fiscal year under subparagraph (A) shall be re-
turned to the Secretary. The Secretary shall
then allocate, for purposes of administration
costs, any remaining amounts among States
that demonstrate a need for such amounts.’’.
(b) ELIMINATION OF THE 10 PERCENT TRANSFER
LIMITATION.—Section 7(a)(6) of the Child Nutrition Act
of 1966 (42 U.S.C. 1776(a)(6)) is amended to read as
follows:
‘‘(6) USE OF ADMINISTRATIVE FUNDS.—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 ad-
ministration of the programs authorized under the
National School Lunch Act and this Act (except for
the programs authorized under sections 17 and 21)
without regard to the basis on which these funds
were earned and allocated.’’.
(c) REAUTHORIZATION OF PROGRAM.—Section 7(g)
of the Child Nutrition Act of 1966 (42 U.S.C. 1776(g))
is amended by striking ‘‘1998’’ and inserting ‘‘2002’’.
SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS AND CHILDREN.
(a) ADDITIONAL PROGRAM APPLICATION REQUIRE-
MENTS.—Section 17(d)(3) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the
end the following:
‘‘(C) PHYSICAL PRESENCE.—All applicants
shall be physically present at each certification
visit in order to receive program benefits.
‘‘(D) INCOME
DOCUMENTATION.—All ap-
plicants shall provide documentation of house-
hold income or of participation in a program
referenced in clauses (ii) and (iii) of paragraph
(2)(A) at certification in order to be determined
income eligible for the program.
‘‘(E) VERIFICATION.—The Secretary shall
promulgate regulations under this subsection
governing when and how verification of income
shall be required.’’.
(b) DISTRIBUTION OF NUTRITION EDUCATION MA-
TERIALS.—Section 17(e)(3) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(e)(3)) is amended—
(1) by inserting ‘‘NUTRITION EDUCATION MA-
TERIALS.—’’ after ‘‘(3)’’;
(2) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(A) IN GENERAL.—The Secretary’’; and
(3) by adding at the end the following:
‘‘(B) SHARING MATERIALS WITH CSFP.—
The Secretary may provide nutrition education
materials, including breastfeeding promotion,
developed with funds appropriated for 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 Con-
sumer Protection Act of 1973 at no cost to that
program.’’.
(c) 
REAUTHORIZATION
OF
PROGRAM.—Section
17(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(g)(1)) is amended by striking ‘‘1995 through 1998’’
and inserting ‘‘1999 through 2002’’.
(d) 
EXTENSION
OF
AUTHORIZATION.—Section
17(h)(2)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(2)(A)) is amended by striking ‘‘1995 through
1998’’ and inserting ‘‘1999 through 2002’’.
(e) INFANT
FORMULA
PROCUREMENT.—Section
17(h)(8)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(8)(A)) is amended by adding at the end the fol-
lowing:
‘‘(iii) COMPETITIVE
BIDDING
SYS-
TEM.—A State agency using a competitive
bidding system for infant formula shall
award contracts to the bidder offering the
lowest net price unless the State agency
demonstrates to the satisfaction of the Sec-
retary that the weighted average retail
price for different brands of infant formula
in the State does not vary by more than
five percent.’’.
(f) INFRASTRUCTURE
AND BREASTFEEDING PRO-
MOTION/SUPPORT FUNDS.—Section 17(h)(10)(A) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(10)(A))
is amended by striking ‘‘For each of fiscal years 1995
through 1998,’’ and inserting ‘‘For each fiscal year
through 2002,’’.
(g) SPEND-FORWARD AUTHORITY.—Section 17(i)(3)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3))
is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘and’’ at the end of clause
(i);
(B) in clause (ii)—
(i) by inserting ‘‘nutrition services and
administration’’ after ‘‘amount of’’; and
(ii) by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(iii) with prior approval of the Sec-
retary, not more than 4 percent of the
amount of nutrition services and adminis-
tration funds allocated to a State agency
for a fiscal year under this section may be
expended by the State agency during the
subsequent fiscal year for the develop-
mental costs of electronic benefit trans-
fer.’’;
(2) in subparagraph (B), by striking ‘‘subpara-
graph (A)(ii)’’ and inserting ‘‘clauses (ii) and (iii) of
subparagraph (A)’’;
(3) by striking subparagraphs (D) through (G);
and
(4) by redesignating subparagraph (H) as sub-
paragraph (D).
(h) MATCHING
FUNDS
REQUIREMENT.—Section
17(m)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(m)(3)) is amended by striking ‘‘total’’ and inserting
‘‘administrative’’ in both places it appears.
(i) RANKING CRITERIA FOR FARMERS MARKET NU-
TRITION PROGRAM STATE PLANS.—Section 17(m)(6) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6))
is amended—
(1) by striking subparagraph (F); and
(2) by redesignating subparagraph (G) as sub-
paragraph (F).
(j) EXTENSION OF FARMERS MARKET NUTRITION
PROGRAM AUTHORIZATION.—Section 17(m)(9)(A) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A))
is amended by striking ‘‘1996 through 1998’’ and insert-
ing ‘‘1999 through 2002’’.
(k) DISQUALIFICATION OF CERTAIN VENDORS.—
(1) IN GENERAL.—Section 17 of the Child Nu-
trition Act of 1996 (42 U.S.C. 1786) is amended by
adding at the end the following new subsection:
‘‘(o) DISQUALIFICATION OF VENDORS CONVICTED OF
TRAFFICKING OR ILLEGAL SALES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (5), the State agency shall permanently dis-
qualify a vendor convicted of trafficking in food in-
struments (including any voucher, draft, check, or
access device, including an electronic benefit transfer
card or personal identification number, issued in lieu
of a food instrument pursuant to the provisions of
this section), or selling firearms, ammunition, explo-
sives, or controlled substances (as defined in section
102 of the Controlled Substances Act) in exchange
for food instruments.
‘‘(2) 
NOTICE
OF
DISQUALIFICATION.—The
State agency shall provide the vendor with notifica-
tion of the disqualification and shall make such dis-
qualification effective on the date of receipt of the
notice of disqualification.
‘‘(3) PROHIBITION ON RECEIPT OF LOST REVE-
NUES.—A vendor shall not be entitled to receive any
compensation for revenues lost as a result of the dis-
qualification under this subsection.
‘‘(4) HARDSHIP EXCEPTION IN LIEU OF DIS-
QUALIFICATION.—
‘‘(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.—The provisions of this sub-
section shall not take effect until the Secretary
issues final regulations that include the criteria for
determining the amount of civil money penalties in
lieu of disqualification and for making hardship de-
terminations.
SEC. 204. EXTENSION OF NUTRITION EDUCATION AND
TRAINING PROGRAM.
Section 19(i) of the Child Nutrition Act of 1966 (42
U.S.C. 1788(i)) is amended—
(1) by striking paragraphs (1) and (2);
(2) by redesignating paragraphs (3), (4), and
(5) as paragraphs (1), (2), and (3), respectively; and
(3) in paragraph (1) (as redesignated by para-
graph (2))—
(A) in the paragraph heading, by striking
‘‘1997’’ and inserting ‘‘1999’’; and
(B) by amending subparagraph (A) to read
as follows:
‘‘(A) IN GENERAL.—There are authorized
to be appropriated such sums as are necessary
to carry out this section for fiscal years 1999
through 2002.’’.
TITLE 
III—AMENDMENTS 
TO
THE COMMODITY DISTRIBU-
TION REFORM ACT AND WIC
AMENDMENTS OF 1987
SEC. 301. CUSTOMER ACCEPTABILITY INFORMATION.
Section 3 of the Commodity Distribution Reform Act
and WIC Amendments of 1987 (7 U.S.C. 612c note) is
amended—
(1) by amending subsection (a)(2) to read as
follows:
‘‘(2) APPLICABILITY.—Paragraph (1) shall
apply to recipient agencies for the following pro-
grams:
‘‘(A) The Commodity Supplemental Food
Program authorized under sections 4(a) and 5
of the Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note).
‘‘(B) The Food Distribution Program on
Indian Reservations authorized under section
4(b) of the Food Stamp Act of 1977 (7 U.S.C.
2013(b)).
‘‘(C) The National School Lunch Program
authorized under the National School Lunch
Act (42 U.S.C. 1751 et seq.).’’; and
(2) by amending subsection (f)(2) to read as
follows:
‘‘(2) 
CUSTOMER
ACCEPTABILITY
INFORMA-
TION.—
‘‘(A) IN
GENERAL.—The Secretary shall
ensure that information with respect to the
types and forms of commodities that are most
useful is collected from those recipient agencies
referred to in subsection (a)(2).
‘‘(B) 
FREQUENCY.—Such 
information
shall be collected at least once every two years.
‘‘(C) 
ADDITIONAL
SUBMISSIONS.—The
Secretary may require submission of such infor-
mation from recipient agencies participating in
other domestic food assistance programs admin-
istered by the Secretary and shall provide such
recipient agencies a means for voluntarily sub-
mitting customer acceptability information.’’.
SEC. 302. FOOD DISTRIBUTION PROVISIONS.
The Commodity Distribution Reform Act and WIC
Amendments of 1987 (7 U.S.C. 612c note) is amended
by adding at the end the following:
‘‘SEC. 15. AUTHORITY TO TRANSFER COMMODITIES BE-
TWEEN PROGRAMS.
‘‘(a) TRANSFER.—Subject to subsection (b), the Sec-
retary may transfer any commodities purchased for one
domestic food assistance program administered by the
Secretary to any other such program when the transfer
is necessary to ensure that the commodities will be used
while they are still suitable for human consumption.
‘‘(b) REIMBURSEMENT.—The Secretary shall, when-
ever possible and practicable, provide reimbursement for
the value of the commodities transferred under subsection
(a) from accounts available for the purchase of commod-
ities for the program receiving the commodities.
‘‘(c) CREDITING.—Any reimbursement made under
subsection (b) shall be credited to the accounts that in-
curred the costs when the transferred commodities were
originally purchased and shall be available for the pur-
chase of commodities with the same limitations as are pro-
vided for appropriated funds for the reimbursed accounts
for the fiscal year in which the transfer takes place.
‘‘SEC. 16. AUTHORITY TO RESOLVE CLAIMS.
‘‘(a) DETERMINE, SETTLE, AND ADJUST CLAIMS.—
The Secretary shall have the authority to determine the
amount of, to settle, and to adjust any claim or part there-
of arising under any domestic food assistance program ad-
ministered by the Secretary.
‘‘(b) CLAIMS WAIVER.—The Secretary shall have the
authority to waive such claims if the Secretary determines
that to do so would serve the purposes of the particular
program.
‘‘(c) AUTHORITY OF THE ATTORNEY GENERAL.—
Nothing contained in this section shall be construed to di-
minish the authority of the Attorney General of the United
States under section 516 of title 28, United States Code,
or any other provisions of law to supervise and conduct
litigation on behalf of the United States.
‘‘SEC. 17. PAYMENT OF COSTS ASSOCIATED WITH MANAGE-
MENT OF COMMODITIES WHICH POSE A
HEALTH OR SAFETY HAZARD.
‘‘(a) IN GENERAL.—The Secretary may use funds
available to carry out the provisions of section 32 of the
Agricultural Act of August 24, 1935 (7 U.S.C. 612c),
which are not otherwise committed, for the purpose of re-
imbursing States for State and local costs associated with
commodities distributed under any domestic food assist-
ance program administered by the Secretary when the
Secretary determines that such commodities pose a health
or safety hazard.
‘‘(b) ALLOWABLE COSTS.—Such costs may include
including storage, transportation, processing, and destruc-
tion of the hazardous commodities and shall be subject
to the approval of the Secretary.
‘‘(c) REPLACEMENT COMMODITIES.—The Secretary
also may use such funds for the purpose of purchasing
additional commodities when the purchase will expedite re-
placement of the hazardous commodities, but the use of
such funds shall not restrict the Secretary from recovering
funds or services from the supplier or other entity regard-
ing the hazardous commodities.
‘‘(d) CREDITING OF RECOVERED FUNDS.—Funds re-
covered from the supplier or other entities regarding the
hazardous commodities shall be credited to the account
available to carry out the provisions of section 32 of the
Agricultural Act of August 24, 1935 to the extent such
funds represent expenditures from that account under
subsections (a) and (c), and shall remain available to carry
out the purposes of section 32 of the Agricultural Act of
August 24, 1935 until expended.