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school are students who qualify for free or re-
duced price lunches.
‘‘(B) At least 30 percent of all students
participating in the school breakfast program at
the school are students who qualify for free or
reduced price breakfasts.
‘‘(b) APPLICATION.—
‘‘(1) IN GENERAL.—A school may participate in
the pilot program only if such school submits to the
Secretary an application containing such information
as the Secretary may reasonably require.
‘‘(2) CONTENTS.—Such application shall con-
tain a plan describing—
‘‘(A) the additional amount over the most
recent prior year reimbursement amount re-
ceived under the school lunch program and the
school breakfast program (adjusted for inflation
and enrollment) that the school would need
from the Federal government to provide free
lunches and breakfasts under the pilot program;
and
‘‘(B) the funding, if any, the school will re-
ceive from non-Federal sources to provide free
lunches and breakfasts under the pilot program.
‘‘(c) UNIVERSAL PAYMENT RATE.—
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‘‘(1) IN GENERAL.—Subject to paragraphs (3)
and (4), in lieu of receiving the national average
payment per lunch determined under section 4 and
section 11, and the national average payment per
breakfast determined under section 4 of the Child
Nutrition Act of 1966, each school participating in
the universal program shall receive the universal
payment rates determined under paragraph (2) for
each lunch and breakfast served under the program.
‘‘(2) ESTABLISHMENT.—Subject to paragraph
(3), the Secretary shall establish the universal pay-
ment rates for purposes of this section. Such rates
shall be equal to the national average cost of produc-
ing a school lunch, and the national average cost of
producing a school breakfast, respectively, as deter-
mined by the Secretary. In making the determina-
tion required by the preceding sentence, the Sec-
retary shall establish a maximum amount that can
be charged to a participating school food service au-
thority for indirect expenses.
‘‘(3) COMMODITIES.—(A) Except as provided in
subparagraph (B), a school participating in the pilot
program shall receive commodities in an amount
equal to the amount the school received in the prior
year under the school lunch program under this Act
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and under the school breakfast program under sec-
tion 4 of the Child Nutrition Act of 1966, adjusted
for inflation and fluctuations in enrollment.
‘‘(B) Commodities required for the pilot pro-
gram in excess of the amount of commodities re-
ceived by the school in the prior year under the
school lunch program and the school breakfast pro-
gram may be funded from amounts appropriated to
carry out this section.
‘‘(4) ADDITIONAL REQUIREMENTS.—(A) Except
as provided in subparagraph (B), a school partici-
pating in the pilot program shall receive a total Fed-
eral reimbursement under the school lunch program
and school breakfast program in an amount equal to
the Federal reimbursement rate for the school in the
prior year under each such program (adjusted for
inflation and fluctuations in enrollment).
‘‘(B) Funds required for the pilot program in
excess 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 section. If funds required in addition
to funds under subparagraph (A) are not available
from non-Federal sources and no appropriations are
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made for the pilot program, schools may not partici-
pate in the program.
‘‘(d) COMPETITIVE FOODS POLICY.—A school par-
ticipating in the pilot program may sell competitive foods
under regulations issued by the Secretary.
‘‘(e) PROHIBITION OF WAIVER TO PROVIDE LUNCH
AND BREAKFAST SERVICE WITHOUT COST.—Notwith-
standing any other provision of law, the Secretary may
not waive the requirement that the school will provide
lunch and breakfast service without cost to all students
at the school under the pilot program.
‘‘(f) REPORTS.—
‘‘(1) REPORTS TO THE SECRETARY.—The Sec-
retary shall require each school participating in the
pilot program to submit to the Secretary a report
containing the following information:
‘‘(A) A comparison of the participation
rate of all students at the school in the pilot
program to the participation of students under
the school lunch program and the school break-
fast program.
‘‘(B) A comparison of the quality of meals
served under the pilot program to the quality of
meals served under the school lunch program
and the school breakfast program.
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‘‘(C) An evaluation of the pilot program by
students, parents, and administrators.
‘‘(D) The participation rate in the pilot
program of students who otherwise would be el-
igible for free and reduced price lunches and
breakfasts under the school lunch program or
the school breakfast program.
‘‘(E) A comparison of the amount of ad-
ministrative costs under the program with the
amount of administrative costs under the school
lunch and school breakfast programs.
‘‘(F) The reduction in paperwork under
the pilot program from the amount of paper-
work under the school lunch and school break-
fast programs at the school.
‘‘(2) REPORTS TO THE CONGRESS.—
‘‘(A) INTERIM
REPORT.—Not later than
September 30, 1997, the Secretary shall submit
to the Congress an interim report containing—
‘‘(i) a compilation of the information
received by the Secretary under paragraph
(1) as of this date from each school par-
ticipating in the pilot program; and
‘‘(ii) an interim evaluation of the pro-
gram by the Secretary.
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‘‘(B) FINAL REPORT.—Not later than Sep-
tember 30, 1998, the Secretary shall submit to
the Congress a final report containing—
‘‘(i) a compilation of the information
received by the Secretary under paragraph
(1) as of this date from each school par-
ticipating in the pilot program; and
‘‘(ii) a final evaluation of the program
by the Secretary.
‘‘(g) SELECTION
REQUIREMENT.—To the extent
practicable, the Secretary shall select schools to partici-
pate in the pilot program in a manner which will provide
for an equitable distribution among the following types of
schools:
‘‘(1) Urban and rural schools.
‘‘(2) Elementary, middle, and high schools.
‘‘(3) Low-, middle-, and high-income schools.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$15,000,000 for each of the fiscal years 1995 through
1998.’’.
(b) EFFECTIVE DATE.—The Secretary of Agriculture
shall issue regulations to carry out section 11A of the Na-
tional School Lunch Act (as added by subsection (a) of
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this section) that provide for the implementation of such
section not later than July 1, 1995.
SEC. 106. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
(a) TECHNICAL AMENDMENT TO DEFINITION
OF
SCHOOL.—
(1) IN GENERAL.—Section 12(d)(5) of the Na-
tional School Lunch Act (42 U.S.C. 1760(d)(5)) is
amended—
(A) in the first sentence—
(i) in clause (A), by inserting ‘‘and’’
at the end of such clause;
(ii) in clause (B), by striking ‘‘, and’’
and inserting a period; and
(iii) by striking clause (C); and
(B) in the second sentence, by striking ‘‘of
clauses (A) and (B)’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall take effect on October 1,
1995.
(b) REIMBURSEMENT FOR MEALS, SUPPLEMENTS,
AND MILK UNDER CERTAIN PROGRAMS CONTINGENT
UPON TIMELY SUBMISSION OF CLAIMS AND FINAL PRO-
GRAM OPERATIONS REPORT.—Section 12 of such Act (42
U.S.C. 1760) is amended by adding at the end the follow-
ing new subsection:
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‘‘(j)(1) Except as provided in paragraph (2), the Sec-
retary may provide reimbursements for final claims for
service of meals, supplements, and milk submitted to State
agencies by eligible schools, summer camps, family day
care homes, institutions, and service institutions only if—
‘‘(A) such claims have been submitted to such
State agencies not later than 60 days after the last
day of the month for which the reimbursement is
claimed; and
‘‘(B) the final program operations report for
such month is submitted to the Secretary not later
than 90 days after the last day of such month.
‘‘(2) The Secretary may waive the requirements con-
tained in paragraph (1) at the discretion of the Sec-
retary.’’.
(c) REQUIREMENT
OF NEGOTIATED RULEMAKING
PROCESS
IN ISSUING REGULATIONS UNDER
THE NA-
TIONAL SCHOOL LUNCH ACT AND THE CHILD NUTRITION
ACT OF 1966.—Section 12 of such Act (42 U.S.C. 1760)
(as amended by subsection (b)) is further amended by
adding at the end the following new subsection:
‘‘(k)(1) The Secretary is authorized to issue such reg-
ulations as are necessary to reasonably ensure that there
is compliance with this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.).
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‘‘(2)(A) Prior to publishing proposed regulations in
the Federal Register to carry out this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (except
the special supplemental nutrition program under section
17 of such Act), the Secretary shall obtain the advice and
recommendations of representatives of Federal, State, and
local school administrators, school food service administra-
tors, other school food service personnel, parents, teachers,
industry representatives, public interest anti-hunger orga-
nizations, doctors specializing in pediatric nutrition, and
nutritionists involved with the implementation and oper-
ation of programs under this Act and the Child Nutrition
Act of 1966.
‘‘(B) Such advice and recommendations may be ob-
tained through such mechanisms as regional meetings and
electronic exchanges of information. The Secretary shall
take into account such information in the development of
proposed regulations and shall publish a summary of such
information in the Federal Register together with such
proposed regulations.
‘‘(C) After obtaining such advice and recommenda-
tions, and prior to publishing proposed regulations, the
Secretary shall—
‘‘(i) establish a negotiated rulemaking process
on issues, including—
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‘‘(I) nutrition requirements and their im-
plementation; and
‘‘(II) program compliance and accountabil-
ity requirements;
‘‘(ii) select individuals to participate in such
process from among individuals or groups which pro-
vided advice and recommendations, with representa-
tion from all geographic regions (to the extent pos-
sible, the Secretary shall select individuals reflecting
the diversity in the program, including representa-
tives of both large and small programs, as well as
individuals serving urban and rural areas); and
‘‘(iii) prepare a draft of proposed policy options
that shall be provided to the individuals selected by
the Secretary under clause (ii) not less than 45 days
prior to the first meeting under such process.
‘‘(D) Such process—
‘‘(i) shall be conducted in a timely manner to
ensure that final regulations are issued by the Sec-
retary not later than 240 days after the date of the
enactment of the Healthy Meals for Healthy Ameri-
cans Act of 1994; and
‘‘(ii) shall not be subject to the Federal Advi-
sory Committee Act but shall otherwise follow the
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provisions of the Negotiated Rulemaking Act of
1990 (5 U.S.C. 561 et seq.).
‘‘(E) In an emergency situation in which regulations
to carry out this Act and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.) must be issued with a very lim-
ited time to assist State and local educational agencies
with the operation of the program, the Secretary may
issue proposed regulations without following such process
but shall, immediately thereafter and prior to issuing final
regulations, conduct regional meetings to review such pro-
posed regulations.’’.
(d) AUTHORITY OF SECRETARY TO WAIVE STATU-
TORY
AND REGULATORY REQUIREMENTS UNDER
THE
NATIONAL SCHOOL LUNCH ACT AND THE CHILD NUTRI-
TION ACT OF 1966.—Section 12 of such Act (42 U.S.C.
1760) (as amended by subsections (b) and (c)) is further
amended by adding at the end the following new sub-
section:
‘‘(l)(1)(A) The Secretary may waive any requirement
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), or any regulation issued under such
Acts, for a State or eligible service provider that requests
a waiver if—
‘‘(i) the Secretary determines that the waiver of
such requirement would facilitate the ability of the
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State or eligible service provider to carry out the
purpose of the program;
‘‘(ii) a State or eligible service provider has pro-
vided notice and information to the public regarding
the proposed waiver; and
‘‘(iii) the State or eligible service provider dem-
onstrates to the satisfaction of the Secretary that
such waiver will not increase the overall cost of the
program to the Federal government, and, if such
waiver does increase such overall cost to the Federal
government, such cost will be paid from non-Federal
funds.
‘‘(B) Such notice and information shall be provided
in the same manner in which such State or eligible service
provider customarily provides similar notices and informa-
tion to the public.
‘‘(2)(A) To request a waiver, a State or eligible serv-
ice provider shall submit an application to the Secretary
that—
‘‘(i) identifies the statutory or regulatory re-
quirements that are requested to be waived;
‘‘(ii) in the case of a State requesting a waiver,
describes actions, if any, that the State has under-
taken to remove State statutory or regulatory bar-
riers;
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‘‘(iii) describes the goal of the waiver to im-
prove services under the program and the expected
outcomes if the waiver is granted;
‘‘(iv) includes a description of the impediments
to the efficient operation and administration of the
program;
‘‘(v) describes the management goals to be
achieved, such as fewer hours devoted to or fewer
number of personnel involved in the administration
of the program;
‘‘(vi) provides a timetable for implementing the
waiver; and
‘‘(vii) describes the process the State or eligible
service provider will use to monitor the progress in
implementing the waiver, including the process for
monitoring the cost implications of the waiver to the
Federal government.
‘‘(B) An application described in subparagraph (A)
shall be developed by the State or eligible service provider
and shall be submitted to the Secretary by the State.
‘‘(3)(A) The Secretary shall act promptly on a waiver
request contained in an application submitted under para-
graph (2) and shall either grant or deny such request. The
Secretary shall state in writing the reasons for granting
or denying such request.
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‘‘(B) If the Secretary grants a waiver request, the
Secretary shall state in writing the expected outcome of
granting such a waiver.
‘‘(C) The result of the decision of the Secretary shall
be disseminated by the State or eligible service provider
to interested parties, including educators, parents, stu-
dents, advocacy and civil rights organizations, other inter-
ested parties, and the public.
‘‘(D)(i) Except as provided in clause (ii), a waiver
granted by the Secretary shall be for a period not to ex-
ceed three years.
‘‘(ii) The Secretary may extend such period if the
Secretary determines that the waiver has been effective
in enabling the State or eligible service provider to carry
out the purposes of the program.
‘‘(4) The Secretary may not grant a waiver under
paragraph (3) of any requirement relating to—
‘‘(A) the nutritional content of meals served;
‘‘(B) Federal reimbursement rates;
‘‘(C) the provision of free and reduced price
meals;
‘‘(D) offer versus serve provisions;
‘‘(E) limits on the price charged for a reduced
price meal;
‘‘(F) maintenance of effort;
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‘‘(G) equitable participation of children in pri-
vate schools;
‘‘(H) distribution of funds to State and local
school food service authorities;
‘‘(I) prohibiting the disclosure of information
relating to students receiving free or reduced price
meals;
‘‘(J) prohibiting the operation of a profit pro-
ducing program;
‘‘(K) the sale of competitive foods;
‘‘(L) the commodity distribution program under
section 14 of this Act; and
‘‘(M) enforcement of any constitutional or stat-
utory right of an individual, including any right
under—
‘‘(i) title VI of the Civil Rights Act of
1964;
‘‘(ii) Section 504 of the Rehabilitation Act
of 1973;
‘‘(iii) title IX of the Education Amend-
ments of 1972;
‘‘(iv) the Age Discrimination Act of 1975;
and
‘‘(v) the Americans with Disabilities Act of
1990.
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‘‘(5) The Secretary shall periodically review the per-
formance of any State or eligible service provider for which
the Secretary has granted a waiver and shall terminate
the waiver if the performance of the State or service pro-
vider has been inadequate to justify a continuation of the
waiver. The Secretary shall terminate the waiver if, after
periodic review, the Secretary determines that the waiver
has resulted in increased Federal spending and such in-
creased Federal spending has not been paid for in accord-
ance with paragraph (1)(A)(iii).
‘‘(6)(A)(i) An eligible service provider that receives
a waiver under this section shall annually submit to the
State a report that—
‘‘(I) describes the use of such waiver by the eli-
gible service provider; and
‘‘(II) evaluates how the waiver contributed to
improved services to children served by the program
for which the waiver was requested.
‘‘(ii) The State shall annually submit to the Secretary
a report that summarizes all reports received by the State
from eligible service providers.
‘‘(B) The Secretary shall annually submit to the
Committee on Education and Labor of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, a report—
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‘‘(i) summarizing the use of waivers by the
State and eligible service providers;
‘‘(ii) describing whether such waivers resulted
in improved services to children;
‘‘(iii) describing the impact of such waivers on
providing nutritional meals to participants; and
‘‘(iv) describing how such waivers reduced the
amount of paperwork necessary to administer the
program.
‘‘(7) For purposes of this subsection, the term ‘eligi-
ble service provider’ means—
‘‘(A) a local school food service authority;
‘‘(B) a service institution or private nonprofit
organization described under section 13 of this Act;
or
‘‘(C) a family or group day care home sponsor-
ing organization described under section 17 of this
Act.’’.
SEC. 107. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) PRIORITY REQUIREMENTS
FOR DETERMINING
PARTICIPATION OF CERTAIN ELIGIBLE SERVICE INSTITU-
TIONS.—Section 13(a)(4) of the National School Lunch
Act (42 U.S.C. 1761(a)(4)) is amended by striking sub-