498
ed by striking ‘‘at all times be available’’ and inserting
‘‘be available at any reasonable time’’.
(b) RESTRICTION
ON
REQUIREMENTS.—Section
12(c) of the Act is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
(c) DEFINITIONS.—Section 12(d) of the Act, as
amended by section 801(b), is further amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
Commonwealth of the Northern Mariana Islands’’;
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (1), (2), and
(5) through (9) as paragraphs (6), (7), (3), (4), (2),
(5), and (1), respectively, and rearranging the para-
graphs so as to appear in numerical order.
(d) ADJUSTMENTS
TO NATIONAL AVERAGE PAY-
MENT RATES.—Section 12(f) of the Act is amended by
striking ‘‘the Trust Territory of the Pacific Islands,’’.
(e) EXPEDITED RULEMAKING.—Section 12(k) of the
Act is amended—
(1) by striking paragraphs (1), (2), and (5);
and
(2) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
499
(f) WAIVER.—Section 12(l) of the Act is amended—
(1) in paragraph (1)(A)(i), by inserting after
‘‘program’’ the following: ‘‘and would not have the
effect of transferring funds or commodities from the
support of meals for children with incomes below the
income criteria for free or reduced price meals, as
provided in section 9(b)’’;
(2) in paragraph (2)—
(A) by striking ‘‘(A)’’;
(B) in clause (iii), by adding ‘‘and’’ at the
end;
(C) in clause (iv), by striking the semicolon
at the end and inserting a period;
(D) by striking clauses (v) through (vii);
(E) by striking subparagraph (B); and
(F) by redesignating clauses (i) through
(iv), as so amended, as subparagraphs (A)
through (D), respectively;
(3) in paragraph (3)—
(A) by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B) through
(D);
(4) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘of any requirement relating’’
500
and inserting ‘‘that increases Federal costs or
that relates’’;
(B) by striking subparagraphs (B), (D),
(F), (H), (J), (K), and (L);
(C) by redesignating subparagraphs (C),
(E), (G), (I), (M), and (N) as subparagraphs
(B) through (G), respectively; and
(D) in subparagraph (F), as redesignated
by subparagraph (C), by striking ‘‘and’’ at the
end and inserting ‘‘or’’; and
(5) in paragraph (6)—
(A) by striking ‘‘(A)(i)’’ and all that fol-
lows through ‘‘(B)’’; and
(B) by redesignating clauses (i) through
(iv) as subparagraphs (A) through (D), respec-
tively.
(g) FOOD AND NUTRITION PROJECTS.—Section 12
of the Act is amended by striking subsection (m).
SEC. 808. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) ESTABLISHMENT OF PROGRAM.—Section 13(a)
of the National School Lunch Act (42 U.S.C. 1761(a))
is amended—
(1) in paragraph (1)—
501
(A) in the first sentence, by striking ‘‘initi-
ate, maintain, and expand’’ and insert ‘‘initiate
and maintain’’; and
(B) in subparagraph (E) of the second
sentence, by striking ‘‘the Trust Territory of
the Pacific Islands,’’; and
(2) in paragraph (7)(A), by striking ‘‘Except as
provided in subparagraph (C), private’’ and inserting
‘‘Private’’.
(b) SERVICE INSTITUTIONS.—Section 13(b) of the
Act is amended by striking ‘‘(b)(1)’’ and all that follows
through the end of paragraph (1) and inserting the follow-
ing:
‘‘(b) SERVICE INSTITUTIONS.—
‘‘(1) PAYMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, payments to service
institutions shall equal the full cost of food
service operations (which cost shall include the
costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
‘‘(B) MAXIMUM
AMOUNTS.—Subject to
subparagraph (C), payments to any institution
under subparagraph (A) shall not exceed—
502
‘‘(i) $2.00 for each lunch and supper
served;
‘‘(ii) $1.20 for each breakfast served;
and
‘‘(iii) 50 cents for each meal supple-
ment served.
‘‘(C) ADJUSTMENTS.—Amounts specified
in subparagraph (B) shall be adjusted each
January 1 to the nearest lower cent increment
in accordance with the changes for the 12-
month period ending the preceding November
30 in the series for food away from home of the
Consumer Price Index for All Urban Consum-
ers published by the Bureau of Labor Statistics
of the Department of Labor. Each adjustment
shall be based on the unrounded adjustment for
the prior 12-month period.’’.
(c) ADMINISTRATION OF SERVICE INSTITUTIONS.—
Section 13(b)(2) of the Act is amended—
(1) in the first sentence, by striking ‘‘four
meals’’ and inserting ‘‘3 meals, or 2 meals and 1
supplement,’’; and
(2) by striking the second sentence.
(d) REIMBURSEMENTS.—Section 13(c)(2) of the Act
is amended—
503
(1) by striking subparagraph (A);
(2) in subparagraph (B)—
(A) in the first sentence—
(i) by striking ‘‘, and such higher edu-
cation institutions,’’; and
(ii) by striking ‘‘without application’’
and inserting ‘‘upon showing residence in
areas in which poor economic conditions
exist or on the basis of income eligibility
statements for children enrolled in the pro-
gram’’; and
(B) by adding at the end the following:
‘‘The higher education institutions referred to
in the preceding sentence shall be eligible to
participate in the program under this para-
graph without application.’’;
(3) in subparagraph (C)(ii), by striking ‘‘severe
need’’; and
(4) 
by 
redesignating 
subparagraphs 
(B)
through (E), as so amended, as subparagraphs (A)
through (D), respectively.
(e) 
ADVANCE
PROGRAM
PAYMENTS.—Section
13(e)(1) of the Act is amended—
(1) by striking ‘‘institution: Provided, That (A)
the’’ and inserting ‘‘institution. The’’;
504
(2) by inserting ‘‘(excluding a school)’’ after
‘‘any service institution’’; and
(3) by striking ‘‘responsibilities, and (B) no’’
and inserting ‘‘responsibilities. No’’.
(f) FOOD REQUIREMENTS.—Section 13(f) of the Act
is amended—
(1) by redesignating the first through seventh
sentences as paragraphs (1) through (7), respec-
tively;
(2) by striking paragraph (3), as redesignated
by paragraph (1);
(3) in paragraph (4), as redesignated by para-
graph (1), by striking ‘‘the first sentence’’ and in-
serting ‘‘paragraph (1)’’;
(4) in paragraph (6), as redesignated by para-
graph (1), by striking ‘‘that bacteria levels’’ and all
that follows through the period at the end and in-
serting ‘‘conformance with standards set by local
health authorities.’’; and
(5) by redesignating paragraphs (4) through
(7), as redesignated by paragraph (1), as para-
graphs (3) through (6), respectively.
(g) PERMITTING OFFER VERSUS SERVE.—Section
13(f) of the Act, as amended by subsection (f), is further
amended by adding at the end the following:
505
‘‘(7) OFFER VERSUS SERVE.—A school food au-
thority participating as a service institution may
permit a child attending a site on school premises
operated directly by the authority to refuse not more
than 1 item of a meal that the child does not intend
to consume. A refusal of an offered food item shall
not affect the amount of payments made under this
section to a school for the meal.’’.
(h) HEALTH DEPARTMENT INSPECTIONS.—Section
13(k) of the Act is amended by striking paragraph (3).
(i) FOOD SERVICE MANAGEMENT COMPANIES.—Sec-
tion 13(l) of the Act is amended—
(1) by striking paragraph (4);
(2) in paragraph (5), by striking the first sen-
tence; and
(3) by redesignating paragraph (5), as so
amended, as paragraph (4).
(j) RECORDS.—The second sentence of section 13(m)
of the Act is amended by striking ‘‘at all times be avail-
able’’ and inserting ‘‘be available at any reasonable time’’.
(k) REMOVING MANDATORY NOTICE TO INSTITU-
TIONS.—Section 13(n)(2) of the Act is amended by strik-
ing ‘‘, and its plans and schedule for informing service
institutions of the availability of the program’’.
(l) PLAN.—Section 13(n) of the Act is amended—
506
(1) in paragraph (2), by striking ‘‘including the
State’s methods of assessing need’’;
(2) by striking paragraph (3);
(3) in paragraph (4), by striking ‘‘and sched-
ule’’; and
(4) by redesignating paragraphs (4) through
(7), as so amended, as paragraphs (3) through (6),
respectively.
(m) MONITORING AND TRAINING.—Section 13(q) of
the Act is amended—
(1) by striking paragraphs (2) and (4);
(2) in paragraph (3), by striking ‘‘paragraphs
(1) and (2) of this subsection’’ and inserting ‘‘para-
graph (1)’’; and
(3) by redesignating paragraph (3), as so
amended, as paragraph (2).
(n) EXPIRED PROGRAM.—Section 13 of the Act is
amended—
(1) by striking subsection (p); and
(2) by redesignating subsections (q) and (r), as
so amended, as subsections (p) and (q), respectively.
(o) EFFECTIVE DATE.—The amendments made by
subsection (b) shall become effective on January 1, 1996.
507
SEC. 809. COMMODITY DISTRIBUTION.
(a) CEREAL AND SHORTENING IN COMMODITY DO-
NATIONS.—Section 14(b) of the National School Lunch
Act (42 U.S.C. 1762a(b)) is amended—
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(b) IMPACT
STUDY
AND
PURCHASING
PROCE-
DURES.—Section 14(d) of the Act is amended by striking
the second and third sentences.
(c) CASH
COMPENSATION
FOR
PILOT
PROJECT
SCHOOLS.—Section 14(g) of the Act is amended by strik-
ing paragraph (3).
(d) STATE
ADVISORY
COUNCIL.—Section 14 is
amended—
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g), as
so amended, as subsections (e) and (f), respectively.
SEC. 810. CHILD CARE FOOD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 17 of
the National School Lunch Act (42 U.S.C. 1766) is
amended—
(1) in the section heading, by striking ‘‘AND
ADULT’’; and
508
(2) in the first sentence of subsection (a), by
striking ‘‘initiate, maintain, and expand’’ and insert-
ing ‘‘initiate and maintain’’.
(b) INSTITUTIONS PROVIDING CHILD CARE.—Sec-
tion 17(a) of the Act (42 U.S.C. 1766(a)) is amended—
(1) in the second sentence—
(A) by inserting ‘‘the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C.
9858 et seq.) or’’ after ‘‘from amounts granted
to the States under’’; and
(B) by striking ‘‘(but only if’’ and all that
follows and inserting a period; and
(2) in the fourth sentence, by striking ‘‘Reim-
bursement’’ and inserting ‘‘Notwithstanding the type
of institution providing the meal or supplement, re-
imbursement’’.
(c) PAYMENTS
TO SPONSOR EMPLOYEES.—Para-
graph (2) of the last sentence of section 17(a) of the Act
(42 U.S.C. 1766(a)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
509
‘‘(D) in the case of a family or group day
care home sponsoring organization that employs
more than 1 employee, the organization does
not base payments to an employee of the orga-
nization on the number of family or group day
care homes recruited.’’.
(d) TECHNICAL ASSISTANCE.—The last sentence of
section 17(d)(1) of the Act is amended by striking ‘‘, and
shall provide technical assistance’’ and all that follows
through ‘‘its application’’.
(e) IMPROVED TARGETING OF DAY CARE HOME RE-
IMBURSEMENTS.—
(1) RESTRUCTURED
DAY
CARE
HOME
REIM-
BURSEMENTS.—Section 17(f)(3) of the Act is
amended by striking ‘‘(3)(A) Institutions’’ and all
that follows through the end of subparagraph (A)
and inserting the following:
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP
DAY CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
‘‘(i) IN
GENERAL.—An institution
that participates in the program under this
section as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the
510
organization, reimbursement factors in ac-
cordance with this subparagraph for the
cost of obtaining and preparing food and
prescribed labor costs involved in providing
meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) DEFINITION.—In this para-
graph, the term ‘tier I family or group
day care home’ means—
‘‘(aa) a family or group day
care home that is located in a ge-
ographic area, as defined by the
Secretary based on census data,
in which at least 50 percent of
the children residing in the area
are members of households whose
incomes meet the income eligi-
bility guidelines for free or re-
duced price meals under section
9;
‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
511
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or
reduced price school meals under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the income eligibility guidelines
for free or reduced price meals
under section 9 and whose in-
come is verified by the sponsor-
ing or organization of the home
under regulations established by
the Secretary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier
I family or group day care home shall
be provided reimbursement factors
under this clause without a require-
ment for documentation of the costs
described in clause (i), except that re-
imbursement shall not be provided
513
adjustment in effect on June 30 of
the preceding school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a
family or group day care home
that does not meet the criteria
set forth in clause (ii)(I), the re-
imbursement factors shall be
$1.00 for lunches and suppers,
30 cents for breakfasts, and 15
cents for supplements.
‘‘(bb) ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-
month period for which the data
are available. The reimbursement
factors under this item shall be
514
rounded down to the nearest
lower cent increment and based
on the unrounded adjustment for
the preceding 12-month period.
‘‘(cc) REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for docu-
mentation of the costs described
in clause (i), except that reim-
bursement shall not be provided
under this subclause for meals or
supplements served to the chil-
dren of a person acting as a fam-
ily or group day care home pro-
vider unless the children meet the
income eligibility guidelines for
free or reduced price meals under
section 9.
‘‘(II) OTHER FACTORS.—A fam-
ily or group day care home that does
not meet the criteria set forth in
clause (ii)(I) may elect to be provided
reimbursement factors determined in
515
accordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes meet the income eligibility
guidelines for free or reduced
price meals under section 9, the
family or group day care home
shall be provided reimbursement
factors set by the Secretary in
accordance with clause (ii)(III).
‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who are
members of households whose in-
comes do not meet the income
eligibility guidelines, the family
or group day care home shall be
provided reimbursement factors
in accordance with subclause (I).
516
‘‘(III) INFORMATION
AND
DE-
TERMINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
scribed in subclause (II), the
family or group day care home
sponsoring organization serving
the home shall collect the nec-
essary income information, as de-
termined by the Secretary, from
any parent or other caretaker to
make the determinations speci-
fied in subclause (II) and shall
make the determinations in ac-
cordance with rules prescribed by
the Secretary.
‘‘(bb) CATEGORICAL
ELIGI-
BILITY.—In making a determina-
tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
participating in or subsidized
under, or a child with a parent
participating in or subsidized
517
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the eligibility standard for free or
reduced price meals under section
9 to be a child who is a member
of a household whose income
meets 
the 
income 
eligibility
guidelines under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii)(III)
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not
to have income statements col-
lected from parents or other care-
takers.
‘‘(IV) SIMPLIFIED MEAL COUNT-
ING AND REPORTING PROCEDURES.—
The Secretary shall prescribe sim-
plified meal counting and reporting
518
procedures for use by a family or
group day care home that elects to
claim the factors under subclause (II)
and by a family or group day care
home sponsoring organization that
sponsors the home. The procedures
the Secretary prescribes may include
1 or more of the following:
‘‘(aa) Setting an annual per-
centage for each home of the
number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under clause (ii)(III)
and an annual percentage of the
number of meals served that are
to be reimbursed in accordance
with the reimbursement factors
prescribed under subclause (I),
based on the family income of
children enrolled in the home in a
specified month or other period.
‘‘(bb) Placing a home into 1
of 2 or more reimbursement cat-
egories annually based on the
519
percentage of children in the
home whose households have in-
comes that meet the income eligi-
bility guidelines under section 9,
with each such reimbursement
category carrying a set of reim-
bursement factors such as the
factors prescribed under clause
(ii)(III) or subclause (I) or fac-
tors established within the range
of factors prescribed under clause
(ii)(III) and subclause (I).
‘‘(cc) Such other simplified
procedures as the Secretary may
prescribe.
‘‘(V) 
MINIMUM
VERIFICATION
REQUIREMENTS.—The Secretary may
establish any necessary minimum ver-
ification requirements.’’.
(2) GRANTS TO STATES TO PROVIDE ASSIST-
ANCE TO FAMILY OR GROUP DAY CARE HOMES.—
Section 17(f)(3) of the Act is amended by adding at
the end the following:
520
‘‘(D) GRANTS TO STATES TO PROVIDE AS-
SISTANCE
TO
FAMILY
OR
GROUP
DAY
CARE
HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) 
RESERVATION.—From
amounts made available to carry out
this section, the Secretary shall re-
serve $5,000,000 of the amount made
available for fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary
shall use the funds made available
under subclause (I) to provide grants
to States for the purpose of provid-
ing—
‘‘(aa) assistance, including
grants, to family and day care
home sponsoring organizations
and other appropriate organiza-
tions, in securing and providing
training, materials, automated
data processing assistance, and
other assistance for the staff of
the sponsoring organizations; and
‘‘(bb) training and other as-
sistance to family and group day
521
care homes in the implementation
of the amendment to subpara-
graph 
(A) 
made 
by 
section
808(d)(1) of the Personal Re-
sponsibility and Work Oppor-
tunity Act of 1996.
‘‘(ii) 
ALLOCATION.—The 
Secretary
shall allocate from the funds reserved
under clause (i)(I)—
‘‘(I) $30,000 in base funding to
each State; and
‘‘(II) 
any 
remaining 
amount
among the States, based on the num-
ber of family day care homes partici-
pating in the program in a State dur-
ing fiscal year 1994 as a percentage
of the number of all family day care
homes participating in the program
during fiscal year 1994.
‘‘(iii) RETENTION OF FUNDS.—Of the
amount of funds made available to a State
for fiscal year 1996 under clause (i), the
State may retain not to exceed 30 percent
of the amount to carry out this subpara-
graph.
522
‘‘(iv) ADDITIONAL
PAYMENTS.—Any
payments received under this subpara-
graph shall be in addition to payments
that a State receives under subparagraph
(A).’’.
(3) PROVISION OF DATA.—Section 17(f)(3) of
the Act, as amended by paragraph (2), is further
amended by adding at the end the following:
‘‘(E) PROVISION OF DATA TO FAMILY OR
GROUP DAY CARE HOME SPONSORING ORGANI-
ZATIONS.—
‘‘(i) CENSUS
DATA.—The Secretary
shall provide to each State agency admin-
istering a child care food program under
this section data from the most recent de-
cennial census survey or other appropriate
census survey for which the data are avail-
able showing which areas in the State meet
the 
requirements 
of 
subparagraph
(A)(ii)(I)(aa). The State agency shall pro-
vide the data to family or group day care
home sponsoring organizations located in
the State.
‘‘(ii) SCHOOL DATA.—
523
‘‘(I) 
IN
GENERAL.—A 
State
agency administering the school lunch
program under this Act or the school
breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) shall provide to ap-
proved family or group day care home
sponsoring organizations a list of
schools serving elementary school chil-
dren in the State in which not less
than 1⁄2 of the children enrolled are
certified to receive free or reduced
price meals. The State agency shall
collect the data necessary to create
the list annually and provide the list
on a timely basis to any approved
family or group day care home spon-
soring organization that requests the
list.
‘‘(II) USE OF DATA FROM PRE-
CEDING SCHOOL YEAR.—In determin-
ing for a fiscal year or other annual
period whether a home qualifies as a
tier I family or group day care home
under subparagraph (A)(ii)(I), the
524
State agency administering the pro-
gram under this section, and a family
or group day care home sponsoring
organization, shall use the most cur-
rent available data at the time of the
determination.
‘‘(iii) 
DURATION
OF
DETERMINA-
TION.—For purposes of this section, a de-
termination that a family or group day
care home is located in an area that quali-
fies the home as a tier I family or group
day care home (as the term is defined in
subparagraph (A)(ii)(I)), shall be in effect
for 3 years (unless the determination is
made on the basis of census data, in which
case the determination shall remain in ef-
fect until more recent census data are
available) unless the State agency deter-
mines that the area in which the home is
located no longer qualifies the home as a
tier I family or group day care home.’’.
(4) CONFORMING AMENDMENTS.—Section 17(c)
of the Act is amended by inserting ‘‘except as pro-
vided in subsection (f)(3),’’ after ‘‘For purposes of
525
this section,’’ each place it appears in paragraphs
(1), (2), and (3).
(f) REIMBURSEMENT.—Section 17(f) of the Act is
amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking the
third and fourth sentences; and
(B) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘(i)’’;
(II) in the first sentence, by
striking ‘‘and expansion funds’’ and
all that follows through ‘‘rural areas’’;
(III) by striking the second sen-
tence; and
(IV) by striking ‘‘and expansion
funds’’ each place it appears; and
(ii) by striking clause (ii); and
(2) by striking paragraph (4).
(g) 
NUTRITIONAL
REQUIREMENTS.—Section
17(g)(1) of the Act is amended—
(1) in subparagraph (A), by striking the second
sentence; and
(2) in subparagraph (B), by striking the second
sentence.
526
(h) ELIMINATION OF STATE PAPERWORK AND OUT-
REACH BURDEN.—Section 17 of the Act is amended by
striking subsection (k) and inserting the following:
‘‘(k) TRAINING
AND TECHNICAL ASSISTANCE.—A
State participating in the program established under this
section shall provide sufficient training, technical assist-
ance, and monitoring to facilitate effective operation of the
program. The Secretary shall assist the State in develop-
ing plans to fulfill the requirements of this subsection.’’.
(i) RECORDS.—The second sentence of section 17(m)
of the Act is amended by striking ‘‘at all times’’ and in-
serting ‘‘at any reasonable time’’.
(j) MODIFICATION
OF ADULT CARE FOOD PRO-
GRAM.—Section 17(o) of the Act is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘adult day care centers’’
and inserting ‘‘day care centers for chronically
impaired disabled persons’’; and
(B) by striking ‘‘to persons 60 years of age
or older or’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘adult day care center’’
and inserting ‘‘day care center for chron-
ically impaired disabled persons’’; and
527
(ii) in clause (i)—
(I) by striking ‘‘adult’’;
(II) by striking ‘‘adults’’ and in-
serting ‘‘persons’’; and
(III) by striking ‘‘or persons 60
years of age or older’’; and
(B) in subparagraph (B), by striking
‘‘adult day care services’’ and inserting ‘‘day
care services for chronically impaired disabled
persons’’.
(k) UNNEEDED PROVISION.—Section 17 of the Act
is amended by striking subsection (q).
(l) CONFORMING AMENDMENTS.—
(1) Section 17B(f) of the Act (42 U.S.C.
1766b(f)) is amended—
(A) in the subsection heading, by striking
‘‘AND ADULT’’; and
(B) in paragraph (1), by striking ‘‘and
adult’’.
(2) Section 18(e)(3)(B) of the Act (42 U.S.C.
1769(e)(3)(B)) is amended by striking ‘‘and adult’’.
(3) Section 25(b)(1)(C) of the Act (42 U.S.C.
1769f(b)(1)(C)) is amended by striking ‘‘and adult’’.
528
(4) Section 3(1) of the Healthy Meals for
Healthy Americans Act of 1994 (Public Law 103–
448) is amended by striking ‘‘and adult’’.
(m) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall become effective on the date of enactment of
this Act.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The 
amendments 
made 
by
paragraphs (1), (3), and (4) of subsection (f) shall
become effective on August 1, 1996.
(3) REGULATIONS.—
(A) INTERIM
REGULATIONS.—Not later
than February 1, 1996, the Secretary shall
issue interim regulations to implement—
(i) the amendments made by para-
graphs (1), (3), and (4) of subsection (f);
and
(ii) section 17(f)(3)(C) of the National
School 
Lunch 
Act 
(42 
U.S.C.
1766(f)(3)(C)).
(B) FINAL REGULATIONS.—Not later than
August 1, 1996, the Secretary shall issue final
529
regulations to implement the provisions of law
referred to in subparagraph (A).
(n) STUDY OF IMPACT OF AMENDMENTS ON PRO-
GRAM PARTICIPATION AND FAMILY DAY CARE LICENS-
ING.—
(1) IN
GENERAL.—The Secretary of Agri-
culture, in conjunction with the Secretary of Health
and Human Services, shall study the impact of the
amendments made by this section on—
(A) the number of family day care homes
participating in the child care food program es-
tablished under section 17 of the National
School Lunch Act (42 U.S.C. 1766);
(B) the number of day care home sponsor-
ing organizations participating in the program;
(C) the number of day care homes that are
licensed, certified, registered, or approved by
each State in accordance with regulations is-
sued by the Secretary;
(D) the rate of growth of the numbers re-
ferred to in subparagraphs (A) through (C);
(E) the nutritional adequacy and quality of
meals served in family day care homes that—
(i) received reimbursement under the
program prior to the amendments made by
530
this section but do not receive reimburse-
ment after the amendments made by this
section; or
(ii) received full reimbursement under
the program prior to the amendments
made by this section but do not receive full
reimbursement 
after 
the 
amendments
made by this section; and
(F) the proportion of low-income children
participating in the program prior to the
amendments made by this section and the pro-
portion of low-income children participating in
the program after the amendments made by
this section.
(2) REQUIRED DATA.—Each State agency par-
ticipating in the child care food program under sec-
tion 17 of the National School Lunch Act (42
U.S.C. 1766) shall submit to the Secretary data
on—
(A) the number of family day care homes
participating in the program on July 31, 1996,
and July 31, 1997;
(B) the number of family day care homes
licensed, certified, registered, or approved for
531
service on July 31, 1996, and July 31, 1997;
and
(C) such other data as the Secretary may
require to carry out this subsection.
(3) SUBMISSION OF REPORT.—Not later than 2
years after the effective date of this section, the Sec-
retary shall submit the study required under this
subsection to the Committee on Economic and Edu-
cational Opportunities of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 811. PILOT PROJECTS.
(a) UNIVERSAL FREE PILOT.—Section 18(d) of the
National School Lunch Act (42 U.S.C. 1769(d)) is amend-
ed—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Sec-
tion 18(e) of the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting
‘‘may’’; and
532
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each
of fiscal years 1997 and 1998.’’.
(c) ELIMINATING PROJECTS.—Section 18 of the Act
is amended—
(1) by striking subsections (a) and (g) through
(i); and
(2) by redesignating subsections (b) through
(f), as so amended, as subsections (a) through (e),
respectively.
(d) 
CONFORMING
AMENDMENT.—Section
17B(d)(1)(A) of the Act (42 U.S.C. 1766b(d)(1)(A)) is
amended by striking ‘‘18(c)’’ and inserting ‘‘18(b)’’.
SEC. 812. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42
U.S.C. 1769a) is repealed.
SEC. 813. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42
U.S.C. 1769d) is repealed.
533
SEC. 814. NUTRITION GUIDANCE FOR CHILD NUTRITION
PROGRAMS.
Section 24 of the National School Lunch Act (42
U.S.C. 1769e) is repealed.
SEC. 815. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42
U.S.C. 1769g) is repealed.
Subtitle B—Child Nutrition Act of
1966
SEC. 821. SPECIAL MILK PROGRAM.
(a) DEFINITION.—Section 3(a)(3) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1772(a)(3)) is amended by
striking ‘‘the Trust Territory of the Pacific Islands’’ and
inserting ‘‘the Commonwealth of the Northern Mariana
Islands’’.
(b) ADJUSTMENTS TO REIMBURSEMENTS.—
(1) IN GENERAL.—Section 3(a) of the Act is
amended by striking paragraph (8) and inserting the
following:
‘‘(8) ADJUSTMENTS.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, in the case of each
school year, the Secretary shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
534
unrounded adjustment for the preceding
school year;
‘‘(ii) adjust the resulting amount in
accordance with paragraph (7); and
‘‘(iii) round the result to the nearest
lower cent increment.
‘‘(B) ADJUSTMENT FOR 12-MONTH PERIOD
BEGINNING JULY 1, 1996.—In the case of the
12-month period beginning July 1, 1996, the
minimum rate shall be the same as the mini-
mum rate in effect on June 30, 1996, rounded
to the nearest lower cent increment.
‘‘(C) ADJUSTMENT FOR SCHOOL YEAR BE-
GINNING
JULY
1, 1997.—In the case of the
school year beginning July 1, 1997, the Sec-
retary shall—
‘‘(i) base the adjustment made under
paragraph (7) on the amount of the
unrounded adjustment for the minimum
rate for the school year beginning July 1,
1996;
‘‘(ii) adjust the resulting amount to
reflect changes in the Producer Price
Index for Fresh Processed Milk published
by the Bureau of Labor Statistics of the
535
Department of Labor for the most recent
12-month period for which the data are
available; and
‘‘(iii) round the result to the nearest
lower cent increment.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall become effective on July 1,
1996.
SEC. 822. REIMBURSEMENT RATES FOR FREE AND RE-
DUCED PRICE BREAKFASTS.
(a) IN GENERAL.—Section 4(b) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1773(b)) is amended—
(1) in paragraph (1)(B)—
(A) in the first sentence, by striking ‘‘sec-
tion 11(a)’’ and inserting ‘‘subparagraphs (B)
through (D) of section 11(a)(3)’’; and
(B) in the second sentence, by striking ‘‘,
adjusted to the nearest one-fourth cent’’ and in-
serting ‘‘(as adjusted pursuant to subpara-
graphs (B) through (D) of section 11(a)(3) of
the National School Lunch Act (42 U.S.C.
1759a(a)(3)))’’; and
(2) in paragraph (2)(B)(ii)—
536
(A) by striking ‘‘nearest one-fourth cent’’
and inserting ‘‘nearest lower cent increment for
the applicable school year’’; and
(B) by inserting before the period at the
end the following: ‘‘, and the adjustment re-
quired by this clause shall be based on the
unrounded adjustment for the preceding school
year’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall become effective on July 1, 1996.
SEC. 823. FREE AND REDUCED PRICE POLICY STATEMENT.
Section 4(b)(1) of the Child Nutrition Act of 1966
(42 U.S.C. 1773(b)(1)) is amended by adding at the end
the following:
‘‘(E) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
school 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. A routine change in
the policy of a school, such as an annual adjust-
ment of the income eligibility guidelines for free
and reduced price meals, shall not be sufficient
537
cause for requiring the school to submit a policy
statement.’’.
SEC. 824. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
(a) TRAINING AND TECHNICAL ASSISTANCE IN FOOD
PREPARATION.—Section 4(e)(1) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(e)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘(A)’’; and
(2) by striking subparagraph (B).
(b) EXPANSION OF PROGRAM; STARTUP AND EXPAN-
SION COSTS.—
(1) IN
GENERAL.—Section 4 of the Act is
amended by striking subsections (f) and (g).
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall become effective on October
1, 1996.
SEC. 825. STATE ADMINISTRATIVE EXPENSES.
(a) USE OF FUNDS FOR COMMODITY DISTRIBUTION
ADMINISTRATION; STUDIES.—Section 7 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1776) is amended—
(1) by striking subsections (e) and (h); and
(2) by redesignating subsections (f), (g), and (i)
as subsections (e), (f), and (g), respectively.
(b) APPROVAL OF CHANGES.—Section 7(e) of the
Act, as so redesignated, is amended—
538
(1) by striking ‘‘each year an annual plan’’ and
inserting ‘‘the initial fiscal year a plan’’; and
(2) by adding at the end the following: ‘‘After
submitting the initial plan, a State shall only be re-
quired to submit to the Secretary for approval a
substantive change in the plan.’’.
SEC. 826. REGULATIONS.
Section 10 of the Child Nutrition Act of 1966 (42
U.S.C. 1779) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘(1)’’;
and
(B) by striking paragraphs (2) through
(4); and
(2) in subsection (c)—
(A) by striking ‘‘may’’ and inserting
‘‘shall’’;
(B) by inserting ‘‘, except the program au-
thorized under section 17,’’ after ‘‘under this
Act’’; and
(C) by adding at the end the following:
‘‘Such regulations shall prohibit the transfer of
funds that are used to support meals served to
children with incomes below the income eligi-
bility criteria for free or reduced price meals, as
539
provided in section 9(b) of the National School
Lunch Act.’’.
SEC. 827. PROHIBITIONS.
Section 11(a) of the Child Nutrition Act of 1966 (42
U.S.C. 1780(a)) is amended by striking ‘‘neither the Sec-
retary nor the State shall’’ and inserting ‘‘the Secretary
shall not’’.
SEC. 828. MISCELLANEOUS PROVISIONS AND DEFINITIONS.
Section 15 of the Child Nutrition Act of 1966 (42
U.S.C. 1784) is amended—
(1) in paragraph (1), by striking ‘‘the Trust
Territory of the Pacific Islands’’ and inserting ‘‘the
Commonwealth of the Northern Mariana Islands’’;
and
(2) in the first sentence of paragraph (3)—
(A) in subparagraph (A), by inserting
‘‘and’’ at the end; and
(B) by striking ‘‘, and (C)’’ and all that
follows through ‘‘Governor of Puerto Rico’’.
SEC. 829. ACCOUNTS AND RECORDS.
The second sentence of section 16(a) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1785(a)) is amended by
striking ‘‘at all times be available’’ and inserting ‘‘be avail-
able at any reasonable time’’.
540
SEC. 830. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS, AND CHILDREN.
(a) DEFINITIONS.—Section 17(b) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(b)) is amended—
(1) in paragraph (15)(B)(iii), by inserting ‘‘of
not more than 90 days’’ after ‘‘accommodation’’;
and
(2) in paragraph (16)—
(A) in subparagraph (A), by adding ‘‘and’’
at the end; and
(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C).
(b) SECRETARY’S PROMOTION
OF WIC.—Section
17(c) of the Act is amended by striking paragraph (5).
(c) ELIGIBLE PARTICIPANTS.—Section 17(d) of the
Act is amended by striking paragraph (4).
(d) NUTRITION EDUCATION AND DRUG ABUSE EDU-
CATION.—Section 17(e) of the Act is amended—
(1) in the first sentence of paragraph (1), by
striking ‘‘shall ensure’’ and all that follows through
‘‘is provided’’ and inserting ‘‘shall provide nutrition
education and may provide drug abuse education’’;
(2) in paragraph (2), by striking the third sen-
tence;
541
(3) by striking paragraph (4) and inserting the
following:
‘‘(4) INFORMATION.—The State agency may
provide a local agency with materials describing
other programs for which participants in the pro-
gram may be eligible.’’;
(4) in paragraph (5), by striking ‘‘The State’’
and all that follows through ‘‘local agency shall’’ and
inserting ‘‘A local agency may’’; and
(5) by striking paragraph (6).
(e) STATE PLAN.—Section 17(f) of the Act is amend-
ed—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘annually to the Sec-
retary, by a date specified by the Sec-
retary, a’’ and inserting ‘‘to the Secretary,
by a date specified by the Secretary, an
initial’’; and
(ii) by adding at the end the follow-
ing: ‘‘After submitting the initial plan, a
State shall only be required to submit to
the Secretary for approval a substantive
change in the plan.’’;
(B) in subparagraph (C)—
542
(i) by striking clause (iii) and insert-
ing the following:
‘‘(iii) a plan to coordinate operations under the
program with other services or programs that may
benefit participants in, and applicants for, the pro-
gram;’’;
(ii) in clause (vi), by inserting after
‘‘in the State’’ the following: ‘‘(including a
plan to improve access to the program for
participants and prospective applicants
who are employed, or who reside in rural
areas)’’;
(iii) by striking clauses (vii), (ix), (x),
and (xii);
(iv) in clause (xiii), by striking ‘‘may
require’’ and inserting ‘‘may reasonably re-
quire’’; and
(v) by redesignating clauses (viii),
(xi), and (xiii), as so amended, as clauses
(vii), (viii), and (ix), respectively;
(C) by striking subparagraph (D); and
(D) by redesignating subparagraph (E) as
subparagraph (D);
(2) by striking paragraphs (2), (6), (8), (20),
(22), and (24);
543
(3) in the second sentence of paragraph (5), by
striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’;
(4) in paragraph (9)(B), by striking the second
sentence;
(5) in the first sentence of paragraph (11), by
striking ‘‘, including standards that will ensure suffi-
cient State agency staff’’;
(6) in paragraph (12), by striking the third sen-
tence;
(7) in paragraph (14), by striking ‘‘shall’’ and
inserting ‘‘may’’;
(8) in paragraph (17), by striking ‘‘and to ac-
commodate’’ and all that follows through ‘‘facili-
ties’’;
(9) in paragraph (19), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(10) by redesignating paragraphs (3), (4), (5),
(7), (9) through (19), (21), and (23), as so amend-
ed, as paragraphs (2), (3), (4), (5), (6) through
(16), (17), and (18), respectively.
(f) INFORMATION.—Section 17(g) of the Act is
amended—
544
(1) in paragraph (5), by striking ‘‘the report re-
quired under subsection (d)(4)’’ and inserting ‘‘re-
ports on program participant characteristics’’; and
(2) by striking paragraph (6).
(g) PROCUREMENT OF INFANT FORMULA.—
(1) IN GENERAL.—Section 17(h) of the Act is
amended—
(A) in paragraph (4)(E), by striking ‘‘and,
on’’ and all that follows through ‘‘(d)(4)’’;
(B) in paragraph (8)—
(i) by striking subparagraphs (A),
(C), and (M);
(ii) in subparagraph (G)—
(I) in clause (i), by striking ‘‘(i)’’;
and
(II) 
by 
striking 
clauses 
(ii)
through (ix);
(iii) in subparagraph (I), by striking
‘‘Secretary—’’ and all that follows through
‘‘(v) may’’ and inserting ‘‘Secretary may’’;
(iv) by redesignating subparagraphs
(B) and (D) through (L) as subparagraphs
(A) and (B) through (J), respectively;
(v) in subparagraph (A)(i), as so re-
designated, by striking ‘‘subparagraphs
545
(C), (D), and (E)(iii), in carrying out sub-
paragraph (A),’’ and inserting ‘‘subpara-
graphs (B) and (C)(iii),’’;
(vi) in subparagraph (B)(i), as so re-
designated, by striking ‘‘subparagraph
(B)’’ each place it appears and inserting
‘‘subparagraph (A)’’; and
(vii) in subparagraph (C)(iii), as so
redesignated, by striking ‘‘subparagraph
(B)’’ and inserting ‘‘subparagraph (A)’’;
and
(C) in paragraph (10)(A), by striking
‘‘shall’’ and inserting ‘‘may’’.
(2) APPLICATION.—The amendments made by
paragraph (1) shall not apply to a contract for the
procurement of infant formula under section
17(h)(8) of the Act that is in effect on the effective
date of this subsection.
(h) NATIONAL ADVISORY COUNCIL ON MATERNAL,
INFANT, AND FETAL NUTRITION.—Section 17(k)(3) of
the Act is amended by striking ‘‘Secretary shall designate’’
and inserting ‘‘Council shall elect’’.
(i) COMPLETED STUDY; COMMUNITY COLLEGE DEM-
ONSTRATION; GRANTS FOR INFORMATION AND DATA SYS-
546
TEM.—Section 17 of the Act is amended by striking sub-
sections (n), (o), and (p).
(j) DISQUALIFICATION OF VENDORS WHO ARE DIS-
QUALIFIED UNDER THE FOOD STAMP PROGRAM.—Sec-
tion 17 of the Act, as so amended, is further amended
by adding at the end the following:
‘‘(n) DISQUALIFICATION
OF VENDORS WHO ARE
DISQUALIFIED UNDER THE FOOD STAMP PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall issue
regulations providing criteria for the disqualification
under this section of an approved vendor that is dis-
qualified from accepting benefits under the food
stamp program established under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).
‘‘(2) TERMS.—A disqualification under para-
graph (1)—
‘‘(A) shall be for the same period as the
disqualification from the program referred to in
paragraph (1);
‘‘(B) may begin at a later date than the
disqualification from the program referred to in
paragraph (1); and
‘‘(C) shall not be subject to judicial or ad-
ministrative review.’’.
547
SEC. 831. CASH GRANTS FOR NUTRITION EDUCATION.
Section 18 of the Child Nutrition Act of 1966 (42
U.S.C. 1787) is repealed.
SEC. 832. NUTRITION EDUCATION AND TRAINING.
(a) FINDINGS.—Section 19 of the Child Nutrition
Act of 1966 (42 U.S.C. 1788) is amended—
(1) in subsection (a), by striking ‘‘that—’’ and
all that follows through the period at the end and
inserting ‘‘that effective dissemination of scientif-
ically valid information to children participating or
eligible to participate in the school lunch and related
child nutrition programs should be encouraged.’’;
and
(2) in subsection (b), by striking ‘‘encourage’’
and all that follows through ‘‘establishing’’ and in-
serting ‘‘establish’’.
(b) USE OF FUNDS.—Section 19(f) of the Act is
amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B); and
(B) in subparagraph (A)—
(i) by striking ‘‘(A)’’;
(ii) by striking clauses (ix) through
(xix);
548
(iii) by redesignating clauses (i)
through (viii) and (xx) as subparagraphs
(A) through (H) and (I), respectively; and
(iv) in subparagraph (H), as so redes-
ignated, by inserting ‘‘and’’ at the end;
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as para-
graph (2).
(c) ACCOUNTS, RECORDS, AND REPORTS.—The sec-
ond sentence of section 19(g)(1) of the Act is amended
by striking ‘‘at all times be available’’ and inserting ‘‘be
available at any reasonable time’’.
(d) STATE COORDINATORS FOR NUTRITION; STATE
PLAN.—Section 19(h) of the Act is amended—
(1) in the second sentence of paragraph (1)—
(A) by striking ‘‘as provided in paragraph
(2) of this subsection’’; and
(B) by striking ‘‘as provided in paragraph
(3) of this subsection’’;
(2) in paragraph (2), by striking the second
and third sentences; and
(3) by striking paragraph (3).
(e) AUTHORIZATION OF APPROPRIATIONS.—Section
19(i) of the Act is amended—
549
(1) in the first sentence of paragraph (2)(A), by
striking ‘‘and each succeeding fiscal year’’;
(2) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(3) by inserting after paragraph (2) the follow-
ing:
‘‘(3) FISCAL YEARS 1997 THROUGH 2002.—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated to carry out this section
$10,000,000 for each of fiscal years 1997
through 2002.
‘‘(B) GRANTS.—
‘‘(i) IN
GENERAL.—Grants to each
State from the amounts made available
under subparagraph (A) shall be based on
a rate of 50 cents for each child enrolled
in schools or institutions within the State,
except that no State shall receive an
amount less than $75,000 per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If the
amount made available for any fiscal year
is insufficient to pay the amount to which
each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’.
550
(f) ASSESSMENT.—Section 19 of the Act is amended
by striking subsection (j).
(g) EFFECTIVE DATE.—The amendments made by
subsection (e) shall become effective on October 1, 1996.
SEC. 833. BREASTFEEDING PROMOTION PROGRAM.
Section 21 of the Child Nutrition Act of 1966 (42
U.S.C. 1790) is repealed.
TITLE 
IX—FOOD 
STAMP 
PRO-
GRAM AND RELATED PRO-
GRAMS
SEC. 901. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7
U.S.C. 2012(c)) is amended by striking ‘‘Except as pro-
vided’’ and all that follows and inserting the following:
‘‘The certification period shall not exceed 12 months, ex-
cept that the certification period may be up to 24 months
if all adult household members are elderly or disabled. A
State agency shall have at least 1 contact with each cer-
tified household every 12 months.’’.
SEC. 902. EXPANDED DEFINITION OF ‘‘COUPON’’.
Section 3(d) of the Food Stamp Act of 1977 (7
U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi-
cate’’ and inserting ‘‘type of certificate, authorization
cards, cash or checks issued in lieu of coupons or access
551
devices, including, but not limited to, electronic benefit
transfer cards and personal identification numbers’’.
SEC. 903. TREATMENT OF CHILDREN LIVING AT HOME.
The second sentence of section 3(i) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(i)) is amended by
striking ‘‘(who are not themselves parents living with their
children or married and living with their spouses)’’.
SEC. 904. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(o)) is amended—
(1) by striking ‘‘shall (1) make’’ and inserting
the following:
‘‘shall—
‘‘(1) make’’;
(2) by striking ‘‘scale, (2) make’’ and inserting
the following:
‘‘scale;
‘‘(2) make’’;
(3) by striking ‘‘Alaska, (3) make’’ and insert-
ing the following:
‘‘Alaska;
‘‘(3) make’’; and
(4) by striking ‘‘Columbia, (4) through’’ and all
that follows through the end of the subsection and
inserting the following:
552
‘‘Columbia; and
‘‘(4) on October 1, 1996, and each October 1
thereafter, adjust the cost of the diet to reflect the
cost of the diet, in the preceding June, and round
the result to the nearest lower dollar increment for
each household size, except that on October 1, 1996,
the Secretary may not reduce the cost of the diet in
effect on September 30, 1996.’’.
SEC. 905. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977
(7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 906. INCOME EXCLUSIONS.
(a) EXCLUSION OF CERTAIN JTPA INCOME.—Sec-
tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended—
(1) in subsection (d)—
(A) by striking ‘‘and (16)’’ and inserting
‘‘(16)’’; and
(B) by inserting before the period at the
end the following: ‘‘, and (17) income received
under the Job Training Partnership Act (29
U.S.C. 1501 et seq.) by a household member
who is less than 19 years of age’’; and
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(2) in subsection (l), by striking ‘‘under section
204(b)(1)(C)’’ and all that follows and inserting
‘‘shall be considered earned income for purposes of
the food stamp program.’’.
(b) EXCLUSION OF LIFE INSURANCE POLICIES.—
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) is amended by adding at the end the following:
‘‘(6) The Secretary shall exclude from financial re-
sources the cash value of any life insurance policy owned
by a member of a household.’’.
(c) IN-TANDEM EXCLUSIONS FROM INCOME.—Sec-
tion 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014)
is amended by adding at the end the following:
‘‘(n) Whenever a Federal statute enacted after the
date of the enactment of this Act excludes funds from in-
come for purposes of determining eligibility, benefit levels,
or both under State plans approved under part A of title
IV of the Social Security Act, then such funds shall be
excluded from income for purposes of determining eligi-
bility, benefit levels, or both, respectively, under the food
stamp program of households all of whose members re-
ceive benefits under a State plan approved under part A
of title IV of the Social Security Act.’’.
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SEC. 907. DEDUCTIONS FROM INCOME.
Section 5(e) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)) is amended—
(1) in the 1st sentence—
(A) by striking ‘‘$85’’ and inserting
‘‘$134’’;
(B) by striking ‘‘$145, $120, $170, and
$75, respectively’’ and inserting the following:
‘‘$229, $189, $269, and $118, respectively, for fiscal year
1996; and a standard deduction of $120 a month for each
household, except that households in Alaska, Hawaii,
Guam, and the Virgin Islands of the United States shall
be allowed a standard deduction of $200, $165, $234, and
$103, respectively, for fiscal years thereafter, adjusted in
accordance with this subsection’’;
(2) in the 2nd sentence by striking ‘‘Such’’ and
all that follows through ‘‘each October 1 thereafter,’’
and inserting ‘‘On October 1, 2001, and on each Oc-
tober 1 thereafter, such standard deductions shall be
adjusted’’;
(3) by striking the 14th sentence; and
(4) by inserting after the 9th sentence the fol-
lowing:
‘‘A State agency may make use of a standard utility allow-
ance mandatory for all households with qualifying utility
costs if the State agency has developed 1 or more stand-