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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2166 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Nutrition 
and WIC Reauthorization Amendments of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

Sec. 101. 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.

               TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS

SEC. 101. TECHNICAL AMENDMENTS TO COMMODITY PROVISIONS.

    (a) In General.--Section 6 of the National School Lunch Act (42 
U.S.C. 1755) is amended--
            (1) by striking subsections (c) and (d); and
            (2) by redesignating subsections (e), (f), and (g) as 
        subsections (c), (d), and (e), respectively.
    (b) Conforming Amendments.--The National School Lunch Act is 
amended by striking ``section 6(e)'' each place it appears in sections 
14(f), 16(a), and 17(h)(1)(B) (42 U.S.C. 1762a(f), 1765(a), 
1766(h)(1)(B)) and inserting ``section 6(c)''.

SEC. 102. AVAILABILITY OF RECOVERED FUNDS FOR MANAGEMENT ACTIVITY.

    Section 8 of the National School Lunch Act (42 U.S.C. 1757) is 
amended by adding at the end the following:
    ``(h) Retention and Use of Recovered Program Funds.--
            ``(1) Retention.--A State agency may retain up to 50 
        percent of any program funds recovered as a result of an audit 
        or review conducted by the State agency of school food 
        authorities, institutions, and service institutions 
        participating in food assistance programs authorized under this 
        Act or section 3 or 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1772, 1773).
            ``(2) Use.--Funds retained by a State agency under this 
        subsection shall be used by the State agency for allowable 
        program costs to improve the management and operation of 
        programs described in paragraph (1) within the State, including 
        the cost of providing funds to school food authorities, 
        institutions, and service institutions participating in the 
        programs.''.

SEC. 103. ELIMINATION OF ADMINISTRATION OF PROGRAMS BY REGIONAL 
              OFFICES.

    (a) Matching Requirement.--Section 7(b) of the National School 
Lunch Act (42 U.S.C. 1756(b)) is amended by striking the second 
sentence.
    (b) Disbursement to Schools by the Secretary.--Section 10 of the 
National School Lunch Act (42 U.S.C. 1759) is amended to read as 
follows:

``SEC. 10. DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

    ``(a) Authority To Administer Programs.--
            ``(1) In general.--Except as provided in paragraph (3), 
        until September 30, 2000, the Secretary shall withhold funds 
        payable to a State agency under this Act and disburse the funds 
        directly to school food authorities, institutions, and service 
        institutions within the State for the purposes authorized by 
        this Act to the extent that the Secretary has so withheld and 
        disbursed the funds continuously since October 1, 1980.
            ``(2) Use of funds.--Any funds withheld and disbursed by 
        the Secretary under paragraph (1) shall be used for the same 
        purposes and be subject to the same conditions as apply to 
        disbursing funds made available to States under this Act.
            ``(3) State administration.--If the Secretary is 
        administering (in whole or in part) any program authorized 
        under this Act in a State, the State may, on request to the 
        Secretary, assume administrative responsibility for the program 
        at any time before October 1, 2000.
    ``(b) Provision of Training and Technical Assistance.--The 
Secretary shall provide a State agency that assumes administrative 
responsibility for a program from the Secretary on or before October 1, 
2000, with training and technical assistance to allow for an efficient 
and effective transfer of the responsibility.''.
    (c) Conforming Amendment.--Section 11(a)(1)(A) of the National 
School Lunch Act (42 U.S.C. 1759a(a)(1)(A)) is amended by striking 
``Except as provided in section 10 of this Act, in'' and inserting 
``In''.

SEC. 104. REQUIREMENT FOR HEALTH AND SAFETY INSPECTIONS.

    Section 9 of the National School Lunch Act (42 U.S.C. 1758) is 
amended by adding at the end the following:
    ``(h) Health and Safety Inspections.--A school participating in the 
school lunch program authorized under this Act or the school breakfast 
program authorized under section 4 of the Child Nutrition Act of 1966 
(42 U.S.C. 1773) in which meals are prepared on site shall, at least 
twice during each school year, obtain an inspection that indicates that 
food service operations of the school meet State and local health and 
safety standards.''.

SEC. 105. ELIMINATION OF FOOD AND NUTRITION PROJECTS AND ESTABLISHMENT 
              OF AN ADEQUATE MEAL SERVICE PERIOD.

    Section 12 of the National School Lunch Act (42 U.S.C. 1760) is 
amended by striking subsection (m) and inserting the following:
    ``(m) Length of Meal Service Period and Food Service Environment.--
A school participating in the school lunch program authorized under 
this Act or the school breakfast program authorized under section 4 of 
the Child Nutrition Act of 1966 (42 U.S.C. 1773) shall, to the maximum 
extent practicable, establish meal service periods that provide 
children with adequate time to fully consume their meals in an 
environment that is conducive to eating the meals.''.

SEC. 106. BUY AMERICAN.

    Section 12 of the National School Lunch Act (42 U.S.C. 1760) (as 
amended by section 105) is amended by adding at the end the following:
    ``(n) Buy American.--
            ``(1) In general.--The Secretary shall require that a 
        school purchase, to the maximum extent practicable, food 
        products that are produced in the United States.
            ``(2) Limitations.--Paragraph (1) shall apply only to--
                    ``(A) a school located in the contiguous United 
                States; and
                    ``(B) a purchase of a food product for the school 
                lunch program authorized under this Act or the school 
                breakfast program authorized under section 4 of the 
                Child Nutrition Act of 1966 (42 U.S.C. 1773).''.

SEC. 107. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Adjustments to Reimbursement Rates.--Section 12 of the National 
School Lunch Act (42 U.S.C. 1760) is amended by striking subsection (f) 
and inserting the following:
    ``(f) Adjustments to Reimbursement Rates.--In providing assistance 
for breakfasts, lunches, suppers, and supplements served in Alaska, 
Hawaii, Guam, American Samoa, Puerto Rico, the Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands, the Secretary may 
establish appropriate adjustments for each such State to the national 
average payment rates prescribed under sections 4, 11, 13 and 17 of 
this Act and section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
1773) to reflect the differences between the costs of providing meals 
in those States and the costs of providing meals in all other 
States.''.
    (b) Establishment of Site Limitation.--Section 13(a)(7)(B) of the 
National School Lunch Act (42 U.S.C. 1761(a)(7)(B)) is amended by 
striking clause (i) and inserting the following:
            ``(i) operate--
                    ``(I) not more than 25 sites, with not more than 
                300 children being served at any 1 site; or
                    ``(II) with a waiver granted by the State agency 
                under standards developed by the Secretary, with not 
                more than 500 children being served at any 1 site;''.
    (c) Elimination of Indication of Interest Requirement, Removal of 
Meal Contracting Restrictions, and Vendor Registration Requirements.--
Section 13 of the National School Lunch Act (42 U.S.C. 1761) is 
amended--
            (1) in subsection (a)(7)(B)--
                    (A) by striking clauses (ii) and (iii); and
                    (B) by redesignating clauses (iv) through (vii) as 
                clauses (ii) through (v) respectively; and
            (2) in subsection (l)--
                    (A) in paragraph (1)--
                            (i) in the first sentence--
                                    (I) by striking ``(other than 
                                private nonprofit organizations 
                                eligible under subsection (a)(7))''; 
                                and
                                    (II) by striking ``only with food 
                                service management companies registered 
                                with the State in which they operate'' 
                                and inserting ``with food service 
                                management companies''; and
                            (ii) by striking the last sentence;
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking 
                        ``shall'' and inserting ``may''; and
                            (ii) by striking the second and third 
                        sentences;
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (d) Reauthorization of Summer Food Service Program.--Section 13(q) 
of the National School Lunch Act (42 U.S.C. 1761(q)) is amended by 
striking ``1998'' and inserting ``2002''.

SEC. 108. COMMODITY DISTRIBUTION PROGRAM.

    Section 14(a) of the National School Lunch Act (42 U.S.C. 1762a(a)) 
is amended by striking ``1998'' and inserting ``2002''.

SEC. 109. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Revision to Licensing and Alternate Approval for Schools and 
Outside School Hours Child Care Centers.--Section 17(a) of the National 
School Lunch Act (42 U.S.C. 1766(a)) is amended in the fifth sentence 
by striking paragraph (1) and inserting the following:
            ``(1) each institution (other than a school or family or 
        group day care home sponsoring organization) and family or 
        group day care home shall--
                    ``(A)(i) have Federal, State, or local licensing or 
                approval; or
                    ``(ii) be complying with appropriate renewal 
                procedures as prescribed by the Secretary and not be 
                the subject of information possessed by the State 
                indicating that the license of the institution or home 
                will not be renewed;
                    ``(B) in any case in which Federal, State, or local 
                licensing or approval is not available--
                            ``(i) receive funds under title XX of the 
                        Social Security Act (42 U.S.C. 1397 et seq.);
                            ``(ii) meet any alternate approval 
                        standards established by a State or local 
                        government; or
                            ``(iii) meet any alternate approval 
                        standards established by the Secretary, after 
                        consultation with the Secretary of Health and 
                        Human Services; or
                    ``(C) in any case in which the institution provides 
                care to school children outside school hours and 
                Federal, State, or local licensing or approval is not 
                required, meet State or local health and safety 
                standards; and''.
    (b) Reinstatement of Categorical Eligibility for Even Start Program 
Participants.--Section 17(c)(6)(B) of the National School Lunch Act (42 
U.S.C. 1766(c)(6)(B)) is amended by striking ``1997'' and inserting 
``2002''.
    (c) Tax Exempt Status and Removal of Notification Requirement for 
Incomplete Applications.--Section 17(d)(1) of the National School Lunch 
Act (42 U.S.C. 1766(d)(1)) is amended--
            (1) by inserting after the third sentence the following: 
        ``An institution moving toward compliance with the requirement 
        for tax exempt status shall be allowed to participate in the 
        child and adult care food program for a period of not more than 
        180 days, except that a State agency may grant a single 
        extension of not to exceed an additional 90 days if the 
        institution demonstrates, to the satisfaction of the State 
        agency, that the inability of the institution to obtain tax 
        exempt status within the 180-day period is due to circumstances 
        beyond the control of the institution.''; and
            (2) by striking the last sentence.
    (d) Distribution of Program Information.--Section 17(k) of the 
National School Lunch Act (42 U.S.C. 1766(k)) is amended--
            (1) by striking ``A State'' and inserting the following:
            ``(1) In general.--A State''; and
            (2) by adding at the end the following:
            ``(2) Distribution of program information.--
                    ``(A) Definition of needy area.--In this paragraph, 
                the term `needy area' means a geographic area served by 
                a school enrolling elementary students in which at 
                least 50 percent of the total number of children 
                enrolled are certified as eligible to receive free or 
                reduced price school meals under this Act or the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
                    ``(B) Information.--At least once every 2 years, 
                each State agency shall provide notification of the 
                availability of the program, the requirements for 
                program participation, and the application procedures 
                to be followed under the program to each 
                nonparticipating institution or family or group day 
                care home that--
                            ``(i) is located in a needy area within the 
                        State; and
                            ``(ii)(I) has received Federal, State, or 
                        local licensing or approval; or
                            ``(II) receives funds under title XX of the 
                        Social Security Act (42 U.S.C. 1397 et 
                        seq.).''.
    (e) Elimination of Audit Funds, Establishment of Management Support 
Funding, Participation by At-Risk Child Care Programs, and WIC 
Outreach.--Section 17 of the National School Lunch Act (42 U.S.C. 1766) 
is amended--
            (1) by striking subsection (i);
            (2) by redesignating subsections (j) through (p) as 
        subsections (i) through (o), respectively; and
            (3) by adding at the end the following:
    ``(p) Management Funding.--
            ``(1) Technical and training assistance.--In addition to 
        the normal training and technical assistance provided to State 
        agencies under this section, the Secretary shall provide 
        training and technical assistance in order to assist the State 
        agencies in improving their program management and oversight 
        under this section.
            ``(2) Funding.--For fiscal year 1999 and each succeeding 
        fiscal year, the Secretary shall reserve to carry out paragraph 
        (1) \1/8\ of 1 percent of the amount made available to carry 
        out this section.
    ``(q) At-Risk Child Care.--
            ``(1) Definition of at-risk school child.--In this 
        subsection, the term `at-risk school child' means a child who--
                    ``(A) is not less than 12 nor more than 18 years of 
                age; and
                    ``(B) lives in a geographical area served by a 
                school enrolling elementary students in which at least 
                50 percent of the total number of children enrolled are 
                certified as eligible to receive free or reduced price 
                school meals under this Act or the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.).
            ``(2) Participation in child and adult care food program.--
        Subject to the other provisions of this subsection, an 
        institution that provides care to at-risk school children 
        during after-school hours, weekends, or holidays during the 
        regular school year may participate in the program authorized 
        under this section.
            ``(3) Administration.--Except as otherwise provided in this 
        subsection, the other provisions of this section apply to an 
        institution described in paragraph (2).
            ``(4) Supplement reimbursement.--
                    ``(A) Limitations.--An institution may claim 
                reimbursement under this subsection only for--
                            ``(i) a supplement served to at-risk school 
                        children during after-school hours, weekends, 
                        or holidays during the regular school year; and
                            ``(ii) 1 supplement per child per day.
                    ``(B) Rate.--A supplement shall be reimbursed under 
                this subsection at the rate established for a free 
                supplement under subsection (c)(3).
                    ``(C) No charge.--A supplement claimed for 
                reimbursement under this subsection shall be served 
                without charge.
    ``(r) Information Concerning the Special Supplemental Nutrition 
Program for Women, Infants, and Children.--
            ``(1) In general.--The Secretary shall provide each State 
        agency administering a child and adult care food program under 
        this section with information concerning the special 
        supplemental nutrition program for women, infants, and children 
        authorized under section 17 of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786).
            ``(2) Requirements for state agencies.--A State agency 
        shall ensure that each participating child care center (other 
        than an institution providing care to school children outside 
        school hours)--
                    ``(A) receives materials that include--
                            ``(i) a basic explanation of the importance 
                        and benefits of the special supplemental 
                        nutrition program for women, infants, and 
                        children;
                            ``(ii) the maximum State income eligibility 
                        standards, according to family size, for the 
                        program; and
                            ``(iii) information concerning how benefits 
                        under the program may be obtained;
                    ``(B) is provided updates of the information 
                described in subparagraph (A) at least annually; and
                    ``(C) provides the information described in 
                subparagraph (A) to parents of enrolled children at 
                least annually.''.
    (f) Permanent Authorization of Demonstration Project.--Section 
17(o) of the National School Lunch Act (42 U.S.C. 1766(o)) (as 
redesignated by subsection (e)) is amended by striking paragraphs (4) 
and (5).

SEC. 110. TRANSFER OF HOMELESS ASSISTANCE PROGRAMS TO THE CHILD AND 
              ADULT CARE FOOD PROGRAM.

    (a) Summer Food Service Program for Children.--Section 13(a)(3)(C) 
of the National School Lunch Act (42 U.S.C. 1761(a)(3)(C)) is amended--
            (1) in clause (i), by inserting ``or'' after the semicolon;
            (2) by striking clause (ii); and
            (3) by redesignating clause (iii) as clause (ii).
    (b) Child and Adult Care Food Program.--Section 17 of the National 
School Lunch Act (as amended by section 109(e)) is amended--
            (1) in the third sentence of subsection (a)--
                    (A) by striking ``and public'' and inserting 
                ``public''; and
                    (B) by inserting before the period at the 
                following: ``, and emergency shelters described in 
                subsection (s)''; and
            (2) by adding at the end the following:
    ``(s) Participation by Emergency Shelters.--
            ``(1) Definition of emergency shelter.--In this subsection, 
        the term `emergency shelter' means a public or private 
        nonprofit emergency shelter (as defined in section 321 of the 
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11351)), 
        or a site operated by the shelter, that provides food service 
        to homeless children and their parents or guardians.
            ``(2) Administration.--Except as otherwise provided in this 
        subsection, the other provisions of this section shall apply to 
        an emergency shelter that is participating in the program 
        authorized under this section.
            ``(3) Institution and site licensing.--Subsection (a)(1) 
        shall not apply to an emergency shelter.
            ``(4) Health and safety standards.--To be eligible to 
        participate in the program authorized under this section, an 
        emergency shelter shall comply with applicable State and local 
        health and safety standards.
            ``(5) Meal reimbursement.--
                    ``(A) Limitations.--An emergency shelter may claim 
                reimbursement under this subsection only for--
                            ``(i) a meal served to children who are not 
                        more than 12 years of age residing at the 
                        emergency shelter; and
                            ``(ii) not more than 3 meals, or 2 meals 
                        and 1 supplement, per child per day.
                    ``(B) Rate.--A meal shall be reimbursed under this 
                subsection at the rate established for a free meal 
                under subsection (c).
                    ``(C) No charge.--A meal claimed for reimbursement 
                under this subsection shall be served without 
                charge.''.
    (c) Homeless Children Nutrition Program.--Section 17B of the 
National School Lunch Act (42 U.S.C. 1766b) is repealed.

SEC. 111. ELIMINATION OF PILOT PROJECTS.

    Section 18 of the National School Lunch Act (42 U.S.C. 1769) is 
amended by striking subsections (e) through (i).

SEC. 112. TRAINING AND TECHNICAL ASSISTANCE.

    Section 21(e)(1) of the National School Lunch Act (42 U.S.C. 1769b-
1(e)(1)) is amended by striking ``1998'' and inserting ``2002''.

SEC. 113. FOOD SERVICE MANAGEMENT INSTITUTE.

    Section 21(e)(2)(A) of the National School Lunch Act (42 U.S.C. 
1769b-1(e)(2)(A)) is amended by striking ``and $2,000,000 for fiscal 
year 1996'' and inserting ``$2,000,000 for each of fiscal years 1996 
through 1998, and $3,000,000 for fiscal year 1999''.

SEC. 114. COMPLIANCE AND ACCOUNTABILITY.

    Section 22(d) of the National School Lunch Act (42 U.S.C. 1769c(d)) 
is amended by striking ``1996'' and inserting ``2002''.

SEC. 115. INFORMATION CLEARINGHOUSE.

    Section 26 of the National School Lunch Act (42 U.S.C. 1769g) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``shall'' and inserting ``may'';
            (2) in subsection (b), by striking ``The'' and inserting 
        ``Except as provided in subsection (d), the''; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Noncompetitive Contracts.--Notwithstanding any other 
provision of law, the Secretary may, on a noncompetitive basis, enter 
into a contract for the services of any organization with which the 
Secretary has previously entered into a contract under this section, if 
the organization has performed satisfactorily under the contract and 
meets the requirements of this section.
    ``(e) Funding.--The Secretary may provide to the organization 
selected under this section an amount not to exceed $150,000 for each 
of fiscal years 1999 through 2002.''.

SEC. 116. REFOCUSING OF EFFORT TO HELP ACCOMMODATE THE SPECIAL DIETARY 
              NEEDS OF INDIVIDUALS WITH DISABILITIES.

    Section 27 of the National School Lunch Act (42 U.S.C. 1769h) is 
amended to read as follows:

``SEC. 27. ACCOMMODATION OF SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Covered program.--The term `covered program' means--
                    ``(A) the school lunch program authorized under 
                this Act;
                    ``(B) the school breakfast program authorized under 
                section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773); and
                    ``(C) any other program authorized under this Act 
                or the Child Nutrition Act of 1966 (except section 17 
                of that Act) that the Secretary determines is 
                appropriate.
            ``(2) Eligible entity.--The term `eligible entity' means a 
        school food authority, institution, or service institution that 
        participates in a covered program.
            ``(3) Individuals with disabilities.--The term `individual 
        with disabilities' has the meaning given the term in section 7 
        of the Rehabilitation Act of 1973 (29 U.S.C. 706) for purposes 
        of title VII of that Act (29 U.S.C. 796 et seq.).
    ``(b) Activities.--The Secretary may carry out activities to help 
accommodate the special dietary needs of individuals with disabilities 
who are participating in a covered program, including--
            ``(1) developing and disseminating to State agencies 
        guidance and technical assistance materials;
            ``(2) conducting training of State agencies and eligible 
        entities; and
            ``(3) issuing grants to State agencies and eligible 
        entities.''.

            TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS

SEC. 201. ELIMINATION OF ADMINISTRATION OF PROGRAMS BY REGIONAL 
              OFFICES.

    Section 5 of the Child Nutrition Act of 1966 (42 U.S.C. 1774) is 
amended to read as follows:

``SEC. 5 DISBURSEMENT TO SCHOOLS BY THE SECRETARY.

    ``(a) Authority To Administer Programs.--
            ``(1) In general.--Except as provided in paragraph (3), 
        until September 30, 2000, the Secretary shall withhold funds 
        payable to a State agency under this Act and disburse the funds 
        directly to school food authorities, institutions, and service 
        institutions within the State for the purposes authorized by 
        this Act to the extent that the Secretary has so withheld and 
        disbursed the funds continuously since October 1, 1980.
            ``(2) Use of funds.--Any funds withheld and disbursed by 
        the Secretary under paragraph (1) shall be used for the same 
        purposes and be subject to the same conditions as apply to 
        disbursing funds made available to States under this Act.
            ``(3) State administration.--If the Secretary is 
        administering (in whole or in part) any program authorized 
        under this Act in a State, the State may, on request to the 
        Secretary, assume administrative responsibility for the program 
        at any time before October 1, 2000.
    ``(b) Provision of Training and Technical Assistance.--The 
Secretary shall provide a State agency that assumes administrative 
responsibility for a program from the Secretary on or before October 1, 
2000, with training and technical assistance to allow for an efficient 
and effective transfer of administrative responsibility.''.

SEC. 202. STATE ADMINISTRATIVE EXPENSES.

    (a) Homeless Shelters.--Section 7(a)(5) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1776(a)(5)) is amended by striking subparagraph (B) 
and inserting the following:
                    ``(B) Reallocation of funds.--
                            ``(i) Return to secretary.--For each fiscal 
                        year, any amounts appropriated that are not 
                        obligated or expended during the fiscal year 
                        and are not carried over for the succeeding 
                        fiscal year under subparagraph (A) shall be 
                        returned to the Secretary.
                            ``(ii) Reallocation by secretary.--The 
                        Secretary shall allocate, for purposes of 
                        administrative costs, any remaining amounts 
                        among States that demonstrate a need for the 
                        amounts.''.
    (b) Elimination of Transfer Limitation.--Section 7(a) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776(a)) is amended by striking 
paragraph (6) and inserting the following:
            ``(6) Use of administrative funds.--Funds available to a 
        State under this subsection and under section 13(k)(1) of the 
        National School Lunch Act (42 U.S.C. 1761(k)(1)) may be used by 
        the State for the costs of administration of the programs 
        authorized under the National School Lunch Act (42 U.S.C. 1751 
et seq.) or this Act (except for the programs authorized under sections 
17 and 21 of this Act) without regard to the basis on which the funds 
were earned and allocated.''.
    (c) Reauthorization of Program.--Section 7(g) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776(g)) is amended by striking 
``1998'' and inserting ``2002''.

SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
              AND CHILDREN.

    (a) Additional Program Application Requirements.--Section 17(d)(3) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by 
adding at the end the following:
                    ``(C) Physical presence.--An applicant shall be 
                physically present at each certification visit to 
                receive program benefits.
                    ``(D) Income documentation.--An applicant shall 
                provide documentation of household income, or of 
                participation in a program described in clause (ii) or 
                (iii) of paragraph (2)(A), at certification to be 
                determined to meet income eligibility requirements for 
                the program.
                    ``(E) Verification.--The Secretary shall issue 
                regulations under this subsection prescribing when and 
                how verification of income shall be required.''.
    (b) Distribution of Nutrition Education Materials.--Section 
17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(e)(3)) is 
amended--
            (1) by striking ``(3) The'' and inserting the following:
            ``(3) Nutrition education materials.--
                    ``(A) In general.--The''; and
            (2) by adding at the end the following:
                    ``(B) Sharing of materials with csfp.--The 
                Secretary may provide, in bulk quantity, nutrition 
                education materials (including materials promoting 
                breastfeeding) developed with funds made available for 
                the program authorized under this section to State 
                agencies administering the commodity supplemental food 
                program authorized under sections 4(a) and 5 of the 
                Agriculture and Consumer Protection Act of 1973 (Public 
                Law 93-86; 7 U.S.C. 612c note) at no cost to that 
                program.''.
    (c) Reauthorization of Program.--Section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786) is amended in subsections (g)(1) and 
(h)(2)(A) by striking ``1998'' each place it appears and inserting 
``2002''.
    (d) Infant Formula Procurement.--Section 17(h)(8)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is amended by adding at 
the end the following:
                            ``(iii) Competitive bidding system.--A 
                        State agency using a competitive bidding system 
                        for infant formula shall award a contract to 
                        the bidder offering the lowest net price unless 
                        the State agency demonstrates to the 
                        satisfaction of the Secretary that the weighted 
                        average retail price for different brands of 
                        infant formula in the State does not vary by 
                        more than 5 percent.''.
    (e) Infrastructure and Breastfeeding Support and Promotion.--
Section 17(h)(10)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(10)(A)) is amended by striking ``1998'' and inserting ``2002''.
    (f) Spend-Forward Authority.--Section 17(i)(3) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii)--
                            (i) by inserting ``nutrition services and 
                        administration'' after ``amount of''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) with the prior approval of the 
                        Secretary, not more than 4 percent of the 
                        amount of funds allocated to a State agency for 
                        nutrition services and administration for a 
                        fiscal year under this section may be expended 
                        by the State agency during the subsequent 
                        fiscal year for the costs of developing 
                        electronic benefit transfer.'';
            (2) in subparagraph (B), by striking ``subparagraph 
        (A)(ii)'' and inserting ``clauses (ii) and (iii) of 
        subparagraph (A)'';
            (3) by striking subparagraphs (D) through (G); and
            (4) by redesignating subparagraph (H) as subparagraph (D).
    (g) Farmers Market Nutrition Program.--
            (1) Matching funds requirement.--Section 17(m)(3) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended 
        by striking ``total'' each place it appears and inserting 
        ``administrative''.
            (2) Ranking criteria for state plans.--Section 17(m)(6) of 
        the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is 
        amended--
                    (A) by striking subparagraph (F); and
                    (B) by redesignating subparagraph (G) as 
                subparagraph (F).
            (3) Funding.--Section 17(m)(9)(A) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by striking 
        ``1998'' and inserting ``2002''.
    (h) Disqualification of Certain Vendors.--
            (1) In general.--Section 17 of the Child Nutrition Act of 
        1996 (42 U.S.C. 1786) is amended by adding at the end the 
        following:
    ``(o) Disqualification of Vendors Convicted of Trafficking or 
Illegal Sales.--
            ``(1) In general.--Except as provided in paragraph (4), a 
        State agency shall permanently disqualify from participation in 
        the program authorized under this section a vendor convicted 
        of--
                    ``(A) trafficking in food instruments (including 
                any voucher, draft, check, or access device (including 
                an electronic benefit transfer card or personal 
                identification number) issued in lieu of a food 
instrument under this section); or
                    ``(B) selling firearms, ammunition, explosives, or 
                controlled substances (as defined in section 102 of the 
                Controlled Substances Act (21 U.S.C. 802)) in exchange 
                for food instruments.
            ``(2) Notice of disqualification.--The State agency shall--
                    ``(A) provide the vendor with notification of the 
                disqualification; and
                    ``(B) make the disqualification effective on the 
                date of receipt of the notice of disqualification.
            ``(3) Prohibition of receipt of lost revenues.--A vendor 
        shall not be entitled to receive any compensation for revenues 
        lost as a result of disqualification under this subsection.
            ``(4) Hardship exception in lieu of disqualification.--
                    ``(A) In general.-- A State agency may permit a 
                vendor that, but for this paragraph, would be 
                disqualified under paragraph (1), to continue to redeem 
                food instruments or otherwise provide supplemental 
                foods to participants if the State agency determines, 
                in its sole discretion according to criteria 
                established by the Secretary, that disqualification of 
                the vendor would cause hardship to participants in the 
                program authorized under this section.
                    ``(B) Civil money penalty.--If a State agency 
                authorizes a vendor that, but for this paragraph, would 
                be disqualified to redeem food instruments or provide 
                supplemental foods under subparagraph (A), the State 
                agency shall assess the vendor a civil money penalty in 
                lieu of disqualification.
                    ``(C) Amount.--The State agency shall determine the 
                amount of the civil penalty according to criteria 
                established by the Secretary.''.
            (2) Regulations.--The amendment made by paragraph (1) shall 
        take effect on the date on which the Secretary of Agriculture 
        issues a final regulation that includes the criteria for--
                    (A) making hardship determinations; and
                    (B) determining the amount of a civil money penalty 
                in lieu of disqualification.

SEC. 204. NUTRITION EDUCATION AND TRAINING.

    Section 19(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(i)) is amended--
            (1) by striking the subsection heading and all that follows 
        through paragraph (3)(A) and inserting the following:
    ``(i) Authorization of Appropriations.--
            ``(1) In general.--
                    ``(A) Funding.--There are authorized to be 
                appropriated such sums as are necessary to carry out 
                this section for each of fiscal years 1997 through 
                2002.''; and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (2) and (3), respectively.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

SEC. 301. COMMODITY DISTRIBUTION PROGRAM REFORMS.

    (a) Commodity Specifications.--Section 3(a) of the Commodity 
Distribution Reform Act and WIC Amendments of 1987 (Public Law 100-237; 
7 U.S.C. 612c note) is amended by striking paragraph (2) and inserting 
the following:
            ``(2) Applicability.--Paragraph (1) shall apply to--
                    ``(A) the commodity supplemental food program 
                authorized under sections 4(a) and 5 of the Agriculture 
                and Consumer Protection Act of 1973 (Public Law 93-86; 
                7 U.S.C. 612c note);
                    ``(B) the food distribution program on Indian 
                reservations authorized under section 4(b) of the Food 
                Stamp Act of 1977 (7 U.S.C. 2013(b)); and
                    ``(C) the school lunch program authorized under the 
                National School Lunch Act (42 U.S.C. 1751 et seq.).''.
    (b) Customer Acceptability Information.--Section 3(f) of the 
Commodity Distribution Reform Act and WIC Amendments of 1987 (Public 
Law 100-237; 7 U.S.C. 612c note) is amended by striking paragraph (2) 
and inserting the following:
            ``(2) Customer acceptability information.--
                    ``(A) In general.--The Secretary shall ensure that 
                information with respect to the types and forms of 
                commodities that are most useful is collected from 
                recipient agencies participating in programs described 
                in subsection (a)(2).
                    ``(B) Frequency.--The information shall be 
                collected at least once every 2 years.
                    ``(C) Additional submissions.--The Secretary--
                            ``(i) may require submission of information 
                        described in subparagraph (A) from recipient 
                        agencies participating in other domestic food 
                        assistance programs administered by the 
                        Secretary; and
                            ``(ii) shall provide the recipient agencies 
                        a means for voluntarily submitting customer 
                        acceptability information.''.

SEC. 302. FOOD DISTRIBUTION.

    (a) In General.--Sections 8 through 12 of the Commodity 
Distribution Reform Act and WIC Amendments of 1987 (Public Law 100-237; 
7 U.S.C. 612c note) are amended to read as follows:

``SEC. 8. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.

    ``(a) Transfer.--Subject to subsection (b), the Secretary may 
transfer any commodities purchased for a domestic food assistance 
program administered by the Secretary to any other domestic food 
assistance program administered by the Secretary if the transfer is 
necessary to ensure that the commodities will be used while the 
commodities are still suitable for human consumption.
    ``(b) Reimbursement.--The Secretary shall, to the maximum extent 
practicable, provide reimbursement for the value of the commodities 
transferred under subsection (a) from accounts available for the 
purchase of commodities under the program receiving the commodities.
    ``(c) Crediting.--Any reimbursement made under subsection (b) 
shall--
            ``(1) be credited to the accounts that incurred the costs 
        when the transferred commodities were originally purchased; and
            ``(2) be available for the purchase of commodities with the 
        same limitations as are provided for appropriated funds for the 
        reimbursed accounts for the fiscal year in which the transfer 
        takes place.

``SEC. 9. AUTHORITY TO RESOLVE CLAIMS.

    ``(a) In General.--The Secretary may determine the amount of, 
settle, and adjust all or part of a claim arising under a domestic food 
assistance program administered by the Secretary.
    ``(b) Waivers.--The Secretary may waive a claim described in 
subsection (a) if the Secretary determines that a waiver would serve 
the purposes of the program.
    ``(c) Authority of the Attorney General.--Nothing in this section 
diminishes the authority of the Attorney General under section 516 of 
title 28, United States Code, or any other provision of law, to 
supervise and conduct litigation on behalf of the United States.

``SEC. 10. PAYMENT OF COSTS ASSOCIATED WITH MANAGEMENT OF COMMODITIES 
              THAT POSE A HEALTH OR SAFETY HAZARD.

    ``(a) In General.--The Secretary may use funds available to carry 
out section 32 of the Act of August 24, 1935 (49 Stat. 774, chapter 
641; 7 U.S.C. 612c), that are not otherwise committed, for the purpose 
of reimbursing States for State and local costs associated with 
commodities distributed under any domestic food assistance program 
administered by the Secretary if the Secretary determines that the 
commodities pose a health or safety hazard.
    ``(b) Allowable Costs.--The costs--
            ``(1) may include costs for storage, transportation, 
        processing, and destruction of the hazardous commodities; and
            ``(2) shall be subject to the approval of the Secretary.
    ``(c) Replacement Commodities.--
            ``(1) In general.--The Secretary may use funds described in 
        subsection (a) for the purpose of purchasing additional 
        commodities if the purchase will expedite replacement of the 
        hazardous commodities.
            ``(2) Recovery.--Use of funds under paragraph (1) shall not 
        restrict the Secretary from recovering funds or services from a 
        supplier or other entity regarding the hazardous commodities.
    ``(d) Crediting of Recovered Funds.--Funds recovered from a 
supplier or other entity regarding the hazardous commodities shall--
            ``(1) be credited to the account available to carry out 
        section 32 of the Act of August 24, 1935 (49 Stat. 774, chapter 
        641; 7 U.S.C. 612c), to the extent the funds represent 
        expenditures from that account under subsections (a) and (c); 
        and
            ``(2) remain available to carry out the purposes of section 
        32 of that Act until expended.

``SEC. 11. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL SOURCES.

    ``(a) In General.--The Secretary may accept donations of 
commodities from any Federal agency, including commodities of another 
Federal agency determined to be excess personal property pursuant to 
section 202(d) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 483(d)).
    ``(b) Use.--The Secretary may donate the commodities received under 
subsection (a) to States for distribution through any domestic food 
assistance program administered by the Secretary.
    ``(c) Payment.--Notwithstanding section 202(d) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 483(d)), 
the Secretary shall not be required to make any payment in connection 
with the commodities received under subsection (a).''.
    (b) Effect on Prior Amendments.--The amendment made by subsection 
(a) does not affect the amendments made by sections 8 through 12 of the 
Commodity Distribution Reform Act and WIC Amendments of 1987 (Public 
Law 100-237; 7 U.S.C. 612c note), as in effect on September 30, 1998.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    Except as provided in section 203(h)(2), this Act and the 
amendments made by this Act take effect on October 1, 1998.
                                 <all>
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