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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2507 Enrolled Bill (ENR)]

        S.2507

                       One Hundred Eighth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four

                                 An Act

 
To amend the Richard B. Russell 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 reauthorize child nutrition programs, 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 Act of 2004''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; Table of contents.

   TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 101.  Nutrition promotion.
Sec. 102.  Nutrition requirements.
Sec. 103.  Provision of information.
Sec. 104.  Direct certification.
Sec. 105.  Household applications.
Sec. 106.  Duration of eligibility for free or reduced price meals.
Sec. 107.  Runaway, homeless, and migrant youth.
Sec. 108.  Certification by local educational agencies.
Sec. 109.  Exclusion of military housing allowances.
Sec. 110.  Waiver of requirement for weighted averages for nutrient 
          analysis.
Sec. 111.  Food safety. 
Sec. 112.  Purchases of locally produced foods.
Sec. 113.  Special assistance.
Sec. 114.  Food and nutrition projects integrated with elementary school 
          curricula.
Sec. 115.  Procurement training.
Sec. 116.  Summer food service program for children.
Sec. 117.  Commodity distribution program.
Sec. 118.  Notice of irradiated food products.
Sec. 119.  Child and adult care food program.
Sec. 120.  Fresh fruit and vegetable program.
Sec. 121.  Summer food service residential camp eligibility.
Sec. 122.  Access to local foods and school gardens.
Sec. 123.  Year-round services for eligible entities.
Sec. 124.  Free lunch and breakfast eligibility.
Sec. 125.  Training, technical assistance, and food service management 
          institute.
Sec. 126.  Administrative error reduction.
Sec. 127.  Compliance and accountability.
Sec. 128.  Information clearinghouse.
Sec. 129.  Program evaluation.

           TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

Sec. 201.  Severe need assistance.
Sec. 202.  State administrative expenses.
Sec. 203.  Special supplemental nutrition program for women, infants, 
          and children.
Sec. 204.  Local wellness policy.
Sec. 205.  Team nutrition network.
Sec. 206.  Review of best practices in the breakfast program.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

Sec. 301.  Commodity distribution programs.

                         TITLE IV--MISCELLANEOUS

Sec. 401.  Sense of Congress regarding efforts to prevent and reduce 
          childhood obesity.

                         TITLE V--IMPLEMENTATION

Sec. 501.  Guidance and regulations.
Sec. 502.  Effective dates.

  TITLE I--AMENDMENTS TO RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

SEC. 101. NUTRITION PROMOTION.

    The Richard B. Russell National School Lunch Act is amended by 
inserting after section 4 (42 U.S.C. 1753) the following:

``SEC. 5. NUTRITION PROMOTION.

    ``(a) In General.--Subject to the availability of funds made 
available under subsection (g), the Secretary shall make payments to 
State agencies for each fiscal year, in accordance with this section, 
to promote nutrition in food service programs under this Act and the 
school breakfast program established under the Child Nutrition Act of 
1966 (42 U.S.C. 1771 et seq.).
    ``(b) Total Amount for Each Fiscal Year.--The total amount of funds 
available for a fiscal year for payments under this section shall equal 
not more than the product obtained by multiplying--
        ``(1) \1/2\ cent; by
        ``(2) the number of lunches reimbursed through food service 
    programs under this Act during the second preceding fiscal year in 
    schools, institutions, and service institutions that participate in 
    the food service programs.
    ``(c) Payments to States.--
        ``(1) Allocation.--Subject to paragraph (2), from the amount of 
    funds available under subsection (g) for a fiscal year, the 
    Secretary shall allocate to each State agency an amount equal to 
    the greater of--
            ``(A) a uniform base amount established by the Secretary; 
        or
            ``(B) an amount determined by the Secretary, based on the 
        ratio that--
                ``(i) the number of lunches reimbursed through food 
            service programs under this Act in schools, institutions, 
            and service institutions in the State that participate in 
            the food service programs; bears to
                ``(ii) the number of lunches reimbursed through the 
            food service programs in schools, institutions, and service 
            institutions in all States that participate in the food 
            service programs.
        ``(2) Reductions.--The Secretary shall reduce allocations to 
    State agencies qualifying for an allocation under paragraph (1)(B), 
    in a manner determined by the Secretary, to the extent necessary to 
    ensure that the total amount of funds allocated under paragraph (1) 
    is not greater than the amount appropriated under subsection (g).
    ``(d) Use of Payments.--
        ``(1) Use by state agencies.--A State agency may reserve, to 
    support dissemination and use of nutrition messages and material 
    developed by the Secretary, up to--
            ``(A) 5 percent of the payment received by the State for a 
        fiscal year under subsection (c); or
            ``(B) in the case of a small State (as determined by the 
        Secretary), a higher percentage (as determined by the 
        Secretary) of the payment.
        ``(2) Disbursement to schools and institutions.--Subject to 
    paragraph (3), the State agency shall disburse any remaining amount 
    of the payment to school food authorities and institutions 
    participating in food service programs described in subsection (a) 
    to disseminate and use nutrition messages and material developed by 
    the Secretary.
        ``(3) Summer food service program for children.--In addition to 
    any amounts reserved under paragraph (1), in the case of the summer 
    food service program for children established under section 13, the 
    State agency may--
            ``(A) retain a portion of the funds made available under 
        subsection (c) (as determined by the Secretary); and
            ``(B) use the funds, in connection with the program, to 
        disseminate and use nutrition messages and material developed 
        by the Secretary.
    ``(e) Documentation.--A State agency, school food authority, and 
institution receiving funds under this section shall maintain 
documentation of nutrition promotion activities conducted under this 
section.
    ``(f) Reallocation.--The Secretary may reallocate, to carry out 
this section, any amounts made available to carry out this section that 
are not obligated or expended, as determined by the Secretary.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section, to 
remain available until expended.''.

SEC. 102. NUTRITION REQUIREMENTS.

    Section 9(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(a)) is amended by striking paragraph (2) and inserting 
the following:
        ``(2) Fluid milk.--
            ``(A) In general.--Lunches served by schools participating 
        in the school lunch program under this Act--
                ``(i) shall offer students fluid milk in a variety of 
            fat contents;
                ``(ii) may offer students flavored and unflavored fluid 
            milk and lactose-free fluid milk; and
                ``(iii) shall provide a substitute for fluid milk for 
            students whose disability restricts their diet, on receipt 
            of a written statement from a licensed physician that 
            identifies the disability that restricts the student's diet 
            and that specifies the substitute for fluid milk.
            ``(B) Substitutes.--
                ``(i) Standards for substitution.--A school may 
            substitute for the fluid milk provided under subparagraph 
            (A), a nondairy beverage that is nutritionally equivalent 
            to fluid milk and meets nutritional standards established 
            by the Secretary (which shall, among other requirements to 
            be determined by the Secretary, include fortification of 
            calcium, protein, vitamin A, and vitamin D to levels found 
            in cow's milk) for students who cannot consume fluid milk 
            because of a medical or other special dietary need other 
            than a disability described in subparagraph (A)(iii).
                ``(ii) Notice.--The substitutions may be made if the 
            school notifies the State agency that the school is 
            implementing a variation allowed under this subparagraph, 
            and if the substitution is requested by written statement 
            of a medical authority or by a student's parent or legal 
            guardian that identifies the medical or other special 
            dietary need that restricts the student's diet, except that 
            the school shall not be required to provide beverages other 
            than beverages the school has identified as acceptable 
            substitutes.
                ``(iii) Excess expenses borne by school food 
            authority.--Expenses incurred in providing substitutions 
            under this subparagraph that are in excess of expenses 
            covered by reimbursements under this Act shall be paid by 
            the school food authority.
            ``(C) Restrictions on sale of milk prohibited.--A school 
        that participates in the school lunch program under this Act 
        shall not directly or indirectly restrict the sale or marketing 
        of fluid milk products by the school (or by a person approved 
        by the school) at any time or any place--
                ``(i) on the school premises; or
                ``(ii) at any school-sponsored event.''.

SEC. 103. PROVISION OF INFORMATION.

    Section 9(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(a)) is amended by adding at the end the following:
        ``(4) Provision of information.--
            ``(A) Guidance.--Prior to the beginning of the school year 
        beginning July 2004, the Secretary shall issue guidance to 
        States and school food authorities to increase the consumption 
        of foods and food ingredients that are recommended for 
        increased serving consumption in the most recent Dietary 
        Guidelines for Americans published under section 301 of the 
        National Nutrition Monitoring and Related Research Act of 1990 
        (7 U.S.C. 5341).
            ``(B) Rules.--Not later than 2 years after the date of 
        enactment of this paragraph, the Secretary shall promulgate 
        rules, based on the most recent Dietary Guidelines for 
        Americans, that reflect specific recommendations, expressed in 
        serving recommendations, for increased consumption of foods and 
        food ingredients offered in school nutrition programs under 
        this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).''.

SEC. 104. DIRECT CERTIFICATION.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) is amended--
        (1) by redesignating paragraphs (3) through (7) as paragraphs 
    (9) through (13), respectively; and
        (2) in paragraph (2)--
            (A) in subparagraph (B)--
                (i) by striking ``(B) Applications'' and inserting the 
            following:
            ``(B) Applications and descriptive material.--
                ``(i) In general.--Applications'';
                (ii) in the second sentence, by striking ``Such forms 
            and descriptive material'' and inserting the following:
                ``(ii) Income eligibility guidelines.--Forms and 
            descriptive material distributed in accordance with clause 
            (i)''; and
                (iii) by adding at the end the following:
                ``(iii) Contents of descriptive material.--

                    ``(I) In general.--Descriptive material distributed 
                in accordance with clause (i) shall contain a 
                notification that--

                        ``(aa) participants in the programs listed in 
                    subclause (II) may be eligible for free or reduced 
                    price meals; and
                        ``(bb) documentation may be requested for 
                    verification of eligibility for free or reduced 
                    price meals.

                    ``(II) Programs.--The programs referred to in 
                subclause (I)(aa) are--

                        ``(aa) the special supplemental nutrition 
                    program for women, infants, and children 
                    established by section 17 of the Child Nutrition 
                    Act of 1966 (42 U.S.C. 1786);
                        ``(bb) the food stamp program established under 
                    the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
                        ``(cc) the food distribution program on Indian 
                    reservations established under section 4(b) of the 
                    Food Stamp Act of 1977 (7 U.S.C. 2013(b)); and
                        ``(dd) a State program funded under the program 
                    of block grants to States for temporary assistance 
                    for needy families established under part A of 
                    title IV of the Social Security Act (42 U.S.C. 601 
                    et seq.).'';
            (B) by striking ``(C)(i)'' and inserting ``(3)''; and
            (C) by striking clause (ii) of subparagraph (C) (as it 
        existed before the amendment made by subparagraph (B)) and all 
        that follows through the end of subparagraph (D) and inserting 
        the following:
        ``(4) Direct certification for children in food stamp 
    households.--
            ``(A) In general.--Subject to subparagraph (D), each State 
        agency shall enter into an agreement with the State agency 
        conducting eligibility determinations for the food stamp 
        program established under the Food Stamp Act of 1977 (7 U.S.C. 
        2011 et seq.).
            ``(B) Procedures.--Subject to paragraph (6), the agreement 
        shall establish procedures under which a child who is a member 
        of a household receiving assistance under the food stamp 
        program shall be certified as eligible for free lunches under 
        this Act and free breakfasts under the Child Nutrition Act of 
        1966 (42 U.S.C. 1771 et seq.), without further application.
            ``(C) Certification.--Subject to paragraph (6), under the 
        agreement, the local educational agency conducting eligibility 
        determinations for a school lunch program under this Act and a 
        school breakfast program under the Child Nutrition Act of 1966 
        (42 U.S.C. 1771 et seq.) shall certify a child who is a member 
        of a household receiving assistance under the food stamp 
        program as eligible for free lunches under this Act and free 
        breakfasts under the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.), without further application.
            ``(D) Applicability.--This paragraph applies to--
                ``(i) in the case of the school year beginning July 
            2006, a school district that had an enrollment of 25,000 
            students or more in the preceding school year;
                ``(ii) in the case of the school year beginning July 
            2007, a school district that had an enrollment of 10,000 
            students or more in the preceding school year; and
                ``(iii) in the case of the school year beginning July 
            2008 and each subsequent school year, each local 
            educational agency.''.
    (b) Administration.--
        (1) In general.--Section 9(b) of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1758(b)) (as amended by 
    subsection (a)) is amended by inserting after paragraph (4) the 
    following:
        ``(5) Discretionary certification.--
            ``(A) In general.--Subject to paragraph (6), any local 
        educational agency may certify any child as eligible for free 
        lunches or breakfasts, without further application, by directly 
        communicating with the appropriate State or local agency to 
        obtain documentation of the status of the child as--
                ``(i) a member of a family that is receiving assistance 
            under the temporary assistance for needy families program 
            funded under part A of title IV of the Social Security Act 
            (42 U.S.C. 601 et seq.) that the Secretary determines 
            complies with standards established by the Secretary that 
            ensure that the standards under the State program are 
            comparable to or more restrictive than those in effect on 
            June 1, 1995;
                ``(ii) a homeless child or youth (defined as 1 of the 
            individuals described in section 725(2) of the McKinney-
            Vento Homeless Assistance Act (42 U.S.C. 11434a(2));
                ``(iii) served by the runaway and homeless youth grant 
            program established under the Runaway and Homeless Youth 
            Act (42 U.S.C. 5701 et seq.); or
                ``(iv) a migratory child (as defined in section 1309 of 
            the Elementary and Secondary Education Act of 1965 (20 
            U.S.C. 6399)).''.
            ``(B) Children of households receiving food stamps.--
        Subject to paragraph (6), any local educational agency may 
        certify any child as eligible for free lunches or breakfasts, 
        without further application, by directly communicating with the 
        appropriate State or local agency to obtain documentation of 
        the status of the child as a member of a household that is 
        receiving food stamps under the Food Stamp Act of 1977 (7 
        U.S.C. 2011 et seq.).
        ``(6) Use or disclosure of information.--
            ``(A) In general.--The use or disclosure of any information 
        obtained from an application for free or reduced price meals, 
        or from a State or local agency referred to in paragraph 
        (3)(F), (4), or (5), shall be limited to--
                ``(i) a person directly connected with the 
            administration or enforcement of this Act or the Child 
            Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (including a 
            regulation promulgated under either Act);
                ``(ii) a person directly connected with the 
            administration or enforcement of--

                    ``(I) a Federal education program;
                    ``(II) a State health or education program 
                administered by the State or local educational agency 
                (other than a program carried out under title XIX or 
                XXI of the Social Security Act (42 U.S.C. 1396 et seq.; 
                42 U.S.C. 1397aa et seq.)); or
                    ``(III) a Federal, State, or local means-tested 
                nutrition program with eligibility standards comparable 
                to the school lunch program under this Act;

                ``(iii)(I) the Comptroller General of the United States 
            for audit and examination authorized by any other provision 
            of law; and
                ``(II) notwithstanding any other provision of law, a 
            Federal, State, or local law enforcement official for the 
            purpose of investigating an alleged violation of any 
            program covered by this paragraph or paragraph (3)(F), (4), 
            or (5);
                ``(iv) a person directly connected with the 
            administration of the State medicaid program under title 
            XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or 
            the State children's health insurance program under title 
            XXI of that Act (42 U.S.C. 1397aa et seq.) solely for the 
            purposes of--

                    ``(I) identifying children eligible for benefits 
                under, and enrolling children in, those programs, 
                except that this subclause shall apply only to the 
                extent that the State and the local educational agency 
                or school food authority so elect; and
                    ``(II) verifying the eligibility of children for 
                programs under this Act or the Child Nutrition Act of 
                1966 (42 U.S.C. 1771 et seq.); and

                ``(v) a third party contractor described in paragraph 
            (3)(G)(iv).
            ``(B) Limitation on information provided.--Information 
        provided under clause (ii) or (v) of subparagraph (A) shall be 
        limited to the income eligibility status of the child for whom 
        application for free or reduced price meal benefits is made or 
        for whom eligibility information is provided under paragraph 
        (3)(F), (4), or (5), unless the consent of the parent or 
        guardian of the child for whom application for benefits was 
        made is obtained.
            ``(C) Criminal penalty.--A person described in subparagraph 
        (A) who publishes, divulges, discloses, or makes known in any 
        manner, or to any extent not authorized by Federal law 
        (including a regulation), any information obtained under this 
        subsection shall be fined not more than $1,000 or imprisoned 
        not more than 1 year, or both.
            ``(D) Requirements for waiver of confidentiality.--A State 
        that elects to exercise the option described in subparagraph 
        (A)(iv)(I) shall ensure that any local educational agency or 
        school food authority acting in accordance with that option--
                ``(i) has a written agreement with 1 or more State or 
            local agencies administering health programs for children 
            under titles XIX and XXI of the Social Security Act (42 
            U.S.C. 1396 et seq. and 1397aa et seq.) that requires the 
            health agencies to use the information obtained under 
            subparagraph (A) to seek to enroll children in those health 
            programs; and
                ``(ii)(I) notifies each household, the information of 
            which shall be disclosed under subparagraph (A), that the 
            information disclosed will be used only to enroll children 
            in health programs referred to in subparagraph (A)(iv); and
                ``(II) provides each parent or guardian of a child in 
            the household with an opportunity to elect not to have the 
            information disclosed.
            ``(E) Use of disclosed information.--A person to which 
        information is disclosed under subparagraph (A)(iv)(I) shall 
        use or disclose the information only as necessary for the 
        purpose of enrolling children in health programs referred to in 
        subparagraph (A)(iv).
        ``(7) Free and reduced price policy statement.--
            ``(A) In general.--After the initial submission, a local 
        educational agency shall not be required to submit a free and 
        reduced price policy statement to a State educational agency 
        under this Act unless there is a substantive change in the free 
        and reduced price policy of the local educational agency.
            ``(B) Routine change.--A routine change in the policy of a 
        local educational agency (such as an annual adjustment of the 
        income eligibility guidelines for free and reduced price meals) 
        shall not be sufficient cause for requiring the local 
        educational agency to submit a policy statement.
        ``(8) Communications.--
            ``(A) In general.--Any communication with a household under 
        this subsection or subsection (d) shall be in an understandable 
        and uniform format and, to the maximum extent practicable, in a 
        language that parents and legal guardians can understand.
            ``(B) Electronic availability.--In addition to the 
        distribution of applications and descriptive material in paper 
        form as provided for in this paragraph, the applications and 
        material may be made available electronically via the 
        Internet.''.
        (2) Agreement for direct certification and cooperation.--
    Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended 
    by adding at the end the following:
    ``(u) Agreement for Direct Certification and Cooperation.--
        ``(1) In general.--Each State agency shall enter into an 
    agreement with the State agency administering the school lunch 
    program established under the Richard B. Russell National School 
    Lunch Act (42 U.S.C. 1751 et seq.).
        ``(2) Contents.--The agreement shall establish procedures that 
    ensure that--
            ``(A) any child receiving benefits under this Act shall be 
        certified as eligible for free lunches under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and 
        free breakfasts under the Child Nutrition Act of 1966 (42 
        U.S.C. 1771 et seq.), without further application; and
            ``(B) each State agency shall cooperate in carrying out 
        paragraphs (3)(F) and (4) of section 9(b) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1758(b)).''.
    (c) Funding.--
        (1) In general.--On October 1, 2005, out of any funds in the 
    Treasury not otherwise appropriated, the Secretary of the Treasury 
    shall transfer to the Secretary of Agriculture to assist States in 
    carrying out the amendments contained in this section and the 
    provisions of section 9(b)(3) of the Richard B. Russell National 
    School Lunch Act (as amended by section 105(a)) $9,000,000, to 
    remain available until expended.
        (2) Receipt and acceptance.--The Secretary shall be entitled to 
    receive, shall accept, and shall use to assist States in carrying 
    out the amendments made by this section and the provisions of 
    section 9(b)(3) of the Richard B. Russell National School Lunch Act 
    (as amended by section 105(a)) the funds transferred under 
    paragraph (1), without further appropriation.
    (d) Conforming Amendments.--
        (1) Effective July 1, 2008, paragraph (5) of section 9(b) of 
    the Richard B. Russell National School Lunch Act (42 U.S.C. 
    1758(b)) (as added by subsection (b)(1)) is amended--
            (A) by striking subparagraph (B);
            (B) by striking ``certification.--'' and all that follows 
        through ``In general.--'' and inserting ``certification.--''; 
        and
            (C) by redesignating clauses (i) through (iv) as 
        subparagraphs (A) through (D), respectively, and indenting 
        appropriately.
        (2) Section 9 of the Richard B. Russell National School Lunch 
    Act (42 U.S.C. 1758) (as amended by subsection (a)(1)) is amended--
            (A) in subsection (b)(12)(B), by striking ``paragraph 
        (2)(C)'' and inserting ``this subsection''; and
            (B) in the second sentence of subsection (d)(1), by 
        striking ``subsection (b)(2)(C)'' and inserting ``subsection 
        (b)(3)(G)''.
        (3) Section 11(e) of the Richard B. Russell National School 
    Lunch Act (42 U.S.C. 1759a(e)) is amended in the first sentence by 
    striking ``section 9(b)(3)'' and inserting ``section 9(b)(9)''.

SEC. 105. HOUSEHOLD APPLICATIONS.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) (as amended by section 
104(a)(2)(B)) is amended by striking paragraph (3) and inserting the 
following:
        ``(3) Household applications.--
            ``(A) Definition of household application.--In this 
        paragraph, the term `household application' means an 
        application for a child of a household to receive free or 
        reduced price school lunches under this Act, or free or reduced 
        price school breakfasts under the Child Nutrition Act of 1966 
        (42 U.S.C. 1771 et seq.), for which an eligibility 
        determination is made other than under paragraph (4) or (5).
            ``(B) Eligibility determination.--
                ``(i) In general.--An eligibility determination shall 
            be made on the basis of a complete household application 
            executed by an adult member of the household or in 
            accordance with guidance issued by the Secretary.
                ``(ii) Electronic signatures and applications.--A 
            household application may be executed using an electronic 
            signature if--

                    ``(I) the application is submitted electronically; 
                and
                    ``(II) the electronic application filing system 
                meets confidentiality standards established by the 
                Secretary.

            ``(C) Children in household.--
                ``(i) In general.--The household application shall 
            identify the names of each child in the household for whom 
            meal benefits are requested.
                ``(ii) Separate applications.--A State educational 
            agency or local educational agency may not request a 
            separate application for each child in the household that 
            attends schools under the same local educational agency.
            ``(D) Verification of sample.--
                ``(i) Definitions.--In this subparagraph:

                    ``(I) Error prone application.--The term `error 
                prone application' means an approved household 
                application that--

                        ``(aa) indicates monthly income that is within 
                    $100, or an annual income that is within $1,200, of 
                    the income eligibility limitation for free or 
                    reduced price meals; or
                        ``(bb) in lieu of the criteria established 
                    under item (aa), meets criteria established by the 
                    Secretary.

                    ``(II) Non-response rate.--The term `non-response 
                rate' means (in accordance with guidelines established 
                by the Secretary) the percentage of approved household 
                applications for which verification information has not 
                been obtained by a local educational agency after 
                attempted verification under subparagraphs (F) and (G).

                ``(ii) Verification of sample.--Each school year, a 
            local educational agency shall verify eligibility of the 
            children in a sample of household applications approved for 
            the school year by the local educational agency, as 
            determined by the Secretary in accordance with this 
            subsection.
                ``(iii) Sample size.--Except as otherwise provided in 
            this paragraph, the sample for a local educational agency 
            for a school year shall equal the lesser of--

                    ``(I) 3 percent of all applications approved by the 
                local educational agency for the school year, as of 
                October 1 of the school year, selected from error prone 
                applications; or
                    ``(II) 3,000 error prone applications approved by 
                the local educational agency for the school year, as of 
                October 1 of the school year.

                ``(iv) Alternative sample size.--

                    ``(I) In general.--If the conditions described in 
                subclause (IV) are met, the verification sample size 
                for a local educational agency shall be the sample size 
                described in subclause (II) or (III), as determined by 
                the local educational agency.
                    ``(II) 3,000/3 percent option.--The sample size 
                described in this subclause shall be the lesser of 
                3,000, or 3 percent of, applications selected at random 
                from applications approved by the local educational 
                agency for the school year, as of October 1 of the 
                school year.
                    ``(III) 1,000/1 percent plus option.--

                        ``(aa) In general.--The sample size described 
                    in this subclause shall be the sum of--
                            ``(AA) the lesser of 1,000, or 1 percent 
                        of, all applications approved by the local 
                        educational agency for the school year, as of 
                        October 1 of the school year, selected from 
                        error prone applications; and
                            ``(BB) the lesser of 500, or \1/2\ of 1 
                        percent of, applications approved by the local 
                        educational agency for the school year, as of 
                        October 1 of the school year, that provide a 
                        case number (in lieu of income information) 
                        showing participation in a program described in 
                        item (bb) selected from those approved 
                        applications that provide a case number (in 
                        lieu of income information) verifying the 
                        participation.
                        ``(bb) Programs.--The programs described in 
                    this item are--
                            ``(AA) the food stamp program established 
                        under the Food Stamp Act of 1977 (7 U.S.C. 2011 
                        et seq.);
                            ``(BB) the food distribution program on 
                        Indian reservations established under section 
                        4(b) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2013(b)); and
                            ``(CC) a State program funded under the 
                        program of block grants to States for temporary 
                        assistance for needy families established under 
                        part A of title IV of the Social Security Act 
                        (42 U.S.C. 601 et seq.) that the Secretary 
                        determines complies with standards established 
                        by the Secretary that ensure that the standards 
                        under the State program are comparable to or 
                        more restrictive than those in effect on June 
                        1, 1995.

                    ``(IV) Conditions.--The conditions referred to in 
                subclause (I) shall be met for a local educational 
                agency for a school year if--

                        ``(aa) the nonresponse rate for the local 
                    educational agency for the preceding school year is 
                    less than 20 percent; or
                        ``(bb) the local educational agency has more 
                    than 20,000 children approved by application by the 
                    local educational agency as eligible for free or 
                    reduced price meals for the school year, as of 
                    October 1 of the school year, and--
                            ``(AA) the nonresponse rate for the 
                        preceding school year is at least 10 percent 
                        below the nonresponse rate for the second 
                        preceding school year; or
                            ``(BB) in the case of the school year 
                        beginning July 2005, the local educational 
                        agency attempts to verify all approved 
                        household applications selected for 
                        verification through use of public agency 
                        records from at least 2 of the programs or 
                        sources of information described in 
                        subparagraph (F)(i).
                ``(v) Additional selected applications.--A sample for a 
            local educational agency for a school year under clauses 
            (iii) and (iv)(III)(AA) shall include the number of 
            additional randomly selected approved household 
            applications that are required to comply with the sample 
            size requirements in those clauses.
            ``(E) Preliminary review.--
                ``(i) Review for accuracy.--

                    ``(I) In general.--Prior to conducting any other 
                verification activity for approved household 
                applications selected for verification, the local 
                educational agency shall ensure that the initial 
                eligibility determination for each approved household 
                application is reviewed for accuracy by an individual 
                other than the individual making the initial 
                eligibility determination, unless otherwise determined 
                by the Secretary.
                    ``(II) Waiver.--The requirements of subclause (I) 
                shall be waived for a local educational agency if the 
                local educational agency is using a technology-based 
                solution that demonstrates a high level of accuracy, to 
                the satisfaction of the Secretary, in processing an 
                initial eligibility determination in accordance with 
                the income eligibility guidelines of the school lunch 
                program.

                ``(ii) Correct eligibility determination.--If the 
            review indicates that the initial eligibility determination 
            is correct, the local educational agency shall verify the 
            approved household application.
                ``(iii) Incorrect eligibility determination.--If the 
            review indicates that the initial eligibility determination 
            is incorrect, the local educational agency shall (as 
            determined by the Secretary)--

                    ``(I) correct the eligibility status of the 
                household;
                    ``(II) notify the household of the change;
                    ``(III) in any case in which the review indicates 
                that the household is not eligible for free or reduced-
                price meals, notify the household of the reason for the 
                ineligibility and that the household may reapply with 
                income documentation for free or reduced-price meals; 
                and
                    ``(IV) in any case in which the review indicates 
                that the household is eligible for free or reduced-
                price meals, verify the approved household application.

            ``(F) Direct verification.--
                ``(i) In general.--Subject to clauses (ii) and (iii), 
            to verify eligibility for free or reduced price meals for 
            approved household applications selected for verification, 
            the local educational agency may (in accordance with 
            criteria established by the Secretary) first obtain and use 
            income and program participation information from a public 
            agency administering--

                    ``(I) the food stamp program established under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
                    ``(II) the food distribution program on Indian 
                reservations established under section 4(b) of the Food 
                Stamp Act of 1977 (7 U.S.C. 2013(b));
                    ``(III) the temporary assistance for needy families 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.);
                    ``(IV) the State medicaid program under title XIX 
                of the Social Security Act (42 U.S.C. 1396 et seq.); or
                    ``(V) a similar income-tested program or other 
                source of information, as determined by the Secretary.

                ``(ii) Free meals.--Public agency records that may be 
            obtained and used under clause (i) to verify eligibility 
            for free meals for approved household applications selected 
            for verification shall include the most recent available 
            information (other than information reflecting program 
            participation or income before the 180-day period ending on 
            the date of application for free meals) that is relied on 
            to administer--

                    ``(I) a program or source of information described 
                in clause (i) (other than clause (i)(IV)); or
                    ``(II) the State plan for medical assistance under 
                title XIX of the Social Security Act (42 U.S.C. 1396 et 
                seq.) in--

                        ``(aa) a State in which the income eligibility 
                    limit applied under section 1902(l)(2)(C) of that 
                    Act (42 U.S.C. 1396a(l)(2)(C)) is not more than 133 
                    percent of the official poverty line described in 
                    section 1902(l)(2)(A) of that Act (42 U.S.C. 
                    1396a(l)(2)(A)); or
                        ``(bb) a State that otherwise identifies 
                    households that have income that is not more than 
                    133 percent of the official poverty line described 
                    in section 1902(l)(2)(A) of that Act (42 U.S.C. 
                    1396a(l)(2)(A)).
                ``(iii) Reduced price meals.--Public agency records 
            that may be obtained and used under clause (i) to verify 
            eligibility for reduced price meals for approved household 
            applications selected for verification shall include the 
            most recent available information (other than information 
            reflecting program participation or income before the 180-
            day period ending on the date of application for reduced 
            price meals) that is relied on to administer--

                    ``(I) a program or source of information described 
                in clause (i) (other than clause (i)(IV)); or
                    ``(II) the State plan for medical assistance under 
                title XIX of the Social Security Act (42 U.S.C. 1396 et 
                seq.) in--

                        ``(aa) a State in which the income eligibility 
                    limit applied under section 1902(l)(2)(C) of that 
                    Act (42 U.S.C. 1396a(l)(2)(C)) is not more than 185 
                    percent of the official poverty line described in 
                    section 1902(l)(2)(A) of that Act (42 U.S.C. 
                    1396a(l)(2)(A)); or
                        ``(bb) a State that otherwise identifies 
                    households that have income that is not more than 
                    185 percent of the official poverty line described 
                    in section 1902(l)(2)(A) of that Act (42 U.S.C. 
                    1396a(l)(2)(A)).
                ``(iv) Evaluation.--Not later than 3 years after the 
            date of enactment of this subparagraph, the Secretary shall 
            complete an evaluation of--

                    ``(I) the effectiveness of direct verification 
                carried out under this subparagraph in decreasing the 
                portion of the verification sample that must be 
                verified under subparagraph (G) while ensuring that 
                adequate verification information is obtained; and
                    ``(II) the feasibility of direct verification by 
                State agencies and local educational agencies.

                ``(v) Expanded use of direct verification.--If the 
            Secretary determines that direct verification significantly 
            decreases the portion of the verification sample that must 
            be verified under subparagraph (G), while ensuring that 
            adequate verification information is obtained, and can be 
            conducted by most State agencies and local educational 
            agencies, the Secretary may require a State agency or local 
            educational agency to implement direct verification through 
            1 or more of the programs described in clause (i), as 
            determined by the Secretary, unless the State agency or 
            local educational agency demonstrates (under criteria 
            established by the Secretary) that the State agency or 
            local educational agency lacks the capacity to conduct, or 
            is unable to implement, direct verification.
            ``(G) Household verification.--
                ``(i) In general.--If an approved household application 
            is not verified through the use of public agency records, a 
            local educational agency shall provide to the household 
            written notice that--

                    ``(I) the approved household application has been 
                selected for verification; and
                    ``(II) the household is required to submit 
                verification information to confirm eligibility for 
                free or reduced price meals.

                ``(ii) Phone number.--The written notice in clause (i) 
            shall include a toll-free phone number that parents and 
            legal guardians in households selected for verification can 
            call for assistance with the verification process.
                ``(iii) Followup activities.--If a household does not 
            respond to a verification request, a local educational 
            agency shall make at least 1 attempt to obtain the 
            necessary verification from the household in accordance 
            with guidelines and regulations promulgated by the 
            Secretary.
                ``(iv) Contract authority for school food 
            authorities.--A local educational agency may contract 
            (under standards established by the Secretary) with a third 
            party to assist the local educational agency in carrying 
            out clause (iii).
            ``(H) Verification deadline.--
                ``(i) General deadline.--

                    ``(I) In general.--Subject to subclause (II), not 
                later than November 15 of each school year, a local 
                educational agency shall complete the verification 
                activities required for the school year (including 
                followup activities).
                    ``(II) Extension.--Under criteria established by 
                the Secretary, a State may extend the deadline 
                established under subclause (I) for a school year for a 
                local educational agency to December 15 of the school 
                year.

                ``(ii) Eligibility changes.--Based on the verification 
            activities, the local educational agency shall make 
            appropriate modifications to the eligibility determinations 
            made for household applications in accordance with criteria 
            established by the Secretary.
            ``(I) Local conditions.--In the case of a natural disaster, 
        civil disorder, strike, or other local condition (as determined 
        by the Secretary), the Secretary may substitute alternatives 
        for--
                ``(i) the sample size and sample selection criteria 
            established under subparagraph (D); and
                ``(ii) the verification deadline established under 
            subparagraph (H).
            ``(J) Individual review.--In accordance with criteria 
        established by the Secretary, the local educational agency may, 
        on individual review--
                ``(i) decline to verify no more than 5 percent of 
            approved household applications selected under subparagraph 
            (D); and
                ``(ii) replace the approved household applications with 
            other approved household applications to be verified.
            ``(K) Feasibility study.--
                ``(i) In general.--The Secretary shall conduct a study 
            of the feasibility of using computer technology (including 
            data mining) to reduce--

                    ``(I) overcertification errors in the school lunch 
                program under this Act;
                    ``(II) waste, fraud, and abuse in connection with 
                this paragraph; and
                    ``(III) errors, waste, fraud, and abuse in other 
                nutrition programs, as determined to be appropriate by 
                the Secretary.

                ``(ii) Report.--Not later than 180 days after the date 
            of enactment of this paragraph, the Secretary shall submit 
            to the Committee on Education and the Workforce of the 
            House of Representatives and the Committee on Agriculture, 
            Nutrition, and Forestry of the Senate a report describing--

                    ``(I) the results of the feasibility study 
                conducted under this subsection;
                    ``(II) how a computer system using technology 
                described in clause (i) could be implemented;
                    ``(III) a plan for implementation; and
                    ``(IV) proposed legislation, if necessary, to 
                implement the system.''.

    (b) Conforming Amendments.--Section 1902(a)(7) of the Social 
Security Act (42 U.S.C. 1396a(a)(7)) is amended--
        (1) by striking ``connected with the'' and inserting 
    ``connected with--
            ``(A) the'';
        (2) by adding ``and'' after the semicolon; and
        (3) by adding at the end the following:
            ``(B) at State option, the exchange of information 
        necessary to verify the certification of eligibility of 
        children for free or reduced price breakfasts under the Child 
        Nutrition Act of 1966 and free or reduced price lunches under 
        the Richard B. Russell National School Lunch Act, in accordance 
        with section 9(b) of that Act, using data standards and formats 
        established by the State agency;''.
    (c) Evaluation Funding.--
        (1) In general.--On October 1, 2005, out of any funds in the 
    Treasury not otherwise appropriated, the Secretary of the Treasury 
    shall transfer to the Secretary of Agriculture to conduct the 
    evaluation required by section 9(b)(3)(F)(iv) of the Richard B. 
    Russell National School Lunch Act (as amended by subsection (a)) 
    $2,000,000, to remain available until expended.
        (2) Receipt and acceptance.--The Secretary of Agriculture shall 
    be entitled to receive, shall accept, and shall use to carry out 
    this section the funds transferred under paragraph (1), without 
    further appropriation.
    SEC. 106. DURATION OF ELIGIBILITY FOR FREE OR REDUCED PRICE MEALS.
    Paragraph (9) of section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) (as redesignated by section 
104(a)(1)) is amended--
        (1) by striking ``(9) Any'' and inserting the following:
        ``(9) Eligibility for free and reduced price lunches.--
            ``(A) Free lunches.--Any'';
        (2) by striking ``Any'' in the second sentence and inserting 
    the following:
            ``(B) Reduced price lunches.--
                ``(i) In general.--Any'';
        (3) by striking ``The'' in the last sentence and inserting the 
    following:
                ``(ii) Maximum price.--The''; and
        (4) by adding at the end the following:
            ``(C) Duration.--Except as otherwise specified in paragraph 
        (3)(E), (3)(H)(ii), and section 11(a), eligibility for free or 
        reduced price meals for any school year shall remain in 
        effect--
                ``(i) beginning on the date of eligibility approval for 
            the current school year; and
                ``(ii) ending on a date during the subsequent school 
            year determined by the Secretary.''.

SEC. 107. RUNAWAY, HOMELESS, AND MIGRANT YOUTH.

    (a) Categorical Eligibility for Free Lunches and Breakfasts.--
Section 9(b)(12)(A) of the Richard B. Russell National School Lunch Act 
(as redesignated by section 104(a)(1) of this Act) is amended--
        (1) in clause (ii), by striking ``or'' at the end;
        (2) in clause (iii), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
            ``(iv) a homeless child or youth (defined as 1 of the 
        individuals described in section 725(2) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a(2));
            ``(v) served by the runaway and homeless youth grant 
        program established under the Runaway and Homeless Youth Act 
        (42 U.S.C. 5701 et seq.); or
            ``(vi) a migratory child (as defined in section 1309 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6399)).''.
    (b) Documentation.--Section 9(d)(2) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
        (1) in subparagraph (B), by striking ``or'';
        (2) in subparagraph (C), by striking the period at the end and 
    inserting a semicolon; and
        (3) by inserting after subparagraph (C) the following:
        ``(D) documentation has been provided to the appropriate local 
    educational agency showing that the child meets the criteria 
    specified in clauses (iv) or (v) of subsection (b)(12)(A); or
        ``(E) documentation has been provided to the appropriate local 
    educational agency showing the status of the child as a migratory 
    child (as defined in section 1309 of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 6399)).''.

SEC. 108. CERTIFICATION BY LOCAL EDUCATIONAL AGENCIES.

    (a) Certification by Local Educational Agency.--Section 9 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1758) is 
amended--
        (1) in the second sentence of subsection (b)(11) (as 
    redesignated by section 104(a)(1)), by striking ``Local school 
    authorities'' and inserting ``Local educational agencies''; and
        (2) in subsection (d)(2)--
            (A) by striking ``local school food authority'' each place 
        it appears and inserting ``local educational agency''; and
            (B) in subparagraph (A), by striking ``such authority'' and 
        inserting ``the local educational agency''.
    (b) Definition of Local Educational Agency.--Section 12(d) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)) is 
amended--
        (1) by redesignating paragraph (8) as paragraph (3) and moving 
    the paragraph to appear after paragraph (2);
        (2) by redesignating paragraphs (3) through (7) (as those 
    paragraphs existed before the amendment made by paragraph (1)) as 
    paragraphs (5) through (9), respectively; and
        (3) by inserting after paragraph (3) (as redesignated by 
    paragraph (1)) the following:
        ``(4) Local educational agency.--
            ``(A) In general.--The term `local educational agency' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(B) Inclusion.--The term `local educational agency' 
        includes, in the case of a private nonprofit school, an 
        appropriate entity determined by the Secretary.''.
    (c) School Breakfast Program.--Section 4(b)(1)(E)) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(E)) is amended by striking 
``school food authority'' each place it appears and inserting ``local 
educational agency''.

SEC. 109. EXCLUSION OF MILITARY HOUSING ALLOWANCES.

    Section 9(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(b)) (as amended by section 104(a)(1)) is amended in 
paragraph (13) by striking ``For each of fiscal years 2002 and 2003 and 
through June 30, 2004, the'' and inserting ``The''.
    SEC. 110. WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR NUTRIENT 
      ANALYSIS.
    Section 9(f)(5) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(f)(5)) is amended by striking ``September 30, 2003'' 
and inserting ``September 30, 2009''.

SEC. 111. FOOD SAFETY.

    Section 9(h) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(h)) is amended--
        (1) in the subsection heading, by striking ``Inspections'';
        (2) in paragraph (1)--
            (A) by striking ``Except as provided in paragraph (2), a'' 
        and inserting ``A'';
            (B) by striking ``shall, at least once'' and inserting: 
        ``shall--
            ``(A) at least twice'';
            (C) by striking the period at the end and inserting a 
        semicolon; and
            (D) by adding at the end the following:
            ``(B) post in a publicly visible location a report on the 
        most recent inspection conducted under subparagraph (A); and
            ``(C) on request, provide a copy of the report to a member 
        of the public.''; and
        (3) by striking paragraph (2) and inserting the following:
        ``(2) State and local government inspections.--Nothing in 
    paragraph (1) prevents any State or local government from adopting 
    or enforcing any requirement for more frequent food safety 
    inspections of schools.
        ``(3) Audits and reports by states.--For each of fiscal years 
    2006 through 2009, each State shall annually--
            ``(A) audit food safety inspections of schools conducted 
        under paragraphs (1) and (2); and
            ``(B) submit to the Secretary a report of the results of 
        the audit.
        ``(4) Audit by the secretary.--For each of fiscal years 2006 
    through 2009, the Secretary shall annually audit State reports of 
    food safety inspections of schools submitted under paragraph (3).
        ``(5) School food safety program.--Each school food authority 
    shall implement a school food safety program, in the preparation 
    and service of each meal served to children, that complies with any 
    hazard analysis and critical control point system established by 
    the Secretary.''.

SEC. 112. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9(j)(2)(A) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(j)(2)(A)) is amended by striking ``2007'' and 
inserting ``2009''.

SEC. 113. SPECIAL ASSISTANCE.

    Section 11(a)(1) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1759a(a)(1)) is amended by inserting ``or school 
district'' after ``school'' each place it appears in subparagraphs (C) 
through (E) (other than as part of ``school year'', ``school years'', 
``school lunch'', ``school breakfast'', and ``4-school-year period'').
    SEC. 114. FOOD AND NUTRITION PROJECTS INTEGRATED WITH ELEMENTARY 
      SCHOOL CURRICULA.
    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended by striking subsection (m).

SEC. 115. PROCUREMENT TRAINING.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) (as amended by section 114) is amended by inserting after 
subsection (l) the following:
    ``(m) Procurement Training.--
        ``(1) In general.--Subject to the availability of funds made 
    available under paragraph (4), the Secretary shall provide 
    technical assistance and training to States, State agencies, 
    schools, and school food authorities in the procurement of goods 
    and services for programs under this Act or the Child Nutrition Act 
    of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 of that Act 
    (42 U.S.C. 1786)).
        ``(2) Buy american training.--Activities carried out under 
    paragraph (1) shall include technical assistance and training to 
    ensure compliance with subsection (n).
        ``(3) Procuring safe foods.--Activities carried out under 
    paragraph (1) shall include technical assistance and training on 
    procuring safe foods, including the use of model specifications for 
    procuring safe foods.
        ``(4) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection $1,000,000 for each of 
    fiscal years 2005 through 2009, to remain available until 
    expended.''.

SEC. 116. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Seamless Summer Option.--Section 13(a) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(a)) is amended by 
adding at the end the following:
        ``(8) Seamless summer option.--Except as otherwise determined 
    by the Secretary, a service institution that is a public or private 
    nonprofit school food authority may provide summer or school 
    vacation food service in accordance with applicable provisions of 
    law governing the school lunch program established under this Act 
    or the school breakfast program established under the Child 
    Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).''.
    (b) Seamless Summer Reimbursements.--Section 13(b)(1) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(b)(1)) is 
amended by adding at the end the following:
            ``(D) Seamless summer reimbursements.--A service 
        institution described in subsection (a)(8) shall be reimbursed 
        for meals and meal supplements in accordance with the 
        applicable provisions under this Act (other than subparagraphs 
        (A), (B), and (C) of this paragraph and paragraph (4)) and the 
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), as 
        determined by the Secretary.''.
    (c) Summer Food Service Eligibility Criteria.--Section 13(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as 
amended by subsection (a)) is amended by adding at the end the 
following--
        ``(9) Exemption.--
            ``(A) In general.--For each of calendar years 2005 and 2006 
        in rural areas of the State of Pennsylvania (as determined by 
        the Secretary), the threshold for determining `areas in which 
        poor economic conditions exist' under paragraph (1)(C) shall be 
        40 percent.
            ``(B) Evaluation.--
                ``(i) In general.--The Secretary, acting through the 
            Administrator of the Food and Nutrition Service, shall 
            evaluate the impact of the eligibility criteria described 
            in subparagraph (A) as compared to the eligibility criteria 
            described in paragraph (1)(C).
                ``(ii) Impact.--The evaluation shall assess the impact 
            of the threshold in subparagraph (A) on--

                    ``(I) the number of sponsors offering meals through 
                the summer food service program;
                    ``(II) the number of sites offering meals through 
                the summer food service program;
                    ``(III) the geographic location of the sites;
                    ``(IV) services provided to eligible children; and
                    ``(V) other factors determined by the Secretary.

                ``(iii) Report.--Not later than January 1, 2008, the 
            Secretary shall submit to the Committee on Education and 
            the Workforce of the House of Representatives and the 
            Committee on Agriculture, Nutrition, and Forestry of the 
            Senate a report describing the results of the evaluation 
            under this subparagraph.
                ``(iv) Funding.--

                    ``(I) In general.--On January 1, 2005, out of any 
                funds in the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall transfer to the 
                Secretary of Agriculture to carry out this subparagraph 
                $400,000, to remain available until expended.
                    ``(II) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this subparagraph the funds transferred under 
                subclause (I), without further appropriation.''.

    (d) Summer Food Service Rural Transportation.--Section 13(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)) (as 
amended by subsection (c)) is amended by adding at the end the 
following:
        ``(10) Summer food service rural transportation.--
            ``(A) In general.--The Secretary shall provide grants, 
        through not more than 5 eligible State agencies selected by the 
        Secretary, to not more than 60 eligible service institutions 
        selected by the Secretary to increase participation at 
        congregate feeding sites in the summer food service program for 
        children authorized by this section through innovative 
        approaches to limited transportation in rural areas.
            ``(B) Eligibility.--To be eligible to receive a grant under 
        this paragraph--
                ``(i) a State agency shall submit an application to the 
            Secretary, in such manner as the Secretary shall establish, 
            and meet criteria established by the Secretary; and
                ``(ii) a service institution shall agree to the terms 
            and conditions of the grant, as established by the 
            Secretary.
            ``(C) Duration.--A service institution that receives a 
        grant under this paragraph may use the grant funds during the 
        3-fiscal year period beginning in fiscal year 2005.
            ``(D) Reports.--The Secretary shall submit to the Committee 
        on Education and the Workforce of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate--
                ``(i) not later than January 1, 2007, an interim report 
            that describes--

                    ``(I) the use of funds made available under this 
                paragraph; and
                    ``(II) any progress made by using funds from each 
                grant provided under this paragraph; and

                ``(ii) not later than January 1, 2008, a final report 
            that describes--

                    ``(I) the use of funds made available under this 
                paragraph;
                    ``(II) any progress made by using funds from each 
                grant provided under this paragraph;
                    ``(III) the impact of this paragraph on 
                participation in the summer food service program for 
                children authorized by this section; and
                    ``(IV) any recommendations by the Secretary 
                concerning the activities of the service institutions 
                receiving grants under this paragraph.

            ``(E) Funding.--
                ``(i) In general.--Out of any funds in the Treasury not 
            otherwise appropriated, the Secretary of the Treasury shall 
            transfer to the Secretary of Agriculture to carry out this 
            paragraph--

                    ``(I) on October 1, 2005, $2,000,000; and
                    ``(II) on October 1, 2006, and October 1, 2007, 
                $1,000,000.

                ``(ii) Receipt and acceptance.--The Secretary shall be 
            entitled to receive, shall accept, and shall use to carry 
            out this paragraph the funds transferred under clause (i), 
            without further appropriation.
                ``(iii) Availability of funds.--Funds transferred under 
            clause (i) shall remain available until expended.
                ``(iv) Reallocation.--The Secretary may reallocate any 
            amounts made available to carry out this paragraph that are 
            not obligated or expended, as determined by the 
            Secretary.''.
    (e) Reauthorization.--Section 13(q) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(q)) is amended by striking 
``June 30, 2004'' and inserting ``September 30, 2009''.
    (f) Simplified Summer Food Programs.--
        (1) Definition of eligible state.--Section 18(f) of the Richard 
    B. Russell National School Lunch Act (42 U.S.C. 1769(f)) is amended 
    by striking paragraph (1) and inserting the following:
        ``(1) Definition of eligible state.--In this subsection, the 
    term `eligible State' means--
            ``(A) a State participating in the program under this 
        subsection as of May 1, 2004; and
            ``(B) a State in which (based on data available in April 
        2004)--
                ``(i) the percentage obtained by dividing--

                    ``(I) the sum of--

                        ``(aa) the average daily number of children 
                    attending the summer food service program in the 
                    State in July 2003; and
                        ``(bb) the average daily number of children 
                    receiving free or reduced price meals under the 
                    school lunch program in the State in July 2003; by

                    ``(II) the average daily number of children 
                receiving free or reduced price meals under the school 
                lunch program in the State in March 2003; is less than

                ``(ii) 66.67 percent of the percentage obtained by 
            dividing--

                    ``(I) the sum of--

                        ``(aa) the average daily number of children 
                    attending the summer food service program in all 
                    States in July 2003; and
                        ``(bb) the average daily number of children 
                    receiving free or reduced price meals under the 
                    school lunch program in all States in July 2003; by

                    ``(II) the average daily number of children 
                receiving free or reduced price meals under the school 
                lunch program in all States in March 2003.''.

        (2) Duration.--Section 18(f)(2) of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1769(f)(2)) is amended by 
    striking ``During the period beginning October 1, 2000, and ending 
    June 30, 2004, the'' and inserting ``The''.
        (3) Private nonprofit organizations.--Section 18(f)(3) of the 
    Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f)(3)) 
    is amended in subparagraphs (A) and (B) by striking ``(other than a 
    service institution described in section 13(a)(7))'' both places it 
    appears.
        (4) Report.--Section 18(f) of the Richard B. Russell National 
    School Lunch Act (42 U.S.C. 1769(f)) is amended by striking 
    paragraph (6) and inserting the following:
        ``(6) Report.--Not later than April 30, 2007, the Secretary 
    shall submit to the Committee on Education and the Workforce of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate a report that includes--
            ``(A) the evaluations completed by the Secretary under 
        paragraph (5); and
            ``(B) any recommendations of the Secretary concerning the 
        programs.''.
        (5) Conforming amendments.--Section 18(f) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1769(f)) is amended--
            (A) by striking the subsection heading and inserting the 
        following:
    ``(f) Simplified Summer Food Programs.--'';
            (B) in paragraph (2)--
                (i) by striking the paragraph heading and inserting the 
            following:
        ``(2) Programs.--''; and
                (ii) by striking ``pilot project'' and inserting 
            ``program'';
            (C) in subparagraph (A) and (B) of paragraph (3), by 
        striking ``pilot project'' both places it appears and inserting 
        ``program''; and
            (D) in paragraph (5)--
                (i) in the paragraph heading by striking ``pilot 
            projects'' and inserting ``programs''; and
                (ii) by striking ``pilot project'' each place it 
            appears and inserting ``program''.

SEC. 117. COMMODITY DISTRIBUTION PROGRAM.

    Section 14(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1762a(a)) is amended by striking ``, during the period 
beginning July 1, 1974, and ending June 30, 2004,''.

SEC. 118. NOTICE OF IRRADIATED FOOD PRODUCTS.

    Section 14 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1762a) is amended by adding at the end the following:
    ``(h) Notice of Irradiated Food Products.--
        ``(1) In general.--The Secretary shall develop a policy and 
    establish procedures for the purchase and distribution of 
    irradiated food products in school meals programs under this Act 
    and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
        ``(2) Minimum requirements.--The policy and procedures shall 
    ensure, at a minimum, that--
            ``(A) irradiated food products are made available only at 
        the request of States and school food authorities;
            ``(B) reimbursements to schools for irradiated food 
        products are equal to reimbursements to schools for food 
        products that are not irradiated;
            ``(C) States and school food authorities are provided 
        factual information on the science and evidence regarding 
        irradiation technology, including--
                ``(i) notice that irradiation is not a substitute for 
            safe food handling techniques; and
                ``(ii) any other similar information determined by the 
            Secretary to be necessary to promote food safety in school 
            meals programs;
            ``(D) States and school food authorities are provided model 
        procedures for providing to school food authorities, parents, 
        and students--
                ``(i) factual information on the science and evidence 
            regarding irradiation technology; and
                ``(ii) any other similar information determined by the 
            Secretary to be necessary to promote food safety in school 
            meals;
            ``(E) irradiated food products distributed to the Federal 
        school meals program under this Act and the Child Nutrition Act 
        of 1966 (42 U.S.C. 1771 et seq.) are labeled with a symbol or 
        other printed notice that--
                ``(i) indicates that the product was irradiated; and
                ``(ii) is prominently displayed in a clear and 
            understandable format on the container;
            ``(F) irradiated food products are not commingled in 
        containers with food products that are not irradiated; and
            ``(G) schools that offer irradiated food products are 
        encouraged to offer alternatives to irradiated food products as 
        part of the meal plan used by the schools.''.

SEC. 119. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Definition of Institution.--
        (1) In general.--Section 17(a)(2)(B)(i) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1766(a)(2)(B)(i)) is 
    amended by striking ``during'' and all that follows through 
    ``2004,''.
        (2) Conforming amendment.--Section 17 of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1766) is amended by striking 
    subsection (p).
    (b) Duration of Determination as Tier I Family or Group Day Care 
Home.--Section 17(f)(3)(E)(iii) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(3)(E)(iii)) is amended by striking 
``3 years'' and inserting ``5 years''.
    (c) Audits.--Section 17(i) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(i)) is amended by striking ``(i) The'' 
and inserting the following:
    ``(i) Audits.--
        ``(1) Disregards.--
            ``(A) In general.--Subject to subparagraph (B), in 
        conducting management evaluations, reviews, or audits under 
        this section, the Secretary or a State agency may disregard any 
        overpayment to an institution for a fiscal year if the total 
        overpayment to the institution for the fiscal year does not 
        exceed an amount that is consistent with the disregards allowed 
        in other programs under this Act and recognizes the cost of 
        collecting small claims, as determined by the Secretary.
            ``(B) Criminal or fraud violations.--In carrying out this 
        paragraph, the Secretary and a State agency shall not disregard 
        any overpayment for which there is evidence of a violation of a 
        criminal law or civil fraud law.
        ``(2) Funding.--The''.
    (d) Duration of Agreements.--Section 17(j) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(j)) is amended--
        (1) by striking ``(j) The'' and inserting the following:
    ``(j) Agreements.--
        ``(1) In general.--The''; and
        (2) by adding at the end the following:
        ``(2) Duration.--An agreement under paragraph (1) shall remain 
    in effect until terminated by either party to the agreement.''.
    (e) Rural Area Eligibility Determination for Day Care Homes.--
Section 17 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766) (as amended by subsection (a)(2)) is amended by inserting 
after subsection (o) the following:
    ``(p) Rural Area Eligibility Determination for Day Care Homes.--
        ``(1) Definition of selected tier i family or group day care 
    home.--In this subsection, the term `selected tier I family or 
    group day care home' means a family or group day home that meets 
    the definition of tier I family or group day care home under 
    subclause (I) of subsection (f)(3)(A)(ii) except that items (aa) 
    and (bb) of that subclause shall be applied by substituting `40 
    percent' for `50 percent'.
        ``(2) Eligibility.--For each of fiscal years 2006 and 2007, in 
    rural areas of the State of Nebraska (as determined by the 
    Secretary), the Secretary shall provide reimbursement to selected 
    tier I family or group day care homes (as defined in paragraph (1)) 
    under subsection (f)(3) in the same manner as tier I family or 
    group day care homes (as defined in subsection (f)(3)(A)(ii)(I)).
        ``(3) Evaluation.--
            ``(A) In general.--The Secretary, acting through the 
        Administrator of the Food and Nutrition Service, shall evaluate 
        the impact of the eligibility criteria described in paragraph 
        (2) as compared to the eligibility criteria described in 
        subsection (f)(3)(A)(ii)(I).
            ``(B) Impact.--The evaluation shall assess the impact of 
        the change in eligibility requirements on--
                ``(i) the number of family or group day care homes 
            offering meals under this section;
                ``(ii) the number of family or group day care homes 
            offering meals under this section that are defined as tier 
            I family or group day care homes as a result of paragraph 
            (1) that otherwise would be defined as tier II family or 
            group day care homes under subsection (f)(3)(A)(iii);
                ``(iii) the geographic location of the family or group 
            day care homes;
                ``(iv) services provided to eligible children; and
                ``(v) other factors determined by the Secretary.
            ``(C) Report.--Not later than March 31, 2008, the Secretary 
        shall submit to the Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report describing the 
        results of the evaluation under this subsection.
            ``(D) Funding.--
                ``(i) In general.--On October 1, 2005, out of any funds 
            in the Treasury not otherwise appropriated, the Secretary 
            of the Treasury shall transfer to the Secretary of 
            Agriculture to carry out this paragraph $400,000, to remain 
            available until expended.
                ``(ii) Receipt and acceptance.--The Secretary shall be 
            entitled to receive, shall accept, and shall use to carry 
            out this paragraph the funds transferred under clause (i), 
            without further appropriation.''.
    (f) Management Support.--Section 17(q)(3) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(q)(3)) is amended by striking 
``1999 through 2003'' and inserting ``2005 and 2006''.
    (g) Age Limits.--Section 17(t)(5)(A)(i) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(t)(5)(A)(i) is amended--
        (1) in subclause (I)--
            (A) by striking ``12'' and inserting ``18''; and
            (B) by inserting ``or'' after the semicolon;
        (2) by striking subclause (II); and
        (3) by redesignating subclause (III) as subclause (II).
    (h) Technical Amendments.--Section 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766) is amended--
        (1) in subsection (a)(6)(B), by inserting ``and adult'' after 
    ``child''; and
        (2) in subsection (t)(3), by striking ``subsection (a)(1)'' and 
    inserting ``subsection (a)(5)''.
    (i) Paperwork Reduction.--The Secretary of Agriculture, in 
conjunction with States and participating institutions, shall examine 
the feasibility of reducing paperwork resulting from regulations and 
recordkeeping requirements for State agencies, family child care homes, 
child care centers, and sponsoring organizations participating in the 
child and adult care food program established under section 17 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766).
    (j) Early Child Nutrition Education.--
        (1) In general.--Subject to the availability of funds made 
    available under paragraph (6), for a period of 4 successive years, 
    the Secretary of Agriculture shall award to 1 or more entities with 
    expertise in designing and implementing health education programs 
    for limited-English-proficient individuals 1 or more grants to 
    enhance obesity prevention activities for child care centers and 
    sponsoring organizations providing services to limited-English-
    proficient individuals through the child and adult care food 
    program under section 17 of the Richard B. Russell National School 
    Lunch Act (42 U.S.C. 1766) in each of 4 States selected by the 
    Secretary in accordance with paragraph (2).
        (2) States.--The Secretary shall provide grants under this 
    subsection in States that have experienced a growth in the limited-
    English-proficient population of the States of at least 100 percent 
    between the years 1990 and 2000, as measured by the census.
        (3) Required activities.--Activities carried out under 
    paragraph (1) shall include--
            (A) developing an interactive and comprehensive tool kit 
        for use by lay health educators and training activities;
            (B) conducting training and providing ongoing technical 
        assistance for lay health educators; and
            (C) establishing collaborations with child care centers and 
        sponsoring organizations participating in the child and adult 
        care food program under section 17 of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1766) to--
                (i) identify limited-English-proficient children and 
            families; and
                (ii) enhance the capacity of the child care centers and 
            sponsoring organizations to use appropriate obesity 
            prevention strategies.
        (4) Evaluation.--Each grant recipient shall identify an 
    institution of higher education to conduct an independent 
    evaluation of the effectiveness of the grant.
        (5) Report.--The Secretary shall submit to the Committee on 
    Education and the Workforce of the House of Representatives, and 
    the Committee on Agriculture, Nutrition, and Forestry and the 
    Committee on Health, Education, Labor, and Pensions, of the Senate 
    a report that includes--
            (A) the evaluation completed by the institution of higher 
        education under paragraph (4);
            (B) the effectiveness of lay health educators in reducing 
        childhood obesity; and
            (C) any recommendations of the Secretary concerning the 
        grants.
        (6) Authorization of appropriations.--There are authorized to 
    be appropriated to carry out this subsection $250,000 for each of 
    fiscal years 2005 through 2009.

SEC. 120. FRESH FRUIT AND VEGETABLE PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by striking subsection (g) and inserting the 
following:
    ``(g) Fresh Fruit and Vegetable Program.--
        ``(1) In general.--For the school year beginning July 2004 and 
    each subsequent school year, the Secretary shall carry out a 
    program to make free fresh fruits and vegetables available, to the 
    maximum extent practicable, to--
            ``(A) 25 elementary or secondary schools in each of the 4 
        States authorized to participate in the program under this 
        subsection on May 1, 2004;
            ``(B) 25 elementary or secondary schools (as selected by 
        the Secretary in accordance with paragraph (3)) in each of 4 
        States (including a State for which funds were allocated under 
        the program described in paragraph (3)(B)(ii)) that are not 
        participating in the program under this subsection on May 1, 
        2004; and
            ``(C) 25 elementary or secondary schools operated on 3 
        Indian reservations (including the reservation authorized to 
        participate in the program under this subsection on May 1, 
        2004), as selected by the Secretary.
        ``(2) Program.--A school participating in the program shall 
    make free fresh fruits and vegetables available to students 
    throughout the school day in 1 or more areas designated by the 
    school.
        ``(3) Selection of schools.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        in selecting additional schools to participate in the program 
        under paragraph (1)(B), the Secretary shall--
                ``(i) to the maximum extent practicable, ensure that 
            the majority of schools selected are those in which not 
            less than 50 percent of students are eligible for free or 
            reduced price meals under this Act;
                ``(ii) solicit applications from interested schools 
            that include--

                    ``(I) information pertaining to the percentage of 
                students enrolled in the school submitting the 
                application who are eligible for free or reduced price 
                school lunches under this Act;
                    ``(II) a certification of support for participation 
                in the program signed by the school food manager, the 
                school principal, and the district superintendent (or 
                equivalent positions, as determined by the school); and
                    ``(III) such other information as may be requested 
                by the Secretary;

                ``(iii) for each application received, determine 
            whether the application is from a school in which not less 
            than 50 percent of students are eligible for free or 
            reduced price meals under this Act; and
                ``(iv) give priority to schools that submit a plan for 
            implementation of the program that includes a partnership 
            with 1 or more entities that provide non-Federal resources 
            (including entities representing the fruit and vegetable 
            industry) for--

                    ``(I) the acquisition, handling, promotion, or 
                distribution of fresh and dried fruits and fresh 
                vegetables; or
                    ``(II) other support that contributes to the 
                purposes of the program.

            ``(B) Nonapplicability to existing participants.--
        Subparagraph (A) shall not apply to a school, State, or Indian 
        reservation authorized--
                ``(i) to participate in the program on May 1, 2004; or
                ``(ii) to receive funding for free fruits and 
            vegetables under funds provided for public health 
            improvement under the heading `disease control, research, 
            and training' under the heading `Centers for Disease 
            Control and Prevention' in title II of the Departments of 
            Labor, Health and Human Services, and Education, and 
            Related Agencies Appropriations Act, 2004 (Division E of 
            Public Law 108-199; 118 Stat. 238).
        ``(4) Notice of availability.--To be eligible to participate in 
    the program under this subsection, a school shall widely publicize 
    within the school the availability of free fresh fruits and 
    vegetables under the program.
        ``(5) Reports.--
            ``(A) Interim reports.--Not later than September 30 of each 
        of fiscal years 2005 through 2008, the Secretary, acting 
        through the Administrator of the Food and Nutrition Service, 
        shall submit to the Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate an interim report that 
        describes the activities carried out under this subsection 
        during the fiscal year covered by the report.
            ``(B) Final report.--Not later than December 31, 2008, the 
        Secretary, acting through the Administrator of the Food and 
        Nutrition Service, shall submit to the Committee on Education 
        and the Workforce of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        a final report that describes the results of the program under 
        this subsection.
        ``(6) Funding.--
            ``(A) Existing funds.--The Secretary shall use to carry out 
        this subsection any funds that remain under this subsection on 
        the day before the date of enactment of this subparagraph.
            ``(B) Mandatory funds.--
                ``(i) In general.--On October 1, 2004, and on each 
            October 1 thereafter, out of any funds in the Treasury not 
            otherwise appropriated, the Secretary of the Treasury shall 
            transfer to the Secretary of Agriculture to carry out this 
            subsection $9,000,000, to remain available until expended.
                ``(ii) Receipt and acceptance.--The Secretary shall be 
            entitled to receive, shall accept, and shall use to carry 
            out this subsection the funds made available under this 
            subparagraph, without further appropriation.
            ``(C) Authorization of appropriations.--In addition to any 
        amounts made available under subparagraphs (A) and (B), there 
        are authorized to be appropriated such sums as are necessary to 
        expand the program carried out under this subsection.
            ``(D) Reallocation.--The Secretary may reallocate any 
        amounts made available to carry out this subsection that are 
        not obligated or expended, as determined by the Secretary.''.
    SEC. 121. SUMMER FOOD SERVICE RESIDENTIAL CAMP ELIGIBILITY.
    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by adding at the end the following:
    ``(h) Summer Food Service Residential Camp Eligibility.--
        ``(1) In general.--During the month after the date of enactment 
    of this subsection through September, 2004, and the months of May 
    through September, 2005, the Secretary shall modify eligibility 
    criteria, at not more than 1 private nonprofit residential camp in 
    each of not more than 2 States, as determined by the Secretary, for 
    the purpose of identifying and evaluating alternative methods of 
    determining the eligibility of residential private nonprofit camps 
    to participate in the summer food service program for children 
    established under section 13.
        ``(2) Eligibility.--To be eligible for the criteria modified 
    under paragraph (1), a residential camp--
            ``(A) shall be a service institution (as defined in section 
        13(a)(1));
            ``(B) may not charge a fee to any child in residence at the 
        camp; and
            ``(C) shall serve children who reside in an area in which 
        poor economic conditions exist (as defined in section 
        13(a)(1)).
        ``(3) Payments.--
            ``(A) In general.--Under this subsection, the Secretary 
        shall provide reimbursement for meals served to all children at 
        a residential camp at the payment rates specified in section 
        13(b)(1).
            ``(B) Reimbursable meals.--A residential camp selected by 
        the Secretary may receive reimbursement for not more than 3 
        meals, or 2 meals and 1 supplement, during each day of 
        operation.
        ``(4) Evaluation.--
            ``(A) Information from residential camps.--Not later than 
        December 31, 2005, a residential camp selected under paragraph 
        (1) shall report to the Secretary such information as is 
        required by the Secretary concerning the requirements of this 
        subsection.
            ``(B) Report to congress.--Not later than March 31, 2006, 
        the Secretary shall submit to the Committee on Education and 
        the Workforce of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate a report 
        that evaluates the effect of this subsection on program 
        participation and other factors, as determined by the 
        Secretary.''.

SEC. 122. ACCESS TO LOCAL FOODS AND SCHOOL GARDENS.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 121) is amended by adding at the 
end the following:
    ``(i) Access to Local Foods and School Gardens.--
        ``(1) In general.--The Secretary may provide assistance, 
    through competitive matching grants and technical assistance, to 
    schools and nonprofit entities for projects that--
            ``(A) improve access to local foods in schools and 
        institutions participating in programs under this Act and 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) 
        through farm-to-cafeteria activities, including school gardens, 
        that may include the acquisition of food and appropriate 
        equipment and the provision of training and education;
            ``(B) are, at a minimum, designed to--
                ``(i) procure local foods from small- and medium-sized 
            farms for school meals; and
                ``(ii) support school garden programs;
            ``(C) support nutrition education activities or curriculum 
        planning that incorporates the participation of school children 
        in farm-based agricultural education activities, that may 
        include school gardens;
            ``(D) develop a sustained commitment to farm-to-cafeteria 
        projects in the community by linking schools, State departments 
        of agriculture, agricultural producers, parents, and other 
        community stakeholders;
            ``(E) require $100,000 or less in Federal contributions;
            ``(F) require a Federal share of costs not to exceed 75 
        percent;
            ``(G) provide matching support in the form of cash or in-
        kind contributions (including facilities, equipment, or 
        services provided by State and local governments and private 
        sources); and
            ``(H) cooperate in an evaluation carried out by the 
        Secretary.
        ``(2) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection for each of fiscal years 2004 through 2009.''.

SEC. 123. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 122) is amended by adding at the 
end the following:
    ``(j) Year-Round Services for Eligible Entities.--
        ``(1) In general.--A service institution that is described in 
    section 13(a)(6) (excluding a public school), or a private 
    nonprofit organization described in section 13(a)(7), and that is 
    located in the State of California may be reimbursed--
            ``(A) for up to 2 meals during each day of operation 
        served--
                ``(i) during the months of May through September;
                ``(ii) in the case of a service institution that 
            operates a food service program for children on school 
            vacation, at anytime under a continuous school calendar; 
            and
                ``(iii) in the case of a service institution that 
            provides meal service at a nonschool site to children who 
            are not in school for a period during the school year due 
            to a natural disaster, building repair, court order, or 
            similar case, at anytime during such a period; and
            ``(B) for a snack served during each day of operation after 
        school hours, weekends, and school holidays during the regular 
        school calendar.
        ``(2) Payments.--The service institution shall be reimbursed 
    consistent with section 13(b)(1).
        ``(3) Administration.--To receive reimbursement under this 
    subsection, a service institution shall comply with section 13, 
    other than subsections (b)(2) and (c)(1) of that section.
        ``(4) Evaluation.--Not later than September 30, 2007, the State 
    agency shall submit to the Secretary a report on the effect of this 
    subsection on participation in the summer food service program for 
    children established under section 13.
        ``(5) Funding.--The Secretary shall provide to the State of 
    California such sums as are necessary to carry out this subsection 
    for each of fiscal years 2005 through 2009.''.

SEC. 124. FREE LUNCH AND BREAKFAST ELIGIBILITY.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 123) is amended by adding at the 
end the following:
    ``(k) Free Lunch and Breakfast Eligibility.--
        ``(1) In general.--Subject to the availability of funds under 
    paragraph (4), the Secretary shall expand the service of free 
    lunches and breakfasts provided at schools participating in the 
    school lunch program under this Act or the school breakfast program 
    under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) 
    in all or part of 5 States selected by the Secretary (of which at 
    least 1 shall be a largely rural State with a significant Native 
    American population).
        ``(2) Income eligibility.--The income guidelines for 
    determining eligibility for free lunches or breakfasts under this 
    subsection shall be 185 percent of the applicable family size 
    income levels contained in the nonfarm income poverty guidelines 
    prescribed by the Office of Management and Budget, as adjusted 
    annually in accordance with section 9(b)(1)(B).
        ``(3) Evaluation.--
            ``(A) In general.--Not later than 3 years after the 
        implementation of this subsection, the Secretary shall conduct 
        an evaluation to assess the impact of the changed income 
        eligibility guidelines by comparing the school food authorities 
        operating under this subsection to school food authorities not 
        operating under this subsection.
            ``(B) Impact assessment.--
                ``(i) Children.--The evaluation shall assess the impact 
            of this subsection separately on--

                    ``(I) children in households with incomes less than 
                130 percent of the applicable family income levels 
                contained in the nonfarm poverty income guidelines 
                prescribed by the Office of Management and Budget, as 
                adjusted annually in accordance with section 
                9(b)(1)(B); and
                    ``(II) children in households with incomes greater 
                than 130 percent and not greater than 185 percent of 
                the applicable family income levels contained in the 
                nonfarm poverty income guidelines prescribed by the 
                Office of Management and Budget, as adjusted annually 
                in accordance with section 9(b)(1)(B).

                ``(ii) Factors.--The evaluation shall assess the impact 
            of this subsection on--

                    ``(I) certification and participation rates in the 
                school lunch and breakfast programs;
                    ``(II) rates of lunch- and breakfast-skipping;
                    ``(III) academic achievement;
                    ``(IV) the allocation of funds authorized in title 
                I of the Elementary and Secondary Education Act (20 
                U.S.C. 6301) to local educational agencies and public 
                schools; and
                    ``(V) other factors determined by the Secretary.

            ``(C) Cost assessment.--The evaluation shall assess the 
        increased costs associated with providing additional free, 
        reduced price, or paid meals in the school food authorities 
        operating under this subsection.
            ``(D) Report.--On completion of the evaluation, the 
        Secretary shall submit to the Committee on Education and the 
        Workforce of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        describing the results of the evaluation under this paragraph.
        ``(4) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection, to remain available until expended.''.
    SEC. 125. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
      MANAGEMENT INSTITUTE.
    (a) In General.--Section 21(a)(1) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769b-1(a)(1)) is amended by 
striking ``activities and'' and all that follows and inserting 
``activities and provide--
            ``(A) training and technical assistance to improve the 
        skills of individuals employed in--
                ``(i) food service programs carried out with assistance 
            under this Act and, to the maximum extent practicable, 
            using individuals who administer exemplary local food 
            service programs in the State;
                ``(ii) school breakfast programs carried out with 
            assistance under section 4 of the Child Nutrition Act of 
            1966 (42 U.S.C. 1773); and
                ``(iii) as appropriate, other federally assisted 
            feeding programs; and
            ``(B) assistance, on a competitive basis, to State agencies 
        for the purpose of aiding schools and school food authorities 
        with at least 50 percent of enrolled children certified to 
        receive free or reduced price meals (and, if there are any 
        remaining funds, other schools and school food authorities) in 
        meeting the cost of acquiring or upgrading technology and 
        information management systems for use in food service programs 
        carried out under this Act and section 4 of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1773), if the school or school food 
        authority submits to the State agency an infrastructure 
        development plan that--
                ``(i) addresses the cost savings and improvements in 
            program integrity and operations that would result from the 
            use of new or upgraded technology;
                ``(ii) ensures that there is not any overt 
            identification of any child by special tokens or tickets, 
            announced or published list of names, or by any other 
            means;
                ``(iii) provides for processing and verifying 
            applications for free and reduced price school meals;
                ``(iv) integrates menu planning, production, and 
            serving data to monitor compliance with section 9(f)(1); 
            and
                ``(v) establishes compatibility with statewide 
            reporting systems;
            ``(C) assistance, on a competitive basis, to State agencies 
        with low proportions of schools or students that--
                ``(i) participate in the school breakfast program under 
            section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
            1773); and
                ``(ii) demonstrate the greatest need, for the purpose 
            of aiding schools in meeting costs associated with 
            initiating or expanding a school breakfast program under 
            section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
            1773), including outreach and informational activities; 
            and''.
    (b) Duties of Food Service Management Institute.--Section 
21(c)(2)(B) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769b-1(c)(2)(B)) is amended--
        (1) by striking clauses (vi) and (vii) and inserting the 
    following:
                ``(vi) safety, including food handling, hazard analysis 
            and critical control point plan implementation, emergency 
            readiness, responding to a food recall, and food 
            biosecurity training;''; and
        (2) by redesignating clauses (viii) through (x) as clauses 
    (vii) through (ix), respectively.
    (c) Authorization of Appropriations.--
        (1) Training activities and technical assistance.--Section 
    21(e)(1) of the Richard B. Russell National School Lunch Act (42 
    U.S.C. 1769b-1(e)(1)) is amended by striking ``2003'' and inserting 
    ``2009''.
        (2) Food service management institute.--Section 21(e)(2)(A) of 
    the Richard B. Russell National School Lunch Act (42 U.S.C. 1769b-
    1(e)(2)(A) is amended in the first sentence--
            (A) by striking ``provide to the Secretary'' and all that 
        follows through ``1998, and'' and inserting ``provide to the 
        Secretary''; and
            (B) by striking ``1999 and'' and inserting ``2004 and 
        $4,000,000 for fiscal year 2005''.

SEC. 126. ADMINISTRATIVE ERROR REDUCTION.

    (a) Federal Support for Training and Technical Assistance.--Section 
21 of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1769b-1) is amended by adding at the end the following:
    ``(f) Administrative Training and Technical Assistance Material.--
In collaboration with State educational agencies, local educational 
agencies, and school food authorities of varying sizes, the Secretary 
shall develop and distribute training and technical assistance material 
relating to the administration of school meals programs that are 
representative of the best management and administrative practices.
    ``(g) Federal Administrative Support.--
        ``(1) Funding.--
            ``(A) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary of Agriculture to carry out this 
        subsection--
                ``(i) on October 1, 2004, and October 1, 2005, 
            $3,000,000; and
                ``(ii) on October 1, 2006, October 1, 2007, and October 
            1, 2008, $2,000,000.
            ``(B) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subsection the funds transferred under subparagraph (A), 
        without further appropriation.
            ``(C) Availability of funds.--Funds transferred under 
        subparagraph (A) shall remain available until expended.
        ``(2) Use of funds.--The Secretary may use funds provided under 
    this subsection--
            ``(A) to provide training and technical assistance and 
        material related to improving program integrity and 
        administrative accuracy in school meals programs; and
            ``(B) to assist State educational agencies in reviewing the 
        administrative practices of local educational agencies, to the 
        extent determined by the Secretary.''.
    (b) Selected Administrative Reviews.--
        (1) In general.--Section 22(b) of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1769c(b)) is amended by adding 
    at the end the following:
        ``(3) Additional review requirement for selected local 
    educational agencies.--
            ``(A) Definition of selected local educational agencies.--
        In this paragraph, the term `selected local educational agency' 
        means a local educational agency that has a demonstrated high 
        level of, or a high risk for, administrative error, as 
        determined by the Secretary.
            ``(B) Additional administrative review.--In addition to any 
        review required by subsection (a) or paragraph (1), each State 
        educational agency shall conduct an administrative review of 
        each selected local educational agency during the review cycle 
        established under subsection (a).
            ``(C) Scope of review.--In carrying out a review under 
        subparagraph (B), a State educational agency shall only review 
        the administrative processes of a selected local educational 
        agency, including application, certification, verification, 
        meal counting, and meal claiming procedures.
            ``(D) Results of review.--If the State educational agency 
        determines (on the basis of a review conducted under 
        subparagraph (B)) that a selected local educational agency 
        fails to meet performance criteria established by the 
        Secretary, the State educational agency shall--
                ``(i) require the selected local educational agency to 
            develop and carry out an approved plan of corrective 
            action;
                ``(ii) except to the extent technical assistance is 
            provided directly by the Secretary, provide technical 
            assistance to assist the selected local educational agency 
            in carrying out the corrective action plan; and
                ``(iii) conduct a followup review of the selected local 
            educational agency under standards established by the 
            Secretary.
        ``(4) Retaining funds after administrative reviews.--
            ``(A) In general.--Subject to subparagraphs (B) and (C), if 
        the local educational agency fails to meet administrative 
        performance criteria established by the Secretary in both an 
        initial review and a followup review under paragraph (1) or (3) 
        or subsection (a), the Secretary may require the State 
        educational agency to retain funds that would otherwise be paid 
        to the local educational agency for school meals programs under 
        procedures prescribed by the Secretary.
            ``(B) Amount.--The amount of funds retained under 
        subparagraph (A) shall equal the value of any overpayment made 
        to the local educational agency or school food authority as a 
        result of an erroneous claim during the time period described 
        in subparagraph (C).
            ``(C) Time period.--The period for determining the value of 
        any overpayment under subparagraph (B) shall be the period--
                ``(i) beginning on the date the erroneous claim was 
            made; and
                ``(ii) ending on the earlier of the date the erroneous 
            claim is corrected or--

                    ``(I) in the case of the first followup review 
                conducted by the State educational agency of the local 
                educational agency under this section after July 1, 
                2005, the date that is 60 days after the beginning of 
                the period under clause (i); or
                    ``(II) in the case of any subsequent followup 
                review conducted by the State educational agency of the 
                local educational agency under this section, the date 
                that is 90 days after the beginning of the period under 
                clause (i).

        ``(5) Use of retained funds.--
            ``(A) In general.--Subject to subparagraph (B), funds 
        retained under paragraph (4) shall--
                ``(i) be returned to the Secretary, and may be used--

                    ``(I) to provide training and technical assistance 
                related to administrative practices designed to improve 
                program integrity and administrative accuracy in school 
                meals programs to State educational agencies and, to 
                the extent determined by the Secretary, to local 
                educational agencies and school food authorities;
                    ``(II) to assist State educational agencies in 
                reviewing the administrative practices of local 
                educational agencies in carrying out school meals 
                programs; and
                    ``(III) to carry out section 21(f); or

                ``(ii) be credited to the child nutrition programs 
            appropriation account.
            ``(B) State share.--A State educational agency may retain 
        not more than 25 percent of an amount recovered under paragraph 
        (4), to carry out school meals program integrity initiatives to 
        assist local educational agencies and school food authorities 
        that have repeatedly failed, as determined by the Secretary, to 
        meet administrative performance criteria.
            ``(C) Requirement.--To be eligible to retain funds under 
        subparagraph (B), a State educational agency shall--
                ``(i) submit to the Secretary a plan describing how the 
            State educational agency will use the funds to improve 
            school meals program integrity, including measures to give 
            priority to local educational agencies from which funds 
            were retained under paragraph (4);
                ``(ii) consider using individuals who administer 
            exemplary local food service programs in the provision of 
            training and technical assistance; and
                ``(iii) obtain the approval of the Secretary for the 
            plan.''.
        (2) Interpretation.--Nothing in the amendment made by paragraph 
    (1) affects the requirements for fiscal actions as described in the 
    regulations issued pursuant to section 22(a) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1769c(a)).
    (c) Training and Technical Assistance.--Section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
        (1) in subsection (e)--
            (A) by striking ``(e) Each'' and inserting the following:
    ``(e) Plans for Use of Administrative Expense Funds.--
        ``(1) In general.--Each''; and
            (B) by striking ``After submitting'' and all that follows 
        through ``change in the plan.'' and inserting the following:
        ``(2) Updates and information management systems.--
            ``(A) In general.--After submitting the initial plan, a 
        State shall be required to submit to the Secretary for approval 
        only a substantive change in the plan.
            ``(B) Plan contents.--Each State plan shall, at a minimum, 
        include a description of how technology and information 
        management systems will be used to improve program integrity 
        by--
                ``(i) monitoring the nutrient content of meals served;
                ``(ii) training local educational agencies, school food 
            authorities, and schools in how to use technology and 
            information management systems (including verifying 
            eligibility for free or reduced price meals using program 
            participation or income data gathered by State or local 
            agencies); and
                ``(iii) using electronic data to establish benchmarks 
            to compare and monitor program integrity, program 
            participation, and financial data.
        ``(3) Training and technical assistance.--Each State shall 
    submit to the Secretary for approval a plan describing the manner 
    in which the State intends to implement subsection (g) and section 
    22(b)(3) of the Richard B. Russell National School Lunch Act.'';
        (2) by redesignating subsection (g) as subsection (j); and
        (3) by inserting after subsection (f) the following:
    ``(g) State Training.--
        ``(1) In general.--At least annually, each State shall provide 
    training in administrative practices (including training in 
    application, certification, verification, meal counting, and meal 
    claiming procedures) to local educational agency and school food 
    authority administrative personnel and other appropriate personnel, 
    with emphasis on the requirements established by the Child 
    Nutrition and WIC Reauthorization Act of 2004 and the amendments 
    made by that Act.
        ``(2) Federal role.--The Secretary shall--
            ``(A) provide training and technical assistance to a State; 
        or
            ``(B) at the option of the Secretary, directly provide 
        training and technical assistance described in paragraph (1).
        ``(3) Required participation.--In accordance with procedures 
    established by the Secretary, each local educational agency or 
    school food authority shall ensure that an individual conducting or 
    overseeing administrative procedures described in paragraph (1) 
    receives training at least annually, unless determined otherwise by 
    the Secretary.
    ``(h) Funding for Training and Administrative Reviews.--
        ``(1) Funding.--
            ``(A) In general.--On October 1, 2004, and on each October 
        1 thereafter, out of any funds in the Treasury not otherwise 
        appropriated, the Secretary of the Treasury shall transfer to 
        the Secretary of Agriculture to carry out this subsection 
        $4,000,000, to remain available until expended.
            ``(B) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subsection the funds transferred under subparagraph (A), 
        without further appropriation.
        ``(2) Use of funds.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the Secretary shall use funds provided under this subsection to 
        assist States in carrying out subsection (g) and administrative 
        reviews of selected local educational agencies carried out 
        under section 22 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1769c).
            ``(B) Exception.--The Secretary may retain a portion of the 
        amount provided to cover costs of activities carried out by the 
        Secretary in lieu of the State.
        ``(3) Allocation.--The Secretary shall allocate funds provided 
    under this subsection to States based on the number of local 
    educational agencies that have demonstrated a high level of, or a 
    high risk for, administrative error, as determined by the 
    Secretary, taking into account the requirements established by the 
    Child Nutrition and WIC Reauthorization Act of 2004 and the 
    amendments made by that Act.
        ``(4) Reallocation.--The Secretary may reallocate, to carry out 
    this section, any amounts made available to carry out this 
    subsection that are not obligated or expended, as determined by the 
    Secretary.''.

SEC. 127. COMPLIANCE AND ACCOUNTABILITY.

    Section 22(d) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769c(d)) is amended by striking ``$3,000,000 for each of 
the fiscal years 1994 through 2003'' and inserting ``$6,000,000 for 
each of fiscal years 2004 through 2009''.

SEC. 128. INFORMATION CLEARINGHOUSE.

    Section 26(d) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769g(d)) is amended in the first sentence--
        (1) by striking ``1998, and'' and inserting ``1998,''; and
        (2) by striking ``through 2003'' and inserting ``through 2004, 
    and $250,000 for each of fiscal years 2005 through 2009''.

SEC. 129. PROGRAM EVALUATION.

    The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) is amended by adding at the end the following:

``SEC. 28. PROGRAM EVALUATION.

    ``(a) Performance Assessments.--
        ``(1) In general.--Subject to the availability of funds made 
    available under paragraph (3), the Secretary, acting through the 
    Administrator of the Food and Nutrition Service, may conduct annual 
    national performance assessments of the meal programs under this 
    Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
        ``(2) Components.--In conducting an assessment, the Secretary 
    may assess--
            ``(A) the cost of producing meals and meal supplements 
        under the programs described in paragraph (1); and
            ``(B) the nutrient profile of meals, and status of menu 
        planning practices, under the programs.
        ``(3) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection $5,000,000 for fiscal 
    year 2004 and each subsequent fiscal year.
    ``(b) Certification Improvements.--
        ``(1) In general.--Subject to the availability of funds made 
    available under paragraph (5), the Secretary, acting through the 
    Administrator of the Food and Nutrition Service, shall conduct a 
    study of the feasibility of improving the certification process 
    used for the school lunch program established under this Act.
        ``(2) Pilot projects.--In carrying out this subsection, the 
    Secretary may conduct pilot projects to improve the certification 
    process used for the school lunch program.
        ``(3) Components.--In carrying out this subsection, the 
    Secretary shall examine the use of--
            ``(A) other income reporting systems;
            ``(B) an integrated benefit eligibility determination 
        process managed by a single agency;
            ``(C) income or program participation data gathered by 
        State or local agencies; and
            ``(D) other options determined by the Secretary.
        ``(4) Waivers.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary may waive such provisions of this Act and the Child 
        Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are necessary 
        to carry out this subsection.
            ``(B) Provisions.--The protections of section 9(b)(6) shall 
        apply to any study or pilot project carried out under this 
        subsection.
        ``(5) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection such sums as are 
    necessary.''.

          TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

SEC. 201. SEVERE NEED ASSISTANCE.

    Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Severe Need Assistance.--
        ``(1) In general.--Each State educational agency shall provide 
    additional assistance to schools in severe need, which shall 
    include only those schools (having a breakfast program or desiring 
    to initiate a breakfast program) in which--
            ``(A) during the most recent second preceding school year 
        for which lunches were served, 40 percent or more of the 
        lunches served to students at the school were served free or at 
        a reduced price; or
            ``(B) in the case of a school in which lunches were not 
        served during the most recent second preceding school year, the 
        Secretary otherwise determines that the requirements of 
        subparagraph (A) would have been met.
        ``(2) Additional assistance.--A school, on the submission of 
    appropriate documentation about the need circumstances in that 
    school and the eligibility of the school for additional assistance, 
    shall be entitled to receive the meal reimbursement rate specified 
    in subsection (b)(2).''.

SEC. 202. STATE ADMINISTRATIVE EXPENSES.

    (a) Minimum State Administrative Expense Grants.--Section 7 of the 
Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
        (1) by striking the section heading and all that follows 
    through ``(a)(1) Each'' and inserting the following:

``SEC. 7. STATE ADMINISTRATIVE EXPENSES.

    ``(a) Amount and Allocation of Funds.--
        ``(1) Amount available.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        each'';
        (2) in subsection (a)--
            (A) in paragraph (1)--
                (i) by inserting after the first sentence the 
            following:
            ``(B) Minimum amount.--In the case of each of fiscal years 
        2005 through 2007, the Secretary shall make available to each 
        State for administrative costs not less than the initial 
        allocation made to the State under this subsection for fiscal 
        year 2004.'';
                (ii) by striking ``The Secretary'' and inserting the 
            following:
            ``(C) Allocation.--The Secretary''; and
                (iii) by striking the last sentence; and
            (B) in paragraph (2)--
                (i) by striking ``(2) The'' and inserting the 
            following:
        ``(2) Expense grants.--
            ``(A) In general.--Subject to subparagraph (B), the'';
                (ii) in the second sentence--

                    (I) by striking ``In no case'' and inserting the 
                following:

            ``(B) Minimum amount.--
                ``(i) In general.--In no case'';

                    (II) by striking ``this subsection'' and inserting 
                ``this paragraph''; and
                    (III) by striking ``$100,000'' and inserting 
                ``$200,000 (as adjusted under clause (ii)''; and

                (iii) by adding at the end the following:
                ``(ii) Adjustment.--On October 1, 2008, and each 
            October 1 thereafter, the minimum dollar amount for a 
            fiscal year specified in clause (i) shall be adjusted to 
            reflect the percentage change between--

                    ``(I) the value of the index for State and local 
                government purchases, as published by the Bureau of 
                Economic Analysis of the Department of Commerce, for 
                the 12-month period ending June 30 of the second 
                preceding fiscal year; and
                    ``(II) the value of that index for the 12-month 
                period ending June 30 of the preceding fiscal year.''.

    (b) Technology Infrastructure Improvement.--Section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) is amended by inserting after 
subsection (h) (as added by section 126(c)(3)) the following:
    ``(i) Technology Infrastructure Improvement.--
        ``(1) In general.--Each State shall submit to the Secretary, 
    for approval by the Secretary, an amendment to the plan required by 
    subsection (e) that describes the manner in which funds provided 
    under this section will be used for technology and information 
    management systems.
        ``(2) Requirements.--The amendment shall, at a minimum, 
    describe the manner in which the State will improve program 
    integrity by--
            ``(A) monitoring the nutrient content of meals served;
            ``(B) providing training to local educational agencies, 
        school food authorities, and schools on the use of technology 
        and information management systems for activities including--
                ``(i) menu planning;
                ``(ii) collection of point-of-sale data; and
                ``(iii) the processing of applications for free and 
            reduced price meals; and
            ``(C) using electronic data to establish benchmarks to 
        compare and monitor program integrity, program participation, 
        and financial data across schools and school food authorities.
        ``(3) Technology infrastructure grants.--
            ``(A) In general.--Subject to the availability of funds 
        made available under paragraph (4) to carry out this paragraph, 
        the Secretary shall, on a competitive basis, provide funds to 
        States to be used to provide grants to local educational 
        agencies, school food authorities, and schools to defray the 
        cost of purchasing or upgrading technology and information 
        management systems for use in programs authorized by this Act 
        (other than section 17) and the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1751 et seq.).
            ``(B) Infrastructure development plan.--To be eligible to 
        receive a grant under this paragraph, a school or school food 
        authority shall submit to the State a plan to purchase or 
        upgrade technology and information management systems that 
        addresses potential cost savings and methods to improve program 
        integrity, including--
                ``(i) processing and verification of applications for 
            free and reduced price meals;
                ``(ii) integration of menu planning, production, and 
            serving data to monitor compliance with section 9(f)(1) of 
            the Richard B. Russell National School Lunch Act (42 U.S.C. 
            1758(f)(1)); and
                ``(iii) compatibility with statewide reporting systems.
        ``(4) Authorization of appropriations.--There are authorized to 
    be appropriated to carry out this subsection such sums as are 
    necessary for each of fiscal years 2005 through 2009, to remain 
    available until expended.''.
    (c) Reauthorization.--Subsection (j) of section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776) (as redesignated by section 
126(c)(2)) is amended by striking ``2003'' and inserting ``2009''.
    SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
      INFANTS, AND CHILDREN.
    (a) Definitions.--
        (1) Nutrition education.--Section 17(b) of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786(b)) is amended by striking paragraph 
    (7) and inserting the following:
        ``(7) Nutrition education.--The term `nutrition education' 
    means individual and group sessions and the provision of material 
    that are designed to improve health status and achieve positive 
    change in dietary and physical activity habits, and that emphasize 
    the relationship between nutrition, physical activity, and health, 
    all in keeping with the personal and cultural preferences of the 
    individual.''.
        (2) Supplemental foods.--Section 17(b)(14) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(b)(14)) is amended in the 
    first sentence by inserting after ``children'' the following: ``and 
    foods that promote the health of the population served by the 
    program authorized by this section, as indicated by relevant 
    nutrition science, public health concerns, and cultural eating 
    patterns''.
        (3) Other terms.--Section 17(b) of the Child Nutrition Act of 
    1966 (42 U.S.C. 1786(b)) is amended by adding at the end the 
    following:
        ``(22) Primary contract infant formula.--The term `primary 
    contract infant formula' means the specific infant formula for 
    which manufacturers submit a bid to a State agency in response to a 
    rebate solicitation under this section and for which a contract is 
    awarded by the State agency as a result of that bid.
        ``(23) State alliance.--The term `State alliance' means 2 or 
    more State agencies that join together for the purpose of procuring 
    infant formula under the program by soliciting competitive bids for 
    infant formula.''.
    (b) Eligibility.--
        (1) Certification period.--Section 17(d)(3) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended--
            (A) by striking ``(3)(A) Persons'' and inserting the 
        following:
        ``(3) Certification.--
            ``(A) Procedures.--
                ``(i) In general.--Subject to clause (ii), a person''; 
            and
            (B) by adding at the end of subparagraph (A) the following:
                ``(ii) Breastfeeding women.--A State may elect to 
            certify a breastfeeding woman for a period of 1 year 
            postpartum or until a woman discontinues breastfeeding, 
            whichever is earlier.''.
        (2) Physical presence.--Section 17(d)(3)(C)(ii) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(C)(ii)) is amended--
            (A) in subclause (I)(bb), by striking ``from a provider 
        other than the local agency; or'' and inserting a semicolon;
            (B) in subclause (II), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following:

                    ``(III) an infant under 8 weeks of age--

                        ``(aa) who cannot be present at certification 
                    for a reason determined appropriate by the local 
                    agency; and
                        ``(bb) for whom all necessary certification 
                    information is provided.''.
    (c) Administration.--
        (1) Processing vendor applications; participant access.--
    Section 17(f)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C. 
    1786(f)(1)(C)) is amended--
            (A) in clause (i) by inserting ``at any of the authorized 
        retail stores under the program'' after ``the program'';
            (B) by redesignating clauses (ii) through (x) as clauses 
        (iii) through (xi), respectively; and
            (C) by inserting after clause (i) the following:
        ``(ii) procedures for accepting and processing vendor 
    applications outside of the established timeframes if the State 
    agency determines there will be inadequate access to the program, 
    including in a case in which a previously authorized vendor sells a 
    store under circumstances that do not permit timely notification to 
    the State agency of the change in ownership;''.
        (2) Allowable use of funds.--
            (A) In general.--Section 17(f)(11) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(f)(11) is amended--
                (i) by striking ``(11) The Secretary'' and inserting 
            the following:
        ``(11) Supplemental foods.--
            ``(A) In general.--The Secretary'';
                (ii) in the second sentence, by striking ``To the 
            degree'' and inserting the following:
            ``(B) Appropriate content.--To the degree''; and
                (iii) by adding at the end the following:
            ``(C) Allowable use of funds.--Subject to the availability 
        of funds, the Secretary shall award grants to not more than 10 
        local sites determined by the Secretary to be geographically 
        and culturally representative of State, local, and Indian 
        agencies, to evaluate the feasibility of including fresh, 
        frozen, or canned fruits and vegetables (to be made available 
        through private funds) as an addition to the supplemental foods 
        prescribed under this section.
            ``(D) Review of available supplemental foods.--As 
        frequently as determined by the Secretary to be necessary to 
        reflect the most recent scientific knowledge, the Secretary 
        shall--
                ``(i) conduct a scientific review of the supplemental 
            foods available under the program; and
                ``(ii) amend the supplemental foods available, as 
            necessary, to reflect nutrition science, public health 
            concerns, and cultural eating patterns.''.
            (B) Rulemaking.--Not later than 18 months after the date of 
        receiving the review initiated by the National Academy of 
        Sciences, Institute of Medicine in September 2003 of the 
        supplemental foods available for 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), the Secretary shall promulgate a final rule updating the 
        prescribed supplemental foods available through the program.
        (3) Use of claims from local agencies.--Section 17(f)(21) of 
    the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is 
    amended--
            (A) in the paragraph heading, by striking ``vendors'' and 
        inserting ``local agencies, vendors,''; and
            (B) by striking ``vendors'' and inserting ``local agencies, 
        vendors,''.
        (4) Infant formula benefits.--
            (A) In general.--Section 17(f) of the Child Nutrition Act 
        of 1966 (42 U.S.C. 1786(f)) is amended by adding at the end the 
        following:
        ``(25) Infant formula benefits.--A State agency may round up to 
    the next whole can of infant formula to allow all participants 
    under the program to receive the full-authorized nutritional 
    benefit specified by regulation.''.
            (B) Applicability.--The amendment made by subparagraph (A) 
        applies to infant formula provided under a contract resulting 
        from a bid solicitation issued on or after October 1, 2004.
        (5) Notification of violations.--Section 17(f) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by paragraph 
    (4)) is amended by adding at the end the following:
        ``(26) Notification of violations.--If a State agency finds 
    that a vendor has committed a violation that requires a pattern of 
    occurrences in order to impose a penalty or sanction, the State 
    agency shall notify the vendor of the initial violation in writing 
    prior to documentation of another violation, unless the State 
    agency determines that notifying the vendor would compromise an 
    investigation.''.
    (d) Reauthorization of WIC Program.--Section 17(g) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended by striking 
``(g)(1)'' and all that follows through ``As authorized'' in paragraph 
(1) and inserting the following:
    ``(g) Authorization of Appropriations.--
        ``(1) In general.--
            ``(A) Authorization.--There are authorized to be 
        appropriated to carry out this section such sums as are 
        necessary for each of fiscal years 2004 through 2009.
            ``(B) Advance appropriations; availability.--As 
        authorized''.
    (e) Nutrition Services and Administration Funds; Competitive 
Bidding; Retailers.--
        (1) In general.--Section 17(h)(2)(A) of the Child Nutrition Act 
    of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended by striking ``For each 
    of the fiscal years 1995 through 2003, the'' and inserting ``The''.
        (2) Healthy people 2010 initiative.--Section 17(h)(4) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(4)) is amended--
            (A) in subparagraph (D), by striking ``; and'' and 
        inserting a semicolon;
            (B) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following:
            ``(F) partner with communities, State and local agencies, 
        employers, health care professionals, and other entities in the 
        private sector to build a supportive breastfeeding environment 
        for women participating in the program under this section to 
        support the breastfeeding goals of the Healthy People 2010 
        initiative.''.
        (3) Size of state alliances.--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:
                ``(iv) Size of state alliances.--

                    ``(I) In general.--Except as provided in subclauses 
                (II) through (IV), no State alliance may exist among 
                States if the total number of infants served by States 
                participating in the alliance as of October 1, 2003, or 
                such subsequent date determined by the Secretary for 
                which data is available, would exceed 100,000.
                    ``(II) Addition of infant participants.--In the 
                case of a State alliance that exists on the date of 
                enactment of this clause, the alliance may continue and 
                may expand to serve more than 100,000 infants but, 
                except as provided in subclause (III), may not expand 
                to include any additional State agency.
                    ``(III) Addition of small state agencies and indian 
                state agencies.--Any State alliance may expand to 
                include any State agency that served less than 5,000 
                infant participants as of October 1, 2003, or such 
                subsequent date determined by the Secretary for which 
                data is available, or any Indian State agency, if the 
                State agency or Indian State agency requests to join 
                the State alliance.
                    ``(IV) Secretarial waiver.--The Secretary may waive 
                the requirements of this clause not earlier than 30 
                days after submitting to the Committee on Education and 
                the Workforce of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate a written report that describes the cost-
                containment and competitive benefits of the proposed 
                waiver.''.

        (4) Primary contract infant formula.--
            (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(8)(A)) (as amended by paragraph 
        (3)) is amended--
                (i) in clause (ii)(I), by striking ``contract brand 
            of'' and inserting ``primary contract'';
                (ii) in clause (iii), by inserting ``for a specific 
            infant formula for which manufacturers submit a bid'' after 
            ``lowest net price''; and
                (iii) by adding at the end the following:
                ``(v) First choice of issuance.--The State agency shall 
            use the primary contract infant formula as the first choice 
            of issuance (by formula type), with all other infant 
            formulas issued as an alternative to the primary contract 
            infant formula.''.
            (B) Applicability.--The amendments made by subparagraph (A) 
        apply to a contract resulting from a bid solicitation issued on 
        or after October 1, 2004.
        (5) Rebate invoices.--Section 17(h)(8)(A) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
    paragraph (4)(A)(iii)) is amended by adding at the end the 
    following:
                ``(vi) Rebate invoices.--Each State agency shall have a 
            system to ensure that infant formula rebate invoices, under 
            competitive bidding, provide a reasonable estimate or an 
            actual count of the number of units sold to participants in 
            the program under this section.''.
        (6) Uncoupling milk and soy bids.--
            (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by paragraph 
        (5)) is amended by adding at the end the following:
                ``(vii) Separate solicitations.--In soliciting bids for 
            infant formula under a competitive bidding system, any 
            State agency, or State alliance, that served under the 
            program a monthly average of more than 100,000 infants 
            during the preceding 12-month period shall solicit bids 
            from infant formula manufacturers under procedures that 
            require that bids for rebates or discounts are solicited 
            for milk-based and soy-based infant formula separately.''.
            (B) Applicability.--The amendment made by this paragraph 
        applies to a bid solicitation issued on or after October 1, 
        2004.
        (7) Cent-for-cent adjustments.--
            (A) In general.--Section 17(h)(8)(A) of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by paragraph 
        (6)(A)) is amended by adding at the end the following:
                ``(viii) Cent-for-cent adjustments.--A bid solicitation 
            for infant formula under the program shall require the 
            manufacturer to adjust for price changes subsequent to the 
            opening of the bidding process in a manner that requires--

                    ``(I) a cent-for-cent increase in the rebate 
                amounts if there is an increase in the lowest national 
                wholesale price for a full truckload of the particular 
                infant formula; and
                    ``(II) a cent-for-cent decrease in the rebate 
                amounts if there is a decrease in the lowest national 
                wholesale price for a full truckload of the particular 
                infant formula.''.

            (B) Conforming amendment.--Section 17(h)(8)(A)(ii) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)(ii)) is 
        amended by striking ``rise'' and inserting ``change''.
            (C) Applicability.--The amendments made by this paragraph 
        apply to a bid solicitation issued on or after October 1, 2004.
        (8) List of infant formula wholesalers, distributors, 
    retailers, and manufacturers.--Section 17(h)(8)(A) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) (as amended by 
    paragraph (7)(A)) is amended by adding at the end the following:
                ``(ix) List of infant formula wholesalers, 
            distributors, retailers, and manufacturers.--The State 
            agency shall maintain a list of--

                    ``(I) infant formula wholesalers, distributors, and 
                retailers licensed in the State in accordance with 
                State law (including regulations); and
                    ``(II) infant formula manufacturers registered with 
                the Food and Drug Administration that provide infant 
                formula.

                ``(x) Purchase requirement.--A vendor authorized to 
            participate in the program under this section shall only 
            purchase infant formula from the list described in clause 
            (ix).''.
        (9) Funds for infrastructure, management information systems, 
    and special nutrition education.--Section 17(h) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking 
    paragraph (10) and inserting the following:
        ``(10) Funds for infrastructure, management information 
    systems, and special nutrition education.--
            ``(A) In general.--For each of fiscal years 2006 through 
        2009, the Secretary shall use for the purposes specified in 
        subparagraph (B), $64,000,000 or the amount of nutrition 
        services and administration funds and supplemental food funds 
        for the prior fiscal year that have not been obligated, 
        whichever is less.
            ``(B) Purposes.--Of the amount made available under 
        subparagraph (A) for a fiscal year, not more than--
                ``(i) $14,000,000 shall be used for--

                    ``(I) infrastructure for the program under this 
                section;
                    ``(II) special projects to promote breastfeeding, 
                including projects to assess the effectiveness of 
                particular breastfeeding promotion strategies; and
                    ``(III) special State projects of regional or 
                national significance to improve the services of the 
                program;

                ``(ii) $30,000,000 shall be used to establish, improve, 
            or administer management information systems for the 
            program, including changes necessary to meet new 
            legislative or regulatory requirements of the program; and
                ``(iii) $20,000,000 shall be used for special nutrition 
            education such as breast feeding peer counselors and other 
            related activities.
            ``(C) Proportional distribution.--In a case in which less 
        than $64,000,000 is available to carry out this paragraph, the 
        Secretary shall make a proportional distribution of funds 
        allocated under subparagraph (B).''.
        (10) Vendor cost containment.--
            (A) Section 17(h) of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786(h)) is amended by striking paragraph (11) and 
        inserting the following:
        ``(11) Vendor cost containment.--
            ``(A) Peer groups.--
                ``(i) In general.--The State agency shall--

                    ``(I) establish a vendor peer group system;
                    ``(II) in accordance with subparagraphs (B) and 
                (C), establish competitive price criteria and allowable 
                reimbursement levels for each vendor peer group; and
                    ``(III) if the State agency elects to authorize any 
                types of vendors described in subparagraph (D)(ii)(I)--

                        ``(aa) distinguish between vendors described in 
                    subparagraph (D)(ii)(I) and other vendors by 
                    establishing--
                            ``(AA) separate peer groups for vendors 
                        described in subparagraph (D)(ii)(I);or
                            ``(BB) distinct competitive price criteria 
                        and allowable reimbursement levels for vendors 
                        described in subparagraph (D)(ii)(I) within a 
                        peer group that contains both vendors described 
                        in subparagraph (D)(ii)(I) and other vendors; 
                        and
                        ``(bb) establish competitive price criteria and 
                    allowable reimbursement levels that comply with 
                    subparagraphs (B) and (C), respectively, and that 
                    do not result in higher food costs if program 
                    participants redeem supplemental food vouchers at 
                    vendors described in subparagraph (D)(ii)(I) rather 
                    than at vendors other than vendors described in 
                    subparagraph (D)(ii)(I).
    Nothing in this paragraph shall be construed to compel a State 
    agency to achieve lower food costs if program participants redeem 
    supplemental food vouchers at vendors described in subparagraph 
    (D)(ii)(I) rather than at vendors other than vendors described in 
    subparagraph (D)(ii)(I).
                ``(ii) Exemptions.--The Secretary may exempt from the 
            requirements of clause (i)--

                    ``(I) a State agency that elects not to authorize 
                any types of vendors described in subparagraph 
                (D)(ii)(I) and that demonstrates to the Secretary 
                that--

                        ``(aa) compliance with clause (i) would be 
                    inconsistent with efficient and effective operation 
                    of the program administered by the State under this 
                    section; or
                        ``(bb) an alternative cost-containment system 
                    would be as effective as a vendor peer group 
                    system; or

                    ``(II) a State agency--

                        ``(aa) in which the sale of supplemental foods 
                    that are obtained with food instruments from 
                    vendors described in subparagraph (D)(ii)(I) 
                    constituted less than 5 percent of total sales of 
                    supplemental foods that were obtained with food 
                    instruments in the State in the year preceding a 
                    year in which the exemption is effective; and
                        ``(bb) that demonstrates to the Secretary that 
                    an alternative cost-containment system would be as 
                    effective as the vendor peer group system and would 
                    not result in higher food costs if program 
                    participants redeem supplemental food vouchers at 
                    vendors described in subparagraph (D)(ii)(I) rather 
                    than at vendors other than vendors described in 
                    subparagraph (D)(ii)(I).
            ``(B) Competitive pricing.--
                ``(i) In general.--The State agency shall establish 
            competitive price criteria for each peer group for the 
            selection of vendors for participation in the program 
            that--

                    ``(I) ensure that the retail prices charged by 
                vendor applicants for the program are competitive with 
                the prices charged by other vendors; and
                    ``(II) consider--

                        ``(aa) the shelf prices of the vendor for all 
                    buyers; or
                        ``(bb) the prices that the vendor bid for 
                    supplemental foods, which shall not exceed the 
                    shelf prices of the vendor for all buyers.
                ``(ii) Participant access.--In establishing competitive 
            price criteria, the State agency shall consider participant 
            access by geographic area.
                ``(iii) Subsequent price increases.--The State agency 
            shall establish procedures to ensure that a retail store 
            selected for participation in the program does not, 
            subsequent to selection, increase prices to levels that 
            would make the store ineligible for selection to 
            participate in the program.
            ``(C) Allowable reimbursement levels.--
                ``(i) In general.--The State agency shall establish 
            allowable reimbursement levels for supplemental foods for 
            each vendor peer group that ensure--

                    ``(I) that payments to vendors in the vendor peer 
                group reflect competitive retail prices; and
                    ``(II) that the State agency does not reimburse a 
                vendor for supplemental foods at a level that would 
                make the vendor ineligible for authorization under the 
                criteria established under subparagraph (B).

                ``(ii) Price fluctuations.--The allowable reimbursement 
            levels may include a factor to reflect fluctuations in 
            wholesale prices.
                ``(iii) Participant access.--In establishing allowable 
            reimbursement levels, the State agency shall consider 
            participant access in a geographic area.
            ``(D) Exemptions.--The State agency may exempt from 
        competitive price criteria and allowable reimbursement levels 
        established under this paragraph--
                ``(i) pharmacy vendors that supply only exempt infant 
            formula or medical foods that are eligible under the 
            program; and
                ``(ii) vendors--

                    ``(I)(aa) for which more than 50 percent of the 
                annual revenue of the vendor from the sale of food 
                items consists of revenue from the sale of supplemental 
                foods that are obtained with food instruments; or
                    ``(bb) who are new applicants likely to meet the 
                criteria of item (aa) under criteria approved by the 
                Secretary; and
                    ``(II) that are nonprofit.

            ``(E) Cost containment.--If a State agency elects to 
        authorize any types of vendors described in subparagraph 
        (D)(ii)(I), the State agency shall demonstrate to the 
        Secretary, and the Secretary shall certify, that the 
        competitive price criteria and allowable reimbursement levels 
        established under this paragraph for vendors described in 
        subparagraph (D)(ii)(I) do not result in average payments per 
        voucher to vendors described in subparagraph (D)(ii)(I) that 
        are higher than average payments per voucher to comparable 
        vendors other than vendors described in subparagraph 
        (D)(ii)(I).
            ``(F) Limitation on private rights of action.--Nothing in 
        this paragraph may be construed as creating a private right of 
        action.
            ``(G) Implementation.--A State agency shall comply with 
        this paragraph not later than 18 months after the date of 
        enactment of this paragraph.''.
            (B) Conforming amendment.--Section 17(f)(1)(C)(i) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(1)(C)(i)) is 
        amended by inserting before the semicolon the following: ``, 
        including a description of the State agency's vendor peer group 
        system, competitive price criteria, and allowable reimbursement 
        levels that demonstrate that the State is in compliance with 
        the cost-containment provisions in subsection (h)(11).''.
        (11) Imposition of costs on retail stores.--Section 17(h) of 
    the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by 
    striking paragraph (12) and inserting the following:
        ``(12) Imposition of costs on retail stores.--The Secretary may 
    not impose, or allow a State agency to impose, the costs of any 
    equipment, system, or processing required for electronic benefit 
    transfers on any retail store authorized to transact food 
    instruments, as a condition for authorization or participation in 
    the program.''.
        (12) Universal product codes database.--Section 17(h) of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) (as amended by 
    paragraph (11)) is amended by adding at the end the following:
        ``(13) Universal product codes database.--The Secretary shall--
            ``(A) establish a national universal product code database 
        for use by all State agencies in carrying out the program; and
            ``(B) make available from appropriated funds such sums as 
        are required for hosting, hardware and software configuration, 
        and support of the database.''.
        (13) Incentive items.--Section 17(h) of the Child Nutrition Act 
    of 1966 (42 U.S.C. 1786(h)) (as amended by paragraph (12)) is 
    amended by adding at the end the following:
        ``(14) Incentive items.--A State agency shall not authorize or 
    make payments to a vendor described in paragraph (11)(D)(ii)(I) 
    that provides incentive items or other free merchandise, except 
    food or merchandise of nominal value (as determined by the 
    Secretary), to program participants unless the vendor provides to 
    the State agency proof that the vendor obtained the incentive items 
    or merchandise at no cost.''.
    (f) Spend Forward Authority.--Section 17(i)(3)(A)(ii)(I) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)(ii)(I)) is amended 
by striking ``1 percent'' and inserting ``3 percent''.
    (g) Migrant and Community Health Centers Initiative.--Section 17(j) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(j)) is amended--
        (1) by striking paragraph (4); and
        (2) by redesignating paragraph (5) as paragraph (4).
    (h) Farmers' Market Nutrition Program.--
        (1) Roadside stands.--Section 17(m)(1) of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786(m)(1)) is amended by inserting ``and 
    (at the option of a State) roadside stands'' after ``farmers' 
    markets''.
        (2) Matching funds.--Section 17(m)(3) of the Child Nutrition 
    Act of 1966 (42 U.S.C. 1786(m)(3)) is amended by striking ``total'' 
    both places it appears and inserting ``administrative''.
        (3) Benefit value.--Section 17(m)(5)(C)(ii) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(m)(5)(C)(ii)) is amended by 
    striking ``$20'' and inserting ``$30''.
        (4) Reauthorization.--Section 17(m)(9)(A) of the Child 
    Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by 
    striking clause (i) and inserting the following:
                ``(i) Authorization of appropriations.--There are 
            authorized to be appropriated to carry out this subsection 
            such sums as are necessary for each of fiscal years 2004 
            through 2009.''.
    (i) Demonstration Project Relating to Use of WIC Program for 
Identification and Enrollment of Children in Certain Health Programs.--
        (1) In general.--Section 17 of the Child Nutrition Act of 1966 
    (42 U.S.C. 1786) is amended by striking subsection (r).
        (2) Conforming amendment.--Section 12 of the Richard B. Russell 
    National School Lunch Act (42 U.S.C. 1760) is amended by striking 
    subsection (p).

SEC. 204. LOCAL WELLNESS POLICY.

    (a) In General.--Not later than the first day of the school year 
beginning after June 30, 2006, each local educational agency 
participating in a program authorized by the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.) or the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall establish a local 
school wellness policy for schools under the local educational agency 
that, at a minimum--
        (1) includes goals for nutrition education, physical activity, 
    and other school-based activities that are designed to promote 
    student wellness in a manner that the local educational agency 
    determines is appropriate;
        (2) includes nutrition guidelines selected by the local 
    educational agency for all foods available on each school campus 
    under the local educational agency during the school day with the 
    objectives of promoting student health and reducing childhood 
    obesity;
        (3) provides an assurance that guidelines for reimbursable 
    school meals shall not be less restrictive than regulations and 
    guidance issued by the Secretary of Agriculture pursuant to 
    subsections (a) and (b) of section 10 of the Child Nutrition Act 
    (42 U.S.C. 1779) and sections 9(f)(1) and 17(a) of the Richard B. 
    Russell National School Lunch Act (42 U.S.C. 1758(f)(1), 1766(a)), 
    as those regulations and guidance apply to schools;
        (4) establishes a plan for measuring implementation of the 
    local wellness policy, including designation of 1 or more persons 
    within the local educational agency or at each school, as 
    appropriate, charged with operational responsibility for ensuring 
    that the school meets the local wellness policy; and
        (5) involves parents, students, representatives of the school 
    food authority, the school board, school administrators, and the 
    public in the development of the school wellness policy.
    (b) Technical Assistance and Best Practices.--
        (1) In general.--The Secretary, in coordination with the 
    Secretary of Education and in consultation with the Secretary of 
    Health and Human Services, acting through the Centers for Disease 
    Control and Prevention, shall make available to local educational 
    agencies, school food authorities, and State educational agencies, 
    on request, information and technical assistance for use in--
            (A) establishing healthy school nutrition environments;
            (B) reducing childhood obesity; and
            (C) preventing diet-related chronic diseases.
        (2) Content.--Technical assistance provided by the Secretary 
    under this subsection shall--
            (A) include relevant and applicable examples of schools and 
        local educational agencies that have taken steps to offer 
        healthy options for foods sold or served in schools;
            (B) include such other technical assistance as is required 
        to carry out the goals of promoting sound nutrition and 
        establishing healthy school nutrition environments that are 
        consistent with this section;
            (C) be provided in such a manner as to be consistent with 
        the specific needs and requirements of local educational 
        agencies; and
            (D) be for guidance purposes only and not be construed as 
        binding or as a mandate to schools, local educational agencies, 
        school food authorities, or State educational agencies.
        (3) Funding.--
            (A) In general.--On July 1, 2006, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this subsection $4,000,000, to remain available until 
        September 30, 2009.
            (B) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subsection the funds transferred under subparagraph (A), 
        without further appropriation.

SEC. 205. TEAM NUTRITION NETWORK.

    (a) Team Nutrition Network.--Section 19 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1788) is amended to read as follows:

``SEC. 19. TEAM NUTRITION NETWORK.

    ``(a) Purposes.--The purposes of the team nutrition network are--
        ``(1) to establish State systems to promote the nutritional 
    health of school children of the United States through nutrition 
    education and the use of team nutrition messages and material 
    developed by the Secretary, and to encourage regular physical 
    activity and other activities that support healthy lifestyles for 
    children, including those based on the most recent Dietary 
    Guidelines for Americans published under section 301 of the 
    National Nutrition Monitoring and Related Research Act of 1990 (7 
    U.S.C. 5341);
        ``(2) to provide assistance to States for the development of 
    comprehensive and integrated nutrition education and active living 
    programs in schools and facilities that participate in child 
    nutrition programs;
        ``(3) to provide training and technical assistance and 
    disseminate team nutrition messages to States, school and community 
    nutrition programs, and child nutrition food service professionals;
        ``(4) to coordinate and collaborate with other nutrition 
    education and active living programs that share similar goals and 
    purposes; and
        ``(5) to identify and share innovative programs with 
    demonstrated effectiveness in helping children to maintain a 
    healthy weight by enhancing student understanding of healthful 
    eating patterns and the importance of regular physical activity.
    ``(b) Definition of Team Nutrition Network.--In this section, the 
term `team nutrition network' means a statewide multidisciplinary 
program for children to promote healthy eating and physical activity 
based on scientifically valid information and sound educational, 
social, and marketing principles.
    ``(c) Grants.--
        ``(1) In general.--Subject to the availability of funds for use 
    in carrying out this section, in addition to any other funds made 
    available to the Secretary for team nutrition purposes, the 
    Secretary, in consultation with the Secretary of Education, may 
    make grants to State agencies for each fiscal year, in accordance 
    with this section, to establish team nutrition networks to promote 
    nutrition education through--
            ``(A) the use of team nutrition network messages and other 
        scientifically based information; and
            ``(B) the promotion of active lifestyles.
        ``(2) Form.--A portion of the grants provided under this 
    subsection may be in the form of competitive grants.
        ``(3) Funds from nongovernmental sources.--In carrying out this 
    subsection, the Secretary may accept cash contributions from 
    nongovernmental organizations made expressly to further the 
    purposes of this section, to be managed by the Food and Nutrition 
    Service, for use by the Secretary and the States in carrying out 
    this section.
    ``(d) Allocation.--Subject to the availability of funds for use in 
carrying out this section, the total amount of funds made available for 
a fiscal year for grants under this section shall equal not more than 
the sum of--
        ``(1) the product obtained by multiplying \1/2\ cent by the 
    number of lunches reimbursed through food service programs under 
    the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
    seq.) during the second preceding fiscal year in schools, 
    institutions, and service institutions that participate in the food 
    service programs; and
        ``(2) the total value of funds received by the Secretary in 
    support of this section from nongovernmental sources.
    ``(e) Requirements for State Participation.--To be eligible to 
receive a grant under this section, a State agency shall submit to the 
Secretary a plan that--
        ``(1) is subject to approval by the Secretary; and
        ``(2) is submitted at such time and in such manner, and that 
    contains such information, as the Secretary may require, 
    including--
            ``(A) a description of the goals and proposed State plan 
        for addressing the health and other consequences of children 
        who are at risk of becoming overweight or obese;
            ``(B) an analysis of the means by which the State agency 
        will use and disseminate the team nutrition messages and 
        material developed by the Secretary;
            ``(C) an explanation of the ways in which the State agency 
        will use the funds from the grant to work toward the goals 
        required under subparagraph (A), and to promote healthy eating 
        and physical activity and fitness in schools throughout the 
        State;
            ``(D) a description of the ways in which the State team 
        nutrition network messages and activities will be coordinated 
        at the State level with other health promotion and education 
        activities;
            ``(E) a description of the consultative process that the 
        State agency employed in the development of the model nutrition 
        and physical activity programs, including consultations with 
        individuals and organizations with expertise in promoting 
        public health, nutrition, or physical activity;
            ``(F) a description of how the State agency will evaluate 
        the effectiveness of each program developed by the State 
        agency;
            ``(G) an annual summary of the team nutrition network 
        activities;
            ``(H) a description of the ways in which the total school 
        environment will support healthy eating and physical activity; 
        and
            ``(I) a description of how all communications to parents 
        and legal guardians of students who are members of a household 
        receiving or applying for assistance under the program shall be 
        in an understandable and uniform format and, to the maximum 
        extent practicable, in a language that parents and legal 
        guardians can understand.
    ``(f) State Coordinator.--Each State that receives a grant under 
this section shall appoint a team nutrition network coordinator who 
shall--
        ``(1) administer and coordinate the team nutrition network 
    within and across schools, school food authorities, and other child 
    nutrition program providers in the State; and
        ``(2) coordinate activities of the Secretary, acting through 
    the Food and Nutrition Service, and State agencies responsible for 
    other children's health, education, and wellness programs to 
    implement a comprehensive, coordinated team nutrition network 
    program.
    ``(g) Authorized Activities.--A State agency that receives a grant 
under this section may use funds from the grant--
        ``(1)(A) to collect, analyze, and disseminate data regarding 
    the extent to which children and youths in the State are 
    overweight, physically inactive, or otherwise suffering from 
    nutrition-related deficiencies or disease conditions; and
        ``(B) to identify the programs and services available to meet 
    those needs;
        ``(2) to implement model elementary and secondary education 
    curricula using team nutrition network messages and material 
    developed by the Secretary to create a comprehensive, coordinated 
    nutrition and physical fitness awareness and obesity prevention 
    program;
        ``(3) to implement pilot projects in schools to promote 
    physical activity and to enhance the nutritional status of 
    students;
        ``(4) to improve access to local foods through farm-to-
    cafeteria activities that may include the acquisition of food and 
    the provision of training and education;
        ``(5) to implement State guidelines in health (including 
    nutrition education and physical education guidelines) and to 
    emphasize regular physical activity during school hours;
        ``(6) to establish healthy eating and lifestyle policies in 
    schools;
        ``(7) to provide training and technical assistance to teachers 
    and school food service professionals consistent with the purposes 
    of this section;
        ``(8) to collaborate with public and private organizations, 
    including community-based organizations, State medical 
    associations, and public health groups, to develop and implement 
    nutrition and physical education programs targeting lower income 
    children, ethnic minorities, and youth at a greater risk for 
    obesity.
    ``(h) Local Nutrition and Physical Activity Grants.--
        ``(1) In general.--Subject to the availability of funds to 
    carry out this subsection, the Secretary, in consultation with the 
    Secretary of Education, shall provide assistance to selected local 
    educational agencies to create healthy school nutrition 
    environments, promote healthy eating habits, and increase physical 
    activity, consistent with the Dietary Guidelines for Americans 
    published under section 301 of the National Nutrition Monitoring 
    and Related Research Act of 1990 (7 U.S.C. 5341), among elementary 
    and secondary education students.
        ``(2) Selection of schools.--In selecting local educational 
    agencies for grants under this subsection, the Secretary shall--
            ``(A) provide for the equitable distribution of grants 
        among--
                ``(i) urban, suburban, and rural schools; and
                ``(ii) schools with varying family income levels;
            ``(B) consider factors that affect need, including local 
        educational agencies with significant minority or low-income 
        student populations; and
            ``(C) establish a process that allows the Secretary to 
        conduct an evaluation of how funds were used.
        ``(3) Requirement for participation.--To be eligible to receive 
    assistance under this subsection, a local educational agency shall, 
    in consultation with individuals who possess education or 
    experience appropriate for representing the general field of public 
    health, including nutrition and fitness professionals, submit to 
    the Secretary an application that shall include--
            ``(A) a description of the need of the local educational 
        agency for a nutrition and physical activity program, including 
        an assessment of the nutritional environment of the school;
            ``(B) a description of how the proposed project will 
        improve health and nutrition through education and increased 
        access to physical activity;
            ``(C) a description of how the proposed project will be 
        aligned with the local wellness policy required under section 
        204 of the Child Nutrition and WIC Reauthorization Act of 2004;
            ``(D) a description of how funds under this subsection will 
        be coordinated with other programs under this Act, the Richard 
        B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), 
        or other Acts, as appropriate, to improve student health and 
        nutrition;
            ``(E) a statement of the measurable goals of the local 
        educational agency for nutrition and physical education 
        programs and promotion;
            ``(F) a description of the procedures the agency will use 
        to assess and publicly report progress toward meeting those 
        goals; and
            ``(G) a description of how communications to parents and 
        guardians of participating students regarding the activities 
        under this subsection shall be in an understandable and uniform 
        format, and, to the extent maximum practicable, in a language 
        that parents can understand.
        ``(4) Duration.--Subject to the availability of funds made 
    available to carry out this subsection, a local educational agency 
    receiving assistance under this subsection shall conduct the 
    project during a period of 3 successive school years beginning with 
    the initial fiscal year for which the local educational agency 
    receives funds.
        ``(5) Authorized activities.--An eligible applicant that 
    receives assistance under this subsection--
            ``(A) shall use funds provided to--
                ``(i) promote healthy eating through the development 
            and implementation of nutrition education programs and 
            curricula based on the Dietary Guidelines for Americans 
            published under section 301 of the National Nutrition 
            Monitoring and Related Research Act of 1990 (7 U.S.C. 
            5341); and
                ``(ii) increase opportunities for physical activity 
            through after school programs, athletics, intramural 
            activities, and recess; and
            ``(B) may use funds provided to--
                ``(i) educate parents and students about the 
            relationship of a poor diet and inactivity to obesity and 
            other health problems;
                ``(ii) develop and implement physical education 
            programs that promote fitness and lifelong activity;
                ``(iii) provide training and technical assistance to 
            food service professionals to develop more appealing, 
            nutritious menus and recipes;
                ``(iv) incorporate nutrition education into physical 
            education, health education, and after school programs, 
            including athletics;
                ``(v) involve parents, nutrition professionals, food 
            service staff, educators, community leaders, and other 
            interested parties in assessing the food options in the 
            school environment and developing and implementing an 
            action plan to promote a balanced and healthy diet;
                ``(vi) provide nutrient content or nutrition 
            information on meals served through the school lunch 
            program established under the Richard B. Russell National 
            School Lunch Act (42 U.S.C. 1751 et seq.) and the school 
            breakfast program established by section 4 of this Act and 
            items sold a la carte during meal times;
                ``(vii) encourage the increased consumption of a 
            variety of healthy foods, including fruits, vegetables, 
            whole grains, and low-fat dairy products, through new 
            initiatives to creatively market healthful foods, such as 
            salad bars and fruit bars;
                ``(viii) offer healthy food choices outside program 
            meals, including by making low-fat and nutrient dense 
            options available in vending machines, school stores, and 
            other venues; and
                ``(ix) provide nutrition education, including sports 
            nutrition education, for teachers, coaches, food service 
            staff, athletic trainers, and school nurses.
        ``(6) Report.--Not later than 18 months after completion of the 
    projects and evaluations under this subsection, the Secretary 
    shall--
            ``(A) submit to the Committee on Education and the 
        Workforce of the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions and the Committee on 
        Agriculture, Nutrition and Forestry of the Senate a report 
        describing the results of the evaluation under this subsection; 
        and
            ``(B) make the report available to the public, including 
        through the Internet.
    ``(i) Nutrition Education Support.--In carrying out the purpose of 
this section to support nutrition education, the Secretary may provide 
for technical assistance and grants to improve the quality of school 
meals and access to local foods in schools and institutions.
    ``(j) Limitation.--Material prepared under this section regarding 
agricultural commodities, food, or beverages, must be factual and 
without bias.
    ``(k) Team Nutrition Network Independent Evaluation.--
        ``(1) In general.--Subject to the availability of funds to 
    carry out this subsection, the Secretary shall offer to enter into 
    an agreement with an independent, nonpartisan, science-based 
    research organization--
            ``(A) to conduct a comprehensive independent evaluation of 
        the effectiveness of the team nutrition initiative and the team 
        nutrition network under this section; and
            ``(B) to identify best practices by schools in--
                ``(i) improving student understanding of healthful 
            eating patterns;
                ``(ii) engaging students in regular physical activity 
            and improving physical fitness;
                ``(iii) reducing diabetes and obesity rates in school 
            children;
                ``(iv) improving student nutrition behaviors on the 
            school campus, including by increasing healthier meal 
            choices by students, as evidenced by greater inclusion of 
            fruits, vegetables, whole grains, and lean dairy and 
            protein in meal and snack selections;
                ``(v) providing training and technical assistance for 
            food service professionals resulting in the availability of 
            healthy meals that appeal to ethnic and cultural taste 
            preferences;
                ``(vi) linking meals programs to nutrition education 
            activities;
                ``(vii) successfully involving parents, school 
            administrators, the private sector, public health agencies, 
            nonprofit organizations, and other community partners;
                ``(viii) ensuring the adequacy of time to eat during 
            school meal periods; and
                ``(ix) successfully generating revenue through the sale 
            of food items, while providing healthy options to students 
            through vending, student stores, and other venues.
        ``(2) Report.--Not later than 3 years after funds are made 
    available to carry out this subsection, the Secretary shall submit 
    to the Committee on Education and the Workforce of the House of 
    Representatives, the Committee on Health, Education, Labor, and 
    Pensions and the Committee on Agriculture, Nutrition, and Forestry 
    of the Senate a report describing the findings of the independent 
    evaluation.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (b) Conforming Amendment.--Section 21(c)(2)(E) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769b-1(c)(2)(E)) is 
amended by striking ``, including'' and all that follows through 
``1966''.
    SEC. 206. REVIEW OF BEST PRACTICES IN THE BREAKFAST PROGRAM.
    (a) Review.--
        (1) In general.--Subject to the availability of funds under 
    subsection (c), the Secretary of Agriculture shall enter into an 
    agreement with a research organization to collect and disseminate a 
    review of best practices to assist school food authorities in 
    addressing existing impediments at the State and local level that 
    hinder the growth of the school breakfast program under section 4 
    of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
        (2) Recommendations.--The review shall describe model breakfast 
    programs and offer recommendations for schools to overcome 
    obstacles, including--
            (A) the length of the school day;
            (B) bus schedules; and
            (C) potential increases in costs at the State and local 
        level.
    (b) Dissemination.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall--
        (1) make the review required under subsection (a) available to 
    school food authorities via the Internet, including recommendations 
    to improve participation in the school breakfast program; and
        (2) transmit to Committee on Education and the Workforce of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate a copy of the review.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

               TITLE III--COMMODITY DISTRIBUTION PROGRAMS

SEC. 301. COMMODITY DISTRIBUTION PROGRAMS.

    Section 15 of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended 
by striking subsection (e).

                        TITLE IV--MISCELLANEOUS

    SEC. 401. SENSE OF CONGRESS REGARDING EFFORTS TO PREVENT AND REDUCE 
      CHILDHOOD OBESITY.
    (a) Findings.--Congress finds that--
        (1) childhood obesity in the United States has reached critical 
    proportions;
        (2) childhood obesity is associated with numerous health risks 
    and the incidence of chronic disease later in life;
        (3) the prevention of obesity among children yields significant 
    benefits in terms of preventing disease and the health care costs 
    associated with such diseases;
        (4) further scientific and medical data on the prevalence of 
    childhood obesity is necessary in order to inform efforts to fight 
    childhood obesity; and
        (5) the State of Arkansas--
            (A) is the first State in the United States to have a 
        comprehensive statewide initiative to combat and prevent 
        childhood obesity by--
                (i) annually measuring the body mass index of public 
            school children in the State from kindergarten through 12th 
            grade; and
                (ii) providing that information to the parents of each 
            child with associated information about the health 
            implications of the body mass index of the child;
            (B) maintains, analyzes, and reports on annual and 
        longitudinal body mass index data for the public school 
        children in the State; and
            (C) develops and implements appropriate interventions at 
        the community and school level to address obesity, the risk of 
        obesity, and the condition of being overweight, including 
        efforts to encourage healthy eating habits and increased 
        physical activity.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the State of Arkansas, in partnership with the University 
    of Arkansas for Medical Sciences and the Arkansas Center for Health 
    Improvement, should be commended for its leadership in combating 
    childhood obesity; and
        (2) the efforts of the State of Arkansas to implement a 
    statewide initiative to combat and prevent childhood obesity are 
    exemplary and could serve as a model for States across the United 
    States.

                        TITLE V--IMPLEMENTATION

SEC. 501. GUIDANCE AND REGULATIONS.

    (a) Guidance.--As soon as practicable after the date of enactment 
of this Act, the Secretary of Agriculture shall issue guidance to 
implement the amendments made by sections 102, 103, 104, 105, 106, 107, 
111, 116, 119(c), 119(g), 120, 126(b), 126(c), 201, 203(a)(3), 203(b), 
203(c)(5), 203(e)(3), 203(e)(4), 203(e)(5), 203(e)(6), 203(e)(7), 
203(e)(10), and 203(h)(1).
    (b) Interim Final Regulations.--The Secretary may promulgate 
interim final regulations to implement the amendments described in 
subsection (a).
    (c) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall promulgate final regulations 
to implement the amendments described in subsection (a).

SEC. 502. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act take effect on the date of 
enactment of this Act.
    (b) Special Effective Dates.--
        (1) July 1, 2004.--The amendments made by sections 106, 107, 
    126(c), and 201 take effect on July 1, 2004.
        (2) October 1, 2004.--The amendments made by sections 119(c), 
    119(g), 202(a), 203(a), 203(b), 203(c)(1), 203(c)(5), 203(e)(5), 
    203(e)(8), 203(e)(10), 203(e)(13), 203(f), 203(h)(1), and 203(h)(2) 
    take effect on October 1, 2004.
        (3) January 1, 2005.--The amendments made by sections 116(f)(1) 
    and 116(f)(3) take effect on January 1, 2005.
        (4) July 1, 2005.--The amendments made by sections 102, 104, 
    105, 111, and 126(b) take effect on July 1, 2005.
        (5) October 1, 2005.--The amendments made by sections 116(d) 
    and 203(e)(9) take effect on October 1, 2005.
                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```