I

103D CONGRESS

1ST SESSION H. R. 3242

To prohibit for a 5-year period the award of contracts for the procurement

of milk products for schools and military bases to companies convicted

of violating any of the antitrust laws in connection with a contract

with the Department of Defense or with any school or other institution

eligible for payments under the Child Nutrition Act of 1966 or the

National School Lunch Act.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1993

Mr. MILLER of California (for himself, Mr. FOGLIETTA, Mr. LIPINSKI, and

Mr. WYNN) introduced the following bill; which was referred jointly to the

Committees on Education and Labor and Armed Services

A BILL

To prohibit for a 5-year period the award of contracts for

the procurement of milk products for schools and military bases to companies convicted of violating any of

the antitrust laws in connection with a contract with

the Department of Defense or with any school or other

institution eligible for payments under the Child Nutrition Act of 1966 or the National School Lunch Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. AMENDMENTS TO THE CHILD NUTRITION ACT

2 OF 1966 AND THE NATIONAL SCHOOL LUNCH

3 ACT.

4 (a) CHILD NUTRITION ACT OF 1966.—Section 11 of

5 the Child Nutrition Act of 1966 (42 U.S.C. 1780) is

6 amended by adding at the end the following new sub7 section:

8 ‘‘(c)(1) A school or other institution eligible for pay9 ments under this Act may not contract with—

10 ‘‘(A) a company that is convicted of violating

11 any of the antitrust laws in connection with a con12 tract with any such school or institution for the pro13 curement of milk; or

14 ‘‘(B) any other company, unless such company

15 agrees not to enter into a subcontract for the per16 formance of such contract with any company de17 scribed in subparagraph (A).

18 ‘‘(2) The prohibition in paragraph (1) shall apply for

19 a period of not less than 5 years after the date of the

20 conviction.

21 ‘‘(3) The term ‘antitrust laws’ has the meaning given

22 to such term in subsection (a) of the first section of the

23 Clayton Act (15 U.S.C. 12(a)), except that such term in24 cludes—
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1 ‘‘(A) section 5 of the Federal Trade Commis2 sion Act (15 U.S.C. 45) to the extent that such sec3 tion 5 applies to unfair methods of competition; and

4 ‘‘(B) any State law similar to the antitrust

5 laws.’’.

6 (b) NATIONAL SCHOOL LUNCH ACT.—Section 9 of

7 the National School Lunch Act (42 U.S.C. 1758) is

8 amended by adding at the end the following new sub9 section:

10 ‘‘(f)(1) A school or food service authority participat11 ing in a program under this Act may not contract with—

12 ‘‘(A) a company that is convicted of violating

13 any of the antitrust laws in connection with a con14 tract with any such school or food service authority

15 for the procurement of milk; or

16 ‘‘(B) any other company, unless such company

17 agrees not to enter into a subcontract for the per18 formance of such contract with any company de19 scribed in subparagraph (A).

20 ‘‘(2) The prohibition in paragraph (1) shall apply for

21 a period of not less than 5 years after the date of the

22 conviction.

23 ‘‘(3) The term ‘antitrust laws’ has the meaning given

24 to such term in subsection (a) of the first section of the
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1 Clayton Act (15 U.S.C. 12(a)), except that such term in2 cludes—

3 ‘‘(A) section 5 of the Federal Trade Commis4 sion Act (15 U.S.C. 45) to the extent that such sec5 tion 5 applies to unfair methods of competition; and

6 ‘‘(B) any State law similar to the antitrust

7 laws.’’.

8 SEC. 2. REQUIREMENT TO DEBAR FROM CONTRACTING

9 WITH THE DEPARTMENT OF DEFENSE COM10 PANIES CONVICTED OF BID RIGGING ON

11 MILK CONTRACTS.

12 (a) REQUIREMENT TO DEBAR.—The Secretary of

13 Defense shall debar from contracting or subcontracting

14 with the Department of Defense a company that is con15 victed of violating any of the antitrust laws in connection

16 with a contract with the Department of Defense for the

17 procurement of milk.

18 (b) PERIOD OF DEBARMENT.—The debarment re19 quired by subsection (a) shall apply for a period of not

20 less than five years after the date of the conviction.

21 (c) DEFINITION OF ANTITRUST LAWS.—The term

22 ‘‘antitrust laws’’ has the meaning given to such term in

23 subsection (a) of the first section of the Clayton Act (15

24 U.S.C. 12(a)), except that such term includes—
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1 (1) section 5 of the Federal Trade Commission

2 Act (15 U.S.C. 45) to the extent that such section

3 5 applies to unfair methods of competition; and

4 (2) any State law similar to the antitrust laws.

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