b) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1758(b)) (as added 
        by subsection (b)(1)) is amended--
                    (A) by striking subparagraph (B);
                    (B) by striking ``certification.--'' and all that 
                follows through ``In general.--'' and inserting 
                ``certification.--''; and
                    (C) by redesignating clauses (i) through (iv) as 
                subparagraphs (A) through (D), respectively, and 
                indenting appropriately.
            (2) Section 9 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1758) (as amended by subsection (a)(1)) is 
        amended--
                    (A) in subsection (b)(12)(B), by striking 
                ``paragraph (2)(C)'' and inserting ``this subsection''; 
                and
                    (B) in the second sentence of subsection (d)(1), by 
                striking ``subsection (b)(2)(C)'' and inserting 
                ``subsection (b)(3)(G)''.

[[Page 118 STAT. 738]]

            (3) Section 11(e) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1759a(e)) is amended in the first sentence 
        by striking ``section 9(b)(3)'' and inserting ``section 
        9(b)(9)''.

SEC. 105. HOUSEHOLD APPLICATIONS.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) (as amended by section 
104(a)(2)(B)) is amended by striking paragraph (3) and inserting the 
following:
            ``(3) Household applications.--
                    ``(A) Definition of household application.--In this 
                paragraph, the term `household application' means an 
                application for a child of a household to receive free 
                or reduced price school lunches under this Act, or free 
                or reduced price school breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), for 
                which an eligibility determination is made other than 
                under paragraph (4) or (5).
                    ``(B) Eligibility determination.--
                          ``(i) In general.--An eligibility 
                      determination shall be made on the basis of a 
                      complete household application executed by an 
                      adult member of the household or in accordance 
                      with guidance issued by the Secretary.
                          ``(ii) Electronic signatures and 
                      applications.--A household application may be 
                      executed using an electronic signature if--
                                    ``(I) the application is submitted 
                                electronically; and
                                    ``(II) the electronic application 
                                filing system meets confidentiality 
                                standards established by the Secretary.
                    ``(C) Children in household.--
                          ``(i) In general.--The household application 
                      shall identify the names of each child in the 
                      household for whom meal benefits are requested.
                          ``(ii) Separate applications.--A State 
                      educational agency or local educational agency may 
                      not request a separate application for each child 
                      in the household that attends schools under the 
                      same local educational agency.
                    ``(D) Verification of sample.--
                          ``(i) Definitions.--In this subparagraph:
                                    ``(I) Error prone application.--The 
                                term `error prone application' means an 
                                approved household application that--
                                            ``(aa) indicates monthly 
                                        income that is within $100, or 
                                        an annual income that is within 
                                        $1,200, of the income 
                                        eligibility limitation for free 
                                        or reduced price meals; or
                                            ``(bb) in lieu of the 
                                        criteria established under item 
                                        (aa), meets criteria established 
                                        by the Secretary.
                                    ``(II) Non-response rate.--The term 
                                `non-response rate' means (in accordance 
                                with guidelines established by the 
                                Secretary) the percentage of approved 
                                household applications for which

[[Page 118 STAT. 739]]

                                verification information has not been 
                                obtained by a local educational agency 
                                after attempted verification under 
                                subparagraphs (F) and (G).
                          ``(ii) Verification of sample.--Each school 
                      year, a local educational agency shall verify 
                      eligibility of the children in a sample of 
                      household applications approved for the school 
                      year by the local educational agency, as 
                      determined by the Secretary in accordance with 
                      this subsection.
                          ``(iii) Sample size.--Except as otherwise 
                      provided in this paragraph, the sample for a local 
                      educational agency for a school year shall equal 
                      the lesser of--
                                    ``(I) 3 percent of all applications 
                                approved by the local educational agency 
                                for the school year, as of October 1 of 
                                the school year, selected from error 
                                prone applications; or
                                    ``(II) 3,000 error prone 
                                applications approved by the local 
                                educational agency for the school year, 
                                as of October 1 of the school year.
                          ``(iv) Alternative sample size.--
                                    ``(I) In general.--If the conditions 
                                described in subclause (IV) are met, the 
                                verification sample size for a local 
                                educational agency shall be the sample 
                                size described in subclause (II) or 
                                (III), as determined by the local 
                                educational agency.
                                    ``(II) 3,000/3 percent option.--The 
                                sample size described in this subclause 
                                shall be the lesser of 3,000, or 3 
                                percent of, applications selected at 
                                random from applications approved by the 
                                local educational agency for the school 
                                year, as of October 1 of the school 
                                year.
                                    ``(III) 1,000/1 percent plus 
                                option.--
                                            ``(aa) In general.--The 
                                        sample size described in this 
                                        subclause shall be the sum of--

                                              
                                              
                                            `
                                            `
                                            (
                                            A
                                            A
                                            )
                                             
                                            t
                                            h
                                            e
                                             
                                            l
                                            e
                                            s
                                            s
                                            e
                                            r
                                             
                                            o
                                            f
                                             
                                            1
                                            ,
                                            0
                                            0
                                            0
                                            ,
                                             
                                            o
                                            r
                                             
                                            1
                                             
                                            p
                                            e
                                            r
                                            c
                                            e
                                            n
                                            t
                                             
                                            o
                                            f
                                            ,
                                             
                                            a
                                            l
                                            l
                                             
                                            a
                                            p
                                            p
                                            l
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                             
                                            a
                                            p
                                            p
                                            r
                                            o
                                            v
                                            e
                                            d
                                             
                                            b
                                            y
                                             
                                            t
                                            h
                                            e
                                             
                                            l
                                            o
                                            c
                                            a
                                            l
                                             
                                            e
                                            d
                                            u
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            a
                                            l
                                             
                                            a
                                            g
                                            e
                                            n
                                            c
                                            y
                                             
                                            f
                                            o
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                            ,
                                             
                                            a
                                            s
                                             
                                            o
                                            f
                                             
                                            O
                                            c
                                            t
                                            o
                                            b
                                            e
                                            r
                                             
                                            1
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                            ,
                                             
                                            s
                                            e
                                            l
                                            e
                                            c
                                            t
                                            e
                                            d
                                             
                                            f
                                            r
                                            o
                                            m
                                             
                                            e
                                            r
                                            r
                                            o
                                            r
                                             
                                            p
                                            r
                                            o
                                            n
                                            e
                                             
                                            a
                                            p
                                            p
                                            l
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                            ;
                                             
                                            a
                                            n
                                            d



                                              
                                              
                                            `
                                            `
                                            (
                                            B
                                            B
                                            )
                                             
                                            t
                                            h
                                            e
                                             
                                            l
                                            e
                                            s
                                            s
                                            e
                                            r
                                             
                                            o
                                            f
                                             
                                            5
                                            0
                                            0
                                            ,
                                             
                                            o
                                            r
                                             
                                            \
                                            1
                                            /
                                            2
                                            \
                                             
                                            o
                                            f
                                             
                                            1
                                             
                                            p
                                            e
                                            r
                                            c
                                            e
                                            n
                                            t
                                             
                                            o
                                            f
                                            ,
                                             
                                            a
                                            p
                                            p
                                            l
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                             
                                            a
                                            p
                                            p
                                            r
                                            o
                                            v
                                            e
                                            d
                                             
                                            b
                                            y
                                             
                                            t
                                            h
                                            e
                                             
                                            l
                                            o
                                            c
                                            a
                                            l
                                             
                                            e
                                            d
                                            u
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            a
                                            l
                                             
                                            a
                                            g
                                            e
                                            n
                                            c
                                            y
                                             
                                            f
                                            o
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                            ,
                                             
                                            a
                                            s
                                             
                                            o
                                            f
                                             
                                            O
                                            c
                                            t
                                            o
                                            b
                                            e
                                            r
                                             
                                            1
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                            ,
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            p
                                            r
                                            o
                                            v
                                            i
                                            d
                                            e
                                             
                                            a
                                             
                                            c
                                            a
                                            s
                                            e
                                             
                                            n
                                            u
                                            m
                                            b
                                            e
                                            r
                                             
                                            (
                                            i
                                            n
                                             
                                            l
                                            i
                                            e
                                            u
                                             
                                            o
                                            f
                                             
                                            i
                                            n
                                            c
                                            o
                                            m
                                            e
                                             
                                            i
                                            n
                                            f
                                            o
                                            r
                                            m
                                            a
                                            t
                                            i
                                            o
                                            n
                                            )
                                             
                                            s
                                            h
                                            o
                                            w
                                            i
                                            n
                                            g
                                             
                                            p
                                            a
                                            r
                                            t
                                            i
                                            c
                                            i
                                            p
                                            a
                                            t
                                            i
                                            o
                                            n
                                             
                                            i
                                            n
                                             
                                            a
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            d
                                            e
                                            s
                                            c
                                            r
                                            i
                                            b
                                            e
                                            d
                                             
                                            i
                                            n
                                             
                                            i
                                            t
                                            e
                                            m
                                             
                                            (
                                            b
                                            b
                                            )
                                             
                                            s
                                            e
                                            l
                                            e
                                            c
                                            t
                                            e
                                            d
                                             
                                            f
                                            r
                                            o
                                            m
                                             
                                            t
                                            h
                                            o
                                            s
                                            e
                                             
                                            a
                                            p
                                            p
                                            r
                                            o
                                            v
                                            e
                                            d
                                             
                                            a
                                            p
                                            p
                                            l
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            p
                                            r
                                            o
                                            v
                                            i
                                            d
                                            e
                                             
                                            a
                                             
                                            c
                                            a
                                            s
                                            e
                                             
                                            n
                                            u
                                            m
                                            b
                                            e
                                            r
                                             
                                            (
                                            i
                                            n
                                             
                                            l
                                            i
                                            e
                                            u
                                             
                                            o
                                            f
                                             
                                            i
                                            n
                                            c
                                            o
                                            m
                                            e
                                             
                                            i
                                            n
                                            f
                                            o
                                            r
                                            m
                                            a
                                            t
                                            i
                                            o
                                            n
                                            )
                                             
                                            v
                                            e
                                            r
                                            i
                                            f
                                            y
                                            i
                                            n
                                            g
                                             
                                            t
                                            h
                                            e
                                             
                                            p
                                            a
                                            r
                                            t
                                            i
                                            c
                                            i
                                            p
                                            a
                                            t
                                            i
                                            o
                                            n


                                            ``(bb) Programs.--The 
                                        programs described in this item 
                                        are--

                                              
                                              
                                            `
                                            `
                                            (
                                            A
                                            A
                                            )
                                             
                                            t
                                            h
                                            e
                                             
                                            f
                                            o
                                            o
                                            d
                                             
                                            s
                                            t
                                            a
                                            m
                                            p
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            e
                                            s
                                            t
                                            a
                                            b
                                            l
                                            i
                                            s
                                            h
                                            e
                                            d
                                             
                                            u
                                            n
                                            d
                                            e
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            F
                                            o
                                            o
                                            d
                                             
                                            S
                                            t
                                            a
                                            m
                                            p
                                             
                                            A
                                            c
                                            t
                                             
                                            o
                                            f
                                             
                                            1
                                            9
                                            7
                                            7
                                             
                                            (
                                            7
                                             
                                            U
                                            S
                                            C
                                             
                                            2
                                            0
                                            1
                                            1
                                             
                                            e
                                            t
                                             
                                            s
                                            e
                                            q
                                            )
                                            ;



[[Page 118 STAT. 740]]


                                              
                                              
                                            `
                                            `
                                            (
                                            B
                                            B
                                            )
                                             
                                            t
                                            h
                                            e
                                             
                                            f
                                            o
                                            o
                                            d
                                             
                                            d
                                            i
                                            s
                                            t
                                            r
                                            i
                                            b
                                            u
                                            t
                                            i
                                            o
                                            n
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            o
                                            n
                                             
                                            I
                                            n
                                            d
                                            i
                                            a
                                            n
                                             
                                            r
                                            e
                                            s
                                            e
                                            r
                                            v
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                             
                                            e
                                            s
                                            t
                                            a
                                            b
                                            l
                                            i
                                            s
                                            h
                                            e
                                            d
                                             
                                            u
                                            n
                                            d
                                            e
                                            r
                                             
                                            s
                                            e
                                            c
                                            t
                                            i
                                            o
                                            n
                                             
                                            4
                                            (
                                            b
                                            )
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            F
                                            o
                                            o
                                            d
                                             
                                            S
                                            t
                                            a
                                            m
                                            p
                                             
                                            A
                                            c
                                            t
                                             
                                            o
                                            f
                                             
                                            1
                                            9
                                            7
                                            7
                                             
                                            (
                                            7
                                             
                                            U
                                            S
                                            C
                                             
                                            2
                                            0
                                            1
                                            3
                                            (
                                            b
                                            )
                                            )
                                            ;
                                             
                                            a
                                            n
                                            d



                                              
                                              
                                            `
                                            `
                                            (
                                            C
                                            C
                                            )
                                             
                                            a
                                             
                                            S
                                            t
                                            a
                                            t
                                            e
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            f
                                            u
                                            n
                                            d
                                            e
                                            d
                                             
                                            u
                                            n
                                            d
                                            e
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            o
                                            f
                                             
                                            b
                                            l
                                            o
                                            c
                                            k
                                             
                                            g
                                            r
                                            a
                                            n
                                            t
                                            s
                                             
                                            t
                                            o
                                             
                                            S
                                            t
                                            a
                                            t
                                            e
                                            s
                                             
                                            f
                                            o
                                            r
                                             
                                            t
                                            e
                                            m
                                            p
                                            o
                                            r
                                            a
                                            r
                                            y
                                             
                                            a
                                            s
                                            s
                                            i
                                            s
                                            t
                                            a
                                            n
                                            c
                                            e
                                             
                                            f
                                            o
                                            r
                                             
                                            n
                                            e
                                            e
                                            d
                                            y
                                             
                                            f
                                            a
                                            m
                                            i
                                            l
                                            i
                                            e
                                            s
                                             
                                            e
                                            s
                                            t
                                            a
                                            b
                                            l
                                            i
                                            s
                                            h
                                            e
                                            d
                                             
                                            u
                                            n
                                            d
                                            e
                                            r
                                             
                                            p
                                            a
                                            r
                                            t
                                             
                                            A
                                             
                                            o
                                            f
                                             
                                            t
                                            i
                                            t
                                            l
                                            e
                                             
                                            I
                                            V
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            S
                                            o
                                            c
                                            i
                                            a
                                            l
                                             
                                            S
                                            e
                                            c
                                            u
                                            r
                                            i
                                            t
                                            y
                                             
                                            A
                                            c
                                            t
                                             
                                            (
                                            4
                                            2
                                             
                                            U
                                            S
                                            C
                                             
                                            6
                                            0
                                            1
                                             
                                            e
                                            t
                                             
                                            s
                                            e
                                            q
                                            )
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            t
                                            h
                                            e
                                             
                                            S
                                            e
                                            c
                                            r
                                            e
                                            t
                                            a
                                            r
                                            y
                                             
                                            d
                                            e
                                            t
                                            e
                                            r
                                            m
                                            i
                                            n
                                            e
                                            s
                                             
                                            c
                                            o
                                            m
                                            p
                                            l
                                            i
                                            e
                                            s
                                             
                                            w
                                            i
                                            t
                                            h
                                             
                                            s
                                            t
                                            a
                                            n
                                            d
                                            a
                                            r
                                            d
                                            s
                                             
                                            e
                                            s
                                            t
                                            a
                                            b
                                            l
                                            i
                                            s
                                            h
                                            e
                                            d
                                             
                                            b
                                            y
                                             
                                            t
                                            h
                                            e
                                             
                                            S
                                            e
                                            c
                                            r
                                            e
                                            t
                                            a
                                            r
                                            y
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            e
                                            n
                                            s
                                            u
                                            r
                                            e
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            t
                                            a
                                            n
                                            d
                                            a
                                            r
                                            d
                                            s
                                             
                                            u
                                            n
                                            d
                                            e
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            S
                                            t
                                            a
                                            t
                                            e
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                             
                                            a
                                            r
                                            e
                                             
                                            c
                                            o
                                            m
                                            p
                                            a
                                            r
                                            a
                                            b
                                            l
                                            e
                                             
                                            t
                                            o
                                             
                                            o
                                            r
                                             
                                            m
                                            o
                                            r
                                            e
                                             
                                            r
                                            e
                                            s
                                            t
                                            r
                                            i
                                            c
                                            t
                                            i
                                            v
                                            e
                                             
                                            t
                                            h
                                            a
                                            n
                                             
                                            t
                                            h
                                            o
                                            s
                                            e
                                             
                                            i
                                            n
                                             
                                            e
                                            f
                                            f
                                            e
                                            c
                                            t
                                             
                                            o
                                            n
                                             
                                            J
                                            u
                                            n
                                            e
                                             
                                            1
                                            ,
                                             
                                            1
                                            9
                                            9
                                            5


                                    ``(IV) Conditions.--The conditions 
                                referred to in subclause (I) shall be 
                                met for a local educational agency for a 
                                school year if--
                                            ``(aa) the nonresponse rate 
                                        for the local educational agency 
                                        for the preceding school year is 
                                        less than 20 percent; or
                                            ``(bb) the local educational 
                                        agency has more than 20,000 
                                        children approved by application 
                                        by the local educational agency 
                                        as eligible for free or reduced 
                                        price meals for the school year, 
                                        as of October 1 of the school 
                                        year, and--

                                              
                                              
                                            `
                                            `
                                            (
                                            A
                                            A
                                            )
                                             
                                            t
                                            h
                                            e
                                             
                                            n
                                            o
                                            n
                                            r
                                            e
                                            s
                                            p
                                            o
                                            n
                                            s
                                            e
                                             
                                            r
                                            a
                                            t
                                            e
                                             
                                            f
                                            o
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            p
                                            r
                                            e
                                            c
                                            e
                                            d
                                            i
                                            n
                                            g
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                             
                                            i
                                            s
                                             
                                            a
                                            t
                                             
                                            l
                                            e
                                            a
                                            s
                                            t
                                             
                                            1
                                            0
                                             
                                            p
                                            e
                                            r
                                            c
                                            e
                                            n
                                            t
                                             
                                            b
                                            e
                                            l
                                            o
                                            w
                                             
                                            t
                                            h
                                            e
                                             
                                            n
                                            o
                                            n
                                            r
                                            e
                                            s
                                            p
                                            o
                                            n
                                            s
                                            e
                                             
                                            r
                                            a
                                            t
                                            e
                                             
                                            f
                                            o
                                            r
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            e
                                            c
                                            o
                                            n
                                            d
                                             
                                            p
                                            r
                                            e
                                            c
                                            e
                                            d
                                            i
                                            n
                                            g
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                            ;
                                             
                                            o
                                            r



                                              
                                              
                                            `
                                            `
                                            (
                                            B
                                            B
                                            )
                                             
                                            i
                                            n
                                             
                                            t
                                            h
                                            e
                                             
                                            c
                                            a
                                            s
                                            e
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            s
                                            c
                                            h
                                            o
                                            o
                                            l
                                             
                                            y
                                            e
                                            a
                                            r
                                             
                                            b
                                            e
                                            g
                                            i
                                            n
                                            n
                                            i
                                            n
                                            g
                                             
                                            J
                                            u
                                            l
                                            y
                                             
                                            2
                                            0
                                            0
                                            5
                                            ,
                                             
                                            t
                                            h
                                            e
                                             
                                            l
                                            o
                                            c
                                            a
                                            l
                                             
                                            e
                                            d
                                            u
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            a
                                            l
                                             
                                            a
                                            g
                                            e
                                            n
                                            c
                                            y
                                             
                                            a
                                            t
                                            t
                                            e
                                            m
                                            p
                                            t
                                            s
                                             
                                            t
                                            o
                                             
                                            v
                                            e
                                            r
                                            i
                                            f
                                            y
                                             
                                            a
                                            l
                                            l
                                             
                                            a
                                            p
                                            p
                                            r
                                            o
                                            v
                                            e
                                            d
                                             
                                            h
                                            o
                                            u
                                            s
                                            e
                                            h
                                            o
                                            l
                                            d
                                             
                                            a
                                            p
                                            p
                                            l
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                            s
                                             
                                            s
                                            e
                                            l
                                            e
                                            c
                                            t
                                            e
                                            d
                                             
                                            f
                                            o
                                            r
                                             
                                            v
                                            e
                                            r
                                            i
                                            f
                                            i
                                            c
                                            a
                                            t
                                            i
                                            o
                                            n
                                             
                                            t
                                            h
                                            r
                                            o
                                            u
                                            g
                                            h
                                             
                                            u
                                            s
                                            e
                                             
                                            o
                                            f
                                             
                                            p
                                            u
                                            b
                                            l
                                            i
                                            c
                                             
                                            a
                                            g
                                            e
                                            n
                                            c
                                            y
                                             
                                            r
                                            e
                                            c
                                            o
                                            r
                                            d
                                            s
                                             
                                            f
                                            r
                                            o
                                            m
                                             
                                            a
                                            t
                                             
                                            l
                                            e
                                            a
                                            s
                                            t
                                             
                                            2
                                             
                                            o
                                            f
                                             
                                            t
                                            h
                                            e
                                             
                                            p
                                            r
                                            o
                                            g
                                            r
                                            a
                                            m
                                            s
                                             
                                            o
                                            r
                                             
                                            s
                                            o
                                            u
                                            r
                                            c
                                            e
                                            s
                                             
                                            o
                                            f
                                             
                                            i
                                            n
                                            f
                                            o
                                            r
                                            m
                                            a
                                            t
                                            i
                                            o
                                            n
                                             
                                            d
                                            e
                                            s
                                            c
                                            r
                                            i
                                            b
                                            e
                                            d
                                             
                                            i
                                            n
                                             
                                            s
                                            u
                                            b
                                            p
                                            a
                                            r
                                            a
                                            g
                                            r
                                            a
                                            p
                                            h
                                             
                                            (
                                            F
                                            )
                                            (
                                            i
                                            )


                          ``(v) Additional selected applications.--A 
                      sample for a local educational agency for a school 
                      year under clauses (iii) and (iv)(III)(AA) shall 
                      include the number of additional randomly selected 
                      approved household applications that are required 
                      to comply with the sample size requirements in 
                      those clauses.
                    ``(E) Preliminary review.--
                          ``(i) Review for accuracy.--
                                    ``(I) In general.--Prior to 
                                conducting any other verification 
                                activity for approved household 
                                applications selected for verification, 
                                the local educational agency shall 
                                ensure that the initial eligibility 
                                determination for each approved 
                                household application is reviewed for 
                                accuracy by an individual other than the 
                                individual making the initial 
                                eligibility determination, unless 
                                otherwise determined by the Secretary.

[[Page 118 STAT. 741]]

                                    ``(II) Waiver.--The requirements of 
                                subclause (I) shall be waived for a 
                                local educational agency if the local 
                                educational agency is using a 
                                technology-based solution that 
                                demonstrates a high level of accuracy, 
                                to the satisfaction of the Secretary, in 
                                processing an initial eligibility 
                                determination in accordance with the 
                                income eligibility guidelines of the 
                                school lunch program.
                          ``(ii) Correct eligibility determination.--If 
                      the review indicates that the initial eligibility 
                      determination is correct, the local educational 
                      agency shall verify the approved household 
                      application.
                          ``(iii) Incorrect eligibility determination.--
                      If the review indicates that the initial 
                      eligibility determination is incorrect, the local 
                      educational agency shall (as determined by the 
                      Secretary)--
                                    ``(I) correct the eligibility status 
                                of the household;
                                    
                                ``(II) <<NOTE: Notification.>> notify 
                                the household of the change;
                                    ``(III) in any case in which the 
                                review indicates that the household is 
                                not eligible for free or reduced-price 
                                meals, notify the household of the 
                                reason for the ineligibility and that 
                                the household may reapply with income 
                                documentation for free or reduced-price 
                                meals; and
                                    ``(IV) in any case in which the 
                                review indicates that the household is 
                                eligible for free or reduced-price 
                                meals, verify the approved household 
                                application.
                    ``(F) Direct verification.--
                          ``(i) In general.--Subject to clauses (ii) and 
                      (iii), to verify eligibility for free or reduced 
                      price meals for approved household applications 
                      selected for verification, the local educational 
                      agency may (in accordance with criteria 
                      established by the Secretary) first obtain and use 
                      income and program participation information from 
                      a public agency administering--
                                    ``(I) the food stamp program 
                                established under the Food Stamp Act of 
                                1977 (7 U.S.C. 2011 et seq.);
                                    ``(II) the food distribution program 
                                on Indian reservations established under 
                                section 4(b) of the Food Stamp Act of 
                                1977 (7 U.S.C. 2013(b));
                                    ``(III) the temporary assistance for 
                                needy families program funded under part 
                                A of title IV of the Social Security Act 
                                (42 U.S.C. 601 et seq.);
                                    ``(IV) the State medicaid program 
                                under title XIX of the Social Security 
                                Act (42 U.S.C. 1396 et seq.); or
                                    ``(V) a similar income-tested 
                                program or other source of information, 
                                as determined by the Secretary.
                          ``(ii) <<NOTE: Records.>> Free meals.--Public 
                      agency records that may be obtained and used under 
                      clause (i) to verify eligibility for free meals 
                      for approved household applications selected for 
                      verification shall include the most recent 
                      available information (other than information

[[Page 118 STAT. 742]]

                      reflecting program participation or income before 
                      the 180-day period ending on the date of 
                      application for free meals) that is relied on to 
                      administer--
                                    ``(I) a program or source of 
                                information described in clause (i) 
                                (other than clause (i)(IV)); or
                                    ``(II) the State plan for medical 
                                assistance under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et seq.) 
                                in--
                                            ``(aa) a State in which the 
                                        income eligibility limit applied 
                                        under section 1902(l)(2)(C) of 
                                        that Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not more than 
                                        133 percent of the official 
                                        poverty line described in 
                                        section 1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 1396a(l)(2)(A)); 
                                        or
                                            ``(bb) a State that 
                                        otherwise identifies households 
                                        that have income that is not 
                                        more than 133 percent of the 
                                        official poverty line described 
                                        in section 1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 1396a(l)(2)(A)).
                          ``(iii) <<NOTE: Records.>> Reduced price 
                      meals.--Public agency records that may be obtained 
                      and used under clause (i) to verify eligibility 
                      for reduced price meals for approved household 
                      applications selected for verification shall 
                      include the most recent available information 
                      (other than information reflecting program 
                      participation or income before the 180-day period 
                      ending on the date of application for reduced 
                      price meals) that is relied on to administer--
                                    ``(I) a program or source of 
                                information described in clause (i) 
                                (other than clause (i)(IV)); or
                                    ``(II) the State plan for medical 
                                assistance under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et seq.) 
                                in--
                                            ``(aa) a State in which the 
                                        income eligibility limit applied 
                                        under section 1902(l)(2)(C) of 
                                        that Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not more than 
                                        185 percent of the official 
                                        poverty line described in 
                                        section 1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 1396a(l)(2)(A)); 
                                        or
                                            ``(bb) a State that 
                                        otherwise identifies households 
                                        that have income that is not 
                                        more than 185 percent of the 
                                        official poverty line described 
                                        in section 1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 1396a(l)(2)(A)).
                          ``(iv) <<NOTE: Deadline.>> Evaluation.--Not 
                      later than 3 years after the date of enactment of 
                      this subparagraph, the Secretary shall complete an 
                      evaluation of--
                                    ``(I) the effectiveness of direct 
                                verification carried out under this 
                                subparagraph in decreasing the portion 
                                of the verification sample that must be 
                                verified under subparagraph (G) while 
                                ensuring that adequate verification 
                                information is obtained; and
                                    ``(II) the feasibility of direct 
                                verification by State agencies and local 
                                educational agencies.

[[Page 118 STAT. 743]]

                          ``(v) Expanded use of direct verification.--If 
                      the Secretary determines that direct verification 
                      significantly decreases the portion of the 
                      verification sample that must be verified under 
                      subparagraph (G), while ensuring that adequate 
                      verification information is obtained, and can be 
                      conducted by most State agencies and local 
                      educational agencies, the Secretary may require a 
                      State agency or local educational agency to 
                      implement direct verification through 1 or more of 
                      the programs described in clause (i), as 
                      determined by the Secretary, unless the State 
                      agency or local educational agency demonstrates 
                      (under criteria established by the Secretary) that 
                      the State agency or local educational agency lacks 
                      the capacity to conduct, or is unable to 
                      implement, direct verification.
                    ``(G) Household verification.--
                          ``(i) <<NOTE: Notice.>> In general.--If an 
                      approved household application is not verified 
                      through the use of public agency records, a local 
                      educational agency shall provide to the household 
                      written notice that--
                                    ``(I) the approved household 
                                application has been selected for 
                                verification; and
                                    ``(II) the household is required to 
                                submit verification information to 
                                confirm eligibility for free or reduced 
                                price meals.
                          ``(ii) Phone number.--The written notice in 
                      clause (i) shall include a toll-free phone number 
                      that parents and legal guardians in households 
                      selected for verification can call for assistance 
                      with the verification process.
                          ``(iii) Followup activities.--If a household 
                      does not respond to a verification request, a 
                      local educational agency shall make at least 1 
                      attempt to obtain the necessary verification from 
                      the household in accordance with guidelines and 
                      regulations promulgated by the Secretary.
                          ``(iv) Contract authority for school food 
                      authorities.--A local educational agency may 
                      contract (under standards established by the 
                      Secretary) with a third party to assist the local 
                      educational agency in carrying out clause (iii).
                    ``(H) Verification deadline.--
                          ``(i) General deadline.--
                                    ``(I) In general.--Subject to 
                                subclause (II), not later than November 
                                15 of each school year, a local 
                                educational agency shall complete the 
                                verification activities required for the 
                                school year (including followup 
                                activities).
                                    ``(II) Extension.--Under criteria 
                                established by the Secretary, a State 
                                may extend the deadline established 
                                under subclause (I) for a school year 
                                for a local educational agency to 
                                December 15 of the school year.
                          ``(ii) Eligibility changes.--Based on the 
                      verification activities, the local educational 
                      agency shall make appropriate modifications to the 
                      eligibility

[[Page 118 STAT. 744]]

                      determinations made for household applications in 
                      accordance with criteria established by the 
                      Secretary.
                    ``(I) Local conditions.--In the case of a natural 
                disaster, civil disorder, strike, or other local 
                condition (as determined by the Secretary), the 
                Secretary may substitute alternatives for--
                          ``(i) the sample size and sample selection 
                      criteria established under subparagraph (D); and
                          ``(ii) the verification deadline established 
                      under subparagraph (H).
                    ``(J) Individual review.--In accordance with 
                criteria established by the Secretary, the local 
                educational agency may, on individual review--
                          ``(i) decline to verify no more than 5 percent 
                      of approved household applications selected under 
                      subparagraph (D); and
                          ``(ii) replace the approved household 
                      applications with other approved household 
                      applications to be verified.
                    ``(K) Feasibility study.--
                          ``(i) In general.--The Secretary shall conduct 
                      a study of the feasibility of using computer 
                      technology (including data mining) to reduce--
                                    ``(I) overcertification errors in 
                                the school lunch program under this Act;
                                    ``(II) waste, fraud, and abuse in 
                                connection with this paragraph; and
                                    ``(III) errors, waste, fraud, and 
                                abuse in other nutrition programs, as 
                                determined to be appropriate by the 
                                Secretary.
                          ``(ii) Report.--Not later than 180 days after 
                      the date of enactment of this paragraph, the 
                      Secretary shall submit to the Committee on 
                      Education and the Workforce of the House of 
                      Representatives and the Committee on Agriculture, 
                      Nutrition, and Forestry of the Senate a report 
                      describing--
                                    ``(I) the results of the feasibility 
                                study conducted under this subsection;
                                    ``(II) how a computer system using 
                                technology described in clause (i) could 
                                be implemented;
                                    ``(III) a plan for implementation; 
                                and
                                    ``(IV) proposed legislation, if 
                                necessary, to implement the system.''.

    (b) Conforming Amendments.--Section 1902(a)(7) of the Social 
Security Act (42 U.S.C. 1396a(a)(7)) is amended--
            (1) by striking ``connected with the'' and inserting 
        ``connected with--
                    ``(A) the'';
            (2) by adding ``and'' after the semicolon; and
            (3) by adding at the end the following:
                    ``(B) at State option, the exchange of information 
                necessary to verify the certification of eligibility of 
                children for free or reduced price breakfasts under the 
                Child Nutrition Act of 1966 and free or reduced price 
                lunches under the Richard B. Russell National School 
                Lunch Act, in accordance with section 9(b) of that Act, 
                using data standards and formats established by the 
                State agency;''.

[[Page 118 STAT. 745]]

    (c) Evaluation Funding.--
            (1) <<NOTE: Effective date.>> In general.--On October 1, 
        2005, out of any funds in the Treasury not otherwise 
        appropriated, the Secretary of the Treasury shall transfer to 
        the Secretary of Agriculture to conduct the evaluation required 
        by section 9(b)(3)(F)(iv) of the Richard B. Russell National 
        School Lunch Act (as amended by subsection (a)) $2,000,000, to 
        remain available until expended.
            (2) Receipt and acceptance.--The Secretary of Agriculture 
        shall be entitled to receive, shall accept, and shall use to 
        carry out this section the funds transferred under paragraph 
        (1), without further appropriation.
SEC. 106. DURATION OF ELIGIBILITY FOR FREE OR REDUCED PRICE MEALS.

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

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

    (a) Categorical Eligibility for Free Lunches and Breakfasts.--
Section 9(b)(12)(A) of the Richard B. Russell National School Lunch Act 
(as redesignated by section 104(a)(1) of this Act) is amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) in clause (iii), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(iv) a homeless child or youth (defined as 1 of 
                the individuals described in section 725(2) of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11434a(2));
                    ``(v) served by the runaway and homeless youth grant 
                program established under the Runaway and Homeless Youth 
                Act (42 U.S.C. 5701 et seq.); or
                    ``(vi) a migratory child (as defined in section 1309 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6399)).''.

    (b) Documentation.--Section 9(d)(2) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--

[[Page 118 STAT. 746]]

            (1) in subparagraph (B), by striking ``or'';
            (2) in subparagraph (C), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after subparagraph (C) the following:
            ``(D) documentation has been provided to the appropriate 
        local educational agency showing that the child meets the 
        criteria specified in clauses (iv) or (v) of subsection 
        (b)(12)(A); or
            ``(E) documentation has been provided to the appropriate 
        local educational agency showing the status of the child as a 
        migratory child (as defined in section 1309 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6399)).''.

SEC. 108. CERTIFICATION BY LOCAL EDUCATIONAL AGENCIES.

    (a) Certification by Local Educational Agency.--Section 9 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1758) is 
amended--
            (1) in the second sentence of subsection (b)(11) (as 
        redesignated by section 104(a)(1)), by striking ``Local school 
        authorities'' and inserting ``Local educational agencies''; and
            (2) in subsection (d)(2)--
                    (A) by striking ``local school food authority'' each 
                place it appears and inserting ``local educational 
                agency''; and
                    (B) in subparagraph (A), by striking ``such 
                authority'' and inserting ``the local educational 
                agency''.

    (b) Definition of Local Educational Agency.--Section 12(d) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (3) and 
        moving the paragraph to appear after paragraph (2);
            (2) by redesignating paragraphs (3) through (7) (as those 
        paragraphs existed before the amendment made by paragraph (1)) 
        as paragraphs (5) through (9), respectively; and
            (3) by inserting after paragraph (3) (as redesignated by 
        paragraph (1)) the following:
            ``(4) Local educational agency.--
                    ``(A) In general.--The term `local educational 
                agency' has the meaning given the term in section 9101 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801).
                    ``(B) Inclusion.--The term `local educational 
                agency' includes, in the case of a private nonprofit 
                school, an appropriate entity determined by the 
                Secretary.''.

    (c) School Breakfast Program.--Section 4(b)(1)(E)) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(E)) is amended by striking 
``school food authority'' each place it appears and inserting ``local 
educational agency''.

SEC. 109. EXCLUSION OF MILITARY HOUSING ALLOWANCES.

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

[[Page 118 STAT. 747]]

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

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

SEC. 111. FOOD SAFETY.

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

SEC. 112. PURCHASES OF LOCALLY PRODUCED FOODS.

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

SEC. 113. SPECIAL ASSISTANCE.

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

[[Page 118 STAT. 748]]

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

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

SEC. 115. PROCUREMENT TRAINING.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) (as amended by section 114) is amended by inserting after 
subsection (l) the following:
    ``(m) Procurement Training.--
            ``(1) In general.--Subject to the availability of funds made 
        available under paragraph (4), the Secretary shall provide 
        technical assistance and training to States, State agencies, 
        schools, and school food authorities in the procurement of goods 
        and services for programs under this Act or the Child Nutrition 
        Act of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 of 
        that Act (42 U.S.C. 1786)).
            ``(2) Buy american training.--Activities carried out under 
        paragraph (1) shall include technical assistance and training to 
        ensure compliance with subsection (n).
            ``(3) Procuring safe foods.--Activities carried out under 
        paragraph (1) shall include technical assistance and training on 
        procuring safe foods, including the use of model specifications 
        for procuring safe foods.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        each of fiscal years 2005 through 2009, to remain available 
        until expended.''.

SEC. 116. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Seamless Summer Option.--Section 13(a) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(a)) is amended by adding at 
the end the following:
            ``(8) Seamless summer option.--Except as otherwise 
        determined by the Secretary, a service institution that is a 
        public or private nonprofit school food authority may provide 
        summer or school vacation food service in accordance with 
        applicable provisions of law governing the school lunch program 
        established under this Act or the school breakfast program 
        established under the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.).''.

    (b) Seamless Summer Reimbursements.--Section 13(b)(1) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1761(b)(1)) is amended 
by adding at the end the following:
                    ``(D) Seamless summer reimbursements.--A service 
                institution described in subsection (a)(8) shall be 
                reimbursed for meals and meal supplements in accordance 
                with the applicable provisions under this Act (other 
                than subparagraphs (A), (B), and (C) of this paragraph 
                and paragraph (4)) and the Child Nutrition Act of 1966 
                (42 U.S.C. 1771 et seq.), as determined by the 
                Secretary.''.

    (c) Summer Food Service Eligibility Criteria.--Section 13(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as 
amended by subsection (a)) is amended by adding at the end the 
following--
            ``(9) Exemption.--

[[Page 118 STAT. 749]]

                    ``(A) In general.--For each of calendar years 2005 
                and 2006 in rural areas of the State of Pennsylvania (as 
                determined by the Secretary), the threshold for 
                determining `areas in which poor economic conditions 
                exist' under paragraph (1)(C) shall be 40 percent.
                    ``(B) Evaluation.--
                          ``(i) In general.--The Secretary, acting 
                      through the Administrator of the Food and 
                      Nutrition Service, shall evaluate the impact of 
                      the eligibility criteria described in subparagraph 
                      (A) as compared to the eligibility criteria 
                      described in paragraph (1)(C).
                          ``(ii) Impact.--The evaluation shall assess 
                      the impact of the threshold in subparagraph (A) 
                      on--
                                    ``(I) the number of sponsors 
                                offering meals through the summer food 
                                service program;
                                    ``(II) the number of sites offering 
                                meals through the summer food service 
                                program;
                                    ``(III) the geographic location of 
                                the sites;
                                    ``(IV) services provided to eligible 
                                children; and
                                    ``(V) other factors determined by 
                                the Secretary.
                          ``(iii) Report.--Not later than January 1, 
                      2008, the Secretary shall submit to the Committee 
                      on Education and the Workforce of the House of 
                      Representatives and the Committee on Agriculture, 
                      Nutrition, and Forestry of the Senate a report 
                      describing the results of the evaluation under 
                      this subparagraph.
                          ``(iv) Funding.--
                                    ``(I) <<NOTE: Effective date.>> In 
                                general.--On January 1, 2005, out of any 
                                funds in the Treasury not otherwise 
                                appropriated, the Secretary of the 
                                Treasury shall transfer to the Secretary 
                                of Agriculture to carry out this 
                                subparagraph $400,000, to remain 
                                available until expended.
                                    ``(II) Receipt and acceptance.--The 
                                Secretary shall be entitled to receive, 
                                shall accept, and shall use to carry out 
                                this subparagraph the funds transferred 
                                under subclause (I), without further 
                                appropriation.''.

    (d) Summer Food Service Rural Transportation.--Section 13(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as 
amended by subsection (c)) is amended by adding at the end the 
following:
            ``(10) Summer food service rural transportation.--
                    ``(A) <<NOTE: Grants.>> In general.--The Secretary 
                shall provide grants, through not more than 5 eligible 
                State agencies selected by the Secretary, to not more 
                than 60 eligible service institutions selected by the 
                Secretary to increase participation at congregate 
                feeding sites in the summer food service program for 
                children authorized by this section through innovative 
                approaches to limited transportation in rural areas.
                    ``(B) Eligibility.--To be eligible to receive a 
                grant under this paragraph--
                          ``(i) a State agency shall submit an 
                      application to the Secretary, in such manner as 
                      the Secretary shall establish, and meet criteria 
                      established by the Secretary; and

[[Page 118 STAT. 750]]

                          ``(ii) a service institution shall agree to 
                      the terms and conditions of the grant, as 
                      established by the Secretary.
                    ``(C) Duration.--A service institution that receives 
                a grant under this paragraph may use the grant funds 
                during the 3-fiscal year period beginning in fiscal year 
                2005.
                    ``(D) Reports.--The Secretary shall submit to the 
                Committee on Education and the Workforce of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate--
                          ``(i) not later than January 1, 2007, an 
                      interim report that describes--
                                    ``(I) the use of funds made 
                                available under this paragraph; and
                                    ``(II) any progress made by using 
                                funds from each grant provided under 
                                this paragraph; and
                          ``(ii) not later than January 1, 2008, a final 
                      report that describes--
                                    ``(I) the use of funds made 
                                available under this paragraph;
                                    ``(II) any progress made by using 
                                funds from each grant provided under 
                                this paragraph;
                                    ``(III) the impact of this paragraph 
                                on participation in the summer food 
                                service program for children authorized 
                                by this section; and
                                    ``(IV) any recommendations by the 
                                Secretary concerning the activities of 
                                the service institutions receiving 
                                grants under this paragraph.
                    ``(E) Funding.--
                          ``(i) <<NOTE: Effective dates.>> In general.--
                      Out of any funds in the Treasury not otherwise 
                      appropriated, the Secretary of the Treasury shall 
                      transfer to the Secretary of Agriculture to carry 
                      out this paragraph--
                                    ``(I) on October 1, 2005, 
                                $2,000,000; and
                                    ``(II) on October 1, 2006, and 
                                October 1, 2007, $1,000,000.
                          ``(ii) Receipt and acceptance.--The Secretary 
                      shall be entitled to receive, shall accept, and 
                      shall use to carry out this paragraph the funds 
                      transferred under clause (i), without further 
                      appropriation.
                          ``(iii) Availability of funds.--Funds 
                      transferred under clause (i) shall remain 
                      available until expended.
                          ``(iv) Reallocation.--The Secretary may 
                      reallocate any amounts made available to carry out 
                      this paragraph that are not obligated or expended, 
                      as determined by the Secretary.''.

    (e) Reauthorization.--Section 13(q) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(q)) is amended by striking 
``June 30, 2004'' and inserting ``September 30, 2009''.
    (f) Simplified Summer Food Programs.--
            (1) Definition of eligible state.--Section 18(f) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f)) 
        is amended by striking paragraph (1) and inserting the 
        following:
            ``(1) Definition of eligible state.--In this subsection, the 
        term `eligible State' means--

[[Page 118 STAT. 751]]

                    ``(A) a State participating in the program under 
                this subsection as of May 1, 2004; and
                    ``(B) a State in which (based on data available in 
                April 2004)--
                          ``(i) the percentage obtained by dividing--
                                    ``(I) the sum of--
                                            ``(aa) the average daily 
                                        number of children attending the 
                                        summer food service program in 
                                        the State in July 2003; and
                                            ``(bb) the average daily 
                                        number of children receiving 
                                        free or reduced price meals 
                                        under the school lunch program 
                                        in the State in July 2003; by
                                    ``(II) the average daily number of 
                                children receiving free or reduced price 
                                meals under the school lunch program in 
                                the State in March 2003; is less than
                          ``(ii) 66.67 percent of the percentage 
                      obtained by dividing--
                                    ``(I) the sum of--
                                            ``(aa) the average daily 
                                        number of children attending the 
                                        summer food service program in 
                                        all States in July 2003; and
                                            ``(bb) the average daily 
                                        number of children receiving 
                                        free or reduced price meals 
                                        under the school lunch program 
                                        in all States in July 2003; by
                                    ``(II) the average daily number of 
                                children receiving free or reduced price 
                                meals under the school lunch program in 
                                all States in March 2003.''.
            (2) Duration.--Section 18(f)(2) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1769(f)(2)) is amended by 
        striking ``During the period beginning October 1, 2000, and 
        ending June 30, 2004, the'' and inserting ``The''.
            (3) Private nonprofit organizations.--Section 18(f)(3) of 
        the Richard B. Russell National School Lunch Act (42 U.S.C. 
        1769(f)(3)) is amended in subparagraphs (A) and (B) by striking 
        ``(other than a service institution described in section 
        13(a)(7))'' both places it appears.
            (4) Report.--Section 18(f) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1769(f)) is amended by 
        striking paragraph (6) and inserting the following:
            ``(6) Report.--Not later than April 30, 2007, the Secretary 
        shall submit to the Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report that includes--
                    ``(A) the evaluations completed by the Secretary 
                under paragraph (5); and
                    ``(B) any recommendations of the Secretary 
                concerning the programs.''.
            (5) Conforming amendments.--Section 18(f) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1769(f)) is 
        amended--
                    (A) by striking the subsection heading and inserting 
                the following:

    ``(f) Simplified Summer Food Programs.--'';

[[Page 118 STAT. 752]]

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

SEC. 117. COMMODITY DISTRIBUTION PROGRAM.

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

SEC. 118. NOTICE OF IRRADIATED FOOD PRODUCTS.

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

[[Page 118 STAT. 753]]

                          ``(ii) is prominently displayed in a clear and 
                      understandable format on the container;
                    ``(F) irradiated food products are not commingled in 
                containers with food products that are not irradiated; 
                and
                    ``(G) schools that offer irradiated food products 
                are encouraged to offer alternatives to irradiated food 
                products as part of the meal plan used by the 
                schools.''.

SEC. 119. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Definition of Institution.--
            (1) In general.--Section 17(a)(2)(B)(i) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1766(a)(2)(B)(i)) 
        is amended by striking ``during'' and all that follows through 
        ``2004,''.
            (2) Conforming amendment.--Section 17 of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1766) is amended by 
        striking subsection (p).

    (b) Duration of Determination as Tier I Family or Group Day Care 
Home.--Section 17(f)(3)(E)(iii) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(3)(E)(iii)) is amended by striking 
``3 years'' and inserting ``5 years''.
    (c) Audits.--Section 17(i) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``(i) The'' and 
inserting the following:
    ``(i) Audits.--
            ``(1) Disregards.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                conducting management evaluations, reviews, or audits 
                under this section, the Secretary or a State agency may 
                disregard any overpayment to an institution for a fiscal 
                year if the total overpayment to the institution for the 
                fiscal year does not exceed an amount that is consistent 
                with the disregards allowed in other programs under this 
                Act and recognizes the cost of collecting small claims, 
                as determined by the Secretary.
                    ``(B) Criminal or fraud violations.--In carrying out 
                this paragraph, the Secretary and a State agency shall 
                not disregard any overpayment for which there is 
                evidence of a violation of a criminal law or civil fraud 
                law.
            ``(2) Funding.--The''.

    (d) Duration of Agreements.--Section 17(j) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(j)) is amended--
            (1) by striking ``(j) The'' and inserting the following:

    ``(j) Agreements.--
            ``(1) In general.--The''; and
            (2) by adding at the end the following:
            ``(2) Duration.--An agreement under paragraph (1) shall 
        remain in effect until terminated by either party to the 
        agreement.''.

    (e) Rural Area Eligibility Determination for Day Care Homes.--
Section 17 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766) (as amended by subsection (a)(2)) is amended by inserting 
after subsection (o) the following:
    ``(p) Rural Area Eligibility Determination for Day Care Homes.--

[[Page 118 STAT. 754]]

            ``(1) Definition of selected tier i family or group day care 
        home.--In <<NOTE: Applicability.>> this subsection, the term 
        `selected tier I family or group day care home' means a family 
        or group day home that meets the definition of tier I family or 
        group day care home under subclause (I) of subsection 
        (f)(3)(A)(ii) except that items (aa) and (bb) of that subclause 
        shall be applied by substituting `40 percent' for `50 percent'.
            ``(2) Eligibility.--For each of fiscal years 2006 and 2007, 
        in rural areas of the State of Nebraska (as determined by the 
        Secretary), the Secretary shall provide reimbursement to 
        selected tier I family or group day care homes (as defined in 
        paragraph (1)) under subsection (f)(3) in the same manner as 
        tier I family or group day care homes (as defined in subsection 
        (f)(3)(A)(ii)(I)).
            ``(3) Evaluation.--
                    ``(A) In general.--The Secretary, acting through the 
                Administrator of the Food and Nutrition Service, shall 
                evaluate the impact of the eligibility criteria 
                described in paragraph (2) as compared to the 
                eligibility criteria described in subsection 
                (f)(3)(A)(ii)(I).
                    ``(B) Impact.--The evaluation shall assess the 
                impact of the change in eligibility requirements on--
                          ``(i) the number of family or group day care 
                      homes offering meals under this section;
                          ``(ii) the number of family or group day care 
                      homes offering meals under this section that are 
                      defined as tier I family or group day care homes 
                      as a result of paragraph (1) that otherwise would 
                      be defined as tier II family or group day care 
                      homes under subsection (f)(3)(A)(iii);
                          ``(iii) the geographic location of the family 
                      or group day care homes;
                          ``(iv) services provided to eligible children; 
                      and
                          ``(v) other factors determined by the 
                      Secretary.
                    ``(C) Report.--Not later than March 31, 2008, the 
                Secretary shall submit to the Committee on Education and 
                the Workforce of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of the 
                Senate a report describing the results of the evaluation 
                under this subsection.
                    ``(D) Funding.--
                          ``(i) <<NOTE: Effective date.>> In general.--
                      On October 1, 2005, out of any funds in the 
                      Treasury not otherwise appropriated, the Secretary 
                      of the Treasury shall transfer to the Secretary of 
                      Agriculture to carry out this paragraph $400,000, 
                      to remain available until expended.
                          ``(ii) Receipt and acceptance.--The Secretary 
                      shall be entitled to receive, shall accept, and 
                      shall use to carry out this paragraph the funds 
                      transferred under clause (i), without further 
                      appropriation.''.

    (f) Management Support.--Section 17(q)(3) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(q)(3)) is amended by striking 
``1999 through 2003'' and inserting ``2005 and 2006''.
    (g) Age Limits.--Section 17(t)(5)(A)(i) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(t)(5)(A)(i) is amended--
            (1) in subclause (I)--

[[Page 118 STAT. 755]]

                    (A) by striking ``12'' and inserting ``18''; and
                    (B) by inserting ``or'' after the semicolon;
            (2) by striking subclause (II); and
            (3) by redesignating subclause (III) as subclause (II).

    (h) Technical Amendments.--Section 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766) is amended--
            (1) in subsection (a)(6)(B), by inserting ``and adult'' 
        after ``child''; and
            (2) in subsection (t)(3), by striking ``subsection (a)(1)'' 
        and inserting ``subsection (a)(5)''.

    (i) <<NOTE: 42 USC 1766 note.>> Paperwork Reduction.--The Secretary 
of Agriculture, in conjunction with States and participating 
institutions, shall examine the feasibility of reducing paperwork 
resulting from regulations and recordkeeping requirements for State 
agencies, family child care homes, child care centers, and sponsoring 
organizations participating in the child and adult care food program 
established under section 17 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766).

    (j) <<NOTE: 42 USC 1766 note.>> Early Child Nutrition Education.--
            (1) In general.--Subject to the availability of funds made 
        available under paragraph (6), for a period of 4 successive 
        years, the Secretary of Agriculture shall award to 1 or more 
        entities with expertise in designing and implementing health 
        education programs for limited-English-proficient individuals 1 
        or more grants to enhance obesity prevention activities for 
        child care centers and sponsoring organizations providing 
        services to limited-English-proficient individuals through the 
        child and adult care food program under section 17 of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1766) in 
        each of 4 States selected by the Secretary in accordance with 
        paragraph (2).
            (2) <<NOTE: Grants.>> States.--The Secretary shall provide 
        grants under this subsection in States that have experienced a 
        growth in the limited-English-proficient population of the 
        States of at least 100 percent between the years 1990 and 2000, 
        as measured by the census.
            (3) Required activities.--Activities carried out under 
        paragraph (1) shall include--
                    (A) developing an interactive and comprehensive tool 
                kit for use by lay health educators and training 
                activities;
                    (B) conducting training and providing ongoing 
                technical assistance for lay health educators; and
                    (C) establishing collaborations with child care 
                centers and sponsoring organizations participating in 
                the child and adult care food program under section 17 
                of the Richard B. Russell National School Lunch Act (42 
                U.S.C. 1766) to--
                          (i) identify limited-English-proficient 
                      children and families; and
                          (ii) enhance the capacity of the child care 
                      centers and sponsoring organizations to use 
                      appropriate obesity prevention strategies.
            (4) Evaluation.--Each grant recipient shall identify an 
        institution of higher education to conduct an independent 
        evaluation of the effectiveness of the grant.

[[Page 118 STAT. 756]]

            (5) Report.--The Secretary shall submit to the Committee on 
        Education and the Workforce of the House of Representatives, and 
        the Committee on Agriculture, Nutrition, and Forestry and the 
        Committee on Health, Education, Labor, and Pensions, of the 
        Senate a report that includes--
                    (A) the evaluation completed by the institution of 
                higher education under paragraph (4);
                    (B) the effectiveness of lay health educators in 
                reducing childhood obesity; and
                    (C) any recommendations of the Secretary concerning 
                the grants.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $250,000 for 
        each of fiscal years 2005 through 2009.

SEC. 120. FRESH FRUIT AND VEGETABLE PROGRAM.

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

[[Page 118 STAT. 757]]

                                the school principal, and the district 
                                superintendent (or equivalent positions, 
                                as determined by the school); and
                                    ``(III) such other information as 
                                may be requested by the Secretary;
                          ``(iii) for each application received, 
                      determine whether the application is from a school 
                      in which not less than 50 percent of students are 
                      eligible for free or reduced price meals under 
                      this Act; and
                          ``(iv) give priority to schools that submit a 
                      plan for implementation of the program that 
                      includes a partnership with 1 or more entities 
                      that provide non-Federal resources (including 
                      entities representing the fruit and vegetable 
                      industry) for--
                                    ``(I) the acquisition, handling, 
                                promotion, or distribution of fresh and 
                                dried fruits and fresh vegetables; or
                                    ``(II) other support that 
                                contributes to the purposes of the 
                                program.
                    ``(B) Nonapplicability to existing participants.--
                Subparagraph (A) shall not apply to a school, State, or 
                Indian reservation authorized--
                          ``(i) to participate in the program on May 1, 
                      2004; or
                          ``(ii) to receive funding for free fruits and 
                      vegetables under funds provided for public health 
                      improvement under the heading `disease control, 
                      research, and training' under the heading `Centers 
                      for Disease Control and Prevention' in title II of 
                      the Departments of Labor, Health and Human 
                      Services, and Education, and Related Agencies 
                      Appropriations Act, 2004 (Division E of Public Law 
                      108-199; 118 Stat. 238).
            ``(4) Notice of availability.--To be eligible to participate 
        in the program under this subsection, a school shall widely 
        publicize within the school the availability of free fresh 
        fruits and vegetables under the program.
            ``(5) Reports.--
                    ``(A) Interim reports.--Not later than September 30 
                of each of fiscal years 2005 through 2008, the 
                Secretary, acting through the Administrator of the Food 
                and Nutrition Service, shall submit to the Committee on 
                Education and the Workforce of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate an interim report 
                that describes the activities carried out under this 
                subsection during the fiscal year covered by the report.
                    ``(B) Final report.--Not later than December 31, 
                2008, the Secretary, acting through the Administrator of 
                the Food and Nutrition Service, shall submit to the 
                Committee on Education and the Workforce of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate a final report 
                that describes the results of the program under this 
                subsection.
            ``(6) Funding.--

[[Page 118 STAT. 758]]

                    ``(A) Existing funds.--The Secretary shall use to 
                carry out this subsection any funds that remain under 
                this subsection on the day before the date of enactment 
                of this subparagraph.
                    ``(B) Mandatory funds.--
                          ``(i) <<NOTE: Effective date.>> In general.--
                      On October 1, 2004, and on each October 1 
                      thereafter, out of any funds in the Treasury not 
                      otherwise appropriated, the Secretary of the 
                      Treasury shall transfer to the Secretary of 
                      Agriculture to carry out this subsection 
                      $9,000,000, to remain available until expended.
                          ``(ii) Receipt and acceptance.--The Secretary 
                      shall be entitled to receive, shall accept, and 
                      shall use to carry out this subsection the funds 
                      made available under this subparagraph, without 
                      further appropriation.
                    ``(C) Authorization of appropriations.--In addition 
                to any amounts made available under subparagraphs (A) 
                and (B), there are authorized to be appropriated such 
                sums as are necessary to expand the program carried out 
                under this subsection.
                    ``(D) Reallocation.--The Secretary may reallocate 
                any amounts made available to carry out this subsection 
                that are not obligated or expended, as determined by the 
                Secretary.''.
SEC. 121. SUMMER FOOD SERVICE RESIDENTIAL CAMP ELIGIBILITY.

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

[[Page 118 STAT. 759]]

                not more than 3 meals, or 2 meals and 1 supplement, 
                during each day of operation.
            ``(4) Evaluation.--
                    ``(A) <<NOTE: Deadline. Reports.>> Information from 
                residential camps.--Not later than December 31, 2005, a 
                residential camp selected under paragraph (1) shall 
                report to the Secretary such information as is required 
                by the Secretary concerning the requirements of this 
                subsection.
                    ``(B) Report to congress.--Not later than March 31, 
                2006, the Secretary shall submit to the Committee on 
                Education and the Workforce of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate a report that 
                evaluates the effect of this subsection on program 
                participation and other factors, as determined by the 
                Secretary.''.

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

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

[[Page 118 STAT. 760]]

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

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

SEC. 124. FREE LUNCH AND BREAKFAST ELIGIBILITY.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 123) is amended by adding at the end 
the following:
    ``(k) Free Lunch and Breakfast Eligibility.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (4), the Secretary shall expand the service of 
        free lunches and breakfasts provided at schools participating in 
        the school lunch program under this Act or the school breakfast 
        program under section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773) in all or part of 5 States selected by the 
        Secretary (of which at least 1 shall be a largely rural State 
        with a significant Native American population).
            ``(2) Income eligibility.--The income guidelines for 
        determining eligibility for free lunches or breakfasts under 
        this subsection shall be 185 percent of the applicable family 
        size income levels contained in the nonfarm income poverty 
        guidelines prescribed by the Office of Management and Budget, as 
        adjusted annually in accordance with section 9(b)(1)(B).
            ``(3) Evaluation.--

[[Page 118 STAT. 761]]

                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 3 years after the implementation of this 
                subsection, the Secretary shall conduct an evaluation to 
                assess the impact of the changed income eligibility 
                guidelines by comparing the school food authorities 
                operating under this subsection to school food 
                authorities not operating under this subsection.
                    ``(B) Impact assessment.--
                          ``(i) Children.--The evaluation shall assess 
                      the impact of this subsection separately on--
                                    ``(I) children in households with 
                                incomes less than 130 percent of the 
                                applicable family income levels 
                                contained in the nonfarm poverty income 
                                guidelines prescribed by the Office of 
                                Management and Budget, as adjusted 
                                annually in accordance with section 
                                9(b)(1)(B); and
                                    ``(II) children in households with 
                                incomes greater than 130 percent and not 
                                greater than 185 percent of the 
                                applicable family income levels 
                                contained in the nonfarm poverty income 
                                guidelines prescribed by the Office of 
                                Management and Budget, as adjusted 
                                annually in accordance with section 
                                9(b)(1)(B).
                          ``(ii) Factors.--The evaluation shall assess 
                      the impact of this subsection on--
                                    ``(I) certification and 
                                participation rates in the school lunch 
                                and breakfast programs;
                                    ``(II) rates of lunch- and 
                                breakfast-skipping;
                                    ``(III) academic achievement;
                                    ``(IV) the allocation of funds 
                                authorized in title I of the Elementary 
                                and Secondary Education Act (20 U.S.C. 
                                6301) to local educational agencies and 
                                public schools; and
                                    ``(V) other factors determined by 
                                the Secretary.
                    ``(C) Cost assessment.--The evaluation shall assess 
                the increased costs associated with providing additional 
                free, reduced price, or paid meals in the school food 
                authorities operating under this subsection.
                    ``(D) Report.--On completion of the evaluation, the 
                Secretary shall submit to the Committee on Education and 
                the Workforce of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of the 
                Senate a report describing the results of the evaluation 
                under this paragraph.
            ``(4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection, to remain available until expended.''.
SEC. 125. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
                        MANAGEMENT INSTITUTE.

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

[[Page 118 STAT. 762]]

                          ``(i) food service programs carried out with 
                      assistance under this Act and, to the maximum 
                      extent practicable, using individuals who 
                      administer exemplary local food service programs 
                      in the State;
                          ``(ii) school breakfast programs carried out 
                      with assistance under section 4 of the Child 
                      Nutrition Act of 1966 (42 U.S.C. 1773); and
                          ``(iii) as appropriate, other federally 
                      assisted feeding programs; and
                    ``(B) assistance, on a competitive basis, to State 
                agencies for the purpose of aiding schools and school 
                food authorities with at least 50 percent of enrolled 
                children certified to receive free or reduced price 
                meals (and, if there are any remaining funds, other 
                schools and school food authorities) in meeting the cost 
                of acquiring or upgrading technology and information 
                management systems for use in food service programs 
                carried out under this Act and section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773), if the school or 
                school food authority submits to the State agency an 
                infrastructure development plan that--
                          ``(i) addresses the cost savings and 
                      improvements in program integrity and operations 
                      that would result from the use of new or upgraded 
                      technology;
                          ``(ii) ensures that there is not any overt 
                      identification of any child by special tokens or 
                      tickets, announced or published list of names, or 
                      by any other means;
                          ``(iii) provides for processing and verifying 
                      applications for free and reduced price school 
                      meals;
                          ``(iv) integrates menu planning, production, 
                      and serving data to monitor compliance with 
                      section 9(f)(1); and
                          ``(v) establishes compatibility with statewide 
                      reporting systems;
                    ``(C) assistance, on a competitive basis, to State 
                agencies with low proportions of schools or students 
                that--
                          ``(i) participate in the school breakfast 
                      program under section 4 of the Child Nutrition Act 
                      of 1966 (42 U.S.C. 1773); and
                          ``(ii) demonstrate the greatest need, for the 
                      purpose of aiding schools in meeting costs 
                      associated with initiating or expanding a school 
                      breakfast program under section 4 of the Child 
                      Nutrition Act of 1966 (42 U.S.C. 1773), including 
                      outreach and informational activities; and''.

    (b) Duties of Food Service Management Institute.--Section 
21(c)(2)(B) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769b-1(c)(2)(B)) is amended--
            (1) by striking clauses (vi) and (vii) and inserting the 
        following:
                          ``(vi) safety, including food handling, hazard 
                      analysis and critical control point plan 
                      implementation, emergency readiness, responding to 
                      a food recall, and food biosecurity training;''; 
                      and
            (2) by redesignating clauses (viii) through (x) as clauses 
        (vii) through (ix), respectively.

    (c) Authorization of Appropriations.--

[[Page 118 STAT. 763]]

            (1) Training activities and technical assistance.--Section 
        21(e)(1) of the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1769b-1(e)(1)) is amended by striking ``2003'' and 
        inserting ``2009''.
            (2) Food service management institute.--Section 21(e)(2)(A) 
        of the Richard B. Russell National School Lunch Act (42 U.S.C. 
        1769b-1(e)(2)(A) is amended in the first sentence--
                    (A) by striking ``provide to the Secretary'' and all 
                that follows through ``1998, and'' and inserting 
                ``provide to the Secretary''; and
                    (B) by striking ``1999 and'' and inserting ``2004 
                and $4,000,000 for fiscal year 2005''.

SEC. 126. ADMINISTRATIVE ERROR REDUCTION.

    (a) Federal Support for Training and Technical Assistance.--Section 
21 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769b-
1) is amended by adding at the end the following:
    ``(f) Administrative Training and Technical Assistance Material.--In 
collaboration with State educational agencies, local educational 
agencies, and school food authorities of varying sizes, the Secretary 
shall develop and distribute training and technical assistance material 
relating to the administration of school meals programs that are 
representative of the best management and administrative practices.
    ``(g) Federal Administrative Support.--
            ``(1) Funding.--
                    ``(A) <<NOTE: Effective date.>> In general.--Out of 
                any funds in the Treasury not otherwise appropriated, 
                the Secretary of the Treasury shall transfer to the 
                Secretary of Agriculture to carry out this subsection--
                          ``(i) on October 1, 2004, and October 1, 2005, 
                      $3,000,000; and
                          ``(ii) on October 1, 2006, October 1, 2007, 
                      and October 1, 2008, $2,000,000.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this subsection the funds transferred under 
                subparagraph (A), without further appropriation.
                    ``(C) Availability of funds.--Funds transferred 
                under subparagraph (A) shall remain available until 
                expended.
            ``(2) Use of funds.--The Secretary may use funds provided 
        under this subsection--
                    ``(A) to provide training and technical assistance 
                and material related to improving program integrity and 
                administrative accuracy in school meals programs; and
                    ``(B) to assist State educational agencies in 
                reviewing the administrative practices of local 
                educational agencies, to the extent determined by the 
                Secretary.''.

    (b) Selected Administrative Reviews.--
            (1) In general.--Section 22(b) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1769c(b)) is amended by 
        adding at the end the following:
            ``(3) Additional review requirement for selected local 
        educational agencies.--

[[Page 118 STAT. 764]]

                    ``(A) Definition of selected local educational 
                agencies.--In this paragraph, the term `selected local 
                educational agency' means a local educational agency 
                that has a demonstrated high level of, or a high risk 
                for, administrative error, as determined by the 
                Secretary.
                    ``(B) Additional administrative review.--In addition 
                to any review required by subsection (a) or paragraph 
                (1), each State educational agency shall conduct an 
                administrative review of each selected local educational 
                agency during the review cycle established under 
                subsection (a).
                    ``(C) Scope of review.--In carrying out a review 
                under subparagraph (B), a State educational agency shall 
                only review the administrative processes of a selected 
                local educational agency, including application, 
                certification, verification, meal counting, and meal 
                claiming procedures.
                    ``(D) Results of review.--If the State educational 
                agency determines (on the basis of a review conducted 
                under subparagraph (B)) that a selected local 
                educational agency fails to meet performance criteria 
                established by the Secretary, the State educational 
                agency shall--
                          ``(i) require the selected local educational 
                      agency to develop and carry out an approved plan 
                      of corrective action;
                          ``(ii) except to the extent technical 
                      assistance is provided directly by the Secretary, 
                      provide technical assistance to assist the 
                      selected local educational agency in carrying out 
                      the corrective action plan; and
                          ``(iii) conduct a followup review of the 
                      selected local educational agency under standards 
                      established by the Secretary.
            ``(4) Retaining funds after administrative reviews.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), if the local educational agency fails to meet 
                administrative performance criteria established by the 
                Secretary in both an initial review and a followup 
                review under paragraph (1) or (3) or subsection (a), the 
                Secretary may require the State educational agency to 
                retain funds that would otherwise be paid to the local 
                educational agency for school meals programs under 
                procedures prescribed by the Secretary.
                    ``(B) Amount.--The amount of funds retained under 
                subparagraph (A) shall equal the value of any 
                overpayment made to the local educational agency or 
                school food authority as a result of an erroneous claim 
                during the time period described in subparagraph (C).
                    ``(C) Time period.--The period for determining the 
                value of any overpayment under subparagraph (B) shall be 
                the period--
                          ``(i) beginning on the date the erroneous 
                      claim was made; and
                          ``(ii) ending on the earlier of the date the 
                      erroneous claim is corrected or--
                                    ``(I) in the case of the first 
                                followup review conducted by the State 
                                educational agency of the local 
                                educational agency under this section 
                                after

[[Page 118 STAT. 765]]

                                July 1, 2005, the date that is 60 days 
                                after the beginning of the period under 
                                clause (i); or
                                    ``(II) in the case of any subsequent 
                                followup review conducted by the State 
                                educational agency of the local 
                                educational agency under this section, 
                                the date that is 90 days after the 
                                beginning of the period under clause 
                                (i).
            ``(5) Use of retained funds.--
                    ``(A) In general.--Subject to subparagraph (B), 
                funds retained under paragraph (4) shall--
                          ``(i) be returned to the Secretary, and may be 
                      used--
                                    ``(I) to provide training and 
                                technical assistance related to 
                                administrative practices designed to 
                                improve program integrity and 
                                administrative accuracy in school meals 
                                programs to State educational agencies 
                                and, to the extent determined by the 
                                Secretary, to local educational agencies 
                                and school food authorities;
                                    ``(II) to assist State educational 
                                agencies in reviewing the administrative 
                                practices of local educational agencies 
                                in carrying out school meals programs; 
                                and
                                    ``(III) to carry out section 21(f); 
                                or
                          ``(ii) be credited to the child nutrition 
                      programs appropriation account.
                    ``(B) State share.--A State educational agency may 
                retain not more than 25 percent of an amount recovered 
                under paragraph (4), to carry out school meals program 
                integrity initiatives to assist local educational 
                agencies and school food authorities that have 
                repeatedly failed, as determined by the Secretary, to 
                meet administrative performance criteria.
                    ``(C) Requirement.--To be eligible to retain funds 
                under subparagraph (B), a State educational agency 
                shall--
                          ``(i) submit to the Secretary a plan 
                      describing how the State educational agency will 
                      use the funds to improve school meals program 
                      integrity, including measures to give priority to 
                      local educational agencies from which funds were 
                      retained under paragraph (4);
                          ``(ii) consider using individuals who 
                      administer exemplary local food service programs 
                      in the provision of training and technical 
                      assistance; and
                          ``(iii) obtain the approval of the Secretary 
                      for the plan.''.
            (2) <<NOTE: 42 USC 1769c note.>> Interpretation.--Nothing in 
        the amendment made by paragraph (1) affects the requirements for 
        fiscal actions as described in the regulations issued pursuant 
        to section 22(a) of the Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1769c(a)).

    (c) Training and Technical Assistance.--Section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
            (1) in subsection (e)--
                    (A) by striking ``(e) Each'' and inserting the 
                following:

    ``(e) Plans for Use of Administrative Expense Funds.--
            ``(1) In general.--Each''; and

[[Page 118 STAT. 766]]

                    (B) by striking ``After submitting'' and all that 
                follows through ``change in the plan.'' and inserting 
                the following:
            ``(2) Updates and information management systems.--
                    ``(A) In general.--After submitting the initial 
                plan, a State shall be required to submit to the 
                Secretary for approval only a substantive change in the 
                plan.
                    ``(B) Plan contents.--Each State plan shall, at a 
                minimum, include a description of how technology and 
                information management systems will be used to improve 
                program integrity by--
                          ``(i) monitoring the nutrient content of meals 
                      served;
                          ``(ii) training local educational agencies, 
                      school food authorities, and schools in how to use 
                      technology and information management systems 
                      (including verifying eligibility for free or 
                      reduced price meals using program participation or 
                      income data gathered by State or local agencies); 
                      and
                          ``(iii) using electronic data to establish 
                      benchmarks to compare and monitor program 
                      integrity, program participation, and financial 
                      data.
            ``(3) Training and technical assistance.--Each State shall 
        submit to the Secretary for approval a plan describing the 
        manner in which the State intends to implement subsection (g) 
        and section 22(b)(3) of the Richard B. Russell National School 
        Lunch Act.'';
            (2) by redesignating subsection (g) as subsection (j); and
            (3) by inserting after subsection (f) the following:

    ``(g) State Training.--
            ``(1) In general.--At least annually, each State shall 
        provide training in administrative practices (including training 
        in application, certification, verification, meal counting, and 
        meal claiming procedures) to local educational agency and school 
        food authority administrative personnel and other appropriate 
        personnel, with emphasis on the requirements established by the 
        Child Nutrition and WIC Reauthorization Act of 2004 and the 
        amendments made by that Act.
            ``(2) Federal role.--The Secretary shall--
                    ``(A) provide training and technical assistance to a 
                State; or
                    ``(B) at the option of the Secretary, directly 
                provide training and technical assistance described in 
                paragraph (1).
            ``(3) <<NOTE: Procedures.>> Required participation.--In 
        accordance with procedures established by the Secretary, each 
        local educational agency or school food authority shall ensure 
        that an individual conducting or overseeing administrative 
        procedures described in paragraph (1) receives training at least 
        annually, unless determined otherwise by the Secretary.

    ``(h) Funding for Training and Administrative Reviews.--
            ``(1) Funding.--
                    ``(A) <<NOTE: Effective date.>> In general.--On 
                October 1, 2004, and on each October 1 thereafter, out 
                of any funds in the Treasury not otherwise appropriated, 
                the Secretary of the Treasury shall transfer to the 
                Secretary of Agriculture to carry out this subsection 
                $4,000,000, to remain available until expended.

[[Page 118 STAT. 767]]

                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this subsection the funds transferred under 
                subparagraph (A), without further appropriation.
            ``(2) Use of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall use funds provided 
                under this subsection to assist States in carrying out 
                subsection (g) and administrative reviews of selected 
                local educational agencies carried out under section 22 
                of the Richard B. Russell National School Lunch Act (42 
                U.S.C. 1769c).
                    ``(B) Exception.--The Secretary may retain a portion 
                of the amount provided to cover costs of activities 
                carried out by the Secretary in lieu of the State.
            ``(3) Allocation.--The Secretary shall allocate funds 
        provided under this subsection to States based on the number of 
        local educational agencies that have demonstrated a high level 
        of, or a high risk for, administrative error, as determined by 
        the Secretary, taking into account the requirements established 
        by the Child Nutrition and WIC Reauthorization Act of 2004 and 
        the amendments made by that Act.
            ``(4) Reallocation.--The Secretary may reallocate, to carry 
        out this section, any amounts made available to carry out this 
        subsection that are not obligated or expended, as determined by 
        the Secretary.''.

SEC. 127. COMPLIANCE AND ACCOUNTABILITY.

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

SEC. 128. INFORMATION CLEARINGHOUSE.

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

SEC. 129. PROGRAM EVALUATION.

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

``SEC. 28. PROGRAM EVALUATION. <<NOTE: 42 USC 1769i.>> 

    ``(a) Performance Assessments.--
            ``(1) In general.--Subject to the availability of funds made 
        available under paragraph (3), the Secretary, acting through the 
        Administrator of the Food and Nutrition Service, may conduct 
        annual national performance assessments of the meal programs 
        under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.).
            ``(2) Components.--In conducting an assessment, the 
        Secretary may assess--
                    ``(A) the cost of producing meals and meal 
                supplements under the programs described in paragraph 
                (1); and
                    ``(B) the nutrient profile of meals, and status of 
                menu planning practices, under the programs.

[[Page 118 STAT. 768]]

            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $5,000,000 for 
        fiscal year 2004 and each subsequent fiscal year.

    ``(b) Certification Improvements.--
            ``(1) In general.--Subject to the availability of funds made 
        available under paragraph (5), the Secretary, acting through the 
        Administrator of the Food and Nutrition Service, shall conduct a 
        study of the feasibility of improving the certification process 
        used for the school lunch program established under this Act.
            ``(2) Pilot projects.--In carrying out this subsection, the 
        Secretary may conduct pilot projects to improve the 
        certification process used for the school lunch program.
            ``(3) Components.--In carrying out this subsection, the 
        Secretary shall examine the use of--
                    ``(A) other income reporting systems;
                    ``(B) an integrated benefit eligibility 
                determination process managed by a single agency;
                    ``(C) income or program participation data gathered 
                by State or local agencies; and
                    ``(D) other options determined by the Secretary.
            ``(4) Waivers.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may waive such provisions of this Act and the 
                Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as 
                are necessary to carry out this subsection.
                    ``(B) <<NOTE: Applicability.>> Provisions.--The 
                protections of section 9(b)(6) shall apply to any study 
                or pilot project carried out under this subsection.
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection such sums as are 
        necessary.''.

           TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

SEC. 201. SEVERE NEED ASSISTANCE.

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

[[Page 118 STAT. 769]]

        assistance, shall be entitled to receive the meal reimbursement 
        rate specified in subsection (b)(2).''.

SEC. 202. STATE ADMINISTRATIVE EXPENSES.

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

``SEC. 7. STATE ADMINISTRATIVE EXPENSES.

    ``(a) Amount and Allocation of Funds.--
            ``(1) Amount available.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by inserting after the first sentence the 
                      following:
                    ``(B) Minimum amount.--In the case of each of fiscal 
                years 2005 through 2007, the Secretary shall make 
                available to each State for administrative costs not 
                less than the initial allocation made to the State under 
                this subsection for fiscal year 2004.'';
                          (ii) by striking ``The Secretary'' and 
                      inserting the following:
                    ``(C) Allocation.--The Secretary''; and
                          (iii) by striking the last sentence; and
                    (B) in paragraph (2)--
                          (i) by striking ``(2) The'' and inserting the 
                      following:
            ``(2) Expense grants.--
                    ``(A) In general.--Subject to subparagraph (B), 
                the'';
                          (ii) in the second sentence--
                                    (I) by striking ``In no case'' and 
                                inserting the following:
                    ``(B) Minimum amount.--
                          ``(i) In general.--In no case'';
                                    (II) by striking ``this subsection'' 
                                and inserting ``this paragraph''; and
                                    (III) by striking ``$100,000'' and 
                                inserting ``$200,000 (as adjusted under 
                                clause (ii)''; and
                          (iii) by adding at the end the following:
                          ``(ii) <<NOTE: Effective date.>> Adjustment.--
                      On October 1, 2008, and each October 1 thereafter, 
                      the minimum dollar amount for a fiscal year 
                      specified in clause (i) shall be adjusted to 
                      reflect the percentage change between--
                                    ``(I) the value of the index for 
                                State and local government purchases, as 
                                published by the Bureau of Economic 
                                Analysis of the Department of Commerce, 
                                for the 12-month period ending June 30 
                                of the second preceding fiscal year; and
                                    ``(II) the value of that index for 
                                the 12-month period ending June 30 of 
                                the preceding fiscal year.''.

    (b) Technology Infrastructure Improvement.--Section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) is amended by inserting after 
subsection (h) (as added by section 126(c)(3)) the following:

[[Page 118 STAT. 770]]

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

    (c) Reauthorization.--Subsection (j) of section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) (as redesignated by section 
126(c)(2)) is amended by striking ``2003'' and inserting ``2009''.

[[Page 118 STAT. 771]]

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

    (a) Definitions.--
            (1) Nutrition education.--Section 17(b) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(b)) is amended by striking 
        paragraph (7) and inserting the following:
            ``(7) Nutrition education.--The term `nutrition education' 
        means individual and group sessions and the provision of 
        material that are designed to improve health status and achieve 
        positive change in dietary and physical activity habits, and 
        that emphasize the relationship between nutrition, physical 
        activity, and health, all in keeping with the personal and 
        cultural preferences of the individual.''.
            (2) Supplemental foods.--Section 17(b)(14) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(b)(14)) is amended in the 
        first sentence by inserting after ``children'' the following: 
        ``and foods that promote the health of the population served by 
        the program authorized by this section, as indicated by relevant 
        nutrition science, public health concerns, and cultural eating 
        patterns''.
            (3) Other terms.--Section 17(b) of the Child Nutrition Act 
        of 1966 (42 U.S.C. 1786(b)) is amended by adding at the end the 
        following:
            ``(22) Primary contract infant formula.--The term `primary 
        contract infant formula' means the specific infant formula for 
        which manufacturers submit a bid to a State agency in response 
        to a rebate solicitation under this section and for which a 
        contract is awarded by the State agency as a result of that bid.
            ``(23) State alliance.--The term `State alliance' means 2 or 
        more State agencies that join together for the purpose of 
        procuring infant formula under the program by soliciting 
        competitive bids for infant formula.''.

    (b) Eligibility.--
            (1) Certification period.--Section 17(d)(3) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended--
                    (A) by striking ``(3)(A) Persons'' and inserting the 
                following:
            ``(3) Certification.--
                    ``(A) Procedures.--
                          ``(i) In general.--Subject to clause (ii), a 
                      person''; and
                    (B) by adding at the end of subparagraph (A) the 
                following:
                          ``(ii) Breastfeeding women.--A State may elect 
                      to certify a breastfeeding woman for a period of 1 
                      year postpartum or until a woman discontinues 
                      breastfeeding, whichever is earlier.''.
            (2) Physical presence.--Section 17(d)(3)(C)(ii) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(C)(ii)) is amended--
                    (A) in subclause (I)(bb), by striking ``from a 
                provider other than the local agency; or'' and inserting 
                a semicolon;
                    (B) in subclause (II), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                                    ``(III) an infant under 8 weeks of 
                                age--

[[Page 118 STAT. 772]]

                                            ``(aa) who cannot be present 
                                        at certification for a reason 
                                        determined appropriate by the 
                                        local agency; and
                                            ``(bb) for whom all 
                                        necessary certification 
                                        information is provided.''.

    (c) Administration.--
            (1) Processing vendor applications; participant access.--
        Section 17(f)(1)(C) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(f)(1)(C)) is amended--
                    (A) in clause (i) by inserting ``at any of the 
                authorized retail stores under the program'' after ``the 
                program'';
                    (B) by redesignating clauses (ii) through (x) as 
                clauses (iii) through (xi), respectively; and
                    (C) by inserting after clause (i) the following:
            ``(ii) procedures for accepting and processing vendor 
        applications outside of the established timeframes if the State 
        agency determines there will be inadequate access to the 
        program, including in a case in which a previously authorized 
        vendor sells a store under circumstances that do not permit 
        timely notification to the State agency of the change in 
        ownership;''.
            (2) Allowable use of funds.--
                    (A) In general.--Section 17(f)(11) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(f)(11) is 
                amended--
                          (i) by striking ``(11) The Secretary'' and 
                      inserting the following:
            ``(11) Supplemental foods.--
                    ``(A) In general.--The Secretary'';
                          (ii) in the second sentence, by striking ``To 
                      the degree'' and inserting the following:
                    ``(B) Appropriate content.--To the degree''; and
                          (iii) by adding at the end the following:
                    ``(C) Allowable use of funds.--Subject to the 
                availability of funds, the Secretary shall award grants 
                to not more than 10 local sites determined by the 
                Secretary to be geographically and culturally 
                representative of State, local, and Indian agencies, to 
                evaluate the feasibility of including fresh, frozen, or 
                canned fruits and vegetables (to be made available 
                through private funds) as an addition to the 
                supplemental foods prescribed under this section.
                    ``(D) Review of available supplemental foods.--As 
                frequently as determined by the Secretary to be 
                necessary to reflect the most recent scientific 
                knowledge, the Secretary shall--
                          ``(i) conduct a scientific review of the 
                      supplemental foods available under the program; 
                      and
                          ``(ii) amend the supplemental foods available, 
                      as necessary, to reflect nutrition science, public 
                      health concerns, and cultural eating patterns.''.
                    (B) <<NOTE: Deadline. 42 USC 1786 
                note.>> Rulemaking.--Not later than 18 months after the 
                date of receiving the review initiated by the National 
                Academy of Sciences, Institute of Medicine in September 
                2003 of the supplemental foods available for the special 
                supplemental nutrition program for women, infants, and 
                children authorized under section 17 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786), the Secretary 
                shall promulgate a final rule updating the prescribed 
                supplemental foods available through the program.

[[Page 118 STAT. 773]]

            (3) Use of claims from local agencies.--Section 17(f)(21) of 
        the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is 
        amended--
                    (A) in the paragraph heading, by striking 
                ``vendors'' and inserting ``local agencies, vendors,''; 
                and
                    (B) by striking ``vendors'' and inserting ``local 
                agencies, vendors,''.
            (4) Infant formula benefits.--
                    (A) In general.--Section 17(f) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(f)) is amended by 
                adding at the end the following:
            ``(25) Infant formula benefits.--A State agency may round up 
        to the next whole can of infant formula to allow all 
        participants under the program to receive the full-authorized 
        nutritional benefit specified by regulation.''.
                    (B) Applicability.--The amendment made by 
                subparagraph (A) applies to infant formula provided 
                under a contract resulting from a bid solicitation 
                issued on or after October 1, 2004.
            (5) Notification of violations.--Section 17(f) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by 
        paragraph (4)) is amended by adding at the end the following:
            ``(26) Notification of violations.--If a State agency finds 
        that a vendor has committed a violation that requires a pattern 
        of occurrences in order to impose a penalty or sanction, the 
        State agency shall notify the vendor of the initial violation in 
        writing prior to documentation of another violation, unless the 
        State agency determines that notifying the vendor would 
        compromise an investigation.''.

    (d) Reauthorization of WIC Program.--Section 17(g) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended by striking 
``(g)(1)'' and all that follows through ``As authorized'' in paragraph 
(1) and inserting the following:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--
                    ``(A) Authorization.--There are authorized to be 
                appropriated to carry out this section such sums as are 
                necessary for each of fiscal years 2004 through 2009.
                    ``(B) Advance appropriations; availability.--As 
                authorized''.

    (e) Nutrition Services and Administration Funds; Competitive 
Bidding; Retailers.--
            (1) In general.--Section 17(h)(2)(A) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended by striking 
        ``For each of the fiscal years 1995 through 2003, the'' and 
        inserting ``The''.
            (2) Healthy people 2010 initiative.--Section 17(h)(4) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(4)) is amended--
                    (A) in subparagraph (D), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) partner with communities, State and local 
                agencies, employers, health care professionals, and 
                other entities in the private sector to build a 
                supportive breastfeeding

[[Page 118 STAT. 774]]

                environment for women participating in the program under 
                this section to support the breastfeeding goals of the 
                Healthy People 2010 initiative.''.
            (3) Size of state alliances.--Section 17(h)(8)(A) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is amended 
        by adding at the end the following:
                          ``(iv) Size of state alliances.--
                                    ``(I) In general.--Except as 
                                provided in subclauses (II) through 
                                (IV), no State alliance may exist among 
                                States if the total number of infants 
                                served by States participating in the 
                                alliance as of October 1, 2003, or such 
                                subsequent date determined by the 
                                Secretary for which data is available, 
                                would exceed 100,000.
                                    ``(II) Addition of infant 
                                participants.--In the case of a State 
                                alliance that exists on the date of 
                                enactment of this clause, the alliance 
                                may continue and may expand to serve 
                                more than 100,000 infants but, except as 
                                provided in subclause (III), may not 
                                expand to include any additional State 
                                agency.
                                    ``(III) Addition of small state 
                                agencies and indian state agencies.--Any 
                                State alliance may expand to include any 
                                State agency that served less than 5,000 
                                infant participants as of October 1, 
                                2003, or such subsequent date determined 
                                by the Secretary for which data is 
                                available, or any Indian State agency, 
                                if the State agency or Indian State 
                                agency requests to join the State 
                                alliance.
                                    ``(IV) Secretarial waiver.--The 
                                Secretary may waive the requirements of 
                                this clause not earlier than 30 days 
                                after submitting to the Committee on 
                                Education and the Workforce of the House 
                                of Representatives and the Committee on 
                                Agriculture, Nutrition, and Forestry of 
                                the Senate a written report that 
                                describes the cost-containment and 
                                competitive benefits of the proposed 
                                waiver.''.
            (4) Primary contract infant formula.--
                    (A) In general.--Section 17(h)(8)(A) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(8)(A)) (as amended 
                by paragraph (3)) is amended--
                          (i) in clause (ii)(I), by striking ``contract 
                      brand of'' and inserting ``primary contract'';
                          (ii) in clause (iii), by inserting ``for a 
                      specific infant formula for which manufacturers 
                      submit a bid'' after ``lowest net price''; and
                          (iii) by adding at the end the following:
                          ``(v) First choice of issuance.--The State 
                      agency shall use the primary contract infant 
                      formula as the first choice of issuance (by 
                      formula type), with all other infant formulas 
                      issued as an alternative to the primary contract 
                      infant formula.''.
                    (B) <<NOTE: 42 USC 1786 note.>> Applicability.--The 
                amendments made by subparagraph (A) apply to a contract 
                resulting from a bid solicitation issued on or after 
                October 1, 2004.

[[Page 118 STAT. 775]]

            (5) Rebate invoices.--Section 17(h)(8)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
        paragraph (4)(A)(iii)) is amended by adding at the end the 
        following:
                          ``(vi) Rebate invoices.--Each State agency 
                      shall have a system to ensure that infant formula 
                      rebate invoices, under competitive bidding, 
                      provide a reasonable estimate or an actual count 
                      of the number of units sold to participants in the 
                      program under this section.''.
            (6) Uncoupling milk and soy bids.--
                    (A) In general.--Section 17(h)(8)(A) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as 
                amended by paragraph (5)) is amended by adding at the 
                end the following:
                          ``(vii) Separate solicitations.--In soliciting 
                      bids for infant formula under a competitive 
                      bidding system, any State agency, or State 
                      alliance, that served under the program a monthly 
                      average of more than 100,000 infants during the 
                      preceding 12-month period shall solicit bids from 
                      infant formula manufacturers under procedures that 
                      require that bids for rebates or discounts are 
                      solicited for milk-based and soy-based infant 
                      formula separately.''.
                    (B) <<NOTE: 42 USC 1786 note.>> Applicability.--The 
                amendment made by this paragraph applies to a bid 
                solicitation issued on or after October 1, 2004.
            (7) Cent-for-cent adjustments.--
                    (A) In general.--Section 17(h)(8)(A) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as 
                amended by paragraph (6)(A)) is amended by adding at the 
                end the following:
                          ``(viii) Cent-for-cent adjustments.--A bid 
                      solicitation for infant formula under the program 
                      shall require the manufacturer to adjust for price 
                      changes subsequent to the opening of the bidding 
                      process in a manner that requires--
                                    ``(I) a cent-for-cent increase in 
                                the rebate amounts if there is an 
                                increase in the lowest national 
                                wholesale price for a full truckload of 
                                the particular infant formula; and
                                    ``(II) a cent-for-cent decrease in 
                                the rebate amounts if there is a 
                                decrease in the lowest national 
                                wholesale price for a full truckload of 
                                the particular infant formula.''.
                    (B) Conforming amendment.--Section 17(h)(8)(A)(ii) 
                of the Child Nutrition Act of 1966 (42 U.S.C. 
                1786(h)(8)(A)(ii)) is amended by striking ``rise'' and 
                inserting ``change''.
                    (C) <<NOTE: 42 USC 1786 note.>> Applicability.--The 
                amendments made by this paragraph apply to a bid 
                solicitation issued on or after October 1, 2004.
            (8) List of infant formula wholesalers, distributors, 
        retailers, and manufacturers.--Section 17(h)(8)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
        paragraph (7)(A)) is amended by adding at the end the following:

[[Page 118 STAT. 776]]

                          ``(ix) List of infant formula wholesalers, 
                      distributors, retailers, and manufacturers.--The 
                      State agency shall maintain a list of--
                                    ``(I) infant formula wholesalers, 
                                distributors, and retailers licensed in 
                                the State in accordance with State law 
                                (including regulations); and
                                    ``(II) infant formula manufacturers 
                                registered with the Food and Drug 
                                Administration that provide infant 
                                formula.
                          ``(x) Purchase requirement.--A vendor 
                      authorized to participate in the program under 
                      this section shall only purchase infant formula 
                      from the list described in clause (ix).''.
            (9) Funds for infrastructure, management information 
        systems, and special nutrition education.--Section 17(h) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by 
        striking paragraph (10) and inserting the following:
            ``(10) Funds for infrastructure, management information 
        systems, and special nutrition education.--
                    ``(A) In general.--For each of fiscal years 2006 
                through 2009, the Secretary shall use for the purposes 
                specified in subparagraph (B), $64,000,000 or the amount 
                of nutrition services and administration funds and 
                supplemental food funds for the prior fiscal year that 
                have not been obligated, whichever is less.
                    ``(B) Purposes.--Of the amount made available under 
                subparagraph (A) for a fiscal year, not more than--
                          ``(i) $14,000,000 shall be used for--
                                    ``(I) infrastructure for the program 
                                under this section;
                                    ``(II) special projects to promote 
                                breastfeeding, including projects to 
                                assess the effectiveness of particular 
                                breastfeeding promotion strategies; and
                                    ``(III) special State projects of 
                                regional or national significance to 
                                improve the services of the program;
                          ``(ii) $30,000,000 shall be used to establish, 
                      improve, or administer management information 
                      systems for the program, including changes 
                      necessary to meet new legislative or regulatory 
                      requirements of the program; and
                          ``(iii) $20,000,000 shall be used for special 
                      nutrition education such as breast feeding peer 
                      counselors and other related activities.
                    ``(C) Proportional distribution.--In a case in which 
                less than $64,000,000 is available to carry out this 
                paragraph, the Secretary shall make a proportional 
                distribution of funds allocated under subparagraph 
                (B).''.
            (10) Vendor cost containment.--
                    (A) Section 17(h) of the Child Nutrition Act of 1966 
                (42 U.S.C. 1786(h)) is amended by striking paragraph 
                (11) and inserting the following:
            ``(11) Vendor cost containment.--
                    ``(A) Peer groups.--
                          ``(i) In general.--The State agency shall--
                                    ``(I) establish a vendor peer group 
                                system;

[[Page 118 STAT. 777]]

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

                                              
                                              
                                            `
                                            `
                                            (
                                            A
                                            A
                                            )
                                             
                                            s
                                            e
                                            p
                                            a
                                            r
                                            a
                                            t
                                            e
                                             
                                            p
                                            e
                                            e
                                            r
                                             
                                            g
                                            r
                                            o
                                            u
                                            p
                                            s
                                             
                                            f
                                            o
                                            r
                                             
                                            v
                                            e
                                            n
                                            d
                                            o
                                            r
                                            s
                                             
                                            d
                                            e
                                            s
                                            c
                                            r
                                            i
                                            b
                                            e
                                            d
                                             
                                            i
                                            n
                                             
                                            s
                                            u
                                            b
                                            p
                                            a
                                            r
                                            a
                                            g
                                            r
                                            a
                                            p
                                            h
                                             
                                            (
                                            D
                                            )
                                            (
                                            i
                                            i
                                            )
                                            (
                                            I
                                            )
                                            ;
                                            o
                                            r



                                              
                                              
                                            `
                                            `
                                            (
                                            B
                                            B
                                            )
                                             
                                            d
                                            i
                                            s
                                            t
                                            i
                                            n
                                            c
                                            t
                                             
                                            c
                                            o
                                            m
                                            p
                                            e
                                            t
                                            i
                                            t
                                            i
                                            v
                                            e
                                             
                                            p
                                            r
                                            i
                                            c
                                            e
                                             
                                            c
                                            r
                                            i
                                            t
                                            e
                                            r
                                            i
                                            a
                                             
                                            a
                                            n
                                            d
                                             
                                            a
                                            l
                                            l
                                            o
                                            w
                                            a
                                            b
                                            l
                                            e
                                             
                                            r
                                            e
                                            i
                                            m
                                            b
                                            u
                                            r
                                            s
                                            e
                                            m
                                            e
                                            n
                                            t
                                             
                                            l
                                            e
                                            v
                                            e
                                            l
                                            s
                                             
                                            f
                                            o
                                            r
                                             
                                            v
                                            e
                                            n
                                            d
                                            o
                                            r
                                            s
                                             
                                            d
                                            e
                                            s
                                            c
                                            r
                                            i
                                            b
                                            e
                                            d
                                             
                                            i
                                            n
                                             
                                            s
                                            u
                                            b
                                            p
                                            a
                                            r
                                            a
                                            g
                                            r
                                            a
                                            p
                                            h
                                             
                                            (
                                            D
                                            )
                                            (
                                            i
                                            i
                                            )
                                            (
                                            I
                                            )
                                             
                                            w
                                            i
                                            t
                                            h
                                            i
                                            n
                                             
                                            a
                                             
                                            p
                                            e
                                            e
                                            r
                                             
                                            g
                                            r
                                            o
                                            u
                                            p
                                             
                                            t
                                            h
                                            a
                                            t
                                             
                                            c
                                            o
                                            n
                                            t
                                            a
                                            i
                                            n
                                            s
                                             
                                            b
                                            o
                                            t
                                            h
                                             
                                            v
                                            e
                                            n
                                            d
                                            o
                                            r
                                            s
                                             
                                            d
                                            e
                                            s
                                            c
                                            r
                                            i
                                            b
                                            e
                                            d
                                             
                                            i
                                            n
                                             
                                            s
                                            u
                                            b
                                            p
                                            a
                                            r
                                            a
                                            g
                                            r
                                            a
                                            p
                                            h
                                             
                                            (
                                            D
                                            )
                                            (
                                            i
                                            i
                                            )
                                            (
                                            I
                                            )
                                             
                                            a
                                            n
                                            d
                                             
                                            o
                                            t
                                            h
                                            e
                                            r
                                             
                                            v
                                            e
                                            n
                                            d
                                            o
                                            r
                                            s
                                            ;
                                             
                                            a
                                            n
                                            d


                                            ``(bb) establish competitive 
                                        price criteria and allowable 
                                        reimbursement levels that comply 
                                        with subparagraphs (B) and (C), 
                                        respectively, and that do not 
                                        result in higher food costs if 
                                        program participants redeem 
                                        supplemental food vouchers at 
                                        vendors described in 
                                        subparagraph (D)(ii)(I) rather 
                                        than at vendors other than 
                                        vendors described in 
                                        subparagraph (D)(ii)(I).
        Nothing in this paragraph shall be construed to compel a State 
        agency to achieve lower food costs if program participants 
        redeem supplemental food vouchers at vendors described in 
        subparagraph (D)(ii)(I) rather than at vendors other than 
        vendors described in subparagraph (D)(ii)(I).
                          ``(ii) Exemptions.--The Secretary may exempt 
                      from the requirements of clause (i)--
                                    ``(I) a State agency that elects not 
                                to authorize any types of vendors 
                                described in subparagraph (D)(ii)(I) and 
                                that demonstrates to the Secretary 
                                that--
                                            ``(aa) compliance with 
                                        clause (i) would be inconsistent 
                                        with efficient and effective 
                                        operation of the program 
                                        administered by the State under 
                                        this section; or
                                            ``(bb) an alternative cost-
                                        containment system would be as 
                                        effective as a vendor peer group 
                                        system; or
                                    ``(II) a State agency--
                                            ``(aa) in which the sale of 
                                        supplemental foods that are 
                                        obtained with food instruments 
                                        from vendors described in 
                                        subparagraph (D)(ii)(I) 
                                        constituted less than 5 percent 
                                        of total sales of supplemental 
                                        foods that were obtained with 
                                        food instruments in the State in 
                                        the year preceding a year in 
                                        which the exemption is 
                                        effective; and
                                            ``(bb) that demonstrates to 
                                        the Secretary that an 
                                        alternative cost-containment 
                                        system

[[Page 118 STAT. 778]]

                                        would be as effective as the 
                                        vendor peer group system and 
                                        would not result in higher food 
                                        costs if program participants 
                                        redeem supplemental food 
                                        vouchers at vendors described in 
                                        subparagraph (D)(ii)(I) rather 
                                        than at vendors other than 
                                        vendors described in 
                                        subparagraph (D)(ii)(I).
                    ``(B) Competitive pricing.--
                          ``(i) In general.--The State agency shall 
                      establish competitive price criteria for each peer 
                      group for the selection of vendors for 
                      participation in the program that--
                                    ``(I) ensure that the retail prices 
                                charged by vendor applicants for the 
                                program are competitive with the prices 
                                charged by other vendors; and
                                    ``(II) consider--
                                            ``(aa) the shelf prices of 
                                        the vendor for all buyers; or
                                            ``(bb) the prices that the 
                                        vendor bid for supplemental 
                                        foods, which shall not exceed 
                                        the shelf prices of the vendor 
                                        for all buyers.
                          ``(ii) Participant access.--In establishing 
                      competitive price criteria, the State agency shall 
                      consider participant access by geographic area.
                          ``(iii) <<NOTE: Procedures.>> Subsequent price 
                      increases.--The State agency shall establish 
                      procedures to ensure that a retail store selected 
                      for participation in the program does not, 
                      subsequent to selection, increase prices to levels 
                      that would make the store ineligible for selection 
                      to participate in the program.
                    ``(C) Allowable reimbursement levels.--
                          ``(i) In general.--The State agency shall 
                      establish allowable reimbursement levels for 
                      supplemental foods for each vendor peer group that 
                      ensure--
                                    ``(I) that payments to vendors in 
                                the vendor peer group reflect 
                                competitive retail prices; and
                                    ``(II) that the State agency does 
                                not reimburse a vendor for supplemental 
                                foods at a level that would make the 
                                vendor ineligible for authorization 
                                under the criteria established under 
                                subparagraph (B).
                          ``(ii) Price fluctuations.--The allowable 
                      reimbursement levels may include a factor to 
                      reflect fluctuations in wholesale prices.
                          ``(iii) Participant access.--In establishing 
                      allowable reimbursement levels, the State agency 
                      shall consider participant access in a geographic 
                      area.
                    ``(D) Exemptions.--The State agency may exempt from 
                competitive price criteria and allowable reimbursement 
                levels established under this paragraph--
                          ``(i) pharmacy vendors that supply only exempt 
                      infant formula or medical foods that are eligible 
                      under the program; and
                          ``(ii) vendors--
                                    ``(I)(aa) for which more than 50 
                                percent of the annual revenue of the 
                                vendor from the sale of food items 
                                consists of revenue from the sale

[[Page 118 STAT. 779]]

                                of supplemental foods that are obtained 
                                with food instruments; or
                                    ``(bb) who are new applicants likely 
                                to meet the criteria of item (aa) under 
                                criteria approved by the Secretary; and
                                    ``(II) that are nonprofit.
                    ``(E) <<NOTE: Certification.>> Cost containment.--If 
                a State agency elects to authorize any types of vendors 
                described in subparagraph (D)(ii)(I), the State agency 
                shall demonstrate to the Secretary, and the Secretary 
                shall certify, that the competitive price criteria and 
                allowable reimbursement levels established under this 
                paragraph for vendors described in subparagraph 
                (D)(ii)(I) do not result in average payments per voucher 
                to vendors described in subparagraph (D)(ii)(I) that are 
                higher than average payments per voucher to comparable 
                vendors other than vendors described in subparagraph 
                (D)(ii)(I).
                    ``(F) Limitation on private rights of action.--
                Nothing in this paragraph may be construed as creating a 
                private right of action.
                    ``(G) <<NOTE: Deadline.>> Implementation.--A State 
                agency shall comply with this paragraph not later than 
                18 months after the date of enactment of this 
                paragraph.''.
                    (B) Conforming amendment.--Section 17(f)(1)(C)(i) of 
                the Child Nutrition Act of 1966 (42 U.S.C. 
                1786(f)(1)(C)(i)) is amended by inserting before the 
                semicolon the following: ``, including a description of 
                the State agency's vendor peer group system, competitive 
                price criteria, and allowable reimbursement levels that 
                demonstrate that the State is in compliance with the 
                cost-containment provisions in subsection (h)(11).''.
            (11) Imposition of costs on retail stores.--Section 17(h) of 
        the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended 
        by striking paragraph (12) and inserting the following:
            ``(12) Imposition of costs on retail stores.--The Secretary 
        may not impose, or allow a State agency to impose, the costs of 
        any equipment, system, or processing required for electronic 
        benefit transfers on any retail store authorized to transact 
        food instruments, as a condition for authorization or 
        participation in the program.''.
            (12) Universal product codes database.--Section 17(h) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) (as amended by 
        paragraph (11)) is amended by adding at the end the following:
            ``(13) Universal product codes database.--The Secretary 
        shall--
                    ``(A) establish a national universal product code 
                database for use by all State agencies in carrying out 
                the program; and
                    ``(B) make available from appropriated funds such 
                sums as are required for hosting, hardware and software 
                configuration, and support of the database.''.
            (13) Incentive items.--Section 17(h) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(h)) (as amended by paragraph (12)) 
        is amended by adding at the end the following:
            ``(14) Incentive items.--A State agency shall not authorize 
        or make payments to a vendor described in paragraph

[[Page 118 STAT. 780]]

        (11)(D)(ii)(I) that provides incentive items or other free 
        merchandise, except food or merchandise of nominal value (as 
        determined by the Secretary), to program participants unless the 
        vendor provides to the State agency proof that the vendor 
        obtained the incentive items or merchandise at no cost.''.

    (f) Spend Forward Authority.--Section 17(i)(3)(A)(ii)(I) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)(ii)(I)) is amended 
by striking ``1 percent'' and inserting ``3 percent''.
    (g) Migrant and Community Health Centers Initiative.--Section 17(j) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(j)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraph (5) as paragraph (4).

    (h) Farmers' Market Nutrition Program.--
            (1) Roadside stands.--Section 17(m)(1) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(m)(1)) is amended by 
        inserting ``and (at the option of a State) roadside stands'' 
        after ``farmers' markets''.
            (2) Matching funds.--Section 17(m)(3) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(m)(3)) is amended by striking 
        ``total'' both places it appears and inserting 
        ``administrative''.
            (3) Benefit value.--Section 17(m)(5)(C)(ii) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(m)(5)(C)(ii)) is amended 
        by striking ``$20'' and inserting ``$30''.
            (4) Reauthorization.--Section 17(m)(9)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by 
        striking clause (i) and inserting the following:
                          ``(i) Authorization of appropriations.--There 
                      are authorized to be appropriated to carry out 
                      this subsection such sums as are necessary for 
                      each of fiscal years 2004 through 2009.''.

    (i) Demonstration Project Relating to Use of WIC Program for 
Identification and Enrollment of Children in Certain Health Programs.--
            (1) In general.--Section 17 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786) is amended by striking subsection (r).
            (2) Conforming amendment.--Section 12 of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1760) is amended by 
        striking subsection (p).

SEC. 204. LOCAL WELLNESS POLICY. <<NOTE: 42 USC 1751 note. Deadline.>> 

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

[[Page 118 STAT. 781]]

        the objectives of promoting student health and reducing 
        childhood obesity;
            (3) provides an assurance that guidelines for reimbursable 
        school meals shall not be less restrictive than regulations and 
        guidance issued by the Secretary of Agriculture pursuant to 
        subsections (a) and (b) of section 10 of the Child Nutrition Act 
        (42 U.S.C. 1779) and sections 9(f)(1) and 17(a) of the Richard 
        B. Russell National School Lunch Act (42 U.S.C. 1758(f)(1), 
        1766(a)), as those regulations and guidance apply to schools;
            (4) establishes a plan for measuring implementation of the 
        local wellness policy, including designation of 1 or more 
        persons within the local educational agency or at each school, 
        as appropriate, charged with operational responsibility for 
        ensuring that the school meets the local wellness policy; and
            (5) involves parents, students, representatives of the 
        school food authority, the school board, school administrators, 
        and the public in the development of the school wellness policy.

    (b) Technical Assistance and Best Practices.--
            (1) In general.--The Secretary, in coordination with the 
        Secretary of Education and in consultation with the Secretary of 
        Health and Human Services, acting through the Centers for 
        Disease Control and Prevention, shall make available to local 
        educational agencies, school food authorities, and State 
        educational agencies, on request, information and technical 
        assistance for use in--
                    (A) establishing healthy school nutrition 
                environments;
                    (B) reducing childhood obesity; and
                    (C) preventing diet-related chronic diseases.
            (2) Content.--Technical assistance provided by the Secretary 
        under this subsection shall--
                    (A) include relevant and applicable examples of 
                schools and local educational agencies that have taken 
                steps to offer healthy options for foods sold or served 
                in schools;
                    (B) include such other technical assistance as is 
                required to carry out the goals of promoting sound 
                nutrition and establishing healthy school nutrition 
                environments that are consistent with this section;
                    (C) be provided in such a manner as to be consistent 
                with the specific needs and requirements of local 
                educational agencies; and
                    (D) be for guidance purposes only and not be 
                construed as binding or as a mandate to schools, local 
                educational agencies, school food authorities, or State 
                educational agencies.
            (3) Funding.--
                    (A) <<NOTE: Effective date.>> In general.--On July 
                1, 2006, out of any funds in the Treasury not otherwise 
                appropriated, the Secretary of the Treasury shall 
                transfer to the Secretary of Agriculture to carry out 
                this subsection $4,000,000, to remain available until 
                September 30, 2009.
                    (B) Receipt and acceptance.--The Secretary shall be 
                entitled to receive, shall accept, and shall use to 
                carry out this subsection the funds transferred under 
                subparagraph (A), without further appropriation.

[[Page 118 STAT. 782]]

SEC. 205. TEAM NUTRITION NETWORK.

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

``SEC. 19. TEAM NUTRITION NETWORK.

    ``(a) Purposes.--The purposes of the team nutrition network are--
            ``(1) to establish State systems to promote the nutritional 
        health of school children of the United States through nutrition 
        education and the use of team nutrition messages and material 
        developed by the Secretary, and to encourage regular physical 
        activity and other activities that support healthy lifestyles 
        for children, including those based on the most recent Dietary 
        Guidelines for Americans published under section 301 of the 
        National Nutrition Monitoring and Related Research Act of 1990 
        (7 U.S.C. 5341);
            ``(2) to provide assistance to States for the development of 
        comprehensive and integrated nutrition education and active 
        living programs in schools and facilities that participate in 
        child nutrition programs;
            ``(3) to provide training and technical assistance and 
        disseminate team nutrition messages to States, school and 
        community nutrition programs, and child nutrition food service 
        professionals;
            ``(4) to coordinate and collaborate with other nutrition 
        education and active living programs that share similar goals 
        and purposes; and
            ``(5) to identify and share innovative programs with 
        demonstrated effectiveness in helping children to maintain a 
        healthy weight by enhancing student understanding of healthful 
        eating patterns and the importance of regular physical activity.

    ``(b) Definition of Team Nutrition Network.--In this section, the 
term `team nutrition network' means a statewide multidisciplinary 
program for children to promote healthy eating and physical activity 
based on scientifically valid information and sound educational, social, 
and marketing principles.
    ``(c) Grants.--
            ``(1) In general.--Subject to the availability of funds for 
        use in carrying out this section, in addition to any other funds 
        made available to the Secretary for team nutrition purposes, the 
        Secretary, in consultation with the Secretary of Education, may 
        make grants to State agencies for each fiscal year, in 
        accordance with this section, to establish team nutrition 
        networks to promote nutrition education through--
                    ``(A) the use of team nutrition network messages and 
                other scientifically based information; and
                    ``(B) the promotion of active lifestyles.
            ``(2) Form.--A portion of the grants provided under this 
        subsection may be in the form of competitive grants.
            ``(3) Funds from nongovernmental sources.--In carrying out 
        this subsection, the Secretary may accept cash contributions 
        from nongovernmental organizations made expressly to further the 
        purposes of this section, to be managed by the Food and 
        Nutrition Service, for use by the Secretary and the States in 
        carrying out this section.

[[Page 118 STAT. 783]]

    ``(d) Allocation.--Subject to the availability of funds for use in 
carrying out this section, the total amount of funds made available for 
a fiscal year for grants under this section shall equal not more than 
the sum of--
            ``(1) the product obtained by multiplying \1/2\ cent by the 
        number of lunches reimbursed through food service programs under 
        the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
        et seq.) during the second preceding fiscal year in schools, 
        institutions, and service institutions that participate in the 
        food service programs; and
            ``(2) the total value of funds received by the Secretary in 
        support of this section from nongovernmental sources.

    ``(e) Requirements for State Participation.--To be eligible to 
receive a grant under this section, a State agency shall submit to the 
Secretary a plan that--
            ``(1) is subject to approval by the Secretary; and
            ``(2) is submitted at such time and in such manner, and that 
        contains such information, as the Secretary may require, 
        including--
                    ``(A) a description of the goals and proposed State 
                plan for addressing the health and other consequences of 
                children who are at risk of becoming overweight or 
                obese;
                    ``(B) an analysis of the means by which the State 
                agency will use and disseminate the team nutrition 
                messages and material developed by the Secretary;
                    ``(C) an explanation of the ways in which the State 
                agency will use the funds from the grant to work toward 
                the goals required under subparagraph (A), and to 
                promote healthy eating and physical activity and fitness 
                in schools throughout the State;
                    ``(D) a description of the ways in which the State 
                team nutrition network messages and activities will be 
                coordinated at the State level with other health 
                promotion and education activities;
                    ``(E) a description of the consultative process that 
                the State agency employed in the development of the 
                model nutrition and physical activity programs, 
                including consultations with individuals and 
                organizations with expertise in promoting public health, 
                nutrition, or physical activity;
                    ``(F) a description of how the State agency will 
                evaluate the effectiveness of each program developed by 
                the State agency;
                    ``(G) an annual summary of the team nutrition 
                network activities;
                    ``(H) a description of the ways in which the total 
                school environment will support healthy eating and 
                physical activity; and
                    ``(I) a description of how all communications to 
                parents and legal guardians of students who are members 
                of a household receiving or applying for assistance 
                under the program shall be in an understandable and 
                uniform format and, to the maximum extent practicable, 
                in a language that parents and legal guardians can 
                understand.

    ``(f) State Coordinator.--Each State that receives a grant under 
this section shall appoint a team nutrition network coordinator who 
shall--

[[Page 118 STAT. 784]]

            ``(1) administer and coordinate the team nutrition network 
        within and across schools, school food authorities, and other 
        child nutrition program providers in the State; and
            ``(2) coordinate activities of the Secretary, acting through 
        the Food and Nutrition Service, and State agencies responsible 
        for other children's health, education, and wellness programs to 
        implement a comprehensive, coordinated team nutrition network 
        program.

    ``(g) Authorized Activities.--A State agency that receives a grant 
under this section may use funds from the grant--
            ``(1)(A) to collect, analyze, and disseminate data regarding 
        the extent to which children and youths in the State are 
        overweight, physically inactive, or otherwise suffering from 
        nutrition-related deficiencies or disease conditions; and
            ``(B) to identify the programs and services available to 
        meet those needs;
            ``(2) to implement model elementary and secondary education 
        curricula using team nutrition network messages and material 
        developed by the Secretary to create a comprehensive, 
        coordinated nutrition and physical fitness awareness and obesity 
        prevention program;
            ``(3) to implement pilot projects in schools to promote 
        physical activity and to enhance the nutritional status of 
        students;
            ``(4) to improve access to local foods through farm-to-
        cafeteria activities that may include the acquisition of food 
        and the provision of training and education;
            ``(5) to implement State guidelines in health (including 
        nutrition education and physical education guidelines) and to 
        emphasize regular physical activity during school hours;
            ``(6) to establish healthy eating and lifestyle policies in 
        schools;
            ``(7) to provide training and technical assistance to 
        teachers and school food service professionals consistent with 
        the purposes of this section;
            ``(8) to collaborate with public and private organizations, 
        including community-based organizations, State medical 
        associations, and public health groups, to develop and implement 
        nutrition and physical education programs targeting lower income 
        children, ethnic minorities, and youth at a greater risk for 
        obesity.

    ``(h) Local Nutrition and Physical Activity Grants.--
            ``(1) In general.--Subject to the availability of funds to 
        carry out this subsection, the Secretary, in consultation with 
        the Secretary of Education, shall provide assistance to selected 
        local educational agencies to create healthy school nutrition 
        environments, promote healthy eating habits, and increase 
        physical activity, consistent with the Dietary Guidelines for 
        Americans published under section 301 of the National Nutrition 
        Monitoring and Related Research Act of 1990 (7 U.S.C. 5341), 
        among elementary and secondary education students.
            ``(2) Selection of schools.--In selecting local educational 
        agencies for grants under this subsection, the Secretary shall--
                    ``(A) provide for the equitable distribution of 
                grants among--
                          ``(i) urban, suburban, and rural schools; and
                          ``(ii) schools with varying family income 
                      levels;

[[Page 118 STAT. 785]]

                    ``(B) consider factors that affect need, including 
                local educational agencies with significant minority or 
                low-income student populations; and
                    ``(C) establish a process that allows the Secretary 
                to conduct an evaluation of how funds were used.
            ``(3) Requirement for participation.--To be eligible to 
        receive assistance under this subsection, a local educational 
        agency shall, in consultation with individuals who possess 
        education or experience appropriate for representing the general 
        field of public health, including nutrition and fitness 
        professionals, submit to the Secretary an application that shall 
        include--
                    ``(A) a description of the need of the local 
                educational agency for a nutrition and physical activity 
                program, including an assessment of the nutritional 
                environment of the school;
                    ``(B) a description of how the proposed project will 
                improve health and nutrition through education and 
                increased access to physical activity;
                    ``(C) a description of how the proposed project will 
                be aligned with the local wellness policy required under 
                section 204 of the Child Nutrition and WIC 
                Reauthorization Act of 2004;
                    ``(D) a description of how funds under this 
                subsection will be coordinated with other programs under 
                this Act, the Richard B. Russell National School Lunch 
                Act (42 U.S.C. 1751 et seq.), or other Acts, as 
                appropriate, to improve student health and nutrition;
                    ``(E) a statement of the measurable goals of the 
                local educational agency for nutrition and physical 
                education programs and promotion;
                    ``(F) a description of the procedures the agency 
                will use to assess and publicly report progress toward 
                meeting those goals; and
                    ``(G) a description of how communications to parents 
                and guardians of participating students regarding the 
                activities under this subsection shall be in an 
                understandable and uniform format, and, to the extent 
                maximum practicable, in a language that parents can 
                understand.
            ``(4) Duration.--Subject to the availability of funds made 
        available to carry out this subsection, a local educational 
        agency receiving assistance under this subsection shall conduct 
        the project during a period of 3 successive school years 
        beginning with the initial fiscal year for which the local 
        educational agency receives funds.
            ``(5) Authorized activities.--An eligible applicant that 
        receives assistance under this subsection--
                    ``(A) shall use funds provided to--
                          ``(i) promote healthy eating through the 
                      development and implementation of nutrition 
                      education programs and curricula based on the 
                      Dietary Guidelines for Americans published under 
                      section 301 of the National Nutrition Monitoring 
                      and Related Research Act of 1990 (7 U.S.C. 5341); 
                      and
                          ``(ii) increase opportunities for physical 
                      activity through after school programs, athletics, 
                      intramural activities, and recess; and

[[Page 118 STAT. 786]]

                    ``(B) may use funds provided to--
                          ``(i) educate parents and students about the 
                      relationship of a poor diet and inactivity to 
                      obesity and other health problems;
                          ``(ii) develop and implement physical 
                      education programs that promote fitness and 
                      lifelong activity;
                          ``(iii) provide training and technical 
                      assistance to food service professionals to 
                      develop more appealing, nutritious menus and 
                      recipes;
                          ``(iv) incorporate nutrition education into 
                      physical education, health education, and after 
                      school programs, including athletics;
                          ``(v) involve parents, nutrition 
                      professionals, food service staff, educators, 
                      community leaders, and other interested parties in 
                      assessing the food options in the school 
                      environment and developing and implementing an 
                      action plan to promote a balanced and healthy 
                      diet;
                          ``(vi) provide nutrient content or nutrition 
                      information on meals served through the school 
                      lunch program established under the Richard B. 
                      Russell National School Lunch Act (42 U.S.C. 1751 
                      et seq.) and the school breakfast program 
                      established by section 4 of this Act and items 
                      sold a la carte during meal times;
                          ``(vii) encourage the increased consumption of 
                      a variety of healthy foods, including fruits, 
                      vegetables, whole grains, and low-fat dairy 
                      products, through new initiatives to creatively 
                      market healthful foods, such as salad bars and 
                      fruit bars;
                          ``(viii) offer healthy food choices outside 
                      program meals, including by making low-fat and 
                      nutrient dense options available in vending 
                      machines, school stores, and other venues; and
                          ``(ix) provide nutrition education, including 
                      sports nutrition education, for teachers, coaches, 
                      food service staff, athletic trainers, and school 
                      nurses.
            ``(6) Report.--Not later than 18 months after completion of 
        the projects and evaluations under this subsection, the 
        Secretary shall--
                    ``(A) submit to the Committee on Education and the 
                Workforce of the House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions and 
                the Committee on Agriculture, Nutrition and Forestry of 
                the Senate a report describing the results of the 
                evaluation under this subsection; and
                    ``(B) make the report available to the public, 
                including through the Internet.

    ``(i) Nutrition Education Support.--In carrying out the purpose of 
this section to support nutrition education, the Secretary may provide 
for technical assistance and grants to improve the quality of school 
meals and access to local foods in schools and institutions.
    ``(j) Limitation.--Material prepared under this section regarding 
agricultural commodities, food, or beverages, must be factual and 
without bias.
    ``(k) Team Nutrition Network Independent Evaluation.--

[[Page 118 STAT. 787]]

            ``(1) In general.--Subject to the availability of funds to 
        carry out this subsection, the Secretary shall offer to enter 
        into an agreement with an independent, nonpartisan, science-
        based research organization--
                    ``(A) to conduct a comprehensive independent 
                evaluation of the effectiveness of the team nutrition 
                initiative and the team nutrition network under this 
                section; and
                    ``(B) to identify best practices by schools in--
                          ``(i) improving student understanding of 
                      healthful eating patterns;
                          ``(ii) engaging students in regular physical 
                      activity and improving physical fitness;
                          ``(iii) reducing diabetes and obesity rates in 
                      school children;
                          ``(iv) improving student nutrition behaviors 
                      on the school campus, including by increasing 
                      healthier meal choices by students, as evidenced 
                      by greater inclusion of fruits, vegetables, whole 
                      grains, and lean dairy and protein in meal and 
                      snack selections;
                          ``(v) providing training and technical 
                      assistance for food service professionals 
                      resulting in the availability of healthy meals 
                      that appeal to ethnic and cultural taste 
                      preferences;
                          ``(vi) linking meals programs to nutrition 
                      education activities;
                          ``(vii) successfully involving parents, school 
                      administrators, the private sector, public health 
                      agencies, nonprofit organizations, and other 
                      community partners;
                          ``(viii) ensuring the adequacy of time to eat 
                      during school meal periods; and
                          ``(ix) successfully generating revenue through 
                      the sale of food items, while providing healthy 
                      options to students through vending, student 
                      stores, and other venues.
            ``(2) Report.--Not later than 3 years after funds are made 
        available to carry out this subsection, the Secretary shall 
        submit to the Committee on Education and the Workforce of the 
        House of Representatives, the Committee on Health, Education, 
        Labor, and Pensions and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report describing the findings of 
        the independent evaluation.

    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (b) Conforming Amendment.--Section 21(c)(2)(E) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769b-1(c)(2)(E)) is 
amended by striking ``, including'' and all that follows through 
``1966''.
SEC. 206. REVIEW <<NOTE: 42 USC 1773 note.>> OF BEST PRACTICES IN 
                        THE BREAKFAST PROGRAM.

    (a) Review.--
            (1) In general.--Subject to the availability of funds under 
        subsection (c), the Secretary of Agriculture shall enter into an 
        agreement with a research organization to collect and 
        disseminate a review of best practices to assist school food 
        authorities in addressing existing impediments at the State

[[Page 118 STAT. 788]]

        and local level that hinder the growth of the school breakfast 
        program under section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773).
            (2) Recommendations.--The review shall describe model 
        breakfast programs and offer recommendations for schools to 
        overcome obstacles, including--
                    (A) the length of the school day;
                    (B) bus schedules; and
                    (C) potential increases in costs at the State and 
                local level.

    (b) <<NOTE: Deadline. Internet.>> Dissemination.--Not later than 1 
year after the date of enactment of this Act, the Secretary shall--
            (1) make the review required under subsection (a) available 
        to school food authorities via the Internet, including 
        recommendations to improve participation in the school breakfast 
        program; and
            (2) transmit to Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a copy of the review.

    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

SEC. 301. COMMODITY DISTRIBUTION PROGRAMS.

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

                         TITLE IV--MISCELLANEOUS

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

    (a) Findings.--Congress finds that--
            (1) childhood obesity in the United States has reached 
        critical proportions;
            (2) childhood obesity is associated with numerous health 
        risks and the incidence of chronic disease later in life;
            (3) the prevention of obesity among children yields 
        significant benefits in terms of preventing disease and the 
        health care costs associated with such diseases;
            (4) further scientific and medical data on the prevalence of 
        childhood obesity is necessary in order to inform efforts to 
        fight childhood obesity; and
            (5) the State of Arkansas--
                    (A) is the first State in the United States to have 
                a comprehensive statewide initiative to combat and 
                prevent childhood obesity by--
                          (i) annually measuring the body mass index of 
                      public school children in the State from 
                      kindergarten through 12th grade; and

[[Page 118 STAT. 789]]

                          (ii) providing that information to the parents 
                      of each child with associated information about 
                      the health implications of the body mass index of 
                      the child;
                    (B) maintains, analyzes, and reports on annual and 
                longitudinal body mass index data for the public school 
                children in the State; and
                    (C) develops and implements appropriate 
                interventions at the community and school level to 
                address obesity, the risk of obesity, and the condition 
                of being overweight, including efforts to encourage 
                healthy eating habits and increased physical activity.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the State of Arkansas, in partnership with the 
        University of Arkansas for Medical Sciences and the Arkansas 
        Center for Health Improvement, should be commended for its 
        leadership in combating childhood obesity; and
            (2) the efforts of the State of Arkansas to implement a 
        statewide initiative to combat and prevent childhood obesity are 
        exemplary and could serve as a model for States across the 
        United States.

                         TITLE V--IMPLEMENTATION

SEC. 501. GUIDANCE AND REGULATIONS. <<NOTE: 42 USC 1758 note.>> 

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

SEC. 502. EFFECTIVE DATES. <<NOTE: 42 USC 1754 note.>> 

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act take effect on the date of enactment 
of this Act.
    (b) Special Effective Dates.--
            (1) July 1, 2004.--The amendments made by sections 106, 107, 
        126(c), and 201 take effect on July 1, 2004.
            (2) October 1, 2004.--The amendments made by sections 
        119(c), 119(g), 202(a), 203(a), 203(b), 203(c)(1), 203(c)(5), 
        203(e)(5), 203(e)(8), 203(e)(10), 203(e)(13), 203(f), 203(h)(1), 
        and 203(h)(2) take effect on October 1, 2004.
            (3) January 1, 2005.--The amendments made by sections 
        116(f)(1) and 116(f)(3) take effect on January 1, 2005.
            (4) July 1, 2005.--The amendments made by sections 102, 104, 
        105, 111, and 126(b) take effect on July 1, 2005.

[[Page 118 STAT. 790]]

            (5) October 1, 2005.--The amendments made by sections 116(d) 
        and 203(e)(9) take effect on October 1, 2005.

    Approved June 30, 2004.

LEGISLATIVE HISTORY--S. 2507 (H.R. 3873):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-445 accompanying H.R. 3873 (Comm. on Education 
and the Workforce).
SENATE REPORTS: No. 108-279 (Comm. on Agriculture, Nutrition, and 
Forestry).
CONGRESSIONAL RECORD, Vol. 150 (2004):
            June 23, considered and passed Senate.
            June 24, considered and passed House.

                                  <all>