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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2507 Reported in Senate (RS)]

                                                       Calendar No. 580
108th CONGRESS
  2d Session
                                S. 2507

                          [Report No. 108-279]

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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2004

    Mr. Cochran, from the Committee on Agriculture, Nutrition, and 
 Forestry, reported the following original bill; which was read twice 
                       and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
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.  Exclusion of military housing allowances. 
Sec. 109.  Waiver of requirement for weighted averages for nutrient 
                            analysis. 
Sec. 110.  School food safety programs. 
Sec. 111.  Purchases of locally produced foods. 
Sec. 112.  Special assistance.
Sec. 113.  Food and nutrition projects integrated with elementary 
                            school curricula. 
Sec. 114.  Procurement training. 
Sec. 115.  Summer food service program for children.
Sec. 116.  Commodity distribution program. 
Sec. 117.  Child and adult care food program. 
Sec. 118.  Fresh fruit and vegetable program. 
Sec. 119.  Summer food service rural transportation demonstration. 
Sec. 120.  Summer food service residential camp demonstration. 
Sec. 121.  Healthy school nutrition environment demonstrations. 
Sec. 122.  Food service program personnel professional standards 
                            demonstration. 
Sec. 123.  School garden grant demonstration. 
Sec. 124.  Access to local foods.
Sec. 125.  Childhood obesity prevention demonstration.
Sec. 126.  Year round services for eligible entities.
Sec. 127.  Free lunch and breakfast expansion demonstration.
Sec. 128.  Training, technical assistance, and food service management 
                            institute.
Sec. 129.  Administrative error reduction. 
Sec. 130.  Compliance and accountability. 
Sec. 131.  Information clearinghouse. 
Sec. 132.  Program evaluation. 
Sec. 133.  Gleaning of fresh fruits and vegetables. 
          TITLE II--AMENDMENTS TO CHILD NUTRITION ACT OF 1966

Sec. 201.  Severe need assistance. 
Sec. 202.  State administrative expenses. 
Sec. 203.  World Food Prize.
Sec. 204.  Special supplemental nutrition program for women, infants, 
                            and children. 
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.  Food employment empowerment and development program. 
                        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 
        amounts 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 
        materials 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 
materials 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 
                materials 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 
                        district.--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 
                        district.
                    ``(C) Restrictions on sale of milk prohibited.--A 
                school or institution 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.--The Secretary shall ensure 
        that States and school food authorities administer school 
        nutrition programs under this Act and the Child Nutrition Act 
        of 1966 (42 U.S.C. 1771 et seq.) in a manner that reflects 
        consumption recommendations--
                    ``(A) specified in the Dietary Guidelines for 
                Americans; and
                    ``(B) at the option of the Secretary, based on 
                other recent scientifically valid information.''.

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 materials'' and 
                        inserting the following:
                            ``(ii) Income eligibility guidelines.--
                        Forms and descriptive materials distributed in 
                        accordance with clause (i)''; and
                            (iii) by adding at the end the following:
                            ``(iii) Contents of descriptive 
                        materials.--
                                    ``(I) In general.--Descriptive 
                                materials 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 school food authority 
                conducting eligibility determinations for a school 
                lunch program conducted under this Act and 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 school food authority.''.
    (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 
                school food authority 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 school food 
                authority 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 
                                program under this section;
                            ``(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 
                                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) shall ensure that any 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) 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 
                school food authority 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 school food authority.
                    ``(B) Routine change.--A routine change in the 
                policy of a school food authority (such as an annual 
                adjustment of the income eligibility guidelines for 
                free and reduced price meals) shall not be sufficient 
                cause for requiring the school food authority 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 
                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)) 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 
                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 school food authority may 
                        not request a separate application for each 
                        child in the household that attends schools 
                        under the same school food authority.
                    ``(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 school food 
                                authority after attempted verification 
                                under subparagraphs (F) and (G).
                            ``(ii) Verification of sample.--Each school 
                        year, a school food authority shall verify 
                        eligibility of the children in a sample of 
                        household applications approved for the school 
                        year by the school food authority, as 
                        determined by the Secretary in accordance with 
                        this subsection.
                            ``(iii) Sample size.--Except as otherwise 
                        provided in this paragraph, the sample for a 
                        school food authority for a school year shall 
                        equal the lesser of--
                                    ``(I) 3 percent of all applications 
                                approved by the school food authority 
                                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 school 
                                food authority 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 school food authority shall be 
                                the sample size described in subclause 
                                (II) or (III), as determined by the 
                                school food authority.
                                    ``(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 school food authority 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 school 
                                                food authority 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 school food 
                                                authority 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 school food authority for a 
                                school year if--
                                            ``(aa) the nonresponse rate 
                                        for the school food authority 
                                        for the preceding school year 
                                        is less than 20 percent; or
                                            ``(bb) the school food 
                                        authority has more than 20,000 
                                        children approved by 
                                        application by the school food 
                                        authority 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 school food 
                                                authority 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 school food authority for a school 
                        year under clauses (iii) and (iv)(III) 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) In general.--Prior to conducting any 
                        other verification activity for approved 
                        household applications selected for 
                        verification, the school food authority 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) Correct eligibility determination.--
                        If the review indicates that the initial 
                        eligibility determination is correct, the 
                        school food authority shall verify the approved 
                        household application.
                            ``(iii) Incorrect eligibility 
                        determination.--If the review indicates that 
                        the initial eligibility determination is 
                        incorrect, the school food authority 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 
                        school food authority 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 
                                        income 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 
                                        income 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 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 
                                        income 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 
                                        income 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 implementation 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 
                                school food authorities.
                            ``(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 school food authorities, the 
                        Secretary may require a State agency or school 
                        food authority 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 school food 
                        authority demonstrates (under criteria 
                        established by the Secretary) that the State 
                        agency or school food authority 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 school food authority 
                        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 school food authority 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 school food authority may 
                        contract (under standards established by the 
                        Secretary) with a third party to assist the 
                        school food authority in carrying out clause 
                        (iii).
                    ``(H) Verification deadline.--
                            ``(i) In general.--Not later than November 
                        15 of each school year, a school food authority 
                        shall complete the verification activities 
                        required for the school year (including 
                        followup activities).
                            ``(ii) Eligibility changes.--Based on the 
                        verification activities, the school food 
                        authority 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 school food 
                authority 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) 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 amended 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 
        school food authority 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 
        school food authority 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. 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. 109. 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, 2008''.

SEC. 110. SCHOOL FOOD SAFETY PROGRAMS.

    Section 9(h) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758) is amended--
            (1) in the subsection heading, by striking ``Inspections''; 
        and
            (2) by adding at the end the following:
            ``(3) 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 a hazard analysis and critical control point 
        system established by the Secretary.''.

SEC. 111. 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 ``2008''.

SEC. 112. 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. 113. 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. 114. PROCUREMENT TRAINING.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) (as amended by section 113) is amended by inserting after 
subsection (l) the following:
    ``(m) Procurement Training.--
            ``(1) In general.--Subject to the availability of 
        appropriations under paragraph (3), 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) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        each of fiscal years 2005 through 2008, to remain available 
        until expended.''.

SEC. 115. 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) Rural Area Eligibility Demonstration for Summer Food Service.--
Section 13 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1761) is amended by inserting after subsection (h) the 
following:
    ``(i) Rural Area Eligibility Demonstration for Summer Food 
Service.--
            ``(1) In general.--For each of calendar years 2005 and 
        2006, the Secretary shall carry out a demonstration in rural 
        areas of a State selected by the Secretary under which the 
        threshold for determining `areas in which poor economic 
        conditions exist' under subsection (a)(1)(C) for the 
        demonstration authorized by this section shall be 40 percent.
            ``(2) Evaluation.--
                    ``(A) In general.--The Secretary, acting through 
                the Administrator of the Food and Nutrition Service, 
                shall conduct an evaluation of the demonstration 
                carried out under this subsection to assess the impact 
                of the demonstration by comparing the areas operating 
                under the demonstration to comparable areas not 
                operating under the demonstration.
                    ``(B) Impact.--The evaluation shall assess the 
                impact of the demonstration 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.
                    ``(C) 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 of the demonstration under this subsection.
                    ``(D) 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 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.''.
    (d) 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, 2008''.
    (e) 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. 116. 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. 117. 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 Demonstration 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 Demonstration for Day Care Homes.--
            ``(1) Definition of demonstration tier i family or group 
        day care home.--In this subsection, the term `demonstration 
        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) Demonstration.--For each of fiscal years 2006 and 
        2007, the Secretary shall conduct a demonstration in rural 
        areas of a State selected by the Secretary under which 
        demonstration tier I family or group day care homes (as defined 
        in paragraph (1)) shall be provided reimbursement 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 conduct an evaluation of the demonstration 
                carried out under this subsection to assess the impact 
                of the demonstration by comparing the areas operating 
                under the demonstration to comparable areas not 
                operating under the demonstration.
                    ``(B) Impact.--The evaluation shall assess the 
                impact of the demonstration 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 the demonstration 
                        conducted under this subsection 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 of the demonstration 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).

SEC. 118. 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; and
                            ``(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.
                    ``(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. 119. SUMMER FOOD SERVICE RURAL TRANSPORTATION DEMONSTRATION.

    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 Rural Transportation Demonstration.--
            ``(1) In general.--The Secretary shall carry out a 
        demonstration under which grants are provided, 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 in the summer food service 
        program for children authorized by section 13 through 
        innovative approaches to limited transportation in rural areas.
            ``(2) Eligibility.--To be eligible to participate in the 
        demonstration under this subsection--
                    ``(A) a State agency shall--
                            ``(i) submit an application to the 
                        Secretary, in such manner as the Secretary 
                        shall establish, and meet criteria established 
                        by the Secretary;
                            ``(ii) provide such information relating to 
                        the operation and results of the demonstration 
                        as the Secretary may require;
                            ``(iii) provide technical assistance to 
                        participating service institutions; and
                            ``(iv) establish procedures that ensure 
                        that service institutions making purchases 
                        under this subsection meet any criteria 
                        established by the Secretary and secure State 
                        agency approval prior to a purchase; and
                    ``(B) a service institution shall--
                            ``(i) agree to the terms and conditions of 
                        the grant, as established by the Secretary;
                            ``(ii) provide such information relating to 
                        the operation and results of the demonstration 
                        as the Secretary may require; and
                            ``(iii) not have a history of violations of 
                        this Act or the Child Nutrition Act of 1966 (42 
                        U.S.C. 1771 et seq.), as determined by the 
                        Secretary.
            ``(3) Duration.--A service institution that receives a 
        grant to carry out a demonstration under this subsection shall 
        conduct the demonstration during a period of 3 successive 
        years, beginning in fiscal year 2005.
            ``(4) 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--
                    ``(A) not later than January 1, 2007, an interim 
                report that describes--
                            ``(i) the use of funds made available under 
                        this subsection; and
                            ``(ii) any progress made by each 
                        demonstration carried out under this 
                        subsection; and
                    ``(B) not later than January 1, 2009, a final 
                report that describes--
                            ``(i) the use of funds made available under 
                        this subsection;
                            ``(ii) any progress made by each 
                        demonstration carried out under this 
                        subsection;
                            ``(iii) the impact of the demonstrations on 
                        participation in the summer food service 
                        program for children authorized by section 13; 
                        and
                            ``(iv) any recommendations by the Secretary 
                        concerning the activities of the service 
institutions receiving grants under this subsection.
            ``(5) 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 section--
                            ``(i) on October 1, 2005, $2,000,000; and
                            ``(ii) on October 1, 2006, and October 1, 
                        2007, $1,000,000.
                    ``(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.
                    ``(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. 120. SUMMER FOOD SERVICE RESIDENTIAL CAMP DEMONSTRATION.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 119) is amended by adding at the 
end the following:
    ``(i) Summer Food Service Residential Camp Demonstration.--
            ``(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 
        carry out a demonstration, 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 to participate in the 
        demonstration, 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 the demonstration, 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 
                participating in the demonstration may receive 
                reimbursement for not more than 3 meals, or 2 meals and 
                1 supplement, during each day of operation.
            ``(4) Evaluation of demonstrations.--
                    ``(A) Information from residential camps.--Not 
                later than December 31, 2005, a residential camp 
                participating in the demonstration shall report to the 
                Secretary such information as is required by the 
                Secretary concerning participation in the 
                demonstration.
                    ``(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 results of the demonstration.''.

SEC. 121. HEALTHY SCHOOL NUTRITION ENVIRONMENT DEMONSTRATIONS.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 120) is amended by adding at the 
end the following:
    ``(j) Healthy School Nutrition Environment Demonstrations.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (6), the Secretary shall conduct demonstrations 
        in selected elementary and secondary schools--
                    ``(A) to create healthy school nutrition 
                environments; and
                    ``(B) to assess the impact of the environments on 
                the health and well-being of children enrolled in the 
                schools.
            ``(2) Selection of schools.--In selecting schools for 
        participation in demonstrations under this subsection, the 
        Secretary shall select schools in a manner that--
                    ``(A) provides for an equitable distribution of 
                demonstrations among--
                            ``(i) urban, suburban, and rural schools; 
                        and
                            ``(ii) schools with varying family income 
                        levels; and
                    ``(B) permits the evaluation of demonstrations 
                designed by the Secretary.
            ``(3) Assessment of nutritional environments and 
        achievement of certification criteria.--In carrying out this 
        subsection, for the first school year for which funds are made 
        available, the Secretary shall make a grant to each selected 
        school to assist the school in--
                    ``(A) conducting an assessment of the nutritional 
                environment of the school, in accordance with 
                procedures established by the Secretary; and
                    ``(B) meeting the certification criteria specified 
                in paragraph (4)(B).
            ``(4) Incentive grants for healthy school nutrition 
        environments.--
                    ``(A) In general.--In carrying out this subsection, 
                for each subsequent school year, the Secretary shall 
                make a grant to each selected school that meets the 
                certification criteria specified in subparagraph (B) to 
                assist the school in conducting--
                            ``(i) meal service activities under the 
                        nonprofit school food service program of the 
                        school; and
                            ``(ii) other activities that the Secretary 
                        determines are consistent with a healthy school 
                        nutrition environment.
                    ``(B) Certification criteria.--To be certified as a 
                school that meets healthy school nutrition environment 
                criteria under subparagraph (A), the school shall meet 
                criteria established by the Secretary, that include (at 
                a minimum)--
                            ``(i) providing program meals that meet the 
                        nutritional standards for breakfasts and 
                        lunches established by the Secretary;
                            ``(ii) offering healthy food choices 
                        outside program meals, such as offering healthy 
                        foods in vending machines, school stores, and 
                        other venues;
                            ``(iii) promoting the consumption of fruits 
                        and vegetables;
                            ``(iv) providing nutrition education to 
                        staff and to students in an understandable and 
                        uniform format and, to the extent practicable, 
                        in a language that students can understand; and
                            ``(v) meeting other criteria established by 
                        the Secretary.
            ``(5) Evaluations.--
                    ``(A) In general.--In carrying out this subsection, 
                the Secretary, acting through the Administrator of the 
                Food and Nutrition Service, shall conduct an evaluation 
                of schools that conduct demonstrations under this 
                subsection.
                    ``(B) Content.--The evaluation shall measure, at a 
                minimum, the effects of a healthy school nutrition 
                environment on--
                            ``(i) overweight children and obesity;
                            ``(ii) dietary intake;
                            ``(iii) nutrition education and behavior;
                            ``(iv) the adequacy of time to eat;
                            ``(v) physical activities;
                            ``(vi) parental and student attitudes and 
                        participation; and
                            ``(vii) related funding issues, including 
                        the cost of maintaining a healthy school 
                        nutrition environment.
                    ``(C) Reports.--In carrying out this subsection, 
                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 on the 
                activities of schools participating in demonstrations 
                under this subsection.
            ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection such sums as 
        are necessary, to remain available until expended.''.

SEC. 122. FOOD SERVICE PROGRAM PERSONNEL PROFESSIONAL STANDARDS 
              DEMONSTRATION.

    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:
    ``(k) Food Service Program Personnel Professional Standards 
Demonstration.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (5), the Secretary shall carry out a 
        demonstration--
                    ``(A) to assess issues pertaining to professional 
                certification of school food service program personnel; 
                and
                    ``(B) to provide States, school districts, and 
                schools with assistance in improving professional 
                standards, and obtaining appropriate program 
                certification, related to food service and dietary 
                management.
            ``(2) Assistance.--In carrying out the demonstration, the 
        Secretary shall--
                    ``(A) assist States in providing training and 
                professional development classes and programs for 
                district school food service administrators and other 
                senior food service program personnel who do not 
                possess an approved certificate or credential in 
                preparing for and obtaining an approved certificate or 
                credential; and
                    ``(B) provide assistance to schools, or individuals 
                described in subparagraph (A), to pay the costs of 
                attending classes and obtaining an approved certificate 
                or credential.
            ``(3) Assessment.--In carrying out the demonstration, the 
        Secretary shall assess--
                    ``(A) which certifications or credentials may be 
                considered appropriate professional standards for 
                senior administration personnel of a district school 
                food service program;
                    ``(B) the degree to which school food authorities 
                require the senior district food service program 
                personnel to have attained certification or credentials 
                from an approved or appropriate governing body, 
                including differences that may derive from district 
                size;
                    ``(C) the impact that employing a certified or 
                credentialed school food service administrator has on 
                program quality; and
                    ``(D) the costs to the school food authority of 
                including such a requirement in employing a district 
                school food service administrator.
            ``(4) Report.--On completion of the demonstration, 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 on 
        the results of the demonstration.
            ``(5) 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. 123. SCHOOL GARDEN GRANT DEMONSTRATION.

    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:
    ``(l) School Garden Grant Demonstration.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may make grants to State or local educational agencies and 
        nonprofit organizations to support school garden demonstrations 
        that allow children to learn about the importance of specialty 
        crops to a healthy diet.
            ``(2) Substantial urban centers.--The Secretary shall 
        initially target grants under this subsection to substantial 
        urban centers, as determined by the Secretary.
            ``(3) Consultation.--The Secretary shall develop and carry 
        out the grant demonstration in consultation with the State 
        department of agriculture and other appropriate institutions in 
        each State in which the grant demonstration is conducted.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $15,000,000, to 
remain available until expended.''.

SEC. 124. ACCESS TO LOCAL FOODS.

    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:
    ``(m) Access to Local Foods.--
            ``(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 that 
                may include the acquisition of food and appropriate 
                equipment and the provision of training and education;
                    ``(B) are, at a minimum, designed to procure local 
                foods from small- and medium-sized farms for school 
                meals;
                    ``(C) support nutrition education activities or 
                curriculum planning that incorporates the participation 
                of school children in farm and agricultural education 
                activities;
                    ``(D) develop a sustained commitment to farm-to-
                cafeteria projects in the community by linking schools, 
                agricultural producers, parents, and other community 
                stakeholders;
                    ``(E) require $100,000 or less in Federal 
                contributions;
                    ``(F) require a Federal share of costs of 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 
        2008.''.

SEC. 125. CHILDHOOD OBESITY PREVENTION DEMONSTRATION.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) (as amended by section 124) is amended by adding at the 
end the following:
    ``(n) Childhood Obesity Prevention Demonstration.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (6), for a period of 4 successive years, the 
        Secretary shall award to a national organization with expertise 
        in designing and implementing health education programs for 
        limited-English-proficient individuals a grant to carry out a 
        demonstration 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 in each of 4 
        States selected by the Secretary in accordance with paragraph 
        (2).
            ``(2) States.--The demonstration shall be carried out 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 
                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.--The grant recipient shall identify an 
        institution of higher education to conduct an independent 
        evaluation of the effectiveness of the demonstration.
            ``(5) Report.--The Secretary shall submit to the Committee 
        on Education and the Workforce of the House of Representatives, 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate, and the Health, Education, Labor, and Pensions 
        Committee 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 demonstration.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $250,000 for each of fiscal years 2005 through 2008.''.

SEC. 126. 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 125) is amended by adding at the 
end the following:
    ``(o) Year Round Services for Eligible Entities.--
            ``(1) In general.--A service institution (as defined in 
        paragraphs (6) or (7) of section 13(a)) located in California--
                    ``(A) may be reimbursed for up to 3 meals and 2 
                supplements for any day for which services are being 
                offered at the institution; and
                    ``(B) shall be reimbursed for costs consistent with 
                section 13(b)(1).
            ``(2) Exemptions.--A service institution that receives 
        assistance under this subsection shall comply with all 
        provisions of section 13 other than subsections (b)(2) and 
        (c)(1) of that section.
            ``(3) Funding.--From funds made available to carry out 
        section 13, the Secretary shall provide to the State of 
        California in fiscal year 2005 an amount not to exceed 
        $1,000,000, to remain available until expended, for the 
        additional reimbursement costs for meals and supplements 
        authorized by this subsection.''.

SEC. 127. FREE LUNCH AND BREAKFAST EXPANSION DEMONSTRATION.

    (a) Findings.--Congress finds that--
            (1) Federal child nutrition programs (including the school 
        lunch and breakfast programs) are important to the health and 
        education of children of the United States;
            (2) reduced price school meals are offered, in 
        participating schools, to children with family income between 
        130 percent of the poverty line and 185 percent of the poverty 
        line;
            (3) many families in the reduced price income category are 
        finding it difficult to pay the fee for reduced price school 
        meals and, for some families, the fee is a barrier to 
        participation;
            (4) the special supplemental nutrition program for women, 
        infants, and children (WIC) established by section 17 of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786) provides free 
        benefits to all participants with family income below 185 
        percent of poverty; and
            (5) over 500 State and local school boards have passed 
        resolutions urging Congress to eliminate the reduced price 
        school meal program and to harmonize the income standard of 
        eligibility for the school lunch and breakfast programs with 
        the WIC program.
    (b) Demonstration.--Section 18 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1769) (as amended by section 126) is 
amended by adding at the end the following:
    ``(p) Free Lunch and Breakfast Expansion Demonstration.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (4), the Secretary shall carry out a 
        demonstration under which expanded service of free lunches and 
        breakfasts is 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 the demonstration under this 
                subsection, the Secretary shall conduct an evaluation 
                of the demonstration to assess the impact of the 
                demonstration by comparing the school food authorities 
                operating under the demonstration to school food 
                authorities not operating under the demonstration.
                    ``(B) Impact assessment.--
                            ``(i) Children.--The evaluation shall 
                        assess the impact of the demonstration 
                        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 the demonstration on--
                                    ``(I) certification and 
                                participation rates in the school lunch 
                                and breakfast programs;
                                    ``(II) rates of lunch- and 
                                breakfast-skipping;
                                    ``(III) academic achievement; and
                                    ``(IV) 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 the 
                demonstration.
                    ``(D) Report.--On completion of the demonstration 
                and 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 of the 
                demonstration 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. 128. 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) technical assistance to improve the skills of 
                individuals employed in--
                            ``(i) food service programs carried out 
                        with assistance under this Act;
                            ``(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 ``2008''.
            (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 by striking 
        ``$147,000'' and all that follows through ``1999'' and 
        inserting ``$3,000,000 for fiscal year 2004 and $4,000,000 for 
        fiscal year 2005''.

SEC. 129. 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 Materials.--
In collaboration with State educational agencies, school food 
authorities, and local educational agencies of varying sizes, the 
Secretary shall develop and distribute training and technical 
assistance materials relating to the administration of school meal 
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, $5,000,000; and
                            ``(ii) on October 1, 2006, and October 1, 
                        2007, $3,000,000.
                    ``(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 materials 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 school food 
                authorities, to the extent determined by the 
                Secretary.''.
    (b) Selected Administrative Reviews.--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 school 
        food authorities.--
                    ``(A) Definition of selected school food 
                authority.--In this paragraph, the term `selected 
                school food authority' means a school food authority 
                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 
                school food authority 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 school food authority, 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 school food 
                authority fails to meet performance criteria 
                established by the Secretary, the State educational 
                agency shall--
                            ``(i) require the selected school food 
                        authority 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 school food authority in 
                        carrying out the corrective action plan; and
                            ``(iii) conduct a followup review of the 
                        selected school food authority under standards 
                        established by the Secretary.
            ``(4) Retaining funds after administrative reviews.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), if the school food authority 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 
                school food authority 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 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 
                                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 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 school food authorities 
                                and local educational agencies;
                                    ``(II) to assist State educational 
                                agencies in reviewing the 
                                administrative practices of school food 
                                authorities 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 school food authorities 
                and local educational agencies 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 school food authorities from which 
                        funds were retained under paragraph (4); and
                            ``(ii) obtain the approval of the Secretary 
                        for the plan.''.
    (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 schools and school food 
                        authorities 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) 
        of section 7 of this Act and section 22(b)(3) of the Richard B. 
        Russell National School Lunch Act (as added by section 125(b) 
        of the Child Nutrition and WIC Reauthorization Act of 2004).'';
            (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 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 school food 
        authority or local educational agency 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 school food authorities and 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. 130. 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 2008''.

SEC. 131. 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 by striking ``and 
$166,000 for each of fiscal years 1999 through 2003'' and inserting 
``$166,000 for each of fiscal years 1999 through 2004, and $250,000 for 
each of fiscal years 2005 through 2008''.

SEC. 132. 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 conducted 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.''.

SEC. 133. GLEANING OF FRESH FRUITS AND VEGETABLES.

    The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) (as amended by section 132) is amended by adding at the end the 
following:

``SEC. 29. GLEANING OF FRESH FRUITS AND VEGETABLES.

    ``(a) In General.--The Secretary shall make a grant to a 
nongovernmental organization described in subsection (b) to establish 
and maintain a field gleaning operation in a State to encourage the 
consumption of fresh fruits and vegetables.
    ``(b) Nongovernmental Organization.--The nongovernmental 
organization referred to in subsection (a) shall--
            ``(1) be selected by the Secretary; and
            ``(2) be a nonprofit organization that--
                    ``(A) is an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986 that is 
                exempt from tax under section 501(a) of that Code;
                    ``(B) is experienced in providing to needy 
                individuals fresh fruits and vegetables that would 
                otherwise go to waste;
                    ``(C) is experienced in establishing and 
                maintaining a field gleaning network that coordinates 
                the efforts of volunteers, growers, and distribution 
                agencies to salvage food for needy individuals in 
                multiple States; and
                    ``(D) agrees to provide to related organizations 
                information regarding field gleaning operations.
    ``(c) Funding.--
            ``(1) In general.--On October 1, 2004, and on each October 
        1 thereafter through October 1, 2007, 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 
section $100,000, of which not more than 25 percent of the amount made 
available from each transfer may be expended in the fiscal year 
following the fiscal year of the transfer.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.

          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 their 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 129(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 schools and school food 
                authorities on the use of technology and information 
                management systems for activities such as--
                            ``(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 
                appropriations to carry out this paragraph, the 
                Secretary shall, on a competitive basis, provide funds 
                to States to be used to provide grants to schools and 
                school food authorities 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 
        2008, 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 
129(c)(2)) is amended by striking ``2003'' and inserting ``2008''.

SEC. 203. WORLD FOOD PRIZE.

    Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is 
amended--
            (1) by striking the section heading and ``Sec. 15. For the 
        purposes of this Act--'' and inserting the following:

``SEC. 15. DEFINITIONS; MISCELLANEOUS PROVISIONS.

    ``(a) Definitions.--In this Act:''; and
            (2) by adding at the end the following:
    ``(b) World Food Prize.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary shall provide assistance for 
        activities of the World Food Prize Foundation, including--
                    ``(A) acquisition or improvement of property to 
                serve as headquarters for the World Food Prize 
                Foundation;
                    ``(B) support of research and outreach for 
                improving the quality, quantity, and availability of 
                food throughout the world; and
                    ``(C) promotion of educational opportunities 
                available to students through the World Food Prize 
                Youth Institute.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''.

SEC. 204. 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 
        materials 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 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, such as 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) 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,''.
            (3) 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 infants 
        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.
            (4) Notification of violations.--Section 17(f) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by 
        paragraph (3)) 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 2008.
                    ``(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 
                                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 
                        primary contract infant formula'' after 
                        ``lowest net price''; and
                            (iii) by adding the following at the end:
                            ``(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 amendment made by 
                subparagraph (A)(iii) applies 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 the following at 
        the end:
                            ``(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)) 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 2008, 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.--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.--The State agency of a State 
                shall--
                            ``(i) establish a vendor peer group system; 
                        and
                            ``(ii) in accordance with subparagraphs (B) 
                        and (C), establish competitive price criteria 
                        and allowable reimbursement levels for each 
                        vendor peer group.
                    ``(B) Competitive pricing.--
                            ``(i) In general.--The State agency shall 
                        establish competitive price criteria 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.--The State 
                        agency shall ensure that the competitive price 
                        criteria do not result in inadequate program 
                        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 otherwise make the store 
                        ineligible for participation 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 otherwise 
                                make the vendor ineligible for 
                                authorization.
                            ``(ii) Price fluctuations.--The allowable 
                        reimbursement levels may include a factor to 
                        reflect fluctuations in wholesale prices.
                            ``(iii) Participant access.--The State 
                        agency shall ensure that the allowable 
                        reimbursement levels do not result in 
                        inadequate program 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 under 
                                criteria established by the Secretary; 
                                and
                                    ``(II) that are nonprofit.
                    ``(E) Cost containment.--The State agency shall 
                demonstrate to the Secretary, and the Secretary shall 
                certify, that--
                            ``(i) the competitive price criteria and 
                        allowable reimbursement levels established 
                        under this paragraph for vendors described in 
                        subparagraph (D)(ii)(I) do not result in higher 
                        food costs than if program participants 
                        redeemed supplemental food vouchers at vendors 
                        other than vendors described in subparagraph 
                        (D)(ii)(I); and
                            ``(ii) vendor peer groups established under 
                        subparagraph (A)(i) distinguish between vendors 
                        described in subparagraph (D)(ii)(I) and other 
                        vendors.
                    ``(F) Implementation.--A State agency shall comply 
                with this paragraph not later than 18 months after the 
                date of enactment of this paragraph.''.
            (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 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 
                        2008.''.
    (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).
    (j) Demonstration Project Relating to Offering Fresh, Frozen, or 
Canned Fruits and Vegetables to WIC Participants.--Section 17 of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786) (as amended by subsection 
(i)) is amended by adding at the end the following:
    ``(r) Demonstration Project Relating to Offering Fresh, Frozen, or 
Canned Fruits and Vegetables to WIC Participants.--
            ``(1) In general.--Subject to the availability of 
        appropriations to carry out this subsection, the Secretary 
        shall award grants for demonstration projects involving not 
        more than 5 local agencies to not more than 5 State agencies to 
        evaluate the feasibility and acceptance of offering fresh, 
        frozen, or canned fruits and vegetables to participants in the 
        program established under this section.
            ``(2) Local sites.--In making grants under this subsection, 
        the Secretary shall ensure that State agencies select sites 
        determined to be geographically and culturally representative 
        of local and Indian agencies.
            ``(3) Additional food.--The provision of fruits and 
        vegetables to program participants under this subsection shall 
        be in addition to the food package offered to the participants 
        under other provisions of this section and not in lieu of any 
        food item in the food package.
            ``(4) Report.--Not later than 1 year after funds are first 
        made available to carry out this subsection, 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 describes 
        the results of carrying out this subsection.
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.
            ``(6) Termination of authority.--The authority provided by 
        this subsection (other than paragraph (4)) terminates September 
        30, 2005.''.

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 promote the nutritional health of school children 
        of the United States through nutrition education and the use of 
        team nutrition messages and materials developed by the 
        Secretary, and to encourage physical activity and other 
        activities that support healthy lifestyles for children, 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 nutrition education and active living programs in schools 
        and facilities that participate in child nutrition programs 
        through the use of team nutrition messages and materials 
        developed by the Secretary;
            ``(3) to provide training and technical assistance to 
        States, school and community nutrition programs, and child 
        nutrition food service professionals; and
            ``(4) to coordinate and collaborate with other nutrition 
        education and active living programs that share similar goals 
        and purposes.
    ``(b) Definition of Team Nutrition Network.--In this section, the 
term `team nutrition network' means a multidisciplinary program to 
promote healthy eating to children 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 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 materials developed by the Secretary; and
                    ``(B) the promotion of active lifestyles as part of 
                food service programs under this Act and the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.).
            ``(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 primary 
                healthy eating and physical activity messages of the 
                proposed team nutrition network;
                    ``(B) an analysis of the means by which the State 
                agency will use and disseminate the team nutrition 
                messages and materials developed by the Secretary;
                    ``(C) an explanation of the ways in which the State 
                agency will use the funds from the grant to promote 
                healthy eating and physical activity and fitness in 
                schools throughout the State;
                    ``(D) a description of the ways in which team 
                nutrition network messages and materials developed by 
                the Secretary will be used to coordinate nutrition and 
                physical activities at the State level with other 
                health promotion and education activities;
                    ``(E) an annual summary of the team nutrition 
                network activities;
                    ``(F) a description of the ways in which the total 
                school environment will support healthy eating and 
                physical activity; and
                    ``(G) 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 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 materials 
        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; and
            ``(7) to provide training and technical assistance to 
        teachers and school food service professionals consistent with 
        the purposes of this section.
    ``(h) 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. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity that meets the requirements of subsections (c) and (g).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (3) Vulnerable subpopulation.--
                    (A) In general.--The term ``vulnerable 
                subpopulation'' means low-income individuals, 
                unemployed individuals, and other subpopulations 
                identified by the Secretary as being likely to 
                experience special risks from hunger or a special need 
                for job training.
                    (B) Inclusions.--The term ``vulnerable 
                subpopulation'' includes--
                            (i) addicts (as defined in section 102 of 
                        the Controlled Substances Act (21 U.S.C. 802));
                            (ii) at-risk youths (as defined in section 
                        1432 of the Elementary and Secondary Education 
                        Act of 1965 (20 U.S.C. 6472));
                            (iii) individuals that are basic skills 
                        deficient (as defined in section 101 of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2801));
                            (iv) homeless individuals (as defined in 
                        section 17(b) of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1786(b));
                            (v) homeless youths (as defined in section 
                        387 of the Runaway and Homeless Youth Act (42 
                        U.S.C. 5732a));
                            (vi) individuals with disabilities (as 
                        defined in section 3 of the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 12102));
                            (vii) low-income individuals (as defined in 
                        section 101 of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2801)); and
                            (viii) older individuals (as defined in 
                        section 102 of the Older Americans Act of 1965 
                        (42 U.S.C. 3002)).
    (b) Program.--The Secretary shall establish a food employment 
empowerment and development program under which the Secretary shall 
make grants to eligible entities to encourage the effective use of 
community resources to combat hunger and the root causes of hunger by 
creating opportunity through food recovery, job training, and community 
service.
    (c) Eligible Entities.--Subject to subsection (g), to be eligible 
to receive a grant under this section, an entity shall be a public 
agency, or private nonprofit institution, that conducts 2 or more of 
the following activities as an integral part of the normal operation of 
the entity:
            (1) Recovery of donated food from area restaurants, 
        caterers, hotels, cafeterias, or other food service businesses 
        for the purpose of converting rescued food and other donated 
        and purchased foods into balanced meals for vulnerable 
        subpopulations.
            (2) Distribution of meals to--
                    (A) nonprofit organizations described in section 
                501(c)(3) of the Internal Revenue Code of 1986;
                    (B) entities that feed vulnerable subpopulations; 
                and
                    (C) other agencies considered appropriate by the 
                Secretary.
            (3) Training of unemployed and underemployed adults for 
        careers in the food service industry.
            (4) Engaging people through community service and 
        leadership training in developing resource-conscious community 
        solutions.
            (5) Carrying out of a welfare-to-work job training program 
        in combination with--
                    (A) production of school meals, such as school 
                meals served under 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.); or
                    (B) support for after-school programs, such as 
                programs conducted by community learning centers (as 
                defined in section 4201(b) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7171(b))).
    (d) Uses.--An eligible entity may use a grant awarded under this 
section for--
            (1) capital investments related to the operation of the 
        eligible entity;
            (2) support services for clients (including staff) of the 
        eligible entity and individuals enrolled in job training 
        programs;
            (3) purchase of equipment and supplies related to the 
        operation of the eligible entity or that improve or directly 
        affect service delivery;
            (4) building and kitchen renovations that improve or 
        directly affect service delivery;
            (5) educational material and services;
            (6) administrative costs, in accordance with guidelines 
        established by the Secretary; and
            (7) additional activities determined appropriate by the 
        Secretary.
    (e) Preferences.--In awarding grants under this section, the 
Secretary shall give preference to eligible entities that perform any 
of the following activities:
            (1) Carrying out food recovery programs that are integrated 
        with--
                    (A) culinary worker training programs, such as 
                programs conducted by a food service management 
                institute under section 21 of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1769b-1);
                    (B) school education programs; or
                    (C) programs of service-learning (as defined in 
                section 101 of the National and Community Service Act 
                of 1990 (42 U.S.C. 12511)).
            (2) Carrying out programs that engage in outreach and make 
        use of local community services efforts.
            (3) Providing meals to individuals in need.
            (4) Providing job skills training, life skills training, 
        and case management support to hard-to-serve populations, 
        including--
                    (A) homeless individuals;
                    (B) individuals recovering from substance abuse;
                    (C) individuals with a history of incarceration or 
                probation;
                    (D) at-risk youth;
                    (E) mothers leaving welfare; and
                    (F) adults without a secondary school diploma or 
                its recognized equivalent.
            (5) Maximizing the use of existing school, community, or 
        private food service facilities and resources.
            (6) Providing community service leadership training for 
        students at institutions of higher education and other schools.
    (f) Eligibility for Job Training.--To be eligible to receive job 
training assistance from an eligible entity using a grant made 
available under this section, an individual shall be--
            (1) a low-income individual; and
            (2) an individual who is a member of a vulnerable 
        subpopulation, other than an at-risk youth or a homeless youth.
    (g) Eligibility for Meals.-- In addition to the requirements of 
subsection (c), to be eligible to serve meals using a grant made 
available under this section, an eligible entity shall--
            (1) provide vulnerable subpopulations with meals and 
        complementary basic support services (such as case management, 
        education, housing, or similar services, as determined 
        necessary by the Secretary);
            (2) demonstrate to the Secretary that the use of the grant 
        to serve meals increases the capacity of the eligible entity to 
        provide services to clients of the eligible entity; and
            (3) comply with food handling and community service 
        requirements of a community kitchen.
    (h) Performance Indicators.--The Secretary shall establish, for 
each year of the program, performance indicators, and expected levels 
of performance, for meals, job training, and community service for 
eligible entities to continue to receive and use grants under this 
section.
    (i) Technical Assistance.--
            (1) In general.--The Secretary shall provide technical 
        assistance to eligible entities that receive grants under this 
        section to assist the eligible entities in carrying out 
        programs under this section using the grants.
            (2) Form.--Technical assistance for a program provided 
        under this subsection includes--
                    (A) maintenance of a website, newsletters, email 
                communications, and other tools to promote shared 
                communications, expertise, and best practices;
                    (B) hosting of an annual meeting or other forums to 
                provide education and outreach to all programs 
                participants;
                    (C) collection of data for each program to ensure 
                that the performance indicators and purposes of the 
                program are met or exceeded;
                    (D) intervention (if necessary) to assist an 
                eligible entity to carry out the program in a manner 
                that meets or exceeds the performance indicators and 
                purposes of the program;
                    (E) consultation and assistance to an eligible 
                entity to assist the eligible entity in providing the 
                best services practicable to the community served by 
                the eligible entity, including consultation and 
                assistance related to--
                            (i) strategic plans;
                            (ii) board development;
                            (iii) fund development;
                            (iv) mission development; and
                            (v) other activities considered appropriate 
                        by the Secretary;
                    (F) assistance considered appropriate by the 
                Secretary regarding--
                            (i) the status of program participants;
                            (ii) the demographic characteristics of 
                        program participants that affect program 
                        services;
                            (iii) any new idea that could be integrated 
                        into the program; and
                            (iv) the review of grant proposals; and
                    (G) any other forms of technical assistance the 
                Secretary considers appropriate.
    (j) Relationship to Other Law.--An action taken by an eligible 
entity using a grant provided under this section shall be covered by 
the Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. 1791).
    (k) Maximum Amount of Grant.--The amount of grants provided to an 
eligible entity for a fiscal year under this section shall not exceed 
$200,000.
    (l) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $20,000,000 for each of fiscal years 
        2005 through 2008.
            (2) Technical assistance.--Of the amount of funds that are 
        made available for a fiscal year under paragraph (1), the 
        Secretary shall use to provide technical assistance under 
        subsection (i) not more than the greater of--
                    (A) 5 percent of the amount of funds that are made 
                available for the fiscal year under paragraph (1); or
                    (B) $1,000,000.

                        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, 
110, 115, 117(c), 117(g), 118, 129(b), 129(c), 201, 204(a)(3), 204(b), 
204(c)(4), 204(e)(3), 204(e)(4), 204(e)(5), 204(e)(6), 204(e)(7), 
204(e)(10), and 204(h)(1).
    (b) 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 provided in subsection (b), 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, 129(c), and 201 take effect on July 1, 2004.
            (2) October 1, 2004.--The amendments made by sections 
        117(c), 117(g), 202(a), 204(a), 204(b), 204(c)(1), 204(c)(4), 
        204(e)(4), 204(e)(5), 204(e)(6), 204(e)(7), 204(e)(8), 
        204(e)(9), 204(e)(10), 204(e)(13), 204(f), 204(h)(1), and 
        204(h)(2) take effect on October 1, 2004.
            (3) January 1, 2005.--The amendments made by sections 
        115(e)(1) and 115(e)(3) take effect on January 1, 2005.
            (4) July 1, 2005.--The amendments made by sections 104, 
        105, 110, and 129(b) take effect on July 1, 2005.

                                                       Calendar No. 580

108th CONGRESS

  2d Session

                                S. 2507

                          [Report No. 108-279]

_______________________________________________________________________

                                 A BILL

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.

_______________________________________________________________________

                              June 7, 2004

                 Read twice and placed on the calendar
```