[105th Congress Public Law 336]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ336.105]
[[Page 112 STAT. 3143]]
Public Law 105-336
105th Congress
An Act
To amend the National School Lunch Act and the Child Nutrition Act of
1966 to provide children with increased access to food and
nutrition <<NOTE: Oct. 31, 1998 - [H.R. 3874]>> assistance, to
simplify program operations and improve program management, to extend
certain authorities contained in those Acts through fiscal year 2003,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: William F.
Goodling Child Nutrition Reauthorization Act of 1998.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 42 USC 1751 note.>> Short Title.--This Act may be cited
as the ``William F. Goodling Child Nutrition Reauthorization Act of
1998''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS
Sec. 101. Provision of commodities.
Sec. 102. Nutritional and other program requirements.
Sec. 103. Special assistance.
Sec. 104. Miscellaneous provisions and definitions.
Sec. 105. Summer food service program for children.
Sec. 106. Commodity distribution program.
Sec. 107. Child and adult care food program.
Sec. 108. Meal supplements for children in afterschool care.
Sec. 109. Pilot projects.
Sec. 110. Training, technical assistance, and food service management
institute.
Sec. 111. Compliance and accountability.
Sec. 112. Information clearinghouse.
Sec. 113. Accommodation of the special dietary needs of individuals with
disabilities.
TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS
Sec. 201. School breakfast program authorization.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants, and
children.
Sec. 204. Nutrition education and training.
TITLE III--COMMODITY DISTRIBUTION PROGRAMS
Sec. 301. Information from recipient agencies.
Sec. 302. Food distribution.
TITLE IV--EFFECTIVE DATE
Sec. 401. Effective date.
[[Page 112 STAT. 3144]]
TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS
SEC. 101. PROVISION OF COMMODITIES.
(a) In General.--Section 6 of the National School Lunch Act (42
U.S.C. 1755) is amended--
(1) by striking subsections (c) and (d); and
(2) by redesignating subsections (e), (f ), and (g) as
subsections (c), (d), and (e), respectively.
(b) Conforming Amendments.--The National School Lunch Act is amended
by striking ``section 6(e)'' each place it appears in sections 14(f ),
16(a), and 17(h)(1)(B) (42 U.S.C. 1762a(f ), 1765(a), 1766(h)(1)(B)) and
inserting ``section 6(c)''.
SEC. 102. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
(a) Technical Amendments.--Section 9(f ) of the National School
Lunch Act (42 U.S.C. 1758(f )) is amended--
(1) in paragraph (2), by striking ``subparagraph (A)'' and
inserting ``paragraph (1)''; and
(2) in paragraphs (3) and (4), by striking ``this
paragraph'' each place it appears and inserting ``this
subsection''.
(b) Waiver of Requirement for Weighted Averages for Nutrient
Analysis.--Section 9(f ) of the National School Lunch Act (42 U.S.C.
1758(f )) is amended by adding at the end the
following:
``(5) Waiver of requirement for weighted averages for
nutrient analysis.--During the period ending on September 30,
2003, the Secretary shall not require the use of weighted
averages for nutrient analysis of menu items and foods offered
or served as part of a meal offered or served under the school
lunch program under this Act or the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).''.
(c) Requirement for Food Safety Inspections.--Section 9 of the
National School Lunch Act (42 U.S.C. 1758) is amended by adding at the
end the following:
``(h) Food Safety Inspections.--
``(1) In general.--Except as provided in paragraph (2), a
school participating in the school lunch program under this Act
or the school breakfast program under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) shall, at least once
during each school year, obtain a food safety inspection
conducted by a State or local governmental agency responsible
for food safety inspections.
``(2) Exception.--Paragraph (1) shall not apply to a school
if a food safety inspection of the school is required by a State
or local governmental agency responsible for food safety
inspections.''.
(d) Single Permanent Agreement Between State Agency and School Food
Authority; Common Claims Form.--Section 9 of the National School Lunch
Act (42 U.S.C. 1758), as amended by subsection (c), is further amended
by adding at the end the following:
``(i) Single Permanent Agreement Between State Agency and School
Food Authority; Common Claims Form.--
[[Page 112 STAT. 3145]]
``(1) In general.--If a single State agency administers any
combination of the school lunch program under this Act, the
school breakfast program under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773), the summer food service program
for children under section 13 of this Act, or the child and
adult care food program under section 17 of this Act, the agency
shall--
``(A) require each school food authority to submit
to the State agency a single agreement with respect to
the operation by the authority of the programs
administered by the State agency; and
``(B) use a common claims form with respect to meals
and supplements served under the programs administered
by the State agency.
``(2) Additional requirement.--The agreement described in
paragraph (1)(A) shall be a permanent agreement that may be
amended as necessary.''.
SEC. 103. SPECIAL ASSISTANCE.
(a) School Eligibility Requirements for Payments.--
Section 11(a)(1) of the National School Lunch Act (42 U.S.C.
1759a(a)(1)) is amended--
(1) in subparagraph (C)--
(A) in clause (i)(I), by striking ``3 successive
school years'' each place it appears and inserting ``4
successive school years''; and
(B) in clauses (ii) and (iii), by striking ``3-
school-year period'' each place it appears and inserting
``4-school-year period'';
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by striking ``3-school-year period'' each
place it appears and inserting ``4-school-year
period''; and
(ii) by striking ``2 school years'' and
inserting ``4 school years'';
(B) in clause (ii)--
(i) by striking the first sentence;
(ii) by striking ``The school'' and inserting
``A school described in clause (i)''; and
(iii) by striking ``5-school-year period''
each place it appears and inserting ``4-school-
year period''; and
(C) in clause (iii), by striking ``5-school-year
period'' and inserting ``4-school-year period''; and
(3) in subparagraph (E), by striking clause (iii).
(b) Adjustments to Payment Rates.--
(1) In general.--Section 11(a)(3)(B) of the National School
Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
(A) by striking ``(B) The annual'' and inserting the
following:
``(B) Computation of adjustment.--
``(i) In general.--The annual'';
(B) by striking ``Each annual'' and inserting the
following:
``(ii) Basis.--Each annual'';
(C) by striking ``The adjustments'' and inserting
the following:
``(iii) Rounding.--
[[Page 112 STAT. 3146]]
``(I) Through june 30, 1999.--For
the period ending June 30, 1999, the
adjustments''; and
(D) by adding at the end the following:
``(II) July 1, 1999, and
thereafter.--On July 1, 1999, and on
each subsequent July 1, the national
average payment rates for meals and
supplements shall be adjusted to the
nearest lower cent increment and shall
be based on the unrounded amounts for
the preceding 12-month period.''.
(2) Conforming amendments.--Section 4(b) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)) is amended--
(A) in the second sentence of paragraph (1)(B), by
striking ``adjusted to the nearest one-fourth cent,'';
and
(B) in paragraph (2)(B)(ii), by striking ``, which
shall be adjusted'' and all that follows and inserting
``(as adjusted pursuant to section 11(a)(3)(B) of the
National School Lunch Act (42 U.S.C 1759a(a)(3)(B))).''.
(c) Information and Assistance Concerning Reimbursement Options.--
(1) In general.--Section 11 of the National School Lunch Act
(42 U.S.C. 1759a) is amended by adding at the end the following:
``(f ) Information and Assistance Concerning Reimbursement
Options.--
``(1) <<NOTE: Grants.>> In general.--From funds made
available under paragraph (3), the Secretary shall provide
grants to not more than 10 State agencies in each of fiscal
years 2000 and 2001 to enable the agencies, in accordance with
criteria established by the Secretary, to--
``(A) identify separately in a list--
``(i) schools that are most likely to benefit
from electing to receive special assistance under
subparagraph (C) or (E) of subsection (a)(1); and
``(ii) schools that may benefit from electing
to receive special assistance under subparagraph
(C) or (E) of subsection (a)(1);
``(B) make the list of schools identified under this
subsection available to each school district within the
State and to the public;
``(C) provide technical assistance to schools, or
school districts containing the schools, to enable the
schools to evaluate and receive special assistance under
subparagraph (C) or (E) of subsection (a)(1);
``(D) take any other actions the Secretary
determines are consistent with receiving special
assistance under subparagraph (C) or (E) of subsection
(a)(1) and receiving a grant under this subsection; and
``(E) as soon as practicable after receipt of the
grant, but not later than September 30, 2001, take the
actions described in subparagraphs (A) through (D).
``(2) Report.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than January 1, 2002, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture,
Nutrition and Forestry of
[[Page 112 STAT. 3147]]
the Senate a report on the activities of the State
agencies receiving grants under this subsection.
``(B) Contents.--In the report, the Secretary shall
specify--
``(i) the number of schools identified as
likely to benefit from electing to receive special
assistance under subparagraph (C) or (E) of
subsection (a)(1);
``(ii) the number of schools identified under
this subsection that have elected to receive
special assistance under subparagraph (C) or (E)
of subsection (a)(1); and
``(iii) a description of how the funds and
technical assistance made available under this
subsection have been used.
``(3) Funding.--Out of any moneys in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
provide to the Secretary $2,250,000 for each of fiscal years
2000 and 2001 to carry out this subsection. The Secretary shall
be entitled to receive the funds and shall accept the funds,
without further appropriation.''.
(2) Technical amendments.--The National School Lunch Act is
amended in the second sentence of each of sections 21(e)(2)(A)
and 26(d) (42 U.S.C. 1769b-1(e)(2)(A), 1769g(d)) by inserting at
the end before the period ``, without further appropriation''.
SEC. 104. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) Adjustments to Reimbursement Rates.--Section 12(f ) of the
National School Lunch Act (42 U.S.C. 1760(f )) is amended--
(1) by striking ``school breakfasts and lunches'' and
inserting ``breakfasts, lunches, suppers, and supplements'';
(2) by striking ``sections 4 and 11'' and inserting
``sections 4, 11, 13, and 17''; and
(3) by striking ``lunches and breakfasts'' each place it
appears and inserting ``meals and supplements''.
(b) Criminal Penalties.--Section 12(g) of the National School Lunch
Act (42 U.S.C. 1760(g)) is amended by striking ``$10,000'' and inserting
``$25,000''.
(c) Food and Nutrition Projects.--Section 12(m) of the National
School Lunch Act (42 U.S.C. 1760(m)) is amended by striking ``1998''
each place it appears and inserting ``2003''.
(d) Buy American.--Section 12 of the National School Lunch Act (42
U.S.C. 1760) is amended by adding at the end the following:
``(n) Buy American.--
``(1) Definition of domestic commodity or product.--In this
subsection, the term `domestic commodity or product' means--
``(A) an agricultural commodity that is produced in
the United States; and
``(B) a food product that is processed in the United
States substantially using agricultural commodities that
are produced in the United States.
``(2) Requirement.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall require that a school food authority
purchase, to the maximum extent practicable, domestic
commodities or products.
[[Page 112 STAT. 3148]]
``(B) Limitations.--
Subparagraph <<NOTE: Applicability.>> (A) shall apply
only to--
``(i) a school food authority located in the
contiguous United States; and
``(ii) a purchase of a domestic commodity or
product for the school lunch program under this
Act or the school breakfast program under section
4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
``(3) Applicability to hawaii.--Paragraph (2)(A) shall apply
to a school food authority in Hawaii with respect to domestic
commodities or products that are produced in Hawaii in
sufficient quantities to meet the needs of meals provided under
the school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773).''.
(e) Procurement Contracts.--Section 12 of the National School Lunch
Act (42 U.S.C. 1760), as amended by subsection (d), is further amended
by adding at the end the following:
``(o) Procurement Contracts.--In acquiring a good or service for
programs under this Act or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) (other than section 17 of that Act (42 U.S.C. 1786)), a
State, State agency, school, or school food authority may enter into a
contract with a person that has provided specification information to
the State, State agency, school, or school food authority for use in
developing contract specifications for acquiring such good or
service.''.
SEC. 105. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Establishment of Site Limitation.--Section 13(a)(7)(B) of the
National School Lunch Act (42 U.S.C. 1761(a)(7)(B)) is
amended by striking clause (i) and inserting the following:
``(i) operate--
``(I) not more than 25 sites, with not more than 300
children being served at any one site; or
``(II) with a waiver granted by the State agency
under standards developed by the Secretary, with not
more than 500 children being served at any one site;''.
(b) Elimination of Meal Contracting Restrictions, Indication of
Interest Requirement, and Vendor Registration Requirements.--Section 13
of the National School Lunch Act (42 U.S.C. 1761) is amended--
(1) in subsection (a)(7)(B)--
(A) by striking clauses (ii) and (iii); and
(B) by redesignating clauses (iv) through (vii) as
clauses (ii) through (v) respectively; and
(2) in subsection (l)--
(A) in paragraph (1)--
(i) in the first sentence--
(I) by striking ``(other than
private nonprofit organizations eligible
under subsection (a)(7))''; and
(II) by striking ``only with food
service management companies registered
with the State in which they operate''
and inserting ``with food service
management companies''; and
(ii) by striking the last sentence;
(B) in paragraph (2)--
[[Page 112 STAT. 3149]]
(i) in the first sentence, by striking
``shall'' and inserting ``may''; and
(ii) by striking the second and third
sentences;
(C) by striking paragraph (3); and
(D) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(c) Offer Versus Serve.--Section 13(f )(7) of the National School
Lunch Act (42 U.S.C. 1761(f )(7)) is amended in the first sentence by
striking ``attending a site on school premises operated directly by the
authority''.
(d) Reauthorization of Program.--Section 13(q) of the National
School Lunch Act (42 U.S.C. 1761(q)) is amended by striking ``1998'' and
inserting ``2003''.
(e) Technical Amendment.--
(1) In general.--Section 706( j)(1) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193; 110 Stat. 2293) <<NOTE: 42 USC 1761.>> is
amended by striking ``methods of assessing'' and inserting
``methods for assessing''.
(2) <<NOTE: 42 USC 1761 note.>> Effective date.--The
amendment made by paragraph (1) takes effect on January 1, 1997.
SEC. 106. COMMODITY DISTRIBUTION PROGRAM.
Section 14(a) of the National School Lunch Act (42 U.S.C. 1762a(a))
is amended in the matter preceding paragraph (1) by striking ``1998''
and inserting ``2003''.
SEC. 107. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Eligibility of Institutions.--Section 17(a) of the National
School Lunch Act (42 U.S.C. 1766(a)) is amended--
(1) in the fourth sentence, by striking ``Reimbursement''
and inserting ``Except as provided in subsection (r),
reimbursement''; and
(2) in the sixth sentence, by striking paragraph (1) and
inserting the following:
``(1) an institution (except a school or family or group day
care home sponsoring organization) or family or group day care
home shall--
``(A)(i) be licensed, or otherwise have approval, by
the appropriate Federal, State, or local licensing
authority; or
``(ii) be in compliance with appropriate procedures
for renewing participation in the program, as prescribed
by the Secretary, and not be the subject of information
possessed by the State indicating that the license of
the institution or home will not be renewed;
``(B) if Federal, State, or local licensing or
approval is not available--
``(i) meet any alternate approval standards
established by the appropriate State or local
governmental agency; or
``(ii) meet any alternate approval standards
established by the Secretary after consultation
with the Secretary of Health and Human Services;
or
``(C) if the institution provides care to school
children outside of school hours and Federal, State, or
local licensing or approval is not required for the
institution, meet State or local health and safety
standards; and''.
[[Page 112 STAT. 3150]]
(b) Automatic Eligibility for Even Start Program Participants.--
Section 17(c)(6) of the National School Lunch Act (42 U.S.C. 1766(c)(6))
is amended--
(1) in subparagraph (A), by striking ``(A)''; and
(2) by striking subparagraph (B).
(c) Periodic Site Visits.--Section 17(d) of the National School
Lunch Act (42 U.S.C. 1766(d)) is amended--
(1) in the second sentence of paragraph (1), by inserting
after ``if it'' the following: ``has been visited by a State
agency prior to approval and it''; and
(2) in paragraph (2)(A)--
(A) by striking ``that allows'' and inserting
``that--
``(i) allows'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(ii) requires periodic site visits to private institutions
that the State agency determines have a high probability of
program abuse.''.
(d) Tax Exempt Status and Removal of Notification Requirement for
Incomplete Applications.--Section 17(d)(1) of the National School Lunch
Act (42 U.S.C. 1766(d)(1)) is amended--
(1) by inserting after the third sentence the following:
``An institution moving toward compliance with the requirement
for tax exempt status shall be allowed to participate in the
child and adult care food program for a period of not more than
180 days, except that a State agency may grant a single
extension of not to exceed an additional 90 days if the
institution demonstrates, to the satisfaction of the State
agency, that the inability of the institution to obtain tax
exempt status within the 180-day period is due to circumstances
beyond the control of the institution.''; and
(2) by striking the last sentence.
(e) Use of Funds for Audits.--Section 17(i) of the National School
Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``2 percent'' and
inserting ``1.5 percent (except, in the case of each of fiscal years
2005 through 2007, 1 percent)''.
(f ) Permanent Authorization of Demonstration Project.--Section
17(p) of the National School Lunch Act (42 U.S.C. 1766(p)) is amended by
striking paragraphs (4) and (5).
(g) Management Support.--Section 17 of the National School Lunch Act
(42 U.S.C. 1766) is amended by adding at the end the following:
``(q) Management Support.--
``(1) Technical and training assistance.--In addition to the
training and technical assistance that is provided to State
agencies under other provisions of this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the Secretary
shall provide training and technical assistance in order to
assist the State agencies in improving their program management
and oversight under this section.
``(2) Funding.--For each of fiscal years 1999 through 2003,
the Secretary shall reserve to carry out paragraph (1)
$1,000,000 of the amounts made available to carry out this
section.''.
(h) Participation by At-Risk Child Care Programs.--Section 17 of the
National School Lunch Act (42 U.S.C. 1766), as amended
[[Page 112 STAT. 3151]]
by subsection (g), is further amended by adding at the end the
following:
``(r) Program for At-Risk School Children.--
``(1) Definition of at-risk school child.--In this
subsection, the term `at-risk school child' means a school child
who--
``(A) is not more than 18 years of age, except that
the age limitation provided by this subparagraph shall
not apply to a child described in section 12(d)(1)(A);
and
``(B) participates in a program authorized under
this section operated at a site located in a
geographical area served by a school in which at least
50 percent of the children enrolled are certified as
eligible to receive free or reduced price school meals
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
``(2) Participation in child and adult care food program.--
An institution may participate in the program authorized under
this section only if the institution provides supplements under
a program--
``(A) organized primarily to provide care to at-risk
school children during after-school hours, weekends, or
holidays during the regular school year; and
``(B) with an educational or enrichment purpose.
``(3) Administration.--Except as otherwise provided in this
subsection, the other provisions of this section apply to an
institution described in paragraph (2).
``(4) Supplement reimbursement.--
``(A) Limitations.--An institution may claim
reimbursement under this subsection only for--
``(i) a supplement served under a program
organized primarily to provide care to at-risk
school children during after-school hours,
weekends, or holidays during the regular school
year; and
``(ii) one supplement per child per day.
``(B) Rate.--A supplement shall be reimbursed under
this subsection at the rate established for a free
supplement under subsection (c)(3).
``(C) No charge.--A supplement claimed for
reimbursement under this subsection shall be served
without charge.''.
(i) WIC Information.--Section 17 of the National School Lunch Act
(42 U.S.C. 1766), as amended by subsection (h), is further amended by
adding at the end the following:
``(s) Information Concerning the Special Supplemental Nutrition
Program for Women, Infants, and Children.--
``(1) In general.--The Secretary shall provide each State
agency administering a child and adult care food program under
this section with information concerning the special
supplemental nutrition program for women, infants, and children
authorized under section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786).
``(2) Requirements for state agencies.--Each State agency
shall ensure that each participating family and group day care
home and child care center (other than an institution providing
care to school children outside school hours)--
``(A) receives materials that include--
[[Page 112 STAT. 3152]]
``(i) a basic explanation of the importance
and benefits of the special supplemental nutrition
program for women, infants, and children;
``(ii) the maximum State income eligibility
standards, according to family size, for the
program; and
``(iii) information concerning how benefits
under the program may be obtained;
``(B) receives periodic updates of the information
described in subparagraph (A); and
``(C) provides the information described in
subparagraph (A) to parents of enrolled children at
enrollment.''.
( j) Transfer of Homeless Programs.--
(1) In general.--Section 17 of the National School Lunch Act
(42 U.S.C. 1766), as amended by subsection (i), is further
amended by adding at the end the following:
``(t) Participation by Emergency Shelters.--
``(1) Definition of emergency shelter.--In this subsection,
the term `emergency shelter' means--
``(A) an emergency shelter (as defined in section
321 of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11351)); or
``(B) a site operated by the shelter.
``(2) Administration.--Except as otherwise provided in this
subsection, an emergency shelter shall be eligible to
participate in the program authorized under this section in
accordance with the terms and conditions applicable to eligible
institutions described in subsection (a).
``(3) Licensing requirements.--The licensing requirements
contained in subsection (a)(1) shall not apply to an emergency
shelter.
``(4) Health and safety standards.--To be eligible to
participate in the program authorized under this section, an
emergency shelter shall comply with applicable State or local
health and safety standards.
``(5) Meal or supplement reimbursement.--
``(A) Limitations.--An emergency shelter may claim
reimbursement under this subsection--
``(i) only for a meal or supplement served to
children residing at an emergency shelter, if the
children are--
``(I) not more than 12 years of age;
``(II) children of migrant workers,
if the children are not more than 15
years of age; or
``(III) children with disabilities;
and
``(ii) for not more than 3 meals, or 2 meals
and a supplement, per child per day.
``(B) Rate.--A meal or supplement eligible for
reimbursement shall be reimbursed at the rate at which
free meals and supplements are reimbursed under
subsection (c).
``(C) No charge.--A meal or supplement claimed for
reimbursement shall be served without charge.''.
(2) Conforming amendments.--
(A) Section 13(a)(3)(C) of the National School Lunch
Act (42 U.S.C. 1761(a)(3)(C)) is amended--
(i) in clause (i), by adding ``or'' at the
end;
(ii) by striking clause (ii); and
[[Page 112 STAT. 3153]]
(iii) by redesignating clause (iii) as clause
(ii).
(B) Section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended in the third sentence--
(i) by striking ``and public'' and inserting
``public''; and
(ii) by inserting before the period at the end
the following: ``, and emergency shelters (as
provided in subsection (t))''.
(C)(i) Section 17B of the National School Lunch Act
(42 U.S.C. 1766b) is repealed.
(ii) Section 25(b)(1) of the National School Lunch
Act (42 U.S.C. 1769f(b)(1) is amended--
(I) by striking subparagraph (D); and
(II) by redesignating subparagraphs (E)
through (G) as subparagraphs (D) through (F),
respectively.
(3) Technical amendments.--
(A) Section 12(d) of the National School Lunch Act
(42 U.S.C. 1760(d)) is amended--
(i) in paragraph (1)(A), by striking ``mental
or physical'' each place it appears; and
(ii) by adding at the end the following:
``(8) Disability.--The term `disability' has the meaning
given the term in the Rehabilitation Act of 1973 for purposes of
title II of that Act (29 U.S.C 760 et seq.).''.
(B) Section 13(a)(1) of the National School Lunch
Act (42 U.S.C. 1761(a)(1)) is amended in subparagraph
(D) of the second sentence--
(i) in clause (i), by striking ``to be
mentally or physically handicapped'' and inserting
``to have a disability''; and
(ii) in clause (ii), by striking ``the
mentally or physically handicapped'' and inserting
``individuals who have a disability''.
(C) Section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended by striking ``handicaps''
each place it appears and inserting ``disabilities''.
(D) Section 15 of the Child Nutrition Act of 1966
(42 U.S.C. 1784) is amended--
(i) in paragraph (6), by striking ``mental or
physical handicaps'' each place it appears and
inserting ``disabilities''; and
(ii) by adding at the end the following:
``(7) Disability.--The term `disability' has the meaning
given the term in the Rehabilitation Act of 1973 for purposes of
title II of that Act (29 U.S.C 760 et seq.).''.
(4) <<NOTE: 42 USC 1761 note.>> Effective Date.--The
amendments made by paragraphs (1) and (2) take effect on July 1,
1999.
SEC. 108. MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL CARE.
(a) General Authority.--Section 17A(a) of the National School Lunch
Act (42 U.S.C. 1766a(a)) is amended--
(1) in paragraph (1), by striking ``supplements to'' and
inserting ``supplements under a program organized primarily to
provide care for''; and
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
[[Page 112 STAT. 3154]]
``(C) operate afterschool programs with an
educational or enrichment purpose.''.
(b) Eligible Children.--Section 17A(b) of the National School Lunch
Act (42 U.S.C. 1766a(b)) is amended by striking ``served to children''
and all that follows and inserting ``served to school children who are
not more than 18 years of age, except that the age limitation provided
by this subsection shall not apply to a child described in section
12(d)(1)(A).''.
(c) Reimbursement.--Section 17A(c) of the National School Lunch Act
(42 U.S.C. 1766a(c)) is amended by striking ``(c) Reimbursement.--For''
and inserting the following:
``(c) Reimbursement.--
``(1) At-risk school children.--In the case of an eligible
child who is participating in a program authorized under this
section operated at a site located in a geographical area served
by a school in which at least 50 percent of the children
enrolled are certified as eligible to receive free or reduced
price school meals under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), a supplement provided under this
section to the child shall be--
``(A) reimbursed at the rate at which free
supplements are reimbursed under section 17(c)(3); and
``(B) served without charge.
``(2) Other school children.--In the case of an eligible
child who is participating in a program authorized under this
section at a site that is not described in paragraph (1), for''.
SEC. 109. PILOT PROJECTS.
(a) In General.--Section 18 of the National School Lunch Act (42
U.S.C. 1769) is amended by striking subsections (c), (e), (g), and (h).
(b) Breakfast Pilot Projects.--Section 18(i) of the National School
Lunch Act (42 U.S.C. 1769(i)) is amended to read as follows:
``(i) Breakfast Pilot Projects.--
``(1) <<NOTE: Grants.>> In general.--Subject to the
availability of funds made available under paragraph (10), for a
period of 3 successive school years, the Secretary shall make
grants to State agencies to conduct pilot projects in elementary
schools under the jurisdiction of not more than 6 school food
authorities approved by the Secretary to--
``(A) reduce paperwork, simplify meal counting
requirements, and make changes that will increase
participation in the school breakfast program; and
``(B) evaluate the effect of providing free
breakfasts to elementary school children, without regard
to family income, on participation, academic
achievement, attendance and tardiness, and dietary
intake over the course of a day.
``(2) Nominations.--A State agency that seeks a grant under
this subsection shall submit to the Secretary nominations of
school food authorities to participate in a pilot project under
this subsection
``(3) Approval.--The Secretary shall approve for
participation in pilot projects under this subsection elementary
schools under the jurisdiction of not more than 6 nominated
school food authorities selected so as to--
[[Page 112 STAT. 3155]]
``(A) provide for an equitable distribution of pilot
projects among urban and rural elementary schools;
``(B) provide for an equitable distribution of pilot
projects among elementary schools of varying family
income levels; and
``(C) permit the evaluation of pilot projects to
distinguish the effects of the pilot projects from other
factors, such as changes or differences in educational
policies or programs.
``(4) Grants to school food authorities.--A State agency
receiving a grant under paragraph (1) shall make grants to
school food authorities to conduct the pilot projects described
in paragraph (1).
``(5) Duration of pilot projects.--Subject to the
availability of funds made available to carry out this
subsection, a school food authority receiving amounts under a
grant to conduct a pilot project described in paragraph (1)
shall conduct the project during a period of 3 successive school
years.
``(6) Waiver authority.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary may waive the
requirements of this Act and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) relating to counting of
meals, applications for eligibility, and related
requirements that would preclude the Secretary from
making a grant to conduct a pilot project under
paragraph (1).
``(B) Nonwaivable requirements.--The Secretary may
not waive a requirement under subparagraph (A) if the
waiver would prevent a program participant, a potential
program participant, or a school from receiving all of
the benefits and protections of this Act, the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), or a
Federal law (including a regulation) that protects an
individual constitutional right or a statutory civil
right.
``(7) Requirements for participation in pilot project.--To
be eligible to participate in a pilot project under this
subsection--
``(A) a State agency--
``(i) shall submit an application to the
Secretary at such time and in such manner as the
Secretary shall establish to meet criteria the
Secretary has established to enable a valid
evaluation to be conducted; and
``(ii) shall provide such information relating
to the operation and results of the pilot project
as the Secretary may reasonably require; and
``(B) a school food authority--
``(i) shall agree to serve all breakfasts at
no charge to all children enrolled in
participating elementary schools;
``(ii) shall not have a history of violations
of this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.);
``(iii) shall have, under the jurisdiction of
the school food authority, a sufficient number of
elementary schools that are not participating in
the pilot projects
[[Page 112 STAT. 3156]]
to permit a valid evaluation of the effects of the
pilot projects; and
``(iv) shall meet all other requirements that
the Secretary may reasonably require.
``(8) Evaluation of pilot projects.--
``(A) In general.--The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
conduct an evaluation of the pilot projects conducted by
the school food authorities selected for participation.
``(B) Content.--The evaluation shall include--
``(i) a determination of the effect of
participation in the pilot project on the academic
achievement, attendance and tardiness, and dietary
intake over the course of a day of participating
children that is not attributable to changes in
educational policies and practices; and
``(ii) a determination of the effect that
participation by elementary schools in the pilot
project has on the proportion of students who eat
breakfast and on the paperwork required to be
completed by the schools.
``(C) Report.--On completion of the pilot projects
and the evaluation, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
describing the results of the evaluation of the pilot
projects required under subparagraph (A).
``(9) Reimbursement.--
``(A) In general.--Except as provided in
subparagraph (B), a school conducting a pilot project
under this subsection shall receive a total Federal
reimbursement under the school breakfast program in an
amount that is equal to the total Federal reimbursement
for the school for the prior year under the program
(adjusted to reflect changes in the series for food away
from home of the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of
the Department of Labor and adjusted for fluctuations in
enrollment).
``(B) Excess needs.--Funds required for the pilot
project in excess of the level of reimbursement received
by the school for the prior year (adjusted to reflect
changes described in subparagraph (A) and adjusted for
fluctuations in enrollment) may be taken from any non-
Federal source or from amounts provided under this
subsection.
``(10) Authorization of appropriations.--
``(A) In general.--There are authorized to be
appropriated such sums as are necessary to carry out
this subsection.
``(B) Requirement.--No amounts may be provided under
this subsection unless specifically provided in
appropriations Acts.''.
(c) Conforming Amendments.--
(1) Section 18 of the National School Lunch Act (42 U.S.C.
1769), as amended by subsections (a) and (b), is further amended
by redesignating subsections (d), (f ), and (i) as subsections
(c), (d), and (e), respectively.
[[Page 112 STAT. 3157]]
(2) Section 101(b) of the Child Nutrition Amendments of 1992
(42 U.S.C. 1769 note; Public Law 102-342) is amended--
(A) in paragraph (1)--
(i) by striking ``(1)''; and
(ii) by striking ``other than those required
under section 18(c) of the National School Lunch
Act (42 U.S.C. 1769(c)) to identify other'' and
inserting ``to identify''; and
(B) by striking paragraph (2).
SEC. 110. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE MANAGEMENT
INSTITUTE.
(a) Technical Amendments.--Section 21(c)(2) of the National School
Lunch Act (42 U.S.C. 1769b-1(c)(2)) is amended by striking ``of section
24'' each place it appears in subparagraphs (F) and (H) and inserting
``established by the Secretary''.
(b) Training and Technical Assistance.--Section 21(e)(1) of the
National School Lunch Act (42 U.S.C. 1769b-1(e)(1)) is amended by
striking ``1998'' and inserting ``2003''.
(c) Food Service Management Institute.--Section 21(e)(2)(A) of the
National School Lunch Act (42 U.S.C. 1769b-1(e)(2)(A)) is amended in the
first sentence by striking ``and $2,000,000 for fiscal year 1996 and
each subsequent fiscal year,'' and inserting ``$2,000,000 for each of
fiscal years 1996 through 1998, and $3,000,000 for fiscal year 1999 and
each subsequent fiscal year,''.
SEC. 111. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the National School Lunch Act (42 U.S.C. 1769c(d))
is amended by striking ``1996'' and inserting ``2003''.
SEC. 112. INFORMATION CLEARINGHOUSE.
Section 26(d) of the National School Lunch Act (42 U.S.C. 1769g(d))
is amended in the first sentence by striking ``and $100,000 for fiscal
year 1998'' and inserting ``$100,000 for fiscal year 1998, and $166,000
for each of fiscal years 1999 through 2003''.
SEC. 113. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH
DISABILITIES.
Section 27 of the National School Lunch Act (42 U.S.C. 1769h) is
amended to read as follows:
``SEC. 27. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS
WITH DISABILITIES.
``(a) Definitions.--In this section:
``(1) Covered program.--The term `covered program' means--
``(A) the school lunch program authorized under this
Act;
``(B) the school breakfast program authorized under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773); and
``(C) any other program authorized under this Act or
the Child Nutrition Act of 1966 (except for section 17)
that the Secretary determines is appropriate.
``(2) Eligible entity.--The term `eligible entity' means a
school food authority, institution, or service institution that
participates in a covered program.
[[Page 112 STAT. 3158]]
``(b) Activities.--The Secretary may carry out activities to help
accommodate the special dietary needs of individuals with disabilities
who are participating in a covered program. The activities may include--
``(1) developing and disseminating to State agencies
guidance and technical assistance materials;
``(2) conducting training of State agencies and eligible
entities; and
``(3) providing grants to State agencies and eligible
entities.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 1999 through 2003.''.
TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS
SEC. 201. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
Section 4(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(a))
is amended in the first sentence by striking ``and to carry out the
provisions of subsection (g)''.
SEC. 202. STATE ADMINISTRATIVE EXPENSES.
(a) Homeless Shelters.--Section 7(a)(5)(B) of the Child Nutrition
Act of 1966 (42 U.S.C. 1776(a)(5)(B)) is amended to read as follows:
``(B) Reallocation of funds.--
``(i) Return to secretary.--For each fiscal
year, any amounts appropriated that are not
obligated or expended during the fiscal year and
are not carried over for the succeeding fiscal
year under subparagraph (A) shall be returned to
the Secretary.
``(ii) Reallocation by secretary.--The
Secretary shall allocate, for purposes of
administrative costs, any remaining amounts among
States that demonstrate a need for the amounts.''.
(b) Elimination of 10 Percent Transfer Limitation.--
Section 7(a)(6) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)(6)) is amended to read as follows:
``(6) Use of administrative funds.--Funds available to a
State under this subsection and under section 13(k)(1) of the
National School Lunch Act (42 U.S.C. 1761(k)(1)) may be used by
the State for the costs of administration of the programs
authorized under this Act (except for the programs authorized
under sections 17 and 21) and the National School Lunch Act (42
U.S.C. 1751 et seq.) without regard to the basis on which the
funds were earned and allocated.''.
(c) Reauthorization of Program.--Section 7(g) of the Child Nutrition
Act of 1966 (42 U.S.C. 1776(g)) is amended by striking ``1998'' and
inserting ``2003''.
SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND
CHILDREN.
(a) Additional Requirements for Applicants.--
(1) Physical presence requirement.--Section 17(d)(3) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by
adding at the end the following:
[[Page 112 STAT. 3159]]
``(C) Physical presence.--
``(i) In general.--Except as provided in
clause (ii) and subject to the requirements of the
Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), each
individual seeking certification or
recertification for participation in the program
shall be physically present at each certification
or recertification determination in order to
determine eligibility under the program.
``(ii) Waivers.--If the agency determines that
the requirement of clause (i) would present an
unreasonable barrier to participation, a local
agency may waive the requirement of clause (i)
with respect to--
``(I) an infant or child who--
``(aa) was present at the
initial certification visit; and
``(bb) is receiving ongoing
health care from a provider
other than the local agency; or
``(II) an infant or child who--
``(aa) was present at the
initial certification visit;
``(bb) was present at a
certification or recertification
determination within the 1-year
period ending on the date of the
certification or recertification
determination described in
clause (i); and
``(cc) has one or more
parents who work.''.
(2) Income documentation requirement.--Section 17(d)(3) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as
amended by paragraph (1), is further amended by adding at the
end the following:
``(D) Income documentation.--
``(i) In general.--Except as provided in
clause (ii), in order to participate in the
program pursuant to clause (i) of paragraph
(2)(A), an individual seeking certification or
recertification for participation in the program
shall provide documentation of family income.
``(ii) Waivers.--A State agency may waive the
documentation requirement of clause (i), in
accordance with criteria established by the
Secretary, with respect to--
``(I) an individual for whom the
necessary documentation is not
available; or
``(II) an individual, such as a
homeless woman or child, for whom the
agency determines the requirement of
clause (i) would present an unreasonable
barrier to participation.''.
(3) Adjunct documentation requirement.--Section 17(d)(3) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as
amended by paragraph (2), is further amended by adding at the
end the following:
``(E) Adjunct documentation.--In order to
participate in the program pursuant to clause (ii) or
(iii) of paragraph (2)(A), an individual seeking
certification or recertification for participation in
the program shall provide documentation of receipt of
assistance described in that clause.''.
[[Page 112 STAT. 3160]]
(b) Education and Educational Materials Relating to Effects of Drug
and Alcohol Use.--Section 17(e)(1) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(e)(1)) is amended by adding at the end the following:
``A local agency participating in the program shall provide education or
educational materials relating to the effects of drug and alcohol use by
a pregnant, postpartum, or breastfeeding woman on the developing child
of the woman.''.
(c) Distribution of Nutrition Education Materials.--
Section 17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(e)(3)) is amended--
(1) by striking ``(3) The'' and inserting the following:
``(3) Nutrition education materials.--
``(A) In general.--The''; and
(2) by adding at the end the following:
``(B) Sharing of materials.--The Secretary may
provide, in bulk quantity, nutrition education materials
(including materials promoting breastfeeding) developed
with funds made available for the program authorized
under this section to State agencies administering the
commodity supplemental food program authorized under
sections 4(a) and 5 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note; Public Law
93-86) at no cost to that program.''.
(d) Use of Claims From Vendors and Participants.--Section 17(f )(21)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f )(21)) is amended
to read as follows:
``(21) Use of claims from vendors and participants.--A State
agency may use funds recovered from vendors and participants, as
a result of a claim arising under the program, to carry out the
program during--
``(A) the fiscal year in which the claim arises;
``(B) the fiscal year in which the funds are
collected; and
``(C) the fiscal year following the fiscal year in
which the funds are collected.''.
(e) Individuals Participating at More Than One Site.--Section 17(f )
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f )) is amended by
adding at the end the following:
``(23) Individuals participating at more than one site.--
Each State agency shall implement a system designed by the State
agency to identify individuals who are participating at more
than one site under the program.''.
(f ) Identification of High Risk Vendors; Compliance
Investigations.--
(1) In general.--Section 17(f ) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(f )), as amended by subsection (e), is
further amended by adding at the end the following:
``(24) High risk vendors.--Each State agency shall--
``(A) identify vendors that have a high probability
of program abuse; and
``(B) conduct compliance investigations of the
vendors.''.
(2) <<NOTE: Deadlines. 42 USC 1786 note.>> Regulations.--
The Secretary of Agriculture shall promulgate--
(A) not later than March 1, 1999, proposed
regulations to carry out section 17(f )(24) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f )(24)), as added
by paragraph (1); and
[[Page 112 STAT. 3161]]
(B) not later than March 1, 2000, final regulations
to carry out section 17(f )(24) of that Act.
(g) Reauthorization of Program.--Section 17(g)(1) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended in the first
sentence by striking ``1998'' and inserting ``2003''.
(h) Purchase of Breast Pumps.--Section 17(h)(1)(C) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(C)) is amended--
(1) by striking ``(C) In'' and inserting the following:
``(C) Remaining amounts.--
``(i) In general.--Except as provided in
clause (ii), in''; and
(2) by adding at the end the following:
``(ii) Breast pumps.--A State agency may use
amounts made available under clause (i) for the
purchase of breast pumps.''.
(i) Nutrition Services and Administration.--
(1) Allocation of amounts.--Section 17(h)(2)(A) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended in
the first sentence by striking ``1998'' and inserting ``2003''.
(2) Technical amendment.--Section 17(h)(2)(A)(iv) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)(iv)) is
amended by striking ``, to the extent funds are not already
provided under subparagraph (I)(v) for the same purpose,''.
(3) Level of per-participant expenditure for nutrition
services and administration.--Section 17(h)(2)(B)(ii) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(B)(ii)) is
amended by striking ``15 percent'' and inserting ``10 percent
(except that the Secretary may establish a higher percentage for
State agencies that are small)''.
(4) Technical amendments.--Section 17(h)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended--
(A) in subparagraph (E), by striking ``In the case''
and all that follows through ``subsequent fiscal year,''
and inserting ``For each fiscal year,''; and
(B) by striking subparagraphs (F) and (G).
(5) Conversion of amounts for supplemental foods to amounts
for nutrition services and administration.--Section 17(h)(5)(A)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(5)(A)) is
amended in the matter preceding clause (i) by striking
``achieves'' and all that follows through ``such State agency
may'' and inserting ``submits a plan to reduce average food
costs per participant and to increase participation above the
level estimated for the State agency, the State agency may, with
the approval of the Secretary,''.
( j) Infant Formula Procurement.--Section 17(h)(8)(A) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is amended by adding at
the end the following:
``(iii) Competitive bidding system.--A State
agency using a competitive bidding system for
infant formula shall award contracts to bidders
offering the lowest net price unless the State
agency demonstrates to the satisfaction of the
Secretary that the weighted average retail price
for different brands of infant formula in the
State does not vary by more than 5 percent.''.
(k) Infrastructure and Breastfeeding Promotion and Support
Activities.--Section 17(h)(10)(A) of the Child Nutrition Act
[[Page 112 STAT. 3162]]
of 1966 (42 U.S.C. 1786(h)(10)(A)) is amended by striking ``1998'' and
inserting ``2003''.
(l) Consideration of Price Levels of Retail Stores for Participation
in Program.--
(1) In general.--Section 17(h) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)) is amended by adding at the end the
following:
``(11) Consideration of price levels of retail stores for
participation in program.--
``(A) In general.--For the purpose of promoting
efficiency and to contain costs under the program, a
State agency shall, in selecting a retail store for
participation in the program, take into consideration
the prices that the store charges for foods under the
program as compared to the prices that other stores
charge for the foods.
``(B) <<NOTE: Procedures.>> Subsequent price
increases.--The State agency shall establish procedures
to ensure that a retail store selected for participation
in the program does not subsequently raise prices to
levels that would otherwise make the store ineligible
for participation in the program.''.
(2) <<NOTE: Deadlines. 42 USC 1786 note.>> Regulations.--
The Secretary of Agriculture shall promulgate--
(A) not later than March 1, 1999, proposed
regulations to carry out section 17(h)(11) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(11)), as added
by paragraph (1); and
(B) not later than March 1, 2000, final regulations
to carry out section 17(h)(11) of that Act.
(m) Management Information System Plan.--Section 17(h) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)), as amended by subsection
(l)(1), is further amended by adding at the end the following:
``(12) Management information system plan.--
``(A) In general.--In consultation with State
agencies, vendors, and other interested persons, the
Secretary shall establish a long-range plan for the
development and implementation of management information
systems (including electronic benefit transfers) to be
used in carrying out the program.
``(B) <<NOTE: Deadline.>> Report.--Not later than 2
years after the date of enactment of this paragraph, the
Secretary shall submit to the Committee on Education and
the Workforce of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on actions taken to carry out
subparagraph (A).
``(C) Interim period.--Prior to the date of
submission of the report of the Secretary required under
subparagraph (B), a State agency may not require retail
stores to pay the cost of systems or equipment that may
be required to test electronic benefit transfer
systems.''.
(n) Use of Funds in Preceding and Subsequent Fiscal Years.--
(1) In general.--Section 17(i)(3)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(i)(3)(A)) is amended--
(A) by striking ``subparagraphs (B) and (C)'' and
inserting ``subparagraph (B)''; and
[[Page 112 STAT. 3163]]
(B) by striking clauses (i) and (ii) and inserting
the following:
``(i)(I) not more than 1 percent (except as provided in
subparagraph (C)) of the amount of funds allocated to a State
agency under this section for supplemental foods for a fiscal
year may be expended by the State agency for allowable expenses
incurred under this section for supplemental foods during the
preceding fiscal year; and
``(II) not more than 1 percent of the amount of funds
allocated to a State agency under this section for nutrition
services and administration for a fiscal year may be expended by
the State agency for allowable expenses incurred under this
section for supplemental foods and nutrition services and
administration during the preceding fiscal year; and
``(ii)(I) for each fiscal year, of the amounts allocated to
a State agency for nutrition services and administration, an
amount equal to not more than 1 percent of the amount allocated
to the State agency under this section for the fiscal year may
be expended by the State agency for allowable expenses incurred
under this section for nutrition services and administration
during the subsequent fiscal year; and
``(II) for each fiscal year, of the amounts allocated to a
State agency for nutrition services and administration, an
amount equal to not more than \1/2\ of 1 percent of the amount
allocated to the State agency under this section for the fiscal
year may be expended by the State agency, with the prior
approval of the Secretary, for the development of a management
information system, including an electronic benefit transfer
system, during the subsequent fiscal year.''.
(2) Conforming amendments.--Section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786) is amended--
(A) in subsection (h)(10)(A), by inserting after
``nutrition services and administration funds'' the
following: ``and supplemental foods funds''; and
(B) in subsection (i)(3)--
(i) by striking subparagraphs (C) through (G);
and
(ii) by redesignating subparagraph (H) as
subparagraph (C).
(o) Farmers' Market Nutrition Program.--
(1) Matching requirement.--Section 17(m)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended in the
first sentence by inserting ``program income or'' after
``satisfied from''.
(2) Criteria for additional funds.--Section 17(m)(6)(C) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(C)) is
amended--
(A) by striking ``serve additional recipients in'';
(B) by striking clause (ii) and inserting the
following:
``(ii) documentation that demonstrates that--
``(I) there is a need for an increase in funds; and
``(II) the use of the increased funding will be
consistent with serving nutritionally at-risk persons
and expanding the awareness and use of farmers'
markets;'';
(C) in clause (iii), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
[[Page 112 STAT. 3164]]
``(iv) whether, in the case of a State that intends to use
any funding provided under subparagraph (G)(i) to increase the
value of the Federal share of the benefits received by a
recipient, the funding provided under subparagraph (G)(i) will
increase the rate of coupon redemption.''.
(3) Ranking criteria for state plans.--Section 17(m)(6) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is
amended--
(A) by striking subparagraph (F); and
(B) by redesignating subparagraph (G) as
subparagraph (F).
(4) Funding for current and new states.--Section 17(m)(6)(F)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(F)), as
redesignated by paragraph (3)(B), is
amended--
(A) in clause (i)--
(i) in the first sentence, by striking ``that
wish'' and all follows through ``to do so'' and
inserting ``whose State plan''; and
(ii) in the second sentence, by striking ``for
additional recipients''; and
(B) in the second sentence of clause (ii), by
striking ``that desire to serve additional recipients,
and''.
(5) Reauthorization of program.--Section 17(m)(9)(A) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended
by striking ``1998'' and inserting ``2003''.
(p) Disqualification of Certain Vendors.--
(1) In general.--Section 17 of the Child Nutrition Act of
1966 (42 U.S.C. 1786) is amended by adding at the end the
following:
``(o) Disqualification of Vendors Convicted of Trafficking or
Illegal Sales.--
``(1) In general.--Except as provided in paragraph (4), a
State agency shall permanently disqualify from participation in
the program authorized under this section a vendor convicted
of--
``(A) trafficking in food instruments (including any
voucher, draft, check, or access device (including an
electronic benefit transfer card or personal
identification number) issued in lieu of a food
instrument under this section); or
``(B) selling firearms, ammunition, explosives, or
controlled substances (as defined in section 102 of the
Controlled Substances Act (21 U.S.C. 802)) in exchange
for food instruments (including any item described in
subparagraph (A) issued in lieu of a food instrument
under this section).
``(2) Notice of disqualification.--The State agency shall--
``(A) provide the vendor with notification of the
disqualification; and
``(B) make the disqualification effective on the
date of receipt of the notice of disqualification.
``(3) Prohibition of receipt of lost revenues.--A vendor
shall not be entitled to receive any compensation for revenues
lost as a result of disqualification under this subsection.
``(4) Exceptions in lieu of disqualification.--
[[Page 112 STAT. 3165]]
``(A) In general.--A State agency may permit a
vendor that, but for this paragraph, would be
disqualified under paragraph (1), to continue to
participate in the program if the State agency
determines, in its sole discretion according to criteria
established by the Secretary, that--
``(i) disqualification of the vendor would
cause hardship to participants in the program
authorized under this section; or
``(ii)(I) the vendor had, at the time of the
violation under paragraph (1), an effective policy
and program in effect to prevent violations
described in paragraph (1); and
``(II) the ownership of the vendor was not
aware of, did not approve of, and was not involved
in the conduct of the violation.
``(B) Civil penalty.--If a State agency under
subparagraph (A) permits a vendor to continue to
participate in the program in lieu of disqualification,
the State agency shall assess the vendor a civil penalty
in an amount determined by the State agency, in
accordance with criteria established by the Secretary,
except that--
``(i) the amount of the civil penalty shall
not exceed $10,000 for each violation; and
``(ii) the amount of civil penalties imposed
for violations investigated as part of a single
investigation may not exceed $40,000.''.
(2) <<NOTE: Deadlines. 42 USC 1786 note.>> Regulations.--
The Secretary of Agriculture shall promulgate--
(A) not later than March 1, 1999, proposed
regulations to carry out section 17(o) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(o)), as added by
paragraph (1); and
(B) not later than March 1, 2000, final regulations
to carry out section 17(o) of that Act.
(q) Criminal Forfeiture.--Section 17 of the Child Nutrition Act of
1966 (42 U.S.C. 1786), as amended by subsection (p)(1), is amended by
adding at the end the following:
``(p) Criminal Forfeiture.--
``(1) In general.--Notwithstanding any provision of State
law and in addition to any other penalty authorized by law, a
court may order a person that is convicted of a violation of a
provision of law described in paragraph (2), with respect to
food instruments (including any item described in subsection
(o)(1)(A) issued in lieu of a food instrument under this
section), funds, assets, or property that have a value of $100
or more and that are the subject of a grant or other form of
assistance under this section, to forfeit to the United States
all property described in paragraph (3).
``(2) Applicable laws.--A provision of law described in this
paragraph is--
``(A) section 12(g) of the National School Lunch Act
(42 U.S.C. 1760(g)); and
``(B) any other Federal law imposing a penalty for
embezzlement, willful misapplication, stealing,
obtaining by fraud, or trafficking in food instruments
(including any item described in subsection (o)(1)(A)
issued in lieu of a food instrument under this section),
funds, assets, or property.
[[Page 112 STAT. 3166]]
``(3) Property subject to forfeiture.--The following
property shall be subject to forfeiture under paragraph (1):
``(A) All property, real and personal, used in a
transaction or attempted transaction, to commit, or to
facilitate the commission of, a violation described in
paragraph (1).
``(B) All property, real and personal, constituting,
derived from, or traceable to any proceeds a person
obtained directly or indirectly as a result of a
violation described in paragraph (1).
``(4) Procedures; interest of owner.--Except as provided in
paragraph (5), all property subject to forfeiture under this
subsection, any seizure or disposition of the property, and any
proceeding relating to the forfeiture, seizure, or disposition
shall be subject to section 413 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C. 853), other than
subsection (d) of that section.
``(5) Proceeds.--The proceeds from any sale of forfeited
property and any amounts forfeited under this subsection shall
be used--
``(A) first, to reimburse the Department of Justice,
the Department of the Treasury, and the United States
Postal Service for the costs incurred by the Departments
or Service to initiate and complete the forfeiture
proceeding;
``(B) second, to reimburse the Office of Inspector
General of the Department of Agriculture for any costs
incurred by the Office in the law enforcement effort
resulting in the forfeiture;
``(C) third, to reimburse any Federal, State, or
local law enforcement agency for any costs incurred in
the law enforcement effort resulting in the forfeiture;
and
``(D) fourth, by the State agency to carry out
approval, reauthorization, and compliance investigations
of vendors.''.
(r) Study of Cost Containment Practices.-- <<NOTE: 42 USC 1786
note.>>
(1) In general.--The Secretary of Agriculture shall conduct
a study on the effect of cost containment practices established
by States under the special supplemental nutrition program for
women, infants, and children authorized under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786) for the selection
of vendors and approved food items (other than infant formula)
on--
(A) program participation;
(B) access and availability of prescribed foods;
(C) voucher redemption rates and actual food
selections by participants;
(D) participants on special diets or with specific
food allergies;
(E) participant use and satisfaction of prescribed
foods;
(F) achievement of positive health outcomes; and
(G) program costs.
(2) <<NOTE: Deadlines.>> Report.--The Secretary shall
submit to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate--
(A) not later than 2 years after the date of
enactment of this Act, an interim report describing the
results of the study conducted under paragraph (1); and
[[Page 112 STAT. 3167]]
(B) not later than 3 years after the date of
enactment of this Act, a final report describing the
results of the study conducted under paragraph (1).
(s) Study of WIC Services.-- <<NOTE: 42 USC 1786 note.>>
(1) In general.--The Comptroller General of the United
States shall conduct a study that assesses--
(A) the cost of delivering services under the
special supplemental nutrition program for women,
infants, and children authorized under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786), including
the costs of implementing and administering cost
containment efforts;
(B) the fixed and variable costs incurred by State
and local governments for delivering the services and
the extent to which those costs are charged to State
agencies;
(C) the quality of the services delivered, taking
into account the effect of the services on the health of
participants; and
(D) the costs incurred for personnel, automation,
central support, and other activities to deliver the
services and whether the costs meet Federal audit
standards for allowable costs under the program.
(2) <<NOTE: Deadline.>> Report.--Not later than 3 years
after the date of enactment of this Act, the Comptroller General
shall submit to the Secretary of Agriculture, the Committee on
Education and the Workforce of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report containing the results of the study conducted
under paragraph (1).
SEC. 204. NUTRITION EDUCATION AND TRAINING.
Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 1788(i))
is amended--
(1) by striking the subsection heading and all that follows
through paragraph (3)(A) and inserting the following:
``(i) Authorization of Appropriations.--
``(1) In general.--
``(A) Funding.--There are authorized to be
appropriated such sums as are necessary to carry out
this section for each of fiscal years 1997 through
2003.''; and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(2) and (3), respectively.
TITLE III--COMMODITY DISTRIBUTION PROGRAMS
SEC. 301. INFORMATION FROM RECIPIENT AGENCIES.
Section 3(f )(2) of the Commodity Distribution Reform Act and WIC
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended
to read as follows:
``(2) Information from recipient agencies.--
``(A) In general.--The Secretary shall ensure that
information with respect to the types and forms of
commodities that are most useful to persons
participating in programs described in subsection (a)(2)
is collected from recipient agencies operating the
programs.
[[Page 112 STAT. 3168]]
``(B) Frequency.--The information shall be collected
at least once every 2 years.
``(C) Additional submissions.--The Secretary shall
provide the recipient agencies a means for voluntarily
submitting customer acceptability information.''.
SEC. 302. FOOD DISTRIBUTION.
The Commodity Distribution Reform Act and WIC Amendments of 1987 (7
U.S.C. 612c note; Public Law 100-237) is amended--
(1) by redesignating sections 13 and 14 as sections 17 and
18, respectively; and
(2) by inserting after section 12 the following:
``SEC. 13. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.
``(a) Transfer.--Subject to subsection (b), the Secretary may
transfer any commodities purchased with appropriated funds for a
domestic food assistance program administered by the Secretary to any
other domestic food assistance program administered by the Secretary if
the transfer is necessary to ensure that the commodities will be used
while the commodities are still suitable for human consumption.
``(b) Reimbursement.--The Secretary shall, to the maximum extent
practicable, provide reimbursement for the value of the commodities
transferred under subsection (a) from accounts available for the
purchase of commodities under the program receiving the commodities.
``(c) Crediting.--Any reimbursement made under subsection (b)
shall--
``(1) be credited to the accounts that incurred the costs
when the transferred commodities were originally purchased; and
``(2) be available for the purchase of commodities with the
same limitations as are provided for appropriated funds for the
reimbursed accounts for the fiscal year in which the transfer
takes place.
``SEC. 14. AUTHORITY TO RESOLVE CLAIMS.
``(a) In General.--The Secretary may determine the amount of,
settle, and adjust all or part of a claim arising under a domestic food
assistance program administered by the Secretary.
``(b) Waiver.--The Secretary may waive a claim described in
subsection (a) if the Secretary determines that a waiver would serve the
purposes of the program.
``(c) Authority of the Attorney General.--Nothing in this section
diminishes the authority of the Attorney General under section 516 of
title 28, United States Code, or any other provision of law, to
supervise and conduct litigation on behalf of the United States.
``SEC. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF COMMODITIES THAT
POSE A HEALTH OR SAFETY RISK.
``(a) In General.--The Secretary may use funds available to carry
out section 32 of the Act of August 24, 1935 (49 Stat. 774, chapter 641;
7 U.S.C. 612c), that are not otherwise committed, for the purpose of
reimbursing States for State and local costs associated with the removal
of commodities distributed under any domestic food assistance program
administered by the Secretary
[[Page 112 STAT. 3169]]
if the Secretary determines that the commodities pose a health or safety
risk.
``(b) Allowable Costs.--The costs--
``(1) may include costs for storage, transportation,
processing, and destruction of the commodities described in
subsection (a); and
``(2) shall be subject to the approval of the Secretary.
``(c) Replacement Commodities.--
``(1) In general.--The Secretary may use funds described in
subsection (a) for the purpose of purchasing additional
commodities if the purchase will expedite replacement of the
commodities described in subsection (a).
``(2) Recovery.--Use of funds under paragraph (1) shall not
restrict the Secretary from recovering funds or services from a
supplier or other entity regarding the commodities described in
subsection (a).
``(d) Crediting of Recovered Funds.--Funds recovered from a supplier
or other entity regarding the commodities described in subsection (a)
shall--
``(1) be credited to the account available to carry out
section 32 of the Act of August 24, 1935 (49 Stat. 774, ch. 641;
7 U.S.C. 612c), to the extent the funds represent expenditures
from that account under subsections (a) and (c); and
``(2) remain available to carry out the purposes of section
32 of that Act until expended.
``(e) Termination Date.--The authority provided by this section
terminates effective October 1, 2000.
``SEC. 16. AUTHORITY TO ACCEPT COMMODITIES DONATED BY
FEDERAL SOURCES.
``(a) In General.--The Secretary may accept donations of commodities
from any Federal agency, including commodities of another Federal agency
determined to be excess personal property pursuant to section 202(d) of
the Federal Property and Administrative Services Act of 1949 (40 U.S.C.
483(d)).
``(b) Use.--The Secretary may donate the commodities received under
subsection (a) to States for distribution through any domestic food
assistance program administered by the Secretary.
``(c) Payment.--Notwithstanding section 202(d) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 483(d)), the
Secretary shall not be required to make any payment in connection with
the commodities received under subsection (a).''.
[[Page 112 STAT. 3170]]
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE. <<NOTE: 42 USC 1755 note.>>
Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on October 1, 1998.
Approved October 31, 1998.
LEGISLATIVE HISTORY--H.R. 3874 (S. 2286):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 105-633 (Comm. on Education and the Workforce) and
105-786 (Comm. of Conference).
SENATE REPORTS: No. 105-243 accompanying S. 2286 (Comm. on Agriculture,
Nutrition, and Forestry).
CONGRESSIONAL RECORD, Vol. 144 (1998):
July 20, considered and passed House.
Sept. 17, considered and passed Senate, amended, in lieu of
S. 2286.
Oct. 7, Senate agreed to conference report.
Oct. 9, House agreed to conference report.
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