[United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 111-296
111th Congress

An Act


 
To reauthorize child nutrition programs, and for other
purposes. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) <>  Short Title.--This Act may be cited
as the ``Healthy, Hunger-Free Kids Act of 2010''.

(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

TITLE I--A PATH TO END CHILDHOOD HUNGER

Subtitle A--National School Lunch Program

Sec. 101. Improving direct certification.
Sec. 102. Categorical eligibility of foster children.
Sec. 103. Direct certification for children receiving Medicaid benefits.
Sec. 104. Eliminating individual applications through community
eligibility.
Sec. 105. Grants for expansion of school breakfast programs.

Subtitle B--Summer Food Service Program

Sec. 111. Alignment of eligibility rules for public and private
sponsors.
Sec. 112. Outreach to eligible families.
Sec. 113. Summer food service support grants.

Subtitle C--Child and Adult Care Food Program

Sec. 121. Simplifying area eligibility determinations in the child and
adult care food program.
Sec. 122. Expansion of afterschool meals for at-risk children.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants,
and Children

Sec. 131. Certification periods.

Subtitle E--Miscellaneous

Sec. 141. Childhood hunger research.
Sec. 142. State childhood hunger challenge grants.
Sec. 143. Review of local policies on meal charges and provision of
alternate meals.

TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF CHILDREN

Subtitle A--National School Lunch Program

Sec. 201. Performance-based reimbursement rate increases for new meal
patterns.
Sec. 202. Nutrition requirements for fluid milk.
Sec. 203. Water.
Sec. 204. Local school wellness policy implementation.
Sec. 205. Equity in school lunch pricing.
Sec. 206. Revenue from nonprogram foods sold in schools.

[[Page 3184]]

Sec. 207. Reporting and notification of school performance.
Sec. 208. Nutrition standards for all foods sold in school.
Sec. 209. Information for the public on the school nutrition
environment.
Sec. 210. Organic food pilot program.

Subtitle B--Child and Adult Care Food Program

Sec. 221. Nutrition and wellness goals for meals served through the
child and adult care food program.
Sec. 222. Interagency coordination to promote health and wellness in
child care licensing.
Sec. 223. Study on nutrition and wellness quality of child care
settings.

Subtitle C--Special Supplemental Nutrition Program for Women, Infants,
and Children

Sec. 231. Support for breastfeeding in the WIC Program.
Sec. 232. Review of available supplemental foods.

Subtitle D--Miscellaneous

Sec. 241. Nutrition education and obesity prevention grant program.
Sec. 242. Procurement and processing of food service products and
commodities.
Sec. 243. Access to Local Foods: Farm to School Program.
Sec. 244. Research on strategies to promote the selection and
consumption of healthy foods.

TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION
PROGRAMS

Subtitle A--National School Lunch Program

Sec. 301. Privacy protection.
Sec. 302. Applicability of food safety program on entire school campus.
Sec. 303. Fines for violating program requirements.
Sec. 304. Independent review of applications.
Sec. 305. Program evaluation.
Sec. 306. Professional standards for school food service.
Sec. 307. Indirect costs.
Sec. 308. Ensuring safety of school meals.

Subtitle B--Summer Food Service Program

Sec. 321. Summer food service program permanent operating agreements.
Sec. 322. Summer food service program disqualification.

Subtitle C--Child and Adult Care Food Program

Sec. 331. Renewal of application materials and permanent operating
agreements.
Sec. 332. State liability for payments to aggrieved child care
institutions.
Sec. 333. Transmission of income information by sponsored family or
group day care homes.
Sec. 334. Simplifying and enhancing administrative payments to
sponsoring organizations.
Sec. 335. Child and adult care food program audit funding.
Sec. 336. Reducing paperwork and improving program administration.
Sec. 337. Study relating to the child and adult care food program.

Subtitle D--Special Supplemental Nutrition Program for Women, Infants,
and Children

Sec. 351. Sharing of materials with other programs.
Sec. 352. WIC program management.

Subtitle E--Miscellaneous

Sec. 361. Full use of Federal funds.
Sec. 362. Disqualified schools, institutions, and individuals.

TITLE IV--MISCELLANEOUS

Subtitle A--Reauthorization of Expiring Provisions

PART I--Richard B. Russell National School Lunch Act

Sec. 401. Commodity support.
Sec. 402. Food safety audits and reports by States.
Sec. 403. Procurement training.

[[Page 3185]]

Sec. 404. Authorization of the summer food service program for children.
Sec. 405. Year-round services for eligible entities.
Sec. 406. Training, technical assistance, and food service management
institute.
Sec. 407. Federal administrative support.
Sec. 408. Compliance and accountability.
Sec. 409. Information clearinghouse.

PART II--Child Nutrition Act of 1966

Sec. 421. Technology infrastructure improvement.
Sec. 422. State administrative expenses.
Sec. 423. Special supplemental nutrition program for women, infants, and
children.
Sec. 424. Farmers market nutrition program.

Subtitle B--Technical Amendments

Sec. 441. Technical amendments.
Sec. 442. Use of unspent future funds from the American Recovery and
Reinvestment Act of 2009.
Sec. 443. Equipment assistance technical correction.
Sec. 444. Budgetary effects.
Sec. 445. Effective date.

SEC. 2. <>  DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Agriculture.

TITLE I--A PATH TO END CHILDHOOD HUNGER

Subtitle A--National School Lunch Program

SEC. 101. IMPROVING DIRECT CERTIFICATION.

(a) Performance Awards.--Section 9(b)(4) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(b)(4)) is amended--
(1) in the paragraph heading, by striking ``food stamp'' and
inserting ``supplemental nutrition assistance program''; and
(2) by adding at the end the following:
``(E) Performance awards.--
``(i) <>  In
general.--Effective for each of the school years
beginning July 1, 2011, July 1, 2012, and July 1,
2013, the Secretary shall offer performance awards
to States to encourage the States to ensure that
all children eligible for direct certification
under this paragraph are certified in accordance
with this paragraph.
``(ii) Requirements.--For each school year
described in clause (i), the Secretary shall--
``(I) consider State data from the
prior school year, including estimates
contained in the report required under
section 4301 of the Food, Conservation,
and Energy Act of 2008 (42 U.S.C.
1758a); and
``(II) make performance awards to
not more than 15 States that
demonstrate, as determined by the
Secretary--
``(aa) outstanding
performance; and
``(bb) substantial
improvement.
``(iii) Use of funds.--A State agency that
receives a performance award under clause (i)--

[[Page 3186]]

``(I) shall treat the funds as
program income; and
``(II) may transfer the funds to
school food authorities for use in
carrying out the program.
``(iv) Funding.--
``(I) <>  In
general.--On October 1, 2011, and each
subsequent October 1 through October 1,
2013, out of any funds in the Treasury
not otherwise appropriated, the
Secretary of the Treasury shall transfer
to the Secretary--
``(aa) $2,000,000 to carry
out clause (ii)(II)(aa); and
``(bb) $2,000,000 to carry
out clause (ii)(II)(bb).
``(II) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry out
this clause the funds transferred under
subclause (I), without further
appropriation.
``(v) Payments not subject to judicial
review.--A determination by the Secretary whether,
and in what amount, to make a performance award
under this subparagraph shall not be subject to
administrative or judicial review.''.

(b) Continuous Improvement Plans.--Section 9(b)(4) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by
subsection (a)) is amended by adding at the end the following:
``(F) Continuous improvement plans.--
``(i) Definition of required percentage.--In
this subparagraph, the term `required percentage'
means--
``(I) for the school year beginning
July 1, 2011, 80 percent;
``(II) for the school year beginning
July 1, 2012, 90 percent; and
``(III) for the school year
beginning July 1, 2013, and each school
year thereafter, 95 percent.
``(ii) Requirements.--Each school year, the
Secretary shall--
``(I) identify, using data from the
prior year, including estimates
contained in the report required under
section 4301 of the Food, Conservation,
and Energy Act of 2008 (42 U.S.C.
1758a), States that directly certify
less than the required percentage of the
total number of children in the State
who are eligible for direct
certification under this paragraph;
``(II) require the States identified
under subclause (I) to implement a
continuous improvement plan to fully
meet the requirements of this paragraph,
which shall include a plan to improve
direct certification for the following
school year; and
``(III) assist the States identified
under subclause (I) to develop and
implement a continuous improvement plan
in accordance with subclause (II).
``(iii) Failure to meet performance
standard.--

[[Page 3187]]

``(I) In general.--A State that is
required to develop and implement a
continuous improvement plan under clause
(ii)(II) shall be required to submit the
continuous improvement plan to the
Secretary, for the approval of the
Secretary.
``(II) Requirements.--At a minimum,
a continuous improvement plan under
subclause (I) shall include--
``(aa) specific measures
that the State will use to
identify more children who are
eligible for direct
certification, including
improvements or modifications to
technology, information systems,
or databases;
``(bb) a timeline for the
State to implement those
measures; and
``(cc) goals for the State
to improve direct certification
results.''.

(c) Without Further Application.--Section 9(b)(4) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by
subsection (b)) is amended by adding at the end the following:
``(G) Without further application.--
``(i) <>  In general.--In
this paragraph, the term `without further
application' means that no action is required by
the household of the child.
``(ii) Clarification.--A requirement that a
household return a letter notifying the household
of eligibility for direct certification or
eligibility for free school meals does not meet
the requirements of clause (i).''.
SEC. 102. CATEGORICAL ELIGIBILITY OF FOSTER CHILDREN.

(a) Discretionary Certification.--Section 9(b)(5) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(5)) is amended--
(1) in subparagraph (C), by striking ``or'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(E)(i) a foster child whose care and placement is
the responsibility of an agency that administers a State
plan under part B or E of title IV of the Social
Security Act (42 U.S.C. 621 et seq.); or
``(ii) a foster child who a court has placed with a
caretaker household.''.

(b) Categorical Eligibility.--Section 9(b)(12)(A) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(12)(A)) is
amended--
(1) in clause (iv), by adding ``)'' before the semicolon at
the end;
(2) in clause (v), by striking ``or'' at the end;
(3) in clause (vi), by striking the period at the end and
inserting ``; or''; and
(4) by adding at the end the following:
``(vii)(I) a foster child whose care and
placement is the responsibility of an agency that
administers a State plan under part B or E of
title IV of the Social Security Act (42 U.S.C. 621
et seq.); or

[[Page 3188]]

``(II) a foster child who a court has placed
with a caretaker household.''.

(c) Documentation.--Section 9(d)(2) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(F)(i) documentation has been provided to the
appropriate local educational agency showing the status
of the child as a foster child whose care and placement
is the responsibility of an agency that administers a
State plan under part B or E of title IV of the Social
Security Act (42 U.S.C. 621 et seq.); or
``(ii) documentation has been provided to the
appropriate local educational agency showing the status
of the child as a foster child who a court has placed
with a caretaker household.''.
SEC. 103. DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID
BENEFITS.

(a) In General.--Section 9(b) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end the
following:
``(15) Direct certification for children receiving medicaid
benefits.--
``(A) Definitions.--In this paragraph:
``(i) Eligible child.--The term `eligible
child' means a child--
``(I)(aa) who is eligible for and
receiving medical assistance under the
Medicaid program; and
``(bb) who is a member of a family
with an income as measured by the
Medicaid program before the application
of any expense, block, or other income
disregard, that does not exceed 133
percent of the poverty line (as defined
in section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2), including any revision required
by such section)) applicable to a family
of the size used for purposes of
determining eligibility for the Medicaid
program; or
``(II) who is a member of a
household (as that term is defined in
section 245.2 of title 7, Code of
Federal Regulations (or successor
regulations) with a child described in
subclause (I).
``(ii) Medicaid program.--The term `Medicaid
program' means the program of medical assistance
established under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.).
``(B) Demonstration project.--
``(i) In general.--The Secretary, acting
through the Administrator of the Food and
Nutrition Service and in cooperation with selected
State agencies, shall conduct a demonstration
project in selected local educational agencies to
determine whether direct certification of eligible
children is an effective method of certifying
children for free lunches and breakfasts

[[Page 3189]]

under section 9(b)(1)(A) of this Act and section
4(e)(1)(A) of the Child Nutrition Act of 1966 (42
U.S.C. 1773(e)(1)(A)).
``(ii) Scope of project.--The Secretary shall
carry out the demonstration project under this
subparagraph--
``(I) for the school year beginning
July 1, 2012, in selected local
educational agencies that collectively
serve 2.5 percent of students certified
for free and reduced price meals
nationwide, based on the most recent
available data;
``(II) for the school year beginning
July 1, 2013, in selected local
educational agencies that collectively
serve 5 percent of students certified
for free and reduced price meals
nationwide, based on the most recent
available data; and
``(III) for the school year
beginning July 1, 2014, and each
subsequent school year, in selected
local educational agencies that
collectively serve 10 percent of
students certified for free and reduced
price meals nationwide, based on the
most recent available data.
``(iii) Purposes of the project.--At a
minimum, the purposes of the demonstration project
shall be--
``(I) to determine the potential of
direct certification with the Medicaid
program to reach children who are
eligible for free meals but not
certified to receive the meals;
``(II) to determine the potential of
direct certification with the Medicaid
program to directly certify children who
are enrolled for free meals based on a
household application; and
``(III) to provide an estimate of
the effect on Federal costs and on
participation in the school lunch
program under this Act and the school
breakfast program established by section
4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) of direct certification
with the Medicaid program.
``(iv) Cost estimate.--For each of 2 school
years of the demonstration project, the Secretary
shall estimate the cost of the direct
certification of eligible children for free school
meals through data derived from--
``(I) the school meal programs
authorized under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.);
``(II) the Medicaid program; and
``(III) interviews with a
statistically representative sample of
households.
``(C) Agreement.--
``(i) <>  In general.--Not
later than July 1 of the first school year during
which a State agency will participate in the
demonstration project, the State agency shall
enter into an agreement with the 1 or more State
agencies conducting eligibility determinations for
the Medicaid program.

[[Page 3190]]

``(ii) <>  Without further
application.--Subject to paragraph (6), the
agreement described in subparagraph (D) shall
establish procedures under which an eligible child
shall be certified for free lunches under this Act
and free breakfasts under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773), without
further application (as defined in paragraph
(4)(G)).
``(D) <>  Certification.--For
the school year beginning on July 1, 2012, and each
subsequent school year, subject to paragraph (6), the
local educational agencies participating in the
demonstration project shall certify an eligible child 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 (as
defined in paragraph (4)(G)).
``(E) Site selection.--
``(i) In general.--To be eligible to
participate in the demonstration project under
this subsection, a State agency shall submit to
the Secretary an application at such time, in such
manner, and containing such information as the
Secretary may require.
``(ii) Considerations.--In selecting States
and local educational agencies for participation
in the demonstration project, the Secretary may
take into consideration such factors as the
Secretary considers to be appropriate, which may
include--
``(I) the rate of direct
certification;
``(II) the share of individuals who
are eligible for benefits under the
supplemental nutrition assistance
program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.) who participate in the program, as
determined by the Secretary;
``(III) the income eligibility limit
for the Medicaid program;
``(IV) the feasibility of matching
data between local educational agencies
and the Medicaid program;
``(V) the socioeconomic profile of
the State or local educational agencies;
and
``(VI) the willingness of the State
and local educational agencies to comply
with the requirements of the
demonstration project.
``(F) Access to data.--For purposes of conducting
the demonstration project under this paragraph, the
Secretary shall have access to--
``(i) educational and other records of State
and local educational and other agencies and
institutions receiving funding or providing
benefits for 1 or more programs authorized under
this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
``(ii) income and program participation
information from public agencies administering the
Medicaid program.
``(G) Report to congress.--

[[Page 3191]]

``(i) In general.--Not later than October 1,
2014, the Secretary shall submit to the Committee
on Education and Labor of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate, an interim
report that describes the results of the
demonstration project required under this
paragraph.
``(ii) Final report.--Not later than October
1, 2015, the Secretary shall submit a final report
to the committees described in clause (i).
``(H) Funding.--
``(i) <>  In general.--
On October 1, 2010, out of any funds in the
Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary to
carry out subparagraph (G) $5,000,000, to remain
available until expended.
``(ii) Receipt and acceptance.--The Secretary
shall be entitled to receive, shall accept, and
shall use to carry out subparagraph (G) the funds
transferred under clause (i), without further
appropriation.''.

(b) Documentation.--Section 9(d)(2) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(d)(2)) (as amended by section
102(c)) is amended--
(1) in subparagraph (E), by striking ``or'' at the end;
(2) in subparagraph (F)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(G) documentation has been provided to the
appropriate local educational agency showing the status
of the child as an eligible child (as defined in
subsection (b)(15)(A)).''.

(c) Agreement for Direct Certification and Cooperation by State
Medicaid Agencies.--
(1) In general.--Section 1902(a)(7) of the Social Security
Act (42 U.S.C. 1396a(a)(7)) is amended to read as follows:
``(7) provide--
``(A) safeguards which restrict the use or
disclosure of information concerning applicants and
recipients to purposes directly connected with--
``(i) the administration of the plan; and
``(ii) the exchange of information necessary
to certify or 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; and
``(B) that, notwithstanding the Express Lane option
under subsection (e)(13), the State may enter into an
agreement with the State agency administering the school
lunch program established under the Richard B. Russell
National School Lunch Act under which the State shall
establish procedures to ensure that--
``(i) a child receiving medical assistance
under the State plan under this title whose family
income does not exceed 133 percent of the poverty
line (as defined

[[Page 3192]]

in section 673(2) of the Community Services Block
Grant Act, including any revision required by such
section), as determined without regard to any
expense, block, or other income disregard,
applicable to a family of the size involved, may
be certified as eligible for free lunches under
the Richard B. Russell National School Lunch Act
and free breakfasts under the Child Nutrition Act
of 1966 without further application; and
``(ii) the State agencies responsible for
administering the State plan under this title, and
for carrying out the school lunch program
established under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) or the
school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C.
1773), cooperate in carrying out paragraphs (3)(F)
and (15) of section 9(b) of that Act;''.
(2) <>  Effective date.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall take
effect on the date of enactment of this Act.
(B) Extension of effective date for state law
amendment.--In the case of a State plan under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.)
which the Secretary of Health and Human Services
determines requires State legislation in order for the
plan to meet the additional requirements imposed by the
amendments made by this section, the State plan shall
not be regarded as failing to comply with the
requirements of the amendments made by this section
solely on the basis of its failure to meet such
additional requirements before the first day of the
first calendar quarter beginning after the close of the
first regular session of the State legislature that
begins after the date of the enactment of this Act. For
purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year
of the session is considered to be a separate regular
session of the State legislature.

(d) Conforming Amendments.--Section 444(b)(1) of the General
Education Provisions Act (20 U.S.C. 1232g(b)(1)) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J)(ii), by striking the period at the
end and inserting ``; and'';
(3) by adding at the end the following:
``(K) <>  the Secretary of
Agriculture, or authorized representative from the Food and
Nutrition Service or contractors acting on behalf of the Food
and Nutrition Service, for the purposes of conducting program
monitoring, evaluations, and performance measurements of State
and local educational and other agencies and institutions
receiving funding or providing benefits of 1 or more programs
authorized under 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.) for which the results will be reported
in an aggregate form that does not identify any individual, on
the conditions that--
``(i) any data collected under this subparagraph
shall be protected in a manner that will not permit the
personal

[[Page 3193]]

identification of students and their parents by other
than the authorized representatives of the Secretary;
and
``(ii) any personally identifiable data shall be
destroyed when the data are no longer needed for program
monitoring, evaluations, and performance
measurements.''.
SEC. 104. ELIMINATING INDIVIDUAL APPLICATIONS THROUGH COMMUNITY
ELIGIBILITY.

(a) Universal Meal Service in High Poverty Areas.--
(1) Eligibility.--Section 11(a)(1) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by
adding at the end the following:
``(F) Universal meal service in high poverty
areas.--
``(i) Definition of identified students.--The
term `identified students' means students
certified based on documentation of benefit
receipt or categorical eligibility as described in
section 245.6a(c)(2) of title 7, Code of Federal
Regulations (or successor regulations).
``(ii) Election of special assistance
payments.--
``(I) In general.--A local
educational agency may, for all schools
in the district or on behalf of certain
schools in the district, elect to
receive special assistance payments
under this subparagraph in lieu of
special assistance payments otherwise
made available under this paragraph
based on applications for free and
reduced price lunches if--
``(aa) during a period of 4
successive school years, the
local educational agency elects
to serve all children in the
applicable schools free lunches
and breakfasts under the school
lunch program under this Act and
the school breakfast program
established under section 4 of
the Child Nutrition Act of 1966
(42 U.S.C. 1773);
``(bb) the local educational
agency pays, from sources other
than Federal funds, the costs of
serving the lunches or
breakfasts that are in excess of
the value of assistance received
under this Act and the Child
Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
``(cc) the local educational
agency is not a residential
child care institution (as that
term is used in section 210.2 of
title 7, Code of Federal
Regulations (or successor
regulations)); and
``(dd) during the school
year prior to the first year of
the period for which the local
educational agency elects to
receive special assistance
payments under this
subparagraph, the local
educational agency or school had
a percentage of enrolled
students who were identified
students that meets or exceeds
the threshold described in
clause (viii).

[[Page 3194]]

``(II) Election to stop receiving
payments.--
A <>
local educational agency may, for all
schools in the district or on behalf of
certain schools in the district, elect
to stop receiving special assistance
payments under this subparagraph for the
following school year by notifying the
State agency not later than June 30 of
the current school year of the intention
to stop receiving special assistance
payments under this subparagraph.
``(iii) First year of option.--
``(I) Special assistance payment.--
For each month of the first school year
of the 4-year period during which a
school or local educational agency
elects to receive payments under this
subparagraph, special assistance
payments at the rate for free meals
shall be made under this subparagraph
for a percentage of all reimbursable
meals served in an amount equal to the
product obtained by multiplying--
``(aa) the multiplier
described in clause (vii); by
``(bb) the percentage of
identified students at the
school or local educational
agency as of April 1 of the
prior school year, up to a
maximum of 100 percent.
``(II) Payment for other meals.--The
percentage of meals served that is not
described in subclause (I) shall be
reimbursed at the rate provided under
section 4.
``(iv) Second, third, or fourth year of
option.--
``(I) Special assistance payment.--
For each month of the second, third, or
fourth school year of the 4-year period
during which a school or local
educational agency elects to receive
payments under this subparagraph,
special assistance payments at the rate
for free meals shall be made under this
subparagraph for a percentage of all
reimbursable meals served in an amount
equal to the product obtained by
multiplying--
``(aa) the multiplier
described in clause (vii); by
``(bb) the higher of the
percentage of identified
students at the school or local
educational agency as of April 1
of the prior school year or the
percentage of identified
students at the school or local
educational agency as of April 1
of the school year prior to the
first year that the school or
local educational agency elected
to receive special assistance
payments under this
subparagraph, up to a maximum of
100 percent.
``(II) Payment for other meals.--The
percentage of meals served that is not
described in subclause (I) shall be
reimbursed at the rate provided under
section 4.
``(v) Grace year.--

[[Page 3195]]

``(I) <>  In
general.--If, not later than April 1 of
the fourth year of a 4-year period
described in clause (ii)(I), a school or
local educational agency has a
percentage of enrolled students who are
identified students that meets or
exceeds a percentage that is 10
percentage points lower than the
threshold described in clause (viii),
the school or local educational agency
may elect to receive special assistance
payments under subclause (II) for an
additional grace year.
``(II) Special assistance payment.--
For each month of a grace year, special
assistance payments at the rate for free
meals shall be made under this
subparagraph for a percentage of all
reimbursable meals served in an amount
equal to the product obtained by
multiplying--
``(aa) the multiplier
described in clause (vii); by
``(bb) the percentage of
identified students at the
school or local educational
agency as of April 1 of the
prior school year, up to a
maximum of 100 percent.
``(III) Payment for other meals.--
The percentage of meals served that is
not described in subclause (II) shall be
reimbursed at the rate provided under
section 4.
``(vi) Applications.--A school or local
educational agency that receives special
assistance payments under this subparagraph may
not be required to collect applications for free
and reduced price lunches.
``(vii) Multiplier.--
``(I) Phase-in.--For each school
year beginning on or before July 1,
2013, the multiplier shall be 1.6.
``(II) Full implementation.--For
each school year beginning on or after
July 1, 2014, the Secretary may use, as
determined by the Secretary--
``(aa) a multiplier between
1.3 and 1.6; and
``(bb) subject to item (aa),
a different multiplier for
different schools or local
educational agencies.
``(viii) Threshold.--
``(I) Phase-in.--For each school
year beginning on or before July 1,
2013, the threshold shall be 40 percent.
``(II) Full implementation.--For
each school year beginning on or after
July 1, 2014, the Secretary may use a
threshold that is less than 40 percent.
``(ix) Phase-in.--
``(I) In general.--In selecting
States for participation during the
phase-in period, the Secretary shall
select States with an adequate number
and variety of schools and local
educational agencies that could benefit
from the option under this subparagraph,
as determined by the Secretary.

[[Page 3196]]

``(II) Limitation.--The Secretary
may not approve additional schools and
local educational agencies to receive
special assistance payments under this
subparagraph after the Secretary has
approved schools and local educational
agencies in--
``(aa) for the school year
beginning on July 1, 2011, 3
States; and
``(bb) for each of the
school years beginning July 1,
2012 and July 1, 2013, an
additional 4 States per school
year.
``(x) Election of option.--
``(I) In general.--For each school
year beginning on or after July 1, 2014,
any local educational agency eligible to
make the election described in clause
(ii) for all schools in the district or
on behalf of certain schools in the
district may elect to receive special
assistance payments under clause (iii)
for the next school year if, not later
than June 30 of the current school year,
the local educational agency submits to
the State agency the percentage of
identified students at the school or
local educational agency.
``(II) <>  State
agency notification.--Not later than May
1 of each school year beginning on or
after July 1, 2011, each State agency
with schools or local educational
agencies that may be eligible to elect
to receive special assistance payments
under this subparagraph shall notify--
``(aa) each local
educational agency that meets or
exceeds the threshold described
in clause (viii) that the local
educational agency is eligible
to elect to receive special
assistance payments under clause
(iii) for the next 4 school
years, of the blended
reimbursement rate the local
educational agency would receive
under clause (iii), and of the
procedures for the local
educational agency to make the
election;
``(bb) each local
educational agency that receives
special assistance payments
under clause (iii) of the
blended reimbursement rate the
local educational agency would
receive under clause (iv);
``(cc) each local
educational agency in the fourth
year of electing to receive
special assistance payments
under this subparagraph that
meets or exceeds a percentage
that is 10 percentage points
lower than the threshold
described in clause (viii) and
that receives special assistance
payments under clause (iv), that
the local educational agency may
continue to receive such
payments for the next school
year, of the blended
reimbursement rate the local
educational agency would receive
under clause (v), and of the
procedures for the local
educational agency to make the
election; and

[[Page 3197]]

``(dd) each local
educational agency that meets or
exceeds a percentage that is 10
percentage points lower than the
threshold described in clause
(viii) that the local
educational agency may be
eligible to elect to receive
special assistance payments
under clause (iii) if the
threshold described in clause
(viii) is met by April 1 of the
school year or if the threshold
is met for a subsequent school
year.
``(III) Public notification of local
educational agencies.--
Not <>  later than May 1 of each school year
beginning on or after July 1, 2011, each
State agency with 1 or more schools or
local educational agencies eligible to
elect to receive special assistance
payments under clause (iii) shall submit
to the Secretary, and the Secretary
shall publish, lists of the local
educational agencies receiving notices
under subclause (II).

``(IV) <>  Public notification of schools.--
Not later than May 1 of each school year
beginning on or after July 1, 2011, each
local educational agency in a State with
1 or more schools eligible to elect to
receive special assistance payments
under clause (iii) shall submit to the
State agency, and the State agency shall
publish--
``(aa) a list of the schools
that meet or exceed the
threshold described in clause
(viii);
``(bb) a list of the schools
that meet or exceed a percentage
that is 10 percentage points
lower than the threshold
described in clause (viii) and
that are in the fourth year of
receiving special assistance
payments under clause (iv); and
``(cc) a list of the schools
that meet or exceed a percentage
that is 10 percentage points
lower than the threshold
described in clause (viii).
``(xi) Implementation.--
``(I) <>
Guidance.--Not later than 90 days after
the date of enactment of this
subparagraph, the Secretary shall issue
guidance to implement this subparagraph.
``(II) <>
Regulations.--Not later than December
31, 2013, the Secretary shall promulgate
regulations that establish procedures
for State agencies, local educational
agencies, and schools to meet the
requirements of this subparagraph,
including exercising the option
described in this subparagraph.
``(III) <>  Publication.--If the Secretary
uses the authority provided in clause
(vii)(II)(bb) to use a different
multiplier for different schools or
local educational agencies, for each
school year beginning on or after July
1, 2014, not later than April 1, 2014,
the Secretary shall publish on the
website of the Secretary a table that
indicates--

[[Page 3198]]

``(aa) each local
educational agency that may
elect to receive special
assistance payments under clause
(ii);
``(bb) the blended
reimbursement rate that each
local educational agency would
receive; and
``(cc) an explanation of the
methodology used to calculate
the multiplier or threshold for
each school or local educational
agency.
``(xii) <>  Report.--Not
later than December 31, 2013, the Secretary shall
publish a report that describes--
``(I) an estimate of the number of
schools and local educational agencies
eligible to elect to receive special
assistance payments under this
subparagraph that do not elect to
receive the payments;
``(II) for schools and local
educational agencies described in
subclause (I)--
``(aa) barriers to
participation in the special
assistance option under this
subparagraph, as described by
the nonparticipating schools and
local educational agencies; and
``(bb) changes to the
special assistance option under
this subparagraph that would
make eligible schools and local
educational agencies more likely
to elect to receive special
assistance payments;
``(III) for schools and local
educational agencies that elect to
receive special assistance payments
under this subparagraph--
``(aa) the number of schools
and local educational agencies;
``(bb) an estimate of the
percentage of identified
students and the percentage of
enrolled students who were
certified to receive free or
reduced price meals in the
school year prior to the
election to receive special
assistance payments under this
subparagraph, and a description
of how the ratio between those
percentages compares to 1.6;
``(cc) an estimate of the
number and share of schools and
local educational agencies in
which more than 80 percent of
students are certified for free
or reduced price meals that
elect to receive special
assistance payments under that
clause; and
``(dd) whether any of the
schools or local educational
agencies stopped electing to
receive special assistance
payments under this
subparagraph;
``(IV) the impact of electing to
receive special assistance payments
under this subparagraph on--
``(aa) program integrity;
``(bb) whether a breakfast
program is offered;
``(cc) the type of breakfast
program offered;

[[Page 3199]]

``(dd) the nutritional
quality of school meals; and
``(ee) program
participation; and
``(V) the multiplier and threshold,
as described in clauses (vii) and (viii)
respectively, that the Secretary will
use for each school year beginning on or
after July 1, 2014 and the rationale for
any change in the multiplier or
threshold.
``(xiii) Funding.--
``(I) <>  In
general.--On October 1, 2010, out of any
funds in the Treasury not otherwise
appropriated, the Secretary of the
Treasury shall transfer to the Secretary
to carry out clause (xii) $5,000,000, to
remain available until September 30,
2014.
``(II) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry out
clause (xii) the funds transferred under
subclause (I), without further
appropriation.''.
(2) Conforming amendments.--Section 11(a)(1)(B) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1759a(a)(1)(B)) is amended by striking ``or (E)'' and inserting
``(E), or (F)''.

(b) Universal Meal Service Through Census Data.--Section 11 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1759a) is
amended by adding at the end the following:
``(g) Universal Meal Service Through Census Data.--
``(1) In general.--To the maximum extent practicable, the
Secretary shall identify alternatives to--
``(A) the daily counting by category of meals
provided by school lunch programs under this Act and the
school breakfast program established by section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773); and
``(B) the use of annual applications as the basis
for eligibility to receive free meals or reduced price
meals under this Act.
``(2) Recommendations.--
``(A) Considerations.--
``(i) In general.--In identifying alternatives
under paragraph (1), the Secretary shall consider
the recommendations of the Committee on National
Statistics of the National Academy of Sciences
relating to use of the American Community Survey
of the Bureau of the Census and other data
sources.
``(ii) Socioeconomic survey.--The Secretary
shall consider use of a periodic socioeconomic
survey of households of children attending school
in the school food authority in not more than 3
school food authorities participating in the
school lunch program under this Act.
``(iii) Survey parameters.--The Secretary
shall establish requirements for the use of a
socioeconomic survey under clause (ii), which
shall--
``(I) include criteria for survey
design, sample frame validity, minimum
level of statistical precision, minimum
survey response rates, frequency

[[Page 3200]]

of data collection, and other criteria
as determined by the Secretary;
``(II) be consistent with the
Standards and Guidelines for Statistical
Surveys, as published by the Office of
Management and Budget;
``(III) be consistent with standards
and requirements that ensure proper use
of Federal funds; and
``(IV) specify that the
socioeconomic survey be conducted at
least once every 4 years.
``(B) Use of alternatives.--Alternatives described
in subparagraph (A) that provide accurate and effective
means of providing meal reimbursement consistent with
the eligibility status of students may be--
``(i) implemented for use in schools or by
school food authorities that agree--
``(I) to serve all breakfasts and
lunches to students at no cost in
accordance with regulations issued by
the Secretary; and
``(II) to pay, from sources other
than Federal funds, the costs of serving
any lunches and breakfasts that are in
excess of the value of assistance
received under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) with respect to the number of
lunches and breakfasts served during the
applicable period; or
``(ii) further tested through demonstration
projects carried out by the Secretary in
accordance with subparagraph (C).
``(C) Demonstration projects.--
``(i) In general.--For the purpose of carrying
out demonstration projects described in
subparagraph (B), the Secretary may waive any
requirement of this Act relating to--
``(I) counting of meals provided by
school lunch or breakfast programs;
``(II) applications for eligibility
for free or reduced priced meals; or
``(III) required direct
certification under section 9(b)(4).
``(ii) Number of projects.--The Secretary
shall carry out demonstration projects under this
paragraph in not more than 5 local educational
agencies for each alternative model that is being
tested.
``(iii) Limitation.--A demonstration project
carried out under this paragraph shall have a
duration of not more than 3 years.
``(iv) Evaluation.--The Secretary shall
evaluate each demonstration project carried out
under this paragraph in accordance with procedures
established by the Secretary.
``(v) Requirement.--In carrying out
evaluations under clause (iv), the Secretary shall
evaluate, using comparisons with local educational
agencies with similar demographic
characteristics--
``(I) the accuracy of the 1 or more
methodologies adopted as compared to the
daily counting

[[Page 3201]]

by category of meals provided by school
meal programs under this Act or the
Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) and the use of annual
applications as the basis for
eligibility to receive free or reduced
price meals under those Acts;
``(II) the effect of the 1 or more
methodologies adopted on participation
in programs under those Acts;
``(III) the effect of the 1 or more
methodologies adopted on administration
of programs under those Acts; and
``(IV) such other matters as the
Secretary determines to be
appropriate.''.
SEC. 105. GRANTS FOR EXPANSION OF SCHOOL BREAKFAST PROGRAMS.

The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is amended
by adding at the end the following:
``SEC. 23. <>  GRANTS FOR EXPANSION OF SCHOOL
BREAKFAST PROGRAMS.

``(a) Definition of Qualifying School.--In this section, the term
`qualifying school' means a school in severe need, as described in
section 4(d)(1).
``(b) Establishment.--Subject to the availability of appropriations
provided in advance in an appropriations Act specifically for the
purpose of carrying out this section, the Secretary shall establish a
program under which the Secretary shall provide grants, on a competitive
basis, to State educational agencies for the purpose of providing
subgrants to local educational agencies for qualifying schools to
establish, maintain, or expand the school breakfast program in
accordance with this section.
``(c) Grants to State Educational Agencies.--
``(1) Application.--To be eligible to receive a grant under
this section, a State educational agency shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
``(2) Administration.--In carrying out this section, the
Secretary shall--
``(A) develop an appropriate competitive application
process; and
``(B) make information available to State
educational agencies concerning the availability of
funds under this section.
``(3) Allocation.--The amount of grants provided by the
Secretary to State educational agencies for a fiscal year under
this section shall not exceed the lesser of--
``(A) the product obtained by multiplying--
``(i) the number of qualifying schools
receiving subgrants or other benefits under
subsection (d) for the fiscal year; and
``(ii) the maximum amount of a subgrant
provided to a qualifying school under subsection
(d)(4)(B); or
``(B) $2,000,000.

``(d) Subgrants to Qualifying Schools.--
``(1) In general.--A State educational agency receiving a
grant under this section shall use funds made available

[[Page 3202]]

under the grant to award subgrants to local educational agencies
for a qualifying school or groups of qualifying schools to carry
out activities in accordance with this section.
``(2) Priority.--In awarding subgrants under this
subsection, a State educational agency shall give priority to
local educational agencies with qualifying schools in which at
least 75 percent of the students are eligible for free or
reduced price school lunches under the school lunch program
established under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.).
``(3) State and district training and technical support.--A
local educational agency or State educational agency may
allocate a portion of each subgrant to provide training and
technical assistance to the staff of qualifying schools to carry
out the purposes of this section.
``(4) Amount; term.--
``(A) In general.--Except as otherwise provided in
this paragraph, a subgrant provided by a State
educational agency to a local educational agency or
qualifying school under this section shall be in such
amount, and shall be provided for such term, as the
State educational agency determines appropriate.
``(B) Maximum amount.--The amount of a subgrant
provided by a State educational agency to a local
educational agency for a qualifying school or a group of
qualifying schools under this subsection shall not
exceed $10,000 for each school year.
``(C) Maximum grant term.--A local educational
agency or State educational agency shall not provide
subgrants to a qualifying school under this subsection
for more than 2 fiscal years.

``(e) Best Practices.--
``(1) In general.--Prior to awarding grants under this
section, the Secretary shall make available to State educational
agencies information regarding the most effective mechanisms by
which to increase school breakfast participation among eligible
children at qualifying schools.
``(2) Preference.--In awarding subgrants under this section,
a State educational agency shall give preference to local
educational agencies for qualifying schools or groups of
qualifying schools that have adopted, or provide assurances that
the subgrant funds will be used to adopt, the most effective
mechanisms identified by the Secretary under paragraph (1).

``(f) Use of Funds.--
``(1) In general.--A qualifying school may use a grant
provided under this section--
``(A) to establish, promote, or expand a school
breakfast program of the qualifying school under this
section, which shall include a nutritional education
component;
``(B) to extend the period during which school
breakfast is available at the qualifying school;
``(C) to provide school breakfast to students of the
qualifying school during the school day; or
``(D) for other appropriate purposes, as determined
by the Secretary.
``(2) Requirement.--Each activity of a qualifying school
under this subsection shall be carried out in accordance with

[[Page 3203]]

applicable nutritional guidelines and regulations issued by the
Secretary.

``(g) Maintenance of Effort.--Grants made available under this
section shall not diminish or otherwise affect the expenditure of funds
from State and local sources for the maintenance of the school breakfast
program.
``(h) Reports.--Not later than 18 months following the end of a
school year during which subgrants are awarded under this section, the
Secretary shall submit to Congress a report describing the activities of
the qualifying schools awarded subgrants.
``(i) <>  Evaluation.--Not later than 180 days
before the end of a grant term under this section, a local educational
agency that receives a subgrant under this section shall--
``(1) evaluate whether electing to provide universal free
breakfasts under the school breakfast program in accordance with
Provision 2 as established under subsections (b) through (k) of
section 245.9 of title 7, Code of Federal Regulations (or
successor regulations), would be cost-effective for the
qualified schools based on estimated administrative savings and
economies of scale; and
``(2) submit the results of the evaluation to the State
educational agency.

``(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2010 through 2015.''.

Subtitle B--Summer Food Service Program

SEC. 111. ALIGNMENT OF ELIGIBILITY RULES FOR PUBLIC AND PRIVATE
SPONSORS.

Section 13(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1761(a)) is amended by striking paragraph (7) and inserting
the following:
``(7) Private nonprofit organizations.--
``(A) Definition of private nonprofit
organization.--In this paragraph, the term `private
nonprofit organization' means an organization that--
``(i) exercises full control and authority
over the operation of the program at all sites
under the sponsorship of the organization;
``(ii) provides ongoing year-round activities
for children or families;
``(iii) demonstrates that the organization has
adequate management and the fiscal capacity to
operate a program under this section;
``(iv) is an organization described in section
501(c) of the Internal Revenue Code of 1986 and
exempt from taxation under 501(a) of that Code;
and
``(v) meets applicable State and local health,
safety, and sanitation standards.
``(B) Eligibility.--Private nonprofit organizations
(other than organizations eligible under paragraph (1))
shall be eligible for the program under the same terms
and conditions as other service institutions.''.

[[Page 3204]]

SEC. 112. OUTREACH TO ELIGIBLE FAMILIES.

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:
``(11) Outreach to eligible families.--
``(A) In general.--The Secretary shall require each
State agency that administers the national school lunch
program under this Act to ensure that, to the maximum
extent practicable, school food authorities
participating in the school lunch program under this Act
cooperate with participating service institutions to
distribute materials to inform families of--
``(i) the availability and location of summer
food service program meals; and
``(ii) the availability of reimbursable
breakfasts served under the school breakfast
program established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).
``(B) Inclusions.--Informational activities carried
out under subparagraph (A) may include--
``(i) the development or dissemination of
printed materials, to be distributed to all school
children or the families of school children prior
to the end of the school year, that inform
families of the availability and location of
summer food service program meals;
``(ii) the development or dissemination of
materials, to be distributed using electronic
means to all school children or the families of
school children prior to the end of the school
year, that inform families of the availability and
location of summer food service program meals; and
``(iii) such other activities as are approved
by the applicable State agency to promote the
availability and location of summer food service
program meals to school children and the families
of school children.
``(C) Multiple state agencies.--If the State agency
administering the program under this section is not the
same State agency that administers the school lunch
program under this Act, the 2 State agencies shall work
cooperatively to implement this paragraph.''.
SEC. 113. SUMMER FOOD SERVICE SUPPORT GRANTS.

Section 13(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1761(a)) (as amended by section 112) is amended by adding at
the end the following:
``(12) Summer food service support grants.--
``(A) In general.--The Secretary shall use funds
made available to carry out this paragraph to award
grants on a competitive basis to State agencies to
provide to eligible service institutions--
``(i) technical assistance;
``(ii) assistance with site improvement costs;
or
``(iii) other innovative activities that
improve and encourage sponsor retention.
``(B) Eligibility.--To be eligible to receive a
grant under this paragraph, a State agency shall submit
an application to the Secretary in such manner, at such
time,

[[Page 3205]]

and containing such information as the Secretary may
require.
``(C) Priority.--In making grants under this
paragraph, the Secretary shall give priority to--
``(i) applications from States with
significant low-income child populations; and
``(ii) State plans that demonstrate innovative
approaches to retain and support summer food
service programs after the expiration of the
start-up funding grants.
``(D) Use of funds.--A State and eligible service
institution may use funds made available under this
paragraph to pay for such costs as the Secretary
determines are necessary to establish and maintain
summer food service programs.
``(E) 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.
``(F) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $20,000,000 for fiscal years 2011 through
2015.''.

Subtitle C--Child and Adult Care Food Program

SEC. 121. SIMPLIFYING AREA ELIGIBILITY DETERMINATIONS IN THE CHILD
AND ADULT CARE FOOD PROGRAM.

Section 17(f)(3)(A)(ii)(I)(bb) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)(I)(bb)) is amended by
striking ``elementary''.
SEC. 122. EXPANSION OF AFTERSCHOOL MEALS FOR AT-RISK CHILDREN.

Section 17(r) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(r)) is amended by striking paragraph (5) and inserting
the following:
``(5) Limitation.--An institution participating in the
program under this subsection may not claim reimbursement for
meals and snacks that are served under section 18(h) on the same
day.
``(6) Handbook.--
``(A) <>  In general.--Not later
than 180 days after the date of enactment of the
Healthy, Hunger-Free Kids Act of 2010, the Secretary
shall--
``(i) issue guidelines for afterschool meals
for at-risk school children; and
``(ii) publish a handbook reflecting those
guidelines.
``(B) Review.--Each year after the issuance of
guidelines under subparagraph (A), the Secretary shall--
``(i) review the guidelines; and
``(ii) issue a revised handbook reflecting
changes made to the guidelines.''.

[[Page 3206]]

Subtitle D--Special Supplemental Nutrition Program for Women, Infants,
and Children

SEC. 131. CERTIFICATION PERIODS.

Section 17(d)(3)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)(A)) is amended by adding at the end the following:
``(iii) Children.--A State may elect to
certify participant children for a period of up to
1 year, if the State electing the option provided
under this clause ensures that participant
children receive required health and nutrition
assessments.''.

Subtitle E--Miscellaneous

SEC. 141. CHILDHOOD HUNGER RESEARCH.

The Richard B. Russell National School Lunch Act is amended by
inserting after section 22 (42 U.S.C. 1769c) the following:
``SEC. 23. <>  CHILDHOOD HUNGER RESEARCH.

``(a) Research on Causes and Consequences of Childhood Hunger.--
``(1) In general.--The Secretary shall conduct research on--
``(A) the causes of childhood hunger and food
insecurity;
``(B) the characteristics of households with
childhood hunger and food insecurity; and
``(C) the consequences of childhood hunger and food
insecurity.
``(2) Authority.--In carrying out research under paragraph
(1), the Secretary may--
``(A) enter into competitively awarded contracts or
cooperative agreements; or
``(B) provide grants to States or public or private
agencies or organizations, as determined by the
Secretary.
``(3) Application.--To be eligible to enter into a contract
or cooperative agreement or receive a grant under this
subsection, a State or public or private agency or organization
shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary
shall require.
``(4) Areas of inquiry.--The Secretary shall design the
research program to advance knowledge and understanding of
information on the issues described in paragraph (1), such as--
``(A) economic, health, social, cultural,
demographic, and other factors that contribute to
childhood hunger or food insecurity;
``(B) the geographic distribution of childhood
hunger and food insecurity;
``(C) the extent to which--
``(i) existing Federal assistance programs,
including the Internal Revenue Code of 1986,
reduce childhood hunger and food insecurity; and

[[Page 3207]]

``(ii) childhood hunger and food insecurity
persist due to--
``(I) gaps in program coverage;
``(II) the inability of potential
participants to access programs; or
``(III) the insufficiency of program
benefits or services;
``(D) the public health and medical costs of
childhood hunger and food insecurity;
``(E) an estimate of the degree to which the Census
Bureau measure of food insecurity underestimates
childhood hunger and food insecurity because the Census
Bureau excludes certain households, such as homeless, or
other factors;
``(F) the effects of childhood hunger on child
development, well-being, and educational attainment; and
``(G) such other critical outcomes as are determined
by the Secretary.
``(5) Funding.--
``(A) <>  In general.--On
October 1, 2012, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this
subsection $10,000,000, to remain available until
expended.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this subsection the funds transferred under
subparagraph (A), without further appropriation.

``(b) Demonstration Projects To End Childhood Hunger.--
``(1) Definitions.--In this subsection:
``(A) Child.--The term `child' means a person under
the age of 18.
``(B) Supplemental nutrition assistance program.--
The term `supplemental nutrition assistance program'
means the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
``(2) Purpose.--Under such terms and conditions as are
established by the Secretary, the Secretary shall carry out
demonstration projects that test innovative strategies to end
childhood hunger, including alternative models for service
delivery and benefit levels that promote the reduction or
elimination of childhood hunger and food insecurity.
``(3) Projects.--Demonstration projects carried out under
this subsection may include projects that--
``(A) enhance benefits provided under the
supplemental nutrition assistance program for eligible
households with children;
``(B) enhance benefits or provide for innovative
program delivery models in the school meals, afterschool
snack, and child and adult care food programs under this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.); and
``(C) target Federal, State, or local assistance,
including emergency housing or family preservation
services, at households with children who are
experiencing hunger or food insecurity, to the extent
permitted by the legal

[[Page 3208]]

authority establishing those assistance programs and
services.
``(4) Grants.--
``(A) Demonstration projects.--
``(i) In general.--In carrying out this
subsection, the Secretary may enter into
competitively awarded contracts or cooperative
agreements with, or provide grants to, public or
private organizations or agencies (as determined
by the Secretary), for use in accordance with
demonstration projects that meet the purposes of
this subsection.
``(ii) Requirement.--At least 1 demonstration
project funded under this subsection shall be
carried out on an Indian reservation in a rural
area with a service population with a prevalence
of diabetes that exceeds 15 percent, as determined
by the Director of the Indian Health Service.
``(B) Application.--To be eligible to receive a
contract, cooperative agreement, or grant under this
subsection, an organization or agency shall submit to
the Secretary an application at such time, in such
manner, and containing such information as the Secretary
may require.
``(C) Selection criteria.--Demonstration projects
shall be selected based on publicly disseminated
criteria that may include--
``(i) an identification of a low-income target
group that reflects individuals experiencing
hunger or food insecurity;
``(ii) a commitment to a demonstration project
that allows for a rigorous outcome evaluation as
described in paragraph (6);
``(iii) a focus on innovative strategies to
reduce the risk of childhood hunger or provide a
significant improvement to the food security
status of households with children; and
``(iv) such other criteria as are determined
by the Secretary.
``(5) Consultation.--In determining the range of projects
and defining selection criteria under this subsection, the
Secretary shall consult with--
``(A) the Secretary of Health and Human Services;
``(B) the Secretary of Labor; and
``(C) the Secretary of Housing and Urban
Development.
``(6) Evaluation and reporting.--
``(A) Independent evaluation.--The Secretary shall
provide for an independent evaluation of each
demonstration project carried out under this subsection
that--
``(i) measures the impact of each
demonstration project on appropriate
participation, food security, nutrition, and
associated behavioral outcomes among participating
households; and
``(ii) uses rigorous experimental designs and
methodologies, particularly random assignment or
other methods that are capable of producing
scientifically valid information regarding which
activities are effective in reducing the
prevalence or preventing the

[[Page 3209]]

incidence of food insecurity and hunger in the
community, especially among children.
``(B) Reporting.--Not later than December 31, 2013
and each December 31 thereafter until the date on which
the last evaluation under subparagraph (A) is completed,
the Secretary shall--
``(i) submit to the Committee on Agriculture
and the Committee on Education and Labor of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate
a report that includes a description of--
``(I) the status of each
demonstration project; and
``(II) the results of any
evaluations of the demonstration
projects completed during the previous
fiscal year; and
``(ii) ensure that the evaluation results are
shared broadly to inform policy makers, service
providers, other partners, and the public in order
to promote the wide use of successful strategies.
``(7) Funding.--
``(A) <>  In general.--On
October 1, 2012, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out this
subsection $40,000,000, to remain available until
September 30, 2017.
``(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) Use of funds.--
``(i) In general.--Funds made available under
subparagraph (A) may be used to carry out this
subsection, including to pay Federal costs
associated with developing, soliciting, awarding,
monitoring, evaluating, and disseminating the
results of each demonstration project under this
subsection.
``(ii) Indian reservations.--Of amounts made
available under subparagraph (A), the Secretary
shall use a portion of the amounts to carry out
research relating to hunger, obesity and type 2
diabetes on Indian reservations, including
research to determine the manner in which Federal
nutrition programs can help to overcome those
problems.
``(iii) Report.--Not later than 1 year after
the date of enactment of this section, the
Secretary shall submit to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
``(I) describes the manner in which
Federal nutrition programs can help to
overcome child hunger nutrition problems
on Indian reservations; and
``(II) contains proposed
administrative and legislative
recommendations to strengthen and
streamline all relevant Department of
Agriculture

[[Page 3210]]

nutrition programs to reduce childhood
hunger, obesity, and type 2 diabetes on
Indian reservations.
``(D) Limitations.--
``(i) Duration.--No project may be funded
under this subsection for more than 5 years.
``(ii) Project requirements.--No project that
makes use of, alters, or coordinates with the
supplemental nutrition assistance program may be
funded under this subsection unless the project is
fully consistent with the project requirements
described in section 17(b)(1)(B) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)).
``(iii) Hunger-free communities.--No project
may be funded under this subsection that receives
funding under section 4405 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
7517).
``(iv) Other benefits.--Funds made available
under this subsection may not be used for any
project in a manner that is inconsistent with--
``(I) this Act;
``(II) the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.);
``(III) the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.); or
``(IV) the Emergency Food Assistance
Act of 1983 (7 U.S.C. 7501 et seq.).''.
SEC. 142. STATE CHILDHOOD HUNGER CHALLENGE GRANTS.

The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) is amended by inserting after section 23 (as added by section 141)
the following:
``SEC. 24. <>  STATE CHILDHOOD HUNGER
CHALLENGE GRANTS.

``(a) Definitions.--In this section:
``(1) Child.--The term `child' means a person under the age
of 18.
``(2) Supplemental nutrition assistance program.--The term
`supplemental nutrition assistance program' means the
supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).

``(b) Purpose.--Under such terms and conditions as are established
by the Secretary, funds made available under this section may be used to
competitively award grants to or enter into cooperative agreements with
Governors to carry out comprehensive and innovative strategies to end
childhood hunger, including alternative models for service delivery and
benefit levels that promote the reduction or elimination of childhood
hunger by 2015.
``(c) Projects.--State demonstration projects carried out under this
section may include projects that--
``(1) enhance benefits provided under the supplemental
nutrition assistance program for eligible households with
children;
``(2) enhance benefits or provide for innovative program
delivery models in the school meals, afterschool snack, and
child and adult care food programs under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
``(3) target Federal, State, or local assistance, including
emergency housing, family preservation services, child care,

[[Page 3211]]

or temporary assistance at households with children who are
experiencing hunger or food insecurity, to the extent permitted
by the legal authority establishing those assistance programs
and services;
``(4) enhance outreach to increase access and participation
in Federal nutrition assistance programs; and
``(5) improve the coordination of Federal, State, and
community resources and services aimed at preventing food
insecurity and hunger, including through the establishment and
expansion of State food policy councils.

``(d) Grants.--
``(1) In general.--In carrying out this section, the
Secretary may competitively award grants or enter into
competitively awarded cooperative agreements with Governors for
use in accordance with demonstration projects that meet the
purposes of this section.
``(2) Application.--To be eligible to receive a grant or
cooperative agreement under this section, a Governor shall
submit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary may
require.
``(3) Selection criteria.--The Secretary shall evaluate
proposals based on publicly disseminated criteria that may
include--
``(A) an identification of a low-income target group
that reflects individuals experiencing hunger or food
insecurity;
``(B) a commitment to approaches that allow for a
rigorous outcome evaluation as described in subsection
(f);
``(C) a comprehensive and innovative strategy to
reduce the risk of childhood hunger or provide a
significant improvement to the food security status of
households with children; and
``(D) such other criteria as are determined by the
Secretary.
``(4) Requirements.--Any project funded under this section
shall provide for--
``(A) a baseline assessment, and subsequent annual
assessments, of the prevalence and severity of very low
food security among children in the State, based on a
methodology prescribed by the Secretary;
``(B) a collaborative planning process including key
stakeholders in the State that results in a
comprehensive agenda to eliminate childhood hunger that
is--
``(i) described in a detailed project plan;
and
``(ii) provided to the Secretary for approval;
``(C) an annual budget;
``(D) specific performance goals, including the goal
to sharply reduce or eliminate food insecurity among
children in the State by 2015, as determined through a
methodology prescribed by the Secretary and carried out
by the Governor; and
``(E) an independent outcome evaluation of not less
than 1 major strategy of the project that measures--
``(i) the specific impact of the strategy on
food insecurity among children in the State; and

[[Page 3212]]

``(ii) if applicable, the nutrition assistance
participation rate among children in the State.

``(e) Consultation.--In determining the range of projects and
defining selection criteria under this section, the Secretary shall
consult with--
``(1) the Secretary of Health and Human Services;
``(2) the Secretary of Labor;
``(3) the Secretary of Education; and
``(4) the Secretary of Housing and Urban Development.

``(f) Evaluation and Reporting.--
``(1) General performance assessment.--Each project
authorized under this section shall require an independent
assessment that--
``(A) measures the impact of any activities carried
out under the project on the level of food insecurity in
the State that--
``(i) focuses particularly on the level of
food insecurity among children in the State; and
``(ii) includes a preimplementation baseline
and annual measurements taken during the project
of the level of food insecurity in the State; and
``(B) is carried out using a methodology prescribed
by the Secretary.
``(2) Independent evaluation.--Each project authorized under
this section shall provide for an independent evaluation of not
less than 1 major strategy that--
``(A) measures the impact of the strategy on
appropriate participation, food security, nutrition, and
associated behavioral outcomes among participating
households; and
``(B) uses rigorous experimental designs and
methodologies, particularly random assignment or other
methods that are capable of producing scientifically
valid information regarding which activities are
effective in reducing the prevalence or preventing the
incidence of food insecurity and hunger in the
community, especially among children.
``(3) Reporting.--Not later than December 31, 2011 and each
December 31 thereafter until the date on which the last
evaluation under paragraph (1) is completed, the Secretary
shall--
``(A) submit to the Committee on Agriculture and the
Committee on Education and Labor of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
includes a description of--
``(i) the status of each State demonstration
project; and
``(ii) the results of any evaluations of the
demonstration projects completed during the
previous fiscal year; and
``(B) ensure that the evaluation results are shared
broadly to inform policy makers, service providers,
other partners, and the public in order to promote the
wide use of successful strategies.

``(g) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section such sums as are necessary for each

[[Page 3213]]

of fiscal years 2011 through 2014, to remain available until
expended.
``(2) Use of funds.--Funds made available under paragraph
(1) may be used to carry out this section, including to pay
Federal costs associated with developing, soliciting, awarding,
monitoring, evaluating, and disseminating the results of each
demonstration project under this section.
``(3) Limitations.--
``(A) Duration.--No project may be funded under this
section for more than 5 years.
``(B) Performance basis.--Funds provided under this
section shall be made available to each Governor on an
annual basis, with the amount of funds provided for each
year contingent on the satisfactory implementation of
the project plan and progress towards the performance
goals defined in the project year plan.
``(C) Altering nutrition assistance program
requirements.--No project that makes use of, alters, or
coordinates with the supplemental nutrition assistance
program may be funded under this section unless the
project is fully consistent with the project
requirements described in section 17(b)(1)(B) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)).
``(D) Other benefits.--Funds made available under
this section may not be used for any project in a manner
that is inconsistent with--
``(i) this Act;
``(ii) the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.);
``(iii) the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.); or
``(iv) the Emergency Food Assistance Act of
1983 (7 U.S.C. 7501 et seq.).''.
SEC. 143. <>  REVIEW OF LOCAL POLICIES ON
MEAL CHARGES AND PROVISION OF ALTERNATE
MEALS.

(a) In General.--
(1) Review.--The Secretary, in conjunction with States and
participating local educational agencies, shall examine the
current policies and practices of States and local educational
agencies regarding extending credit to children to pay the cost
to the children of reimbursable school lunches and breakfasts.
(2) Scope.--The examination under paragraph (1) shall
include the policies and practices in effect as of the date of
enactment of this Act relating to providing to children who are
without funds a meal other than the reimbursable meals.
(3) Feasibility.--In carrying out the examination under
paragraph (1), the Secretary shall--
(A) <>  prepare a report on the
feasibility of establishing national standards for meal
charges and the provision of alternate meals; and
(B) <>  provide
recommendations for implementing those standards.

(b) Followup Actions.--
(1) In general.--Based on the findings and recommendations
under subsection (a), the Secretary may--

[[Page 3214]]

(A) implement standards described in paragraph (3)
of that subsection through regulation;
(B) test recommendations through demonstration
projects; or
(C) study further the feasibility of
recommendations.
(2) Factors for consideration.--In determining how best to
implement recommendations described in subsection (a)(3), the
Secretary shall consider such factors as--
(A) the impact of overt identification on children;
(B) the manner in which the affected households will
be provided with assistance in establishing eligibility
for free or reduced price school meals; and
(C) the potential financial impact on local
educational agencies.

TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF CHILDREN

Subtitle A--National School Lunch Program

SEC. 201. PERFORMANCE-BASED REIMBURSEMENT RATE INCREASES FOR NEW
MEAL PATTERNS.

Section 4(b) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1753(b)) is amended by adding at the end the following:
``(3) Additional reimbursement.--
``(A) <>  Regulations.--
``(i) Proposed regulations.--Notwithstanding
section 9(f), not later than 18 months after the
date of enactment of this paragraph, the Secretary
shall promulgate proposed regulations to update
the meal patterns and nutrition standards for the
school lunch program authorized under this Act and
the school breakfast program established by
section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) based on recommendations made by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences.
``(ii) Interim or final regulations.--
``(I) In general.--Not later than 18
months after promulgation of the
proposed regulations under clause (i),
the Secretary shall promulgate interim
or final regulations.
``(II) Date of required
compliance.--The Secretary shall
establish in the interim or final
regulations a date by which all school
food authorities participating in the
school lunch program authorized under
this Act and the school breakfast
program established by section 4 of the
Child Nutrition Act of 1966 (42 U.S.C.
1773) are required to comply with the
meal pattern and nutrition

[[Page 3215]]

standards established in the interim or
final regulations.
``(iii) Report to congress.--Not later than 90
days after the date of enactment of this
paragraph, and each 90 days thereafter until the
Secretary has promulgated interim or final
regulations under clause (ii), the Secretary shall
submit to the Committee on Education and Labor of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate
a quarterly report on progress made toward
promulgation of the regulations described in this
subparagraph.
``(B) <>  Performance-based
reimbursement rate increase.--Beginning on the later of
the date of promulgation of the implementing regulations
described in subparagraph (A)(ii), the date of enactment
of this paragraph, or October 1, 2012, the Secretary
shall provide additional reimbursement for each lunch
served in school food authorities determined to be
eligible under subparagraph (D).
``(C) Additional reimbursement.--
``(i) In general.--Each lunch served in school
food authorities determined to be eligible under
subparagraph (D) shall receive an additional 6
cents, adjusted in accordance with section
11(a)(3), to the national lunch average payment
for each lunch served.
``(ii) Disbursement.--The State agency shall
disburse funds made available under this paragraph
to school food authorities eligible to receive
additional reimbursement.
``(D) Eligible school food authority.--To be
eligible to receive an additional reimbursement
described in this paragraph, a school food authority
shall be certified by the State to be in compliance with
the interim or final regulations described in
subparagraph (A)(ii).
``(E) <>  Failure to
comply.--Beginning on the later of the date described in
subparagraph (A)(ii)(II), the date of enactment of this
paragraph, or October 1, 2012, school food authorities
found to be out of compliance with the meal patterns or
nutrition standards established by the implementing
regulations shall not receive the additional
reimbursement for each lunch served described in this
paragraph.
``(F) Administrative costs.--
``(i) In general.--Subject to clauses (ii) and
(iii), the Secretary shall make funds available to
States for State activities related to training,
technical assistance, certification, and oversight
activities of this paragraph.
``(ii) Provision of funds.--The Secretary
shall provide funds described in clause (i) to
States administering a school lunch program in a
manner proportional to the administrative expense
allocation of each State during the preceding
fiscal year.
``(iii) Funding.--
``(I) In general.--In the later of
the fiscal year in which the
implementing regulations described in
subparagraph (A)(ii) are promulgated

[[Page 3216]]

or the fiscal year in which this
paragraph is enacted, and in the
subsequent fiscal year, the Secretary
shall use not more than $50,000,000 of
funds made available under section 3 to
make payments to States described in
clause (i).
``(II) Reservation.--In providing
funds to States under clause (i), the
Secretary may reserve not more than
$3,000,000 per fiscal year to support
Federal administrative activities to
carry out this paragraph.''.
SEC. 202. NUTRITION REQUIREMENTS FOR FLUID MILK.

Section 9(a)(2)(A) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758(a)(2)(A)) is amended by striking clause (i) and
inserting the following:
``(i) shall offer students a variety of fluid
milk. Such milk shall be consistent with 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);''.
SEC. 203. WATER.

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:
``(5) Water.--Schools participating in the school lunch
program under this Act shall make available to children free of
charge, as nutritionally appropriate, potable water for
consumption in the place where meals are served during meal
service.''.
SEC. 204. LOCAL SCHOOL WELLNESS POLICY IMPLEMENTATION.

(a) In General.--The Richard B. Russell National School Lunch Act is
amended by inserting after section 9 (42 U.S.C. 1758) the following:
``SEC. 9A. <>  LOCAL SCHOOL WELLNESS POLICY.

``(a) In General.--Each local educational agency participating in a
program authorized by this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) shall establish a local school wellness policy for
all schools under the jurisdiction of the local educational agency.
``(b) <>  Guidelines.--The Secretary shall
promulgate regulations that provide the framework and guidelines for
local educational agencies to establish local school wellness policies,
including, at a minimum,--
``(1) goals for nutrition promotion and education, physical
activity, and other school-based activities that promote student
wellness;
``(2) for all foods available on each school campus under
the jurisdiction of the local educational agency during the
school day, nutrition guidelines that--
``(A) are consistent with sections 9 and 17 of this
Act, and sections 4 and 10 of the Child Nutrition Act of
1966 (42 U.S.C. 1773, 1779); and
``(B) promote student health and reduce childhood
obesity;

[[Page 3217]]

``(3) a requirement that the local educational agency permit
parents, students, representatives of the school food authority,
teachers of physical education, school health professionals, the
school board, school administrators, and the general public to
participate in the development, implementation, and periodic
review and update of the local school wellness policy;
``(4) a requirement that the local educational agency inform
and update the public (including parents, students, and others
in the community) about the content and implementation of the
local school wellness policy; and
``(5) a requirement that the local educational agency--
``(A) periodically measure and make available to the
public an assessment on the implementation of the local
school wellness policy, including--
``(i) the extent to which schools under the
jurisdiction of the local educational agency are
in compliance with the local school wellness
policy;
``(ii) the extent to which the local school
wellness policy of the local educational agency
compares to model local school wellness policies;
and
``(iii) a description of the progress made in
attaining the goals of the local school wellness
policy; and
``(B) designate 1 or more local educational agency
officials or school officials, as appropriate, to ensure
that each school complies with the local school wellness
policy.

``(c) Local Discretion.--The local educational agency shall use the
guidelines promulgated by the Secretary under subsection (b) to
determine specific policies appropriate for the schools under the
jurisdiction of the local educational agency.
``(d) Technical Assistance and Best Practices.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Education and the Secretary of Health and Human
Services, acting through the Centers for Disease Control and
Prevention, shall provide information and technical assistance
to local educational agencies, school food authorities, and
State educational agencies for use in establishing healthy
school environments that are intended to promote student health
and wellness.
``(2) Content.--The Secretary shall provide technical
assistance that--
``(A) includes resources and training on designing,
implementing, promoting, disseminating, and evaluating
local school wellness policies and overcoming barriers
to the adoption of local school wellness policies;
``(B) includes model local school wellness policies
and best practices recommended by Federal agencies,
State agencies, and nongovernmental organizations;
``(C) includes such other technical assistance as is
required to promote sound nutrition and establish
healthy school nutrition environments; and
``(D) is consistent with the specific needs and
requirements of local educational agencies.
``(3) Study and report.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary, in conjunction with the
Director of the Centers for Disease Control and
Prevention, shall

[[Page 3218]]

prepare a report on the implementation, strength, and
effectiveness of the local school wellness policies
carried out in accordance with this section.
``(B) Study of local school wellness policies.--The
study described in subparagraph (A) shall include----
``(i) an analysis of the strength and
weaknesses of local school wellness policies and
how the policies compare with model local wellness
policies recommended under paragraph (2)(B); and
``(ii) an assessment of the impact of the
local school wellness policies in addressing the
requirements of subsection (b).
``(C) Report.--Not later than January 1, 2014, the
Secretary shall submit to the Committee on Education and
Labor of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that describes the findings of the study.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph $3,000,000 for fiscal year 2011, to remain
available until expended.''.

(b) Repeal.--Section 204 of the Child Nutrition and WIC
Reauthorization Act of 2004 (42 U.S.C. 1751 note; Public Law 108-265) is
repealed.
SEC. 205. EQUITY IN SCHOOL LUNCH PRICING.

Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) is amended by adding at the end the following:
``(p) Price for a Paid Lunch.--
``(1) Definition of paid lunch.--In this subsection, the
term `paid lunch' means a reimbursable lunch served to students
who are not certified to receive free or reduced price meals.
``(2) Requirement.--
``(A) <>  In general.--For
each school year beginning July 1, 2011, each school
food authority shall establish a price for paid lunches
in accordance with this subsection.
``(B) Lower price.--
``(i) In general.--In the case of a school
food authority that established a price for a paid
lunch in the previous school year that was less
than the difference between the total Federal
reimbursement for a free lunch and the total
Federal reimbursement for a paid lunch, the school
food authority shall establish an average price
for a paid lunch that is not less than the price
charged in the previous school year, as adjusted
by a percentage equal to the sum obtained by
adding--
``(I) 2 percent; and
``(II) the percentage change in the
Consumer Price Index for All Urban
Consumers (food away from home index)
used to increase the Federal
reimbursement rate under section 11 for
the most recent school year for which
data are available, as published in the
Federal Register.

[[Page 3219]]

``(ii) Rounding.--A school food authority may
round the adjusted price for a paid lunch under
clause (i) down to the nearest 5 cents.
``(iii) Maximum required price increase.--
``(I) In general.--The maximum
annual average price increase required
to meet the requirements of this
subparagraph shall not exceed 10 cents
for any school food authority.
``(II) Discretionary increase.--A
school food authority may increase the
average price for a paid lunch for a
school year by more than 10 cents.
``(C) Equal or greater price.--
``(i) In general.--In the case of a school
food authority that established an average price
for a paid lunch in the previous school year that
was equal to or greater than the difference
between the total Federal reimbursement for a free
lunch and the total Federal reimbursement for a
paid lunch, the school food authority shall
establish an average price for a paid lunch that
is not less than the difference between the total
Federal reimbursement for a free lunch and the
total Federal reimbursement for a paid lunch.
``(ii) Rounding.--A school food authority may
round the adjusted price for a paid lunch under
clause (i) down to the nearest 5 cents.
``(3) Exceptions.--
``(A) Reduction in price.--A school food authority
may reduce the average price of a paid lunch established
under this subsection if the State agency ensures that
funding from non-Federal sources (other than in-kind
contributions) is added to the nonprofit school food
service account of the school food authority in an
amount estimated to be equal to at least the difference
between--
``(i) the average price required of the school
food authority for the paid lunches under
paragraph (2); and
``(ii) the average price charged by the school
food authority for the paid lunches.
``(B) Non-federal sources.--For the purposes of
subparagraph (A), non-Federal sources does not include
revenue from the sale of foods sold in competition with
meals served under the school lunch program authorized
under this Act or the school breakfast program
established by section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773).
``(C) Other programs.--This subsection shall not
apply to lunches provided under section 17 of this Act.
``(4) <>  Regulations.--The Secretary
shall establish procedures to carry out this subsection,
including collecting and publishing the prices that school food
authorities charge for paid meals on an annual basis and
procedures that allow school food authorities to average the
pricing of paid lunches at schools throughout the jurisdiction
of the school food authority.''.

[[Page 3220]]

SEC. 206. REVENUE FROM NONPROGRAM FOODS SOLD IN SCHOOLS.

Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) (as amended by section 205) is amended by adding at the end
the following:
``(q) Nonprogram Food Sales.--
``(1) Definition of nonprogram food.--In this subsection:
``(A) In general.--The term `nonprogram food' means
food that is--
``(i) sold in a participating school other
than a reimbursable meal provided under this Act
or the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.); and
``(ii) purchased using funds from the
nonprofit school food service account of the
school food authority of the school.
``(B) Inclusion.--The term `nonprogram food'
includes food that is sold in competition with a program
established under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
``(2) Revenues.--
``(A) In general.--The proportion of total school
food service revenue provided by the sale of nonprogram
foods to the total revenue of the school food service
account shall be equal to or greater than the proportion
of total food costs associated with obtaining nonprogram
foods to the total costs associated with obtaining
program and nonprogram foods from the account.
``(B) Accrual.--All revenue from the sale of
nonprogram foods shall accrue to the nonprofit school
food service account of a participating school food
authority.
``(C) Effective date.--This subsection shall be
effective beginning on July 1, 2011.''.
SEC. 207. REPORTING AND NOTIFICATION OF SCHOOL PERFORMANCE.

Section 22 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769c) is amended--
(1) by striking subsection (a) and inserting the following:

``(a) Unified Accountability System.--
``(1) In general.--There shall be a unified system
prescribed and administered by the Secretary to ensure that
local food service authorities participating in the school lunch
program established under this Act and the school breakfast
program established by section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) comply with those Acts, including
compliance with--
``(A) the nutritional requirements of section 9(f)
of this Act for school lunches; and
``(B) as applicable, the nutritional requirements
for school breakfasts under section 4(e)(1) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)).''; and
(2) in subsection (b)(1), by striking subparagraphs (A) and
(B) and inserting the following:
``(A) require that local food service authorities
comply with the nutritional requirements described in
subparagraphs (A) and (B) of paragraph (1);
``(B) to the maximum extent practicable, ensure
compliance through reasonable audits and supervisory
assistance reviews;

[[Page 3221]]

``(C) <>  in conducting audits and
reviews for the purpose of determining compliance with
this Act, including the nutritional requirements of
section 9(f)--
``(i) conduct audits and reviews during a 3-
year cycle or other period prescribed by the
Secretary;
``(ii) select schools for review in each local
educational agency using criteria established by
the Secretary;
``(iii) <>  report the final
results of the reviews to the public in the State
in an accessible, easily understood manner in
accordance with guidelines promulgated by the
Secretary; and
``(iv) <>  submit to the
Secretary each year a report containing the
results of the reviews in accordance with
procedures developed by the Secretary; and
``(D) when any local food service authority is
reviewed under this section, ensure that the final
results of the review by the State educational agency
are posted and otherwise made available to the public on
request in an accessible, easily understood manner in
accordance with guidelines promulgated by the
Secretary.''.
SEC. 208. NUTRITION STANDARDS FOR ALL FOODS SOLD IN SCHOOL.

Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) is
amended--
(1) by striking the section heading and all that follows
through ``(a) The Secretary'' and inserting the following:
``SEC. 10. REGULATIONS.

``(a) In General.--The Secretary''; and
(2) by striking subsection (b) and inserting the following:

``(b) National School Nutrition Standards.--
``(1) Proposed regulations.--
``(A) In general.--The Secretary shall--
``(i) establish science-based nutrition
standards for foods sold in schools other than
foods provided under this Act and the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751
et seq.); and
``(ii) <>  not later than 1
year after the date of enactment of this
paragraph, promulgate proposed regulations to
carry out clause (i).
``(B) Application.--The nutrition standards shall
apply to all foods sold--
``(i) outside the school meal programs;
``(ii) on the school campus; and
``(iii) at any time during the school day.
``(C) Requirements.--In establishing nutrition
standards under this paragraph, the Secretary shall--
``(i) establish standards that are consistent
with 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), including the food
groups to encourage and nutrients of concern
identified in the Dietary Guidelines; and
``(ii) consider--
``(I) authoritative scientific
recommendations for nutrition standards;

[[Page 3222]]

``(II) existing school nutrition
standards, including voluntary standards
for beverages and snack foods and State
and local standards;
``(III) the practical application of
the nutrition standards; and
``(IV) special exemptions for
school-sponsored fundraisers (other than
fundraising through vending machines,
school stores, snack bars, a la carte
sales, and any other exclusions
determined by the Secretary), if the
fundraisers are approved by the school
and are infrequent within the school.
``(D) Updating standards.--As soon as practicable
after the date of publication by the Department of
Agriculture and the Department of Health and Human
Services of a new edition of the Dietary Guidelines for
Americans under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7 U.S.C.
5341), the Secretary shall review and update as
necessary the school nutrition standards and
requirements established under this subsection.
``(2) Implementation.--
``(A) <>  Effective date.--The
interim or final regulations under this subsection shall
take effect at the beginning of the school year that is
not earlier than 1 year and not later than 2 years
following the date on which the regulations are
finalized.
``(B) Reporting.--The Secretary shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Education and Labor of the
House of Representatives a quarterly report that
describes progress made toward promulgating final
regulations under this subsection.''.
SEC. 209. INFORMATION FOR THE PUBLIC ON THE SCHOOL NUTRITION
ENVIRONMENT.

Section 9 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758) is amended by adding at the end the following:
``(k) Information on the School Nutrition Environment.--
``(1) In general.--The Secretary shall--
``(A) <>  establish
requirements for local educational agencies
participating in the school lunch program under this Act
and the school breakfast program established by section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) to
report information about the school nutrition
environment, for all schools under the jurisdiction of
the local educational agencies, to the Secretary and to
the public in the State on a periodic basis; and
``(B) provide training and technical assistance to
States and local educational agencies on the assessment
and reporting of the school nutrition environment,
including the use of any assessment materials developed
by the Secretary.
``(2) Requirements.--In establishing the requirements for
reporting on the school nutrition environment under paragraph
(1), the Secretary shall--

[[Page 3223]]

``(A) include information pertaining to food safety
inspections, local wellness policies, meal program
participation, the nutritional quality of program meals,
and other information as determined by the Secretary;
and
``(B) <>
ensure that information is made available to the public
by local educational agencies in an accessible, easily
understood manner in accordance with guidelines
established by the Secretary.
``(3) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection such sums as are
necessary for each of fiscal years 2011 through 2015.''.
SEC. 210. ORGANIC FOOD PILOT PROGRAM.

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:
``(j) Organic Food Pilot Program.--
``(1) Establishment.--The Secretary shall establish an
organic food pilot program (referred to in this subsection as
the `pilot program') under which the Secretary shall provide
grants on a competitive basis to school food authorities
selected under paragraph (3).
``(2) Use of funds.--
``(A) In general.--The Secretary shall use funds
provided under this section--
``(i) to enter into competitively awarded
contracts or cooperative agreements with school
food authorities selected under paragraph (3); or
``(ii) to make grants to school food authority
applicants selected under paragraph (3).
``(B) School food authority uses of funds.--A school
food authority that receives a grant under this section
shall use the grant funds to establish a pilot program
that increases the quantity of organic foods provided to
schoolchildren under the school lunch program
established under this Act.
``(3) Application.--
``(A) In general.--A school food authority seeking a
contract, grant, or cooperative agreement under this
subsection shall submit to the Secretary an application
in such form, containing such information, and at such
time as the Secretary shall prescribe.
``(B) Criteria.--In selecting contract, grant, or
cooperative agreement recipients, the Secretary shall
consider--
``(i) the poverty line (as defined in section
673(2) of the Community Services Block Grant Act
(42 U.S.C. 9902(2), including any revision
required by that section)) applicable to a family
of the size involved of the households in the
district served by the school food authority,
giving preference to school food authority
applicants in which not less than 50 percent of
the households in the district are at or below the
Federal poverty line;
``(ii) the commitment of each school food
authority applicant--
``(I) to improve the nutritional
value of school meals;

[[Page 3224]]

``(II) to carry out innovative
programs that improve the health and
wellness of schoolchildren; and
``(III) to evaluate the outcome of
the pilot program; and
``(iii) any other criteria the Secretary
determines to be appropriate.
``(4) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $10,000,000 for
fiscal years 2011 through 2015.''.

Subtitle B--Child and Adult Care Food Program

SEC. 221. NUTRITION AND WELLNESS GOALS FOR MEALS SERVED THROUGH
THE CHILD AND ADULT CARE FOOD PROGRAM.

Section 17 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766) is amended--
(1) in subsection (a), by striking ``(a) Grant Authority''
and all that follows through the end of paragraph (1) and
inserting the following:

``(a) Program Purpose, Grant Authority and Institution
Eligibility.--
``(1) In general.--
``(A) Program purpose.--
``(i) Findings.--Congress finds that--
``(I) eating habits and other
wellness-related behavior habits are
established early in life; and
``(II) good nutrition and wellness
are important contributors to the
overall health of young children and
essential to cognitive development.
``(ii) Purpose.--The purpose of the program
authorized by this section is to provide aid to
child and adult care institutions and family or
group day care homes for the provision of
nutritious foods that contribute to the wellness,
healthy growth, and development of young children,
and the health and wellness of older adults and
chronically impaired disabled persons.
``(B) Grant authority.--The Secretary may carry out
a program to assist States through grants-in-aid and
other means to initiate and maintain nonprofit food
service programs for children in institutions providing
child care.'';
(2) by striking subsection (g) and inserting the following:

``(g) Nutritional Requirements for Meals and Snacks Served in
Institutions and Family or Group Day Care Homes.--
``(1) Definition of dietary guidelines.--In this subsection,
the term `Dietary Guidelines' means 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).
``(2) Nutritional requirements.--
``(A) In general.--Except as provided in
subparagraph (C), reimbursable meals and snacks served
by institutions, family or group day care homes, and
sponsored centers

[[Page 3225]]

participating in the program under this section shall
consist of a combination of foods that meet minimum
nutritional requirements prescribed by the Secretary on
the basis of tested nutritional research.
``(B) Conformity with the dietary guidelines and
authoritative science.--

``(i) <>
In general.--Not less frequently than once every
10 years, the Secretary shall review and, as
appropriate, update requirements for meals served
under the program under this section to ensure
that the meals--
``(I) are consistent with the goals
of the most recent Dietary Guidelines;
and
``(II) promote the health of the
population served by the program
authorized under this section, as
indicated by the most recent relevant
nutrition science and appropriate
authoritative scientific agency and
organization recommendations.
``(ii) Cost review.--The review required under
clause (i) shall include a review of the cost to
child care centers and group or family day care
homes resulting from updated requirements for
meals and snacks served under the program under
this section.
``(iii) <>  Regulations.--Not
later than 18 months after the completion of the
review of the meal pattern under clause (i), the
Secretary shall promulgate proposed regulations to
update the meal patterns for meals and snacks
served under the program under this section.
``(C) Exceptions.--
``(i) Special dietary needs.--The minimum
nutritional requirements prescribed under
subparagraph (A) shall not prohibit institutions,
family or group day care homes, and sponsored
centers from substituting foods to accommodate the
medical or other special dietary needs of
individual participants.
``(ii) <>  Exempt
institutions.--The Secretary may elect to waive
all or part of the requirements of this subsection
for emergency shelters participating in the
program under this section.
``(3) Meal service.--Institutions, family or group day care
homes, and sponsored centers shall ensure that reimbursable meal
service contributes to the development and socialization of
enrolled children by providing that food is not used as a
punishment or reward.
``(4) Fluid milk.--
``(A) In general.--If an institution, family or
group day care home, or sponsored center provides fluid
milk as part of a reimbursable meal or supplement, the
institution, family or group day care home, or sponsored
center shall provide the milk in accordance with the
most recent version of the Dietary Guidelines.
``(B) Milk substitutes.--In the case of children who
cannot consume fluid milk due to medical or other
special dietary needs other than a disability, an
institution, family or group day care home, or sponsored
center may substitute

[[Page 3226]]

for the fluid milk required in meals served, a nondairy
beverage that--
``(i) is nutritionally equivalent to fluid
milk; and
``(ii) meets nutritional standards established
by the Secretary, including, among other
requirements established by the Secretary,
fortification of calcium, protein, vitamin A, and
vitamin D to levels found in cow's milk.
``(C) Approval.--
``(i) In general.--A substitution authorized
under subparagraph (B) may be made--
``(I) at the discretion of and on
approval by the participating day care
institution; and
``(II) if the substitution is
requested by written statement of a
medical authority, or by the parent or
legal guardian of the child, that
identifies the medical or other special
dietary need that restricts the diet of
the child.
``(ii) Exception.--An institution, family or
group day care home, or sponsored center that
elects to make a substitution authorized under
this paragraph shall not be required to provide
beverages other than beverages the State has
identified as acceptable substitutes.
``(D) Excess expenses borne by institution.--A
participating institution, family or group day care
home, or sponsored center shall be responsible for any
expenses that--
``(i) are incurred by the institution, family
or group day care home, or sponsored center to
provide substitutions under this paragraph; and
``(ii) are in excess of expenses covered under
reimbursements under this Act.
``(5) Nondiscrimination policy.--No physical segregation or
other discrimination against any person shall be made because of
the inability of the person to pay, nor shall there be any overt
identification of any such person by special tokens or tickets,
different meals or meal service, announced or published lists of
names, or other means.
``(6) Use of abundant and donated foods.--To the maximum
extent practicable, each institution shall use in its food
service foods that are--
``(A) designated from time to time by the Secretary
as being in abundance, either nationally or in the food
service area; or
``(B) donated by the Secretary.'';
(3) by adding at the end the following:

``(u) Promoting Health and Wellness in Child Care.--
``(1) Physical activity and electronic media use.--The
Secretary shall encourage participating child care centers and
family or group day care homes--
``(A) to provide to all children under the
supervision of the participating child care centers and
family or group day care homes daily opportunities for
structured and unstructured age-appropriate physical
activity; and
``(B) to limit among children under the supervision
of the participating child care centers and family or
group

[[Page 3227]]

day care homes the use of electronic media to an
appropriate level.
``(2) Water consumption.--Participating child care centers
and family or group day care homes shall make available to
children, as nutritionally appropriate, potable water as an
acceptable fluid for consumption throughout the day, including
at meal times.
``(3) Technical assistance and guidance.--
``(A) In general.--The Secretary shall provide
technical assistance to institutions participating in
the program under this section to assist participating
child care centers and family or group day care homes in
complying with the nutritional requirements and wellness
recommendations prescribed by the Secretary in
accordance with this subsection and subsection (g).
``(B) <>  Guidance.--Not later than
January 1, 2012, the Secretary shall issue guidance to
States and institutions to encourage participating child
care centers and family or group day care homes serving
meals and snacks under this section to--
``(i) include foods that are recommended for
increased serving consumption in amounts
recommended by 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), including fresh,
canned, dried, or frozen fruits and vegetables,
whole grain products, lean meat products, and low-
fat and non-fat dairy products; and
``(ii) reduce sedentary activities and provide
opportunities for regular physical activity in
quantities recommended by the most recent Dietary
Guidelines for Americans described in clause (i).
``(C) Nutrition.--Technical assistance relating to
the nutritional requirements of this subsection and
subsection (g) shall include--
``(i) nutrition education, including education
that emphasizes the relationship between
nutrition, physical activity, and health;
``(ii) menu planning;
``(iii) interpretation of nutrition labels;
and
``(iv) food preparation and purchasing
guidance to produce meals and snacks that are--
``(I) consistent with the goals of
the most recent Dietary Guidelines; and
``(II) promote the health of the
population served by the program under
this section, as recommended by
authoritative scientific organizations.
``(D) Physical activity.--Technical assistance
relating to the physical activity requirements of this
subsection shall include--
``(i) education on the importance of regular
physical activity to overall health and well
being; and
``(ii) sharing of best practices for physical
activity plans in child care centers and homes as
recommended by authoritative scientific
organizations.

[[Page 3228]]

``(E) Electronic media use.--Technical assistance
relating to the electronic media use requirements of
this subsection shall include--
``(i) education on the benefits of limiting
exposure to electronic media by children; and
``(ii) sharing of best practices for the
development of daily activity plans that limit use
of electronic media.
``(F) <>  Minimum assistance.--At a
minimum, the technical assistance required under this
paragraph shall include a handbook, developed by the
Secretary in coordination with the Secretary for Health
and Human Services, that includes recommendations,
guidelines, and best practices for participating
institutions and family or group day care homes that are
consistent with the nutrition, physical activity, and
wellness requirements and recommendations of this
subsection.
``(G) Additional assistance.--In addition to the
requirements of this paragraph, the Secretary shall
develop and provide such appropriate training and
education materials, guidance, and technical assistance
as the Secretary considers to be necessary to comply
with the nutritional and wellness requirements of this
subsection and subsection (g).
``(H) Funding.--
``(i) <>  In general.--
On October 1, 2010, out of any funds in the
Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary to
provide technical assistance under this subsection
$10,000,000, 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
transferred under clause (i), without further
appropriation.''.
SEC. 222. <>  INTERAGENCY COORDINATION TO
PROMOTE HEALTH AND WELLNESS IN CHILD CARE
LICENSING.

The Secretary shall coordinate with the Secretary of Health and
Human Services to encourage State licensing agencies to include
nutrition and wellness standards within State licensing standards that
ensure, to the maximum extent practicable, that licensed child care
centers and family or group day care homes--
(1) provide to all children under the supervision of the
child care centers and family or group day care homes daily
opportunities for age-appropriate physical activity;
(2) limit among children under the supervision of the child
care centers and family or group day care homes the use of
electronic media and the quantity of time spent in sedentary
activity to an appropriate level;
(3) serve meals and snacks that are consistent with the
requirements of 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); and
(4) promote such other nutrition and wellness goals as the
Secretaries determine to be necessary.

[[Page 3229]]

SEC. 223. STUDY ON NUTRITION AND WELLNESS QUALITY OF CHILD CARE
SETTINGS.

(a) <>  In General.--Not less than 3
years after the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Health and Human Services, shall
enter into a contract for the conduct of a nationally representative
study of child care centers and family or group day care homes that
includes an assessment of--
(1) the nutritional quality of all foods provided to
children in child care settings as compared to the
recommendations in 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) the quantity and type of opportunities for physical
activity provided to children in child care settings;
(3) the quantity of time spent by children in child care
settings in sedentary activities;
(4) an assessment of barriers and facilitators to--
(A) providing foods to children in child care
settings that meet the recommendations of 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) providing the appropriate quantity and type of
opportunities of physical activity for children in child
care settings; and
(C) participation by child care centers and family
or group day care homes 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); and
(5) such other assessment measures as the Secretary may
determine to be necessary.

(b) Report to Congress.--The Secretary shall submit to Congress a
report that includes a detailed description of the results of the study
conducted under subsection (a).
(c) Funding.--
(1) <>  In general.--On October 1,
2010, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary to carry out this section $5,000,000, to remain
available until expended.
(2) Receipt and acceptance.--The Secretary shall be entitled
to receive, shall accept, and shall use to carry out this
section the funds transferred under paragraph (1), without
further appropriation.

Subtitle C--Special Supplemental Nutrition Program for Women, Infants,
and Children

SEC. 231. SUPPORT FOR BREASTFEEDING IN THE WIC PROGRAM.

Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is
amended--
(1) in subsection (a), in the second sentence, by striking
``supplemental foods and nutrition education through any
eligible local agency'' and inserting ``supplemental foods and

[[Page 3230]]

nutrition education, including breastfeeding promotion and
support, through any eligible local agency'';
(2) in subsection (b)(4), by inserting ``breastfeeding
support and promotion,'' after ``nutrition education,'';
(3) in subsection (c)(1), in the first sentence, by striking
``supplemental foods and nutrition education to'' and inserting
``supplemental foods, nutrition education, and breastfeeding
support and promotion to'';
(4) in subsection (e)(2), in the second sentence, by
inserting ``, including breastfeeding support and education,''
after ``nutrition education'';
(5) in subsection (f)(6)(B), in the first sentence, by
inserting ``and breastfeeding'' after ``nutrition education'';
(6) in subsection (h)--
(A) in paragraph (4)--
(i) by striking ``(4) The Secretary'' and all
that follows through ``(A) in consultation'' and
inserting the following:
``(4) Requirements.--
``(A) In general.--The Secretary shall--
``(i) in consultation'';
(ii) by redesignating subparagraphs (B)
through (F) as clauses (ii) through (vi),
respectively, and indenting appropriately;
(iii) in clause (v) (as so redesignated), by
striking ``and'' at the end;
(iv) in clause (vi) (as so redesignated), by
striking ``2010 initiative.'' and inserting
``initiative; and''; and
(v) by adding at the end the following:
``(vii) annually compile and publish
breastfeeding performance measurements based on
program participant data on the number of
partially and fully breast-fed infants, including
breastfeeding performance measurements for--
``(I) each State agency; and
``(II) each local agency;
``(viii) in accordance with subparagraph (B),
implement a program to recognize exemplary
breastfeeding support practices at local agencies
or clinics participating in the special
supplemental nutrition program established under
this section; and
``(ix) in accordance with subparagraph (C),
implement a program to provide performance bonuses
to State agencies.
``(B) Exemplary breastfeeding support practices.--
``(i) In general.--In evaluating exemplary
practices under subparagraph (A)(viii), the
Secretary shall consider--
``(I) performance measurements of
breastfeeding;
``(II) the effectiveness of a peer
counselor program;
``(III) the extent to which the
agency or clinic has partnered with
other entities to build a supportive
breastfeeding environment for women
participating in the program; and

[[Page 3231]]

``(IV) such other criteria as the
Secretary considers appropriate after
consultation with State and local
program agencies.
``(ii) Authorization of appropriations.--There
is authorized to be appropriated to carry out the
activities described in clause (viii) of
subparagraph (A) such sums as are necessary.
``(C) <>  Performance bonuses.--
``(i) In general.--Following the publication
of breastfeeding performance measurements under
subparagraph (A)(vii), the Secretary shall provide
performance bonus payments to not more than 15
State agencies that demonstrate, as compared to
other State agencies participating in the
program--
``(I) the highest proportion of
breast-fed infants; or
``(II) the greatest improvement in
proportion of breast-fed infants.
``(ii) Consideration.--In providing
performance bonus payments to State agencies under
this subparagraph, the Secretary shall consider
the proportion of fully breast-fed infants in the
States.
``(iii) Use of funds.--A State agency that
receives a performance bonus under clause (i)--
``(I) shall treat the funds as
program income; and
``(II) may transfer the funds to
local agencies for use in carrying out
the program.
``(iv) <>  Implementation.--
The Secretary shall provide the first performance
bonuses not later than 1 year after the date of
enactment of this clause and may subsequently
revise the criteria for awarding performance
bonuses; and''; and
(B) 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 2010
through 2015, the Secretary shall use for the purposes
specified in subparagraph (B) $139,000,000 (as adjusted
annually for inflation by the same factor used to
determine the national average per participant grant for
nutrition services and administration for the fiscal
year under paragraph (1)(B)).
``(B) Purposes.--Subject to subparagraph (C), of the
amount made available under subparagraph (A) for a
fiscal year--
``(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;

[[Page 3232]]

``(ii) $35,000,000 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, of which up to
$5,000,000 may be used for Federal administrative
costs; and
``(iii) $90,000,000 shall be used for special
nutrition education (such as breastfeeding peer
counselors and other related activities), of which
not more than $10,000,000 of any funding provided
in excess of $50,000,000 shall be used to make
performance bonus payments under paragraph (4)(C).
``(C) Adjustment.--Each of the amounts referred to
in clauses (i), (ii), and (iii) of subparagraph (B)
shall be adjusted annually for inflation by the same
factor used to determine the national average per
participant grant for nutrition services and
administration for the fiscal year under paragraph
(1)(B).
``(D) Proportional distribution.--The Secretary
shall distribute funds made available under subparagraph
(A) in accordance with the proportional distribution
described in subparagraphs (B) and (C).''; and
(7) in subsection (j), by striking ``supplemental foods and
nutrition education'' each place it appears in paragraphs (1)
and (2) and inserting ``supplemental foods, nutrition education,
and breastfeeding support and promotion''.
SEC. 232. REVIEW OF AVAILABLE SUPPLEMENTAL FOODS.

Section 17(f)(11)(D) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(f)(11)(D)) is amended in the matter preceding clause (i) by
inserting ``but not less than every 10 years,'' after ``scientific
knowledge,''.

Subtitle D--Miscellaneous

SEC. 241. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT
PROGRAM.

(a) In General.--The Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
``SEC. 28. <>  NUTRITION EDUCATION AND OBESITY
PREVENTION GRANT PROGRAM.

``(a) Definition of Eligible Individual.--In this section, the term
`eligible individual' means an individual who is eligible to receive
benefits under a nutrition education and obesity prevention program
under this section as a result of being--
``(1) an individual eligible for benefits under--
``(A) this Act;
``(B) sections 9(b)(1)(A) and 17(c)(4) of the
Richard B Russell National School Lunch Act (42 U.S.C.
1758(b)(1)(A), 1766(c)(4)); or
``(C) section 4(e)(1)(A) of the Child Nutrition Act
of 1966 (42 U.S.C. 1773(e)(1)(A));
``(2) an individual who resides in a community with a
significant low-income population, as determined by the
Secretary; or

[[Page 3233]]

``(3) such other low-income individual as is determined to
be eligible by the Secretary.

``(b) Programs.--Consistent with the terms and conditions of grants
awarded under this section, State agencies may implement a nutrition
education and obesity prevention program for eligible individuals that
promotes healthy food choices consistent with 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).
``(c) Delivery of Nutrition Education and Obesity Prevention
Services.--
``(1) In general.--State agencies may deliver nutrition
education and obesity prevention services under a program
described in subsection (b)--
``(A) directly to eligible individuals; or
``(B) through agreements with other State or local
agencies or community organizations.
``(2) Nutrition education state plans.--
``(A) In general.--A State agency that elects to
provide nutrition education and obesity prevention
services under this subsection shall submit to the
Secretary for approval a nutrition education State plan.
``(B) Requirements.--Except as provided in
subparagraph (C), a nutrition education State plan
shall--
``(i) identify the uses of the funding for
local projects;
``(ii) ensure that the interventions are
appropriate for eligible individuals who are
members of low-income populations by recognizing
the constrained resources, and the potential
eligibility for Federal food assistance programs,
of members of those populations; and
``(iii) conform to standards established by
the Secretary through regulations, guidance, or
grant award documents.
``(C) Transition period.--During each of fiscal
years 2011 and 2012, a nutrition education State plan
under this section shall be consistent with the
requirements of section 11(f) (as that section, other
than paragraph (3)(C), existed on the day before the
date of enactment of this section).
``(3) Use of funds.--
``(A) In general.--A State agency may use funds
provided under this section for any evidence-based
allowable use of funds identified by the Administrator
of the Food and Nutrition Service of the Department of
Agriculture in consultation with the Director of the
Centers for Disease Control and Prevention of the
Department of Health and Human Services, including--
``(i) individual and group-based nutrition
education, health promotion, and intervention
strategies;
``(ii) comprehensive, multilevel interventions
at multiple complementary organizational and
institutional levels; and
``(iii) community and public health approaches
to improve nutrition.
``(B) Consultation.--In identifying allowable uses
of funds under subparagraph (A) and in seeking to
strengthen

[[Page 3234]]

delivery, oversight, and evaluation of nutrition
education, the Administrator of the Food and Nutrition
Service shall consult with the Director of the Centers
for Disease Control and Prevention and outside
stakeholders and experts, including--
``(i) representatives of the academic and
research communities;
``(ii) nutrition education practitioners;
``(iii) representatives of State and local
governments; and
``(iv) community organizations that serve low-
income populations.
``(4) Notification.--To the maximum extent practicable,
State agencies shall notify applicants, participants, and
eligible individuals under this Act of the availability of
nutrition education and obesity prevention services under this
section in local communities.
``(5) Coordination.--Subject to the approval of the
Secretary, projects carried out with funds received under this
section may be coordinated with other health promotion or
nutrition improvement strategies, whether public or privately
funded, if the projects carried out with funds received under
this section remain under the administrative control of the
State agency.

``(d) Funding.--
``(1) In general.--Of funds made available each fiscal year
under section 18(a)(1), the Secretary shall reserve for
allocation to State agencies to carry out the nutrition
education and obesity prevention grant program under this
section, to remain available for obligation for a period of 2
fiscal years--
``(A) for fiscal year 2011, $375,000,000; and
``(B) for fiscal year 2012 and each subsequent
fiscal year, the applicable amount during the preceding
fiscal year, as adjusted to reflect any increases for
the 12-month period ending the preceding June 30 in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of
Labor.
``(2) Allocation.--
``(A) Initial allocation.--Of the funds set aside
under paragraph (1), as determined by the Secretary--
``(i) for each of fiscal years 2011 through
2013, 100 percent shall be allocated to State
agencies in direct proportion to the amount of
funding that the State received for carrying out
section 11(f) (as that section existed on the day
before the date of enactment of this section)
during fiscal year 2009, as reported to the
Secretary as of February 2010; and
``(ii) subject to a reallocation under
subparagraph (B)--
``(I) for fiscal year 2014--
``(aa) 90 percent shall be
allocated to State agencies in
accordance with clause (i); and
``(bb) 10 percent shall be
allocated to State agencies
based on the respective share of
each

[[Page 3235]]

State of the number of
individuals participating in the
supplemental nutrition
assistance program during the
12-month period ending the
preceding January 31;
``(II) for fiscal year 2015--
``(aa) 80 percent shall be
allocated to State agencies in
accordance with clause (i); and
``(bb) 20 percent shall be
allocated in accordance with
subclause (I)(bb);
``(III) for fiscal year 2016--
``(aa) 70 percent shall be
allocated to State agencies in
accordance with clause (i); and
``(bb) 30 percent shall be
allocated in accordance with
subclause (I)(bb);
``(IV) for fiscal year 2017--
``(aa) 60 percent shall be
allocated to State agencies in
accordance with clause (i); and
``(bb) 40 percent shall be
allocated in accordance with
subclause (I)(bb); and
``(V) for fiscal year 2018 and each
fiscal year thereafter--
``(aa) 50 percent shall be
allocated to State agencies in
accordance with clause (i); and
``(bb) 50 percent shall be
allocated in accordance with
subclause (I)(bb).
``(B) Reallocation.--
``(i) In general.--If the Secretary determines
that a State agency will not expend all of the
funds allocated to the State agency for a fiscal
year under paragraph (1) or in the case of a State
agency that elects not to receive the entire
amount of funds allocated to the State agency for
a fiscal year, the Secretary shall reallocate the
unexpended funds to other States during the fiscal
year or the subsequent fiscal year (as determined
by the Secretary) that have approved State plans
under which the State agencies may expend the
reallocated funds.
``(ii) Effect of additional funds.--
``(I) Funds received.--Any
reallocated funds received by a State
agency under clause (i) for a fiscal
year shall be considered to be part of
the fiscal year 2009 base allocation of
funds to the State agency for that
fiscal year for purposes of determining
allocation under subparagraph (A) for
the subsequent fiscal year.
``(II) Funds surrendered.--Any funds
surrendered by a State agency under
clause (i) shall not be considered to be
part of the fiscal year 2009 base
allocation of funds to a State agency
for that fiscal year for purposes of
determining allocation under
subparagraph (A) for the subsequent
fiscal year.
``(3) Limitation on federal financial participation.--
``(A) In general.--Grants awarded under this section
shall be the only source of Federal financial
participation under this Act in nutrition education and
obesity prevention.

[[Page 3236]]

``(B) Exclusion.--Any costs of nutrition education
and obesity prevention in excess of the grants
authorized under this section shall not be eligible for
reimbursement under section 16(a).

``(e) <>
Implementation.--Not later than January 1, 2012, the Secretary shall
publish in the Federal Register a description of the requirements for
the receipt of a grant under this section.''.

(b) Conforming Amendments.--
(1) Section 4(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(a)) is amended in the first sentence by striking
``and, through an approved State plan, nutrition education''.
(2) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended by striking subsection (f).
SEC. 242. PROCUREMENT AND PROCESSING OF FOOD SERVICE PRODUCTS AND
COMMODITIES.

Section 9(a)(4) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(a)(4)) is amended by adding at the end the following:
``(C) Procurement and processing of food service
products and commodities.--The Secretary shall--
``(i) identify, develop, and disseminate to
State departments of agriculture and education,
school food authorities, local educational
agencies, and local processing entities, model
product specifications and practices for foods
offered in school nutrition programs under this
Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) to ensure that the foods reflect 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);
``(ii) <>  not later than 1
year after the date of enactment of this
subparagraph--
``(I) carry out a study to analyze
the quantity and quality of nutritional
information available to school food
authorities about food service products
and commodities; and
``(II) <>  submit to
Congress a report on the results of the
study that contains such legislative
recommendations as the Secretary
considers necessary to ensure that
school food authorities have access to
the nutritional information needed for
menu planning and compliance
assessments; and
``(iii) to the maximum extent practicable, in
purchasing and processing commodities for use in
school nutrition programs under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.), purchase the widest variety of healthful
foods that reflect the most recent Dietary
Guidelines for Americans.''.
SEC. 243. ACCESS TO LOCAL FOODS: FARM TO SCHOOL PROGRAM.

Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended--
(1) by redesignating subsections (h) and (i) and subsection
(j) (as added by section 210) as subsections (i) through (k),
respectively;

[[Page 3237]]

(2) in subsection (g), by striking ``(g) Access to Local
Foods and School Gardens.--'' and all that follows through ``(3)
Pilot program for high-poverty schools.--'' and inserting the
following:

``(g) Access to Local Foods: Farm to School Program.--
``(1) Definition of eligible school.--In this subsection,
the term `eligible school' means a school or institution that
participates in a program under this Act or the school breakfast
program established under section 4 of the Child Nutrition Act
of 1966 (42 U.S.C. 1773).
``(2) Program.--The Secretary shall carry out a program to
assist eligible schools, State and local agencies, Indian tribal
organizations, agricultural producers or groups of agricultural
producers, and nonprofit entities through grants and technical
assistance to implement farm to school programs that improve
access to local foods in eligible schools.
``(3) Grants.--
``(A) In general.--The Secretary shall award
competitive grants under this subsection to be used
for--
``(i) training;
``(ii) supporting operations;
``(iii) planning;
``(iv) purchasing equipment;
``(v) developing school gardens;
``(vi) developing partnerships; and
``(vii) implementing farm to school programs.
``(B) Regional balance.--In making awards under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure--
``(i) geographical diversity; and
``(ii) equitable treatment of urban, rural,
and tribal communities.
``(C) Maximum amount.--The total amount provided to
a grant recipient under this subsection shall not exceed
$100,000.
``(4) Federal share.--
``(A) In general.--The Federal share of costs for a
project funded through a grant awarded under this
subsection shall not exceed 75 percent of the total cost
of the project.
``(B) Federal matching.--As a condition of receiving
a grant under this subsection, a grant recipient shall
provide matching support in the form of cash or in-kind
contributions, including facilities, equipment, or
services provided by State and local governments,
nonprofit organizations, and private sources.
``(5) Criteria for selection.--To the maximum extent
practicable, in providing assistance under this subsection, the
Secretary shall give the highest priority to funding projects
that, as determined by the Secretary--
``(A) make local food products available on the menu
of the eligible school;
``(B) serve a high proportion of children who are
eligible for free or reduced price lunches;

[[Page 3238]]

``(C) incorporate experiential nutrition education
activities in curriculum planning that encourage the
participation of school children in farm and garden-
based agricultural education activities;
``(D) demonstrate collaboration between eligible
schools, nongovernmental and community-based
organizations, agricultural producer groups, and other
community partners;
``(E) include adequate and participatory evaluation
plans;
``(F) demonstrate the potential for long-term
program sustainability; and
``(G) meet any other criteria that the Secretary
determines appropriate.
``(6) Evaluation.--As a condition of receiving a grant under
this subsection, each grant recipient shall agree to cooperate
in an evaluation by the Secretary of the program carried out
using grant funds.
``(7) Technical assistance.--The Secretary shall provide
technical assistance and information to assist eligible schools,
State and local agencies, Indian tribal organizations, and
nonprofit entities--
``(A) to facilitate the coordination and sharing of
information and resources in the Department that may be
applicable to the farm to school program;
``(B) to collect and share information on best
practices; and
``(C) to disseminate research and data on existing
farm to school programs and the potential for programs
in underserved areas.
``(8) Funding.--
``(A) <>  In general.--On
October 1, 2012, and each October 1 thereafter, out of
any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the
Secretary to carry out this subsection $5,000,000, to
remain available until expended.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this subsection the funds transferred under
subparagraph (A), without further appropriation.
``(9) Authorization of appropriations.--In addition to the
amounts made available under paragraph (8), there are authorized
to be appropriated to carry out this subsection such sums as are
necessary for each of fiscal years 2011 through 2015.

``(h) Pilot Program for High-Poverty Schools.--
``(1) In general.--''; and
(3) in subsection (h) (as redesignated by paragraph (2))--
(A) in subparagraph (F) of paragraph (1) (as so
redesignated), by striking ``in accordance with
paragraph (1)(H)'' and inserting ``carried out by the
Secretary'';
(B) by redesignating paragraph (4) as paragraph (2);
and
(C) in paragraph (2) (as so redesignated), by
striking ``2009'' and inserting ``2015''.

[[Page 3239]]

SEC. 244. <>  RESEARCH ON STRATEGIES TO PROMOTE
THE SELECTION AND CONSUMPTION OF HEALTHY
FOODS.

(a) In General.--The Secretary, in consultation with the Secretary
of Health and Human Services, shall establish a research, demonstration,
and technical assistance program to promote healthy eating and reduce
the prevalence of obesity, among all population groups but especially
among children, by applying the principles and insights of behavioral
economics research in schools, child care programs, and other settings.
(b) Priorities.--The Secretary shall--
(1) identify and assess the impacts of specific
presentation, placement, and other strategies for structuring
choices on selection and consumption of healthful foods in a
variety of settings, consistent with the most recent version of
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);
(2) demonstrate and rigorously evaluate behavioral
economics-related interventions that hold promise to improve
diets and promote health, including through demonstration
projects that may include evaluation of the use of portion size,
labeling, convenience, and other strategies to encourage healthy
choices; and
(3) encourage adoption of the most effective strategies
through outreach and technical assistance.

(c) Authority.--In carrying out the program under subsection (a),
the Secretary may--
(1) enter into competitively awarded contracts or
cooperative agreements; or
(2) provide grants to States or public or private agencies
or organizations, as determined by the Secretary.

(d) Application.--To be eligible to enter into a contract or
cooperative agreement or receive a grant under this section, a State or
public or private agency or organization shall submit to the Secretary
an application at such time, in such manner, and containing such
information as the Secretary may require.
(e) Coordination.--The solicitation and evaluation of contracts,
cooperative agreements, and grant proposals considered under this
section shall be coordinated with the Food and Nutrition Service as
appropriate to ensure that funded projects are consistent with the
operations of Federally supported nutrition assistance programs and
related laws (including regulations).
(f) Annual Reports.--Not later than 90 days after the end of each
fiscal year, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that includes a
description of--
(1) the policies, priorities, and operations of the program
carried out by the Secretary under this section during the
fiscal year;
(2) the results of any evaluations completed during the
fiscal year; and
(3) the efforts undertaken to disseminate successful
practices through outreach and technical assistance.

(g) Authorization of Appropriations.--

[[Page 3240]]

(1) In general.--There are authorized to be appropriated to
carry out this section such sums as are necessary for each of
fiscal years 2011 through 2015.
(2) Use of funds.--The Secretary may use up to 5 percent of
the funds made available under paragraph (1) for Federal
administrative expenses incurred in carrying out this section.

TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION
PROGRAMS

Subtitle A--National School Lunch Program

SEC. 301. PRIVACY PROTECTION.

Section 9(d)(1) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(d)(1)) is amended--
(1) in the first sentence, by inserting ``the last 4 digits
of'' before ``the social security account number''; and
(2) by striking the second sentence.
SEC. 302. APPLICABILITY OF FOOD SAFETY PROGRAM ON ENTIRE SCHOOL
CAMPUS.

Section 9(h)(5) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(h)(5)) is amended--
(1) by striking ``Each school food'' and inserting the
following:
``(A) In general.--Each school food''; and
(2) by adding at the end the following:
``(B) Applicability.--Subparagraph (A) shall apply
to any facility or part of a facility in which food is
stored, prepared, or served for the purposes of the
school nutrition programs under this Act or section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773).''.
SEC. 303. FINES FOR VIOLATING PROGRAM REQUIREMENTS.

Section 22 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769c) is amended by adding at the end the following:
``(e) Fines for Violating Program Requirements.--
``(1) School food authorities and schools.--
``(A) In general.--The Secretary shall establish
criteria by which the Secretary or a State agency may
impose a fine against any school food authority or
school administering a program authorized under this Act
or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) if the Secretary or the State agency determines
that the school food authority or school has--
``(i) failed to correct severe mismanagement
of the program;
``(ii) disregarded a program requirement of
which the school food authority or school had been
informed; or
``(iii) failed to correct repeated violations
of program requirements.
``(B) Limits.--

[[Page 3241]]

``(i) In general.--In calculating the fine for
a school food authority or school, the Secretary
shall base the amount of the fine on the
reimbursement earned by school food authority or
school for the program in which the violation
occurred.
``(ii) Amount.--The amount under clause (i)
shall not exceed--
``(I) 1 percent of the amount of
meal reimbursements earned for the
fiscal year for the first finding of 1
or more program violations under
subparagraph (A);
``(II) 5 percent of the amount of
meal reimbursements earned for the
fiscal year for the second finding of 1
or more program violations under
subparagraph (A); and
``(III) 10 percent of the amount of
meal reimbursements earned for the
fiscal year for the third or subsequent
finding of 1 or more program violations
under subparagraph (A).
``(2) State agencies.--
``(A) In general.--The Secretary shall establish
criteria by which the Secretary may impose a fine
against any State agency administering a program
authorized under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) if the Secretary
determines that the State agency has--
``(i) failed to correct severe mismanagement
of the program;
``(ii) disregarded a program requirement of
which the State had been informed; or
``(iii) failed to correct repeated violations
of program requirements.
``(B) Limits.--In the case of a State agency, the
amount of a fine under subparagraph (A) shall not
exceed--
``(i) 1 percent of funds made available under
section 7(a) of the Child Nutrition Act of 1966
(42 U.S.C. 1776(a)) for State administrative
expenses during a fiscal year for the first
finding of 1 or more program violations under
subparagraph (A);
``(ii) 5 percent of funds made available under
section 7(a) of the Child Nutrition Act of 1966
(42 U.S.C. 1776(a)) for State administrative
expenses during a fiscal year for the second
finding of 1 or more program violations under
subparagraph (A); and
``(iii) 10 percent of funds made available
under section 7(a) of the Child Nutrition Act of
1966 (42 U.S.C. 1776(a)) for State administrative
expenses during a fiscal year for the third or
subsequent finding of 1 or more program violations
under subparagraph (A).
``(3) Source of funding.--Funds to pay a fine imposed under
paragraph (1) or (2) shall be derived from non-Federal
sources.''.

[[Page 3242]]

SEC. 304. INDEPENDENT REVIEW OF APPLICATIONS.

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:
``(6) Eligibility determination review for selected local
educational agencies.--
``(A) In general.--A local educational agency that
has demonstrated a high level of, or a high risk for,
administrative error associated with certification,
verification, and other administrative processes, as
determined by the Secretary, shall ensure that the
initial eligibility determination for each application
is reviewed for accuracy prior to notifying a household
of the eligibility or ineligibility of the household for
free or reduced price meals.
``(B) Timeliness.--The review of initial eligibility
determinations--
``(i) shall be completed in a timely manner;
and
``(ii) shall not result in the delay of an
eligibility determination for more than 10
operating days after the date on which the
application is submitted.
``(C) <>  Acceptable types of
review.--Subject to standards established by the
Secretary, the system used to review eligibility
determinations for accuracy shall be conducted by an
individual or entity that did not make the initial
eligibility determination.
``(D) Notification of household.--Once the review of
an eligibility determination has been completed under
this paragraph, the household shall be notified
immediately of the determination of eligibility or
ineligibility for free or reduced price meals.
``(E) Reporting.--
``(i) <>  Local educational
agencies.--In accordance with procedures
established by the Secretary, each local
educational agency required to review initial
eligibility determinations shall submit to the
relevant State agency a report describing the
results of the reviews, including--
``(I) the number and percentage of
reviewed applications for which the
eligibility determination was changed
and the type of change made; and
``(II) such other information as the
Secretary determines to be necessary.
``(ii) <>  State
agencies.--In accordance with procedures
established by the Secretary, each State agency
shall submit to the Secretary a report describing
the results of the reviews of initial eligibility
determinations, including--
``(I) the number and percentage of
reviewed applications for which the
eligibility determination was changed
and the type of change made; and
``(II) such other information as the
Secretary determines to be necessary.
``(iii) <>
Transparency.--The Secretary shall publish
annually the results of the reviews of initial
eligibility determinations by State, number,
percentage, and type of error.''.

[[Page 3243]]

SEC. 305. PROGRAM EVALUATION.

Section 28 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769i) is amended by adding at the end the following:
``(c) Cooperation With Program Research and Evaluation.--States,
State educational agencies, local educational agencies, schools,
institutions, facilities, and contractors participating in programs
authorized under this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) shall cooperate with officials and contractors acting on
behalf of the Secretary, in the conduct of evaluations and studies under
those Acts.''.
SEC. 306. PROFESSIONAL STANDARDS FOR SCHOOL FOOD SERVICE.

Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is
amended by striking subsection (g) and inserting the following:
``(g) Professional Standards for School Food Service.--
``(1) Criteria for school food service and state agency
directors.--
``(A) School food service directors.--
``(i) In general.--The Secretary shall
establish a program of required education,
training, and certification for all school food
service directors responsible for the management
of a school food authority.
``(ii) Requirements.--The program shall
include--
``(I) minimum educational
requirements necessary to successfully
manage 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;
``(II) minimum program training and
certification criteria for school food
service directors; and
``(III) minimum periodic training
criteria to maintain school food service
director certification.
``(B) School nutrition state agency directors.--The
Secretary shall establish criteria and standards for
States to use in the selection of State agency directors
with responsibility for 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.
``(C) Training program partnership.--The Secretary
may provide financial and other assistance to 1 or more
professional food service management organizations--
``(i) to establish and manage the program
under this paragraph; and
``(ii) to develop voluntary training and
certification programs for other school food
service workers.
``(D) Required date of compliance.--
``(i) School food service directors.--The
Secretary shall establish a date by which all
school food service directors whose local
educational agencies are participating in 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 shall be
required to comply with the education, training,
and

[[Page 3244]]

certification criteria established in accordance
with subparagraph (A).
``(ii) School nutrition state agency
directors.--The Secretary shall establish a date
by which all State agencies shall be required to
comply with criteria and standards established in
accordance with subparagraph (B) for the selection
of State agency directors with responsibility for
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.
``(2) Training and certification of food service
personnel.--
``(A) Training for individuals conducting or
overseeing administrative procedures.--
``(i) <>  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
personnel and other appropriate personnel.
``(ii) Federal role.--The Secretary shall--
``(I) provide training and technical
assistance described in clause (i) to
the State; or
``(II) at the option of the
Secretary, directly provide training and
technical assistance described in clause
(i).
``(iii) <>  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 clause (i)
receives training at least annually, unless
determined otherwise by the Secretary.
``(B) Training and certification of all local food
service personnel.--
``(i) In general.--The Secretary shall provide
training designed to improve--
``(I) the accuracy of approvals for
free and reduced price meals; and
``(II) the identification of
reimbursable meals at the point of
service.
``(ii) Certification of local personnel.--In
accordance with criteria established by the
Secretary, local food service personnel shall
complete annual training and receive annual
certification--
``(I) to ensure program compliance
and integrity; and
``(II) to demonstrate competence in
the training provided under clause (i).
``(iii) Training modules.--In addition to the
topics described in clause (i), a training program
carried out under this subparagraph shall include
training modules on--
``(I) nutrition;

[[Page 3245]]

``(II) health and food safety
standards and methodologies; and
``(III) any other appropriate
topics, as determined by the Secretary.
``(3) Funding.--
``(A) <>  In general.--Out
of any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the
Secretary to carry out this subsection, to remain
available until expended--
``(i) on October 1, 2010, $5,000,000; and
``(ii) on each October 1 thereafter,
$1,000,000.
``(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.''.
SEC. 307. <>  INDIRECT COSTS.

(a) <>  Guidance on Indirect Costs Rules.--Not
later than 180 days after the date of enactment of this Act, the
Secretary shall issue guidance to school food authorities participating
in 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 the Child Nutrition Act of
1966 (42 U.S.C. 1773) covering program rules pertaining to indirect
costs, including allowable indirect costs that may be charged to the
nonprofit school food service account.

(b) Indirect Cost Study.--The Secretary shall--
(1) conduct a study to assess the extent to which school
food authorities participating in 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 the Child Nutrition Act of 1966 (42
U.S.C. 1773) pay indirect costs, including assessments of--
(A) the allocation of indirect costs to, and the
methodologies used to establish indirect cost rates for,
school food authorities participating in 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
the Child Nutrition Act of 1966 (42 U.S.C. 1773);
(B) the impact of indirect costs charged to the
nonprofit school food service account;
(C) the types and amounts of indirect costs charged
and recovered by school districts;
(D) whether the indirect costs charged or recovered
are consistent with requirements for the allocation of
indirect costs and school food service operations; and
(E) the types and amounts of indirect costs that
could be charged or recovered under requirements for the
allocation of indirect costs and school food service
operations but are not charged or recovered; and
(2) after completing the study required under paragraph (1),
issue additional guidance relating to the types of costs that
are reasonable and necessary to provide meals under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.)
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

[[Page 3246]]

(c) Regulations.--After conducting the study under subsection (b)(1)
and identifying costs under subsection (b)(2), the Secretary may
promulgate regulations to address--
(1) any identified deficiencies in the allocation of
indirect costs; and
(2) the authority of school food authorities to reimburse
only those costs identified by the Secretary as reasonable and
necessary under subsection (b)(2).

(d) Report.--Not later than October 1, 2013, the Secretary shall
submit to the Committee on Education and Labor of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the results of the study
under subsection (b).
(e) Funding.--
(1) <>  In general.--On October 1,
2010, out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary to carry out this section $2,000,000, to remain
available until expended.
(2) Receipt and acceptance.--The Secretary 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. 308. ENSURING SAFETY OF SCHOOL MEALS.

The Richard B. Russell National School Lunch Act is amended by after
section 28 (42 U.S.C. 1769i) the following:
``SEC. 29. <>  ENSURING SAFETY OF
SCHOOL MEALS.

``(a) Food and Nutrition Service.--Not later than 1 year after the
date of enactment of the Healthy, Hunger-Free Kids Act of 2010, the
Secretary, acting through the Administrator of the Food and Nutrition
Service, shall--
``(1) <>  in consultation with the
Administrator of the Agricultural Marketing Service and the
Administrator of the Farm Service Agency, develop guidelines to
determine the circumstances under which it is appropriate for
the Secretary to institute an administrative hold on suspect
foods purchased by the Secretary that are being used in school
meal programs under this Act and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.);
``(2) work with States to explore ways for the States to
increase the timeliness of notification of food recalls to
schools and school food authorities;
``(3) improve the timeliness and completeness of direct
communication between the Food and Nutrition Service and States
about holds and recalls, such as through the commodity alert
system of the Food and Nutrition Service; and
``(4) establish a timeframe to improve the commodity hold
and recall procedures of the Department of Agriculture to
address the role of processors and determine the involvement of
distributors with processed products that may contain recalled
ingredients, to facilitate the provision of more timely and
complete information to schools.

``(b) Food Safety and Inspection Service.--Not later than 1 year
after the date of enactment of the Healthy, Hunger-Free Kids Act of
2010, the Secretary, acting through the Administrator

[[Page 3247]]

of the Food Safety and Inspection Service, shall revise the procedures
of the Food Safety and Inspection Service to ensure that schools are
included in effectiveness checks.''.

Subtitle B--Summer Food Service Program

SEC. 321. SUMMER FOOD SERVICE PROGRAM PERMANENT OPERATING
AGREEMENTS.

Section 13(b) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1761(b)) is amended by striking paragraph (3) and inserting
the following:
``(3) Permanent operating agreements and budget for
administrative costs.--
``(A) Permanent operating agreements.--
``(i) <>  In general.--
Subject to clauses (ii) and (iii), to participate
in the program, a service institution that meets
the conditions of eligibility described in this
section and in regulations promulgated by the
Secretary, shall be required to enter into a
permanent agreement with the applicable State
agency.
``(ii) Amendments.--A permanent agreement
described in clause (i) may be amended as
necessary to ensure that the service institution
is in compliance with all requirements established
in this section or by the Secretary.
``(iii) Termination.--A permanent agreement
described in clause (i)--
``(I) may be terminated for
convenience by the service institution
and State agency that is a party to the
permanent agreement; and
``(II) shall be terminated--

``(aa) <>
for cause by the applicable
State agency in accordance with
subsection (q) and with
regulations promulgated by the
Secretary; or
``(bb) on termination of
participation of the service
institution in the program.
``(B) Budget for administrative costs.--
``(i) In general.--When applying for
participation in the program, and not less
frequently than annually thereafter, each service
institution shall submit a complete budget for
administrative costs related to the program, which
shall be subject to approval by the State.
``(ii) Amount.--Payment to service
institutions for administrative costs shall equal
the levels determined by the Secretary pursuant to
the study required in paragraph (4).''.
SEC. 322. SUMMER FOOD SERVICE PROGRAM DISQUALIFICATION.

Section 13 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1761) is amended--
(1) by redesignating subsection (q) as subsection (r); and
(2) by inserting after subsection (p) the following:

``(q) Termination and Disqualification of Participating
Organizations.--

[[Page 3248]]

``(1) <>  In general.--Each State agency
shall follow the procedures established by the Secretary for the
termination of participation of institutions under the program.
``(2) Fair hearing.--The procedures described in paragraph
(1) shall include provision for a fair hearing and prompt
determination for any service institution aggrieved by any
action of the State agency that affects--
``(A) the participation of the service institution
in the program; or
``(B) the claim of the service institution for
reimbursement under this section.
``(3) List of disqualified institutions and individuals.--
``(A) In general.--The Secretary shall maintain a
list of service institutions and individuals that have
been terminated or otherwise disqualified from
participation in the program under the procedures
established pursuant to paragraph (1).
``(B) Availability.--The Secretary shall make the
list available to States for use in approving or
renewing applications by service institutions for
participation in the program.''.

Subtitle C--Child and Adult Care Food Program

SEC. 331. RENEWAL OF APPLICATION MATERIALS AND PERMANENT OPERATING
AGREEMENTS.

(a) Permanent Operating Agreements.--Section 17(d)(1) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1766(d)(1)) is amended
by adding at the end the following:
``(E) Permanent operating agreements.--
``(i) In general.--Subject to clauses (ii) and
(iii), to participate in the child and adult care
food program, an institution that meets the
conditions of eligibility described in this
subsection shall be required to enter into a
permanent agreement with the applicable State
agency.
``(ii) Amendments.--A permanent agreement
described in clause (i) may be amended as
necessary to ensure that the institution is in
compliance with all requirements established in
this section or by the Secretary.
``(iii) Termination.--A permanent agreement
described in clause (i)--
``(I) may be terminated for
convenience by the institution or State
agency that is a party to the permanent
agreement; and
``(II) shall be terminated--
``(aa) for cause by the
applicable State agency in
accordance with paragraph (5);
or
``(bb) on termination of
participation of the institution
in the child and adult care food
program.''.

(b) Applications and Reviews.--Section 17(d) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(d)) is amended by
striking paragraph (2) and inserting the following:

[[Page 3249]]

``(2) Program applications.--
``(A) <>  In
general.--The Secretary shall develop a policy under
which each institution providing child care that
participates in the program under this section shall--
``(i) submit to the State agency an initial
application to participate in the program that
meets all requirements established by the
Secretary by regulation;
``(ii) annually confirm to the State agency
that the institution, and any facilities of the
institution in which the program is operated by a
sponsoring organization, is in compliance with
subsection (a)(5); and
``(iii) annually submit to the State agency
any additional information necessary to confirm
that the institution is in compliance with all
other requirements to participate in the program,
as established in this Act and by the Secretary by
regulation.
``(B) <>  Required reviews of
sponsored facilities.--
``(i) In general.--The Secretary shall develop
a policy under which each sponsoring organization
participating in the program under this section
shall conduct--
``(I) periodic unannounced site
visits at not less than 3-year intervals
to sponsored child and adult care
centers and family or group day care
homes to identify and prevent management
deficiencies and fraud and abuse under
the program; and
``(II) at least 1 scheduled site
visit each year to sponsored child and
adult care centers and family or group
day care homes to identify and prevent
management deficiencies and fraud and
abuse under the program and to improve
program operations.
``(ii) Varied timing.--Sponsoring
organizations shall vary the timing of unannounced
reviews under clause (i)(I) in a manner that makes
the reviews unpredictable to sponsored facilities.
``(C) Required reviews of institutions.--The
Secretary shall develop a policy under which each State
agency shall conduct--
``(i) <>  at least 1
scheduled site visit at not less than 3-year
intervals to each institution under the State
agency participating in the program under this
section--
``(I) to identify and prevent
management deficiencies and fraud and
abuse under the program; and
``(II) to improve program
operations; and
``(ii) more frequent reviews of any
institution that--
``(I) sponsors a significant share
of the facilities participating in the
program;
``(II) conducts activities other
than the program authorized under this
section;

[[Page 3250]]

``(III) has serious management
problems, as identified in a prior
review, or is at risk of having serious
management problems; or
``(IV) meets such other criteria as
are defined by the Secretary.
``(D) Detection and deterrence of erroneous payments
and false claims.--
``(i) In general.--The Secretary may develop a
policy to detect and deter, and recover erroneous
payments to, and false claims submitted by,
institutions, sponsored child and adult care
centers, and family or group day care homes
participating in the program under this section.
``(ii) Block claims.--
``(I) Definition of block claim.--In
this clause, the term `block claim' has
the meaning given the term in section
226.2 of title 7, Code of Federal
Regulations (or successor regulations).
``(II) Program edit checks.--The
Secretary may not require any State
agency, sponsoring organization, or
other institution to perform edit checks
or on-site reviews relating to the
detection of block claims by any child
care facility.
``(III) Allowance.--Notwithstanding
subclause (II), the Secretary may
require any State agency, sponsoring
organization, or other institution to
collect, store, and transmit to the
appropriate entity information necessary
to develop any other policy developed
under clause (i).''.

(c) Agreements.--Section 17(j)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(j)(1)) is amended--
(1) by striking ``may'' and inserting ``shall'';
(2) by striking ``family or group day care'' the first place
it appears; and
(3) by inserting ``or sponsored day care centers'' before
``participating''.
SEC. 332. STATE LIABILITY FOR PAYMENTS TO AGGRIEVED CHILD CARE
INSTITUTIONS.

Section 17(e) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(e)) is amended--
(1) in paragraph (3), by striking ``(3) If a State'' and
inserting the following:
``(5) Secretarial hearing.--If a State''; and
(2) by striking ``(e) Except as provided'' and all that
follows through ``(2) A State'' and inserting the following:

``(e) Hearings.--
``(1) <>  In general.--Except as
provided in paragraph (4), each State agency shall provide, in
accordance with regulations promulgated by the Secretary, an
opportunity for a fair hearing and a prompt determination to any
institution aggrieved by any action of the State agency that
affects--
``(A) the participation of the institution in the
program authorized by this section; or
``(B) the claim of the institution for reimbursement
under this section.

[[Page 3251]]

``(2) <>  Reimbursement.--
In accordance with paragraph (3), a State agency that fails to
meet timeframes for providing an opportunity for a fair hearing
and a prompt determination to any institution under paragraph
(1) in accordance with regulations promulgated by the Secretary,
shall pay, from non-Federal sources, all valid claims for
reimbursement to the institution and the facilities of the
institution during the period beginning on the day after the end
of any regulatory deadline for providing the opportunity and
making the determination and ending on the date on which a
hearing determination is made.
``(3) <>  Notice to state agency.--The
Secretary shall provide written notice to a State agency at
least 30 days prior to imposing any liability for reimbursement
under paragraph (2).
``(4) Federal audit determination.--A State''.
SEC. 333. TRANSMISSION OF INCOME INFORMATION BY SPONSORED FAMILY
OR GROUP DAY CARE HOMES.

Section 17(f)(3)(A)(iii)(III) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f)(3)(A)(iii)(III)) is amended by
adding at the end the following:
``(dd) Transmission of
income information by sponsored
family or group day care
homes.--If a family or group day
care home elects to be provided
reimbursement factors described
in subclause (II), the family or
group day care home may assist
in the transmission of necessary
household income information to
the family or group day care
home sponsoring organization in
accordance with the policy
described in item (ee).
``(ee) Policy.--The
Secretary shall develop a policy
under which a sponsored family
or group day care home described
in item (dd) may, under terms
and conditions specified by the
Secretary and with the written
consent of the parents or
guardians of a child in a family
or group day care home
participating in the program,
assist in the transmission of
the income information of the
family to the family or group
day care home sponsoring
organization.''.
SEC. 334. SIMPLIFYING AND ENHANCING ADMINISTRATIVE PAYMENTS TO
SPONSORING ORGANIZATIONS.

Section 17(f)(3) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(f)(3)) is amended by striking subparagraph (B) and
inserting the following:
``(B) Administrative funds.--
``(i) In general.--In addition to
reimbursement factors described in subparagraph
(A), a family or group day care home sponsoring
organization shall receive reimbursement for the
administrative expenses of the sponsoring
organization in an amount that is not less than
the product obtained each month by multiplying--

[[Page 3252]]

``(I) the number of family and group
day care homes of the sponsoring
organization submitting a claim for
reimbursement during the month; by
``(II) the appropriate
administrative rate determined by the
Secretary.
``(ii) Annual adjustment.--The administrative
reimbursement levels specified in clause (i) shall
be adjusted July 1 of each year to reflect changes
in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor
Statistics of the Department of Labor for the most
recent 12-month period for which such data are
available.
``(iii) <>  Carryover
funds.--The Secretary shall develop procedures
under which not more than 10 percent of the amount
made available to sponsoring organizations under
this section for administrative expenses for a
fiscal year may remain available for obligation or
expenditure in the succeeding fiscal year.''.
SEC. 335. CHILD AND ADULT CARE FOOD PROGRAM AUDIT FUNDING.

Section 17(i) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(i)) is amended by striking paragraph (2) and inserting
the following:
``(2) Funding.--
``(A) In general.--The Secretary shall make
available for each fiscal year to each State agency
administering the child and adult care food program, for
the purpose of conducting audits of participating
institutions, an amount of up to 1.5 percent of the
funds used by each State in the program under this
section, during the second preceding fiscal year.
``(B) Additional funding.--
``(i) In general.--Subject to clause (ii), for
fiscal year 2016 and each fiscal year thereafter,
the Secretary may increase the amount of funds
made available to any State agency under
subparagraph (A), if the State agency demonstrates
that the State agency can effectively use the
funds to improve program management under criteria
established by the Secretary.
``(ii) Limitation.--The total amount of funds
made available to any State agency under this
paragraph shall not exceed 2 percent of the funds
used by each State agency in the program under
this section, during the second preceding fiscal
year.''.
SEC. 336. <>  REDUCING PAPERWORK AND
IMPROVING PROGRAM ADMINISTRATION.

(a) Definition of Program.--In this section, the term ``program''
means 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).
(b) Establishment.--The Secretary, in conjunction with States and
participating institutions, shall continue to examine the feasibility of
reducing unnecessary or duplicative paperwork resulting from regulations
and recordkeeping requirements for State agencies, institutions, family
and group day care homes, and sponsored centers participating in the
program.

[[Page 3253]]

(c) Duties.--At a minimum, the examination shall include--
(1) review and evaluation of the recommendations, guidance,
and regulatory priorities developed and issued to comply with
section 119(i) of the Child Nutrition and WIC Reauthorization
Act of 2004 (42 U.S.C. 1766 note; Public Law 108-265); and
(2) examination of additional paperwork and administrative
requirements that have been established since February 23, 2007,
that could be reduced or simplified.

(d) Additional Duties.--The Secretary, in conjunction with States
and institutions participating in the program, may also examine any
aspect of administration of the program.
(e) Report.--Not later than 4 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report that describes
the actions that have been taken to carry out this section, including--
(1) actions taken to address administrative and paperwork
burdens identified as a result of compliance with section 119(i)
of the Child Nutrition and WIC Reauthorization Act of 2004 (42
U.S.C. 1766 note; Public Law 108-265);
(2) administrative and paperwork burdens identified as a
result of compliance with section 119(i) of that Act for which
no regulatory action or policy guidance has been taken;
(3) additional steps that the Secretary is taking or plans
to take to address any administrative and paperwork burdens
identified under subsection (c)(2) and paragraph (2),
including--
(A) new or updated regulations, policy, guidance, or
technical assistance; and
(B) a timeframe for the completion of those steps;
and
(4) recommendations to Congress for modifications to
existing statutory authorities needed to address identified
administrative and paperwork burdens.
SEC. 337. STUDY RELATING TO THE CHILD AND ADULT CARE FOOD PROGRAM.

(a) Study.--The Secretary, acting through the Administrator of the
Food and Nutrition Service, shall carry out a study of States
participating in an afterschool supper program under the child and adult
care food program established under section 17(r) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(r)).
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress, and make available on
the website of the Food and Nutrition Service, a report that describes--
(1) best practices of States in soliciting sponsors for an
afterschool supper program described in subsection (a); and
(2) any Federal or State laws or requirements that may be a
barrier to participation in the program.

[[Page 3254]]

Subtitle D--Special Supplemental Nutrition Program for Women, Infants,
and Children

SEC. 351. SHARING OF MATERIALS WITH OTHER PROGRAMS.

Section 17(e)(3) of the Child Nutrition Act (42 U.S.C. 1786(e)(3))
is amended by striking subparagraph (B) and inserting the following:
``(B) Sharing of materials with other programs.--
``(i) Commodity supplemental food program.--
The Secretary may provide, in bulk quantity,
nutrition education materials (including materials
promoting breastfeeding) developed with funds made
available for the program authorized under this
section to State agencies administering the
commodity supplemental food program established
under section 5 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note; Public
Law 93-86) at no cost to that program.
``(ii) Child and adult care food program.--A
State agency may allow the local agencies or
clinics under the State agency to share nutrition
educational materials with institutions
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) at no cost to that program, if a
written materials sharing agreement exists between
the relevant agencies.''.
SEC. 352. WIC PROGRAM MANAGEMENT.

(a) WIC Evaluation Funds.--Section 17(g)(5) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(g)(5)) is amended by striking ``$5,000,000''
and inserting ``$15,000,000''.
(b) WIC Rebate Payments.--Section 17(h)(8) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)(8)) is amended by adding at the end the
following:
``(K) <>  Reporting.--
Effective beginning October 1, 2011, each State agency
shall report rebate payments received from manufacturers
in the month in which the payments are received, rather
than in the month in which the payments were earned.''.

(c) Cost Containment Measure.--Section 17(h) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(h)) is amended--
(1) in paragraph (8)(A)(iv)(III), by striking ``Any'' and
inserting ``Except as provided in paragraph (9)(B)(i)(II),
any''; and
(2) by striking paragraph (9) and inserting the following:
``(9) Cost containment measure.--
``(A) Definition of cost containment measure.--In
this subsection, the term `cost containment measure'
means a competitive bidding, rebate, direct
distribution, or home delivery system implemented by a
State agency as described in the approved State plan of
operation and administration of the State agency.

[[Page 3255]]

``(B) Solicitation and rebate billing
requirements.--Any State agency instituting a cost
containment measure for any authorized food, including
infant formula, shall--
``(i) in the bid solicitation--
``(I) identify the composition of
State alliances for the purposes of a
cost containment measure; and
``(II) verify that no additional
States shall be added to the State
alliance between the date of the bid
solicitation and the end of the
contract;
``(ii) have a system to ensure that 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;
``(iii) open and read aloud all bids at a
public proceeding on the day on which the bids are
due; and
``(iv) unless otherwise exempted by the
Secretary, provide a minimum of 30 days between
the publication of the solicitation and the date
on which the bids are due.
``(C) State alliances for authorized foods other
than infant formula.--Program <>
requirements relating to the size of State alliances
under paragraph (8)(A)(iv) shall apply to cost
containment measures established for any authorized food
under this section.''.

(d) Electronic Benefit Transfer.--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) Electronic benefit transfer.--
``(A) Definitions.--In this paragraph:
``(i) Electronic benefit transfer.--The term
`electronic benefit transfer' means a food
delivery system that provides benefits using a
card or other access device approved by the
Secretary that permits electronic access to
program benefits.
``(ii) Program.--The term `program' means the
special supplemental nutrition program established
by this section.
``(B) Requirements.--
``(i) <>  In general.--Not
later than October 1, 2020, each State agency
shall be required to implement electronic benefit
transfer systems throughout the State, unless the
Secretary grants an exemption under subparagraph
(C) for a State agency that is facing unusual
barriers to implement an electronic benefit
transfer system.
``(ii) Responsibility.--The State agency shall
be responsible for the coordination and management
of the electronic benefit transfer system of the
agency.
``(C) Exemptions.--
``(i) In general.--To be eligible for an
exemption from the statewide implementation
requirements of subparagraph (B)(i), a State
agency shall demonstrate to the satisfaction of
the Secretary 1 or more of the following:

[[Page 3256]]

``(I) There are unusual
technological barriers to
implementation.
``(II) Operational costs are not
affordable within the nutrition services
and administration grant of the State
agency.
``(III) It is in the best interest
of the program to grant the exemption.
``(ii) Specific date.--A State agency
requesting an exemption under clause (i) shall
specify a date by which the State agency
anticipates statewide implementation described in
subparagraph (B)(i).
``(D) Reporting.--
``(i) In general.--Each State agency shall
submit to the Secretary electronic benefit
transfer project status reports to demonstrate the
progress of the State toward statewide
implementation.
``(ii) Consultation.--If a State agency plans
to incorporate additional programs in the
electronic benefit transfer system of the State,
the State agency shall consult with the State
agency officials responsible for administering the
programs prior to submitting the planning
documents to the Secretary for approval.
``(iii) Requirements.--At a minimum, a status
report submitted under clause (i) shall contain--
``(I) an annual outline of the
electronic benefit transfer
implementation goals and objectives of
the State;
``(II) appropriate updates in
accordance with approval requirements
for active electronic benefit transfer
State agencies; and
``(III) such other information as
the Secretary may require.
``(E) Imposition of costs on vendors.--
``(i) Cost prohibition.--Except as otherwise
provided in this paragraph, the Secretary may not
impose, or allow a State agency to impose, the
costs of any equipment or system required for
electronic benefit transfers on any authorized
vendor in order to transact electronic benefit
transfers if the vendor equipment or system is
used solely to support the program.
``(ii) Cost-sharing.--The Secretary shall
establish criteria for cost-sharing by State
agencies and vendors of costs associated with any
equipment or system that is not solely dedicated
to transacting electronic benefit transfers for
the program.
``(iii) Fees.--
``(I) In general.--A vendor that
elects to accept electronic benefit
transfers using multifunction equipment
shall pay commercial transaction
processing costs and fees imposed by a
third-party processor that the vendor
elects to use to connect to the
electronic benefit transfer system of
the State.
``(II) Interchange fees.--No
interchange fees shall apply to
electronic benefit transfer transactions
under this paragraph.

[[Page 3257]]

``(iv) Statewide operations.--After completion
of statewide expansion of a system for transaction
of electronic benefit transfers--
``(I) a State agency may not be
required to incur ongoing maintenance
costs for vendors using multifunction
systems and equipment to support
electronic benefit transfers; and
``(II) any retail store in the State
that applies for authorization to become
a program vendor shall be required to
demonstrate the capability to accept
program benefits electronically prior to
authorization, unless the State agency
determines that the vendor is necessary
for participant access.
``(F) <>  Minimum lane
coverage.--
``(i) In general.--The Secretary shall
establish minimum lane coverage guidelines for
vendor equipment and systems used to support
electronic benefit transfers.
``(ii) Provision of equipment.--If a vendor
does not elect to accept electronic benefit
transfers using its own multifunction equipment,
the State agency shall provide such equipment as
is necessary to solely support the program to meet
the established minimum lane coverage guidelines.
``(G) Technical standards.--The Secretary shall--
``(i) establish technical standards and
operating rules for electronic benefit transfer
systems; and
``(ii) require each State agency, contractor,
and authorized vendor participating in the program
to demonstrate compliance with the technical
standards and operating rules.''.

(e) Universal Product Codes Database.--Section 17(h) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking
paragraph (13) and inserting the following:
``(13) Universal product codes database.--
``(A) <>  In general.--Not later
than 2 years after the date of enactment of the Healthy,
Hunger-Free Kids Act of 2010, the Secretary shall
establish a national universal product code database to
be used by all State agencies in carrying out the
requirements of paragraph (12).
``(B) Funding.--
``(i) <>  In
general.--On October 1, 2010, 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 to carry
out this paragraph $1,000,000, 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 paragraph the funds
transferred under clause (i), without further
appropriation.
``(iii) Use of funds.--The Secretary shall use
the funds provided under clause (i) for
development, hosting, hardware and software
configuration, and support of the database
required under subparagraph (A).''.

[[Page 3258]]

(f) Temporary Spending Authority.--Section 17(i) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(i)) is amended by adding at the
end the following:
``(8) Temporary spending authority.--During each of fiscal
years 2012 and 2013, the Secretary may authorize a State agency
to expend more than the amount otherwise authorized under
paragraph (3)(C) for expenses incurred under this section for
supplemental foods during the preceding fiscal year, if the
Secretary determines that--
``(A) there has been a significant reduction in
reported infant formula cost containment savings for the
preceding fiscal year due to the implementation of
subsection (h)(8)(K); and
``(B) the reduction would affect the ability of the
State agency to serve all eligible participants.''.

Subtitle E--Miscellaneous

SEC. 361. FULL USE OF FEDERAL FUNDS.

Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) is amended by striking subsection (b) and inserting the
following:
``(b) Agreements.--
``(1) In general.--The Secretary shall incorporate, in the
agreement of the Secretary with the State agencies administering
programs authorized under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), the express requirements with
respect to the operation of the programs to the extent
applicable and such other provisions as in the opinion of the
Secretary are reasonably necessary or appropriate to effectuate
the purposes of this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
``(2) Expectations for use of funds.--Agreements described
in paragraph (1) shall include a provision that--
``(A) supports full use of Federal funds provided to
State agencies for the administration of programs
authorized under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.); and
``(B) excludes the Federal funds from State budget
restrictions or limitations including, at a minimum--
``(i) hiring freezes;
``(ii) work furloughs; and
``(iii) travel restrictions.''.
SEC. 362. DISQUALIFIED SCHOOLS, INSTITUTIONS, AND INDIVIDUALS.

Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) (as amended by section 206) is amended by adding at the end
the following:
``(r) Disqualified Schools, Institutions, and Individuals.--Any
school, institution, service institution, facility, or individual that
has been terminated from any program authorized under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) and is on a list of
disqualified institutions and individuals under section 13 or section
17(d)(5)(E) of this Act may not be approved to participate in or
administer any program authorized under this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).''.

[[Page 3259]]

TITLE IV--MISCELLANEOUS

Subtitle A--Reauthorization of Expiring Provisions

PART I--RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

SEC. 401. COMMODITY SUPPORT.

Section 6(e)(1)(B) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1755(e)(1)(B)) is amended by striking ``September 30,
2010'' and inserting ``September 30, 2020''.
SEC. 402. FOOD SAFETY AUDITS AND REPORTS BY STATES.

Section 9(h) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(h)) is amended--
(1) in paragraph (3), by striking ``2006 through 2010'' and
inserting ``2011 through 2015''; and
(2) in paragraph (4), by striking ``2006 through 2010'' and
inserting ``2011 through 2015''.
SEC. 403. PROCUREMENT TRAINING.

Section 12(m)(4) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1760(m)(4)) is amended by striking ``2005 through 2009'' and
inserting ``2010 through 2015''.
SEC. 404. AUTHORIZATION OF THE SUMMER FOOD SERVICE PROGRAM FOR
CHILDREN.

Subsection (r) of section 13 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1761) (as redesignated by section 322(1)) is
amended by striking ``September 30, 2009'' and inserting ``September 30,
2015''.
SEC. 405. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.

Subsection (i)(5) of section 18 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769) (as redesignated by section 243(1)) is
amended by striking ``2005 through 2010'' and inserting ``2011 through
2015''.
SEC. 406. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE
MANAGEMENT INSTITUTE.

Section 21(e) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769b-1(e)) is amended--
(1) by striking ``(e) Authorization of Appropriations'' and
all that follows through the end of paragraph (2)(A) and
inserting the following:

``(e) Food Service Management Institute.--
``(1) Funding.--
``(A) In general.--In addition to any amounts
otherwise made available for fiscal year 2011, on
October 1, 2010, and each October 1 thereafter, out of
any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the
Secretary to carry out subsection (a)(2) $5,000,000, to
remain available until expended.

[[Page 3260]]

``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out subsection (a)(2) the funds transferred under
subparagraph (A), without further appropriation.'';
(2) by redesignating subparagraphs (B) and (C) as paragraphs
(2) and (3), respectively, and indenting appropriately;
(3) in paragraph (2) (as so redesignated), by striking
``subparagraph (A)'' each place it appears and inserting
``paragraph (1)''; and
(4) in paragraph (3) (as so redesignated), by striking
``subparagraphs (A) and (B)'' and inserting ``paragraphs (1) and
(2)''.
SEC. 407. FEDERAL ADMINISTRATIVE SUPPORT.

Section 21(g)(1)(A)) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769b-1(g)(1)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause(ii), by striking the period at the end and
inserting ``; and''
(3) and by adding at the end the following:
``(iii) on October 1, 2010, and every October
1 thereafter, $4,000,000.''.
SEC. 408. 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 ``$6,000,000 for each of
fiscal years 2004 through 2009'' and inserting ``$10,000,000 for each of
fiscal years 2011 through 2015''.
SEC. 409. 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 by striking ``2005
through 2010'' and inserting ``2010 through 2015''.

PART II--CHILD NUTRITION ACT OF 1966

SEC. 421. TECHNOLOGY INFRASTRUCTURE IMPROVEMENT.

Section 7(i)(4) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(i)(4)) is amended by striking ``2005 through 2009'' and inserting
``2010 through 2015''.
SEC. 422. STATE ADMINISTRATIVE EXPENSES.

Section 7(j) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(j))
is amended by striking ``October 1, 2009'' and inserting ``October 1,
2015''.
SEC. 423. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.

Section 17(g)(1)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(g)(1)(A)) is amended by striking ``each of fiscal years 2004
through 2009'' and inserting ``each of fiscal years 2010 through 2015''.
SEC. 424. FARMERS MARKET NUTRITION PROGRAM.

Section 17(m)(9) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(m)(9)) is amended by striking subparagraph (A) and inserting the
following:
``(A) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection

[[Page 3261]]

such sums as are necessary for each of fiscal years 2010
through 2015.''.

Subtitle B--Technical Amendments

SEC. 441. TECHNICAL AMENDMENTS.

(a) Richard B. Russell National School Lunch Act.--
(1) Nutritional requirements.--Section 9(f) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1758(f)) is
amended--
(A) by striking ``(f)'' and all that follows through
the end of paragraph (1) and inserting the following:

``(f) Nutritional Requirements.--
``(1) In general.--Schools that are participating in the
school lunch program or school breakfast program shall serve
lunches and breakfasts that--
``(A) are consistent with the goals of 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); and
``(B) consider the nutrient needs of children who
may be at risk for inadequate food intake and food
insecurity.'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively.
(2) Rounding rules for computation of adjustment.--Section
11(a)(3)(B) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1759a(a)(3)(B)) is amended by striking ``Rounding.--
'' and all that follows through ``On July'' in subclause (II)
and inserting ``Rounding.--On July''.
(3) Information and assistance concerning reimbursement
options.--Section 11 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a) is amended by striking subsection
(f).
(4) 1995 regulations to implement dietary guidelines.--
Section 12 of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1760) is amended by striking subsection (k).
(5) Summer food service program for children.--
(A) In general.--Section 13 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1761) is
amended by striking the section heading and all that
follows through the end of subsection (a)(1) and
inserting the following:
``SEC. 13. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

``(a) In General.--
``(1) Definitions.--In this section:
``(A) Area in which poor economic conditions
exist.--
``(i) In general.--Subject to clause (ii), the
term `area in which poor economic conditions
exist', as the term relates to an area in which a
program food service site is located, means--
``(I) the attendance area of a
school in which at least 50 percent of
the enrolled children have been
determined eligible for free or reduced
price

[[Page 3262]]

school meals under this Act and the
Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
``(II) a geographic area, as defined
by the Secretary based on the most
recent census data available, in which
at least 50 percent of the children
residing in that area are eligible for
free or reduced price school meals under
this Act and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.);
``(III) an area--
``(aa) for which the program
food service site documents the
eligibility of enrolled children
through the collection of income
eligibility statements from the
families of enrolled children or
other means; and
``(bb) at least 50 percent
of the children enrolled at the
program food service site meet
the income standards for free or
reduced price school meals under
this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.);
``(IV) a geographic area, as defined
by the Secretary based on information
provided from a department of welfare or
zoning commission, in which at least 50
percent of the children residing in that
area are eligible for free or reduced
price school meals under this Act and
the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); or
``(V) an area for which the program
food service site demonstrates through
other means approved by the Secretary
that at least 50 percent of the children
enrolled at the program food service
site are eligible for free or reduced
price school meals under this Act and
the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
``(ii) Duration of determination.--A
determination that an area is an `area in which
poor economic conditions exist' under clause (i)
shall be in effect for--
``(I) in the case of an area
described in clause (i)(I), 5 years;
``(II) in the case of an area
described in clause (i)(II), until more
recent census data are available;
``(III) in the case of an area
described in clause (i)(III), 1 year;
and
``(IV) in the case of an area
described in subclause (IV) or (V) of
clause (i), a period of time to be
determined by the Secretary, but not
less than 1 year.
``(B) Children.--The term `children' means--
``(i) individuals who are 18 years of age and
under; and
``(ii) individuals who are older than 18 years
of age who are--
``(I) <>
determined by a State educational agency
or a local public educational agency of
a State, in accordance with regulations
promulgated by the Secretary, to have a
disability, and

[[Page 3263]]

``(II) participating in a public or
nonprofit private school program
established for individuals who have a
disability.
``(C) Program.--The term `program' means the summer
food service program for children authorized by this
section.
``(D) Service institution.--The term `service
institution' means a public or private nonprofit school
food authority, local, municipal, or county government,
public or private nonprofit higher education institution
participating in the National Youth Sports Program, or
residential public or private nonprofit summer camp,
that develops special summer or school vacation programs
providing food service similar to food service made
available to children during the school year under the
school lunch program under this Act or the school
breakfast program under the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.).
``(E) State.--The term `State' means--
``(i) each of the several States of the United
States;
``(ii) the District of Columbia;
``(iii) the Commonwealth of Puerto Rico;
``(iv) Guam;
``(v) American Samoa;
``(vi) the Commonwealth of the Northern
Mariana Islands; and
``(vii) the United States Virgin Islands.''.
(B) Conforming amendments.--Section 13(a) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1761(a)) is amended--
(i) in paragraph (2)--
(I) by striking ``(2) To the maximum
extent feasible,'' and inserting the
following:
``(2) Program authorization.--
``(A) In general.--The Secretary may carry out a
program to assist States, through grants-in-aid and
other means, to initiate and maintain nonprofit summer
food service programs for children in service
institutions.
``(B) Preparation of food.--
``(i) In general.--To the maximum extent
feasible,''; and
(II) by striking ``The Secretary
shall'' and inserting the following:
``(ii) Information and technical assistance.--
The Secretary shall'';
(ii) in paragraph (3)--
(I) by striking ``(3) Eligible
service institutions'' and inserting the
following:
``(3) Eligible service institutions.--Eligible service
institutions''; and
(II) by indenting subparagraphs (A)
through (D) appropriately;
(iii) in paragraph (4)--
(I) by redesignating subparagraphs
(A) through (D) as clauses (i) through
(iv), respectively, and indenting
appropriately;
(II) by striking ``(4) The
following'' and inserting the following:
``(4) Priority.--

[[Page 3264]]

``(A) In general.--The following''; and
(III) by striking ``The Secretary
and the States'' and inserting the
following:
``(B) Rural areas.--The Secretary and the States'';
(iv) by striking ``(5) Camps'' and inserting
the following:
``(5) Camps.--Camps''; and
(v) by striking ``(6) Service institutions''
and inserting the following:
``(6) Government institutions.--Service institutions''.
(6) Report on impact of procedures to secure state school
input on commodity selection.--Section 14(d) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1762a(d)) is
amended by striking the matter that follows paragraph (5).
(7) Rural area day care home pilot program.--Section 17 of
the Richard B. Russell National School Lunch Act (42 U.S.C.
1766) is amended by striking subsection (p).
(8) Child and adult care food program training and technical
assistance.--Section 17(q) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(q)) is amended by striking
paragraph (3).
(9) Pilot project for private nonprofit state agencies.--
Section 18 of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769) is amended by striking subsection (a).
(10) Meal counting and application pilot programs.--Section
18(c) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769(c)) is amended--
(A) by striking paragraphs (1) and (2);
(B) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively; and
(C) in paragraph (1) (as so redesignated), by
striking ``In addition to the pilot projects described
in this subsection, the Secretary may conduct other''
and inserting ``The Secretary may conduct''.
(11) Milk fortification pilot.--Section 18 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769) is amended by
striking subsection (d).
(12) Free breakfast pilot project.--Section 18 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is
amended by striking subsection (e).
(13) 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 striking subsection (f).
(14) <>  Accommodation of the special dietary
needs of individuals with disabilities.--Section 27 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1769h)
is repealed.

(b) Child Nutrition Act of 1966.--
(1) State administrative expenses minimum levels for 2005
through 2007.--Section 7(a)(1) of the Child Nutrition Act of
1966 (42 U.S.C. 1776(a)(1)) is amended--
(A) in subparagraph (A), by striking ``Except as
provided in subparagraph (B), each fiscal year'' and
inserting ``Each fiscal year'';

[[Page 3265]]

(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(2) Fruit and vegetable grants under the special
supplemental nutrition program for women, infants, and
children.--Section 17(f)(11) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(f)(11)) is amended--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as
subparagraph (C).
SEC. 442. USE OF UNSPENT FUTURE FUNDS FROM THE AMERICAN RECOVERY
AND REINVESTMENT ACT OF 2009.

Section 101(a) of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120) is amended--
(1) in paragraph (1), by inserting before the period at the
end ``, if the value of the benefits and block grants would be
greater under that calculation than in the absence of this
subsection''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Termination.--The authority provided by this
subsection shall terminate after October 31, 2013.''.
SEC. 443. <>  EQUIPMENT ASSISTANCE TECHNICAL
CORRECTION.

(a) In General.--Notwithstanding any other provision of law, school
food authorities that received a grant for equipment assistance under
the grant program carried out under the heading ``FOOD AND NUTRITION
SERVICE CHILD NUTRITION PROGRAMS'' in title I of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123
Stat. 119) shall be eligible to receive a grant under section 749(j) of
the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2010 (Public Law 111-80; 123 Stat.
2134).
(b) Use of Grant.--A school food authority receiving a grant for
equipment assistance described in subsection (a) may use the grant only
to make equipment available to schools that did not previously receive
equipment from a grant under the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5; 123 Stat. 115).
SEC. 444. BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.

[[Page 3266]]

SEC. 445. <>  EFFECTIVE DATE.

Except as otherwise specifically provided in this Act or any of the
amendments made by this Act, this Act and the amendments made by this
Act take effect on October 1, 2010.

Approved December 13, 2010.

LEGISLATIVE HISTORY--S. 3307:
---------------------------------------------------------------------------

SENATE REPORTS: No. 111-178 (Comm. on Agriculture, Nutrition, and
Forestry).
CONGRESSIONAL RECORD, Vol. 156 (2010):
Aug. 5, considered and passed Senate.
Dec. 1, 2, considered and passed House.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
Dec. 13, Presidential remarks.