II

103D CONGRESS

1ST SESSION S. 1614

To amend the Child Nutrition Act of 1966 and the National School Lunch

Act to promote healthy eating habits for children and to extend certain

authorities contained in such Acts through fiscal year 1998, and for

other purposes.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 2, 1993

Mr. LEAHY (for himself, Mr. HARKIN, Mr. DASCHLE, Mr. ROCKEFELLER, and

Mr. JEFFORDS) introduced the following bill; which was read twice and

referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Child Nutrition Act of 1966 and the National

School Lunch Act to promote healthy eating habits for

children and to extend certain authorities contained in

such Acts through fiscal year 1998, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Better Nutrition and Health for Children Act of 1993’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

TITLE I—SPECIAL NUTRITION PROGRAM FOR WOMEN, INFANTS,

AND CHILDREN

Sec. 101. Full funding for WIC.

Sec. 102. WIC breastfeeding promotion.

Sec. 103. Expansion of WIC farmers’ market program.

Sec. 104. Technical amendments.

TITLE II—SCHOOL BREAKFAST AND RELATED PROGRAMS

Sec. 201. Providing milk to low-income children.

Sec. 202. Elimination of cost basis for severe need reimbursement.

Sec. 203. Low-fat yogurt as an allowable choice.

Sec. 204. Promotion of school breakfast program.

Sec. 205. Startup costs for school breakfast program.

Sec. 206. Expansion of school breakfast programs.

Sec. 207. State administrative expenses.

Sec. 208. Clarification of authority to ban junk foods.

Sec. 209. Nutrition education and training program.

TITLE III—SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 301. Elimination of whole milk requirement.

Sec. 302. Low-fat yogurt as an allowable choice.

Sec. 303. Reports on increasing consumption of healthy foods in school lunches.

Sec. 304. Information to parents concerning importance of nutrition.

Sec. 305. Income guidelines for free lunches served to elementary school students.

Sec. 306. School flexibility.

Sec. 307. Automatic eligibility of Head Start participants.

Sec. 308. Special assistance payments.

Sec. 309. Promotion of healthy eating habits for children.

Sec. 310. Organic foods.

Sec. 311. Food and nutrition projects.

Sec. 312. Summer food service program for children.

Sec. 313. Commodity distribution program.

Sec. 314. Child and adult care food program.

Sec. 315. Meal supplements for children in afterschool care.

Sec. 316. Demonstration projects to improve food service for homeless children.

Sec. 317. Pilot program to increase offerings of fruits and vegetables.

Sec. 318. Pilot program to increase consumption of low-fat dairy products and

lean meats.

Sec. 319. Pilot projects for fortified fluid milk; information on fortified milk.

Sec. 320. Food service management institute and other institutions.

Sec. 321. Compliance and accountability.

Sec. 322. Nutrition guidance for child nutrition programs.

Sec. 323. Information clearinghouse.

TITLE IV—PROGRAM INTEGRITY

Sec. 401. Findings.

Sec. 402. Duties of the Secretary relating to anticompetitive activities.

Sec. 403. Prevention and control of anticompetitive activities.

TITLE V—EFFECTIVE DATES
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Sec. 501. Effective dates.

1 TITLE I—SPECIAL NUTRITION

2 PROGRAM FOR WOMEN, IN3 FANTS, AND CHILDREN

4 SEC. 101. FULL FUNDING FOR WIC.

5 Section 17 of the Child Nutrition Act of 1966 (42

6 U.S.C. 1786) is amended—

7 (1) in the second sentence of subsection (a)—

8 (A) by striking ‘‘authorized’’ and inserting

9 ‘‘established’’; and

10 (B) by striking ‘‘, up to the authorization

11 levels set forth in subsection (g) of this sec12 tion,’’;

13 (2) in subsection (c)—

14 (A) in the first sentence of paragraph (1),

15 by striking ‘‘may’’ and inserting ‘‘shall’’; and

16 (B) in paragraph (2), by striking ‘‘appro17 priated’’ and inserting ‘‘made available’’;

18 (3) in subsection (g)—

19 (A) by striking paragraph (1) and insert20 ing the following new paragraph:

21 ‘‘(1)(A) There are authorized to be—

22 ‘‘(i) appropriated to carry out this section such

23 amounts as are necessary for each of fiscal years

24 1995 through 2000; and
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1 ‘‘(ii) made available such amounts as are nec2 essary for the Secretary of the Treasury to fulfill the

3 requirements of subparagraph (B).

4 ‘‘(B)(i) For each of fiscal years 1996 through 2000,

5 the Secretary of the Treasury shall credit to a special fund

6 of the Treasury an amount equal to—

7 ‘‘(I) $254,000,000 for fiscal year 1996;

8 ‘‘(II) $407,000,000 for fiscal year 1997;

9 ‘‘(III) $384,000,000 for fiscal year 1998;

10 ‘‘(IV) $398,000,000 for fiscal year 1999; and

11 ‘‘(V) $411,000,000 for fiscal year 2000.

12 ‘‘(ii) Amounts in the fund—

13 ‘‘(I) shall be available only for the program au14 thorized under this section, exclusive of activities au15 thorized under subsection (m); and

16 ‘‘(II) shall be paid to the Secretary to carry out

17 subclause (I).

18 ‘‘(iii) For a fiscal year specified in clause (i), the

19 amount credited to the fund for the fiscal year shall be

20 available for use in the program only if appropriations

21 Acts for the fiscal year, without the addition of amounts

22 provided under clause (i) for the fund, provide new budget

23 authority for the program of no less than—

24 ‘‘(I) $3,660,000,000 for fiscal year 1996;

25 ‘‘(II) $3,759,000,000 for fiscal year 1997;
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1 ‘‘(III) $3,861,000,000 for fiscal year 1998;

2 ‘‘(IV) $3,996,000,000 for fiscal year 1999; and

3 ‘‘(V) $4,126,000,000 for fiscal year 2000.

4 ‘‘(C) As authorized by section 3 of the National

5 School Lunch Act (42 U.S.C. 1752), funds made available

6 to carry out this section shall remain available until ex7 pended.’’;

8 (B) in the first sentence of paragraph (4),

9 by striking ‘‘appropriated’’ and inserting ‘‘made

10 available’’; and

11 (C) in paragraph (5), by striking ‘‘appro12 priated’’ and inserting ‘‘made available’’;

13 (4) in subsection (h)—

14 (A) in paragraph (1)—

15 (i) in subparagraph (A), by striking

16 ‘‘appropriated’’ both places it appears and

17 inserting ‘‘made available’’; and

18 (ii) in subparagraph (C), by striking

19 ‘‘appropriated’’ both places it appears and

20 inserting ‘‘made available’’; and

21 (B) in the first sentence of paragraph

22 (2)(A), by striking ‘‘1990, 1991, 1992, 1993

23 and 1994’’ and inserting ‘‘1990 through 2000’’;

24 and
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1 (5) in subsection (l), by striking ‘‘funds appro2 priated’’ and inserting ‘‘funds made available’’.

3 SEC. 102. WIC BREASTFEEDING PROMOTION.

4 Section 17 of the Child Nutrition Act of 1966 (42

5 U.S.C. 1786) is amended—

6 (1) in subsection (d)(4)—

7 (A) by striking ‘‘and’’ at the end of sub8 paragraph (B);

9 (B) by redesignating subparagraph (C) as

10 subparagraph (D); and

11 (C) by inserting after subparagraph (B)

12 the following new subparagraph:

13 ‘‘(C) the rate of breastfeeding among

14 postpartum women participating in the program,

15 and expenditures for breastfeeding promotion; and’’;

16 and

17 (2) in subsection (h)(3)(A)—

18 (A) in clause (i)(II), by striking

19 ‘‘$8,000,000’’ and inserting ‘‘$16,000,000’’;

20 and

21 (B) in clause (ii), by inserting after ‘‘sup22 port activities’’ the following: ‘‘(including the

23 purchase of breast pumps)’’.
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1 SEC. 103. EXPANSION OF WIC FARMERS’ MARKET PRO2 GRAM.

3 (a) IN GENERAL.—Section 17(m) of the Child Nutri4 tion Act of 1966 (42 U.S.C. 1786(m)) is amended—

5 (1) in paragraph (3), by striking ‘‘30 percent’’

6 and inserting ‘‘25 percent’’;

7 (2) in paragraph (5)(C)(ii), by inserting before

8 the period at the end the following: ‘‘, except that

9 the Secretary, at the request of the State agency,

10 may increase the amount under unusual cir11 cumstances such as a natural disaster’’;

12 (3) in paragraph (5)(F)—

13 (A) in clause (i), by striking ‘‘15 percent’’

14 and inserting ‘‘17 percent’’;

15 (B) in clause (ii), by striking ‘‘2 percent’’

16 each place it appears and inserting ‘‘3 percent’’;

17 (C) by redesignating clause (iii) as clause

18 (iv); and

19 (D) by inserting after clause (ii) the follow20 ing new clause:

21 ‘‘(iii) During any fiscal year for which a State re22 ceives assistance under this subsection, the Secretary shall

23 permit the State to use 3 percent of total program funds

24 for market development (including the establishment of

25 additional farmers’ markets and the improvement and ex-
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1 pansion of participating markets) if the Secretary deter2 mines that the State intends to promote—

3 ‘‘(I) the development of farmers’ markets in so4 cially or economically disadvantaged areas where

5 residents have limited access to locally grown fruits

6 and vegetables; or

7 ‘‘(II) the participation of—

8 ‘‘(aa) socially disadvantaged farmers (as

9 defined in section 2501(e)(2) of the Food, Agri10 culture, Conservation, and Trade Act of 1990

11 (7 U.S.C. 2279(e)(2)));

12 ‘‘(bb) farmers located in very rural areas

13 (as defined by the Secretary); or

14 ‘‘(cc) farmers who own or operate small15 scale or limited-resource farms (as defined by

16 the Secretary).’’;

17 (4) in paragraph (10)(A), by striking ‘‘and

18 $8,000,000 for fiscal year 1994’’ and inserting

19 ‘‘$8,000,000 for fiscal year 1994, $10,500,000 for

20 fiscal year 1995, $12,500,000 for fiscal year 1996,

21 $15,000,000 for fiscal year 1997, and $18,000,000

22 for fiscal year 1998’’; and

23 (5) in paragraph (11)(D), by inserting before

24 the period at the end the following: ‘‘or any other
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1 agency approved by the chief executive officer of the

2 State’’.

3 (b) PROMOTION BY THE SECRETARY.—The Secretary

4 of Agriculture shall promote the use of farmers’ markets

5 by recipients of Federal nutrition programs administered

6 by the Secretary and shall annually report to the appro7 priate committees of Congress on the efforts of the Sec8 retary to carry out this subsection.

9 SEC. 104. TECHNICAL AMENDMENTS.

10 (a) CARRYOVER FUNDS.—Section 17(i)(3)(A) of the

11 Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)) is

12 amended by striking ‘‘1 percent’’ each place it appears in

13 clauses (i) and (ii) and inserting ‘‘3 percent’’.

14 (b) CHANGE OF NAME OF WIC PROGRAM.—

15 (1) IN GENERAL.—Section 17 of the Child Nu16 trition Act of 1966 (42 U.S.C. 1786) is amended—

17 (A) by striking the section heading and in18 serting the following new section heading:

19 ‘‘SPECIAL NUTRITION PROGRAM FOR WOMEN, INFANTS,

20 AND CHILDREN’’;

21 (B) in the first sentence of subsection

22 (c)(1), by striking ‘‘special supplemental food

23 program’’ and inserting ‘‘special nutrition pro24 gram’’;

25 (C) in the second sentence of subsection

26 (k)(1), by striking ‘‘special supplemental food
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1 program’’ each place it appears and inserting

2 ‘‘special nutrition program’’; and

3 (D) in subsection (o)(1)(B), by striking

4 ‘‘special supplemental food program’’ and in5 serting ‘‘special nutrition program’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) The second sentence of section 9(c) of

8 the Food Stamp Act of 1977 (7 U.S.C.

9 2018(c)) is amended by striking ‘‘special sup10 plemental food program for women, infants and

11 children’’ and inserting ‘‘special nutrition pro12 gram for women, infants, and children’’.

13 (B) Section 685(b)(8) of the Individuals

14 with Disabilities Education Act (20 U.S.C.

15 1484a(b)(8)) is amended by striking ‘‘Special

16 Supplemental Food Program for Women, In17 fants and Children’’ and inserting ‘‘special nu18 trition program for women, infants, and chil19 dren’’.

20 (C) Section 3803(c)(2)(C)(x) of title 31,

21 United States Code, is amended by striking

22 ‘‘special supplemental food program’’ and in23 serting ‘‘special nutrition program’’.

24 (D) Section 399(b)(6) of the Public Health

25 Service Act (42 U.S.C. 280c–6(b)(6)) is amend-
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1 ed by striking ‘‘special supplemental food pro2 gram’’ and inserting ‘‘special nutrition pro3 gram’’.

4 (E) Paragraphs (11)(C) and (53)(A) of

5 section 1902(a) of the Social Security Act (42

6 U.S.C. 1396a(a)) are each amended by striking

7 ‘‘special supplemental food program’’ and in8 serting ‘‘special nutrition program’’.

9 (F) Section 202 of the Children’s Nutri10 tion Assistance Act of 1992 (Public Law 102–

11 512; 42 U.S.C. 1786 note) is amended by strik12 ing ‘‘special supplemental food program’’ each

13 place it appears and inserting ‘‘special nutrition

14 program’’.

15 TITLE II—SCHOOL BREAKFAST

16 AND RELATED PROGRAMS

17 SEC. 201. PROVIDING MILK TO LOW-INCOME CHILDREN.

18 Section 3(a)(2) of the Child Nutrition Act of 1966

19 (42 U.S.C. 1772(a)(2)) is amended—

20 (1) by inserting ‘‘(A)’’ after ‘‘shall not apply

21 to’’;

22 (2) by striking ‘‘kindergarten’’; and

23 (3) by inserting before the period at the end the

24 following: ‘‘, (B) elementary schools in which at least

25 60 percent of the children participating in the school
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1 lunch program authorized under the National School

2 Lunch Act (42 U.S.C. 1751 et seq.) are eligible for

3 free or reduced price lunches, or (C) schools that do

4 not participate in the school lunch program but that

5 participate in the school breakfast program author6 ized under this Act’’.

7 SEC. 202. ELIMINATION OF COST BASIS FOR SEVERE NEED

8 REIMBURSEMENT.

9 Section 4(d) of the Child Nutrition Act of 1966 (42

10 U.S.C. 1773(d)) is amended—

11 (1) in paragraph (1)(B), by striking ‘‘, and in

12 which’’ and all that follows through ‘‘program’’; and

13 (2) by striking paragraph (2) and inserting the

14 following new paragraph:

15 ‘‘(2) If at least 40 percent of the students at a school

16 who participate in the school lunch program established

17 under the National School Lunch Act (42 U.S.C. 1751

18 et seq.) are eligible to receive meals at free or reduced

19 prices, the school shall be entitled to receive the meal reim20 bursement rate specified in subsection (b)(2).’’.

21 SEC. 203. LOW-FAT YOGURT AS AN ALLOWABLE CHOICE.

22 Section 4(e)(1) of the Child Nutrition Act of 1966

23 (42 U.S.C. 1773(e)(1)) is amended by adding at the end

24 the following new sentences: ‘‘The Secretary shall permit

25 schools to offer low-fat yogurt as an alternative for eggs,
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1 meats, or other meat alternatives in the school breakfast

2 program. The Secretary may require that the yogurt be

3 enriched with proteins or other nutrients.’’.

4 SEC. 204. PROMOTION OF SCHOOL BREAKFAST PROGRAM.

5 Section 4(f)(1) of the Child Nutrition Act of 1966

6 (42 U.S.C. 1773(f)(1)) is amended—

7 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and

8 (2) by adding at the end the following new sub9 paragraph:

10 ‘‘(B) In cooperation with State educational agencies,

11 the Secretary shall establish a program to promote the

12 school breakfast program by—

13 ‘‘(i) marketing the program in a manner that

14 expands participation in the program by schools and

15 students; and

16 ‘‘(ii) improving public education and outreach

17 efforts that enhance the public image of the pro18 gram.’’.

19 SEC. 205. STARTUP COSTS FOR SCHOOL BREAKFAST PRO20 GRAM.

21 Section 4(g)(1) of the Child Nutrition Act of 1966

22 (42 U.S.C. 1773(g)(1)) is amended—

23 (1) in the first sentence, by striking ‘‘and

24 $5,000,000 for each of the fiscal years 1991, 1992,

25 1993, and 1994,’’ and inserting ‘‘, $5,000,000 for
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1 each of fiscal years 1991 through 1994, and

2 $9,000,000 for each of fiscal years 1995 through

3 1998,’’; and

4 (2) by inserting after the first sentence the fol5 lowing new sentence: ‘‘Of the amounts made avail6 able under the preceding sentence for fiscal years

7 1995 through 1998, not more than $3,000,000 shall

8 be used to carry out the expansion program author9 ized by subsection (i) for each of fiscal years 1995

10 and 1996, and not more than $4,000,000 shall be

11 used to carry out the expansion program for each of

12 fiscal years 1997 and 1998.’’.

13 SEC. 206. EXPANSION OF SCHOOL BREAKFAST PROGRAMS.

14 Section 4 of the Child Nutrition Act of 1966 (42

15 U.S.C. 1773) is amended by adding at the end the follow16 ing new subsection:

17 ‘‘EXPANSION OF PROGRAMS

18 ‘‘(h)(1) With funds made available to carry out this

19 subsection under subsection (g)(1), the Secretary shall

20 make payments on a competitive basis to State edu21 cational agencies in a substantial number of States for dis22 tribution to eligible schools to assist the schools with ex23 penses incurred in expanding a school breakfast program

24 established under this section. Payments received under

25 this subsection shall be in addition to payments to which
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1 State educational agencies are entitled under subsection

2 (b).

3 ‘‘(2) In making payments under this subsection in

4 any fiscal year, the Secretary shall provide a preference

5 to State educational agencies that submit to the Sec6 retary—

7 ‘‘(A) a plan to expand school breakfast pro8 grams conducted in the State, including a descrip9 tion of—

10 ‘‘(i) the manner in which the agency will

11 provide technical assistance and funding to

12 schools in the State to expand the programs; or

13 ‘‘(ii) significant public or private resources

14 that have been assembled to carry out the ex15 pansion of the programs during the year; or

16 ‘‘(B) documentation of the need for—

17 ‘‘(i) equipment, including the purchase, re18 placement, or upgrading of equipment associ19 ated with expanding the school breakfast pro20 gram; or

21 ‘‘(ii) other needs, including a need for tem22 porary personnel, or funds to defray adminis23 trative or other costs associated with expanding

24 the school breakfast program.
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1 ‘‘(3) Subparagraphs (B) and (C) of subsection (g)(2),

2 and paragraphs (3) through (5) of subsection (g), shall

3 apply to payments made under this subsection.’’.

4 SEC. 207. STATE ADMINISTRATIVE EXPENSES.

5 Section 7 of the Child Nutrition Act of 1966 (42

6 U.S.C. 1776) is amended—

7 (1) in subsection (a)(2)—

8 (A) in the first sentence, by inserting after

9 ‘‘1 percent’’ the following: ‘‘plus $780,000,’’;

10 and

11 (B) in the second sentence, by striking

12 ‘‘September 30, 1981, or $100,000’’ and insert13 ing ‘‘September 30, 1993, or $175,000’’; and

14 (2) by striking subsection (h) and inserting the

15 following new subsection:

16 ‘‘(h)(1) In addition to the funds allocated pursuant

17 to the other provisions of this section, the Secretary shall

18 make available to each State, for administrative costs in19 curred for any fiscal year in connection with the distribu20 tion of commodities, an amount equal to not less than 1

percent, and not more than 11 21 ⁄2 percent, of the value of

22 the commodities distributed by the Secretary to each State

23 pursuant to this Act and the National School Lunch Act

24 (42 U.S.C. 1751 et seq).
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1 ‘‘(2) The allocation required under this subsection

2 shall be made to the State agency responsible for the dis3 tribution of commodities authorized under this Act and

4 the National School Lunch Act.’’.

5 SEC. 208. CLARIFICATION OF AUTHORITY TO BAN JUNK

6 FOODS.

7 Section 10 of the Child Nutrition Act of 1966 (42

8 U.S.C. 1779) is amended—

9 (1) by designating the first, second, and third

10 sentences as subsections (a), (b), and (c), respec11 tively;

12 (2) in subsection (b) (as so designated)—

13 (A) by striking ‘‘Such regulations’’ and in14 serting ‘‘(1) Except as provided in paragraph

15 (2), the regulations’’; and

16 (B) by adding at the end the following new

17 paragraphs:

18 ‘‘(2) The regulations shall authorize State agencies

19 and school food authorities to establish rules and policies

20 that are more stringent than the minimum requirements

21 imposed by the Secretary, including prohibiting or control22 ling the sale of any competitive foods throughout the

23 school campus at any time during the school day.

24 ‘‘(3) The Secretary shall develop and recommend to

25 each State agency and school food authority model lan-
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1 guage that bans the sale of competitive foods of minimal

2 nutritional value anywhere on school grounds before the

3 end of the last lunch period.’’.

4 SEC. 209. NUTRITION EDUCATION AND TRAINING PRO5 GRAM.

6 (a) USE OF FUNDS.—Section 19(f)(1) of the Child

7 Nutrition Act of 1966 (42 U.S.C. 1788(f)(1)) is amend8 ed—

9 (1) by striking ‘‘for (A) employing’’ and insert10 ing ‘‘for—

11 ‘‘(A) employing’’;

12 (2) by indenting the margins of each of sub13 paragraphs (B) through (I) as so to align with the

14 margin of subparagraph (A) (as amended by para15 graph (1));

16 (3) by striking ‘‘and’’ at the end of subpara17 graph (H);

18 (4) by redesignating subparagraph (I) as sub19 paragraph (Q); and

20 (5) by inserting after subparagraph (H) the fol21 lowing new subparagraphs:

22 ‘‘(I) providing funding for a nutrition compo23 nent in the health education curriculum offered to

24 children in kindergarten through grade 12;
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1 ‘‘(J) instructing teachers, school administrators,

2 or other school staff on how to promote better nutri3 tional health and to motivate children to practice

4 sound eating habits;

5 ‘‘(K) developing means of providing nutrition

6 education to children and families of children

7 through after-school programs;

8 ‘‘(L) training in relation to healthy and nutri9 tious meals;

10 ‘‘(M) creating instructional programming for

11 teachers, school food service personnel, and parents

12 on the relationships between nutrition and health

13 and the role of the food guide pyramid established

14 by the Secretary;

15 ‘‘(N) funding aspects of the Strategic Plan for

16 Nutrition and Education issued by the Secretary;

17 ‘‘(O) increasing evaluation efforts at the State

18 level regarding needs assessment for nutrition edu19 cation efforts;

20 ‘‘(P) encouraging public service advertisements

21 to promote healthy eating habits for children; and’’.

22 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

23 19(i)(2)(A) of such Act is amended—

24 (1) by striking ‘‘and’’ at the end of clause (iii);
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1 (2) by striking the period at the end of clause

2 (iv) and inserting ‘‘; and’’; and

3 (3) by adding at the end the following new

4 clause:

5 ‘‘(v) $30,000,000 for each of fiscal years 1995

6 through 1998.’’.

7 TITLE III—SCHOOL LUNCH AND

8 RELATED PROGRAMS

9 SEC. 301. ELIMINATION OF WHOLE MILK REQUIREMENT.

10 Section 9(a)(2) of the National School Lunch Act (42

11 U.S.C. 1758(a)(2)) is amended by striking ‘‘fluid whole

12 milk and fluid unflavored lowfat milk’’ and inserting ‘‘fluid

13 milk’’.

14 SEC. 302. LOW-FAT YOGURT AS AN ALLOWABLE CHOICE.

15 Section 9(a)(2) of the National School Lunch Act (42

16 U.S.C. 1758(a)(2)) is amended by adding at the end the

17 following new sentences: ‘‘The Secretary shall permit

18 schools to offer low-fat yogurt as an alternative for meats,

19 eggs, cooked dry beans or peas, peanut butter, or other

20 meat alternatives in the school lunch program. The Sec21 retary may require that the yogurt be enriched with pro22 teins or other nutrients.’’.
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1 SEC. 303. REPORTS ON INCREASING CONSUMPTION OF

2 HEALTHY FOODS IN SCHOOL LUNCHES.

3 Not later than 3 years after the date of enactment

4 of this Act, the Secretary of Agriculture shall submit to

5 the appropriate committees of Congress—

6 (1) a report on the impact on the nutritional

7 health of children of increasing the number of

8 servings of fruits and vegetables offered or served in

9 lunches served by schools participating in the school

10 lunch program established under the National

11 School Lunch Act (42 U.S.C. 1751 et seq.) from 2

12 to 3 servings per lunch, including—

13 (A) a summary of school food practices re14 garding offerings of fruits and vegetables dur15 ing lunch; and

16 (B) a description of the desirability of pro17 viding an additional Federal reimbursement as

18 an incentive to encourage schools to offer or

19 serve 3 or more fruits or vegetables per lunch;

20 (2) a report on means by which the Secretary

21 has encouraged students participating in the school

22 lunch program to increase consumption of—

23 (A) fresh fruits and vegetables;

24 (B) fiber-rich, low-sodium, whole grains,

25 breads, and pastas;

26 (C) low-fat, low-sodium soups and stews;
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1 (D) low-fat yogurt, cheeses, and other

2 dairy products;

3 (E) reduced-fat or leaner meats;

4 (F) low-fat salad dressings; and

5 (G) other similar low-fat, reduced-fat, low6 sodium, or high-fiber foods; and

7 (3) a report on the actions the Secretary has

8 taken—

9 (A) to reduce the fat, saturated fat, so10 dium, or sugar content of the bonus and entitle11 ment commodities the Secretary donates to

12 schools; and

13 (B) to carry out paragraph (2) of section

14 14(b) of the National School Lunch Act (42

15 U.S.C. 1762a(b)) (as added by section

16 313(2)(B)).

17 SEC. 304. INFORMATION TO PARENTS CONCERNING IMPOR18 TANCE OF NUTRITION.

19 Section 9(a) of the National School Lunch Act (42

20 U.S.C. 1758(a)) is amended by adding at the end the fol21 lowing new paragraph:

22 ‘‘(5)(A) The Secretary shall carry out a program to

23 assist States through grants-in-aid and other means to

24 provide information to parents concerning the importance

25 of nutrition for good health by carrying out parent-student
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1 education programs and programs to encourage parents

2 to visit schools with their children to see the operation of

3 the school lunch program established under this Act and

4 the school breakfast program established under the Child

5 Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

6 ‘‘(B) There are authorized to be appropriated to

7 carry out subparagraph (A) $2,000,000 for each fiscal

8 year.’’.

9 SEC. 305. INCOME GUIDELINES FOR FREE LUNCHES

10 SERVED TO ELEMENTARY SCHOOL STU11 DENTS.

12 The second sentence of section 9(b)(1)(A) of the Na13 tional School Lunch Act (42 U.S.C. 1758(b)(1)(A)) is

14 amended by inserting after ‘‘130 percent’’ the following:

15 ‘‘(or, in the case of a student attending an elementary

16 school, 185 percent)’’.

17 SEC. 306. SCHOOL FLEXIBILITY.

18 Section 9(b)(5) of the National School Lunch Act (42

19 U.S.C. 1758(b)(5)) is amended by adding at the end the

20 following new sentences: ‘‘A State agency or local school

21 food authority shall use information concerning the eligi22 bility of a child for free or reduced price meals for the

23 purpose of determining the eligibility of the child for free

24 or reduced price meals. A State agency or local school food

25 authority may use a determination of the eligibility of a
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1 child for free or reduced price meals to demonstrate the

2 eligibility of the child for benefits under other Federal,

3 State, or local means-tested programs.’’.

4 SEC. 307. AUTOMATIC ELIGIBILITY OF HEAD START PAR5 TICIPANTS.

6 Section 9(b)(6) of the National School Lunch Act (42

7 U.S.C. 1758(b)(6)) is amended—

8 (1) in subparagraph (A)—

9 (A) in the matter preceding clause (i), by

10 striking ‘‘a member of’’;

11 (B) in clause (i)—

12 (i) by inserting ‘‘a member of’’ after

13 ‘‘(i)’’; and

14 (ii) by striking ‘‘or’’ at the end of the

15 clause;

16 (C) in clause (ii)—

17 (i) by inserting ‘‘a member of’’ after

18 ‘‘(ii)’’; and

19 (ii) by striking the period at the end

20 of the clause and inserting ‘‘; or’’; and

21 (D) by adding at the end the following new

22 clause:

23 ‘‘(iii) enrolled as a participant in the Head

24 Start program authorized under the Head Start Act

25 (42 U.S.C. 9831 et seq.).’’; and
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1 (2) in subparagraph (B), by striking ‘‘food

2 stamps or aid to families with dependent children’’

3 and inserting ‘‘food stamps, aid to families with de4 pendent children, or enrollment or participation in

5 the Head Start program’’.

6 SEC. 308. SPECIAL ASSISTANCE PAYMENTS.

7 Section 11(a)(1) of the National School Lunch Act

8 (42 U.S.C. 1759a(a)(1)) is amended by striking ‘‘lunches’’

9 each place it appears in the third and fourth sentences

10 and inserting ‘‘meals’’.

11 SEC. 309. PROMOTION OF HEALTHY EATING HABITS FOR

12 CHILDREN.

13 Section 12 of the National School Lunch Act (42

14 U.S.C. 1760) is amended by adding at the end the follow15 ing new subsection:

16 ‘‘(j) The Secretary shall develop, and make available

17 to the public, public service advertisements that promote

18 healthy eating habits for children.’’.

19 SEC. 310. ORGANIC FOODS.

20 Section 12 of the National School Lunch Act (42

21 U.S.C. 1760) (as amended by section 309) is further

22 amended by adding at the end the following new sub23 section:

24 ‘‘(k)(1) The Secretary shall advise State educational

25 agencies and schools participating in the school lunch pro-
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1 gram about the increased opportunities offered by the Or2 ganic Foods Production Act of 1990 (7 U.S.C. 6501 et

3 seq.), and by programs established under this subsection,

4 for schools to obtain organically produced agricultural

5 products (as defined in section 2103 of such Act (7 U.S.C.

6 6502)) (referred to in this subsection as ‘organically pro7 duced agricultural products’) such as meats, poultry prod8 ucts, fruits, products made from grains, dairy products,

9 and vegetables that are organically produced.

10 ‘‘(2) The Secretary shall—

11 ‘‘(A) establish an information clearinghouse to

12 provide information on where to obtain organically

13 produced agricultural products;

14 ‘‘(B) collect, obtain, or develop information re15 garding the availability of organically produced agri16 cultural products; and

17 ‘‘(C) provide the information, or make the in18 formation readily available, to State educational

19 agencies and schools participating in the school

20 lunch program established under this Act or the

21 school breakfast program established under the

22 Child Nutrition Act of 1966 (42 U.S.C. 1771 et

23 seq.).

24 ‘‘(3) Out of any moneys in the Treasury not other25 wise appropriated, the Secretary of the Treasury shall pro-
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1 vide to the Secretary $2,000,000 for each of fiscal years

2 1995 through 1997. The Secretary shall be entitled to re3 ceive the funds and shall accept the funds.

4 ‘‘(4)(A) The Secretary shall use the funds provided

5 under paragraph (3) to provide to States and schools par6 ticipating in the school lunch program authorized under

7 this Act or the school breakfast program authorized under

8 section 4 of the Child Nutrition Act of 1966 (42 U.S.C.

9 1773)—

10 ‘‘(i) organically produced agricultural products

11 purchased by the Secretary; or

12 ‘‘(ii) incentive awards or other payments in

13 such amounts as the Secretary determines appro14 priate to encourage the purchase of organically pro15 duced agricultural products by schools that agree to

16 purchase significant quantities of the products.

17 ‘‘(B) In carrying out subparagraph (A)(ii), the Sec18 retary may provide—

19 ‘‘(i) payments to schools to assist in covering

20 the price differential between products that are not

21 organically produced agricultural products and or22 ganically produced agricultural products;

23 ‘‘(ii) incentive awards to schools that agree to

24 purchase significant quantities (as determined by the
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1 Secretary) of organically produced agricultural prod2 ucts during the school year; or

3 ‘‘(iii) other types of payments to schools to pro4 mote the use of organically produced agricultural

5 products by school lunch and breakfast programs.

6 ‘‘(5) The Secretary shall report to the appropriate

7 committees of Congress on the numbers of schools affected

8 by the program established under this subsection and on

9 the effectiveness of the program in encouraging the pur10 chase of organically produced agricultural products by

11 schools.

12 ‘‘(6) The Secretary may provide a priority for receiv13 ing funds under this subsection to schools that purchase

14 organically produced products from—

15 ‘‘(A) socially disadvantaged farmers or ranchers

16 (as defined in section 2501(e)(2) of the Food, Agri17 culture, Conservation, and Trade Act of 1990 (7

18 U.S.C. 2279(e)(2)));

19 ‘‘(B) farmers or ranchers located in very rural

20 areas (as defined by the Secretary); or

21 ‘‘(C) farmers or ranchers who own or operate

22 small-scale or limited-resource farms or ranches (as

23 defined by the Secretary).’’.
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1 SEC. 311. FOOD AND NUTRITION PROJECTS.

2 Section 12 of the National School Lunch Act (42

3 U.S.C. 1760) (as amended by section 310) is further

4 amended by adding at the end the following new sub5 section:

6 ‘‘(l)(1) The Secretary shall award on an annual basis

7 grants to private nonprofit educational organizations in 3

8 States to create and demonstrate food and nutrition

9 projects that are fully integrated with elementary school

10 curricula.

11 ‘‘(2) Each private nonprofit organization referred to

12 in paragraph (1) shall be selected by the Secretary and

13 shall—

14 ‘‘(A) assist local schools and educators in teach15 ing food and nutrition education that integrates

16 math, science, and verbal skills in the elementary

17 grades;

18 ‘‘(B) assist local schools and educators in teach19 ing sustainable agricultural practices and ecology

20 through practical applications, like gardening;

21 ‘‘(C) assist in teaching the importance of com22 munity-based models to combat hunger;

23 ‘‘(D) create community service learning oppor24 tunities;

25 ‘‘(E) be experienced in assisting in the creation

26 of curriculum-based models in elementary schools;
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1 ‘‘(F) be sponsored by an organization, or be an

2 organization, that provides information concerning

3 hunger and community involvement; and

4 ‘‘(G) be able to provide model curricula, exam5 ples, advice, and guidance to school, community

6 groups, States, and local organizations regarding

7 means of carrying out similar projects.

8 ‘‘(3) Out of any moneys in the Treasury not other9 wise appropriated, the Secretary of the Treasury shall pro10 vide to the Secretary for payment to each of the 3 private

11 nonprofit educational organizations selected under this

12 section not less than $100,000 nor more than $200,000

13 for each of fiscal years 1994 through 1998. The Secretary

14 shall be entitled to receive the funds and shall accept the

15 funds.

16 ‘‘(4) The Secretary shall establish fair and reasonable

17 auditing procedures regarding the expenditure of funds

18 under this subsection.’’.

19 SEC. 312. SUMMER FOOD SERVICE PROGRAM FOR CHIL20 DREN.

21 (a) DEFINITION OF AREAS IN WHICH POOR ECO22 NOMIC CONDITIONS EXIST.—Section 13(a)(1)(C) of the

23 National School Lunch Act (42 U.S.C. 1761(a)(1)(C)) is

24 amended by striking ‘‘50 percent’’ and inserting ‘‘40 per25 cent’’.
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1 (b) PRIVATE NONPROFIT ORGANIZATIONS.—

2 (1) LIMITS ON SITES AND NUMBER OF CHIL3 DREN SERVED.—Section 13(a)(7)(B) of such Act is

4 amended by striking clause (i) and inserting the fol5 lowing new clause:

6 ‘‘(i) serve a total of not more than 3,000 chil7 dren per day at not more than 20 sites, with not

8 more than 500 children being served at any 1 site;’’.

9 (2) VENDORS; WAITING PERIOD.—Section

10 13(a)(7) of such Act is amended—

11 (A) in subparagraph (B)(ii), by inserting

12 before the semicolon at the end the following: ‘‘,

13 except as provided in subparagraph (C)’’; and

14 (B) by striking subparagraph (C) and in15 serting the following new subparagraph:

16 ‘‘(C) A State may, with the approval of the Secretary,

17 grant a waiver to a private nonprofit organization from

18 the eligibility requirements of subparagraph (B)(ii) to per19 mit the organization to obtain meals from a vendor under

20 the same terms and conditions as other service institu21 tions, if the State determines that other reasonable alter22 natives do not exist and that failure to grant a waiver will

23 result in the lack of the establishment of a feeding site

24 for children in the area.’’.
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1 (c) SECOND HELPINGS.—Section 13(a) of such Act

2 is amended by adding at the end the following new para3 graph:

4 ‘‘(8) In carrying out this section, the Secretary shall

5 issue regulations that provide an allowance for second

6 helpings of up to 5 percent.’’.

7 (d) SINGLE RATE FOR OPERATIONAL AND ADMINIS8 TRATIVE COSTS.—

9 (1) IN GENERAL.—Paragraph (1) of section

10 13(b) of such Act is amended to read as follows:

11 ‘‘(1)(A) Except as otherwise provided in this para12 graph, payments to service institutions shall equal the full

13 cost of food service operations, including the cost of ob14 taining, preparing, and serving food, and administrative

15 costs.

16 ‘‘(B) Payments to an institution may not exceed—

17 ‘‘(i) $2.2375 for each lunch and supper served;

18 ‘‘(ii) $1.2425 for each breakfast served; and

19 ‘‘(iii) 58.75 cents for each meal supplement

20 served.

21 ‘‘(C) The amounts specified in subparagraph (B)

22 shall be adjusted on January 1, 1994, and each January

1 thereafter, to the nearest 1 23 ⁄4 cent in accordance with

24 the changes for the 12-month period ending the preceding

25 November 30 in the series for food away from home of
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1 the Consumer Price Index for All Urban Consumers pub2 lished by the Bureau of Labor Statistics of the Depart3 ment of Labor.

4 ‘‘(D) Notwithstanding any other provision of this

5 paragraph, reimbursement for administrative costs of a

6 service institution shall not exceed 12 percent of the total

7 reimbursement provided to the service institution under

8 this paragraph.’’.

9 (2) CONFORMING AMENDMENTS.—Section

10 13(b) of such Act is amended—

11 (A) in paragraph (3), by striking the sec12 ond sentence; and

13 (B) by striking paragraph (4).

14 (e) OFFER VS. SERVE OPTION.—Section 13(b)(2) of

15 such Act is amended by adding at the end the following

16 new sentences: ‘‘The Secretary shall issue regulations that

17 allow schools that are service institutions and that prepare

18 and serve meals on-site to permit children to refuse 1 food

19 item that the children do not intend to consume without

20 lowering the Federal reimbursement levels that are due

21 under the program established by this section and be

22 treated in the same manner as a service institution that

23 serves meals under the program.’’.

24 (f) REIMBURSEMENT FOR TRANSPORTATION.—Sec25 tion 13(b) of such Act (as amended by subsection
34

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1 (d)(2)(B)) is further amended by adding at the end the

2 following new paragraph:

3 ‘‘(4)(A) The Secretary shall provide an additional re4 imbursement to each eligible service institution located in

5 a very rural area (as defined by the Secretary) for the

6 cost of transporting each child to and from a feeding site

7 for children who are brought to the site by the service in8 stitution or for whom transportation is arranged by the

9 service institution.

10 ‘‘(B) Subject to subparagraph (C), the amount of re11 imbursement provided to a service institution under this

12 paragraph may not exceed the lesser of—

13 ‘‘(i) 75 cents per day for each child transported

14 to and from a feeding site; or

15 ‘‘(ii) the actual cost of transporting children to,

16 and home from, a feeding site.

17 ‘‘(C) The amounts specified in subparagraph (B)

18 shall be adjusted in accordance with paragraph (1)(C).’’.

19 (g) STARTUP COSTS.—Section 13 of such Act is

20 amended—

21 (1) in subsection (g), by striking the second and

22 third sentences;

23 (2) by redesignating subsections (g) and (h) as

24 subsections (h) and (i), respectively; and
35

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1 (3) by inserting after subsection (f) the follow2 ing new subsection:

3 ‘‘(g)(1) The Secretary shall make payments, totalling

4 not less than $2,000,000 for each fiscal year, to States

5 for distribution to service institutions in a substantial

6 number of States to assist the institutions with non7 recurring expenses incurred in initiating the summer food

8 service program. Payments received under this subsection

9 shall be in addition to payments to which States are enti10 tled under other provisions of this section and shall be

11 used for increasing the number of feeding sites or the total

12 meals served.

13 ‘‘(2) In making payments under this subsection for

14 any fiscal year, the Secretary shall, to the maximum ex15 tent practicable, ensure a wide geographic distribution

16 among the States receiving the payments.

17 ‘‘(3) In making payments under this subsection for

18 any fiscal year, the Secretary shall provide a preference

19 to States—

20 ‘‘(A)(i) in which the number of children partici21 pating in the program authorized by this section

22 represents the lowest percentages of the number of

23 children receiving free or reduced price meals under

24 the national school lunch program; or
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1 ‘‘(ii) that do not have a summer food service

2 program available to a large number of low-income

3 children in the State; and

4 ‘‘(B) that submit to the Secretary a plan to ex5 pand the programs conducted in the State, including

6 a description of—

7 ‘‘(i) the manner in which the State will

8 provide technical assistance to service institu9 tions in the State to expand the programs; or

10 ‘‘(ii) significant public or private resources

11 that have been assembled to carry out the ex12 pansion of the programs during the year.

13 ‘‘(4) Funds made available under this subsection that

14 are not used by the State shall be available to the Sec15 retary for distribution to the States during the following

16 fiscal year, in accordance with procedures established by

17 the Secretary.

18 ‘‘(5) The Secretary shall allow States to apply on an

19 annual basis for assistance under this subsection.

20 ‘‘(6) In allocating funds within the State, each State

21 shall give preference for assistance under this subsection

22 to service institutions in areas that demonstrate the great23 est need for the program or that are in areas in which

24 poor economic conditions exist.

25 ‘‘(7) Each State shall ensure that—
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1 ‘‘(A) service institutions receiving assistance

2 under this subsection establish additional feeding

3 sites that provide meal service to children in pre4 viously unserved areas; or

5 ‘‘(B) as a result of receiving the assistance,

6 service institutions serve more meals than were

7 served in the previous year.

8 ‘‘(8) Expenditures of funds from State and local

9 sources for the maintenance of the program shall not be

10 diminished as a result of payments received under this

11 subsection.

12 ‘‘(9) Not later than January 1, 1996, the Secretary

13 shall submit a report to the Committee on Education and

14 Labor of the House of Representatives and the Committee

15 on Agriculture, Nutrition, and Forestry of the Senate con16 cerning the efforts of the Secretary and the States to in17 crease the participation of service institutions in the pro18 gram.

19 ‘‘(10) As used in this subsection, the term ‘service

20 institution’ means a service institution (as defined in sub21 section (a)(1)(B)) that—

22 ‘‘(A) will serve children a significant percentage

23 of whom are members of low-income families; and

24 ‘‘(B) agrees to operate the summer food service

25 program established with the assistance provided
38

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1 under this subsection for a period of not less than

2 3 years.’’.

3 (h) AUTHORIZATION OF APPROPRIATIONS.—Section

4 13(r) of such Act is amended by striking ‘‘1994’’ and in5 serting ‘‘1998’’.

6 SEC. 313. COMMODITY DISTRIBUTION PROGRAM.

7 Section 14 of the National School Lunch Act (42

8 U.S.C. 1762a) is amended—

9 (1) in subsection (a), by striking ‘‘1994’’ and

10 inserting ‘‘1998’’; and

11 (2) in subsection (b)—

12 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

13 (B) by adding at the end the following new

14 paragraphs:

15 ‘‘(2) The Secretary shall improve the overall nutri16 tional quality of entitlement commodities provided to

17 schools to assist the schools in furthering the nutritional

18 goals for meals established under section 24.

19 ‘‘(3) The Secretary shall—

20 ‘‘(A) require that nutritional content informa21 tion labels be placed on packages or shipments of

22 entitlement commodities provided to the schools; or

23 ‘‘(B) otherwise provide nutritional content in24 formation regarding the commodities provided to the

25 schools.’’.
39

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1 SEC. 314. CHILD AND ADULT CARE FOOD PROGRAM.

2 (a) DEFINITION OF INSTITUTION.—The second sen3 tence of section 17(a) of the National School Lunch Act

4 (42 U.S.C. 1766(a)) is amended by striking ‘‘for which

5 it receives compensation from amounts granted to the

6 States under title XX of the Social Security Act (but only

7 if such organization receives compensation under such title

8 for at least 25 percent of its enrolled children or 25 per9 cent of its licensed capacity, whichever is less)’’ and insert10 ing ‘‘if at least 25 percent of the children served by the

11 organization meet the income eligibility criteria estab12 lished under section 9(b) for free or reduced price meals’’.

13 (b) EXPANSION FUNDS.—Section 17(f)(3)(C) of such

14 Act is amended—

15 (1) in the last sentence, by striking ‘‘two

16 months’’ and inserting ‘‘6 months’’; and

17 (2) by adding at the end the following new sen18 tences: ‘‘Expansion funds may be used to conduct

19 outreach to unlicensed day care homes to enable the

20 day care homes to become licensed and to partici21 pate in the program established under this section.

22 A sponsoring organization may receive expansion

23 funds for no more than 50 day care homes.’’.

24 (c) EXTENSION.—Section 17(p)(5) of such Act is

25 amended by striking ‘‘1994’’ and inserting ‘‘1998’’.
40

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1 (d) MEDICAID AND WIC INFORMATION.—Section 17

2 of such Act is amended by adding at the end the following

3 new subsection:

4 ‘‘(q)(1)(A) The Secretary shall provide materials con5 cerning the medical assistance program established under

6 title XIX of the Social Security Act (42 U.S.C. 1396 et

7 seq.) (referred to in this subsection as the ‘medicaid pro8 gram’) to State agencies for use in carrying out the pro9 gram established under this section.

10 ‘‘(B) The materials shall inform State agencies about

11 the availability and importance of—

12 ‘‘(i) the medicaid program to children from low13 income families, including a basic explanation of

14 program benefits and national income standards;

15 and

16 ‘‘(ii) the medicaid program components estab17 lished for low-income elderly and disabled persons

18 under subparagraphs (A)(ii)(X) and (E) of section

19 1902(a)(10) of the Social Security Act (42 U.S.C.

20 1396a(a)(10)), including a basic explanation of pro21 gram benefits and national income standards.

22 ‘‘(C) The Secretary—

23 ‘‘(i) may request that the Secretary of Health

24 and Human Services assist in the preparation of the

25 materials; and
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1 ‘‘(ii) shall submit the materials to the Secretary

2 of Health and Human Services for comment prior to

3 submitting the materials to State agencies.

4 ‘‘(2) The Secretary shall also provide State agencies

5 with basic information concerning the importance and

6 benefits of the special nutrition program for women, in7 fants, and children authorized under section 17 of the

8 Child Nutrition Act of 1966 (42 U.S.C. 1786).

9 ‘‘(3) The State agency shall—

10 ‘‘(A) provide each child care institution partici11 pating in the program established under this section,

12 other than institutions providing day care outside

13 school hours for schoolchildren, with materials that

14 include—

15 ‘‘(i) a basic explanation of the benefits and

16 importance of—

17 ‘‘(I) health care coverage provided to

18 young low-income children under the med19 icaid program; and

20 ‘‘(II) the special nutrition program for

21 women, infants, and children;

22 ‘‘(ii) the maximum income limits, accord23 ing to family size, applicable to children up to

24 age 5 in the State under the medicaid program
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1 and under the special nutrition program for

2 women, infants, and children; and

3 ‘‘(iii) a listing of the addresses and phone

4 numbers of offices at which parents may apply;

5 ‘‘(B) provide each adult day care center partici6 pating in the program established under this section

7 with materials that include—

8 ‘‘(i) a basic explanation of benefits pro9 vided under subparagraphs (A)(ii)(X) and (E)

10 of section 1902(a)(10) of the Social Security

11 Act;

12 ‘‘(ii) information on the income limits for

13 the benefits by household size; and

14 ‘‘(iii) a listing of addresses and phone

15 numbers of offices at which low-income elderly

16 and disabled persons may apply for the bene17 fits;

18 ‘‘(C) annually provide the institutions with an

19 update of the information on income limits described

20 in subparagraphs (A)(ii) and (B)(ii);

21 ‘‘(D) ensure that, at least once a year, the insti22 tutions to which subparagraph (A) applies provide

23 written information to parents that includes—

24 ‘‘(i) basic information on the benefits pro25 vided under the medicaid program and the spe-
43

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1 cial nutrition program for women, infants, and

2 children;

3 ‘‘(ii) information on the maximum income

4 limits, according to family size, applicable to

5 each program; and

6 ‘‘(iii) information on where parents may

7 apply to participate in each program; and

8 ‘‘(E) ensure that, at least once a year, adult

9 day care centers provide written information to pro10 gram participants that provides—

11 ‘‘(i) basic information on the benefits pro12 vided under subparagraphs (A)(ii)(X) and (E)

13 of section 1902(a)(10) of the Social Security

14 Act;

15 ‘‘(ii) information on the income limits, by

16 household size, applicable to the benefits; and

17 ‘‘(iii) information on where low-income and

18 disabled persons may apply for the benefits.’’.

19 SEC. 315. MEAL SUPPLEMENTS FOR CHILDREN IN AFTER20 SCHOOL CARE.

21 Section 17A of the National School Lunch Act (42

22 U.S.C. 1766a) is amended—

23 (1) in subsection (a)(2)—

24 (A) by inserting ‘‘and’’ at the end of sub25 paragraph (A);
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1 (B) by striking ‘‘; and’’ at the end of sub2 paragraph (B) and inserting a period; and

3 (C) by striking subparagraph (C); and

4 (2) by adding at the end the following new sub5 section:

6 ‘‘(e) AUTOMATIC ELIGIBILITY.—

7 ‘‘(1) IN GENERAL.—A child shall be considered

8 automatically eligible for a free or reduced price

9 meal supplement under this section, without further

10 application or eligibility determination, if the child

11 has been certified as eligible for free or reduced

12 price breakfasts or lunches under the Child Nutri13 tion Act of 1966 (42 U.S.C. 1771 et seq.) or this

14 Act, respectively.

15 ‘‘(2) PROOF.—Proof of eligibility for free or re16 duced price breakfasts or lunches shall be sufficient

17 to satisfy any verification requirement imposed for

18 meal supplements under this section.’’.

19 SEC. 316. DEMONSTRATION PROJECTS TO IMPROVE FOOD

20 SERVICE FOR HOMELESS CHILDREN.

21 Section 18(c) of the National School Lunch Act (42

22 U.S.C. 1769(c)) is amended—

23 (1) in paragraph (1), by inserting after ‘‘(1)’’

24 the following new sentences: ‘‘Out of any moneys in

25 the Treasury not otherwise appropriated, the Sec-
45

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1 retary of the Treasury shall provide to the Secretary

2 to carry out this subsection $4,000,000 for fiscal

3 year 1995, $5,000,000 for fiscal year 1996,

4 $8,000,000 for fiscal year 1997, and $10,000,000

5 for fiscal year 1998. The Secretary shall be entitled

6 to receive the funds and shall accept the funds.’’;

7 (2) in the first sentence of paragraph (5)(A)—

8 (A) by inserting ‘‘or provided’’ after ‘‘ap9 propriated’’;

10 (B) by striking ‘‘and’’ after ‘‘1993,’’; and

11 (C) by inserting after ‘‘1994,’’ the follow12 ing: ‘‘, and the amount specified in paragraph

13 (1) for each of fiscal years 1995 through

14 1998’’;

15 (3) in paragraph (6)—

16 (A) by inserting ‘‘(A)’’ after ‘‘(6)’’;

17 (B) by striking ‘‘1994’’ and inserting

18 ‘‘1998’’; and

19 (C) by adding at the end the following new

20 subparagraph:

21 ‘‘(B)(i) For any fiscal year in which all the funds pro22 vided for homeless demonstration programs established

23 under this subsection are not completely used, the Sec24 retary shall transfer the unused funds for the fiscal year

25 to the Secretary of the Treasury.
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1 ‘‘(ii) For each fiscal year for which funds are trans2 ferred to the Secretary of the Treasury under clause (i),

3 the Secretary of Agriculture shall submit a report to the

4 appropriate committees of Congress that includes—

5 ‘‘(I) an explanation of the actions the Secretary

6 has taken to carry out paragraph (7);

7 ‘‘(II) an estimate, if practicable, of the number

8 of children living in homeless shelters who are not

9 served by the program established under this sub10 section; and

11 ‘‘(III) a detailed plan for expanding the pro12 gram so that more eligible children may participate

13 in the program.’’; and

14 (4) by adding at the end the following new

15 paragraph:

16 ‘‘(8)(A) Out of the funds provided under paragraph

17 (1), the Secretary shall use funds, for each of fiscal years

18 1995 through 1998, to carry out programs operated by

19 shelters, halfway houses, and hospitals described in sub20 paragraph (B) that the Secretary has approved for partici21 pation, for the purpose of providing nutrition counseling,

22 nutrition assessments, and referrals to individuals partici23 pating in—

24 ‘‘(i) the program established under this sub25 section;
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1 ‘‘(ii) the special nutrition program for women,

2 infants, and children established under section 17 of

3 the Child Nutrition Act of 1966 (42 U.S.C. 1786);

4 ‘‘(iii) the medical assistance program estab5 lished under title XIX of the Social Security Act (42

6 U.S.C. 1396 et seq.) (also known as the ‘medicaid

7 program’); and

8 ‘‘(iv) similar programs for homeless pregnant

9 women, pregnant women at risk of becoming home10 less, homeless mothers with newborn infants, or the

11 guardians of boarder babies or other abandoned in12 fants.

13 ‘‘(B) Programs administered by halfway houses,

14 homeless shelters, hospitals, or transitional housing orga15 nizations under subparagraph (A), if approved by the Sec16 retary, may receive funding under this paragraph for pur17 poses specified in regulations of the Secretary.

18 ‘‘(C) The Secretary shall impose such auditing and

19 recordkeeping requirements as are necessary to monitor

20 the use of Federal funds to carry out this paragraph.

21 ‘‘(D) The Secretary shall periodically report to the

22 appropriate committees of Congress on the referral and

23 nutrition counseling and assessment programs carried out

24 under this paragraph.’’.
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1 SEC. 317. PILOT PROGRAM TO INCREASE OFFERINGS OF

2 FRUITS AND VEGETABLES.

3 Section 18 of the National School Lunch Act (42

4 U.S.C. 1769) is amended by adding at the end the follow5 ing new subsection:

6 ‘‘(e)(1) The Secretary shall establish a national pilot

7 program (referred to in this subsection as the ‘pilot pro8 gram’) to assist schools participating in the school lunch

9 program established under this Act, and the school break10 fast program established under section 4 of the Child Nu11 trition Act of 1966 (42 U.S.C. 1773), to offer participat12 ing students additional choices of fruits and vegetables.

13 ‘‘(2) The Secretary shall establish procedures under

14 which schools may apply to participate in the pilot pro15 gram. To the maximum extent practicable, the Secretary

16 shall select qualified schools that apply from each State.

17 ‘‘(3) The Secretary shall use the funds provided

18 under this subsection to provide to the schools referred

19 to in paragraph (1)—

20 ‘‘(A) per meal reimbursements, in addition to

21 reimbursements otherwise due the schools;

22 ‘‘(B) incentive awards to schools that agree to

23 increase their offerings of fruits and vegetables dur24 ing the school year; or

25 ‘‘(C) fruits and vegetables purchased by the

26 Secretary.
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1 ‘‘(4) The Secretary may provide a priority for receiv2 ing benefits under this subsection to schools that—

3 ‘‘(A) are located in low-income areas (as de4 fined by the Secretary);

5 ‘‘(B) rarely offer 3 or more servings of fruits or

6 vegetables per meal; or

7 ‘‘(C) purchase or agree to purchase a substan8 tial portion of their fruits and vegetables from—

9 ‘‘(i) socially disadvantaged farmers (as de10 fined in section 2501(e)(2) of the Food, Agri11 culture, Conservation, and Trade Act of 1990

12 (7 U.S.C. 2279(e)(2)));

13 ‘‘(ii) farmers located in very rural areas

14 (as defined by the Secretary); or

15 ‘‘(iii) farmers who own or operate small16 scale or limited-resource farms (as defined by

17 the Secretary).

18 ‘‘(5) Not later than March 31, 1996, and March 31,

19 1997, the Secretary shall report to the appropriate com20 mittees of Congress on the impact of the pilot program

21 on participating schools, including—

22 ‘‘(A) the extent to which school children in23 creased consumption of fruits and vegetables;
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•S 1614 IS

1 ‘‘(B) the extent of any increase in costs to the

2 schools in offering the additional fruits or vegeta3 bles;

4 ‘‘(C) the desirability of—

5 ‘‘(i) requiring that each school participat6 ing in the school lunch program increase the

7 number of servings of fruits or vegetables of8 fered per meal to at least 3 servings; and

9 ‘‘(ii) mandating that the Secretary provide

10 additional Federal reimbursements to assist

11 schools in complying with the proposed require12 ment described in clause (i); and

13 ‘‘(D) the extent to which fresh, frozen, and

14 canned foods are offered under the pilot program.

15 ‘‘(6) Out of any moneys in the Treasury not other16 wise appropriated, the Secretary of the Treasury shall pro17 vide to the Secretary to carry out this subsection

18 $40,000,000 for each of fiscal years 1995 through 1997.

19 The Secretary shall be entitled to receive the funds and

20 shall accept the funds.’’.

21 SEC. 318. PILOT PROGRAM TO INCREASE CONSUMPTION OF

22 LOW-FAT DAIRY PRODUCTS AND LEAN

23 MEATS.

24 Section 18 of the National School Lunch Act (42

25 U.S.C. 1769) (as amended by section 317) is further
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1 amended by adding at the end the following new sub2 section:

3 ‘‘(f)(1) The Secretary shall establish a national pilot

4 program (referred to in this subsection as the ‘pilot pro5 gram’) to better assist schools participating in the school

6 lunch program established under this Act and the school

7 breakfast program established under section 4 of the Child

8 Nutrition Act of 1966 (42 U.S.C. 1773) to offer low-fat

9 dairy products and lean meats and poultry products.

10 ‘‘(2) The Secretary shall establish procedures under

11 which schools may apply to participate in the pilot pro12 gram. To the maximum extent practicable, the Secretary

13 shall select qualified schools that apply from each State.

14 ‘‘(3) The Secretary shall purchase, and provide to

15 schools selected to participate in the pilot program, low16 fat dairy products and lean meats and poultry products.

17 ‘‘(4) Not later than March 31, 1996, and March 31,

18 1997, the Secretary shall report to the appropriate com19 mittees of Congress on the impact of the pilot program

20 on participating schools, including—

21 ‘‘(A) the extent to which school children in22 creased consumption of low-fat dairy products and

23 lean meats and poultry products; and

24 ‘‘(B) alternative means of providing additional

25 offerings of low-fat dairy products and lean meats
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1 and poultry products in the school lunch and break2 fast programs.

3 ‘‘(5) Out of any moneys in the Treasury not other4 wise appropriated, the Secretary of the Treasury shall pro5 vide to the Secretary to carry out the pilot program with

6 respect to the purchase and distribution of—

7 ‘‘(A) low-fat dairy products, $35,000,000 for

8 each of fiscal years 1995 through 1997; and

9 ‘‘(B) lean meats and poultry products,

10 $10,000,000 for each of fiscal years 1995 through

11 1997.

12 ‘‘(6) The Secretary shall be entitled to receive the

13 funds described in paragraph (5) and shall accept the

14 funds.’’.

15 SEC. 319. PILOT PROJECTS FOR FORTIFIED FLUID MILK;

16 INFORMATION ON FORTIFIED MILK.

17 (a) IN GENERAL.—Section 18 of the National School

18 Lunch Act (42 U.S.C. 1769) (as amended by section 318)

19 is further amended by adding at the end the following new

20 subsection:

21 ‘‘(g)(1) The Secretary shall establish pilot projects in

22 at least 25 school districts under which the milk offered

23 by schools meets the fortification requirements of para24 graph (3) for lowfat, skim, and other forms of fluid milk.
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1 ‘‘(2) The Secretary shall make available to school dis2 tricts information that compares the nutritional benefits

3 of fluid milk that meets the fortification requirements of

4 paragraph (3) and the nutritional benefits of other milk

5 that is made available through the school lunch program

6 established under this Act.

7 ‘‘(3) The fortification requirements for fluid milk for

8 the pilot project referred to in paragraph (1) shall provide

9 that—

10 ‘‘(A) all whole milk in final package form for

11 beverage use shall contain not less than—

12 ‘‘(i) 3.25 percent milk fat; and

13 ‘‘(ii) 8.7 percent milk solids not fat;

14 ‘‘(B) all lowfat milk in final package form for

15 beverage use shall contain not less than 10 percent

16 milk solids not fat; and

17 ‘‘(C) all skim milk in final package form for

18 beverage use shall contain not less than 9 percent

19 milk solids not fat.

20 ‘‘(4)(A) In selecting where to establish pilot projects

21 under this subsection, the Secretary shall take into ac22 count, among other factors, the availability of fortified

23 milk and the interest of the school district in being in24 cluded in the pilot program.
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1 ‘‘(B) The Secretary shall establish the pilot projects

2 in as many geographic areas as practicable, except that

3 none of the projects shall be established in school districts

4 that use milk described in paragraph (3) or similar milk.

5 ‘‘(5) Not later than 2 years after the establishment

6 of pilot projects under this subsection, the Secretary shall

7 report to the appropriate committees of Congress on—

8 ‘‘(A) the effect of the pilot program on the nu9 trition and health of children;

10 ‘‘(B) the acceptability of fortified whole, lowfat,

11 and skim milk products to participating children and

12 teachers;

13 ‘‘(C) the impact of offering the milk on milk

14 consumption;

15 ‘‘(D) the views of the school food service au16 thorities on the pilot program; and

17 ‘‘(E) any increases or reductions in costs attrib18 uted to the pilot program.

19 ‘‘(6) The Secretary shall—

20 ‘‘(A) obtain copies of research studies and pa21 pers that discuss the impact of the fortification of

22 milk pursuant to standards established by the State

23 of California in the early 1960’s; and

24 ‘‘(B) make the information available to the pub25 lic.
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1 ‘‘(7)(A) The pilot projects established under this sub2 section shall terminate on the last day of the third year

3 after the establishment of the pilot projects.

4 ‘‘(B) The Secretary shall advise representatives of all

5 districts participating in the pilot projects that the dis6 tricts may continue to offer the fortified forms of milk de7 scribed in paragraph (3) after the project terminates.’’.

8 (b) INFORMATION ON FORTIFIED MILK.—Section

9 9(a) of such Act (7 U.S.C. 1758(a)) (as amended by sec10 tion 304) is further amended by adding at the end the

11 following new paragraph:

12 ‘‘(6)(A) In the case of fluid milk offered under the

13 national school lunch program established under this Act,

14 the school breakfast program established under section 4

15 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), and

16 the special milk program established under section 3 of

17 such Act (42 U.S.C. 1772), the Secretary shall establish

18 a program under which schools may obtain information

19 about where to obtain milk described in section 18(g)(3).

20 ‘‘(B) The Secretary shall notify State educational

21 agencies and participating schools about the possible bene22 fits to school children of the milk described in section

23 18(g)(3) and of the availability of the informational serv24 ice made available under this paragraph.
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1 ‘‘(C) Not later than 120 days after the date of enact2 ment of this paragraph, the Secretary shall issue an eval3 uation that compares the nutritional value of—

4 ‘‘(i) milk that is fortified as described in section

5 18(g)(3);

6 ‘‘(ii) milk that is fortified in a similar manner

7 to milk described in clause (i); and

8 ‘‘(iii) milk not fortified as described in clause (i)

9 or (ii).’’.

10 SEC. 320. FOOD SERVICE MANAGEMENT INSTITUTE AND

11 OTHER INSTITUTIONS.

12 Section 21 of the National School Lunch Act (42

13 U.S.C. 1769b–1) is amended—

14 (1) in subsection (b)—

15 (A) by striking ‘‘and’’ at the end of para16 graph (2);

17 (B) by striking the period at the end of

18 paragraph (3) and inserting ‘‘; and’’; and

19 (C) by adding at the end the following new

20 paragraph:

21 ‘‘(4) in the case of a food service management

22 institute established as authorized by subsection

23 (a)(2) and other institutions (such as a culinary in24 stitute)—
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1 ‘‘(A) training food service personnel to

2 comply with the nutrition guidance and objec3 tive referred to in section 24(b) through a na4 tional network of instructors or other means;

5 ‘‘(B) preparing informational materials,

6 such as video instruction tapes and menu plan7 ners, to promote healthier food preparation; and

8 ‘‘(C) assisting State educational agencies

9 in providing additional nutrition and health in10 structions and instructors.’’; and

11 (2) in subsection (e)—

12 (A) in paragraph (1), by striking ‘‘1992,

13 1993, and 1994’’ and inserting ‘‘1992 through

14 1998’’; and

15 (B) in paragraph (2), by striking ‘‘1991,

16 1992, 1993, and 1994’’ and inserting ‘‘1991

17 through 1998’’.

18 SEC. 321. COMPLIANCE AND ACCOUNTABILITY.

19 Not later than 90 days after the date of enactment

20 of this Act, the Secretary of Agriculture shall submit a

21 report to the Committee on Education and Labor of the

22 House of Representatives and the Committee on Agri23 culture, Nutrition, and Forestry of the Senate that ana24 lyzes—
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1 (1) the status of the coordinated review system

2 authorized under section 22 of the National School

3 Lunch Act (42 U.S.C. 1769c);

4 (2) the advantages and disadvantages of the

5 system; and

6 (3) the cost impact of the system on schools.

7 SEC. 322. NUTRITION GUIDANCE FOR CHILD NUTRITION

8 PROGRAMS.

9 (a) IN GENERAL.—Section 24 of the National School

10 Lunch Act (42 U.S.C. 1769e) is amended—

11 (1) by striking subsection (b) and inserting the

12 following new subsection:

13 ‘‘(b) REVISION OF MENU PLANNING GUIDES.—

14 ‘‘(1) FAT CONTENT.—The Secretary shall in15 clude in menu planning guides the recommendation

16 provided in the April 1992 version of the publication

17 that menus achieve an average fat content of 30 per18 cent of calories from fat and that saturated fat in19 take should be reduced to an average of 10 percent

20 or less of calories.

21 ‘‘(2) REVISED RECOMMENDATIONS.—The Sec22 retary shall, as necessary, revise the menu planning

23 guides for each covered program to include rec24 ommendations for the implementation of nutrition

25 guidance described in the publication, including re-
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1 vised recommendations in the publication concerning

2 the consumption of fat and saturated fat.’’;

3 (2) in subsection (c), by inserting after ‘‘publi4 cation’’ the following: ‘‘, including the guidance re5 garding fat and saturated fat consumption,’’; and

6 (3) in subsection (d), by inserting after ‘‘publi7 cation’’ the following: ‘‘, including the guidance re8 garding fat and saturated fat consumption’’.

9 (b) REPORT.—Not later than July 1, 1995, the Sec10 retary of Agriculture shall submit to the appropriate com11 mittees of Congress a report that—

12 (1) describes actions taken to ensure compli13 ance with the requirements of section 24 of the Na14 tional School Lunch Act (42 U.S.C. 1769e); and

15 (2) makes recommendations regarding the use16 fulness of specific guidelines for dietary fiber, so17 dium, and sugar regarding the school lunch and

18 breakfast programs established under the National

19 School Lunch Act (42 U.S.C. 1751 et seq.) and the

20 Child Nutrition Act of 1966 (42 U.S.C. 1771 et

21 seq.), respectively.

22 (c) REGULATIONS.—Not later than 150 days after

23 the date of enactment of this Act, the Secretary of Agri24 culture shall issue final regulations to implement section
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1 24 of the National School Lunch Act (as amended by sub2 section (a)).

3 SEC. 323. INFORMATION CLEARINGHOUSE.

4 The National School Lunch Act (42 U.S.C. 1751 et

5 seq.) is amended by adding at the end the following new

6 section:

7 ‘‘SEC. 25. INFORMATION CLEARINGHOUSE.

8 ‘‘(a) IN GENERAL.—The Secretary shall enter into

9 a contract with a nongovernmental organization described

10 in subsection (b) to establish and maintain a clearinghouse

11 to provide information to nongovernmental groups located

12 throughout the United States that assist low-income indi13 viduals or communities regarding food assistance, self-help

14 activities to aid individuals in becoming self-reliant, and

15 other activities that empower low-income individuals or

16 communities to improve the lives of low-income individuals

17 and reduce reliance on Federal, State, or local govern18 mental agencies for food or other assistance.

19 ‘‘(b) NONGOVERNMENTAL ORGANIZATION.—The

20 nongovernmental organization referred to in subsection

21 (a) shall be selected on a competitive basis and shall—

22 ‘‘(1) be experienced in the gathering of first23 hand information in all the States through on-site

24 visits to grassroots organizations in each State that
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1 fight hunger and poverty or that assist individuals

2 in becoming self-reliant;

3 ‘‘(2) be experienced in the establishment of a

4 clearinghouse similar to the clearinghouse described

5 in subsection (a);

6 ‘‘(3) agree to contribute in-kind resources to7 wards the establishment and maintenance of the

8 clearinghouse and agree to provide the clearinghouse

9 information, free of charge, to the Secretary, States,

10 counties, cities, antihunger groups, and grassroots

11 organizations that assist individuals in becoming

12 self-sufficient and self-reliant;

13 ‘‘(4) be sponsored by an organization, or be an

14 organization, that—

15 ‘‘(A) has helped combat hunger for at least

16 10 years;

17 ‘‘(B) is committed to reinvesting in the

18 United States; and

19 ‘‘(C) is knowledgeable regarding Federal

20 nutrition programs;

21 ‘‘(5) be experienced in communicating the pur22 pose of the clearinghouse through the media, includ23 ing the radio and print media, and be able to pro24 vide access to the clearinghouse information through
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1 computer or telecommunications technology, as well

2 as through the mails; and

3 ‘‘(6) be able to provide examples, advice, and

4 guidance to communities, States, counties, cities,

5 antihunger groups, and local organizations regarding

6 means of assisting individuals and communities to

7 reduce reliance on government programs, to reduce

8 hunger and to improve nutrition, and to otherwise

9 assist low-income individuals and communities be10 come more self-sufficient.

11 ‘‘(c) AUDITS.—The Secretary shall establish fair and

12 reasonable auditing procedures regarding the expenditures

13 of funds to carry out this section.

14 ‘‘(d) FUNDING.—Out of any moneys in the Treasury

15 not otherwise appropriated, the Secretary of the Treasury

16 shall pay to the Secretary to provide to the organization

17 selected under this section, to establish and maintain the

18 information clearinghouse, $200,000 for each of fiscal

19 years 1995 and 1996, $150,000 for fiscal year 1997, and

20 $75,000 for fiscal year 1998. The Secretary shall be enti21 tled to receive the funds and shall accept the funds.’’.

22 TITLE IV—PROGRAM INTEGRITY

23 SEC. 401. FINDINGS.

24 Congress finds that—
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1 (1) in recent years, there has been an alarming

2 number of instances of price-fixing and bid-rigging

3 regarding foods purchased for—

4 (A) the school lunch program established

5 under the National School Lunch Act (42

6 U.S.C. 1751 et seq.); and

7 (B) the school breakfast program estab8 lished under the Child Nutrition Act of 1966

9 (42 U.S.C. 1771 et seq.);

10 (2) during the past several years, the Antitrust

11 Division of the United States Department of Justice

12 has filed over 100 criminal cases against companies

13 and individuals accused of bid-rigging conspiracies,

14 false statements, mail fraud, price-fixing, and simi15 lar activities involving dairy products sold to schools

16 or the Department of Defense;

17 (3) over 30 grand juries in States are inves18 tigating similar activities, especially in connection

19 with activities involving the dairy industry;

20 (4) 54 corporations and 50 individuals have

21 been convicted by Federal courts of similar activi22 ties, and total fines and civil damages of approxi23 mately $100,000,000 have been assessed in Federal

24 and State actions for similar activities;
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1 (5) a report of the Comptroller General of the

2 United States noted that, as of March 1992, the

3 Secretary of Agriculture had neither suspended nor

4 debarred any of the 13 dairy companies or 28 indi5 viduals convicted, as of March 1992, of milk con6 tract bid-rigging from participating in the school

7 lunch and breakfast programs;

8 (6) effective educational and monitoring pro9 grams can greatly reduce the incidence of price-fix10 ing and bid-rigging by companies that sell products

11 to schools;

12 (7) reducing the incidence of price-fixing and

13 bid-rigging in connection with the school lunch and

14 breakfast programs could save school districts, par15 ents, and taxpayers millions of dollars per year;

16 (8) the Comptroller General of the United

17 States has noted that bid-rigging awareness training

18 is an effective means of deterring improper collusion

19 and bid-rigging; and

20 (9) the Comptroller General of the United

21 States in a General Accounting Office report ad22 dressed many of the concerns described in this sec23 tion with respect to bid rigging in the school lunch

24 program.
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1 SEC. 402. DUTIES OF THE SECRETARY RELATING TO ANTI2 COMPETITIVE ACTIVITIES.

3 (a) IN GENERAL.—The National School Lunch Act

4 (42 U.S.C. 1751 et seq.) (as amended by section 323) is

5 further amended by adding at the end the following new

6 section:

7 ‘‘SEC. 26. DUTIES OF THE SECRETARY RELATING TO ANTI8 COMPETITIVE ACTIVITIES.

9 ‘‘(a) DEFINITIONS.—As used in this section:

10 ‘‘(1) CHILD NUTRITION PROGRAM.—The term

11 ‘child nutrition program’ means—

12 ‘‘(A) the school lunch program established

13 under this Act;

14 ‘‘(B) the school breakfast program estab15 lished under section 4 of the Child Nutrition

16 Act of 1966 (42 U.S.C. 1773);

17 ‘‘(C) the special milk program established

18 under section 3 of such Act (42 U.S.C. 1772);

19 ‘‘(D) the special nutrition program for

20 women, infants, and children authorized under

21 section 17 of such Act (42 U.S.C. 1786);

22 ‘‘(E) the summer food service program for

23 children established under section 13 of this

24 Act; and

25 ‘‘(F) the child and adult care food program

26 established under section 17 of this Act.
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1 ‘‘(2) CONTRACTOR.—The term ‘contractor’

2 means a person that contracts with a State, an

3 agency of a State, or a local agency to provide goods

4 or services in conjunction with the participation of

5 a local agency in a child nutrition program.

6 ‘‘(3) LOCAL AGENCY.—The term ‘local agency’

7 means a school, school food authority, child care

8 center, sponsoring organization, or other entity au9 thorized to operate a child nutrition program at the

10 local level.

11 ‘‘(4) NONPROCUREMENT DEBARMENT.—The

12 term ‘nonprocurement debarment’ means an action

13 to bar a person from programs and activities involv14 ing Federal financial and nonfinancial assistance,

15 but not including Federal procurement programs

16 and activities.

17 ‘‘(5) PERSON.—The term ‘person’ means any

18 individual, corporation, partnership, association, or

19 other legal entity, however organized.

20 ‘‘(b) ASSISTANCE.—The Secretary shall—

21 ‘‘(1) provide advice, training, technical assist22 ance, and guidance (which may include awareness

23 training, training films, and troubleshooting advice)

24 to representatives of States and local agencies re25 garding means of identifying and preventing anti-
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1 competitive activities relating to the provision of

2 goods or services in conjunction with the participa3 tion of a local agency in a child nutrition program;

4 and

5 ‘‘(2) provide information to, and fully cooperate

6 with, the Attorney General and State attorneys gen7 eral regarding investigations of anticompetitive ac8 tivities relating to the provision of goods or services

9 in conjunction with the participation of a local agen10 cy in a child nutrition program.

11 ‘‘(c) FOOD SERVICE MANAGEMENT INSTITUTE.—

12 The Secretary may request assistance from the food serv13 ice management institute authorized under section 21 in

14 carrying out subsection (b)(1).

15 ‘‘(d) NONPROCUREMENT DEBARMENT.—

16 ‘‘(1) DEBARMENT DECISIONS.—Except as pro17 vided in paragraph (3), not later than 180 days

18 after notification of the occurrence of a cause for de19 barment described in paragraph (2), the Secretary

20 shall decide whether to initiate nonprocurement de21 barment proceedings against the contractor who has

22 committed the cause for debarment.

23 ‘‘(2) CAUSES FOR DEBARMENT.—

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), actions requiring consideration of
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1 nonprocurement debarment pursuant to para2 graph (1) shall be limited to convictions or civil

3 judgments for the following offenses:

4 ‘‘(i) Violation of Federal or State

5 antitrust laws, including laws relating to

6 bid-rigging and price-fixing.

7 ‘‘(ii) Commission of embezzlement,

8 theft, forgery, fraud, bribery, making false

9 statements, receiving stolen property, mak10 ing false claims, or obstruction of justice.

11 ‘‘(B) APPLICATION.—Subparagraph (A)

12 shall apply to the extent an offense is commit13 ted by a contractor in connection with providing

14 a good or service in conjunction with the par15 ticipation of a local agency in a child nutrition

16 program.

17 ‘‘(3) EXCEPTION.—If the Secretary determines

18 that a decision on initiating nonprocurement debar19 ment proceedings cannot be made within 180 days

20 because of the need to further investigate matters

21 relating to the possible debarment, the Secretary

22 may have such additional time as the Secretary con23 siders necessary to make a decision, but not to ex24 ceed an additional 180 days.
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1 ‘‘(4) MANDATORY CHILD NUTRITION PROGRAM

2 DEBARMENT PERIODS.—

3 ‘‘(A) IN GENERAL.—Subject to the other

4 provisions of this paragraph and notwithstand5 ing any other provision of law except subsection

6 (e), if after deciding to initiate nonprocurement

7 debarment proceedings pursuant to paragraph

8 (1) the Secretary decides to debar a contractor,

9 the debarment shall be for no less than 1 year.

10 ‘‘(B) PREVIOUS DEBARMENT.—If the con11 tractor has been previously debarred pursuant

12 to nonprocurement debarment proceedings initi13 ated pursuant to paragraph (1), and the cause

14 for debarment is a conviction or civil judgment

15 described in paragraph (2) based on activities

16 that occurred subsequent to the initial debar17 ment, the debarment shall be for no less than

18 3 years.

19 ‘‘(C) SCOPE.—At a minimum, a debarment

20 under this subsection shall serve to bar the con21 tractor for the specified period from contracting

22 to provide goods or services in conjunction with

23 the participation of a local agency in a child nu24 trition program.
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1 ‘‘(D) REVERSAL, REDUCTION, OR EXCEP2 TION.—Nothing in this paragraph shall restrict

3 the ability of the Secretary to reverse a debar4 ment decision, to reduce the period or scope of

5 a debarment, nor to grant an exception permit6 ting a debarred contractor to participate in a

7 particular contract to provide goods or services

8 in conjunction with the participation of a local

9 agency in a child nutrition program, if the Sec10 retary determines there is good cause for the

11 action.

12 ‘‘(5) INFORMATION.—On request, the Secretary

13 shall present to the appropriate committees of Con14 gress information regarding the decisions required

15 by this subsection.

16 ‘‘(6) RELATIONSHIP TO OTHER AUTHORI17 TIES.—

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), consideration of nonprocurement de20 barment pursuant to this subsection shall not

21 reduce or diminish the authority of a Federal,

22 State, or local government agency or court to

23 penalize, imprison, fine, suspend, debar, or take

24 other adverse action against a person in a civil,

25 criminal or administrative proceeding.
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1 ‘‘(B) COORDINATION.—To the maximum

2 extent practicable, the Secretary shall consoli3 date and coordinate any nonprocurement debar4 ment actions pursuant to this subsection with

5 other adverse actions, including other

6 nonprocurement debarment actions.

7 ‘‘(7) REGULATIONS.—The Secretary shall issue

8 such regulations as are necessary to carry out this

9 subsection.

10 ‘‘(e) MANDATORY DEBARMENT.—Notwithstanding

11 any other provision of this section, the Secretary shall ini12 tiate nonprocurement debarment proceedings against the

13 contractor (including a dairy cooperative) who has com14 mitted the cause for debarment (as determined under sub15 section (d)), unless the action—

16 ‘‘(1) is likely to have a significant adverse effect

17 on competition or prices in the relevant market or

18 nationally;

19 ‘‘(2) will interfere with the ability of a school,

20 school district, or school district consortium to pro21 cure a needed product for a child nutrition program;

22 or

23 ‘‘(3) is not in the public interest, as determined

24 by the Secretary.
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1 ‘‘(f) TERMINATION OF AUTHORITY.—The authority

2 provided by this section shall terminate on September 30,

3 1999.’’.

4 (b) REPORT ON CONSISTENT DEBARMENT POLICY.—

5 Not later than 120 days after the date of enactment of

6 this Act, the Director of the Office of Management and

7 Budget (in consultation with the Secretary of Agriculture

8 and the Secretary of Defense) shall advise the appropriate

9 committees of Congress and the Comptroller General of

10 the United States as to the appropriateness and usefulness

11 of a consistent debarment policy under—

12 (1) the Federal acquisition regulations issued

13 under title 48, Code of Federal Regulations; and

14 (2) Federal nonprocurement regulations.

15 (c) APPLICATION.—Section 26(d) of the National

16 School Lunch Act (as added by subsection (a)) shall not

17 apply to a conviction or civil judgment that is based on

18 an activity that took place prior to the date of enactment

19 of this Act.

20 SEC. 403. PREVENTION AND CONTROL OF ANTICOMPETI21 TIVE ACTIVITIES.

22 The National School Lunch Act (42 U.S.C. 1751 et

23 seq.) (as amended by section 402) is further amended by

24 adding at the end the following new section:
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1 ‘‘SEC. 27. PREVENTION AND CONTROL OF ANTICOMPETI2 TIVE ACTIVITIES.

3 ‘‘(a) ASSISTANCE.—

4 ‘‘(1) IN GENERAL.—The Secretary may provide

5 grants to State educational agencies and other State

6 agencies that administer child nutrition programs

7 (as defined in section 26(a)(1)) to assist the agen8 cies in the prevention and control of anticompetitive

9 activities relating to the programs, including activi10 ties to further coordination and cooperation with law

11 enforcement officials.

12 ‘‘(2) FORMULA.—The grants shall be made

13 pursuant to a formula established by the Secretary

14 that takes into account the size of the child nutrition

15 programs in each State, subject to a minimum grant

16 amount for each State.

17 ‘‘(b) FEDERAL ACTIVITIES.—

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

19 the Secretary shall retain 25 percent of the sums

20 made available for any fiscal year to carry out this

21 section to administer subsection (a) and to conduct

22 the activities described in section 26(b).

23 ‘‘(2) ADDITIONAL FUNDS.—Nothing in para24 graph (1) shall preclude the Secretary from expend25 ing for the activities described in section 26(b) any

26 funds otherwise available to carry out section 26(b).
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1 ‘‘(c) INFORMATION.—On request, the Secretary shall

2 provide to the appropriate committees of Congress infor3 mation regarding the administration of this section and

4 other efforts to reduce the incidence of anticompetitive ac5 tivity (such as price-fixing and bid-rigging), in connection

6 with child nutrition programs (as defined in section

7 26(a)(1)).

8 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated to carry out this section

10 $4,000,000 for each of fiscal years 1994 through 1998.’’.

11 TITLE V—EFFECTIVE DATES

12 SEC. 501. EFFECTIVE DATES.

13 (a) IN GENERAL.—Except as provided in subsection

14 (b), this Act and the amendments made by this Act shall

15 become effective on the date of enactment of this Act.

16 (b) SPECIAL EFFECTIVE DATES.—The amendments

17 made by—

18 (1) sections 101 through 104, 205 through 207,

19 313, and 318 shall become effective on October 1,

20 1994;

21 (2) sections 201 through 204, 209, 301 through

22 310, 314(a), 314(b), 315, 317, and 320 shall be23 come effective on July 1, 1995;

24 (3) section 312 shall become effective on Sep25 tember 1, 1995; and
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1 (4) section 314(c) shall become effective on Oc2 tober 1, 1995.

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