[United States Statutes at Large, Volume 118, 108th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

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 730]]
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 731]]
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 732]]
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 733]]
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 734]]
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 735]]
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 736]]
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 737]]
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 738]]
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 739]]
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--
``(AA) the lesser of 1,000,
or 1 percent of, all
applications approved by the
local educational agency for the
school year, as of October 1 of
the school year, selected from
error prone applications; and
``(BB) the lesser of 500, or
\1/2\ of 1 percent of,
applications approved by the
local educational agency for the
school year, as of October 1 of
the school year, that provide a
case number (in lieu of income
information) showing
participation in a program
described in item (bb) selected
from those approved applications
that provide a case number (in
lieu of income information)
verifying the participation.
``(bb) Programs.--The
programs described in this item
are--
``(AA) the food stamp
program established under the
Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.);

[[Page 740]]
118 STAT. 740

``(BB) the food distribution
program on Indian reservations
established under section 4(b)
of the Food Stamp Act of 1977 (7
U.S.C. 2013(b)); and
``(CC) a State program
funded under the program of
block grants to States for
temporary assistance for needy
families established under part
A of title IV of the Social
Security Act (42 U.S.C. 601 et
seq.) that the Secretary
determines complies with
standards established by the
Secretary that ensure that the
standards under the State
program are comparable to or
more restrictive than those in
effect on June 1, 1995.
``(IV) Conditions.--The conditions
referred to in subclause (I) shall be
met for a local educational agency for a
school year if--
``(aa) the nonresponse rate
for the local educational agency
for the preceding school year is
less than 20 percent; or
``(bb) the local educational
agency has more than 20,000
children approved by application
by the local educational agency
as eligible for free or reduced
price meals for the school year,
as of October 1 of the school
year, and--
``(AA) the nonresponse rate
for the preceding school year is
at least 10 percent below the
nonresponse rate for the second
preceding school year; or
``(BB) in the case of the
school year beginning July 2005,
the local educational agency
attempts to verify all approved
household applications selected
for verification through use of
public agency records from at
least 2 of the programs or
sources of information described
in subparagraph (F)(i).
``(v) Additional selected applications.--A
sample for a local educational agency for a school
year under clauses (iii) and (iv)(III)(AA) shall
include the number of additional randomly selected
approved household applications that are required
to comply with the sample size requirements in
those clauses.
``(E) Preliminary review.--
``(i) Review for accuracy.--
``(I) In general.--Prior to
conducting any other verification
activity for approved household
applications selected for verification,
the local educational agency shall
ensure that the initial eligibility
determination for each approved
household application is reviewed for
accuracy by an individual other than the
individual making the initial
eligibility determination, unless
otherwise determined by the Secretary.

[[Page 741]]
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 742]]
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 743]]
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 744]]
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 745]]
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 746]]
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 747]]
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 748]]
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 749]]
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 750]]
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 751]]
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 752]]
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 753]]
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 754]]
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 755]]
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 756]]
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 757]]
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 758]]
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 759]]
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 760]]
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 761]]
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 762]]
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 763]]
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 764]]
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 765]]
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 766]]
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 767]]
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 768]]
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 769]]
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 770]]
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 771]]
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 772]]
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 773]]
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 774]]
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 775]]
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 776]]
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 777]]
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--
``(AA) separate peer groups for
vendors described in subparagraph
(D)(ii)(I);or
``(BB) distinct competitive price
criteria and allowable reimbursement
levels for vendors described in
subparagraph (D)(ii)(I) within a peer
group that contains both vendors
described in subparagraph (D)(ii)(I) and
other vendors; and
``(bb) establish competitive
price criteria and allowable
reimbursement levels that comply
with subparagraphs (B) and (C),
respectively, and that do not
result in higher food costs if
program participants redeem
supplemental food vouchers at
vendors described in
subparagraph (D)(ii)(I) rather
than at vendors other than
vendors described in
subparagraph (D)(ii)(I).
Nothing in this paragraph shall be construed to compel a State
agency to achieve lower food costs if program participants
redeem supplemental food vouchers at vendors described in
subparagraph (D)(ii)(I) rather than at vendors other than
vendors described in subparagraph (D)(ii)(I).
``(ii) Exemptions.--The Secretary may exempt
from the requirements of clause (i)--
``(I) a State agency that elects not
to authorize any types of vendors
described in subparagraph (D)(ii)(I) and
that demonstrates to the Secretary
that--
``(aa) compliance with
clause (i) would be inconsistent
with efficient and effective
operation of the program
administered by the State under
this section; or
``(bb) an alternative cost-
containment system would be as
effective as a vendor peer group
system; or
``(II) a State agency--
``(aa) in which the sale of
supplemental foods that are
obtained with food instruments
from vendors described in
subparagraph (D)(ii)(I)
constituted less than 5 percent
of total sales of supplemental
foods that were obtained with
food instruments in the State in
the year preceding a year in
which the exemption is
effective; and
``(bb) that demonstrates to
the Secretary that an
alternative cost-containment
system

[[Page 778]]
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 779]]
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 780]]
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 781]]
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 782]]
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 783]]
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 784]]
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 785]]
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 786]]
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 787]]
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 788]]
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 789]]
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 790]]
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.