II

105TH CONGRESS

2D SESSION S. 2166

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

of 1966 to provide children with increased access to food and nutrition

assistance, to simplify program operations and improve program management, to extend certain authorities contained in such Acts through fiscal

year 2002, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 11, 1998

Mr. HARKIN (for himself, Mr. LEAHY, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the National School Lunch Act and the Child

Nutrition Act of 1966 to provide children with increased

access to food and nutrition assistance, to simplify program operations and improve program management, to

extend certain authorities contained in such Acts through

fiscal year 2002, 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,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Child Nutrition and WIC Reauthorization Amendments

4 of 1998’’.

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

6 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 101. Technical amendments to commodity provisions.

Sec. 102. Availability of recovered funds for management activity.

Sec. 103. Elimination of administration of programs by regional offices.

Sec. 104. Requirement for health and safety inspections.

Sec. 105. Elimination of food and nutrition projects and establishment of an

adequate meal service period.

Sec. 106. Buy American.

Sec. 107. Summer food service program for children.

Sec. 108. Commodity distribution program.

Sec. 109. Child and adult care food program.

Sec. 110. Transfer of homeless assistance programs to the child and adult care

food program.

Sec. 111. Elimination of pilot projects.

Sec. 112. Training and technical assistance.

Sec. 113. Food service management institute.

Sec. 114. Compliance and accountability.

Sec. 115. Information clearinghouse.

Sec. 116. Refocusing of effort to help accommodate the special dietary needs

of individuals with disabilities.

TITLE II—SCHOOL BREAKFAST AND RELATED PROGRAMS

Sec. 201. Elimination of administration of programs by regional offices.

Sec. 202. State administrative expenses.

Sec. 203. Special supplemental nutrition program for women, infants, and children.

Sec. 204. Nutrition education and training.

TITLE III—COMMODITY DISTRIBUTION PROGRAMS

Sec. 301. Commodity distribution program reforms.

Sec. 302. Food distribution.

TITLE IV—EFFECTIVE DATE

Sec. 401. Effective date.
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1 TITLE I—SCHOOL LUNCH AND

2 RELATED PROGRAMS

3 SEC. 101. TECHNICAL AMENDMENTS TO COMMODITY PRO4 VISIONS.

5 (a) IN GENERAL.—Section 6 of the National School

6 Lunch Act (42 U.S.C. 1755) is amended—

7 (1) by striking subsections (c) and (d); and

8 (2) by redesignating subsections (e), (f), and

9 (g) as subsections (c), (d), and (e), respectively.

10 (b) CONFORMING AMENDMENTS.—The National

11 School Lunch Act is amended by striking ‘‘section 6(e)’’

12 each place it appears in sections 14(f), 16(a), and

13 17(h)(1)(B) (42 U.S.C. 1762a(f), 1765(a),

14 1766(h)(1)(B)) and inserting ‘‘section 6(c)’’.

15 SEC. 102. AVAILABILITY OF RECOVERED FUNDS FOR MAN16 AGEMENT ACTIVITY.

17 Section 8 of the National School Lunch Act (42

18 U.S.C. 1757) is amended by adding at the end the follow19 ing:

20 ‘‘(h) RETENTION AND USE OF RECOVERED PRO21 GRAM FUNDS.—

22 ‘‘(1) RETENTION.—A State agency may retain

23 up to 50 percent of any program funds recovered as

24 a result of an audit or review conducted by the State

25 agency of school food authorities, institutions, and
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1 service institutions participating in food assistance

2 programs authorized under this Act or section 3 or

3 4 of the Child Nutrition Act of 1966 (42 U.S.C.

4 1772, 1773).

5 ‘‘(2) USE.—Funds retained by a State agency

6 under this subsection shall be used by the State

7 agency for allowable program costs to improve the

8 management and operation of programs described in

9 paragraph (1) within the State, including the cost of

10 providing funds to school food authorities, institu11 tions, and service institutions participating in the

12 programs.’’.

13 SEC. 103. ELIMINATION OF ADMINISTRATION OF PRO14 GRAMS BY REGIONAL OFFICES.

15 (a) MATCHING REQUIREMENT.—Section 7(b) of the

16 National School Lunch Act (42 U.S.C. 1756(b)) is amend17 ed by striking the second sentence.

18 (b) DISBURSEMENT TO SCHOOLS BY THE SEC19 RETARY.—Section 10 of the National School Lunch Act

20 (42 U.S.C. 1759) is amended to read as follows:

21 ‘‘SEC. 10. DISBURSEMENT TO SCHOOLS BY THE SEC22 RETARY.

23 ‘‘(a) AUTHORITY TO ADMINISTER PROGRAMS.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (3), until September 30, 2000, the Secretary
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1 shall withhold funds payable to a State agency under

2 this Act and disburse the funds directly to school

3 food authorities, institutions, and service institutions

4 within the State for the purposes authorized by this

5 Act to the extent that the Secretary has so withheld

6 and disbursed the funds continuously since October

7 1, 1980.

8 ‘‘(2) USE OF FUNDS.—Any funds withheld and

9 disbursed by the Secretary under paragraph (1)

10 shall be used for the same purposes and be subject

11 to the same conditions as apply to disbursing funds

12 made available to States under this Act.

13 ‘‘(3) STATE ADMINISTRATION.—If the Sec14 retary is administering (in whole or in part) any

15 program authorized under this Act in a State, the

16 State may, on request to the Secretary, assume ad17 ministrative responsibility for the program at any

18 time before October 1, 2000.

19 ‘‘(b) PROVISION OF TRAINING AND TECHNICAL AS20 SISTANCE.—The Secretary shall provide a State agency

21 that assumes administrative responsibility for a program

22 from the Secretary on or before October 1, 2000, with

23 training and technical assistance to allow for an efficient

24 and effective transfer of the responsibility.’’.
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1 (c) CONFORMING AMENDMENT.—Section

2 11(a)(1)(A) of the National School Lunch Act (42 U.S.C.

3 1759a(a)(1)(A)) is amended by striking ‘‘Except as pro4 vided in section 10 of this Act, in’’ and inserting ‘‘In’’.

5 SEC. 104. REQUIREMENT FOR HEALTH AND SAFETY IN6 SPECTIONS.

7 Section 9 of the National School Lunch Act (42

8 U.S.C. 1758) is amended by adding at the end the follow9 ing:

10 ‘‘(h) HEALTH AND SAFETY INSPECTIONS.—A school

11 participating in the school lunch program authorized

12 under this Act or the school breakfast program authorized

13 under section 4 of the Child Nutrition Act of 1966 (42

14 U.S.C. 1773) in which meals are prepared on site shall,

15 at least twice during each school year, obtain an inspection

16 that indicates that food service operations of the school

17 meet State and local health and safety standards.’’.

18 SEC. 105. ELIMINATION OF FOOD AND NUTRITION

19 PROJECTS AND ESTABLISHMENT OF AN ADE20 QUATE MEAL SERVICE PERIOD.

21 Section 12 of the National School Lunch Act (42

22 U.S.C. 1760) is amended by striking subsection (m) and

23 inserting the following:

24 ‘‘(m) LENGTH OF MEAL SERVICE PERIOD AND FOOD

25 SERVICE ENVIRONMENT.—A school participating in the
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1 school lunch program authorized under this Act or the

2 school breakfast program authorized under section 4 of

3 the Child Nutrition Act of 1966 (42 U.S.C. 1773) shall,

4 to the maximum extent practicable, establish meal service

5 periods that provide children with adequate time to fully

6 consume their meals in an environment that is conducive

7 to eating the meals.’’.

8 SEC. 106. BUY AMERICAN.

9 Section 12 of the National School Lunch Act (42

10 U.S.C. 1760) (as amended by section 105) is amended by

11 adding at the end the following:

12 ‘‘(n) BUY AMERICAN.—

13 ‘‘(1) IN GENERAL.—The Secretary shall require

14 that a school purchase, to the maximum extent prac15 ticable, food products that are produced in the

16 United States.

17 ‘‘(2) LIMITATIONS.—Paragraph (1) shall apply

18 only to—

19 ‘‘(A) a school located in the contiguous

20 United States; and

21 ‘‘(B) a purchase of a food product for the

22 school lunch program authorized under this Act

23 or the school breakfast program authorized

24 under section 4 of the Child Nutrition Act of

25 1966 (42 U.S.C. 1773).’’.
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1 SEC. 107. SUMMER FOOD SERVICE PROGRAM FOR CHIL2 DREN.

3 (a) ADJUSTMENTS TO REIMBURSEMENT RATES.—

4 Section 12 of the National School Lunch Act (42 U.S.C.

5 1760) is amended by striking subsection (f) and inserting

6 the following:

7 ‘‘(f) ADJUSTMENTS TO REIMBURSEMENT RATES.—

8 In providing assistance for breakfasts, lunches, suppers,

9 and supplements served in Alaska, Hawaii, Guam, Amer10 ican Samoa, Puerto Rico, the Virgin Islands, and the

11 Commonwealth of the Northern Mariana Islands, the Sec12 retary may establish appropriate adjustments for each

13 such State to the national average payment rates pre14 scribed under sections 4, 11, 13 and 17 of this Act and

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

16 1773) to reflect the differences between the costs of pro17 viding meals in those States and the costs of providing

18 meals in all other States.’’.

19 (b) ESTABLISHMENT OF SITE LIMITATION.—Section

20 13(a)(7)(B) of the National School Lunch Act (42 U.S.C.

21 1761(a)(7)(B)) is amended by striking clause (i) and in22 serting the following:

23 ‘‘(i) operate—

24 ‘‘(I) not more than 25 sites, with not more

25 than 300 children being served at any 1 site; or
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1 ‘‘(II) with a waiver granted by the State

2 agency under standards developed by the Sec3 retary, with not more than 500 children being

4 served at any 1 site;’’.

5 (c) ELIMINATION OF INDICATION OF INTEREST RE6 QUIREMENT, REMOVAL OF MEAL CONTRACTING RESTRIC7 TIONS, AND VENDOR REGISTRATION REQUIREMENTS.—

8 Section 13 of the National School Lunch Act (42 U.S.C.

9 1761) is amended—

10 (1) in subsection (a)(7)(B)—

11 (A) by striking clauses (ii) and (iii); and

12 (B) by redesignating clauses (iv) through

13 (vii) as clauses (ii) through (v) respectively; and

14 (2) in subsection (l)—

15 (A) in paragraph (1)—

16 (i) in the first sentence—

17 (I) by striking ‘‘(other than pri18 vate nonprofit organizations eligible

19 under subsection (a)(7))’’; and

20 (II) by striking ‘‘only with food

21 service management companies reg22 istered with the State in which they

23 operate’’ and inserting ‘‘with food

24 service management companies’’; and

25 (ii) by striking the last sentence;
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1 (B) in paragraph (2)—

2 (i) in the first sentence, by striking

3 ‘‘shall’’ and inserting ‘‘may’’; and

4 (ii) by striking the second and third

5 sentences;

6 (C) by striking paragraph (3); and

7 (D) by redesignating paragraphs (4) and

8 (5) as paragraphs (3) and (4), respectively.

9 (d) REAUTHORIZATION OF SUMMER FOOD SERVICE

10 PROGRAM.—Section 13(q) of the National School Lunch

11 Act (42 U.S.C. 1761(q)) is amended by striking ‘‘1998’’

12 and inserting ‘‘2002’’.

13 SEC. 108. COMMODITY DISTRIBUTION PROGRAM.

14 Section 14(a) of the National School Lunch Act (42

15 U.S.C. 1762a(a)) is amended by striking ‘‘1998’’ and in16 serting ‘‘2002’’.

17 SEC. 109. CHILD AND ADULT CARE FOOD PROGRAM.

18 (a) REVISION TO LICENSING AND ALTERNATE AP19 PROVAL FOR SCHOOLS AND OUTSIDE SCHOOL HOURS

20 CHILD CARE CENTERS.—Section 17(a) of the National

21 School Lunch Act (42 U.S.C. 1766(a)) is amended in the

22 fifth sentence by striking paragraph (1) and inserting the

23 following:
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1 ‘‘(1) each institution (other than a school or

2 family or group day care home sponsoring organiza3 tion) and family or group day care home shall—

4 ‘‘(A)(i) have Federal, State, or local licens5 ing or approval; or

6 ‘‘(ii) be complying with appropriate re7 newal procedures as prescribed by the Secretary

8 and not be the subject of information possessed

9 by the State indicating that the license of the

10 institution or home will not be renewed;

11 ‘‘(B) in any case in which Federal, State,

12 or local licensing or approval is not available—

13 ‘‘(i) receive funds under title XX of

14 the Social Security Act (42 U.S.C. 1397 et

15 seq.);

16 ‘‘(ii) meet any alternate approval

17 standards established by a State or local

18 government; or

19 ‘‘(iii) meet any alternate approval

20 standards established by the Secretary,

21 after consultation with the Secretary of

22 Health and Human Services; or

23 ‘‘(C) in any case in which the institution

24 provides care to school children outside school

25 hours and Federal, State, or local licensing or
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1 approval is not required, meet State or local

2 health and safety standards; and’’.

3 (b) REINSTATEMENT OF CATEGORICAL ELIGIBILITY

4 FOR EVEN START PROGRAM PARTICIPANTS.—Section

5 17(c)(6)(B) of the National School Lunch Act (42 U.S.C.

6 1766(c)(6)(B)) is amended by striking ‘‘1997’’ and insert7 ing ‘‘2002’’.

8 (c) TAX EXEMPT STATUS AND REMOVAL OF NOTIFI9 CATION REQUIREMENT FOR INCOMPLETE APPLICA10 TIONS.—Section 17(d)(1) of the National School Lunch

11 Act (42 U.S.C. 1766(d)(1)) is amended—

12 (1) by inserting after the third sentence the fol13 lowing: ‘‘An institution moving toward compliance

14 with the requirement for tax exempt status shall be

15 allowed to participate in the child and adult care

16 food program for a period of not more than 180

17 days, except that a State agency may grant a single

18 extension of not to exceed an additional 90 days if

19 the institution demonstrates, to the satisfaction of

20 the State agency, that the inability of the institution

21 to obtain tax exempt status within the 180-day pe22 riod is due to circumstances beyond the control of

23 the institution.’’; and

24 (2) by striking the last sentence.
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1 (d) DISTRIBUTION OF PROGRAM INFORMATION.—

2 Section 17(k) of the National School Lunch Act (42

3 U.S.C. 1766(k)) is amended—

4 (1) by striking ‘‘A State’’ and inserting the fol5 lowing:

6 ‘‘(1) IN GENERAL.—A State’’; and

7 (2) by adding at the end the following:

8 ‘‘(2) DISTRIBUTION OF PROGRAM INFORMA9 TION.—

10 ‘‘(A) DEFINITION OF NEEDY AREA.—In

11 this paragraph, the term ‘needy area’ means a

12 geographic area served by a school enrolling ele13 mentary students in which at least 50 percent

14 of the total number of children enrolled are cer15 tified as eligible to receive free or reduced price

16 school meals under this Act or the Child Nutri17 tion Act of 1966 (42 U.S.C. 1771 et seq.).

18 ‘‘(B) INFORMATION.—At least once every

19 2 years, each State agency shall provide notifi20 cation of the availability of the program, the re21 quirements for program participation, and the

22 application procedures to be followed under the

23 program to each nonparticipating institution or

24 family or group day care home that—
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1 ‘‘(i) is located in a needy area within

2 the State; and

3 ‘‘(ii)(I) has received Federal, State, or

4 local licensing or approval; or

5 ‘‘(II) receives funds under title XX of

6 the Social Security Act (42 U.S.C. 1397 et

7 seq.).’’.

8 (e) ELIMINATION OF AUDIT FUNDS, ESTABLISH9 MENT OF MANAGEMENT SUPPORT FUNDING, PARTICIPA10 TION BY AT-RISK CHILD CARE PROGRAMS, AND WIC

11 OUTREACH.—Section 17 of the National School Lunch

12 Act (42 U.S.C. 1766) is amended—

13 (1) by striking subsection (i);

14 (2) by redesignating subsections (j) through (p)

15 as subsections (i) through (o), respectively; and

16 (3) by adding at the end the following:

17 ‘‘(p) MANAGEMENT FUNDING.—

18 ‘‘(1) TECHNICAL AND TRAINING ASSISTANCE.—

19 In addition to the normal training and technical as20 sistance provided to State agencies under this sec21 tion, the Secretary shall provide training and tech22 nical assistance in order to assist the State agencies

23 in improving their program management and over24 sight under this section.
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1 ‘‘(2) FUNDING.—For fiscal year 1999 and each

2 succeeding fiscal year, the Secretary shall reserve to

carry out paragraph (1) 1 3 ⁄8 of 1 percent of the

4 amount made available to carry out this section.

5 ‘‘(q) AT-RISK CHILD CARE.—

6 ‘‘(1) DEFINITION OF AT-RISK SCHOOL CHILD.—

7 In this subsection, the term ‘at-risk school child’

8 means a child who—

9 ‘‘(A) is not less than 12 nor more than 18

10 years of age; and

11 ‘‘(B) lives in a geographical area served by

12 a school enrolling elementary students in which

13 at least 50 percent of the total number of chil14 dren enrolled are certified as eligible to receive

15 free or reduced price school meals under this

16 Act or the Child Nutrition Act of 1966 (42

17 U.S.C. 1771 et seq.).

18 ‘‘(2) PARTICIPATION IN CHILD AND ADULT

19 CARE FOOD PROGRAM.—Subject to the other provi20 sions of this subsection, an institution that provides

21 care to at-risk school children during after-school

22 hours, weekends, or holidays during the regular

23 school year may participate in the program author24 ized under this section.
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1 ‘‘(3) ADMINISTRATION.—Except as otherwise

2 provided in this subsection, the other provisions of

3 this section apply to an institution described in para4 graph (2).

5 ‘‘(4) SUPPLEMENT REIMBURSEMENT.—

6 ‘‘(A) LIMITATIONS.—An institution may

7 claim reimbursement under this subsection only

8 for—

9 ‘‘(i) a supplement served to at-risk

10 school children during after-school hours,

11 weekends, or holidays during the regular

12 school year; and

13 ‘‘(ii) 1 supplement per child per day.

14 ‘‘(B) RATE.—A supplement shall be reim15 bursed under this subsection at the rate estab16 lished for a free supplement under subsection

17 (c)(3).

18 ‘‘(C) NO CHARGE.—A supplement claimed

19 for reimbursement under this subsection shall

20 be served without charge.

21 ‘‘(r) INFORMATION CONCERNING THE SPECIAL SUP22 PLEMENTAL NUTRITION PROGRAM FOR WOMEN, IN23 FANTS, AND CHILDREN.—

24 ‘‘(1) IN GENERAL.—The Secretary shall provide

25 each State agency administering a child and adult
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1 care food program under this section with informa2 tion concerning the special supplemental nutrition

3 program for women, infants, and children authorized

4 under section 17 of the Child Nutrition Act of 1966

5 (42 U.S.C. 1786).

6 ‘‘(2) REQUIREMENTS FOR STATE AGENCIES.—A

7 State agency shall ensure that each participating

8 child care center (other than an institution providing

9 care to school children outside school hours)—

10 ‘‘(A) receives materials that include—

11 ‘‘(i) a basic explanation of the impor12 tance and benefits of the special supple13 mental nutrition program for women, in14 fants, and children;

15 ‘‘(ii) the maximum State income eligi16 bility standards, according to family size,

17 for the program; and

18 ‘‘(iii) information concerning how ben19 efits under the program may be obtained;

20 ‘‘(B) is provided updates of the informa21 tion described in subparagraph (A) at least an22 nually; and

23 ‘‘(C) provides the information described in

24 subparagraph (A) to parents of enrolled chil25 dren at least annually.’’.
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1 (f) PERMANENT AUTHORIZATION OF DEMONSTRA2 TION PROJECT.—Section 17(o) of the National School

3 Lunch Act (42 U.S.C. 1766(o)) (as redesignated by sub4 section (e)) is amended by striking paragraphs (4) and

5 (5).

6 SEC. 110. TRANSFER OF HOMELESS ASSISTANCE PRO7 GRAMS TO THE CHILD AND ADULT CARE

8 FOOD PROGRAM.

9 (a) SUMMER FOOD SERVICE PROGRAM FOR CHIL10 DREN.—Section 13(a)(3)(C) of the National School Lunch

11 Act (42 U.S.C. 1761(a)(3)(C)) is amended—

12 (1) in clause (i), by inserting ‘‘or’’ after the

13 semicolon;

14 (2) by striking clause (ii); and

15 (3) by redesignating clause (iii) as clause (ii).

16 (b) CHILD AND ADULT CARE FOOD PROGRAM.—Sec17 tion 17 of the National School Lunch Act (as amended

18 by section 109(e)) is amended—

19 (1) in the third sentence of subsection (a)—

20 (A) by striking ‘‘and public’’ and inserting

21 ‘‘public’’; and

22 (B) by inserting before the period at the

23 following: ‘‘, and emergency shelters described

24 in subsection (s)’’; and

25 (2) by adding at the end the following:
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1 ‘‘(s) PARTICIPATION BY EMERGENCY SHELTERS.—

2 ‘‘(1) DEFINITION OF EMERGENCY SHELTER.—

3 In this subsection, the term ‘emergency shelter’

4 means a public or private nonprofit emergency shel5 ter (as defined in section 321 of the Stewart B.

6 McKinney Homeless Assistance Act (42 U.S.C.

7 11351)), or a site operated by the shelter, that pro8 vides food service to homeless children and their par9 ents or guardians.

10 ‘‘(2) ADMINISTRATION.—Except as otherwise

11 provided in this subsection, the other provisions of

12 this section shall apply to an emergency shelter that

13 is participating in the program authorized under this

14 section.

15 ‘‘(3) INSTITUTION AND SITE LICENSING.—Sub16 section (a)(1) shall not apply to an emergency shel17 ter.

18 ‘‘(4) HEALTH AND SAFETY STANDARDS.—To be

19 eligible to participate in the program authorized

20 under this section, an emergency shelter shall com21 ply with applicable State and local health and safety

22 standards.

23 ‘‘(5) MEAL REIMBURSEMENT.—
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1 ‘‘(A) LIMITATIONS.—An emergency shelter

2 may claim reimbursement under this subsection

3 only for—

4 ‘‘(i) a meal served to children who are

5 not more than 12 years of age residing at

6 the emergency shelter; and

7 ‘‘(ii) not more than 3 meals, or 2

8 meals and 1 supplement, per child per day.

9 ‘‘(B) RATE.—A meal shall be reimbursed

10 under this subsection at the rate established for

11 a free meal under subsection (c).

12 ‘‘(C) NO CHARGE.—A meal claimed for re13 imbursement under this subsection shall be

14 served without charge.’’.

15 (c) HOMELESS CHILDREN NUTRITION PROGRAM.—

16 Section 17B of the National School Lunch Act (42 U.S.C.

17 1766b) is repealed.

18 SEC. 111. ELIMINATION OF PILOT PROJECTS.

19 Section 18 of the National School Lunch Act (42

20 U.S.C. 1769) is amended by striking subsections (e)

21 through (i).

22 SEC. 112. TRAINING AND TECHNICAL ASSISTANCE.

23 Section 21(e)(1) of the National School Lunch Act

24 (42 U.S.C. 1769b–1(e)(1)) is amended by striking ‘‘1998’’

25 and inserting ‘‘2002’’.
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1 SEC. 113. FOOD SERVICE MANAGEMENT INSTITUTE.

2 Section 21(e)(2)(A) of the National School Lunch

3 Act (42 U.S.C. 1769b–1(e)(2)(A)) is amended by striking

4 ‘‘and $2,000,000 for fiscal year 1996’’ and inserting

5 ‘‘$2,000,000 for each of fiscal years 1996 through 1998,

6 and $3,000,000 for fiscal year 1999’’.

7 SEC. 114. COMPLIANCE AND ACCOUNTABILITY.

8 Section 22(d) of the National School Lunch Act (42

9 U.S.C. 1769c(d)) is amended by striking ‘‘1996’’ and in10 serting ‘‘2002’’.

11 SEC. 115. INFORMATION CLEARINGHOUSE.

12 Section 26 of the National School Lunch Act (42

13 U.S.C. 1769g) is amended—

14 (1) in the first sentence of subsection (a), by

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

16 (2) in subsection (b), by striking ‘‘The’’ and in17 serting ‘‘Except as provided in subsection (d), the’’;

18 and

19 (3) by striking subsection (d) and inserting the

20 following:

21 ‘‘(d) NONCOMPETITIVE CONTRACTS.—Notwithstand22 ing any other provision of law, the Secretary may, on a

23 noncompetitive basis, enter into a contract for the services

24 of any organization with which the Secretary has pre25 viously entered into a contract under this section, if the
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1 organization has performed satisfactorily under the con2 tract and meets the requirements of this section.

3 ‘‘(e) FUNDING.—The Secretary may provide to the

4 organization selected under this section an amount not to

5 exceed $150,000 for each of fiscal years 1999 through

6 2002.’’.

7 SEC. 116. REFOCUSING OF EFFORT TO HELP ACCOMMO8 DATE THE SPECIAL DIETARY NEEDS OF INDI9 VIDUALS WITH DISABILITIES.

10 Section 27 of the National School Lunch Act (42

11 U.S.C. 1769h) is amended to read as follows:

12 ‘‘SEC. 27. ACCOMMODATION OF SPECIAL DIETARY NEEDS

13 OF INDIVIDUALS WITH DISABILITIES.

14 ‘‘(a) DEFINITIONS.—In this section:

15 ‘‘(1) COVERED PROGRAM.—The term ‘covered

16 program’ means—

17 ‘‘(A) the school lunch program authorized

18 under this Act;

19 ‘‘(B) the school breakfast program author20 ized under section 4 of the Child Nutrition Act

21 of 1966 (42 U.S.C. 1773); and

22 ‘‘(C) any other program authorized under

23 this Act or the Child Nutrition Act of 1966 (ex24 cept section 17 of that Act) that the Secretary

25 determines is appropriate.
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1 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en2 tity’ means a school food authority, institution, or

3 service institution that participates in a covered pro4 gram.

5 ‘‘(3) INDIVIDUALS WITH DISABILITIES.—The

6 term ‘individual with disabilities’ has the meaning

7 given the term in section 7 of the Rehabilitation Act

8 of 1973 (29 U.S.C. 706) for purposes of title VII of

9 that Act (29 U.S.C. 796 et seq.).

10 ‘‘(b) ACTIVITIES.—The Secretary may carry out ac11 tivities to help accommodate the special dietary needs of

12 individuals with disabilities who are participating in a cov13 ered program, including—

14 ‘‘(1) developing and disseminating to State

15 agencies guidance and technical assistance materials;

16 ‘‘(2) conducting training of State agencies and

17 eligible entities; and

18 ‘‘(3) issuing grants to State agencies and eligi19 ble entities.’’.

20 TITLE II—SCHOOL BREAKFAST

21 AND RELATED PROGRAMS

22 SEC. 201. ELIMINATION OF ADMINISTRATION OF PRO23 GRAMS BY REGIONAL OFFICES.

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

25 U.S.C. 1774) is amended to read as follows:
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1 ‘‘SEC. 5 DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

2 ‘‘(a) AUTHORITY TO ADMINISTER PROGRAMS.—

3 ‘‘(1) IN GENERAL.—Except as provided in para4 graph (3), until September 30, 2000, the Secretary

5 shall withhold funds payable to a State agency under

6 this Act and disburse the funds directly to school

7 food authorities, institutions, and service institutions

8 within the State for the purposes authorized by this

9 Act to the extent that the Secretary has so withheld

10 and disbursed the funds continuously since October

11 1, 1980.

12 ‘‘(2) USE OF FUNDS.—Any funds withheld and

13 disbursed by the Secretary under paragraph (1)

14 shall be used for the same purposes and be subject

15 to the same conditions as apply to disbursing funds

16 made available to States under this Act.

17 ‘‘(3) STATE ADMINISTRATION.—If the Sec18 retary is administering (in whole or in part) any

19 program authorized under this Act in a State, the

20 State may, on request to the Secretary, assume ad21 ministrative responsibility for the program at any

22 time before October 1, 2000.

23 ‘‘(b) PROVISION OF TRAINING AND TECHNICAL AS24 SISTANCE.—The Secretary shall provide a State agency

25 that assumes administrative responsibility for a program

26 from the Secretary on or before October 1, 2000, with
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1 training and technical assistance to allow for an efficient

2 and effective transfer of administrative responsibility.’’.

3 SEC. 202. STATE ADMINISTRATIVE EXPENSES.

4 (a) HOMELESS SHELTERS.—Section 7(a)(5) of the

5 Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)) is

6 amended by striking subparagraph (B) and inserting the

7 following:

8 ‘‘(B) REALLOCATION OF FUNDS.—

9 ‘‘(i) RETURN TO SECRETARY.—For

10 each fiscal year, any amounts appropriated

11 that are not obligated or expended during

12 the fiscal year and are not carried over for

13 the succeeding fiscal year under subpara14 graph (A) shall be returned to the Sec15 retary.

16 ‘‘(ii) REALLOCATION BY SEC17 RETARY.—The Secretary shall allocate, for

18 purposes of administrative costs, any re19 maining amounts among States that dem20 onstrate a need for the amounts.’’.

21 (b) ELIMINATION OF TRANSFER LIMITATION.—Sec22 tion 7(a) of the Child Nutrition Act of 1966 (42 U.S.C.

23 1776(a)) is amended by striking paragraph (6) and insert24 ing the following:
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1 ‘‘(6) USE OF ADMINISTRATIVE FUNDS.—Funds

2 available to a State under this subsection and under

3 section 13(k)(1) of the National School Lunch Act

4 (42 U.S.C. 1761(k)(1)) may be used by the State

5 for the costs of administration of the programs au6 thorized under the National School Lunch Act (42

7 U.S.C. 1751 et seq.) or this Act (except for the pro8 grams authorized under sections 17 and 21 of this

9 Act) without regard to the basis on which the funds

10 were earned and allocated.’’.

11 (c) REAUTHORIZATION OF PROGRAM.—Section 7(g)

12 of the Child Nutrition Act of 1966 (42 U.S.C. 1776(g))

13 is amended by striking ‘‘1998’’ and inserting ‘‘2002’’.

14 SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

15 FOR WOMEN, INFANTS, AND CHILDREN.

16 (a) ADDITIONAL PROGRAM APPLICATION REQUIRE17 MENTS.—Section 17(d)(3) of the Child Nutrition Act of

18 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the

19 end the following:

20 ‘‘(C) PHYSICAL PRESENCE.—An applicant

21 shall be physically present at each certification

22 visit to receive program benefits.

23 ‘‘(D) INCOME DOCUMENTATION.—An ap24 plicant shall provide documentation of house25 hold income, or of participation in a program
27

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1 described in clause (ii) or (iii) of paragraph

2 (2)(A), at certification to be determined to meet

3 income eligibility requirements for the program.

4 ‘‘(E) VERIFICATION.—The Secretary shall

5 issue regulations under this subsection prescrib6 ing when and how verification of income shall

7 be required.’’.

8 (b) DISTRIBUTION OF NUTRITION EDUCATION MA9 TERIALS.—Section 17(e)(3) of the Child Nutrition Act of

10 1966 (42 U.S.C. 1786(e)(3)) is amended—

11 (1) by striking ‘‘(3) The’’ and inserting the fol12 lowing:

13 ‘‘(3) NUTRITION EDUCATION MATERIALS.—

14 ‘‘(A) IN GENERAL.—The’’; and

15 (2) by adding at the end the following:

16 ‘‘(B) SHARING OF MATERIALS WITH

17 CSFP.—The Secretary may provide, in bulk

18 quantity, nutrition education materials (includ19 ing materials promoting breastfeeding) devel20 oped with funds made available for the program

21 authorized under this section to State agencies

22 administering the commodity supplemental food

23 program authorized under sections 4(a) and 5

24 of the Agriculture and Consumer Protection
28

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1 Act of 1973 (Public Law 93–86; 7 U.S.C. 612c

2 note) at no cost to that program.’’.

3 (c) REAUTHORIZATION OF PROGRAM.—Section 17 of

4 the Child Nutrition Act of 1966 (42 U.S.C. 1786) is

5 amended in subsections (g)(1) and (h)(2)(A) by striking

6 ‘‘1998’’ each place it appears and inserting ‘‘2002’’.

7 (d) INFANT FORMULA PROCUREMENT.—Section

8 17(h)(8)(A) of the Child Nutrition Act of 1966 (42 U.S.C.

9 1786(h)(8)(A)) is amended by adding at the end the fol10 lowing:

11 ‘‘(iii) COMPETITIVE BIDDING SYS12 TEM.—A State agency using a competitive

13 bidding system for infant formula shall

14 award a contract to the bidder offering the

15 lowest net price unless the State agency

16 demonstrates to the satisfaction of the Sec17 retary that the weighted average retail

18 price for different brands of infant formula

19 in the State does not vary by more than 5

20 percent.’’.

21 (e) INFRASTRUCTURE AND BREASTFEEDING SUP22 PORT AND PROMOTION.—Section 17(h)(10)(A) of the

23 Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(10)(A))

24 is amended by striking ‘‘1998’’ and inserting ‘‘2002’’.
29

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1 (f) SPEND-FORWARD AUTHORITY.—Section 17(i)(3)

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

3 is amended—

4 (1) in subparagraph (A)—

5 (A) in clause (i), by striking ‘‘and’’ at the

6 end;

7 (B) in clause (ii)—

8 (i) by inserting ‘‘nutrition services and

9 administration’’ after ‘‘amount of’’; and

10 (ii) by striking the period at the end

11 and inserting ‘‘; and’’; and

12 (C) by adding at the end the following:

13 ‘‘(iii) with the prior approval of the

14 Secretary, not more than 4 percent of the

15 amount of funds allocated to a State agen16 cy for nutrition services and administration

17 for a fiscal year under this section may be

18 expended by the State agency during the

19 subsequent fiscal year for the costs of de20 veloping electronic benefit transfer.’’;

21 (2) in subparagraph (B), by striking ‘‘subpara22 graph (A)(ii)’’ and inserting ‘‘clauses (ii) and (iii) of

23 subparagraph (A)’’;

24 (3) by striking subparagraphs (D) through (G);

25 and
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1 (4) by redesignating subparagraph (H) as sub2 paragraph (D).

3 (g) FARMERS MARKET NUTRITION PROGRAM.—

4 (1) MATCHING FUNDS REQUIREMENT.—Section

5 17(m)(3) of the Child Nutrition Act of 1966 (42

6 U.S.C. 1786(m)(3)) is amended by striking ‘‘total’’

7 each place it appears and inserting ‘‘administrative’’.

8 (2) RANKING CRITERIA FOR STATE PLANS.—

9 Section 17(m)(6) of the Child Nutrition Act of 1966

10 (42 U.S.C. 1786(m)(6)) is amended—

11 (A) by striking subparagraph (F); and

12 (B) by redesignating subparagraph (G) as

13 subparagraph (F).

14 (3) FUNDING.—Section 17(m)(9)(A) of the

15 Child Nutrition Act of 1966 (42 U.S.C.

16 1786(m)(9)(A)) is amended by striking ‘‘1998’’ and

17 inserting ‘‘2002’’.

18 (h) DISQUALIFICATION OF CERTAIN VENDORS.—

19 (1) IN GENERAL.—Section 17 of the Child Nu20 trition Act of 1996 (42 U.S.C. 1786) is amended by

21 adding at the end the following:

22 ‘‘(o) DISQUALIFICATION OF VENDORS CONVICTED OF

23 TRAFFICKING OR ILLEGAL SALES.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (4), a State agency shall permanently dis-
31

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1 qualify from participation in the program authorized

2 under this section a vendor convicted of—

3 ‘‘(A) trafficking in food instruments (in4 cluding any voucher, draft, check, or access de5 vice (including an electronic benefit transfer

6 card or personal identification number) issued

7 in lieu of a food instrument under this section);

8 or

9 ‘‘(B) selling firearms, ammunition, explo10 sives, or controlled substances (as defined in

11 section 102 of the Controlled Substances Act

12 (21 U.S.C. 802)) in exchange for food instru13 ments.

14 ‘‘(2) NOTICE OF DISQUALIFICATION.—The

15 State agency shall—

16 ‘‘(A) provide the vendor with notification

17 of the disqualification; and

18 ‘‘(B) make the disqualification effective on

19 the date of receipt of the notice of disqualifica20 tion.

21 ‘‘(3) PROHIBITION OF RECEIPT OF LOST REVE22 NUES.—A vendor shall not be entitled to receive any

23 compensation for revenues lost as a result of dis24 qualification under this subsection.
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1 ‘‘(4) HARDSHIP EXCEPTION IN LIEU OF DIS2 QUALIFICATION.—

3 ‘‘(A) IN GENERAL.— A State agency may

4 permit a vendor that, but for this paragraph,

5 would be disqualified under paragraph (1), to

6 continue to redeem food instruments or other7 wise provide supplemental foods to participants

8 if the State agency determines, in its sole dis9 cretion according to criteria established by the

10 Secretary, that disqualification of the vendor

11 would cause hardship to participants in the pro12 gram authorized under this section.

13 ‘‘(B) CIVIL MONEY PENALTY.—If a State

14 agency authorizes a vendor that, but for this

15 paragraph, would be disqualified to redeem food

16 instruments or provide supplemental foods

17 under subparagraph (A), the State agency shall

18 assess the vendor a civil money penalty in lieu

19 of disqualification.

20 ‘‘(C) AMOUNT.—The State agency shall

21 determine the amount of the civil penalty ac22 cording to criteria established by the Sec23 retary.’’.

24 (2) REGULATIONS.—The amendment made by

25 paragraph (1) shall take effect on the date on which
33

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1 the Secretary of Agriculture issues a final regulation

2 that includes the criteria for—

3 (A) making hardship determinations; and

4 (B) determining the amount of a civil

5 money penalty in lieu of disqualification.

6 SEC. 204. NUTRITION EDUCATION AND TRAINING.

7 Section 19(i) of the Child Nutrition Act of 1966 (42

8 U.S.C. 1788(i)) is amended—

9 (1) by striking the subsection heading and all

10 that follows through paragraph (3)(A) and inserting

11 the following:

12 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) FUNDING.—There are authorized to

15 be appropriated such sums as are necessary to

16 carry out this section for each of fiscal years

17 1997 through 2002.’’; and

18 (2) by redesignating paragraphs (4) and (5) as

19 paragraphs (2) and (3), respectively.

20 TITLE III—COMMODITY

21 DISTRIBUTION PROGRAMS

22 SEC. 301. COMMODITY DISTRIBUTION PROGRAM REFORMS.

23 (a) COMMODITY SPECIFICATIONS.—Section 3(a) of

24 the Commodity Distribution Reform Act and WIC Amend25 ments of 1987 (Public Law 100–237; 7 U.S.C. 612c note)
34

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1 is amended by striking paragraph (2) and inserting the

2 following:

3 ‘‘(2) APPLICABILITY.—Paragraph (1) shall

4 apply to—

5 ‘‘(A) the commodity supplemental food

6 program authorized under sections 4(a) and 5

7 of the Agriculture and Consumer Protection

8 Act of 1973 (Public Law 93–86; 7 U.S.C. 612c

9 note);

10 ‘‘(B) the food distribution program on In11 dian reservations authorized under section 4(b)

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

13 2013(b)); and

14 ‘‘(C) the school lunch program authorized

15 under the National School Lunch Act (42

16 U.S.C. 1751 et seq.).’’.

17 (b) CUSTOMER ACCEPTABILITY INFORMATION.—Sec18 tion 3(f) of the Commodity Distribution Reform Act and

19 WIC Amendments of 1987 (Public Law 100–237; 7

20 U.S.C. 612c note) is amended by striking paragraph (2)

21 and inserting the following:

22 ‘‘(2) CUSTOMER ACCEPTABILITY INFORMA23 TION.—

24 ‘‘(A) IN GENERAL.—The Secretary shall

25 ensure that information with respect to the
35

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1 types and forms of commodities that are most

2 useful is collected from recipient agencies par3 ticipating in programs described in subsection

4 (a)(2).

5 ‘‘(B) FREQUENCY.—The information shall

6 be collected at least once every 2 years.

7 ‘‘(C) ADDITIONAL SUBMISSIONS.—The

8 Secretary—

9 ‘‘(i) may require submission of infor10 mation described in subparagraph (A)

11 from recipient agencies participating in

12 other domestic food assistance programs

13 administered by the Secretary; and

14 ‘‘(ii) shall provide the recipient agen15 cies a means for voluntarily submitting

16 customer acceptability information.’’.

17 SEC. 302. FOOD DISTRIBUTION.

18 (a) IN GENERAL.—Sections 8 through 12 of the

19 Commodity Distribution Reform Act and WIC Amend20 ments of 1987 (Public Law 100–237; 7 U.S.C. 612c note)

21 are amended to read as follows:

22 ‘‘SEC. 8. AUTHORITY TO TRANSFER COMMODITIES BE23 TWEEN PROGRAMS.

24 ‘‘(a) TRANSFER.—Subject to subsection (b), the Sec25 retary may transfer any commodities purchased for a do-
36

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1 mestic food assistance program administered by the Sec2 retary to any other domestic food assistance program ad3 ministered by the Secretary if the transfer is necessary

4 to ensure that the commodities will be used while the com5 modities are still suitable for human consumption.

6 ‘‘(b) REIMBURSEMENT.—The Secretary shall, to the

7 maximum extent practicable, provide reimbursement for

8 the value of the commodities transferred under subsection

9 (a) from accounts available for the purchase of commod10 ities under the program receiving the commodities.

11 ‘‘(c) CREDITING.—Any reimbursement made under

12 subsection (b) shall—

13 ‘‘(1) be credited to the accounts that incurred

14 the costs when the transferred commodities were

15 originally purchased; and

16 ‘‘(2) be available for the purchase of commod17 ities with the same limitations as are provided for

18 appropriated funds for the reimbursed accounts for

19 the fiscal year in which the transfer takes place.

20 ‘‘SEC. 9. AUTHORITY TO RESOLVE CLAIMS.

21 ‘‘(a) IN GENERAL.—The Secretary may determine

22 the amount of, settle, and adjust all or part of a claim

23 arising under a domestic food assistance program adminis24 tered by the Secretary.
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1 ‘‘(b) WAIVERS.—The Secretary may waive a claim

2 described in subsection (a) if the Secretary determines

3 that a waiver would serve the purposes of the program.

4 ‘‘(c) AUTHORITY OF THE ATTORNEY GENERAL.—

5 Nothing in this section diminishes the authority of the At6 torney General under section 516 of title 28, United

7 States Code, or any other provision of law, to supervise

8 and conduct litigation on behalf of the United States.

9 ‘‘SEC. 10. PAYMENT OF COSTS ASSOCIATED WITH MANAGE10 MENT OF COMMODITIES THAT POSE A

11 HEALTH OR SAFETY HAZARD.

12 ‘‘(a) IN GENERAL.—The Secretary may use funds

13 available to carry out section 32 of the Act of August 24,

14 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), that

15 are not otherwise committed, for the purpose of reimburs16 ing States for State and local costs associated with com17 modities distributed under any domestic food assistance

18 program administered by the Secretary if the Secretary

19 determines that the commodities pose a health or safety

20 hazard.

21 ‘‘(b) ALLOWABLE COSTS.—The costs—

22 ‘‘(1) may include costs for storage, transpor23 tation, processing, and destruction of the hazardous

24 commodities; and
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1 ‘‘(2) shall be subject to the approval of the Sec2 retary.

3 ‘‘(c) REPLACEMENT COMMODITIES.—

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

5 funds described in subsection (a) for the purpose of

6 purchasing additional commodities if the purchase

7 will expedite replacement of the hazardous commod8 ities.

9 ‘‘(2) RECOVERY.—Use of funds under para10 graph (1) shall not restrict the Secretary from recov11 ering funds or services from a supplier or other en12 tity regarding the hazardous commodities.

13 ‘‘(d) CREDITING OF RECOVERED FUNDS.—Funds re14 covered from a supplier or other entity regarding the haz15 ardous commodities shall—

16 ‘‘(1) be credited to the account available to

17 carry out section 32 of the Act of August 24, 1935

18 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), to the

19 extent the funds represent expenditures from that

20 account under subsections (a) and (c); and

21 ‘‘(2) remain available to carry out the purposes

22 of section 32 of that Act until expended.
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1 ‘‘SEC. 11. AUTHORITY TO ACCEPT COMMODITIES DONATED

2 BY FEDERAL SOURCES.

3 ‘‘(a) IN GENERAL.—The Secretary may accept dona4 tions of commodities from any Federal agency, including

5 commodities of another Federal agency determined to be

6 excess personal property pursuant to section 202(d) of the

7 Federal Property and Administrative Services Act of 1949

8 (40 U.S.C. 483(d)).

9 ‘‘(b) USE.—The Secretary may donate the commod10 ities received under subsection (a) to States for distribu11 tion through any domestic food assistance program admin12 istered by the Secretary.

13 ‘‘(c) PAYMENT.—Notwithstanding section 202(d) of

14 the Federal Property and Administrative Services Act of

15 1949 (40 U.S.C. 483(d)), the Secretary shall not be re16 quired to make any payment in connection with the com17 modities received under subsection (a).’’.

18 (b) EFFECT ON PRIOR AMENDMENTS.—The amend19 ment made by subsection (a) does not affect the amend20 ments made by sections 8 through 12 of the Commodity

21 Distribution Reform Act and WIC Amendments of 1987

22 (Public Law 100–237; 7 U.S.C. 612c note), as in effect

23 on September 30, 1998.
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1 TITLE IV—EFFECTIVE DATE

2 SEC. 401. EFFECTIVE DATE.

3 Except as provided in section 203(h)(2), this Act and

4 the amendments made by this Act take effect on October

5 1, 1998.

Æ