HR 3874 PCS
academic achievement, tardiness and at-
tendance, and dietary intake of participat-
ing children that is not attributable to
changes in educational policies and prac-
tices; and
‘‘(ii) a determination of the effect that
participation by elementary schools in the
pilot projects has on the proportion of stu-
dents who eat breakfast.
‘‘(B) REPORT.—Upon completion of the
pilot projects and the evaluation, the Secretary
shall submit to the Committee on Education
and the Workforce of the House of Representa-
tives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report con-
taining the evaluation of the pilot required
under subparagraph (A).
‘‘(8) REIMBURSEMENT
REQUIREMENT
UNDER
BREAKFAST PROGRAM.—(A) Except as provided in
subparagraph (B), a school participating in a pilot
project under this subsection shall receive a total
Federal reimbursement under the school breakfast
program in an amount equal to the total Federal re-
imbursement for the school in the prior year under
HR 3874 PCS
such program (adjusted for inflation and fluctua-
tions in enrollment).
‘‘(B) Funds required for the pilot project in ex-
cess of the level of reimbursement received by the
school in the prior year (adjusted for inflation and
fluctuations in enrollment) may be taken from any
non-Federal source or from amounts appropriated to
carry out this subsection. If no appropriations are
made for the pilot projects, schools may not conduct
the pilot projects.
‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated such sums as may be nec-
essary to carry out this subsection.
‘‘(B) REQUIREMENT.—No amounts may
be provided under this subsection unless specifi-
cally provided in appropriations Acts.’’.
SEC. 110. TRAINING AND TECHNICAL ASSISTANCE.
Section 21(e)(1) of the National School Lunch Act
(42 U.S.C. 1769b–1(e)(1)) is amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
SEC. 111. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the National School Lunch Act (42
U.S.C. 1769c(d)) is amended by striking ‘‘1996’’ and in-
serting ‘‘2003’’.
HR 3874 PCS
SEC. 112. INFORMATION CLEARINGHOUSE.
(a) AUTHORITY
TO
ESTABLISH
AND
MAINTAIN
CLEARINGHOUSE.—Section 26(a) of the National School
Lunch Act (42 U.S.C. 1769g(a)) is amended by striking
‘‘shall’’ and inserting ‘‘may’’.
(b) NONGOVERNMENTAL
ORGANIZATION.—Section
26(b) of such Act (42 U.S.C. 1769g(b)) is amended in
the matter preceding paragraph (1) by inserting after
‘‘shall be selected on a competitive basis’’ the following:
‘‘, except that, notwithstanding any other provision of law,
the Secretary may enter into a contract for the services
of any organization with which the Secretary has pre-
viously entered into a contract under this section without
such organization competing for such new contract, if such
organization has performed satisfactorily under such prior
contract and otherwise meets the criteria established in
this subsection,’’.
(c) LIMITATION ON AMOUNT PROVIDED UNDER THE
CONTRACT.—Section 26 of such Act (42 U.S.C. 1769g)
is amended—
(1) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(2) by inserting after subsection (b) the follow-
ing:
‘‘(c) LIMITATION
ON AMOUNT PROVIDED UNDER
THE CONTRACT.—The Secretary may provide to the orga-
HR 3874 PCS
nization described in subsection (b) an amount not to ex-
ceed $150,000 in each of fiscal years 1999 through
2003.’’.
(d) FUNDING.—Section 26(e) of such Act (42 U.S.C.
1769g(e)) (as so redesignated) is amended to read as fol-
lows:
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated $150,000 for each of the fiscal years
1999 through 2003 to carry out this section.
‘‘(2) REQUIREMENT.—No amounts may be pro-
vided for the clearinghouse under this section unless
specifically provided in appropriations Acts.’’.
SEC. 113. ACCOMMODATION OF THE SPECIAL DIETARY
NEEDS OF INDIVIDUALS WITH DISABILITIES.
Section 27 of the National School Lunch Act (42
U.S.C. 1769h) is amended to read as follows:
‘‘SEC. 27. ACCOMMODATION OF THE SPECIAL DIETARY
NEEDS OF INDIVIDUALS WITH DISABILITIES.
‘‘(a) IN GENERAL.—The Secretary may carry out ac-
tivities to help accommodate the special dietary needs of
individuals with disabilities who are participating in a cov-
ered program. Such activities may include—
‘‘(1) developing and disseminating to State
agencies guidance and technical assistance materials;
HR 3874 PCS
‘‘(2) conducting training of State agencies and
eligible entities; and
‘‘(3) providing grants to State agencies and eli-
gible entities.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) INDIVIDUALS
WITH
DISABILITIES.—The
term ‘individuals with disabilities’ has the meaning
given the term ‘individual with a disability’ as de-
fined in section 7(8) of the Rehabilitation Act of
1973 (29 U.S.C. 706(8)).
‘‘(2) COVERED PROGRAM.—The term ‘covered
program’ means—
‘‘(A) the school lunch program authorized
under this Act;
‘‘(B) the school breakfast program author-
ized under section 4 of the Child Nutrition Act
of 1966 (42 U.S.C. 1773); and
‘‘(C) any other program authorized under
this Act or the Child Nutrition Act of 1966 (ex-
cept for section 17) that the Secretary deter-
mines is appropriate.
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a school food authority, institution, or
service institution that participates in a covered pro-
gram.
HR 3874 PCS
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary for each of the fiscal years 1999 through 2003
to carry out this section.’’.
TITLE II—AMENDMENTS TO THE
CHILD NUTRITION ACT OF 1966
SEC. 201. STATE ADMINISTRATIVE EXPENSES.
(a) 
REALLOCATION
OF
AMOUNTS.—Section
7(a)(5)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)(5)(B)) is amended—
(1) by striking ‘‘(i)’’;
(2) by striking the second sentence and all that
follows; and
(3) by adding at the end the following: ‘‘The
Secretary shall then allocate, for purposes of admin-
istration costs, any remaining amounts among
States that demonstrate a need for such amounts.’’.
(b) ELIMINATION OF 10 PERCENT TRANSFER LIMI-
TATION.—Section 7(a)(6) of such Act (42 U.S.C.
1776(a)(6)) is amended to read as follows:
‘‘(6) Funds available to States under this subsection
and under section 13(k)(1) of the National School Lunch
Act may be used by State agencies for the costs of admin-
istration of the programs authorized under this Act (ex-
cept for the programs authorized under sections 17 and
HR 3874 PCS
21) and the National School Lunch Act without regard
to the basis on which such funds were earned and allo-
cated.’’.
(c) REAUTHORIZATION OF PROGRAM.—Section 7(g)
of such Act (42 U.S.C. 1776(g)) is amended by striking
‘‘1998’’ and inserting ‘‘2003’’.
SEC. 202. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS, AND CHILDREN.
(a) 
ADDITIONAL
REQUIREMENTS
FOR
APPLI-
CANTS.—
(1) PHYSICAL PRESENCE REQUIREMENT.—Sec-
tion 17(d)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(3)) is amended by adding at the end
the following:
‘‘(C)(i) Except as provided in clause (ii), each appli-
cant to the program shall be physically present at each
certification determination in order to determine eligibility
under the program.
‘‘(ii) A local agency may waive the requirement of
clause (i)—
‘‘(I) if required to do so by requirements under
the Americans with Disabilities Act;
‘‘(II) with respect to a child who was present at
the initial certification visit and who is receiving on-
going health care from a provider other than such
HR 3874 PCS
local agency, if the agency determines that the re-
quirement of clause (i) would present a barrier to
participation; or
‘‘(III) with respect to a child (aa) who was
present at the initial certification visit, (bb) who was
present at a certification determination within the 1-
year period ending on the date of the certification
determination described in clause (i), and (cc) who
has one or more parents who work, if the agency de-
termines that the requirement of clause (i) would
cause a barrier to participation.’’.
(2) INCOME DOCUMENTATION REQUIREMENT.—
Section 17(d)(3) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(d)(3)), as amended by paragraph
(1), is further amended by adding at the end the fol-
lowing:
‘‘(D)(i) Except as provided in clause (ii), in order to
be eligible for the program, each applicant to the program
shall provide—
‘‘(I) documentation of household income; or
‘‘(II) documentation of participation in a pro-
gram described in clauses (ii) and (iii) of paragraph
(2)(A).
‘‘(ii)(I) A State agency may waive the requirement
of clause (i)—
HR 3874 PCS
‘‘(aa) with respect to an applicant for whom the
necessary documentation is not available; or
‘‘(bb) with respect to an applicant, such as
homeless women or children, for whom the agency
determines the requirement of clause (i) would
present a barrier to participation.
‘‘(II) The Secretary shall prescribe regulations to
carry out division (aa).’’.
(b) EDUCATION AND EDUCATIONAL MATERIALS RE-
LATING TO EFFECTS OF DRUG AND ALCOHOL USE.—Sec-
tion 17(e)(1) of such Act (42 U.S.C. 1786(e)(1)) is
amended by adding at the end the following: ‘‘A local
agency participating in the program shall provide edu-
cation or educational materials relating to the effects of
drug and alcohol use by a pregnant, postpartum, or
breastfeeding woman on the developing child of the
woman.’’.
(c) DISTRIBUTION OF NUTRITION EDUCATION MA-
TERIALS TO STATE AGENCIES ADMINISTERING THE COM-
MODITY SUPPLEMENTAL FOOD PROGRAM.—Section 17(e)
of such Act (42 U.S.C. 1786(e)) is amended—
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(2) by inserting after paragraph (3) the follow-
ing:
HR 3874 PCS
‘‘(4) The Secretary may provide nutrition education
materials, including breastfeeding promotion materials,
developed with funds appropriated to carry out the pro-
gram under this section in bulk quantity to State agencies
administering the commodity supplemental food program
authorized under sections 4(a) and 5 of the Agriculture
and Consumer Protection Act of 1973 at no cost to that
program.’’.
(d) IDENTIFICATION OF RECIPIENTS PARTICIPATING
AT MORE THAN One SITE.—Section 17(f) of such Act (42
U.S.C. 1786(f)) is amended by adding at the end the fol-
lowing:
‘‘(23) Each State agency shall implement a system
designed to identify recipients who are participating at
more than one site under the program.’’.
(e) IDENTIFICATION OF HIGH RISK VENDORS; COM-
PLIANCE INVESTIGATIONS.—
(1) IN GENERAL.—Section 17(f) of such Act
(42 U.S.C. 1786(f)), as amended by this Act, is fur-
ther amended by adding at the end the following:
‘‘(24) Each State agency—
‘‘(A) shall identify vendors that have a high
probability of program abuse; and
‘‘(B) shall conduct compliance investigations of
such vendors.’’.
HR 3874 PCS
(2) REGULATIONS.—Not later than March 1,
1999, the Secretary of Agriculture shall promulgate
final regulations to carry out section 17(f)(24) of
such Act (42 U.S.C. 1786(f)(24)), as added by para-
graph (1).
(f) 
REAUTHORIZATION
OF
PROGRAM.—Section
17(g)(1) of such Act (42 U.S.C. 1786(g)(1)) is amended
in the first sentence by striking ‘‘1995 through 1998’’ and
inserting ‘‘1999 through 2003’’.
(g) 
PURCHASE
OF
BREAST
PUMPS.—Section
17(h)(1)(C) of such Act (42 U.S.C. 1786(h)(1)(C)) is
amended—
(1) by striking ‘‘(C)’’ and inserting ‘‘(C)(i)’’;
and
(2) by adding at the end the following:
‘‘(ii)(I) Notwithstanding any other provision of this
section, with respect to fiscal year 2000 and subsequent
fiscal years, a State agency may use amounts made avail-
able under clause (i) for the purchase of breast pumps.
‘‘(II) A State agency that exercises the authority of
subclause (I) shall expend from amounts allocated for nu-
trition services and administration an amount for the pur-
chase of breast pumps that is not less than the amount
expended for the purchase of breast pumps from amounts
HR 3874 PCS
available for nutrition services and administration for the
prior fiscal year.’’.
(h) NUTRITION SERVICES AND ADMINISTRATION.—
(1) 
ALLOCATION
OF
AMOUNTS.—Section
17(h)(2)(A) of such Act (42 U.S.C. 1786(h)(2)(A))
is amended in the first sentence by striking ‘‘1995
through 1998’’ and inserting ‘‘1999 through 2003’’.
(2) LEVEL
OF
PER
PARTICIPANT
EXPENDI-
TURE.—Section 17(h)(2)(B)(ii) of such Act (42
U.S.C. 1786(h)(2)(B)(ii)) is amended by striking
‘‘15 percent’’ and inserting ‘‘10 percent (except that
the Secretary may establish a higher percentage for
small State agencies)’’.
(i) CONVERSION OF AMOUNTS FOR FOOD BENEFITS
TO AMOUNTS FOR NUTRITION SERVICES AND ADMINIS-
TRATION.—Section 17(h)(5)(A) of such Act (42 U.S.C.
1786(h)(5)(A)) is amended in the matter preceding clause
(i) by striking ‘‘achieves’’ and all that follows through
‘‘such State agency may’’ and inserting ‘‘submits a plan
to reduce average food costs per participant and to in-
crease participation above the level estimated for such
State agency, such State agency may, with the approval
of the Secretary,’’.
HR 3874 PCS
‘‘(A) IN GENERAL.— A State agency may
permit a vendor that would otherwise be dis-
qualified under paragraph (1) to continue to re-
deem food instruments or otherwise provide
supplemental foods to participants if the State
agency determines, in its sole discretion accord-
ing to criteria established by the Secretary, dis-
qualification of the vendor would cause hard-
ship to participants in the program authorized
under this section.
‘‘(B) CIVIL MONEY PENALTY.—Whenever a
State agency authorizes a vendor that would
otherwise be disqualified to redeem food instru-
ments or provide supplemental foods in accord-
ance with subparagraph (A), the State agency
shall assess the vendor a civil money penalty in
lieu of a disqualification.
‘‘(C) AMOUNT.— The State agency shall
determine the amount of the civil penalty ac-
cording to criteria established by the Sec-
retary.’’.
(2) REGULATIONS.—
(A) IN GENERAL.—Not later than March
1, 1999, the Secretary of Agriculture shall pro-
mulgate final regulations to carry out section